By Van de Putte                                        S.B. No. 944
         77R6917 JMG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the contracting authority of certain hospital districts
 1-3     to enter into or modify a tax abatement agreement.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter E, Chapter 281, Health and Safety Code,
 1-6     is amended by adding Section 281.095 to read as follows:
 1-7           Sec. 281.095.  PROHIBITION AGAINST PARTICIPATION IN TAX
 1-8     ABATEMENT AGREEMENT:  BEXAR COUNTY HOSPITAL DISTRICT AND HARRIS
 1-9     COUNTY HOSPITAL DISTRICT. (a)  In this section, "district" means
1-10     the Bexar County Hospital District and the Harris County Hospital
1-11     District.
1-12           (b)  The district may not enter into a contract or agreement
1-13     to participate in a tax abatement agreement under Section 311.0125,
1-14     Tax Code, or Chapter 312, Tax Code.  This subsection does not
1-15     affect the validity of a tax abatement agreement entered into by
1-16     the district before September 1, 2001.
1-17           (c)  A tax abatement agreement entered into before September
1-18     1, 2001, may not be amended on or after September 1, 2001, to:
1-19                 (1)  increase the amount of the tax abatement of the
1-20     district; or
1-21                 (2)  increase the time during which the district may
1-22     participate in the tax abatement agreement.
1-23           (d)  An agreement entered into by the district under Section
1-24     311.0125, Tax Code, or Chapter 312, Tax Code, before September 1,
 2-1     2001, may not be amended on or after September 1, 2001, to include
 2-2     any of the conditions prohibited by Subsection (c).
 2-3           SECTION 2.  This Act takes effect September 1, 2001.