1-1     By:  Van de Putte                                      S.B. No. 274
 1-2           (In the Senate - Filed January 17, 2001; January 22, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; February 15, 2001, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     February 15, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 274                  By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the contracting authority of, authorized uses for tax
1-11     proceeds by, and eligibility for participation in tax increment
1-12     financing of Bexar County Hospital District.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Subchapter E, Chapter 281, Health and Safety
1-15     Code, is amended by adding Section 281.095 to read as follows:
1-16           Sec. 281.095.  PROHIBITION AGAINST PARTICIPATION IN TAX
1-17     INCREMENT FINANCING:  BEXAR COUNTY HOSPITAL DISTRICT.  (a)  In this
1-18     section, "district" means Bexar County Hospital District.
1-19           (b)  The district may not enter into a contract or agreement
1-20     to pay into a tax increment fund any of the district's tax
1-21     increment produced from property located in a reinvestment zone
1-22     under Chapter 311, Tax Code.  This subsection does not affect the
1-23     validity of an agreement entered into by the district before
1-24     September 1, 2001, to pay a portion of the district's tax increment
1-25     into a tax increment fund under Chapter 311, Tax Code.
1-26           (c)  The proceeds of a tax imposed under Section 281.121 may
1-27     not be used to make a payment into a tax increment fund under
1-28     Chapter 311, Tax Code, if that payment is prohibited by this
1-29     section.
1-30           (d)  A project plan or reinvestment zone financing plan
1-31     approved under Section 311.011, Tax Code, on or after September 1,
1-32     2001, may not include any of the district's tax increment or any
1-33     other funds derived from the district as a source of revenue to
1-34     finance or pay project costs.
1-35           (e)  A project plan or reinvestment zone financing plan
1-36     approved under Section 311.011, Tax Code, before September 1, 2001,
1-37     may not be amended on or after September 1, 2001, to:
1-38                 (1)  increase the percentage of the district's tax
1-39     increment to be contributed to a tax increment fund;
1-40                 (2)  increase the time during which the district is to
1-41     contribute any of the district's tax increment to a tax increment
1-42     fund;
1-43                 (3)  allow or require the district, if it was not
1-44     included in the originally approved project plan or reinvestment
1-45     zone financing plan, to contribute any of the district's tax
1-46     increment or other money to a tax increment fund; or
1-47                 (4)  allow the district to pay into a tax increment
1-48     fund any of the district's tax increment derived from property
1-49     added to the reinvestment zone on or after September 1, 2001.
1-50           (f)  An agreement entered into by the district under Section
1-51     311.013(f), Tax Code, before September 1, 2001, may not be amended
1-52     on or after September 1, 2001, to include any of the conditions
1-53     prohibited by Subsection (e).
1-54           SECTION 2.  This Act takes effect September 1, 2001.
1-55                                  * * * * *