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.