By:  Bivins                                           S.B. No. 1061
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the ad valorem taxation of a certain leasehold or other
 1-2     possessory interest in real property constituting a certain project
 1-3     of an industrial development corporation.
 1-5           SECTION 1.  Subsection (k), Section 4B, Development
 1-6     Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
 1-7     Statutes), is amended to read as follows:
 1-8           (k)  The legislature finds for all constitutional and
 1-9     statutory purposes that projects of the types added to the
1-10     definition of that term by Subsection (a) of this section are
1-11     owned, used, and held for public purposes for and on behalf of the
1-12     eligible city incorporating the corporation, and [Section 23(b) of
1-13     this Act and Section 25.07(a), Tax Code, are not applicable to
1-14     leasehold or other possessory interests granted by the corporation]
1-15     during the period projects are owned by the corporation on behalf
1-16     of the eligible city, the projects[.  Projects] are exempt from
1-17     taxation under Section 11.11, Tax Code[, for that period].  A
1-18     leasehold or other possessory interest in real property
1-19     constituting a project described by this subsection is subject to
1-20     ad valorem taxation under Section 25.07(a), Tax Code, except that a
1-21     leasehold or other possessory interest in real property
1-22     constituting a project described by this subsection that is created
1-23     under an agreement entered into by the corporation before September
1-24     1, 1999, is covered by the provisions of this subsection governing
 2-1     ad valorem taxation of the leasehold or other possessory interest
 2-2     that were in effect on the date on which the agreement was
 2-3     executed.
 2-4           SECTION 2.  This Act takes effect September 1, 1999.
 2-5           SECTION 3.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended.