BILL ANALYSIS



C.S.H.B. 2087
By: Gallego
03-27-95
Committee Report (Substituted)


BACKGROUND

By Title D, the Environmental Protection Agency has imposed
environmental requirements on municipal landfills.  Subsequently,
some counties in Texas are finding it difficult to properly dispose
of waste and are seeking new remedies.

Another problem for certain counties is raising enough revenue to
meet financial obligations for their criminal detention centers. 
Criminal detention centers may house county, state and federal
prisoners.  For example, Maverick County is experiencing a problem
making the bond payments on their facilities because these payments
and the operational costs of the center surpasses the budget for
the center.  This has resulted in the probability that the county
will be unable to make its bond payments in the future.

PURPOSE

This bill provides for an election to raise the sales and use tax
in qualifying counties for the purposes of building, operating or
maintaining a landfill or a criminal detention center.

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 Subtitle C, Title 3, Tax Code, by adding Chapter
325 (County Sales and Use Tax for Landfill and Criminal Detention
Center).  Chapter 325 creates a county sales and use tax to build,
operate or maintain a landfill and a criminal detention center. 
Counties of 37,500 or less that border the Rio Grande containing a
municipality with a population of more than 15,000 may adopt this
tax by an election of the voters.  The tax rate would be set at 1/2
percent and may only take effect if the combined rate of all sales
and use taxes imposed by the county and other qualifying
subdivisions of the state do not exceed two percent at any location
in the county.  

Requires that any additional money beyond what is necessary for the
landfill and detention center shall be used for the reduction of
property taxes.  Upon retirement of the criminal detention center
bonds and the closure or sale of the landfill, the tax shall
expire.

Election procedures and ballot language are also established.

SECTION 2.  Emergency clause

COMPARISON OF ORIGINAL TO SUBSTITUTE

The committee substitute narrows the criteria by which a county
could qualify under Chapter 325.  The original bill defined the
criteria as a county with a population of 40,000 or less that
borders the Rio Grande.  C.S.H.B. defines the criteria as a county
with a population of 37,500 or less that borders the Rio Grande
containing a municipality with a population of more than 15,000.

In addition, the committee substitute includes language to require
that any additional money beyond what is necessary for the landfill
and detention center be used for the reduction of property taxes,
and upon retirement of the criminal detention center bonds and the
closure or sale of the landfill, the tax shall expire.


SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance to the rules and a public
hearing was held on March 21, 1995.  Representative Gallego
explained H.B. 2087.  The Chair laid out a committee substitute by
Craddick.  The Chair laid out committee amendment #1 by Heflin. 
Without objection, the committee adopted the amendment to the
substitute and the staff was directed to incorporate the amendment
into the substitute.  Without objection, the committee adopted
C.S.H.B. 2087.  By a record vote of 6 ayes, 0 nays, 0 present not
voting and 5 absent, the committee voted to report H.B. 2087 to the
House as substituted with the recommendation that it do pass.


     Testimony received in favor of the bill:
           Carlos A. Pereda, Jr., representing himself and Maverick
County