By Coleman                                            H.B. No. 3532
         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 economic development by local governmental entities.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subtitle B, Title 12, Local Government Code, is
 1-5     amended by adding  Chapter 386 to read as follows:
 1-6          CHAPTER 386.  COMMERCIAL AND INDUSTRIAL DEVELOPMENT ZONES
 1-7                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-8           Sec. 386.001.  DEFINITIONS. In this chapter:
 1-9                 (1)  "Board" means a board of directors of a commercial
1-10     and industrial development zone.
1-11                 (2)  "Development zone" means an area designated as a
1-12     commercial and industrial development zone under this chapter.
1-13           Sec. 386.002.  JURISDICTION OF MUNICIPALITY. For the purposes
1-14     of this chapter, territory in the extraterritorial jurisdiction of
1-15     a municipality is considered to be in the jurisdiction of the
1-16     municipality.
1-17              (Sections 386.003-386.030 reserved for expansion
1-18            SUBCHAPTER B.  CREATION OF COMMERCIAL AND INDUSTRIAL
1-19                              DEVELOPMENT ZONE
1-20           Sec. 386.031.  CRITERIA FOR DEVELOPMENT ZONE CREATION. (a)
1-21     To be created as a development zone, an area must:
1-22                 (1)  have a continuous boundary;
1-23                 (2)  be at least 10 square miles but not larger than an
 2-1     area that is equal to five percent of the area, excluding lakes,
 2-2     waterways, and transportation arteries, of the municipality,
 2-3     county, or combination of municipalities and the county nominating
 2-4     the area as a development zone;
 2-5                 (3)  be an area of pervasive poverty, unemployment, or
 2-6     economic distress;
 2-7                 (4)  be located in a county with a population of 2.5
 2-8     million or more;
 2-9                 (5)  be adjacent to major transportation nodes and
2-10     thoroughfares that may be used for exporting products to major
2-11     airports, railways, and ports; and
2-12                 (6)  be designated as a development zone by an
2-13     ordinance or order adopted by each creating body.
2-14           (b)  A municipality may contain not more than three
2-15     development zones within its jurisdiction.
2-16           (c)  A county may contain not more than three development
2-17     zones in its unincorporated areas.
2-18           (d)  Creation of a development zone in a municipality or
2-19     county does not affect the number of enterprise zones that may be
2-20     designated in the municipality or county under Chapter 2303,
2-21     Government Code.
2-22           Sec. 386.032.  AREA OF PERVASIVE POVERTY, UNEMPLOYMENT, OR
2-23     ECONOMIC DISTRESS. An area is an area of pervasive poverty,
2-24     unemployment, or economic distress for the purposes of Section
2-25     386.031 if:
2-26                 (1)  the average rate of unemployment in the area
 3-1     during the most recent 12-month period for which data are available
 3-2     was at least 1-1/2 times the state average for that period;
 3-3                 (2)  the area is a low-income poverty area;
 3-4                 (3)  the area is in a jurisdiction or pocket of
 3-5     poverty, according to the most recent certification available from
 3-6     the United States Department of Housing and Urban Development; or
 3-7                 (4)  at least 70 percent of the residents or households
 3-8     of the area have an income that is less than 80 percent of the
 3-9     median income of the residents or households of the locality or
3-10     state, whichever is less.
3-11           Sec. 386.033.  CREATION OF DEVELOPMENT ZONE. (a)  A
3-12     development zone is created to promote and encourage:
3-13                 (1)  commercial development, including the development
3-14     of businesses in the technology field;
3-15                 (2)  workforce development;
3-16                 (3)  the improvement of competitiveness in education;
3-17                 (4)  public and private sector partnerships; and
3-18                 (5)  the revitalization of neighborhoods.
3-19           (b)  The governing body of a municipality or county,
3-20     individually or in combination with other municipalities, by
3-21     ordinance or order may create as a development zone an area within
3-22     its jurisdiction that meets the criteria under Section 386.031.
3-23           (c)  Each creating body must hold a public hearing before
3-24     adopting an ordinance or order under this section.
3-25           (d)  The governing body of a county may not designate
3-26     territory in the jurisdiction of a municipality as part of a
 4-1     proposed development zone unless the governing body of the
 4-2     municipality also designates the territory.
 4-3           (e)  A development zone created under this section is a:
 4-4                 (1)  political subdivision of the state; and
 4-5                 (2)  special district.
 4-6           Sec. 386.034.  DESIGNATING ORDINANCE OR ORDER. (a)  An
 4-7     ordinance or order designating an area as a development zone must:
 4-8                 (1)  describe precisely the area to be included in the
 4-9     zone by a legal description or by reference to roadways, lakes,
4-10     waterways, or municipal or county boundaries;
4-11                 (2)  state a finding that the area meets the
4-12     requirements of this chapter;
4-13                 (3)  summarize briefly the:
4-14                       (A)  incentives, including tax incentives, that
4-15     the designating body chooses to apply to businesses in the area; or
4-16                       (B)  programs to be developed to affect
4-17     businesses in the area; and
4-18                 (4)  designate the area as a development zone.
4-19           (b)  The incentives or programs summarized under Subsection
4-20     (a)(3) must include:
4-21                 (1)  an incentive that does not apply to all businesses
4-22     located in the jurisdiction of a governmental entity that
4-23     designated the area as a development zone;
4-24                 (2)  an incentive or program designed to improve the
4-25     skills of the local labor pool; and
4-26                 (3)  an incentive or program designed to address
 5-1     infrastructure, housing, or other elements essential to improving
 5-2     quality of life.
 5-3           (c)  This section does not prohibit a municipality or county
 5-4     from extending additional incentives, including tax incentives, to
 5-5     business enterprises in a development zone by a separate ordinance
 5-6     or order.
 5-7           Sec. 386.035.  TAX INCREMENT. A creating body may allow one
 5-8     quarter of one percent of a local property tax increment to fund a
 5-9     development zone, as provided by Chapter 311, Tax Code.  On
5-10     adoption of an order or ordinance by each creating body, the fund
5-11     may be used to pay salaries of employees of the board and
5-12     administrative expenses of the development zone.
5-13           Sec. 386.036.  AMENDING BOUNDARIES. (a)  A creating body by
5-14     ordinance or order may amend the boundary of a development zone
5-15     after a public hearing on the issue.
5-16           (b)  The amended boundary:
5-17                 (1)  must be continuous;
5-18                 (2)  may not exceed the original size requirement of
5-19     Section 386.031; and
5-20                 (3)  may not exclude any area originally included
5-21     within the boundary of the development zone.
5-22           (c)  The entire development zone with the amended boundary
5-23     must continue to meet the unemployment or economic distress
5-24     requirements of Section 386.031.
5-25           (d)  A creating body may not make more than one boundary
5-26     amendment for a development zone in a calendar year.
 6-1           (e)  If more than one body created the development zone, each
 6-2     body must agree on the amendment by ordinance or order.
 6-3              (Sections 386.037-386.060 reserved for expansion
 6-4                      SUBCHAPTER C.  BOARD OF DIRECTORS
 6-5           Sec. 386.061.  BOARD OF DIRECTORS. (a)  A development zone is
 6-6     governed by a board of nine directors who serve two-year terms,
 6-7     appointed as follows:
 6-8                 (1)  the governing body of the municipality, if any,
 6-9     that includes the greatest part of the zone's territory shall
6-10     appoint four directors;
6-11                 (2)  other municipalities, if any, any part of which
6-12     are included in the zone's territory, jointly shall appoint one
6-13     director;
6-14                 (3)  the commissioners court of the county in which the
6-15     zone is located shall appoint:
6-16                       (A)  nine directors, if the zone contains no
6-17     municipality; or
6-18                       (B)  four directors, if the zone contains one or
6-19     more municipalities; and
6-20                 (4)  if a development zone contains territory in only
6-21     one municipality, the municipality and the county in which the zone
6-22     is located jointly shall appoint one director.
6-23           (b)  The initial terms of directors may be staggered.
6-24           Sec. 386.062.  QUALIFICATIONS OF DIRECTORS. To serve as a
6-25     director, a person must:
6-26                 (1)  be at least 21 years old; and
 7-1                 (2)  be registered to vote in the county in which the
 7-2     development zone is located.
 7-3           Sec. 386.063.  DISQUALIFICATION OF DIRECTORS. Section 49.052,
 7-4     Water Code, applies to directors of a development zone created
 7-5     under this chapter as if the zone were a district governed by that
 7-6     section.
 7-7           Sec. 386.064.  BOARD VACANCIES. A vacancy in the office of
 7-8     director shall be filled by appointment by the entity that
 7-9     appointed the vacating director.
7-10           Sec. 386.065.  REMOVAL OF DIRECTOR. A majority of the board
7-11     may remove a director for misconduct or failure to carry out the
7-12     director's duties.
7-13           Sec. 386.066.  ORGANIZATION OF BOARD. (a)  Except as provided
7-14     by Subsection (b), after each appointment and qualification of
7-15     directors by the appointing entities, the board shall organize by
7-16     electing a president, a vice president, a secretary, and any other
7-17     officers the board considers necessary.
7-18           (b)  If a director is appointed under Section 386.061(a)(4),
7-19     that director shall serve as board president.
7-20           Sec. 386.067.  QUORUM; DIRECTOR'S DUTIES; MANAGEMENT OF ZONE.
7-21     Sections 49.053, 49.057, and 49.058, Water Code, apply to the board
7-22     of directors of a development zone created under this chapter as if
7-23     the zone were a district governed by those sections.
7-24           Sec. 386.068.  MEETINGS AND NOTICE. (a)  The board shall
7-25     designate and establish a development zone office in the county.
7-26           (b)  The board may establish regular meetings to conduct
 8-1     development zone business and may hold special meetings at other
 8-2     times as the business of a zone requires.
 8-3           (c)  Notice of the time, place, and purpose of any meeting of
 8-4     the board shall be given by posting a notice containing that
 8-5     information at a place convenient to the public within the
 8-6     development zone.  A copy of the notice shall be furnished to the
 8-7     clerk or clerks of the county in which the zone is located, who
 8-8     shall post the notice on a bulletin board in the county courthouse
 8-9     used for that purpose.
8-10           Sec. 386.069.  DIRECTOR'S COMPENSATION; BOND AND OATH OF
8-11     OFFICE. Sections 375.067, 375.069, and 375.070 apply to directors
8-12     of a development zone created under this chapter as if the zone
8-13     were a municipal management district.
8-14              (Sections 386.070-386.100 reserved for expansion
8-15                      SUBCHAPTER D.  POWERS AND DUTIES
8-16           Sec. 386.101.  GENERAL POWERS. (a)  A development zone may
8-17     acquire and dispose of projects and has the powers, authority,
8-18     rights, and duties that are necessary to permit the accomplishment
8-19     of purposes for which the zone was created.
8-20           (b)  A development zone may provide for general promotion of
8-21     and tourist advertising regarding the zone and its vicinity and for
8-22     a marketing program to attract visitors.  The zone may conduct
8-23     those activities under contracts for professional services with
8-24     persons or organizations the zone selects.
8-25           (c)  A development zone may enter into a memorandum of
8-26     understanding with any state agency, including an institution of
 9-1     higher education, to further the economic development of the zone.
 9-2           (d)  To the extent not inconsistent with this chapter, a
 9-3     development zone has the powers of:
 9-4                 (1)  a municipal management district created under
 9-5     Chapter 375; and
 9-6                 (2)  a county commissioners court under Section
 9-7     381.004.
 9-8           Sec. 386.102.  DUTY TO EVALUATE AVAILABLE FINANCING OPTIONS.
 9-9     The board shall evaluate all options available to the development
9-10     zone as alternatives to imposing a tax under Section 386.035,
9-11     including:
9-12                 (1)  regional grants from federal and state agencies;
9-13                 (2)  local money from a creating body;
9-14                 (3)  money from charities;
9-15                 (4)  sales taxes for economic development in the
9-16     development zone;
9-17                 (5)  use or impact fees on affected business entities;
9-18                 (6)  incentives for business entities that may benefit
9-19     from the development zone;
9-20                 (7)  money provided by local governmental entities; and
9-21                 (8)  in-kind contributions.
