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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of sales tax revenue to pay or secure certain |
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municipal public securities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1331, Government Code, is amended by |
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adding Subchapter Z to read as follows: |
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SUBCHAPTER Z. MISCELLANEOUS PROVISIONS |
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Sec. 1331.901. USE OF SALES TAX TO PAY OR SECURE CERTAIN |
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PUBLIC SECURITIES. (a) In this section, "public security" has the |
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meaning assigned by Section 1201.002. |
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(b) Revenue derived from a sales and use tax received by a |
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municipality may be used to pay or secure the payment of public |
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securities issued by or on behalf of the municipality to finance the |
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acquisition, construction, equipping, renovation, or improvement |
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of any public work or other project any part of which is located in: |
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(1) a tax increment reinvestment zone created under |
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Chapter 311, Tax Code; |
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(2) an area designated as an enterprise zone under |
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Chapter 2303; |
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(3) a municipal management district created under |
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general or local law; |
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(4) a public improvement district created under |
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Chapter 372, Local Government Code; |
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(5) an empowerment zone or an enterprise community |
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designated under Section 1391, Internal Revenue Code of 1986; or |
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(6) a renewal community designated under Section |
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1400E, Internal Revenue Code of 1986. |
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SECTION 2. Section 321.506, Tax Code, is amended to read as |
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follows: |
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Sec. 321.506. USE OF TAX REVENUE BY MUNICIPALITY. Except as |
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provided by Section 321.507, the money received by a municipality |
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under this chapter is for the use and benefit of the municipality |
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and may be used for any purpose for which the general funds of the |
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municipality may be used. However, [except that] a municipality |
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may not pledge the revenue received under this chapter to the |
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payment of bonds or other indebtedness except as provided by |
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Section 1331.901, Government Code. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |