81R7210 JD-F
 
  By: Pickett H.B. No. 1810
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the purposes and designation of a transportation
  reinvestment zone.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 222.105, Transportation Code, is amended
  to read as follows:
         Sec. 222.105.  PURPOSES.  The purposes of Sections 222.106
  and 222.107 are to:
               (1)  promote public safety;
               (2)  facilitate the improvement, development, or
  redevelopment of property;
               (3)  facilitate the movement of traffic; and
               (4)  enhance a local entity's ability to sponsor a
  transportation project authorized under Section 222.104.
         SECTION 2.  Section 222.106, Transportation Code, is amended
  by amending Subsections (b), (c), (g), (h), (i), (j), (k), and (l)
  and adding Subsections (i-1) and (i-2) to read as follows:
         (b)  This section applies only to a municipality in which a
  transportation project is to be developed [the governing body of
  which intends to enter into an agreement with the department] under
  Section 222.104.
         (c)  If the governing body determines an area to be
  unproductive, [and] underdeveloped, or blighted and that action
  under this section will further the purposes stated in Section
  222.105, the governing body of the municipality by ordinance may
  designate a contiguous geographic area in the jurisdiction of the
  municipality to be a transportation reinvestment zone to promote a
  transportation project described by Section 222.104 [that
  cultivates development or redevelopment of the area].
         (g)  The ordinance designating an area as a transportation
  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)  provide that the zone takes effect immediately on
  passage of the ordinance;
               (3)  assign a name to the zone for identification, with
  the first zone designated by a municipality designated as
  "Transportation Reinvestment Zone Number One, (City or Town, as
  applicable) of (name of municipality)," and subsequently
  designated zones assigned names in the same form, numbered
  consecutively in the order of their designation;
               (4)  designate the base year for purposes of
  establishing the tax increment base of the municipality;
               (5)  establish an ad valorem tax increment account for
  the zone; and
               (6)  [(5)]  contain findings that promotion of the
  transportation project will cultivate the improvement,
  development, or redevelopment of the zone.
         (h)  From taxes collected on property in a zone, the
  municipality shall pay into the tax increment account for the zone
  [an amount equal to] the tax increment produced by the
  municipality, less any amount allocated under previous agreements,
  including agreements under Chapter 381, Local Government Code, or
  Chapter 311, Tax Code.
         (i)  All or the portion specified by the municipality of the
  money deposited to a tax increment account must be used to fund the
  transportation project for which the zone was designated. Any
  remaining money deposited to the tax increment account may be used
  for other transportation projects or for improvements in the
  zone  [Money deposited to a tax increment account must be used to
  fund projects authorized under Section 222.104, including the
  repayment of amounts owed under an agreement entered into under
  that section].
         (i-1)  The governing body of a municipality may contract with
  a public or private entity to develop, redevelop, or improve a
  transportation project in a transportation reinvestment zone and
  may pledge and assign all or a specified amount of money in the tax
  increment account to that entity. After a pledge or assignment is
  made, if the entity that received the pledge or assignment has
  itself pledged or assigned that amount to secure bonds or other
  obligations issued to obtain funding for the transportation
  project, the governing body of the municipality may not rescind its
  pledge or assignment until the bonds or other obligations secured
  by the pledge or assignment have been paid or discharged.
         (i-2)  To accommodate changes in the scope of the project for
  which a reinvestment zone was designated, the boundaries of a zone
  may be amended at any time, except that property may not be removed
  or excluded from a designated zone if any part of the tax increment
  has been assigned or pledged directly by the municipality or
  through another entity to secure bonds or other obligations issued
  to obtain funding of the project, and property may not be added to a
  designated zone unless the governing body of the municipality
  complies with Subsections (e) and (g).
         (j)  Except as provided by Subsections (i-1) and
  [Subsection] (k), a transportation reinvestment zone terminates on
  December 31 of the year in which the municipality completes
  [complies with] a contractual requirement, if any, that included
  the pledge or assignment of all or a portion of money deposited to a
  tax increment account or the repayment of money owed under an [the]
  agreement for development, redevelopment, or improvement of the
  project for [under Section 222.104 in connection with] which the
  zone was designated.
         (k)  A transportation reinvestment zone terminates on
  December 31 of the 10th year after the year the zone was designated,
  if before that date the municipality has not entered into a contract
  described in Subsection (i-1) or otherwise not used the zone for the
  purpose for which it was designated.
         (l)  Any surplus remaining in a tax increment account on
  termination of a zone may be used for transportation projects of the
  municipality in or outside of the zone.
         SECTION 3.  The heading to Section 222.107, Transportation
  Code, is amended to read as follows:
         Sec. 222.107.  COUNTY TRANSPORTATION REINVESTMENT ZONES[;
  TAX ABATEMENTS; ROAD UTILITY DISTRICTS].
         SECTION 4.  Section 222.107, Transportation Code, is amended
  by amending Subsections (b), (c), (e), (f), (h), (i), (k), and (l)
  and adding Subsections (h-1) and (k-1) to read as follows:
         (b)  This section applies only to a county in which a
  transportation project is to be developed [the commissioners court
  of which intends to enter into a pass-through toll agreement with
  the department] under Section 222.104.
         (c)  The commissioners court of the county, after
  determining that an area is unproductive and underdeveloped and
  that action under this section would further the purposes described
  by Section 222.105, by order or resolution may designate a
  contiguous geographic area in the jurisdiction of the county to be a
  transportation reinvestment zone to promote a transportation
  project [described by Section 222.104 that cultivates development
  or redevelopment of the area] and for the purpose of abating ad
  valorem taxes or granting other relief from taxes imposed by the
  county on real property located in the zone.
         (e)  Not later than the 30th day before the date the
  commissioners court proposes to designate an area as a
  transportation reinvestment zone under this section, the
  commissioners court must hold a public hearing on the creation of
  the zone, its benefits to the county and to property in the proposed
  zone, and the abatement of ad valorem taxes or the grant of other
  relief from ad valorem taxes imposed by the county on real property
  located in the zone.  At the hearing an interested person may speak
  for or against the designation of the zone, its boundaries, or the
  abatement of or the relief from county taxes on real property in the
  zone.  Not later than the seventh day before the date of the
  hearing, notice of the hearing and the intent to create a zone must
  be published in a newspaper having general circulation in the
  county.
         (f)  The order or resolution designating an area as a
  transportation 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)  provide that the zone takes effect immediately on
  adoption of the order or resolution; [and]
               (3)  assign a name to the zone for identification, with
  the first zone designated by a county designated as "Transportation
  Reinvestment Zone Number One, County of (name of county)," and
  subsequently designated zones assigned names in the same form
  numbered consecutively in the order of their designation; and
               (4)  designate the base year for purposes of
  establishing the tax increment base of the county.
         (h)  The commissioners court by order or resolution may enter
  into an agreement with the owner of any real property located in the
  transportation reinvestment zone to abate all or a portion of the ad
  valorem taxes or to grant other relief from the taxes imposed by the
  county on the owner's property in an amount not to exceed the amount
  calculated under Subsection (a)(1) for that year.  All abatements
  or other relief granted by the commissioners court in a
  transportation reinvestment zone must be equal in rate.  In the
  alternative, the commissioners court by order or resolution may
  elect to abate a portion of the ad valorem taxes or otherwise grant
  relief from the taxes imposed by the county on all real property
  located in the zone.  In any ad valorem tax year, the total amount
  of the taxes abated or the total amount of relief granted under this
  section may not exceed the amount calculated under Subsection
  (a)(1) for that year, less any amounts allocated under previous
  agreements, including agreements under Chapter 380, Local
  Government Code, or Chapter 312, Tax Code.
         (h-1)  To further the development of the transportation
  project for which the transportation reinvestment zone was
  designated, a county may assess all or part of the cost of the
  transportation project against property within the zone. The
  assessment against each property in the zone may be payable in
  installments in the same manner as provided by Section 372.018,
  Local Government Code, provided that the installments do not exceed
  the total amount of the tax abatement or other relief granted under
  Subsection (h). The county may elect to adopt and apply the
  provisions of Sections 372.015-372.020 and 372.023, Local
  Government Code, to the assessment of costs and Sections
  372.024-372.030, Local Government Code, to the issuance of bonds by
  the county to pay the cost of a transportation project. The
  commissioners court of the county may contract with a public or
  private entity to develop, redevelop, or improve a transportation
  project in the transportation reinvestment zone and may pledge and
  assign all or a specified amount of money in the tax increment
  account to that entity. After a pledge or assignment is made, if
  the entity that received the pledge or assignment has itself
  pledged or assigned that amount to secure bonds or other
  obligations issued to obtain funding for the transportation
  project, the commissioners court of the county may not rescind its
  pledge or assignment until the bonds or other obligations secured
  by the pledge or assignment have been paid or discharged.
         (i)  In the alternative, to [To] assist the county in
  developing a transportation project [authorized under Section
  222.104], if authorized by the commission under Chapter 441, a road
  utility district may be formed under that chapter that has the same
  boundaries as a transportation reinvestment zone created under this
  section.
         (k)  A road utility district formed as provided by Subsection
  (i) may enter into an agreement [with the county to assume the
  obligation, if any, of the county] to fund development of a project
  under Section 222.104 or to repay funds owed to the department under
  Section 222.104.  Any amount paid for this purpose is considered to
  be an operating expense of the district.  Any taxes collected by
  the district that are not paid for this purpose may be used for any
  district purpose.
         (k-1)  To accommodate changes in the scope of the project for
  which a reinvestment zone was designated, the boundaries of a zone
  may be amended at any time, except that property may not be removed
  or excluded from a designated zone if any part of the assessment has
  been assigned or pledged directly by the county or through another
  entity to secure bonds or other obligations issued to obtain
  funding of the project, and property may not be added to a
  designated zone unless the governing body of the municipality
  complies with Subsections (e) and (f).
         (l)  Except as provided by Subsection (m), a tax abatement
  agreement entered into under Subsection (h), or an order or
  resolution on the abatement of taxes or the grant of relief from
  taxes under that subsection, terminates on December 31 of the year
  in which the county completes any contractual requirement that
  included the pledge or assignment of assessments [of money]
  collected under this section.
         SECTION 5.  This Act takes effect September 1, 2009.