As used in this part 4, unless the context otherwise requires:
(1) Legislative oversight committee or committee means the legislative oversight committee concerning tax policy established in section 39-21-403.
(2) Task force means the task force concerning tax policy established pursuant to section 39-21-404.
(3) Tax policy refers to decisions by the state or local governments regarding taxes that have or may be levied, and includes an analysis of the benefits and burdens of the state's overall tax structure with respect to the promotion of certainty, fairness, adequacy, transparency, and administrative ease. The scope of tax policy to be considered by the committee and the task force is annually determined by the committee as set forth in section 39-21-403 (2)(b).
Source: L. 2021: Entire part added, (HB 21-1077), ch. 468, p. 3366, � 1, effective July 7.
39-21-403. Legislative oversight committee concerning tax policy - creation - duties - report - repeal. (1) Creation. (a) There is hereby created a legislative oversight committee concerning tax policy.
(b) The committee consists of six members as follows:
(I) Two senators appointed by the president of the senate and one senator appointed by the minority leader of the senate; and
(II) Two representatives appointed by the speaker of the house and one representative appointed by the minority leader of the house of representatives.
(c) (I) Appointees to the committee must have experience with or interest in the study areas of the committee and task force, as set forth in section 39-21-404.
(II) Appointments must be made no later than fourteen days after July 7, 2021.
(d) The terms of the members expire or terminate on the convening date of the first regular session of the seventy-fourth general assembly. As soon as practicable after such convening date, but no later than the end of the legislative session, the speaker and minority leader of the house of representatives and the president and minority leader of the senate shall each appoint or reappoint members in the same manner as provided in subsection (1)(b) of this section. Thereafter, the terms of members appointed or reappointed expire on the convening date of the first regular session of each general assembly, and all subsequent appointments and reappointments must be made as soon as practicable after such convening date, but no later than the end of the legislative session.
(e) The person making the original appointment or reappointment shall fill any vacancy by appointment for the remainder of an unexpired term. Members appointed or reappointed serve at the pleasure of the appointing authority and continue until the member's successor is appointed.
(f) The speaker of the house of representatives shall select the first chair of the committee, and the president of the senate shall select the first vice-chair. The chair and vice-chair shall alternate annually thereafter between the two houses.
(g) The chair and vice-chair of the committee may establish such organizational and procedural rules as are necessary for the operation of the committee and, in collaboration with the task force, guidelines and expectations for ongoing collaboration with the task force.
(h) (I) Members of the committee are entitled to receive compensation and reimbursement of expenses as provided in section 2-2-326.
(II) The director of research of the legislative council, the director of the office of legislative legal services, and the state auditor shall supply staff assistance to the committee as they deem appropriate, within existing appropriations.
(2) Duties. (a) (I) (A) The committee shall meet at least four times each year and at such other times as it deems necessary.
(B) Notwithstanding subsection (2)(a)(I)(A) of this section, the committee shall not meet during the 2025 interim. This subsection (2)(a)(I)(B) is repealed, effective July 1, 2026.
(II) Each committee member shall annually either attend or call in to at least one regular task force meeting. Committee members are encouraged to attend separate meetings and inform the rest of the committee about the current work of the task force.
(b) The committee shall annually define in writing, no later than the second meeting of the year, the scope of tax policy to be considered for the committee and the task force.
(c) (I) (A) The committee shall consider the policy considerations contained in the tax expenditure evaluations prepared by the state auditor pursuant to section 39-21-305 and the information contained in the reports prepared by the state auditor pursuant to section 39-21-306 concerning a review of federal tax law, including changes, that may have a significant impact on the state's tax base.
(B) Notwithstanding the state auditor's schedule established pursuant to section 39-21-305 (1)(d), the committee may, in writing, direct the state auditor to evaluate up to three additional specific tax expenditures to be included in the state auditor's evaluation reports due for the following year pursuant to section 39-21-305 (1)(e).
(C) The committee may, in writing, request that the state auditor prepare up to two reports annually on specific and discrete topics related to existing tax policy. Not later than thirty days after receipt of the request, the state auditor shall prepare for the committee chair a written proposed scope of work concerning the request. Upon approval of the proposed scope of the work by the committee chair, the state auditor shall proceed with the research and analysis required to complete the requested report.
(II) The committee is responsible for the oversight of the task force.
(d) (I) The committee may recommend legislative changes that are treated as bills recommended by an interim legislative committee for purposes of any introduction deadlines or bill limitations imposed by the joint rules of the general assembly.
(II) (A) Notwithstanding subsection (2)(d)(I) of this section, the committee shall not recommend legislation during the 2025 interim.
(B) This subsection (2)(d)(II) is repealed, effective July 1, 2026.
(e) (I) On or before January 1 of each year, the committee shall submit, and make publicly available on its website, a report to the general assembly. The annual report must briefly summarize the study issues, recommendations considered, and any actions taken by the committee and the task force during the previous year. The report must comply with the provisions of section 24-1-136 (9). Notwithstanding section 24-1-136 (11)(a)(I), the requirement in this section to report to the general assembly continues indefinitely.
(II) (A) The committee shall not submit a report on or before January 1, 2026.
(B) This subsection (2)(e)(II) is repealed effective, July 1, 2026.
Source: L. 2021: Entire part added, (HB 21-1077), ch. 468, p. 3366, � 1, effective July 7. L. 2024: (2)(c)(I) amended, (HB 24-1053), ch. 375, p. 2546, � 3, effective June 4. L. 2025: (2)(a)(I), (2)(d), and (2)(e) amended, (SB 25-199), ch. 149, p. 568, � 9, effective April 30.
39-21-404. Task force concerning tax policy - creation - membership - duties. (1) Creation. (a) There is hereby created a task force concerning tax policy. The task force consists of twenty-one members appointed as provided in subsections (1)(b), (1)(c), and (1)(d) of this section.
(b) Four nonvoting task force members, one appointment from each office, with relevant experience in economics, budgeting, or tax policy, shall be appointed by:
(I) The director of research of the legislative council;
(II) The director of the office of legislative legal services;
(III) The staff director of the joint budget committee; and
(IV) The state auditor.
(c) Seventeen voting members shall be initially appointed no later than thirty days after July 7, 2021, and held by the appointee until subsequent appointments are made by the committee under subsection (1)(d) of this section, or until the appointee is removed and replaced as allowed in subsection (1)(g) of this section, as follows:
(I) A representative of the office of state planning and budgeting appointed by the governor or his or her designee;
(II) A representative of the taxation division in the department of revenue appointed by the governor or his or her designee;
(III) A representative of the office of economic development appointed by the governor or his or her designee;
(IV) A representative of the office of the state treasurer appointed by the state treasurer or his or her designee; and
(V) Committee staff is responsible for publicly announcing vacancies for the following positions, and requesting candidates to submit a letter of interest for the specific position, so that the letters of interest are due no later than one week after July 7, 2021. The initial appointments shall be made by a majority decision of the speaker of the house of representatives, the president of the senate, the house and senate minority leaders, and the governor or the governor's designee:
(A) One member from a state public or private institution of higher education with knowledge of tax policy;
(B) One member from a state public or private institution of higher education with knowledge of economics;
(C) Four members representing local government, including one from a home rule city or city and county; one from a statutory city; one from a home rule county; and one from a statutory county;
(D) Two tax law practitioners who are not employed by a home rule or statutory city or city and county;
(E) Two certified public accountants with state and local tax experience who are not employed by a home rule or statutory city or city and county;
(F) One member representing a small business;
(G) One member representing a large business; and
(H) One member representing a nonprofit organization with expertise in tax policy.
(d) Seventeen voting members shall be appointed or reappointed no later than January 31, 2022, January 31, 2023, and no later than January 31 in every odd-numbered year thereafter as follows:
(I) A representative of the office of state planning and budgeting appointed or reappointed by the governor or his or her designee;
(II) A representative of the taxation division in the department of revenue appointed or reappointed by the governor or his or her designee;
(III) A representative of the office of economic development appointed or reappointed by the governor or his or her designee;
(IV) A representative of the office of the state treasurer appointed or reappointed by the state treasurer or his or her designee; and
(V) The chair of the committee in consultation with the vice-chair of the committee shall appoint or reappoint, with input from the governor's office, the speaker of the house of representatives, and the president of the senate, the following voting members:
(A) One member from a state public or private institution of higher education with knowledge of tax policy;
(B) One member from a state public or private institution of higher education with knowledge of economics;
(C) Four members representing local government, including one from a home rule city or city and county; one from a statutory city; one from a home rule county; and one from a statutory county;
(D) Two tax law practitioners who are not employed by a home rule or statutory city or city and county;
(E) Two certified public accountants with state and local tax experience who are not employed by a home rule or statutory city or city and county;
(F) One member representing a small business;
(G) One member representing a large business; and
(H) One member representing a nonprofit organization with expertise in tax policy.
(e) If the committee needs new candidates for the positions described in subsections (1)(d)(V)(A) through (1)(d)(V)(H) of this section, then the committee chair may request committee staff to publicly announce vacancies for any such positions, and to request candidates to submit a letter of interest for the specific position, so that the letters of interest are due no later than two weeks before the appointing deadline set forth in subsection (1)(d) of this section.
(f) Voting members of the task force serve without compensation.
