1-1 By: Shapiro S.B. No. 1771
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 23, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 23, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1771 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to Dallas County Utility and Reclamation District tax
1-11 abatement agreements.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 4B, Chapter 628, Acts of the 68th
1-14 Legislature, Regular Session, 1983, is amended by amending
1-15 Subdivisions (3) and (5) through (8) and adding Subdivisions (9)
1-16 through (15) to read as follows:
1-17 (3) The governing body of the district may designate
1-18 as a reinvestment zone for a period of 50 years or until the
1-19 termination of all outstanding tax abatement agreements, whichever
1-20 occurs last, an area within its boundaries that satisfies the
1-21 requirements of Section 312.202, Tax Code.
1-22 (5) The district shall [may] enter into tax abatement
1-23 agreements for single-family residential property, as defined by
1-24 the district, for periods of 50 years and for property other than
1-25 single-family residential property for periods not to exceed:
1-26 (A) 25 years if the notice for the project is
1-27 submitted in 1999;
1-28 (B) 24 years if the notice for the project is
1-29 submitted in 2000;
1-30 (C) 23 years if the notice for the project is
1-31 submitted in 2001;
1-32 (D) 22 years if the notice for the project is
1-33 submitted in 2002;
1-34 (E) 21 years if the notice for the project is
1-35 submitted in 2003; and
1-36 (F) 20 years if the notice for the project is
1-37 submitted in 2004 or later.
1-38 (6) A tax abatement agreement is [30 years] subject to
1-39 the rights of credit providers of the district, including holders
1-40 of [outstanding] tax-supported bonds of the district, regardless of
1-41 when the bonds were issued.
1-42 (7) Except as provided by Subdivision (8) of this
1-43 section, a tax abatement agreement shall provide that the portion
1-44 of the taxable value of the property subject to the agreement that
1-45 exceeds the taxable value of the property for the year in which
1-46 notice for the project to which the agreement pertains is submitted
1-47 is:
1-48 (A) subject to an effective tax rate of:
1-49 (i) 60 cents for each $100 of taxable
1-50 value of property if the property is residential real property
1-51 other than single-family residential property; and
1-52 (ii) 50 cents for each $100 of taxable
1-53 value of property if the property is nonresidential real property;
1-54 and
1-55 (B) exempt from taxation if the property is
1-56 single-family residential property.
1-57 (8) This subdivision applies only to a tax abatement
1-58 agreement pertaining to a project for which notice is submitted in
1-59 2001 or later and does not apply to single-family residential
1-60 property. The applicable effective tax rate under Subdivision (7)
1-61 of this section is increased by the amount that the district's debt
1-62 rate at the time the notice for the project to which the tax
1-63 abatement agreement pertains is submitted exceeds 90 cents for each
1-64 $100 of taxable value of property but may not exceed 75 cents for
2-1 each $100 of taxable value of property.
2-2 (9) The district may enter into tax abatement
2-3 agreements with owners of [relative to] real [property] and [to
2-4 all] personal property within the district for proposed projects.
2-5 (10) The district shall adopt guidelines and criteria
2-6 governing tax abatement agreements by the district. The guidelines
2-7 and criteria must specify the criteria for an eligible project.
2-8 The guidelines and criteria are effective until the termination of
2-9 all outstanding tax abatement agreements. The district may amend
2-10 the guidelines and criteria by a vote of a majority of the members
2-11 of the board of directors of the district.
2-12 (11) The district shall adopt a form of tax abatement
2-13 agreement to be used by the district.
2-14 (12) A tax abatement agreement entered into by the
2-15 district:
2-16 (A) must be consistent with:
2-17 (i) the guidelines and criteria adopted by
2-18 the district;
2-19 (ii) the form of tax abatement agreement
2-20 adopted by the district; and
2-21 (iii) the requirements of deed
2-22 restrictions, or other equivalent restrictions, enforced by the Las
2-23 Colinas Association or by the district; and
2-24 (B) may:
2-25 (i) include phased projects;
2-26 (ii) incorporate the district's
2-27 infrastructure requirements; and
2-28 (iii) generally describe the kind, number,
2-29 and location of all proposed improvements, subject to any change
2-30 provided by a notice of intent to construct the project, specifying
2-31 the details of the project, submitted by the owner to the district.
2-32 (13) [(6)] Tax abatement agreements entered into by
2-33 the district are not required to contain identical terms as [of]
2-34 other tax abatement agreements, if any, covering:
2-35 (A) the same [or a portion of the same exempted]
2-36 property entered into by other taxing units; or
2-37 (B) different property entered into by the
2-38 district.
2-39 (14) [(7)] The district may enter into tax abatement
2-40 agreements for facilities and structures that commenced or were
2-41 modified on or after January 1, 1995, but before the effective date
2-42 of this Act.
2-43 (15) [(8)] The district may tax at a reduced rate as
2-44 provided by Subdivision (7) of this section [exempt] personal
2-45 property located on property described in Subdivision (14) of this
2-46 section [(7)] in each year covered by the agreement except for
2-47 personal property located on the property at any time before the
2-48 period covered by the agreement began.
2-49 SECTION 2. (a) The creation of the Dallas County Utility
2-50 and Reclamation District and all elections held by the district,
2-51 contracts entered into by the district, bonds and other obligations
2-52 issued by the district, expenditure of money in payment or
2-53 satisfaction of those bonds or other obligations, sales and
2-54 donations of assets, tax rate reduction agreements, and other
2-55 governmental and proprietary actions of the district are validated,
2-56 ratified, and confirmed.
2-57 (b) All bonds and maintenance taxes approved at elections
2-58 held in the Dallas County Utility and Reclamation District before
2-59 the effective date of this Act may be issued, levied, and collected
2-60 by the board of directors of the district without the necessity of
2-61 any further elections.
2-62 (c) The form of tax abatement agreements adopted by the
2-63 board of directors of the Dallas County Utility and Reclamation
2-64 District is validated, ratified, and confirmed.
2-65 SECTION 3. (a) The proper and legal notice of the intention
2-66 to introduce this Act, setting forth the general substance of this
2-67 Act, has been published as provided by law, and the notice and a
2-68 copy of this Act have been furnished to all persons, agencies,
2-69 officials, or entities to which they are required to be furnished
3-1 by the constitution and other laws of this state, including the
3-2 governor, who has submitted the notice and Act to the Texas Natural
3-3 Resource Conservation Commission.
3-4 (b) The Texas Natural Resource Conservation Commission has
3-5 filed its recommendations relating to this Act with the governor,
3-6 lieutenant governor, and speaker of the house of representatives
3-7 within the required time.
3-8 (c) All requirements of the constitution and laws of this
3-9 state and the rules and procedures of the legislature with respect
3-10 to the notice, introduction, and passage of this Act are fulfilled
3-11 and accomplished.
3-12 SECTION 4. This Act takes effect September 1, 1999.
3-13 SECTION 5. The importance of this legislation and the
3-14 crowded condition of the calendars in both houses create an
3-15 emergency and an imperative public necessity that the
3-16 constitutional rule requiring bills to be read on three several
3-17 days in each house be suspended, and this rule is hereby suspended.
3-18 * * * * *