Bill Text: TX HB5311 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation and operation of a development zone by and the tax revenue received by The Woodlands Township; providing authority to issue bonds; providing authority to impose assessments and taxes.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-06-09 - Effective on 9/1/23 [HB5311 Detail]

Download: Texas-2023-HB5311-Comm_Sub.html
 
 
  By: Toth (Senate Sponsor - Creighton) H.B. No. 5311
         (In the Senate - Received from the House May 8, 2023;
  May 10, 2023, read first time and referred to Committee on Natural
  Resources & Economic Development; May 15, 2023, reported
  adversely, with favorable Committee Substitute by the following
  vote:  Yeas 5, Nays 1, one present not voting; May 15, 2023, sent to
  printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 5311 By:  Zaffirini
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation and operation of a development zone by and
  the tax revenue received by The Woodlands Township; providing
  authority to issue bonds; providing authority to impose assessments
  and taxes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 7, Chapter 289, Acts of the 73rd
  Legislature, Regular Session, 1993, is amended by adding Subsection
  (gg) to read as follows:
         (gg)  The district shall be treated the same in all respects
  as an incorporated municipality for the purposes of Section
  183.051, Tax Code.
         SECTION 2.  Section 11C, Chapter 289, Acts of the 73rd
  Legislature, Regular Session, 1993, is amended by amending
  Subsections (b), (f), (l), (p), and (q) and adding Subsections
  (b-1) and (b-2) to read as follows:
         (b)  The board, on its own motion or on receipt of a petition
  signed by the owners of all real property in a defined area of the
  district, by resolution may create, designate, describe, assign a
  name to, and appoint the governing body for a development zone in
  the district:
               (1)  to promote initial development or substantial
  redevelopment of the area; or
               (2)  if the area to be designated as the development
  zone is composed solely of one or more hotels, to undertake one or
  more projects to provide supplemental advertising, promotion, or
  business recruitment services for the area to increase hotel
  activity[, if the board finds that the creation of the zone will
  further the public purposes of:
               [(1)  the development and diversification of the
  economy of the district and the state;
               [(2)  the elimination of unemployment or
  underemployment in the district and the state;
               [(3)  the development or expansion of transportation or
  commerce in the district and the state; or
               [(4)  the promotion and stimulation of business,
  commercial, and economic activity in the district and the state].
         (b-1)  The board may create a development zone under
  Subsection (b) of this section if the board finds that the creation
  of the zone will further the public purposes of:
               (1)  the development and diversification of the economy
  of the district and the state;
               (2)  the elimination of unemployment or
  underemployment in the district and the state;
               (3)  the development or expansion of transportation or
  commerce in the district and the state; or
               (4)  the promotion and stimulation of business,
  commercial, and economic activity in the district and the state.
         (b-2)  A development zone composed solely of one or more
  hotels may fund or provide services for the purposes for which the
  zone was created.
         (f)  A resolution designating an area as a development zone
  must:
               (1)  describe the boundaries of the zone sufficiently
  to identify with reasonable certainty the territory included;
               (2)  provide an effective date for the creation of the
  zone;
               (3)  provide a date for termination of the zone;
               (4)  assign a name to the zone for identification;
               (5)  adopt a preliminary financing plan for the zone;
               (6)  establish a tax increment fund or project fund for
  the zone; and
               (7)  appoint the governing body for the zone or
  authorize the board to serve ex officio as the governing body of the
  zone.
         (l)  The board and the governing body each may enter into an
  agreement considered necessary or convenient to implement a project
  plan and development zone financing plan and achieve their
  purposes, including, for a development zone composed solely of one
  or more hotels, an agreement with a convention and visitors bureau
  within or adjacent to the district.  An agreement may provide for
  the regulation or restriction of the use of land by imposing
  conditions, restrictions, or covenants that run with the land.  An
  agreement may dedicate revenue from the tax increment fund or
  project fund to pay project costs and may provide that a restriction
  adopted by the governing body continues in effect after the
  termination of the development zone.  The district and the
  development zone may agree that the district will provide
  administration, management, investment, accounting, and other
  services for the zone in consideration for the benefits received by
  the district through the implementation of the project plan for the
  zone.
         (p)  Sections 311.002 and 311.014 through 311.017, Tax Code,
  apply to the district, except that for purposes of this subsection:
               (1)  a reference in those sections to a municipality
  means the district and the development zone;
               (2)  a reference in those sections to an ordinance
  means an order;
               (3)  a reference in those sections to a reinvestment
  zone means a development zone;
               (4)  a reference in those sections to an agreement made
  under Subsection (b), Section 311.010, Tax Code, means an agreement
  made under Subsection (l) of this section;
               (5)  "development" means initial development;
               (6)  "redevelopment" means substantial redevelopment;
               (7)  Section 311.016, Tax Code, applies only if ad
  valorem taxes are used, in whole or in part, in payment of project
  costs of a development zone; [and]
               (8)  a development zone created without a duration or
  date of termination may be dissolved by a two-thirds vote of the
  board of directors of the district or of the governing body of a
  municipality or other form of local government, other than the
  development zone, succeeding to the principal assets, powers,
  functions, and liabilities of the district, but only if:
                     (A)  the development zone has no outstanding
  indebtedness or other obligations; or
                     (B)  the assets, powers, functions, and
  liabilities, and any outstanding indebtedness or obligations, of
  the development zone are expressly assumed by the district or the
  succeeding municipality or local government; and
               (9)  a development zone composed solely of one or more
  hotels must be dissolved by the board of directors of the district
  on receipt of a petition for dissolution of the development zone
  signed by the owners of at least 60 percent of the assessed value of
  the real property in the development zone and the district must
  expressly assume the assets, powers, functions, and liabilities,
  and any outstanding indebtedness or obligations, of the development
  zone.
         (q)  Upon the creation and organization of a development zone
  over the territory of one or more existing development zones, and
  upon the imposition or assessment by the governing body of an ad
  valorem tax or limited sales and use tax for the development zone,
  any [the] existing development zones that impose or assess an ad
  valorem or sales and use tax are dissolved and abolished and all
  assets, properties, indebtedness, obligations, and liabilities of
  the existing development zones transfer to and are assumed by the
  newly created and organized development zone.
         SECTION 3.  Section 7(gg), Chapter 289, Acts of the 73rd
  Legislature, Regular Session, 1993, as added by this Act, applies
  only to taxes remitted to the comptroller of public accounts for a
  calendar quarter beginning on or after October 1, 2023. The
  comptroller shall make the first transfer required by that
  subsection not later than January 31, 2024.
         SECTION 4.  (a) The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time.
         (d)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act have been
  fulfilled and accomplished.
         SECTION 5.  This Act takes effect September 1, 2023.
 
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