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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation and operation of a development zone by and |
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the tax revenue received by The Woodlands Township; providing |
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authority to issue bonds; providing authority to impose assessments |
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and taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 7, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended by adding Subsection |
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(gg) to read as follows: |
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(gg) The district shall be treated the same in all respects |
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as an incorporated municipality for the purposes of Section |
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183.051, Tax Code. |
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SECTION 2. Section 11C, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended by amending |
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Subsections (b), (f), (l), (p), and (q) and adding Subsections |
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(b-1) and (b-2) to read as follows: |
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(b) The board, on its own motion or on receipt of a petition |
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signed by the owners of all real property in a defined area of the |
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district, by resolution may create, designate, describe, assign a |
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name to, and appoint the governing body for a development zone in |
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the district: |
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(1) to promote initial development or substantial |
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redevelopment of the area; or |
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(2) if the area to be designated as the development |
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zone is composed solely of one or more hotels, to undertake one or |
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more projects to provide supplemental advertising, promotion, or |
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business recruitment services for the area to increase hotel |
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activity[, if the board finds that the creation of the zone will |
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further the public purposes of: |
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[(1) the development and diversification of the |
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economy of the district and the state; |
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[(2) the elimination of unemployment or |
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underemployment in the district and the state; |
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[(3) the development or expansion of transportation or |
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commerce in the district and the state; or |
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[(4) the promotion and stimulation of business, |
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commercial, and economic activity in the district and the state]. |
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(b-1) The board may create a development zone under |
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Subsection (b) of this section if the board finds that the creation |
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of the zone will further the public purposes of: |
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(1) the development and diversification of the economy |
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of the district and the state; |
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(2) the elimination of unemployment or |
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underemployment in the district and the state; |
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(3) the development or expansion of transportation or |
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commerce in the district and the state; or |
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(4) the promotion and stimulation of business, |
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commercial, and economic activity in the district and the state. |
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(b-2) A development zone composed solely of one or more |
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hotels may fund or provide services for the purposes for which the |
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zone was created. |
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(f) A resolution designating an area as a development zone |
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must: |
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(1) describe the boundaries of the zone sufficiently |
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to identify with reasonable certainty the territory included; |
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(2) provide an effective date for the creation of the |
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zone; |
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(3) provide a date for termination of the zone; |
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(4) assign a name to the zone for identification; |
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(5) adopt a preliminary financing plan for the zone; |
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(6) establish a tax increment fund or project fund for |
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the zone; and |
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(7) appoint the governing body for the zone or |
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authorize the board to serve ex officio as the governing body of the |
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zone. |
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(l) The board and the governing body each may enter into an |
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agreement considered necessary or convenient to implement a project |
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plan and development zone financing plan and achieve their |
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purposes, including, for a development zone composed solely of one |
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or more hotels, an agreement with a convention and visitors bureau |
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within or adjacent to the district. An agreement may provide for |
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the regulation or restriction of the use of land by imposing |
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conditions, restrictions, or covenants that run with the land. An |
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agreement may dedicate revenue from the tax increment fund or |
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project fund to pay project costs and may provide that a restriction |
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adopted by the governing body continues in effect after the |
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termination of the development zone. The district and the |
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development zone may agree that the district will provide |
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administration, management, investment, accounting, and other |
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services for the zone in consideration for the benefits received by |
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the district through the implementation of the project plan for the |
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zone. |
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(p) Sections 311.002 and 311.014 through 311.017, Tax Code, |
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apply to the district, except that for purposes of this subsection: |
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(1) a reference in those sections to a municipality |
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means the district and the development zone; |
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(2) a reference in those sections to an ordinance |
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means an order; |
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(3) a reference in those sections to a reinvestment |
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zone means a development zone; |
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(4) a reference in those sections to an agreement made |
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under Subsection (b), Section 311.010, Tax Code, means an agreement |
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made under Subsection (l) of this section; |
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(5) "development" means initial development; |
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(6) "redevelopment" means substantial redevelopment; |
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(7) Section 311.016, Tax Code, applies only if ad |
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valorem taxes are used, in whole or in part, in payment of project |
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costs of a development zone; [and] |
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(8) a development zone created without a duration or |
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date of termination may be dissolved by a two-thirds vote of the |
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board of directors of the district or of the governing body of a |
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municipality or other form of local government, other than the |
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development zone, succeeding to the principal assets, powers, |
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functions, and liabilities of the district, but only if: |
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(A) the development zone has no outstanding |
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indebtedness or other obligations; or |
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(B) the assets, powers, functions, and |
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liabilities, and any outstanding indebtedness or obligations, of |
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the development zone are expressly assumed by the district or the |
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succeeding municipality or local government; and |
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(9) a development zone composed solely of one or more |
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hotels must be dissolved by the board of directors of the district |
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on receipt of a petition for dissolution of the development zone |
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signed by the owners of at least 60 percent of the assessed value of |
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the real property in the development zone and the district must |
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expressly assume the assets, powers, functions, and liabilities, |
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and any outstanding indebtedness or obligations, of the development |
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zone. |
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(q) Upon the creation and organization of a development zone |
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over the territory of one or more existing development zones, and |
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upon the imposition or assessment by the governing body of an ad |
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valorem tax or limited sales and use tax for the development zone, |
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any [the] existing development zones that impose or assess an ad |
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valorem or sales and use tax are dissolved and abolished and all |
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assets, properties, indebtedness, obligations, and liabilities of |
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the existing development zones transfer to and are assumed by the |
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newly created and organized development zone. |
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SECTION 3. Section 7(gg), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, as added by this Act, applies |
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only to taxes remitted to the comptroller of public accounts for a |
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calendar quarter beginning on or after October 1, 2023. The |
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comptroller shall make the first transfer required by that |
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subsection not later than January 31, 2024. |
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SECTION 4. (a) The legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time. |
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(d) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act have been |
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fulfilled and accomplished. |
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SECTION 5. This Act takes effect September 1, 2023. |
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