BILL ANALYSIS C.S.H.B. 1236 By: Hartnett\Marchant\Wolens\Allen 02-27-95 Committee Report (Substituted) BACKGROUND The Dallas County Utility and Reclamation District ("DCURD") is a conservation and reclamation district that encompasses the Las Colinas Urban Center in the city of Irving. DCURD is a special law district which provides flood control, drainage, roads, lakes, transportation, and other public improvements and services to Las Colinas. The District encompasses approximately 3,500 acres, of which 2,000 acres are undeveloped. PURPOSE This bill amends Chapter 628, Acts of the 68th Legislature, Regular Session, 1983, by adding section 4B to authorize DCURD to enter into tax abatement agreements to abate, or reduce, the District tax only. District tax abatements should encourage development in Las Colinas, which would strengthen Irving's tax base and result in a positive cash flow for DCURD. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, agency or department. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 628, Acts of the 68th Legislature Regular Session, 1983, by adding Section 4B, which grants the District additional rights, powers, privileges, authorities, and functions. (1) Grants the power to enter into tax abatement agreements and designate areas as reinvestment zones. The Redevelopment and Tax Abatement Act is followed except where modified by this Act. This Act prevails when in conflict with the Tax Code. (2) Provides for this Act to be effective during the effective dates of all tax abatement agreements entered into by the District or until the Act is amended, whichever is later. (3) Allows the governing body to designate reinvestment zones. (4) Grants the District all of a municipalities' rights, powers and authorization under the Tax Abatement Act. (5) Allows the District to enter into tax abatement agreements covering real and personal property for up to thirty years. This is subject to the rights of holders of outstanding tax-supported bonds of the District. (6) Allows the terms of tax abatement agreements to differ from other tax abatement agreements covering the same property. (7) Allows tax abatement agreements for facilities and structures that commenced, or were modified, on or after January 1, 1995, but before the effective date. (8) Allows the exemption of personal property located on property described in (7) unless it was located on the property prior to the tax abatement agreement. SECTION 2. Validates actions of the District with regard to an election, contract, the issuance of bonds and other obligations, the expenditure of funds in payment of the bonds, annexations, and other governmental and proprietary actions before the effective date. [This text was also included in prior DCURD legislation: SB 963 (68th Session), HB 2421 (69th Session), HB 2507 (70th Session), HB 1700 (71st Session), and SB 861 (72nd Session)]. SECTION 3. The requirements of the Texas Constitution have been met, and the Legislature has the authority to enact this Act. SECTION 4. EMERGENCY CLAUSE. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute merely corrects a typographical error in the original bill. The substitute changes the period (.) on page 1, line 18, of the original bill to a comma. It also changes the letter "T" in the word "This" on the same page and line number from a capital "T" to a lower-case "t." SUMMARY OF COMMITTEE ACTION HB 1236 was considered by the committee in a public hearing on February 27, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed and be sent to the Committee on Local and Consent Calendars, by a record vote of 9 ayes, 0 nays, 0 pnv, 0 absent.