BILL ANALYSIS



S.B. 1092
By: Cain (De La Garza)
May 12, 1995
Committee Report (Unamended)


BACKGROUND

Chapter 791, Government Code, authorizes political subdivisions to
enter into interlocal contracts with each other in order to
cooperatively provide services or perform functions.  The purpose
of this contract authority is to save taxpayers' money by creating
economies of scale.

Traditionally, such cooperative entities have been treated as if
they were political subdivisions themselves for tax purposes. 
However, the statutory authority for this treatment is unclear. 
Revocation of this status would result in higher costs for the
participating subdivisions and ultimately, higher local property
taxes.

PURPOSE

S.B. 1092 provides that property held and used for a public purpose
is exempt from or subject to taxation under an interlocal contract
between political subdivisions.

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 791.013, Government Code, by adding
           Subsection (c), to provide that all property that is
           held and used for a public purpose by the administrative
           agency or designated local government is exempt from or
           subject to taxation in the same manner as if the
           property were held and used by the participating
           political subdivisions.

SECTION 2. Emergency Clause.

SUMMARY OF COMMITTEE ACTION

Public notice was posted in accordance with the rules, and a public
hearing was held on May 9, 
1995.  Representative Finnell explained the bill.  By a record vote
of 8 ayes, 0 nays, 0 present not voting and 3 absent, the committee
voted to report S.B. 1092 to the House without amendment with the
recommendation that it be sent to the Local & Consent Calendar, and
that it do pass.

     Testimony received in favor of the bill:
           Joe Woods, representing the Texas Municipal League
           Intergovernmental Risk      Pool