JKM H.B. 1526 75(R)    BILL ANALYSIS


ECONOMIC DEVELOPMENT
H.B. 1526
By: Oliveira
3-4-97
Committee Report (Amended)



BACKGROUND 
Cities and counties that grant tax abatements must report to the
comptroller's office for taxing purposes and to the Department of Commerce
for purposes of maintaining a registry of tax abatement agreements.  The
reporting requirements are duplicative and often communities fail to
report to Commerce because of lack of knowledge of that reporting
requirement.  Consequently, it is feared the registry is incomplete.
During the legislative interim, the House Economic Development Committee
recommended the Legislature consolidate reporting requirements into one
agency 

PURPOSE

To consolidate reporting requirements of tax abatements and reinvestment
zones into one agency. 

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 312.005 (a) of the Tax Code by replacing the
Texas Department of Commerce with the comptroller as the designated agency
to maintain a central registry of reinvestment zones and of ad valorem tax
abatement agreements. (b) Replaces the Department of Commerce with the
comptroller's office as the agency authorized to provide administrative
assistance to a taxing unit.  Gives the department and the comptroller
authority to provide technical assistance to a local governing body
regarding designation of reinvestment zones, the adoption of tax abatement
guidelines, and the execution of tax abatement agreements. 

SECTION 2.  This act takes effect September 1, 1997

SECTION 3. Emergency clause.


EXPLANATION OF AMENDMENTS

Amendment #1.  Amends 312.005, Tax Code, to remove the requirement that
taxing units report to the Department of Commerce.