Enrolled Bill Summary

House Bill 2684 revises the Tax Increment Financing Act to amend and clarify the powers of a reinvestment zone board, including the scope of municipal powers that a board may exercise, and to address the powers and obligations of local governments that create, support, or are affected by such a zone. It allows a taxing unit other than a school district to offer a tax abatement to a property owner in a tax increment reinvestment zone, regardless of whether the taxing unit contributes to the tax increment fund. The zone board, however, must approve the abatement agreement, as must all other taxing units that are fund contributors. A minor change relates to tax increment support of affordable housing and is specific to reinvestment zones in a county with a population of 2.1 million or more. Other provisions make certain amendments to a zone project plan or financing plan, as well as contributions of tax increments from zone expansion areas, inapplicable to a participant school district unless the district gives its approval. The legislation amends the Government Code to revise the determination of taxable value in a reinvestment zone for purposes of the comptroller's study of school district property values. Amendments to the Texas Transportation Corporation Act affect local government corporations created under that act and concern their involvement in reinvestment zone management, their approval of bylaws and articles of incorporation, eligibility for and service as corporation directors, and other matters.