BILL ANALYSIS C.S.H.B. 2492 By: Allen April 27, 1995 Committee Report (Substituted) BACKGROUND In 1992, the City of Grand Prairie approved a one-half cent additional sales tax to be used in support of a Class A horse racing track licensed within the city. Since then, the tax has been implemented but the track has encountered obstacles in commencing construction and finding financing. Current law prohibits the rededication of the sales tax to any other use. PURPOSE The purpose of H.B. 2492 is to enable voters to approve alternative uses for a sales tax. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 4A, Development Corporation Act of 1979, by adding Subsection (s) to provide that Section 41.001(a), Election Code, days on which an election may be held, does not apply to an election held under this section. SECTION 2. Amends Section 4B, Development Corporation Act of 1979, by adding Subsection (d-1) to provide for a sales and use tax approved by the majority of voters for the benefit of the corporation and has been levied by the governing body of the eligible city, that they may call and hold another election before January 1, 1997 to determine if the tax revenue may be used for other projects. An eligible city may not hold than one election. Expires this section on January 1, 1997. SECTION 3. Amends Section 4B, Development Corporation Act of 1979, by adding Subsection (o) to provide that Section 41.001(a), Election Code, days on which an election may be held, does not apply to an election held under this section. SECTION 5. Emergency Clause COMPARISON OF ORIGINAL TO SUBSTITUTE The original bill provided for a 4A designated development corporation to be able to designate the same projects as a 4B designated development corporation. The substitute removes this provision. The substitute adds that an eligible city may call and hold another election before January 1, 1997 to obtain authorization from a majority of the qualified voters to use the sale and use tax collected and imposed for one or more other projects authorized by this section. An eligible city may not hold more than one election. SUMMARY OF COMMITTEE ACTION H.B. 2492 was considered by the committee in a public hearing on April 18, 1995. Testifying in favor of the bill was Oliver Pennington, representing the City of Grand Prairie; Paul Isham, representing the City of Grande Prairie; and Wayne Usry, representing the City of Grand Prairie. H.B. 2492 was left pending in committee. H.B. 2492 was reconsidered by the committee in a formal meeting on April 24, 1995. The committee considered a complete substitute for H.B. 2492. One amendment was offered to the substitute. The one amendment was adopted without objection. The substitute as amended was adopted without objection. H.B. 2492 was reported favorably as substituted, with the recommendation that it do pass and be printed and be sent to the committee on Local and Consent Calendars, by a record vote of 8 ayes, 0 nays, 0 pnv, 1 absent.