BILL ANALYSIS

H.B. 178

By: Larson

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that, according to experts, water conservation is the least expensive way to ensure an adequate water supply. The parties assert that water-efficient products save consumers money and reduce consumption rates for the state's valuable water resources, which are made ever more valuable due to ongoing drought conditions.

The parties further note that there is currently an annual sales tax holiday for energy-efficient products intended to encourage consumers to replace inefficient home appliances and reduce energy consumption, but that water-efficient products are not included in the holiday.

H.B. 178 seeks to encourage consumers to replace water-inefficient products and implement water saving technologies within their homes.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 178 amends the Tax Code to provide a sales tax exemption for the sale of a WaterSense product that has been designated as such under the WaterSense program operated by the U.S. Environmental Protection Agency, or a similar successor program, if the sale takes place during a period beginning at 12:01 a.m. on the Saturday preceding the last Monday in May (Memorial Day) and ending at 11:59 p.m. on the last Monday in May.

EFFECTIVE DATE

July 1, 2013, or, if the bill does not receive the necessary vote, October 1, 2013.