(g) A vacancy occurring in any position held by a voting member must be filled as soon as possible by the appointing authority for that position set forth in subsection (1)(d) of this section. In addition, the chair of the committee in consultation with the vice-chair of the committee may remove any task force appointee who is appointed pursuant to subsection (1)(c) or (1)(d) of this section. Replacements for removed appointees are appointed by the respective appointing authorities set forth in subsection (1)(d) of this section.
(h) In appointing voting members to the task force pursuant to subsection (1)(d) of this section, the respective appointing authorities shall ensure that the membership of the task force includes persons who have experience with or interest in the study areas of the task force as set forth in subsection (2) of this section; persons who reflect a balance of tax perspectives and the ethnic, cultural, and gender diversity of the state; representation of all areas of the state; and, to the extent practicable, persons with disabilities.
(i) (I) All task force members are expected to seek input from the various departments, offices, or organizations they represent or that they are associated with, if any.
(II) In order to advance the work of the task force, task force members are encouraged to participate in decision-making with the understanding that individual votes on task force issues are based on subject matter expertise and do not commit representative entities or organizations to any position or action. Task force members shall adhere to any agreed upon procedural rules and guidelines.
(2) Issues for study. (a) The task force shall study tax policy within its scope as annually defined by the committee under section 39-21-403 (2)(b) and shall develop and propose tax policy modifications for committee consideration.
(b) The requirements set forth in this subsection (2) do not prohibit the task force, at any time during its existence, from studying, presenting findings and recommendations to the committee on, or requesting permission from the committee to draft legislative proposals concerning any issue described in this subsection (2).
(c) Upon request by the task force, the office of the state auditor shall present to the task force the policy considerations contained in the tax expenditure evaluations prepared by the state auditor pursuant to section 39-21-305 and the information contained in the reports prepared by the state auditor pursuant to section 39-21-306 concerning a review of federal tax law, including changes, that may have a significant impact on the state's tax base.
(3) Additional duties of the task force. The task force shall annually deliver tax policy and legislative recommendations to the committee pursuant to this section. In addition, the task force shall:
(a) On or before August 1 of each year, appoint a chair and vice-chair from among its members;
(b) Meet at least six times each year, or more often as directed by the chair of the committee;
(c) Establish organizational and procedural rules for the operation of the task force and for collaboration with the committee;
(d) Designate specific task force members responsible for collaborating with and obtaining input from other state officials, groups, or task forces that complement or relate to the task force's identified areas of study;
(e) Create subcommittees as needed to carry out the duties of the task force. The subcommittees may consist, in part, of persons who are not members of the task force but have particular expertise related to the topics being studied. Such persons may vote on issues before the subcommittee but are not entitled to vote at task force meetings.
(f) Upon request by a committee member, with approval from the committee chair in consultation with the committee vice-chair, provide evidence-based feedback on the potential benefits or consequences of a legislative or other policy proposal not directly affiliated with or generated by the task force, including any bill or resolution introduced by the general assembly that affects tax policy. The feedback should, if possible, be delivered within two weeks to the entire committee and remain as concise as possible while capturing any available evidence. If the task force cannot identify evidence to effectively inform a response, the feedback will indicate a lack of evidence and report on any actions taken.
(g) On or before October 1 of each year, prepare and submit to the committee, which the committee may make publicly available on its website, a report that, at a minimum, includes:
(I) Issues studied by the task force, as well as findings for legislative or other recommendations;
(II) Legislative or policy proposals of the task force that identify the policy issues involved, the agencies responsible for the implementation of the changes, and the funding sources required for implementation;
(III) A summary of monthly task force meeting activities and discussions;
(IV) Any evidence-based feedback provided to the committee pursuant to subsection (3)(f) of this section; and
(V) A summary of efforts made to communicate, collaborate, or coordinate with other groups or task forces.
(4) Coordination. The task force may work with other state agencies, groups, or task forces that are pursuing issues similar to those addressed in subsection (2) of this section. The task force may develop relationships with other task forces, committees, and organizations to leverage efficient policy-making opportunities through collaborative efforts.
(5) Task force funding - staff support. (a) The legislative council staff, the office of legislative legal services, and the department of revenue shall supply staff assistance, within existing appropriations, to the task force as the committee deems appropriate. If existing appropriations are not adequate to supply staff assistance, the director of the legislative council staff, the director of the office of legislative legal services, or the director of the department of revenue shall request additional necessary funding in their annual budget requests.
(b) Any state department, agency, or office with an active representative on the task force is authorized to receive and expend gifts, grants, and donations, including donations of in-kind services for staff support, from any public or private entity for any direct or indirect costs associated with the duties of the task force.
Source: L. 2021: Entire part added, (HB 21-1077), ch. 468, p. 3368, � 1, effective July 7. L. 2024: (2)(c) added, (HB 24-1053), ch. 375, p. 2547, � 4, effective June 4.