Bill Text: TX HB1221 | 2019-2020 | 86th Legislature | Introduced

---

Bill Title: Relating to authorizing certain projects to be undertaken by economic development corporations.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced - Dead) 2019-04-15 - Left pending in committee [HB1221 Detail]

Download: Texas-2019-HB1221-Introduced.html

---

86R4257 CLG-D
By: Patterson H.B. No. 1221

A BILL TO BE ENTITLED
AN ACT
relating to authorizing certain projects to be undertaken by
economic development corporations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 501, Local Government
Code, is amended by adding Sections 501.1031 and 501.108 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 suitable for general infrastructure,
limited to the development, improvement, maintenance, or expansion
of:
(1) streets and roads;
(2) water supply facilities; or
(3) sewage facilities.
Sec. 501.108. PROJECTS RELATED TO PUBLIC SAFETY. (a) In
this subtitle, "project" includes expenditures that are found by
the board of directors to be required or suitable for improving,
enhancing, or supporting public safety, including:
(1) expenditures for improving public safety
facilities;
(2) expenditures for public safety equipment and for
first responders and other personnel; and
(3) other expenditures that enhance the level of
services provided by public safety facilities.
(b) For purposes of this section, "first responder" has the
meaning assigned by Section 421.095, Government Code.
SECTION 2. 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 3. 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 OR PUBLIC SAFETY 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 or the projects described by Section 501.108
unless the use of tax proceeds or other corporate revenues for those
purposes 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:
(1) the category of general infrastructure projects
described by Section 501.1031; or
(2) the public safety projects described by Section
501.108.
(c) A resolution ordering an election under Subsection (b)
must be passed by majority vote of all members of the governing body
of the corporation's authorizing municipality and entered in its
minutes.
(d) The governing body of a Type A corporation's authorizing
municipality shall order an election on the question described by
Subsection (b)(1) or (2) 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.
(e) 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.
(f) The ballot in an election under this section on the
question described by Subsection (b)(1) shall be printed to provide
for voting for or against the proposition: "Allowing the use of
Type A corporation sales tax funds and other corporate revenues for
streets and roads, water supply facilities, or sewage facilities in
the City of ________."
(g) The ballot in an election under this section on the
question described by Subsection (b)(2) shall be printed to provide
for voting for or against the proposition: "Allowing the use of Type
A corporation sales tax funds and other corporate revenues for
improving, enhancing, or supporting public safety in the City of
________."
SECTION 4. The heading to Subchapter D, Chapter 505, Local
Government Code, is amended to read as follows:
SUBCHAPTER D. AUTHORIZATION FOR ADDITIONAL [AUTHORIZED] PROJECTS
SECTION 5. 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 OR PUBLIC SAFETY 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 or the projects described by Section 501.108
unless the use of tax proceeds or other corporate revenues for those
purposes 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:
(1) the category of general infrastructure projects
described by Section 501.1031; or
(2) the public safety projects described by Section
501.108.
(c) A resolution ordering an election under Subsection (b)
must be passed by majority vote of all members of the governing body
of the corporation's authorizing municipality and entered in its
minutes.
(d) The governing body of a Type B corporation's authorizing
municipality shall order an election on the question described by
Subsection (b)(1) or (2) 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.
(e) 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.
(f) The ballot in an election under this section on the
question described by Subsection (b)(1) shall be printed to provide
for voting for or against the proposition: "Allowing the use of
Type B corporation sales tax funds and other corporate revenues for
streets and roads, water supply facilities, or sewage facilities in
the City of ________."
(g) The ballot in an election under this section on the
question described by Subsection (b)(2) shall be printed to provide
for voting for or against the proposition: "Allowing the use of Type
B corporation sales tax funds and other corporate revenues for
improving, enhancing, or supporting public safety in the City of
________."
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, 2019.