HF 3785 Summary

• Creates the Tax Expenditure Advisory Commission with 12 members appointed by the governor: three senators, three house members (including tax committee chairs), and six public members representing workers, nonprofits, business development, and tax policy expertise.

• Requires the commission to review tax expenditures scheduled to expire, take public testimony, and provide recommendations to legislature before February 1 of each legislative session on whether to continue or repeal expiring tax expenditures.

• Establishes sunset schedules for existing tax expenditures: chapters 168, 297A, 297B expire December 31, 2012; chapters 295, 296A, 297D-I expire December 31, 2014; chapters 290, 298 expire December 31, 2016; chapters 287, 290A-B, 291, 298 expire December 31, 2018; chapters 88, 270, 272-273, 290C, 469, 473H expire December 31, 2020; then every ten years thereafter.

• Requires all new or renewed tax expenditure legislation to include a clear statement of purpose with measurable effectiveness standards and an expiration date not exceeding 12 years from enactment.

• Permits legislature to continue tax expenditures for up to ten additional years during the session when the commission's report is received, but does not prevent earlier elimination of tax expenditures.