1-1     By:  Duncan                                            S.B. No. 986
 1-2           (In the Senate - Filed February 28, 2001; March 1, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 19, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 6, Nays 0;
 1-6     April 19, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 986                  By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to allowing certain tax abatement agreements to provide
1-11     for the recapture of lost ad valorem tax revenue if a property
1-12     owner fails to comply with tax abatement agreement requirements
1-13     regarding job creation or property value.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  Subsection (b), Section 312.205, Tax Code, is
1-16     amended to read as follows:
1-17           (b)  An agreement made under Section 312.204 or 312.211 may
1-18     include, at the option of the governing body of the municipality,
1-19     provisions for:
1-20                 (1)  improvements or repairs by the municipality to
1-21     streets, sidewalks, and utility services or facilities associated
1-22     with the property, except that the agreement may not provide for
1-23     lower charges or rates than are made for other services or
1-24     properties of a similar character;
1-25                 (2)  an economic feasibility study, including a
1-26     detailed list of estimated improvement costs, a description of the
1-27     methods of financing all estimated costs, and the time when related
1-28     costs or monetary obligations are to be incurred;
1-29                 (3)  a map showing existing uses and conditions of real
1-30     property in the reinvestment zone;
1-31                 (4)  a map showing proposed improvements and uses in
1-32     the reinvestment zone; [and]
1-33                 (5)  proposed changes of zoning ordinances, the master
1-34     plan, the map, building codes, and city ordinances; and
1-35                 (6)  the recapture of all or a portion of property tax
1-36     revenue lost as a result of the agreement if the owner of the
1-37     property fails to create all or a portion of the number of new jobs
1-38     provided by the agreement or if the appraised value of the property
1-39     subject to the agreement does not attain a value specified in the
1-40     agreement, and payment of a penalty or interest, or both, on that
1-41     recaptured property tax revenue.
1-42           SECTION 2.  This Act takes effect immediately if it receives
1-43     a vote of two-thirds of all the members elected to each house, as
1-44     provided by Section 39, Article III, Texas Constitution.  If this
1-45     Act does not receive the vote necessary for immediate effect, this
1-46     Act takes effect September 1, 2001.
1-47                                  * * * * *