HBA-LJP H.B. 2682 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2682 By: Allen Ways & Means 3/30/2001 Introduced 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. If a school district is unable to locate services or resources contracted under an existing agreement within the reinvestment zone of the municipality, then the school district may be 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 On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.