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  H.B. No. 2853
 
 
 
 
AN ACT
  relating to tax increment financing.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 311.002(1), Tax Code, is amended to read
  as follows:
               (1)  "Project costs" means the expenditures made or
  estimated to be made and monetary obligations incurred or estimated
  to be incurred by the municipality or county designating
  [establishing] a reinvestment zone that are listed in the project
  plan as costs of public works, [or] public improvements, programs,
  or other projects benefiting [in] the zone, plus other costs
  incidental to those expenditures and obligations. "Project costs"
  include:
                     (A)  capital costs, including the actual costs of
  the acquisition and construction of public works, public
  improvements, new buildings, structures, and fixtures; the actual
  costs of the acquisition, demolition, alteration, remodeling,
  repair, or reconstruction of existing buildings, structures, and
  fixtures; the actual costs of the remediation of conditions that
  contaminate public or private land or buildings; the actual costs
  of the preservation of the facade of a public or private building;
  the actual costs of the demolition of public or private buildings;
  and the actual costs of the acquisition of land and equipment and
  the clearing and grading of land;
                     (B)  financing costs, including all interest paid
  to holders of evidences of indebtedness or other obligations issued
  to pay for project costs and any premium paid over the principal
  amount of the obligations because of the redemption of the
  obligations before maturity;
                     (C)  real property assembly costs;
                     (D)  professional service costs, including those
  incurred for architectural, planning, engineering, and legal
  advice and services;
                     (E)  imputed administrative costs, including
  reasonable charges for the time spent by employees of the
  municipality or county in connection with the implementation of a
  project plan;
                     (F)  relocation costs;
                     (G)  organizational costs, including the costs of
  conducting environmental impact studies or other studies, the cost
  of publicizing the creation of the zone, and the cost of
  implementing the project plan for the zone;
                     (H)  interest before and during construction and
  for one year after completion of construction, whether or not
  capitalized;
                     (I)  the cost of operating the reinvestment zone
  and project facilities;
                     (J)  the amount of any contributions made by the
  municipality or county from general revenue for the implementation
  of the project plan; [and]
                     (K)  the costs of school buildings, other
  educational buildings, other educational facilities, or other
  buildings owned by or on behalf of a school district, community
  college district, or other political subdivision of this state; and
                     (L)  payments made at the discretion of the
  governing body of the municipality or county that the governing
  body finds necessary or convenient to the creation of the zone or to
  the implementation of the project plans for the zone.
         SECTION 2.  Section 311.003(b), Tax Code, is amended to read
  as follows:
         (b)  Before adopting an ordinance or order designating
  [providing for] a reinvestment zone, the governing body of the
  municipality or county must prepare a preliminary reinvestment zone
  financing plan. [As soon as the plan is completed, a copy of the
  plan must be sent to the governing body of each taxing unit that
  levies taxes on real property in the proposed zone.]
         SECTION 3.  Section 311.005(a), Tax Code, is amended to read
  as follows:
         (a)  To be designated as a reinvestment zone, an area must:
               (1)  substantially arrest or impair the sound growth of
  the municipality or county designating [creating] the zone, retard
  the provision of housing accommodations, or constitute an economic
  or social liability and be a menace to the public health, safety,
  morals, or welfare in its present condition and use because of the
  presence of:
                     (A)  a substantial number of substandard, slum,
  deteriorated, or deteriorating structures;
                     (B)  the predominance of defective or inadequate
  sidewalk or street layout;
                     (C)  faulty lot layout in relation to size,
  adequacy, accessibility, or usefulness;
                     (D)  unsanitary or unsafe conditions;
                     (E)  the deterioration of site or other
  improvements;
                     (F)  tax or special assessment delinquency
  exceeding the fair value of the land;
                     (G)  defective or unusual conditions of title;
                     (H)  conditions that endanger life or property by
  fire or other cause; or
                     (I)  structures, other than single-family
  residential structures, less than 10 percent of the square footage
  of which has been used for commercial, industrial, or residential
  purposes during the preceding 12 years, if the municipality has a
  population of 100,000 or more;
               (2)  be predominantly open or undeveloped and, because
  of obsolete platting, deterioration of structures or site
  improvements, or other factors, substantially impair or arrest the
  sound growth of the municipality or county;
               (3)  be in a federally assisted new community located
  in the municipality or county or in an area immediately adjacent to
  a federally assisted new community; or
               (4)  be an area described in a petition requesting that
  the area be designated as a reinvestment zone, if the petition is
  submitted to the governing body of the municipality or county by the
  owners of property constituting at least 50 percent of the
  appraised value of the property in the area according to the most
  recent certified appraisal roll for the county in which the area is
  located.
