BILL ANALYSIS



C.S.H.B. 788
By: Brimer
April 12, 1995
Committee Report (Substituted)


BACKGROUND

Certain cities may enact an economic development sales tax under a
law implemented by Senate Bill 376, 72nd Regular Session.  To be
eligible for this provision the city must not have a mass transit
system tax and must have a current combined total sales tax of
7.25% or less.  Eligible projects that this tax may finance
include:    1).  Land, buildings, equipment, facilities and
improvements suitable for use for professional and amateur sports,
including children's sports;  2).  Athletic, entertainment,
tourist, convention, and public park facilities, including
stadiums, ball parks, auditoriums, amphitheaters, concert halls,
learning centers, parks and open space improvements; and 3). 
Municipal buildings, museum exhibition facilities and related
stores, restaurants, concessions and parking and transportation
facilities.

PURPOSE

The purpose of this bill is to includes in the definition of
"eligible city" a city located in a county with a population of
more than 1,100,000 and that does not have a combined sales and use
taxes that exceeds 7.75 percent.

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.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 4B(a)(1), Development Corporation Act of
1979 (Article 5190.6, Vernon's Texas Civil Statutes), by adding to
the definition of "eligible city" a city that is located in a
county with a population of more than 1,100,000 according to the
most recent federal census, in which there is more than 40
incorporated municipalities, and that has a combined rate of all
sales and sue taxes imposed by the city, the state, and other
political subdivisions that does not exceed 7.75 percent.  Changes
the numbering to conform with added definition.

SECTION 2.  Emergency clause and immediate effective date.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill raised the sales tax eligibility requirement of
the current combined sales tax for a city located in a county with
a population of 750,000 or more, from 7.25 percent of less to 7.75
percent or less.  The substitute leaves the tax eligibility
requirement for a city in a county with a population of 750,000 or
more at its current 7.25 percent, and adds to the definition of
"eligible city" a city that is located in a county with a
population of more than 1,100,000, and has more than 40
incorporated municipalities, who has a combined sales tax rate of
7.75 percent.  Changes the numbering to conform with added
definition.

SUMMARY OF COMMITTEE ACTION

H.B. 788 was considered by the committee in a public hearing on
March 15, 1995.  Testifying on the bill was Bob Bearden,
representing the Comptroller's Office.  Testifying in favor of the
bill was Mayor Bill Abbott, representing the City of Kennedale.  No
one testified against the bill.  H.B. 788 was left pending in
committee.  H.B. 788 was reconsidered by the committee in a public
hearing on April 10, 1995.  The committee considered a complete
substitute for the bill.  The substitute was adopted without
objection.  The bill was reported favorably as substituted, with
the recommendation that it do pass and be printed by a record vote
of 8 ayes, 0 nays, 0 pnv, 1 absent.