BILL ANALYSIS

S.B. 422

By: Duncan

Ways & Means

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Recently, central appraisal districts in Texas have contracted with their local municipalities to collect the taxes for tax increment finance reinvestment zones and assessments for public improvement districts. A recent attorney general opinion has been interpreted by some to indicate that the term "taxes" with regard to contracts for tax assessment and collection does not include special assessments, meaning contracts between a municipality's governing body and the board of directors of an appraisal district to collect special assessments under the Public Improvement District Assessment Act may not be explicitly authorized under existing law. According to interested parties, this opinion caused problems for certain municipalities that lack the mechanism or staff to collect public improvement district special assessments. S.B. 422 seeks to remedy this problem as it relates to the authority of a municipality or county to contract with another entity to collect certain assessments levied by the municipality or county.

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

S.B. 422 amends the Local Government Code to authorize the governing body of a municipality or county to contract with the governing body of another taxing unit, as defined in the Tax Code, or the board of directors of an appraisal district to perform the duties of the municipality or county relating to collection of special assessments levied under the Public Improvement District Assessment Act.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2011.