85R13071 SMT-D
By: Bohac H.B. No. 4046
A BILL TO BE ENTITLED
AN ACT
relating to the election of members of the boards of directors of
certain tax increment reinvestment zones.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 311, Tax Code, is amended by adding
Section 311.0092 to read as follows:
Sec. 311.0092. COMPOSITION OF BOARD OF DIRECTORS OF
REINVESTMENT ZONES IN CERTAIN POPULOUS MUNICIPALITIES. (a) This
section applies to a reinvestment zone located wholly or partly in a
municipality with a population of at least two million.
(b) For purposes of this section, an area adjacent to a
reinvestment zone means any area in an election precinct any part of
which is within two miles of the zone's boundaries in any direction.
(c) The board of directors of a reinvestment zone consists
of at least 11 and not more than 15 members, unless more than 15
members are required to satisfy the requirements of this
subsection. A majority of members of the board must be elected in a
nonpartisan election. Each taxing unit that approves the payment
of all or part of its tax increment into the tax increment fund is
entitled to appoint a member, including the county or municipality
that designated the zone. A taxing unit may waive its right to
appoint a director. The member of the state senate in whose
district the zone is located is a member of the board, and the
member of the state house of representatives in whose district the
zone is located is a member of the board, except that either may
designate another individual to serve in the member's place at the
pleasure of the member. If the zone is located in more than one
senate or house district, this subsection applies only to the
senator or representative in whose district a larger portion of the
zone is located than any other senate or house district, as
applicable. The municipality shall hold an election to elect the
number of members to the board that results in at least 51 percent
of the members of the board being elected.
(d) An election required by this section must be held in an
even-numbered year on the uniform election date in November
authorized by Section 41.001, Election Code. A municipality may
contract with the county to hold the election.
(e) Members of the board are appointed or elected for terms
of two years unless longer terms are provided under Section 11,
Article XI, Texas Constitution. Terms of members may be staggered.
(f) Individuals residing in the zone or in an area adjacent
to the zone are eligible to vote in the election of members of the
board.
(g) A vacancy on the board is filled for the unexpired term
by appointment of the governing body of the taxing unit that
appointed the director who served in the vacant position or, if the
vacant position was an elected position, by election on the next
election date under Subsection (d) that provides sufficient time to
comply with other requirements of law.
(h) To be eligible for appointment or to be a candidate for
or be elected to the board, an individual must:
(1) be a qualified voter of the municipality and
reside in the zone or in an area adjacent to the zone; or
(2) be at least 18 years of age and own real property
in the zone or in an area adjacent to the zone or be an employee or
agent of a person that owns real property in the zone or in an area
adjacent to the zone.
(i) Each year the board of directors of a reinvestment zone
shall elect one of its members to serve as presiding officer for a
term of one year. The board of directors may elect an assistant
presiding officer to preside in the absence of the presiding
officer or when there is a vacancy in the office of presiding
officer. The board may elect other officers as it considers
appropriate.
(j) A member of the board of directors of a reinvestment
zone:
(1) is not a public official by virtue of that
position; and
(2) unless otherwise ineligible, may be appointed to
serve concurrently on the board of directors of a local government
corporation created under Subchapter D, Chapter 431,
Transportation Code.
(k) This section does not apply to a tax increment
reinvestment zone designated in accordance with a law other than
this chapter that provides that an entity identified in the other
law serves as the board of directors of the tax increment
reinvestment zone.
SECTION 2. Section 311.004(a), Tax Code, is amended to read
as follows:
(a) The ordinance or order designating an area as a
reinvestment zone must:
(1) describe the boundaries of the zone with
sufficient definiteness to identify with ordinary and reasonable
certainty the territory included in the zone;
(2) create a board of directors for the zone and
specify the number of directors of the board as provided by Section
311.009, [or] 311.0091, or 311.0092, as applicable;
(3) provide that the zone take effect immediately upon
passage of the ordinance or order;
(4) provide a date for termination of the zone;
(5) assign a name to the zone for identification, with
the first zone created by a municipality or county designated as
"Reinvestment Zone Number One, City (or Town, as applicable) of
(name of municipality)," or "Reinvestment Zone Number One, (name of
county) County," as applicable, and subsequently created zones
assigned names in the same form numbered consecutively in the order
of their creation;
(6) establish a tax increment fund for the zone; and
(7) contain findings that:
(A) improvements in the zone will significantly
enhance the value of all the taxable real property in the zone and
will be of general benefit to the municipality or county; and
(B) the area meets the requirements of Section
311.005.
SECTION 3. (a) This section of this Act applies to a tax
increment reinvestment zone to which Section 311.0092, Tax Code, as
added by this Act, applies.
(b) Not later than January 1, 2019, the composition and
number of members serving on the board of a tax increment
reinvestment zone must comply with the requirements of Section
311.0092, Tax Code, as added by this Act.
(c) Members required to be elected to the board of a tax
increment reinvestment zone shall be elected beginning with the
general election conducted in 2018. Members then elected take
office January 1, 2019.
(d) The change in the manner of selection of the board of
directors of a tax increment reinvestment zone does not affect the
selection of directors who serve on the board before January 1,
2019.
(e) The term of a member of the board of directors serving on
December 31, 2018, expires on January 1, 2019.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.