By Mowery                                              H.B. No. 550
         77R2819 SMH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a prohibition on ad valorem tax abatement agreements
 1-3     covering certain property located in air quality nonattainment
 1-4     areas.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter A, Chapter 312, Tax Code, is amended
 1-7     by adding Section 312.0025 to read as follows:
 1-8           Sec. 312.0025.  PROHIBITION ON TAX ABATEMENT IN AIR QUALITY
 1-9     NONATTAINMENT AREA. (a)  In this section, "nonattainment area"
1-10     means an area designated as such under Section 107(d) of the
1-11     federal Clean Air Act (42 U.S.C. Section 7407).
1-12           (b)  This section does not apply to property located in an
1-13     area designated as a reinvestment zone for residential tax
1-14     abatement.
1-15           (c)  Notwithstanding any other provision of this chapter, a
1-16     taxing unit may not enter into a tax abatement agreement under this
1-17     chapter covering property located in a nonattainment area.
1-18           (d)  This section does not affect the validity of a tax
1-19     abatement agreement entered into before the property covered by the
1-20     agreement becomes located in a nonattainment area.
1-21           SECTION 2.  This Act takes effect September 1, 2001.