By Ramsay H.B. No. 2297
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the incorporation of certain industrial development
1-3 corporations and the projects, powers, and limitation of those
1-4 corporations.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 4A(a), 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 (a) In this section "project" means land, buildings,
1-10 equipment, facilities, and improvements included in the definition
1-11 of that term under Section 2 of this Act and land, buildings,
1-12 equipment, facilities, and improvements found by the board of
1-13 directors to be required or suitable for use for professional and
1-14 amateur (including children's) sports, athletic, entertainment,
1-15 tourist, convention, and public park purposes and events, including
1-16 stadiums, ball parks, auditoriums, amphitheaters, concert halls,
1-17 learning centers, parks and park facilities, open space
1-18 improvements, municipal buildings, museums, exhibition facilities,
1-19 and related store, restaurant, concession, and automobile parking
1-20 facilities, related area transportation facilities, and related
1-21 roads, streets, and water and sewer facilities, and other related
1-22 improvements that enhance any of those items. A corporation may
1-23 not undertake a project the primary purpose of which is to provide
1-24 transportation facilities, solid waste disposal facilities, or air
2-1 or water pollution control facilities. However, the corporation
2-2 may provide those facilities to benefit property acquired for a
2-3 project having another primary purpose. The corporation may
2-4 undertake a municipal water supply project and provide related
2-5 transmission and treatment facilities connected with a municipally
2-6 owned or operated water system or sewage system. The corporation
2-7 may undertake a project the primary purpose of which is to provide:
2-8 (1) a general aviation business service airport that
2-9 is an integral part of an industrial park; or
2-10 (2) port-related facilities to support waterborne
2-11 commerce <This section applies only to a city:>
2-12 <(1) located in a county with a population of 500,000
2-13 or fewer according to the most recent federal decennial census; or>
2-14 <(2) with a population of fewer than 50,000 according
2-15 to the most recent federal decennial census that:>
2-16 <(A) is located in two or more counties, one of
2-17 which has a population of 500,000 or greater according to the most
2-18 recent federal decennial census;>
2-19 <(B) is located within the territorial limits
2-20 but has not elected to become a part of a metropolitan rapid
2-21 transit authority that has a principal city with a population of
2-22 less than 1.2 million according to the most recent federal
2-23 decennial census, with such authority being created before January
2-24 1, 1980, under Chapter 141, Acts of the 63rd Legislature, Regular
2-25 Session, 1973 (Article 1118x, Vernon's Texas Civil Statutes); or>
2-26 <(C) is located within the territorial limits
2-27 but has not elected to become a part of a metropolitan rapid
3-1 transit authority that has a principal city with a population of
3-2 more than 750,000 according to the most recent federal decennial
3-3 census, with such authority being created under Chapter 683, Acts
3-4 of the 66th Legislature, Regular Session, 1979 (Article 1118y,
3-5 Vernon's Texas Civil Statutes)>.
3-6 SECTION 2. Section 4A, Development Corporation Act of 1979
3-7 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
3-8 adding Subsection (q) to read as follows:
3-9 (q) A corporation under this section may not assume a debt
3-10 or make any expenditure to pay principal or interest on a debt if
3-11 the debt existed before the date the city created the corporation.
3-12 SECTION 3. Section 4A, Development Corporation Act of 1979
3-13 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
3-14 amending Subsection (n) and adding Subsection (n-1) to read as
3-15 follows:
3-16 (n) At an election called and held under Subsection (d) or
3-17 (o) of this section, the city may also allow the voters to vote on
3-18 a ballot proposition that limits the length of time that a sales
3-19 and use tax may be imposed. If a city elects to limit the period
3-20 the sales and use tax may be imposed, there shall be added to the
3-21 end of the ballot proposition prescribed by Subsection (m) of this
3-22 section: "to be imposed for ________ years" (the number of years
3-23 to be inserted as appropriate). The governing body of the city
3-24 shall set the expiration date of the proposed tax to occur on the
3-25 appropriate anniversary of the effective date of the tax.
