SRC-MWN H.B. 1880 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1880
By: Swinford (Duncan)
Natural Resources
5/9/2001
Engrossed




DIGEST AND PURPOSE 

Currently, there is no statute that allows for a district to be created for
the purpose of processing an agricultural commodity. Such districts may aid
the prosperity of Texas agricultural producers by enabling them to process
their own products. This may allow producers to compete with corporations
by providing a mechanism for producers to acquire capital to process
agricultural products locally and exempting these districts from property
taxes. H.B. 1880, titled the Agricultural Development Act, authorizes
agricultural producers to petition the commissioners court of a county to
create the Texas Agricultural Development District. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of directors of a
district in SECTION 1 (Sections 60.084 and 60.101, Agriculture Code) of
this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  H.B. 1880 amends the Agriculture Code to authorize the
commissioners court of a county, on petition of at least 10 residents of a
county included within a proposed Texas Agricultural Development District
(district), to commence the creation of a district to provide incentives
for the development of agricultural operations and facilities (Secs. 60.002
and 60.021). The bill sets forth provisions regarding the petition to
establish a district, a hearing to consider the petition, as well as notice
of the hearing (Secs. 60.021-60.025). The bill requires the commissioners
court to enter an order granting the petition and creating the district if
the petition conforms to the requirements and the creation of the district
and the proposed development is feasible and necessary and would serve the
public purpose of economic development (Sec. 60.026).  

H.B. 1880 provides that a district is governed by a board of directors and
sets forth provisions regarding the composition, powers, duties, and
operation of the board, and the appointment, election, and qualification of
directors (Secs. 60.027-60.033 and 60.081-60.088). H.B. 1880 sets forth
provisions regarding the powers and duties of the district and authorizes
the district to exercise the power of eminent domain within the boundaries
of the district for the purpose of acquiring an agricultural facility
(Secs. 60.051-- 60.065). H.B. 1880 sets forth provisions regarding the
financial powers and duties of a district and authorizes a district to
impose charges, borrow money, loan money, invest money, select a depositor,
establish a system of accounts, and set a fiscal year (Secs. 60.101-60.106
and 60.121--60.134). The bill authorizes a district to issue bonds and sets
forth provisions regarding the bonds (Secs.60.103--60.105).  

The bill authorizes a district to use tax increment financing (Sec.
60.106). The bill authorizes a district to impose assessments and sets
forth provisions regarding the assessments (Secs. 60.121--60.134). H.B.
1880 provides that a petition to create a district must include a pledge
that the district will make payments in lieu of taxes based on the value of
the property in the year of the district's creation to any school district
and county in which any real property to be owned by the district is
located, and if the  district employs more than 50 persons, the district
will make payments in lieu of taxes to any school district in an amount
negotiated between the district and the school district (Sec. 60.022). The
bill sets forth provisions regarding the dissolution of a district (Secs.
60.151 and 60.152).  

SECTION 2.  Effective date:  upon passage or September 1, 2001.