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.