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AN ACT
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relating to pass-through financing and the designation and |
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operation of transportation reinvestment zones. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 222.104, Transportation Code, is amended |
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by adding Subsection (d-1) and amending Subsection (e) to read as |
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follows: |
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(d-1) Unless there is an insufficient number of approved |
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proposals for projects to be developed under an agreement providing |
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for the payment of pass-through tolls, in any state fiscal year that |
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begins on or after September 1, 2007, the amount the department |
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agrees to pay under agreements entered into under this section as |
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reimbursement to a public or private entity for project costs may |
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not be less than the yearly average of such amounts from the date of |
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the creation by the commission of the pass-through toll program. |
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This subsection expires September 1, 2009. |
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(e) The department may use any available funds for the |
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purpose of making a pass-through toll payment under this section |
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except funds derived from the issuance of bonds under Section |
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201.943. |
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SECTION 2. Subchapter E, Chapter 222, Transportation Code, |
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is amended by adding Sections 222.105, 222.106, and 222.107 to read |
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as follows: |
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Sec. 222.105. PURPOSES. The purposes of Sections 222.106 |
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and 222.107 are to: |
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(1) promote public safety; |
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(2) facilitate the development or redevelopment of |
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property; |
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(3) facilitate the movement of traffic; and |
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(4) enhance a local entity's ability to sponsor a |
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project authorized under Section 222.104. |
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Sec. 222.106. MUNICIPAL TRANSPORTATION REINVESTMENT ZONES. |
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(a) In this section: |
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(1) the amount of a municipality's tax increment for a |
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year is the amount of ad valorem taxes levied and collected by the |
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municipality for that year on the captured appraised value of real |
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property taxable by the municipality and located in a |
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transportation reinvestment zone under this section; |
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(2) the captured appraised value of real property |
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taxable by a municipality for a year is the total appraised value of |
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all real property taxable by the municipality and located in a |
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transportation reinvestment zone for that year less the tax |
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increment base of the municipality; and |
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(3) the tax increment base of a municipality is the |
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total appraised value of all real property taxable by the |
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municipality and located in a transportation reinvestment zone for |
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the year in which the zone was designated under this section. |
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(b) This section applies only to a municipality the |
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governing body of which intends to enter into an agreement with the |
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department under Section 222.104. |
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(c) If the governing body determines an area to be |
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unproductive and underdeveloped and that action under this section |
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will further the purposes stated in Section 222.105, the governing |
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body of the municipality by ordinance may designate a contiguous |
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geographic area in the jurisdiction of the municipality to be a |
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transportation reinvestment zone to promote a transportation |
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project described by Section 222.104 that cultivates development or |
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redevelopment of the area. |
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(d) The governing body must comply with all applicable laws |
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in the application of this chapter. |
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(e) Not later than the 30th day before the date the |
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governing body of the municipality proposes to adopt an ordinance |
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designating an area as a transportation reinvestment zone under |
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this section, the governing body must hold a public hearing on the |
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designation of the zone and its benefits to the municipality and to |
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property in the proposed zone. At the hearing an interested person |
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may speak for or against the creation of the zone or its boundaries. |
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Not later than the seventh day before the date of the hearing, |
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notice of the hearing and the intent to create the zone must be |
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published in a newspaper having general circulation in the |
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municipality. |
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(f) Compliance with the requirements of this section |
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constitutes designation of an area as a transportation reinvestment |
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zone without further hearings or other procedural requirements. |
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(g) The ordinance designating an area as a transportation |
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reinvestment zone must: |
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(1) describe the boundaries of the zone with |
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sufficient definiteness to identify with ordinary and reasonable |
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certainty the territory included in the zone; |
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(2) provide that the zone takes effect immediately on |
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passage of the ordinance; |
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(3) assign a name to the zone for identification, with |
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the first zone designated by a municipality designated as |
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"Transportation Reinvestment Zone Number One, (City or Town, as |
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applicable) of (name of municipality)," and subsequently |
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designated zones assigned names in the same form, numbered |
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consecutively in the order of their designation; |
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(4) establish an ad valorem tax increment account for |
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the zone; and |
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(5) contain findings that promotion of the |
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transportation project will cultivate development or redevelopment |
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of the zone. |
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(h) From taxes collected on property in a zone, the |
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municipality shall pay into the tax increment account for the zone |
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an amount equal to the tax increment produced by the municipality. |
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(i) Money deposited to a tax increment account must be used |
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to fund projects authorized under Section 222.104, including the |
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repayment of amounts owed under an agreement entered into under |
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that section. |
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(j) Except as provided by Subsection (k), a transportation |
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reinvestment zone terminates on December 31 of the year in which the |
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municipality complies with a contractual requirement, if any, that |
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included the pledge of money deposited to a tax increment account or |
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the repayment of money owed under the agreement under Section |
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222.104 in connection with which the zone was designated. |
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(k) A transportation reinvestment zone terminates on |
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December 31 of the 10th year after the year the zone was designated, |
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if before that date the municipality has not used the zone for the |
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purpose for which it was designated. |
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(l) Any surplus remaining on termination of a zone may be |
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used for transportation projects of the municipality in or outside |
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of the zone. |
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Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES; |
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TAX ABATEMENTS; ROAD UTILITY DISTRICTS. (a) In this section: |
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(1) the amount of a county's tax increment for a year |
