81R10999 JD-D
 
  By: Villarreal H.B. No. 3111
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to authorizing Bexar County to issue bonds or notes to
  finance the acquisition of real property and the construction of a
  building or facility on the property for use by an institution of
  higher education and to pledge for repayment of those bonds or notes
  increases in revenues from ad valorem taxes imposed by the county
  and other political subdivisions on property located in a
  designated area of the county.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 3, Tax Code, is amended by
  adding Chapter 311A to read as follows:
         CHAPTER 311A. BEXAR COUNTY TAX INCREMENT FINANCING ACT
         Sec. 311A.001.  APPLICABILITY. This chapter applies only to
  Bexar County and real property in that county.
         Sec. 311A.002.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the board of directors of the
  reinvestment zone.
               (2)  "Commissioners court" means the commissioners
  court of Bexar County.
               (3)  "County" means Bexar County.
               (4)  "Taxing unit" has the meaning assigned by Section
  1.04.
         Sec. 311A.003.  PROCEDURE FOR CREATING REINVESTMENT ZONE.  
  (a)  The commissioners court by order may designate a contiguous
  geographic area in the jurisdiction of the county to be a
  reinvestment zone.
         (b)  The designated area must include land that the county
  owns or proposes to acquire and on which the county proposes to
  construct a building or facility for use by an institution of higher
  education selected by the county.
         Sec. 311A.004.  CONTENTS OF REINVESTMENT ZONE ORDER.  The
  order designating an area as the 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)  create a board of directors for the zone and
  specify the number of directors of the board;
               (3)  provide that the zone take effect immediately on
  adoption of the order;
               (4)  provide a date for termination of the zone;
               (5)  specify the powers of the county that are
  delegated to the board for the zone; and
               (6)  establish a tax increment fund for the zone.
         Sec. 311A.005.  POWERS OF COUNTY. The county may acquire
  real property by purchase, condemnation, or other means and
  construct a building or facility for use by an institution of higher
  education selected by the commissioners court.
         Sec. 311A.006.  COMPOSITION OF BOARD OF DIRECTORS.  (a)  The
  board of directors of the reinvestment zone consists of at least
  five and not more than 15 members, unless more than 15 members are
  required to satisfy the requirements of this subsection. Each
  taxing unit other than the county that levies taxes on real property
  in the zone may appoint one member of the board. A unit may waive
  its right to appoint a director.
         (b)  Members of the board are appointed for terms of two
  years. Terms of members may be staggered.
         (c)  A vacancy on the board is filled for the unexpired term
  by appointment of the governing body of the taxing unit that
  appointed the director who served in the vacant position.
         (d)  To be eligible for appointment to the board, an
  individual must:
               (1)  be a qualified voter of the county; or
               (2)  be at least 18 years of age and own real property
  in the zone, regardless of whether the individual resides in the
  county.
         (e)  Each year the commissioners court shall appoint one
  member of the board to serve as presiding officer for a term of one
  year that begins on January 1 of the following year.  The board may
  elect an assistant presiding officer to preside in the absence of
  the presiding officer or when there is a vacancy in the office of
  presiding officer.  The board may elect other officers as it
  considers appropriate.
         (f)  A member of the board is not a public official by virtue
  of that position.
         Sec. 311A.007.  POWERS AND DUTIES OF BOARD OF DIRECTORS.  (a)  
  The board shall make recommendations to the commissioners court
  concerning the administration of this chapter in the reinvestment
  zone.
         (b)  The board may exercise any power delegated to the board
  in the order designating the reinvestment zone.
         Sec. 311A.008.  PROJECT AND FINANCING PLANS.  (a)  The board
  shall prepare and adopt a project plan and a reinvestment zone
  financing plan for the zone and submit the plans to the
  commissioners court.
         (b)  The project plan must include:
               (1)  a map showing existing uses of real property in the
  zone and a map showing the proposed building or facility; and
               (2)  a statement of a method of relocating persons to be
  displaced as a result of implementing the plan.