         SECTION 4.  Sections 311.006(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  A municipality may not designate [create] a
  reinvestment zone if:
               (1)  more than 30 [10] 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:
                     (A)  25 [20] 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 [is the county seat of a county:
                           [(i)     that is adjacent to a county with a
  population of 3.3 million or more; and
                           [(ii)     in which a planned community is
  located that has 20,000 or more acres of land, that was originally
  established under the Urban Growth and New Community Development
  Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to
  restrictive covenants containing ad valorem or annual variable
  budget-based assessments on real property]; or
                     (B)  50 [15] percent of the total appraised value
  of taxable real property in the municipality and in the industrial
  districts created by the municipality, if [Paragraph (A) does not
  apply to] the municipality has a population of less than 100,000.
         (b)  A municipality may not change the boundaries of an
  existing reinvestment zone to include property in excess of the
  restrictions on composition of a zone described by Subsection (a)
  [more than 10 percent of which, excluding property dedicated to
  public use, is used for residential purposes or to include more than
  15 percent of the total appraised value of taxable real property in
  the municipality and in the industrial districts created by the
  municipality].
         SECTION 5.  The heading to Section 311.007, Tax Code, is
  amended to read as follows:
         Sec. 311.007.  CHANGING BOUNDARIES OR TERM OF EXISTING ZONE.
         SECTION 6.  Section 311.007, Tax Code, is amended by adding
  Subsection (c) to read as follows:
         (c)  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.
         SECTION 7.  Section 311.008(b), Tax Code, is amended to read
  as follows:
         (b)  A municipality or county may exercise any power
  necessary and convenient to carry out this chapter, including the
  power to:
               (1)  cause project plans to be prepared, approve and
  implement the plans, and otherwise achieve the purposes of the
  plan;
               (2)  acquire real property by purchase, condemnation,
  or other means [to implement project plans] and sell real [that]
  property, on the terms and conditions and in the manner it considers
  advisable, to implement project plans;
               (3)  enter into agreements, including agreements with
  bondholders, determined by the governing body of the municipality
  or county to be necessary or convenient to implement project plans
  and achieve their purposes, which agreements may include
  conditions, restrictions, or covenants that run with the land or
  that by other means regulate or restrict the use of land; and
               (4)  consistent with the project plan for the zone:
                     (A)  acquire blighted, deteriorated,
  deteriorating, undeveloped, or inappropriately developed real
  property or other property in a blighted area or in a federally
  assisted new community in the zone for the preservation or
  restoration of historic sites, beautification or conservation, the
  provision of public works or public facilities, or other public
  purposes;
                     (B)  acquire, construct, reconstruct, or install
  public works, facilities, or sites or other public improvements,
  including utilities, streets, street lights, water and sewer
  facilities, pedestrian malls and walkways, parks, flood and
  drainage facilities, or parking facilities, but not including
  educational facilities; or
                     (C)  in a reinvestment zone created on or before
  September 1, 1999, acquire, construct, or reconstruct educational
  facilities in the municipality.
         SECTION 8.  Sections 311.009(a), (b), and (e), Tax Code, are
  amended to read as follows:
         (a)  Except as provided by Subsection (b), the board of
  directors of a reinvestment zone consists of at least five and not
  more than 15 members, unless more than 15 members are required to
  satisfy the requirements of this subsection. Each taxing unit other
  than the municipality or county that designated [created] the zone
  that levies taxes on real property in the zone may appoint one
  member of the board if the taxing unit has approved the payment of
  all or part of the tax increment produced by the unit into the tax
  increment fund for the zone. A unit may waive its right to appoint a
  director. The governing body of the municipality or county that
  designated [created] the zone may appoint not more than 10
  directors to the board; except that if there are fewer than five
  directors appointed by taxing units other than the municipality or
  county, the governing body of the municipality or county may
  appoint more than 10 members as long as the total membership of the
  board does not exceed 15.
