Office of House Bill AnalysisH.B. 1053
By: Coleman
Ways & Means


There are several transportation nodes in Texas that are areas of poverty
and economic distress, yet may have economic potential.  Incentives that
address economic development, education, and quality of life may entice
people to take advantage of proximity to major transportation nodes.  These
incentives may lead to a greater reinvestment in these areas of the
community while at the same time potentially produce a stronger, more
diversified market for international, commercial, and industrial trade.
To achieve these goals,  House Bill 1053 authorizes a municipality or
county to create a commercial and industrial redevelopment zone (zone) with
its own nongovernmental board to administer its activities, which include
recruiting businesses to the zone, infrastructure improvements, and seeking
funds to fulfill economic development, workforce, and quality of life


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. 


House Bill 1053 amends the Local Government Code relating to creating,
amending, and dissolving  a commercial and industrial development zone.
H.B. 1053 provides the purpose of and criteria for a development zone, and
authorizes a municipality or county to create a development zone within its
jurisdiction provided that a public hearing is held before adopting an
ordinance or order. The bill sets forth provisions for designating an area
in the jurisdiction of a municipality as a development zone, for amending
the boundaries of a zone, and for designating an area as a neighborhood
redevelopment zone (Secs. 386.031--386.033, 386.036, and 386.105).  An
ordinance or order designating an area as a development zone must provide a
precise description of the area and establish that the area meets the
criteria for establishing a development zone, provide a summary of
incentives and programs to improve the area businesses,  labor skills, and
essential elements for the area's quality of life (Sec. 386.034).  The bill
authorizes a development zone to acquire and dispose of projects  to carry
out the purposes for which the zone was created (Sec. 386.101).  The bill
provides that law pertaining to competitive bidding and the stimulation of
the growth of disadvantaged businesses applies to development zone projects
(Sec. 386.202). The bill also provides that the laws of any other district
or zone are controlling in the event of any conflict with the laws
governing development zones (Sec. 386.103). 

H.B. 1053 requires a municipal governing board (board) to evaluate
available financial options before imposing a local property tax, but
authorizes a creating body of a development zone to impose a property tax
increment of one quarter of one percent, and authorizes the revenue  to be
used to pay for the salaries of employees of the board and for
administrative expenses (Secs. 386.102 and 386.035).  

H.B. 1053 provides for the organization, administration, and duties of a
development zone board of directors and for the qualifications,
appointment, disqualification, and removal of directors (Secs.
386.061-386.068).  The bill requires directors to take an oath of office
and execute a $10,000 bond payable to the district.  A director is not
entitled to compensation, but is entitled to reimbursement for expenses
incurred  in carrying out the duties of a director (Sec. 386.069).  The
bill also requires the board to monitor each person in a development zone
that receives benefits (Sec. 386.104).  

 The bill authorizes a board to petition a creating body to dissolve the
development zone if a majority of the board finds that the zone is
impracticable or cannot be successfully accomplished or that all bonds of
the zone or other debts have been paid and the purposes of the zone have
been accomplished. The bill authorizes a creating body, after a hearing, to
dissolve a development zone if the area no longer meets the established
criteria, the best interests of the creating body and owners of property
and interests in the zone will be served, each creating body agrees by
ordinance or order that the zone should be dissolved, and the bodies agree
to the disposition of zone assets and for the  assumption of any
liabilities. (Secs. 386.301 and 386.302). Any taxes levied on behalf of the
zone are abolished if the zone is dissolved (Sec. 386.303). 


On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.