HBA-TBM S.B. 274 77(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 274
By: Van de Putte
County Affairs
4/20/2001
Committee Report (Amended)



BACKGROUND AND PURPOSE 

Currently, the Tax Increment Financing Act identifies a hospital district
as a participating taxing unit.  This permits the ad valorem taxes assessed
by a hospital district to be considered potential revenue for the
development of a reinvestment zone.  While such zones may be beneficial,
redirecting health care money away from medical or hospital uses is not.
Senate Bill 274 prohibits both the Bexar and Harris County Hospital
Districts from using tax revenues to finance the development of a
reinvestment zone.   

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

Senate Bill 274 amends the Health and Safety Code to prohibit the Bexar
County Hospital District and the Harris County Hospital District (district)
from entering into a contract or agreement to pay into a tax increment fund
any of a district's tax increment produced from property located in a
reinvestment zone. The bill prohibits the proceeds of a tax imposed to pay
bonds from being used to make a payment into a tax increment fund if that
payment is prohibited by the previous provision.  A project plan or
reinvestment zone financing plan approved on or after September 1, 2001 is
prohibited from including any of a district's tax increment or any other
funds derived from the district as a source of revenue to finance or pay
project costs.  A project plan, reinvestment zone financing plan, or an
agreement creating or expanding a reinvestment zone approved or entered
into by a district before September 1, 2001 is prohibited from being
modified to increase the amount of money or time a district contributes to
a tax increment fund or allow the district to pay into a tax increment fund
any of the district's tax increment derived from property added to the
reinvestment zone on or after September 1, 2001.     

EFFECTIVE DATE

September 1, 2001.  

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 adds the Nueces County Hospital District and the
El Paso County Hospital District to the definition of district for the
purposes of the bill.