HB4908 - Relating to the establishment of the Texas prosperity payout fund; imposing taxes on the gross revenues of and consumption by certain industry participants; authorizing administrative penalties.

  89R16379 RDS-F     By: Rodríguez Ramos H.B. No. 4908       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of the Texas prosperity payout fund;   imposing taxes on the gross revenues of and consumption by certain   industry participants; authorizing administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  This Act may be cited as the Texas Prosperity   Payout Act.          SECTION 2.  Chapter 403, Government Code, is amended by   adding Subchapter V to read as follows:   SUBCHAPTER V. TEXAS PROSPERITY PAYOUT FUND           Sec.   403.701.     FINDINGS AND PURPOSE. (a) The legislature   finds that:                 (1)     emerging industries, including artificial   intelligence and cryptocurrency mining, significantly impact this   state's energy, infrastructure, and workforce resources;                 (2)     revenue generated by these industries has not been   proportionately invested in the prosperity of the residents of this   state; and                 (3)     a permanent fund dividend can promote economic   stability, foster community resilience, and stimulate local   economies when implemented within appropriate constitutional and   fiscal parameters.           (b)     The purpose of this subchapter is to establish a   permanent fund dividend benefiting adult Texans through a   revenue-supported structure that complies with the requirements of   Section 51, Article III, Texas Constitution, ensures fiscal   sustainability and transparency, and adheres to all applicable   constitutional provisions regarding the permissible uses of public   funds.           Sec. 403.702.  DEFINITIONS. In this subchapter:                 (1)     "Prosperity payout" means a payment made from the   Texas prosperity payout fund under Section 403.704.                 (2)  "Eligible resident" means an individual who:                       (A)     is a United States citizen or a lawful   permanent resident;                       (B)  is at least 18 years of age; and                       (C)     has resided in Texas for at least 12   consecutive months, verified through the individual's   government-issued identification or by applicable state records.                 (3)     "Fund" means the Texas prosperity payout fund   created under this subchapter.           Sec.   403.703.     TEXAS PROSPERITY PAYOUT FUND. (a) The Texas   prosperity payout fund is created as a fund outside the state   treasury with the comptroller.           (b)  The fund consists of:                 (1)     money transferred or deposited to the credit of   the fund by the constitution, general law, or the General   Appropriations Act;                 (2)     revenue that the legislature by general law   dedicates for deposit to the credit of the fund; and                 (3)  gifts, grants, and donations to the fund.           (c)     The comptroller shall administer the fund and   distribute prosperity payouts to eligible residents in the manner   provided by Section 403.704.           (d)     Notwithstanding any other law, money deposited to the   credit of the fund is automatically appropriated to the comptroller   for the purpose of making prosperity payouts and the comptroller   may spend money in the fund without further legislative   appropriation as necessary to carry out the purposes of this   subchapter.           Sec.   403.704.     PROSPERITY PAYOUT. (a) The comptroller   shall issue a prosperity payout each month to each individual the   comptroller verifies is an eligible resident using money in the   fund. The amount of the prosperity payout to which each eligible   resident is entitled in a month is equal to the total amount of   money in the fund on the last day of the preceding month divided by   the number of eligible residents receiving a prosperity payout in   the applicable month.           (b)     The comptroller shall adopt rules necessary to   implement and administer this section, including protocols for   verifying eligible residents and procedures for issuing prosperity   payouts.           (c)     The comptroller shall recommend to the legislature any   adjustments to the rate of the taxes imposed under Chapter 210, Tax   Code, necessary to ensure continued funding for prosperity payouts.           (d)     Prosperity payouts to eligible residents under this   subchapter are considered to be refunds of collected   industry-specific tax revenue to the public and shall serve the   public purposes of promoting economic stability and public   prosperity. As required by Section 51, Article III, Texas   Constitution, the legislature finds that the payment of a   prosperity payout is not gratuitous and is essential to mitigate   the public calamity caused by the economic impacts from the taxed   industries.           (e)     The comptroller shall maintain a list of eligible   residents and implement procedures to regularly cross-reference   state vital statistics and residency records to identify and remove   individuals who are deceased or who have relocated out of this state   from the list of eligible residents. The comptroller must provide   an individual identified for removal from the list written notice   and provide the individual 30 days to appeal the comptroller's   determination before suspending the issuance of prosperity payouts   to the individual.           