Bill Text: TX HB3267 | 2021-2022 | 87th Legislature | Introduced
Bill Title: 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.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2021-04-26 - Left pending in committee [HB3267 Detail]
Download: Texas-2021-HB3267-Introduced.html
87R12123 CJC-F | ||
By: Kuempel | H.B. No. 3267 |
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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. |