Texas 2009 - 81st Regular

Texas House Bill HB1810 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Pickett H.B. No. 1810
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the purposes and designation of a transportation
7	7	reinvestment zone.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 222.105, Transportation Code, is amended
10	10	to read as follows:
11	11	Sec. 222.105. PURPOSES. The purposes of Sections 222.106
12	12	and 222.107 are to:
13	13	(1) promote public safety;
14	14	(2) facilitate the improvement, development, or
15	15	redevelopment of property;
16	16	(3) facilitate the movement of traffic; and
17	17	(4) enhance a local entity's ability to sponsor a
18	18	transportation project authorized under Section 222.104.
19	19	SECTION 2. Section 222.106, Transportation Code, is amended
20	20	by amending Subsections (b), (c), (g), (h), (i), (j), (k), and (l)
21	21	and adding Subsections (i-1) and (i-2) to read as follows:
22	22	(b) This section applies only to a municipality in which a
23	23	transportation project is to be developed [the governing body of
24	24	which intends to enter into an agreement with the department] under
25	25	Section 222.104.
26	26	(c) If the governing body determines an area to be
27	27	unproductive and underdeveloped and that action under this section
28	28	will further the purposes stated in Section 222.105, the governing
29	29	body of the municipality by ordinance may designate a contiguous
30	30	geographic area in the jurisdiction of the municipality to be a
31	31	transportation reinvestment zone to promote a transportation
32	32	project [described by Section 222.104 that cultivates development
33	33	or redevelopment of the area].
34	34	(g) The ordinance designating an area as a transportation
35	35	reinvestment zone must:
36	36	(1) describe the boundaries of the zone with
37	37	sufficient definiteness to identify with ordinary and reasonable
38	38	certainty the territory included in the zone;
39	39	(2) provide that the zone takes effect immediately on
40	40	passage of the ordinance;
41	41	(3) assign a name to the zone for identification, with
42	42	the first zone designated by a municipality designated as
43	43	"Transportation Reinvestment Zone Number One, (City or Town, as
44	44	applicable) of (name of municipality)," and subsequently
45	45	designated zones assigned names in the same form, numbered
46	46	consecutively in the order of their designation;
47	47	(4) designate the base year for purposes of
48	48	establishing the tax increment base of the municipality;
49	49	(5) establish an ad valorem tax increment account for
50	50	the zone; and
51	51	(6) [(5)] contain findings that promotion of the
52	52	transportation project will cultivate the improvement,
53	53	development, or redevelopment of the zone.
54	54	(h) From taxes collected on property in a zone, the
55	55	municipality shall pay into the tax increment account for the zone
56	56	[an amount equal to] the tax increment produced by the
57	57	municipality, less any amount allocated under previous agreements,
58	58	including agreements under Chapter 380, Local Government Code, or
59	59	Chapter 311, Tax Code.
60	60	(i) All or the portion specified by the municipality of the
61	61	money deposited to a tax increment account must be used to fund the
62	62	transportation project for which the zone was designated, as well
63	63	as aesthetic improvements within the zone. Any remaining money
64	64	deposited to the tax increment account may be used for other
65	65	purposes as determined by the municipality [Money deposited to a
66	66	tax increment account must be used to fund projects authorized
67	67	under Section 222.104, including the repayment of amounts owed
68	68	under an agreement entered into under that section].
69	69	(i-1) The governing body of a municipality may contract with
70	70	a public or private entity to develop, redevelop, or improve a
71	71	transportation project in a transportation reinvestment zone and
72	72	may pledge and assign all or a specified amount of money in the tax
73	73	increment account to that entity. After a pledge or assignment is
74	74	made, if the entity that received the pledge or assignment has
75	75	itself pledged or assigned that amount to secure bonds or other
76	76	obligations issued to obtain funding for the transportation
77	77	project, the governing body of the municipality may not rescind its
78	78	pledge or assignment until the bonds or other obligations secured
79	79	by the pledge or assignment have been paid or discharged.
80	80	(i-2) To accommodate changes in the limits of the project
81	81	for which a reinvestment zone was designated, the boundaries of a
82	82	zone may be amended at any time, except that property may not be
83	83	removed or excluded from a designated zone if any part of the tax
84	84	increment account has been assigned or pledged directly by the
85	85	municipality or through another entity to secure bonds or other
86	86	obligations issued to obtain funding of the project, and property
87	87	may not be added to a designated zone unless the governing body of
88	88	the municipality complies with Subsections (e) and (g).
89	89	(j) Except as provided by Subsections (i-1) and
90	90	[Subsection] (k), a transportation reinvestment zone terminates on
91	91	December 31 of the year in which the municipality completes
92	92	[complies with] a contractual requirement, if any, that included
93	93	the pledge or assignment of all or a portion of money deposited to a
94	94	tax increment account or the repayment of money owed under an [the]
95	95	agreement for development, redevelopment, or improvement of the
96	96	project for [under Section 222.104 in connection with] which the
97	97	zone was designated.
98	98	(k) A transportation reinvestment zone terminates on
99	99	December 31 of the 10th year after the year the zone was designated,
100	100	if before that date the municipality has not entered into a contract
101	101	described in Subsection (i-1) or otherwise not used the zone for the
102	102	purpose for which it was designated.
103	103	(l) Any surplus remaining in a tax increment account on
104	104	termination of a zone may be used for other purposes as determined
105	105	by [transportation projects of] the municipality [in or outside of
106	106	the zone].
107	107	SECTION 3. The heading to Section 222.107, Transportation
108	108	Code, is amended to read as follows:
109	109	Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES[;
110	110	TAX ABATEMENTS; ROAD UTILITY DISTRICTS].
111	111	SECTION 4. Section 222.107, Transportation Code, is amended
112	112	by amending Subsections (b), (c), (e), (f), (h), (i), (k), and (l)
113	113	and adding Subsections (h-1) and (k-1) to read as follows:
114	114	(b) This section applies only to a county in which a
115	115	transportation project is to be developed [the commissioners court
116	116	of which intends to enter into a pass-through toll agreement with
117	117	the department] under Section 222.104.
118	118	(c) The commissioners court of the county, after
119	119	determining that an area is unproductive and underdeveloped and
120	120	that action under this section would further the purposes described
121	121	by Section 222.105, by order or resolution may designate a
122	122	contiguous geographic area in the jurisdiction of the county to be a
123	123	transportation reinvestment zone to promote a transportation
124	124	project [described by Section 222.104 that cultivates development
125	125	or redevelopment of the area] and for the purpose of abating ad
126	126	valorem taxes or granting other relief from taxes imposed by the
127	127	county on real property located in the zone.
128	128	(e) Not later than the 30th day before the date the
129	129	commissioners court proposes to designate an area as a
130	130	transportation reinvestment zone under this section, the
131	131	commissioners court must hold a public hearing on the creation of
132	132	the zone, its benefits to the county and to property in the proposed
133	133	zone, and the abatement of ad valorem taxes or the grant of other
134	134	relief from ad valorem taxes imposed by the county on real property
135	135	located in the zone. At the hearing an interested person may speak
136	136	for or against the designation of the zone, its boundaries, or the
137	137	abatement of or the relief from county taxes on real property in the
138	138	zone. Not later than the seventh day before the date of the
139	139	hearing, notice of the hearing and the intent to create a zone must
140	140	be published in a newspaper having general circulation in the
141	141	county.
142	142	(f) The order or resolution designating an area as a
143	143	transportation reinvestment zone must:
144	144	(1) describe the boundaries of the zone with
145	145	sufficient definiteness to identify with ordinary and reasonable
146	146	certainty the territory included in the zone;
147	147	(2) provide that the zone takes effect immediately on
148	148	adoption of the order or resolution; [and]
149	149	(3) assign a name to the zone for identification, with
150	150	the first zone designated by a county designated as "Transportation
151	151	Reinvestment Zone Number One, County of (name of county)," and
152	152	subsequently designated zones assigned names in the same form
153	153	numbered consecutively in the order of their designation; and
154	154	(4) designate the base year for purposes of
155	155	establishing the tax increment base of the county.
156	156	(h) The commissioners court by order or resolution may enter
157	157	into an agreement with the owner of any real property located in the
158	158	transportation reinvestment zone to abate all or a portion of the ad
159	159	valorem taxes or to grant other relief from the taxes imposed by the
160	160	county on the owner's property in an amount not to exceed the amount
161	161	calculated under Subsection (a)(1) for that year. All abatements
162	162	or other relief granted by the commissioners court in a
163	163	transportation reinvestment zone must be equal in rate. In the
164	164	alternative, the commissioners court by order or resolution may
165	165	elect to abate a portion of the ad valorem taxes or otherwise grant
166	166	relief from the taxes imposed by the county on all real property
167	167	located in the zone. In any ad valorem tax year, the total amount of
168	168	the taxes abated or the total amount of relief granted under this
169	169	section may not exceed the amount calculated under Subsection
170	170	(a)(1) for that year, less any amounts allocated under previous
171	171	agreements, including agreements under Chapter 381, Local
172	172	Government Code, or Chapter 312, Tax Code.
173	173	(h-1) To further the development of the transportation
174	174	project for which the transportation reinvestment zone was
175	175	designated, a county may assess all or part of the cost of the
176	176	transportation project against property within the zone. The
177	177	assessment against each property in the zone may be levied and
178	178	payable in installments in the same manner as provided by Sections
179	179	372.016-372.018, Local Government Code, provided that the
180	180	installments do not exceed the total amount of the tax abatement or
181	181	other relief granted under Subsection (h). The county may elect to
182	182	adopt and apply the provisions of Sections 372.015-372.020 and
183	183	372.023, Local Government Code, to the assessment of costs and
184	184	Sections 372.024-372.030, Local Government Code, to the issuance of
185	185	bonds by the county to pay the cost of a transportation project.
186	186	The commissioners court of the county may contract with a public or
187	187	private entity to develop, redevelop, or improve a transportation
188	188	project in the transportation reinvestment zone, including
189	189	aesthetic improvements, and may pledge and assign to that entity
190	190	all or a specified amount of the revenue the county receives from
191	191	installment payments of the assessments for the payment of the
192	192	costs of that transportation project. After a pledge or assignment
193	193	is made, if the entity that received the pledge or assignment has
194	194	itself pledged or assigned that amount to secure bonds or other
195	195	obligations issued to obtain funding for the transportation
196	196	project, the commissioners court of the county may not rescind its
197	197	pledge or assignment until the bonds or other obligations secured
198	198	by the pledge or assignment have been paid or discharged. Any
199	199	amount received from installment payments of the assessments not
200	200	pledged or assigned in connection with the transportation project
201	201	may be used for other purposes associated with the transportation
202	202	project or in the zone.
203	203	(i) In the alternative, to [To] assist the county in
204	204	developing a transportation project [authorized under Section
205	205	222.104], if authorized by the commission under Chapter 441, a road
206	206	utility district may be formed under that chapter that has the same
207	207	boundaries as a transportation reinvestment zone created under this
208	208	section.
209	209	(k) A road utility district formed as provided by Subsection
210	210	(i) may enter into an agreement [with the county to assume the
211	211	obligation, if any, of the county] to fund development of a project
212	212	[under Section 222.104] or to repay funds owed to the department
213	213	[under Section 222.104]. Any amount paid for this purpose is
214	214	considered to be an operating expense of the district. Any taxes
215	215	collected by the district that are not paid for this purpose may be
216	216	used for any district purpose.
217	217	(k-1) To accommodate changes in the limits of the project
218	218	for which a reinvestment zone was designated, the boundaries of a
219	219	zone may be amended at any time, except that property may not be
220	220	removed or excluded from a designated zone if any part of the
221	221	assessment has been assigned or pledged directly by the county or
222	222	through another entity to secure bonds or other obligations issued
223	223	to obtain funding of the project, and property may not be added to a
224	224	designated zone unless the governing body of the municipality
225	225	complies with Subsections (e) and (f).
226	226	(l) Except as provided by Subsection (m), a tax abatement
227	227	agreement entered into under Subsection (h), or an order or
228	228	resolution on the abatement of taxes or the grant of relief from
229	229	taxes under that subsection, terminates on December 31 of the year
230	230	in which the county completes any contractual requirement that
231	231	included the pledge or assignment of assessments [of money]
232	232	collected under this section.
233	233	SECTION 5. Subchapter E, Chapter 222, Transportation Code,
234	234	is amended by adding Sections 222.108 and 222.109 to read as
235	235	follows:
236	236	Sec. 222.108. TRANSPORTATION REINVESTMENT ZONES FOR OTHER
237	237	TRANSPORTATION PROJECTS. (a) Notwithstanding the requirement in
238	238	Sections 222.106(b) and 222.107(b) that a transportation
239	239	reinvestment zone be established in connection with a project under
240	240	Section 222.104, a municipality or county may establish a
241	241	transportation reinvestment zone for any transportation project.
242	242	If all or part of the transportation project is subject to oversight
243	243	by the department, at the option of the governing body of the
244	244	municipality or county, the department shall delegate full
245	245	responsibility for the development, design, letting of bids, and
246	246	construction of the project, including project oversight and
247	247	inspection, to the municipality or county provided that the
248	248	commission or department may take any action that in its reasonable
249	249	judgment is necessary to comply with any federal requirement to
250	250	enable this state to receive federal-aid highway funds.
251	251	(b) A transportation project developed under Subsection (a)
252	252	that is on the state highway system must comply with state design
253	253	criteria unless the department grants an exception to the
254	254	municipality or county.
255	255	(c) In this section, "transportation project" has the
256	256	meaning assigned by Section 370.003.
257	257	Sec. 222.109. REDUCTION PROHIBITED. (a) A municipality or
258	258	county may not be penalized with a reduction in traditional
259	259	transportation funding because of the designation and use of a
260	260	transportation reinvestment zone under this chapter. Any funding
261	261	from the department identified for a project before the date that a
262	262	transportation reinvestment zone is designated may not be reduced
263	263	because the transportation reinvestment zone is designated in
264	264	connection with that project.
265	265	(b) The department may not reduce any allocation of
266	266	traditional transportation funding to any of its districts because
267	267	a district contains a municipality or county that contains a
268	268	transportation reinvestment zone designated under this chapter.
269	269	SECTION 6. This Act takes effect September 1, 2009.