By: Allen of Dallas, Jackson H.B. No. 2120
(Senate Sponsor - Lindsay)
(In the Senate - Received from the House May 10, 2005;
May 12, 2005, read first time and referred to Committee on
Jurisprudence; May 20, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 6, Nays 0;
May 20, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 2120 By: Harris
A BILL TO BE ENTITLED
AN ACT
relating to the administration and powers of county government.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article 14.06(a), Code of Criminal Procedure, is
amended to read as follows:
(a) Except as provided by Subsection (b), in each case
enumerated in this Code, the person making the arrest or the person
having custody of the person arrested shall take the person
arrested or have him taken without unnecessary delay, but not later
than 48 hours after the person is arrested, before the magistrate
who may have ordered the arrest, before some magistrate of the
county where the arrest was made without an order, or, [if
necessary] to provide more expeditiously to the person arrested the
warnings described by Article 15.17 of this Code, before a
magistrate in any other [a] county of this state [bordering the
county in which the arrest was made]. The magistrate shall
immediately perform the duties described in Article 15.17 of this
Code.
SECTION 2. Article 15.16, Code of Criminal Procedure, is
amended to read as follows:
Art. 15.16. HOW WARRANT IS EXECUTED. (a) The officer or
person executing a warrant of arrest shall without unnecessary
delay take the person or have him taken before the magistrate who
issued the warrant or before the magistrate named in the warrant, if
the magistrate is in the same county where the person is arrested.
If the issuing or named magistrate is in another county, the person
arrested shall without unnecessary delay be taken before some
magistrate in the county in which he was arrested.
(b) Notwithstanding Subsection (a), to provide more
expeditiously to the person arrested the warnings described by
Article 15.17, the officer or person executing the arrest warrant
may as permitted by that article take the person arrested before a
magistrate in a county other than the county of arrest.
SECTION 3. Article 15.17(a), Code of Criminal Procedure, is
amended to read as follows:
(a) In each case enumerated in this Code, the person making
the arrest or the person having custody of the person arrested shall
without unnecessary delay, but not later than 48 hours after the
person is arrested, take the person arrested or have him taken
before some magistrate of the county where the accused was arrested
or, [if necessary] to provide more expeditiously to the person
arrested the warnings described by this article, before a
magistrate in any other [a] county of this state [bordering the
county in which the arrest was made]. The arrested person may be
taken before the magistrate in person or the image of the arrested
person may be presented [broadcast by closed circuit television] to
the magistrate by means of an electronic broadcast system. The
magistrate shall inform in clear language the person arrested,
either in person or through the electronic broadcast system [by
closed circuit television], of the accusation against him and of
any affidavit filed therewith, of his right to retain counsel, of
his right to remain silent, of his right to have an attorney present
during any interview with peace officers or attorneys representing
the state, of his right to terminate the interview at any time, and
of his right to have an examining trial. The magistrate shall also
inform the person arrested of the person's right to request the
appointment of counsel if the person cannot afford counsel. The
magistrate shall inform the person arrested of the procedures for
requesting appointment of counsel. If the person does not speak and
understand the English language or is deaf, the magistrate shall
inform the person in a manner consistent with Articles 38.30 and
38.31, as appropriate. The magistrate shall ensure that reasonable
assistance in completing the necessary forms for requesting
appointment of counsel is provided to the person at the same time.
If the person arrested is indigent and requests appointment of
counsel and if the magistrate is authorized under Article 26.04 to
appoint counsel for indigent defendants in the county, the
magistrate shall appoint counsel in accordance with Article 1.051.
If the magistrate is not authorized to appoint counsel, the
magistrate shall without unnecessary delay, but not later than 24
hours after the person arrested requests appointment of counsel,
transmit, or cause to be transmitted to the court or to the courts'
designee authorized under Article 26.04 to appoint counsel in the
county, the forms requesting the appointment of counsel. The
magistrate shall also inform the person arrested that he is not
required to make a statement and that any statement made by him may
be used against him. The magistrate shall allow the person arrested
reasonable time and opportunity to consult counsel and shall, after
determining whether the person is currently on bail for a separate
criminal offense, admit the person arrested to bail if allowed by
law. [A closed circuit television system may not be used under this
subsection unless the system provides for a two-way communication
of image and sound between the arrested person and the magistrate.]
A recording of the communication between the arrested person and
the magistrate shall be made. The recording shall be preserved
until the earlier of the following dates: (1) the date on which the
pretrial hearing ends; or (2) the 91st day after the date on which
the recording is made if the person is charged with a misdemeanor or
the 120th day after the date on which the recording is made if the
person is charged with a felony. The counsel for the defendant may
obtain a copy of the recording on payment of a reasonable amount to
cover costs of reproduction. For purposes of this subsection,
"electronic broadcast system" means a two-way electronic
communication of image and sound between the arrested person and
the magistrate and includes secure Internet videoconferencing.
SECTION 4. Article 15.18, Code of Criminal Procedure, is
amended to read as follows:
Art. 15.18. ARREST FOR OUT-OF-COUNTY OFFENSE. (a) A person
arrested under a warrant issued in a county other than the one in
which the person is arrested shall be taken before a magistrate of
the county where the arrest takes place or, to provide more
expeditiously to the arrested person the warnings described by
Article 15.17, before a magistrate in any other county of this
state, including the county where the warrant was issued. The
magistrate [who] shall:
(1) take bail, if allowed by law, and, if without
jurisdiction, immediately transmit the bond taken to the court
having jurisdiction of the offense; or
(2) in the case of a person arrested under warrant for
an offense punishable by fine only, accept a written plea of guilty
or nolo contendere, set a fine, determine costs, accept payment of
the fine and costs, give credit for time served, determine
indigency, or, on satisfaction of the judgment, discharge the
defendant, as the case may indicate.
(b) Before the 11th business day after the date a magistrate
accepts a written plea of guilty or nolo contendere in a case under
Subsection (a)(2), the magistrate shall, if without jurisdiction,
transmit to the court having jurisdiction of the offense:
(1) the written plea;
(2) any orders entered in the case; and
(3) any fine or costs collected in the case.
(c) The arrested person may be taken before a magistrate by
means of an electronic broadcast system as provided by and subject
to the requirements of Article 15.17.
SECTION 5. Article 15.19(b), Code of Criminal Procedure, is
amended to read as follows:
(b) If a person is arrested and taken before a magistrate in
a county other than [bordering] the county in which the arrest is
made [under the provisions of Article 15.17(a) of this code] and if
the person is remanded to custody, the person may be confined in a
jail in the county in which the magistrate serves for a period of
not more than 72 hours after the arrest before being transferred to
the county jail of the county in which the arrest occurred.
