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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of two or more municipalities to |
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designate a joint tax increment financing reinvestment zone. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 311, Tax Code, is amended by adding |
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Section 311.0035 to read as follows: |
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Sec. 311.0035. PROCEDURE FOR DESIGNATING JOINT |
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REINVESTMENT ZONE. (a) The governing bodies of two or more |
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municipalities by ordinance adopted by each municipality may |
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designate a contiguous area in the jurisdiction of each of the |
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municipalities to be a joint reinvestment zone. Except as |
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otherwise provided by this section, each of the municipalities must |
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follow the procedures provided by Section 311.003 to designate an |
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area as a joint reinvestment zone. The ordinances adopted by all of |
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the municipalities designating an area as a joint reinvestment zone |
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must contain the same terms and 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) create a board of directors for the zone and |
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specify: |
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(A) the number of directors; |
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(B) the qualifications of directors; |
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(C) the manner in which directors are appointed; |
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(D) the terms of directors; |
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(E) the manner in which vacancies on the board |
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are filled; and |
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(F) the manner by which officers of the board are |
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selected; |
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(3) provide that the zone takes effect immediately on |
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adoption of the ordinance by the last of the municipalities in the |
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jurisdiction of which the area contained in the zone is located; |
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(4) provide a termination date for the zone; |
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(5) assign a name to the zone for identification |
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purposes, which may include the name of one or more of the |
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designating municipalities and may contain a number; |
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(6) establish a tax increment fund for the zone; and |
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(7) contain findings that: |
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(A) improvements in the zone will significantly |
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enhance the value of all taxable real property in the zone and will |
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be of general benefit to the municipalities; and |
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(B) the area meets the requirements of Sections |
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311.005(a)(1) and (2) and (a-1). |
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(b) For purposes of complying with Subsection (a)(7)(A), |
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the ordinances are not required to identify the specific parcels of |
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real property to be enhanced in value. |
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(c) The restrictions applicable to other reinvestment zones |
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under Section 311.006 apply to a joint reinvestment zone designated |
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under this section. |
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(d) The boundaries of a joint reinvestment zone may be |
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enlarged or reduced by ordinance of the governing bodies of the |
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municipalities that designated the zone, subject to the |
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restrictions contained in this section. |
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(e) The municipalities designating a joint reinvestment |
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zone may exercise any power necessary and convenient to carry out |
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this section and the other provisions of this chapter, including |
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the powers listed in Section 311.008. |
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(f) Except as otherwise provided by this section, the board |
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of directors of a joint reinvestment zone has the same powers and |
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duties and is subject to the same limitations as the board of |
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directors of a reinvestment zone designated by a single |
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municipality. Sections 311.011, 311.012, 311.0123, 311.013, |
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311.014, 311.015, 311.016, 311.0163, and 311.018 apply to the |
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municipalities designating a joint reinvestment zone, except that a |
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reference in those sections to a municipality means all of the |
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municipalities designating a joint reinvestment zone and an action |
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required of a municipality under those sections is considered to be |
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required of all of the municipalities designating a joint |
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reinvestment zone. |
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(g) Expenditures from tax increment financing funds or |
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bonds secured by tax increment financing may be made without regard |
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to the location from which the funds were derived or the location |
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within the joint reinvestment zone at which the funds are spent, but |
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only if those expenditures are authorized as required by this |
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chapter. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |