BWH H.B. 3594 75(R) BILL ANALYSIS COUNTY AFFAIRS H.B. 3594 By: Nixon, Joe 4-30-97 Committee Report (Unamended) BACKGROUND The Westchase District, a municipal management district within the City of Houston, is one of a number of areas that are currently popular for development within the greater Houston metropolitan area. Tax abatements by overlapping taxing jurisdictions under Chapter 312, Tax Code, are the most commonly used incentive to attract new development to these competing areas. The district finances its services and improvements through assessments rather than taxes, and has granted abatements of its assessments in accordance with Chapter 312, Tax Code. However, Chapter 312 does not clearly address whether a jurisdiction that finances its services by assessments, can grant abatements of its assessments. The district has requested this legislation to clarify that it has the authority or to grant it the authority to grant abatements of its assessments as an economic development tool in order to remain competitive in attracting new business to the area. PURPOSE The purpose of the bill is to grant the district the authority or to clarify that the district has the authority to grant abatements of its assessments in accordance with Chapter 312, Tax Code, and to validate the districts actions including the granting of abatements of assessments prior to the effective date of the Act. 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 the legislation that created the district by adding the provision that the district may grant abatements of its assessments in accordance with Chapter 312, Tax Code. SECTION 2.Validates all acts of the district prior to the effective date of the Act except those in litigation or those already held invalid by a court of competent jurisdiction. SECTION 3. Emergency clause.