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H. B. No. 81 As IntroducedAs Introduced
130th General Assembly | Regular Session | 2013-2014 |
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Representatives Driehaus, Foley
Cosponsors:
Representatives Hagan, R., Antonio, Ramos, Strahorn, Pillich, Rogers, Ashford
A BILL
To enact sections 5703.95, 5703.951, 5703.952,
5703.953, and 5703.954 of the Revised Code to
provide for the periodic appraisal of the
effectiveness of tax expenditures.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 5703.95, 5703.951, 5703.952,
5703.953, and 5703.954 of the Revised Code be enacted to read as
follows:
Sec. 5703.95. (A) As used in this section and sections
5703.951 to 5703.954 of the Revised Code:
(1) "Tax expenditure" has the same meaning as in section
5703.48 of the Revised Code.
(2) "Tax expenditure review committee" means the committee
created under section 5703.954 of the Revised Code.
(B) The tax expenditure review committee shall review all tax
expenditures created in the Revised Code once every two years. For
tax expenditures created before April 15, 2013, the committee
shall review one-half of such tax expenditures in every
even-numbered year and one-half of such tax expenditures in every
odd-numbered year. The committee shall review tax expenditures
created on or after April 15, 2013, according to the following
schedule:
(1) Tax expenditures created in an even-numbered year shall
be reviewed in every subsequent even-numbered year.
(2) Tax expenditures created in an odd-numbered year shall be
reviewed in every subsequent odd-numbered year.
For the purposes of this section, a tax expenditure is
created on the effective date of the amendment or enactment of the
section of the Revised Code that authorizes the tax expenditure.
Sec. 5703.951. (A) The tax expenditure review committee shall
hold at least one public hearing on a tax expenditure in each year
in which the tax expenditure is scheduled for review under section
5703.95 of the Revised Code. The tax commissioner shall publish a
notice of all such public hearings in the register of Ohio. During
the public hearing on a tax expenditure, the committee shall allow
any person to present testimony or evidence relevant to that tax
expenditure.
(B) On or before the date of the public hearing scheduled for
a tax expenditure under division (A) of this section, the tax
commissioner, and any other state official responsible for
administering the tax expenditure, shall submit to the committee a
report that does each of the following:
(1) Explains the tax expenditure's purpose;
(2) Expresses an opinion as to the public need for the tax
expenditure;
(3) Expresses an opinion as to whether the tax expenditure
has been impeded or enhanced by existing statutes;
(4) Describes how, if at all, the tax expenditure promotes
economic growth and development;
(5) Provides an estimate of the amount of tax revenue forgone
each fiscal year as a result of the tax expenditure;
(6) Expresses an opinion as to whether the tax expenditure
should be repealed;
(7) Contains any other information relevant to the
committee's appraisal of the tax expenditure.
(C) Each year, beginning in 2013, the legislative service
commission shall prepare and submit to the committee a report that
describes each tax expenditure created in the Revised Code,
identifies the tax expenditure's intended purpose, and, if
applicable, appraises the tax expenditure's effectiveness using
the methods prescribed in the act creating the tax expenditure.
(D) After the public hearing on a tax expenditure, the
committee shall appraise the tax expenditure. In making its
appraisal, the committee shall consider the reports submitted
under divisions (B) and (C) of this section and information
presented during the hearing, but is not limited to those sources.
Upon the committee's request, the department of taxation, the
office of budget and management, and any other state agency shall
provide the committee with any information in its possession that
the committee requires to appraise the tax expenditure. The
legislative service commission shall provide drafting and clerical
support to the committee.
Sec. 5703.952. On or before the first day of November of
each year in which a tax expenditure is scheduled for review, the
tax expenditure review committee shall prepare a report of its
appraisal of the tax expenditure that contains all of the
following:
(A) A statement of the purpose served by the tax expenditure;
(B) An appraisal of the tax expenditure's effectiveness in
serving its purpose;
(C) An evaluation of whether the tax expenditure's purpose
serves a public need;
(D) An evaluation of whether other statutes have enhanced or
impeded the tax expenditure's effectiveness in serving its
purpose;
(E) An appraisal of whether the tax expenditure promotes
economic growth and development;
(F) An estimate of the amount of revenue lost each fiscal
year because of the tax expenditure;
(G) A recommendation as to whether the tax expenditure should
be repealed;
(H) Any other information the committee considers relevant.
