1-1 By: Seaman, et al. (Senate Sponsor - Armbrister) H.B. No. 1723
1-2 (In the Senate - Received from the House April 9, 2001;
1-3 April 9, 2001, read first time and referred to Committee on
1-4 Business and Commerce; May 10, 2001, reported favorably by the
1-5 following vote: Yeas 6, Nays 0; May 10, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the creation of a county employment development board
1-9 in certain counties to develop programs for rural economic
1-10 assistance for career training; authorizing a tax.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subtitle B, Title 12, Local Government Code, is
1-13 amended by adding Chapter 386 to read as follows:
1-14 CHAPTER 386. COUNTY EMPLOYMENT DEVELOPMENT BOARD FOR RURAL
1-15 COUNTIES
1-16 SUBCHAPTER A. GENERAL PROVISIONS
1-17 Sec. 386.001. DEFINITIONS. In this chapter:
1-18 (1) "Board" means a county employment development
1-19 board.
1-20 (2) "Rural county" means a county with a population of
1-21 50,000 or less.
1-22 Sec. 386.002. CREATION IN RURAL COUNTY. The commissioners
1-23 court of a rural county may establish a county employment
1-24 development board.
1-25 (Sections 386.003-386.020 reserved for expansion
1-26 SUBCHAPTER B. COUNTY EMPLOYMENT DEVELOPMENT BOARD; POWERS AND
1-27 DUTIES
1-28 Sec. 386.021. BOARD MEMBERSHIP. (a) The board consists of
1-29 9, 11, 13, or 15 members appointed by the commissioners court.
1-30 (b) The board must include:
1-31 (1) a member of the commissioners court of the
1-32 county;
1-33 (2) a superintendent, or a representative of a
1-34 superintendent, from a school district located primarily in the
1-35 county;
1-36 (3) an employee of a public community college that
1-37 serves the county, or a person with experience in workforce
1-38 training, economic development, or higher education;
1-39 (4) an official from another governmental entity in
1-40 the county;
1-41 (5) at least five members of the county's business
1-42 community; and
1-43 (6) any other person whose presence on the board will
1-44 further the purposes of this chapter.
1-45 (c) A majority of the board membership must be
1-46 representatives of the county's business community.
1-47 (d) A member of the board serves a two-year term expiring
1-48 February 1 of each odd-numbered year.
1-49 (e) The board may elect a member to serve as the presiding
1-50 officer.
1-51 Sec. 386.022. BOARD POWERS AND DUTIES. (a) The board may:
1-52 (1) establish and operate one or more programs in the
1-53 county that provide economic assistance for career training, that
1-54 promote adult job training, economic development, and career and
1-55 technology education in the county, and that may include efforts
1-56 to:
1-57 (A) develop continuing education, including job
1-58 training and skills enhancement;
1-59 (B) assist public schools in the creation of
1-60 career and technology education programs;
1-61 (C) assist businesses in the creation of
1-62 employment opportunities through job training;
1-63 (D) assist local workforce development boards in
1-64 achieving their job training and skills development goals at the
2-1 county level; and
2-2 (E) develop and fund, or assist institutions of
2-3 higher education in developing and funding, training and
2-4 educational programs for nurses;
2-5 (2) develop partnerships between businesses, public
2-6 schools, institutions of higher education, and the Texas
2-7 Engineering Extension Service;
2-8 (3) employ necessary personnel; and
2-9 (4) contract with a private person or a political
2-10 subdivision of this state.
2-11 (b) To the extent the board determines necessary to
2-12 administer its functions, the board may cooperate with:
2-13 (1) a local workforce development board;
2-14 (2) the Texas Agricultural Extension Service;
2-15 (3) an economic development corporation;
2-16 (4) an industrial development corporation; and
2-17 (5) a partnership established under Section 311.005,
2-18 Labor Code, between a local workforce development board and another
2-19 local or regional entity.
2-20 (c) The board may impose a fee for participation in a
2-21 program and may administer any funds collected for a program under
2-22 this chapter. The fee authorized by this section is in addition to
2-23 any tax authorized by this chapter.
2-24 (d) The board may adopt rules to accomplish the goals of
2-25 this chapter.
2-26 (e) The board shall contract with the county auditor to
2-27 review the board's finances every fiscal year.
