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A BILL TO BE ENTITLED
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AN ACT
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relating to a restriction on the use of money in the tax increment |
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fund for a tax increment financing reinvestment zone created by |
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certain home-rule municipalities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 311, Tax Code, is amended by adding |
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Section 311.0088 to read as follows: |
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Sec. 311.0088. RESTRICTION ON USE OF TAX INCREMENT IN |
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CERTAIN REINVESTMENT ZONES. (a) This section applies only to a |
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development agreement, project plan, or reinvestment zone |
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financing plan for a reinvestment zone designated by a home-rule |
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municipality that includes property that: |
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(1) before 2003, was annexed by the municipality for |
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limited purposes; |
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(2) was the subject of a petition for annexation |
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signed by a majority of the owners of the property and filed with |
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the municipality under former Section 43.028 or 43.052(h)(2), Local |
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Government Code; and |
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(3) by ordinance adopted after September 1, 2005, was |
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annexed by the municipality for full purposes. |
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(b) Notwithstanding any other provision of this chapter, a |
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development agreement, project plan, or reinvestment zone |
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financing plan for a reinvestment zone may not include a provision |
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requiring money in the tax increment fund established for the |
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reinvestment zone to be paid to the municipality that designated |
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the zone to: |
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(1) pay the costs of services that will be provided in |
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the zone by the municipality; or |
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(2) reimburse the municipality for the costs of |
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services that were previously provided in the zone by the |
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municipality. |
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(c) If a development agreement, project plan, or |
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reinvestment zone financing plan contains a provision that |
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conflicts with this section, the provision is void and the |
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remaining provisions of the agreement, project plan, or |
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reinvestment zone financing plan are enforceable. |
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(d) A municipality that received a disbursement from a tax |
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increment fund under a provision of a development agreement, |
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project plan, or reinvestment zone financing plan that violates |
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this section shall reimburse the fund in the amount of the |
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disbursement received by the municipality. |
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(e) A party to a development agreement, project plan, or |
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reinvestment zone financing plan may file an action in the district |
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court of the county in which the development agreement, project |
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plan, or reinvestment zone financing plan is performable to have a |
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provision of the agreement or plan that violates this section |
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declared void and to enforce the remaining provisions of the |
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agreement or plan by mandamus or injunctive relief. A party who |
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prevails in an action under this subsection shall be awarded |
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reasonable attorney's fees and court costs. Sovereign immunity to |
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suit and liability is waived and abolished to the extent of |
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liability created by this subsection. |
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SECTION 2. Section 311.0088, Tax Code, as added by this Act, |
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applies to a development agreement, project plan, or reinvestment |
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zone financing plan to which that section applies regardless of the |
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date on which the agreement or plan was approved or adopted by the |
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parties to the agreement or plan. |
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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, 2021. |