By Oliveira, Seaman, Solis of Cameron, Gallego H.B. No. 3029
76R7261 CLG-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the projects of certain industrial development
1-3 corporations and the taxes levied for those projects.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2(10), Development Corporation Act of
1-6 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-7 read as follows:
1-8 (10) "Project" shall mean the land, buildings,
1-9 equipment, facilities, targeted infrastructure, and improvements
1-10 (one or more) to promote new and expanded business development or
1-11 found by the board of directors to be required or suitable for the
1-12 promotion of development and expansion of manufacturing and
1-13 industrial facilities, job creation and retention, job training,
1-14 educational facilities, transportation facilities (including but
1-15 not limited to airports, ports, mass commuting facilities, and
1-16 parking facilities), sewage or solid waste disposal facilities,
1-17 recycling facilities, air or water pollution control facilities,
1-18 facilities for the furnishing of water to the general public,
1-19 distribution centers, and small warehouse facilities capable of
1-20 serving as decentralized storage and distribution centers, and for
1-21 the promotion of development or redevelopment and expansion,
1-22 including costs of administration and operation, of a military base
1-23 closed or realigned pursuant to recommendation of the Defense
1-24 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, Development Corporation Act of 1979
4-9 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
4-10 adding Subsection (e-1) and amending Subsection (i) to read as
4-11 follows:
4-12 (e-1) In a city in which a sales and use tax for the benefit
4-13 of a corporation has been imposed under this section, in the same
4-14 manner and by the same procedure the city by majority vote of the
4-15 qualified voters of the city voting at an election called and held
4-16 for the purpose may reduce or increase the tax. The rate may be
4-17 reduced in one or more increments of one-eighth of one percent to a
4-18 minimum of one-eighth of one percent or increased in one or more
4-19 increments of one-eighth of one percent to a maximum of one-half of
4-20 one percent. On petition of 10 percent or more of the registered
4-21 voters of the city requesting an election on the increase or
4-22 reduction of the tax under this section, the governing body of the
4-23 city shall order an election on the issue. In an election to
4-24 increase or reduce the tax under this section, the ballot shall be
4-25 printed to provide for voting for or against the proposition: "The
4-26 _________ (insert "increase in" or "reduction of", as appropriate)
4-27 a sales and use tax adopted for the promotion and development of
5-1 new and expanded business from a rate of __________ (insert
5-2 applicable tax rate) to a rate of __________ (insert proposed tax
5-3 rate).
5-4 (i) On petition of 10 percent or more of the registered
5-5 voters of the city requesting an election on the dissolution of the
5-6 corporation, the governing body shall order an election on the
5-7 issue at the next available uniform election date that is not later
5-8 than the 45th day after the date on which the petition is filed.
5-9 The election must be conducted according to the applicable
5-10 provisions of the Election Code. The ballot for the election shall
5-11 be printed to provide for voting for or against the proposition:
5-12 "Dissolution of the ___________________ (name of the corporation)."
5-13 If a majority of voters voting on the issue approve the
5-14 dissolution, the corporation shall continue operations only as
5-15 necessary to pay the principal of and interest on its bonds and to
5-16 meet obligations incurred before the date of the election and, to
5-17 the extent practicable, shall dispose of its assets and apply the
5-18 proceeds to satisfy those obligations. When the last of the
5-19 obligations is satisfied, any remaining assets of the corporation
5-20 shall be transferred to the city, and the corporation is dissolved.
5-21 A [sales and use] tax imposed under this section may not be
5-22 collected after the last day of the first calendar quarter
5-23 beginning [occurring] after notification to the comptroller by the
5-24 corporation that the last of its obligations is satisfied [all
5-25 bonds or other obligations of the corporation that are payable in
5-26 whole or in part from the proceeds of the sales and use tax under
5-27 this section, including any refunding bonds or other obligations,
6-1 have been paid in full or the full amount of money, exclusive of
6-2 guaranteed interest, necessary to pay in full the bonds and other
6-3 obligations has been set aside in a trust account dedicated to the
6-4 payment of the bonds and other obligations].
6-5 SECTION 4. The Development Corporation Act of 1979 (Article
6-6 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
6-7 4D to read as follows:
6-8 Sec. 4D. The legislature finds for all constitutional and
6-9 statutory purposes that projects as defined by Section 2(10) of
6-10 this Act are owned, used, and held for public purposes for and on
6-11 behalf of the eligible city incorporating the corporation, and
6-12 Section 23(b) of this Act and Section 25.07(a), Tax Code, are not
6-13 applicable to leasehold or other possessory interests granted by
6-14 the corporation during the period projects are owned by the
6-15 corporation on behalf of the eligible city. Projects are exempt
6-16 from taxation under Section 11.11, Tax Code, for that period.
6-17 SECTION 5. This Act takes effect September 1, 1999.
6-18 SECTION 6. The importance of this legislation and the
6-19 crowded condition of the calendars in both houses create an
6-20 emergency and an imperative public necessity that the
6-21 constitutional rule requiring bills to be read on three several
6-22 days in each house be suspended, and this rule is hereby suspended.
6-23 COMMITTEE AMENDMENT NO. 1
6-24 Amend H.B. No. 3029 by inserting the following appropriately
6-25 numbered section and renumbering subsequent sections appropriately:
6-26 SECTION ___. Section 4B(a)(1), Development Corporation Act of
6-27 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended
7-1 to read as follows:
7-2 (1) "Eligible city" means a city:
7-3 (A) that is located in a county with a
7-4 population of 750,000 or more, according to the most recent federal
7-5 decennial census and in which the combined rate of all sales and
7-6 use taxes imposed by the city, the state, and other political
7-7 subdivisions of the state having territory in the city does not
7-8 exceed 8.25 [7.25] percent on the date of any election held under
7-9 or made applicable to this section;
7-10 (B) that has a population of 400,000 or more,
7-11 according to the most recent federal decennial census, and that is
7-12 located in more than one county, and in which the combined rate of
7-13 all sales and use taxes imposed by the city, the state, and other
7-14 political subdivisions of the state having territory in the city,
7-15 including taxes under this section, does not exceed 8.25 percent;
7-16 (C) that is located in a county with a
7-17 population of more than 1,100,000 according to the most recent
7-18 federal decennial census, in which there are more than 29
7-19 incorporated municipalities according to the most recent federal
7-20 decennial census, and in which the combined rate of all sales and
7-21 use taxes imposed by the city, the state, and other political
7-22 subdivisions of the state having territory in the city does not
7-23 exceed 7.75 percent on the date of any election held under or made
7-24 applicable to this section; or
7-25 (D) to which Section 4A of this Act applies.
7-26 (E) Paragraph (C) of this subdivision expires
7-27 September 1, 1999.
8-1 76R8715 WP-F Van de Putte
8-2 COMMITTEE AMENDMENT NO. 2
8-3 Amend HB 3029 by inserting the following appropriately
8-4 numbered section and renumbering subsequent sections appropriately:
8-5 SECTION ____. The Development Corporation Act of 1979
8-6 (Article 5190.6, Vernon's Texas Civil Statutes) is amended by
8-7 adding an appropriately numbered section to read as follows:
8-8 (a) For purposes of this section, a "defense base
8-9 development corporation" means a corporation established under
8-10 Section 4B, Development Corporation Act of 1979 (Article 5190.6,
8-11 Vernon's Texas Civil Statutes), for the purpose of promoting
8-12 projects regarding a military base closure or realignment under the
8-13 Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section
8-14 2687 note) and its subsequent amendments.
8-15 (b) Each of the following acts of a defense base development
8-16 corporation is validated and confirmed as of the date it occurred:
8-17 (1) each act or proceeding of the corporation taken
8-18 before March 1, 1999;
8-19 (2) the election or appointment and each act of a
8-20 director or other official of the corporation who took office
8-21 before the effective date of this Act;
8-22 (3) each act or proceeding relating to a bond or other
8-23 obligation of the corporation authorized before the effective date
8-24 of this Act; and
8-25 (4) each act or proceeding relating to the entity's
8-26 incorporation under the Development Corporation Act of 1979
8-27 (Article 5190.6, Vernon's Texas Civil Statutes).
9-1 (c) This section does not apply to:
9-2 (1) an act, proceeding, bond, or obligation the
9-3 validity of which is the subject of litigation that is pending on
9-4 the effective date of this Act;
9-5 (2) an election or appointment of a director or
9-6 official the validity of which is the subject of litigation that is
9-7 pending on the effective date of this Act;
9-8 (3) an act or proceeding that was void or that, under
9-9 a statute of this state at the time the action or proceeding
9-10 occurred, was a misdemeanor or felony; or
9-11 (4) an act or proceeding that has been held invalid by
9-12 a final judgment of a court.
9-13 Van de Putte
9-14 COMMITTEE AMENDMENT NO. 3
9-15 Amend H.B. No. 3029 by inserting the following appropriately
9-16 numbered section and renumbering subsequent sections appropriately:
9-17 SECTION ____. The Development Corporation Act of 1979
9-18 (Article 5190.6, Vernon's Texas Civil Statutes) is amended by
9-19 adding Section 4___ to read as follows:
9-20 Sec. 4. DEVELOPMENT CORPORATION FOR SPACEPORT FACILITIES.
9-21 (a) In this section:
9-22 (1) "Eligible entity" means any county or combination
9-23 of municipalities and counties.
9-24 (2) "Project" means land, buildings, equipment,
9-25 facilities, and improvements included in the definition of that
9-26 term under Section 2 of this Act, including land, buildings,
9-27 equipment, facilities, and improvements found by the board of
10-1 directors to:
10-2 (A) be required or suitable for use for the
10-3 promotion or development of a spaceport, related area
10-4 transportation facilities, automobile parking facilities, and
10-5 related roads, streets, and water and sewer facilities, and other
10-6 related improvements that enhance any of those items;
10-7 (B) promote or develop new or expanded business
10-8 enterprises relating to a spaceport;
10-9 (C) promote or develop educational programs and
10-10 job training in connection with a spaceport;
10-11 (D) be required or suitable for the promotion of
10-12 development and expansion of affordable housing in connection with
10-13 a spaceport as defined by 42 U.S.C. Section 12745.
10-14 (3) "Spacecraft" includes a satellite.
10-15 (4) "Spaceport" includes:
10-16 (A) an area intended to be used to launch or
10-17 land a spacecraft;
10-18 (B) a spaceport building or facility located on
10-19 an area appurtenant to a launching or landing area;
10-20 (C) an area appurtenant to a launching or
10-21 landing area that is intended for use for a spaceport building or
10-22 facility; and
10-23 (D) a right-of-way related to a launching or
10-24 landing area. building facility, or other area that is appurtenant
10-25 to a launching or landing area.
10-26 (b) An eligible entity may create a corporation under this
10-27 Act governed by this section. The corporation has the powers
11-1 granted by this section and by other sections of this Act and is
11-2 subject to the limitations of a corporation created under other
11-3 provisions of this Act. To the extent of a conflict between this
11-4 section and another provision of this Act, this section prevails.
11-5 The articles of incorporation of a corporation under this section
11-6 must state that the corporation is governed by this section and may
11-7 include within its name any words and phrases specified by the
11-8 eligible entity.
11-9 (c) A corporation may:
11-10 (1) acquire, convey, mortgage, or otherwise dispose of
11-11 property; and
11-12 (2) exercise the power of eminent domain to acquire
11-13 property for a spaceport, including the power to:
11-14 (A) acquire fee title in land condemned;
11-15 (B) relocate or modify a railroad, utility line.
11-16 pipeline, or other facility that may interfere with a spaceport; or
11-17 (C) impose a reasonable restriction on using the
11-18 surface of the property for mineral development if the corporation
11-19 does not own the mineral rights.
