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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 certain |
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intermunicipal commuter rail districts. |
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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, is amended |
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by adding Subdivision (2-a) to read as follows: |
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(2-a) "Commuter rail service" means the |
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transportation of passengers and baggage by rail between locations |
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in a district. |
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SECTION 2. Section 173.256, Transportation Code, is amended |
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by amending Subsections (b) and (d) and adding Subsection (d-1) 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. The district and the local government may |
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agree that, at one or more specified times, the local government |
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will pay to the district an amount that is calculated on the basis |
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of increased ad valorem tax collections in a zone that are |
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attributable to increased values of property located in the zone |
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resulting from an infrastructure project. Except as provided by |
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Subsection (d-1), the [The] amount may not exceed an amount that is |
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equal to 30 percent of the increase in ad valorem tax collections |
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for the specified period. |
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(d-1) A transportation infrastructure zone of a district |
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established before January 1, 2005, 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 and must include a commuter rail facility or the site of |
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a proposed commuter rail facility. The amount paid by a local |
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government under Subsection (d) to a district established before |
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January 1, 2005, may not exceed an amount that is equal to the |
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increase in ad valorem tax collections in the zone for the specified |
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period. |
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SECTION 3. Subchapter G, Chapter 173, Transportation Code, |
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is amended by adding Sections 173.305 and 173.306 to read as |
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follows: |
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Sec. 173.305. TAX INCREMENT FUND FOR TRANSPORTATION |
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INFRASTRUCTURE ZONE IN CERTAIN DISTRICTS. A district established |
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before January 1, 2005, that creates a transportation |
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infrastructure zone shall establish a tax increment fund. In |
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addition to the amount of tax increment deposited to the tax |
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increment fund, all revenue from the sale of tax increment bonds or |
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notes under Section 173.306, revenue from the sale of any property |
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acquired as part of a plan adopted to use tax increment financing, |
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and other revenue to be used in implementing the plan shall be |
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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 IN CERTAIN DISTRICTS. (a) This section applies |
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only to a district created before January 1, 2005. |
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(b) A local government member of a district creating a |
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transportation infrastructure zone may issue tax increment bonds or |
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notes, including refunding bonds, secured by revenue in the local |
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government's tax increment fund. Proceeds of bonds issued under |
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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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(c) 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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(d) 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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(e) 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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(f) 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. |