| 1 | 1 | | 86R11957 JES-D |
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| 2 | 2 | | By: Cole H.B. No. 1977 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to a requirement that a fiscal impact statement be |
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| 8 | 8 | | provided before a taxing unit may enter into a tax abatement |
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| 9 | 9 | | agreement. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter A, Chapter 312, Tax Code, is amended |
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| 12 | 12 | | by adding Section 312.008 to read as follows: |
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| 13 | 13 | | Sec. 312.008. FISCAL IMPACT STATEMENT. (a) Before |
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| 14 | 14 | | entering into a tax abatement agreement under this chapter, a |
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| 15 | 15 | | taxing unit shall prepare a fiscal impact statement that, |
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| 16 | 16 | | specifically and in detail, assesses the direct economic impact |
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| 17 | 17 | | that the tax abatement agreement would have on schools, |
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| 18 | 18 | | transportation, and public safety in the county or municipality in |
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| 19 | 19 | | which the reinvestment zone would be located under the tax |
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| 20 | 20 | | abatement agreement. |
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| 21 | 21 | | (b) The comptroller shall adopt rules establishing the |
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| 22 | 22 | | minimum requirements for a fiscal impact statement under this |
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| 23 | 23 | | section. The rules must require a taxing unit to provide the |
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| 24 | 24 | | statement within a reasonable amount of time before the taxing unit |
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| 25 | 25 | | enters into the applicable tax abatement agreement and in a manner |
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| 26 | 26 | | that allows members of the general public to review the statement. |
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| 27 | 27 | | SECTION 2. Not later than January 1, 2020, the comptroller |
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| 28 | 28 | | of public accounts shall adopt rules necessary to implement Section |
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| 29 | 29 | | 312.008, Tax Code, as added by this Act. |
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| 30 | 30 | | SECTION 3. The change in law made by this Act applies only |
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| 31 | 31 | | to a tax abatement agreement entered into on or after January 1, |
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| 32 | 32 | | 2020. |
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| 33 | 33 | | SECTION 4. This Act takes effect September 1, 2019. |
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