BILL ANALYSIS

Senate Research Center                                                                                                     H.B. 2092

80R9730 JD-D                                                                                                       By: Hill (Shapiro)

S/C on Emerging Technologies & Economic Dev.

5/8/2007

Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The increased utilization of different transit options, such as commuter rail, is expected to result in new ways of developing neighborhoods.  Transit-oriented development places a mix of residential, retail, shopping, schools, and public parks and green spaces within walking distance of transit stations.

The use of tax increment financing districts are critical to the ability of local jurisdictions to finance infrastructure for these developments.  However, the current authority of municipalities to designate a reinvestment zone is vague.

H.B. 2092 allows municipalities to designate an area as a reinvestment zone if the proposed plan for the zone includes commuter or mass transit rail.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 311.005, Tax Code, by adding Subsection (a-1),  to provide that, notwithstanding Subsection (a), if the proposed project plan for a potential reinvestment zone includes the use of land in the zone in connection with the operation of an existing or proposed regional commuter or mass transit rail system, or for a structure or facility that is necessary, useful, or beneficial to such a regional rail system, the governing body of a municipality is authorized to designate an area as a reinvestment zone.

SECTION 2.  Effective date: upon passage or September 1, 2007.