By: Garcia, Bettencourt S.B. No. 1765
A BILL TO BE ENTITLED
AN ACT
relating to tax increment reinvestment zone transparency and
accountability.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.004, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) For purposes of Subsection (a)(4), an ordinance or order
designating a reinvestment zone that is adopted on or after
September 1, 2017, must provide that the zone terminates not later
than the 10th anniversary of the date on which the ordinance or
order designating the zone is adopted.
SECTION 2. Section 311.005(a), Tax Code, is amended to read
as follows:
(a) To be designated as a reinvestment zone, an area must:
(1) substantially arrest or impair the sound growth of
the municipality or county designating the zone, retard the
provision of housing accommodations, or constitute an economic or
social liability and be a menace to the public health, safety,
morals, or welfare in its present condition and use because of the
presence of:
(A) a substantial number of substandard, slum,
deteriorated, or deteriorating structures;
(B) the predominance of defective or inadequate
sidewalk or street layout;
(C) faulty lot layout in relation to size,
adequacy, accessibility, or usefulness;
(D) unsanitary or unsafe conditions;
(E) the deterioration of site or other
improvements;
(F) tax or special assessment delinquency
exceeding the fair value of the land;
(G) defective or unusual conditions of title;
(H) conditions that endanger life or property by
fire or other cause; or
(I) structures, other than single-family
residential structures, less than 10 percent of the square footage
of which has been used for commercial, industrial, or residential
purposes during the preceding 12 years, if the municipality has a
population of 100,000 or more;
(2) be predominantly open or undeveloped and, because
of obsolete platting, deterioration of structures or site
improvements, or other factors, substantially impair or arrest the
sound growth of the municipality or county;
(3) be in a federally assisted new community located
in the municipality or county or in an area immediately adjacent to
a federally assisted new community; or
(4) be an area that is:
(A) described in a petition requesting that the
area be designated as a reinvestment zone, if the petition is
submitted to the governing body of the municipality or county by the
owners of property constituting at least 50 percent of the
appraised value of the property in the area according to the most
recent certified appraisal roll for the county in which the area is
located; and
(B) unproductive, underdeveloped, or blighted.
SECTION 3. The heading to Section 311.007, Tax Code, is
amended to read as follows:
Sec. 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE;
LIMITATION ON EXTENSION OF TERM.
SECTION 4. Section 311.007, Tax Code, is amended by
amending Subsection (c) and adding Subsections (d), (e), and (f) to
read as follows:
(c) Subject to Subsections (d) and (e), the [The] governing
body of the municipality or county that designated a reinvestment
zone by ordinance or resolution or by order or resolution,
respectively, may extend the term of all or a portion of the zone
after notice and hearing in the manner provided for the designation
of the zone. A taxing unit other than the municipality or county
that designated the zone is not required to participate in the zone
or portion of the zone for the extended term unless the taxing unit
enters into a written agreement to do so.
(d) Except as provided by Subsections (e) and (f), the term
of all or any portion of a reinvestment zone may not be extended
beyond the 10th anniversary of the date on which the ordinance or
order designating the zone is adopted.
(e) This subsection applies only to a reinvestment zone
designated before September 1, 2017, the term of which extends
beyond the period prescribed by Subsection (d). Except as provided
by Subsection (f), a reinvestment zone to which this subsection
applies must terminate on the earlier of:
(1) the termination date expressed in the ordinance or
order designating the zone or an earlier termination date
designated by an ordinance or order adopted under Subsection (c);
or
(2) the date on which all project costs, tax increment
bonds and interest on those bonds, and other obligations of the zone
have been paid in full.
(f) The term of all or any portion of a reinvestment zone may
be extended beyond the date prescribed by Subsection (d) or (e) only
if the extension is approved by the voters of the zone voting at an
election held for that purpose.
SECTION 5. The heading to Section 311.009, Tax Code, is
amended to read as follows:
Sec. 311.009. [COMPOSITION OF] BOARD OF DIRECTORS;
OFFICERS.
SECTION 6. Section 311.009, Tax Code, is amended by adding
Subsection (c-1) to read as follows:
(c-1) This subsection applies only to a member of a board of
directors of a reinvestment zone designated by a municipality that
limits the number of terms that a member of the governing body of
the municipality may serve on that governing body. The limitation
on the number of terms that a member of the governing body of the
municipality may serve on that governing body applies to the number
of terms that a member of the board of directors may serve on that
board.
SECTION 7. The heading to Section 311.0091, Tax Code, is
amended to read as follows:
Sec. 311.0091. [COMPOSITION OF] BOARD OF DIRECTORS OF
CERTAIN REINVESTMENT ZONES; OFFICERS.
SECTION 8. Section 311.0091, Tax Code, is amended by adding
Subsection (d-1) to read as follows:
(d-1) Section 311.009(c-1) applies to a member of the board
appointed under this section.
SECTION 9. Chapter 311, Tax Code, is amended by adding
Section 311.0195 to read as follows:
Sec. 311.0195. MUNICIPAL TRANSPARENCY WEB PAGE. (a) This
section applies only to a municipality that has designated a
reinvestment zone under this chapter.
(b) A municipality shall maintain an Internet website to
comply with this section.
(c) A municipality shall maintain on the municipality's
Internet website a web page dedicated to providing transparency to
the residents of the municipality regarding each reinvestment zone
designated by the municipality under this chapter. The municipality
shall post the following documents and information for each
reinvestment zone designated by the municipality on the web page as
soon as the document or information is available:
(1) the ordinance designating an area as the zone;
(2) the project plan adopted for the zone under
Section 311.011;
(3) the reinvestment zone financing plan adopted for
the zone under Section 311.011;
(4) the annual report for the zone required by Section
311.016;
(5) each agreement entered into between the board of
directors of the zone and the municipality;
(6) the budget and annual financial report prepared
for the zone, if applicable;
(7) a comprehensive explanation of:
(A) the criteria described by Section 311.005
that formed the basis for the municipality's designation of the
zone;
(B) the project plan adopted for the zone;
(C) the reinvestment zone financing plan adopted
for the zone;
(D) the benefits that are projected to result
from designation of the zone, including any projected increase in
tax revenue or projected creation of new jobs; and
(E) the date the zone will be terminated;
(8) comprehensive financial information for the tax
increment fund for the zone, including:
(A) the amount of revenue deposited to the fund;
(B) the amount of disbursements from the fund;
(C) the amount of project costs and a description
of those costs; and
(D) a list of all persons receiving money from
the fund;
(9) the agenda and minutes of each public meeting of
the board of directors of the zone;
(10) the contact information of a municipal officer or
employee who can answer questions regarding the zone;
(11) the contact information for each member of the
board of directors of the zone; and
(12) any other document or information that the
governing body of the municipality considers appropriate to be
posted on the web page.
(d) A municipality may not remove a document or item of
information required to be posted under Subsection (c) from the
transparency web page until the 10th anniversary of the date the
applicable reinvestment zone is terminated.
(e) The requirements prescribed by this section are in
addition to any other requirement prescribed by law.
SECTION 10. Section 311.005(a), Tax Code, as amended by
this Act, applies only to a reinvestment zone designated on or after
the effective date of this Act. A reinvestment zone designated
before the effective date of this Act, is governed by the law as it
existed immediately before the effective date of this Act, and that
law is continued in effect for that purpose.
SECTION 11. The changes in law made by this Act to Sections
311.009 and 311.0091, Tax Code, do not affect the eligibility of a
person serving on a board of directors of a reinvestment zone
immediately before the effective date of this Act to continue to
serve on the board for the term to which the member was appointed.
SECTION 12. This Act takes effect September 1, 2017.