HBA-JLV H.B. 820 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 820
By: Giddings
Economic Development
2/23/2001
Introduced



BACKGROUND AND PURPOSE 

Current 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 current state limits on the number of enterprise zones, particularly in
larger cities, could impair the intent of the program to help create job
opportunities.   House Bill 820 allows an increase in the number of Texas
enterprise zone designations in cities 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 provide that a municipality
with a population of 250,000 or more is not subject to the provision which
prohibits the Texas Department of Economic Development from designating an
area as an enterprise zone if three enterprise zones are located in the
jurisdiction of and were nominated as enterprise zones by the governing
body of the municipality  nominating the area as an enterprise zone. 

EFFECTIVE DATE

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