By Coleman                                      H.B. No. 3083

      75R7841 JD-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the Tax Increment Financing Act.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 311.005(a), Tax Code, is amended to read

 1-5     as follows:

 1-6           (a)  To be designated as a reinvestment zone, an area must:

 1-7                 (1)  substantially arrest or impair the sound growth of

 1-8     the municipality creating the zone, retard the provision of housing

 1-9     accommodations, or constitute an economic or social liability and

1-10     be a menace to the public health, safety, morals, or welfare in its

1-11     present condition and use because of the presence of:

1-12                       (A)  a substantial number of substandard, slum,

1-13     deteriorated, or deteriorating structures;

1-14                       (B)  the predominance of defective or inadequate

1-15     sidewalk or street layout;

1-16                       (C)  faulty lot layout in relation to size,

1-17     adequacy, accessibility, or usefulness;

1-18                       (D)  unsanitary or unsafe conditions;

1-19                       (E)  the deterioration of site or other

1-20     improvements;

1-21                       (F)  tax or special assessment delinquency

1-22     exceeding the fair value of the land;

1-23                       (G)  defective or unusual conditions of title; or

1-24                       (H)  conditions that endanger life or property by

 2-1     fire or other cause;

 2-2                 (2)  be predominantly open and, because of obsolete

 2-3     platting, deterioration of structures or site improvements, or

 2-4     other factors, substantially impair or arrest the sound growth of

 2-5     the municipality; [or]

 2-6                 (3)  be in a federally assisted new community located

 2-7     in the municipality or in an area immediately adjacent to a

 2-8     federally assisted new community;

 2-9                 (4)  be designated as an enterprise zone under Chapter

2-10     2303, Government Code; or

2-11                 (5)  be an area described in a petition requesting that

2-12     the area be designated as a reinvestment zone, if the petition is

2-13     submitted to the governing body of the municipality by the owners

2-14     of property constituting at least 50 percent of the appraised value

2-15     of the property in the area according to the most recent certified

2-16     appraisal roll for the county in which the area is located.

2-17           SECTION 2.  Section 311.009, Tax Code, is amended by adding

2-18     Subsection (c) to read as follows:

2-19           (c)  The governing body of a municipality may add members to

2-20     a board covered by Subsection (a).

2-21           SECTION 3.  Section 311.010, Tax Code, is amended by adding

2-22     Subsection (d) to read as follows:

2-23           (d)  The board may create a nonprofit corporation under the

2-24     Texas Non-Profit Corporation Act (Article 1396.1.01, et seq.) to

2-25     assist the board in the performance of the board's duties under

2-26     this chapter.

2-27           SECTION 4.  Section 311.011(f), Tax Code, is amended to read

 3-1     as follows:

 3-2           (f)  In a zone designated under Section 311.005(a)(5) that is

 3-3     located in a county with a population of 2.1 million or more, the

 3-4     project plan must provide that at least one-third of the surface

 3-5     area of the zone, excluding roads, streets, highways, utility

 3-6     rights-of-way, and other public areas or areas exempt from ad

 3-7     valorem taxation, be dedicated to residential housing and that at

 3-8     least one-third of the tax increment of the zone be dedicated to

 3-9     providing low-income housing during the term of the zone.  The plan

3-10     shall specify the manner in which the portion of the tax increment

3-11     dedicated to low-income housing is to be spent and shall provide

3-12     for an annual allocation of the portion.

3-13           SECTION 5.  This Act takes effect September 1, 1997.

3-14           SECTION 6.  The importance of this legislation and the

3-15     crowded condition of the calendars in both houses create an

3-16     emergency and an imperative public necessity that the

3-17     constitutional rule requiring bills to be read on three several

3-18     days in each house be suspended, and this rule is hereby suspended.