HBA-LJP H.B. 2682 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2682
By: Allen
Ways & Means
67/2/2001
Enrolled



BACKGROUND AND PURPOSE 

A tax increment reinvestment zone is a special district created by a local
governmental entity to revitalize an area by using the tax increment
generated by economic development within the zone to finance debt service
on bonds used to revitalize the zone.  In 1999, school districts were
prohibited from entering new agreements to participate in these tax
increment financing districts, but they retained the authorization to
fulfill existing agreements.  Prior to the 77th Legislature, if a school
district was unable to locate services or resources contracted under an
existing agreement within the reinvestment zone of the municipality, then
the school district may have been unable to complete needed projects.
House Bill 2682 authorizes certain school districts to enter into an
agreement for a municipality with a reinvestment zone to dedicate revenue
from the tax increment fund to the school district for certain projects. 

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 2682 amends the Tax Code to authorize a municipality with a
territory in three counties and a population of less than 120,000 to enter
into a new or amend an existing agreement with a school district that is
located in whole or in part in a reinvestment zone created by the
municipality to dedicate revenue from the tax increment fund to the school
district for acquiring, constructing, or reconstructing an education
facility located in or outside of the zone. 

EFFECTIVE DATE

September 1, 2001.