By: Schaefer H.B. No. 1935
A BILL TO BE ENTITLED
AN ACT
relating to authorizing 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. Section 501.103, Local Government Code, is
amended to read as follows:
Sec. 501.103. GENERAL [CERTAIN] INFRASTRUCTURE
[IMPROVEMENT] PROJECTS. In this subtitle, "project" includes
expenditures that are found by the board of directors to be required
or suitable for general infrastructure, including [necessary to
promote or develop new or expanded business enterprises, limited
to]:
(1) streets and roads, rail spurs, water and sewer
utilities, electric utilities, or gas utilities, drainage, site
improvements, and related improvements;
(2) telecommunications and Internet improvements;
[or]
(3) beach remediation along the Gulf of Mexico;
(4) transportation facilities;
(5) solid waste disposal facilities;
(6) sewage facilities;
(7) facilities for furnishing water to the general
public;
(8) air or water pollution control facilities;
(9) airports, including a general aviation business
service airport that is an integral part of an industrial park, or
airport-related facilities; and
(10) ports or port-related facilities to support
waterborne commerce.
SECTION 3. Sections 501.107, 504.103, and 505.304, Local
Government Code, are repealed.
SECTION 4. Section 504.251, Local Government Code, is
amended to read as follows:
Sec. 504.251. TAX AUTHORIZED. The authorizing municipality
may adopt a sales and use tax for the benefit of a Type A corporation
if the tax is approved by a majority of the voters of the
municipality voting at an election held for that purpose. An
election on the adoption of a proposed sales and use tax for the
benefit of a Type A Corporation has no effect unless 25 percent of
the registered voters of the municipality vote in the election in
which the adoption of the sales and use tax is on the ballot.
SECTION 5. Section 505.251, Local Government Code, is
amended to read as follows:
Sec. 505.251. TAX AUTHORIZED. The governing body of the
authorizing municipality by ordinance may adopt a sales and use tax
for the benefit of a Type B corporation if the tax is approved by a
majority of the voters of the municipality voting at an election
held for that purpose in accordance with Chapter 321, Tax Code. An
election on the adoption of a proposed sales and use tax for the
benefit of a Type B Corporation has no effect unless 25 percent of
the registered voters of the municipality vote in the election in
which the adoption of the sales and use tax is on the ballot.
SECTION 6. 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.