HBA-MSH H.B. 2868 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2868 By: Ramsay County Affairs 3/25/2001 Introduced BACKGROUND AND PURPOSE The Texas Constitution prohibits a county, city or town from levying a tax rate in excess of $.80 for every $100. The tax rates of different taxing authorities are added to reach the total tax rate for a county. Therefore, county governments must compete for tax revenue with other groups, and some counties may be unable to meet obligations to provide essential government services. House Bill 2868 authorizes a county that has reached the maximum tax rate to be reimbursed by the state for expenses incurred in providing essential government services. 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 2868 amends the Local Government Code to provide that the grants for essential government services apply only to country that has levied the maximum state tax allowed for the two-year period preceding any distribution of funds under these provisions. The bill authorizes the Texas Department of Housing and Community Affairs (TDHCA) to distribute funds appropriated by the legislature and designated for distribution to reimburse a county that has levied the maximum state tax allowed for expenses incurred in the provision of an essential government service during the preceding fiscal year of the county. The bill requires TDHCA to adopt regulations for the equitable distribution of the funds and for ensuring that the funds are used for approved purposes. The bill provides that all of the funds distributed are subject to audit by the state auditor. EFFECTIVE DATE September 1, 2001.