By Mowery                                       H.J.R. No. 37

      75R1740 SMH-D                           

                                 A JOINT RESOLUTION

 1-1     proposing a constitutional amendment to repeal the provision that

 1-2     authorizes the legislature to permit taxing units to grant ad

 1-3     valorem tax exemptions for economic development.

 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 1-g, Article VIII, Texas Constitution, is

 1-6     amended to read as follows:

 1-7           Sec. 1-g.  [(a)  The legislature by general law may authorize

 1-8     cities, towns, and other taxing units to grant exemptions or other

 1-9     relief from ad valorem taxes on property located in a reinvestment

1-10     zone for the purpose of encouraging development or redevelopment

1-11     and improvement of the property.]

1-12           [(b)]  The legislature by general law may authorize an

1-13     incorporated city or town to issue bonds or notes to finance the

1-14     development or redevelopment of an unproductive, underdeveloped, or

1-15     blighted area within the city or town and to pledge for repayment

1-16     of those bonds or notes increases in ad valorem tax revenues

1-17     imposed on property in the area by the city or town and other

1-18     political subdivisions.

1-19           SECTION 2.  Article VIII, Texas Constitution, is amended by

1-20     adding Section 1-g-1 to read as follows:

1-21           Sec. 1-g-1.  TEMPORARY PROVISION.  (a)  This temporary

1-22     provision applies to the constitutional amendment proposed by ___

1-23     J.R. No.____, 75th Legislature, Regular Session, 1997, and expires

1-24     January 1, 2008.

 2-1           (b)  The amendment to Section 1-g, Article VIII, of this

 2-2     constitution takes effect January 1, 1998.

 2-3           (c)  The amendment does not affect a tax abatement agreement

 2-4     entered into under Section 1-g, Article VIII, of this constitution

 2-5     before the effective date of the amendment.  A tax abatement

 2-6     agreement entered into by a taxing unit under that section before

 2-7     the effective date of the amendment is governed by the law as it

 2-8     existed on the date the agreement was executed, and that law is

 2-9     continued in effect for that purpose.

2-10           SECTION 3.  This proposed constitutional amendment shall be

2-11     submitted to the voters at an election to be held November 4, 1997.

2-12     The ballot shall be printed to permit voting for or against the

2-13     proposition: "The constitutional amendment to repeal the provision

2-14     that authorizes the legislature to permit taxing units to grant ad

2-15     valorem tax exemptions for economic development."