SRC-SEW H.B. 3006 77(R) BILL ANALYSIS Senate Research Center H.B. 3006 By: Uresti (Madla) Intergovernmental Relations 5/7/2001 Engrossed DIGEST AND PURPOSE Under current law, a taxing unit that levies taxes on real property in a reinvestment zone is authorized to appoint one member to the board of directors of the zone, and only certain taxing units are authorized to appoint members to a board of a zone designated through petition. Because of the limitation on the ability of a taxing unit to appoint members to a board of directors of a reinvestment zone, the board may not equally represent the different interests in the reinvestment zone. H. B. 3006 provides for a taxing unit to appoint as many members to the board of directors of a reinvestment zone as the municipality that created the zone. 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 311.009, Tax Code, as follows: Sec. 311.009. (a) Deletes text referencing Subsection (b) and makes a nonsubstantive change. Authorizes each taxing unit other than a municipality that levies taxes on real property in the reinvestment zone to appoint one member of the board of directors of the reinvestment zone (board), except that if the unit has approved the payment of all or part of the tax increment produced by the unit, it is required to have the right to appoint as many members as are appointed by the municipality that created the zone. Deletes text prohibiting the governing body of the municipality that created the zone from appointing more than 10 directors to the board except under certain conditions. (b) Deletes text providing that the board consists of nine members. Deletes text regarding each school district or county that levies taxes on real property in the zone. Authorizes a taxing unit, if the zone was designated under Section 311.005(a)(5), to appoint a (rather than one) member of the board only if the unit (rather than school district or county) has approved the payment of all or part of the tax increment produced by the unit. Deletes text providing that the remaining members of the board are appointed by the governing body of the municipality that created the zone. (f) Requires the board of directors of a reinvestment zone (rather than the governing body of the municipality) each year to appoint one of its members to serve as chairman for a term of one year that begins on January 1 of the following year. SECTION 2. Effective date: September 1, 2001.