By:  McReynolds                                                   H.B. No. 2755



A BILL TO BE ENTITLED

AN ACT

relating to the authority of certain development corporations to 
undertake projects for the development, retention, or expansion of 
business enterprises.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 4B, Development Corporation Act of 1979 
(Article 5190.6, Vernon's Texas Civil Statutes) is amended by 
adding Subsection (g-1) to read as follows:
	(g)  On receipt of the proceeds of the sales and use tax 
imposed under this section from the comptroller, the eligible city 
shall deliver the proceeds to the corporation.  Tax proceeds may be 
used to:
		(1)  pay the costs of projects of the types added to the 
definition of that term by Subsection (a) of this section; or
		(2)  pay the principal of, interest on, and other costs 
relating to bonds or other obligations issued by the corporation to 
pay the costs of the projects or to refund bonds or other 
obligations issued to pay the costs of projects.
	(g-1) (1)  This subsection applies only to a corporation 
created by an eligible city that has not for either of the preceding 
two fiscal years received more than $50,000 in revenues from sales 
and use taxes imposed under this Act for the benefit of the 
corporation.
		(2)  A corporation to which this subsection applies may 
use the tax proceeds for the development, retention, or expansion 
of business enterprises.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.