Bill Text: TX HB563 | 2011-2012 | 82nd Legislature | Enrolled
Bill Title: Relating to the purposes and designation of a transportation reinvestment zone.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [HB563 Detail]
Download: Texas-2011-HB563-Enrolled.html
H.B. No. 563 |
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relating to the purposes and designation of a transportation | ||
reinvestment zone. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 222.105, Transportation Code, is amended | ||
to read as follows: | ||
Sec. 222.105. PURPOSES. The purposes of Sections 222.106 | ||
and 222.107 are to: | ||
(1) promote public safety; | ||
(2) facilitate the improvement, development, or | ||
redevelopment of property; | ||
(3) facilitate the movement of traffic; and | ||
(4) enhance a local entity's ability to sponsor a | ||
transportation project authorized under Section 222.104. | ||
SECTION 2. Section 222.106, Transportation Code, is amended | ||
by amending Subsections (b), (c), (g), (h), (i), (j), (k), and (l) | ||
and adding Subsections (i-1) and (i-2) to read as follows: | ||
(b) This section applies only to a municipality in which a | ||
transportation project is to be developed [ |
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Section 222.104. | ||
(c) If the governing body determines an area to be | ||
unproductive and underdeveloped and that action under this section | ||
will further the purposes stated in Section 222.105, the governing | ||
body of the municipality by ordinance may designate a contiguous | ||
geographic area in the jurisdiction of the municipality to be a | ||
transportation reinvestment zone to promote a transportation | ||
project [ |
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(g) The ordinance designating an area as a transportation | ||
reinvestment zone must: | ||
(1) describe the boundaries of the zone with | ||
sufficient definiteness to identify with ordinary and reasonable | ||
certainty the territory included in the zone; | ||
(2) provide that the zone takes effect immediately on | ||
passage of the ordinance and that the base year shall be the year of | ||
passage of the ordinance or some year in the future; | ||
(3) assign a name to the zone for identification, with | ||
the first zone designated by a municipality designated as | ||
"Transportation Reinvestment Zone Number One, (City or Town, as | ||
applicable) of (name of municipality)," and subsequently | ||
designated zones assigned names in the same form, numbered | ||
consecutively in the order of their designation; | ||
(4) designate the base year for purposes of | ||
establishing the tax increment base of the municipality; | ||
(5) establish a [ |
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for the zone; and | ||
(6) [ |
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transportation project will cultivate the improvement, | ||
development, or redevelopment of the zone. | ||
(h) From taxes collected on property in a zone, the | ||
municipality shall pay into the tax increment account for the zone | ||
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municipality, less any amount allocated under previous agreements, | ||
including agreements under Chapter 380, Local Government Code, or | ||
Chapter 311, Tax Code. | ||
(i) All or the portion specified by the municipality of the | ||
money deposited to a tax increment account must be used to fund the | ||
transportation project for which the zone was designated, as well | ||
as aesthetic improvements within the zone. Any remaining money | ||
deposited to the tax increment account may be used for other | ||
purposes as determined by the municipality [ |
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(i-1) The governing body of a municipality may contract with | ||
a public or private entity to develop, redevelop, or improve a | ||
transportation project in a transportation reinvestment zone and | ||
may pledge and assign all or a specified amount of money in the tax | ||
increment account to that entity. After a pledge or assignment is | ||
made, if the entity that received the pledge or assignment has | ||
itself pledged or assigned that amount to secure bonds or other | ||
obligations issued to obtain funding for the transportation | ||
project, the governing body of the municipality may not rescind its | ||
pledge or assignment until the bonds or other obligations secured | ||
by the pledge or assignment have been paid or discharged. | ||
(i-2) To accommodate changes in the limits of the project | ||
for which a reinvestment zone was designated, the boundaries of a | ||
zone may be amended at any time, except that property may not be | ||
removed or excluded from a designated zone if any part of the tax | ||
increment account has been assigned or pledged directly by the | ||
municipality or through another entity to secure bonds or other | ||
obligations issued to obtain funding of the project, and property | ||
may not be added to a designated zone unless the governing body of | ||
the municipality complies with Subsections (e) and (g). | ||
(j) Except as provided by Subsections (i-1) and | ||
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December 31 of the year in which the municipality completes | ||
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the pledge or assignment of all or a portion of money deposited to a | ||
