Enrolled Bill Summary

House Bill 563	House Author:  Pickett et al.
Effective:  9-1-11	Senate Sponsor:  Nichols

            House Bill 563 amends Transportation Code provisions relating to the purposes and designation of a transportation reinvestment zone.  The bill authorizes a municipality or county to establish a zone for any transportation project and sets out certain requirements if a project is subject to oversight by the Texas Department of Transportation or is on the state highway system or located in the state highway right-of-way.  The bill prohibits a municipality or county that designates a zone from being penalized with a reduction in traditional transportation funding, and it authorizes a portion of the tax increment generated from certain sales and use taxes attributable to a zone to be used for a pass-through toll project if certain procedures are followed.  The bill authorizes a municipality or county to contract with an entity to develop a transportation project in a zone and, among other provisions, authorizes a county to assess all or part of the cost of a project against property within the zone and to pledge all or part of the revenue from the assessment to that entity.  The bill authorizes the boundaries of a zone to be amended at any time, with certain exceptions relating to whether revenue from a property tax assessment or tax increment account has been pledged to secure bonds for a transportation project in the zone.