9-22           Sec. 386.103.  LIMIT ON DEVELOPMENT ZONE POWERS; OTHER LAWS
9-23     SUPERSEDE. (a)  For purposes of this section, "district or zone"
9-24     means:
9-25                 (1)  a federal enterprise zone;
9-26                 (2)  a state enterprise zone;
 10-1                (3)  a municipal management district; or
 10-2                (4)  any other special district, other than a
 10-3    development zone.
 10-4          (b)  This section applies only to a district or zone that
 10-5    contains territory included in the development zone's territory.
 10-6          (c)  The authority granted to a development zone under this
 10-7    chapter is not intended to duplicate the authority granted to a
 10-8    district or zone.
 10-9          (d)  This chapter does not limit the authority or
10-10    jurisdiction of any district or zone.
10-11          (e)  To the extent the laws of this chapter conflict with the
10-12    laws of any other district or zone, the laws of the other district
10-13    or zone shall control over this chapter.
10-14          Sec. 386.104.  MONITORING. (a)  The board shall monitor each
10-15    person in a development zone that receives benefits available under
10-16    this chapter.
10-17          (b)  On the board's request, the Texas Workforce Commission
10-18    or the comptroller's office shall provide to the board tax records
10-19    of a person that receives benefits under this chapter.
10-20          Sec. 386.105.  NEIGHBORHOOD REDEVELOPMENT ZONES. (a)  The
10-21    board may designate an area as a neighborhood redevelopment zone if
10-22    the area is:
10-23                (1)  adjacent to the development zone; and
10-24                (2)  eligible for inclusion in the development zone
10-25    under Sections 386.036(b) and (c).
10-26          (b)  A development zone may exercise the powers available to
 11-1    it in an area designated by the board under Subsection (a).
 11-2          Sec. 386.106.  SUITS. A development zone may, through is
 11-3    directors, sue and be sued in this state in the name of the
 11-4    development zone.  Service of process in a suit may be had by
 11-5    serving a director.
 11-6             (Sections 386.107-386.200 reserved for expansion
 11-7                 SUBCHAPTER E.  GENERAL FISCAL PROVISIONS
 11-8          Sec. 386.201.  EXPENDITURES. A development zone's money may
 11-9    be disbursed only by check, draft, order, or other instrument
11-10    signed by at least three directors.  The general manager,
11-11    treasurer, or other employee of the development zone, if authorized
11-12    by resolution of the board, may sign checks, drafts, orders, or
11-13    other instruments on any development zone operation account on
11-14    behalf of the board.
11-15          Sec. 386.202.  COMPETITIVE BIDDING; CONTRACT AWARD.
11-16    Subchapter K, Chapter 375, applies to a development zone created
11-17    under this chapter as if the zone were a municipal management
11-18    district.
11-19             (Sections 386.203-386.300 reserved for expansion
11-20                        SUBCHAPTER F.  DISSOLUTION
11-21          Sec. 386.301.  DISSOLUTION OF DEVELOPMENT ZONE BY CREATING
11-22    BODY. (a)  After a hearing, a creating body may dissolve a
11-23    development zone if:
11-24                (1)  the area no longer meets the criteria for
11-25    designation under this chapter;
11-26                (2)  the best interests of the creating body and the
 12-1    owners of property and interests in property in the zone will be
 12-2    served by dissolving the zone; and
 12-3                (3)  each creating body agrees by ordinance or order on
 12-4    the:
 12-5                      (A)  proposition that the zone should be
 12-6    dissolved;
 12-7                      (B)  disposition of zone assets; and
 12-8                      (C)  assumption of liabilities by the creating
 12-9    bodies.
12-10          (b)  The dissolution of a development zone does not affect
12-11    the validity of a:
12-12                (1)  tax incentive or regulatory relief granted or
12-13    accrued before the removal; or
12-14                (2)  bond issued under this chapter.
