Texas 2021 - 87th Regular

Texas House Bill HB3267 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R12123 CJC-F
2	2	By: Kuempel H.B. No. 3267
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a restriction on the use of money in the tax increment
8	8	fund for a tax increment financing reinvestment zone created by
9	9	certain home-rule municipalities.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 311, Tax Code, is amended by adding
12	12	Section 311.0088 to read as follows:
13	13	Sec. 311.0088. RESTRICTION ON USE OF TAX INCREMENT IN
14	14	CERTAIN REINVESTMENT ZONES. (a) This section applies only to a
15	15	development agreement, project plan, or reinvestment zone
16	16	financing plan for a reinvestment zone designated by a home-rule
17	17	municipality that includes property that:
18	18	(1) before 2003, was annexed by the municipality for
19	19	limited purposes;
20	20	(2) was the subject of a petition for annexation
21	21	signed by a majority of the owners of the property and filed with
22	22	the municipality under former Section 43.028 or 43.052(h)(2), Local
23	23	Government Code; and
24	24	(3) by ordinance adopted after September 1, 2005, was
25	25	annexed by the municipality for full purposes.
26	26	(b) Notwithstanding any other provision of this chapter, a
27	27	development agreement, project plan, or reinvestment zone
28	28	financing plan for a reinvestment zone may not include a provision
29	29	requiring money in the tax increment fund established for the
30	30	reinvestment zone to be paid to the municipality that designated
31	31	the zone to:
32	32	(1) pay the costs of services that will be provided in
33	33	the zone by the municipality; or
34	34	(2) reimburse the municipality for the costs of
35	35	services that were previously provided in the zone by the
36	36	municipality.
37	37	(c) If a development agreement, project plan, or
38	38	reinvestment zone financing plan contains a provision that
39	39	conflicts with this section, the provision is void and the
40	40	remaining provisions of the agreement, project plan, or
41	41	reinvestment zone financing plan are enforceable.
42	42	(d) A municipality that received a disbursement from a tax
43	43	increment fund under a provision of a development agreement,
44	44	project plan, or reinvestment zone financing plan that violates
45	45	this section shall reimburse the fund in the amount of the
46	46	disbursement received by the municipality.
47	47	(e) A party to a development agreement, project plan, or
48	48	reinvestment zone financing plan may file an action in the district
49	49	court of the county in which the development agreement, project
50	50	plan, or reinvestment zone financing plan is performable to have a
51	51	provision of the agreement or plan that violates this section
52	52	declared void and to enforce the remaining provisions of the
53	53	agreement or plan by mandamus or injunctive relief. A party who
54	54	prevails in an action under this subsection shall be awarded
55	55	reasonable attorney's fees and court costs. Sovereign immunity to
56	56	suit and liability is waived and abolished to the extent of
57	57	liability created by this subsection.
58	58	SECTION 2. Section 311.0088, Tax Code, as added by this Act,
59	59	applies to a development agreement, project plan, or reinvestment
60	60	zone financing plan to which that section applies regardless of the
61	61	date on which the agreement or plan was approved or adopted by the
62	62	parties to the agreement or plan.
63	63	SECTION 3. This Act takes effect immediately if it receives
64	64	a vote of two-thirds of all the members elected to each house, as
65	65	provided by Section 39, Article III, Texas Constitution. If this
66	66	Act does not receive the vote necessary for immediate effect, this
67	67	Act takes effect September 1, 2021.