         (c)  The reinvestment zone financing plan must include:
               (1)  a detailed list describing the estimated cost of
  the proposed building or facility;
               (2)  a statement describing the proposed building or
  facility and specifying the institution of higher education for
  which the proposed building or facility is to be constructed;
               (3)  the estimated amount of bonded indebtedness to be
  incurred;
               (4)  the time when related costs or monetary
  obligations are to be incurred;
               (5)  a description of the methods of financing the
  acquisition of land and the construction of the building or
  facility, including the percentage of tax increment to be derived
  from the property taxes of each taxing unit that levies taxes on
  real property in the zone;
               (6)  the current total appraised value of taxable real
  property in the zone;
               (7)  the estimated captured appraised value of the zone
  during each year of its existence; and
               (8)  the duration of the zone.
         (d)  The commissioners court by order must approve the
  project plan or reinvestment zone financing plan after its adoption
  by the board if the commissioners court finds that the plan is
  feasible.
         Sec. 311A.009.  DETERMINATION OF AMOUNT OF TAX INCREMENT.  
  (a)  The amount of a taxing unit's tax increment for a year is the
  amount of property taxes levied and collected by the unit for that
  year on the captured appraised value of real property taxable by the
  unit and located in the reinvestment zone.
         (b)  The captured appraised value of real property taxable by
  a taxing unit for a year is the total appraised value of all real
  property taxable by the unit and located in the reinvestment zone
  for that year less the tax increment base of the unit.
         (c)  The tax increment base of a taxing unit is the total
  appraised value of all real property taxable by the unit and located
  in the reinvestment zone for the year in which the zone was
  designated.
         Sec. 311A.010.  COLLECTION AND DEPOSIT OF TAX INCREMENTS.  
  (a)  Each taxing unit that taxes real property located in the
  reinvestment zone shall provide for the collection of its taxes in
  the zone as for any other property taxed by the unit.
         (b)  Each taxing unit shall pay into the tax increment fund
  for the zone an amount equal to the tax increment produced by the
  unit.
         (c)  A taxing unit shall make a payment required by
  Subsection (b) not later than the 90th day after the delinquency
  date for the unit's property taxes. A delinquent payment incurs a
  penalty of five percent of the amount delinquent and accrues
  interest at an annual rate of 10 percent.
         (d)  Notwithstanding Subsection (c), a taxing unit is not
  required to pay into the tax increment fund the applicable portion
  of a tax increment attributable to delinquent taxes until those
  taxes are collected.
         Sec. 311A.011.  TAX INCREMENT FUND.  (a)  In addition to the
  deposits required by Section 311A.010, all revenues from the sale
  of tax increment bonds or notes and other revenues to be used in the
  reinvestment zone shall be deposited in the tax increment fund.
         (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 repay other
  obligations incurred for the zone.
         (c)  Subject to an agreement with the holders of tax
  increment bonds or notes, money in a tax increment fund may be
  temporarily invested in the same manner as other funds of the
  county.
         (d)  After all project costs, 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 county and all other taxing units levying taxes
  on property in the zone in proportion to the 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.
         Sec. 311A.012.  TAX INCREMENT BONDS AND NOTES.  In relation
  to tax increment bonds and notes, the county has the same authority
  as a municipality under Section 311.015, and that section applies
  to tax increment bonds and notes issued under this chapter.
         Sec. 311A.013.  TERMINATION OF REINVESTMENT ZONE.  The
  reinvestment zone terminates on the earlier of:
               (1)  the termination date designated in the order
  designating the zone or an earlier termination date designated by
  an order adopted subsequent to that order; or
               (2)  the date on which all costs, tax increment bonds
  and interest on those bonds, and other obligations have been paid in
  full.
         SECTION 2.  This Act takes effect January 1, 2010, but only
  if the constitutional amendment authorizing Bexar County to issue
  bonds or notes to finance the acquisition of real property and the
  construction of a building or facility on the property for use by an
  institution of higher education and to pledge for repayment of
  those bonds or notes increases in revenues from ad valorem taxes
  imposed by the county and other political subdivisions on property
  located in a designated area of the county is approved by the
  voters. If that amendment is not approved by the voters, this Act
  has no effect.