By Villarreal                                         H.B. No. 2782
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to allowing counties to assess an application fee for tax
 1-3     abatements.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Chapter 312.002, Tax Code, is amended by adding
 1-6     Subsection (e) to read as follows:
 1-7           (a)  A taxing unit may not enter into a tax abatement
 1-8     agreement under this chapter and the governing body of a
 1-9     municipality or county may not designate an area as a reinvestment
1-10     zone unless the governing body has established guidelines and
1-11     criteria governing tax abatement agreements by the taxing unit and
1-12     a resolution stating that the taxing unit elects to become eligible
1-13     to participate in tax abatement.  The guidelines applicable to
1-14     property other than property described by Section 312.211(a) must
1-15     provide for the availability of tax abatement for both new
1-16     facilities and structures and for the expansion or modernization of
1-17     existing facilities and structures.
1-18           (b)  The governing body of a taxing unit may not enter into a
1-19     tax abatement agreement under this chapter unless it finds that the
1-20     terms of the agreement and the property subject to the agreement
1-21     meet the applicable guidelines and criteria adopted by the
1-22     governing body under this section.
1-23           (c)  The guidelines and criteria adopted under this section
 2-1     are effective for two years from the date adopted.  During that
 2-2     period, the guidelines and criteria may be amended or repealed only
 2-3     by a vote of three-fourths of the members of the governing body.
 2-4           (d)  The adoption of the guidelines and criteria by the
 2-5     governing body of a taxing unit does not:
 2-6                 (1)  limit the discretion of the governing body to
 2-7     decide whether to enter into a specific tax abatement agreement;
 2-8                 (2)  limit the discretion of the governing body to
 2-9     delegate to its employees the authority to determine whether or not
2-10     the governing body should consider a particular application or
2-11     request for tax abatement; or
2-12                 (3)  create any property, contract, or other legal
2-13     right in any person to have the governing body consider or grant a
2-14     specific application or request for tax abatement.
2-15           (e)  The governing body of a taxing unit may, in its
2-16     guidelines, impose a reasonable fee, not to exceed $1,000, in
2-17     connection with an application or request for tax abatement under
2-18     this chapter.
2-19           SECTION 2.  This Act takes effect September 1, 2001.