By: Armbrister S.B. No. 1262
A BILL TO BE ENTITLED
AN ACT
relating to the use of certain incentives by municipalities for
certain economic development.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 380.002, Local Government Code, is
amended by adding Subsection (d) to read as follows:
(d) A municipality may not provide a grant of public money
pursuant to the provisions of this chapter for a business
enterprise whose business consists primarily of purchasing taxable
items using a resale certificate and then reselling those items to a
related party. For purposes of this section, a "related party" is
one that owns at least 80 percent of the business enterprise to
which the grant of public money would be made.
SECTION 2. This Act takes effect September 1, 2003, and
applies only to an economic incentive offered on or after that date.
An economic incentive offered before that date is governed by the
law in effect when the incentive was offered, and that law is
continued in effect for that purpose.