By: Rose Senate Sponsor-Hegar H.B. No. 2308

(In the Senate - Received from the House April 26, 2007; May 1, 2007, read first time and referred to Subcommittee on Emerging Technologies and Economic Development; May 19, 2007, reported adversely, with favorable Committee Substitute from Committee on Business and Commerce by the following vote: Yeas 6, Nays 0; May 19, 2007, sent to printer.)

COMMITTEE SUBSTITUTE FOR H.B. No. 2308 By: Eltife

A BILL TO BE ENTITLED

AN ACT

relating to the requirement that certain economic development corporations hold a hearing before spending funds to undertake a project and to the authority of those economic development corporations to allow voters to elect to limit the period during which or the projects for which the tax is imposed.

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 (e-2) to read as follows:

(e-2) At an election called and held under Subsection (d) of this section, the eligible city may also allow the voters to vote on a ballot proposition that limits the length of time that a sales and use tax may be imposed. An eligible city that imposes a tax for a limited time under this subsection may later extend the period of the tax's imposition or reimpose the tax only if the extension or reimposition is authorized by a majority of the qualified voters of the city voting in an election called and held for that purpose in the same manner as an election held under Section 4A(n) of this Act. Additionally, at an election held under Subsection (d) of this section, the city may also allow the voters to vote on a ballot proposition that limits the use of the sales and use tax to a specific project. A corporation that has been created to perform a specific project as provided by this subsection may retain its corporate existence and perform other projects as may be approved by the voters of the city under an election called and held for that purpose in the same manner as Section 4A(r) of this Act provides for an election held under Section 4A(d) of this Act. Before expending funds to undertake a project, a corporation shall hold a public hearing as otherwise provided by this section.

SECTION 2. Section 4B(n), Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read as follows:

(n) Before expending funds to undertake a project, a corporation under this section shall hold at least one public hearing on the proposed project. A corporation the creation of which was authorized by an eligible city with a population of less than 20,000 is not required to hold a public hearing under this subsection if the proposed project is defined by Section 2 of this Act.

SECTION 3. 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, 2007.

* * * * *