By Nelson                                       S.B. No. 1450

      75R1174 MI-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the terms of tax abatement agreements entered into by

 1-3     the Dallas County Flood Control District No. 1.

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

 1-5           SECTION 1.  Sections 16E(a), (b), and (d), Chapter 1081, Acts

 1-6     of the 68th Legislature, Regular Session, 1983, are amended to read

 1-7     as follows:

 1-8           (a)  The district may agree in writing with the owner of

 1-9     taxable real property that is located in a reinvestment zone, but

1-10     that is not in an improvement project financed by tax increment

1-11     bonds, to exempt from taxation a portion of the value of the real

1-12     property or of tangible personal property located on the real

1-13     property, or both, for a period not to exceed 30 [10] years,

1-14     subject to the rights of holders of outstanding bonds of the

1-15     district, on the condition that the owner of the property make

1-16     specific improvements or repairs to the property.  An agreement may

1-17     provide for the exemption of the real property in each year covered

1-18     by the agreement only to the extent its value for that year exceeds

1-19     its value for the year in which the agreement is executed.  An

1-20     agreement may provide for the exemption of tangible personal

1-21     property located on the real property in each year covered by the

1-22     agreement other than tangible personal property that was located on

1-23     the real property at any time before the period covered by the

1-24     agreement with the district.  An agreement may cover more than one

 2-1     commercial-industrial project.

 2-2           (b)  A tax abatement agreement entered into by the district

 2-3     is not required to contain terms identical to another tax abatement

 2-4     agreement that covers the same exempted property or a portion of

 2-5     that property.  [The agreements made with the owners of property in

 2-6     a reinvestment zone must contain identical terms for the portion of

 2-7     the value of the property that is to be exempt and the duration of

 2-8     the exemption.]

 2-9           (d)  The board of directors may agree in writing with the

2-10     owner or lessee of real property that is located in a reinvestment

2-11     zone to exempt from taxation for a period not to exceed 30 [10]

2-12     years a portion of the value of the real property or of personal

2-13     property, or both, located within the zone and owned or leased by a

2-14     certificated air carrier, on the condition that the certificated

2-15     air carrier make specific real property improvements or lease for a

2-16     term of 30 [10] years or more real property improvements located

2-17     within the reinvestment zone.  An agreement may provide for the

2-18     exemption of the real property in each year covered by the

2-19     agreement to the extent its value for that year exceeds its value

2-20     for the year in which the agreement is executed.  An agreement may

2-21     provide for the exemption of the personal property owned or leased

2-22     by a certificated air carrier located within the reinvestment zone

2-23     in each year covered by the agreement other than specific personal

2-24     property that was located within the reinvestment zone at any time

2-25     before the period covered by the agreement with the district.

2-26           SECTION 2.  Section 16G(a), Chapter 1081, Acts of the 68th

2-27     Legislature, Regular Session, 1983, is amended to read as follows:

 3-1           (a)  At any time before the expiration of an agreement made

 3-2     under this Act, the agreement may be modified by the parties to the

 3-3     agreement to include other provisions that could have been included

 3-4     in the original agreement or to delete provisions that were not

 3-5     necessary to the original agreement.  The modification must be made

 3-6     by the same procedure by which the original agreement was approved

 3-7     and executed.  The original agreement may not be modified to extend

 3-8     beyond 30 [10] years from the date of the original agreement.

 3-9           SECTION 3.  The importance of this legislation and the

3-10     crowded condition of the calendars in both houses create an

3-11     emergency and an imperative public necessity that the

3-12     constitutional rule requiring bills to be read on three several

3-13     days in each house be suspended, and this rule is hereby suspended,

3-14     and that this Act take effect and be in force from and after its

3-15     passage, and it is so enacted.