By Oliveira, Seaman, Solis of Cameron, H.B. No. 3029
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain industrial development corporations, projects
1-3 of industrial development corporations, and the taxes levied for
1-4 projects.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2(10), 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 (10) "Project" shall mean the land, buildings,
1-10 equipment, facilities, targeted infrastructure, and improvements
1-11 (one or more) to promote new and expanded business development or
1-12 found by the board of directors to be required or suitable for the
1-13 promotion of development and expansion of manufacturing and
1-14 industrial facilities, job creation and retention, job training,
1-15 educational facilities, transportation facilities (including but
1-16 not limited to airports, ports, mass commuting facilities, and
1-17 parking facilities), sewage or solid waste disposal facilities,
1-18 recycling facilities, air or water pollution control facilities,
1-19 facilities for the furnishing of water to the general public,
1-20 distribution centers, and small warehouse facilities capable of
1-21 serving as decentralized storage and distribution centers, and for
1-22 the promotion of development or redevelopment and expansion,
1-23 including costs of administration and operation, of a military base
1-24 closed or realigned pursuant to recommendation of the Defense
1-25 Closure and Realignment Commission pursuant to the Defense Base
2-1 Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note)
2-2 as amended, and of facilities which are related to any of the
2-3 foregoing, and in furtherance of the public purposes of this Act,
2-4 all as defined in the rules of the department, irrespective of
2-5 whether in existence or required to be identified, acquired, or
2-6 constructed thereafter. As used in this Act, the term "development
2-7 areas" shall mean any area or areas of a city that the city finds
2-8 and determines, after a public hearing, should be developed in
2-9 order to meet the development objectives of the city. In addition,
2-10 in blighted or economically depressed areas, development areas,
2-11 federally designated empowerment zones and enterprise communities
2-12 designated under Section 1391, Internal Revenue Code of 1986, or
2-13 federally assisted new communities located within a home-rule city
2-14 or a federally designated economically depressed county of less
2-15 than 50,000 persons according to the last federal decennial census,
2-16 a project may include the land, buildings, equipment, facilities,
2-17 and improvements (one or more) found by the board of directors to
2-18 be required or suitable for the promotion of commercial development
2-19 and expansion and in furtherance of the public purposes of this
2-20 Act, or for use by commercial enterprises, all as defined in the
2-21 rules of the department, irrespective of whether in existence or
2-22 required to be acquired or constructed thereafter. As used in this
2-23 Act, the term blighted or economically depressed areas shall mean
2-24 those areas and areas immediately adjacent thereto within a city
2-25 which by reason of the presence of a substantial number of
2-26 substandard, slum, deteriorated, or deteriorating structures, or
2-27 which suffer from a high relative rate of unemployment, or which
3-1 have been designated and included in a tax incremental district
3-2 created under Chapter 695, Acts of the 66th Legislature, Regular
3-3 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or
3-4 any combination of the foregoing, the city finds and determines,
3-5 after a hearing, substantially impair or arrest the sound growth of
3-6 the city, or constitute an economic or social liability and are a
3-7 menace to the public health, safety, or welfare in their present
3-8 condition and use. The department shall adopt guidelines that
3-9 describe the kinds of areas that may be considered to be blighted
3-10 or economically depressed. The city shall consider these
3-11 guidelines in making its findings and determinations. Notice of
3-12 the hearing at which the city considers establishment of a
3-13 development area or an economically depressed or blighted area
3-14 shall be posted at the city hall before the hearing.
3-15 "Federally assisted new communities" shall mean those
3-16 federally assisted areas which have received or will receive
3-17 assistance in the form of loan guarantees under Title X of the
3-18 National Housing Act and a portion of the federally assisted area
3-19 has received grants under Section 107(a)(1) of the Housing and
3-20 Community Development Act of 1974, as amended.
3-21 SECTION 2. Section 4A, Development Corporation Act of 1979
3-22 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
3-23 adding Subsection (c-1) to read as follows:
3-24 (c-1) The costs of a publicly owned and operated project
3-25 that is purchased or constructed under this section include the
3-26 maintenance and operating costs of the project. The proceeds of
3-27 taxes imposed under this section may be used to pay the maintenance
4-1 and operating costs of a project, unless not later than the 60th
4-2 day after the date notice of this specific use of the tax proceeds
4-3 is first published, the governing body of the city receives a
4-4 petition from more than 10 percent of the registered voters of the
4-5 city requesting that an election be held before the tax proceeds
4-6 may be used to pay the maintenance and operating costs of a
4-7 project.
4-8 SECTION 3. Section 4B(a)(1), Development Corporation Act of
4-9 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
4-10 read as follows:
4-11 (1) "Eligible city" means a city:
4-12 (A) that is located in a county with a
4-13 population of 750,000 or more, according to the most recent federal
4-14 decennial census and in which the combined rate of all sales and
4-15 use taxes imposed by the city, the state, and other political
4-16 subdivisions of the state having territory in the city does not
4-17 exceed 8.25 [7.25] percent on the date of any election held under
4-18 or made applicable to this section;
4-19 (B) that has a population of 400,000 or more,
4-20 according to the most recent federal decennial census, and that is
4-21 located in more than one county, and in which the combined rate of
4-22 all sales and use taxes imposed by the city, the state, and other
4-23 political subdivisions of the state having territory in the city,
4-24 including taxes under this section, does not exceed 8.25 percent;
4-25 (C) that is located in a county with a
4-26 population of more than 1,100,000 according to the most recent
4-27 federal decennial census, in which there are more than 29
5-1 incorporated municipalities according to the most recent federal
5-2 decennial census, and in which the combined rate of all sales and
5-3 use taxes imposed by the city, the state, and other political
5-4 subdivisions of the state having territory in the city does not
5-5 exceed 7.75 percent on the date of any election held under or made
5-6 applicable to this section; or
5-7 (D) to which Section 4A of this Act applies.
5-8 (E) Paragraph (C) of this subdivision expires
5-9 September 1, 1999.
5-10 SECTION 4. Section 4B, Development Corporation Act of 1979
5-11 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
5-12 adding Subsection (e-1) and amending Subsection (i) to read as
5-13 follows:
5-14 (e-1) In a city in which a sales and use tax for the benefit
5-15 of a corporation has been imposed under this section, in the same
5-16 manner and by the same procedure the city by majority vote of the
5-17 qualified voters of the city voting at an election called and held
5-18 for the purpose may reduce or increase the tax. The rate may be
5-19 reduced in one or more increments of one-eighth of one percent to a
5-20 minimum of one-eighth of one percent or increased in one or more
5-21 increments of one-eighth of one percent to a maximum of one-half of
5-22 one percent. On petition of 10 percent or more of the registered
5-23 voters of the city requesting an election on the increase or
5-24 reduction of the tax under this section, the governing body of the
5-25 city shall order an election on the issue. In an election to
5-26 increase or reduce the tax under this section, the ballot shall be
5-27 printed to provide for voting for or against the proposition: "The
6-1 _________ (insert "increase in" or "reduction of", as appropriate)
6-2 a sales and use tax adopted for the promotion and development of
6-3 new and expanded business from a rate of __________ (insert
6-4 applicable tax rate) to a rate of __________ (insert proposed tax
6-5 rate).
6-6 (i) On petition of 10 percent or more of the registered
6-7 voters of the city requesting an election on the dissolution of the
6-8 corporation, the governing body shall order an election on the
6-9 issue at the next available uniform election date that is not later
6-10 than the 45th day after the date on which the petition is filed.
6-11 The election must be conducted according to the applicable
6-12 provisions of the Election Code. The ballot for the election shall
6-13 be printed to provide for voting for or against the proposition:
6-14 "Dissolution of the ___________________ (name of the corporation)."
6-15 If a majority of voters voting on the issue approve the
6-16 dissolution, the corporation shall continue operations only as
6-17 necessary to pay the principal of and interest on its bonds and to
6-18 meet obligations incurred before the date of the election and, to
6-19 the extent practicable, shall dispose of its assets and apply the
6-20 proceeds to satisfy those obligations. When the last of the
6-21 obligations is satisfied, any remaining assets of the corporation
6-22 shall be transferred to the city, and the corporation is dissolved.
6-23 A [sales and use] tax imposed under this section may not be
6-24 collected after the last day of the first calendar quarter
6-25 beginning [occurring] after notification to the comptroller by the
6-26 corporation that the last of its obligations is satisfied [all
6-27 bonds or other obligations of the corporation that are payable in
7-1 whole or in part from the proceeds of the sales and use tax under
7-2 this section, including any refunding bonds or other obligations,
7-3 have been paid in full or the full amount of money, exclusive of
7-4 guaranteed interest, necessary to pay in full the bonds and other
7-5 obligations has been set aside in a trust account dedicated to the
7-6 payment of the bonds and other obligations].
7-7 SECTION 5. The Development Corporation Act of 1979 (Article
7-8 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
7-9 4D to read as follows:
7-10 Sec. 4D. The legislature finds for all constitutional and
7-11 statutory purposes that projects as defined by Section 2(10) of
7-12 this Act are owned, used, and held for public purposes for and on
7-13 behalf of the eligible city incorporating the corporation, and
7-14 Section 23(b) of this Act and Section 25.07(a), Tax Code, are not
7-15 applicable to leasehold or other possessory interests granted by
7-16 the corporation during the period projects are owned by the
7-17 corporation on behalf of the eligible city. Projects are exempt
7-18 from taxation under Section 11.11, Tax Code, for that period.
7-19 SECTION 6. The Development Corporation Act of 1979 (Article
7-20 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
7-21 4E to read as follows:
7-22 Sec. 4E. DEVELOPMENT CORPORATION FOR SPACEPORT FACILITIES.
7-23 (a) In this section:
7-24 (1) "Eligible entity" means any county or combination
7-25 of municipalities and counties.
7-26 (2) "Project" means land, buildings, equipment,
7-27 facilities, and improvements included in the definition of that
8-1 term under Section 2 of this Act, including land, buildings,
8-2 equipment, facilities, and improvements found by the board of
8-3 directors to:
8-4 (A) be required or suitable for use for the
8-5 promotion or development of a spaceport, related area
8-6 transportation facilities, automobile parking facilities, and
8-7 related roads, streets, and water and sewer facilities, and other
8-8 related improvements that enhance any of those items;
8-9 (B) promote or develop new or expanded business
8-10 enterprises relating to a spaceport;
8-11 (C) promote or develop educational programs and
8-12 job training in connection with a spaceport;
8-13 (D) be required or suitable for the promotion of
8-14 development and expansion of affordable housing, as defined by 42
8-15 U.S.C. Section 12745, in connection with a spaceport.
8-16 (3) "Spacecraft" includes a satellite.
8-17 (4) "Spaceport" includes:
8-18 (A) an area intended to be used to launch or
8-19 land a spacecraft;
8-20 (B) a spaceport building or facility located on
8-21 an area appurtenant to a launching or landing area;
8-22 (C) an area appurtenant to a launching or
8-23 landing area that is intended for use for a spaceport building or
8-24 facility; and
8-25 (D) a right-of-way related to a launching or
8-26 landing area, building facility, or other area that is appurtenant
8-27 to a launching or landing area.
9-1 (b) An eligible entity may create a corporation under this
9-2 Act governed by this section. The corporation has the powers
9-3 granted by this section and by other sections of this Act and is
9-4 subject to the limitations of a corporation created under other
9-5 provisions of this Act. To the extent of a conflict between this
9-6 section and another provision of this Act, this section prevails.
9-7 The articles of incorporation of a corporation under this section
9-8 must state that the corporation is governed by this section and may
9-9 include within its name any words and phrases specified by the
9-10 eligible entity.
9-11 (c) A corporation may:
9-12 (1) acquire, convey, mortgage, or otherwise dispose of
9-13 property; and
9-14 (2) exercise the power of eminent domain to acquire
9-15 property for a spaceport, including the power to:
9-16 (A) acquire fee title in land condemned;
9-17 (B) relocate or modify a railroad, utility line,
9-18 pipeline, or other facility that may interfere with a spaceport; or
9-19 (C) impose a reasonable restriction on using the
9-20 surface of the property for mineral development if the corporation
9-21 does not own the mineral rights.
9-22 (d) A corporation may not issue a bond or acquire property
9-23 unless a site in the territory of the eligible entity that
9-24 established the corporation has been designated as the site for a
9-25 spaceport.
9-26 (e) Before exercising the power of eminent domain under this
9-27 section, a corporation must obtain a resolution approving the
10-1 proposed condemnation from the governing body of a county or
10-2 municipality in which the property is located. For purposes of
10-3 this section, territory in the extraterritorial jurisdiction of a
10-4 municipality is considered to be in the jurisdiction of the
10-5 municipality. The exercise of the power of eminent domain by the
10-6 corporation is governed by Chapter 21, Property Code.
10-7 (f) A corporation may make an agreement with or accept a
10-8 donation, grant, or loan from any person. A corporation may enter
10-9 into an interlocal contract under Chapter 791, Government Code. A
10-10 corporation may not contract to operate a spaceport unless the
10-11 agreement provides that the person contracting with the corporation
10-12 must assume the corporation's liability for a cause of action
10-13 arising from environmental damage. A corporation may sue and be
10-14 sued.
10-15 (g) A corporation is governed by a board of seven directors.
