83R20065 CLG-D
By: Schaefer, Capriglione, Lucio III H.B. No. 1935
Substitute the following for H.B. No. 1935:
By: Bell C.S.H.B. No. 1935
A BILL TO BE ENTITLED
AN ACT
relating to authorizing certain general infrastructure projects to
be undertaken by 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. Subchapter C, Chapter 501, Local Government
Code, is amended by adding Section 501.1031 to read as follows:
Sec. 501.1031. CERTAIN GENERAL INFRASTRUCTURE PROJECTS. In
this subtitle, "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.
SECTION 3. Section 504.103(a), Local Government Code, is
amended to read as follows:
(a) Except as otherwise provided by this section or Section
501.1031, a Type A corporation may not undertake a project the
primary purpose of which is to provide:
(1) a transportation facility;
(2) a solid waste disposal facility;
(3) a sewage facility;
(4) a facility for furnishing water to the general
public; or
(5) an air or water pollution control facility.
SECTION 4. Subchapter D, Chapter 504, Local Government
Code, is amended by adding Section 504.172 to read as follows:
Sec. 504.172. AUTHORITY TO UNDERTAKE CERTAIN GENERAL
INFRASTRUCTURE PROJECTS; ELECTION. (a) Notwithstanding any other
provision of this subtitle, a Type A corporation may not use
proceeds from the sales and use tax or other corporate revenues to
undertake the category of projects described by Section 501.1031
unless the use of tax proceeds or other corporate revenues for that
purpose is authorized by an election as provided by this section.
(b) The governing body of a Type A 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 Section
501.1031. The resolution must be passed by majority vote of all
members of the municipality's governing body and entered in its
minutes.
(c) The governing body of a Type A corporation's authorizing
municipality shall order an election on the question described by
Subsection (b) 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.
(d) 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.
(e) 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 A corporation funds for streets and roads,
sewage facilities, or water supply facilities for the general
public in the City of ________."
(f) 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 Section 501.1031
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 5. The heading to Subchapter D, Chapter 505, Local
Government Code, is amended to read as follows:
SUBCHAPTER D. AUTHORIZATION FOR ADDITIONAL [AUTHORIZED] PROJECTS
SECTION 6. Subchapter D, Chapter 505, Local Government
Code, is amended by adding Section 505.162 to read as follows:
Sec. 505.162. AUTHORITY TO UNDERTAKE CERTAIN GENERAL
INFRASTRUCTURE PROJECTS; ELECTION. (a) 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 Section 501.1031
unless the use of tax proceeds or other corporate revenues for that
purpose is authorized by an election as provided by this section.
(b) 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 Section
501.1031. The resolution must be passed by majority vote of all
members of the municipality's governing body and entered in its
minutes.
(c) The governing body of a Type B corporation's authorizing
municipality shall order an election on the question described by
Subsection (b) 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.
(d) 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.
(e) 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 ________."
(f) 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 Section 501.1031
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 7. 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 September 1, 2013.