Off the Kuff Rotating Header Image

May 23rd, 2019:

We’re going to vote on making an income tax double secret illegal

It’s definitely time for sine die.

Sen. Pat Fallon

Texas voters will decide in November if they want to bar the imposition of an income tax, following approval of the constitutional amendment by the state Senate on Monday.

The Texas House had approved House Joint Resolution 38, which prohibits the imposition of an individual income tax, earlier this month.

The seemingly anodyne proposal ran into pushback Monday from some Senate Democrats who suggested the bill could cut business taxes, a major source of state money.

There appears to be no threat of an income tax currently — no such bill appears to have been filed, let alone have reached the floor of either chamber, where it would be political kryptonite. And a 1993 constitutional amendment already holds that Texas can adopt a state income tax only if voters approve and that the money would go for the “support of education.”

But Senate Democrats on Monday sparred with Republicans over a seemingly arcane bit of language that could carry big budget implications.

The resolution says that the Legislature may not impose a net income tax on “individuals.”

Democrats, pointing to an analysis by the state’s nonpartisan Legislative Budget Board, said that could be interpreted by courts to apply to businesses, especially because the measure’s language uses that term rather than “natural persons,” which is often used in statutes.

The business levy, long a target of Republicans eager to shave taxes, brings in about $8 billion per biennium, helping to fund public schools.

“The term ‘individuals’ is not defined and could be interpreted to include entities that are currently subject to the state’s franchise tax,” the Legislative Budget Board analysis reads. “To the extent the joint resolution might exempt some entities from the franchise tax, there could be a loss to state revenue.”

[…]

Earlier during the debate, [author Sen. Pat] Fallon said the constitutional amendment would firm up the state’s opposition to income tax.

“I’m always in fear of an income tax,” he said. “Every day I wake up, the thought of Texas having an income tax makes me shudder. Physically shudder, not metaphorically.”

Seriously? Mere words cannot adequately express my reaction to Sen. Fallon’s delicate sensibilities, so mark me down as being somewhere between here and here. I do hope you sleep better tonight, Senator, and if not I recommend warm milk and a bedtime story, preferably one with a happy ending. As for my reaction, here it is:

“Why would pesky LBB fiscal facts be any help when discussing a major source of state revenue for schools?” Eva DeLuna Castro, a budget analyst with the left-leaning Center for Public Policy Priorities, wrote on Twitter. “I mean, it’s not as if major business conglomerates have highly paid tax lawyers waiting in the wings to explain why they are ‘individuals’ too.”

What could possibly go wrong? The Trib and the DMN have more.

No arbitration

And we’re on to the next phase of the firefighter pay battle.

The Houston Professional Fire Fighters Association on Tuesday asked Mayor Sylvester Turner to enter arbitration to settle its ongoing labor dispute with the city, a request the mayor shot down as he called instead for a return to collective bargaining.

The union’s request came less than a week after a state district judge ruled Proposition B unconstitutional and void. The charter amendment approved by voters last November granted firefighters the same pay as police of corresponding rank and seniority.

Turner made clear Tuesday that he does not intend to accept the union’s request.

“The city of Houston is willing to return to the table for collective bargaining which would be the regular course of business,” the mayor said in a written statement.

[…]

Fire union President Marty Lancton said the mayor had yet to contact the union about sitting down to negotiate anew. He repeatedly has questioned Turner’s claim that the city could not afford Prop B, and on Tuesday cast doubt on Turner’s willingness to negotiate a “fair raise” for firefighters.

Arbitration, Lancton contended, would resolve the pay dispute before Houston’s 2020 fiscal year starts July 1.

“This is a sensible solution,” Lancton said. “We continue to wait for the call that the mayor says he is willing to make. Let’s resolve this now, mayor.”

Turner spokeswoman Mary Benton said the union “knows how to reach the mayor,” and repeated Turner’s statement that his “door is open and he is ready and willing to meet with the fire union.”

So if I’m interpreting this correctly, the Mayor is offering to go back to the collective bargaining process, while the firefighters are saying instead let’s take our respective offers and present them to an arbitrator and let that person make the call. I’m not quite sure what to make of that. I suppose this is the HPFFA’s way of saying they trust the city to negotiate in good faith. If so, all I can say is that the city could say the same about the firefighters. Whatever the case, we’re now at a standoff about how to go about resolving the larger standoff. The firefighters can claim that they have the will of the voters on their side, but unless they win their appeal of the summary judgment declaring Prop B unconstitutional, that only means so much. In the meantime, I’m going to find my happy place and practice some deep breathing.

Senate approves one medical marijuana bill

A pleasant surprise.

Rep. Stephanie Klick

Marijuana advocates were handed an unlikely victory Wednesday after the Texas Senate advanced a bill greatly expanding the list of debilitating medical conditions that can legally be treated by cannabis oil in the state.

Although the upper chamber’s leadership once opposed bills that would relax the state’s pot policies, the Senate unanimously voted in favor of a bill by state Rep. Stephanie Klick, R-Fort Worth, that expands the state’s Compassionate Use Program, which currently allows the sale of cannabis oil only to people with intractable epilepsy who meet certain requirements.

The bill now heads back to the Texas House, where lawmakers can either approve the Senate changes or opt to iron out their differences in a conference committee before lawmakers adjourn in five days. Klick did not immediately respond to a request for comment on whether she’d accept the Senate changes to her bill.

The version of the bill approved by the Senate would expand the list of conditions that qualify for the medicine to include all forms of epilepsy; seizure disorders; multiple sclerosis; spasticity; amyotrophic lateral sclerosis, or ALS; terminal cancer; autism and incurable neurodegenerative diseases. The bill also axes a requirement in current statute that says those wanting access to the medicine need the approval of two licensed neurologists, rather than one.

“This bill is about compassion,” said state Sen. Donna Campbell, R-New Braunfels, the Senate sponsor of the bill. “For patients participating in the [Compassionate Use Program], they have had a remarkable and life-altering change because of this. That’s compassion.”

Under Campbell’s version of the bill, the Texas Department on Public Safety would still have oversight of the Compassionate Use Program. Her revised bill also keeps intact the 0.5% cap on the amount of the psychoactive element in marijuana, known as THC, that medical cannabis products are legally allowed to contain. Campbell’s version also axes a provision in Klick’s bill that calls for a research program to assess how effective cannabis is as a medical treatment option for various conditions.

See here for the background. For whatever the reason, Dan Patrick decided to cooperate and play nice, and so here we are. It’s not much, and it brings us no closer to the criminal justice reform part of this, but it’s a step forward, and the more of those the better. The House still needs to approve the Senate changes, and Greg Abbott still needs to sign it, but I feel good about this one going the distance.

Texas blog roundup for the week of May 20

The Texas Progressive Alliance has the sine die countdown clock going as it brings you this week’s roundup.

(more…)