CHAPTER 314. FISCAL NOTES AND COST PROJECTIONS
GOVERNMENT CODE
TITLE 3. LEGISLATIVE BRANCH
SUBTITLE B. LEGISLATION
CHAPTER 314. FISCAL NOTES AND COST PROJECTIONS
Sec. 314.001. SYSTEM OF FISCAL NOTES. The Legislative Budget
Board shall establish a system of fiscal notes identifying the
probable costs of each bill or resolution that authorizes or
requires the expenditure or diversion of state funds for a
purpose other than one provided for in the general appropriations
bill.
Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.
Sec. 314.002. COST ESTIMATES. In preparing a fiscal note, the
board shall project cost estimates for a five-year period that
begins on the effective date of the bill or resolution and shall
state whether or not costs or diversions will be involved after
that period.
Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.
Sec. 314.003. ATTACHMENT TO BILL OR RESOLUTION. (a) If a
fiscal note is required on a bill or resolution, it must be
attached to the bill or resolution before a committee hearing on
the bill or resolution may be conducted.
(b) The fiscal note must be printed on the first page of the
committee report of the bill or resolution and on the first page
of all subsequent printings.
(c) The fiscal note must remain with the bill or resolution
throughout the legislative process, including submission to the
governor.
Acts 1985, 69th Leg., ch. 479, Sec. 1, eff. Sept. 1, 1985.
Sec. 314.004. EQUALIZED EDUCATION FUNDING IMPACT STATEMENT. (a)
The board shall prepare for each bill or resolution that affects
public education an equalized education funding impact statement.
(b) The impact statement must evaluate the effect of the bill or
resolution on all state equalized funding requirements and
policies.
(c) The impact statement must be attached to the bill or
resolution immediately following:
(1) the fiscal note attached under Section 314.003; or
(2) if a dynamic fiscal impact statement is prepared under
Section 314.005, the dynamic fiscal impact statement.
Added by Acts 1990, 71st Leg., 6th C.S., ch. 1, Sec. 1.18, eff.
Sept. 1, 1990.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1108, Sec. 2, eff. September 1, 2009.
Sec. 314.005. DYNAMIC FISCAL IMPACT STATEMENT ON TAX OR FEE
MEASURE. (a) The board shall prepare a dynamic fiscal impact
statement for each bill or joint resolution:
(1) that raises or lowers the rate or amount of a tax or fee or
proposes an amendment to the Texas Constitution that would raise
or lower the rate or amount of a tax or fee; and
(2) for which a fiscal note is prepared indicating a positive or
negative impact on revenue of at least $75 million annually.
(b) The dynamic fiscal impact statement must, based on dynamic
scoring principles, project for the five-year period beginning on
the proposed effective date of the change in the rate or amount
of the tax or fee the estimated fiscal and economic impacts of
raising or lowering the rate or amount of the tax or fee as
proposed, including the impact on:
(1) tax or fee receipts; and
(2) the costs of the specific program, if any, that the tax or
fee is designed to directly support.
(c) In this section, "dynamic scoring principles" means a method
of estimating the pace of economic growth or the change in the
aggregate level of economic output and incomes, in response to a
change in the rate or amount of a tax or fee, that takes into
consideration factors including:
(1) the direct impact on tax or fee receipts and, if the tax or
fee is designed to directly support a specific program, on
program costs;
(2) the effects on incentives to work, save, invest, and conduct
economic affairs;
(3) the resulting change in the overall level of economic
activity;
(4) the impact of the resulting higher or lower level of
economic activity on tax or fee receipts and, if the tax or fee
is designed to directly support a specific program, on program
costs; and
(5) a calculation of the net impact of the legislation proposing
the change on the unified budget.
(d) The dynamic fiscal impact statement must be attached to the
bill or resolution immediately following the fiscal note attached
under Section 314.003.
(e) On the fifth anniversary of the effective date of a bill
that becomes law for which a dynamic fiscal impact statement was
prepared under this section, the comptroller shall prepare and
submit to the presiding officer of each house of the legislature
a report that assesses the accuracy of the relevant fiscal note
prepared for the bill and the accuracy of the relevant dynamic
fiscal impact statement prepared for the bill.
Added by Acts 2009, 81st Leg., R.S., Ch.
1108, Sec. 1, eff. September 1, 2009.