BILL ANALYSIS

H.B. 1134

By: England

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The Dallas County Flood Control District No. 1 is a conservation and reclamation district with tax abatement authority, similar to that possessed by cities, granted by H.B. 2049, 72nd Legislature, Regular Session, 1991.  Because H.B. 2049 only permitted tax abatement agreements for a period of 10 years, development was still not possible because the district's bonds had a 30 year period.  Consequently, the district requested legislation in 1997 to permit tax abatement agreements to extend to a 30 year period. S.B. 1450, 75th Legislature, Regular Session, 1997 made that change.

Both H.B. 2049 and S.B. 1450 granted tax abatement authority for commercial-industrial projects, but residential projects were not anticipated.  There are now at least two proposed projects which would have residential uses, one being for townhomes and the other for a senior retirement community. 

H.B. 1134 permits the Dallas County Flood Control District No. 1 to enter into tax abatement agreements for residential projects to facilitate the construction of those types of projects.

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

H.B. 1134 amends the enabling statute of the Dallas County Flood Control District No. 1 to authorize the district to enter into a tax abatement agreement and designate an area as a reinvestment zone, on a finding by the district's board of directors that a proposed residential project or projects meet the criteria for designation as a reinvestment zone as set forth in the enabling statute.  The bill makes conforming changes, including a conforming amendment specifying that the designation expires after five years and may be renewed for a period not to exceed five years.

EFFECTIVE DATE

September 1, 2009.