1-1  By:  Stiles, Earley, et al.                           H.B. No. 1920
    1-2       (Senate Sponsor - Armbrister)
    1-3        (In the Senate - Received from the House April 22, 1993;
    1-4  April 26, 1993, read first time and referred to Committee on
    1-5  Intergovernmental Relations; April 29, 1993, reported favorably, as
    1-6  amended, by the following vote:  Yeas 8, Nays 0; April 29, 1993,
    1-7  sent to printer.)
    1-8                            COMMITTEE VOTE
    1-9                          Yea     Nay      PNV      Absent 
   1-10        Armbrister         x                               
   1-11        Leedom             x                               
   1-12        Carriker                                       x   
   1-13        Henderson                                      x   
   1-14        Madla              x                               
   1-15        Moncrief           x                               
   1-16        Patterson          x                               
   1-17        Rosson             x                               
   1-18        Shapiro            x                               
   1-19        Wentworth                                      x   
   1-20        Whitmire           x                               
   1-21  COMMITTEE AMENDMENT NO. 1                           By:  Armbrister
   1-22  Amend H.B. 1920 as follows:
   1-23        (1)  In SECTION 1, on page 1, lines 11-13, delete the
   1-24  sentence "The exemption shall be proportionate to the percentage of
   1-25  property determined to be pollution control property under
   1-26  Subsections (c) and (d)."
   1-27        (2)  In SECTION 1, on page 2, line 19, insert after the
   1-28  period an additional sentence to read:  "If the installation
   1-29  includes property that is not used wholly for the control of air,
   1-30  water, or land pollution, the person seeking the exemption shall
   1-31  also present such financial or other data as the executive director
   1-32  requires by rule for the determination of the proportion of the
   1-33  installation that is pollution control property."
   1-34                         A BILL TO BE ENTITLED
   1-35                                AN ACT
   1-36  relating to an exemption of certain pollution control property from
   1-37  property taxation and adjustment of the property tax rollback rate.
   1-38        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-39        SECTION 1.  Chapter 11, Tax Code, is amended by adding
   1-40  Section 11.31 to read as follows:
   1-41        Sec. 11.31.  POLLUTION CONTROL PROPERTY.  (a)  A person is
   1-42  entitled to an exemption from taxation of all or part of real and
   1-43  personal property that the person owns and that is used wholly or
   1-44  partly as a facility, device, or method for the control of air,
   1-45  water, or land pollution.  The exemption shall be proportionate to
   1-46  the percentage of property determined to be pollution control
   1-47  property under Subsections (c) and (d).  A person is not entitled
   1-48  to an exemption from taxation under this section solely on the
   1-49  basis that the person manufactures or produces a product that
   1-50  prevents, monitors, controls, or reduces air, water, or land
   1-51  pollution.  Property used for residential purposes, or for
   1-52  recreational, park, or scenic uses as defined by Section 23.81, is
   1-53  ineligible for an exemption under this section.
   1-54        (b)  In this section, "facility, device, or method for the
   1-55  control of air, water, or land pollution" means land that is
   1-56  acquired after January 1, 1994, or any structure, building,
   1-57  installation, excavation, machinery, equipment, or device, and any
   1-58  attachment or addition to or reconstruction, replacement, or
   1-59  improvement of that property, that is used, constructed, acquired,
   1-60  or installed wholly or partly to meet or exceed rules or
   1-61  regulations adopted by any environmental protection agency of the
   1-62  United States, this state, or a political subdivision of this state
   1-63  for the prevention, monitoring, control, or reduction of air,
   1-64  water, or land pollution.  This section does not apply to a motor
   1-65  vehicle.
   1-66        (c)  In applying for an exemption under this section, a
   1-67  person seeking the exemption shall present in a permit application
   1-68  or permit exemption request to the executive director of the Texas
    2-1  Natural Resource Conservation Commission information detailing:
    2-2              (1)  the anticipated environmental benefits from the
    2-3  installation of the facility, device, or method for the control of
    2-4  air, water, or land pollution;
    2-5              (2)  the estimated cost of the pollution control
    2-6  facility, device, or method; and
    2-7              (3)  the purpose of the installation of such facility,
    2-8  device, or method, and the proportion of the installation that is
    2-9  pollution control property.