In an appendix to its report, the committee may include a
draft of a bill that would improve the tax expenditure's
effectiveness in serving its purpose; redefine the tax
expenditure's purpose to serve or better serve a public need;
retain or improve the statutes that enhance, or amend or repeal
statutes that impede, the tax expenditure's effectiveness in
serving its purpose; improve the tax expenditure's effectiveness
in promoting economic growth and development; reduce the amount of
revenue lost as a result of the tax expenditure; or repeal the tax
expenditure.
The committee shall provide a copy of the report to the
governor and to each member of the general assembly. The report is
a public record for the purposes of section 149.43 of the Revised
Code.
Sec. 5703.953. An act creating a tax expenditure shall
specify all of the following:
(A) The purpose served by the tax expenditure;
(B) Whether the tax expenditure shall be reviewed in every
even-numbered or odd-numbered year under section 5703.95 of the
Revised Code;
(C) The class of taxpayers that will benefit from the tax
expenditure;
(D) Methods to be used to appraise the tax expenditure's
effectiveness in serving its purpose.
Division (D) of this section may be fulfilled by applying
general statutes or by enacting statutory provisions that apply
particularly to the tax expenditure.
Sec. 5703.954. There is hereby created the tax expenditure
review committee composed of seven members. The president of the
senate, within fifteen days after the first day of the first
regular session of the general assembly, shall appoint two members
of the senate to the committee, one from each political party. The
speaker of the house of representatives, within fifteen days after
the first day of the first regular session of the general
assembly, shall appoint two members of the house of
representatives to the committee, one from each political party.
The governor, within fifteen days after the first day of the first
regular session of the general assembly and with the advice and
consent of the senate, shall appoint one member to the committee.
The tax commissioner and the director of budget and management or
their designees shall be ex officio, nonvoting members.
A legislative member of the committee shall continue as a
member until the member's successor is appointed or until the
member ceases to be a member of the senate or house of
representatives, whichever is earlier. The member appointed by the
governor shall continue to be a member for a term ending on the
thirty-first day of December of each even-numbered year. The
member appointed by the governor continues to be a member after
the expiration of the member's term until the member's successor
is appointed, or until thirty days have elapsed, whichever occurs
first.
In the first regular session of the general assembly, the
committee shall elect one of the members appointed from the house
of representatives as chairperson of the committee and one of the
members appointed from the senate as vice-chairperson of the
committee. In the second regular session of the general assembly,
the committee shall elect one of the members appointed from the
senate as chairperson of the committee and one of the members
appointed from the house of representatives as vice-chairperson of
the committee.
A vacancy on the committee shall be filled in the same manner
as the original appointment. A member appointed to fill a vacancy
occurring prior to the expiration of the term to which the
member's predecessor was appointed shall continue as a member for
the remainder of the unexpired term.
Members of the committee shall serve without compensation,
but shall be reimbursed for actual and necessary expenses they
incur in performance of their duties.
The committee shall meet as often as necessary to perform its
duties. The committee is a public body for the purposes of section
121.22 of the Revised Code.
Three voting members of the committee constitute a quorum.
The committee shall not take any action without the concurrence of
at least three voting members. So long as a quorum is present, a
vacancy on the committee does not impair the ability of the
remaining members to perform the committee's duties.
Section 2. The Tax Commissioner shall prepare a list of the
tax expenditures, as defined in section 5703.95 of the Revised
Code, as enacted by this act, in existence on April 15, 2013, and
shall provide a copy of the list to the chairperson of the Tax
Expenditure Review Committee created by section 5703.954 of the
Revised Code, as enacted by this act. The Committee thereupon
shall prepare a schedule under section 5703.95 of the Revised
Code, as enacted by this act, for appraising one-half of the
listed tax expenditures so that the appraisal and the report
required for those tax expenditures under section 5703.952 of the
Revised Code, as enacted by this act, will be completed not later
than November 1, 2013. The schedule shall provide for the
appraisal of the remaining tax expenditures during the 2014
calendar year, in accordance with section 5703.95 of the Revised
Code, as enacted by this act.
Section 3. (A) Not later than thirty days after the effective
date of this act, the Governor, with the advice and consent of the
Senate, shall make the Governor's initial appointment to the Tax
Expenditure Review Committee under section 5703.954 of the Revised
Code, as enacted by this act. The member thus appointed shall be a
member for a term ending on December 31, 2013. Thereafter, the
gubernatorial appointment and term shall be as prescribed in that
section.
(B) Not later than thirty days after the effective date of
this act, the President of the Senate and the Speaker of the House
of Representatives each shall make their initial appointments to
the Tax Expenditure Review Committee under section 5703.954 of the
Revised Code. The members thus appointed shall be members for
terms ending as prescribed in that section.
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