tax increment account or the repayment of money owed under an [ |
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agreement for development, redevelopment, or improvement of the | ||
project for [ |
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zone was designated. | ||
(k) A transportation reinvestment zone terminates on | ||
December 31 of the 10th year after the year the zone was designated, | ||
if before that date the municipality has not entered into a contract | ||
described in Subsection (i-1) or otherwise not used the zone for the | ||
purpose for which it was designated. | ||
(l) Any surplus remaining in a tax increment account on | ||
termination of a zone may be used for other purposes as determined | ||
by [ |
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SECTION 3. The heading to Section 222.107, Transportation | ||
Code, is amended to read as follows: | ||
Sec. 222.107. COUNTY TRANSPORTATION REINVESTMENT ZONES[ |
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SECTION 4. Section 222.107, Transportation Code, is amended | ||
by amending Subsections (b), (c), (e), (f), (h), (i), (k), and (l) | ||
and adding Subsections (h-1) and (k-1) to read as follows: | ||
(b) This section applies only to a county in which a | ||
transportation project is to be developed [ |
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(c) The commissioners court of the county, after | ||
determining that an area is unproductive and underdeveloped and | ||
that action under this section would further the purposes described | ||
by Section 222.105, by order or resolution may designate a | ||
contiguous geographic area in the jurisdiction of the county to be a | ||
transportation reinvestment zone to promote a transportation | ||
project [ |
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valorem taxes or granting other relief from taxes imposed by the | ||
county on real property located in the zone. | ||
(e) Not later than the 30th day before the date the | ||
commissioners court proposes to designate an area as a | ||
transportation reinvestment zone under this section, the | ||
commissioners court must hold a public hearing on the creation of | ||
the zone, its benefits to the county and to property in the proposed | ||
zone, and the abatement of ad valorem taxes or the grant of other | ||
relief from ad valorem taxes imposed by the county on real property | ||
located in the zone. At the hearing an interested person may speak | ||
for or against the designation of the zone, its boundaries, or the | ||
abatement of or the relief from county taxes on real property in the | ||
zone. Not later than the seventh day before the date of the | ||
hearing, notice of the hearing and the intent to create a zone must | ||
be published in a newspaper having general circulation in the | ||
county. | ||
(f) The order or resolution designating an area as a | ||
transportation reinvestment zone must: | ||
(1) describe the boundaries of the zone with | ||
sufficient definiteness to identify with ordinary and reasonable | ||
certainty the territory included in the zone; | ||
(2) provide that the zone takes effect immediately on | ||
adoption of the order or resolution and that the base year shall be | ||
the year of passage of the order or resolution or some year in the | ||
future; [ |
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(3) assign a name to the zone for identification, with | ||
the first zone designated by a county designated as "Transportation | ||
Reinvestment Zone Number One, County of (name of county)," and | ||
subsequently designated zones assigned names in the same form | ||
numbered consecutively in the order of their designation; and | ||
(4) designate the base year for purposes of | ||
establishing the tax increment base of the county. | ||
(h) The commissioners court by order or resolution may enter | ||
into an agreement with the owner of any real property located in the | ||
transportation reinvestment zone to abate all or a portion of the ad | ||
valorem taxes or to grant other relief from the taxes imposed by the | ||
county on the owner's property in an amount not to exceed the amount | ||
calculated under Subsection (a)(1) for that year. All abatements | ||
or other relief granted by the commissioners court in a | ||
transportation reinvestment zone must be equal in rate. In the | ||
alternative, the commissioners court by order or resolution may | ||
elect to abate a portion of the ad valorem taxes or otherwise grant | ||
relief from the taxes imposed by the county on all real property | ||
located in the zone. In any ad valorem tax year, the total amount of | ||
the taxes abated or the total amount of relief granted under this | ||
section may not exceed the amount calculated under Subsection | ||
(a)(1) for that year, less any amounts allocated under previous | ||
agreements, including agreements under Chapter 381, Local | ||
Government Code, or Chapter 312, Tax Code. | ||
(h-1) To further the development of the transportation | ||
project for which the transportation reinvestment zone was | ||
designated, a county may assess all or part of the cost of the | ||
transportation project against property within the zone. The | ||
assessment against each property in the zone may be levied and | ||
payable in installments in the same manner as provided by Sections | ||
372.016-372.018, Local Government Code, provided that the | ||
installments do not exceed the total amount of the tax abatement or | ||
other relief granted under Subsection (h). The county may elect to | ||
adopt and apply the provisions of Sections 372.015-372.020 and | ||
372.023, Local Government Code, to the assessment of costs and | ||
Sections 372.024-372.030, Local Government Code, to the issuance of | ||
bonds by the county to pay the cost of a transportation project. | ||
The commissioners court of the county may contract with a public or | ||
private entity to develop, redevelop, or improve a transportation | ||
project in the transportation reinvestment zone, including | ||
aesthetic improvements, and may pledge and assign to that entity | ||
all or a specified amount of the revenue the county receives from | ||
installment payments of the assessments for the payment of the | ||
costs of that transportation project. After a pledge or assignment | ||
is made, if the entity that received the pledge or assignment has | ||
itself pledged or assigned that amount to secure bonds or other | ||
obligations issued to obtain funding for the transportation | ||
project, the commissioners court of the county may not rescind its | ||
pledge or assignment until the bonds or other obligations secured | ||
by the pledge or assignment have been paid or discharged. Any | ||
amount received from installment payments of the assessments not | ||
pledged or assigned in connection with the transportation project | ||
may be used for other purposes associated with the transportation | ||
project or in the zone. | ||
(i) In the alternative, to [ |
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developing a transportation project [ |
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utility district may be formed under that chapter that has the same | ||
boundaries as a transportation reinvestment zone created under this | ||
section. | ||
(k) A road utility district formed as provided by Subsection | ||
(i) may enter into an agreement [ |
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considered to be an operating expense of the district. Any taxes | ||
collected by the district that are not paid for this purpose may be | ||
used for any district purpose. | ||
(k-1) To accommodate changes in the limits of the project | ||
for which a reinvestment zone was designated, the boundaries of a | ||
zone may be amended at any time, except that property may not be | ||
removed or excluded from a designated zone if any part of the | ||
assessment has been assigned or pledged directly by the county or | ||
through another entity to secure bonds or other obligations issued | ||
to obtain funding of the project, and property may not be added to a | ||
designated zone unless the commissioners court of the county | ||
complies with Subsections (e) and (f). | ||
(l) Except as provided by Subsection (m), a tax abatement | ||
agreement entered into under Subsection (h), or an order or | ||
resolution on the abatement of taxes or the grant of relief from | ||
taxes under that subsection, terminates on December 31 of the year | ||
in which the county completes any contractual requirement that | ||
included the pledge or assignment of assessments [ |
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collected under this section. | ||
SECTION 5. Subchapter E, Chapter 222, Transportation Code, | ||
is amended by adding Sections 222.108, 222.109, and 222.110 to read | ||
as follows: | ||
Sec. 222.108. TRANSPORTATION REINVESTMENT ZONES FOR OTHER | ||
TRANSPORTATION PROJECTS. (a) Notwithstanding the requirement in | ||
Sections 222.106(b) and 222.107(b) that a transportation | ||
reinvestment zone be established in connection with a project under | ||
Section 222.104, a municipality or county may establish a | ||
transportation reinvestment zone for any transportation project. | ||
If all or part of the transportation project is subject to oversight | ||
by the department, at the option of the governing body of the | ||
municipality or county, the department, to the extent permitted by | ||
law, shall delegate full responsibility for the development, | ||
design, letting of bids, and construction of the project, including | ||
project inspection, to the municipality or county. After assuming | ||
responsibility for a project under this subsection, a municipality | ||
or county shall enter into an agreement with the department that | ||
prescribes: | ||
(1) the development process; | ||
(2) the roles and responsibilities of the parties; and | ||
(3) the timelines for any required reviews or | ||
approvals. | ||
(b) Any portion of a transportation project developed under | ||
Subsection (a) that is on the state highway system or is located in | ||
the state highway right-of-way must comply with applicable state | ||
and federal requirements and criteria for project development, | ||
design, and construction, unless the department grants an exception | ||
to the municipality or county. | ||
(c) The development, design, and construction plans and | ||
specifications for the portions of a project described by | ||
Subsection (b) must be reviewed and approved by the department | ||
under the agreement entered into under Subsection (a). | ||
(d) In this section, "transportation project" has the | ||
meaning assigned by Section 370.003. | ||
Sec. 222.109. REDUCTION PROHIBITED. (a) A municipality or | ||
county may not be penalized with a reduction in traditional | ||
