By Grusendorf, Maxey H.B. No. 2860 74R3559 SMH-D 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; and 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. 1-20 (b) The board may designate a reinvestment zone under this 1-21 section only if the board: 1-22 (1) conducts a public hearing on the proposed 1-23 designation at which persons may speak and present evidence for or 1-24 against the designation; and 2-1 (2) finds that the designation would contribute to: 2-2 (A) the retention or expansion of primary 2-3 employment in the zone or attract major investment to the zone that 2-4 would benefit property in the zone; and 2-5 (B) the economic development of the district. 2-6 (c) The board shall give notice of the hearing in the manner 2-7 required for a hearing under Section 312.201. 2-8 (d) The designation of a reinvestment zone expires on the 2-9 fifth anniversary of the date of the designation and may be renewed 2-10 for periods not to exceed five years. The expiration of a 2-11 designation does not affect a tax abatement agreement made under 2-12 this subchapter that is in effect on the date the designation 2-13 expires. 2-14 (e) Territory that is located in a reinvestment zone 2-15 designated by a municipality under Subchapter A or in a 2-16 reinvestment zone designated by a county under Subchapter B is not 2-17 ineligible to be included in the area designated by the district 2-18 under this section. 2-19 (f) In this section, "wealth per student" and "equalized 2-20 wealth level" have the meanings assigned those terms by Section 2-21 36.001, Education Code. 2-22 Sec. 312.502. SCHOOL DISTRICT TAX ABATEMENT AGREEMENT. (a) 2-23 The board of trustees of a school district may agree with the owner 2-24 of taxable real property located in a reinvestment zone designated 2-25 under this subchapter to abate ad valorem taxes that the district 2-26 imposes on the property if the owner agrees to donate to the school 2-27 district real property in an amount and at a location acceptable to 3-1 the district that has been prepared in the manner specified by the 3-2 district for construction of a school building. The tax abatement 3-3 agreement does not take effect until the donation is made. 3-4 (b) Sections 312.204, 312.2041, 312.205, and 312.208 apply 3-5 to an agreement executed under this section as if the agreement 3-6 were executed under Subchapter B. 3-7 (c) A tax abatement agreement made by another taxing unit 3-8 under this chapter does not affect the authority of a school 3-9 district to make a tax abatement agreement under this section. 3-10 (d) A tax abatement agreement made by a school district 3-11 under this section does not affect the authority of another taxing 3-12 unit to make a tax abatement agreement under this chapter. 3-13 (e) Real property that is owned or leased by a member of the 3-14 board of trustees of the school district may not be subject to a 3-15 tax abatement agreement under this section. 3-16 SECTION 2. Section 312.006, Tax Code, is repealed. 3-17 SECTION 3. The importance of this legislation and the 3-18 crowded condition of the calendars in both houses create an 3-19 emergency and an imperative public necessity that the 3-20 constitutional rule requiring bills to be read on three several 3-21 days in each house be suspended, and this rule is hereby suspended, 3-22 and that this Act take effect and be in force from and after its 3-23 passage, and it is so enacted.