SECTION 6. Section 403.1042(b), Government Code, is amended
to read as follows:
(b) The advisory committee is composed of 11 members
appointed as follows:
(1) one member appointed by the comptroller to
represent a public hospital or hospital district located in a
county with a population of 50,000 or less or a public hospital
owned or maintained by a municipality;
(2) one member appointed by the political subdivision
that, in the year preceding the appointment, received the largest
annual distribution paid from the account;
(3) one member appointed by the political subdivision
that, in the year preceding the appointment, received the second
largest annual distribution paid from the account;
(4) four members appointed by the Texas Conference of
Urban Counties from nominations received from political
subdivisions that,[:
[(A)] in the year preceding the appointment,
received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th
largest annual distribution paid from the account[; and
[(B) do not have an appointee serving on the
advisory committee at the time of appointment];
(5) one member appointed by the County Judges and
Commissioners Association of Texas;
(6) one member appointed by the North and East Texas
County Judges and Commissioners Association;
(7) one member appointed by the South Texas County
Judges and Commissioners Association; and
(8) one member appointed by the West Texas County
Judges and Commissioners Association.
SECTION 7. Section 511.009(c), Government Code, is amended
to read as follows:
(c) At any time and on the application of the county
commissioners court or sheriff, the commission may grant reasonable
variances, including variances that are to last for the life of a
facility, clearly justified by the facts, for operation of a
facility not in strict compliance with state law. A variance may
not permit unhealthy, unsanitary, or unsafe conditions.
SECTION 8. Sections 12.137(b) and (c), Health and Safety
Code, are amended to read as follows:
(b) The advisory committee is composed of 11 members
appointed [by the advisory committee] as follows:
(1) one member appointed [nominated] by the board to
represent a public hospital or hospital district located in a
county with a population of 50,000 or less or a public hospital
owned or maintained by a municipality;
(2) one member appointed [nominated] by the political
subdivision that, in the year preceding the appointment, received
the largest annual distribution paid from the account;
(3) one member appointed [nominated] by the political
subdivision that, in the year preceding the appointment, received
the second largest annual distribution paid from the account;
(4) four members appointed [nominated] by the Texas
Conference of Urban Counties from nominations received from
political subdivisions that[:
[(A)] in the year preceding the appointment,
received the 3rd, 4th, 5th, 6th, 7th, 8th, 9th, 10th, 11th, or 12th
largest annual distribution paid from the account; [and
[(B) do not have a nominee serving on the
advisory committee at the time of appointment;]
(5) one member appointed [nominated] by the County
Judges and Commissioners Association of Texas;
(6) one member appointed [nominated] by the North and
East Texas County Judges and Commissioners Association;
(7) one member appointed [nominated] by the South
Texas County Judges and Commissioners Association; and
(8) one member appointed [nominated] by the West Texas
County Judges and Commissioners Association.
(c) A commissioners court that sets the tax rate for a
hospital district must approve any person appointed [nominated] by
the hospital district to serve on the advisory committee.
SECTION 9. Subchapter C, Chapter 281, Health and Safety
Code, is amended by adding Section 281.0475 to read as follows:
Sec. 281.0475. RENAMING DISTRICT. (a) This section
applies only to a district created in a county with a population of
more than 800,000 that was not included in the boundaries of a
hospital district before September 1, 2003.
(b) With the approval of the commissioners court, the board
may rename the district.
SECTION 10. Section 81.028, Local Government Code, is
amended by adding Subsection (b-1) to read as follows:
(b-1) A county judge may file a standing order of emergency
delegation of authority that clearly indicates the types of orders
or official documents that the officer or employee may sign on
behalf of the county judge in the event of an emergency or disaster.
SECTION 11. Section 83.002, Local Government Code, is
amended to read as follows:
Sec. 83.002. BOND. (a) The county treasurer, before
beginning to perform the duties of office, must execute a bond with
a surety company authorized to do business in this state as a
surety. The bond [that] must be:
(1) approved by the commissioners court;
(2) [and] made payable to the county judge in an amount
established by the commissioners court not to exceed one-half of
one percent of the largest amount budgeted for general county
maintenance and operations for any fiscal year of the county
beginning during the term of office preceding the term for which the
bond is to be given except that the amount may not be less than
$5,000 or more than $500,000; and
(3) [. The bond must be] conditioned that the
treasurer will[:
[(1)] faithfully execute the duties of office[;
[(2) remit according to law all funds received as
county treasurer; and
[(3) render an account of all funds received to the
commissioners court at each regular term of the court].
(b) The treasurer must take and subscribe the official oath,
which must be endorsed on the bond. The bond and the oath shall be
recorded in the county clerk's office. The commissioners court
may, at any time, require the treasurer to obtain a new or
additional bond if the court considers the existing bond
insufficient or doubtful. The bond may not exceed the maximum
amount provided by Subsection (a). The bond must be acquired within
20 days after the date notice of the requirement has been given by
the commissioners court. The failure of a treasurer to obtain a
bond required by this subsection subjects the treasurer to removal
under Section 83.004.
SECTION 12. Section 83.003(c), Local Government Code, is
amended to read as follows:
(c) The introductory course required by Subsection (a) and
[at least 10 hours of] the continuing education required by
Subsection (b) must be sponsored or cosponsored by [taken at] an
accredited public institution of higher education. [The remaining
required classroom hours, wherever taken, must be certified by an
accredited public institution of higher education.]
SECTION 13. Sections 83.004(a) and (c), Local Government
Code, are amended to read as follows:
(a) If a person elected to the office of county treasurer
fails to provide an adequate bond as required by Section 83.002(a)
and to take the official oath on or before assuming the office
[within 20 days after the date the certificate of election is
received], the county judge may [shall] declare the office vacant.
(c) A vacancy in the office of county treasurer shall be
filled as provided by Section 87.041. The person appointed to fill
the vacancy shall, on or before entering upon the discharge of the
duties of office [and within 20 days after the date notice of the
appointment is received], take the official oath and obtain the
same surety bond as required by Section 83.002(a) for an elected
county treasurer.
SECTION 14. Section 85.001(a), Local Government Code, is
amended to read as follows:
(a) A person elected as sheriff, before beginning to perform
the duties of office, must execute a bond with:
(1) two or more good and sufficient sureties; or
(2) a solvent surety company authorized to do business
in this state.
SECTION 15. Section 86.002(a), Local Government Code, is
amended to read as follows:
(a) Before entering on the duties of office, a person who is
elected to the office of constable must execute a bond with two or
more good and sufficient sureties or with a solvent surety company
authorized to do business in this state. The bond must be payable
to the governor and the governor's successors in office and
conditioned that the constable will faithfully perform the duties
imposed by law. The bond must be approved by the commissioners
court of the county. The commissioners court shall set the bond in
an amount of not less than $500 or more than $1,500.
SECTION 16. The heading to Section 89.001, Local Government
Code, is amended to read as follows:
Sec. 89.001. SPECIAL COUNSEL IN POPULOUS COUNTIES [WITH
POPULATION OF MORE THAN ONE MILLION].
SECTION 17. Section 89.001(a), Local Government Code, is
amended to read as follows:
(a) The commissioners court of a county with a population of
more than 1.25 [one] million may employ an attorney as special
counsel.
SECTION 18. Section 89.0041(b), Local Government Code, is
amended to read as follows:
(b) The written notice must be delivered by certified or
registered mail by the 30th business day after suit is filed and
contain:
(1) the style and cause number of the suit;
(2) the court in which the suit was filed; [and]
(3) the date on which the suit was filed; and
(4) the name of the person filing suit.
SECTION 19. Section 157.002(a), Local Government Code, is
amended to read as follows:
(a) The commissioners court by rule may provide for medical
care and hospitalization and may provide for compensation,
accident, hospital, and disability insurance for the following
persons if their salaries are paid from the funds of the county or
funds of a flood control district located entirely in the county, or
funds of a hospital district described by Section 281.0475, Health
and Safety Code, located entirely in the county, or if they are
employees of another governmental entity for which the county is
obligated to provide benefits:
(1) deputies, assistants, and other employees of the
county, or of the flood control district, or of the hospital
district, who work under the commissioners court or its appointees;
(2) county and district officers and their deputies
and assistants appointed under Subchapter A, Chapter 151;
(3) employees appointed under Section 10(a), Article
42.12, Code of Criminal Procedure;
(4) any retired person formerly holding any status
listed above; and
(5) the dependents of any person listed above.
SECTION 20. Section 157.003(b), Local Government Code, is
amended to read as follows:
(b) A person who elects to participate in the health plan
must authorize contributions to the fund by salary deduction. The
authorization must be in writing and must be given at the time of
the person's employment or on the effective date of the rules. The
county and any participating flood control district or hospital
district shall also contribute to the fund. A person who does not
contribute to the plan may not receive hospitalization or insurance
benefits.
SECTION 21. Subchapter A, Chapter 157, Local Government
Code, is amended by adding Section 157.008 to read as follows:
Sec. 157.008. INSURANCE POOL OR INSURANCE COMPANY NOT
CREATED. If a county provides for medical care and hospitalization
or provides for compensation, accident, hospital, and disability
insurance to persons listed under Section 157.002(a)(1), the
county:
(1) has not created an insurance pool with a flood
control district, hospital district, or other governmental entity,
unless the county enters into a contract under Chapter 172; and
(2) is not an insurance company subject to the
Insurance Code or to regulation by the Texas Department of
Insurance as an insurance company.
SECTION 22. Section 157.101(a), Local Government Code, is
amended to read as follows:
(a) A commissioners court by rule, including through an
intergovernmental risk pool organized under Chapter 172, may
provide for group health and related benefits, including medical
care, surgical care, hospitalization, and pharmaceutical, life,
accident, disability, long-term care, vision, dental, mental
health, and substance abuse benefits, for the following persons if
their salaries are paid from the funds of the county or funds of a
flood control district located entirely in the county, or funds of a
hospital district described by Section 281.0475, Health and Safety
Code, located entirely in the county, or if they are employees of
another governmental entity for which the county is obligated to
provide benefits:
(1) deputies, assistants, and other employees of the
county, or of the flood control district, or of the hospital
district, who work under the commissioners court or its appointees;
(2) county and district officers and their deputies
and assistants appointed under Subchapter A, Chapter 151;
(3) employees of a community supervision and
corrections department established under Chapter 76, Government
Code;
(4) a retired person formerly holding a status listed
in Subdivisions (1)-(3); and
(5) the dependents of a person listed in Subdivisions
(1)-(4).
SECTION 23. Section 157.102(b), Local Government Code, is
amended to read as follows:
(b) A person who elects to participate in any aspect of the
group health and related benefits plan and is required to make
contributions toward the payment of the plan must authorize
contributions to the fund by salary deduction. The authorization
must be submitted in writing to the county officer authorized by the
commissioners court to administer payroll deductions. The
authorization remains in effect as long as the person is required to
make contributions toward the payment of the plan. If the amount of
the person's required contributions changes after the date the
request for deduction is submitted, the county shall notify the
person of the change before the change takes effect. The county and
any participating flood control district or hospital district may
also contribute to the fund.
SECTION 24. Subchapter F, Chapter 157, Local Government
Code, is amended by adding Section 157.106 to read as follows:
Sec. 157.106. INSURANCE POOL OR INSURANCE COMPANY NOT
CREATED. If a county provides for group health and related
benefits, including medical care, surgical care, hospitalization,
and pharmaceutical, life, accident, disability, long-term care,
vision, dental, mental health, and substance abuse benefits, to
persons listed under Section 157.101(a)(1), the county:
(1) has not created an insurance pool with a flood
control district, hospital district, or other governmental entity,
unless the county enters into a contract under Chapter 172; and
(2) is not an insurance company subject to the
Insurance Code or to regulation by the Texas Department of
Insurance as an insurance company.
SECTION 25. Subchapter B, Chapter 292, Local Government
Code, is amended by adding Section 292.030 to read as follows:
Sec. 292.030. FACILITIES IN UNINCORPORATED AREA OF COUNTY.
(a) The commissioners court of a county may purchase, construct,
reconstruct, improve, equip, or provide for by other means,
including by lease or lease with an option to purchase, a branch
office in the unincorporated area of the county.
(b) Any county officer may maintain an office and the county
may provide any county service at the branch office authorized by
this section. The maintenance of an office or the provision of a
service at the branch office must be in addition to an office
maintained or service provided at any other location required by
law.
SECTION 26. Section 351.0415, Local Government Code, is
amended to read as follows:
Sec. 351.0415. COMMISSARY OPERATION BY SHERIFF OR PRIVATE
VENDOR. (a) The sheriff of a county or the sheriff's designee,
including a private vendor operating a detention facility under
contract with the county, may operate, or contract with another
person to operate, a commissary for the use of the inmates
[prisoners] committed to the county jail or to a detention facility
operated by the private vendor, as appropriate. The commissary
must be operated in accordance with rules adopted by the Commission
on Jail Standards.
