1 | 1 | | By: Shapiro S.B. No. 2338 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | A BILL TO BE ENTITLED |
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5 | 5 | | AN ACT |
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6 | 6 | | relating to the creation, operations and financing of tax increment |
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7 | 7 | | reinvestment zones. |
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8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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9 | 9 | | SECTION 1. Section 311.002(1), Tax Code is amended as |
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10 | 10 | | follows: |
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11 | 11 | | (1) "Project costs" means the expenditures made or |
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12 | 12 | | estimated to be made and monetary obligations incurred or estimated |
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13 | 13 | | to be incurred by the municipality or county establishing a |
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14 | 14 | | reinvestment zone that are listed in the project plan as costs of |
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15 | 15 | | public works or public improvements, programs, or other projects |
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16 | 16 | | [in] benefitting the zone, plus other costs incidental to those |
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17 | 17 | | expenditures and obligations. "Project costs" include: |
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18 | 18 | | (A) capital costs, including the actual costs of |
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19 | 19 | | the acquisition and construction of public works, public |
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20 | 20 | | improvements, new buildings, structures, and fixtures; the actual |
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21 | 21 | | costs of the acquisition, demolition, alteration, remodeling, |
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22 | 22 | | repair, or reconstruction of existing buildings, structures, and |
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23 | 23 | | fixtures; the actual costs of the remediation of conditions that |
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24 | 24 | | contaminate public or private land or buildings, the preservation |
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25 | 25 | | of the facade of a private or public building, and the demolition of |
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26 | 26 | | public or private buildings; and the actual costs of the |
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27 | 27 | | acquisition of land and equipment and the clearing and grading of |
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28 | 28 | | land; |
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29 | 29 | | (B) financing costs, including all interest paid |
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30 | 30 | | to holders of evidences of indebtedness or other obligations issued |
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31 | 31 | | to pay for project costs and any premium paid over the principal |
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32 | 32 | | amount of the obligations because of the redemption of the |
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33 | 33 | | obligations before maturity; |
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34 | 34 | | (C) real property assembly costs; |
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35 | 35 | | (D) professional service costs, including those |
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36 | 36 | | incurred for architectural, planning, engineering, and legal |
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37 | 37 | | advice and services; |
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38 | 38 | | (E) imputed administrative costs, including |
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39 | 39 | | reasonable charges for the time spent by employees of the |
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40 | 40 | | municipality or county in connection with the implementation of a |
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41 | 41 | | project plan; |
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42 | 42 | | (F) relocation costs; |
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43 | 43 | | (G) organizational costs, including the costs of |
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44 | 44 | | conducting environmental impact studies or other studies, the cost |
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45 | 45 | | of publicizing the creation of the zone, and the cost of |
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46 | 46 | | implementing the project plan for the zone; |
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47 | 47 | | (H) interest before and during construction and |
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48 | 48 | | for one year after completion of construction, whether or not |
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49 | 49 | | capitalized; |
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50 | 50 | | (I) the cost of operating the reinvestment zone |
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51 | 51 | | and project facilities; |
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52 | 52 | | (J) the amount of any contributions made by the |
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53 | 53 | | municipality or county from general revenue for the implementation |
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54 | 54 | | of the project plan; [and] |
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55 | 55 | | (K) a program described in Section 311.310(h) of |
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56 | 56 | | this chapter; and |
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57 | 57 | | (L) payments made at the discretion of the |
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58 | 58 | | governing body of the municipality or county that the governing |
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59 | 59 | | body finds necessary or convenient to the creation of the zone or to |
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60 | 60 | | the implementation of the project plans for the zone. |
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61 | 61 | | SECTION 2. Sections 311.003(a) and (b), Tax Code, are |
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62 | 62 | | amended as follows: |
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63 | 63 | | (a) The governing body of a municipality by ordinance or the |
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64 | 64 | | governing body of a county by order may designate a [contiguous] |
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65 | 65 | | geographic area in the jurisdiction of the municipality or county |
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66 | 66 | | to be a reinvestment zone to promote development or redevelopment |
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67 | 67 | | of the area if the governing body determines that development or |
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68 | 68 | | redevelopment would not occur solely through private investment in |
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69 | 69 | | the reasonably foreseeable future. The area need not be contiguous |
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70 | 70 | | if the governing body finds that the areas are substantially |
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71 | 71 | | related. |
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72 | 72 | | (b) Before adopting an ordinance or order providing for a |
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73 | 73 | | reinvestment zone, the governing body of the municipality or county |
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74 | 74 | | must prepare a preliminary reinvestment zone financing plan. [As |
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75 | 75 | | soon as the plan is completed, a copy of the plan must be sent to the |
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76 | 76 | | governing body of each taxing unit that levies taxes on real |
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77 | 77 | | property in the proposed zone.] |
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78 | 78 | | SECTION 3. Section 311.005(a) is amended to read as |
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79 | 79 | | follows: |
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80 | 80 | | (a) To be designated as a reinvestment zone, an area must: |
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81 | 81 | | (1) substantially arrest or impair the sound growth of |
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82 | 82 | | the municipality or county creating the zone, retard the provision |
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83 | 83 | | of housing accommodations, or constitute an economic or social |
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84 | 84 | | liability and be a menace to the public health, safety, morals, or |
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85 | 85 | | welfare in its present condition and use because of the presence of: |
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86 | 86 | | (A) a substantial number of substandard, slum, |
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87 | 87 | | deteriorated, or deteriorating structures; |
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88 | 88 | | (B) the predominance of defective or inadequate |
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89 | 89 | | sidewalk or street layout; |
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90 | 90 | | (C) faulty lot layout in relation to size, |
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91 | 91 | | adequacy, accessibility, or usefulness; |
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92 | 92 | | (D) unsanitary or unsafe conditions; |
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93 | 93 | | (E) the deterioration of site or other |
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94 | 94 | | improvements; |
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95 | 95 | | (F) tax or special assessment delinquency |
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96 | 96 | | exceeding the fair value of the land; |
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97 | 97 | | (G) defective or unusual conditions of title; |
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98 | 98 | | (H) conditions that endanger life or property by |
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99 | 99 | | fire or other cause; or |
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100 | 100 | | (I) structures, other than single-family |
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101 | 101 | | residential structures, less than 10 percent of the square footage |
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102 | 102 | | of which has been used for commercial, industrial, or residential |
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103 | 103 | | purposes during the preceding 12 years, if the municipality has a |
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104 | 104 | | population of 100,000 or more; |
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105 | 105 | | (2) be predominantly open, undeveloped, or |
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106 | 106 | | underdeveloped and, because of obsolete platting, deterioration of |
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107 | 107 | | structures or site improvements, or other factors, substantially |
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108 | 108 | | impair or arrest the sound growth of the municipality or county; |
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109 | 109 | | (3) be in a federally assisted new community located |
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110 | 110 | | in the municipality or county or in an area immediately adjacent to |
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111 | 111 | | a federally assisted new community; or |
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112 | 112 | | (4) be an area described in a petition requesting that |
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113 | 113 | | the area be designated as a reinvestment zone, if the petition is |
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114 | 114 | | submitted to the governing body of the municipality or county by the |
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115 | 115 | | owners of property constituting at least 50 percent of the |
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116 | 116 | | appraised value of the property in the area according to the most |
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117 | 117 | | recent certified appraisal roll for the county in which the area is |
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118 | 118 | | located. |
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119 | 119 | | SECTION 4. Section 311.007, Tax Code, is amended as |
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120 | 120 | | follows: |
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121 | 121 | | § |
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122 | 122 | | 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE. |
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123 | 123 | | (a) [Subject to the limitations provided by Section 311.006, if |
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124 | 124 | | applicable, the] The boundaries of an existing reinvestment zone |
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125 | 125 | | may be reduced or enlarged by ordinance or resolution of the |
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126 | 126 | | governing body of the municipality or by order or resolution of the |
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127 | 127 | | governing body of the county that created the zone. |
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128 | 128 | | (b) The governing body of the municipality or county may |
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129 | 129 | | that created an existing reinvestment zone may by ordinance or |
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130 | 130 | | resolution extend the term of the zone after notice and hearing in |
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131 | 131 | | the same manner as provided for the creation of the zone; provided |
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132 | 132 | | that no other taxing entity shall be required to participate in the |
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133 | 133 | | zone for the extended term except by written agreement. [enlarge an |
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134 | 134 | | existing reinvestment zone to include an area described in a |
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135 | 135 | | petition requesting that the area be included in the zone if the |
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136 | 136 | | petition is submitted to the governing body of the municipality or |
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137 | 137 | | county by the owners of property constituting at least 50 percent of |
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138 | 138 | | the appraised value of the property in the area according to the |
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139 | 139 | | most recent certified appraisal roll for the county in which the |
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140 | 140 | | area is located. The composition of the board of directors of the |
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141 | 141 | | zone continues to be governed by Section 311.009(a) or (b), |
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142 | 142 | | whichever applied to the zone immediately before the enlargement of |
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143 | 143 | | the zone, except that the membership of the board must conform to |
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144 | 144 | | the requirements of the applicable subsection of Section 311.009 as |
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145 | 145 | | applied to the zone after its enlargement. The provision of Section |
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146 | 146 | | 311.006(b) relating to the amount of property used for residential |
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147 | 147 | | purposes that may be included in the zone does not apply to the |
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148 | 148 | | enlargement of a zone under this subsection.] |
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149 | 149 | | SECTION 5. Section 311.008(b)(2), Tax Code, is amended to |
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150 | 150 | | read as follows: |
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151 | 151 | | (2) acquire real property by purchase, condemnation, |
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152 | 152 | | or other means [to implement project plans] and sell real [that] |
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153 | 153 | | property, on the terms and conditions and in the manner it considers |
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154 | 154 | | advisable to implement the project plans; |
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155 | 155 | | SECTION 6. Section 311.009(a), (b), and (e), Tax Code, are |
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156 | 156 | | amended to read as follows: |
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157 | 157 | | (a) Except as provided by Subsection (b), the board of |
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158 | 158 | | directors of a reinvestment zone consists of at least five and not |
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159 | 159 | | more than 15 members, unless more than 15 members are required to |
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160 | 160 | | satisfy the requirements of this subsection. Each taxing unit |
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161 | 161 | | other than the municipality or county that created the zone that |
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162 | 162 | | levies taxes on real property in the zone may appoint one member of |
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163 | 163 | | the board if the taxing unit has approved the payment of all or part |
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164 | 164 | | of the tax increment produced by the unit into the tax increment |
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165 | 165 | | fund. A unit may waive its right to appoint a director. The |
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166 | 166 | | governing body of the municipality or county that created the zone |
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167 | 167 | | may appoint not more than 10 directors to the board; except that if |
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168 | 168 | | there are fewer than five directors appointed by taxing units other |
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169 | 169 | | than the municipality or county, the governing body of the |
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170 | 170 | | municipality or county may appoint more than 10 members as long as |
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171 | 171 | | the total membership of the board does not exceed 15. |
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172 | 172 | | (b) If the zone was designated under Section 311.005(a)(4), |
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173 | 173 | | the board of directors of the zone consists of nine members. Each |
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174 | 174 | | taxing unit [school district, county, or municipality,] other than |
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175 | 175 | | the municipality or county that created the zone, that levies taxes |
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176 | 176 | | on real property in the zone may appoint one member of the board if |
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177 | 177 | | the taxing unit [school district, county, or municipality] has |
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178 | 178 | | approved the payment of all or part of the tax increment produced by |
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179 | 179 | | the unit into the tax increment fund. The member of the state |
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180 | 180 | | senate in whose district the zone is located is a member of the |
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181 | 181 | | board, and the member of the state house of representatives in whose |
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182 | 182 | | district the zone is located is a member of the board, except that |
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183 | 183 | | either may designate another individual to serve in the member's |
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184 | 184 | | place at the pleasure of the member. If the zone is located in more |
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185 | 185 | | than one senate or house district, this subsection applies only to |
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186 | 186 | | the senator or representative in whose district a larger portion of |
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187 | 187 | | the zone is located than any other senate or house district, as |
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188 | 188 | | applicable. The remaining members of the board are appointed by the |
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189 | 189 | | governing body of the municipality or county that created the zone. |
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190 | 190 | | (e) To be eligible for appointment to the board by the |
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191 | 191 | | governing body of the municipality or county that created the zone, |
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192 | 192 | | an individual must: |
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193 | 193 | | (1) if the board is covered by Subsection (a): |
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194 | 194 | | (A) be a resident citizen of the State of Texas |
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195 | 195 | | [qualified voter of the municipality or county, as applicable]; and |
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196 | 196 | | [or] |
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197 | 197 | | (B) be at least 18 years of age [and own real |
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198 | 198 | | property in the zone, whether or not the individual resides in the |
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199 | 199 | | municipality or county]; or |
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200 | 200 | | (2) if the board is covered by Subsection (b): |
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201 | 201 | | (A) be at least 18 years of age; and |
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202 | 202 | | (B) own real property in the zone or be an |
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203 | 203 | | employee, tenant, or agent of a person that owns real property in |
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204 | 204 | | the zone. |
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205 | 205 | | SECTION 7. Section 311.010(h), Tax Code, is amended to read |
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206 | 206 | | as follows: |
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207 | 207 | | (h) Subject to the approval of the governing body of the |
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208 | 208 | | municipality or county that created the zone, the board of |
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209 | 209 | | directors of a reinvestment zone, as necessary or convenient to |
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210 | 210 | | implement the project plan and reinvestment zone financing plan and |
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211 | 211 | | achieve their purposes, may establish and provide for the |
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212 | 212 | | administration of one or more programs for the public purposes of |
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213 | 213 | | developing and diversifying the economy of the zone, eliminating |
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214 | 214 | | unemployment and underemployment in the zone, and developing or |
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215 | 215 | | expanding transportation, business, and commercial activity in the |
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216 | 216 | | zone, including programs to make grants and loans [from the tax |
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217 | 217 | | increment fund of the zone in an aggregate amount not to exceed the |
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218 | 218 | | amount of the tax increment produced by the municipality and paid |
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219 | 219 | | into the tax increment fund for the zone] for activities that |
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220 | 220 | | benefit the zone and stimulate business and commercial activity in |
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221 | 221 | | the zone. For purposes of this subsection, on approval of the |
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222 | 222 | | municipality or county, the board of directors of the zone has all |
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223 | 223 | | the powers of a municipality under Chapter 380, Local Government |
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224 | 224 | | Code. The approval required by this subsection may be granted in an |
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225 | 225 | | ordinance or order approving a project plan and reinvestment zone |
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226 | 226 | | financing plan or an amendment to a project plan and reinvestment |
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227 | 227 | | zone financing plan. |
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228 | 228 | | SECTION 8. Section 311.011, Tax Code, is amended by |
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229 | 229 | | amending subsections (a), (b), (c), (d), and (g) and adding a new |
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230 | 230 | | subsection (h) as follows: |
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231 | 231 | | § |
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232 | 232 | | 311.011. PROJECT AND FINANCING PLANS. (a) The board of |
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233 | 233 | | directors of a reinvestment zone shall prepare and adopt a project |
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234 | 234 | | plan and a reinvestment zone financing plan for the zone and submit |
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235 | 235 | | the plans to the governing body of the municipality or county that |
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236 | 236 | | created the zone. [The plans must be as consistent as possible with |
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237 | 237 | | the preliminary plans developed for the zone before the creation of |
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238 | 238 | | the board.] |
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239 | 239 | | (b) The project plan must include: |
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240 | 240 | | (1) a [map showing] description of existing uses and |
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241 | 241 | | conditions of real property in the zone and [a map showing] proposed |
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242 | 242 | | [improvements to and proposed] uses of that property; |
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243 | 243 | | (2) proposed changes of zoning ordinances, [the master |
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244 | 244 | | plan of the municipality,] building codes, other municipal |
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245 | 245 | | ordinances, and subdivision rules and regulations, if any, of the |
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246 | 246 | | municipality or the county, if applicable; and |
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247 | 247 | | (3) [a list of estimated nonproject costs; and |
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248 | 248 | | (4)] a statement of a method of relocating persons to |
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249 | 249 | | be displaced, if any, as a result of implementing the plan. |
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250 | 250 | | (c) The reinvestment zone financing plan must include: |
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251 | 251 | | (1) a detailed list describing the estimated project |
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252 | 252 | | costs of the zone, including administrative expenses; |
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253 | 253 | | (2) a statement listing the proposed kind, number, and |
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254 | 254 | | location of all [proposed] public works or public improvements to |
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255 | 255 | | be financed by [in] the zone; |
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256 | 256 | | (3) a finding that the zone is economically feasible |
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257 | 257 | | [an economic feasibility study]; |
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258 | 258 | | (4) the estimated amount of bonded indebtedness to be |
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259 | 259 | | incurred; |
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260 | 260 | | (5) the estimated time when related costs or monetary |
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261 | 261 | | obligations are to be incurred; |
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262 | 262 | | (6) a description of the methods of financing all |
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263 | 263 | | estimated project costs and the expected sources of revenue to |
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264 | 264 | | finance or pay project costs, including the percentage of tax |
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265 | 265 | | increment to be derived from the property taxes of each taxing unit |
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266 | 266 | | anticipated to participate in the zone financing that levies taxes |
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267 | 267 | | on real property in the zone; |
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268 | 268 | | (7) the current total appraised value of taxable real |
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269 | 269 | | property in the zone; |
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270 | 270 | | (8) the estimated captured appraised value of the zone |
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271 | 271 | | during each year of its existence; and |
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272 | 272 | | (9) the duration of the zone. |
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273 | 273 | | (d) The governing body of the municipality or county that |
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274 | 274 | | created the zone must approve a project plan or reinvestment zone |
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275 | 275 | | financing plan after its adoption by the board. The approval must |
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276 | 276 | | be by ordinance, in the case of a municipality, or by order, in the |
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277 | 277 | | case of a county, that finds that the plan is feasible [and conforms |
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278 | 278 | | to the master plan, if any, of the municipality or to subdivision |
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279 | 279 | | rules and regulations, if any, of the county]. |
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280 | 280 | | (g) [An amendment to the project plan or the reinvestment |
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281 | 281 | | zone financing plan for a zone does not apply to a] A school |
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282 | 282 | | district that participates in a [the] zone is not required to |
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283 | 283 | | increase the percentage or amount of the tax increment to be |
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284 | 284 | | contributed by the school district due to an amendment to the |
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285 | 285 | | project plan or reinvestment zone financing plan for the zone |
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286 | 286 | | unless the governing body of the school district by official action |
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287 | 287 | | approves the amendment[, if the amendment: |
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288 | 288 | | (1) has the effect of directly or indirectly |
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289 | 289 | | increasing the percentage or amount of the tax increment to be |
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290 | 290 | | contributed by the school district; or |
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291 | 291 | | (2) requires or authorizes the municipality or county |
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292 | 292 | | creating the zone to issue additional tax increment bonds or |
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293 | 293 | | notes]. |
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294 | 294 | | (h) Unless specifically provided otherwise in the project |
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295 | 295 | | plan and reinvestment zone financing plan, all figures contained in |
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296 | 296 | | the plan shall be considered estimates, and shall not act as a |
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297 | 297 | | limitation on the described items, including without limitation |
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298 | 298 | | expenditures relating to project costs and participation by taxing |
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299 | 299 | | units. |
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300 | 300 | | SECTION 9. Section 311.012(c), Tax Code, is amended as |
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301 | 301 | | follows: |
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302 | 302 | | (c) The tax increment base of a taxing unit is the total |
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303 | 303 | | [appraised] taxable value of all real property taxable by the unit |
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304 | 304 | | and located in a reinvestment zone for the year in which the zone |
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305 | 305 | | was designated under this chapter. The base year for any land |
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306 | 306 | | annexed into the zone is the year in which such land was annexed. |
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307 | 307 | | SECTION 10. Sections 311.013(f) and (l), Tax Code, is |
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308 | 308 | | amended as follows: |
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309 | 309 | | (f) A taxing unit is not required to pay into the tax |
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310 | 310 | | increment fund any of its tax increment produced from property |
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311 | 311 | | located in a reinvestment zone designated under Section 311.005(a) |
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312 | 312 | | or in an area added to a reinvestment zone under Section 311.007 |
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313 | 313 | | unless the taxing unit enters into an agreement to do so with the |
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314 | 314 | | governing body of the municipality or county that created the zone. |
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315 | 315 | | A taxing unit may enter into an agreement under this subsection at |
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316 | 316 | | any time before or after the zone is created or enlarged. The |
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317 | 317 | | agreement may include conditions for payment of that tax increment |
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318 | 318 | | into the fund and must specify the portion of the tax increment to |
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319 | 319 | | be paid into the fund and the years for which that tax increment is |
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320 | 320 | | to be paid into the fund. The agreement may specify that the taxing |
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321 | 321 | | unit's participation may be computed with respect to a base year |
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322 | 322 | | later than the original base year of the zone. The agreement and |
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323 | 323 | | the conditions in the agreement are binding on the taxing unit, the |
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324 | 324 | | municipality or county, and the board of directors of the zone. |
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325 | 325 | | (l) The governing body of a municipality or a county that |
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326 | 326 | | designates an area as a reinvestment zone may determine, in the |
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327 | 327 | | designating ordinance or order adopted under Section 311.003 or in |
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328 | 328 | | the ordinance or order adopted under Section 311.011 approving the |
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329 | 329 | | reinvestment zone financing plan for the zone, the portion of the |
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330 | 330 | | tax increment produced by the municipality or the county that the |
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331 | 331 | | municipality or the county is required to pay into the tax increment |
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332 | 332 | | fund for the zone. If a municipality or a county does not determine |
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333 | 333 | | the portion of the tax increment produced by the municipality or the |
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334 | 334 | | county that the municipality or the county is required to pay into |
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335 | 335 | | the tax increment fund for a reinvestment zone, the municipality or |
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336 | 336 | | the county is required to pay into the fund for the zone the entire |
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337 | 337 | | tax increment produced by the municipality or the county, except as |
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338 | 338 | | provided by Subsection (b)(1). |
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339 | 339 | | SECTION 11. Section 311.014(b), Tax Code, is amended to |
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340 | 340 | | read as follows: |
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341 | 341 | | (b) Money may be disbursed from the fund only to satisfy |
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342 | 342 | | claims of holders of tax increment bonds or notes issued for the |
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343 | 343 | | zone, to pay project costs for the zone, to make payments pursuant |
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344 | 344 | | to an agreement made under Section 311.010(b) or a program under |
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345 | 345 | | Section 311.010(h) dedicating revenue from the tax increment fund, |
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346 | 346 | | or to repay other obligations incurred for the zone. |
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347 | 347 | | SECTION 12. Sections 311.015(a) and (l), Tax Code, are |
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348 | 348 | | amended as follows: |
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349 | 349 | | (a) A municipality creating a reinvestment zone may issue |
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350 | 350 | | tax increment bonds or notes, the proceeds of which may be used to |
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351 | 351 | | make payments pursuant to agreements made under Section 311.010(b), |
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352 | 352 | | to make payments pursuant to programs under Section 311.010(h), and |
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353 | 353 | | to pay project costs for the reinvestment zone on behalf of which |
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354 | 354 | | the bonds or notes were issued, or to satisfy claims of holders of |
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355 | 355 | | the bonds or notes. The municipality may issue refunding bonds or |
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356 | 356 | | notes for the payment or retirement of tax increment bonds or notes |
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357 | 357 | | previously issued by it. |
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358 | 358 | | (l) A tax increment bond or note must mature within 20 years |
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359 | 359 | | of the date of issue on or before the date by which the final |
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360 | 360 | | payments of tax increment into the tax increment fund are due. |
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361 | 361 | | SECTION 13. Section 311.016(a), Tax Code, is amended to |
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362 | 362 | | read as follows: |
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363 | 363 | | (a) On or before the 150th [90th] day following the end of |
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364 | 364 | | the fiscal year of the municipality or county, the governing body of |
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365 | 365 | | a municipality or county shall submit to the chief executive |
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366 | 366 | | officer of each taxing unit that levies property taxes on real |
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367 | 367 | | property in a reinvestment zone created by the municipality or |
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368 | 368 | | county a report on the status of the zone. The report must include: |
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369 | 369 | | (1) the amount and source of revenue in the tax |
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370 | 370 | | increment fund established for the zone; |
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371 | 371 | | (2) the amount and purpose of expenditures from the |
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372 | 372 | | fund; |
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373 | 373 | | (3) the amount of principal and interest due on |
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374 | 374 | | outstanding bonded indebtedness; |
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375 | 375 | | (4) the tax increment base and current captured |
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376 | 376 | | appraised value retained by the zone; and |
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377 | 377 | | (5) the captured appraised value shared by the |
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378 | 378 | | municipality or county and other taxing units, the total amount of |
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379 | 379 | | tax increments received, and any additional information necessary |
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380 | 380 | | to demonstrate compliance with the tax increment financing plan |
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381 | 381 | | adopted by the governing body of the municipality or county. |
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382 | 382 | | SECTION 14. Section 311.017, Tax Code, is amended by |
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383 | 383 | | amending Subsection (a) and adding new Subsections (a-1), (c), and |
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384 | 384 | | (d) to read as follows: |
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385 | 385 | | (a) A reinvestment zone terminates on the earlier of: |
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386 | 386 | | (1) the termination date designated in the ordinance |
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387 | 387 | | or order, as applicable, creating the zone or an earlier or later |
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388 | 388 | | termination date designated by an ordinance or order adopted |
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389 | 389 | | [subsequent to the ordinance or order creating the zone] under |
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390 | 390 | | Section 311.007(b); or |
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391 | 391 | | (2) the date on which all project costs, tax increment |
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392 | 392 | | bonds and interest on those bonds, and other obligations have been |
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393 | 393 | | paid in full. |
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394 | 394 | | (a-1) Notwithstanding the designation of a later |
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395 | 395 | | termination date under Section 311.007(b), a taxing unit that taxes |
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396 | 396 | | real property located in the zone, other than the municipality or |
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397 | 397 | | county that created the zone, is not required to pay any of its tax |
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398 | 398 | | increment into the tax increment fund for the zone after the |
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399 | 399 | | termination date designated in the ordinance or order creating the |
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400 | 400 | | zone unless the governing body of the taxing unit enters into an |
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401 | 401 | | agreement to do so with the governing body of the municipality or |
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402 | 402 | | county that created the zone. |
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403 | 403 | | (c) With respect to a zone established under Section |
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404 | 404 | | 311.0031, the zone shall terminate on the date on which all project |
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405 | 405 | | costs, tax increment bonds and interest on those bonds, and other |
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406 | 406 | | obligations have been paid in full, notwithstanding the expiration |
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407 | 407 | | of the designation of the area under the specified law. |
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408 | 408 | | (d) If tax increment bonds or obligations of the zone are |
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409 | 409 | | outstanding when the zone is terminated, the zone shall remain in |
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410 | 410 | | existence solely for the purpose of fully paying its obligations or |
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411 | 411 | | the tax increment bonds. The termination is effective when all zone |
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412 | 412 | | obligations or tax increment bonds have been fully paid. |
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413 | 413 | | SECTION 15. Chapter 311, Tax Code, is amended by adding a |
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414 | 414 | | new Section 311.021, as follows: |
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415 | 415 | | Sec. 311.021. ACT OR PROCEEDING PRESUMED VALID. (a) A |
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416 | 416 | | governmental act or proceeding relating to the designation, |
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417 | 417 | | operation, or administration of a reinvestment zone or |
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418 | 418 | | implementation of a project plan or reinvestment zone financing |
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419 | 419 | | plan under this chapter of a municipality or county, zone board, or |
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420 | 420 | | an entity acting pursuant to Section 311.010(f), is conclusively |
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421 | 421 | | presumed, as of the date it occurred, valid and to have occurred in |
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422 | 422 | | accordance with all applicable statutes and rules if: |
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423 | 423 | | (1) the second anniversary of the effective date of |
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424 | 424 | | the act or proceeding has expired; and |
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425 | 425 | | (2) a lawsuit to annul or invalidate the act or |
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426 | 426 | | proceeding has not been filed on or before that second anniversary. |
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427 | 427 | | (b) This section does not apply to: |
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428 | 428 | | (1) an act or proceeding that was void at the time it |
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429 | 429 | | occurred; |
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430 | 430 | | (2) an act or proceeding that, under a statute of this |
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431 | 431 | | state or the United States, was a misdemeanor or felony at the time |
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432 | 432 | | the act or proceeding occurred; |
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433 | 433 | | (3) a rule that, at the time it was passed, was |
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434 | 434 | | preempted by a statute of this state or the United States, including |
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435 | 435 | | Section 1.06 or 109.57, Alcoholic Beverage Code; or |
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436 | 436 | | (4) a matter that on the effective date of this |
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437 | 437 | | section: |
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438 | 438 | | (A) is involved in litigation if the litigation |
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439 | 439 | | ultimately results in the matter being held invalid by a final |
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440 | 440 | | judgment of a court; or |
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441 | 441 | | (B) has been held invalid by a final judgment of a |
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442 | 442 | | court. |
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443 | 443 | | SECTION 16. The following provisions of the Tax Code are |
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444 | 444 | | repealed: |
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445 | 445 | | (1) Section 311.003(e), (f), and (g); |
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446 | 446 | | (2) Section 311.006; |
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447 | 447 | | (3) Section 311.01005; |
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448 | 448 | | (4) Section 311.007(b); |
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449 | 449 | | (5) Sections 311.013(d) and (e); and |
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450 | 450 | | (6) Section 311.016(b) as amended by Acts 2005, 79th |
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451 | 451 | | Leg., R.S., Ch. 977, Sec.2. |
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452 | 452 | | SECTION 17. Section 42.2516, Education Code, is amended to |
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453 | 453 | | designate existing subsections (k) and (l) as (l) and (m), |
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454 | 454 | | respectively, and to add a new subsection (k), as follows: |
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455 | 455 | | (k) In computing the local revenue per student available to |
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456 | 456 | | a school district there shall be deducted from the local revenue |
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457 | 457 | | available to the school district the amount of taxes paid by the |
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458 | 458 | | school district into a tax increment reinvestment zone under |
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459 | 459 | | Chapter 311, Tax Code. |
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460 | 460 | | SECTION 18. (a) The legislature validates and confirms all |
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461 | 461 | | governmental acts and proceedings that were taken before the |
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462 | 462 | | effective date of this Act and relate to or are associated with the |
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463 | 463 | | designation, operation, or administration of a reinvestment zone or |
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464 | 464 | | implementation of a project plan or reinvestment zone financing |
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465 | 465 | | plan under Chapter 311, Tax Code, of a municipality or county, zone |
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466 | 466 | | board, or an entity acting pursuant to Section 311.010(f), |
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467 | 467 | | including the extension of the term of a reinvestment zone, as of |
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468 | 468 | | the dates on which they occurred. The acts and proceedings may not |
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469 | 469 | | be held invalid because they were not in accordance with Chapter |
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470 | 470 | | 311, Tax Code, or other law. |
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471 | 471 | | (b) Subsection (a) of this section does not apply to any |
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472 | 472 | | matter that on the effective date of this Act: |
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473 | 473 | | (1) is involved in litigation if the litigation |
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474 | 474 | | ultimately results in the matter being held invalid by a final |
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475 | 475 | | judgment of a court; or |
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476 | 476 | | (2) has been held invalid by a final judgment of a |
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477 | 477 | | court. |
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478 | 478 | | SECTION 19. EFFECTIVE DATE. This Act takes effect |
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479 | 479 | | immediately if it receives a vote of two-thirds of all the members |
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480 | 480 | | elected to each house, as provided by Section 39, Article III, Texas |
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481 | 481 | | Constitution. If this Act does not receive the vote necessary for |
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482 | 482 | | immediate effect, this Act takes effect September 1, 2009. |
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