12-15          Sec. 386.302.  DISSOLUTION BY BOARD REQUEST. A board may
12-16    petition a creating body to dissolve the development zone under
12-17    Section 386.301 if a majority of the board finds at any time:
12-18                (1)  before the authorization of bonds or the final
12-19    lending of its credit that the continuation of the development zone
12-20    is impracticable or cannot be successfully and beneficially
12-21    accomplished; or
12-22                (2)  that all bonds of the development zone or other
12-23    debts of the zone have been paid and the purposes of the zone have
12-24    been accomplished.
12-25          Sec. 386.303.  TAXES. On dissolution of a development zone,
12-26    any taxes levied on behalf of the zone are abolished.
 13-1          SECTION 2.  Section 431.101, Transportation Code, is amended
 13-2    by amending Subsections (e) and (f) and adding Subsections (g),
 13-3    (h), and (i) to read as follows:
 13-4          (e)  Except as provided by Subsections (h) and (i), a local
 13-5    government corporation is subject to all state law related to the
 13-6    design and construction of projects, including the procurement of
 13-7    design and construction services, that applies to the local
 13-8    government that created the corporation.  In the event that a local
 13-9    government corporation is created jointly by multiple local
13-10    governments, and if the local governments have different threshold
13-11    contract amounts at which competitive bidding is required, then the
13-12    corporation shall follow the lower amount [Section 394.904(a),
13-13    Local Government Code, applies to property and improvements owned
13-14    by a local government corporation.  Section 394.904(b) of that code
13-15    applies to each contract awarded by the local government
13-16    corporation].
13-17          (f)  A local government corporation is not subject to a
13-18    competitive bidding requirement or other restriction imposed on the
13-19    procedure related to the lease, sale, or other disposition of real
13-20    property.
13-21          (g)  A member of the board of directors of a local government
13-22    corporation:
13-23                (1)  is not a public official by virtue of that
13-24    position; and
13-25                (2)  unless otherwise ineligible, may be appointed to
13-26    serve concurrently on the board of directors of a reinvestment zone
 14-1    created under Chapter 311, Tax Code.
 14-2          (h)  A corporation created after September 1, 1999, by a
 14-3    municipality for the purpose of the development of a convention
 14-4    center hotel project is exempt from competitive bidding
 14-5    requirements and other restrictions on the award of contracts for
 14-6    the limited purpose of completing a project initiated prior to
 14-7    December 31, 2000.
 14-8          (i)  A corporation created by a municipality after September
 14-9    1, 1999, for the purpose of developing water treatment and
14-10    distribution facilities is exempt from competitive bidding
14-11    requirements and other restrictions on the award of contracts for
14-12    the limited purpose of completing projects as described in a
14-13    project definition document issued prior to December 31, 2000.  Any
14-14    expansion of the treatment facility beyond the project described in
14-15    the project definition document is exempt from competitive bidding
14-16    requirements and other restrictions on the award of contracts for
14-17    the purpose of contracting for the operation of the facility but is
14-18    subject to all state law related to design and construction
14-19    procurement that applies to the local government that created the
14-20    corporation, as provided in Subsection (e).
14-21          SECTION 3.  Subchapter D, Chapter 431, Transportation Code,
14-22    is amended by adding Sections 431.110 and 431.111 to read as
14-23    follows:
14-24          Sec. 431.110.  CONFLICT OF INTEREST IN CONTRACTS. The
14-25    provisions of Chapter 171, Local Government Code, shall apply to
14-26    the award of contracts by a local government corporation.
 15-1          Sec. 431.111.  ANNUAL REPORT TO COMPTROLLER. (a)  Not later
 15-2    than February 1 of each year, the board of a local government
 15-3    corporation shall submit to the comptroller a report in the form
 15-4    required by the comptroller.  The form for the report may not
 15-5    exceed one page in  length.
 15-6          (b)  The report must include:
 15-7                (1)  a statement of the corporation's purpose;
 15-8                (2)  a statement of the corporation's total revenues
 15-9    and expenditures during the preceding fiscal year; and
15-10                (3)  a summary of the corporation's activities during
15-11    the preceding fiscal year, including any bonds issued and capital
15-12    projects undertaken by the corporation.
