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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain municipalities to designate an |
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area as a homestead preservation district and reinvestment zone and |
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the use of tax increment revenue in that area. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 373A.052(b), Local Government Code, is |
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amended to read as follows: |
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(b) To be designated as a district within a municipality |
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described by Section 373A.003(b) under this subchapter, an area |
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must be composed of census tracts forming a spatially compact area |
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[contiguous to a central business district and] with: |
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(1) fewer than 75,000 residents; and |
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(2) a median family income that is less than 70 percent |
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of the area median family income, adjusted for household size, as |
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determined annually by the United States Department of Housing and |
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Urban Development [$30,000 according to the last decennial census; |
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and |
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[(3) an overall poverty rate that is at least two times |
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the poverty rate for the entire municipality]. |
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SECTION 2. Section 373A.1541, Local Government Code, is |
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amended to read as follows: |
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Sec. 373A.1541. TAX INCREMENT FINANCING AND ABATEMENT. (a) |
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Designation of an area as a homestead preservation reinvestment |
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zone is also designation of the area as a reinvestment zone for tax |
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increment financing under Chapter 311, Tax Code. |
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(b) Notwithstanding Section 311.014(d), Tax Code, or any |
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other law, and subject to any agreement with bondholders, revenue |
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in a tax increment fund other than a fund established under this |
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subchapter may be used for projects under this subchapter if: |
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(1) the revenue was collected with respect to: |
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(A) a reinvestment zone that was designated under |
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other law before September 1, 2021; and |
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(B) an area designated as a homestead |
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preservation reinvestment zone under this subchapter; and |
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(2) all project costs, all tax increment bonds or |
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notes issued for the reinvestment zone for which the revenue was |
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collected, and any other obligations incurred for that zone have |
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been paid. |
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SECTION 3. This Act takes effect September 1, 2021. |