| 1 | 1 | | 85R8186 GRM-F |
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| 2 | 2 | | By: Miller H.B. No. 2503 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the use of sales tax revenue collected under certain |
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| 8 | 8 | | contracts. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter G, Chapter 54, Water Code, is amended |
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| 11 | 11 | | by adding Section 54.605 to read as follows: |
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| 12 | 12 | | Sec. 54.605. USE OF SALES TAX REVENUE UNDER CERTAIN |
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| 13 | 13 | | CONTRACTS. (a) This section applies only to: |
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| 14 | 14 | | (1) a district located in a county with a population of |
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| 15 | 15 | | 550,000 or more and included in: |
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| 16 | 16 | | (A) the Harris-Galveston Subsidence District; or |
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| 17 | 17 | | (B) the Fort Bend Subsidence District; |
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| 18 | 18 | | (2) a municipality with a population of one million or |
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| 19 | 19 | | more that is included in the Harris-Galveston Subsidence District; |
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| 20 | 20 | | and |
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| 21 | 21 | | (3) money received by a municipality described by |
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| 22 | 22 | | Subdivision (2) under Chapter 321, Tax Code, from sales or uses |
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| 23 | 23 | | consummated within a district described by Subdivision (1), a |
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| 24 | 24 | | percentage of which is distributed to the district by the |
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| 25 | 25 | | municipality under the terms of a contract with the municipality, |
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| 26 | 26 | | including a strategic partnership agreement authorized by Section |
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| 27 | 27 | | 43.0751, Local Government Code. |
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| 28 | 28 | | (b) Except as provided by Subsection (d), the municipality |
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| 29 | 29 | | must use at least 50 percent of the municipality's share of the |
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| 30 | 30 | | money described by Subsection (a)(3) for drainage or road projects |
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| 31 | 31 | | that: |
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| 32 | 32 | | (1) are located or conducted within the district or |
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| 33 | 33 | | within five miles of the district's boundary; |
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| 34 | 34 | | (2) benefit residents of the district; and |
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| 35 | 35 | | (3) if they include a major thoroughfare, are |
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| 36 | 36 | | consistent with the major thoroughfare plan of the county in which |
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| 37 | 37 | | the project is located. |
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| 38 | 38 | | (c) Except as provided by Subsection (d), the district must |
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| 39 | 39 | | use at least 75 percent of the district's share of the money |
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| 40 | 40 | | described by Subsection (a)(3) that is in excess of the amount of |
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| 41 | 41 | | its share of the money collected in 2016 under Subsection (a)(3) for |
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| 42 | 42 | | services and improvements that: |
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| 43 | 43 | | (1) are located or conducted within the district or |
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| 44 | 44 | | within five miles of the district's boundary; |
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| 45 | 45 | | (2) benefit residents of the district; |
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| 46 | 46 | | (3) are identified by the district and agreed upon by |
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| 47 | 47 | | the district and the county in which the district is located; and |
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| 48 | 48 | | (4) relate to: |
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| 49 | 49 | | (A) water; |
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| 50 | 50 | | (B) sewer; |
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| 51 | 51 | | (C) drainage; |
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| 52 | 52 | | (D) roads; |
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| 53 | 53 | | (E) parks; |
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| 54 | 54 | | (F) fire fighting or fire prevention; or |
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| 55 | 55 | | (G) public safety. |
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| 56 | 56 | | (d) This section applies to a contract or strategic |
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| 57 | 57 | | partnership agreement entered into before September 1, 2017, only |
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| 58 | 58 | | to the extent that the provisions of Subsection (b) or (c) do not |
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| 59 | 59 | | impair obligations under the provisions of the contract or |
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| 60 | 60 | | agreement. |
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| 61 | 61 | | SECTION 2. This Act takes effect September 1, 2017. |
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