Texas Senate Bill SB650

Texas 2017 - 85th Regular

Caption

Relating to tax increment financing.

Impact

If enacted, SB650 would substantially modify state laws regarding tax increment financing and reinvestment zones. The bill introduces a requirement for municipalities to provide evidence to the attorney general regarding the designation of a reinvestment zone and the legal sufficiency of that evidence. Municipalities would also be required to adhere to new notification protocols for bond issuance, which is expected to result in increased transparency and community engagement during the planning stages of development projects.

Summary

SB650, relating to tax increment financing, seeks to amend existing provisions to facilitate the creation and governance of reinvestment zones. The legislation aims to improve local governmental tools for economic development by allowing municipalities to designate areas in need of revitalization and allocate tax increment funds accordingly. The bill outlines specific criteria for designating reinvestment zones, emphasizing the importance of addressing blighted conditions that could impede local growth and provide potential benefits to communities. This is intended to address issues related to housing, public infrastructure, and educational facilities within designated areas.

Contention

Notably, SB650 has raised some concerns regarding the balance of local governance and oversight by state authorities. Critics argue that the involvement of the attorney general might create additional bureaucratic hurdles for municipalities trying to access vital funding for projects. Moreover, the definitions of terms such as 'unproductive' and 'blighted' are to be determined by the attorney general, which could lead to inconsistencies in how different regions interpret these criteria and their associated impacts on local economies.