HBA-MSH H.B. 2868 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2868
By: Ramsay
County Affairs
3/25/2001
Introduced



BACKGROUND AND PURPOSE 

The Texas Constitution prohibits a county, city or town from levying a tax
rate in excess of $.80 for every $100.  The tax rates of different taxing
authorities are added to reach the total tax rate for a county. Therefore,
county governments must compete for tax revenue with other groups, and some
counties may be unable to meet obligations to provide essential government
services.  House Bill 2868 authorizes a county that has reached the maximum
tax rate to be reimbursed by the state for expenses incurred in providing
essential government services. 

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 2868 amends the Local Government Code to provide that the grants
for essential government services apply only to country that has levied the
maximum state tax allowed for the two-year period preceding any
distribution of funds under these provisions.  The bill authorizes the
Texas Department of Housing and Community Affairs (TDHCA) to distribute
funds appropriated by the legislature and designated for distribution to
reimburse a county that has levied the maximum state tax allowed for
expenses incurred in the provision of an essential government service
during the preceding fiscal year  of the county. The bill requires TDHCA to
adopt regulations for the equitable distribution of the funds and for
ensuring that the funds are used for approved purposes.  The bill provides
that all of the funds distributed are subject to audit by the state
auditor. 

EFFECTIVE DATE

September 1, 2001.