3-26 (n-1) A sales and use tax imposed for a limited period under
3-27 Subsection (n) of this section <this subsection> expires on the
4-1 earlier of the date the last of the obligations for the specific
4-2 project have been satisfied or the date set by the governing body
4-3 under Subsection (n) of this section <this section> or on an
4-4 earlier date if, by a majority of the voters voting in an election
4-5 held in the city, the tax is repealed. If an earlier abolition
4-6 election is held, Sections 321.102(a) and 321.402(b), Tax Code,
4-7 apply to the date of repeal. A tax that is approved without a
4-8 limit on its period of imposition is effective until the last of
4-9 the obligations for the specific project have been satisfied
4-10 <repealed by election>. Before the 60th day before the date that a
4-11 tax is to expire, the governing body shall send a notice to the
4-12 comptroller stating the expiration date of the tax. Revenue
4-13 collected after the expiration of the tax from the imposition of
4-14 the tax after its expiration date shall be forwarded by the state
4-15 to the governing body to be used to pay current bonded indebtedness
4-16 of the municipality <retained by the state for state purposes and
4-17 deposited to the credit of the general revenue fund if the tax
4-18 revenue cannot be returned to the purchaser of taxable items on
4-19 which the tax was paid>. A municipality that has imposed a tax
4-20 under this section may not extend the period of the tax's
4-21 imposition or reimpose the tax after its expiration date. If a
4-22 city reduces the rate of an additional sales and use tax under
4-23 Chapter 321, Tax Code, to impose a tax under this section for a
4-24 limited period as provided under Subsection (n) of this section
4-25 <this subsection>, and does not have an election to change the rate
4-26 of the additional sales and use tax before the expiration date of
4-27 the tax under this section, the rate of the additional sales and
5-1 use tax under Section 321.101(b), Tax Code, in the city returns to
5-2 its previous rate in effect at the time the tax imposed under this
5-3 section was adopted on the expiration date of the tax under this
5-4 section without having to hold an election under Chapter 321, Tax
5-5 Code, to impose the increase in the rate.
5-6 SECTION 4. Section 4A, Development Corporation Act of 1979
5-7 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
5-8 adding Subsection (r) to read as follows:
5-9 (r) At an election called or held under Subsection (d) or
5-10 (o) of this section, the city may also allow the voters to vote on
5-11 a ballot proposition that limits the use of the sales and use tax
5-12 to a specific project. If a city elects to limit the use to a
5-13 specific project, in the ballot proposition prescribed by
5-14 Subsection (m) or (p) a description of the project shall be
5-15 substituted in place of the words "new and expanded business
5-16 enterprises." When the last of its obligations for the specific
5-17 project have been satisfied, the corporation shall send a notice to
5-18 the comptroller stating that the sales and use tax imposed for the
5-19 specific project may not be collected after the last day of the
5-20 first calendar quarter beginning after the date of notification. A
5-21 sales and use tax imposed for a specific project under this
5-22 subsection may not be collected after the last day of the first
5-23 calendar quarter beginning after the date of the notification to
5-24 the comptroller. Revenue collected after the obligations for the
5-25 specific project have been satisfied shall be retained by the state
5-26 for state purposes and deposited to the credit of the general
5-27 revenue fund if the tax revenue cannot be returned to the purchaser
6-1 of taxable items on which the tax was paid. A corporation that has
6-2 been created to perform a specific project under this subsection
6-3 may retain its corporate existence and perform other projects as
6-4 may be approved by the voters of the city under an election called
6-5 and held under Subsection (d) or (o) of this section.
6-6 SECTION 5. Section 4A(l), Development Corporation Act of
6-7 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by
6-8 Section 1, Chapter 634, Acts of the 72nd Legislature, Regular
6-9 Session, 1991, is repealed.
6-10 SECTION 6. Section 2(14), Development Corporation Act of
6-11 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
6-12 read as follows:
6-13 (14) "User" means an individual, partnership,
6-14 corporation, or any other private entity, whether organized for
6-15 profit or not for profit, or a city, county, district, or any other
6-16 political subdivision, <or> public entity, or agency of the state
6-17 government or federal government.
6-18 SECTION 7. Section 4A(i), Development Corporation Act of
6-19 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is repealed.
6-20 SECTION 8. This Act takes effect September 1, 1993.
6-21 SECTION 9. The importance of this legislation and the
6-22 crowded condition of the calendars in both houses create an
6-23 emergency and an imperative public necessity that the
6-24 constitutional rule requiring bills to be read on three several
6-25 days in each house be suspended, and this rule is hereby suspended.