1-1  By:  Harris of Tarrant                                 S.B. No. 124
    1-2        (In the Senate - Filed January 15, 1993; January 19, 1993,
    1-3  read first time and referred to Committee on Intergovernmental
    1-4  Relations; February 10, 1993, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 10, Nays 0;
    1-6  February 10, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Armbrister         x                               
   1-10        Leedom             x                               
   1-11        Carriker           x                               
   1-12        Henderson                                      x   
   1-13        Madla              x                               
   1-14        Moncrief           x                               
   1-15        Patterson          x                               
   1-16        Rosson             x                               
   1-17        Shapiro            x                               
   1-18        Wentworth          x                               
   1-19        Whitmire           x                               
   1-20  COMMITTEE SUBSTITUTE FOR S.B. No. 124                   By:  Leedom
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the authority of a municipality located in more than
   1-24  one county to create an industrial development corporation and to
   1-25  levy a sales and use tax.
   1-26        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-27        SECTION 1.  Subdivision (1), Subsection (a), Section 4B,
   1-28  Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
   1-29  Civil Statutes), is amended to read as follows:
   1-30              (1)  "Eligible city" means a city:
   1-31                    (A)  that is located wholly or partly in a county
   1-32  with a population of 750,000 or more, according to the most recent
   1-33  federal decennial census; and
   1-34                    (B)  in which the combined rate of all sales and
   1-35  use taxes imposed by the city, the state, and other political
   1-36  subdivisions of the state having territory in the city does not
   1-37  exceed 7.25 percent on the date of any election held under or made
   1-38  applicable to this section.
   1-39        SECTION 2.  Subsection (f), Section 4B, Development
   1-40  Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
   1-41  Statutes), is amended to read as follows:
   1-42        (f)  Chapter 321, Tax Code, governs the imposition,
   1-43  computation, administration, collection, and remittance of the tax
   1-44  except as inconsistent with this section.  The tax imposed under
   1-45  this section takes effect as provided by Section 321.102(a), Tax
   1-46  Code.  If, however, an election is held under this section at the
   1-47  same time an election is held to impose or change the rate of the
   1-48  additional municipal sales and use tax, the tax under this section
   1-49  and the imposition or change in rate of the additional municipal
   1-50  sales and use tax take effect as provided by Section 321.102(b),
   1-51  Tax Code.  <Section 321.102(a), Tax Code, does not apply to the tax
   1-52  imposed under this section.  The ordinance under which the taxes
   1-53  authorized by this section are levied must provide for the
   1-54  effective date of the tax.  That effective date must occur on the
   1-55  first day of a month, which day may not be earlier than the 45th
   1-56  day after the date of final action of the governing body in
   1-57  adopting the ordinance or after the date of the election, whichever
   1-58  is later.  If the ordinance levying the tax is adopted after the
   1-59  election, the presiding officer of the governing body shall, not
   1-60  later than the 10th day after the date of the final action in
   1-61  adopting the ordinance, send to the comptroller by certified mail a
   1-62  copy of the ordinance.  The tax is effective on the date specified
   1-63  in the ordinance unless the comptroller, within 10 days after the
   1-64  receipt of an ordinance sent under this subsection, notifies the
   1-65  secretary of the municipality that more time is required, in which
   1-66  case the effective date of the application of the tax is the first
   1-67  day of the first calendar quarter after the expiration of the first
   1-68  complete calendar quarter occurring after the date on which the
    2-1  comptroller receives the ordinance.>  After the effective date of
    2-2  the taxes imposed under this section, the adoption of a sales and
    2-3  use tax or the attempted adoption of a sales and use tax by the
    2-4  eligible city or any other taxing jurisdiction having territory in
    2-5  the city does not impair the taxes imposed under this section.
    2-6        SECTION 3.  The importance of this legislation and the
    2-7  crowded condition of the calendars in both houses create an
    2-8  emergency and an imperative public necessity that the
    2-9  constitutional rule requiring bills to be read on three several
   2-10  days in each house be suspended, and this rule is hereby suspended,
   2-11  and that this Act take effect and be in force from and after its
   2-12  passage, and it is so enacted.
   2-13                               * * * * *
   2-14                                                         Austin,
   2-15  Texas
   2-16                                                         February 10,
   2-17  1993
   2-18  Hon. Bob Bullock
   2-19  President of the Senate
   2-20  Sir:
   2-21  We, your Committee on Intergovernmental Relations to which was
   2-22  referred S.B. No. 124, have had the same under consideration, and I
   2-23  am instructed to report it back to the Senate with the
   2-24  recommendation that it do not pass, but that the Committee
   2-25  Substitute adopted in lieu thereof do pass and be printed.
   2-26                                                         Armbrister,
   2-27  Chairman
   2-28                               * * * * *
   2-29                               WITNESSES
   2-30                                                  FOR   AGAINST  ON
   2-31  ___________________________________________________________________
   2-32  Name:  Bob Bearden                                             x
   2-33  Representing:  State Comptroller
   2-34  City:  Austin
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