HBA-JLV H.B. 820 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 820
By: Giddings
Economic Development
7/17/2001
Enrolled


BACKGROUND AND PURPOSE 

State law limits the number of total businesses eligible to be designated
as enterprise zone projects in the state and prohibits an area within a
municipality from being designated as an enterprise zone if three
enterprise zones are already located in the jurisdiction of the
municipality.  The Texas Enterprise Zone Program was created to stimulate
job creation and capital investment in economically-distressed communities,
but prior to the 77th Legislature state limits on the number of enterprise
zones, particularly in larger cities, impaired the intent of the program to
help create job opportunities.  House Bill 820 increases the maximum number
of businesses the Texas Department of Economic Development is authorized to
designate as enterprise projects during any biennium and allows an increase
in the number of Texas enterprise project designations in each enterprise
zone in cities and counties with a population of 250,000 or more. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 820 amends the Government Code to increase, from 65 to 85, the
maximum number of businesses the Texas Department of Economic Development
(TDED) is authorized to designate as enterprise projects during any
biennium.  The bill provides that the maximum number of qualified
businesses that TDED is authorized to designate as enterprise projects for
each nominating body during any biennium is four, plus two additional bonus
projects TDED may award in a municipality or county with a population of
less than 250,000, or six, if the governing body of the enterprise zone is
the governing body of a municipality or county with a population of 250,000
or more. 

EFFECTIVE DATE

September 1, 2001.