Bill Text: OH HB24 | 2013-2014 | 130th General Assembly | Introduced
Bill Title: To create a Tax Expenditure Review Committee for the purpose of periodically reviewing existing and proposed tax expenditures.
Spectrum: Partisan Bill (Republican 6-0)
Status: (Introduced - Dead) 2013-02-05 - To Ways and Means [HB24 Detail]
Download: Ohio-2013-HB24-Introduced.html
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Representative Boose
Cosponsors:
Representatives Adams, J., Hood, Scherer, Stebelton, Young
| To enact section 5703.95 of the Revised Code to | 1 |
| create a Tax Expenditure Review Committee for the | 2 |
| purpose of periodically reviewing existing and | 3 |
| proposed tax expenditures. | 4 |
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
| Section 1. That section 5703.95 of the Revised Code be | 5 |
| enacted to read as follows: | 6 |
| Sec. 5703.95. (A) As used in this section: | 7 |
| (1) "Tax expenditure" has the same meaning as in section | 8 |
| 5703.48 of the Revised Code. | 9 |
| (2) "Tax expenditure bill" means a bill introduced in the | 10 |
| house of representatives or the senate that proposes to enact or | 11 |
| modify one or more tax expenditures. | 12 |
| (B) There is hereby created the tax expenditure review | 13 |
| committee, consisting of nine members, composed of the following: | 14 |
| (1) The chair and ranking minority member of the house of | 15 |
| representatives committee that deals primarily with tax | 16 |
| legislation; | 17 |
| (2) The chair and ranking minority member of the senate | 18 |
| committee that deals primarily with tax legislation; | 19 |
| (3) Two members of the house of representatives appointed by | 20 |
| the speaker of the house of representatives; | 21 |
| (4) Two members of the senate appointed by the president of | 22 |
| the senate; | 23 |
| (5) One member appointed by the governor. | 24 |
| The speaker of the house of representatives, the president of | 25 |
| the senate, and the governor shall make initial appointments to | 26 |
| the committee not later than thirty days following the effective | 27 |
| date of the enactment of this section. Thereafter, the terms of | 28 |
| the office shall be the same as the term of each general assembly. | 29 |
| Members may be reappointed, provided the member continues to meet | 30 |
| all other eligibility requirements. Vacancies shall be filled in | 31 |
| the manner provided for original appointments. Any member | 32 |
| appointed to fill a vacancy before the expiration of the term for | 33 |
| which the predecessor was appointed shall hold office as a member | 34 |
| for the remainder of that term. Appointed members of the committee | 35 |
| serve at the pleasure of the member's appointing authority and may | 36 |
| be removed only by the appointing authority. | 37 |
| (C) The tax expenditure review committee shall hold its first | 38 |
| meeting within ninety days after the effective date of the | 39 |
| enactment of this section. At the first meeting, the members shall | 40 |
| elect a chairperson. Thereafter, the committee shall meet at least | 41 |
| once during the first year of each fiscal biennium to review | 42 |
| existing tax expenditures pursuant to division (D) of this | 43 |
| section. The committee shall also meet at the call of the | 44 |
| chairperson to review proposed tax expenditures pursuant to | 45 |
| division (E) of this section. The committee is a public body for | 46 |
| the purposes of section 121.22 of the Revised Code. | 47 |
| A vacancy on the committee does not impair the right of the | 48 |
| other members to exercise all the functions of the committee. The | 49 |
| presence of a majority of the members of the committee constitutes | 50 |
| a quorum for the conduct of business of the committee. The | 51 |
| concurrence of at least a majority of the members of the committee | 52 |
| is necessary for any action to be taken by the committee. | 53 |
| The committee shall permit any person to present evidence or | 54 |
| testimony related to tax expenditures at a meeting of the | 55 |
| committee. Upon the committee's request, the department of | 56 |
| taxation, department of development, office of budget and | 57 |
| management, or other state agency shall provide any information in | 58 |
| its possession that the committee requires to perform its duties. | 59 |
| (D) The committee shall establish a schedule for review for | 60 |
| each tax expenditure so that each expenditure is reviewed at least | 61 |
| once every eight years. The schedule may provide for the review of | 62 |
| each tax expenditure in the order the expenditures were enacted or | 63 |
| modified, beginning with the least recently enacted or modified | 64 |
| tax expenditure. Alternatively, the review schedule may group tax | 65 |
| expenditures by the individuals or industries benefiting from the | 66 |
