79R9429 ATP-F

By:  Kolkhorst                                                    H.B. No. 2928



A BILL TO BE ENTITLED

AN ACT

relating to projects that may be undertaken by or supported by the 
tax proceeds of certain development corporations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2(11), Development Corporation Act of 
1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to 
read as follows:
		(11) [(A)]  "Project" shall mean:                     
			(A)  the land, buildings, equipment, facilities, 
expenditures, targeted infrastructure, and improvements (one or 
more) that are for the creation or retention of primary jobs and 
that are found by the board of directors to be required or suitable 
for the development, retention, or expansion of manufacturing and 
industrial facilities, research and development facilities, 
transportation facilities (including but not limited to airports, 
ports, mass commuting facilities, and parking facilities), sewage 
or solid waste disposal facilities, recycling facilities, air or 
water pollution control facilities, facilities for the furnishing 
of water to the general public, distribution centers, small 
warehouse facilities capable of serving as decentralized storage 
and distribution centers, primary job training facilities for use 
by institutions of higher education, and regional or national 
corporate headquarters facilities;[.]
			(B)  ["Project" also includes] job training 
required or suitable for the promotion of development and expansion 
of business enterprises and other enterprises described by this 
Act, as provided by Section 38 of this Act; or[.]
			(C)  ["Project" also includes] expenditures found 
by the board of directors to be required or suitable for 
infrastructure necessary to promote or develop new or expanded 
business enterprises limited to streets and roads, rail spurs, 
water and sewer utilities, electric utilities, gas utilities, 
drainage, site improvements, and related improvements, and 
telecommunications and Internet improvements.
	SECTION 2.  Section 4B, Development Corporation Act of 1979 
(Article 5190.6, Vernon's Texas Civil Statutes), is amended by 
adding Subsections (g-1) and (g-2) to read as follows:
	(g-1)(1)  This subsection applies only to a corporation 
created by an eligible city that in the preceding two years has 
received an average of less than $50,000 a year from taxes imposed 
under this section.
		(2)  A corporation to which this subsection applies may 
use the corporation's tax proceeds for any project, including a 
project described by Section 2(11)(A) of this Act.
		(3)  A corporation to which this subsection applies may 
not undertake a project until the governing body of the eligible 
city creating the corporation adopts a resolution authorizing the 
project after giving the resolution at least two separate readings.
	(g-2)(1)  This subsection applies only to a corporation 
created by an eligible city that in the preceding three years 
received an average of less than $400,000 a year from taxes imposed 
under this section.
		(2)  A corporation to which this subsection applies may 
not use more than 35 percent of the corporation's tax proceeds for 
improvement of a building of historic significance located in a 
downtown area that is used for a business enterprise.
	SECTION 3.  This Act takes effect September 1, 2005.