By Van de Putte S.B. No. 274
77R3996 JMG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the contracting authority of, authorized uses for tax
1-3 proceeds by, and eligibility for participation in tax increment
1-4 financing of certain hospital districts.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 281.051, Health and Safety Code, is
1-7 amended by adding Subsection (d) to read as follows:
1-8 (d) The board may not enter into a contract or agreement to
1-9 pay into a tax increment fund any of the district's tax increment
1-10 produced from property located in a reinvestment zone designated
1-11 under Section 311.005(a), Tax Code, or in an area added to a
1-12 reinvestment zone under Section 311.007, Tax Code.
1-13 SECTION 2. Section 281.121, Health and Safety Code, is
1-14 amended by redesignating existing Subsection (d) as Subsection (e)
1-15 and adding a new Subsection (d) to read as follows:
1-16 (d) The proceeds of the tax may not be used to pay into or
1-17 otherwise participate in a tax increment fund established under
1-18 Chapter 311, Tax Code, if that payment or participation is
1-19 prohibited by Chapter 311, Tax Code.
1-20 (e) The county tax assessor-collector shall collect the tax.
1-21 SECTION 3. Section 311.002(4), Tax Code, is amended to read
1-22 as follows:
1-23 (4) "Taxing unit" has the meaning assigned by Section
1-24 1.04, except that for a reinvestment zone created on or after
2-1 September 1, 2001, the term does not include a hospital district
2-2 established under Chapter 281, Health and Safety Code.
2-3 SECTION 4. Section 311.011, Tax Code, is amended by amending
2-4 Subsection (c), adding a new Subsection (f), and redesignating
2-5 existing Subsections (f) and (g) as Subsections (g) and (h),
2-6 respectively, to read as follows:
2-7 (c) The reinvestment zone financing plan must include:
2-8 (1) a detailed list describing the estimated project
2-9 costs of the zone, including administrative expenses;
2-10 (2) a statement listing the kind, number, and location
2-11 of all proposed public works or public improvements in the zone;
2-12 (3) an economic feasibility study;
2-13 (4) the estimated amount of bonded indebtedness to be
2-14 incurred;
2-15 (5) the time when related costs or monetary
2-16 obligations are to be incurred;
2-17 (6) a description of the methods of financing all
2-18 estimated project costs and the expected sources of revenue to
2-19 finance or pay project costs, including the percentage of tax
2-20 increment to be derived from the property taxes of each taxing unit
2-21 that levies taxes on real property in the zone, except that a
2-22 project plan or reinvestment zone financing plan approved under
2-23 this section on or after September 1, 2001, may not include a tax
2-24 increment or any other funds derived from a hospital district
2-25 established under Chapter 281, Health and Safety Code, as a source
2-26 of revenue to finance or pay project costs;
2-27 (7) the current total appraised value of taxable real
3-1 property in the zone;
3-2 (8) the estimated captured appraised value of the zone
3-3 during each year of its existence; and
3-4 (9) the duration of the zone.
3-5 (f) A project plan or reinvestment zone financing plan
3-6 approved before September 1, 2001, may not be amended on or after
3-7 September 1, 2001, to:
3-8 (1) increase the percentage of a tax increment to be
3-9 contributed by a hospital district established under Chapter 281,
3-10 Health and Safety Code, to a tax increment fund;
3-11 (2) increase the duration of time a hospital district
3-12 established under Chapter 281, Health and Safety Code, is to
3-13 contribute to a tax increment fund;
3-14 (3) allow a hospital district established under
3-15 Chapter 281, Health and Safety Code, that was not included in the
3-16 originally approved project plan or reinvestment zone financing
3-17 plan to contribute a tax increment or any other funds to a tax
3-18 increment fund; or
3-19 (4) allow a hospital district established under
3-20 Chapter 281, Health and Safety Code, to pay into a tax increment
3-21 fund any additional tax increment or funds derived from property
3-22 added to the reinvestment zone under this section or Section
3-23 311.007 or after September 1, 2001.
3-24 (g) [(f)] In a zone designated under Section 311.005(a)(5)
3-25 that is located in a county with a population of 2.1 million or
3-26 more, the project plan must provide that at least one-third of the
3-27 tax increment of the zone be used to provide affordable housing
4-1 during the term of the zone.
4-2 (h) [(g)] An amendment to the project plan or the
4-3 reinvestment zone financing plan for a zone does not apply to a
4-4 school district that participates in the zone unless the governing
4-5 body of the school district by official action approves the
4-6 amendment, if the amendment:
4-7 (1) has the effect of directly or indirectly
4-8 increasing the percentage or amount of the tax increment to be
4-9 contributed by the school district; or
4-10 (2) requires or authorizes the municipality creating
4-11 the zone to issue additional tax increment bonds or notes.
4-12 SECTION 5. Section 311.013(f), Tax Code, is amended to read
4-13 as follows:
4-14 (f) A taxing unit is not required to pay into the tax
4-15 increment fund any of its tax increment produced from property
4-16 located in a reinvestment zone designated under Section 311.005(a)
4-17 or in an area added to a reinvestment zone under Section 311.007
4-18 unless the taxing unit enters into an agreement to do so with the
4-19 governing body of the municipality that created the zone. A taxing
4-20 unit may enter into an agreement under this subsection at any time
4-21 before or after the zone is created or enlarged. The agreement may
4-22 include conditions for payment of that tax increment into the fund
4-23 and must specify the portion of the tax increment to be paid into
4-24 the fund and the years for which that tax increment is to be paid
4-25 into the fund. A hospital district established under Chapter 281,
4-26 Health and Safety Code, may not enter into an agreement under this
4-27 subsection on or after September 1, 2001. An agreement entered into
5-1 by that hospital district under this subsection before September 1,
5-2 2001, may not be amended on or after September 1, 2001, to
5-3 include any of the conditions prohibited by Section 311.011(f).
5-4 The agreement and the conditions in the agreement are binding on
5-5 the taxing unit, the municipality, and the board of directors of
5-6 the zone.
5-7 SECTION 6. (a) Except as expressly provided by this Act, the
5-8 changes in law made by this Act apply only to a reinvestment zone
5-9 created, enlarged, or modified under Chapter 311, Tax Code, as
5-10 amended by this Act, on or after September 1, 2001. The creation
5-11 of a reinvestment zone before September 1, 2001, and the
5-12 administration of a reinvestment zone that was created, enlarged,
5-13 or modified before September 1, 2001, are covered by the law in
5-14 effect immediately before September 1, 2001, and the former law is
5-15 continued in effect for that purpose.
5-16 (b) Except as expressly provided by this Act, the changes in
5-17 law made by this Act apply only to a project plan or reinvestment
5-18 zone financing plan approved or amended under Chapter 311, Tax
5-19 Code, as amended by this Act, on or after September 1, 2001. The
5-20 approval or amendment of a project plan or reinvestment zone
5-21 financing plan before September 1, 2001, is covered by the law in
5-22 effect immediately before September 1, 2001, and the former law is
5-23 continued in effect for that purpose.
5-24 SECTION 7. This Act takes effect September 1, 2001.