79R6802 MFC-D

By:  West, Royce                                                  S.B. No. 818



A BILL TO BE ENTITLED

AN ACT

relating to a requirement that an ad valorem tax abatement 
agreement provide for the recapture of lost ad valorem tax revenue 
if the property owner fails to provide a health benefit plan to the 
owner's employees and their dependents.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 312.205(a), Tax Code, is amended to read 
as follows:     
	(a)  An agreement made under Section 312.204 or 312.211 must:                  
		(1)  list the kind, number, and location of all 
proposed improvements of the property;
		(2)  provide access to and authorize inspection of the 
property by municipal employees to ensure that the improvements or 
repairs are made according to the specifications and conditions of 
the agreement;
		(3)  limit the uses of the property consistent with the 
general purpose of encouraging development or redevelopment of the 
zone during the period that property tax exemptions are in effect;
		(4)  provide for recapturing property tax revenue lost 
as a result of the agreement if the owner of the property fails to 
make the improvements or repairs as provided by the agreement;
		(5)  contain each term agreed to by the owner of the 
property;              
		(6)  require the owner of the property to certify 
annually to the governing body of each taxing unit that the owner is 
in compliance with each applicable term of the agreement; [and]
		(7)  provide that the governing body of the 
municipality may cancel or modify the agreement if the property 
owner fails to comply with the agreement; and
		(8)  provide for recapturing all or a specified portion 
of the property tax revenue lost as a result of the agreement if the 
owner of the property fails to provide to the persons employed on 
the property as full-time employees and the dependents of those 
employees a health benefit plan that provides at least the benefits 
provided to state employees in accordance with Chapter 1551, 
Insurance Code.
	SECTION 2.  This Act applies only to a tax abatement 
agreement entered into on or after the effective date of this Act.  
A tax abatement agreement entered into before the effective date of 
this Act is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.