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A BILL TO BE ENTITLED
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AN ACT
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relating to the purposes and designation of a municipal |
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transportation reinvestment zone. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 222.105, Transportation Code, is amended |
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to read 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; and |
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(5) enhance a municipality's ability to provide for |
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freight or passenger rail facilities or systems. |
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SECTION 2. Section 222.106, Transportation Code, is amended |
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by amending Subsections (b), (c), (g), (i), and (j) and adding |
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Subsections (k-1) and (m) to read as follows: |
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(b) This section applies only to a municipality the |
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governing body of which intends to: |
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(1) enter into an agreement with the department under |
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Section 222.104; or |
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(2) acquire, construct, improve, or operate a freight |
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or passenger rail facility or system, including commuter rail, |
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intercity rail, high-speed rail, and tri-track. |
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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: |
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(1) a transportation project described by Section |
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222.104 that cultivates development or redevelopment of the area; |
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or |
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(2) the acquisition, construction, improvement, or |
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operation of a freight or passenger rail facility or system by the |
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municipality. |
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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 or rail project will cultivate development or |
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redevelopment of the zone; and |
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(6) for a zone intended to promote the acquisition, |
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construction, improvement, or operation of a freight or passenger |
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rail facility or system, provide a date for termination of the zone. |
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(i) Money deposited to a tax increment account must be used, |
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as applicable, to fund: |
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(1) projects authorized under Section 222.104, |
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including the repayment of amounts owed under an agreement entered |
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into under that section; or |
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(2) the acquisition, construction, improvement, or |
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operation of a freight or passenger rail facility or system. |
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(j) Except as provided by Subsections [Subsection] (k) and |
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(k-1), a transportation reinvestment zone terminates on December 31 |
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of the year in which the municipality complies with a contractual |
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requirement, if any, that included the pledge of money deposited to |
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a tax increment account or the repayment of money owed under the |
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agreement under Section 222.104 in connection with which the zone |
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was designated. |
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(k-1) A transportation reinvestment zone designated to |
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promote the acquisition, construction, improvement, or operation |
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of a freight or passenger rail facility or system terminates on the |
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earlier of: |
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(1) the termination date specified in the ordinance |
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designating the zone or an earlier or later termination date |
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specified by an ordinance adopted subsequent to the ordinance |
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designating the zone; or |
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(2) the date on which all costs incurred in the |
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acquisition, construction, improvement, or operation of the |
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freight or passenger rail facility or system, tax increment bonds |
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and interest on those bonds, and other obligations have been paid in |
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full. |
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(m) In this section, "rail facility" has the meaning |
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assigned by Section 91.001. |
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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. |