(b) The sheriff or the sheriff's designee:
(1) has exclusive control of the commissary funds;
(2) shall maintain commissary accounts showing the
amount of proceeds from the commissary operation and the amount and
purpose of disbursements made from the proceeds; and
(3) shall accept new bids to renew contracts of
commissary suppliers every five years.
(c) The sheriff or the sheriff's designee may use commissary
proceeds only to:
(1) fund, staff, and equip a program addressing the
social needs of the inmates [county prisoners], including an
educational or recreational program and religious or
rehabilitative counseling;
(2) supply inmates [county prisoners] with clothing,
writing materials, and hygiene supplies;
(3) establish, staff, and equip the commissary
operation and fund the salaries of staff responsible for managing
the inmates' commissary accounts; [or]
(4) fund, staff, and equip both an educational and a
law library for the educational use of inmates; or
(5) fund physical plant improvements, technology,
equipment, programs, services, and activities that provide for the
well-being, health, safety, and security of the inmates and the
facility [county prisoners].
(d) For a jail under the supervision of the sheriff, at [At]
least once each county fiscal year, or more often if the
commissioners court desires, the auditor shall, without advance
notice, fully examine the jail commissary accounts. The auditor
shall verify the correctness of the accounts and report the
findings of the examination to the commissioners court of the
county at its next term beginning after the date the audit is
completed.
(e) A private vendor operating a detention facility under
contract with the county shall ensure that the facility commissary
accounts are annually examined by an independent auditor.
(f) When entering into a contract under Subsection (a), the
sheriff or the sheriff's designee shall consider the following:
(1) whether the contract should provide for a fixed
rate of return combined with a sales growth incentive;
(2) the menu items offered by the provider and the
price of those items;
(3) the value, as measured by a best value standard,
and benefits to inmates and the commissary, as offered by the
provider;
(4) safety and security procedures to be performed by
the provider; and
(5) the performance record of the provider, including
service availability, reliability, and efficiency.
(g) Commissary proceeds may be used only for the purposes
described in Subsection (c). A commissioners court may not use
commissary proceeds to fund the budgetary operating expenses of a
county jail.
SECTION 27. Section 351.04155, Local Government Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) This section applies only to a county that:
(1) has a population of one million or more; [and]
(2) has two municipalities with a population of
200,000 [300,000] or more; and
(3) is adjacent to a county with a population of one
million or more.
(c) A purchase made by the sheriff using commissary proceeds
is subject to the competitive purchasing procedures contained in
Subchapter C, Chapter 262. For the purpose of complying with that
subchapter, a reference in that subchapter to "commissioners court"
means the sheriff and a reference to "the county official who makes
purchases for the county" means the sheriff or the sheriff's
designee.
SECTION 28. Section 21.001, Property Code, is amended to
read as follows:
Sec. 21.001. CONCURRENT JURISDICTION. (a) District courts
and county courts at law have concurrent jurisdiction in eminent
domain cases. A county court has no jurisdiction in eminent domain
cases.
(b) District courts and county courts at law have concurrent
jurisdiction under this section in cases in every county in this
state. To the extent of a conflict between this subsection and
another law, this subsection controls.
SECTION 29. Section 21.013, Property Code, is amended by
amending Subsection (b) and adding Subsection (e) to read as
follows:
(b) Except where otherwise provided by law, a party
initiating a condemnation proceeding under this chapter [in a
county in which there is one or more county courts at law with
jurisdiction] shall file the petition with any clerk authorized to
handle such filings in a [for that] court [or courts] that has
jurisdiction over the proceeding.
(e) The filing fee for a petition filed under this section
is due at the time of filing in accordance with Section 51.317,
Government Code.
SECTION 30. Section 311.002(1), Tax Code, is amended to
read as follows:
(1) "Project costs" means the expenditures made or
estimated to be made and monetary obligations incurred or estimated
to be incurred by the municipality or county establishing a
reinvestment zone that are listed in the project plan as costs of
public works or public improvements in the zone, plus other costs
incidental to those expenditures and obligations. "Project costs"
include:
(A) capital costs, including the actual costs of
the acquisition and construction of public works, public
improvements, new buildings, structures, and fixtures; the actual
costs of the acquisition, demolition, alteration, remodeling,
repair, or reconstruction of existing buildings, structures, and
fixtures; and the actual costs of the acquisition of land and
equipment and the clearing and grading of land;
(B) financing costs, including all interest paid
to holders of evidences of indebtedness or other obligations issued
to pay for project costs and any premium paid over the principal
amount of the obligations because of the redemption of the
obligations before maturity;
(C) real property assembly costs;
(D) professional service costs, including those
incurred for architectural, planning, engineering, and legal
advice and services;
(E) imputed administrative costs, including
reasonable charges for the time spent by employees of the
municipality or county in connection with the implementation of a
project plan;
(F) relocation costs;
(G) organizational costs, including the costs of
conducting environmental impact studies or other studies, the cost
of publicizing the creation of the zone, and the cost of
implementing the project plan for the zone;
(H) interest before and during construction and
for one year after completion of construction, whether or not
capitalized;
(I) the cost of operating the reinvestment zone
and project facilities;
(J) the amount of any contributions made by the
municipality or county from general revenue for the implementation
of the project plan; and
(K) payments made at the discretion of the
governing body of the municipality or county that the governing
body [municipality] finds necessary or convenient to the creation
of the zone or to the implementation of the project plans for the
zone.
SECTION 31. Sections 311.003 and 311.004, Tax Code, are
amended to read as follows:
Sec. 311.003. PROCEDURE FOR CREATING REINVESTMENT ZONE.
(a) The governing body of a municipality by ordinance or the
governing body of a county by order may designate a contiguous
geographic area in the jurisdiction of the municipality or county
to be a reinvestment zone to promote development or redevelopment
of the area if the governing body determines that development or
redevelopment would not occur solely through private investment in
the reasonably foreseeable future.
(b) Before adopting an ordinance or order providing for a
reinvestment zone, the governing body of the municipality or county
must prepare a preliminary reinvestment zone financing plan. As
soon as the plan is completed, a copy of the plan must be sent to the
governing body of each taxing unit that levies taxes on real
property in the proposed zone.
(c) Before adopting an ordinance or order providing for a
reinvestment zone, the municipality or county must hold a public
hearing on the creation of the zone and its benefits to the
municipality or county and to property in the proposed zone. At the
hearing an interested person may speak for or against the creation
of the zone, its boundaries, or the concept of tax increment
financing. Not later than the seventh day before the date of the
hearing, notice of the hearing must be published in a newspaper
having general circulation in the municipality or county.
