By Brady H.B. No. 2843
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, including taxing
1-3 powers, duties, operations, financing, and dissolution of the Town
1-4 Center Improvement District of Montgomery County, Texas, and the
1-5 power of certain entities to contract with the district.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. CREATION; LEGISLATIVE DECLARATION. (a)
1-8 Notwithstanding the general law relating to consent by political
1-9 subdivisions to the creation of conservation and reclamation
1-10 districts and the inclusion of land in those districts, there is
1-11 hereby created and established within Montgomery County, Texas, in
1-12 the form and manner hereinafter set forth, a special district, to
1-13 be known as the Town Center Improvement District of Montgomery
1-14 County, Texas, which shall be a governmental agency, a body politic
1-15 and corporate, and a political subdivision of the state.
1-16 (b) The district is a unit of government for purposes of the
1-17 Texas Tort Claims Act (Chapter 101, Civil Practice and Remedies
1-18 Code), and operations of the district are considered to be
1-19 essential governmental functions and not proprietary functions for
1-20 all purposes, including the application of the Texas Tort Claims
1-21 Act.
1-22 (c) The name of the district may be changed by resolution of
1-23 the board of directors of the district at any time.
2-1 (d) The creation of the district is declared to be essential
2-2 to the accomplishment of the purposes of Article III, Section 52,
2-3 and Article XVI, Section 59, of the Texas Constitution and to the
2-4 accomplishment of the several other public purposes stated in this
2-5 Act.
2-6 (e) The legislature finds, determines, and declares that the
2-7 creation of the district is necessary to promote, develop,
2-8 encourage, and maintain employment, commerce, economic development,
2-9 and the public welfare in the Town Center area of Montgomery
2-10 County. It is the legislature's intent that the creation of the
2-11 district and this legislation not be interpreted to relieve
2-12 Montgomery County or any other governmental agency, political
2-13 subdivision, or municipality from providing the present level of
2-14 services to the area included within the district or to release the
2-15 obligations each entity has or may hereafter have to provide
2-16 services to that area. The district is created to supplement and
2-17 not supplant such services in the area included within the
2-18 district.
2-19 SECTION 2. DEFINITIONS. In this Act:
2-20 (1) "Board" means the board of directors of the
2-21 district.
2-22 (2) "District" means the Town Center Improvement
2-23 District of Montgomery County, Texas.
2-24 (3) "Improvement project" means any program or
2-25 project, whether individual, intermittent, or continuing and
3-1 whether located or conducted within or without the district, for
3-2 the construction, acquisition, lease, rental, installment purchase,
3-3 improvement, rehabilitation, repair, relocation, operation, or
3-4 maintenance of any works, improvements, or facilities or the
3-5 provision, support, enhancement, improvement, extension, or
3-6 expansion of services, whether provided to, for, by, or on behalf
3-7 of the district, necessary for the accomplishment of the public
3-8 purposes of the district, including:
3-9 (A) landscaping; lighting, banners, and signs;
3-10 streets or sidewalks; hike and bike paths and trails, pedestrian
3-11 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
3-12 transit corridor beautification and improvements; drainage or storm
3-13 water detention improvements; solid waste, water, sewer, or power
3-14 facilities and services, including but not limited to electrical,
3-15 gas, steam, cogeneration, and chilled water facilities; parks,
3-16 lakes, gardens, recreational facilities, open space, scenic areas,
3-17 and related exhibits and preserves; fountains, plazas, and
3-18 pedestrian malls; public art and sculpture and related exhibits and
3-19 facilities; educational and cultural exhibits and facilities;
3-20 exhibits, displays, attractions, and facilities for special events,
3-21 holidays, and seasonal or cultural celebrations; off-street parking
3-22 facilities, bus terminals, heliports, mass-transit, and
3-23 roadway-borne or water-borne transportation and people-mover
3-24 systems; and any other public improvements, facilities, or services
3-25 similar to the foregoing;
4-1 (B) the removal, razing, demolition, or clearing
4-2 of land or improvements in connection with any improvement project;
4-3 (C) the acquisition of real or personal property
4-4 or any interest therein in connection with an authorized
4-5 improvement project provided that the district shall not have the
4-6 power of eminent domain; and
4-7 (D) any special or supplemental services for the
4-8 improvement and promotion of the district or adjacent areas or for
4-9 the protection of public health and safety within or adjacent to
4-10 the district, including but not limited to advertising, promotion,
4-11 tourism, health and sanitation, public safety, security, fire
4-12 protection and emergency medical services, business recruitment,
4-13 development, elimination of traffic congestion, and recreational,
4-14 educational, and cultural improvements, enhancements, and services.
