SRC-JLB S.B. 419 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 419
78R647 ATP-DBy: Nelson
Intergovernmental Relations
3/17/2003
As Filed


DIGEST AND PURPOSE 

Currently, questions exist as to whether a county development district is
authorized to levy ad valorem taxes and construct infrastructure for a
residential subdivision as an element of its statutory purpose of
providing incentives for the location and development of projects in
certain counties to attract visitors and tourists.  As proposed, S.B. 419
prohibits a county development district from levying ad valorem taxes,
constructing, financing, or providing infrastructure for a residential
subdivision, unless the infrastructure serves the purpose of attracting
visitors and tourists to the county. 

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 383.061, Local Government Code, by adding
Subsections (d) and (e), as follows: 

 (d) Prohibits a county development district (district) from imposing an
ad valorem tax. 

(e) Authorizes a district to construct, finance, or otherwise provide
infrastructure for a residential subdivision only if the infrastructure
serves the purpose of attracting visitors and tourists to the county. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.