85R8186 GRM-F
By: Miller H.B. No. 2503
A BILL TO BE ENTITLED
AN ACT
relating to the use of sales tax revenue collected under certain
contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter G, Chapter 54, Water Code, is amended
by adding Section 54.605 to read as follows:
Sec. 54.605. USE OF SALES TAX REVENUE UNDER CERTAIN
CONTRACTS. (a) This section applies only to:
(1) a district located in a county with a population of
550,000 or more and included in:
(A) the Harris-Galveston Subsidence District; or
(B) the Fort Bend Subsidence District;
(2) a municipality with a population of one million or
more that is included in the Harris-Galveston Subsidence District;
and
(3) money received by a municipality described by
Subdivision (2) under Chapter 321, Tax Code, from sales or uses
consummated within a district described by Subdivision (1), a
percentage of which is distributed to the district by the
municipality under the terms of a contract with the municipality,
including a strategic partnership agreement authorized by Section
43.0751, Local Government Code.
(b) Except as provided by Subsection (d), the municipality
must use at least 50 percent of the municipality's share of the
money described by Subsection (a)(3) for drainage or road projects
that:
(1) are located or conducted within the district or
within five miles of the district's boundary;
(2) benefit residents of the district; and
(3) if they include a major thoroughfare, are
consistent with the major thoroughfare plan of the county in which
the project is located.
(c) Except as provided by Subsection (d), the district must
use at least 75 percent of the district's share of the money
described by Subsection (a)(3) that is in excess of the amount of
its share of the money collected in 2016 under Subsection (a)(3) for
services and improvements that:
(1) are located or conducted within the district or
within five miles of the district's boundary;
(2) benefit residents of the district;
(3) are identified by the district and agreed upon by
the district and the county in which the district is located; and
(4) relate to:
(A) water;
(B) sewer;
(C) drainage;
(D) roads;
(E) parks;
(F) fire fighting or fire prevention; or
(G) public safety.
(d) This section applies to a contract or strategic
partnership agreement entered into before September 1, 2017, only
to the extent that the provisions of Subsection (b) or (c) do not
impair obligations under the provisions of the contract or
agreement.
SECTION 2. This Act takes effect September 1, 2017.