By: Sibley S.B. No. 1557
A BILL TO BE ENTITLED
AN ACT
1-1 relating to certain contributions and tax abatement agreements of a
1-2 school district for the support of reinvestment zones.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivision (4), Section 311.002, Tax Code, is
1-5 amended to read as follows:
1-6 (4) "Taxing unit" has the meaning assigned by Section
1-7 1.04, except that for a reinvestment zone created on or after
1-8 September 1, 1997, the term does not include a school district that
1-9 is subject to Chapter 42, Education Code, and that is organized
1-10 primarily to provide general elementary and secondary public
1-11 education.
1-12 SECTION 2. Subsections (e) and (f), Section 311.003, Tax
1-13 Code, are amended to read as follows:
1-14 (e) Not later than the 60th day before the date of the
1-15 public hearing required by Subsection (c), the governing body of
1-16 the municipality must notify in writing the governing body of each
1-17 taxing unit that levies real property taxes in the proposed
1-18 reinvestment zone that it intends to establish the zone. The
1-19 notice must contain a description of the proposed boundaries of the
1-20 zone, the tentative plans for the development or redevelopment of
1-21 the zone, and an estimate of the general impact of the proposed
1-22 zone on property values and tax revenues. The notice may be given
1-23 later than the 60th day before the date of the public hearing if
2-1 the governing body of each county [and school district] that levies
2-2 real property taxes in the proposed zone agrees to waive the
2-3 requirement.
2-4 (f) A taxing unit may request additional information from
2-5 the governing body of the municipality. The governing body of the
2-6 municipality shall provide the information requested to the extent
2-7 practicable. In addition to the notice required by Subsection (e),
2-8 the governing body of the municipality shall make a formal
2-9 presentation to the governing body of each county [or school
2-10 district] that levies real property taxes in the proposed
2-11 reinvestment zone. The presentation must include a description of
2-12 the proposed boundaries of the zone, the tentative plans for the
2-13 development or redevelopment of the zone, and an estimate of the
2-14 general impact of the proposed zone on property values and tax
2-15 revenues. The governing body of the municipality shall notify each
2-16 taxing unit that levies real property taxes in the proposed zone of
2-17 each presentation to be made to a county [or school district] under
2-18 this subsection. Members of the governing body of each taxing unit
2-19 that levies real property taxes in the proposed zone may attend a
2-20 presentation under this subsection. If agreed to by each [the]
2-21 county [or school districts] involved, the governing body of the
2-22 municipality may make a single presentation to more than one county
2-23 [or school district] governing body.
2-24 SECTION 3. Subsection (c), Section 311.006, Tax Code, is
2-25 amended to read as follows:
3-1 (c) A municipality may not create a reinvestment zone or
3-2 change the boundaries of an existing reinvestment zone if the
3-3 proposed zone or proposed boundaries of the zone contain more than
3-4 15 percent of the total appraised value of real property taxable by
3-5 a county [or school district].
3-6 SECTION 4. Subsection (b), Section 311.009, Tax Code, is
3-7 amended to read as follows:
3-8 (b) If the zone was designated under Section 311.005(a)(5),
3-9 the board of directors of the zone consists of nine members. Each
3-10 [school district or] county that levies taxes on real property in
3-11 the zone may appoint one member of the board if the [school
3-12 district or] county has approved the payment of all or part of the
3-13 tax increment produced by the unit. The member of the state senate
3-14 in whose district the zone is located is a member of the board, and
3-15 the member of the state house of representatives in whose district
3-16 the zone is located is a member of the board, except that either
3-17 may designate another individual to serve in the member's place at
3-18 the pleasure of the member. If the zone is located in more than
3-19 one senate or house district, this subsection applies only to the
3-20 senator or representative in whose district a larger portion of the
3-21 zone is located than any other senate or house district, as
3-22 applicable. The remaining members of the board are appointed by
3-23 the governing body of the municipality that created the zone.
3-24 SECTION 5. Section 311.011, Tax Code, is amended by amending
3-25 Subsection (c), adding a new Subsection (f), and relettering
4-1 existing Subsection (f) as Subsection (g) to read as follows:
4-2 (c) The reinvestment zone financing plan must include:
4-3 (1) a detailed list describing the estimated project
4-4 costs of the zone, including administrative expenses;
4-5 (2) a statement listing the kind, number, and location
4-6 of all proposed public works or public improvements in the zone;
4-7 (3) an economic feasibility study;
4-8 (4) the estimated amount of bonded indebtedness to be
4-9 incurred;
4-10 (5) the time when related costs or monetary
4-11 obligations are to be incurred;
4-12 (6) a description of the methods of financing all
4-13 estimated project costs and the expected sources of revenue to
4-14 finance or pay project costs, including the percentage of tax
4-15 increment to be derived from the property taxes of each taxing unit
4-16 that levies taxes on real property in the zone, except that a
4-17 project plan or reinvestment zone financing plan approved under
4-18 this section on or after September 1, 1997, may not include a tax
4-19 increment or any other funds derived from a school district as a
4-20 source of revenue to finance or pay project costs;
4-21 (7) the current total appraised value of taxable real
4-22 property in the zone;
4-23 (8) the estimated captured appraised value of the zone
4-24 during each year of its existence; and
4-25 (9) the duration of the zone.