| expenditures, the objectives of each expenditure, or the policy | 67 |
| rationale of each expenditure. In its review, the committee shall | 68 |
| make recommendations as to whether each tax expenditure should be | 69 |
| continued without modification, modified, scheduled for further | 70 |
| review at a future date to consider repealing the expenditure, or | 71 |
| repealed outright. For each expenditure reviewed, the committee | 72 |
| may recommend accountability standards for the future review of | 73 |
| the expenditure. The committee may consider, when reviewing a tax | 74 |
| expenditure, any of the relevant factors in division (F) of this | 75 |
| section. | 76 |
| (E) Any tax expenditure bill shall include a statement | 77 |
| explaining the objectives of the tax expenditure or its | 78 |
| modification and the sponsor's intent in proposing the tax | 79 |
| expenditure or its modification. Before a tax expenditure bill may | 80 |
| be scheduled for a vote in any legislative committee, the bill | 81 |
| must be reviewed by the tax expenditure review committee. The | 82 |
| committee shall commence its review following the introduction of | 83 |
| the tax expenditure bill in the chamber in which the bill | 84 |
| originates. During the committee's review, the committee may | 85 |
| consider any of the relevant factors in division (F) of this | 86 |
| section. The committee shall issue copies of its review to each | 87 |
| member of the legislative committee to which the bill has been | 88 |
| referred upon the conclusion of the committee's review. | 89 |
| (F) In conducting reviews pursuant to division (D) or (E) of | 90 |
| this section, the committee may consider the following factors: | 91 |
| (1) The number and classes of persons, organizations, | 92 |
| businesses, or types of industries that would receive the direct | 93 |
| benefit or consequences of the tax expenditure; | 94 |
| (2) The fiscal impact of the tax expenditure on state and | 95 |
| local taxing authorities, including, in the case of a review under | 96 |
| division (D) of this section, any past fiscal effects and expected | 97 |
| future fiscal impacts of the tax expenditure in the following | 98 |
| eight-year period; | 99 |
| (3) Public policy objectives that might support the tax | 100 |
| expenditure. In researching such objectives, the committee may | 101 |
| consider the expenditure's legislative history, the tax | 102 |
| expenditure's sponsor's intent in proposing the tax expenditure, | 103 |
| the extent to which the tax expenditure encourages or would | 104 |
| encourage business growth or relocation into the state, promotes | 105 |
| or would promote growth or retention of high-wage jobs in the | 106 |
| state, or aids or would aid community stabilization. | 107 |
| (4) Whether the tax expenditure successfully accomplishes any | 108 |
| of the objectives identified in division (F)(3) of this section; | 109 |
| (5) Whether the objectives identified in division (F)(3) of | 110 |
| this section would or could have been accomplished successfully in | 111 |
| the absence of the tax expenditure or with less cost to the state | 112 |
| or local governments; | 113 |
| (6) Whether the objectives identified in division (F)(3) of | 114 |
| this section could have been accomplished successfully through a | 115 |
| program that requires legislative appropriations for funding; | 116 |
| (7) The extent to which the tax expenditure may provide | 117 |
| unintended benefits to an individual, organization, or industry | 118 |
| other than those the legislature or sponsor intended or creates an | 119 |
| unfair competitive advantage for its recipient with respect to | 120 |
| other businesses in the state; | 121 |
| (8) The extent to which terminating the tax expenditure may | 122 |
| have negative effects on taxpayers that currently benefit from the | 123 |
| tax expenditure; | 124 |
| (9) The extent to which the repeal of the tax expenditure may | 125 |
| have negative effects on the state's employment and economy; | 126 |
| (10) The feasibility of modifying the tax expenditure to | 127 |
| provide for adjustment or recapture of the proceeds of the tax | 128 |
| expenditure if the objectives of the tax expenditure are not | 129 |
| fulfilled by the recipient of the tax expenditure. | 130 |
| (G) The committee shall prepare a report of its | 131 |
| determinations under division (D) of this section and, not later | 132 |
| than the thirtieth day of June of each even-numbered year, provide | 133 |
| a copy of the report to the governor, the speaker of the house of | 134 |
| representatives, the president of the senate, the minority leader | 135 |
| of the house of representatives, and the minority leader of the | 136 |
| senate. The first report shall be submitted either in the year of | 137 |
| the effective date of this act or in the first even-numbered year | 138 |
| thereafter. | 139 |
