By Seaman, Keffer, Turner of Coleman,                 H.B. No. 1723
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of a county employment development board
 1-3     in certain counties to develop programs for rural economic
 1-4     assistance for career training; authorizing a tax.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subtitle B, Title 12, Local Government Code, is
 1-7     amended by adding Chapter 386 to read as follows:
 1-8         CHAPTER 386.  COUNTY EMPLOYMENT DEVELOPMENT BOARD FOR RURAL
 1-9                                  COUNTIES
1-10                      SUBCHAPTER A.  GENERAL PROVISIONS
1-11           Sec. 386.001.  DEFINITIONS. In this chapter:
1-12                 (1)  "Board" means a county employment development
1-13     board.
1-14                 (2)  "Rural county" means a county with a population of
1-15     50,000 or less.
1-16           Sec. 386.002.  CREATION IN RURAL COUNTY. The commissioners
1-17     court of a rural county may establish a county employment
1-18     development board.
1-19              (Sections 386.003-386.020 reserved for expansion
1-20       SUBCHAPTER B.  COUNTY EMPLOYMENT DEVELOPMENT BOARD; POWERS AND
1-21                                   DUTIES
1-22           Sec. 386.021.  BOARD MEMBERSHIP. (a)  The board consists of
1-23     9, 11, 13, or 15 members appointed by the commissioners court.
1-24           (b)  The board must include:
1-25                 (1)  a member of the commissioners court of the
 2-1     county;
 2-2                 (2)  a superintendent, or a representative of a
 2-3     superintendent, from a school district located primarily in the
 2-4     county;
 2-5                 (3)  an employee of a public community college that
 2-6     serves the  county, or a person with experience in workforce
 2-7     training, economic development, or higher education;
 2-8                 (4)  an official from another governmental entity in
 2-9     the county;
2-10                 (5)  at least five members of the county's business
2-11     community; and
2-12                 (6)  any other person whose presence on the board will
2-13     further the purposes of this chapter.
2-14           (c)  A majority of the board membership must be
2-15     representatives of the county's business community.
2-16           (d)  A member of the board serves a two-year term expiring
2-17     February 1 of each odd-numbered year.
2-18           (e)  The board may elect a member to serve as the presiding
2-19     officer.
2-20           Sec. 386.022.  BOARD POWERS AND DUTIES. (a)  The board may:
2-21                 (1)  establish and operate one or more programs in the
2-22     county that provide economic assistance for career training, that
2-23     promote adult job training, economic development, and career and
2-24     technology education in the county, and that may include efforts
2-25     to:
2-26                       (A)  develop continuing education, including job
2-27     training and skills enhancement;
 3-1                       (B)  assist public schools in the creation of
 3-2     career and technology education programs;
 3-3                       (C)  assist businesses in the creation of
 3-4     employment opportunities through job training;
 3-5                       (D)  assist local workforce development boards in
 3-6     achieving their job training and skills development goals at the
 3-7     county level; and
 3-8                       (E)  develop and fund, or assist institutions of
 3-9     higher education in developing and funding, training and
3-10     educational programs for nurses;
3-11                 (2)  develop partnerships between businesses, public
3-12     schools, institutions of higher education, and the Texas
3-13     Engineering Extension Service;
3-14                 (3)  employ necessary personnel; and
3-15                 (4)  contract with a private person or a political
3-16     subdivision of this state.
3-17           (b)  To the extent the board determines necessary to
3-18     administer its functions, the board may cooperate with:
3-19                 (1)  a local workforce development board;
3-20                 (2)  the Texas Agricultural Extension Service;
3-21                 (3)  an economic development corporation;
3-22                 (4)  an industrial development corporation; and
3-23                 (5)  a partnership established under Section 311.005,
3-24     Labor Code, between a local workforce development board and another
3-25     local or regional entity.
3-26           (c)  The board may impose a fee for participation in a
3-27     program and may administer any funds collected for a program under
 4-1     this chapter.  The fee authorized by this section is in addition to
 4-2     any tax authorized by this chapter.
 4-3           (d)  The board may adopt rules to accomplish the goals of
 4-4     this chapter.
 4-5           (e)  The board shall contract with the county auditor to
 4-6     review the board's finances every fiscal year.
 4-7           Sec. 386.023.  OPEN MEETINGS AND OPEN RECORDS. Chapters 551
 4-8     and 552, Government Code, apply to the board.
 4-9              (Sections 386.024-386.040 reserved for expansion
4-10                      SUBCHAPTER C.  SALES AND USE TAX
4-11           Sec. 386.041.  SALES AND USE TAX AUTHORIZED. (a)  A county
4-12     may impose a sales and use tax at the rate of one-eighth of one
4-13     percent in the county for the benefit of a program under this
4-14     chapter if a majority of the votes cast at an election held for
4-15     that purpose favor the imposition of the tax.
4-16           (b)  A county may not impose a sales and use tax under this
4-17     subchapter if the adoption of the tax under this subchapter would
4-18     result in a combined tax rate of all local sales and use taxes of
4-19     more than two percent in any location in the county.
4-20           Sec. 386.042.  ELECTION. (a)  The commissioners court may
4-21     order an election to impose a sales and use tax under this
4-22     subchapter.
4-23           (b)  The election shall be held on the first uniform election
4-24     date that occurs on or after the 45th day following the date the
4-25     commissioners court orders the election.
4-26           (c)  At an election to adopt the tax, the ballot shall be
4-27     prepared to permit voting for or against the proposition: "The
 5-1     adoption of a local sales and use tax  at the rate of one-eighth of
 5-2     one percent to provide funding for the operation of a program for
 5-3     rural economic assistance for career training in ____  (name of
 5-4     county)."
 5-5           (d)  If a majority of the votes received at the election
 5-6     favor the proposition, the tax is adopted.
 5-7           Sec. 386.043.  TAX CODE APPLICABLE. (a)  Chapter 323, Tax
 5-8     Code, governs the imposition, computation, administration,
 5-9     collection, and remittance of a tax authorized under this chapter
5-10     except as inconsistent with this chapter.
5-11           (b)  Section 323.101(b), Tax Code, does not apply to a tax
5-12     authorized by this chapter.
5-13           Sec. 386.044.  IMPOSITION OF TAX. (a)  If the county adopts a
5-14     tax under this subchapter, a tax is imposed on the receipts from
5-15     the sale at retail of taxable items in the county at the rate of
5-16     one-eighth of one percent during the period that the tax is
5-17     effective in the county.
5-18           (b)  There is also imposed an excise tax on the use, storage,
5-19     or other consumption in the county of tangible personal property
5-20     purchased, leased, or rented from a retailer during the period that
5-21     the tax is effective in the county.  The rate of the excise tax is
5-22     the same as the rate of the sales tax portion of the tax and is
5-23     applied to the sale price of the tangible personal property.
5-24           Sec. 386.045.  USE OF REVENUE. Revenue from a tax imposed
5-25     under this subchapter may be used only to operate a program under
5-26     this chapter in the county.  The board may award grants for program
5-27     purposes to local businesses, school districts, or other entities
 6-1     with revenue from a tax imposed under this subchapter.  The board
 6-2     shall contract with the grant recipient to ensure that the program
 6-3     purposes are promoted by the grant.
 6-4           Sec. 386.046.  ABOLITION OF TAX. (a)  The commissioners court
 6-5     may:
 6-6                 (1)  call an election to abolish the tax; or
 6-7                 (2)  abolish the tax on finding that the purposes for
 6-8     which the tax was imposed under this subchapter have been
 6-9     accomplished.
6-10           (b)  At an election to abolish the tax, the ballot shall be
6-11     prepared to permit voting for or against the proposition: "The
6-12     abolition of a local sales and use tax for the operation of a
6-13     program for rural economic assistance for career training in ____
6-14     (name of county)."
6-15           (c)  If a majority of the votes received at the election
6-16     favor the proposition, the tax is abolished.
6-17           Sec. 386.047.  EFFECTIVE DATE OF TAX. (a)  The adoption or
6-18     abolition of a tax under this subchapter takes effect on the first
6-19     day of the first calendar quarter occurring after the expiration of
6-20     the first complete quarter occurring after the date the comptroller
6-21     receives a notice of the order abolishing the tax or the results of
6-22     the election adopting or abolishing the tax.
6-23           (b)  If the comptroller determines that an effective date
6-24     provided by Subsection (a)  will occur before the comptroller can
6-25     reasonably take the action required to begin collecting the tax or
6-26     to implement the abolition of the tax, the effective date may be
6-27     extended by the comptroller until the first day of the next
 7-1     succeeding calendar quarter.
 7-2           Sec. 386.048.  SALES TAX NOT EXCLUSIVE. The sales and use tax
 7-3     authorized by this subchapter is in addition to any other tax or
 7-4     fee authorized by this chapter.
 7-5              (Sections 386.049-386.060 reserved for expansion
 7-6                         SUBCHAPTER D.  PROPERTY TAX
 7-7           Sec. 386.061.  PROPERTY TAX AUTHORIZED. For the benefit of a
 7-8     program under this chapter, the commissioners court may:
 7-9                 (1)  impose a new property tax in the county at a rate
7-10     not to exceed three cents on the $100 valuation of taxable
7-11     property;
7-12                 (2)  increase the property tax rate in the county by an
7-13     amount not to exceed three cents on the $100 valuation of taxable
7-14     property; or
7-15                 (3)  use revenue collected from a county property tax
7-16     imposed under another law, in an amount not to exceed three cents
7-17     on the $100 valuation of property taxed.
7-18           Sec. 386.062.  USE OF PROPERTY TAX REVENUE. Revenue from a
7-19     tax imposed under this subchapter may be used only as provided by
7-20     Section 386.045 for revenue collected under Subchapter C.
7-21           Sec. 386.063.  PROPERTY TAX NOT EXCLUSIVE. The property tax
7-22     authorized by this subchapter is in addition to any other tax or
7-23     fee authorized by this chapter.
7-24           SECTION 2. Sections 4A(f) and (m), Development Corporation
7-25     Act of 1979  (Article 5190.6, Vernon's Texas Civil Statutes), are
7-26     amended to read as follows:
7-27           (f)  On receipt of the proceeds of the sales and use tax
 8-1     imposed under this section from the comptroller, the city shall
 8-2     deliver the proceeds to the corporation to use in carrying out its
 8-3     functions.  Tax proceeds may be used to pay the principal of,
 8-4     interest on, and other costs relating to the corporation's bonds,
 8-5     but neither the bonds nor any instrument related to the bonds may
 8-6     give a bondholder a right to demand payment from tax proceeds in
 8-7     excess of those collected from the tax imposed by this section. Tax
 8-8     proceeds may also be used to:
 8-9                 (1)  pay expenses incurred by the corporation under
8-10     Section 38 of this Act relating to job training; or
8-11                 (2)  provide funding to a county employment development
8-12     board created under Chapter 386, Local Government Code, for any
8-13     purpose authorized by that chapter.
8-14           (m)  In an election to adopt the tax under this section, the
8-15     ballot shall be printed to provide for voting for or against the
8-16     proposition:  "The adoption of a sales and use tax for the
8-17     promotion and development of new and expanded business enterprises
8-18     and job or career training at the rate of __________ of one
8-19     percent" (one-eighth, one-fourth, three-eighths, or one-half to be
8-20     inserted as appropriate).
8-21           SECTION 3. Section 4B(g), Development Corporation Act of 1979
8-22     (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
8-23     as follows:
8-24           (g)  On receipt of the proceeds of the sales and use tax
8-25     imposed under this section from the comptroller, the eligible city
8-26     shall deliver the proceeds to the corporation.  Tax proceeds may be
8-27     used to:
 9-1                 (1)  pay the costs of projects of the types added to
 9-2     the definition of that term by Subsection (a)  of this section;
 9-3     [or]
 9-4                 (2)  pay the principal of, interest on, and other costs
 9-5     relating to bonds or other obligations issued by the corporation to
 9-6     pay the costs of the projects or to refund bonds or other
 9-7     obligations issued to pay the costs of projects; or
 9-8                 (3)  provide funding to a county employment development
 9-9     board created under Chapter 386, Local Government Code, for any
9-10     purpose authorized by that chapter.
9-11           SECTION 4. The changes in law made by this Act to Sections
9-12     4A(f) and 4B(g), Development Corporation Act of 1979 (Article
9-13     5190.6, Vernon's Texas Civil Statutes), apply to any tax proceeds
9-14     used by a development corporation on or after the effective date of
9-15     this Act, without regard to when the tax was imposed or collected.
9-16           SECTION 5.  This Act takes effect immediately if it receives
9-17     a vote of two-thirds of all the members elected to each house, as
9-18     provided by Section 39, Article III, Texas Constitution.  If this
9-19     Act does not receive the vote necessary for immediate effect, this
9-20     Act takes effect September 1, 2001.