85R1293 CLG-F
	By: Schaefer	H.B. No. 1636

	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.  Sections 501.002(15) and (16), Local Government
	Code, are amended to read as follows:
	(15)  "Type A corporation" or "Type A economic
	development corporation" means a corporation governed by Chapter
	504.
	(16)  "Type B corporation" or "Type B economic
	development corporation" means a corporation governed by Chapter
	505.
	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 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.
	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 economic development 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 economic development
	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 economic development
	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 economic development
	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:
	"Allowing the use of Type A economic development corporation sales
	tax funds and other corporate revenues for streets and roads, water
	supply facilities, or sewage facilities in the City of ________."
	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 economic development
	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 economic development
	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 economic development
	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:
	"Allowing the use of Type B economic development corporation sales
	tax funds and other corporate revenues for streets and roads, water
	supply facilities, or sewage facilities in the City of ________."
	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, 2017.