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.