83S30025 CLG-D

By: Schaefer H.B. No. 14

A BILL TO BE ENTITLED

AN ACT

relating to authorizing certain general infrastructure projects to be undertaken by Type B economic development corporations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 501.004(a), Local Government Code, is amended to read as follows:

(a) The legislature finds that:

(1) the present and prospective right to gainful employment and the general welfare of the people of this state require as a public purpose the promotion and development of new and expanded business enterprises and of job training;

(2) the existence, development, and expansion of business, commerce, industry, higher education, and job training are essential to the economic growth of this state and to the full employment, welfare, and prosperity of residents of this state;

(3) the assistance provided by corporations in promoting higher education opportunities encourages and fosters the development and diversification of the economy of this state and the elimination of unemployment and underemployment in this state;

(4) the means authorized by this subtitle and the assistance provided by this subtitle, especially with respect to financing, are in the public interest and serve a public purpose of this state in promoting the welfare of the residents of this state economically by securing and retaining business enterprises and as a result maintaining a higher level of employment, economic activity, and stability;

(5) community industrial development corporations in this state have invested substantial money in successful industrial development projects and have experienced difficulty in undertaking additional industrial development projects because of the partial inadequacy of the community industrial development corporations' money or money potentially available from local subscription sources and the limitations of local financial institutions in providing additional and sufficiently large first mortgage loans; [and]

(6) communities in this state have been at a critical disadvantage in competing with communities in other states for the location or expansion of business enterprises because of the availability and prevalent use in all other states of financing and other special incentives, and, for that reason, the issuance of revenue bonds under this subtitle by a corporation on behalf of political subdivisions of this state for the promotion and development of new and expanded business enterprises to provide and encourage employment and the public welfare is in the public interest and is a public purpose; and

(7) the development, improvement, maintenance, and expansion of the general infrastructure of communities in this state are essential to the development and diversification of the economy of this state and to the economic growth of this state.

SECTION 2. The heading to Subchapter D, Chapter 505, Local Government Code, is amended to read as follows:

SUBCHAPTER D. AUTHORIZATION FOR ADDITIONAL [AUTHORIZED] PROJECTS

SECTION 3. Subchapter D, Chapter 505, Local Government Code, is amended by adding Section 505.162 to read as follows:

Sec. 505.162. CERTAIN GENERAL INFRASTRUCTURE PROJECTS; ELECTION. (a) In this chapter, "project" includes expenditures that are found by the board of directors to be required or suitable for general infrastructure, limited to the development, improvement, maintenance, or expansion of:

(1) streets and roads;

(2) sewage facilities; or

(3) water supply facilities for the general public.

(b) Notwithstanding any other provision of this subtitle, a Type B corporation may not use proceeds from the sales and use tax or other corporate revenues to undertake the category of projects described by Subsection (a) unless the use of tax proceeds or other corporate revenues for that purpose is authorized by an election as provided by this section.

(c) The governing body of a Type B corporation's authorizing municipality by resolution may order an election on the question of approving the use of sales and use tax proceeds and other corporate revenues for the category of projects described by Subsection (a). The resolution must be passed by majority vote of all members of the municipality's governing body and entered in its minutes.

(d) The governing body of a Type B corporation's authorizing municipality shall order an election on the question described by Subsection (c) on receipt of a petition requesting the election that is signed by a number of registered voters of the municipality equal to at least 10 percent of the number of voters participating in the last general election held in the municipality.

(e) An election under this section must be held on the first authorized uniform election date prescribed by Chapter 41, Election Code, that occurs after the date the election is ordered and that allows sufficient time to comply with other requirements of law.

(f) The ballot in an election under this section shall be printed to provide for voting for or against the proposition: "Adopting the use of Type B corporation funds for streets and roads, sewage facilities, or water supply facilities for the general public in the City of ________."

(g) If a majority of the voters voting on the issue do not approve the use of sales and use tax proceeds and other corporate revenues for the category of projects described by Subsection (a) at an election under this section, another election concerning the use of tax proceeds and revenues for the same category of projects may not be held before the second anniversary of the date of the most recent election disapproving the use of tax proceeds and revenues for that category of projects.

SECTION 4. 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 on the 91st day after the last day of the legislative session.