transportation funding because of the designation and use of a | ||
transportation reinvestment zone under this chapter. Any funding | ||
from the department committed to a project before the date that a | ||
transportation reinvestment zone is designated may not be reduced | ||
because the transportation reinvestment zone is designated in | ||
connection with that project. | ||
(b) The department may not reduce any allocation of | ||
traditional transportation funding to any of its districts because | ||
a district contains a municipality or county that contains a | ||
transportation reinvestment zone designated under this chapter. | ||
Sec. 222.110. SALES TAX INCREMENT. (a) In this section, | ||
"sales tax base" for a transportation reinvestment zone means the | ||
amount of sales and use taxes imposed by a municipality under | ||
Section 321.101(a), Tax Code, or by a county under Chapter 323, Tax | ||
Code, as applicable, attributable to the zone for the year in which | ||
the zone was designated under this chapter. | ||
(b) The governing body of a municipality or county may | ||
determine, in an ordinance or order designating an area as a | ||
transportation reinvestment zone or in an ordinance or order | ||
adopted subsequent to the designation of a zone, the portion or | ||
amount of tax increment generated from the sales and use taxes | ||
imposed by a municipality under Section 321.101(a), Tax Code, or by | ||
a county under Chapter 323, Tax Code, attributable to the zone, | ||
above the sales tax base, to be used as provided by Subsection (e). | ||
Nothing in this section requires a municipality or county to | ||
contribute sales tax increment under this subsection. | ||
(c) A county that designates a portion or amount of sales | ||
tax increment under Subsection (b) must establish a tax increment | ||
account. A municipality or county shall deposit the designated | ||
portion or amount of tax increment under Subsection (b) to the | ||
entity's respective tax increment account. | ||
(d) Before pledging or otherwise committing money in the tax | ||
increment account under Subsection (c), the governing body of a | ||
municipality or county may enter into an agreement, under | ||
Subchapter E, Chapter 271, Local Government Code, to authorize and | ||
direct the comptroller to: | ||
(1) withhold from any payment to which the | ||
municipality or county may be entitled the amount of the payment | ||
into the tax increment account under Subsection (b); | ||
(2) deposit that amount into the tax increment | ||
account; and | ||
(3) continue withholding and making additional | ||
payments into the tax increment account until an amount sufficient | ||
to satisfy the amount due has been met. | ||
(e) The sales and use taxes to be deposited into the tax | ||
increment account under this section may be disbursed from the | ||
account only to: | ||
(1) pay for projects authorized under Section 222.104, | ||
including the repayment of amounts owed under an agreement entered | ||
into under that section; and | ||
(2) notwithstanding Sections 321.506 and 323.505, Tax | ||
Code, satisfy claims of holders of tax increment bonds, notes, or | ||
other obligations issued or incurred for projects authorized under | ||
Section 222.104. | ||
(f) The amount deposited by a county to a tax increment | ||
account under this section is not considered to be sales and use tax | ||
revenue for the purpose of property tax reduction and computation | ||
of the county tax rate under Section 26.041, Tax Code. | ||
(g) Not later than the 30th day before the date the | ||
governing body of a municipality or county proposes to designate a | ||
portion or amount of sales tax increment under Subsection (b), the | ||
governing body shall hold a public hearing on the designation of the | ||
sales tax increment. At the hearing an interested person may speak | ||
for or against the designation of the sales tax increment. Not | ||
later than the seventh day before the date of the hearing, notice of | ||
the hearing must be published in a newspaper having general | ||
circulation in the county or municipality, as appropriate. | ||
(h) The hearing required under Subsection (g) may be held in | ||
conjunction with a hearing held under Section 222.106(e) or | ||
222.107(e) if the ordinance or order designating an area as a | ||
transportation reinvestment zone under Section 222.106 or 222.107 | ||
also designates a sales tax increment under Subsection (b). | ||
SECTION 6. Sections 222.106(h), (i), (j), (k), and (l) and | ||
222.107(h), (i), (k), and (l), Transportation Code, as amended by | ||
this Act, and Sections 222.106(i-1) and (i-2), 222.107(h-1) and | ||
(k-1), 222.108, and 222.109, Transportation Code, as added by this | ||
Act, apply to a transportation reinvestment zone that is governed | ||
by those sections designated before the effective date of this Act. | ||
SECTION 7. This Act takes effect September 1, 2011. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 563 was passed by the House on March | ||
31, 2011, by the following vote: Yeas 138, Nays 5, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 563 on May 16, 2011, by the following vote: Yeas 143, Nays 0, 2 | ||
present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 563 was passed by the Senate, with | ||
amendments, on May 12, 2011, by the following vote: Yeas 31, Nays | ||
0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |