SRC-SEW H.B. 2682 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2682
By: Allen (West)
Intergovernmental Relations
5/11/2001
Engrossed


DIGEST AND PURPOSE 

A tax increment reinvestment zone is a special district created by a local
governmental entity to revitalize an area by using the tax increment
generated by economic development within the zone to finance debt service
on bonds used to revitalize the zone. In 1999, school districts were
prohibited from entering new agreements to participate in these tax
increment financing districts, but they retained the authorization to
fulfill existing agreements. If a school district is unable to locate
services or resources contracted under an existing agreement within the
reinvestment zone of the municipality, then the school district may be
unable to complete needed projects. H.B. 2682 authorizes certain school
districts to enter into an agreement for a municipality with a reinvestment
zone to dedicate revenue from the tax increment fund to the school district
for certain projects.  

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 Chapter 311, Tax Code, by adding Section 311.0085, as
follows: 
 
Sec. 311.0085.  POWER OF CERTAIN MUNICIPALITIES. Provides that this section
applies only certain municipalities.  Defines "educational facility."
Authorizes a municipality, in addition to exercising the powers described
by Section 311.008, to enter into a new agreement, or amend an existing
agreement, with a school district that is located in whole or in part in a
reinvestment zone created by the municipality to dedicate revenue from the
tax increment fund to the school district for acquiring, constructing, or
reconstructing an educational facility located in or outside of the zone. 
 
SECTION 2.  Effective date: upon passage or September 1, 2001.