BILL ANALYSIS
Senate Research Center C.S.H.B. 2928
79R11902 ATP-F By: Kolkhorst (Seliger)
S/C on Emerging Technologies & Economic Dev.
Committee Report (Substituted)
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
Current Texas law allows voters in eligible cities to impose a local sales and use tax dedicated to helping finance their communities' economic development projects. The economic development sales tax has become a key component of local economic development programs for communities throughout Texas. There is a need to offer a broader array of options for the use of these proceeds because different cities have different potential uses for this funding.
C.S.H.B. 2928 amends the Development Corporation Act of 1979 to allow several additional ways for eligible cities to use their local sales and use tax proceeds, depending on certain criteria set forth in the bill.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2(11), Development Corporation Act of 1979 (Article 5190.6, V.T.C.S.), to redefine "project."
SECTION 2. Amends Section 4B(a), Development Corporation Act of 1979 (Article 5190.6, V.T.C.S.), by adding Subdivision (3), to define "project" for a corporation created by an eligible city with a population of 20,000 or less.
SECTION 3. Amends Section 40(a), Development Corporation Act of 1979 (Article 5190.6, V.T.C.S.), to make a conforming change.
SECTION 4. Effective date: September 1, 2005.