1-1     By:  Nelson                                           S.B. No. 1450

 1-2           (In the Senate - Filed March 13, 1997; March 19, 1997, read

 1-3     first time and referred to Committee on Economic Development;

 1-4     April 7, 1997, reported favorably by the following vote:  Yeas 9,

 1-5     Nays 0; April 7, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the terms of tax abatement agreements entered into by

 1-9     the Dallas County Flood Control District No. 1.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subsections (a), (b), and (d), Section 16E,

1-12     Chapter 1081, Acts of the 68th Legislature, Regular Session, 1983,

1-13     are amended to read as follows:

1-14           (a)  The district may agree in writing with the owner of

1-15     taxable real property that is located in a reinvestment zone, but

1-16     that is not in an improvement project financed by tax increment

1-17     bonds, to exempt from taxation a portion of the value of the real

1-18     property or of tangible personal property located on the real

1-19     property, or both, for a period not to exceed 30 [10] years,

1-20     subject to the rights of holders of outstanding bonds of the

1-21     district, on the condition that the owner of the property make

1-22     specific improvements or repairs to the property.  An agreement may

1-23     provide for the exemption of the real property in each year covered

1-24     by the agreement only to the extent its value for that year exceeds

1-25     its value for the year in which the agreement is executed.  An

1-26     agreement may provide for the exemption of tangible personal

1-27     property located on the real property in each year covered by the

1-28     agreement other than tangible personal property that was located on

1-29     the real property at any time before the period covered by the

1-30     agreement with the district.  An agreement may cover more than one

1-31     commercial-industrial project.

1-32           (b)  A tax abatement agreement entered into by the district

1-33     is not required to contain terms identical to another tax abatement

1-34     agreement that covers the same exempted property or a portion of

1-35     that property.  [The agreements made with the owners of property in

1-36     a reinvestment zone must contain identical terms for the portion of

1-37     the value of the property that is to be exempt and the duration of

1-38     the exemption.]

1-39           (d)  The board of directors may agree in writing with the

1-40     owner or lessee of real property that is located in a reinvestment

1-41     zone to exempt from taxation for a period not to exceed 30 [10]

1-42     years a portion of the value of the real property or of personal

1-43     property, or both, located within the zone and owned or leased by a

1-44     certificated air carrier, on the condition that the certificated

1-45     air carrier make specific real property improvements or lease for a

1-46     term of 30 [10] years or more real property improvements located

1-47     within the reinvestment zone.  An agreement may provide for the

1-48     exemption of the real property in each year covered by the

1-49     agreement to the extent its value for that year exceeds its value

1-50     for the year in which the agreement is executed.  An agreement may

1-51     provide for the exemption of the personal property owned or leased

1-52     by a certificated air carrier located within the reinvestment zone

1-53     in each year covered by the agreement other than specific personal

1-54     property that was located within the reinvestment zone at any time

1-55     before the period covered by the agreement with the district.

1-56           SECTION 2.  Subsection (a), Section 16G, Chapter 1081, Acts

1-57     of the 68th Legislature, Regular Session, 1983, is amended to read

1-58     as follows:

1-59           (a)  At any time before the expiration of an agreement made

1-60     under this Act, the agreement may be modified by the parties to the

1-61     agreement to include other provisions that could have been included

1-62     in the original agreement or to delete provisions that were not

1-63     necessary to the original agreement.  The modification must be made

1-64     by the same procedure by which the original agreement was approved

 2-1     and executed.  The original agreement may not be modified to extend

 2-2     beyond 30 [10] years from the date of the original agreement.

 2-3           SECTION 3.  The importance of this legislation and the

 2-4     crowded condition of the calendars in both houses create an

 2-5     emergency and an imperative public necessity that the

 2-6     constitutional rule requiring bills to be read on three several

 2-7     days in each house be suspended, and this rule is hereby suspended,

 2-8     and that this Act take effect and be in force from and after its

 2-9     passage, and it is so enacted.

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