Bill Text: TX SB1433 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to tax increment financing.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-18 - Referred to Natural Resources & Economic Development [SB1433 Detail]

Download: Texas-2021-SB1433-Introduced.html

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87R6223 CJC-D
By: Bettencourt S.B. No. 1433

A BILL TO BE ENTITLED
AN ACT
relating to tax increment financing.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 311.004, Tax Code, is amended by adding
Subsection (d) to read as follows:
(d) For purposes of Subsection (a)(4), an order or ordinance
designating a reinvestment zone that is adopted on or after
September 1, 2021, must provide that the zone terminates not later
than the 10th anniversary of the date on which the ordinance or
order designating the zone is adopted.
SECTION 2. Section 311.006(a), Tax Code, is amended to read
as follows:
(a) A municipality may not designate a reinvestment zone if:
(1) more than 10 [30] percent of the property in the
proposed zone, excluding property that is publicly owned, is used
for residential purposes; or
(2) the total appraised value of taxable real property
in the proposed zone and in existing reinvestment zones exceeds 10
[:
[(A) 25] percent of the total appraised value of
taxable real property in the municipality and in the industrial
districts created by the municipality[, if the municipality has a
population of 100,000 or more; or
[(B) 50 percent of the total appraised value of
taxable real property in the municipality and in the industrial
districts created by the municipality, if the municipality has a
population of less than 100,000].
SECTION 3. The heading to Section 311.007, Tax Code, is
amended to read as follows:
Sec. 311.007. CHANGING BOUNDARIES OR TERM OF EXISTING ZONE;
LIMITATION ON EXTENSION OF TERM.
SECTION 4. Section 311.007, Tax Code, is amended by
amending Subsection (c) and adding Subsections (d) and (e) to read
as follows:
(c) Subject to Subsections (d) and (e), the [The] governing
body of the municipality or county that designated a reinvestment
zone by ordinance or resolution or by order or resolution,
respectively, may extend the term of all or a portion of the zone
after notice and hearing in the manner provided for the designation
of the zone. A taxing unit other than the municipality or county
that designated the zone is not required to participate in the zone
or portion of the zone for the extended term unless the taxing unit
enters into a written agreement to do so.
(d) Except as provided by Subsection (e), the term of all or
any portion of a reinvestment zone may not be extended beyond the
10th anniversary of the date on which the ordinance or order
designating the zone is adopted.
(e) This subsection applies only to a reinvestment zone
designated before September 1, 2021, the term of which extends
beyond the period prescribed by Subsection (d). A reinvestment
zone to which this subsection applies must terminate on the earlier
of:
(1) the termination date expressed in the ordinance or
order designating the zone or an earlier termination date
designated by an ordinance, order, or resolution adopted under
Subsection (c); or
(2) the date on which all project costs, tax increment
bonds and interest on those bonds, and other obligations of the zone
have been paid in full.
SECTION 5. Chapter 311, Tax Code, is amended by adding
Section 311.0111 to read as follows:
Sec. 311.0111. RESTRICTION ON BOARD'S AUTHORITY TO AMEND
PLAN. The board of directors of a reinvestment zone may not adopt,
and the governing body of a municipality may not approve, an
amendment to the project plan if:
(1) the median appraised value of taxable real
property located in the zone equals or exceeds the median appraised
value of taxable real property that is located outside the
boundaries of the zone and that is within the designating
municipality's corporate boundaries and extraterritorial
jurisdiction; and
(2) the amendment is required under Section 311.011(e)
to be approved by ordinance adopted after a public hearing that
satisfies the procedural requirements of Sections 311.003(c) and
(d).
SECTION 6. Sections 311.015(a) and (c), Tax Code, are
amended to read as follows:
(a) Subject to Subsection (c), a [A] municipality
designating a reinvestment zone may issue tax increment bonds or
notes, the proceeds of which may be used to make payments pursuant
to agreements made under Section 311.010(b), to pay project costs
for the reinvestment zone on behalf of which the bonds or notes were
issued, or to satisfy claims of holders of the bonds or notes. The
municipality may issue refunding bonds or notes for the payment or
retirement of tax increment bonds or notes previously issued by it.
(c) Tax increment bonds and notes are issued by ordinance of
the municipality after the [without any additional] approval of the
qualified voters of the municipality as provided by Section
311.0151 [other than that of the attorney general].
SECTION 7. Chapter 311, Tax Code, is amended by adding
Section 311.0151 to read as follows:
Sec. 311.0151. BOND ELECTION REQUIRED. (a) A municipality
may issue tax increment bonds and notes under Section 311.015 as
provided by this section.
(b) A municipality may not authorize tax increment bonds and
notes unless a majority of the municipality's qualified voters who
vote at an election ordered for that purpose approve the issuance of
the bonds and notes.
(c) The municipality may order an election on the tax
increment bonds and notes. The order must contain the same
information contained in the notice of the election.
(d) The municipality shall publish notice of the election at
least once in a newspaper of general circulation in the
municipality. The notice must be published not later than the 31st
day before election day.
(e) In addition to the contents of the notice required by
the Election Code, the notice must state:
(1) the amount of bonds or notes to be authorized; and
(2) the maximum maturity of the bonds or notes.
SECTION 8. (a) Section 311.006(a), Tax Code, as amended by
this Act, applies only to a reinvestment zone designated on or after
the effective date of this Act. A reinvestment zone designated
before the effective date of this Act is governed by the law in
effect on the date the zone was designated, and the former law is
continued in effect for that purpose.
(b) Section 311.0111, Tax Code, as added by this Act,
applies only to an amendment to a reinvestment zone project plan
proposed on or after the effective date of this Act. An amendment
proposed before the effective date of this Act is governed by the
law in effect on the date the amendment was proposed, and the former
law is continued in effect for that purpose.
(c) Section 311.015, Tax Code, as amended by this Act, and
Section 311.0151, Tax Code, as added by this Act, apply only to
bonds or notes issued on or after the effective date of this Act.
Bonds or notes issued before the effective date of this Act are
governed by the law in effect on the date the bonds or notes were
issued, and the former law is continued in effect for that purpose.
SECTION 9. This Act takes effect September 1, 2021.