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.