By: Anch a, Gervin-Hawkins, Jones of Dallas	H.B. No. 4433
	(Senate Sponsor - Parker)
	(In the Senate - Received from the House May 15, 2023;
	May 15, 2023, read first time and referred to Committee on Natural
	Resources & Economic Development; May 22, 2023, reported
	adversely, with favorable Committee Substitute by the following
	vote:  Yeas 5, Nays 0, 1 present not voting; May 22, 2023, sent to
	printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR H.B. No. 4433	By:  Zaffirini

Statutes affected:
Introduced: Tax Code 311.002, Tax Code 311.006 (Tax Code 311)
House Committee Report: Tax Code 311.002, Tax Code 311.006 (Tax Code 311)
Engrossed: Tax Code 311.002, Tax Code 311.006 (Tax Code 311)
Senate Committee Report: Tax Code 311.002 (Tax Code 311)

	A BILL TO BE ENTITLED
	AN ACT
	relating to the authority of the board of directors of a tax
	increment financing reinvestment zone to use money in the tax
	increment fund established for the zone to compensate certain
	homeowners for the increase in taxes associated with the zone.
	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 a
	reinvestment zone that are listed in the project plan as costs of
	public works, public improvements, programs, or other projects
	benefiting 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;
	(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; and
	(M)  payments made as part of a reinvestment zone
	stability program established under Section 311.0111.
	SECTION 2.  Chapter 311, Tax Code, is amended by adding