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


Office of House Bill AnalysisC.S.H.B. 820
By: Giddings
Economic Development
3/29/2001
Committee Report (Substituted)


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.  C.S.H.B. 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 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

C.S.H.B. 820 amends the Government Code to increase, from 65 to 85, the
maximum number of businesses the Texas Department of Economic Development
(department) is authorized to designate as enterprise projects during any
biennium.  The bill provides that the maximum number of qualified
businesses that the department is authorized to designate as enterprise
projects in each enterprise zone during any biennium is four or six, if the
governing body of the enterprise zone is the governing body of a
municipality with a population of 250,000 or more. 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 820 modifies the original to remove provisions which set forth
that a municipality with a population of 250,000 or more is not subject to
the prohibition against the Texas Department of Economic Development
(department) 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. 

The substitute increases to 85 the maximum number of businesses the
department is authorized to designate as enterprise projects and increases
the number of qualified businesses the department is authorized to
designate as enterprise projects in each enterprise zone located in a
municipality during any biennium if the governing body of the municipality
has a population of 250,000 or more. 

The original bill contained an effective date of  "On passage, or if the
Act does not receive the necessary vote, the Act takes effect September 1,
2001".