| 1 | 1 | | 81R1131 JD-F |
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| 2 | 2 | | By: Kuempel H.B. No. 1159 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the extension of the term of a reinvestment zone created |
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| 8 | 8 | | under the Tax Increment Financing Act. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 311.017, Tax Code, is amended by |
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| 11 | 11 | | amending Subsection (a) and adding Subsection (a-1) to read as |
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| 12 | 12 | | follows: |
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| 13 | 13 | | (a) A reinvestment zone terminates on the earlier of: |
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| 14 | 14 | | (1) the termination date designated in the ordinance |
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| 15 | 15 | | or order, as applicable, creating the zone or an earlier or later |
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| 16 | 16 | | termination date designated by an ordinance or order adopted |
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| 17 | 17 | | subsequent to the ordinance or order creating the zone; or |
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| 18 | 18 | | (2) the date on which all project costs, tax increment |
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| 19 | 19 | | bonds and interest on those bonds, and other obligations have been |
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| 20 | 20 | | paid in full. |
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| 21 | 21 | | (a-1) Notwithstanding the designation of a later |
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| 22 | 22 | | termination date under Subsection (a), a taxing unit that taxes |
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| 23 | 23 | | real property located in the zone, other than the municipality or |
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| 24 | 24 | | county that created the zone, is not required to pay any of its tax |
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| 25 | 25 | | increment into the tax increment fund for the zone after the |
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| 26 | 26 | | termination date designated in the ordinance or order creating the |
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| 27 | 27 | | zone unless the governing body of the taxing unit enters into an |
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| 28 | 28 | | agreement to do so with the governing body of the municipality or |
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| 29 | 29 | | county that created the zone. |
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| 30 | 30 | | SECTION 2. (a) The legislature validates and confirms all |
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| 31 | 31 | | governmental acts and proceedings of a municipality or county that |
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| 32 | 32 | | were taken before the effective date of this Act and relate to or |
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| 33 | 33 | | are associated with the extension of the term of a reinvestment zone |
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| 34 | 34 | | created by the municipality or county under Chapter 311, Tax Code, |
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| 35 | 35 | | as of the dates on which they occurred. The acts and proceedings |
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| 36 | 36 | | may not be held invalid because they were not in accordance with |
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| 37 | 37 | | Chapter 311, Tax Code, or other law. |
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| 38 | 38 | | (b) Subsection (a) of this section does not apply to any |
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| 39 | 39 | | matter that on the effective date of this Act: |
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| 40 | 40 | | (1) is involved in litigation if the litigation |
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| 41 | 41 | | ultimately results in the matter being held invalid by a final |
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| 42 | 42 | | judgment of a court; or |
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| 43 | 43 | | (2) has been held invalid by a final judgment of a |
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| 44 | 44 | | court. |
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| 45 | 45 | | SECTION 3. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2009. |
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