2-28 Sec. 386.023. OPEN MEETINGS AND OPEN RECORDS. Chapters 551
2-29 and 552, Government Code, apply to the board.
2-30 (Sections 386.024-386.040 reserved for expansion
2-31 SUBCHAPTER C. SALES AND USE TAX
2-32 Sec. 386.041. SALES AND USE TAX AUTHORIZED. (a) A county
2-33 may impose a sales and use tax at the rate of one-eighth of one
2-34 percent in the county for the benefit of a program under this
2-35 chapter if a majority of the votes cast at an election held for
2-36 that purpose favor the imposition of the tax.
2-37 (b) A county may not impose a sales and use tax under this
2-38 subchapter if the adoption of the tax under this subchapter would
2-39 result in a combined tax rate of all local sales and use taxes of
2-40 more than two percent in any location in the county.
2-41 Sec. 386.042. ELECTION. (a) The commissioners court may
2-42 order an election to impose a sales and use tax under this
2-43 subchapter.
2-44 (b) The election shall be held on the first uniform election
2-45 date that occurs on or after the 45th day following the date the
2-46 commissioners court orders the election.
2-47 (c) At an election to adopt the tax, the ballot shall be
2-48 prepared to permit voting for or against the proposition: "The
2-49 adoption of a local sales and use tax at the rate of one-eighth of
2-50 one percent to provide funding for the operation of a program for
2-51 rural economic assistance for career training in ____ (name of
2-52 county)."
2-53 (d) If a majority of the votes received at the election
2-54 favor the proposition, the tax is adopted.
2-55 Sec. 386.043. TAX CODE APPLICABLE. (a) Chapter 323, Tax
2-56 Code, governs the imposition, computation, administration,
2-57 collection, and remittance of a tax authorized under this chapter
2-58 except as inconsistent with this chapter.
2-59 (b) Section 323.101(b), Tax Code, does not apply to a tax
2-60 authorized by this chapter.
2-61 Sec. 386.044. IMPOSITION OF TAX. (a) If the county adopts a
2-62 tax under this subchapter, a tax is imposed on the receipts from
2-63 the sale at retail of taxable items in the county at the rate of
2-64 one-eighth of one percent during the period that the tax is
2-65 effective in the county.
2-66 (b) There is also imposed an excise tax on the use, storage,
2-67 or other consumption in the county of tangible personal property
2-68 purchased, leased, or rented from a retailer during the period that
2-69 the tax is effective in the county. The rate of the excise tax is
3-1 the same as the rate of the sales tax portion of the tax and is
3-2 applied to the sale price of the tangible personal property.
3-3 Sec. 386.045. USE OF REVENUE. Revenue from a tax imposed
3-4 under this subchapter may be used only to operate a program under
3-5 this chapter in the county. The board may award grants for program
3-6 purposes to local businesses, school districts, or other entities
3-7 with revenue from a tax imposed under this subchapter. The board
3-8 shall contract with the grant recipient to ensure that the program
3-9 purposes are promoted by the grant.
3-10 Sec. 386.046. ABOLITION OF TAX. (a) The commissioners court
3-11 may:
3-12 (1) call an election to abolish the tax; or
3-13 (2) abolish the tax on finding that the purposes for
3-14 which the tax was imposed under this subchapter have been
3-15 accomplished.
3-16 (b) At an election to abolish the tax, the ballot shall be
3-17 prepared to permit voting for or against the proposition: "The
3-18 abolition of a local sales and use tax for the operation of a
3-19 program for rural economic assistance for career training in ____
3-20 (name of county)."
3-21 (c) If a majority of the votes received at the election
3-22 favor the proposition, the tax is abolished.
3-23 Sec. 386.047. EFFECTIVE DATE OF TAX. (a) The adoption or
3-24 abolition of a tax under this subchapter takes effect on the first
3-25 day of the first calendar quarter occurring after the expiration of
3-26 the first complete quarter occurring after the date the comptroller
3-27 receives a notice of the order abolishing the tax or the results of
3-28 the election adopting or abolishing the tax.
3-29 (b) If the comptroller determines that an effective date
3-30 provided by Subsection (a) will occur before the comptroller can
3-31 reasonably take the action required to begin collecting the tax or
3-32 to implement the abolition of the tax, the effective date may be
3-33 extended by the comptroller until the first day of the next
3-34 succeeding calendar quarter.
