78R9562 KEG-F

By:  Chavez                                                       H.B. No. 3596



A BILL TO BE ENTITLED

AN ACT

relating to the contracting authority of certain hospital districts 
to enter into or modify a tax abatement agreement.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 281, Health and Safety 
Code, is amended by adding Section 281.096 to read as follows:
	Sec. 281.096.  PROHIBITION AGAINST PARTICIPATION IN TAX 
ABATEMENT AGREEMENT:  EL PASO COUNTY HOSPITAL DISTRICT. (a)  In this 
section, "district" means the El Paso County Hospital District.
	(b)  The district may not enter into a contract or agreement 
to participate in a tax abatement agreement under Section 311.0125, 
Tax Code, or Chapter 312, Tax Code.  This subsection does not affect 
the validity of a tax abatement agreement entered into by the 
district before September 1, 2003.
	(c)  A tax abatement agreement entered into before September 
1, 2003, may not be amended on or after September 1, 2003, to:
		(1)  increase the amount of the tax abatement of the 
district; or    
		(2)  increase the time during which the district may 
participate in the tax abatement agreement.
	SECTION 2.  This Act takes effect September 1, 2003.