15-13          (c)  A copy of the annual report required by this section
15-14    shall also be submitted to the local government that created the
15-15    corporation.
15-16          SECTION 4.  Section 311.002(1), Tax Code, is amended to read
15-17    as follows:
15-18                (1)  "Project costs" means the expenditures made or
15-19    estimated to be made and monetary obligations incurred or estimated
15-20    to be incurred by the municipality or county establishing a
15-21    reinvestment zone that are listed in the project plan as costs of
15-22    public works or public improvements in the zone, plus other costs
15-23    incidental to those expenditures and obligations.  "Project costs"
15-24    include:
15-25                      (A)  capital costs, including the actual costs of
15-26    the acquisition and construction of public works, public
 16-1    improvements, new buildings, structures, and fixtures; the actual
 16-2    costs of the acquisition, demolition, alteration, remodeling,
 16-3    repair, or reconstruction of existing buildings, structures, and
 16-4    fixtures; and the actual costs of the acquisition of land and
 16-5    equipment and the clearing and grading of land;
 16-6                      (B)  financing costs, including all interest paid
 16-7    to holders of evidences of indebtedness or other obligations issued
 16-8    to pay for project costs and any premium paid over the principal
 16-9    amount of the obligations because of the redemption of the
16-10    obligations before maturity;
16-11                      (C)  real property assembly costs;
16-12                      (D)  professional service costs, including those
16-13    incurred for architectural, planning, engineering, and legal advice
16-14    and services;
16-15                      (E)  imputed administrative costs, including
16-16    reasonable charges for the time spent by employees of the
16-17    municipality or county in connection with the implementation of a
16-18    project plan;
16-19                      (F)  relocation costs;
16-20                      (G)  organizational costs, including the costs of
16-21    conducting environmental impact studies or other studies, the cost
16-22    of publicizing the creation of the zone, and the cost of
16-23    implementing the project plan for the zone;
16-24                      (H)  interest before and during construction and
16-25    for one year after completion of construction, whether or not
16-26    capitalized;
 17-1                      (I)  the cost of operating the reinvestment zone
 17-2    and project facilities;
 17-3                      (J)  the amount of any contributions made by the
 17-4    municipality or county from general revenue for the implementation
 17-5    of the project plan; and
 17-6                      (K)  payments made at the discretion of the
 17-7    governing body of the municipality or county that the municipality
 17-8    or county finds necessary or convenient to the creation of the zone
 17-9    or to the implementation of the project plans for the zone.
17-10          SECTION 5.  Subtitle B, Chapter 311, Tax Code, is amended by
17-11    adding Section 311.100 to read as follows:
17-12          Sec. 311.100.  PROCEDURE FOR CREATING REINVESTMENT ZONE IN
17-13    UNINCORPORATED AREAS OF CERTAIN POPULOUS COUNTIES. (a)  The
17-14    governing body of a county with population in excess of 2.1 million
17-15    may designate a contiguous geographic area in the unincorporated
17-16    area of the county to be a reinvestment zone to promote development
17-17    or redevelopment of the area if the governing body determines that
17-18    development or redevelopment would not occur solely through private
17-19    investment in the reasonably foreseeable future.
17-20          (b)  Before designating a reinvestment zone, the governing
17-21    body of the county must prepare a preliminary reinvestment zone
17-22    financing plan.  As soon as the plan is completed, a copy of the
17-23    plan must be sent to the governing body of each taxing unit that
17-24    levies taxes on real property in the proposed zone.
17-25          (c)  Before designating a reinvestment zone, the county must
17-26    hold a public hearing on the creation of the zone and its benefits
 18-1    to the county and to property in the proposed zone.  At the hearing
 18-2    an interested person may speak for or against the creation of the
 18-3    zone, its boundaries, or the concept of tax increment financing.
 18-4    Not later than the seventh day before the date of the hearing,
 18-5    notice of the hearing must be published in a newspaper having
 18-6    general circulation in the county.
