Texas 2017 - 85th Regular

Texas Senate Bill SB1765 Compare Versions

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1	1	By: Garcia, Bettencourt S.B. No. 1765
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to tax increment reinvestment zone transparency and
7	7	accountability.
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 ordinance or order
12	12	designating a reinvestment zone that is adopted on or after
13	13	September 1, 2017, 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 311.005(a), Tax Code, is amended to read
17	17	as follows:
18	18	(a) To be designated as a reinvestment zone, an area must:
19	19	(1) substantially arrest or impair the sound growth of
20	20	the municipality or county designating the zone, retard the
21	21	provision of housing accommodations, or constitute an economic or
22	22	social liability and be a menace to the public health, safety,
23	23	morals, or welfare in its present condition and use because of the
24	24	presence of:
25	25	(A) a substantial number of substandard, slum,
26	26	deteriorated, or deteriorating structures;
27	27	(B) the predominance of defective or inadequate
28	28	sidewalk or street layout;
29	29	(C) faulty lot layout in relation to size,
30	30	adequacy, accessibility, or usefulness;
31	31	(D) unsanitary or unsafe conditions;
32	32	(E) the deterioration of site or other
33	33	improvements;
34	34	(F) tax or special assessment delinquency
35	35	exceeding the fair value of the land;
36	36	(G) defective or unusual conditions of title;
37	37	(H) conditions that endanger life or property by
38	38	fire or other cause; or
39	39	(I) structures, other than single-family
40	40	residential structures, less than 10 percent of the square footage
41	41	of which has been used for commercial, industrial, or residential
42	42	purposes during the preceding 12 years, if the municipality has a
43	43	population of 100,000 or more;
44	44	(2) be predominantly open or undeveloped and, because
45	45	of obsolete platting, deterioration of structures or site
46	46	improvements, or other factors, substantially impair or arrest the
47	47	sound growth of the municipality or county;
48	48	(3) be in a federally assisted new community located
49	49	in the municipality or county or in an area immediately adjacent to
50	50	a federally assisted new community; or
51	51	(4) be an area that is:
52	52	(A) described in a petition requesting that the
53	53	area be designated as a reinvestment zone, if the petition is
54	54	submitted to the governing body of the municipality or county by the
55	55	owners of property constituting at least 50 percent of the
56	56	appraised value of the property in the area according to the most
57	57	recent certified appraisal roll for the county in which the area is
58	58	located; and
59	59	(B) unproductive, underdeveloped, or blighted.
60	60	SECTION 3. The heading to Section 311.007, Tax Code, is
61	61	amended to read as follows:
62	62	Sec. 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE;
63	63	LIMITATION ON EXTENSION OF TERM.
64	64	SECTION 4. Section 311.007, Tax Code, is amended by
65	65	amending Subsection (c) and adding Subsections (d), (e), and (f) to
66	66	read as follows:
67	67	(c) Subject to Subsections (d) and (e), the [The] governing
68	68	body of the municipality or county that designated a reinvestment
69	69	zone by ordinance or resolution or by order or resolution,
70	70	respectively, may extend the term of all or a portion of the zone
71	71	after notice and hearing in the manner provided for the designation
72	72	of the zone. A taxing unit other than the municipality or county
73	73	that designated the zone is not required to participate in the zone
74	74	or portion of the zone for the extended term unless the taxing unit
75	75	enters into a written agreement to do so.
76	76	(d) Except as provided by Subsections (e) and (f), the term
77	77	of all or any portion of a reinvestment zone may not be extended
78	78	beyond the 10th anniversary of the date on which the ordinance or
79	79	order designating the zone is adopted.
80	80	(e) This subsection applies only to a reinvestment zone
81	81	designated before September 1, 2017, the term of which extends
82	82	beyond the period prescribed by Subsection (d). Except as provided
83	83	by Subsection (f), a reinvestment zone to which this subsection
84	84	applies must terminate on the earlier of:
85	85	(1) the termination date expressed in the ordinance or
86	86	order designating the zone or an earlier termination date
87	87	designated by an ordinance or order adopted under Subsection (c);
88	88	or
89	89	(2) the date on which all project costs, tax increment
90	90	bonds and interest on those bonds, and other obligations of the zone
91	91	have been paid in full.
92	92	(f) The term of all or any portion of a reinvestment zone may
93	93	be extended beyond the date prescribed by Subsection (d) or (e) only
94	94	if the extension is approved by the voters of the zone voting at an
95	95	election held for that purpose.
96	96	SECTION 5. The heading to Section 311.009, Tax Code, is
97	97	amended to read as follows:
98	98	Sec. 311.009. [COMPOSITION OF] BOARD OF DIRECTORS;
99	99	OFFICERS.
100	100	SECTION 6. Section 311.009, Tax Code, is amended by adding
101	101	Subsection (c-1) to read as follows:
102	102	(c-1) This subsection applies only to a member of a board of
103	103	directors of a reinvestment zone designated by a municipality that
104	104	limits the number of terms that a member of the governing body of
105	105	the municipality may serve on that governing body. The limitation
106	106	on the number of terms that a member of the governing body of the
107	107	municipality may serve on that governing body applies to the number
108	108	of terms that a member of the board of directors may serve on that
109	109	board.
110	110	SECTION 7. The heading to Section 311.0091, Tax Code, is
111	111	amended to read as follows:
112	112	Sec. 311.0091. [COMPOSITION OF] BOARD OF DIRECTORS OF
113	113	CERTAIN REINVESTMENT ZONES; OFFICERS.
114	114	SECTION 8. Section 311.0091, Tax Code, is amended by adding
115	115	Subsection (d-1) to read as follows:
116	116	(d-1) Section 311.009(c-1) applies to a member of the board
117	117	appointed under this section.
118	118	SECTION 9. Chapter 311, Tax Code, is amended by adding
119	119	Section 311.0195 to read as follows:
120	120	Sec. 311.0195. MUNICIPAL TRANSPARENCY WEB PAGE. (a) This
121	121	section applies only to a municipality that has designated a
122	122	reinvestment zone under this chapter.
123	123	(b) A municipality shall maintain an Internet website to
124	124	comply with this section.
125	125	(c) A municipality shall maintain on the municipality's
126	126	Internet website a web page dedicated to providing transparency to
127	127	the residents of the municipality regarding each reinvestment zone
128	128	designated by the municipality under this chapter. The municipality
129	129	shall post the following documents and information for each
130	130	reinvestment zone designated by the municipality on the web page as
131	131	soon as the document or information is available:
132	132	(1) the ordinance designating an area as the zone;
133	133	(2) the project plan adopted for the zone under
134	134	Section 311.011;
135	135	(3) the reinvestment zone financing plan adopted for
136	136	the zone under Section 311.011;
137	137	(4) the annual report for the zone required by Section
138	138	311.016;
139	139	(5) each agreement entered into between the board of
140	140	directors of the zone and the municipality;
141	141	(6) the budget and annual financial report prepared
142	142	for the zone, if applicable;
143	143	(7) a comprehensive explanation of:
144	144	(A) the criteria described by Section 311.005
145	145	that formed the basis for the municipality's designation of the
146	146	zone;
147	147	(B) the project plan adopted for the zone;
148	148	(C) the reinvestment zone financing plan adopted
149	149	for the zone;
150	150	(D) the benefits that are projected to result
151	151	from designation of the zone, including any projected increase in
152	152	tax revenue or projected creation of new jobs; and
153	153	(E) the date the zone will be terminated;
154	154	(8) comprehensive financial information for the tax
155	155	increment fund for the zone, including:
156	156	(A) the amount of revenue deposited to the fund;
157	157	(B) the amount of disbursements from the fund;
158	158	(C) the amount of project costs and a description
159	159	of those costs; and
160	160	(D) a list of all persons receiving money from
161	161	the fund;
162	162	(9) the agenda and minutes of each public meeting of
163	163	the board of directors of the zone;
164	164	(10) the contact information of a municipal officer or
165	165	employee who can answer questions regarding the zone;
166	166	(11) the contact information for each member of the
167	167	board of directors of the zone; and
168	168	(12) any other document or information that the
169	169	governing body of the municipality considers appropriate to be
170	170	posted on the web page.
171	171	(d) A municipality may not remove a document or item of
172	172	information required to be posted under Subsection (c) from the
173	173	transparency web page until the 10th anniversary of the date the
174	174	applicable reinvestment zone is terminated.
175	175	(e) The requirements prescribed by this section are in
176	176	addition to any other requirement prescribed by law.
177	177	SECTION 10. Section 311.005(a), Tax Code, as amended by
178	178	this Act, applies only to a reinvestment zone designated on or after
179	179	the effective date of this Act. A reinvestment zone designated
180	180	before the effective date of this Act, is governed by the law as it
181	181	existed immediately before the effective date of this Act, and that
182	182	law is continued in effect for that purpose.
183	183	SECTION 11. The changes in law made by this Act to Sections
184	184	311.009 and 311.0091, Tax Code, do not affect the eligibility of a
185	185	person serving on a board of directors of a reinvestment zone
186	186	immediately before the effective date of this Act to continue to
187	187	serve on the board for the term to which the member was appointed.
188	188	SECTION 12. This Act takes effect September 1, 2017.