BILL ANALYSIS
Senate Research Center S.B. 1639
79R7813 CLG-D By: Nelson
S/C on Emerging Technologies & Economic Dev.
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
When a business enterprise is expanding and under new development, generally, water, sanitary sewer and storm facilities are all required. It is unlikely that a business could promote business development by excluding the funding of sanitary sewer lines.
Currently, Sections 4A and 4B of the Industrial Development Corporation Act permits voters in eligible cities to impose local sales tax dedicated to helping finance their communities' economic development projects. The infrastructure items the funds may pay for are limited to those that promote or enable development of new or expanded business enterprises, including streets, telecommunications infrastructure, and water and electric utilities, etc.
As proposed, S.B. 1639 adds sanitary sewer utilities to the list of items which may be funded with Section 4A/4B revenues.
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," to include sanitary sewer utilities.
SECTION 2. Effective date: upon passage or September 1, 2005.