BILL ANALYSIS



S.B. 821
By: Madla (Gallego)
March 30, 1995
Committee Report (Amended)


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.  

Election procedures and ballot language are also established.

SECTION 2.  Emergency clause


EXPLANATION OF AMENDMENT

COMMITTEE AMENDMENT #1 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.





SUMMARY OF COMMITTEE ACTION

Pursuant to an announcement on the House Floor, the committee met
in a formal meeting on March 29, 1995.  Without objection,
committee amendment #1 by Representative Heflin was adopted.  By a
record vote of 8 ayes, 0 nays, 0 present not voting and 3 absent,
the committee voted to report S.B. 821 to the House with amendment
with the recommendation that it do pass.