HBA-JLV H.B. 820 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 820 By: Giddings Economic Development 7/17/2001 Enrolled BACKGROUND AND PURPOSE State law limits the number of total businesses eligible to be designated as enterprise zone projects in the state and prohibits an area within a municipality from being designated as an enterprise zone if three enterprise zones are already located in the jurisdiction of the municipality. The Texas Enterprise Zone Program was created to stimulate job creation and capital investment in economically-distressed communities, but prior to the 77th Legislature state limits on the number of enterprise zones, particularly in larger cities, impaired the intent of the program to help create job opportunities. House Bill 820 increases the maximum number of businesses the Texas Department of Economic Development is authorized to designate as enterprise projects during any biennium and allows an increase in the number of Texas enterprise project designations in each enterprise zone in cities and counties with a population of 250,000 or more. 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 820 amends the Government Code to increase, from 65 to 85, the maximum number of businesses the Texas Department of Economic Development (TDED) is authorized to designate as enterprise projects during any biennium. The bill provides that the maximum number of qualified businesses that TDED is authorized to designate as enterprise projects for each nominating body during any biennium is four, plus two additional bonus projects TDED may award in a municipality or county with a population of less than 250,000, or six, if the governing body of the enterprise zone is the governing body of a municipality or county with a population of 250,000 or more. EFFECTIVE DATE September 1, 2001.