1-1     By:  Duncan                                            S.B. No. 269
 1-2           (In the Senate - Filed January 26, 1999; January 28, 1999,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; February 22, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     February 22, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 269                 By:  Moncrief
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the dissolution of certain economic development
1-11     corporations.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 4B, Development Corporation Act of 1979
1-14     (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-15     adding Subsection (o) to read as follows:
1-16           (o)(1)  The governing body of a city creating a corporation
1-17     under this section shall order an election on the dissolution of
1-18     the corporation on receipt of a petition requesting the election
1-19     that is signed by at least 10 percent of the registered voters of
1-20     the city.  The election must be held on the first available uniform
1-21     election date that occurs on or after the 45th day after the date
1-22     the petition is filed with the city.
1-23                 (2)  At the election the ballot shall be printed to
1-24     permit voting for or against the proposition:  "Dissolution of the
1-25     _____________ (name of corporation)."
1-26                 (3)  If a majority of the votes cast are in favor of
1-27     the dissolution, the corporation shall continue operations only as
1-28     necessary to meet obligations the corporation incurred before the
1-29     date of the election, including paying the principal of and
1-30     interest on bonds.  To the extent practicable, the corporation
1-31     shall liquidate assets of the corporation and apply the proceeds to
1-32     satisfy the corporation's obligations.  After all of the
1-33     obligations are satisfied, any remaining assets of the corporation
1-34     shall be transferred to the city, and the corporation is dissolved.
1-35     The city shall promptly notify the comptroller and the secretary of
1-36     state of the date a corporation is dissolved under this subsection.
1-37                 (4)  A tax imposed under this section may not be
1-38     collected after the last day of the first calendar quarter that
1-39     begins after the city provides notice under Subdivision (3) of this
1-40     section.
1-41                 (5)  If less than a majority of the votes cast at the
1-42     election  favor the dissolution, Subdivisions (3) and (4) of this
1-43     subsection have no effect.
1-44           SECTION 2.  This Act takes effect September 1, 1999.
1-45           SECTION 3.  The importance of this legislation and the
1-46     crowded condition of the calendars in both houses create an
1-47     emergency and an imperative public necessity that the
1-48     constitutional rule requiring bills to be read on three several
1-49     days in each house be suspended, and this rule is hereby suspended.
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