Texas 2023 - 88th Regular

Texas Senate Bill SB2606 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R11987 MCF-F
2	2	By: Creighton S.B. No. 2606
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation and operation of a development zone by and
8	8	the tax revenue received by The Woodlands Township; providing
9	9	authority to issue bonds; providing authority to impose assessments
10	10	and taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 7, Chapter 289, Acts of the 73rd
13	13	Legislature, Regular Session, 1993, is amended by adding Subsection
14	14	(gg) to read as follows:
15	15	(gg) The district shall be treated the same in all respects
16	16	as an incorporated municipality for the purposes of Section
17	17	183.051, Tax Code.
18	18	SECTION 2. Section 11C, Chapter 289, Acts of the 73rd
19	19	Legislature, Regular Session, 1993, is amended by amending
20	20	Subsections (b), (f), (l), (p), and (q) and adding Subsections
21	21	(b-1) and (b-2) to read as follows:
22	22	(b) The board, on its own motion or on receipt of a petition
23	23	signed by the owners of all real property in a defined area of the
24	24	district, by resolution may create, designate, describe, assign a
25	25	name to, and appoint the governing body for a development zone in
26	26	the district:
27	27	(1) to promote initial development or substantial
28	28	redevelopment of the area; or
29	29	(2) if the area to be designated as the development
30	30	zone is composed solely of one or more hotels, to undertake one or
31	31	more projects to provide supplemental advertising, promotion, or
32	32	business recruitment services for the area to increase hotel
33	33	activity[, if the board finds that the creation of the zone will
34	34	further the public purposes of:
35	35	[(1) the development and diversification of the
36	36	economy of the district and the state;
37	37	[(2) the elimination of unemployment or
38	38	underemployment in the district and the state;
39	39	[(3) the development or expansion of transportation or
40	40	commerce in the district and the state; or
41	41	[(4) the promotion and stimulation of business,
42	42	commercial, and economic activity in the district and the state].
43	43	(b-1) The board may create a development zone under
44	44	Subsection (b) of this section if the board finds that the creation
45	45	of the zone will further the public purposes of:
46	46	(1) the development and diversification of the economy
47	47	of the district and the state;
48	48	(2) the elimination of unemployment or
49	49	underemployment in the district and the state;
50	50	(3) the development or expansion of transportation or
51	51	commerce in the district and the state; or
52	52	(4) the promotion and stimulation of business,
53	53	commercial, and economic activity in the district and the state.
54	54	(b-2) A development zone composed solely of one or more
55	55	hotels may fund or provide services for the purposes for which the
56	56	zone was created.
57	57	(f) A resolution designating an area as a development zone
58	58	must:
59	59	(1) describe the boundaries of the zone sufficiently
60	60	to identify with reasonable certainty the territory included;
61	61	(2) provide an effective date for the creation of the
62	62	zone;
63	63	(3) provide a date for termination of the zone;
64	64	(4) assign a name to the zone for identification;
65	65	(5) adopt a preliminary financing plan for the zone;
66	66	(6) establish a tax increment fund or project fund for
67	67	the zone; and
68	68	(7) appoint the governing body for the zone or
69	69	authorize the board to serve ex officio as the governing body of the
70	70	zone.
71	71	(l) The board and the governing body each may enter into an
72	72	agreement considered necessary or convenient to implement a project
73	73	plan and development zone financing plan and achieve their
74	74	purposes, including, for a development zone composed solely of one
75	75	or more hotels, an agreement with a convention and visitors bureau
76	76	within or adjacent to the district. An agreement may provide for
77	77	the regulation or restriction of the use of land by imposing
78	78	conditions, restrictions, or covenants that run with the land. An
79	79	agreement may dedicate revenue from the tax increment fund or
80	80	project fund to pay project costs and may provide that a restriction
81	81	adopted by the governing body continues in effect after the
82	82	termination of the development zone. The district and the
83	83	development zone may agree that the district will provide
84	84	administration, management, investment, accounting, and other
85	85	services for the zone in consideration for the benefits received by
86	86	the district through the implementation of the project plan for the
87	87	zone.
88	88	(p) Sections 311.002 and 311.014 through 311.017, Tax Code,
89	89	apply to the district, except that for purposes of this subsection:
90	90	(1) a reference in those sections to a municipality
91	91	means the district and the development zone;
92	92	(2) a reference in those sections to an ordinance
93	93	means an order;
94	94	(3) a reference in those sections to a reinvestment
95	95	zone means a development zone;
96	96	(4) a reference in those sections to an agreement made
97	97	under Subsection (b), Section 311.010, Tax Code, means an agreement
98	98	made under Subsection (l) of this section;
99	99	(5) "development" means initial development;
100	100	(6) "redevelopment" means substantial redevelopment;
101	101	(7) Section 311.016, Tax Code, applies only if ad
102	102	valorem taxes are used, in whole or in part, in payment of project
103	103	costs of a development zone; [and]
104	104	(8) a development zone created without a duration or
105	105	date of termination may be dissolved by a two-thirds vote of the
106	106	board of directors of the district or of the governing body of a
107	107	municipality or other form of local government, other than the
108	108	development zone, succeeding to the principal assets, powers,
109	109	functions, and liabilities of the district, but only if:
110	110	(A) the development zone has no outstanding
111	111	indebtedness or other obligations; or
112	112	(B) the assets, powers, functions, and
113	113	liabilities, and any outstanding indebtedness or obligations, of
114	114	the development zone are expressly assumed by the district or the
115	115	succeeding municipality or local government; and
116	116	(9) a development zone composed solely of one or more
117	117	hotels must be dissolved by the board of directors of the district
118	118	on receipt of a petition for dissolution of the development zone
119	119	signed by the owners of at least 60 percent of the assessed value of
120	120	the real property in the development zone and the district must
121	121	expressly assume the assets, powers, functions, and liabilities,
122	122	and any outstanding indebtedness or obligations, of the development
123	123	zone.
124	124	(q) Upon the creation and organization of a development zone
125	125	over the territory of one or more existing development zones, and
126	126	upon the imposition or assessment by the governing body of an ad
127	127	valorem tax or limited sales and use tax for the development zone,
128	128	any [the] existing development zones that impose or assess an ad
129	129	valorem or sales and use tax are dissolved and abolished and all
130	130	assets, properties, indebtedness, obligations, and liabilities of
131	131	the existing development zones transfer to and are assumed by the
132	132	newly created and organized development zone.
133	133	SECTION 3. Section 7(gg), Chapter 289, Acts of the 73rd
134	134	Legislature, Regular Session, 1993, as added by this Act, applies
135	135	only to taxes received on or after October 1, 2023. The comptroller
136	136	shall make the first transfer required by that subsection not later
137	137	than January 31, 2024.
138	138	SECTION 4. (a) The legal notice of the intention to
139	139	introduce this Act, setting forth the general substance of this
140	140	Act, has been published as provided by law, and the notice and a
141	141	copy of this Act have been furnished to all persons, agencies,
142	142	officials, or entities to which they are required to be furnished
143	143	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
144	144	Government Code.
145	145	(b) The governor, one of the required recipients, has
146	146	submitted the notice and Act to the Texas Commission on
147	147	Environmental Quality.
148	148	(c) The Texas Commission on Environmental Quality has filed
149	149	its recommendations relating to this Act with the governor,
150	150	lieutenant governor, and speaker of the house of representatives
151	151	within the required time.
152	152	(d) All requirements of the constitution and laws of this
153	153	state and the rules and procedures of the legislature with respect
154	154	to the notice, introduction, and passage of this Act have been
155	155	fulfilled and accomplished.
156	156	SECTION 5. This Act takes effect September 1, 2023.