BILL ANALYSIS


                                                        S.B. 1092
                                                         By: Cain
                                      Intergovernmental Relations
                                                          3-23-95
                                     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

As proposed, 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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.
           Effective date:  90 days from adjournment.