SRC-CDH H.B. 1526 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1526
By: Oliveira (Sibley)
Economic Development
5-14-97
Engrossed


DIGEST 

Currently, taxing units that grant tax abatements must report such
activity to both the Texas Department of Commerce (TDOC) and the
Comptroller of Public Accounts (comptroller). Additionally, TDOC is
responsible for maintaining the state's reinvestment zone registry.
Critics of the present system argue that reporting to both the TDOC and
the comptroller is duplicative and unnecessary.  This legislation
transfers the reinvestment zone registry from the TDOC to the comptroller
and eliminates the requirement that local taxing units report tax
abatement activity to the TDOC.  H.B. 1526 also authorizes the comptroller
to assist local taxing units to comply with the reporting requirement and,
and allows both TDOC and the comptroller to provide certain technical
assistance to taxing units that grant tax abatements.   

PURPOSE

As proposed, H.B. 1526 provides for information and assistance concerning
reinvestment zones. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 312.005, Tax Code, to require the comptroller,
rather than the Texas Department of Commerce (TDOC), to maintain a central
registry of reinvestment zones and of ad valorem tax abatement agreements.
Authorizes TDOC and the comptroller to provide technical assistance to a
local governing body regarding the designation of reinvestment zones, the
adoption of tax abatement guidelines, and the execution of tax abatement
agreements.  Makes conforming changes. 

SECTION 2. Effective date:  September 1, 1997.

SECTION 3. Emergency clause.