BILL ANALYSIS Senate Research Center S.B. 244 By: Bettencourt Natural Resources & Economic Development 5/25/2021 Enrolled AUTHOR'S / SPONSOR'S STATEMENT OF INTENT Tax increment reinvestment zones (TIRZs) are special zones created to attract new investment in a designated area. These zones help finance costs of redevelopment and promote growth in areas that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increments) are set aside in a fund to finance public improvements within the boundaries of the zone. However, there have been issues with proper accountability of TIRZs in the past, and a lack of transparency. S.B. 244 would specifically place a meeting of the board of directors of a TIRZ under the authority of the Texas Open Meetings Act. This will improve the public's ability to be notified and attend meetings of a TIRZ, should they choose. S.B. 244 amends current law relating to the application of the open meetings law to the board of directors of certain tax reinvestment zones. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 551.001(3), Government Code, to redefine "governmental body," for the purposes of Chapter 551 (Open Meetings), to include a board of directors of a reinvestment zone created under Chapter 311 (Tax Increment Financing Act), Tax Code. Makes nonsubstantive changes. SECTION 2. Effective date: September 1, 2021.
BILL ANALYSIS
Senate Research Center S.B. 244
By: Bettencourt
Natural Resources & Economic Development
5/25/2021
Enrolled
Senate Research Center
S.B. 244
By: Bettencourt
Natural Resources & Economic Development
5/25/2021
Enrolled
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Tax increment reinvestment zones (TIRZs) are special zones created to attract new investment in a designated area. These zones help finance costs of redevelopment and promote growth in areas that would otherwise not attract sufficient market development in a timely manner. Taxes attributable to new improvements (tax increments) are set aside in a fund to finance public improvements within the boundaries of the zone.
However, there have been issues with proper accountability of TIRZs in the past, and a lack of transparency. S.B. 244 would specifically place a meeting of the board of directors of a TIRZ under the authority of the Texas Open Meetings Act. This will improve the public's ability to be notified and attend meetings of a TIRZ, should they choose.
S.B. 244 amends current law relating to the application of the open meetings law to the board of directors of certain tax reinvestment zones.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 551.001(3), Government Code, to redefine "governmental body," for the purposes of Chapter 551 (Open Meetings), to include a board of directors of a reinvestment zone created under Chapter 311 (Tax Increment Financing Act), Tax Code. Makes nonsubstantive changes.
SECTION 2. Effective date: September 1, 2021.