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.