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.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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.