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A BILL TO BE ENTITLED
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AN ACT
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relating to the extension of the term of a reinvestment zone created |
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under the Tax Increment Financing Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 311.017, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) A reinvestment zone terminates on the earlier of: |
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(1) the termination date designated in the ordinance |
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or order, as applicable, creating the zone or an earlier or later |
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termination date designated by an ordinance or order adopted |
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subsequent to the ordinance or order creating the zone; or |
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(2) the date on which all project costs, tax increment |
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bonds and interest on those bonds, and other obligations have been |
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paid in full. |
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(a-1) Notwithstanding the designation of a later |
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termination date under Subsection (a), a taxing unit that taxes |
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real property located in the zone, other than the municipality or |
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county that created the zone, is not required to pay any of its tax |
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increment into the tax increment fund for the zone after the |
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termination date designated in the ordinance or order creating the |
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zone unless the governing body of the taxing unit enters into an |
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agreement to do so with the governing body of the municipality or |
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county that created the zone. |
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SECTION 2. (a) The legislature validates and confirms all |
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governmental acts and proceedings of a municipality or county that |
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were taken before the effective date of this Act and relate to or |
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are associated with the extension of the term of a reinvestment zone |
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created by the municipality or county under Chapter 311, Tax Code, |
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as of the dates on which they occurred. The acts and proceedings |
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may not be held invalid because they were not in accordance with |
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Chapter 311, Tax Code, or other law. |
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(b) Subsection (a) of this section does not apply to any |
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matter that on the effective date of this Act: |
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(1) is involved in litigation if the litigation |
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ultimately results in the matter being held invalid by a final |
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judgment of a court; or |
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(2) has been held invalid by a final judgment of a |
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court. |
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SECTION 3. 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. |