By Barrientos                                         S.B. No. 1598
       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.
    1-5        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; 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.