1-1                                   AN ACT
 1-2     relating to the eligibility of certain property owned or leased by
 1-3     a local official for ad valorem tax abatement or tax increment
 1-4     financing.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 312.204(d), Tax Code, is amended to read
 1-7     as follows:
 1-8           (d)  Except as otherwise provided by this subsection,
 1-9     property [Property] that is in a reinvestment zone and that is
1-10     owned or leased by a person who is a member of the governing body
1-11     of the municipality or [by] a member of a zoning or planning board
1-12     or commission of the municipality is excluded from property tax
1-13     abatement or tax increment financing.  Property that is subject to
1-14     a tax abatement agreement in effect when the person becomes a
1-15     member of the governing body or of the zoning or planning board or
1-16     commission does not cease to be eligible for property tax abatement
1-17     under that agreement because of the person's membership on the
1-18     governing body, board, or commission.  Property that is subject to
1-19     tax increment financing when the person becomes a member of the
1-20     governing body or of the zoning or planning board or commission
1-21     does not become ineligible for tax increment financing in the same
1-22     reinvestment zone because of the person's membership on the
1-23     governing body, board, or commission.
1-24           SECTION 2.  Section 312.402(d), Tax Code, is amended to read
 2-1     as follows:
 2-2           (d)  Except as otherwise provided by this subsection,
 2-3     property [Property] that is located in a reinvestment zone
 2-4     designated by a county under this subchapter and that is owned or
 2-5     leased by a person who is a member of the commissioners court may
 2-6     not be subject to a tax abatement agreement made under this
 2-7     section.  Property that is subject to a tax abatement agreement
 2-8     under this section in effect when the person becomes a member of
 2-9     the commissioners court does not cease to be eligible for property
2-10     tax abatement under that agreement because of the person's
2-11     membership on the commissioners court.
2-12           SECTION 3.  This Act takes effect immediately if it receives
2-13     a vote of two-thirds of all the members elected to each house, as
2-14     provided by Section 39, Article III, Texas Constitution.  If this
2-15     Act does not receive the vote necessary for immediate effect, this
2-16     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 1194 was passed by the House on April
         24, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 1194 was passed by the Senate on May
         22, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor