Amend HB 1410, by inserting the following new SECTION in the
appropriate location and renumber as appropriate:
      SECTION ____ Section 4B, Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes), is amended by
redesignating Subsection (a-1) as Subsection (a-3) and adding a new
Subsection (a-1), (a-4) and amending Subsection (e) to read as
follows:
      (a-1)  Before spending money to undertake a specific project
or general type of project, a corporation shall publish notice of
the project and hold at least one public hearing on the proposed
project.  The corporation shall publish notice under this
subsection by publishing notice of the project in a newspaper of
general circulation in the city or by posting a written notice of
the project in a place readily accessible to the general public at
all times.  The corporation shall publish or post the notice not
earlier than 15 days or later than seven days before the scheduled
time of the public hearing on the project.  Notice required under
this subsection is in addition to any notice required under Chapter
551, Government Code.
      (a-3)  A corporation may undertake a project under this
section unless within 60 days after first publishing notice of a
specific project or type of general project under Subsection (a-1)
of this section the governing body of the city receives a petition
from more than 10 percent of the registered voters of the city
where the petition requests than an election be held before that
specific project or that general type of project is undertaken.  An
election is not required to be held after the submission of a
petition if the qualified citizens of the city have previously
approved the undertaking of a specific project or that general type
of project at an election called for that purpose by the governing
body of the city or in conjunction with another election required
to be held under this section.
      (a-4)  Before spending money to undertake a specific project
or general type of project that was not authorized in a previous
election, the municipality shall submit to the voters for approval
a ballot proposition defining the specific project or general type
of projects.
      (e)  The rate of a tax adopted under this section must be
one-eighth, one-fourth, three-eighths, or one-half of one percent.
The ballot proposition at the election held to adopt the tax must
clearly state that the voters are voting on the adoption of a new
sales and use tax, specify the rate of the tax to be adopted, the
specific project or general type of project to be undertaken, and
identify the proposed use of or purpose for the tax revenue.  In
addition, if maintenance and operating costs are to be paid from
the tax, the ballot language must clearly state that fact.  A
corporation that holds an election to reduce a tax imposed under
Section 4A of this Act may in a separate proposition on the same
ballot adopt a tax under this section.  If an eligible city adopts
the tax, a tax is imposed on the receipts from the sale at retail
of taxable items within the eligible city at the rate approved at
the election.  There is also imposed an excise tax on the use,
storage, or other consumption within the eligible city of tangible
personal property purchased, leased, or rented from a retailer
during the period that the tax is effective within the eligible
city.  The rate of the excise tax is the same as the rate of the
sales tax portion of the tax and is applied to the sale price of
the tangible personal property.
      <(c)  If an eligible city adopts the tax, a tax is imposed on
the receipts from the sale at retail of taxable items within the
eligible city at a rate approved by the governing body of the
eligible city.  The rate must be equal to one-eighth, one-fourth,
three-eighths, or one-half of one percent.  There is also imposed
an excise tax on the use, storage, or other consumption within the
eligible city of tangible personal property purchased, leased, or
rented from a retailer during the period that the tax is effective
within the eligible city.  The rate of the excise tax is the same
as the rate of the sales tax portion of the tax and is applied to
the sale price of the tangible personal property.>
RATLIFF
ELLIS