Amend CSHB 1723 by adding the following appropriately
numbered SECTIONS to the bill and renumbering the subsequent
SECTIONS of the bill appropriately:
      SECTION ____. Sections 4A(f) and (m), Development Corporation
Act of 1979  (Article 5190.6, Vernon's Texas Civil Statutes), are
amended to read as follows:
      (f)  On receipt of the proceeds of the sales and use tax
imposed under this section from the comptroller, the city shall
deliver the proceeds to the corporation to use in carrying out its
functions.  Tax proceeds may be used to pay the principal of,
interest on, and other costs relating to the corporation's bonds,
but neither the bonds nor any instrument related to the bonds may
give a bondholder a right to demand payment from tax proceeds in
excess of those collected from the tax imposed by this section. Tax
proceeds may also be used to:
            (1)  pay expenses incurred by the corporation under
Section 38 of this Act relating to job training; or
            (2)  provide funding to a county employment development
board created under Chapter 386, Local Government Code, for any
purpose authorized by that chapter.
      (m)  In an election to adopt the tax under this section, the
ballot shall be printed to provide for voting for or against the
proposition:  "The adoption of a sales and use tax for the
promotion and development of new and expanded business enterprises
and job or career training at the rate of __________ of one
percent" (one-eighth, one-fourth, three-eighths, or one-half to be
inserted as appropriate).
      SECTION ____. Section 4B(g), Development Corporation Act of
1979  (Article 5190.6, Vernon's Texas Civil Statutes), is amended
to read as follows:
      (g)  On receipt of the proceeds of the sales and use tax
imposed under this section from the comptroller, the eligible city
shall deliver the proceeds to the corporation.  Tax proceeds may be
used to:
            (1)  pay the costs of projects of the types added to
the definition of that term by Subsection (a)  of this section;
<or>
            (2)  pay the principal of, interest on, and other costs
relating to bonds or other obligations issued by the corporation to
pay the costs of the projects or to refund bonds or other
obligations issued to pay the costs of projects; or
            (3)  provide funding to a county employment development
board created under Chapter 386, Local Government Code, for any
purpose authorized by that chapter.
      SECTION ____. The changes in law made by this Act to Sections
4A(f) and 4B(g), Development Corporation Act of 1979 (Article
5190.6, Vernon's Texas Civil Statutes), apply to any tax proceeds
used by a development corporation on or after the effective date of
this Act, without regard to when the tax was imposed or collected.