         (b)  If the zone was designated under Section 311.005(a)(4),
  the governing body of the municipality or county that designated
  the zone may provide that the board of directors of the zone
  consists of nine members appointed as provided by this subsection,
  unless more than nine members are required to comply with this
  subsection.  Each taxing unit [school district, county, or
  municipality], other than the municipality or county that
  designated [created] the zone, that levies taxes on real property
  in the zone may appoint one member of the board if the taxing unit
  [school district, county, or municipality] has approved the payment
  of all or part of the tax increment produced by the unit into the tax
  increment fund for the zone. The member of the state senate in whose
  district the zone is located is a member of the board, and the
  member of the state house of representatives in whose district the
  zone is located is a member of the board, except that either may
  designate another individual to serve in the member's place at the
  pleasure of the member. If the zone is located in more than one
  senate or house district, this subsection applies only to the
  senator or representative in whose district a larger portion of the
  zone is located than any other senate or house district, as
  applicable. If fewer than seven taxing units, other than the
  municipality or county that designated the zone, are eligible to
  appoint members of the board of directors of the zone, the
  municipality or county may appoint a number of members of the board
  such that the board comprises nine members. If at least seven taxing
  units, other than the municipality or county that designated the
  zone, are eligible to appoint members of the board of directors of
  the zone, the municipality or county may appoint one member. [The
  remaining members of the board are appointed by the governing body
  of the municipality or county that created the zone.]
         (e)  To be eligible for appointment to the board by the
  governing body of the municipality or county that designated
  [created] the zone, an individual must be at least 18 years of age
  and:
               (1)  if the board is covered by Subsection (a):
                     (A)  be a resident of the county in which the zone
  is located or a county adjacent to that county [qualified voter of
  the municipality or county, as applicable]; or
                     (B)  [be at least 18 years of age and] own real
  property in the zone, whether or not the individual resides in the
  [municipality or] county in which the zone is located or a county
  adjacent to that county; or
               (2)  if the board is covered by Subsection (b), [:
                     [(A)  be at least 18 years of age; and
                     [(B)]  own real property in the zone or be an
  employee or agent of a person that owns real property in the zone.
         SECTION 9.  Section 311.0091, Tax Code, is amended by
  amending Subsection (f) and adding Subsection (i) to read as
  follows:
         (f)  Except as provided by Subsection (i), to [To] be
  eligible for appointment to the board, an individual must:
               (1)  be a qualified voter of the municipality; or
               (2)  be at least 18 years of age and own real property
  in the zone or be an employee or agent of a person that owns real
  property in the zone.
         (i)  The eligibility criteria for appointment to the board
  specified by Subsection (f) do not apply to an individual appointed
  by a conservation and reclamation district:
               (1)  created under Section 59, Article XVI, Texas
  Constitution; and
               (2)  the jurisdiction of which covers four counties.
         SECTION 10.  Sections 311.010(g) and (h), Tax Code, are
  amended to read as follows:
         (g)  Chapter 252, Local Government Code, does not apply to a
  dedication, pledge, or other use of revenue in the tax increment
  fund for a reinvestment zone [by the board of directors of the zone
  in carrying out its powers] under Subsection (b).
         (h)  Subject to the approval of the governing body of the
  municipality or county that designated [created] the zone, the
  board of directors of a reinvestment zone, as necessary or
  convenient to implement the project plan and reinvestment zone
  financing plan and achieve their purposes, may establish and
  provide for the administration of one or more programs for the
  public purposes of developing and diversifying the economy of the
  zone, eliminating unemployment and underemployment in the zone, and
  developing or expanding transportation, business, and commercial
  activity in the zone, including programs to make grants and loans
  from the tax increment fund of the zone in an aggregate amount not
  to exceed the amount of the tax increment produced by the
  municipality and paid into the tax increment fund for the zone for
  activities that benefit the zone and stimulate business and
  commercial activity in the zone. For purposes of this subsection,
  on approval of the municipality or county, the board of directors of
  the zone has all the powers of a municipality under Chapter 380,
  Local Government Code. The approval required by this subsection may
  be granted in an ordinance, in the case of a zone designated by a
  municipality, or in an order, in the case of a zone designated by a
  county, approving a project plan or reinvestment zone financing
  plan or approving an amendment to a project plan or reinvestment
  zone financing plan.
         SECTION 11.  Section 311.011, Tax Code, is amended by
  amending Subsections (a), (b), (c), (d), and (g) and adding
  Subsection (h) to read as follows:
         (a)  The board of directors of a reinvestment zone shall
  prepare and adopt a project plan and a reinvestment zone financing
  plan for the zone and submit the plans to the governing body of the
  municipality or county that designated [created] the zone. [The
  plans must be as consistent as possible with the preliminary plans
  developed for the zone before the creation of the board.]
         (b)  The project plan must include:
               (1)  a description and map showing existing uses and
  conditions of real property in the zone and [a map showing] proposed
  [improvements to and proposed] uses of that property;
               (2)  proposed changes of zoning ordinances, the master
  plan of the municipality, building codes, other municipal
  ordinances, and subdivision rules and regulations, if any, of the
  county, if applicable;
               (3)  a list of estimated nonproject costs; and
               (4)  a statement of a method of relocating persons to be
  displaced, if any, as a result of implementing the plan.
         (c)  The reinvestment zone financing plan must include:
               (1)  a detailed list describing the estimated project
  costs of the zone, including administrative expenses;
               (2)  a statement listing the proposed kind, number, and
  location of all [proposed] public works or public improvements to
  be financed by [in] the zone;
               (3)  a finding that the plan is economically feasible
  and an economic feasibility study;
               (4)  the estimated amount of bonded indebtedness to be
  incurred;
               (5)  the estimated time when related costs or monetary
  obligations are to be incurred;
               (6)  a description of the methods of financing all
  estimated project costs and the expected sources of revenue to
  finance or pay project costs, including the percentage of tax
  increment to be derived from the property taxes of each taxing unit
  anticipated to contribute tax increment to the zone that levies
  taxes on real property in the zone;
               (7)  the current total appraised value of taxable real
  property in the zone;
               (8)  the estimated captured appraised value of the zone
  during each year of its existence; and
               (9)  the duration of the zone.
         (d)  The governing body of the municipality or county that
  designated [created] the zone must approve a project plan or
  reinvestment zone financing plan after its adoption by the board.
  The approval must be by ordinance, in the case of a municipality, or
  by order, in the case of a county, that finds that the plan is
  feasible [and conforms to the master plan, if any, of the
  municipality or to subdivision rules and regulations, if any, of
  the county].
         (g)  A [An amendment to the project plan or the reinvestment
  zone financing plan for a zone does not apply to a] school district
  that participates in a [the] zone is not required to increase the
  percentage or amount of the tax increment to be contributed by the
  school district because of an amendment to the project plan or
  reinvestment zone financing plan for the zone unless the governing
  body of the school district by official action approves the
  amendment[, if the amendment:
               [(1)     has the effect of directly or indirectly
  increasing the percentage or amount of the tax increment to be
  contributed by the school district; or
               [(2)     requires or authorizes the municipality or county
  creating the zone to issue additional tax increment bonds or
  notes].
         (h)  Unless specifically provided otherwise in the plan, all
  amounts contained in the project plan or reinvestment zone
  financing plan, including amounts of expenditures relating to
  project costs and amounts relating to participation by taxing
  units, are considered estimates and do not act as a limitation on
  the described items, but the amounts contained in the project plan
  or reinvestment zone financing plan may not vary materially from
  the estimates.  This subsection may not be construed to increase the
  amount of any reduction under Section 403.302(d)(4), Government
  Code, in the total taxable value of the property in a school
  district that participates in the zone as computed under Section
  403.302(d) of that code.
         SECTION 12.  Sections 311.012(b) and (c), Tax Code, are
  amended to read as follows:
         (b)  The captured appraised value of real property taxable by
  a taxing unit for a year is the total taxable [appraised] value of
  all real property taxable by the unit and located in a reinvestment
  zone for that year less the tax increment base of the unit.