   2-10        (d)  Following submission of the information required by
   2-11  Subsection (c), the executive director of the Texas Natural
   2-12  Resource Conservation Commission shall determine if the facility,
   2-13  device, or method is used wholly or partly as a facility, device,
   2-14  or method for the control of air, water, or land pollution.  As
   2-15  soon as practicable, the executive director shall send notice by
   2-16  regular mail to the chief appraiser of the appraisal district for
   2-17  the county in which the property is located that the person has
   2-18  applied for a determination under this subsection.  If the
   2-19  executive director determines that the facility, device, or method
   2-20  is used wholly or partly to control pollution, the director shall
   2-21  issue a letter to the person stating that determination and the
   2-22  proportion of the installation that is pollution control property.
   2-23        (e)  The Texas Natural Resource Conservation Commission may
   2-24  charge a person seeking a determination that property is pollution
   2-25  control property an additional fee not to exceed its administrative
   2-26  costs for processing the information, making the determination, and
   2-27  issuing the letter required by this section.  The commission may
   2-28  adopt rules to implement this section.
   2-29        (f)  A person seeking an exemption under this section shall
   2-30  provide to the chief appraiser a copy of the letter issued by the
   2-31  executive director of the Texas Natural Resource Conservation
   2-32  Commission under Subsection (d).  The chief appraiser shall accept
   2-33  the copy of the letter from the executive director as conclusive
   2-34  evidence that the facility, device, or method is used wholly or
   2-35  partly as pollution control property.
   2-36        (g)  This section does not apply to a facility, device, or
   2-37  method for the control of air, water, or land pollution that was
   2-38  subject to a tax abatement agreement executed before January 1,
   2-39  1994.
   2-40        SECTION 2.  Section 11.43(c), Tax Code, is amended to read as
   2-41  follows:
   2-42        (c)  An exemption provided by Section 11.13, 11.17, 11.18,
   2-43  11.19, 11.20, 11.21, 11.22, 11.29, <or> 11.30, or 11.31 of this
   2-44  code, once allowed, need not be claimed in subsequent years, and
   2-45  except as otherwise provided by Subsection (e) of this section, the
   2-46  exemption applies to the property until it changes ownership or the
   2-47  person's qualification for the exemption changes.  However, the
   2-48  chief appraiser may require a person allowed one of the exemptions
   2-49  in a prior year to file a new application to confirm his current
   2-50  qualification for the exemption by delivering a written notice that
   2-51  a new application is required, accompanied by an appropriate
   2-52  application form, to the person previously allowed the exemption.
   2-53          SECTION 3.  Section 26.012(6), Tax Code, is amended to read
   2-54  as follows:
   2-55              (6)  "Current total value" means the total taxable
   2-56  value of property listed on the appraisal roll for the current
   2-57  year, including all appraisal roll supplements and corrections as
   2-58  of the date of the calculation, less the taxable value of property
   2-59  exempted for the current tax year for the first time under Section
   2-60  11.31, except that the current total value for a school district
   2-61  excludes the total value of homesteads that qualify for a tax
   2-62  limitation as provided by Section 11.26 <of this code>.
   2-63        SECTION 4.  Chapter 26, Tax Code, is amended by adding
   2-64  Section 26.045 to read as follows:
   2-65        Sec. 26.045.  ROLLBACK RELIEF FOR POLLUTION CONTROL
   2-66  REQUIREMENTS.  (a)  The rollback tax rate for a political
   2-67  subdivision of this state is increased by the rate that, if applied
   2-68  to the total current value, would impose an amount of taxes equal
   2-69  to the amount the political subdivision will spend out of its
   2-70  maintenance and operation funds under Section 26.012(16), Tax Code,
    3-1  to pay for a facility, device, or method for the control of air,
    3-2  water, or land pollution that is necessary to meet the requirements
    3-3  of a permit issued by the Texas Natural Resource Conservation
    3-4  Commission.
