SRC-JLB S.B. 294 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 294
78R3428 KEG-DBy: Lindsay
Intergovernmental Relations
2/11/2003
As Filed


DIGEST AND PURPOSE 

Currently, Texas law requires the governing body of a taxing unit to
approve tax abatement agreements with the owner of real or personal
property in a reinvestment zone.  The Harris County Hospital District
would like the Harris County Commissioners Court to be responsible for
processing and approving all of the ad valorem tax abatement agreements
that affect its taxable property.  The commissioners court is already
responsible for approving the hospital district's annual budget and
setting its tax rate, and the hospital district believes that the current
law detracts from their primary focus of providing health care to the
county's indigent population and overseeing the operations of its health
care facilities.  As proposed, S.B. 294 transfers the authority to grant
an exemption or abatement from ad valorem taxation from the Harris County
Hospital District to the Harris County Commissioners Court.  This
legislation gives the Harris County Commissioners Court the ability to
adopt or to remove an exemption or abatement from ad valorem taxation for
the benefit of the Harris County Hospital District. 

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 Chapter 281E, Health and Safety Code, by adding Section
281.096, as follows: 

Sec.  281.096.  AUTHORITY TO TAKE ACTIONS RELATING TO AD VALOREM TAXES.
(a)  Provides that the Harris County Commissioners Court has the authority
assigned by law to the governing body of a hospital district, with respect
to the imposition or collection of an ad valorem tax imposed for the
benefit of the Harris County Hospital District, including the authority to
adopt an exemption or partial exemption or grant an abatement or other
form of relief from an ad valorem tax, and the authority to elect to tax
property that would otherwise be exempt from an ad valorem tax. 

(b) Prohibits the board of the Harris County Hospital District from
exercising a power granted by Subsection (a) to the Harris County
Commissioners Court with respect to the imposition or collection of an ad
valorem tax imposed for the benefit of the Harris County Hospital
District.   

SECTION 2.  Effective date:  September 1, 2003.
            Makes application of this Act prospective.