79R6660 DRH-D
By: Luna H.B. No. 2864
A BILL TO BE ENTITLED
AN ACT
relating to the use of sales tax revenue to pay or secure certain
municipal public securities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 1331, Government Code, is amended by
adding Subchapter Z to read as follows:
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 1331.901. USE OF SALES TAX TO PAY OR SECURE CERTAIN
PUBLIC SECURITIES. (a) In this section, "public security" has the
meaning assigned by Section 1201.002.
(b) Notwithstanding Section 321.506, Tax Code, revenue
derived from a sales and use tax received by a municipality may be
used to pay or secure the payment of public securities issued by or
on behalf of the municipality to finance the acquisition,
construction, equipping, renovation, or improvement of any public
work or other project any part of which is located in:
(1) a tax increment reinvestment zone created under
Chapter 311, Tax Code;
(2) an area designated as an enterprise zone under
Chapter 2303;
(3) a municipal management district created under
general or local law;
(4) a public improvement district created under
Chapter 372, Local Government Code;
(5) an empowerment zone or an enterprise community
designated under Section 1391, Internal Revenue Code of 1986; or
(6) a renewal community designated under Section
1400E, Internal Revenue Code of 1986.
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.