74R9352 SMH-D By Grusendorf, Maxey H.B. No. 2860 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the power of certain school districts to grant tax 1-3 abatements. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 312, Tax Code, is amended by adding 1-6 Subchapter D to read as follows: 1-7 SUBCHAPTER D. TAX ABATEMENT IN SCHOOL DISTRICT 1-8 REINVESTMENT ZONE 1-9 Sec. 312.501. DESIGNATION OF REINVESTMENT ZONE. (a) The 1-10 board of trustees of a school district may designate as a 1-11 reinvestment zone an area of the district if: 1-12 (1) the board adopts guidelines and criteria as 1-13 required of a municipality to designate a reinvestment zone under 1-14 Section 312.002; 1-15 (2) the district's wealth per student does not exceed 1-16 the equalized wealth level; 1-17 (3) the area consists primarily of undeveloped land 1-18 that is contiguous to an airport of a municipality with a 1-19 population of more than 400,000; and 1-20 (4) the area is in a municipal utility district. 1-21 (b) The board may designate a reinvestment zone under this 1-22 section only if the board: 1-23 (1) conducts a public hearing on the proposed 1-24 designation at which persons may speak and present evidence for or 2-1 against the designation; and 2-2 (2) finds that the designation would contribute to: 2-3 (A) the retention or expansion of primary 2-4 employment in the zone or attract major investment to the zone that 2-5 would benefit property in the zone; and 2-6 (B) the economic development of the district. 2-7 (c) The board shall give notice of the hearing in the manner 2-8 required for a hearing under Section 312.201. 2-9 (d) The designation of a reinvestment zone expires on the 2-10 10th anniversary of the date of the designation and may be renewed 2-11 for periods not to exceed five years. The expiration of a 2-12 designation does not affect a tax abatement agreement made under 2-13 this subchapter that is in effect on the date the designation 2-14 expires. 2-15 (e) Territory that is located in a reinvestment zone 2-16 designated by a municipality under Subchapter B or in a 2-17 reinvestment zone designated by a county under Subchapter C is not 2-18 ineligible to be included in the area designated by the district 2-19 under this section. 2-20 (f) In this section, "wealth per student" and "equalized 2-21 wealth level" have the meanings assigned those terms by Section 2-22 36.001, Education Code. 2-23 Sec. 312.502. SCHOOL DISTRICT TAX ABATEMENT AGREEMENT. (a) 2-24 The board of trustees of a school district may agree with the owner 2-25 of taxable real property located in a reinvestment zone designated 2-26 under this subchapter to abate ad valorem taxes that the district 2-27 imposes on the property if the owner agrees to donate to the school 3-1 district real property in an amount and at a location acceptable to 3-2 the district that has been prepared in the manner specified by the 3-3 district for construction of a school building. The tax abatement 3-4 agreement does not take effect until the donation is made. 3-5 (b) Sections 312.204, 312.2041, 312.205, and 312.208 apply 3-6 to an agreement executed under this section as if the agreement 3-7 were executed under Subchapter B. 3-8 (c) A tax abatement agreement made by another taxing unit 3-9 under this chapter does not affect the authority of a school 3-10 district to make a tax abatement agreement under this section. 3-11 (d) A tax abatement agreement made by a school district 3-12 under this section does not affect the authority of another taxing 3-13 unit to make a tax abatement agreement under this chapter. 3-14 (e) Real property that is owned or leased by a member of the 3-15 board of trustees of the school district may not be subject to a 3-16 tax abatement agreement under this section. 3-17 SECTION 2. Section 312.006, Tax Code, is repealed. 3-18 SECTION 3. The importance of this legislation and the 3-19 crowded condition of the calendars in both houses create an 3-20 emergency and an imperative public necessity that the 3-21 constitutional rule requiring bills to be read on three several 3-22 days in each house be suspended, and this rule is hereby suspended, 3-23 and that this Act take effect and be in force from and after its 3-24 passage, and it is so enacted.