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 or other agreement
 1-6     requirements.
 1-7           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-8           SECTION 1.  Subsection (b), Section 312.205, Tax Code, is
 1-9     amended to read as follows:
1-10           (b)  An agreement made under Section 312.204 or 312.211 may
1-11     include, at the option of the governing body of the municipality,
1-12     provisions for:
1-13                 (1)  improvements or repairs by the municipality to
1-14     streets, sidewalks, and utility services or facilities associated
1-15     with the property, except that the agreement may not provide for
1-16     lower charges or rates than are made for other services or
1-17     properties of a similar character;
1-18                 (2)  an economic feasibility study, including a
1-19     detailed list of estimated improvement costs, a description of the
1-20     methods of financing all estimated costs, and the time when related
1-21     costs or monetary obligations are to be incurred;
1-22                 (3)  a map showing existing uses and conditions of real
1-23     property in the reinvestment zone;
1-24                 (4)  a map showing proposed improvements and uses in
1-25     the reinvestment zone; [and]
 2-1                 (5)  proposed changes of zoning ordinances, the master
 2-2     plan, the map, building codes, and city ordinances; and
 2-3                 (6)  the recapture of all or a portion of property tax
 2-4     revenue lost as a result of the agreement if the owner of the
 2-5     property fails to create all or a portion of the number of new jobs
 2-6     provided by the agreement, if the appraised value of the property
 2-7     subject to the agreement does not attain a value specified in the
 2-8     agreement, or if the owner fails to meet any other performance
 2-9     criteria provided by the agreement, and payment of a penalty or
2-10     interest, or both, on that recaptured property tax revenue.
2-11           SECTION 2.  This Act takes effect immediately if it receives
2-12     a vote of two-thirds of all the members elected to each house, as
2-13     provided by Section 39, Article III, Texas Constitution.  If this
2-14     Act does not receive the vote necessary for immediate effect, this
2-15     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 986 passed the Senate on
         May 1, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting; and that the Senate concurred in House amendment on
         May 24, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 986 passed the House, with
         amendment, on May 17, 2001, by the following vote:  Yeas 140,
         Nays 0, two present not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor