SRC-JEC H.B. 2870 77(R)BILL ANALYSIS


Senate Research CenterH.B. 2870
77R13905 ATP-DBy: Ramsay (Staples)
Intergovernmental Relations
5/8/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

Currently, a municipality may offer tax abatements to certain businesses to
promote economic development.  H.B. 2870 explicitly authorizes a county to
make loans and grants of public money and provide county services and
personnel to negotiate tax abatement agreements. 

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 Section 381.004, Local Government Code, by adding
Subsections (f) and (g), as follows: 

(f) Authorizes a commissioners court to develop and administer a program
authorized by Subsection (b) for making loans and grants of public money
and providing personnel and services of the county. 

(g) Authorizes the commissioners court to develop and administer a program
authorized by Subsection (b) for entering into a tax abatement agreement
with an owner or lessee of a property interest subject to ad valorem
taxation.  Provides that the execution, duration, and other terms of the
agreement are governed, to the extent practicable, by the provisions of
Sections 312.204, 312.205, and 312.211, Tax Code, as if the commissioners
court were the governing body a municipality. 

SECTION 2.  Provides that an act or proceeding of the commissioners court
of a county that relates to a program described by Section 381.004(f) or
(g), Local Government Code, as added by this Act, and that occurs before
the effective date of this Act is validated as of the date the act or
proceeding occurred. 

SECTION 3.  Effective date: upon passage or September 1, 2001.