10-16 For a corporation established by a single county, the commissioners
10-17 court of the county shall appoint the directors. If more than one
10-18 public entity creates the corporation the board must be appointed
10-19 by written agreement between the governing bodies of those
10-20 entities. Each director serves a two-year term that expires June 1
10-21 of each odd-numbered year except that the terms of three or four of
10-22 the initial directors may be for a one-year term so that the terms
10-23 can be staggered for future two-year terms. A board shall elect a
10-24 presiding officer from among its members. A board by rule may
10-25 provide for the election of other officers. The board shall meet
10-26 at least once every three months and at the call of the presiding
10-27 officer or a majority of the directors.
11-1 (h) A board by rule may develop a plan for higher education
11-2 courses and degree programs to be offered at or near a spaceport.
11-3 These planned courses and degree programs must be related to the
11-4 purposes of this chapter. The Texas Aerospace Commission and the
11-5 Texas Higher Education Coordinating Board shall cooperate with and
11-6 advise a board in carrying out this section.
11-7 (i) A corporation may:
11-8 (1) impose a charge for using a spaceport or a service
11-9 the corporation provides;
11-10 (2) issue a bond as provided by this section;
11-11 (3) borrow money;
11-12 (4) loan money to fund a spaceport; and
11-13 (5) invest money under its control in an investment
11-14 permitted by Chapter 2256, Government Code.
11-15 (j) A corporation's property, income, and operations are
11-16 exempt from taxes imposed by the state or a political subdivision
11-17 of the state. In lieu of taxes, a corporation shall make a payment
11-18 to each political subdivision of the state in an amount equal to
11-19 the ad valorem taxes that would be paid on the land of the
11-20 corporation if the land were privately owned. Tangible personal
11-21 property such as a spacecraft or other property necessary to launch
11-22 the spacecraft is not taxable under Section 11.01, Tax Code, if it
11-23 is located in the spaceport. Chapter 151, Tax Code, does not apply
11-24 to tangible personal property purchased by a person for use in a
11-25 spaceport.
11-26 (k) A corporation may issue bonds. The bonds are not an
11-27 obligation or a pledge of the faith and credit of the state, a
12-1 sponsoring entity or other political subdivision or agency of the
12-2 state. A bond issued under this section must:
12-3 (1) be payable solely from the revenue of a spaceport
12-4 developed by the corporation issuing the bond;
12-5 (2) mature not later than 50 years after its date of
12-6 issuance;
12-7 (3) state on its face that the bond is not an
12-8 obligation of the State of Texas or a political subdivision of the
12-9 state, other than the corporation that issued the bond; and
12-10 (4) be approved by the governing body of each entity
12-11 that established the corporation.
12-12 (l) Section 24 of this Act does not apply to a corporation
12-13 under this section.
12-14 SECTION 7. The Development Corporation Act of 1979 (Article
12-15 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
12-16 30A to read as follows:
12-17 Sec. 30A. (a) For purposes of this section, a "defense base
12-18 development corporation" means a corporation established under
12-19 Section 4B of this Act, for the purpose of promoting projects
12-20 regarding a military base closure or realignment under the Defense
12-21 Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687)
12-22 and its subsequent amendments.
12-23 (b) Each of the following acts of a defense base development
12-24 corporation is validated and confirmed as of the date it occurred:
12-25 (1) each act or proceeding of the corporation taken
12-26 before March 1, 1999;
12-27 (2) the election or appointment and each act of a
13-1 director or other official of the corporation who took office
13-2 before the effective date of this Act;
13-3 (3) each act or proceeding relating to a bond or other
13-4 obligation of the corporation authorized before the effective date
13-5 of this Act; and
13-6 (4) each act or proceeding relating to the entity's
13-7 incorporation under this Act.
13-8 (c) This section does not apply to:
13-9 (1) an act, proceeding, bond, or obligation the
13-10 validity of which is the subject of litigation that is pending on
13-11 the effective date of this Act;
13-12 (2) an election or appointment of a director or
13-13 official the validity of which is the subject of litigation that is
13-14 pending on the effective date of this Act;
13-15 (3) an act or proceeding that was void or that, under
13-16 a statute of this state at the time the action or proceeding
13-17 occurred, was a misdemeanor or felony; or
13-18 (4) an act or proceeding that has been held invalid by
13-19 a final judgment of a court.
13-20 SECTION 8. This Act takes effect September 1, 1999.
13-21 SECTION 9. The importance of this legislation and the
13-22 crowded condition of the calendars in both houses create an
13-23 emergency and an imperative public necessity that the
13-24 constitutional rule requiring bills to be read on three several
13-25 days in each house be suspended, and this rule is hereby suspended.