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.