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A BILL TO BE ENTITLED
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AN ACT
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relating to the purposes and designation of a transportation |
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reinvestment zone. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 222, Transportation Code, |
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is amended by adding Section 222.1001 to read as follows: |
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Sec. 222.1001. DEFINITION. In this subchapter, |
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"transportation project" has the meaning assigned by Section |
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370.003. |
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SECTION 2. Section 222.105, Transportation Code, is amended |
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to read as follows: |
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Sec. 222.105. PURPOSES. The purposes of Sections 222.106 |
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and 222.107 are to: |
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(1) promote public safety; |
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(2) facilitate the improvement, development, or |
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redevelopment of property; |
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(3) facilitate the movement of traffic; and |
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(4) enhance a local entity's ability to sponsor a |
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transportation project [authorized under Section 222.104]. |
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SECTION 3. Sections 222.106(b), (c), (g), (i), (i-1), |
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(i-2), and (j), Transportation Code, are amended to read as |
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follows: |
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(b) This section applies only to a municipality in which a |
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transportation project is to be developed under Section 222.104 or |
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222.108. |
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(c) If the governing body determines an area to be |
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unproductive and underdeveloped and that action under this section |
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will further the purposes stated in Section 222.105, the governing |
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body of the municipality by ordinance may designate a contiguous |
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geographic area in the jurisdiction of the municipality to be a |
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transportation reinvestment zone to promote one or more [a] |
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transportation projects [project]. |
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(g) The ordinance designating an area as a transportation |
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reinvestment zone must: |
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(1) describe the boundaries of the zone with |
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sufficient definiteness to identify with ordinary and reasonable |
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certainty the territory included in the zone; |
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(2) provide that the zone takes effect immediately on |
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passage of the ordinance and that the base year shall be the year of |
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passage of the ordinance or some year in the future; |
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(3) assign a name to the zone for identification, with |
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the first zone designated by a municipality designated as |
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"Transportation Reinvestment Zone Number One, (City or Town, as |
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applicable) of (name of municipality)," and subsequently |
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designated zones assigned names in the same form, numbered |
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consecutively in the order of their designation; |
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(4) designate the base year for purposes of |
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establishing the tax increment base of the municipality; |
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(5) establish a tax increment account for the zone; |
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and |
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(6) contain findings that promotion of the |
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transportation project or projects will cultivate the improvement, |
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development, or redevelopment of the zone. |
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(i) All or the portion specified by the municipality of the |
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money deposited to a tax increment account must be used to fund the |
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transportation project or projects for which the zone was |
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designated, as well as aesthetic improvements within the zone. Any |
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remaining money deposited to the tax increment account may be used |
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for other purposes as determined by the municipality. A |
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municipality may issue bonds to pay all or part of the cost of a |
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[the] transportation project and may pledge and assign all or a |
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specified amount of money in the tax increment account to secure |
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repayment of those bonds. |
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(i-1) The governing body of a municipality may contract with |
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a public or private entity to develop, redevelop, or improve a |
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transportation project in a transportation reinvestment zone and |
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may pledge and assign all or a specified amount of money in the tax |
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increment account to that entity. After a pledge or assignment is |
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made, [if the entity that received the pledge or assignment has
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itself pledged or assigned that amount to secure bonds or other
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obligations issued to obtain funding for the transportation
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project,] the governing body of the municipality may not rescind |
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its pledge or assignment until the contractual commitments that are |
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the subject of [bonds or other obligations secured by] the pledge or |
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assignment have been satisfied [paid or discharged]. |
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(i-2) To accommodate changes in the limits of a [the] |
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project for which a reinvestment zone was designated, the |
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boundaries of a zone may be amended at any time, except that |
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property may not be removed or excluded from a designated zone if |
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any part of the tax increment account has been assigned or pledged |
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directly by the municipality or through another entity to secure |
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bonds or other obligations issued to obtain funding or development |
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of a [the] project, and property may not be added to a designated |
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zone unless the governing body of the municipality complies with |
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Subsections (e) and (g). |
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(j) Except as provided by Subsections (i-1) and (k), a |
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transportation reinvestment zone terminates on December 31 of the |
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year in which the municipality completes: |
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(1) all [a] contractual requirements [requirement, if
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any,] that included the pledge or assignment of all or a portion of |
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money deposited to a tax increment account; or |
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(2) the repayment of money owed under an agreement for |
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development, redevelopment, or improvement of the project or |
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projects for which the zone was designated. |
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SECTION 4. Sections 222.107(b), (c), (e), (f), (k-1), and |
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(l), Transportation Code, are amended to read as follows: |
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(b) This section applies only to a county in which a |
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transportation project is to be developed under Section 222.104 or |
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222.108. |
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(c) The commissioners court of the county, after |
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determining that an area is unproductive and underdeveloped and |
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that action under this section would further the purposes described |
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by Section 222.105, by order or resolution may designate a |
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contiguous geographic area in the jurisdiction of the county to be a |
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transportation reinvestment zone to promote one or more [a] |
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transportation projects [project and for the purpose of abating ad
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valorem taxes or granting other relief from taxes imposed by the
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county on real property located in the zone]. |
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(e) Not later than the 30th day before the date the |
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commissioners court proposes to designate an area as a |
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transportation reinvestment zone under this section, the |
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commissioners court must hold a public hearing on the creation of |
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the zone, its benefits to the county and to property in the proposed |
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zone, and the possible abatement of ad valorem taxes or the grant of |
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other relief from ad valorem taxes imposed by the county on real |
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property located in the zone. At the hearing an interested person |
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may speak for or against the designation of the zone, its |
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boundaries, or the possible abatement of or the relief from county |
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taxes on real property in the zone. Not later than the seventh day |
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before the date of the hearing, notice of the hearing and the intent |
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to create a zone must be published in a newspaper having general |
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circulation in the county. |
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(f) The order or resolution designating an area as a |
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transportation reinvestment zone must: |
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(1) describe the boundaries of the zone with |
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sufficient definiteness to identify with ordinary and reasonable |
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certainty the territory included in the zone; |
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(2) provide that the zone takes effect immediately on |
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adoption of the order or resolution and that the base year shall be |
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the year of passage of the order or resolution or some year in the |
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future; |
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(3) assign a name to the zone for identification, with |
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the first zone designated by a county designated as "Transportation |
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Reinvestment Zone Number One, County of (name of county)," and |
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subsequently designated zones assigned names in the same form |
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numbered consecutively in the order of their designation; |
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(4) designate the base year for purposes of |
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establishing the tax increment base of the county; [and] |
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(5) establish an ad valorem tax increment account for |
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the zone; and |
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(6) contain findings that promotion of the |
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transportation project or projects will cultivate the improvement, |
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development, or redevelopment of the zone. |
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(k-1) To accommodate changes in the limits of a [the] |
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project for which a reinvestment zone was designated, the |
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boundaries of a zone may be amended at any time, except that |
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property may not be removed or excluded from a designated zone if |
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any part of the tax increment or assessment has been assigned or |
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pledged directly by the county or through another entity to secure |
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bonds or other obligations issued to obtain funding or development |
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of a [the] project, and property may not be added to a designated |
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zone unless the commissioners court of the county complies with |
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Subsections (e) and (f). |
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(l) Except as provided by Subsection (m), a transportation |
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reinvestment zone, a tax abatement agreement entered into under |
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Subsection (h), or an order or resolution on the abatement of taxes |
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or the grant of relief from taxes under that subsection[,] |
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terminates on December 31 of the year in which the county completes: |
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(1) all [any] contractual requirements [requirement] |
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that included the pledge or assignment of all or a portion of: |
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(A) money deposited to a tax increment account; |
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or |
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(B) the assessments collected under this |
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section; or |
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(2) the repayment of money owed under an agreement for |
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the development, redevelopment, or improvement of the project or |
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projects for which the zone was designated. |
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SECTION 5. Section 222.107(h), Transportation Code, as |
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amended by Chapters 475 (H.B. 563) and 1345 (S.B. 1420), Acts of the |
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82nd Legislature, Regular Session, 2011, is reenacted to read as |
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follows: |
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(h) The commissioners court may: |
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(1) from taxes collected on property in a zone, pay |
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into a tax increment account for the zone an amount equal to the tax |
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increment produced by the county less any amounts allocated under |
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previous agreements, including agreements under Section 381.004, |
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Local Government Code, or Chapter 312, Tax Code; |
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(2) by order or resolution enter into an agreement |
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with the owner of any real property located in the transportation |
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reinvestment zone to abate all or a portion of the ad valorem taxes |
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or to grant other relief from the taxes imposed by the county on the |
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owner's property in an amount not to exceed the amount calculated |
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under Subsection (a)(1) for that year; |
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(3) by order or resolution elect to abate all or a |
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portion of the ad valorem taxes imposed by the county on all real |
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property in a zone; or |
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(4) grant other relief from ad valorem taxes on |
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property in a zone. |
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SECTION 6. Section 222.107(h-1), Transportation Code, as |
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added by Chapter 1345 (S.B. 1420), Acts of the 82nd Legislature, |
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Regular Session, 2011, is reenacted and amended to conform to |
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Section 222.107(h), Transportation Code, as amended by Chapter 475 |
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(H.B. 563), Acts of the 82nd Legislature, Regular Session, 2011, to |
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read as follows: |
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(h-1) All abatements or other relief granted by the |
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commissioners court in a transportation reinvestment zone must be |
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equal in rate. In any ad valorem tax year, the total amount of the |
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taxes abated or the total amount of relief granted under this |
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section may not exceed the amount calculated under Subsection |
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(a)(1) for that year, less any amounts allocated under previous |
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agreements, including agreements under Chapter 381 [Section
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381.004], Local Government Code, or Chapter 312, Tax Code. |
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SECTION 7. Section 222.107(h-1), Transportation Code, as |
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added by Chapter 475 (H.B. 563), Acts of the 82nd Legislature, |
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Regular Session, 2011, is redesignated as Section 222.107(h-2), |
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Transportation Code, and amended to read as follows: |
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(h-2) [(h-1)] To further the development of the |
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transportation project or projects for which the transportation |
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reinvestment zone was designated, a county may assess all or part of |
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the cost of the transportation project or projects against property |
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within the zone. The assessment against each property in the zone |
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may be levied and payable in installments in the same manner as |
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provided by Sections 372.016-372.018, Local Government Code, |
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provided that the installments do not exceed the total amount of the |
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tax abatement or other relief granted under Subsection (h). The |
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county may elect to adopt and apply the provisions of Sections |
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372.015-372.020 and 372.023, Local Government Code, to the |
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assessment of costs and Sections 372.024-372.030, Local Government |
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Code, to the issuance of bonds by the county to pay the cost of a |
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transportation project. The commissioners court of the county may |
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contract with a public or private entity to develop, redevelop, or |
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improve a transportation project in the transportation |
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reinvestment zone, including aesthetic improvements, and may |
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pledge and assign to that entity all or a specified amount of the |
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revenue the county receives from the tax increment or the |
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installment payments of the assessments for the payment of the |
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costs of that transportation project. After a pledge or assignment |
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is made, [if the entity that received the pledge or assignment has
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itself pledged or assigned that amount to secure bonds or other
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obligations issued to obtain funding for the transportation
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project,] the commissioners court of the county may not rescind its |
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pledge or assignment until the contractual commitments that are the |
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subject of [bonds or other obligations secured by] the pledge or |
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assignment have been satisfied [paid or discharged]. Any amount |
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received from the tax increment or the installment payments of the |
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assessments not pledged or assigned in connection with a [the] |
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transportation project may be used for other purposes as determined |
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by the commissioners court [associated with the transportation
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project or in the zone]. |
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SECTION 8. Section 222.108(a), Transportation Code, is |
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amended to read as follows: |
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(a) A [Notwithstanding the requirement in Sections
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222.106(b) and 222.107(b) that a transportation reinvestment zone
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be established in connection with a project under Section 222.104,
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a] municipality or county may establish a transportation |
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reinvestment zone for one or more [any] transportation projects |
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[project]. If all or part of a [the] transportation project is |
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subject to oversight by the department, at the option of the |
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governing body of the municipality or county, the department, to |
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the extent permitted by law, shall delegate full responsibility for |
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the development, design, letting of bids, and construction of the |
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project, including project inspection, to the municipality or |
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county. After assuming responsibility for a project under this |
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subsection, a municipality or county shall enter into an agreement |
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with the department that prescribes: |
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(1) the development process; |
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(2) the roles and responsibilities of the parties; and |
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(3) the timelines for any required reviews or |
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approvals. |
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SECTION 9. Section 222.110(e), Transportation Code, is |
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amended to read as follows: |
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(e) The sales and use taxes to be deposited into the tax |
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increment account under this section may be disbursed from the |
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account only to: |
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(1) pay for projects authorized under Section 222.104 |
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or 222.108 [, including the repayment of amounts owed under an
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agreement entered into under that section]; and |
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(2) notwithstanding Sections 321.506 and 323.505, Tax |
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Code, satisfy claims of holders of tax increment bonds, notes, or |
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other obligations issued or incurred for projects authorized under |
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Section 222.104 or 222.108. |
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SECTION 10. Subchapter E, Chapter 222, Transportation Code, |
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is amended by adding Section 222.111 to read as follows: |
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Sec. 222.111. TRANSPORTATION REINVESTMENT ZONES FOR |
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PROJECTS LOCATED IN OTHER JURISDICTIONS. Notwithstanding any other |
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law, the governing body of a county or municipality may designate a |
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transportation reinvestment zone for a transportation project |
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located outside the boundaries of the county or municipality if: |
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(1) the county or municipality finds that: |
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(A) the project will benefit the property and |
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residents located in the zone; and |
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(B) the creation of the zone will serve a public |
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purpose of that county or municipality; |
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(2) a zone has been designated for the same project by |
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one or more counties or municipalities in whose boundaries the |
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project is located; and |
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(3) an agreement for joint support of the designated |
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zones is entered into under this section by: |
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(A) the county or municipality whose boundaries |
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do not contain the project; and |
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(B) one or more of the counties or municipalities |
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that have designated a zone for the project and in whose boundaries |
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the project is located. |
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SECTION 11. Sections 222.107(i-1) and 222.108(d), |
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Transportation Code, are repealed. |
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SECTION 12. This Act takes effect September 1, 2013. |