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A BILL TO BE ENTITLED
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AN ACT
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relating to tax increment financing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 311.004, Tax Code, is amended by adding |
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Subsection (d) to read as follows: |
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(d) For purposes of Subsection (a)(4), an order or ordinance |
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designating a reinvestment zone that is adopted on or after |
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September 1, 2015, must provide that the zone terminates not later |
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than the 10th anniversary of the date on which the ordinance or |
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order designating the zone is adopted. |
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SECTION 2. Section 311.006(a), Tax Code, is amended to read |
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as follows: |
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(a) A municipality may not designate a reinvestment zone if: |
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(1) more than 10 [30] percent of the property in the |
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proposed zone, excluding property that is publicly owned, is used |
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for residential purposes; or |
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(2) the total appraised value of taxable real property |
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in the proposed zone and in existing reinvestment zones exceeds 10 |
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[:
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[(A) 25] percent of the total appraised value of |
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taxable real property in the municipality and in the industrial |
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districts created by the municipality[, if the municipality has a
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population of 100,000 or more; or
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[(B)
50 percent of the total appraised value of
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taxable real property in the municipality and in the industrial
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districts created by the municipality, if the municipality has a
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population of less than 100,000]. |
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SECTION 3. The heading to Section 311.007, Tax Code, is |
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amended to read as follows: |
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Sec. 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE; |
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LIMITATION ON EXTENSION OF TERM. |
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SECTION 4. Section 311.007, Tax Code, is amended by |
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amending Subsection (c) and adding Subsections (d) and (e) to read |
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as follows: |
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(c) Subject to Subsections (d) and (e), the [The] governing |
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body of the municipality or county that designated a reinvestment |
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zone by ordinance or resolution or by order or resolution, |
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respectively, may extend the term of all or a portion of the zone |
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after notice and hearing in the manner provided for the designation |
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of the zone. A taxing unit other than the municipality or county |
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that designated the zone is not required to participate in the zone |
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or portion of the zone for the extended term unless the taxing unit |
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enters into a written agreement to do so. |
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(d) Except as provided by Subsection (e), the term of all or |
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any portion of a reinvestment zone may not be extended beyond the |
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10th anniversary of the date on which the ordinance or order |
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designating the zone is adopted. |
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(e) This subsection applies only to a reinvestment zone |
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designated before September 1, 2015, the term of which extends |
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beyond the period prescribed by Subsection (d). A reinvestment |
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zone to which this subsection applies must terminate on the earlier |
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of: |
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(1) the termination date expressed in the ordinance or |
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order designating the zone or an earlier termination date |
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designated by an ordinance or order adopted under Subsection (c); |
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or |
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(2) the date on which all project costs, tax increment |
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bonds and interest on those bonds, and other obligations of the zone |
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have been paid in full. |
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SECTION 5. Chapter 311, Tax Code, is amended by adding |
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Section 311.0111 to read as follows: |
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Sec. 311.0111. RESTRICTION ON BOARD'S AUTHORITY TO AMEND |
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PLAN. The board of directors of a reinvestment zone may not adopt, |
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and the governing body of a municipality may not approve, an |
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amendment to the project plan if: |
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(1) the median appraised value of taxable real |
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property located in the zone equals or exceeds the median appraised |
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value of taxable real property that is located outside the |
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boundaries of the zone and that is within the designating |
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municipality's corporate boundaries and extraterritorial |
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jurisdiction; and |
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(2) the amendment is required under Section 311.011(e) |
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to be approved by ordinance adopted after a public hearing that |
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satisfies the procedural requirements of Sections 311.003(c) and |
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(d). |
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SECTION 6. Sections 311.015(a) and (c), Tax Code, are |
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amended to read as follows: |
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(a) Subject to Subsection (c), a [A] municipality |
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designating a reinvestment zone may issue tax increment bonds or |
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notes, the proceeds of which may be used to make payments pursuant |
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to agreements made under Section 311.010(b), to pay project costs |
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for the reinvestment zone on behalf of which the bonds or notes were |
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issued, or to satisfy claims of holders of the bonds or notes. The |
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municipality may issue refunding bonds or notes for the payment or |
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retirement of tax increment bonds or notes previously issued by it. |
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(c) Tax increment bonds and notes are issued by ordinance of |
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the municipality after the [without any additional] approval of the |
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qualified voters of the municipality as provided by Section |
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311.0151 [other than that of the attorney general]. |
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SECTION 7. Chapter 311, Tax Code, is amended by adding |
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Section 311.0151 to read as follows: |
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Sec. 311.0151. BOND ELECTION REQUIRED. (a) A municipality |
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may issue tax increment bonds and notes under Section 311.015 as |
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provided by this section. |
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(b) A municipality may not authorize tax increment bonds and |
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notes unless a majority of the municipality's qualified voters who |
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vote at an election ordered for that purpose approve the issuance of |
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the bonds and notes. |
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(c) The municipality may order an election on the tax |
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increment bonds and notes. The order must contain the same |
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information contained in the notice of the election. |
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(d) The municipality shall publish notice of the election at |
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least once in a newspaper of general circulation in the |
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municipality. The notice must be published not later than the 31st |
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day before election day. |
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(e) In addition to the contents of the notice required by |
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the Election Code, the notice must state: |
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(1) the amount of bonds or notes to be authorized; and |
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(2) the maximum maturity of the bonds or notes. |
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SECTION 8. (a) Section 311.006(a), Tax Code, as amended by |
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this Act, applies only to a reinvestment zone designated on or after |
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the effective date of this Act. A reinvestment zone designated |
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before the effective date of this Act is governed by the law in |
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effect on the date the zone was designated, and the former law is |
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continued in effect for that purpose. |
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(b) Section 311.0111, Tax Code, as added by this Act, |
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applies only to an amendment to a reinvestment zone project plan |
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proposed on or after the effective date of this Act. An amendment |
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proposed before the effective date of this Act is governed by the |
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law in effect on the date the amendment was proposed, and the former |
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law is continued in effect for that purpose. |
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(c) Section 311.015, Tax Code, as amended by this Act, and |
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Section 311.0151, Tax Code, as added by this Act, apply only to |
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bonds issued on or after the effective date of this Act. Bonds |
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issued before the effective date of this Act are governed by the law |
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in effect on the date the bonds were issued, and the former law is |
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continued in effect for that purpose. |
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SECTION 9. This Act takes effect September 1, 2015. |