By Oliveira 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.