81R1131 JD-F
By: Kuempel H.B. No. 1159
A BILL TO BE ENTITLED
AN ACT
relating to the extension of the term of a reinvestment zone created
under the Tax Increment Financing Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.017, Tax Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) A reinvestment zone terminates on the earlier of:
(1) the termination date designated in the ordinance
or order, as applicable, creating the zone or an earlier or later
termination date designated by an ordinance or order adopted
subsequent to the ordinance or order creating the zone; or
(2) the date on which all project costs, tax increment
bonds and interest on those bonds, and other obligations have been
paid in full.
(a-1) Notwithstanding the designation of a later
termination date under Subsection (a), a taxing unit that taxes
real property located in the zone, other than the municipality or
county that created the zone, is not required to pay any of its tax
increment into the tax increment fund for the zone after the
termination date designated in the ordinance or order creating the
zone unless the governing body of the taxing unit enters into an
agreement to do so with the governing body of the municipality or
county that created the zone.
SECTION 2. (a) The legislature validates and confirms all
governmental acts and proceedings of a municipality or county that
were taken before the effective date of this Act and relate to or
are associated with the extension of the term of a reinvestment zone
created by the municipality or county under Chapter 311, Tax Code,
as of the dates on which they occurred. The acts and proceedings
may not be held invalid because they were not in accordance with
Chapter 311, Tax Code, or other law.
(b) Subsection (a) of this section does not apply to any
matter that on the effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(2) has been held invalid by a final judgment of a
court.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.