Texas 2011 - 82nd Regular

Texas House Bill HB3254 Compare Versions

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1	1	82R3885 SMH-F
2	2	By: Strama H.B. No. 3254
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of renewable energy reinvestment zones and
8	8	the abatement of ad valorem taxes on property of a renewable energy
9	9	company located in such a zone.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 3, Tax Code, is amended by
12	12	adding Chapter 314 to read as follows:
13	13	CHAPTER 314. RENEWABLE ENERGY REINVESTMENT ZONES
14	14	Sec. 314.001. SHORT TITLE. This chapter may be cited as the
15	15	Renewable Energy Reinvestment Zone Act.
16	16	Sec. 314.002. APPLICABILITY. The provisions of this
17	17	chapter applicable to a municipality apply only to a municipality
18	18	that:
19	19	(1) has a population of at least 45,000 but not more
20	20	than 60,000;
21	21	(2) is located in a county with a population of at
22	22	least one million; and
23	23	(3) does not contain within its corporate limits:
24	24	(A) more than two school districts that are
25	25	categorized as category II school districts under Section 313.022;
26	26	or
27	27	(B) any school districts to which Subchapter C,
28	28	Chapter 313, applies.
29	29	Sec. 314.003. DEFINITION. In this chapter, "renewable
30	30	energy company" means a business organization that manufactures,
31	31	assembles, sells, maintains, or conducts research on renewable
32	32	energy and renewable energy efficient products, including:
33	33	(A) solar energy;
34	34	(B) wind energy;
35	35	(C) biomass energy;
36	36	(D) geothermal energy;
37	37	(E) battery technology;
38	38	(F) electric vehicles;
39	39	(G) lighting using light-emitting diodes;
40	40	(H) fuel cells;
41	41	(I) energy generated from agricultural sources;
42	42	(J) nuclear energy;
43	43	(K) clean coal technology; and
44	44	(L) water-saving devices.
45	45	Sec. 314.004. ELIGIBILITY OF MUNICIPALITY TO PARTICIPATE IN
46	46	TAX ABATEMENT. (a) A municipality may not enter into a tax
47	47	abatement agreement under this chapter and the governing body of a
48	48	municipality may not designate an area as a renewable energy
49	49	reinvestment zone unless the governing body adopts a resolution
50	50	stating that the municipality elects to become eligible to
51	51	participate in tax abatement and establishes guidelines and
52	52	criteria governing tax abatement agreements by the municipality.
53	53	The guidelines and criteria applicable to property must provide for
54	54	the availability of tax abatement only for new facilities or
55	55	structures.
56	56	(b) The governing body of a municipality may not enter into
57	57	a tax abatement agreement under this chapter unless it finds that
58	58	the terms of the agreement and the property subject to the agreement
59	59	meet the applicable guidelines and criteria adopted by the
60	60	governing body under this section.
61	61	(c) The guidelines and criteria adopted under this section
62	62	are effective for two years from the date adopted. During that
63	63	period, the guidelines and criteria may be amended or repealed only
64	64	by a vote of three-fourths of the members of the governing body.
65	65	(d) The adoption of the guidelines and criteria by the
66	66	governing body of a municipality does not:
67	67	(1) limit the discretion of the governing body to
68	68	decide whether to enter into a specific tax abatement agreement;
69	69	(2) limit the discretion of the governing body to
70	70	delegate to its employees the authority to determine whether or not
71	71	the governing body should consider a particular application or
72	72	request for tax abatement; or
73	73	(3) create any property, contract, or other legal
74	74	right in any person to have the governing body consider or grant a
75	75	specific application or request for tax abatement.
76	76	Sec. 314.005. DESIGNATION OF ZONE. (a) The governing body
77	77	of a municipality by ordinance may designate as a renewable energy
78	78	reinvestment zone an area in the taxing jurisdiction or
79	79	extraterritorial jurisdiction of the municipality that the
80	80	governing body finds satisfies the requirements of Section 314.006.
81	81	(b) The ordinance must describe the boundaries of the zone.
82	82	(c) The governing body may not adopt an ordinance
83	83	designating an area as a renewable energy reinvestment zone until
84	84	the governing body has held a public hearing on the designation and
85	85	has found that the improvements sought are feasible and practical
86	86	and would be a benefit to the land to be included in the zone and to
87	87	the municipality after the expiration of an agreement entered into
88	88	under Section 314.008. At the hearing, interested persons are
89	89	entitled to speak and present evidence for or against the
90	90	designation. Not later than the seventh day before the date of the
91	91	hearing, notice of the hearing must be:
92	92	(1) published in a newspaper having general
93	93	circulation in the municipality; and
94	94	(2) delivered in writing to the presiding officer of
95	95	the governing body of each county and school district that includes
96	96	in its boundaries real property that is to be included in the
97	97	proposed renewable energy reinvestment zone.
98	98	(d) A notice made under Subsection (c)(2) is presumed
99	99	delivered when placed in the mail postage prepaid and properly
100	100	addressed to the appropriate presiding officer. A notice properly
101	101	addressed and sent by registered or certified mail for which a
102	102	return receipt is received by the sender is considered to have been
103	103	delivered to the addressee.
104	104	Sec. 314.006. CRITERIA FOR RENEWABLE ENERGY REINVESTMENT
105	105	ZONE. To be designated as a renewable energy reinvestment zone
106	106	under this chapter, an area must meet the following requirements:
107	107	(1) the area must be at least 100 acres in size;
108	108	(2) at the time of the designation of the area as a
109	109	zone, at least 75 percent of the land in the area must be owned by
110	110	the municipality designating the area or by a municipal development
111	111	corporation created under Chapter 379A, Local Government Code; and
112	112	(3) the area must be zoned for commercial purposes.
113	113	Sec. 314.007. EXPIRATION OF REINVESTMENT ZONE. The
114	114	designation of a renewable energy reinvestment zone for tax
115	115	abatement expires five years after the date of the designation and
116	116	may be renewed for periods not to exceed five years. The expiration
117	117	of the designation does not affect an existing tax abatement
118	118	agreement made under this chapter.
119	119	Sec. 314.008. MUNICIPAL TAX ABATEMENT AGREEMENT. (a) The
120	120	governing body of a municipality eligible to enter into tax
121	121	abatement agreements under Section 314.004 may agree in writing
122	122	with a renewable energy company that owns taxable real property
123	123	that is located in a renewable energy reinvestment zone, but that is
124	124	not located in an improvement project financed by tax increment
125	125	bonds, to exempt from taxation 50 percent of the value of the real
126	126	property and of tangible personal property located on the real
127	127	property for a period of 15 years, on the condition that the company
128	128	construct a facility on the property to be used in connection with
129	129	the company's operations as specified by the agreement. The
130	130	governing body of an eligible municipality may agree in writing
131	131	with a renewable energy company that owns a leasehold interest in
132	132	tax-exempt real property that is located in a renewable energy
133	133	reinvestment zone, but that is not located in an improvement
134	134	project financed by tax increment bonds, to exempt 50 percent of the
135	135	value of property subject to ad valorem taxation, including the
136	136	leasehold interest, improvements, and tangible personal property
137	137	located on the real property, for a period of 15 years, on the
138	138	condition that the company construct a facility on the property to
139	139	be used in connection with the company's operations as specified by
140	140	the agreement. A tax abatement agreement under this section is
141	141	subject to the rights of holders of outstanding bonds of the
142	142	municipality. In a municipality that has a comprehensive zoning
143	143	ordinance, an improvement, development, or redevelopment taking
144	144	place under an agreement under this section must conform to the
145	145	comprehensive zoning ordinance.
146	146	(b) The property subject to an agreement made under this
147	147	section may be located in the extraterritorial jurisdiction of the
148	148	municipality. In that event, the agreement applies to taxes of the
149	149	municipality if the municipality annexes the property during the
150	150	period specified in the agreement.
151	151	(c) Except as otherwise provided by this subsection,
152	152	property that is in a renewable energy reinvestment zone and that is
153	153	owned or leased by a person who is a member of the governing body of
154	154	the municipality or a member of a zoning or planning board or
155	155	commission of the municipality is excluded from property tax
156	156	abatement. Property owned or leased by a person that is subject to
157	157	a tax abatement agreement in effect when the person becomes a member
158	158	of the governing body or of the zoning or planning board or
159	159	commission does not cease to be eligible for property tax abatement
160	160	under that agreement because of the person's membership on the
161	161	governing body, board, or commission.
162	162	Sec. 314.009. NOTICE OF TAX ABATEMENT AGREEMENT TO COUNTIES
163	163	AND SCHOOL DISTRICTS. (a) Not later than the seventh day before the
164	164	date on which a municipality enters into an agreement under Section
165	165	314.008, the governing body of the municipality or a designated
166	166	officer or employee of the municipality shall deliver to the
167	167	presiding officer of the governing body of each county and school
168	168	district in which the property to be subject to the agreement is
169	169	located a written notice that the municipality intends to enter
170	170	into the agreement. The notice must include a copy of the proposed
171	171	agreement.
172	172	(b) A notice is presumed delivered when placed in the mail
173	173	postage paid and properly addressed to the appropriate presiding
174	174	officer. A notice properly addressed and sent by registered or
175	175	certified mail for which a return receipt is received by the sender
176	176	is considered to have been delivered to the addressee.
177	177	(c) Failure to deliver the notice does not affect the
178	178	validity of the agreement.