5-1 (f) A project plan or reinvestment zone financing plan
5-2 approved before September 1, 1997, may not be amended on or after
5-3 September 1, 1997, to:
5-4 (1) increase the percentage of a tax increment to be
5-5 contributed by a school district to a tax increment fund;
5-6 (2) increase the duration of time a school district is
5-7 to contribute to a tax increment fund;
5-8 (3) allow a school district that was not included in
5-9 the originally approved project plan or reinvestment zone financing
5-10 plan to contribute a tax increment or any other funds to a tax
5-11 increment fund; or
5-12 (4) allow a school district to pay into a tax
5-13 increment fund any additional tax increment or funds derived from
5-14 property added to the reinvestment zone under this section or
5-15 Section 311.007 or after September 1, 1997.
5-16 (g) In a zone designated under Section 311.005(a)(5) that is
5-17 located in a county with a population of 2.1 million or more, the
5-18 project plan must provide that at least one-third of the surface
5-19 area of the zone, excluding roads, streets, highways, utility
5-20 rights-of-way, and other public areas or areas exempt from ad
5-21 valorem taxation, be dedicated to residential housing and that at
5-22 least one-third of the tax increment of the zone be dedicated to
5-23 providing low-income housing during the term of the zone.
5-24 SECTION 6. Subsection (g), Section 311.013, Tax Code, is
5-25 amended to read as follows:
6-1 (g) A taxing unit is not required to pay into the tax
6-2 increment fund any of its tax increment produced from property
6-3 located in a reinvestment zone designated under Section
6-4 311.005(a)(5) or in an area added to a reinvestment zone under
6-5 Section 311.007(b) unless the taxing unit enters into an agreement
6-6 to do so with the governing body of the municipality that created
6-7 the zone. A taxing unit may enter into an agreement under this
6-8 subsection at any time before or after the zone is created or
6-9 enlarged. The agreement may include conditions for payment of that
6-10 tax increment into the fund and must specify the portion of the tax
6-11 increment to be paid into the fund and the years for which that tax
6-12 increment is to be paid into the fund. A school district may not
6-13 enter into an agreement under this subsection on or after September
6-14 1, 1997. An agreement entered into by a school district under this
6-15 subsection before September 1, 1997, may not be amended on or after
6-16 September 1, 1997, to include any of the conditions prohibited by
6-17 Section 311.011(f). The agreement and the conditions in the
6-18 agreement are binding on the taxing unit, the municipality, and the
6-19 board of directors of the zone.
6-20 SECTION 7. Section 312.002, Tax Code, is amended by adding
6-21 Subsections (e) and (f) to read as follows:
6-22 (e) "Taxing unit" has the meaning assigned by Section 1.04,
6-23 except that for a tax abatement agreement executed on or after
6-24 September 1, 1997, the term does not include a school district that
6-25 is subject to Chapter 42, Education Code, and that is organized
7-1 primarily to provide general elementary and secondary public
7-2 education.
7-3 (f) On or after September 1, 1997, a school district may not
7-4 enter into a tax abatement agreement under this chapter.
7-5 SECTION 8. Section 312.208, Tax Code, is amended by adding
7-6 Subsection (c) to read as follows:
7-7 (c) A tax abatement agreement entered into by a school
7-8 district before September 1, 1997, may not be modified on or after
7-9 September 1, 1997, to:
7-10 (1) add property to be exempt from taxation by a
7-11 school district under the agreement;
7-12 (2) increase the portion of the value of the property
7-13 exempt from taxation by a school district under the agreement; or
7-14 (3) increase the duration of the participation by a
7-15 school district under the agreement.
7-16 SECTION 9. (a) This Act takes effect September 1, 1997.
7-17 (b) The changes in law made by this Act apply to a
7-18 reinvestment zone created, enlarged, or modified under Chapter 311
7-19 or 312, Tax Code, as amended by this Act, on or after September 1,
7-20 1997. The creation of a reinvestment zone before September 1,
7-21 1997, and the administration of a reinvestment zone that was
7-22 created, enlarged, or modified before September 1, 1997, are
7-23 covered by the law in effect immediately before September 1, 1997,
7-24 and the former law is continued in effect for that purpose.
7-25 (c) The changes in law made by this Act apply to a project
8-1 plan or reinvestment zone financing plan approved or amended under
8-2 Chapter 311, Tax Code, as amended by this Act, on or after
8-3 September 1, 1997. The approval or amendment of a project plan or
8-4 reinvestment zone financing plan before September 1, 1997, is
8-5 covered by the law in effect immediately before September 1, 1997,
8-6 and the former law is continued in effect for that purpose.
8-7 (d) The changes in law made by this Act apply to an
8-8 agreement entered into under Subsection (g), Section 311.013, Tax
8-9 Code, as amended by this Act, or a tax abatement agreement executed
8-10 or modified under Chapter 312, Tax Code, as amended by this Act, on
8-11 or after September 1, 1997. The execution or modification of an
8-12 agreement under Subsection (g), Section 311.013, Tax Code, as
8-13 amended by this Act, or a tax abatement agreement under Chapter
8-14 312, Tax Code, as amended by this Act, before September 1, 1997, is
8-15 covered by the law in effect immediately before September 1, 1997,
8-16 and the former law is continued in effect for that purpose.
8-17 SECTION 10. The importance of this legislation and the
8-18 crowded condition of the calendars in both houses create an
8-19 emergency and an imperative public necessity that the
8-20 constitutional rule requiring bills to be read on three several
8-21 days in each house be suspended, and this rule is hereby suspended.