| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the authority of a taxing unit to make a loan to the |
|
|
board of directors of a tax increment financing reinvestment zone |
|
|
for deposit in the tax increment fund for the zone. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 311.0123(e), Tax Code, is amended to |
|
|
read as follows: |
|
|
(e) The sales and use taxes to be deposited into the tax |
|
|
increment fund under this section may be disbursed from the fund |
|
|
only to: |
|
|
(1) satisfy claims of holders of tax increment bonds, |
|
|
notes, or other obligations issued or incurred for the reinvestment |
|
|
zone; |
|
|
(2) pay project costs for the zone; and |
|
|
(3) make payments in accordance with an agreement made |
|
|
under Section 311.010(b) dedicating revenue from the tax increment |
|
|
fund. |
|
|
SECTION 2. Section 311.014, Tax Code, is amended by |
|
|
amending Subsections (b) and (d) and adding Subsection (e) to read |
|
|
as follows: |
|
|
(b) Money may be disbursed from the fund only to satisfy |
|
|
claims of holders of tax increment bonds or notes issued for the |
|
|
zone, to pay project costs for the zone, [or] to make payments |
|
|
pursuant to an agreement made under Section 311.010(b) dedicating |
|
|
revenue from the tax increment fund, or to repay other obligations |
|
|
incurred for the zone. |
|
|
(d) After all project costs, [and] all tax increment bonds |
|
|
or notes issued for a reinvestment zone, and any other obligations |
|
|
incurred for the 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. |
|
|
(e) A taxing unit that levies taxes on real property in a |
|
|
reinvestment zone may make a loan to the board of directors of the |
|
|
zone for deposit in the tax increment fund for the zone if the |
|
|
governing body of the taxing unit determines that the loan is |
|
|
beneficial to, and serves a public purpose of, the taxing unit. The |
|
|
loan is payable on the terms agreed to by the taxing unit, or an |
|
|
instrumentality of the taxing unit if applicable, and the board of |
|
|
directors of the zone. A loan under this subsection: |
|
|
(1) is not considered to be a tax increment bond or |
|
|
note under Section 311.015; and |
|
|
(2) is considered to be: |
|
|
(A) an authorized investment under Chapter 2256, |
|
|
Government Code; and |
|
|
(B) an obligation incurred for the zone. |
|
|
SECTION 3. Section 311.017, Tax Code, is amended to read as |
|
|
follows: |
|
|
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, and other obligations have |
|
|
been paid in full. |
|
|
(b) The tax increment pledged to the payment of bonds and |
|
|
interest on the bonds and to the payment of any other obligations |
|
|
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, as well as to |
|
|
pay the principal of and interest on any other obligations incurred |
|
|
on behalf of the zone. |
|
|
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, 2007. |