1-1     By:  Brimer (Senate Sponsor - Harris)                 H.B. No. 1194
 1-2           (In the Senate - Received from the House April 25, 2001;
 1-3     April 26, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 11, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 11, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the eligibility of certain property owned or leased by
1-10     a local official for ad valorem tax abatement or tax increment
1-11     financing.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Section 312.204(d), Tax Code, is amended to read
1-14     as follows:
1-15           (d)  Except as otherwise provided by this subsection,
1-16     property [Property] that is in a reinvestment zone and that is
1-17     owned or leased by a person who is a member of the governing body
1-18     of the municipality or [by] a member of a zoning or planning board
1-19     or commission of the municipality is excluded from property tax
1-20     abatement or tax increment financing.  Property that is subject to
1-21     a tax abatement agreement in effect when the person becomes a
1-22     member of the governing body or of the zoning or planning board or
1-23     commission does not cease to be eligible for property tax abatement
1-24     under that agreement because of the person's membership on the
1-25     governing body, board, or commission.  Property that is subject to
1-26     tax increment financing when the person becomes a member of the
1-27     governing body or of the zoning or planning board or commission
1-28     does not become ineligible for tax increment financing in the same
1-29     reinvestment zone because of the person's membership on the
1-30     governing body, board, or commission.
1-31           SECTION 2.  Section 312.402(d), Tax Code, is amended to read
1-32     as follows:
1-33           (d)  Except as otherwise provided by this subsection,
1-34     property [Property] that is located in a reinvestment zone
1-35     designated by a county under this subchapter and that is owned or
1-36     leased by a person who is a member of the commissioners court may
1-37     not be subject to a tax abatement agreement made under this
1-38     section.  Property that is subject to a tax abatement agreement
1-39     under this section in effect when the person becomes a member of
1-40     the commissioners court does not cease to be eligible for property
1-41     tax abatement under that agreement because of the person's
1-42     membership on the commissioners court.
1-43           SECTION 3.  This Act takes effect immediately if it receives
1-44     a vote of two-thirds of all the members elected to each house, as
1-45     provided by Section 39, Article III, Texas Constitution.  If this
1-46     Act does not receive the vote necessary for immediate effect, this
1-47     Act takes effect September 1, 2001.
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