(d) A municipality or county proposing to designate a
reinvestment zone must provide a reasonable opportunity for the
owner of property to protest the inclusion of the property in a
proposed reinvestment zone.
(e) Not later than the 60th day before the date of the public
hearing required by Subsection (c), the governing body of the
municipality or county must notify in writing the governing body of
each other taxing unit that levies real property taxes in the
proposed reinvestment zone that it intends to establish the zone.
The notice must contain a description of the proposed boundaries of
the zone, the tentative plans for the development or redevelopment
of the zone, and an estimate of the general impact of the proposed
zone on property values and tax revenues. The notice may be given
later than the 60th day before the date of the public hearing if the
governing body of each municipality, county, and school district,
other than the municipality or county proposing to designate a
reinvestment zone, that levies real property taxes in the proposed
zone agrees to waive the requirement.
(f) A taxing unit may request additional information from
the governing body of the municipality or county proposing to
designate a reinvestment zone. The governing body of the
municipality or county shall provide the information requested to
the extent practicable. In addition to the notice required by
Subsection (e), the governing body of the municipality or county
proposing to designate a reinvestment zone shall make a formal
presentation to the governing body of each municipality, county, or
school district, other than the municipality or county proposing to
designate the zone, that levies real property taxes in the proposed
reinvestment zone. The presentation must include a description of
the proposed boundaries of the zone, the tentative plans for the
development or redevelopment of the zone, and an estimate of the
general impact of the proposed zone on property values and tax
revenues. The governing body of the municipality or county shall
notify each other taxing unit that levies real property taxes in the
proposed zone of each presentation to be made to a municipality,
county, or school district under this subsection. Members of the
governing body of each taxing unit that levies real property taxes
in the proposed zone may attend a presentation under this
subsection. If agreed to by the municipalities, county, or school
districts involved, the governing body of the municipality or
county proposing to designate a reinvestment zone may make a single
presentation to more than one municipal, county, or school district
governing body.
(g) Not later than the 15th day after the date on which the
notice required by Subsection (e) is given, each taxing unit that
levies real property taxes in the proposed reinvestment zone shall
designate a representative to meet with the governing body of the
municipality or county proposing to designate a reinvestment zone
to discuss the project plan and the reinvestment zone financing
plan and shall notify the governing body of the municipality or
county of its designation. At any time after the 15th day after the
date on which the notice required by Subsection (e) has been given
to every taxing unit, the governing body of the municipality or
county proposing to designate a reinvestment zone may call a
meeting of the representatives of the taxing units. The governing
body of the municipality or county may call as many meetings as it
considers necessary. Each representative shall be notified of each
meeting in advance. At the meetings the governing body of the
municipality or county and the representatives of the other taxing
units may discuss the boundaries of the zone, development in the
zone, the tax increment that each taxing unit will contribute to the
tax increment fund, the retention by a taxing unit of a portion of
its tax increment as permitted by Section 311.013, the exclusion of
particular parcels of property from the zone, the board of
directors for the zone, and tax collection for the zone. On the
motion of the governing body of the municipality or county calling
the meeting, any other matter relevant to the proposed reinvestment
zone may be discussed.
Sec. 311.004. CONTENTS OF REINVESTMENT ZONE ORDINANCE OR
ORDER. (a) The ordinance or order designating an area as a
reinvestment zone must:
(1) describe the boundaries of the zone with
sufficient definiteness to identify with ordinary and reasonable
certainty the territory included in the zone;
(2) create a board of directors for the zone and
specify the number of directors of the board as provided by Section
311.009 or 311.0091, as applicable;
(3) provide that the zone take effect immediately upon
passage of the ordinance or order;
(4) provide a date for termination of the zone;
(5) assign a name to the zone for identification, with
the first zone created by a municipality or county designated as
"Reinvestment Zone Number One, City (or Town, as applicable) of
(name of municipality)," or "Reinvestment Zone Number One, (name of
county) County," as applicable, and subsequently created zones
assigned names in the same form numbered consecutively in the order
of their creation;
(6) establish a tax increment fund for the zone; and
(7) contain findings that:
(A) improvements in the zone will significantly
enhance the value of all the taxable real property in the zone and
will be of general benefit to the municipality or county; and
(B) the area meets the requirements of Section
311.005.
(b) For purposes of complying with Subsection (a)(7)(A),
the ordinance or order is not required to identify the specific
parcels of real property to be enhanced in value.
(c) To designate a reinvestment zone under Section
311.005(a)(5), the governing body of a municipality or county must
specify in the ordinance or order that the reinvestment zone is
designated under that section.
SECTION 32. Section 311.005(a), 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 or county 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;
(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 county; [or]
(3) be in a federally assisted new community located
in the municipality or county 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 or county 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 33. Section 311.007, Tax Code, is amended to read as
follows:
Sec. 311.007. CHANGING BOUNDARIES OF EXISTING ZONE. (a)
Subject to the limitations provided by Section 311.006, if
applicable, the boundaries of an existing reinvestment zone may be
reduced or enlarged by ordinance or resolution of the governing
body of the municipality or by order or resolution of the governing
body of the county that created the zone.
(b) The governing body of the municipality or county may
enlarge an existing reinvestment zone to include an area described
in a petition requesting that the area be included in the zone if
the petition is submitted to the governing body of the municipality
or county 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. The composition of the board of directors of the
zone continues to be governed by Section 311.009(a) or (b),
whichever applied to the zone immediately before the enlargement of
the zone, except that the membership of the board must conform to
the requirements of the applicable subsection of Section 311.009 as
applied to the zone after its enlargement. The provision of Section
311.006(b) relating to the amount of property used for residential
purposes that may be included in the zone does not apply to the
enlargement of a zone under this subsection.
SECTION 34. The heading to Section 311.008, Tax Code, is
amended to read as follows:
Sec. 311.008. POWERS OF MUNICIPALITY OR COUNTY.
SECTION 35. Sections 311.008(a), (b), and (d), Tax Code,
are amended to read as follows:
(a) In this section, "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 county and an independent school district.
