SRC-JEC S.B. 986 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 986
77R3906 GJH-FBy: Duncan
Intergovernmental Relations
4/10/2001
As Filed


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.
As proposed, 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. 

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
property tax revenue lost as a result of the agreement if the owner of the
property fails to create the number of new jobs provided by the agreement,
and payment of a penalty, interest, or both, on that recaptured property
tax revenue. 

SECTION 2.  Effective date: upon passage September 1, 2001.