1-1     By:  Bivins                                           S.B. No. 1061
 1-2           (In the Senate - Filed March 9, 1999; March 10, 1999, read
 1-3     first time and referred to Committee on Education; April 6, 1999,
 1-4     reported favorably by the following vote:  Yeas 8, Nays 0;
 1-5     April 6, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the ad valorem taxation of a certain leasehold or other
 1-9     possessory interest in real property constituting a certain project
1-10     of an industrial development corporation.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Subsection (k), Section 4B, Development
1-13     Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
1-14     Statutes), is amended to read as follows:
1-15           (k)  The legislature finds for all constitutional and
1-16     statutory purposes that projects of the types added to the
1-17     definition of that term by Subsection (a) of this section are
1-18     owned, used, and held for public purposes for and on behalf of the
1-19     eligible city incorporating the corporation, and [Section 23(b) of
1-20     this Act and Section 25.07(a), Tax Code, are not applicable to
1-21     leasehold or other possessory interests granted by the corporation]
1-22     during the period projects are owned by the corporation on behalf
1-23     of the eligible city, the projects[.  Projects] are exempt from
1-24     taxation under Section 11.11, Tax Code[, for that period].  A
1-25     leasehold or other possessory interest in real property
1-26     constituting a project described by this subsection is subject to
1-27     ad valorem taxation under Section 25.07(a), Tax Code, except that a
1-28     leasehold or other possessory interest in real property
1-29     constituting a project described by this subsection that is created
1-30     under an agreement entered into by the corporation before September
1-31     1, 1999, is covered by the provisions of this subsection governing
1-32     ad valorem taxation of the leasehold or other possessory interest
1-33     that were in effect on the date on which the agreement was
1-34     executed.
1-35           SECTION 2.  This Act takes effect September 1, 1999.
1-36           SECTION 3.  The importance of this legislation and the
1-37     crowded condition of the calendars in both houses create an
1-38     emergency and an imperative public necessity that the
1-39     constitutional rule requiring bills to be read on three several
1-40     days in each house be suspended, and this rule is hereby suspended.
1-41                                  * * * * *