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relating to projects that may be undertaken by development |
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corporations for the development, retention, or expansion of |
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certain airport facilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2(11), Development Corporation Act of |
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1979 (Article 5190.6, Vernon's Texas Civil Statutes), as amended by |
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Chapters 1, 1048, and 1148, Acts of the 79th Legislature, Regular |
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Session, 2005, is reenacted and amended to read as follows: |
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(11) "Project" shall mean: |
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(A) the land, buildings, equipment, facilities, |
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expenditures, targeted infrastructure, and improvements (one or |
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more) that are for the creation or retention of primary jobs and |
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that are found by the board of directors to be required or suitable |
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for the development, retention, or expansion of manufacturing and |
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industrial facilities, research and development facilities, |
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military facilities, including closed or realigned military bases, |
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transportation facilities (including but not limited to airports, |
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hangars, airport maintenance and repair facilities, air cargo |
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facilities, related infrastructure located on or adjacent to an |
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airport facility, ports, mass commuting facilities, and parking |
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facilities), sewage or solid waste disposal facilities, recycling |
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facilities, air or water pollution control facilities, facilities |
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for the furnishing of water to the general public, distribution |
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centers, small warehouse facilities capable of serving as |
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decentralized storage and distribution centers, primary job |
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training facilities for use by institutions of higher education, |
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and regional or national corporate headquarters facilities; |
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(B) job training required or suitable for the |
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promotion of development and expansion of business enterprises and |
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other enterprises described by this Act, as provided by Section 38 |
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of this Act; |
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(C) expenditures found by the board of directors |
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to be required or suitable for infrastructure necessary to promote |
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or develop new or expanded business enterprises limited to streets |
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and roads, rail spurs, water and sewer utilities, electric |
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utilities, gas utilities, drainage, site improvements, and related |
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improvements, telecommunications and Internet improvements, and |
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beach remediation along the Gulf of Mexico; |
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(D) the infrastructure, improvements, land |
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acquisition, buildings, or expenditures that: |
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(i) [(A)] are for the creation or retention |
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of primary jobs or jobs that are included in North American Industry |
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Classification System (NAICS) sector number 926120, Regulation and |
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Administration of Transportation Programs, for the corresponding |
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index entry for Coast Guard (except the Coast Guard Academy); and |
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(ii) [(B)] are found by the board of |
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directors to be required or suitable for: |
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(a) [(i)] promoting or supporting a |
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military base in active use to prevent the possible future closure |
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or realignment of the base; |
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(b) [(ii)] attracting new military |
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missions to a military base in active use; or |
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(c) [(iii)] redeveloping a military |
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base that has been closed or realigned, including a military base |
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closed or realigned according to the recommendation of the Defense |
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Base Closure and Realignment Commission under the Defense Base |
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Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note); |
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(E) land, buildings, equipment, facilities, |
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improvements, and expenditures found by the board of directors to |
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be required or suitable for use for a career center, if the area to |
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be benefited by the career center is not located in the taxing |
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jurisdiction of a junior college district; |
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(F) for a corporation created by a city any part |
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of which is located within 25 miles of an international border, the |
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land, buildings, facilities, infrastructure, and improvements |
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that: |
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(i) the board of directors finds are |
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required or suitable for the development or expansion of airport |
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facilities; or |
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(ii) are undertaken by the corporation if |
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the city that created the corporation has, at the time the project |
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is approved by the corporation as provided by this Act: |
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(a) a population of less than 50,000; |
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or |
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(b) an average rate of unemployment |
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that is greater than the state average rate of unemployment during |
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the 12-month period for which data is available that immediately |
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precedes the date the project is approved; or |
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(G) expenditures found by the board of directors |
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to be required or suitable for infrastructure necessary to promote |
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or develop new or expanded business enterprises, including |
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airports, ports, and sewer or solid waste disposal facilities, if |
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the corporation: |
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(i) is created by a city wholly or partly |
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located in a county that is bordered by the Rio Grande, has a |
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population of at least 500,000, and has wholly or partly within its |
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boundaries at least four cities that each have a population of at |
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least 25,000; and |
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(ii) does not support a project, as defined |
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by this subdivision, with sales and use tax revenue collected under |
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Section 4A or 4B of this Act. |
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SECTION 2. Section 4B(a)(2), Development Corporation Act of |
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1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to |
