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.