SRC-SEW S.B. 1480 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1480
77R6000 GJH-FBy: Madla
Intergovernmental Relations
3/19/2001
As Filed


DIGEST AND PURPOSE 

Under current law, municipalities that have created tax increment
reinvestment zones are authorized to appoint 10 and sometimes more members
to the board of directors of the zone while other participating tax units
are each authorized to appoint only one member.  As proposed, S.B. 1480
authorizes a taxing unit approving participation in the zone to have the
right to appoint as many members as are appointed by the municipality that
created the zone.  The board continues to consist of at least five and not
more than 15 members.   

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 Sections 311.009(a), (b), and (f), Tax Code, as follows:

(a) Deletes text regarding an exception in Subsection (b).  Authorizes a
taxing unit other than a municipality that has entered into an agreement
under Section 311.013 to pay all or part of the tax increment produced by
the unit into the tax increment fund for the zone to appoint the same
number of members as are appointed by the municipality that created the
zone.  Makes a conforming change.  Deletes text authorizing the governing
body of certain municipalities to appoint directors to the board. 

(b) Authorizes a taxing unit, if the zone was designated under Section
311.005(a)(5), to appoint a member of the board only if the taxing unit has
entered into an agreement under Section 311.013 to pay all or part of the
tax increment produced by the unit into the tax increment fund for the
zone.  Deletes text regarding the number of members on the board of
directors of the zone.  Deletes text regarding school districts and
counties. Deletes text regarding the remaining members of the board
appointed by the governing body of the municipality that created the zone. 

(f) Requires the board of the directors of a reinvestment zone (rather than
the governing body of the municipality) each year to appoint one member of
the board to serve as chairman for a term of one year that begins on
January 1 of the following year. 

SECTION 2.  Amends Section 312.002, Tax Code, by adding Subsection (e), to
authorize the governing body of a taxing unit to include in the unit's
guidelines a fee in an amount not to exceed $1,000 for a person applying
for or requesting a tax abatement under this chapter. 

SECTION 3.  Authorizes Section 312.003, Tax Code, to delete text regarding
authorizing certain information to be subject to disclosure when the tax
abatement agreement is executed.  Deletes text providing that information
in the custody of a taxing unit after the agreement is executed is not
confidential under this section. 
 
SECTION 4.  Amends Section 312.204(a), Tax Code, to authorize the agreement
to take effect on January 1 of the year following the year in which the
improvements or repairs are substantially completed.   

SECTION 5.  Amends Section 312.206(a), Tax Code, to delete text regarding
executing a written tax abatement agreement with the owner of the property
by a certain date. 

SECTION 6.  Provides that Sections 311.009(a) and (b), Tax Code, as amended
by this Act, apply only to the appointment of the board of directors of a
reinvestment zone that occurs on or after the effective date of this Act.
Provides that the appointment of the board of directors of a reinvestment
zone that occurs before the effective date of this Act is governed by the
law that was in effect immediately before the effective date of this Act,
and the former law is continued in effect for that purpose. 

SECTION 7.  Effective date: September 1, 2001.