SRC-JEC S.B. 944 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 944
77R6917 JMG-DBy: Van de Putte
Intergovernmental Relations
3/16/2001
As Filed


DIGEST AND PURPOSE 

Currently, hospital districts are partially funded by ad valorem taxes to
help offset the rising cost of providing quality health care, to needy and
indigent populations.  Texas law permits participation by hospital
districts in tax abatement agreements. One effect of this participation is
to delay the receipt of ad valorem tax revenue by hospital districts.  As
proposed, S.B. 944  prohibits the participation by the Bexar County and
Harris County Hospital Districts in 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 Chapter 281E, Health and Safety Code, by adding Section
281.095, as follows: 

Sec. 281.095.  PROHIBITION AGAINST PARTICIPATION IN TAX ABATEMENT
AGREEMENT:  BEXAR COUNTY HOSPITAL DISTRICT AND HARRIS COUNTY HOSPITAL
DISTRICT.  (a)  Defines "district."   

(b)  Prohibits the district from entering into a  contract or agreement to
participate in a tax abatement agreement under Section 311.0125 (Tax
Abatement Agreements), Tax Code, or Chapter 312 (Property Redevelopment and
Tax Abatement Act), Tax Code. Provides that this subsection does not affect
the validity of a tax abatement agreement entered into by the district
before September 1, 2001. 

(c)  Prohibits a tax abatement agreement entered into before September 1,
2001, from being amended after that date to increase the amount of the tax
abatement or to increase the time during which the district may participate
in the tax abatement agreement. 

(d)  Prohibits an agreement entered into before September 1, 2001, from
including in any amendment made on or after September 1, 2001, any of the
conditions prohibited by Subsection (c). 

SECTION 2.  Effective date: September 1, 2001.