(b) A municipality or county may exercise any power
necessary and convenient to carry out this chapter, including the
power to:
(1) cause project plans to be prepared, approve and
implement the plans, and otherwise achieve the purposes of the
plan;
(2) acquire real property by purchase, condemnation,
or other means to implement project plans and sell that property on
the terms and conditions and in the manner it considers advisable;
(3) enter into agreements, including agreements with
bondholders, determined by the governing body of the municipality
or county to be necessary or convenient to implement project plans
and achieve their purposes, which agreements may include
conditions, restrictions, or covenants that run with the land or
that by other means regulate or restrict the use of land; and
(4) consistent with the project plan for the zone:
(A) acquire blighted, deteriorated,
deteriorating, undeveloped, or inappropriately developed real
property or other property in a blighted area or in a federally
assisted new community in the zone for the preservation or
restoration of historic sites, beautification or conservation, the
provision of public works or public facilities, or other public
purposes;
(B) acquire, construct, reconstruct, or install
public works, facilities, or sites or other public improvements,
including utilities, streets, street lights, water and sewer
facilities, pedestrian malls and walkways, parks, flood and
drainage facilities, or parking facilities, but not including
educational facilities; or
(C) in a reinvestment zone created on or before
September 1, 1999, acquire, construct, or reconstruct educational
facilities in the municipality.
(d) A municipality or county may make available to the
public on request financial information regarding the acquisition
by the municipality or county of land in the zone when the
municipality or county acquires the land.
SECTION 36. Sections 311.009(a), (b), (e), and (f), Tax
Code, are amended to read as follows:
(a) Except as provided by Subsection (b), the board of
directors of a reinvestment zone consists of at least five and not
more than 15 members, unless more than 15 members are required to
satisfy the requirements of this subsection.
Each taxing unit other than the [a] municipality or county
that created the zone that levies taxes on real property in the zone
may appoint one member of the board. A unit may waive its right to
appoint a director. The governing body of the municipality or
county that created the zone may appoint not more than 10 directors
to the board; except that if there are fewer than five directors
appointed by taxing units other than the municipality or county,
the governing body of the municipality or county may appoint more
than 10 members as long as the total membership of the board does
not exceed 15.
(b) If the zone was designated under Section 311.005(a)(5),
the board of directors of the zone consists of nine members. Each
school district, [or] county, or municipality, other than the
municipality or county that created the zone, that levies taxes on
real property in the zone may appoint one member of the board if the
school district, [or] county, or municipality has approved the
payment of all or part of the tax increment produced by the unit.
The member of the state senate in whose district the zone is located
is a member of the board, and the member of the state house of
representatives in whose district the zone is located is a member of
the board, except that either may designate another individual to
serve in the member's place at the pleasure of the member. If the
zone is located in more than one senate or house district, this
subsection applies only to the senator or representative in whose
district a larger portion of the zone is located than any other
senate or house district, as applicable. The remaining members of
the board are appointed by the governing body of the municipality or
county that created the zone.
(e) To be eligible for appointment to the board by the
governing body of the municipality or county that created the zone,
an individual must:
(1) if the board is covered by Subsection (a):
(A) be a qualified voter of the municipality or
county, as applicable; or
(B) be at least 18 years of age and own real
property in the zone, whether or not the individual resides in the
municipality or county; or
(2) if the board is covered by Subsection (b):
(A) be at least 18 years of age; and
(B) own real property in the zone or be an
employee or agent of a person that owns real property in the zone.
(f) Each year the governing body of the municipality or
county that created the zone shall appoint one member of the board
to serve as chairman for a term of one year that begins on January 1
of the following year. The board of directors may elect a
vice-chairman to preside in the absence of the chairman or when
there is a vacancy in the office of chairman. The board may elect
other officers as it considers appropriate.
SECTION 37. Section 311.010, Tax Code, is amended to read as
follows:
Sec. 311.010. POWERS AND DUTIES OF BOARD OF DIRECTORS. (a)
The board of directors of a reinvestment zone shall make
recommendations to the governing body of the municipality or county
that created the zone concerning the administration of this chapter
in the zone. The governing body of the municipality by ordinance or
resolution or the county by order or resolution may authorize the
board to exercise any of the municipality's or county's powers with
respect to the administration, management, or operation of the zone
or the implementation of the project plan for the zone, except that
the governing body may not authorize the board to:
(1) issue bonds;
(2) impose taxes or fees;
(3) exercise the power of eminent domain; or
(4) give final approval to the project plan.
(b) The board of directors of a reinvestment zone and the
governing body of the municipality or county that creates a
reinvestment zone may each enter into agreements as the board or the
governing body considers necessary or convenient to implement the
project plan and reinvestment zone financing plan and achieve their
purposes. An agreement may provide for the regulation or
restriction of the use of land by imposing conditions,
restrictions, or covenants that run with the land. An agreement may
during the term of the agreement dedicate, pledge, or otherwise
provide for the use of revenue in the tax increment fund to pay any
project costs that benefit the reinvestment zone, including project
costs relating to the cost of buildings, schools, or other
educational facilities owned by or on behalf of a school district,
community college district, or other political subdivision of this
state, railroad or transit facilities, affordable housing, the
remediation of conditions that contaminate public or private land
or buildings, the preservation of the facade of a private or public
building, or the demolition of public or private buildings. An
agreement may dedicate revenue from the tax increment fund to pay
the costs of providing affordable housing or areas of public
assembly in or out of the zone. An agreement may dedicate revenue
from the tax increment fund to pay a neighborhood enterprise
association for providing services or carrying out projects
authorized under Subchapters E and G, Chapter 2303, Government
Code, in the zone. The term of an agreement with a neighborhood
enterprise association may not exceed 10 years.
(c) Subject to the approval of the governing body of the
municipality that created the zone, the board of a zone designated
by the governing body of a municipality under Section 311.005(a)(5)
may exercise the power granted by Chapter 211, Local Government
Code, to the governing body of the municipality that created the
zone to restrict the use or uses of property in the zone. The board
may provide that a restriction adopted by the board continues in
effect after the termination of the zone. In that event, after
termination of the zone the restriction is treated as if it had been
adopted by the governing body of the municipality.
(d) The board of directors of a reinvestment zone may
exercise any power granted to a municipality or county by Section
311.008, except that:
(1) the municipality or county that created the
reinvestment zone by ordinance, [or] resolution, or order may
restrict any power granted to the board by this chapter; and
(2) the board may exercise a power granted to a
municipality or county under Section 311.008(b)(2) [311.008(a)(2)]
only with the consent of the governing body of the municipality or
county.
(e) After the governing body of a municipality by ordinance
or the governing body of a county by order creates a reinvestment
zone under this chapter, the board of directors of the zone may
exercise any power granted to a board under this chapter.
(f) The board of directors of a reinvestment zone and the
governing body of the municipality or county that created the zone
may enter into a contract with a local government corporation or a
political subdivision to manage the reinvestment zone or implement
the project plan and reinvestment zone financing plan for the term
of the agreement. In this subsection, "local government
corporation" means a local government corporation created by the
municipality or county under Chapter 431, Transportation Code.
