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. 1-50 * * * * *