         (c)  The tax increment base of a taxing unit is the total
  taxable [appraised] value of all real property taxable by the unit
  and located in a reinvestment zone for the year in which the zone
  was designated under this chapter. If the boundaries of a zone are
  enlarged, the tax increment base is increased by the taxable value
  of the real property added to the zone for the year in which the
  property was added. If the boundaries of a zone are reduced, the tax
  increment base is reduced by the taxable value of the real property
  removed from the zone for the year in which the property was
  originally included in the zone's boundaries. If the municipality
  that designates a zone does not levy an ad valorem tax in the year in
  which the zone is designated, the tax increment base is determined
  by the appraisal district in which the zone is located using
  assumptions regarding exemptions and other relevant information
  provided to the appraisal district by the municipality.
         SECTION 13.  Sections 311.013(f) and (l), Tax Code, are
  amended to read as follows:
         (f)  A taxing unit is not required to pay into the tax
  increment fund any of its tax increment produced from property
  located in a reinvestment zone designated under Section 311.005(a)
  or in an area added to a reinvestment zone under Section 311.007
  unless the taxing unit enters into an agreement to do so with the
  governing body of the municipality or county that designated
  [created] the zone. A taxing unit may enter into an agreement under
  this subsection at any time before or after the zone is designated
  [created] or enlarged. The agreement may include conditions for
  payment of that tax increment into the fund and must specify the
  portion of the tax increment to be paid into the fund and the years
  for which that tax increment is to be paid into the fund. In
  addition to any other terms to which the parties may agree, the
  agreement may specify the projects to which a participating taxing
  unit's tax increment will be dedicated and that the taxing unit's
  participation may be computed with respect to a base year later than
  the original base year of the zone. The agreement and the conditions
  in the agreement are binding on the taxing unit, the municipality or
  county, and the board of directors of the zone.
         (l)  The governing body of a municipality or county that
  designates an area as a reinvestment zone may determine, in the
  designating ordinance or order adopted under Section 311.003 or in
  the ordinance or order adopted under Section 311.011 approving the
  reinvestment zone financing plan for the zone, the portion of the
  tax increment produced by the municipality or county that the
  municipality or county is required to pay into the tax increment
  fund for the zone. If a municipality or county does not determine
  the portion of the tax increment produced by the municipality or
  county that the municipality or county is required to pay into the
  tax increment fund for a reinvestment zone, the municipality or
  county is required to pay into the fund for the zone the entire tax
  increment produced by the municipality or county, except as
  provided by Subsection (b)(1).
         SECTION 14.  Sections 311.015(a) and (l), Tax Code, are
  amended to read as follows:
         (a)  A municipality designating [creating] 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.
         (l)  A tax increment bond or note must mature on or before the
  date by which the final payments of tax increment into the tax
  increment fund are due [within 20 years of the date of issue].
         SECTION 15.  Section 311.016(a), Tax Code, is amended to
  read as follows:
         (a)  On or before the 150th [90th] day following the end of
  the fiscal year of the municipality or county, the governing body of
  a municipality or county shall submit to the chief executive
  officer of each taxing unit that levies property taxes on real
  property in a reinvestment zone created by the municipality or
  county a report on the status of the zone. The report must include:
               (1)  the amount and source of revenue in the tax
  increment fund established for the zone;
               (2)  the amount and purpose of expenditures from the
  fund;
               (3)  the amount of principal and interest due on
  outstanding bonded indebtedness;
               (4)  the tax increment base and current captured
  appraised value retained by the zone; and
               (5)  the captured appraised value shared by the
  municipality or county and other taxing units, the total amount of
  tax increments received, and any additional information necessary
  to demonstrate compliance with the tax increment financing plan
  adopted by the governing body of the municipality or county.
         SECTION 16.  Section 311.016(b), Tax Code, as amended by
  Chapters 977 (H.B. 1820) and 1094 (H.B. 2120), Acts of the 79th
  Legislature, Regular Session, 2005, is reenacted and amended to
  read as follows:
         (b)  The municipality or county shall send a copy of a report
  made under this section to[:
               [(1)  the attorney general; and
               [(2)]  the comptroller.
