75R12464 JD-F
By Coleman H.B. No. 3083
Substitute the following for H.B. No. 3083:
By Oliveira C.S.H.B. No. 3083
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Tax Increment Financing Act and to the creation of
1-3 a public improvement district.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 311.0031, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 311.0031. ENTERPRISE ZONE; PUBLIC IMPROVEMENT DISTRICT.
1-8 (a) Designation of an area as an enterprise zone under Chapter
1-9 2303, Government Code constitutes designation of the area as a
1-10 reinvestment zone under this chapter without further hearing or
1-11 other procedural requirements other than those provided by Chapter
1-12 2303, Government Code.
1-13 (b) The governing body of a municipality with a population
1-14 of 100,000 or more, without additional authorization, may:
1-15 (1) create a public improvement district under
1-16 Chapter 372, Local Government Code, that includes all or any part
1-17 of a reinvestment zone that is located in an enterprise zone; and
1-18 (2) provide that if land is annexed to the
1-19 reinvestment zone, the land is automatically annexed to the public
1-20 improvement district.
1-21 (c) A governing body to which Subsection (b) applies must
1-22 follow the procedures for creating a public improvement district
1-23 under Chapter 372, Local Government Code, except the petition
1-24 provisions of that chapter do not apply.
2-1 SECTION 2. Section 311.008(a), Tax Code, is amended to read
2-2 as follows:
2-3 (a) A municipality may exercise any power necessary and
2-4 convenient to carry out this chapter, including the power to:
2-5 (1) cause project plans to be prepared, approve and
2-6 implement the plans, and otherwise achieve the purposes of the
2-7 plan;
2-8 (2) acquire real property by purchase, condemnation,
2-9 or other means to implement project plans and sell that property on
2-10 the terms and conditions and in the manner it considers advisable;
2-11 (3) enter into agreements, including agreements with
2-12 bondholders, contractors, consultants, developers, and other
2-13 persons, determined by the governing body of the municipality to be
2-14 necessary or convenient to implement project plans and achieve
2-15 their purposes, which agreements may include conditions,
2-16 restrictions, or covenants that run with the land or that by other
2-17 means regulate or restrict the use of land and may dedicate or
2-18 pledge revenues from the tax increment fund in support of the
2-19 agreements; and
2-20 (4) consistent with the project plan for the zone:
2-21 (A) acquire blighted, deteriorated,
2-22 deteriorating, undeveloped, or inappropriately developed real
2-23 property or other property in a blighted area, in an enterprise
2-24 zone, or in a federally assisted new community in the zone to
2-25 implement or complete the project plan, for the preservation or
2-26 restoration of historic sites, beautification or conservation, the
2-27 provision of public works or public facilities, or other public
3-1 purposes; [or]
3-2 (B) acquire, construct, reconstruct, or install
3-3 public works, facilities, or sites or other [public] improvements,
3-4 including utilities, streets, fences, street lights, water and
3-5 sewer facilities, pedestrian malls, sidewalks, [and] walkways,
3-6 parks, flood and drainage facilities, educational facilities, or
3-7 parking facilities;
3-8 (C) acquire or install works of art, security
3-9 devices, or trees; or
3-10 (D) remediate conditions that contaminate land
3-11 or buildings located in the zone.
3-12 SECTION 3. Section 311.009(a), Tax Code, is amended to read
3-13 as follows:
3-14 (a) Except as provided by Subsection (b), the board of
3-15 directors of a reinvestment zone consists of at least five and not
3-16 more than 17 [15] members, unless more than 17 [15] members are
3-17 required to satisfy the requirements of this subsection.
3-18 Each taxing unit other than a municipality that levies taxes
3-19 on real property in the zone may appoint one member of the board.
3-20 A unit may waive its right to appoint a director. The member of
3-21 the state senate in whose district the zone is located is a member
3-22 of the board, and the member of the state house of representatives
3-23 in whose district the zone is located is a member of the board,
3-24 except that either may designate another individual to serve in the
3-25 member's place at the pleasure of the member. If the zone is
3-26 located in more than one senate or house district, this subsection
3-27 applies only to the senator or representative in whose district a
4-1 larger portion of the zone is located than any other senate or
4-2 house district, as applicable. The governing body of the
4-3 municipality that created the zone may appoint not more than 10
4-4 directors to the board; except that if there are fewer than five
4-5 directors appointed by taxing units other than the municipality,
4-6 the governing body of the municipality may appoint more than 10
4-7 members as long as the total membership of the board does not
4-8 exceed 17 [15].
4-9 SECTION 4. Section 311.010(b), Tax Code, is amended to read
4-10 as follows:
4-11 (b) The board of directors of a reinvestment zone may enter
4-12 into agreements as the board considers necessary or convenient to
4-13 implement the project plan and reinvestment zone financing plan and
4-14 achieve their purposes. An agreement may provide for the
4-15 regulation or restriction of the use of land by imposing
4-16 conditions, restrictions, or covenants that run with the land. An
4-17 agreement may dedicate and provide that revenue in [from] the tax
4-18 increment fund be used to pay project costs, including the costs of
4-19 low-income or moderate-income housing or replacing housing or areas
4-20 of public assembly in or out of the zone. An agreement may
4-21 dedicate revenue from the tax increment fund to pay a neighborhood
4-22 enterprise association for providing services or carrying out
4-23 projects authorized under Subchapters E and G, Chapter 2303,
4-24 Government Code, in the zone. The term of an agreement under this
4-25 subsection may be of any duration, except that the term of an
4-26 agreement with a neighborhood enterprise association may not exceed
4-27 10 years.
5-1 SECTION 5. Section 311.011(f), Tax Code, is amended to read
5-2 as follows:
5-3 (f) In a zone designated under Section 311.005(a)(5) that is
5-4 located in a county with a population of 2.1 million or more, the
5-5 project plan must provide that at least one-third of the surface
5-6 area of the zone, excluding roads, streets, highways, utility
5-7 rights-of-way, and other public areas or areas exempt from ad
5-8 valorem taxation, be used for [dedicated to] residential housing
5-9 and that at least one-third of the tax increment of the zone be
5-10 used to provide [dedicated to providing] low-income and
5-11 moderate-income housing or to assist or stimulate the economic
5-12 development of an eligible business activity during the term of the
5-13 zone. Assistance to an eligible business activity may be provided
5-14 in any manner authorized by this chapter or Chapter 380, Local
5-15 Government Code. The board of directors of a reinvestment zone
5-16 shall specify in the project plan the manner in which low-income or
5-17 moderate-income housing will be provided, the manner in which any
5-18 assistance to eligible business activities will be provided, and
5-19 the method by which the tax increment will be allocated. In this
5-20 subsection "eligible business activity" means a business activity
5-21 of which at least 35 percent of the employees reside in the
5-22 territory of an enterprise zone, and substantially all of which is
5-23 performed in that enterprise zone.
5-24 SECTION 6. (a) This Act takes effect September 1, 1997.
5-25 (b) The change in law to Section 311.009(a), Tax Code, made
5-26 by this Act applies to a reinvestment zone created before the
5-27 effective date of this Act that is in existence on that date.
6-1 SECTION 7. The importance of this legislation and the
6-2 crowded condition of the calendars in both houses create an
6-3 emergency and an imperative public necessity that the
6-4 constitutional rule requiring bills to be read on three several
6-5 days in each house be suspended, and this rule is hereby suspended.