11-20 (d) A corporation may not issue a bond or acquire property
11-21 unless a site in the territory of the eligible entity that
11-22 established the corporation has been designated as the site for a
11-23 spaceport.
11-24 (e) Before exercising the power of eminent domain under this
11-25 section, a corporation must obtain a resolution approving the
11-26 proposed condemnation from the governing body of a county or
11-27 municipality in which the property is located. For purposes of
12-1 this section, territory in the extraterritorial jurisdiction of a
12-2 municipality is considered to be in the jurisdiction of the
12-3 municipality. The exercise of the power of eminent domain by the
12-4 corporation is governed by Chapter 21, Property Code.
12-5 (f) A corporation may make an agreement with or accept a
12-6 donation, grant, or loan from any person. A corporation may enter
12-7 into an interlocal contract under Chapter 791, Government Code. A
12-8 corporation may not contract to operate a spaceport unless the
12-9 agreement provides that the person contracting with the corporation
12-10 must assume the corporation's liability for a cause of action
12-11 arising from environmental damage. A corporation may sue and be
12-12 sued.
12-13 (g) A corporation is governed by a board of seven directors.
12-14 For a corporation established by a single county, the commissioners
12-15 court of the county shall appoint the directors. If more than one
12-16 public entity creates the corporation the board must be appointed
12-17 by written agreement between the governing bodies of those
12-18 entities. Each director serves a two-year term that expires June 1
12-19 of each odd-numbered year except that the terms of three or four of
12-20 the initial directors may be for a one-year term so that the terms
12-21 can be staggered for future two-year terms. A board shall elect a
12-22 presiding officer from among its members. A board by rule may
12-23 provide for the election of other officers. The board shall meet
12-24 at least once every three months and at the call of the presiding
12-25 officer or a majority of the directors.
12-26 (h) A board by rule may develop a plan for higher education
12-27 courses and degree programs to be offered at or near a spaceport.
13-1 These planned courses and degree programs must be related to the
13-2 purposes of this chapter. The Texas Aerospace Commission and the
13-3 Texas Higher Education Coordinating Board shall cooperate with and
13-4 advise a board in carrying out this section.
13-5 (i) A corporation may:
13-6 (1) impose a charge for using a spaceport or a service
13-7 the corporation provides;
13-8 (2) issue a bond as provided by this section;
13-9 (3) borrow money;
13-10 (4) loan money to fund a spaceport; and
13-11 (5) invest money under its control in an investment
13-12 permitted by Chapter 2256, Government Code.
13-13 (j) A corporation's property, income, and operations are
13-14 exempt from taxes imposed by the state or a political subdivision
13-15 of the state. In lieu of taxes, a corporation shall make a payment
13-16 to each political subdivision of the state in an amount equal to
13-17 the ad valorem taxes that would be paid on the land of the
13-18 corporation if the land were privately owned. Tangible personal
13-19 property such as a spacecraft or other property necessary to launch
13-20 the spacecraft is not taxable under Section 11.01, Tax Code, if it
13-21 is located in the spaceport. Chapter 151, Tax Code, does not apply
13-22 to tangible personal property purchased by a person for use in a
13-23 spaceport.
13-24 (k) A corporation may issue bonds. The bonds are not an
13-25 obligation or a pledge of the faith and credit of the state, a
13-26 sponsoring entity or other political subdivision or agency of the
13-27 state. A bond issued under this section must:
14-1 (1) be payable solely from the revenue of a spaceport
14-2 developed by the corporation issuing the bond;
14-3 (2) mature not later than 50 years after its date of
14-4 issuance; and
14-5 (3) state on its face that the bond is not an
14-6 obligation of the State of Texas or a political subdivision of the
14-7 state, other than the corporation that issued the bond; and
14-8 (4) be approved by the governing body of each entity
14-9 that established the corporation.
14-10 (l) Section 24 of this Act does not apply to a corporation
14-11 under this section.
14-12 Luna