Texas 2015 - 84th Regular

Texas House Bill HB3827 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R7519 CJC-D
2	2	By: Elkins H.B. No. 3827
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to tax increment financing.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 311.004, Tax Code, is amended by adding
10	10	Subsection (d) to read as follows:
11	11	(d) For purposes of Subsection (a)(4), an order or ordinance
12	12	designating a reinvestment zone that is adopted on or after
13	13	September 1, 2015, must provide that the zone terminates not later
14	14	than the 10th anniversary of the date on which the ordinance or
15	15	order designating the zone is adopted.
16	16	SECTION 2. Section 311.006(a), Tax Code, is amended to read
17	17	as follows:
18	18	(a) A municipality may not designate a reinvestment zone if:
19	19	(1) more than 10 [30] percent of the property in the
20	20	proposed zone, excluding property that is publicly owned, is used
21	21	for residential purposes; or
22	22	(2) the total appraised value of taxable real property
23	23	in the proposed zone and in existing reinvestment zones exceeds 10
24	24	[:
25	25	[(A) 25] percent of the total appraised value of
26	26	taxable real property in the municipality and in the industrial
27	27	districts created by the municipality[, if the municipality has a
28	28	population of 100,000 or more; or
29	29	[(B) 50 percent of the total appraised value of
30	30	taxable real property in the municipality and in the industrial
31	31	districts created by the municipality, if the municipality has a
32	32	population of less than 100,000].
33	33	SECTION 3. The heading to Section 311.007, Tax Code, is
34	34	amended to read as follows:
35	35	Sec. 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE;
36	36	LIMITATION ON EXTENSION OF TERM.
37	37	SECTION 4. Section 311.007, Tax Code, is amended by
38	38	amending Subsection (c) and adding Subsections (d) and (e) to read
39	39	as follows:
40	40	(c) Subject to Subsections (d) and (e), the [The] governing
41	41	body of the municipality or county that designated a reinvestment
42	42	zone by ordinance or resolution or by order or resolution,
43	43	respectively, may extend the term of all or a portion of the zone
44	44	after notice and hearing in the manner provided for the designation
45	45	of the zone. A taxing unit other than the municipality or county
46	46	that designated the zone is not required to participate in the zone
47	47	or portion of the zone for the extended term unless the taxing unit
48	48	enters into a written agreement to do so.
49	49	(d) Except as provided by Subsection (e), the term of all or
50	50	any portion of a reinvestment zone may not be extended beyond the
51	51	10th anniversary of the date on which the ordinance or order
52	52	designating the zone is adopted.
53	53	(e) This subsection applies only to a reinvestment zone
54	54	designated before September 1, 2015, the term of which extends
55	55	beyond the period prescribed by Subsection (d). A reinvestment
56	56	zone to which this subsection applies must terminate on the earlier
57	57	of:
58	58	(1) the termination date expressed in the ordinance or
59	59	order designating the zone or an earlier termination date
60	60	designated by an ordinance or order adopted under Subsection (c);
61	61	or
62	62	(2) the date on which all project costs, tax increment
63	63	bonds and interest on those bonds, and other obligations of the zone
64	64	have been paid in full.
65	65	SECTION 5. Chapter 311, Tax Code, is amended by adding
66	66	Section 311.0111 to read as follows:
67	67	Sec. 311.0111. RESTRICTION ON BOARD'S AUTHORITY TO AMEND
68	68	PLAN. The board of directors of a reinvestment zone may not adopt,
69	69	and the governing body of a municipality may not approve, an
70	70	amendment to the project plan if:
71	71	(1) the median appraised value of taxable real
72	72	property located in the zone equals or exceeds the median appraised
73	73	value of taxable real property that is located outside the
74	74	boundaries of the zone and that is within the designating
75	75	municipality's corporate boundaries and extraterritorial
76	76	jurisdiction; and
77	77	(2) the amendment is required under Section 311.011(e)
78	78	to be approved by ordinance adopted after a public hearing that
79	79	satisfies the procedural requirements of Sections 311.003(c) and
80	80	(d).
81	81	SECTION 6. Sections 311.015(a) and (c), Tax Code, are
82	82	amended to read as follows:
83	83	(a) Subject to Subsection (c), a [A] municipality
84	84	designating a reinvestment zone may issue tax increment bonds or
85	85	notes, the proceeds of which may be used to make payments pursuant
86	86	to agreements made under Section 311.010(b), to pay project costs
87	87	for the reinvestment zone on behalf of which the bonds or notes were
88	88	issued, or to satisfy claims of holders of the bonds or notes. The
89	89	municipality may issue refunding bonds or notes for the payment or
90	90	retirement of tax increment bonds or notes previously issued by it.
91	91	(c) Tax increment bonds and notes are issued by ordinance of
92	92	the municipality after the [without any additional] approval of the
93	93	qualified voters of the municipality as provided by Section
94	94	311.0151 [other than that of the attorney general].
95	95	SECTION 7. Chapter 311, Tax Code, is amended by adding
96	96	Section 311.0151 to read as follows:
97	97	Sec. 311.0151. BOND ELECTION REQUIRED. (a) A municipality
98	98	may issue tax increment bonds and notes under Section 311.015 as
99	99	provided by this section.
100	100	(b) A municipality may not authorize tax increment bonds and
101	101	notes unless a majority of the municipality's qualified voters who
102	102	vote at an election ordered for that purpose approve the issuance of
103	103	the bonds and notes.
104	104	(c) The municipality may order an election on the tax
105	105	increment bonds and notes. The order must contain the same
106	106	information contained in the notice of the election.
107	107	(d) The municipality shall publish notice of the election at
108	108	least once in a newspaper of general circulation in the
109	109	municipality. The notice must be published not later than the 31st
110	110	day before election day.
111	111	(e) In addition to the contents of the notice required by
112	112	the Election Code, the notice must state:
113	113	(1) the amount of bonds or notes to be authorized; and
114	114	(2) the maximum maturity of the bonds or notes.
115	115	SECTION 8. (a) Section 311.006(a), Tax Code, as amended by
116	116	this Act, applies only to a reinvestment zone designated on or after
117	117	the effective date of this Act. A reinvestment zone designated
118	118	before the effective date of this Act is governed by the law in
119	119	effect on the date the zone was designated, and the former law is
120	120	continued in effect for that purpose.
121	121	(b) Section 311.0111, Tax Code, as added by this Act,
122	122	applies only to an amendment to a reinvestment zone project plan
123	123	proposed on or after the effective date of this Act. An amendment
124	124	proposed before the effective date of this Act is governed by the
125	125	law in effect on the date the amendment was proposed, and the former
126	126	law is continued in effect for that purpose.
127	127	(c) Section 311.015, Tax Code, as amended by this Act, and
128	128	Section 311.0151, Tax Code, as added by this Act, apply only to
129	129	bonds issued on or after the effective date of this Act. Bonds
130	130	issued before the effective date of this Act are governed by the law
131	131	in effect on the date the bonds were issued, and the former law is
132	132	continued in effect for that purpose.
133	133	SECTION 9. This Act takes effect September 1, 2015.