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By:  Krusee                                                       H.B. No. 2653



A BILL TO BE ENTITLED

AN ACT

relating to the use of tax increment financing to pay certain costs 
associated with certain transportation or transit projects.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 311, Tax Code, is amended by adding 
Section 311.01005 to read as follows:
	Sec. 311.01005.  COSTS ASSOCIATED WITH TRANSPORTATION OR 
TRANSIT PROJECTS.  (a)   In this section:
		(1)  "Bus rapid transit project" means a mass 
transportation facility designed to give preferential treatment to 
buses on a roadway in order to reduce bus travel time, improve 
service reliability, increase the convenience of users, and 
increase bus ridership, including:
			(A)  a fixed guideway, high occupancy vehicle 
lane, bus way, or bus lane;
			(B)  a transit center or station;                                     
			(C)  a maintenance facility; and                                      
			(D)  other real property associated with a bus 
rapid transit operation.
		(2)  "Rail transportation project" means a passenger 
rail facility, including:
			(A)  tracks;                                                          
			(B)  a rail line;                                                     
			(C)  a depot;                                                         
			(D)  a maintenance facility; and                                      
			(E)  other real property associated with a 
passenger rail operation.
	(b)  This section does not affect the power of the board of 
directors of a reinvestment zone or the governing body of the 
municipality that creates a reinvestment zone to enter into an 
agreement under Section 311.010(b) to dedicate, pledge, or 
otherwise provide for the use of revenue in the tax increment fund 
to pay the costs of acquiring, constructing, operating, or 
maintaining property located in the zone.
	(c)  An agreement under Section 311.010(b) may dedicate, 
pledge, or otherwise provide for the use of revenue in the tax 
increment fund to pay the costs of acquiring land, or the 
development rights or a conservation easement in land, located 
outside the reinvestment zone, if:
		(1)  the zone is or will be served by a rail 
transportation project or bus rapid transit project;
		(2)  the land or the development rights or conservation 
easement in the land is acquired for the purpose of preserving the 
land in its natural or undeveloped condition; and
		(3)  the land is located in the county in which the zone 
is located. 
	(d)  The board of directors of a reinvestment zone, if all of 
the members of the board are appointed by the municipality that 
creates the zone, or the governing body of the municipality that 
creates a reinvestment zone may enter into an agreement described 
by Subsection (c) only if:
		(1)  the board or the governing body determines that 
the acquisition of the land, or the development rights or 
conservation easement in the land, located outside the zone 
benefits or will benefit the zone by facilitating the preservation 
of regional open space in order to balance the regional effects of 
urban development promoted by the rail transportation project or 
bus rapid transit project; and
		(2)  the municipality that creates the reinvestment 
zone and the county in which the zone is located pay the same 
portion of their tax increment into the tax increment fund for the 
zone.
	SECTION 2.  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.