By Zaffirini                                          S.B. No. 1773
         76R8356 JD-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the exemption from ad valorem taxation of pollution
 1-3     control equipment.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 11.31(c)-(g), Tax Code, are amended to
 1-6     read as follows:
 1-7           (c)  A person is eligible for an exemption under this section
 1-8     for property initially placed into use as a facility, device, or
 1-9     method for the control of air, water, or land pollution on or after
1-10     March 1, 2000, only if the person complies with Subsection (d)
1-11     before the person begins to use the property as a facility, device,
1-12     or method for the control of air, water, or land pollution.
1-13           (d)  In applying for an exemption under this section, the [a]
1-14     person seeking the exemption shall present in a permit application
1-15     or permit exemption request to the executive director of the Texas
1-16     Natural Resource Conservation Commission:
1-17                 (1)  information detailing:
1-18                       (A) [(1)]  the anticipated environmental benefits
1-19     from the installation of the facility, device, or method for the
1-20     control of air, water, or land pollution;
1-21                       (B) [(2)]  the estimated cost of the pollution
1-22     control facility, device, or method; and
1-23                       (C) [(3)]  the purpose of the installation of
1-24     such facility, device, or method, and the proportion of the
 2-1     installation that is pollution control property; and
 2-2                 (2)  if [.  If] the installation includes property that
 2-3     is not used wholly for the control of air, water, or land
 2-4     pollution, [the person seeking the exemption shall also present]
 2-5     such financial or other data as the executive director requires by
 2-6     rule for the determination of the proportion of the installation
 2-7     that is pollution control property.
 2-8           (e) [(d)]  Following submission of the information required
 2-9     by Subsection (d) [(c)], the executive director of the Texas
2-10     Natural Resource Conservation Commission shall determine if the
2-11     facility, device, or method is used wholly or partly as a facility,
2-12     device, or method for the control of air, water, or land pollution.
2-13     As soon as practicable, the executive director shall send notice by
2-14     regular mail to the chief appraiser of the appraisal district for
2-15     the county in which the property is located that the person has
2-16     applied for a determination under this subsection.  If the
2-17     executive director determines that the facility, device, or method
2-18     is used wholly or partly to control pollution, the director shall
2-19     issue a letter to the person stating that determination and the
2-20     proportion of the installation that is pollution control property.
2-21           (f) [(e)]  The Texas Natural Resource Conservation Commission
2-22     may charge a person seeking a determination that property is
2-23     pollution control property an additional fee not to exceed its
2-24     administrative costs for processing the information, making the
2-25     determination, and issuing the letter required by this section.
2-26     The commission may adopt rules to implement this section.
2-27           (g) [(f)]  A person seeking an exemption under this section
 3-1     shall provide to the chief appraiser a copy of the letter issued by
 3-2     the executive director of the Texas Natural Resource Conservation
 3-3     Commission under Subsection (e) [(d)].  The chief appraiser shall
 3-4     accept the copy of the letter from the executive director as
 3-5     conclusive evidence that the facility, device, or method is used
 3-6     wholly or partly as pollution control property.
 3-7           (h) [(g)]  This section does not apply to a facility, device,
 3-8     or method for the control of air, water, or land pollution that was
 3-9     subject to a tax abatement agreement executed before January 1,
3-10     1994.
3-11           SECTION 2.  This Act takes effect January 1, 2000, and
3-12     applies to a tax year that begins on or after that date.
3-13           SECTION 3.  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.