Enrolled Bill Summary

Senate Bill 833	Senate Author:  Barrientos
Effective: Vetoed	House Sponsor:  Dukes

            Senate Bill 833 amends the Tax Code to require a rail transportation project plan prepared by the board of directors of a reinvestment zone that is designated on or after January 1, 2005, in a county with a population between 800,000 and 1.4 million to contain a residential component that includes the construction of affordable housing in the zone and a requirement that at least 25 percent of the tax increment of the zone be used to acquire necessary real property and construct affordable housing with the goal of achieving a specified mix of multifamily and single-family dwellings.

            Reasons Given for Veto: "Senate Bill No. 833 would require that Travis County, should it create a reinvestment zone as part of developing a new commuter rail project, devote a portion of the tax increment finances created within the zone for building affordable housing. I respect the intent of this legislation. My administration strongly supports affordable housing and efforts to expand housing opportunities for working Texans.

            "However, local governments use tax increment financing to promote economic growth and redevelopment in designated areas. The success of these zones depends on local government officials and citizens setting priorities for the zone, as well as strong local management to see that the zone's intended purposes are met. These zones are intended to finance and implement complex economic development strategies to benefit an entire community, and certainly few projects will be as complex as those associated with a new commuter rail project in Travis County. For this reason, I oppose setting in state law the priorities of a reinvestment zone in Travis County.

            "Moreover, as the Texas economy continues to grow, our communities are meeting the challenges of expanding their transportation infrastructure. That is why I am opposed to diverting limited funding for critical transportation projects to any other purpose. While the reinvestment zone envisioned in Senate Bill No. 833 would not directly fund rail construction in Travis County, the zone is an integral part of making the rail line successful and promoting the economic vitality of the adjacent area. I am confident that officials and concerned citizens in Travis County will make wise decisions as to how best to use tax increment financing associated with any new commuter rail project, and meet the needs of all of the county's residents."