By Coleman                                            H.B. No. 2842
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to reinvestment zones and tax increment financing under
 1-3     the Tax Increment Financing Act.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 311.010, Tax Code, is amended by adding
 1-6     Subsection (g) to read as follows:
 1-7           (g)  The board of directors of a local government corporation
 1-8     administering a reinvestment zone may contract with the
 1-9     municipality that created the reinvestment zone to pay for the
1-10     incremental costs of providing municipal services incurred as a
1-11     result of the creation of the reinvestment zone or the development
1-12     or redevelopment of the land within the zone without regard to
1-13     whether the costs of services are identified in the project plan
1-14     and reinvestment zone financing plan.
1-15           SECTION 2.  Section 311.014, Tax Code, is amended by adding
1-16     Subsection (e) to read  as follows:
1-17           (e)  After payment of all tax increment bonds or notes and
1-18     other obligations of a reinvestment zone, but prior to the payment
1-19     of all project costs, the municipality may reduce its contributions
1-20     to the tax increment fund to an amount adequate to pay, together
1-21     with all other moneys to be paid by other taxing units into the tax
1-22     increment fund, the estimated annual project costs of the zone as
1-23     shown in the project plan and reinvestment zone financing plan.
 2-1           SECTION 3.  This Act takes effect September 1, 2001.