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read as follows: |
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(2) "Project" means land, buildings, equipment, |
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facilities, expenditures, and improvements included in the |
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definition of that term under Section 2 of this Act, and includes |
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job training as provided by Section 38 of this Act. For purposes of |
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this section, the term includes recycling facilities, and land, |
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buildings, equipment, facilities, and improvements found by the |
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board of directors to: |
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(A) be required or suitable for use for |
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professional and amateur (including children's) sports, athletic, |
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entertainment, tourist, convention, and public park purposes and |
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events, including stadiums, ball parks, auditoriums, |
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amphitheaters, concert halls, parks and park facilities, open space |
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improvements, museums, exhibition facilities, and related store, |
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restaurant, concession, and automobile parking facilities, related |
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area transportation facilities, and related roads, streets, and |
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water and sewer facilities, and other related improvements that |
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enhance any of those items; |
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(B) promote or develop new or expanded business |
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enterprises that create or retain primary jobs, including a project |
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to provide public safety facilities, streets and roads, drainage |
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and related improvements, demolition of existing structures, |
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general municipally owned improvements, as well as any improvements |
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or facilities that are related to any of those projects and any |
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other project that the board in its discretion determines promotes |
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or develops new or expanded business enterprises that create or |
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retain primary jobs; |
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(C) be required or suitable for the promotion of |
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development and expansion of affordable housing, as defined by 42 |
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U.S.C. Section 12745; |
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(D) be required or suitable for the development |
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or improvement of water supply facilities, including dams, |
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transmission lines, well field developments, and other water supply |
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alternatives; |
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(E) be required or suitable for the development |
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and institution of water conservation programs, including |
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incentives to install water-saving plumbing fixtures, educational |
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programs, brush control programs, and programs to replace |
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malfunctioning or leaking water lines and other water facilities; |
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[or] |
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(F) be required or suitable for the development, |
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retention, or expansion of business enterprises if the project is |
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undertaken by a corporation created by an eligible city: |
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(i) that has not for each of the preceding |
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two fiscal years received more than $50,000 in revenues from sales |
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and use taxes imposed under this section; and |
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(ii) the governing body of which has |
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authorized the project by adopting a resolution only after giving |
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the resolution at least two separate readings conducted at least |
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one week apart; or |
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(G) be required or suitable for the development |
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or expansion of airport facilities, including hangars, airport |
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maintenance and repair facilities, air cargo facilities, and |
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related infrastructure located on or adjacent to an airport |
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facility, if the project is undertaken by a corporation created by |
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an eligible city: |
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(i) that enters into a development |
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agreement with an entity in which the entity acquires a leasehold or |
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other possessory interest from the corporation and is authorized to |
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sublease the entity's interest for other projects authorized by |
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this subdivision; and |
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(ii) the governing body of which has |
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authorized the development agreement by adopting a resolution at a |
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meeting called as authorized by law. |
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SECTION 3. Section 32, Development Corporation Act of 1979 |
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(Article 5190.6, Vernon's Texas Civil Statutes), is amended to read |
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as follows: |
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Sec. 32. The legislature finds, determines, and declares |
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that the activities of a corporation created and organized under |
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the provisions of this Act affect all the people of the unit under |
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whose auspices it is created by assuming to a material extent that |
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which might otherwise become the obligation or duty of such unit, |
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and therefore such corporation is an institution of purely public |
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charity within the tax exemption of Article VIII, Section 2, of the |
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Texas Constitution. However, a corporation is exempt from the |
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franchise tax imposed by Chapter 171, Tax Code, only if the |
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corporation is exempted by that chapter. The legislature further |
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finds, determines, and declares that the grants, loans, |
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expenditures, and tax exemptions authorized by this Act in |
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connection with a project and authorized by a corporation in |
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accordance with this Act, constitute the making of loans or grants |
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of public money or constitute other actions authorized by Section |
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52-a, Article III, Texas Constitution. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 3440 was passed by the House on April |
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27, 2007, by the following vote: Yeas 133, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 3440 on May 25, 2007, by the following vote: Yeas 143, Nays 0, |
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2 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 3440 was passed by the Senate, with |
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amendments, on May 23, 2007, by the following vote: Yeas 31, Nays |
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0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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__________________ |
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Governor |