| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the permissible uses of money in an ad valorem tax |
|
|
increment account for a transportation reinvestment zone |
|
|
established by a municipality. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 222.106(c), (g), (i), and (j), |
|
|
Transportation Code, are amended to read as follows: |
|
|
(c) If the governing body determines an area to be |
|
|
unproductive and underdeveloped 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, including a transportation project that is the subject of |
|
|
an agreement under [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) establish an ad valorem tax increment account for |
|
|
the zone; [and] |
|
|
(5) contain findings that promotion of the |
|
|
transportation project will cultivate development or redevelopment |
|
|
of the zone; and |
|
|
(6) provide a termination date for a zone that does not |
|
|
involve a transportation project that is the subject of an |
|
|
agreement under Section 222.104. |
|
|
(i) Money deposited to a tax increment account must be used |
|
|
to fund: |
|
|
(1) projects authorized under Section 222.104, |
|
|
including the repayment of amounts owed under an agreement entered |
|
|
into under that section; or |
|
|
(2) other transportation projects of the municipality |
|
|
that are located in the transportation reinvestment zone for which |
|
|
the tax increment account was established. |
|
|
(j) Except as provided by Subsection (k), a transportation |
|
|
reinvestment zone: |
|
|
(1) that involves a transportation project that is the |
|
|
subject of an agreement under Section 222.104 terminates on |
|
|
December 31 of the year in which the municipality complies with a |
|
|
contractual requirement, if any, that included the pledge of money |
|
|
deposited to a tax increment account or the repayment of money owed |
|
|
under the agreement under Section 222.104 in connection with which |
|
|
the zone was designated; or |
|
|
(2) that does not involve a transportation project |
|
|
that is the subject of an agreement under Section 222.104 |
|
|
terminates on the date provided under Subsection (g)(6). |
|
|
SECTION 2. Section 222.106(b), Transportation Code, is |
|
|
repealed. |
|
|
SECTION 3. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2009. |