SECTION 38. Sections 311.011(a), (b), (d), (e), and (g),
Tax Code, are amended to read as follows:
(a) The board of directors of a reinvestment zone shall
prepare and adopt a project plan and a reinvestment zone financing
plan for the zone and submit the plans to the governing body of the
municipality or county that created the zone. The plans must be as
consistent as possible with the preliminary plans developed for the
zone before the creation of the board.
(b) The project plan must include:
(1) a map showing existing uses and conditions of real
property in the zone and a map showing proposed improvements to and
proposed uses of that property;
(2) proposed changes of zoning ordinances, the master
plan of the municipality, building codes, [and] other municipal
ordinances, and subdivision rules and regulations, if any, of the
county, if applicable;
(3) a list of estimated nonproject costs; and
(4) a statement of a method of relocating persons to be
displaced as a result of implementing the plan.
(d) The governing body of the municipality or county that
created the zone must approve a project plan or reinvestment zone
financing plan after its adoption by the board. The approval must
be by ordinance, in the case of a municipality, or by order, in the
case of a county, that finds that the plan is feasible and conforms
to the master plan, if any, of the municipality or to subdivision
rules and regulations, if any, of the county.
(e) The board of directors of the zone at any time may adopt
an amendment to the project plan consistent with the requirements
and limitations of this chapter. The amendment takes effect on
approval by the governing body of the municipality or county that
created the zone. That approval must be by ordinance, in the case
of a municipality, or by order, in the case of a county. If an
amendment reduces or increases the geographic area of the zone,
increases the amount of bonded indebtedness to be incurred,
increases or decreases the percentage of a tax increment to be
contributed by a taxing unit, increases the total estimated project
costs, or designates additional property in the zone to be acquired
by the municipality or county, the approval must be by ordinance or
order, as applicable, adopted after a public hearing that satisfies
the procedural requirements of Sections 311.003(c) and (d).
(g) An amendment to the project plan or the reinvestment
zone financing plan for a zone does not apply to a school district
that participates in the zone unless the governing body of the
school district by official action approves the amendment, if the
amendment:
(1) has the effect of directly or indirectly
increasing the percentage or amount of the tax increment to be
contributed by the school district; or
(2) requires or authorizes the municipality or county
creating the zone to issue additional tax increment bonds or notes.
SECTION 39. Sections 311.013(d), (f), and (k), Tax Code,
are amended to read as follows:
(d) If the reinvestment zone is created on or after August
29, 1983, a taxing unit is not required to pay a tax increment into
the tax increment fund of the zone after three years from the date
the zone is created unless the following conditions exist or have
been met within the three-year period:
(1) bonds have been issued for the zone under Section
311.015;
(2) the municipality or county that created the zone
has acquired property in the zone pursuant to the project plan; or
(3) construction of improvements pursuant to the
project plan has begun in the zone.
(f) A taxing unit is not required to pay into the tax
increment fund any of its tax increment produced from property
located in a reinvestment zone designated under Section 311.005(a)
or in an area added to a reinvestment zone under Section 311.007
unless the taxing unit enters into an agreement to do so with the
governing body of the municipality or county that created the zone.
A taxing unit may enter into an agreement under this subsection at
any time before or after the zone is created or enlarged. The
agreement may include conditions for payment of that tax increment
into the fund and must specify the portion of the tax increment to
be paid into the fund and the years for which that tax increment is
to be paid into the fund. The agreement and the conditions in the
agreement are binding on the taxing unit, the municipality or
county, and the board of directors of the zone.
(k) A school district is not required to pay into the tax
increment fund any of its tax increment produced from property
located in an area added to the reinvestment zone under Section
311.007(a) or (b) unless the governing body of the school district
enters into an agreement to do so with the governing body of the
municipality or county that created the zone[, including a
municipality described by Subsection (h)]. The governing body of a
school district may enter into an agreement under this subsection
at any time before or after the zone is created or enlarged. The
agreement may include conditions for payment of that tax increment
into the fund and must specify the portion of the tax increment to
be paid into the fund and the years for which that tax increment is
to be paid into the fund. The agreement and the conditions in the
agreement are binding on the school district, the municipality or
county, and the board of directors of the zone.
SECTION 40. Sections 311.014(c) and (d), Tax Code, are
amended to read as follows:
(c) Subject to an agreement with the holders of tax
increment bonds or notes, money in a tax increment fund may be
temporarily invested in the same manner as other funds of the
municipality or county that created the zone.
(d) After all project costs and all tax increment bonds or
notes issued for a reinvestment zone have been paid, and subject to
any agreement with bondholders, any money remaining in the tax
increment fund shall be paid to the municipality or county that
created the zone and other taxing units levying taxes on property in
the zone in proportion to the municipality's or county's and each
other unit's respective share of the total amount of tax increments
derived from taxable real property in the zone that were deposited
in the fund during the fund's existence.
SECTION 41. Sections 311.015(a), (b), (c), (e), (f), (g),
(i), (j), and (k), Tax Code, are amended to read as follows:
(a) A municipality or county creating a reinvestment zone
may issue tax increment bonds or notes, the proceeds of which may be
used to pay project costs for the reinvestment zone on behalf of
which the bonds or notes were issued or to satisfy claims of holders
of the bonds or notes. The municipality or county may issue
refunding bonds or notes for the payment or retirement of tax
increment bonds or notes previously issued by it.
(b) Tax increment bonds and notes are payable, as to both
principal and interest, solely from the tax increment fund
established for the reinvestment zone. The governing body of the
municipality or county may pledge irrevocably all or part of the
fund for payment of tax increment bonds or notes. The part of the
fund pledged in payment may be used only for the payment of the
bonds or notes or interest on the bonds or notes until the bonds or
notes have been fully paid. A holder of the bonds or notes or of
coupons issued on the bonds has a lien against the fund for payment
of the bonds or notes and interest on the bonds or notes and may
protect or enforce the lien at law or in equity.
(c) Tax increment bonds are issued by ordinance of the
municipality or by order of the county, as applicable, without any
additional approval other than that of the attorney general.
(e) The issuing municipality or county may provide in the
contract with the owners or holders of tax increment bonds that it
will pay into the tax increment fund all or any part of the revenue
produced or received from the operation or sale of a facility
acquired, improved, or constructed pursuant to a project plan, to
be used to pay principal and interest on the bonds. If the
municipality or county agrees, the owners or holders of tax
increment bonds may have a lien or mortgage on a facility acquired,
improved, or constructed with the proceeds of the bonds.
(f) Tax increment bonds may be issued in one or more series.
The ordinance or order, as applicable, approving a tax increment
bond or note, or the trust indenture or mortgage issued in
connection with the bond or note, shall provide:
(1) the date that the bond or note bears;
(2) that the bond or note is payable on demand or at a
specified time;
(3) the interest rate that the bond or note bears;
(4) the denomination of the bond or note;
(5) whether the bond or note is in coupon or registered
form;
(6) the conversion or registration privileges of the
bond or note;
(7) the rank or priority of the bond or note;
(8) the manner of execution of the bond or note;
(9) the medium of payment in which and the place or
places at which the bond or note is payable;
(10) the terms of redemption, with or without premium,
to which the bond or note is subject;
(11) the manner in which the bond or note is secured;
and
(12) any other characteristic of the bond or note.
(g) A bond or note issued under this chapter is fully
negotiable. In a suit, action, or other proceeding involving the
validity or enforceability of a bond or note issued under this
chapter or the security of a bond or note issued under this chapter,
if the bond or note recites in substance that it was issued by the
municipality or county for a reinvestment zone, the bond or note is
conclusively deemed to have been issued for that purpose, and the
development or redevelopment of the zone is conclusively deemed to
have been planned, located, and carried out as provided by this
chapter.
(i) A tax increment bond or note is not a general obligation
of the municipality or county issuing the bond or note. A tax
increment bond or note does not give rise to a charge against the
general credit or taxing powers of the municipality or county and is
not payable except as provided by this chapter. A tax increment
bond or note issued under this chapter must state the restrictions
of this subsection on its face.
(j) A tax increment bond or note may not be included in any
computation of the debt of the issuing municipality or county.
(k) A municipality or county may not issue tax increment
bonds or notes in an amount that exceeds the total cost of
implementing the project plan for the reinvestment zone for which
the bonds or notes are issued.
SECTION 42. Sections 311.016 and 311.017, Tax Code, are
amended to read as follows:
Sec. 311.016. ANNUAL REPORT BY MUNICIPALITY OR COUNTY. (a)
On or before the 90th day following the end of the fiscal year of the
municipality or county, the governing body of a municipality or
county shall submit to the chief executive officer of each taxing
unit that levies property taxes on real property in a reinvestment
zone created by the municipality or county a report on the status of
the zone. The report must include:
(1) the amount and source of revenue in the tax
increment fund established for the zone;
(2) the amount and purpose of expenditures from the
fund;
(3) the amount of principal and interest due on
outstanding bonded indebtedness;
(4) the tax increment base and current captured
appraised value retained by the zone; and
(5) the captured appraised value shared by the
municipality or county and other taxing units, the total amount of
tax increments received, and any additional information necessary
to demonstrate compliance with the tax increment financing plan
adopted by the governing body of the municipality or county.
(b) The municipality or county shall send a copy of a report
made under this section to:
(1) the attorney general; and
(2) the comptroller.
Sec. 311.017. TERMINATION OF REINVESTMENT ZONE. (a) A
reinvestment zone terminates on the earlier of:
(1) the termination date designated in the ordinance
or order, as applicable, creating the zone or an earlier
termination date designated by an ordinance or order adopted
subsequent to the ordinance or order creating the zone; or
(2) the date on which all project costs, tax increment
bonds, and interest on those bonds have been paid in full.
(b) The tax increment pledged to the payment of bonds and
interest on the bonds may be discharged and the reinvestment zone
may be terminated if the municipality or county that created the
zone deposits or causes to be deposited with a trustee or other
escrow agent authorized by law funds in an amount that, together
with the interest on the investment of the funds in direct
obligations of the United States, will be sufficient to pay the
principal of, premium, if any, and interest on all bonds issued on
behalf of the reinvestment zone at maturity or at the date fixed for
redemption of the bonds, and to pay any other amounts that may
become due, including compensation due or to become due to the
trustee or escrow agent.
SECTION 43. Sections 311.019(b) and (c), Tax Code, are
amended to read as follows:
(b) A municipality or county that designates a reinvestment
zone or approves a project plan or reinvestment zone financing plan
under this chapter shall deliver to the comptroller before April 1
of the year following the year in which the zone is designated or
the plan is approved a report containing:
(1) a general description of each zone, including:
(A) the size of the zone;
(B) the types of property located in the zone;
(C) the duration of the zone; and
(D) the guidelines and criteria established for
the zone under Section 311.005;
(2) a copy of each project plan or reinvestment zone
financing plan adopted; and
(3) any other information required by the comptroller
to administer this section and Subchapter F, Chapter 111.
(c) A municipality or county that amends or modifies a
project plan or reinvestment zone financing plan adopted under this
chapter shall deliver a copy of the amendment or modification to the
comptroller before April 1 of the year following the year in which
the plan was amended or modified.
SECTION 44. Section 311.020, Tax Code, is amended to read as
follows:
Sec. 311.020. STATE ASSISTANCE. (a) On request of the
governing body of a municipality or county or of the presiding
officer of the governing body, the comptroller may provide
assistance to a municipality or county relating to the
administration of this chapter.
(b) The Texas Department of Economic Development and the
comptroller may provide technical assistance to a municipality or
county regarding:
(1) the designation of reinvestment zones under this
chapter; and
(2) the adoption and execution of project plans or
reinvestment zone financing plans under this chapter.
SECTION 45. Section 281.0461, Health and Safety Code,
Section 83.004(b), Local Government Code, and Section 21.013(c),
Property Code, are repealed.
SECTION 46. The changes in law made by this Act to the Code
of Criminal Procedure apply only to an offense committed on or after
the effective date of this Act. An offense committed before the
effective date of this Act is covered by the law in effect when the
offense was committed, and the former law is continued in effect for
that purpose. For the purposes of this section, an offense is
committed before the effective date of this Act if any element of
the offense occurs before that date.
SECTION 47. The change in law made by this Act:
(1) to Sections 83.002 and 83.004(a), Local Government
Code, applies only to a county treasurer whose term begins on or
after the effective date of this Act; and
(2) to Section 83.004(c), Local Government Code,
applies only to a county treasurer who enters upon the discharge of
the duties of office on or after the effective date of this Act.
SECTION 48. Section 21.013, Property Code, as amended by
this Act, applies only to a proceeding initiated on or after the
effective date of this Act. A proceeding initiated before the
effective date of this Act is governed by the law that existed when
that proceeding was initiated, and the former law is continued in
effect for that purpose.
SECTION 49. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2005.
(b) The provisions of this Act amending Chapter 311, Tax
Code, take effect on the date on which the constitutional amendment
proposed by S.J.R. No. 44 takes effect. If that amendment is not
approved by the voters, those provisions have no effect.
* * * * *