179	179	Sec. 314.010. SPECIFIC TERMS OF TAX ABATEMENT AGREEMENT.
180	180	An agreement made under Section 314.008 must:
181	181	(1) list the kind, number, and location of all
182	182	proposed improvements of the property;
183	183	(2) provide access to and authorize inspection of the
184	184	property by municipal employees and by employees of each county and
185	185	school district that approves the agreement to ensure that the
186	186	improvements are made according to the specifications and
187	187	conditions of the agreement;
188	188	(3) limit the uses of the property consistent with the
189	189	general purpose of encouraging development or redevelopment of the
190	190	renewable energy reinvestment zone during the period that property
191	191	tax exemptions are in effect;
192	192	(4) provide for recapturing property tax revenue lost
193	193	as a result of the agreement if the owner of the property fails to
194	194	make the improvements as provided by the agreement;
195	195	(5) contain each term agreed to by the owner of the
196	196	property;
197	197	(6) require the owner of the property to certify
198	198	annually to the governing body of the municipality and each county
199	199	and school district that approves the agreement that the owner is in
200	200	compliance with each applicable term of the agreement; and
201	201	(7) provide that the governing body of the
202	202	municipality may cancel or modify the agreement if the property
203	203	owner fails to comply with the agreement.
204	204	Sec. 314.011. APPROVAL OF AGREEMENT BY GOVERNING BODY OF
205	205	MUNICIPALITY. (a) To be effective, an agreement made under this
206	206	chapter by a municipality must be approved by the affirmative vote
207	207	of a majority of the members of the governing body of the
208	208	municipality at a regularly scheduled meeting of the governing
209	209	body.
210	210	(b) On approval by the governing body, an agreement may be
211	211	executed in the same manner as other contracts made by the
212	212	municipality.
213	213	Sec. 314.012. MODIFICATION OR TERMINATION OF AGREEMENT.
214	214	(a) At any time before the expiration of an agreement made under
215	215	this chapter, the agreement may be modified by the parties to the
216	216	agreement to include other provisions that could have been included
217	217	in the original agreement or to delete provisions that were not
218	218	necessary to the original agreement. The modification must be made
219	219	by the same procedure by which the original agreement was approved
220	220	and executed. The original agreement may not be modified to extend
221	221	beyond 15 years from the date of the original agreement.
222	222	(b) An agreement made under this chapter may be terminated
223	223	by the mutual consent of the parties in the same manner that the
224	224	agreement was approved and executed.
225	225	Sec. 314.013. TAX ABATEMENT BY COUNTY AND SCHOOL DISTRICT.
226	226	(a) If municipal property taxes on property located in the taxing
227	227	jurisdiction of a municipality are abated under an agreement under
228	228	Section 314.008, the agreement also applies to the taxation of the
229	229	property by a county or school district in which the property is
230	230	located if the governing body of the county or school district
231	231	approves the agreement by the affirmative vote of a majority of the
232	232	members of the governing body at a regularly scheduled meeting of
233	233	the governing body.
234	234	(b) A county or school district may not approve a municipal
235	235	tax abatement agreement under this chapter unless the governing
236	236	body of the county or school district adopts a resolution stating
237	237	that the county or school district elects to become eligible to
238	238	participate in tax abatement and establishes guidelines and
239	239	criteria governing the approval by the county or school district of
240	240	municipal tax abatement agreements. The provisions of Section
241	241	314.004 governing guidelines and criteria for the entry by a
242	242	municipality into a tax abatement agreement apply to guidelines and
243	243	criteria established by a county or school district for approval of
244	244	a municipal tax abatement agreement to the extent those provisions
245	245	can be made applicable.
246	246	SECTION 2. Section 11.28, Tax Code, is amended to read as
247	247	follows:
248	248	Sec. 11.28. PROPERTY EXEMPTED FROM [CITY] TAXATION BY
249	249	AGREEMENT. (a) The owner of property to which an agreement made
250	250	under Chapter 312 [the Property Redevelopment and Tax Abatement Act
251	251	(Chapter 312 of this code)] applies is entitled to exemption from
252	252	taxation by an incorporated city or town or other taxing unit of all
253	253	or part of the value of the property as provided by the agreement.
254	254	(b) The owner of property to which an agreement made by an
255	255	incorporated city or town under Chapter 314 applies is entitled to
256	256	exemption from taxation by the incorporated city or town and from
257	257	taxation by a county or school district that has approved the
258	258	agreement of part of the value of the property as provided by the
259	259	agreement.
260	260	SECTION 3. This Act takes effect immediately if it receives
261	261	a vote of two-thirds of all the members elected to each house, as
262	262	provided by Section 39, Article III, Texas Constitution. If this
263	263	Act does not receive the vote necessary for immediate effect, this
264	264	Act takes effect September 1, 2011.