         SECTION 17.  Section 311.017(a), Tax Code, is amended to
  read as follows:
         (a)  A reinvestment zone terminates on the earlier of:
               (1)  the termination date designated in the ordinance
  or order, as applicable, designating [creating] the zone or an
  earlier or later termination date designated by an ordinance or
  order adopted under Section 311.007(c) [subsequent to the ordinance
  or order creating the zone]; or
               (2)  the date on which all project costs, tax increment
  bonds and interest on those bonds, and other obligations have been
  paid in full.
         SECTION 18.  Chapter 311, Tax Code, is amended by adding
  Section 311.021 to read as follows:
         Sec. 311.021.  ACT OR PROCEEDING PRESUMED VALID. (a) A
  governmental act or proceeding of a municipality or county, the
  board of directors of a reinvestment zone, or an entity acting under
  Section 311.010(f) relating to the designation, operation, or
  administration of a reinvestment zone or the implementation of a
  project plan or reinvestment zone financing plan under this chapter
  is conclusively presumed, as of the date it occurred, valid and to
  have occurred in accordance with all applicable statutes and rules
  if:
               (1)  the third anniversary of the effective date of the
  act or proceeding has expired; and
               (2)  a lawsuit to annul or invalidate the act or
  proceeding has not been filed on or before the later of that second
  anniversary or August 1, 2011.
         (b)  This section does not apply to:
               (1)  an act or proceeding that was void at the time it
  occurred;
               (2)  an act or proceeding that, under a statute of this
  state or the United States, was a misdemeanor or felony at the time
  the act or proceeding occurred;
               (3)  a rule that, at the time it was passed, was
  preempted by a statute of this state or the United States, including
  Section 1.06 or 109.57, Alcoholic Beverage Code; or
               (4)  a matter that on the effective date of the Act
  enacting this section:
                     (A)  is involved in litigation if the litigation
  ultimately results in the matter being held invalid by a final
  judgment of a court; or
                     (B)  has been held invalid by a final judgment of a
  court.
         SECTION 19.  Section 403.302(d), Government Code, as amended
  by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of the 81st
  Legislature, Regular Session, 2009, is reenacted and amended to
  read as follows:
         (d)  For the purposes of this section, "taxable value" means
  the market value of all taxable property less:
               (1)  the total dollar amount of any residence homestead
  exemptions lawfully granted under Section 11.13(b) or (c), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (2)  one-half of the total dollar amount of any
  residence homestead exemptions granted under Section 11.13(n), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (3)  the total dollar amount of any exemptions granted
  before May 31, 1993, within a reinvestment zone under agreements
  authorized by Chapter 312, Tax Code;
               (4)  subject to Subsection (e), the total dollar amount
  of any captured appraised value of property that:
                     (A)  is within a reinvestment zone created on or
  before May 31, 1999, or is proposed to be included within the
  boundaries of a reinvestment zone as the boundaries of the zone and
  the proposed portion of tax increment paid into the tax increment
  fund by a school district are described in a written notification
  provided by the municipality or the board of directors of the zone
  to the governing bodies of the other taxing units in the manner
  provided by former Section 311.003(e), Tax Code, before May 31,
  1999, and within the boundaries of the zone as those boundaries
  existed on September 1, 1999, including subsequent improvements to
  the property regardless of when made;
                     (B)  generates taxes paid into a tax increment
  fund created under Chapter 311, Tax Code, under a reinvestment zone
  financing plan approved under Section 311.011(d), Tax Code, on or
  before September 1, 1999; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (5)  the total dollar amount of any captured appraised
  value of property that:
                     (A)  is within a reinvestment zone:
                           (i)  created on or before December 31, 2008,
  by a municipality with a population of less than 18,000; and
                           (ii)  the project plan for which includes
  the alteration, remodeling, repair, or reconstruction of a
  structure that is included on the National Register of Historic
  Places and requires that a portion of the tax increment of the zone
  be used for the improvement or construction of related facilities
  or for affordable housing;
                     (B)  generates school district taxes that are paid
  into a tax increment fund created under Chapter 311, Tax Code; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (6)  the total dollar amount of any exemptions granted
  under Section 11.251 or 11.253, Tax Code;
               (7)  the difference between the comptroller's estimate
