81R2517 JD-D
By: Nichols S.B. No. 1671
A BILL TO BE ENTITLED
AN ACT
relating to the permissible uses of money in an ad valorem tax
increment account for a transportation reinvestment zone
established by a municipality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 222.106(c), (g), (i), and (j),
Transportation Code, are amended to read as follows:
(c) If the governing body determines an area to be
unproductive and underdeveloped and that action under this section
will further the purposes stated in Section 222.105, the governing
body of the municipality by ordinance may designate a contiguous
geographic area in the jurisdiction of the municipality to be a
transportation reinvestment zone to promote a transportation
project, including a transportation project that is the subject of
an agreement under [described by] Section 222.104, that cultivates
development or redevelopment of the area.
(g) The ordinance designating an area as a transportation
reinvestment zone 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) provide that the zone takes effect immediately on
passage of the ordinance;
(3) assign a name to the zone for identification, with
the first zone designated by a municipality designated as
"Transportation Reinvestment Zone Number One, (City or Town, as
applicable) of (name of municipality)," and subsequently
designated zones assigned names in the same form, numbered
consecutively in the order of their designation;
(4) establish an ad valorem tax increment account for
the zone; [and]
(5) contain findings that promotion of the
transportation project will cultivate development or redevelopment
of the zone; and
(6) provide a termination date for a zone that does not
involve a transportation project that is the subject of an
agreement under Section 222.104.
(i) Money deposited to a tax increment account must be used
to fund:
(1) projects authorized under Section 222.104,
including the repayment of amounts owed under an agreement entered
into under that section; or
(2) other transportation projects of the municipality
that are located in the transportation reinvestment zone for which
the tax increment account was established.
(j) Except as provided by Subsection (k), a transportation
reinvestment zone:
(1) that involves a transportation project that is the
subject of an agreement under Section 222.104 terminates on
December 31 of the year in which the municipality complies with a
contractual requirement, if any, that included the pledge of money
deposited to a tax increment account or the repayment of money owed
under the agreement under Section 222.104 in connection with which
the zone was designated; or
(2) that does not involve a transportation project
that is the subject of an agreement under Section 222.104
terminates on the date provided under Subsection (g)(6).
SECTION 2. Section 222.106(b), Transportation Code, is
repealed.
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.