 18-7          (d)  A county must provide a reasonable opportunity for the
 18-8    owner of property to protest the inclusion of the property in a
 18-9    proposed reinvestment zone.
18-10          (e)  Not later than the 60th day before the date of the
18-11    public hearing required by Subsection (c), the governing body of
18-12    the county must notify in writing the governing body of each taxing
18-13    unit that levies real property taxes in the proposed reinvestment
18-14    zone that it intends to establish the zone.  The notice must
18-15    contain a description of the proposed boundaries of the zone, the
18-16    tentative plans for the development or redevelopment of the zone,
18-17    and an estimate of the general impact of the proposed zone on
18-18    property values and tax revenues.  The notice may be given later
18-19    than  the 60th day before the date of the public hearing if the
18-20    governing body of each county and school district that levies real
18-21    property taxes in the proposed zone agrees to waive the
18-22    requirement.
18-23          (f)  A taxing unit may request additional information from
18-24    the governing body of the county.  The governing body of the
18-25    municipality shall provide the information requested to the extent
18-26    practicable. In addition to the notice required by Subsection (e),
 19-1    the governing body of the county shall make a formal presentation
 19-2    to the governing body of each school district that levies real
 19-3    property taxes in the  proposed reinvestment zone.  The
 19-4    presentation must include a description of the proposed boundaries
 19-5    of the zone, the tentative plans for the development or
 19-6    redevelopment of the zone, and an estimate of the general impact of
 19-7    the proposed zone on property values and tax revenues. The
 19-8    governing body of the county shall notify each taxing unit that
 19-9    levies real property taxes in  the proposed zone of each
19-10    presentation to be made to a school district under this subsection.
19-11    Members of the governing body of each taxing unit that levies real
19-12    property taxes in the proposed zone may attend a presentation under
19-13    this subsection.  If agreed to by the school districts involved,
19-14    the governing body of the county may make a single presentation to
19-15    more than one school district governing body.
19-16          (g)  Not later than the 15th day after the date on which the
19-17    notice required by Subsection (e) is given, each taxing unit that
19-18    levies real property taxes in the proposed reinvestment zone shall
19-19    designate a representative to meet with the governing body of the
19-20    county to discuss the project plan and the reinvestment zone
19-21    financing plan and shall notify the governing body of the county of
19-22    its designation.  At any time after the 15th day after the date on
19-23    which the notice required by Subsection (e) has been given to every
19-24    taxing unit, the governing body of the county may call a meeting of
19-25    the representatives of the taxing units.  The governing body of the
19-26    county may call as many meetings as it considers necessary.  Each
 20-1    representative shall be notified of each meeting in advance.  At
 20-2    the meetings the governing body of the county and the
 20-3    representatives of the other taxing units may discuss the
 20-4    boundaries of the zone, development in the zone, the tax increment
 20-5    that each taxing unit will contribute to the tax increment fund,
 20-6    the retention by a taxing unit of a portion of its tax increment as
 20-7    permitted by Section 311.013, the exclusion of particular parcels
 20-8    of property from the zone, the board of directors for the zone, and
 20-9    tax collection for the zone.  On the motion of the governing body
20-10    of the county calling the meeting, any other matter relevant to the
20-11    proposed reinvestment zone may be discussed.
20-12          SECTION 6.  With the exception of Subsections (h) and (i),
20-13    Section 431.101, Transportation Code, as added by this Act, the
20-14    change in law made by this Act to Subsection (e), Section 431.101,
20-15    Transportation Code, applies only to a contract entered into by a
20-16    local government corporation on or after the effective date of this
20-17    Act. A contract entered into before the effective date of this Act
20-18    is governed by that section as it existed immediately before the
20-19    effective date of this Act, and the former law is continued in
20-20    effect for that purpose.
20-21          SECTION 7.  This Act takes effect immediately if it receives
20-22    a vote of two-thirds of all the members elected to each house, as
20-23    provided by Section 39, Article III, Texas Constitution.  If this
20-24    Act does not receive the vote necessary for immediate effect, this
20-25    Act takes effect September 1, 2001.