HBA-LJP, JLV H.B. 1194 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1194
By: Brimer
Ways & Means
3/16/2001
Introduced



BACKGROUND AND PURPOSE 

Under current law, property in a reinvestment zone that is owned by a
member of a zoning planning board, or commission of the municipality or a
member of the governing body is excluded from property tax abatement or tax
increment financing.  In the past, there has been some confusion about  how
to apply this law to a person who owns the property and then is elected to
serve on the governing body of the municipality.  House Bill 1194 allows
property that was subject to a property tax abatement or tax increment
financing to remain eligible even if the owner of the property  becomes an
elected official of a municipality. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1194 amends the Tax Code to provide that a property that is
subject to a tax abatement agreement or tax increment financing when the
person becomes a member of the municipality's governing body or the zoning
or planning board, or the commission does not cease to be eligible for
property tax abatement or does not become ineligible for tax increment
financing because of the person's membership on the governing body, board,
commission, or commissioners court. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.