By: Sheffield	H.B. No. 3465

	A BILL TO BE ENTITLED
	AN ACT
	relating to the ability of certain municipalities enhancing
	participation in economic development programs, including small
	business development.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  PURPOSE.  The purpose of this Act is to enable
	greater participation in economic development programs, including
	development of emerging small businesses, and to attract new
	investment to these zones.
	SECTION 2.  Chapter 501, Local Government Code is amended by
	adding subchapter J to read as follows:
	SUBCHAPTER J:  ECONOMIC DEVELOPMENT BY CERTAIN MUNICIPALITIES
	Section 501.501  ECONOMIC AND SMALL BUSINESS DEVELOPMENT  A
	municipality with a population of 70,000 or less that is located in
	a county in which all or part of a military installation is located
	may, by vote, adopt an ordinance directing the orderly economic
	development of the municipality, including the development of
	small businesses in the municipality.
	SECTION 501.502  ECONOMIC AND SMALL BUSINESS DEVELOPMENT
	PLAN  In developing the economic development ordinance, including
	portions of the ordinance dealing with the development of small
	businesses, a municipality may create or participate in a
	reinvestment zone financing plan, that may operate under Section
	403.302(e), Government Code or may create another plan, under other
	existing law.
	SECTION 501.503  INTERACTION WITH OTHER FINANCING PLANS  The
	provisions of Section 403.302(e), Government Code apply only if all
	participants in reinvestment zone financing plan agree with the use
	of the provision to accelerate the economic development of Small
	Businesses in the participating political subdivisions.
	SECTION 3.  Section 403.302(e), Government Code, is amended
	by adding subsection (e): (e) The total dollar amount deducted in
	each year as required by Subsection (d)(4) in a reinvestment zone
	created after January 1, 1999, may not exceed the captured
	appraised value estimated for that year as required by Section
	311.011(c)(8), Tax Code, in the reinvestment zone financing plan
	approved under Section 311.011(d), Tax Code, before September 1,
	1999.  The number of years for which the total dollar amount may be
	deducted under Subsection (d)(4) shall for any zone, including
	those created on or before January 1, 1999, be limited to the
	duration of the zone as specified as required by Section 311.017,
	Tax Code.  311.011(c)(9), Tax Code, in the reinvestment zone
	financing plan approved under Section 311.011(d), Tax Code, before
	September 1, 1999.
	Subsection (d)(4) for any zone, including those created on or
	before January 1, 1999, may not be increased by any reinvestment
	zone financing plan amendments that occur after August 31, 1999.
	The total dollar amount deducted under Subsection (d)(4) for any
	zone, including those created on or before January 1, 1999, may not
	be increased by a change made after August 31, 1999, in the portion
	of the tax increment retained by the school district.
	SECTION 4.  This Act takes effect September 1, 2011.