    3-5        (b)  In this section, "facility, device, or method for
    3-6  control of air, water, or land pollution" means any land,
    3-7  structure, building, installation, excavation, machinery,
    3-8  equipment, or device, and any attachment or addition to or
    3-9  reconstruction, replacement, or improvement of that property, that
   3-10  is used, constructed, acquired, or installed wholly or partly to
   3-11  meet or exceed rules or regulations adopted by any environmental
   3-12  protection agency of the United States or this state for the
   3-13  prevention, monitoring, control, or reduction of air, water, or
   3-14  land pollution.
   3-15        (c)  To receive an adjustment to the rollback tax rate under
   3-16  this section, a political subdivision shall present information to
   3-17  the executive director of the Texas Natural Resource Conservation
   3-18  Commission in a permit application or in a request for any
   3-19  exemption from a permit that would otherwise be required detailing:
   3-20              (1)  the anticipated environmental benefits from the
   3-21  installation of the facility, device, or method for the control of
   3-22  air, water, or land pollution;
   3-23              (2)  the estimated cost of the pollution control
   3-24  facility, device, or method; and
   3-25              (3)  the purpose of the installation of the facility,
   3-26  device, or method, and the proportion of the installation that is
   3-27  pollution control property.
   3-28        (d)  Following submission of the information required by
   3-29  Subsection (c), the executive director of the Texas Natural
   3-30  Resource Conservation Commission shall determine if the facility,
   3-31  device, or method is used wholly or partly as a facility, device,
   3-32  or method for the control of air, water, or land pollution.  If the
   3-33  executive director determines that the facility, device, or method
   3-34  is used wholly or partly to control pollution, the director shall
   3-35  issue a letter to the political subdivision stating that
   3-36  determination and the portion of the cost of the installation that
   3-37  is pollution control property.
   3-38        (e)  The Texas Natural Resource Conservation Commission may
   3-39  charge a political subdivision seeking a determination that
   3-40  property is pollution control property an additional fee not to
   3-41  exceed its administrative costs for processing the information,
   3-42  making the determination, and issuing the letter required by this
   3-43  section.  The commission may adopt rules to implement this section.
   3-44        (f)  A political subdivision of the state seeking an
   3-45  adjustment in its rollback tax rate under this section shall
   3-46  provide to its tax assessor a copy of the letter issued by the
   3-47  executive director of the Texas Natural Resource Conservation
   3-48  Commission under Subsection (d).  The tax assessor shall accept the
   3-49  copy of the letter from the executive director as conclusive
   3-50  evidence that the facility, device, or method is used wholly or
   3-51  partly as pollution control property and shall adjust the rollback
   3-52  tax rate for the political subdivision as provided for by
   3-53  Subsection (a).
   3-54        SECTION 5.  (a)  Sections 1 and 2 of this Act take effect
   3-55  January 1, 1994, but only if the constitutional amendment proposed
   3-56  by the 73rd Legislature, Regular Session, 1993, authorizing the
   3-57  exemption from ad valorem taxation of real and personal property
   3-58  used for the control of air, water, or land pollution is approved
   3-59  by the voters.  If that amendment is not approved by the voters,
   3-60  Sections 1 and 2 of this Act have no effect.
   3-61        (b)  Sections 1 and 2 of this Act apply only to pollution
   3-62  control property that is constructed, acquired, or installed after
   3-63  January 1, 1994.
   3-64        (c)  The change in law made by this Act does not affect a
   3-65  contract executed prior to January 1, 1994, pursuant to Section
   3-66  42.044 or Section 43.136, Local Government Code.
   3-67        SECTION 6.  The importance of this legislation and the
   3-68  crowded condition of the calendars in both houses create an
   3-69  emergency and an imperative public necessity that the
   3-70  constitutional rule requiring bills to be read on three several
    4-1  days in each house be suspended, and this rule is hereby suspended.
    4-2                               * * * * *
    4-3                                                         Austin,
    4-4  Texas
    4-5                                                         April 29, 1993
    4-6  Hon. Bob Bullock
    4-7  President of the Senate
    4-8  Sir:
    4-9  We, your Committee on Intergovernmental Relations to which was
   4-10  referred H.B. No. 1920, have had the same under consideration, and
   4-11  I am instructed to report it back to the Senate with the
   4-12  recommendation that it do pass, as amended, and be printed.
