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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of projects in the boundaries of an |
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intermunicipal commuter rail district. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 173.002, Transportation Code, as |
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effective April 1, 2011, is amended by adding Subdivision (2-a) to |
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read as follows: |
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(2-a) "Commuter rail service" means the transportation |
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of passengers and baggage by rail between locations in a district. |
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SECTION 2. Sections 173.256(b), (d), and (e), |
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Transportation Code, as effective April 1, 2011, are amended to |
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read as follows: |
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(b) A district may enter into an interlocal contract with |
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one or more [a] local government members [member] for the financing |
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of transportation infrastructure that is constructed or that is to |
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be constructed in the territory of the local governments |
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[government] by the district. |
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(d) The agreement may establish one or more transportation |
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infrastructure zones, which may consist of a contiguous or |
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noncontiguous geographic area in the territory of one or more local |
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governments. The district and the local government may agree that, |
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at one or more specified times, the local government will pay to the |
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district an amount that is calculated on the basis of increased ad |
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valorem tax collections in a zone that are attributable to |
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increased values of property located in the zone resulting from an |
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infrastructure project. The amount may not equal or exceed an |
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amount that is equal to [30 percent of] the increase in ad valorem |
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tax collections in the zone for the specified period. |
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(e) Money received by the district under this section may be |
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used: |
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(1) to provide a local match for the acquisition of |
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right-of-way in the territory of the local government; [or] |
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(2) for design, construction, operation, or |
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maintenance of transportation facilities in the territory of the |
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local government; |
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(3) to pay economic development costs associated with |
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district projects, including: |
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(A) a portion of the cost of affordable housing |
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in a transportation infrastructure zone; or |
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(B) assistance to a private entity to provide |
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affordable housing in the transportation infrastructure zone; or |
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(4) to acquire property rights for underdeveloped |
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lands in the transportation infrastructure zone to be preserved for |
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the benefit of the public. |
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SECTION 3. Subchapter G, Chapter 173, Transportation Code, |
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as effective April 1, 2011, is amended by adding Sections 173.305 |
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and 173.306 to read as follows: |
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Sec. 173.305. TAX INCREMENT FUND FOR TRANSPORTATION |
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INFRASTRUCTURE ZONE. The district shall establish a tax increment |
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fund. In addition to the amount of tax increment deposited to the |
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tax increment fund, all revenue from the sale of tax increment bonds |
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or notes under Section 173.306, revenue from the sale of any |
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property acquired as part of a plan adopted to use tax increment |
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financing, and other revenue to be used in implementing the plan |
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shall be deposited in the tax increment fund for the zone. |
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Sec. 173.306. TAX INCREMENT BONDS AND NOTES ISSUED BY LOCAL |
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GOVERNMENT MEMBER. (a) A local government member of a district |
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creating a transportation infrastructure zone may issue tax |
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increment bonds or notes, including refunding bonds, secured by |
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revenue in the local government's tax increment fund. Proceeds of |
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bonds issued under this section may be used to: |
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(1) pay project costs for the zone on behalf of which |
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the bonds or notes were issued; or |
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(2) satisfy claims of holders of the bonds or notes. |
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(b) Tax increment bonds and notes are payable, as to both |
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principal and interest, solely from the tax increment fund |
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established for the transportation infrastructure zone. The local |
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government may pledge irrevocably all or part of the fund for |
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payment of tax increment bonds or notes. The part of the fund |
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pledged in payment may be used only for the payment of the bonds or |
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notes or interest on the bonds or notes until the bonds or notes |
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have been fully paid. A holder of the bonds or notes or of coupons |
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issued on the bonds has a lien against the fund for payment of the |
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bonds or notes and interest on the bonds or notes and may protect or |
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enforce the lien at law or in equity. |
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(c) A tax increment bond or note is not a general obligation |
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of the local government issuing the bond or note. A tax increment |
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bond or note does not give rise to a charge against the general |
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credit or taxing powers of the local government and is not payable |
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except as provided by this section. |
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(d) A local government's obligation to deposit sales and use |
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taxes into the tax increment fund is not a general obligation of the |
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local government. An obligation to make payments from sales and |
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use taxes does not give rise to a charge against the general credit |
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or taxing powers of the local government and is not payable except |
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as provided by this section. A tax increment bond or note issued |
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under this section that pledges payments must state the |
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restrictions of this section on its face. |
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(e) A tax increment bond or note may not be included in any |
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computation of the debt of the issuing local government. |
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SECTION 4. This Act takes effect September 1, 2011. |