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A BILL TO BE ENTITLED
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AN ACT
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relating to the restriction on powers of certain municipalities, |
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relating to the terms that may not be contained in a development |
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agreement, and other restrictions for a reinvestment zone under the |
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Tax Increment Financing Act. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 311.087(a)(1)(B), Tax Code, is amended |
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to read as follows: |
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Sec. 311.087. RESTRICTION ON POWERS OF CERTAIN MUNICIPALITIES. |
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(a) This section applies only to a proposed reinvestment |
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zone: |
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(1) the designation of which is requested in a |
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petition submitted under Section 311.005(a)(4) before July 31, |
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2004, to the governing body of a home-rule municipality that: |
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(A) has a population of more than 1.1 million; |
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(B) is located in a county with a population of |
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2.2 million or less; and |
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SECTION 2. Section 311.0087, Tax Code, is amended by |
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amending Subsection (b) thereto; adding Subsections (b)(4), |
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(b)(5), (c) and (d) thereto; and to read as follows: |
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(b) If the municipality currently imposes a fee of more than |
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$25,000 for processing the petition, the municipality may not |
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require a property owner who submitted the a petition, as a |
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condition of designating the reinvestment zone or approving a |
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development agreement, interlocal agreement, or project plan for |
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the proposed reinvestment zone: |
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(1) to waive any rights of the owner under Chapter 245, |
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Local Government Code, or under any agreed order or settlement |
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agreement to which the municipality is a party; |
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(2) to dedicate more than 20 percent of the owner's |
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land in the area described in the petition as open-space land; or |
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(3) to use a nonconventional use pattern for a |
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development to be located within the proposed reinvestment zone; or |
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(4) agree to waive the right to file adversarial |
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proceedings for declaratory, injunctive or other relief related to |
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the provisions of an agreement which is approved by the governing |
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body which created the zone; or |
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(5) allow for termination of the zone in the event an |
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adversarial action is brought to enforce an agreement for |
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reimbursement to a developer or other party which has been approved |
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by the board of a reinvestment zone and the governing body which |
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created the zone. |
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(c) If a provision or condition identified in Section |
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311.087(b)(1-5) is contained in a development agreement, said |
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provision is void as a matter of public policy. |
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(d) Each tax increment fund established for the zone by the |
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municipality pursuant to Section 311.004(a)(6), may only be |
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deposited and maintained in a physically separate depository |
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account, and may not be commingled with any other funds of the board |
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or governing body. Failure to comply with this section is an act of |
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official misconduct by the governing body's chief executive |
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officer. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |