1-1 AN ACT
1-2 relating to composition of the board of directors of a tax
1-3 increment reinvestment zone.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 311.004(a), Tax Code, is amended to read
1-6 as follows:
1-7 (a) The ordinance designating an area as a reinvestment zone
1-8 must:
1-9 (1) describe the boundaries of the zone with
1-10 sufficient definiteness to identify with ordinary and reasonable
1-11 certainty the territory included in the zone;
1-12 (2) create a board of directors for the zone and
1-13 specify the number of directors of the board as provided by Section
1-14 311.009 or 311.0091, as applicable;
1-15 (3) provide that the zone take effect immediately upon
1-16 passage of the ordinance;
1-17 (4) provide a date for termination of the zone;
1-18 (5) assign a name to the zone for identification, with
1-19 the first zone created by a municipality designated as
1-20 "Reinvestment Zone Number One, City (or Town, as applicable) of
1-21 (name of municipality)" and subsequently created zones assigned
1-22 names in the same form numbered consecutively in the order of their
1-23 creation;
1-24 (6) establish a tax increment fund for the zone; and
2-1 (7) contain findings that:
2-2 (A) improvements in the zone will significantly
2-3 enhance the value of all the taxable real property in the zone and
2-4 will be of general benefit to the municipality; and
2-5 (B) the area meets the requirements of Section
2-6 311.005.
2-7 SECTION 2. Chapter 311, Tax Code, is amended by adding
2-8 Section 311.0091 to read as follows:
2-9 Sec. 311.0091. COMPOSITION OF BOARD OF DIRECTORS OF CERTAIN
2-10 REINVESTMENT ZONES. (a) This section applies to a reinvestment
2-11 zone designated by a municipality which is wholly or partially
2-12 located in a county with a population of less than 1.4 million in
2-13 which the principal municipality has a population of 1.1 million or
2-14 more.
2-15 (b) Except as provided by Subsection (c), the board of
2-16 directors of a reinvestment zone consists of at least five and not
2-17 more than 15 members, unless more than 15 members are required to
2-18 satisfy the requirements of this subsection. Each taxing unit that
2-19 approves the payment of all or part of its tax increment into the
2-20 tax increment fund is entitled to appoint a number of members to
2-21 the board in proportion to the taxing unit's pro rata share of the
2-22 total anticipated tax increment to be deposited into the tax
2-23 increment fund during the term of the zone. In determining the
2-24 number of members a taxing unit may appoint to the board, the
2-25 taxing unit's percentage of anticipated pro rata contributions to
2-26 the tax increment fund is multiplied by the number of members of
2-27 the board, and a number containing a fraction that is one-half or
3-1 greater shall be rounded up to the next whole number.
3-2 Notwithstanding any other provision of this subsection, each taxing
3-3 unit that approves the payment of all or part of its tax increment
3-4 into the tax increment fund is entitled to appoint at least one
3-5 member of the board, and the municipality that designated the zone
3-6 is entitled to appoint at least as many members of the board as any
3-7 other participating taxing unit. A taxing unit may waive its right
3-8 to appoint a director.
3-9 (c) If the zone was designated under Section 311.005(a)(5),
3-10 the board of directors of the zone consists of nine members, unless
3-11 a greater number of members is necessary to comply with this
3-12 subsection. Each taxing unit that approves the payment of all or
3-13 part of its tax increment into the tax increment fund is entitled
3-14 to appoint a number of members to the board in proportion to the
3-15 taxing unit's pro rata share of the total anticipated tax increment
3-16 to be deposited into the tax increment fund during the term of the
3-17 zone. In determining the number of members a taxing unit may
3-18 appoint to the board, the taxing unit's percentage of anticipated
3-19 pro rata contributions to the tax increment fund is multiplied by
3-20 nine, and a number containing a fraction that is one-half or
3-21 greater shall be rounded up to the next whole number.
3-22 Notwithstanding any other provision of this subsection, each taxing
3-23 unit that approves the payment of all or part of its tax increment
3-24 into the tax increment fund is entitled to appoint at least one
3-25 member of the board, and the municipality that designated the zone
3-26 is entitled to appoint at least as many members of the board as any
3-27 other participating taxing unit. A taxing unit may waive its right
4-1 to appoint a director. The member of the state senate in whose
4-2 district the zone is located is a member of the board, and the
4-3 member of the state house of representatives in whose district the
4-4 zone is located is a member of the board, except that either may
4-5 designate another individual to serve in the member's place at the
4-6 pleasure of the member. If the zone is located in more than one
4-7 senate or house district, this subsection applies only to the
4-8 senator or representative in whose district a larger portion of the
4-9 zone is located than any other senate or house district, as
4-10 applicable.
4-11 (d) Members of the board are appointed for terms of two
4-12 years unless longer terms are provided under Section 11, Article
4-13 XI, Texas Constitution. Terms of members may be staggered.
4-14 (e) A vacancy on the board is filled for the unexpired term
4-15 by appointment of the governing body of the taxing unit that
4-16 appointed the director who served in the vacant position.
4-17 (f) To be eligible for appointment to the board, an
4-18 individual must:
4-19 (1) be a qualified voter of the municipality; or
4-20 (2) be at least 18 years of age and own real property
4-21 in the zone or be an employee or agent of a person that owns real
4-22 property in the zone.
4-23 (g) Each year the board of directors of a reinvestment zone
4-24 shall elect one of its members to serve as presiding officer for a
4-25 term of one year. The board of directors may elect an assistant
4-26 presiding officer to preside in the absence of the presiding
4-27 officer or when there is a vacancy in the office of presiding
5-1 officer. The board may elect other officers as it considers
5-2 appropriate.
5-3 (h) A member of the board of directors of a reinvestment
5-4 zone:
5-5 (1) is not a public official by virtue of that
5-6 position; and
5-7 (2) unless otherwise ineligible, may be appointed to
5-8 serve concurrently on the board of directors of a local government
5-9 corporation created under Subchapter D, Chapter 431, Transportation
5-10 Code.
5-11 SECTION 3. Section 311.0091, Tax Code, as added by this Act,
5-12 applies only to the board of directors of a tax increment
5-13 reinvestment zone that is created on or after the effective date of
5-14 this Act.
5-15 SECTION 4. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3006 was passed by the House on May
5, 2001, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 3006 on May 25, 2001, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 3006 was passed by the Senate, with
amendments, on May 22, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor