By:  Hartnett, Anchia (Senate Sponsor - West)                     H.B. No. 1188
	(In the Senate - Received from the House April 25, 2005; 
April 26, 2005, read first time and referred to Committee on 
Intergovernmental Relations; May 20, 2005, reported adversely, 
with favorable Committee Substitute by the following vote:  Yeas 4, 
Nays 0; May 20, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 1188                                   By:  Deuell


A BILL TO BE ENTITLED

AN ACT


relating to tax increment financing.                                        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (a), Section 311.005, Tax Code, is 
amended to read as follows:
	(a)  To be designated as a reinvestment zone, an area must:                    
		(1)  substantially arrest or impair the sound growth of 
the municipality creating the zone, retard the provision of housing 
accommodations, or constitute an economic or social liability and 
be a menace to the public health, safety, morals, or welfare in its 
present condition and use because of the presence of:
			(A)  a substantial number of substandard, slum, 
deteriorated, or deteriorating structures;
			(B)  the predominance of defective or inadequate 
sidewalk or street layout;
			(C)  faulty lot layout in relation to size, 
adequacy, accessibility, or usefulness;
			(D)  unsanitary or unsafe conditions;                                        
			(E)  the deterioration of site or other 
improvements;                      
			(F)  tax or special assessment delinquency 
exceeding the fair value of the land;
			(G)  defective or unusual conditions of title; 
[or]       
			(H)  conditions that endanger life or property by 
fire or other cause; or
			(I)  structures, other than single-family 
residential structures, that have been substantially vacant for at 
least five years;
		(2)  be predominantly open and, because of obsolete 
platting, deterioration of structures or site improvements, or 
other factors, substantially impair or arrest the sound growth of 
the municipality; [or]
		(3)  be in a federally assisted new community located 
in the municipality or in an area immediately adjacent to a 
federally assisted new community; or
		(5)  be an area described in a petition requesting that 
the area be designated as a reinvestment zone, if the petition is 
submitted to the governing body of the municipality by the owners of 
property constituting at least 50 percent of the appraised value of 
the property in the area according to the most recent certified 
appraisal roll for the county in which the area is located.
	SECTION 2.  Section 311.008, Tax Code, is amended by adding 
Subsection (e) to read as follows:
	(e)  The implementation of a project plan to alleviate a 
condition described by Section 311.005(a)(1), (2), or (3) and to 
promote development or redevelopment of a reinvestment zone in 
accordance with this chapter serves a public purpose.
	SECTION 3.  Section 311.010, Tax Code, is amended by adding 
Subsection (g) to read as follows:
	(g)  Chapter 252, Local Government Code, does not apply to a 
dedication, pledge, or other use of revenue in the tax increment 
fund for a reinvestment zone by the board of directors of the zone 
in carrying out its powers under Subsection (b).
	SECTION 4.  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, 2005.



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