By: Davis S.B. No. 627
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the participation by certain taxing units in tax
  increment financing and the payment of tax increments into the tax
  increment fund for a reinvestment zone.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 311.013, Tax Code, is amended by
  amending Subsection (c) and adding Subsections (c-1), (f-1), and
  (f-2) to read as follows:
         (c)  Notwithstanding any termination of the reinvestment
  zone under Section 311.017(a) and unless otherwise specified by an
  agreement between the taxing unit and the municipality or county
  that created the zone, a taxing unit shall make a payment required
  by Subsection (b) not later than the 90th day after the later of:
               (1)  the delinquency date for the unit's property
  taxes; or
               (2)  the date the municipality or county that created
  the zone submits to the taxing unit an invoice specifying the tax
  increment produced by the taxing unit and the amount the taxing unit
  is required to pay into the tax increment fund for the zone.
         (c-1)  A delinquent payment incurs a penalty of five percent
  of the amount delinquent and accrues interest at an annual rate of
  10 percent.
         (f-1)  This subsection does not apply to a hospital district
  to which Section 281.095, Health and Safety Code, applies.  
  Notwithstanding Subsection (f), the commissioners court of a county
  that enters into an agreement with the governing body of a
  municipality under Subsection (f) may enter into an agreement with
  the governing body of the municipality under that subsection on
  behalf of a taxing unit other than the county if by statute the ad
  valorem tax rate of the other taxing unit is approved by the
  commissioners court or the commissioners court is expressly
  required by statute to levy the ad valorem taxes of the other taxing
  unit. The agreement entered into on behalf of the other taxing unit
  is not required to contain the same conditions as the agreement
  entered into on behalf of the county. This subsection does not
  authorize the commissioners court of a county to enter into an
  agreement on behalf of another taxing unit solely because the
  county tax assessor-collector is required by law to assess or
  collect the taxing unit's ad valorem taxes.
         (f-2)  This subsection does not apply to a hospital district
  to which Section 281.095, Health and Safety Code, applies.  
  Notwithstanding Subsection (f), the commissioners court of a county
  that creates a zone may provide by order for the payment into the
  tax increment fund for the zone of a portion of the tax increment
  produced by a taxing unit other than the county if by statute the ad
  valorem tax rate of the other taxing unit is approved by the
  commissioners court or the commissioners court is expressly
  required by statute to levy the ad valorem taxes of the other taxing
  unit. The order may include conditions for payment of that tax
  increment into the fund that are different from the conditions
  applicable to the county's obligation to pay into the fund the tax
  increment produced by the county. This subsection does not
  authorize the commissioners court of a county to provide for the
  payment into the fund of a portion of the tax increment produced by
  another taxing unit solely because the county tax
  assessor-collector is required by law to assess or collect the
  taxing unit's ad valorem taxes.
         SECTION 2.  This Act applies only to a taxing unit's tax
  increment for a period occurring on or after the effective date of
  this Act. A taxing unit's tax increment for a period occurring
  before the effective date of this Act is governed by the law in
  effect for that period, and the former law is continued in effect
  for that purpose.
         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, 2011.