By: Hancock (Senate Sponsor - West) H.B. No. 3222
(In the Senate - Received from the House May 18, 2009;
May 19, 2009, read first time and referred to Committee on Economic
Development; May 22, 2009, reported favorably by the following
vote: Yeas 5, Nays 0; May 22, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the authority of two or more municipalities to
designate a joint tax increment financing reinvestment zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 311, Tax Code, is amended by adding
Section 311.0035 to read as follows:
Sec. 311.0035. PROCEDURE FOR DESIGNATING JOINT
REINVESTMENT ZONE. (a) The governing bodies of two or more
municipalities by ordinance adopted by each municipality may
designate a contiguous area in the jurisdiction of each of the
municipalities to be a joint reinvestment zone. Except as
otherwise provided by this section, each of the municipalities must
follow the procedures provided by Section 311.003 to designate an
area as a joint reinvestment zone. The ordinances adopted by all of
the municipalities designating an area as a joint reinvestment zone
must contain the same terms and must:
(1) describe the boundaries of the zone with
sufficient definiteness to identify with ordinary and reasonable
certainty the territory included in the zone;
(2) create a board of directors for the zone and
specify:
(A) the number of directors;
(B) the qualifications of directors;
(C) the manner in which directors are appointed;
(D) the terms of directors;
(E) the manner in which vacancies on the board
are filled; and
(F) the manner by which officers of the board are
selected;
(3) provide that the zone takes effect immediately on
adoption of the ordinance by the last of the municipalities in the
jurisdiction of which the area contained in the zone is located;
(4) provide a termination date for the zone;
(5) assign a name to the zone for identification
purposes, which may include the name of one or more of the
designating municipalities and may contain a number;
(6) establish a tax increment fund for the zone; and
(7) contain findings that:
(A) improvements in the zone will significantly
enhance the value of all taxable real property in the zone and will
be of general benefit to the municipalities; and
(B) the area meets the requirements of Sections
311.005(a)(1) and (2) and (a-1).
(b) For purposes of complying with Subsection (a)(7)(A),
the ordinances are not required to identify the specific parcels of
real property to be enhanced in value.
(c) The restrictions applicable to other reinvestment zones
under Section 311.006 apply to a joint reinvestment zone designated
under this section.
(d) The boundaries of a joint reinvestment zone may be
enlarged or reduced by ordinance of the governing bodies of the
municipalities that designated the zone, subject to the
restrictions contained in this section.
(e) The municipalities designating a joint reinvestment
zone may exercise any power necessary and convenient to carry out
this section and the other provisions of this chapter, including
the powers listed in Section 311.008.
(f) Except as otherwise provided by this section, the board
of directors of a joint reinvestment zone has the same powers and
duties and is subject to the same limitations as the board of
directors of a reinvestment zone designated by a single
municipality. Sections 311.011, 311.012, 311.0123, 311.013,
311.014, 311.015, 311.016, 311.0163, and 311.018 apply to the
municipalities designating a joint reinvestment zone, except that a
reference in those sections to a municipality means all of the
municipalities designating a joint reinvestment zone and an action
required of a municipality under those sections is considered to be
required of all of the municipalities designating a joint
reinvestment zone.
(g) Expenditures from tax increment financing funds or
bonds secured by tax increment financing may be made without regard
to the location from which the funds were derived or the location
within the joint reinvestment zone at which the funds are spent, but
only if those expenditures are authorized as required by this
chapter.
SECTION 2. 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.
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