   4-13                                                         Armbrister,
   4-14  Chairman
   4-15                               * * * * *
   4-16                               WITNESSES
   4-17                                                  FOR   AGAINST  ON
   4-18  ___________________________________________________________________
   4-19  Name:  Russell B. Bridges                        x
   4-20  Representing:  3 M Company
   4-21  City:  Austin
   4-22  -------------------------------------------------------------------
   4-23  Name:  H. P. Whitworth                           x
   4-24  Representing:  Texas Chemical Council
   4-25  City:  Austin
   4-26  -------------------------------------------------------------------
   4-27  Name:  Robert Howden                             x
   4-28  Representing:  National Fed. of Indep. Busin
   4-29  City:  Austin
   4-30  -------------------------------------------------------------------
   4-31  Name:  Frank Sturzl                              x
   4-32  Representing:  TML
   4-33  City:  Austin
   4-34  -------------------------------------------------------------------
   4-35  Name:  Randy Eminger                             x
   4-36  Representing:  AECT
   4-37  City:  Amarillo
   4-38  -------------------------------------------------------------------
   4-39  Name:  Emmitt Shepard                            x
   4-40  Representing:  United Labor Leg. League
   4-41  City:  Austin
   4-42  -------------------------------------------------------------------
   4-43  Name:  Paula Littles                             x
   4-44  Representing:  Oil Chemical
   4-45  City:  Austin
   4-46  -------------------------------------------------------------------
   4-47  Name:  Chris Shields                             x
   4-48  Representing:  Texas Chamber of Commerce
   4-49  City:  Austin
   4-50  -------------------------------------------------------------------
   4-51  Name:  Michael White                             x
   4-52  Representing:  Greater Houston Partnership
   4-53  City:  Houston
   4-54  -------------------------------------------------------------------
   4-55  Name:  Billie Gonzales Mador                     x
   4-56  Representing:  Panhandle Eastern
   4-57  City:  Houston
   4-58  -------------------------------------------------------------------
   4-59  Name:  Mary Miska                                x
   4-60  Representing:  TAB
   4-61  City:  Austin
   4-62  -------------------------------------------------------------------
   4-63  Name:  Harold Reagan                             x
   4-64  Representing:  ALCOA
   4-65  City:  Rockdale
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   4-67                                                  FOR   AGAINST  ON
   4-68  ___________________________________________________________________
   4-69  Name:  Bill Allaway                              x
   4-70  Representing:  Texas Assoc. Taxpayers
    5-1  City:  Austin
    5-2  -------------------------------------------------------------------
    5-3  Name:  Richard A. Bennett                        x
    5-4  Representing:  Temple - Inland Forest
    5-5  City:  Dibol
    5-6  -------------------------------------------------------------------
    5-7  Name:  Clinton P. White                          x
    5-8  Representing:  Txgulf Inc. & Koch Materials
    5-9  City:  Wharton
   5-10  -------------------------------------------------------------------
   5-11  Name:  Benjamin Sebree                           x
   5-12  Representing:  Texas Mid-Contintent Oil & Gas
   5-13  City:  Austin
   5-14  -------------------------------------------------------------------
   5-15  Name:  Jack Erskine                              x
   5-16  Representing:  AMOCO
   5-17  City:  Austin
   5-18  -------------------------------------------------------------------
   5-19  Name:  Steve Perry                               x
   5-20  Representing:  Texaco, Inc
   5-21  City:  Austin
   5-22  -------------------------------------------------------------------
   5-23  Name:  Floyd Bowen                               x
   5-24  Representing:  Exxon Corp.
   5-25  City:  Austin
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   5-27  Name:  P. Kinnan Grolemon                        x
   5-28  Representing:  Brown McCarrol
   5-29  City:  Austin
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   5-31  Name:  George H. Moff                                    x
   5-32  Representing:  Nueces County Appraisal Dist.
   5-33  City:  Corpus Christi
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