3-35 Sec. 386.048. SALES TAX NOT EXCLUSIVE. The sales and use tax
3-36 authorized by this subchapter is in addition to any other tax or
3-37 fee authorized by this chapter.
3-38 (Sections 386.049-386.060 reserved for expansion
3-39 SUBCHAPTER D. PROPERTY TAX
3-40 Sec. 386.061. PROPERTY TAX AUTHORIZED. For the benefit of a
3-41 program under this chapter, the commissioners court may:
3-42 (1) impose a new property tax in the county at a rate
3-43 not to exceed three cents on the $100 valuation of taxable
3-44 property;
3-45 (2) increase the property tax rate in the county by an
3-46 amount not to exceed three cents on the $100 valuation of taxable
3-47 property; or
3-48 (3) use revenue collected from a county property tax
3-49 imposed under another law, in an amount not to exceed three cents
3-50 on the $100 valuation of property taxed.
3-51 Sec. 386.062. USE OF PROPERTY TAX REVENUE. Revenue from a
3-52 tax imposed under this subchapter may be used only as provided by
3-53 Section 386.045 for revenue collected under Subchapter C.
3-54 Sec. 386.063. PROPERTY TAX NOT EXCLUSIVE. The property tax
3-55 authorized by this subchapter is in addition to any other tax or
3-56 fee authorized by this chapter.
3-57 SECTION 2. Sections 4A(f) and (m), Development Corporation
3-58 Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), are
3-59 amended to read as follows:
3-60 (f) On receipt of the proceeds of the sales and use tax
3-61 imposed under this section from the comptroller, the city shall
3-62 deliver the proceeds to the corporation to use in carrying out its
3-63 functions. Tax proceeds may be used to pay the principal of,
3-64 interest on, and other costs relating to the corporation's bonds,
3-65 but neither the bonds nor any instrument related to the bonds may
3-66 give a bondholder a right to demand payment from tax proceeds in
3-67 excess of those collected from the tax imposed by this section. Tax
3-68 proceeds may also be used to:
3-69 (1) pay expenses incurred by the corporation under
4-1 Section 38 of this Act relating to job training; or
4-2 (2) provide funding to a county employment development
4-3 board created under Chapter 386, Local Government Code, for any
4-4 purpose authorized by that chapter.
4-5 (m) In an election to adopt the tax under this section, the
4-6 ballot shall be printed to provide for voting for or against the
4-7 proposition: "The adoption of a sales and use tax for the
4-8 promotion and development of new and expanded business enterprises
4-9 and job or career training at the rate of __________ of one
4-10 percent" (one-eighth, one-fourth, three-eighths, or one-half to be
4-11 inserted as appropriate).
4-12 SECTION 3. Section 4B(g), Development Corporation Act of 1979
4-13 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
4-14 as follows:
4-15 (g) On receipt of the proceeds of the sales and use tax
4-16 imposed under this section from the comptroller, the eligible city
4-17 shall deliver the proceeds to the corporation. Tax proceeds may be
4-18 used to:
4-19 (1) pay the costs of projects of the types added to
4-20 the definition of that term by Subsection (a) of this section;
4-21 [or]
4-22 (2) pay the principal of, interest on, and other costs
4-23 relating to bonds or other obligations issued by the corporation to
4-24 pay the costs of the projects or to refund bonds or other
4-25 obligations issued to pay the costs of projects; or
4-26 (3) provide funding to a county employment development
4-27 board created under Chapter 386, Local Government Code, for any
4-28 purpose authorized by that chapter.
4-29 SECTION 4. The changes in law made by this Act to Sections
4-30 4A(f) and 4B(g), Development Corporation Act of 1979 (Article
4-31 5190.6, Vernon's Texas Civil Statutes), apply to any tax proceeds
4-32 used by a development corporation on or after the effective date of
4-33 this Act, without regard to when the tax was imposed or collected.
4-34 SECTION 5. This Act takes effect immediately if it receives
4-35 a vote of two-thirds of all the members elected to each house, as
4-36 provided by Section 39, Article III, Texas Constitution. If this
4-37 Act does not receive the vote necessary for immediate effect, this
4-38 Act takes effect September 1, 2001.
4-39 * * * * *