4-15 SECTION 3. BOUNDARIES. The district shall include all of
4-16 the territory contained within the following described area:
4-17 Being a 802.95 acre tract of land situated in Montgomery County,
4-18 Texas in the Walker County School Land Survey, A-599, John Taylor
4-19 Survey, A-547, and the Montgomery County School Land Survey, A-350,
4-20 and being more particularly described by metes and bounds as
4-21 follows with all control referred to the Texas State Plan
4-22 Coordinate System, Lambert Projection, South Central Zone:
4-23 BEGINNING at a point for corner in the south right-of-way line of
4-24 Woodlands Parkway, as recorded in Volume 823, Page 224, of the
4-25 Montgomery County Deed Records, located in the west right-of-way
5-1 line of Interstate Highway No. 45 having a Texas State Plane
5-2 Coordinate Value of X= 3,121,407.94, Y= 861,543.52 and being S
5-3 4154'27" E, 7,443.73 from the northwest corner of said Walker
5-4 County School Land Survey, A-599;
5-5 THENCE along the south right-of-way line of said Woodlands Parkway
5-6 as follows:
5-7 N 7036'26" W, 91.17 feet to a point,
5-8 S 8551'45" W, 577.61 feet to a point,
5-9 S 8548'56" W, 525.94 feet to a point,
5-10 S 8244'32" W, 186.58 feet to a point,
5-11 S 8346'10" W, 810.17 feet to a point,
5-12 S 8439'07" W, 195.75 feet to a point,
5-13 S 8143'27" W, 874.67 feet to a point,
5-14 S 8250'02" W, 630.85 feet to a point,
5-15 S 8632'35" W, 308.58 feet to a point,
5-16 S 8622'47" W, 1,194.19 feet to a point,
5-17 S 8428'14" W, 600.33 feet to a point,
5-18 And S 7428'07" W, 745.32 feet to a point for corner at its
5-19 intersection with the east right-of-way line of Grogan's Mill Road;
5-20 THENCE S 3248'58" W, 187.55 feet to a point for corner;
5-21 THENCE N 7918'19" W, 210.00 feet to a point for corner;
5-22 THENCE N 2212'11" W, 78.06 feet to a point for corner;
5-23 THENCE N 1755'38" E, 654.45 feet to a point for corner;
5-24 THENCE N 4007'24" E, 529.39 feet to a point for corner;
5-25 THENCE N 2732'47" E, 1,121.03 feet to a point for corner;
6-1 THENCE N 2150'09" E, 150.75 feet to a point for corner;
6-2 THENCE N 2732'47" E, 43.97 feet to a point for corner;
6-3 THENCE N 6227'13" W, 584.03 feet to a point for corner;
6-4 THENCE N 2732'47" E, 382.16 feet to a point for corner;
6-5 THENCE northwesterly along a curve to the right an arc distance of
6-6 21.26 feet based on a radius of 270.00 feet, a central angle of
6-7 0430'45" and having a chord which bears N 6442'35" W a chord
6-8 distance of 21.26 feet to a point of tangency;
6-9 THENCE N 6227'13" W, 352.65 feet to a point of curvature;
6-10 THENCE along a curve to the right an arc distance of 194.65 feet
6-11 based on a radius of 720.00 feet, a central angle of 1529'24" and
6-12 having a chord which bears N 5442'31" W a chord distance of 194.06
6-13 feet to a point of tangency;
6-14 THENCE N 4657'49" W, 154.37 feet to a point for corner;
6-15 THENCE N 4302'11" E, 50.00 feet to a point of curvature;
6-16 THENCE along a curve to the left an arc distance of 200.28 feet
6-17 based on a radius of 425.00 feet, a central angle of 2700'00" and
6-18 having a chord which bears N 2932'11" E a chord distance of 198.43
6-19 feet to a point of tangency;
6-20 THENCE N 1602'11" E, 295.95 feet to a point of curvature;
6-21 THENCE along a curve to the left an arc distance of 212.31 feet
6-22 based on a radius of 1,450.00 feet, a central angle of 0823'21"
6-23 and having a chord which bears N 1150'30" E a chord distance of
6-24 212.12 feet to a point of tangency;
6-25 THENCE N 0738'50" E, 130.20 feet to a point for corner;
7-1 THENCE N 5111'04" W, 374.66 feet to a point for corner;
7-2 THENCE N 4800'30" W, 634.11 feet to a point for corner;
7-3 THENCE N 5917'39" W, 62.45 feet to a point for corner;
7-4 THENCE N 1823'46" W, 93.02 feet to a point for corner;
7-5 THENCE N 1752'41" E, 59.29 feet to a point for corner;
7-6 THENCE N 4534'13" E, 97.61 feet to a point for corner;
7-7 THENCE N 1737'12" E, 183.70 feet to a point for corner;
7-8 THENCE N 1417'46" W, 108.32 feet to a point for corner;
7-9 THENCE N 1918'14" E, 72.16 feet to a point for corner;
7-10 THENCE N 3337'34" E, 104.17 feet to a point for corner;
7-11 THENCE S 7557'49" E, 12.49 feet to a point of curvature;
7-12 THENCE along a curve to the right an arc distance of 974.72 feet
7-13 based on a radius of 2,080.00 feet, a central angle of 2650'59"
7-14 and having a chord which bears S 6232'20" E a chord distance of
7-15 965.83 feet to a point of tangency;
7-16 THENCE S 4906'50" E, 142.10 feet to a point for corner;
7-17 THENCE N 3640'50" E, 828.08 feet to a point for corner;
7-18 THENCE S 4908'52" E, 346.64 feet to a point for corner;
7-19 THENCE N 8731'24" E, 536.99 feet to a point for corner;
7-20 THENCE S 0229'55" E, 115.53 feet to a point for corner;
7-21 THENCE S 0225'00" E, 590.05 feet to a point for corner;
7-22 THENCE S 4718'01" E, 244.25 feet to a point for corner;
7-23 THENCE S 8441'11" E, 194.52 feet to a point for corner;
7-24 THENCE N 8900'34" E, 555.28 feet to a point for corner;
7-25 THENCE N 8047'31" E, 300.00 feet to a point for corner;
8-1 THENCE N 1102'00" W, 190.00 feet to a point for corner;
8-2 THENCE N 0208'49" W, 975.00 feet to a point for corner;
8-3 THENCE N 8751'11" E, 580.00 feet to a point for corner;
8-4 THENCE S 0208'49" E, 126.11 feet to a point for corner;
8-5 THENCE N 8751'11" E, 440.00 feet to a point for corner;
8-6 THENCE N 0208'49" W, 486.11 feet to a point for corner;
8-7 THENCE N 8751'11" E, 32.96 feet to a point of curvature;
8-8 THENCE along a curve to the right an arc distance of 528.31 feet
8-9 based on a radius of 5,045.00 feet, a central angle of 0600'00"
8-10 and having a chord which bears S 8908'49" E a chord distance of
8-11 528.07 feet to a point of tangency;
8-12 THENCE S 8608'49" E, 99.85 feet to a point for corner;
8-13 THENCE N 4851'11" E, 14.14 feet to a point for corner;
8-14 THENCE N 0351'11" E, 39.31 feet to a point of curvature;
8-15 THENCE along a curve to the right an arc distance of 372.34 feet
8-16 based on a radius of 1,255.00 feet, a central angle of 1659'56"
8-17 and having a chord which bears N 1221'09" E a chord distance of
8-18 370.98 feet to a point of tangency;
8-19 THENCE N 2051'07" E 416.95 feet to a point for corner;
8-20 THENCE N 2408'53" W, 35.36 feet to a point for corner;
8-21 THENCE N 6908'53" W, 10.41 feet to a point for corner;
8-22 THENCE N 2051'07" E, 110.00 feet to a point for corner;
8-23 THENCE S 6908'53" E, 5.41 feet to a point for corner;
8-24 THENCE N 6551'07" E, 35.36 feet to a point for corner;
8-25 THENCE S 6908'53" E, 115.00 feet to a point for corner;
9-1 THENCE S 2408'53" E, 35.36 feet to a point for corner;
9-2 THENCE S 6908'53" E, 73.98 feet to a point of curvature;
9-3 THENCE along a curve to the left an arc distance of 379.33 feet
9-4 based on a radius of 945.00 feet, a central angle of 2259'56" and
9-5 having a chord which bears S 8038'51" E a chord distance of 376.79
9-6 feet to a point of tangency;
9-7 THENCE N 8751'11" E, 478.87 feet to a point of curvature;
9-8 THENCE along a curve to the left an arc distance of 135.57 feet
9-9 based on a radius of 1,945.00 feet, a central angle of 0359'37"
9-10 and having a chord which bears N 8551'22" E a chord distance of
9-11 135.54 feet to a point of tangency;
9-12 THENCE N 8351'34" E, 330.58 feet to a point for corner;
9-13 THENCE S 0608'26" E, 251.66 feet to a point for corner;
9-14 THENCE S 0619'08" E, 104.20 feet to a point for corner;
9-15 THENCE S 0534'08" E, 335.41 feet to a point for corner;
9-16 THENCE S 0629'11" E, 327.06 feet to a point for corner;
9-17 THENCE S 0744'55" E, 239.82 feet to a point for corner;
9-18 THENCE S 8821'10" W, 186.42 feet to a point for corner;
9-19 THENCE S 0208'52" E, 436.57 feet to a point for corner;
9-20 THENCE N 8722'38" E, 220.97 feet to a point for corner;
9-21 THENCE S 0637'09" E, 662.44 feet to a point for corner;
