By: Tepper (Senate Sponsor - Perry) H.B. No. 2313

(In the Senate - Received from the House May 15, 2025; May 19, 2025, read first time and referred to Committee on Economic Development; May 25, 2025, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; May 25, 2025, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 2313 By: Sparks

A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain municipalities to use certain tax revenue for certain qualified projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 351.1015(a)(4), Tax Code, is amended to read as follows:

(4) "Project financing zone" means an area within a municipality:

(A) that the municipality by ordinance or by agreement under Chapter 380, Local Government Code, designates as a project financing zone;

(B) the boundaries of which are:

(i) within a three-mile radius of the center of a qualified project; or

(ii) if designated by a municipality described by Section 351.001(7)(B) on or before December 31, 2024, a continuous geographic area the total area of which is less than or equal to the maximum area allowed under Subparagraph (i) that contains the qualified project;

(C) the designation of which specifies:

(i) for a zone the boundaries of which are prescribed by Paragraph (B)(i), the longitude and latitude of the center of the qualified project; or

(ii) for a zone the boundaries of which are prescribed by Paragraph (B)(ii), the exact boundaries of the zone; and

(D) the designation of which expires not later than the 30th anniversary of the date of designation.

SECTION 2. Section 351.1015(b), Tax Code, as amended by Chapters 644 (H.B. 4559), 779 (H.B. 5012), 927 (S.B. 2220), and 1110 (S.B. 1057), Acts of the 88th Legislature, Regular Session, 2023, is reenacted and amended to read as follows:

(b) This section applies only to a qualified project located in:

(1) a municipality with a population of at least 700,000 but less than 950,000 according to the most recent federal decennial census; [or]

(2) a municipality that contains more than 70 percent of the population of a county with a population of 1.5 million or more;

(3) [(2)] a municipality described by Section 351.001(7)(B);

(4) [or

[(3)] a municipality described by Section 351.152(61);

(5) [(2)] a municipality with a population of at least two million; or

(6) a municipality described by Section 351.152(14) with a population of more than 250,000.

SECTION 3. To the extent of any conflict, this Act prevails over another Act of the 89th Legislature, Regular Session, 2025, relating to nonsubstantive additions to and corrections in enacted codes.

SECTION 4. This Act takes effect September 1, 2025.

* * * * *