Texas 2009 - 81st Regular

Texas Senate Bill SB2378 Compare Versions

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1	1	By: Nichols S.B. No. 2378
2	2	Substitute the following for S.B. No. 2378:
3	3	By: Pickett C.S.S.B. No. 2378
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the purposes and designation of a transportation
9	9	reinvestment zone.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 222.105, Transportation Code, is amended
12	12	to read as follows:
13	13	Sec. 222.105. PURPOSES. The purposes of Sections 222.106
14	14	and 222.107 are to:
15	15	(1) promote public safety;
16	16	(2) facilitate the improvement, development, or
17	17	redevelopment of property;
18	18	(3) facilitate the movement of traffic; and
19	19	(4) enhance a local entity's ability to sponsor a
20	20	transportation project authorized under Section 222.104.
21	21	SECTION 2. Section 222.106, Transportation Code, is amended
22	22	by amending Subsections (b), (c), (g), (h), (i), (j), (k), and (l)
23	23	and adding Subsections (i-1) and (i-2) to read as follows:
24	24	(b) This section applies only to a municipality in which a
25	25	transportation project is to be developed [the governing body of
26	26	which intends to enter into an agreement with the department] under
27	27	Section 222.104.
28	28	(c) If the governing body determines an area to be
29	29	unproductive and underdeveloped and that action under this section
30	30	will further the purposes stated in Section 222.105, the governing
31	31	body of the municipality by ordinance may designate a contiguous
32	32	geographic area in the jurisdiction of the municipality to be a
33	33	transportation reinvestment zone to promote a transportation
34	34	project [described by Section 222.104 that cultivates development
35	35	or redevelopment of the area].
36	36	(g) The ordinance designating an area as a transportation
37	37	reinvestment zone must:
38	38	(1) describe the boundaries of the zone with
39	39	sufficient definiteness to identify with ordinary and reasonable
40	40	certainty the territory included in the zone;
41	41	(2) provide that the zone takes effect immediately on
42	42	passage of the ordinance;
43	43	(3) assign a name to the zone for identification, with
44	44	the first zone designated by a municipality designated as
45	45	"Transportation Reinvestment Zone Number One, (City or Town, as
46	46	applicable) of (name of municipality)," and subsequently
47	47	designated zones assigned names in the same form, numbered
48	48	consecutively in the order of their designation;
49	49	(4) designate the base year for purposes of
50	50	establishing the tax increment base of the municipality;
51	51	(5) establish an ad valorem tax increment account for
52	52	the zone; and
53	53	(6) [(5)] contain findings that promotion of the
54	54	transportation project will cultivate the improvement,
55	55	development, or redevelopment of the zone.
56	56	(h) From taxes collected on property in a zone, the
57	57	municipality shall pay into the tax increment account for the zone
58	58	[an amount equal to] the tax increment produced by the
59	59	municipality, less any amount allocated under previous agreements,
60	60	including agreements under Chapter 380, Local Government Code, or
61	61	Chapter 311, Tax Code.
62	62	(i) All or the portion specified by the municipality of the
63	63	money deposited to a tax increment account must be used to fund the
64	64	transportation project for which the zone was designated, as well
65	65	as aesthetic improvements within the zone. Any remaining money
66	66	deposited to the tax increment account may be used for other
67	67	purposes as determined by the municipality [Money deposited to a
68	68	tax increment account must be used to fund projects authorized
69	69	under Section 222.104, including the repayment of amounts owed
70	70	under an agreement entered into under that section].
71	71	(i-1) The governing body of a municipality may contract with
72	72	a public or private entity to develop, redevelop, or improve a
73	73	transportation project in a transportation reinvestment zone and
74	74	may pledge and assign all or a specified amount of money in the tax
75	75	increment account to that entity. After a pledge or assignment is
76	76	made, if the entity that received the pledge or assignment has
77	77	itself pledged or assigned that amount to secure bonds or other
78	78	obligations issued to obtain funding for the transportation
79	79	project, the governing body of the municipality may not rescind its
80	80	pledge or assignment until the bonds or other obligations secured
81	81	by the pledge or assignment have been paid or discharged.
82	82	(i-2) To accommodate changes in the limits of the project
83	83	for which a reinvestment zone was designated, the boundaries of a
84	84	zone may be amended at any time, except that property may not be
85	85	removed or excluded from a designated zone if any part of the tax
86	86	increment account has been assigned or pledged directly by the
87	87	municipality or through another entity to secure bonds or other
88	88	obligations issued to obtain funding of the project, and property
89	89	may not be added to a designated zone unless the governing body of
90	90	the municipality complies with Subsections (e) and (g).
91	91	(j) Except as provided by Subsections (i-1) and
92	92	[Subsection] (k), a transportation reinvestment zone terminates on
93	93	December 31 of the year in which the municipality completes
94	94	[complies with] a contractual requirement, if any, that included
95	95	the pledge or assignment of all or a portion of money deposited to a
96	96	tax increment account or the repayment of money owed under an [the]
97	97	agreement for development, redevelopment, or improvement of the
98	98	project for [under Section 222.104 in connection with] which the
99	99	zone was designated.
100	100	(k) A transportation reinvestment zone terminates on
101	101	December 31 of the 10th year after the year the zone was designated,
102	102	if before that date the municipality has not entered into a contract
103	103	described in Subsection (i-1) or otherwise not used the zone for the
104	104	purpose for which it was designated.
105	105	(l) Any surplus remaining in a tax increment account on
106	106	termination of a zone may be used for other purposes as determined
107	107	by [transportation projects of] the municipality [in or outside of
108	108	the zone].
109	109	SECTION 3. The heading to Section 222.107, Transportation
110	110	Code, is amended to read as follows:
111	111	Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES[;
112	112	TAX ABATEMENTS; ROAD UTILITY DISTRICTS].
113	113	SECTION 4. Section 222.107, Transportation Code, is amended
114	114	by amending Subsections (b), (c), (e), (f), (h), (i), (k), and (l)
115	115	and adding Subsections (h-1) and (k-1) to read as follows:
116	116	(b) This section applies only to a county in which a
117	117	transportation project is to be developed [the commissioners court
118	118	of which intends to enter into a pass-through toll agreement with
119	119	the department] under Section 222.104.
120	120	(c) The commissioners court of the county, after
121	121	determining that an area is unproductive and underdeveloped and
122	122	that action under this section would further the purposes described
123	123	by Section 222.105, by order or resolution may designate a
124	124	contiguous geographic area in the jurisdiction of the county to be a
125	125	transportation reinvestment zone to promote a transportation
126	126	project [described by Section 222.104 that cultivates development
127	127	or redevelopment of the area] and for the purpose of abating ad
128	128	valorem taxes or granting other relief from taxes imposed by the
129	129	county on real property located in the zone.
130	130	(e) Not later than the 30th day before the date the
131	131	commissioners court proposes to designate an area as a
132	132	transportation reinvestment zone under this section, the
133	133	commissioners court must hold a public hearing on the creation of
134	134	the zone, its benefits to the county and to property in the proposed
135	135	zone, and the abatement of ad valorem taxes or the grant of other
136	136	relief from ad valorem taxes imposed by the county on real property
137	137	located in the zone. At the hearing an interested person may speak
138	138	for or against the designation of the zone, its boundaries, or the
139	139	abatement of or the relief from county taxes on real property in the
140	140	zone. Not later than the seventh day before the date of the
141	141	hearing, notice of the hearing and the intent to create a zone must
142	142	be published in a newspaper having general circulation in the
143	143	county.
144	144	(f) The order or resolution designating an area as a
145	145	transportation reinvestment zone must:
146	146	(1) describe the boundaries of the zone with
147	147	sufficient definiteness to identify with ordinary and reasonable
148	148	certainty the territory included in the zone;
149	149	(2) provide that the zone takes effect immediately on
150	150	adoption of the order or resolution; [and]
151	151	(3) assign a name to the zone for identification, with
152	152	the first zone designated by a county designated as "Transportation
153	153	Reinvestment Zone Number One, County of (name of county)," and
154	154	subsequently designated zones assigned names in the same form
155	155	numbered consecutively in the order of their designation; and
156	156	(4) designate the base year for purposes of
157	157	establishing the tax increment base of the county.
158	158	(h) The commissioners court by order or resolution may enter
159	159	into an agreement with the owner of any real property located in the
160	160	transportation reinvestment zone to abate all or a portion of the ad
161	161	valorem taxes or to grant other relief from the taxes imposed by the
162	162	county on the owner's property in an amount not to exceed the amount
163	163	calculated under Subsection (a)(1) for that year. All abatements
164	164	or other relief granted by the commissioners court in a
165	165	transportation reinvestment zone must be equal in rate. In the
166	166	alternative, the commissioners court by order or resolution may
167	167	elect to abate a portion of the ad valorem taxes or otherwise grant
168	168	relief from the taxes imposed by the county on all real property
169	169	located in the zone. In any ad valorem tax year, the total amount of
170	170	the taxes abated or the total amount of relief granted under this
171	171	section may not exceed the amount calculated under Subsection
172	172	(a)(1) for that year, less any amounts allocated under previous
173	173	agreements, including agreements under Chapter 381, Local
174	174	Government Code, or Chapter 312, Tax Code.
175	175	(h-1) To further the development of the transportation
176	176	project for which the transportation reinvestment zone was
177	177	designated, a county may assess all or part of the cost of the
178	178	transportation project against property within the zone. The
179	179	assessment against each property in the zone may be levied and
180	180	payable in installments in the same manner as provided by Sections
181	181	372.016-372.018, Local Government Code, provided that the
182	182	installments do not exceed the total amount of the tax abatement or
183	183	other relief granted under Subsection (h). The county may elect to
184	184	adopt and apply the provisions of Sections 372.015-372.020 and
185	185	372.023, Local Government Code, to the assessment of costs and
186	186	Sections 372.024-372.030, Local Government Code, to the issuance of
187	187	bonds by the county to pay the cost of a transportation project.
188	188	The commissioners court of the county may contract with a public or
189	189	private entity to develop, redevelop, or improve a transportation
190	190	project in the transportation reinvestment zone, including
191	191	aesthetic improvements, and may pledge and assign to that entity
192	192	all or a specified amount of the revenue the county receives from
193	193	installment payments of the assessments for the payment of the
194	194	costs of that transportation project. After a pledge or assignment
195	195	is made, if the entity that received the pledge or assignment has
196	196	itself pledged or assigned that amount to secure bonds or other
197	197	obligations issued to obtain funding for the transportation
198	198	project, the commissioners court of the county may not rescind its
199	199	pledge or assignment until the bonds or other obligations secured
200	200	by the pledge or assignment have been paid or discharged. Any
201	201	amount received from installment payments of the assessments not
202	202	pledged or assigned in connection with the transportation project
203	203	may be used for other purposes associated with the transportation
204	204	project or in the zone.
205	205	(i) In the alternative, to [To] assist the county in
206	206	developing a transportation project [authorized under Section
207	207	222.104], if authorized by the commission under Chapter 441, a road
208	208	utility district may be formed under that chapter that has the same
209	209	boundaries as a transportation reinvestment zone created under this
210	210	section.
211	211	(k) A road utility district formed as provided by Subsection
212	212	(i) may enter into an agreement [with the county to assume the
213	213	obligation, if any, of the county] to fund development of a project
214	214	[under Section 222.104] or to repay funds owed to the department
215	215	[under Section 222.104]. Any amount paid for this purpose is
216	216	considered to be an operating expense of the district. Any taxes
217	217	collected by the district that are not paid for this purpose may be
218	218	used for any district purpose.
219	219	(k-1) To accommodate changes in the limits of the project
220	220	for which a reinvestment zone was designated, the boundaries of a
221	221	zone may be amended at any time, except that property may not be
222	222	removed or excluded from a designated zone if any part of the
223	223	assessment has been assigned or pledged directly by the county or
224	224	through another entity to secure bonds or other obligations issued
225	225	to obtain funding of the project, and property may not be added to a
226	226	designated zone unless the governing body of the municipality
227	227	complies with Subsections (e) and (f).
228	228	(l) Except as provided by Subsection (m), a tax abatement
229	229	agreement entered into under Subsection (h), or an order or
230	230	resolution on the abatement of taxes or the grant of relief from
231	231	taxes under that subsection, terminates on December 31 of the year
232	232	in which the county completes any contractual requirement that
233	233	included the pledge or assignment of assessments [of money]
234	234	collected under this section.
235	235	SECTION 5. Subchapter E, Chapter 222, Transportation Code,
236	236	is amended by adding Sections 222.108 and 222.109 to read as
237	237	follows:
238	238	Sec. 222.108. TRANSPORTATION REINVESTMENT ZONES FOR OTHER
239	239	TRANSPORTATION PROJECTS. (a) Notwithstanding the requirement in
240	240	Sections 222.106(b) and 222.107(b) that a transportation
241	241	reinvestment zone be established in connection with a project under
242	242	Section 222.104, a municipality or county may establish a
243	243	transportation reinvestment zone for any transportation project.
244	244	If all or part of the transportation project is subject to oversight
245	245	by the department, at the option of the governing body of the
246	246	municipality or county, the department shall delegate full
247	247	responsibility for the development, design, letting of bids, and
248	248	construction of the project, including project oversight and
249	249	inspection, to the municipality or county provided that the
250	250	commission or department may take any action that in its reasonable
251	251	judgment is necessary to comply with any federal requirement to
252	252	enable this state to receive federal-aid highway funds.
253	253	(b) A transportation project developed under Subsection (a)
254	254	that is on the state highway system must comply with state design
255	255	criteria unless the department grants an exception to the
256	256	municipality or county.
257	257	(c) In this section, "transportation project" has the
258	258	meaning assigned by Section 370.003.
259	259	Sec. 222.109. REDUCTION PROHIBITED. (a) A municipality or
260	260	county may not be penalized with a reduction in traditional
261	261	transportation funding because of the designation and use of a
262	262	transportation reinvestment zone under this chapter. Any funding
263	263	from the department identified for a project before the date that a
264	264	transportation reinvestment zone is designated may not be reduced
265	265	because the transportation reinvestment zone is designated in
266	266	connection with that project.
267	267	(b) The department may not reduce any allocation of
268	268	traditional transportation funding to any of its districts because
269	269	a district contains a municipality or county that contains a
270	270	transportation reinvestment zone designated under this chapter.
271	271	SECTION 6. This Act takes effect September 1, 2009.