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is the amount of ad valorem taxes levied and collected by the county |
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for that year on the captured appraised value of real property |
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taxable by the county and located in a transportation reinvestment |
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zone under this section; |
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(2) the captured appraised value of real property |
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taxable by a county for a year is the total appraised value of all |
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real property taxable by the county and located in a transportation |
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reinvestment zone for that year less the tax increment base of the |
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county; and |
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(3) the tax increment base of a county is the total |
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appraised value of all real property taxable by the county and |
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located in a transportation reinvestment zone for the year in which |
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the zone was designated under this section. |
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(b) This section applies only to a county the commissioners |
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court of which intends to enter into a pass-through toll agreement |
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with the department under Section 222.104. |
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(c) The commissioners court of the county, after |
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determining that an area is unproductive and underdeveloped and |
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that action under this section would further the purposes described |
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by Section 222.105, by order or resolution may designate a |
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contiguous geographic area in the jurisdiction of the county to be a |
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transportation reinvestment zone to promote a transportation |
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project described by Section 222.104 that cultivates development or |
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redevelopment of the area and for the purpose of abating ad valorem |
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taxes imposed by the county on real property located in the zone. |
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(d) The commissioners court must comply with all applicable |
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laws in the application of this chapter. |
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(e) Not later than the 30th day before the date the |
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commissioners court proposes to designate an area as a |
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transportation reinvestment zone under this section, the |
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commissioners court must hold a public hearing on the creation of |
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the zone, its benefits to the county and to property in the proposed |
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zone, and the abatement of ad valorem taxes imposed by the county on |
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real property located in the zone. At the hearing an interested |
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person may speak for or against the designation of the zone, its |
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boundaries, or the abatement of county taxes on real property in the |
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zone. Not later than the seventh day before the date of the |
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hearing, notice of the hearing and the intent to create a zone must |
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be published in a newspaper having general circulation in the |
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county. |
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(f) The order or resolution designating an area as a |
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transportation reinvestment zone must: |
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(1) describe the boundaries of the zone with |
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sufficient definiteness to identify with ordinary and reasonable |
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certainty the territory included in the zone; |
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(2) provide that the zone takes effect immediately on |
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adoption of the order or resolution; and |
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(3) assign a name to the zone for identification, with |
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the first zone designated by a county designated as "Transportation |
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Reinvestment Zone Number One, County of (name of county)," and |
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subsequently designated zones assigned names in the same form |
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numbered consecutively in the order of their designation. |
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(g) Compliance with the requirements of this section |
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constitutes designation of an area as a transportation reinvestment |
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zone without further hearings or other procedural requirements. |
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(h) The commissioners court by order or resolution may enter |
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into an agreement with the owner of any real property located in the |
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transportation reinvestment zone to abate a portion of the ad |
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valorem taxes imposed by the county on the owner's property. All |
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abatements granted by the commissioners court in a transportation |
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reinvestment zone must be equal in rate. In the alternative, the |
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commissioners court by order or resolution may elect to abate a |
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portion of the ad valorem taxes imposed by the county on all real |
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property located in the zone. In any ad valorem tax year, the total |
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amount of the taxes abated under this section may not exceed the |
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amount calculated under Subsection (a)(1) for that year. |
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(i) To assist the county in developing a project authorized |
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under Section 222.104, if authorized by the commission under |
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Chapter 441, a road utility district may be formed under that |
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chapter that has the same boundaries as a transportation |
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reinvestment zone created under this section. |
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(j) In any ad valorem tax year, a road utility district |
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formed as provided by Subsection (i) may impose taxes on property in |
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the district at a rate that when applied to the property in the |
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district would impose taxes in an amount equal to the amount of |
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taxes abated by the commissioners court of the county under |
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Subsection (h). Notwithstanding Section 441.192(a), an election is |
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not required to approve the imposition of the taxes. |
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(k) A road utility district formed as provided by Subsection |
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(i) may enter into an agreement with the county to assume the |
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obligation, if any, of the county to fund a project under Section |
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222.104 or to repay funds owed to the department under Section |
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222.104. Any amount paid for this purpose is considered to be an |
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operating expense of the district. Any taxes collected by the |
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district that are not paid for this purpose may be used for any |
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district purpose. |
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(l) Except as provided by Subsection (m), a tax abatement |
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agreement entered into under Subsection (h), or an order or |
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resolution on the abatement of taxes under that subsection, |
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terminates on December 31 of the year in which the county completes |
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any contractual requirement that included the pledge of money |
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collected under this section. |
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(m) A transportation reinvestment zone terminates on |
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December 31 of the 10th year after the year the zone was designated, |
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if before that date the county has not used the zone for the purpose |
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for which it was designated. |
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SECTION 3. This Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1266 passed the Senate on |
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April 12, 2007, by the following vote: Yeas 31, Nays 0; |
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May 25, 2007, Senate refused to concur in House amendments and |
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requested appointment of Conference Committee; May 26, 2007, House |
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granted request of the Senate; May 26, 2007, Senate adopted |
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Conference Committee Report by the following vote: Yeas 30, |
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Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1266 passed the House, with |
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amendments, on May 16, 2007, by the following vote: Yeas 141, |
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Nays 0, two present not voting; May 26, 2007, House granted request |
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of the Senate for appointment of Conference Committee; |
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May 27, 2007, House adopted Conference Committee Report by the |
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following vote: Yeas 142, Nays 1, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |