By Brimer H.B. No. 1710
77R6270 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing of certain economic development projects.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 4B(a-3)(1), Development Corporation Act of
1-5 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
1-6 read as follows:
1-7 (1) A city that creates or has created a corporation
1-8 governed by this section may submit to the voters of the city, at a
1-9 separate election to be held on a uniform election date or at an
1-10 election held under another provision of this Act, including the
1-11 election at which the proposition to initially authorize the
1-12 collection of a sales and use tax for the benefit of the
1-13 corporation is submitted, a ballot proposition that authorizes the
1-14 corporation to use the sales and use tax, including any amount
1-15 previously authorized and collected, for a specific sports venue
1-16 project, including related infrastructure, or for a specific
1-17 category of sports venue projects, including related
1-18 infrastructure. Prior approval of a specific sports venue project
1-19 at an election or completion of a specific sports venue project
1-20 approved at an election does not prohibit a city from seeking voter
1-21 approval of an additional project or category of projects under
1-22 this subsection to be funded from the same sales and use tax that
1-23 is used to fund the previously approved sports venue project. This
1-24 subsection does not affect the authority of a municipality to call
2-1 an election under this section to levy a sales and use tax for any
2-2 purpose authorized by this section after the sales and use tax
2-3 described by this subsection is no longer collected as provided by
2-4 Subsection (i) of this section.
2-5 SECTION 2. Section 4B(h), Development Corporation Act of 1979
2-6 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
2-7 as follows:
2-8 (h) Bonds or other obligations having a maturity not longer
2-9 than 30 years and issued to pay the costs of projects of the types
2-10 added to the definition of that term by Subsection (a) of this
2-11 section may be made payable from any source of funds available to
2-12 the corporation, including the proceeds of a sales and use tax
2-13 imposed under this section. [The principal amount of bonds and
2-14 other obligations that by their terms are payable in whole or in
2-15 part from the sales and use tax, together with the amount of the
2-16 costs of the projects, other than interest on bonds and other
2-17 obligations, for which payment is made in cash directly from the
2-18 proceeds of the tax, may not, in the aggregate, exceed $135
2-19 million.] The bonds or other obligations that by their terms are
2-20 payable from the tax may not be paid in whole or in part from any
2-21 property taxes raised or to be raised by the eligible city and are
2-22 not a debt of and do not give rise to a claim for payment against
2-23 the eligible city except as to sales and use tax revenue held by a
2-24 city and required under this section to be paid over to the
2-25 corporation.
2-26 SECTION 3. This Act takes effect September 1, 2001.