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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to the use of money in a tax increment fund to pay costs | 
      
        |  | related to public improvements used for social services programs | 
      
        |  | that promote the development or redevelopment of a reinvestment | 
      
        |  | zone. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Subsection (b), Section 311.008, Tax Code, is | 
      
        |  | amended to read as follows: | 
      
        |  | (b)  A municipality or county may exercise any power | 
      
        |  | necessary and convenient to carry out this chapter, including the | 
      
        |  | power to: | 
      
        |  | (1)  cause project plans to be prepared, approve and | 
      
        |  | implement the plans, and otherwise achieve the purposes of the | 
      
        |  | plan; | 
      
        |  | (2)  acquire real property by purchase, condemnation, | 
      
        |  | or other means to implement project plans and sell that property on | 
      
        |  | the terms and conditions and in the manner it considers advisable; | 
      
        |  | (3)  enter into agreements, including agreements with | 
      
        |  | bondholders, determined by the governing body of the municipality | 
      
        |  | or county to be necessary or convenient to implement project plans | 
      
        |  | and achieve their purposes, which agreements may include | 
      
        |  | conditions, restrictions, or covenants that run with the land or | 
      
        |  | that by other means regulate or restrict the use of land; and | 
      
        |  | (4)  consistent with the project plan for the zone: | 
      
        |  | (A)  acquire blighted, deteriorated, | 
      
        |  | deteriorating, undeveloped, or inappropriately developed real | 
      
        |  | property or other property in a blighted area or in a federally | 
      
        |  | assisted new community in the zone for the preservation or | 
      
        |  | restoration of historic sites, beautification or conservation, the | 
      
        |  | provision of public works or public facilities, or other public | 
      
        |  | purposes; | 
      
        |  | (B)  acquire, construct, reconstruct, or install | 
      
        |  | public works, facilities, or sites or other public improvements, | 
      
        |  | including utilities, streets, street lights, water and sewer | 
      
        |  | facilities, pedestrian malls and walkways, parks, flood and | 
      
        |  | drainage facilities, or parking facilities, but not including | 
      
        |  | educational facilities; [ or] | 
      
        |  | (C)  in a reinvestment zone created on or before | 
      
        |  | September 1, 1999, acquire, construct, or reconstruct educational | 
      
        |  | facilities in the municipality; or | 
      
        |  | (D)  in a reinvestment zone created in a county | 
      
        |  | that has a population of less than 1.5 million but in which a | 
      
        |  | municipality is primarily located that has a population of at least | 
      
        |  | 775,000, acquire, construct, reconstruct, renovate, rehabilitate, | 
      
        |  | install, or equip public improvements used or to be used for social | 
      
        |  | services programs in the zone, including improvements determined by | 
      
        |  | the municipality or county to be beneficial to: | 
      
        |  | (i)  providing basic necessities such as | 
      
        |  | food, clothing, shelter, health care, and mental health care; | 
      
        |  | (ii)  helping provide individuals and | 
      
        |  | families a transition out of poverty by ensuring the availability | 
      
        |  | of educational, employment, and other services that promote | 
      
        |  | self-reliance; | 
      
        |  | (iii)  preventing social problems through | 
      
        |  | education, preventive physical and mental health programs, crime | 
      
        |  | prevention programs, and other preventive programs; | 
      
        |  | (iv)  providing family and societal support | 
      
        |  | services, including education, child care, counseling and | 
      
        |  | assistance for the aging, youth, the homeless, and the unemployed, | 
      
        |  | rehabilitation services, and other similar support services; and | 
      
        |  | (v)  encouraging personal development and | 
      
        |  | community enrichment through cultural and educational programs. | 
      
        |  | SECTION 2.  Section 311.010, Tax Code, is amended by adding | 
      
        |  | Subsections (b-1) and (b-2) to read as follows: | 
      
        |  | (b-1)  An agreement under Subsection (b) relating to the | 
      
        |  | project plan or the reinvestment zone financing plan for a | 
      
        |  | reinvestment zone described by Section 311.008(b)(4)(D) may: | 
      
        |  | (1)  during the term of the agreement dedicate, pledge, | 
      
        |  | or otherwise provide for the use of revenue in the tax increment | 
      
        |  | fund to pay project costs relating to the cost of public | 
      
        |  | improvements described by Section 311.008(b)(4)(D); or | 
      
        |  | (2)  dedicate revenue from the tax increment fund to | 
      
        |  | pay the costs of operating or administering programs described by | 
      
        |  | Section 311.008(b)(4)(D). | 
      
        |  | (b-2)  A municipality or county may not use revenue from a | 
      
        |  | tax increment fund dedicated, pledged, or otherwise provided for a | 
      
        |  | purpose described by Subsection (b-1) to replace revenue the | 
      
        |  | municipality or county would otherwise have spent from other | 
      
        |  | sources 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. |