HBA-CBW H.B. 2821 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2821
By: Swinford
Ways & Means
3/30/2001
Introduced



BACKGROUND AND PURPOSE 

Current  law provides for certain franchise tax credits for businesses that
operate in counties deemed strategic investment areas.  The goal of this
law is to stimulate economic development in counties that are above the
state average for unemployment and below the state average for per capita
income, and in areas federally designated as urban enterprise communities
or as  urban enhanced enterprise communities. However, there are instances
when sparsely populated counties may be suffering from an outflow of people
and are in desperate need of incentives to foster economic development.
House Bill 2821 expands the definition of "strategic investment area" to
include a county that meets certain requirements within this state and that
has a population of less than 50,000. 

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 2821 amends the Tax Code to include in the definition of
"strategic investment area"  a county within this state that has a
population of less than 50,000 and that is not included wholly or partly in
a federal metropolitan statistical area, primary metropolitan statistical
area, or consolidated metropolitan statistical area.  

EFFECTIVE DATE

January 1, 2001.