By Seaman                                             H.B. No. 1723
         77R4963 ATP-D                           
                                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:
 2-1                 (1)  a member of the commissioners court of the
 2-2     county;
 2-3                 (2)  a superintendent, or a representative of a
 2-4     superintendent, from a school district located primarily in the
 2-5     county;
 2-6                 (3)  an employee of a public community college that
 2-7     serves the county;
 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 shall:
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; and
 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;
 3-8                 (2)  impose a fee for participation in a program and
 3-9     may administer any funds collected for a program under this
3-10     chapter; and
3-11                 (3)  develop partnerships between businesses, public
3-12     schools, institutions of higher education, and the Texas
3-13     Engineering Extension Service.
3-14           (b)  To the extent the board determines necessary to
3-15     administer its functions, the board may cooperate with:
3-16                 (1)  a local workforce development board;
3-17                 (2)  the Texas Agricultural Extension Service;
3-18                 (3)  an economic development corporation; and
3-19                 (4)  an industrial development corporation.
3-20              (Sections 386.023-386.040 reserved for expansion
3-21                      SUBCHAPTER C.  SALES AND USE TAX
3-22           Sec. 386.041.  SALES AND USE TAX AUTHORIZED. (a)  A county
3-23     may impose a sales and use tax at the rate of one-eighth of one
3-24     percent in the county for the benefit of a program under this
3-25     chapter if a majority of the votes cast at an election held for
3-26     that purpose favor the imposition of the tax.
3-27           (b)  A county may not impose a sales and use tax under this
 4-1     subchapter if the adoption of the tax under this subchapter would
 4-2     result in a combined tax rate of all local sales and use taxes of
 4-3     more than two percent in any location in the county.
 4-4           Sec. 386.042.  ELECTION. (a)  The commissioners court may
 4-5     order an election to impose a sales and use tax under this
 4-6     subchapter.
 4-7           (b)  The election shall be held on the first uniform election
 4-8     date that occurs on or after the 45th day following the date the
 4-9     commissioners court orders the election.
4-10           (c)  At an election to adopt the tax, the ballot shall be
4-11     prepared to permit voting for or against the proposition: "The
4-12     adoption of a local sales and use tax  at the rate of one-eighth of
4-13     one percent to provide funding for the operation of a program for
4-14     rural economic assistance for career training in ____  (name of
4-15     county)."
4-16           (d)  If a majority of the votes received at the election
4-17     favor the proposition, the tax is adopted.
4-18           Sec. 386.043.  TAX CODE APPLICABLE. (a)  Chapter 323, Tax
4-19     Code, governs the imposition, computation, administration,
4-20     collection, and remittance of a tax authorized under this chapter
4-21     except as inconsistent with this chapter.
4-22           (b)  Section 323.101(b), Tax Code, does not apply to a tax
4-23     authorized by this chapter.
4-24           Sec. 386.044.  IMPOSITION OF TAX. (a)  If the county adopts a
4-25     tax under this subchapter, a tax is imposed on the receipts from
4-26     the sale at retail of taxable items in the county at the rate of
4-27     one-eighth of one percent during the period that the tax is
 5-1     effective in the county.
 5-2           (b)  There is also imposed an excise tax on the use, storage,
 5-3     or other consumption in the district of tangible personal property
 5-4     purchased, leased, or rented from a retailer during the period that
 5-5     the tax is effective in the district.  The rate of the excise tax
 5-6     is the same as the rate of the sales tax portion of the tax and is
 5-7     applied to the sale price of the tangible personal property.
 5-8           Sec. 386.045.  USE OF REVENUE. Revenue from a tax imposed
 5-9     under this subchapter may be used only to operate a program under
5-10     this chapter in the county.  The board may award grants for program
5-11     purposes to local businesses, school districts, or other entities
5-12     with revenue from a tax imposed under this subchapter.  The board
5-13     shall contract with the grant recipient to ensure that the program
5-14     purposes are promoted by the grant.
5-15           Sec. 386.046.  ABOLITION OF TAX. (a)  The commissioners court
5-16     may:
5-17                 (1)  call an election to abolish the tax; or
5-18                 (2)  abolish the tax on finding that the purposes for
5-19     which the tax was imposed under this subchapter have been
5-20     accomplished.
5-21           (b)  At an election to abolish the tax, the ballot shall be
5-22     prepared to permit voting for or against the proposition: "The
5-23     abolition of a local sales and use tax for the operation of a
5-24     program for rural economic assistance for career training in ____
5-25     (name of county)."
5-26           (c)  If a majority of the votes received at the election
5-27     favor the proposition, the tax is abolished.
 6-1           Sec. 386.047.  EFFECTIVE DATE OF TAX. (a)  The adoption or
 6-2     abolition of a tax under this subchapter takes effect on the first
 6-3     day of the first calendar quarter occurring after the expiration of
 6-4     the first complete quarter occurring after the date the comptroller
 6-5     receives a notice of the order abolishing the tax or the results of
 6-6     the election adopting or abolishing the tax.
 6-7           (b)  If the comptroller determines that an effective date
 6-8     provided by Subsection (a)  will occur before the comptroller can
 6-9     reasonably take the action required to begin collecting the tax or
6-10     to implement the abolition of the tax, the effective date may be
6-11     extended by the comptroller until the first day of the next
6-12     succeeding calendar quarter.
6-13              (Sections 386.048-386.060 reserved for expansion
6-14                         SUBCHAPTER D.  PROPERTY TAX
6-15           Sec. 386.061.  PROPERTY TAX AUTHORIZED. For the benefit of a
6-16     program under this chapter, the commissioners court may:
6-17                 (1)  impose a new property tax in the county at a rate
6-18     not to exceed three cents on the $100 valuation of taxable
6-19     property;
6-20                 (2)  increase the property tax rate in the county by an
6-21     amount not to exceed three cents on the $100 valuation of taxable
6-22     property; or
6-23                 (3)  use revenue collected from a county property tax
6-24     imposed under another law, in an amount not to exceed three cents
6-25     on the $100 valuation of property taxed.
6-26           Sec. 386.062.  USE OF PROPERTY TAX REVENUE. Revenue from a
6-27     tax imposed under this subchapter may be used only as provided by
 7-1     Section 386.045 for revenue collected under Subchapter C.
 7-2           SECTION 2.  This Act takes effect immediately if it receives
 7-3     a vote of two-thirds of all the members elected to each house, as
 7-4     provided by Section 39, Article III, Texas Constitution.  If this
 7-5     Act does not receive the vote necessary for immediate effect, this
 7-6     Act takes effect September 1, 2001.