HBA-LJP H.B. 3019 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3019 By: Chisum Ways & Means 4/5/2001 Introduced BACKGROUND AND PURPOSE Under current law, owners of certain real property in a reinvestment zone are eligible to enter into a tax abatement agreement with a municipality relating to a voluntary cleanup if the value of the property is adversely affected by the release of a hazardous substance or contaminant according to the two preceding appraisals by the appraisal office. In practice, many appraisals are based on market factors and do not involve the testing of environmental data to determine the presence of contamination. Properties with a hazardous substance or contaminant may not be devalued because of the practiced appraisal method and owners of the real property in a reinvestment zone will not be eligible to enter into tax abatement agreements relating to voluntary cleanup of the property. House Bill 3019 removes the stipulation that the property in a reinvestment zone be devalued by the release of a hazardous substance or contaminant for the owner of the property to be eligible to enter into tax abatement agreements relating to voluntary cleanups of the property. 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 3019 amends the Tax Code to remove provisions stipulating that an owner of real property in a reinvestment zone is eligible to enter into a tax abatement agreement with a municipality relating to a voluntary cleanup only if the value of the property is adversely affected by the release of a hazardous substance or contaminant according to the two preceding appraisals by the appraisal office. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.