Sec.   403.705.     TRANSPARENCY AND REPORTING. (a) Not later   than December 31 of each state fiscal year, the comptroller shall   prepare and issue a report to the lieutenant governor and the   speaker of the house of representatives on the administration of   the fund during that state fiscal year, including:                 (1)     the total amount of tax revenue collected under   Chapter 210, Tax Code, organized by industry, and deposited to the   credit of the fund;                 (2)     the total amount of money disbursed from the fund;   and                 (3)     economic impact assessments of each of the taxes   imposed by Chapter 210, Tax Code, and the prosperity payouts issued   under this subchapter with comparative metrics.           (b)     The comptroller shall post the report prepared under   Subsection (a) on the comptroller's Internet website.           (c)     An economic impact assessment required under this   section must be conducted by an independent third party using   generally accepted economic forecasting models. The report must   include baseline comparisons and anticipated long-term economic   effects on different segments of the population.           Sec.   403.706.     OVERSIGHT AND AUDITING. (a) The state   auditor shall conduct an audit of the fund each calendar quarter to   ensure the integrity of the fund.           (b)     An independent oversight committee composed of at least   seven members appointed by the governor shall annually review   economic impact data included in the report submitted by the   comptroller under Section 403.705. The members must include   representatives from the Legislative Budget Board and the state   auditor's office and at least three public members. A member of the   committee:                 (1)     must opt out of receiving prosperity payouts in   the manner provided by Section 403.707; and                 (2)     may not have a direct financial interest in an   entity that is subject to a tax under Chapter 210, Tax Code.           Sec.   403.707.     AUTOMATIC ENROLLMENT AND OPT OUT. (a) An   eligible recipient is automatically enrolled with the comptroller   to receive prosperity payouts.           (b)     An individual who becomes an eligible recipient is   automatically enrolled with the comptroller effective on the first   day of the month following the month in which the individual first   meets the requirements of Section 403.702(2).           (c)     An eligible recipient may opt out of receiving   prosperity payouts at any time through procedures established by   the comptroller. An eligible resident who opts out under this   subsection may opt back in at any time without penalty or delay in   payment other than standard processing times established by   comptroller rules.           Sec.   403.708.     FRAUD PREVENTION AND DISPUTE RESOLUTION;   APPEAL. (a) The comptroller shall implement verification   protocols to prevent fraudulent claims for prosperity payouts.           (b)     An individual whom the comptroller determines is not an   eligible recipient may file an appeal. An appeal is conducted   before the State Office of Administrative Hearings. The appeal   must be filed not later than the 30th day after the date of the   comptroller's final determination of eligibility. The appellant   bears the burden of proof to demonstrate that the appellant is an   eligible recipient by a preponderance of the evidence.           (c)     An appellant that faces an immediate financial hardship   due to the appellant's inability to receive a prosperity payout may   request an expedited review. The comptroller must issue a decision   not later than the 10th business day after the date of the request.          SECTION 3.  Title 2, Tax Code, is amended by adding Subtitle   K to read as follows:   SUBTITLE K. INDUSTRY-SPECIFIC TAXES   CHAPTER 210. TAX ON INDUSTRY REVENUE AND CONSUMPTION   SUBCHAPTER A. GENERAL PROVISIONS           Sec. 210.001.  DEFINITIONS. In this chapter:                 (1)     "Artificial intelligence infrastructure" means a   facility using computational resources exceeding 1,000 teraflops   per second.                 (2)     "Cloud service provider" means an entity offering   Internet-based infrastructure, platform, or software services with   annual data usage exceeding five petabytes.                 (3)     "Cryptocurrency mining operation" means a   facility consuming at least one megawatt-hour of electricity per   day or 30 megawatt-hours per month for cryptocurrency token   production.                 (4)     "Data center" means a facility consuming more than   two megawatt-hours of electricity per month dedicated to data   processing or storage.                 (5)     "Large software company" means a company   generating at least $50 million in annual revenue from the sale of   software-related products or services.                 (6)     "Telecommunications company" means a provider of   telecommunications services serving 500,000 or more subscribers in   this state.           Sec.   210.002.     LEGISLATIVE FINDINGS ON TAX UNIFORMITY. The   legislature finds that the taxes imposed under this chapter are   reasonably classified based on measurable industry impacts on state   infrastructure, energy use, and public welfare.   SUBCHAPTER B. TAXES IMPOSED           Sec.   210.051.   [Text truncated for display. Full text available on Congress.gov.]