By Duncan                                              S.B. No. 269
         76R1714 DRH-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the dissolution of certain economic development
 1-3     corporations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 4B, Development Corporation Act of 1979
 1-6     (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
 1-7     adding Subsection (o) to read as follows:
 1-8           (o)(1)  The governing body of a city creating a corporation
 1-9     under this section shall order an election on the dissolution of
1-10     the corporation  on receipt of a petition requesting the election
1-11     that is signed by at least 10 percent of the registered voters of
1-12     the city.  The election must be held on the first available uniform
1-13     election date that occurs on or after the 45th day after the date
1-14     the petition is filed with the city.
1-15                 (2)  At the election the ballot shall be printed to
1-16     permit voting for or against the proposition:  "Dissolution of the
1-17     _____________ (name of corporation)."
1-18                 (3)  If a majority of the votes cast are in favor of
1-19     the dissolution, the corporation shall continue operations only as
1-20     necessary to meet obligations the corporation incurred before the
1-21     date of the election, including paying the principal of and
1-22     interest on bonds.  To the extent practicable, the corporation
1-23     shall liquidate assets of the corporation and apply the proceeds to
1-24     satisfy the corporation's obligations.  After all of the
 2-1     obligations are satisfied, any remaining assets of the corporation
 2-2     shall be transferred to the city, and the corporation is dissolved.
 2-3     The city shall promptly notify the comptroller of the date a
 2-4     corporation is dissolved under this subsection.
 2-5                 (4)  A tax imposed under this section may not be
 2-6     collected after the last day of the first calendar quarter that
 2-7     begins after the city provides notice under Subdivision (3).
 2-8                 (5)  If less than a majority of the votes cast at the
 2-9     election  favor the dissolution, Subdivisions (3) and (4) of this
2-10     subsection have no effect.
2-11           SECTION 2.  This Act takes effect September 1, 1999.
2-12           SECTION 3.  The importance of this legislation and the
2-13     crowded condition of the calendars in both houses create an
2-14     emergency and an imperative public necessity that the
2-15     constitutional rule requiring bills to be read on three several
2-16     days in each house be suspended, and this rule is hereby suspended.