By: Duncan S.B. No. 269
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the abolishment of certain taxes imposed by and the
1-2 dissolution of certain economic development corporations.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4B, Development Corporation Act of 1979
1-5 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-6 amending Subsection (e), as amended by Chapter 1022, Acts of the
1-7 73rd Legislature, Regular Session, 1993, and adding Subsections
1-8 (e-1) and (o) to read as follows:
1-9 (e) The rate of a tax adopted under this section must be
1-10 one-eighth, one-fourth, three-eighths, or one-half of one percent.
1-11 The ballot proposition at the election held to adopt the tax must
1-12 specify the rate of the tax to be adopted. A corporation that
1-13 holds an election to reduce or abolish a tax imposed under Section
1-14 4A of this Act may, in the same or in a separate proposition on the
1-15 same ballot, adopt a tax under this section. If an eligible city
1-16 adopts the tax, a tax is imposed on the receipts from the sale at
1-17 retail of taxable items within the eligible city at the rate
1-18 approved at the election. There is also imposed an excise tax on
1-19 the use, storage, or other consumption within the eligible city of
1-20 tangible personal property purchased, leased, or rented from a
1-21 retailer during the period that the tax is effective within the
1-22 eligible city. The rate of the excise tax is the same as the rate
1-23 of the sales tax portion of the tax and is applied to the sale
1-24 price of the tangible personal property.
2-1 (e-1) Notwithstanding any other provision of this section,
2-2 if a city dissolves a corporation created under Section 4A of this
2-3 Act and creates a corporation under this section, a person serving
2-4 as a director of the corporation created under Section 4A of this
2-5 Act at the time of dissolution may serve on the board of directors
2-6 of the corporation created under this section.
2-7 (o)(1) The governing body of a city creating a corporation
2-8 under this section shall order an election on the dissolution of
2-9 the corporation on receipt of a petition requesting the election
2-10 that is signed by at least 10 percent of the registered voters of
2-11 the city. The election must be held on the first available uniform
2-12 election date that occurs on or after the 45th day after the date
2-13 the petition is filed with the city.
2-14 (2) At the election the ballot shall be printed to
2-15 permit voting for or against the proposition: "Dissolution of the
2-16 _____________ (name of corporation)."
2-17 (3) If a majority of the votes cast are in favor of
2-18 the dissolution, the corporation shall continue operations only as
2-19 necessary to meet obligations the corporation incurred before the
2-20 date of the election, including paying the principal of and
2-21 interest on bonds. To the extent practicable, the corporation
2-22 shall liquidate assets of the corporation and apply the proceeds to
2-23 satisfy the corporation's obligations. After all of the
2-24 obligations are satisfied, any remaining assets of the corporation
2-25 shall be transferred to the city, and the corporation is dissolved.
2-26 The city shall promptly notify the comptroller and the secretary of
3-1 state of the date a corporation is dissolved under this subsection.
3-2 (4) A tax imposed under this section may not be
3-3 collected after the last day of the first calendar quarter that
3-4 begins after the city provides notice under Subdivision (3) of this
3-5 section.
3-6 (5) If less than a majority of the votes cast at the
3-7 election favor the dissolution, Subdivisions (3) and (4) of this
3-8 subsection have no effect.
3-9 SECTION 2. Subsection (o), Section 4B, Development
3-10 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
3-11 Statutes), as added by this Act applies only to a corporation
3-12 created on or after the effective date of this Act. A corporation
3-13 created before the effective date of this Act is governed by the
3-14 law as it existed immediately before the effective date of this
3-15 Act, and that law is continued in effect for that purpose.
3-16 SECTION 3. This Act takes effect September 1, 1999.
3-17 SECTION 4. The importance of this legislation and the
3-18 crowded condition of the calendars in both houses create an
3-19 emergency and an imperative public necessity that the
3-20 constitutional rule requiring bills to be read on three several
3-21 days in each house be suspended, and this rule is hereby suspended.