74R9352 SMH-D
          By Grusendorf, Maxey                                  H.B. No. 2860
          Substitute the following for H.B. No. 2860:
          By Craddick                                       C.S.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.
    1-5        SECTION 1.  Chapter 312, Tax Code, is amended by adding
    1-6  Subchapter D to read as follows:
    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.