HBA-EDN, KDB H.B. 1449 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1449
By: Oliveira
Ways & Means
7/16/2001
Enrolled



BACKGROUND AND PURPOSE 

Local governments often use tax abatements to attract new industry and
commercial enterprises and to encourage the retention and development of
existing businesses.  Over 700 tax abatement agreements have been executed
by Texas local governments since the early 1980s.  Through 1999, these
agreements are credited with producing approximately 275,000 new or
retained jobs.  Prior to the 77th Legislature, state law allowed
incorporated cities, counties, school districts, and special districts to
enter into tax abatement agreements.  During the 1995 legislative session,
the legislature reauthorized local governments to continue using property
tax abatements until September 1, 2001.  House Bill 1449 extends the
expiration date on the Property Redevelopment and Tax Abatement Act until
September 1, 2009.    

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 1449 amends the Tax Code to extend the expiration date of the
Property Redevelopment and Tax Abatement Act until September 1, 2009.  

The bill requires the comptroller of public accounts, not later than
December 31 of each even-numbered year, to submit a report to the
legislature and to the governor on designated reinvestment zones and on tax
abatement agreements adopted under the Act. 
 
H.B. 1449 prohibits a school district from entering into a tax abatement
agreement under the Act on or after September 1, 2001.  

EFFECTIVE DATE

June 15, 2001.