H.B. 1816 78(R)    BILL ANALYSIS


H.B. 1816
By: McReynolds
County Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Certain governmental entities have the authority to levy local sales and
use taxes,  which are limited to a 2 percent cap.   Under current law,
Chapter 384 of the Local Government Code  allows counties with populations
below 45,000 in a  metropolitan rapid transit or a regional transportation
authorities to create county assistance districts.  These districts may
collect sales and use taxes in the unincorporated areas of the county to
pay for necessary services.  House Bill 1816 allows additional counties to
create county assistance districts only after the approval of local
voters. 


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

SECTION ONE:

Section 384.002.  Applicability.  Amends section 384.002 by allowing
additional counties whose population are below 45,000 and do not impose a
sales and use tax under Chapter 323, Tax Code or has any portion of its
territory included in an authority governed by Chapter 451 or 452,
Transportation Code to create county assistance district. 

SECTION TWO:

Section 384.003. Creation and Function of District. Amends subsection (b)
and (f) by placing a two percent cap for all combined sales and use taxes
in the district. Creates subsection (g) which authorizes the Commissioners
Court of an eligible county to call an election for the creation of a
county assistance district. 

EFFECTIVE DATE

This Act takes effect immediately if it receives a vote of two-thirds of
all the members elected to each house, as provided by Section 39, Article
III, Texas Constitution.  If this Act does not receive the vote necessary
for immediate effect, this Act takes effect September 1, 2003.