By Duncan                                             H.B. No. 1841
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to economic development corporations; providing that
    1-3  agencies of the federal government may be deemed "users" under the
    1-4  terms of this act; providing for elections to be held on either
    1-5  specific or general purpose propositions; and providing for an
    1-6  election for the dissolution of such corporations.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8        SECTION 1.  Article 5190.6, Sec. 2, Subsection 14, Vernon's
    1-9  Texas Civil Statutes, is amended to read as follows:
   1-10        (14)  "User" means an individual, partnership, corporation or
   1-11  any other private entity, whether organized for profit or not for
   1-12  profit, the federal or state governments, or a city, county,
   1-13  district or any other political subdivision, agency or public
   1-14  entity of the state or federal government.
   1-15        SECTION 2.  Article 5190.6, Sec. 4A, subsection (k), Vernon's
   1-16  Texas Civil Statutes, is amended to 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 at the next available uniform election date that is not less
   1-21  than 45 days after the date that the petition is filed.  The
   1-22  election must be conducted according to the applicable provisions
   1-23  of the Election Code.  The ballot for the election shall be printed
    2-1  to provide for voting for or against the proposition:  "Dissolution
    2-2  of the ________________ (name of the corporation)."  If a majority
    2-3  of voters voting on the issue approve the dissolution, the
    2-4  corporation shall continue operations only as necessary to pay the
    2-5  principal of and interest on its bonds and to meet obligations
    2-6  incurred before the date of the election and, to the extent
    2-7  practicable, shall dispose of its assets and apply the proceeds to
    2-8  satisfy those obligations.  When the last of the obligations is
    2-9  satisfied, any remaining assets of the corporation shall be
   2-10  transferred to the city, and the corporation is dissolved.  A tax
   2-11  imposed under this section may not be collected after the last day
   2-12  of the first calendar quarter beginning after notification to the
   2-13  comptroller by the corporation that the last of its obligations is
   2-14  satisfied.
   2-15        SECTION 3.  Article 5190.6, Section 4A(1), as added by
   2-16  Section 1, Chapter 634, Acts of the 72nd Legislature, Regular
   2-17  Session, 1991, is repealed.
   2-18        SECTION 4.  Art. 5190.6, Section 4A, Vernon's Texas Civil
   2-19  Statutes, is amended by adding a new subsection (q) as follows:
   2-20        (q)  At an election called or held under Subsection (d) or
   2-21  (o) of this section, the city may also allow the voters to vote on
   2-22  a ballot proposition that limits the use of the sales and use tax
   2-23  to a specific project.  If a city elects to limit the use to a
   2-24  specific project, there shall be added to the ballot proposition
   2-25  prescribed by Subsection (m) and (p) in place of the words "new and
    3-1  expanded business enterprises" language describing the specific
    3-2  project for which the sales and use tax will be dedicated.  A sales
    3-3  and use tax imposed for a specific project under this subsection
    3-4  may not be collected after the last day of the first calendar
    3-5  quarter beginning after notification to the comptroller by the
    3-6  corporation that the last of its obligations for the specific
    3-7  project have been satisfied.  A corporation that has been created
    3-8  to perform a specific project under this subsection may retain its
    3-9  corporate existence and perform such other projects as may be
   3-10  approved by the voters of the city pursuant to Subsection (d) or
   3-11  (o).
   3-12        SECTION 5.  The importance of this legislation and the
   3-13  crowded condition of the calendars in both houses create an
   3-14  emergency and an imperative public necessity that the
   3-15  constitutional rule requiring bills to be read on three several
   3-16  days in each house be suspended, and this rule is hereby suspended
   3-17  and that this Act take effect and be in force from and after its
   3-18  passage, and it is so enacted.