76R13246 BDH-D
By Hartnett H.B. No. 3796
Substitute the following for H.B. No. 3796:
By Counts C.S.H.B. No. 3796
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to Dallas County Utility and Reclamation District tax
1-3 abatement agreements.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4B, Chapter 628, Acts of the 68th
1-6 Legislature, Regular Session, 1983, is amended by amending
1-7 Subdivisions (3) and (5)-(8) and adding Subdivisions (9)-(15) to
1-8 read as follows:
1-9 (3) The governing body of the district may designate
1-10 as a reinvestment zone for a period of 50 years or until the
1-11 termination of all outstanding tax abatement agreements, whichever
1-12 occurs last, an area within its boundaries that satisfies the
1-13 requirements of Section 312.202, Tax Code.
1-14 (5) The district shall [may] enter into tax abatement
1-15 agreements for single-family residential property, as defined by
1-16 the district, for periods of 50 years, and for property other than
1-17 single-family residential property for periods not to exceed:
1-18 (A) 25 years if the notice for the project is
1-19 submitted in 1999;
1-20 (B) 24 years if the notice for the project is
1-21 submitted in 2000;
1-22 (C) 23 years if the notice for the project is
1-23 submitted in 2001;
1-24 (D) 22 years if the notice for the project is
2-1 submitted in 2002;
2-2 (E) 21 years if the notice for the project is
2-3 submitted in 2003; and
2-4 (F) 20 years if the notice for the project is
2-5 submitted in 2004 or later.
2-6 (6) A tax abatement agreement is [30 years] subject to
2-7 the rights of credit providers of the district, including holders
2-8 of [outstanding] tax-supported bonds of the district, regardless of
2-9 when the bonds were issued.
2-10 (7) Except as provided by Subdivision (8) of this
2-11 section, a tax abatement agreement shall provide that the portion
2-12 of the taxable value of the property subject to the agreement that
2-13 exceeds the taxable value of the property for the year in which
2-14 notice for the project to which the agreement pertains is submitted
2-15 is:
2-16 (A) subject to an effective tax rate of:
2-17 (i) 60 cents for each $100 of taxable
2-18 value of property if the property is residential real property
2-19 other than single-family residential property; and
2-20 (ii) 50 cents for each $100 of taxable
2-21 value of property if the property is nonresidential real property;
2-22 and
2-23 (B) exempt from taxation if the property is
2-24 single-family residential property.
2-25 (8) This subdivision applies only to a tax abatement
2-26 agreement pertaining to a project for which notice is submitted in
2-27 2001 or later, but does not apply to single-family residential
3-1 property. The applicable effective tax rate under Subdivision (7)
3-2 of this section is increased by the amount that the district's debt
3-3 rate at the time the notice for the project to which the tax
3-4 abatement agreement pertains is submitted exceeds 90 cents for each
3-5 $100 of taxable value of property, but may not exceed 75 cents for
3-6 each $100 of taxable value of property.
3-7 (9) The district may enter into tax abatement
3-8 agreements with owners of [relative to] real [property] and [to
3-9 all] personal property within the district for proposed projects.
3-10 (10) The district shall adopt guidelines and criteria
3-11 governing tax abatement agreements by the district. The guidelines
3-12 and criteria must specify the criteria for an eligible project.
3-13 The guidelines and criteria are effective until the termination of
3-14 all outstanding tax abatement agreements. The district may amend
3-15 the guidelines and criteria by a vote of a majority of the members
3-16 of the board of directors of the district.
3-17 (11) The district shall adopt a form of tax abatement
3-18 agreement to be used by the district.
3-19 (12) A tax abatement agreement entered into by the
3-20 district:
3-21 (A) must be consistent with:
3-22 (i) the guidelines and criteria adopted by
3-23 the district;
3-24 (ii) the form of tax abatement agreement
3-25 adopted by the district; and
3-26 (iii) the requirements of deed
3-27 restrictions, or other equivalent restrictions, enforced by the Las
4-1 Colinas Association or by the district; and
4-2 (B) may:
4-3 (i) include phased projects;
4-4 (ii) incorporate the district's
4-5 infrastructure requirements; and
4-6 (iii) generally describe the kind, number,
4-7 and location of all proposed improvements, subject to any change
4-8 provided by a notice of intent to construct the project, specifying
4-9 the details of the project, submitted by the owner to the district.
4-10 (13) [(6)] Tax abatement agreements entered into by
4-11 the district are not required to contain identical terms as [of]
4-12 other tax abatement agreements, if any, covering:
4-13 (A) the same [or a portion of the same exempted]
4-14 property entered into by other taxing units; or
4-15 (B) different property entered into by the
4-16 district.
4-17 (14) [(7)] The district may enter into tax abatement
4-18 agreements for facilities and structures that commenced or were
4-19 modified on or after January 1, 1995, but before the effective date
4-20 of this Act.
4-21 (15) [(8)] The district may tax at a reduced rate or
4-22 exempt personal property located on property described in
4-23 Subdivision (14) of this section [(7)] in each year covered by the
4-24 agreement except for personal property located on the property at
4-25 any time before the period covered by the agreement began.
4-26 SECTION 2. (a) The creation of the Dallas County Utility
4-27 and Reclamation District and all elections held by the district,
5-1 contracts entered into by the district, bonds and other obligations
5-2 issued by the district, money spent in payment or satisfaction of
5-3 those bonds or other obligations, sales and donations of assets,
5-4 tax rate reduction agreements, and other governmental and
5-5 proprietary actions of the district are validated, ratified, and
5-6 confirmed.
5-7 (b) All bonds and maintenance taxes approved at elections
5-8 held in the district before the effective date of this Act may be
5-9 issued, levied, and collected by the board of directors of the
5-10 district without the necessity of any further elections.
5-11 (c) The form of tax abatement agreements adopted by the
5-12 board of directors of the district is validated, ratified, and
5-13 confirmed.
5-14 SECTION 3. (a) The proper and legal notice of the intention
5-15 to introduce this Act, setting forth the general substance of this
5-16 Act, has been published as provided by law, and the notice and a
5-17 copy of this Act have been furnished to all persons, agencies,
5-18 officials, or entities to which they are required to be furnished
5-19 by the constitution and other laws of this state, including the
5-20 governor, who has submitted the notice and Act to the Texas Natural
5-21 Resource Conservation Commission.
5-22 (b) The Texas Natural Resource Conservation Commission has
5-23 filed its recommendations relating to this Act with the governor,
5-24 lieutenant governor, and speaker of the house of representatives
5-25 within the required time.
5-26 (c) All requirements of the constitution and laws of this
5-27 state and the rules and procedures of the legislature with respect
6-1 to the notice, introduction, and passage of this Act are fulfilled
6-2 and accomplished.
6-3 SECTION 4. This Act takes effect September 1, 1999.
6-4 SECTION 5. The importance of this legislation and the
6-5 crowded condition of the calendars in both houses create an
6-6 emergency and an imperative public necessity that the
6-7 constitutional rule requiring bills to be read on three several
6-8 days in each house be suspended, and this rule is hereby suspended.