AB 444 — Creates the Legislative Committee on Tax Expenditures and Incentives for Economic Development. (BDR 17-767)

EXEMPTAssembly (ReprintedBill withNo. amendments adopted on June 1, 2019) SECOND REPRINT A.B.

444444–Committee Aon SSEMBLYTaxation BCHAPTER.......... ILLN O.

444–COMMITTEE ON T AXATION M ARCH 25, 2019 ____________ Referred to Committee on Legislative Operations and Elections SUMMARY—Creates the Legislative Committee on Tax Expenditures and Incentives for Economic Development.

(BDR 17-767) FISCAL NOTE:

EffEffect on the State:

Yes.No.

~ EXPLANATION – Matter in bolded italics is new;

matter between brackets [omitted material] is material to be omitted.

Existing law requires the Board of Economic Development to review and evaluate all programs of economic development in Nevada and to make recommendations to the Legislature for legislation to improve the effectiveness of 231.037)those Sectionprograms 7in ofimplementing this bill requires the LegislativeState CommitteePlan on TaxNRS Expenditures and Incentives for Economic DevelopmentDevelopment. to:

(NRS Expenditures and Incentives for Economic Development to:

Section 8 of this bill authorizes the recommendationsCommittee forto theevaluate, addition,review modificationand comment on tax expenditures and to make or incentive for economic development.fication or elimination of a tax expenditure orEXPLANATION incentive– forMatter economicin development.bolded italics is new;

-matter *AB444_R2*between –brackets 2[omitted –material] THEis PEOPLEmaterial OFto THEbe STATEomitted. OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

- 80th Session (2019) – 2 – Sec.

(c) Two members of the Assembly appointed by the Speaker of the(d) One member of the Assembly;Assembly appointed by the Minority Leader of the Assembly.

and (d) One member of the Assembly appointed by the Minority Leader of the Assembly.

The office of Chair of the Committeevacancy occurs in the office of Chair or Vice Chair, the vacancy must alternatebe eachfilled bienniumin betweenthe same manner as the Houses.original selection for the remainder of the unexpired term.

If a vacancy occurs in the office of Chair or Vice Chair, the vacancy - *AB444_R2* – 3 – must be filled in the same manner as the original selection for the remainder of the unexpired term.

- 80th Session (2019) – 3 – Sec.

Four members of the Committee constitute a quorum, and aupon quorumthe mayCommittee.se exercise all the power and authority conferred upon4. the Committee.

Except during a regular or special session, for each day or portion of a day during which a member of the Committee attends or a meeting of the Committee or is otherwise engaged in the bus(a)business Theof compensationthe providedCommittee, forthe amember majorityis ofentitled theeceive:to receive:

(a) The compensation provided for a majority of the Legislators during the first 60 days of the preceding regular session;

Review any other reports submitted to the Legislature relating to tax expenditures and incentives for economic dev3.opIdentify all incentives for economic development provided for by law in this State, including, without limitation, tax incentives, grants, loans and initiatives for workforce development.

3.

Identify all incentives for economic development provided for by law in this State, including, without limitation, tax - *AB444_R2* – 4 – incentives, grants, loans and initiatives for workforce development.

Evaluate and review each incentive for economic development identified pursuant to subsection 3 at least once every 6 years.

- 80th Session (2019) – 4 – (c) Whether there is a more effective method to achieve the goal of the incentive for economic development.

(1) The extent to which the incentive changes business behavior;

The extent to which the incentive changes business (2) The results of the incentive for the state and local economies, including, without limitation, both positive direct and indirect impacts and any negative impacts on businesses in this State;

andmpacts and any negative impacts on businesses in this (3) A comparison to the results of other incentives or pro(g)programs Any other matters that, in the determination of the Committee, concern incentives for economic development inwith thissimilar State.goals.

(g) Any other matters that, in the determination of the Committee, concern incentives for economic development in this State.

The Committee shall present its findings to the standing committees of the Legislature with primary jurisdiction over matters relating to taxation during the next regular session of thetheSec. Legislature.

Sec.8.atuThe Committee may:

8.

The Committee may:

- *AB444_R2* – 5 – (c) Whether the tax expenditure is accomplishing its purpose, intent or goal.

(e) Whether there are other tax expenditures in this State that have the same or a similar purpose, intent or goal as the tax expenditure being reviewed and the manner in which the two tax expenditures are coordinated, including, without limitation, - 80th Session (2019) – 5 – whether the coordination between the two tax expenditures could be improved or if there are any redundancies that could be eliminated.

(g) The cost and benefit of the tax expenditure, including, without limitation, administrative costs and lost revenue of the State and local governments, and an evaluation of the extent to which the tax expenditure is a cost-effective use of resources comparedgoal.red to other methods of accomplishing the same purpose or goal.(h) Opportunities to improve the effectiveness of the tax expenditure.

(h) Opportunities to improve the effectiveness of the tax expenditure.

Contract with private consultants or academic institutions to complete the reviews provided for by this section and section 7 of 3.isthis Requestact. that the Legislative Counsel Bureau assist in the research, investigations, hearings and reviews of the Committee.