HBA-EDN, KDB H.B. 1449 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1449 By: Oliveira Ways & Means 3/9/2001 Introduced 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. Under current law, incorporated cities, counties, school districts, and special districts are allowed 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 eliminates the expiration date on tax abatements. 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 repeal the sections relating to the expiration of the Property Redevelopment and Tax Abatement Act. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.