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Summary of Legislation: Under current law, counties and municipalities can create Transportation Reinvestment Zones (TRZ) and Tax Increment Financing (TIF) to fund transportation projects. However, counties that create TRZs are not subject to the same requirements as municipalities that create TRZs. This legislation seeks to remedy that discrepancy. This legislation also requires a government entity that creates a TRZ fulfill its contractual obligations in relation to the pledge assignments allotted in the TRZ agreement. This bill specifies that a TRZ terminates only after all contractual requirements have been met and the repayment of money owed for the improvement, development or, redevelopment has been completed.
Analysis: In our analysis of HB 1290 we discussed our concerns with TRZs and the TIF model of financing. While those concerns remain, counties and municipalities already have the authority to create TRZs and TRFs. To the extent that this legislation makes government entities more accountable by requiring that they fulfil their contractual obligations, we support HB 1716.