  of the market value and the productivity value of land that
  qualifies for appraisal on the basis of its productive capacity,
  except that the productivity value estimated by the comptroller may
  not exceed the fair market value of the land;
               (8)  the portion of the appraised value of residence
  homesteads of individuals who receive a tax limitation under
  Section 11.26, Tax Code, on which school district taxes are not
  imposed in the year that is the subject of the study, calculated as
  if the residence homesteads were appraised at the full value
  required by law;
               (9)  a portion of the market value of property not
  otherwise fully taxable by the district at market value because of:
                     (A)  action required by statute or the
  constitution of this state that, if the tax rate adopted by the
  district is applied to it, produces an amount equal to the
  difference between the tax that the district would have imposed on
  the property if the property were fully taxable at market value and
  the tax that the district is actually authorized to impose on the
  property, if this subsection does not otherwise require that
  portion to be deducted; or
                     (B)  action taken by the district under Subchapter
  B or C, Chapter 313, Tax Code, before the expiration of the
  subchapter;
               (10)  the market value of all tangible personal
  property, other than manufactured homes, owned by a family or
  individual and not held or used for the production of income;
               (11)  the appraised value of property the collection of
  delinquent taxes on which is deferred under Section 33.06, Tax
  Code;
               (12)  the portion of the appraised value of property
  the collection of delinquent taxes on which is deferred under
  Section 33.065, Tax Code; and
               (13)  the amount by which the market value of a
  residence homestead to which Section 23.23, Tax Code, applies
  exceeds the appraised value of that property as calculated under
  that section.
         SECTION 20.  Section 403.302(m), Government Code, as added
  by Chapter 1186 (H.B. 3676), Acts of the 81st Legislature, Regular
  Session, 2009, is amended to conform to Section 80, Chapter 1328
  (H.B. 3646), Acts of the 81st Legislature, Regular Session, 2009,
  to read as follows:
         (m)  Subsection (d)(9) [(d)(10)] does not apply to property
  that was the subject of an application under Subchapter B or C,
  Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
  recommended should be disapproved.
         SECTION 21.  Sections 311.003(e), (f), and (g), 311.006(c),
  and 311.013(d) and (e), Tax Code, are repealed.
         SECTION 22.  (a) The legislature validates and confirms all
  governmental acts and proceedings of a municipality or county, the
  board of directors of a reinvestment zone, or an entity acting under
  Section 311.010(f), Tax Code, that were taken before the effective
  date of this Act and relate to or are associated with the
  designation, operation, or administration of a reinvestment zone or
  the implementation of a project plan or reinvestment zone financing
  plan under Chapter 311, Tax Code, including the extension of the
  term of a reinvestment zone, as of the dates on which they occurred.
  The acts and proceedings may not be held invalid because they were
  not in accordance with Chapter 311, Tax Code, or other law.
         (b)  Subsection (a) of this section does not apply to any
  matter that on the 30th day after the effective date of this Act:
               (1)  is involved in litigation if the litigation
  ultimately results in the matter being held invalid by a final
  judgment of a court; or
               (2)  has been held invalid by a final judgment of a
  court.
         SECTION 23.  (a) Section 311.002(1), Tax Code, as amended by
  this Act, applies to all costs described by that subdivision
  regardless of when they were incurred.
         (b)  Section 311.012(c), Tax Code, as amended by this Act,
  applies only to the determination of the tax increment base of a
  taxing unit for a tax year beginning on or after the effective date
  of this Act, except that if the tax increment base of a taxing unit
  for a tax year beginning before the effective date was determined in
  the manner provided by Section 311.012(c), Tax Code, as amended by
  this Act, the determination is validated as if the amendment were in
  accordance with Section 311.012(c), Tax Code, as that section
  existed immediately before the effective date of this Act.
         SECTION 24.  To the extent of any conflict, this Act prevails
  over another Act of the 82nd Legislature, Regular Session, 2011,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 25.  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, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2853 was passed by the House on May 3,
  2011, by the following vote:  Yeas 139, Nays 5, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2853 on May 27, 2011, by the following vote:  Yeas 142, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2853 was passed by the Senate, with
  amendments, on May 25, 2011, by the following vote:  Yeas 30, Nays
  1.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor