By Martin, Duncan, Gray                                H.B. No. 209
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the users of projects of, the sales and use tax for,
    1-3  and the existence or dissolution of certain industrial development
    1-4  corporations.
    1-6        SECTION 1.  Section 2(14), Development Corporation Act of
    1-7  1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
    1-8  read as follows:
    1-9              (14)  "User" means an individual, partnership,
   1-10  corporation, or any other private entity, whether organized for
   1-11  profit or not for profit, or a city, county, district, or any other
   1-12  political subdivision, <or> public entity, or agency of the state
   1-13  government or federal government.
   1-14        SECTION 2.  Section 4A(k), Development Corporation Act of
   1-15  1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
   1-16  read as follows:
   1-17        (k)  On petition of 10 percent or more of the registered
   1-18  voters of the city requesting an election on the dissolution of the
   1-19  corporation, the governing body shall order an election on the
   1-20  issue to be held on the next available uniform election date under
   1-21  Section 41.001, Election Code, that is not less than 45 days after
   1-22  the date that the petition is filed.  The election must be
   1-23  conducted according to the applicable provisions of the Election
   1-24  Code.  The ballot for the election shall be printed to provide for
    2-1  voting for or against the proposition:  "Dissolution of the
    2-2  ________________ (name of the corporation)."  If a majority of
    2-3  voters voting on the issue approve the dissolution, the corporation
    2-4  shall continue operations only as necessary to pay the principal of
    2-5  and interest on its bonds and to meet obligations incurred before
    2-6  the date of the election and, to the extent practicable, shall
    2-7  dispose of its assets and apply the proceeds to satisfy those
    2-8  obligations.  When the last of the obligations is satisfied, any
    2-9  remaining assets of the corporation shall be transferred to the
   2-10  city, and the corporation is dissolved.  A tax imposed under this
   2-11  section may not be collected after the last day of the first
   2-12  calendar quarter beginning after notification to the comptroller by
   2-13  the corporation that the last of its obligations is satisfied.
   2-14        SECTION 3.  Section 4A, Development Corporation Act of 1979
   2-15  (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
   2-16  adding Subsection (q) to read as follows:
   2-17        (q)  At an election called or held under Subsection (d) or
   2-18  (o) of this section, the city may also allow the voters to vote on
   2-19  a ballot proposition that limits the use of the sales and use tax
   2-20  to a specific project.  If a city elects to limit the use to a
   2-21  specific project,  in the ballot proposition prescribed by
   2-22  Subsection (m) or (p) a description of the project shall be
   2-23  substituted in place of the words "new and expanded business
   2-24  enterprises."  When the last of its obligations for the specific
   2-25  project have been satisfied, the corporation shall send a notice to
   2-26  the comptroller stating that the sales and use tax imposed for the
   2-27  specific project may not be collected after the last day of the
    3-1  first calendar quarter beginning after the date of notification.  A
    3-2  sales and use tax imposed for a specific project under this
    3-3  subsection may not be collected after the last day of the first
    3-4  calendar quarter beginning after the date of the notification to
    3-5  the comptroller.  Revenue collected after the obligations for the
    3-6  specific project have been satisfied shall be retained by the state
    3-7  for state purposes and deposited to the credit of the general
    3-8  revenue fund if the tax revenue cannot be returned to the purchaser
    3-9  of taxable items on which the tax was paid.  A corporation that has
   3-10  been created to perform a specific project under this subsection
   3-11  may retain its corporate existence and perform other projects as
   3-12  may be approved by the voters of the city under an election called
   3-13  and held under Subsection (d) or (o) of this section.
   3-14        SECTION 4.  Section 4A(l), Development Corporation Act of
   3-15  1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by
   3-16  Section 1, Chapter 634, Acts of the 72nd Legislature, Regular
   3-17  Session, 1991, is repealed.
   3-18        SECTION 5.  The importance of this legislation and the
   3-19  crowded condition of the calendars in both houses create an
   3-20  emergency and an imperative public necessity that the
   3-21  constitutional rule requiring bills to be read on three several
   3-22  days in each house be suspended, and this rule is hereby suspended,
   3-23  and that this Act take effect and be in force from and after its
   3-24  passage, and it is so enacted.