9-22 THENCE S 0647'16" E, 337.68 feet to a point for corner;
9-23 THENCE S 0639'37" E, 500.77 feet to a point for corner;
9-24 THENCE S 0646'14" E, 576.28 feet to a point for corner;
9-25 THENCE S 0856'30" E, 493.48 feet to a point for corner;
10-1 THENCE S 0842'03" E, 450.64 feet to a point for corner;
10-2 THENCE S 0848'51" E, 498.47 feet to a point for corner;
10-3 THENCE S 0849'00" E, 368.85 feet to a point for corner;
10-4 THENCE S 2016'52" E, 209.35 feet to a point for corner;
10-5 THENCE S 0453'48" E, 289.23 feet to a point for corner;
10-6 THENCE S 7841'39" W, 528.50 feet to a point for corner;
10-7 THENCE N 1121'21" W, 49.94 feet to the POINT OF BEGINNING and
10-8 containing 802.95 acres of land.
10-9 SECTION 4. FINDINGS RELATING TO BOUNDARIES. The legislature
10-10 finds that the boundaries and field notes of the district form a
10-11 closure. If any mistake is made in the field notes or in copying
10-12 the field notes in the legislative process, it in no way affects
10-13 the organization, existence, and validity of the district or the
10-14 right, power, or authority of the district to enter into any type
10-15 of contract for the purposes for which the district is created or
10-16 the right of the district to levy, assess, and collect taxes, fees,
10-17 or charges, as herein provided, and in no other manner affects the
10-18 legality or operations of the district or its board.
10-19 SECTION 5. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) The
10-20 legislature finds that all of the land and other property included
10-21 within the boundaries of the district will be benefited by the
10-22 works, projects, improvements, and services that are to be
10-23 accomplished by the district under powers conferred by Article III,
10-24 Section 52, and Article XVI, Section 59, of the Texas Constitution
10-25 and other powers granted under this Act and that the district is
11-1 created to serve a public use and benefit.
11-2 (b) The legislature finds that the creation of the district
11-3 is essential to further the public purposes of the economic
11-4 development and diversification of the state, the elimination of
11-5 unemployment and underemployment, and the stimulation and
11-6 development of transportation and commerce; that it is in the
11-7 public interest; and that it will promote the health, safety, and
11-8 general welfare of residents, employers, employees, and consumers
11-9 in the district and of the general public. The present and
11-10 prospective traffic congestion in the district and the safety of
11-11 pedestrians and the limited availability of funds require the
11-12 promotion and development of public transportation and pedestrian
11-13 facilities and systems by new and alternative means, and the
11-14 district will serve the public purpose of securing expanded and
11-15 improved transportation and pedestrian facilities and systems. The
11-16 district will provide needed funding for the Town Center area to
11-17 preserve, maintain, and enhance the economic health and vitality of
11-18 the area as a community and business and commerce center. The
11-19 district will further promote the health, safety, welfare,
11-20 education, convenience, and enjoyment of the public by improving,
11-21 landscaping, and developing certain areas within and adjacent to
11-22 the district and providing public services and facilities within
11-23 and adjacent to the district which are necessary for the
11-24 restoration, preservation, enhancement, and enjoyment of scenic and
11-25 aesthetic beauty. Each and all of the improvement projects
12-1 authorized by this Act are hereby found and declared to be
12-2 essential to carrying out a public purpose. The district will not
12-3 act as the agent or instrumentality of any private interests, even
12-4 though many private interests will be benefited by the district, as
12-5 will the general public.
12-6 (c) This Act shall be liberally construed in conformity with
12-7 the legislative findings and purposes set forth herein.
12-8 SECTION 6. GENERAL POWERS. (a) The district has all of the
12-9 rights, powers, privileges, authority, and functions conferred on
12-10 municipal management districts by Subchapter E, Chapter 375, Local
12-11 Government Code, and by the general laws of the state on
12-12 conservation and reclamation districts created under Article XVI,
12-13 Section 59, of the Texas Constitution, and on road districts and
12-14 road utility districts created pursuant to Article III, Section 52,
12-15 of the Texas Constitution, including those conferred by Chapter 54,
12-16 Water Code, and Chapter 13, Acts of the 68th Legislature, 2nd
12-17 Called Session, 1984 (Article 6674r-1, Vernon's Texas Civil
12-18 Statutes), together with the additional rights, powers, privileges,
12-19 authority, and functions contained in this Act.
12-20 (b) If any provision of the general law is in conflict or
12-21 inconsistent with this Act, this Act prevails. Any general law
12-22 which supplements the power and authority of the district, to the
12-23 extent not in conflict or inconsistent with this Act, is adopted
12-24 and incorporated by reference.
12-25 SECTION 7. ADDITIONAL SPECIFIC POWERS AND DUTIES. In
13-1 addition to the general powers set forth in Section 6 of this Act,
13-2 the board may, subject to the provisions and limitations
13-3 hereinafter set forth:
13-4 (1) levy, assess, and apply the proceeds from a
13-5 limited sales and use tax for the district's purposes;
13-6 (2) borrow money for the corporate purposes of the
13-7 district;
13-8 (3) add or exclude territory in the manner provided by
13-9 Subchapter H, Chapter 54, Water Code;
13-10 (4) contract with any person or entity for the
13-11 accomplishment of any of the district's purposes including without
13-12 limitation contracts for the payment, repayment, or reimbursement,
13-13 out of tax proceeds or any other specified source of funds, of any
13-14 costs and reasonable carrying costs incurred by that person for or
13-15 on behalf of the district, including all or part of the costs of
13-16 any improvement project;
13-17 (5) make application for and contract with any person
13-18 or entity to receive, administer, and perform the district's duties
13-19 and obligations under any federal, state, local, or private gift,
13-20 grant, loan, conveyance, transfer, bequest, donation, or other
13-21 financial assistance arrangement relating to the investigation,
13-22 planning, analysis, study, design, acquisition, construction,
13-23 improvement, completion, implementation, or operation by the
13-24 district or others of a proposed or existing improvement project;
13-25 (6) make, adopt, revise, repeal, amend, promulgate,
14-1 and enforce by ordinary civil remedies reasonable rules and
14-2 regulations for the administration and operation of the district,
14-3 the use, enjoyment, availability, protection, security, and
14-4 maintenance of the district's properties and facilities, and
14-5 providing for public safety and security within the district;
14-6 (7) establish, revise, repeal, enforce, collect, and
14-7 apply the proceeds from user fees, concessions, admissions,
14-8 rentals, or other similar fees or charges for the enjoyment, sale,
14-9 rental, or other use of the district's facilities, services,
14-10 properties, or improvement projects; however, because the district
14-11 is created in an area that is devoted primarily to commercial and
14-12 business activity, the district may not impose an impact fee or
14-13 assessment on a single family residential property or a residential
14-14 duplex, triplex, quadruplex, or condominium;
14-15 (8) provide or secure the payment or repayment of the
14-16 costs and expenses of the establishment, administration, and
14-17 operation of the district and the district's costs or share of the
14-18 costs of any improvement project, or district contractual
14-19 obligation or indebtedness, by or through a lease, installment
14-20 purchase contract, or other agreement with any person or the levy
14-21 and assessment of taxes, user fees, concessions, rentals, or other
14-22 revenues or resources of the district; and
14-23 (9) undertake separately or jointly with other persons
14-24 or entities and pay all or part of the cost of improvement
14-25 projects, including improvement projects for improving, enhancing,
15-1 and supporting public safety and security, fire protection and
15-2 emergency medical services, and law enforcement within and adjacent
15-3 to the district and improvement projects that confer a general
15-4 benefit on the entire district and the areas adjacent thereto or a
15-5 special benefit on a definable part of the district, which may be
15-6 the entire district or any part thereof; however, the district
15-7 shall not be authorized to employ peace officers.
15-8 SECTION 8. BOARD OF DIRECTORS. (a) The district is
15-9 governed by a board of five directors who shall serve for staggered
15-10 terms of four years.
15-11 (b)(1) To be qualified to serve as a director a person must
15-12 be at least 18 years old and must be:
15-13 (A) a resident of the district;
15-14 (B) an individual owner of real property in the
15-15 district;
15-16 (C) an individual owner of stock, whether
15-17 beneficial or otherwise, of a corporate owner of real property in
15-18 the district;
15-19 (D) an individual owner of a beneficial interest
15-20 in a trust that owns real property in the district; or
15-21 (E) an agent, employee, officer, or director of
15-22 any owner of real property described in Paragraphs (B), (C), and
15-23 (D) of this subdivision.
15-24 (2) A person or entity that owns an interest in a
15-25 general or limited partnership owner of real property in the
16-1 district or who has a lease of real property in the district with a
16-2 remaining term of 10 years or more, excluding options, shall be
16-3 deemed to be an owner of real property for purposes of this Act.
16-4 (c)(1) At the time this Act takes effect, the following
16-5 persons shall constitute the initial board and shall serve as
16-6 provided herein:
16-7 (A) Vicki D. Armstrong;
16-8 (B) Roger L. Galatas;
16-9 (C) R. A. Kutsche;
16-10 (D) Michael H. Richmond; and
16-11 (E) Bruce M. Withers, Jr.
16-12 (2) If one or more of the initial directors listed in
16-13 this subsection fails to qualify for office within 90 days of the
16-14 effective date of this Act, the remaining directors shall appoint
16-15 qualified persons to fill the vacancies for the unexpired terms.
16-16 (d) Of the initial directors, two shall serve until the
16-17 first Saturday in May, 1994, or until their successors have been
16-18 elected or appointed and have qualified, and three shall serve
16-19 until the first Saturday in May, 1996, or until their successors
16-20 have been elected or appointed and have qualified. The board shall
16-21 determine the terms of the initial directors by mutual agreement or
16-22 by lot.
16-23 (e) A vacancy in the office of director shall be filled by
16-24 appointment by a majority vote of the remaining directors. The
16-25 board may remove a director for misconduct or failure to carry out
17-1 his duties by unanimous vote of all of the remaining directors.
17-2 (f) As soon as practicable after a director is elected or
17-3 appointed, such person shall execute a bond for $10,000 payable to
17-4 the district and conditioned on the faithful performance of his
17-5 duties. All bonds of the directors shall be approved by the board,
17-6 and each director shall take the oath of office prescribed by the
17-7 constitution for public officers. The bond and oath shall be filed
17-8 with the district and retained in its records.
17-9 (g) After directors have been appointed or elected and have
17-10 qualified by executing a bond and taking the proper oath, they
17-11 shall organize or reorganize by electing a president, a
17-12 vice-president, a secretary, and any other officers as in the
17-13 judgment of the board are necessary.
17-14 (h) A position on the board may not be construed to be a
17-15 civil office of emolument for any purpose, including those purposes
17-16 described in Article XVI, Section 40, of the Texas Constitution.
17-17 (i) A director is not entitled to compensation for service
17-18 on the board but is entitled to be reimbursed for necessary
17-19 expenses incurred in carrying out the duties and responsibilities
17-20 of a director.
17-21 (j) Except as provided in Subsection (e) of this section,
17-22 three directors constitute a quorum for the consideration of
17-23 matters pertaining to the purposes of the district, and a
17-24 concurrence of a majority of a quorum of directors shall be
17-25 required for any official action of the district.
18-1 (k) A person who qualifies to serve on the board under
18-2 Subsection (b) of this section shall be qualified to serve as a
18-3 director and participate in all votes pertaining to the business of
18-4 the district regardless of any statutory provisions to the
18-5 contrary.
18-6 SECTION 9. CONFIRMATION AND DIRECTORS ELECTIONS. (a) As
18-7 soon as practicable after all initial directors have qualified for
18-8 office, the initial directors shall file the statement and take the
18-9 oath of office required of appointed officials and meet in an
18-10 organizational session. If the board does not determine to call
18-11 hearings to exclude territory from the district, the board at the
18-12 organizational meeting shall call a confirmation election to be
18-13 held on the next lawfully available uniform election date occurring
18-14 not less than 45 days after the date of such organizational
18-15 meeting.
18-16 (b) The confirmation election shall be called and held to
18-17 confirm the establishment of the district in the manner provided by
18-18 general law applicable to municipal utility districts. In the
18-19 event a majority of the votes cast at a confirmation election is
18-20 against the creation of the district, the board shall not call
18-21 another confirmation election for six months after the date the
18-22 former confirmation election is held. Prior to a successful
18-23 confirmation election, the district may not borrow money or levy or
18-24 assess taxes; however, the district shall have the power to carry
18-25 on such other business as the board may determine.
19-1 (c) An election to authorize or to discontinue the levy and
19-2 assessment of taxes may be held at the same time and in conjunction
19-3 with a confirmation or directors election.
19-4 (d) An election for directors shall be held on the first
19-5 Saturday in May in each even-numbered year in the manner provided
19-6 by general law applicable to municipal utility districts, and the
19-7 appropriate number of directors shall be elected for four-year
19-8 terms.
19-9 SECTION 10. OPEN MEETINGS AND RECORDS. The district is a
19-10 political subdivision for purposes of the open meetings law,
19-11 Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
19-12 (Article 6252-17, Vernon's Texas Civil Statutes), and the open
19-13 records law, Chapter 424, Acts of the 63rd Legislature, Regular
19-14 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes),
19-15 and shall solely for the purposes thereof be considered a municipal
19-16 utility district.
19-17 SECTION 11. LIMITED SALES AND USE TAX. (a) The words and
19-18 phrases used in this section and defined by Chapters 151 and 321,
19-19 Tax Code, have the meanings assigned by Chapters 151 and 321, Tax
19-20 Code.
19-21 (b) Except as otherwise provided in this section, Subtitles
19-22 A and B, Title 2, and Chapter 151, Tax Code, apply to the taxes and
19-23 to the administration and enforcement of the taxes imposed by this
19-24 district pursuant to this Act in the same manner that those laws
19-25 apply to state taxes.
20-1 (c) The district may adopt or repeal the limited sales and
20-2 use tax authorized by this section at an election in which a
20-3 majority of the qualified voters of the district voting in such
20-4 election approve the adoption or the abolition of the tax, as
20-5 applicable.
20-6 (d) The provisions of Subchapters C, D, E, and F, Chapter
20-7 323, Tax Code, relating to county sales and use taxes shall apply
20-8 to the application, collection, and administration of a sales and
20-9 use tax imposed under this Act, to the extent not inconsistent with
20-10 the provisions of this Act, and with the same effect as if
20-11 references therein to a county or a commissioners court referred to
20-12 the district or its board; provided that Sections 323.401 through
20-13 323.404 and Section 323.505, Tax Code, do not apply.
20-14 (e) A tax imposed under this Act or the repeal or reduction
20-15 of a tax under this Act takes effect on October 1 after the
20-16 expiration of the first complete calendar quarter occurring after
20-17 the date on which the comptroller receives the notice required by
20-18 Subsection (b), Section 323.405, Tax Code, or Subsection (i) of
20-19 this section.
20-20 (f) On adoption of the tax authorized by this Act, there is
20-21 imposed a tax on the receipts from the sale at retail of taxable
20-22 items within the district at the rate of one percent, as well as an
20-23 excise tax on the use, storage, or other consumption within the
20-24 district of taxable items purchased, leased, or rented from a
20-25 retailer during the period that the tax is effective within the
21-1 district. The rate of the excise tax is the same as the rate of
21-2 the sales tax portion of the tax and is applied to the sales price
21-3 of the taxable item. With respect to a taxable service, "use"
21-4 means the derivation in the district of direct or indirect benefit
21-5 from the service.
21-6 (g) An election to authorize or repeal a limited sales and
21-7 use tax may be called by order of the board and must be held on the
21-8 next lawfully available uniform election date occurring not less
21-9 than 45 days after the date on which the order calling the election
21-10 was passed. Notice of the election shall be given and the election
21-11 shall be held and conducted in the manner prescribed by general law
21-12 for bond elections for municipal utility districts. The ballots
21-13 shall be printed to provide for voting for or against the
21-14 proposition "Adoption of a one percent district sales and use tax
21-15 within the district" or "Abolition of the district sales and use
21-16 tax within the district," as appropriate.
21-17 (h) In the event that all or part of the territory of the
21-18 district is annexed by a municipality which has adopted and is
21-19 imposing a sales and use tax, the sales and use tax imposed by the
21-20 district in such annexed territory shall be reduced, if required to
21-21 comply with the provisions hereof, in even multiples of one-half
21-22 percent, and without the necessity for an election, such that the
21-23 combined rate of all sales and use taxes imposed by the county, the
21-24 annexing municipality, and all other political subdivisions within
21-25 the annexed territory of the district will not exceed two percent,
22-1 provided, that a sales and use tax previously adopted by the
22-2 district for such annexed territory shall not be reduced to less
22-3 than one-half percent and provided further that no reduction of the
22-4 district's sales and use tax in the portions of the district not so
22-5 annexed shall be required.
22-6 (i) Within 10 days after the annexation or exclusion of
22-7 territory by the district or the annexation of all or part of the
22-8 territory of the district by a municipality requiring a reduction
22-9 of the district's sales and use tax, as provided in Subsection (h)
22-10 of this section, the board shall send to the comptroller by United
22-11 States certified or registered mail certified copies of all
22-12 resolutions, orders, or ordinances pertaining to such events.
22-13 SECTION 12. LIMITATIONS ON INDEBTEDNESS. The district may
22-14 borrow money for its corporate purposes and evidence such
22-15 indebtedness by one or more contracts, promissory notes, or similar
22-16 instruments provided that no such indebtedness shall be incurred by
22-17 the district unless the taxes and other net revenues to be realized
22-18 by the district during the one-year period following the incurrence
22-19 of such indebtedness are projected by the board to be sufficient,
22-20 together with funds on hand and available or projected to be on
22-21 hand and available to the district from other sources, including
22-22 gifts, grants, loans, conveyances, transfers, bequests, donations,
22-23 or other financial assistance, to repay or discharge such
22-24 indebtedness within such one-year period.
22-25 SECTION 13. CONTRACTS WITH DISTRICT. The district is
23-1 authorized to contract with a city, county, other political
23-2 subdivision, corporation, or other persons to carry out the
23-3 purposes of this Act on such terms and conditions and for such
23-4 period of time as the board may determine. A state agency, city,
23-5 county, other political subdivision, corporation, individual, or
23-6 other entity may contract with the district to carry out the
23-7 purposes of this Act without any further authorization,
23-8 notwithstanding any other law or charter provision to the contrary.
23-9 SECTION 14. DISSOLUTION. The board may elect by majority
23-10 vote to dissolve the district at any time, and the board shall
23-11 dissolve the district on written petition of the owners of 75
23-12 percent, in terms of acreage, of the real property in the district;
23-13 however, the district may not be dissolved by the board if the
23-14 district has any outstanding indebtedness or contractual
23-15 obligations until such indebtedness or contractual obligations have
23-16 been repaid or discharged.
23-17 SECTION 15. NOTICE AND CONSENT. The legislature finds the
23-18 proper and legal notice of the intention to introduce this Act,
23-19 setting forth the general substance of this Act, has been published
23-20 as provided by law, and the notice and a copy of this Act have been
23-21 furnished to all persons, agencies, officials, or entities to which
23-22 they are required to be furnished by the constitution and laws of
23-23 this state, including the governor, who has submitted the notice
23-24 and Act to the Texas Water Commission. The legislature further
23-25 finds that the Texas Water Commission has filed its recommendations
24-1 relating to this Act with the governor, lieutenant governor, and
24-2 speaker of the house of representatives within the required time.
24-3 All requirements of the constitution and laws of this state and the
24-4 rules and procedures of the legislature with respect to the notice,
24-5 introduction, and passage of this Act have been fulfilled and
24-6 accomplished.
24-7 SECTION 16. SEVERABILITY. The provisions of this Act are
24-8 severable. If any word, phrase, clause, sentence, section,
24-9 provision, or part of this Act is held invalid or unconstitutional,
24-10 it shall not affect the validity of the remaining portions, and it
24-11 is declared to be the legislative intent that this Act would have
24-12 been passed as to the remaining portions regardless of the
24-13 invalidity of any part.
24-14 SECTION 17. EMERGENCY. The importance of this legislation
24-15 and the crowded condition of the calendars in both houses create an
24-16 emergency and an imperative public necessity that the
24-17 constitutional rule requiring bills to be read on three several
24-18 days in each house be suspended, and this rule is hereby suspended,
24-19 and that this Act take effect and be in force from and after its
24-20 passage, and it is so enacted.