SRC-JEC H.B. 1194 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1194
77R111 JD-DBy: Brimer (Harris)
Intergovernmental Relations
5/10/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, property in a reinvestment zone that is owned by a
member of a zoning planning board or commission of the municipality or a
member of the governing body is excluded from property tax abatement or tax
increment financing. In the past, there has been some confusion about how
to apply this law to a person who owns the property and then is elected to
serve on the governing body of the municipality.  H.B. 1194 allows property
that was subject to a property tax abatement or tax increment financing to
remain eligible even if the owner of the property becomes an elected
official of a municipality.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 312.204(d), Tax Code, as follows:

(d) Adds an exception.  Provides that property that is subject to a tax
abatement agreement in effect when a person becomes a member of the
governing body or of the zoning or planning board or commission does not
cease to be eligible for property tax abatement under that agreement
because of the person's membership on the governing body, board, or
commission. Provides that property that is subject to tax increment
financing when the person becomes a member of the governing body or of the
zoning or planning board or commission does not become ineligible for tax
increment financing in the same reinvestment zone because of the person's
membership on the governing body, board, or commission. 

SECTION 2.  Amends Section 312.402(d), Tax Code, to add an exception.
Provides that property that is subject to a tax abatement agreement under
this section in effect when the person becomes a member of the
commissioners court does not cease to be eligible for property tax
abatement under that agreement because of the person's membership on the
commissioners court. 

SECTION 3.  Effective date: upon passage or September 1, 2001.