By:  Duncan                                            S.B. No. 986
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to allowing certain tax abatement agreements to provide
 1-3     for the recapture of lost ad valorem tax revenue if a property
 1-4     owner fails to comply with tax abatement agreement requirements
 1-5     regarding job creation or property value.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1.  Subsection (b), Section 312.205, Tax Code, is
 1-8     amended to read as follows:
 1-9           (b)  An agreement made under Section 312.204 or 312.211 may
1-10     include, at the option of the governing body of the municipality,
1-11     provisions for:
1-12                 (1)  improvements or repairs by the municipality to
1-13     streets, sidewalks, and utility services or facilities associated
1-14     with the property, except that the agreement may not provide for
1-15     lower charges or rates than are made for other services or
1-16     properties of a similar character;
1-17                 (2)  an economic feasibility study, including a
1-18     detailed list of estimated improvement costs, a description of the
1-19     methods of financing all estimated costs, and the time when related
1-20     costs or monetary obligations are to be incurred;
1-21                 (3)  a map showing existing uses and conditions of real
1-22     property in the reinvestment zone;
1-23                 (4)  a map showing proposed improvements and uses in
1-24     the reinvestment zone; [and]
1-25                 (5)  proposed changes of zoning ordinances, the master
 2-1     plan, the map, building codes, and city ordinances; and
 2-2                 (6)  the recapture of all or a portion of property tax
 2-3     revenue lost as a result of the agreement if the owner of the
 2-4     property fails to create all or a portion of the number of new jobs
 2-5     provided by the agreement or if the appraised value of the property
 2-6     subject to the agreement does not attain a value specified in the
 2-7     agreement, and payment of a penalty or interest, or both, on that
 2-8     recaptured property tax revenue.
 2-9           SECTION 2.  This Act takes effect immediately if it receives
2-10     a vote of two-thirds of all the members elected to each house, as
2-11     provided by Section 39, Article III, Texas Constitution.  If this
2-12     Act does not receive the vote necessary for immediate effect, this
2-13     Act takes effect September 1, 2001.