By: Coleman (Senate Sponsor - Ellis) H.B. No. 3275
(In the Senate - Received from the House May 16, 2011;
May 16, 2011, read first time and referred to Committee on Economic
Development; May 20, 2011, reported favorably by the following
vote: Yeas 6, Nays 0; May 20, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the operation and governance of tax increment financing
reinvestment zones.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.009(a), Tax Code, is amended to read
as follows:
(a) Except as provided by Subsection (b), the board of
directors of a reinvestment zone consists of at least five and not
more than 15 members, unless more than 15 members are required to
satisfy the requirements of this subsection. Each taxing unit
other than the municipality or county that created the zone that
levies taxes on real property in the zone may appoint one member of
the board if the taxing unit has approved the payment of all or part
of the tax increment produced by the unit into the tax increment
fund for the zone. A unit may waive its right to appoint a director.
The governing body of the municipality or county that created the
zone may appoint not more than 10 directors to the board; except
that if there are fewer than five directors appointed by taxing
units other than the municipality or county, the governing body of
the municipality or county may appoint more than 10 members as long
as the total membership of the board does not exceed 15.
SECTION 2. Section 311.0091, Tax Code, is amended by
amending Subsection (f) and adding Subsection (i) to read as
follows:
(f) Except as provided by Subsection (i), to [To] be
eligible for appointment to the board, an individual must:
(1) be a qualified voter of the municipality; or
(2) be at least 18 years of age and own real property
in the zone or be an employee or agent of a person that owns real
property in the zone.
(i) The eligibility criteria for appointment to the board
specified by Subsection (f) do not apply to an individual appointed
by a conservation and reclamation district:
(1) created under Section 59, Article XVI, Texas
Constitution; and
(2) the jurisdiction of which covers four counties.
SECTION 3. Section 311.013(l), Tax Code, is amended to read
as follows:
(l) The governing body of a municipality or county that
designates an area as a reinvestment zone may determine, in the
designating ordinance or order adopted under Section 311.003 or in
the ordinance or order adopted under Section 311.011 approving the
reinvestment zone financing plan for the zone, the portion of the
tax increment produced by the municipality or county that the
municipality or county is required to pay into the tax increment
fund for the zone. If a municipality or county does not determine
the portion of the tax increment produced by the municipality or
county that the municipality or county is required to pay into the
tax increment fund for a reinvestment zone, the municipality or
county is required to pay into the fund for the zone the entire tax
increment produced by the municipality or county, except as
provided by Subsection (b)(1).
SECTION 4. Section 311.016(a), Tax Code, is amended to read
as follows:
(a) On or before the 150th [90th] day following the end of
the fiscal year of the municipality or county, the governing body of
a municipality or county shall submit to the chief executive
officer of each taxing unit that levies property taxes on real
property in a reinvestment zone created by the municipality or
county a report on the status of the zone. The report must include:
(1) the amount and source of revenue in the tax
increment fund established for the zone;
(2) the amount and purpose of expenditures from the
fund;
(3) the amount of principal and interest due on
outstanding bonded indebtedness;
(4) the tax increment base and current captured
appraised value retained by the zone; and
(5) the captured appraised value shared by the
municipality or county and other taxing units, the total amount of
tax increments received, and any additional information necessary
to demonstrate compliance with the tax increment financing plan
adopted by the governing body of the municipality or county.
SECTION 5. This Act takes effect September 1, 2011.
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