78R7828 ATP-D

By:  West                                                         H.B. No. 3075



A BILL TO BE ENTITLED

AN ACT

relating to local agreements to allow certain development 
corporations and taxing units to invest in and receive tax revenues 
from certain regional economic development projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4A, Development Corporation Act of 1979 
(Article 5190.6, Vernon's Texas Civil Statutes), is amended by 
adding Subsections (u) and (v) to read as follows:
	(u)(1)  In this subsection:                                             
			(A)  "Base taxable value" means the taxable value 
of property located in the defined area of a project as of January 1 
of the year in which the agreement is entered into under this 
subsection.
			(B)  "Corresponding taxing unit" means another 
taxing unit of the same type of political subdivision as a taxing 
unit that enters into an agreement under this subsection.
			(C)  "Taxing unit" has the meaning assigned by 
Section 1.04, Tax Code.
		(2)  Before entering into an agreement under this 
subsection, the corporation undertaking the project must designate 
a defined area that includes the territory where the project is to 
be located.
		(3)  A taxing unit other than a school district may 
enter into an agreement with a corporation created under this 
section to invest in a project that is undertaken by the corporation 
and that is not located in the territory of the taxing unit.  A 
corporation may enter into an agreement under this subsection with 
more than one taxing unit.
		(4)  An agreement entered into under this subsection 
shall state the base taxable value of the property in the defined 
area of the project.
		(5)  The agreement may provide that the taxing unit is 
entitled to receive from the corporation, in exchange for the 
investment, an amount equal to a specified percentage of the tax 
revenue from taxes imposed by the corresponding taxing unit that 
taxes property located in the defined area of the project on the 
taxable value of the property in the defined area that exceeds the 
base taxable value, for so long as the corresponding taxing unit 
imposes taxes on that property.
		(6)  If a corporation enters into an agreement under 
this subsection, the corporation shall enter into an agreement with 
a corresponding taxing unit that taxes property located in the 
defined area of the project to recover the amount paid by the 
corporation to a taxing unit as provided by Subdivision (5).
	(v)(1)  In this subsection, "base taxable value" has the 
meaning assigned by Subsection (u).
		(2)  Before entering into an agreement under this 
subsection, the corporation undertaking the project must designate 
a defined area that includes the territory where the project is to 
be located.
		(3)  A corporation created under this section may enter 
into an agreement with another corporation created under this 
section to invest in a project undertaken by the other corporation.
		(4)  An agreement entered into under this subsection 
shall state the base taxable value of the property in the defined 
area that is taxable by the city that created the corporation 
undertaking the project.
		(5)  The agreement may provide that the corporation 
making the investment is entitled to receive from the city that 
created the corporation undertaking the project, in exchange for 
the investment, an amount equal to a specified percentage of the tax 
revenue from taxes imposed by the city on the taxable value of the 
defined area of the project that exceeds the base taxable value, for 
so long as the city imposes taxes on that property.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.