House Bill No. 2878 proposes amendments to the Texas Tax Code and Education Code to enhance the use of revenue from tax increment funds for specific reinvestment zones. The bill introduces a new section, 311.0086, which allows municipalities and counties to enter into agreements with school districts for the acquisition, construction, or reconstruction of educational facilities. This applies to reinvestment zones created after January 1, 2005, by municipalities or after January 1, 2022, by counties, provided they meet certain criteria, including size and the existence of a written agreement regarding tax increment payments.

Additionally, the bill amends Section 48.253(a) of the Education Code to ensure that school districts receive state aid equivalent to the amount they contribute to the tax increment fund under the new section. The changes will take effect starting with the 2025-2026 school year, and the bill will become effective immediately if it secures a two-thirds majority vote in both houses; otherwise, it will take effect on September 1, 2025.

Statutes affected:
Introduced: Education Code 48.253 (Education Code 48)