87R12123 CJC-F
By: Kuempel H.B. No. 3267
A BILL TO BE ENTITLED
AN ACT
relating to a restriction on the use of money in the tax increment
fund for a tax increment financing reinvestment zone created by
certain home-rule municipalities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 311, Tax Code, is amended by adding
Section 311.0088 to read as follows:
Sec. 311.0088. RESTRICTION ON USE OF TAX INCREMENT IN
CERTAIN REINVESTMENT ZONES. (a) This section applies only to a
development agreement, project plan, or reinvestment zone
financing plan for a reinvestment zone designated by a home-rule
municipality that includes property that:
(1) before 2003, was annexed by the municipality for
limited purposes;
(2) was the subject of a petition for annexation
signed by a majority of the owners of the property and filed with
the municipality under former Section 43.028 or 43.052(h)(2), Local
Government Code; and
(3) by ordinance adopted after September 1, 2005, was
annexed by the municipality for full purposes.
(b) Notwithstanding any other provision of this chapter, a
development agreement, project plan, or reinvestment zone
financing plan for a reinvestment zone may not include a provision
requiring money in the tax increment fund established for the
reinvestment zone to be paid to the municipality that designated
the zone to:
(1) pay the costs of services that will be provided in
the zone by the municipality; or
(2) reimburse the municipality for the costs of
services that were previously provided in the zone by the
municipality.
(c) If a development agreement, project plan, or
reinvestment zone financing plan contains a provision that
conflicts with this section, the provision is void and the
remaining provisions of the agreement, project plan, or
reinvestment zone financing plan are enforceable.
(d) A municipality that received a disbursement from a tax
increment fund under a provision of a development agreement,
project plan, or reinvestment zone financing plan that violates
this section shall reimburse the fund in the amount of the
disbursement received by the municipality.
(e) A party to a development agreement, project plan, or
reinvestment zone financing plan may file an action in the district
court of the county in which the development agreement, project
plan, or reinvestment zone financing plan is performable to have a
provision of the agreement or plan that violates this section
declared void and to enforce the remaining provisions of the
agreement or plan by mandamus or injunctive relief. A party who
prevails in an action under this subsection shall be awarded
reasonable attorney's fees and court costs. Sovereign immunity to
suit and liability is waived and abolished to the extent of
liability created by this subsection.
SECTION 2. Section 311.0088, Tax Code, as added by this Act,
applies to a development agreement, project plan, or reinvestment
zone financing plan to which that section applies regardless of the
date on which the agreement or plan was approved or adopted by the
parties to the agreement or plan.
SECTION 3. 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, 2021.