AN ACT
1-1 relating to Dallas County Utility and Reclamation District tax
1-2 abatement agreements.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4B, Chapter 628, Acts of the 68th
1-5 Legislature, Regular Session, 1983, is amended by amending
1-6 Subdivisions (3) and (5) through (8) and adding Subdivisions (9)
1-7 through (15) to read as follows:
1-8 (3) The governing body of the district may designate
1-9 as a reinvestment zone for a period of 50 years or until the
1-10 termination of all outstanding tax abatement agreements, whichever
1-11 occurs last, an area within its boundaries that satisfies the
1-12 requirements of Section 312.202, Tax Code.
1-13 (5) The district shall [may] enter into tax abatement
1-14 agreements for single-family residential property, as defined by
1-15 the district, for periods of 50 years and for property other than
1-16 single-family residential property for periods not to exceed:
1-17 (A) 25 years if the notice for the project is
1-18 submitted in 1999;
1-19 (B) 24 years if the notice for the project is
1-20 submitted in 2000;
1-21 (C) 23 years if the notice for the project is
1-22 submitted in 2001;
1-23 (D) 22 years if the notice for the project is
1-24 submitted in 2002;
2-1 (E) 21 years if the notice for the project is
2-2 submitted in 2003; and
2-3 (F) 20 years if the notice for the project is
2-4 submitted in 2004 or later.
2-5 (6) A tax abatement agreement is [30 years] subject to
2-6 the rights of credit providers of the district, including holders
2-7 of [outstanding] tax-supported bonds of the district, regardless of
2-8 when the bonds were issued.
2-9 (7) Except as provided by Subdivision (8) of this
2-10 section, a tax abatement agreement shall provide that the portion
2-11 of the taxable value of the property subject to the agreement that
2-12 exceeds the taxable value of the property for the year in which
2-13 notice for the project to which the agreement pertains is submitted
2-14 is:
2-15 (A) subject to an effective tax rate of:
2-16 (i) 60 cents for each $100 of taxable
2-17 value of property if the property is residential real property
2-18 other than single-family residential property; and
2-19 (ii) 50 cents for each $100 of taxable
2-20 value of property if the property is nonresidential real property;
2-21 and
2-22 (B) exempt from taxation if the property is
2-23 single-family residential property.
2-24 (8) This subdivision applies only to a tax abatement
2-25 agreement pertaining to a project for which notice is submitted in
2-26 2001 or later and 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
4-1 restrictions, or other equivalent restrictions, enforced by the Las
4-2 Colinas Association or by the district; and
4-3 (B) may:
4-4 (i) include phased projects;
4-5 (ii) incorporate the district's
4-6 infrastructure requirements; and
4-7 (iii) generally describe the kind, number,
4-8 and location of all proposed improvements, subject to any change
4-9 provided by a notice of intent to construct the project, specifying
4-10 the details of the project, submitted by the owner to the district.
4-11 (13) [(6)] Tax abatement agreements entered into by
4-12 the district are not required to contain identical terms as [of]
4-13 other tax abatement agreements, if any, covering:
4-14 (A) the same [or a portion of the same exempted]
4-15 property entered into by other taxing units; or
4-16 (B) different property entered into by the
4-17 district.
4-18 (14) [(7)] The district may enter into tax abatement
4-19 agreements for facilities and structures that commenced or were
4-20 modified on or after January 1, 1995, but before the effective date
4-21 of this Act.
4-22 (15) [(8)] The district may tax at a reduced rate as
4-23 provided by Subdivision (7) of this section [exempt] personal
4-24 property located on property described in Subdivision (14) of this
4-25 section [(7)] in each year covered by the agreement except for
4-26 personal property located on the property at any time before the
5-1 period covered by the agreement began.
5-2 SECTION 2. (a) The creation of the Dallas County Utility
5-3 and Reclamation District and all elections held by the district,
5-4 contracts entered into by the district, bonds and other obligations
5-5 issued by the district, expenditure of money in payment or
5-6 satisfaction of those bonds or other obligations, sales and
5-7 donations of assets, tax rate reduction agreements, and other
5-8 governmental and proprietary actions of the district are validated,
5-9 ratified, and confirmed.
5-10 (b) All bonds and maintenance taxes approved at elections
5-11 held in the Dallas County Utility and Reclamation District before
5-12 the effective date of this Act may be issued, levied, and collected
5-13 by the board of directors of the district without the necessity of
5-14 any further elections.
5-15 (c) The form of tax abatement agreements adopted by the
5-16 board of directors of the Dallas County Utility and Reclamation
5-17 District is validated, ratified, and confirmed.
5-18 SECTION 3. (a) The proper and legal notice of the intention
5-19 to introduce this Act, setting forth the general substance of this
5-20 Act, has been published as provided by law, and the notice and a
5-21 copy of this Act have been furnished to all persons, agencies,
5-22 officials, or entities to which they are required to be furnished
5-23 by the constitution and other laws of this state, including the
5-24 governor, who has submitted the notice and Act to the Texas Natural
5-25 Resource Conservation Commission.
5-26 (b) The Texas Natural Resource Conservation Commission has
6-1 filed its recommendations relating to this Act with the governor,
6-2 lieutenant governor, and speaker of the house of representatives
6-3 within the required time.
6-4 (c) All requirements of the constitution and laws of this
6-5 state and the rules and procedures of the legislature with respect
6-6 to the notice, introduction, and passage of this Act are fulfilled
6-7 and accomplished.
6-8 SECTION 4. This Act takes effect September 1, 1999.
6-9 SECTION 5. The importance of this legislation and the
6-10 crowded condition of the calendars in both houses create an
6-11 emergency and an imperative public necessity that the
6-12 constitutional rule requiring bills to be read on three several
6-13 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1771 passed the Senate on
May 3, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1771 passed the House on
May 19, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor