HBA-SEP H.B. 3389 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3389
By: Oliveira
Ways & Means
4/12/2001
Introduced



BACKGROUND AND PURPOSE 

In 1999, the legislature created certain franchise tax credits for
businesses located in counties with above average unemployment and below
average per capita income.  The credits for these "strategic investment
areas" (SIA) are limited to certain industries such as data processing and
manufacturing but currently exclude telecommunications.  However,
telecommunications upgrades are needed in rural SIA counties to expand
high-speed Internet capabilities.  House Bill 3389 provides that an
establishment primarily engaged in telecommunications is a qualified
business in relation to provisions regarding franchise tax credits for
certain job creation activities and capital investments.   

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 3389 amends the Tax Code to provide that an establishment
primarily engaged in telecommunications is a qualified business in relation
to provisions regarding franchise tax credits for certain job creation
activities and capital investments.   

EFFECTIVE DATE

January 1, 2002.