1-1 By: Sibley S.B. No. 1557
1-2 (In the Senate - Filed March 14, 1997; March 20, 1997, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 7, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 0; April 7, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1557 By: Sibley
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to certain contributions and tax abatement agreements of a
1-11 school district for the support of reinvestment zones.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subdivision (4), Section 311.002, Tax Code, is
1-14 amended to read as follows:
1-15 (4) "Taxing unit" has the meaning assigned by Section
1-16 1.04, except that for a reinvestment zone created on or after
1-17 September 1, 1997, the term does not include a school district that
1-18 is subject to Chapter 42, Education Code, and that is organized
1-19 primarily to provide general elementary and secondary public
1-20 education.
1-21 SECTION 2. Subsections (e) and (f), Section 311.003, Tax
1-22 Code, are amended to read as follows:
1-23 (e) Not later than the 60th day before the date of the
1-24 public hearing required by Subsection (c), the governing body of
1-25 the municipality must notify in writing the governing body of each
1-26 taxing unit that levies real property taxes in the proposed
1-27 reinvestment zone that it intends to establish the zone. The
1-28 notice must contain a description of the proposed boundaries of the
1-29 zone, the tentative plans for the development or redevelopment of
1-30 the zone, and an estimate of the general impact of the proposed
1-31 zone on property values and tax revenues. The notice may be given
1-32 later than the 60th day before the date of the public hearing if
1-33 the governing body of each county [and school district] that levies
1-34 real property taxes in the proposed zone agrees to waive the
1-35 requirement.
1-36 (f) A taxing unit may request additional information from
1-37 the governing body of the municipality. The governing body of the
1-38 municipality shall provide the information requested to the extent
1-39 practicable. In addition to the notice required by Subsection (e),
1-40 the governing body of the municipality shall make a formal
1-41 presentation to the governing body of each county [or school
1-42 district] that levies real property taxes in the proposed
1-43 reinvestment zone. The presentation must include a description of
1-44 the proposed boundaries of the zone, the tentative plans for the
1-45 development or redevelopment of the zone, and an estimate of the
1-46 general impact of the proposed zone on property values and tax
1-47 revenues. The governing body of the municipality shall notify each
1-48 taxing unit that levies real property taxes in the proposed zone of
1-49 each presentation to be made to a county [or school district] under
1-50 this subsection. Members of the governing body of each taxing unit
1-51 that levies real property taxes in the proposed zone may attend a
1-52 presentation under this subsection. If agreed to by each [the]
1-53 county [or school districts] involved, the governing body of the
1-54 municipality may make a single presentation to more than one county
1-55 [or school district] governing body.
1-56 SECTION 3. Subsection (c), Section 311.006, Tax Code, is
1-57 amended to read as follows:
1-58 (c) A municipality may not create a reinvestment zone or
1-59 change the boundaries of an existing reinvestment zone if the
1-60 proposed zone or proposed boundaries of the zone contain more than
1-61 15 percent of the total appraised value of real property taxable by
1-62 a county [or school district].
1-63 SECTION 4. Subsection (b), Section 311.009, Tax Code, is
1-64 amended to read as follows:
2-1 (b) If the zone was designated under Section 311.005(a)(5),
2-2 the board of directors of the zone consists of nine members. Each
2-3 [school district or] county that levies taxes on real property in
2-4 the zone may appoint one member of the board if the [school
2-5 district or] county has approved the payment of all or part of the
2-6 tax increment produced by the unit. The member of the state senate
2-7 in whose district the zone is located is a member of the board, and
2-8 the member of the state house of representatives in whose district
2-9 the zone is located is a member of the board, except that either
2-10 may designate another individual to serve in the member's place at
2-11 the pleasure of the member. If the zone is located in more than
2-12 one senate or house district, this subsection applies only to the
2-13 senator or representative in whose district a larger portion of the
2-14 zone is located than any other senate or house district, as
2-15 applicable. The remaining members of the board are appointed by
2-16 the governing body of the municipality that created the zone.
2-17 SECTION 5. Section 311.011, Tax Code, is amended by amending
2-18 Subsection (c), adding a new Subsection (f), and relettering
2-19 existing Subsection (f) as Subsection (g) to read as follows:
2-20 (c) The reinvestment zone financing plan must include:
2-21 (1) a detailed list describing the estimated project
2-22 costs of the zone, including administrative expenses;
2-23 (2) a statement listing the kind, number, and location
2-24 of all proposed public works or public improvements in the zone;
2-25 (3) an economic feasibility study;
2-26 (4) the estimated amount of bonded indebtedness to be
2-27 incurred;
2-28 (5) the time when related costs or monetary
2-29 obligations are to be incurred;
2-30 (6) a description of the methods of financing all
2-31 estimated project costs and the expected sources of revenue to
2-32 finance or pay project costs, including the percentage of tax
2-33 increment to be derived from the property taxes of each taxing unit
2-34 that levies taxes on real property in the zone, except that a
2-35 project plan or reinvestment zone financing plan approved under
2-36 this section on or after September 1, 1997, may not include a tax
2-37 increment or any other funds derived from a school district as a
2-38 source of revenue to finance or pay project costs;
2-39 (7) the current total appraised value of taxable real
2-40 property in the zone;
2-41 (8) the estimated captured appraised value of the zone
2-42 during each year of its existence; and
2-43 (9) the duration of the zone.
2-44 (f) A project plan or reinvestment zone financing plan
2-45 approved before September 1, 1997, may not be amended on or after
2-46 September 1, 1997, to:
2-47 (1) increase the percentage of a tax increment to be
2-48 contributed by a school district to a tax increment fund;
2-49 (2) increase the duration of time a school district is
2-50 to contribute to a tax increment fund;
2-51 (3) allow a school district that was not included in
2-52 the originally approved project plan or reinvestment zone financing
2-53 plan to contribute a tax increment or any other funds to a tax
2-54 increment fund; or
2-55 (4) allow a school district to pay into a tax
2-56 increment fund any additional tax increment or funds derived from
2-57 property added to the reinvestment zone under this section or
2-58 Section 311.007 or after September 1, 1997.
2-59 (g) In a zone designated under Section 311.005(a)(5) that is
2-60 located in a county with a population of 2.1 million or more, the
2-61 project plan must provide that at least one-third of the surface
2-62 area of the zone, excluding roads, streets, highways, utility
2-63 rights-of-way, and other public areas or areas exempt from ad
2-64 valorem taxation, be dedicated to residential housing and that at
2-65 least one-third of the tax increment of the zone be dedicated to
2-66 providing low-income housing during the term of the zone.
2-67 SECTION 6. Subsection (g), Section 311.013, Tax Code, is
2-68 amended to read as follows:
2-69 (g) A taxing unit is not required to pay into the tax
3-1 increment fund any of its tax increment produced from property
3-2 located in a reinvestment zone designated under Section
3-3 311.005(a)(5) or in an area added to a reinvestment zone under
3-4 Section 311.007(b) unless the taxing unit enters into an agreement
3-5 to do so with the governing body of the municipality that created
3-6 the zone. A taxing unit may enter into an agreement under this
3-7 subsection at any time before or after the zone is created or
3-8 enlarged. The agreement may include conditions for payment of that
3-9 tax increment into the fund and must specify the portion of the tax
3-10 increment to be paid into the fund and the years for which that tax
3-11 increment is to be paid into the fund. A school district may not
3-12 enter into an agreement under this subsection on or after September
3-13 1, 1997. An agreement entered into by a school district under this
3-14 subsection before September 1, 1997, may not be amended on or after
3-15 September 1, 1997, to include any of the conditions prohibited by
3-16 Section 311.011(f). The agreement and the conditions in the
3-17 agreement are binding on the taxing unit, the municipality, and the
3-18 board of directors of the zone.
3-19 SECTION 7. Section 312.002, Tax Code, is amended by adding
3-20 Subsections (e) and (f) to read as follows:
3-21 (e) "Taxing unit" has the meaning assigned by Section 1.04,
3-22 except that for a tax abatement agreement executed on or after
3-23 September 1, 1997, the term does not include a school district that
3-24 is subject to Chapter 42, Education Code, and that is organized
3-25 primarily to provide general elementary and secondary public
3-26 education.
3-27 (f) On or after September 1, 1997, a school district may not
3-28 enter into a tax abatement agreement under this chapter.
3-29 SECTION 8. Section 312.208, Tax Code, is amended by adding
3-30 Subsection (c) to read as follows:
3-31 (c) A tax abatement agreement entered into by a school
3-32 district before September 1, 1997, may not be modified on or after
3-33 September 1, 1997, to:
3-34 (1) add property to be exempt from taxation by a
3-35 school district under the agreement;
3-36 (2) increase the portion of the value of the property
3-37 exempt from taxation by a school district under the agreement; or
3-38 (3) increase the duration of the participation by a
3-39 school district under the agreement.
3-40 SECTION 9. (a) This Act takes effect September 1, 1997.
3-41 (b) The changes in law made by this Act apply to a
3-42 reinvestment zone created, enlarged, or modified under Chapter 311
3-43 or 312, Tax Code, as amended by this Act, on or after September 1,
3-44 1997. The creation of a reinvestment zone before September 1,
3-45 1997, and the administration of a reinvestment zone that was
3-46 created, enlarged, or modified before September 1, 1997, are
3-47 covered by the law in effect immediately before September 1, 1997,
3-48 and the former law is continued in effect for that purpose.
3-49 (c) The changes in law made by this Act apply to a project
3-50 plan or reinvestment zone financing plan approved or amended under
3-51 Chapter 311, Tax Code, as amended by this Act, on or after
3-52 September 1, 1997. The approval or amendment of a project plan or
3-53 reinvestment zone financing plan before September 1, 1997, is
3-54 covered by the law in effect immediately before September 1, 1997,
3-55 and the former law is continued in effect for that purpose.
3-56 (d) The changes in law made by this Act apply to an
3-57 agreement entered into under Subsection (g), Section 311.013, Tax
3-58 Code, as amended by this Act, or a tax abatement agreement executed
3-59 or modified under Chapter 312, Tax Code, as amended by this Act, on
3-60 or after September 1, 1997. The execution or modification of an
3-61 agreement under Subsection (g), Section 311.013, Tax Code, as
3-62 amended by this Act, or a tax abatement agreement under Chapter
3-63 312, Tax Code, as amended by this Act, before September 1, 1997, is
3-64 covered by the law in effect immediately before September 1, 1997,
3-65 and the former law is continued in effect for that purpose.
3-66 SECTION 10. The importance of this legislation and the
3-67 crowded condition of the calendars in both houses create an
3-68 emergency and an imperative public necessity that the
3-69 constitutional rule requiring bills to be read on three several
4-1 days in each house be suspended, and this rule is hereby suspended.
4-2 * * * * *