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
 
 
 
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.
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