HBA-JRA H.B. 1642 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1642 By: Hochberg Public Education 4/13/1999 Introduced BACKGROUND AND PURPOSE The 75th Texas Legislature passed S.B. 1873, which sunset a provision of the Tax Code that allowed the valuation of property that generates taxes which are transferred to tax increment financing districts to be deducted from school district property values for school finance purposes. The bill contained drafting errors that left the status of property in existing tax increment financing districts unclear. H.B. 1642 restores the original intent of S.B. 1873, by sunsetting the special school finance treatment for tax increment financing districts created on or after September 1, 1999, while leaving those created before that date unaffected. 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. SECTION BY SECTION ANALYSIS SECTION 1. Reenacts and amends Section 403.302(d), Government Code, as amended by Chapters 1039, 1040, and 1071, Acts of the 75th Legislature, Regular Session, 1997, to delete the reference to the date a property is located in a reinvestment zone from the definition of "taxable value" and provides that this subsection is subject to Subsection (e). SECTION 2. Amends Sections 403.302(e)-(g), Government Code, to provide that Subsection (d)(3), relating to the dollar amount of captured appraised value of property located in a reinvestment zone, applies only to the captured appraised value of real property that is located in the reinvestment zone before September 1, 1999, or an improvement to such real property, regardless of the date the improvement is made. Redesignates existing Subsections (e)-(g) to Subsections (f)-(h). SECTION 3. Amends Section 403.303(a), Government Code, to make conforming changes. SECTION 4. Effective date: September 1, 1999. SECTION 5. Emergency clause.