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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 collected under certain |
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contracts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter G, Chapter 54, Water Code, is amended |
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by adding Section 54.605 to read as follows: |
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Sec. 54.605. USE OF SALES TAX REVENUE UNDER CERTAIN |
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CONTRACTS. (a) This section applies only to: |
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(1) a district located in a county with a population of |
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550,000 or more and included in: |
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(A) the Harris-Galveston Subsidence District; or |
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(B) the Fort Bend Subsidence District; |
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(2) a municipality with a population of one million or |
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more that is included in the Harris-Galveston Subsidence District; |
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and |
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(3) money received by a municipality described by |
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Subdivision (2) under Chapter 321, Tax Code, from sales or uses |
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consummated within a district described by Subdivision (1), a |
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percentage of which is distributed to the district by the |
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municipality under the terms of a contract with the municipality, |
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including a strategic partnership agreement authorized by Section |
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43.0751, Local Government Code. |
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(b) Except as provided by Subsection (d), the municipality |
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must use at least 50 percent of the municipality's share of the |
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money described by Subsection (a)(3) for drainage or road projects |
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that: |
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(1) are located or conducted within the district or |
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within five miles of the district's boundary; |
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(2) benefit residents of the district; and |
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(3) if they include a major thoroughfare, are |
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consistent with the major thoroughfare plan of the county in which |
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the project is located. |
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(c) Except as provided by Subsection (d), the district must |
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use at least 75 percent of the district's share of the money |
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described by Subsection (a)(3) that is in excess of the amount of |
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its share of the money collected in 2016 under Subsection (a)(3) for |
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services and improvements that: |
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(1) are located or conducted within the district or |
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within five miles of the district's boundary; |
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(2) benefit residents of the district; |
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(3) are identified by the district and agreed upon by |
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the district and the county in which the district is located; and |
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(4) relate to: |
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(A) water; |
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(B) sewer; |
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(C) drainage; |
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(D) roads; |
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(E) parks; |
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(F) fire fighting or fire prevention; or |
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(G) public safety. |
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(d) This section applies to a contract or strategic |
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partnership agreement entered into before September 1, 2017, only |
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to the extent that the provisions of Subsection (b) or (c) do not |
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impair obligations under the provisions of the contract or |
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agreement. |
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SECTION 2. This Act takes effect September 1, 2017. |