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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing certain general infrastructure projects to |
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be undertaken by economic development corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 501.004(a), Local Government Code, is |
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amended to read as follows: |
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(a) The legislature finds that: |
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(1) the present and prospective right to gainful |
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employment and the general welfare of the people of this state |
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require as a public purpose the promotion and development of new and |
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expanded business enterprises and of job training; |
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(2) the existence, development, and expansion of |
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business, commerce, industry, higher education, and job training |
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are essential to the economic growth of this state and to the full |
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employment, welfare, and prosperity of residents of this state; |
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(3) the assistance provided by corporations in |
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promoting higher education opportunities encourages and fosters |
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the development and diversification of the economy of this state |
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and the elimination of unemployment and underemployment in this |
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state; |
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(4) the means authorized by this subtitle and the |
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assistance provided by this subtitle, especially with respect to |
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financing, are in the public interest and serve a public purpose of |
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this state in promoting the welfare of the residents of this state |
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economically by securing and retaining business enterprises and as |
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a result maintaining a higher level of employment, economic |
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activity, and stability; |
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(5) community industrial development corporations in |
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this state have invested substantial money in successful industrial |
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development projects and have experienced difficulty in |
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undertaking additional industrial development projects because of |
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the partial inadequacy of the community industrial development |
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corporations' money or money potentially available from local |
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subscription sources and the limitations of local financial |
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institutions in providing additional and sufficiently large first |
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mortgage loans; [and] |
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(6) communities in this state have been at a critical |
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disadvantage in competing with communities in other states for the |
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location or expansion of business enterprises because of the |
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availability and prevalent use in all other states of financing and |
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other special incentives, and, for that reason, the issuance of |
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revenue bonds under this subtitle by a corporation on behalf of |
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political subdivisions of this state for the promotion and |
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development of new and expanded business enterprises to provide and |
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encourage employment and the public welfare is in the public |
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interest and is a public purpose; and |
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(7) the development, improvement, maintenance, and |
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expansion of the general infrastructure of communities in this |
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state are essential to the development and diversification of the |
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economy of this state and to the economic growth of this state. |
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SECTION 2. Subchapter C, Chapter 501, Local Government |
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Code, is amended by adding Section 501.1031 to read as follows: |
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Sec. 501.1031. CERTAIN GENERAL INFRASTRUCTURE PROJECTS. In |
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this subtitle, "project" includes expenditures that are found by |
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the board of directors to be required or suitable for general |
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infrastructure, limited to the development, improvement, |
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maintenance, or expansion of: |
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(1) streets and roads; |
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(2) sewage facilities; or |
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(3) water supply facilities for the general public. |
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SECTION 3. Section 504.103(a), Local Government Code, is |
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amended to read as follows: |
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(a) Except as otherwise provided by this section or Section |
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501.1031, a Type A corporation may not undertake a project the |
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primary purpose of which is to provide: |
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(1) a transportation facility; |
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(2) a solid waste disposal facility; |
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(3) a sewage facility; |
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(4) a facility for furnishing water to the general |
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public; or |
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(5) an air or water pollution control facility. |
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SECTION 4. Subchapter D, Chapter 504, Local Government |
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Code, is amended by adding Section 504.172 to read as follows: |
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Sec. 504.172. AUTHORITY TO UNDERTAKE CERTAIN GENERAL |
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INFRASTRUCTURE PROJECTS; ELECTION. (a) Notwithstanding any other |
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provision of this subtitle, a Type A corporation may not use |
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proceeds from the sales and use tax or other corporate revenues to |
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undertake the category of projects described by Section 501.1031 |
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unless the use of tax proceeds or other corporate revenues for that |
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purpose is authorized by an election as provided by this section. |
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(b) The governing body of a Type A corporation's authorizing |
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municipality by resolution may order an election on the question of |
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approving the use of sales and use tax proceeds and other corporate |
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revenues for the category of projects described by Section |
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501.1031. The resolution must be passed by majority vote of all |
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members of the municipality's governing body and entered in its |
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minutes. |
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(c) The governing body of a Type A corporation's authorizing |
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municipality shall order an election on the question described by |
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Subsection (b) on receipt of a petition requesting the election |
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that is signed by a number of registered voters of the municipality |
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equal to at least 10 percent of the number of voters participating |
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in the last general election held in the municipality. |
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(d) An election under this section must be held on the first |
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authorized uniform election date prescribed by Chapter 41, Election |
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Code, that occurs after the date the election is ordered and that |
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allows sufficient time to comply with other requirements of law. |
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(e) The ballot in an election under this section shall be |
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printed to provide for voting for or against the proposition: |
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"Adopting the use of Type A corporation funds for streets and roads, |
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sewage facilities, or water supply facilities for the general |
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public in the City of ________." |
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(f) If a majority of the voters voting on the issue do not |
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approve the use of sales and use tax proceeds and other corporate |
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revenues for the category of projects described by Section 501.1031 |
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at an election under this section, another election concerning the |
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use of tax proceeds and revenues for the same category of projects |
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may not be held before the second anniversary of the date of the |
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most recent election disapproving the use of tax proceeds and |
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revenues for that category of projects. |
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SECTION 5. The heading to Subchapter D, Chapter 505, Local |
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Government Code, is amended to read as follows: |
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SUBCHAPTER D. AUTHORIZATION FOR ADDITIONAL [AUTHORIZED] PROJECTS |
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SECTION 6. Subchapter D, Chapter 505, Local Government |
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Code, is amended by adding Section 505.162 to read as follows: |
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Sec. 505.162. AUTHORITY TO UNDERTAKE CERTAIN GENERAL |
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INFRASTRUCTURE PROJECTS; ELECTION. (a) Notwithstanding any other |
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provision of this subtitle, a Type B corporation may not use |
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proceeds from the sales and use tax or other corporate revenues to |
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undertake the category of projects described by Section 501.1031 |
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unless the use of tax proceeds or other corporate revenues for that |
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purpose is authorized by an election as provided by this section. |
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(b) The governing body of a Type B corporation's authorizing |
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municipality by resolution may order an election on the question of |
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approving the use of sales and use tax proceeds and other corporate |
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revenues for the category of projects described by Section |
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501.1031. The resolution must be passed by majority vote of all |
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members of the municipality's governing body and entered in its |
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minutes. |
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(c) The governing body of a Type B corporation's authorizing |
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municipality shall order an election on the question described by |
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Subsection (b) on receipt of a petition requesting the election |
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that is signed by a number of registered voters of the municipality |
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equal to at least 10 percent of the number of voters participating |
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in the last general election held in the municipality. |
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(d) An election under this section must be held on the first |
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authorized uniform election date prescribed by Chapter 41, Election |
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Code, that occurs after the date the election is ordered and that |
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allows sufficient time to comply with other requirements of law. |
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(e) The ballot in an election under this section shall be |
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printed to provide for voting for or against the proposition: |
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"Adopting the use of Type B corporation funds for streets and roads, |
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sewage facilities, or water supply facilities for the general |
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public in the City of ________." |
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(f) If a majority of the voters voting on the issue do not |
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approve the use of sales and use tax proceeds and other corporate |
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revenues for the category of projects described by Section 501.1031 |
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at an election under this section, another election concerning the |
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use of tax proceeds and revenues for the same category of projects |
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may not be held before the second anniversary of the date of the |
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most recent election disapproving the use of tax proceeds and |
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revenues for that category of projects. |
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SECTION 7. 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, 2013. |