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A BILL TO BE ENTITLED
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AN ACT
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relating to ad valorem tax incentives for the recycling of water |
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used in oil or gas drilling or production. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 311.010(b), Tax Code, is amended to read |
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as follows: |
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(b) The board of directors of a reinvestment zone and the |
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governing body of the municipality or county that creates a |
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reinvestment zone may each enter into agreements as the board or the |
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governing body considers necessary or convenient to implement the |
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project plan and reinvestment zone financing plan and achieve their |
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purposes. An agreement may provide for the regulation or |
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restriction of the use of land by imposing conditions, |
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restrictions, or covenants that run with the land. An agreement may |
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during the term of the agreement dedicate, pledge, or otherwise |
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provide for the use of revenue in the tax increment fund to pay any |
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project costs that benefit the reinvestment zone, including project |
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costs relating to the cost of buildings, schools, or other |
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educational facilities owned by or on behalf of a school district, |
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community college district, or other political subdivision of this |
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state, railroad or transit facilities, facilities to recycle water |
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used in oil or gas drilling or production, affordable housing, the |
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remediation of conditions that contaminate public or private land |
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or buildings, the preservation of the facade of a private or public |
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building, the demolition of public or private buildings, or the |
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construction of a road, sidewalk, or other public infrastructure in |
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or out of the zone, including the cost of acquiring the real |
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property necessary for the construction of the road, sidewalk, or |
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other public infrastructure. An agreement may dedicate revenue |
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from the tax increment fund to pay the costs of providing affordable |
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housing or areas of public assembly in or out of the zone. |
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SECTION 2. Section 312.204(a), Tax Code, is amended to read |
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as follows: |
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(a) The governing body of a municipality eligible to enter |
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into tax abatement agreements under Section 312.002 may agree in |
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writing with the owner of taxable real property that is located in a |
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reinvestment zone, but that is not in an improvement project |
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financed by tax increment bonds, to exempt from taxation a portion |
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of the value of the real property or of tangible personal property |
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located on the real property, or both, for a period not to exceed 10 |
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years, on the condition that the owner of the property make specific |
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improvements or repairs to the property, including the construction |
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of a facility to recycle water used in oil or gas drilling or |
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production. The governing body of an eligible municipality may |
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agree in writing with the owner of a leasehold interest in |
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tax-exempt real property that is located in a reinvestment zone, |
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but that is not in an improvement project financed by tax increment |
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bonds, to exempt a portion of the value of property subject to ad |
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valorem taxation, including the leasehold interest, improvements, |
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or tangible personal property located on the real property, for a |
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period not to exceed 10 years, on the condition that the owner of |
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the leasehold interest make specific improvements or repairs to the |
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real property, including the construction of a facility to recycle |
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water used in oil or gas drilling or production. A tax abatement |
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agreement under this section is subject to the rights of holders of |
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outstanding bonds of the municipality. An agreement exempting |
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taxable real property or leasehold interests or improvements on |
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tax-exempt real property may provide for the exemption of such |
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taxable interests in each year covered by the agreement only to the |
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extent its value for that year exceeds its value for the year in |
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which the agreement is executed. An agreement exempting tangible |
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personal property located on taxable or tax-exempt real property |
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may provide for the exemption of tangible personal property located |
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on the real property in each year covered by the agreement other |
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than tangible personal property that was located on the real |
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property at any time before the period covered by the agreement with |
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the municipality, including inventory and supplies. In a |
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municipality that has a comprehensive zoning ordinance, an |
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improvement, repair, development, or redevelopment taking place |
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under an agreement under this section must conform to the |
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comprehensive zoning ordinance. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |