Texas 2013 - 83rd Regular

Texas House Bill HB1716 Compare Versions

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1	1	83R18855 JAM-F
2	2	By: Pickett H.B. No. 1716
3	3	Substitute the following for H.B. No. 1716:
4	4	By: Pickett C.S.H.B. No. 1716
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the purposes and designation of a transportation
10	10	reinvestment zone.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter E, Chapter 222, Transportation Code,
13	13	is amended by adding Section 222.1001 to read as follows:
14	14	Sec. 222.1001. DEFINITION. In this subchapter,
15	15	"transportation project" has the meaning assigned by Section
16	16	370.003.
17	17	SECTION 2. Section 222.105, Transportation Code, is amended
18	18	to read as follows:
19	19	Sec. 222.105. PURPOSES. The purposes of Sections 222.106
20	20	and 222.107 are to:
21	21	(1) promote public safety;
22	22	(2) facilitate the improvement, development, or
23	23	redevelopment of property;
24	24	(3) facilitate the movement of traffic; and
25	25	(4) enhance a local entity's ability to sponsor a
26	26	transportation project [authorized under Section 222.104].
27	27	SECTION 3. Sections 222.106(b), (c), (g), (i), (i-1),
28	28	(i-2), and (j), Transportation Code, are amended to read as
29	29	follows:
30	30	(b) This section applies only to a municipality in which a
31	31	transportation project is to be developed under Section 222.104 or
32	32	222.108.
33	33	(c) If the governing body determines an area to be
34	34	unproductive and underdeveloped and that action under this section
35	35	will further the purposes stated in Section 222.105, the governing
36	36	body of the municipality by ordinance may designate a contiguous
37	37	geographic area in the jurisdiction of the municipality to be a
38	38	transportation reinvestment zone to promote one or more [a]
39	39	transportation projects [project].
40	40	(g) The ordinance designating an area as a transportation
41	41	reinvestment zone must:
42	42	(1) describe the boundaries of the zone with
43	43	sufficient definiteness to identify with ordinary and reasonable
44	44	certainty the territory included in the zone;
45	45	(2) provide that the zone takes effect immediately on
46	46	passage of the ordinance and that the base year shall be the year of
47	47	passage of the ordinance or some year in the future;
48	48	(3) assign a name to the zone for identification, with
49	49	the first zone designated by a municipality designated as
50	50	"Transportation Reinvestment Zone Number One, (City or Town, as
51	51	applicable) of (name of municipality)," and subsequently
52	52	designated zones assigned names in the same form, numbered
53	53	consecutively in the order of their designation;
54	54	(4) designate the base year for purposes of
55	55	establishing the tax increment base of the municipality;
56	56	(5) establish a tax increment account for the zone;
57	57	and
58	58	(6) contain findings that promotion of the
59	59	transportation project or projects will cultivate the improvement,
60	60	development, or redevelopment of the zone.
61	61	(i) All or the portion specified by the municipality of the
62	62	money deposited to a tax increment account must be used to fund the
63	63	transportation project or projects for which the zone was
64	64	designated, as well as aesthetic improvements within the zone. Any
65	65	remaining money deposited to the tax increment account may be used
66	66	for other purposes as determined by the municipality. A
67	67	municipality may issue bonds to pay all or part of the cost of a
68	68	[the] transportation project and may pledge and assign all or a
69	69	specified amount of money in the tax increment account to secure
70	70	repayment of those bonds.
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
80	80	its pledge or assignment until the contractual commitments that are
81	81	the subject of [bonds or other obligations secured by] the pledge or
82	82	assignment have been satisfied [paid or discharged].
83	83	(i-2) To accommodate changes in the limits of a [the]
84	84	project for which a reinvestment zone was designated, the
85	85	boundaries of a zone may be amended at any time, except that
86	86	property may not be removed or excluded from a designated zone if
87	87	any part of the tax increment account has been assigned or pledged
88	88	directly by the municipality or through another entity to secure
89	89	bonds or other obligations issued to obtain funding or development
90	90	of a [the] project, and property may not be added to a designated
91	91	zone unless the governing body of the municipality complies with
92	92	Subsections (e) and (g).
93	93	(j) Except as provided by Subsections (i-1) and (k), a
94	94	transportation reinvestment zone terminates on December 31 of the
95	95	year in which the municipality completes:
96	96	(1) all [a] contractual requirements [requirement, if
97	97	any,] that included the pledge or assignment of all or a portion of
98	98	money deposited to a tax increment account; or
99	99	(2) the repayment of money owed under an agreement for
100	100	development, redevelopment, or improvement of the project or
101	101	projects for which the zone was designated.
102	102	SECTION 4. Sections 222.107(b), (c), (e), (f), (k-1), and
103	103	(l), Transportation Code, are amended to read as follows:
104	104	(b) This section applies only to a county in which a
105	105	transportation project is to be developed under Section 222.104 or
106	106	222.108.
107	107	(c) The commissioners court of the county, after
108	108	determining that an area is unproductive and underdeveloped and
109	109	that action under this section would further the purposes described
110	110	by Section 222.105, by order or resolution may designate a
111	111	contiguous geographic area in the jurisdiction of the county to be a
112	112	transportation reinvestment zone to promote one or more [a]
113	113	transportation projects [project and for the purpose of abating ad
114	114	valorem taxes or granting other relief from taxes imposed by the
115	115	county on real property located in the zone].
116	116	(e) Not later than the 30th day before the date the
117	117	commissioners court proposes to designate an area as a
118	118	transportation reinvestment zone under this section, the
119	119	commissioners court must hold a public hearing on the creation of
120	120	the zone, its benefits to the county and to property in the proposed
121	121	zone, and the possible abatement of ad valorem taxes or the grant of
122	122	other relief from ad valorem taxes imposed by the county on real
123	123	property located in the zone. At the hearing an interested person
124	124	may speak for or against the designation of the zone, its
125	125	boundaries, or the possible abatement of or the relief from county
126	126	taxes on real property in the zone. Not later than the seventh day
127	127	before the date of the hearing, notice of the hearing and the intent
128	128	to create a zone must be published in a newspaper having general
129	129	circulation in the county.
130	130	(f) The order or resolution designating an area as a
131	131	transportation reinvestment zone must:
132	132	(1) describe the boundaries of the zone with
133	133	sufficient definiteness to identify with ordinary and reasonable
134	134	certainty the territory included in the zone;
135	135	(2) provide that the zone takes effect immediately on
136	136	adoption of the order or resolution and that the base year shall be
137	137	the year of passage of the order or resolution or some year in the
138	138	future;
139	139	(3) assign a name to the zone for identification, with
140	140	the first zone designated by a county designated as "Transportation
141	141	Reinvestment Zone Number One, County of (name of county)," and
142	142	subsequently designated zones assigned names in the same form
143	143	numbered consecutively in the order of their designation;
144	144	(4) designate the base year for purposes of
145	145	establishing the tax increment base of the county; [and]
146	146	(5) establish an ad valorem tax increment account for
147	147	the zone; and
148	148	(6) contain findings that promotion of the
149	149	transportation project or projects will cultivate the improvement,
150	150	development, or redevelopment of the zone.
151	151	(k-1) To accommodate changes in the limits of a [the]
152	152	project for which a reinvestment zone was designated, the
153	153	boundaries of a zone may be amended at any time, except that
154	154	property may not be removed or excluded from a designated zone if
155	155	any part of the tax increment or assessment has been assigned or
156	156	pledged directly by the county or through another entity to secure
157	157	bonds or other obligations issued to obtain funding or development
158	158	of a [the] project, and property may not be added to a designated
159	159	zone unless the commissioners court of the county complies with
160	160	Subsections (e) and (f).
161	161	(l) Except as provided by Subsection (m), a transportation
162	162	reinvestment zone, a tax abatement agreement entered into under
163	163	Subsection (h), or an order or resolution on the abatement of taxes
164	164	or the grant of relief from taxes under that subsection[,]
165	165	terminates on December 31 of the year in which the county completes:
166	166	(1) all [any] contractual requirements [requirement]
167	167	that included the pledge or assignment of all or a portion of:
168	168	(A) money deposited to a tax increment account;
169	169	or
170	170	(B) the assessments collected under this
171	171	section; or
172	172	(2) the repayment of money owed under an agreement for
173	173	the development, redevelopment, or improvement of the project or
174	174	projects for which the zone was designated.
175	175	SECTION 5. Section 222.107(h), Transportation Code, as
176	176	amended by Chapters 475 (H.B. 563) and 1345 (S.B. 1420), Acts of the
177	177	82nd Legislature, Regular Session, 2011, is reenacted to read as
178	178	follows:
179	179	(h) The commissioners court may:
180	180	(1) from taxes collected on property in a zone, pay
181	181	into a tax increment account for the zone an amount equal to the tax
182	182	increment produced by the county less any amounts allocated under
183	183	previous agreements, including agreements under Section 381.004,
184	184	Local Government Code, or Chapter 312, Tax Code;
185	185	(2) by order or resolution enter into an agreement
186	186	with the owner of any real property located in the transportation
187	187	reinvestment zone to abate all or a portion of the ad valorem taxes
188	188	or to grant other relief from the taxes imposed by the county on the
189	189	owner's property in an amount not to exceed the amount calculated
190	190	under Subsection (a)(1) for that year;
191	191	(3) by order or resolution elect to abate all or a
192	192	portion of the ad valorem taxes imposed by the county on all real
193	193	property in a zone; or
194	194	(4) grant other relief from ad valorem taxes on
195	195	property in a zone.
196	196	SECTION 6. Section 222.107(h-1), Transportation Code, as
197	197	added by Chapter 1345 (S.B. 1420), Acts of the 82nd Legislature,
198	198	Regular Session, 2011, is reenacted and amended to conform to
199	199	Section 222.107(h), Transportation Code, as amended by Chapter 475
200	200	(H.B. 563), Acts of the 82nd Legislature, Regular Session, 2011, to
201	201	read as follows:
202	202	(h-1) All abatements or other relief granted by the
203	203	commissioners court in a transportation reinvestment zone must be
204	204	equal in rate. In any ad valorem tax year, the total amount of the
205	205	taxes abated or the total amount of relief granted under this
206	206	section may not exceed the amount calculated under Subsection
207	207	(a)(1) for that year, less any amounts allocated under previous
208	208	agreements, including agreements under Chapter 381 [Section
209	209	381.004], Local Government Code, or Chapter 312, Tax Code.
210	210	SECTION 7. Section 222.107(h-1), Transportation Code, as
211	211	added by Chapter 475 (H.B. 563), Acts of the 82nd Legislature,
212	212	Regular Session, 2011, is redesignated as Section 222.107(h-2),
213	213	Transportation Code, and amended to read as follows:
214	214	(h-2) [(h-1)] To further the development of the
215	215	transportation project or projects for which the transportation
216	216	reinvestment zone was designated, a county may assess all or part of
217	217	the cost of the transportation project or projects against property
218	218	within the zone. The assessment against each property in the zone
219	219	may be levied and payable in installments in the same manner as
220	220	provided by Sections 372.016-372.018, Local Government Code,
221	221	provided that the installments do not exceed the total amount of the
222	222	tax abatement or other relief granted under Subsection (h). The
223	223	county may elect to adopt and apply the provisions of Sections
224	224	372.015-372.020 and 372.023, Local Government Code, to the
225	225	assessment of costs and Sections 372.024-372.030, Local Government
226	226	Code, to the issuance of bonds by the county to pay the cost of a
227	227	transportation project. The commissioners court of the county may
228	228	contract with a public or private entity to develop, redevelop, or
229	229	improve a transportation project in the transportation
230	230	reinvestment zone, including aesthetic improvements, and may
231	231	pledge and assign to that entity all or a specified amount of the
232	232	revenue the county receives from the tax increment or the
233	233	installment payments of the assessments for the payment of the
234	234	costs of that transportation project. After a pledge or assignment
235	235	is made, [if the entity that received the pledge or assignment has
236	236	itself pledged or assigned that amount to secure bonds or other
237	237	obligations issued to obtain funding for the transportation
238	238	project,] the commissioners court of the county may not rescind its
239	239	pledge or assignment until the contractual commitments that are the
240	240	subject of [bonds or other obligations secured by] the pledge or
241	241	assignment have been satisfied [paid or discharged]. Any amount
242	242	received from the tax increment or the installment payments of the
243	243	assessments not pledged or assigned in connection with a [the]
244	244	transportation project may be used for other purposes as determined
245	245	by the commissioners court [associated with the transportation
246	246	project or in the zone].
247	247	SECTION 8. Section 222.108(a), Transportation Code, is
248	248	amended to read as follows:
249	249	(a) A [Notwithstanding the requirement in Sections
250	250	222.106(b) and 222.107(b) that a transportation reinvestment zone
251	251	be established in connection with a project under Section 222.104,
252	252	a] municipality or county may establish a transportation
253	253	reinvestment zone for one or more [any] transportation projects
254	254	[project]. If all or part of a [the] transportation project is
255	255	subject to oversight by the department, at the option of the
256	256	governing body of the municipality or county, the department, to
257	257	the extent permitted by law, shall delegate full responsibility for
258	258	the development, design, letting of bids, and construction of the
259	259	project, including project inspection, to the municipality or
260	260	county. After assuming responsibility for a project under this
261	261	subsection, a municipality or county shall enter into an agreement
262	262	with the department that prescribes:
263	263	(1) the development process;
264	264	(2) the roles and responsibilities of the parties; and
265	265	(3) the timelines for any required reviews or
266	266	approvals.
267	267	SECTION 9. Section 222.110(e), Transportation Code, is
268	268	amended to read as follows:
269	269	(e) The sales and use taxes to be deposited into the tax
270	270	increment account under this section may be disbursed from the
271	271	account only to:
272	272	(1) pay for projects authorized under Section 222.104
273	273	or 222.108 [, including the repayment of amounts owed under an
274	274	agreement entered into under that section]; and
275	275	(2) notwithstanding Sections 321.506 and 323.505, Tax
276	276	Code, satisfy claims of holders of tax increment bonds, notes, or
277	277	other obligations issued or incurred for projects authorized under
278	278	Section 222.104 or 222.108.
279	279	SECTION 10. Subchapter E, Chapter 222, Transportation Code,
280	280	is amended by adding Section 222.111 to read as follows:
281	281	Sec. 222.111. TRANSPORTATION REINVESTMENT ZONES FOR
282	282	PROJECTS LOCATED IN OTHER JURISDICTIONS. Notwithstanding any other
283	283	law, the governing body of a county or municipality may designate a
284	284	transportation reinvestment zone for a transportation project
285	285	located outside the boundaries of the county or municipality if:
286	286	(1) the county or municipality finds that:
287	287	(A) the project will benefit the property and
288	288	residents located in the zone; and
289	289	(B) the creation of the zone will serve a public
290	290	purpose of that county or municipality;
291	291	(2) a zone has been designated for the same project by
292	292	one or more counties or municipalities in whose boundaries the
293	293	project is located; and
294	294	(3) an agreement for joint support of the designated
295	295	zones is entered into under this section by:
296	296	(A) the county or municipality whose boundaries
297	297	do not contain the project; and
298	298	(B) one or more of the counties or municipalities
299	299	that have designated a zone for the project and in whose boundaries
300	300	the project is located.
301	301	SECTION 11. Sections 222.107(i-1) and 222.108(d),
302	302	Transportation Code, are repealed.
303	303	SECTION 12. This Act takes effect September 1, 2013.