House Bill 2734 Summary

• Establishes a taxation of prime contracting study committee composed of 3 state senators, 3 state representatives, 2 prime contractors, representatives from county and city governments, a transaction privilege tax expert, a taxpayer association representative, and the Department of Revenue director.

• Designates two committee cochairpersons—one appointed by the Senate president and one by the House speaker—to lead meetings and convene the committee as needed.

• Directs the committee to analyze the legal framework for prime contracting taxation, study best practices from other states, and examine compliance issues and noncompliance reduction strategies.

• Authorizes the committee to request information and reports from the Department of Revenue and hold public hearings to receive testimony on prime contracting taxation matters.

• Requires the committee to submit findings and recommendations to the governor, Senate president, and House speaker by November 15, 2019, and repeals the committee on September 30, 2020.