78R8357 T
By: Menendez H.B. No. 2504
A BILL TO BE ENTITLED
AN ACT
relating to the powers of an Urban Renewal Agency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 374.003, Local Government Code, is
amended to add the following definitions:
(XX) "Educational facility" includes equipment, real
property, and other facilities, including a public school building,
that are used or intended to be used jointly by the municipality or
an urban renewal agency created and an independent school district
or an institution of higher education.
(XX) "Market Price Housing" means housing which does not
qualify as affordable housing as defined by 42 U.S.C. Section 12745
because the income of the tenants of such housing exceeds the limits
provided in 42 U.S.C. Section 12745.
(XX) "Public Housing" shall not include housing owned or
operated by or for an institution of higher education or market
price or senior-citizen housing owned by an Urban Renewal Agency
created under this chapter.
SECTION 2. Section 374.031, Local Government Code, is
amended to read as follows:
(a) An election on the use of tax increment financing for
urban renewal purposes is not required since the constitutional
amendment on tax increment financing was approved by the voters of
the State at a state-wide election held in 1981.
(b) A municipality by ordinance may authorize the use of the
tax increment method of financing prescribed under this subchapter
if a petition is submitted to the governing body of the municipality
by the governing body of an urban renewal agency created under this
Chapter.
(c) After the adoption of an ordinance by the governing body
of the municipality authorizing the use of the tax increment method
of financing prescribed by this subchapter, the governing body of
an urban renewal agency may by resolution establish tax increment
financing zones in all or any portions of an area subject to an
urban renewal plan.
(d) An urban renewal agency may enter into an agreement,
with a school district that is located in whole or in part in an
urban renewal tax increment financing zone created by the urban
renewal agency under this chapter to dedicate revenue from the tax
increment fund to the school district for acquiring, constructing,
or reconstructing an educational facility located in or outside of
the zone.
SECTION 3. Section 374.021, Local Government Code, is
amended to add a new subsection (c) read as follows:
(c) In this section, in addition to the "urban renewal
project powers" provided elsewhere in this Chapter, "urban renewal
project powers" of the municipality which may be exercised by an
urban renewal agency also expressly include the following:
(a) A municipality may acquire land, including
improvements and facilities located thereon, and may construct,
repair, rehabilitate, renovate, equip, or improve, or acquire a
building or other facility or improvement for the purpose of
leasing the land, building, or other facility or improvement for a
purpose consistent with an approved urban renewal plan to:
(1) a political subdivision, state agency or
institution of higher education for public use consistent with an
urban renewal plan approved under this chapter; or
(2) an individual, private for profit or
non-profit corporation, or other private entity for use consistent
with an urban renewal plan approved under this chapter, including
use in manufacturing, industrial, or another commercial or
institutional activity, or for market price housing or student
housing.
(b) The municipality may operate, maintain, sell or
lease the property:
(1) without public notice or bidding; and
(2) on terms the governing body of the
municipality finds acceptable.
(c) A sale under Subsection (b) may be by an
installment sale agreement or otherwise.
(d) The property of the urban renewal agency is public
property used for essential public and governmental purposes. The
urban renewal agency and the urban renewal agency's property are
exempt from all taxes and special assessments of a municipality, a
county, another political subdivision, or the state.
(e) A municipality may form a public facility
corporation in accordance and with the powers provided in Chapter
303 Local Government Code. In addition to the rights, powers and
authority provided to such corporations by Chapter 303 Local
Government Code, such corporation shall also have the following
powers:
(i) to form a partnership or another legal entity
to raise capital for a project to be owned by the partnership or
other legal entity; and
(ii) to purchase, receive, subscribe for, or
otherwise acquire, own, hold, vote, use, employ, mortgage, lend,
pledge, sell, or otherwise dispose of, and otherwise use and deal in
and with:
(1) shares and other interests in or
obligations of other domestic or foreign corporations, whether
profit or nonprofit, associations, partnerships, or individuals;
or
(2) direct or indirect obligations of the
United States or of any other government, state, political
subdivision of a state, territory, government district, or any
instrumentality of such a governmental entity.
(iii) The property of such a corporation is
public property used for essential public and governmental
purposes. The corporation and the corporation's property are
exempt from all taxes and special assessments of a municipality, a
county, another political subdivision, or the state.
(iv) all the powers of a non-profit corporation
under the Texas Non-Profit Corporation Act.
SECTION 4. Section 303.003, Local Government Code, is
amended to add a new subparagraph (D) to subsection (10) to read as
follows:
(D) an urban renewal agency created under Chapter
374, Local Government Code.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.