SRC-JEC S.B. 986 77(R)BILL ANALYSIS Senate Research CenterS.B. 986 By: Duncan Intergovernmental Relations 6/20/2001 Enrolled DIGEST AND PURPOSE Currently, Texas cities give financial incentives by way of tax abatement agreements for the purpose of job creation in their communities. However, a city has no recourse when the requisite job creation is not fulfilled. S.B. 986 gives cities the statutory authority to recapture lost property tax revenue if the owner of the commercial enterprise fails to create the number of new jobs required by the agreement or fails to meet the requirements of the agreement in any way. 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 312.205(b), Tax Code, to authorize an agreement made under Section 312.204 or 312.211 to include, at the option of the governing body of the municipality, provisions for the recapture of all or a portion of property tax revenue lost as a result of the agreement if the owner of the property fails to create all or a portion of the number of new jobs provided by the agreement, if the appraised value of the property subject to the agreement does not attain a value specified in the agreement, or if the owner fails to meet any other performance criteria provided by the agreement, and payment of a penalty or interest, or both, on that recaptured property tax revenue. SECTION 2. Effective date: upon passage September 1, 2001.