By Garcia                                              H.B. No. 838
         76R219 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to tax abatement by school districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 312.002, Tax Code, is amended by adding
 1-5     Subsections (e) and (f) to read as follows:
 1-6           (e)  "Taxing unit" has the meaning assigned by Section 1.04,
 1-7     except that for a tax abatement agreement executed on or after
 1-8     September 1, 1999, the term does not include a school district that
 1-9     is subject to Chapter 42, Education Code, and that is organized
1-10     primarily to provide general elementary and secondary public
1-11     education.
1-12           (f)  On or after September 1, 1999, a school district may not
1-13     enter into a tax abatement agreement under this chapter.
1-14           SECTION 2.  Section 312.208, Tax Code, is amended by adding
1-15     Subsection (c) to read as follows:
1-16           (c)  A tax abatement agreement entered into by a school
1-17     district before September 1, 1999, may not be modified on or after
1-18     September 1, 1999, to:
1-19                 (1)  add property to be exempt from taxation by a
1-20     school district under the agreement;
1-21                 (2)  increase the portion of the value of the property
1-22     exempt from taxation by a school district under the agreement; or
1-23                 (3)  increase the duration of the participation by a
1-24     school district under the agreement.
 2-1           SECTION 3.  This Act takes effect September 1, 1999.
 2-2           SECTION 4.  The importance of this legislation and the
 2-3     crowded condition of the calendars in both houses create an
 2-4     emergency and an imperative public necessity that the
 2-5     constitutional rule requiring bills to be read on three several
 2-6     days in each house be suspended, and this rule is hereby suspended.