1-1 By: Parker S.B. No. 1373
1-2 (In the Senate - Filed April 14, 1993; April 15, 1993, read
1-3 first time and rereferred to Committee on Natural Resources;
1-4 April 15, 1993, referred to Committee on Economic Development;
1-5 April 15, 1993, reported favorably by the following vote: Yeas 7,
1-6 Nays 0; April 15, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 A BILL TO BE ENTITLED
1-21 AN ACT
1-22 relating to the creation, administration, powers, including taxing
1-23 powers, duties, operations, financing, and dissolution of the Town
1-24 Center Improvement District of Montgomery County, Texas, and the
1-25 power of certain entities to contract with the district.
1-26 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-27 SECTION 1. CREATION; LEGISLATIVE DECLARATION.
1-28 (a) Notwithstanding the general law relating to consent by
1-29 political subdivisions to the creation of conservation and
1-30 reclamation districts and the inclusion of land in those districts,
1-31 there is hereby created and established within Montgomery County,
1-32 Texas, in the form and manner hereinafter set forth, a special
1-33 district, to be known as the Town Center Improvement District of
1-34 Montgomery County, Texas, which shall be a governmental agency, a
1-35 body politic and corporate, and a political subdivision of the
1-36 state.
1-37 (b) The district is a unit of government for purposes of the
1-38 Texas Tort Claims Act (Chapter 101, Civil Practice and Remedies
1-39 Code), and operations of the district are considered to be
1-40 essential governmental functions and not proprietary functions for
1-41 all purposes, including the application of the Texas Tort Claims
1-42 Act.
1-43 (c) The name of the district may be changed by resolution of
1-44 the board of directors of the district at any time.
1-45 (d) The creation of the district is declared to be essential
1-46 to the accomplishment of the purposes of Article III, Section 52,
1-47 and Article XVI, Section 59, of the Texas Constitution and to the
1-48 accomplishment of the several other public purposes stated in this
1-49 Act.
1-50 (e) The legislature finds, determines, and declares that the
1-51 creation of the district is necessary to promote, develop,
1-52 encourage, and maintain employment, commerce, economic development,
1-53 and the public welfare in the Town Center area of Montgomery
1-54 County. It is the legislature's intent that the creation of the
1-55 district and this legislation not be interpreted to relieve
1-56 Montgomery County or any other governmental agency, political
1-57 subdivision, or municipality from providing the present level of
1-58 services to the area included within the district or to release the
1-59 obligations each entity has or may hereafter have to provide
1-60 services to that area. The district is created to supplement and
1-61 not supplant such services in the area included within the
1-62 district.
1-63 SECTION 2. DEFINITIONS. In this Act:
1-64 (1) "Board" means the board of directors of the
1-65 district.
1-66 (2) "District" means the Town Center Improvement
1-67 District of Montgomery County, Texas.
1-68 (3) "Improvement project" means any program or
2-1 project, whether individual, intermittent, or continuing and
2-2 whether located or conducted within or without the district, for
2-3 the construction, acquisition, lease, rental, installment purchase,
2-4 improvement, rehabilitation, repair, relocation, operation, or
2-5 maintenance of any works, improvements, or facilities or the
2-6 provision, support, enhancement, improvement, extension, or
2-7 expansion of services, whether provided to, for, by, or on behalf
2-8 of the district, necessary for the accomplishment of the public
2-9 purposes of the district, including:
2-10 (A) landscaping; lighting, banners, and signs;
2-11 streets or sidewalks; hike and bike paths and trails, pedestrian
2-12 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
2-13 transit corridor beautification and improvements; drainage or storm
2-14 water detention improvements; solid waste, water, sewer, or power
2-15 facilities and services, including but not limited to electrical,
2-16 gas, steam, cogeneration, and chilled water facilities; parks,
2-17 lakes, gardens, recreational facilities, open space, scenic areas,
2-18 and related exhibits and preserves; fountains, plazas, and
2-19 pedestrian malls; public art and sculpture and related exhibits and
2-20 facilities; educational and cultural exhibits and facilities;
2-21 exhibits, displays, attractions, and facilities for special events,
2-22 holidays, and seasonal or cultural celebrations; off-street parking
2-23 facilities, bus terminals, heliports, mass-transit, and
2-24 roadway-borne or water-borne transportation and people-mover
2-25 systems; and any other public improvements, facilities, or services
2-26 similar to the foregoing;
2-27 (B) the removal, razing, demolition, or clearing
2-28 of land or improvements in connection with any improvement project;
2-29 (C) the acquisition of real or personal property
2-30 or any interest therein in connection with an authorized
2-31 improvement project provided that the district shall not have the
2-32 power of eminent domain; and
2-33 (D) any special or supplemental services for the
2-34 improvement and promotion of the district or adjacent areas or for
2-35 the protection of public health and safety within or adjacent to
2-36 the district, including but not limited to advertising, promotion,
2-37 tourism, health and sanitation, public safety, security, fire
2-38 protection and emergency medical services, business recruitment,
2-39 development, elimination of traffic congestion, and recreational,
2-40 educational, and cultural improvements, enhancements, and services.
2-41 SECTION 3. BOUNDARIES. The district shall include all of
2-42 the territory contained within the following described area:
2-43 Being a 802.95 acre tract of land situated in Montgomery County,
2-44 Texas in the Walker County School Land Survey, A-599, John Taylor
2-45 Survey, A-547, and the Montgomery County School Land Survey, A-350,
2-46 and being more particularly described by metes and bounds as
2-47 follows with all control referred to the Texas State Plan
2-48 Coordinate System, Lambert Projection, South Central Zone:
2-49 BEGINNING at a point for corner in the south right-of-way line of
2-50 Woodlands Parkway, as recorded in Volume 823, Page 224, of the
2-51 Montgomery County Deed Records, located in the west right-of-way
2-52 line of Interstate Highway No. 45 having a Texas State Plane
2-53 Coordinate Value of X= 3,121,407.94, Y= 861,543.52 and being S
2-54 4154'27" E, 7,443.73 from the northwest corner of said Walker
2-55 County School Land Survey, A-599;
2-56 THENCE along the south right-of-way line of said Woodlands Parkway
2-57 as follows:
2-58 N 7036'26" W, 91.17 feet to a point,
2-59 S 8551'45" W, 577.61 feet to a point,
2-60 S 8548'56" W, 525.94 feet to a point,
2-61 S 8244'32" W, 186.58 feet to a point,
2-62 S 8346'10" W, 810.17 feet to a point,
2-63 S 8439'07" W, 195.75 feet to a point,
2-64 S 8143'27" W, 874.67 feet to a point,
2-65 S 8250'02" W, 630.85 feet to a point,
2-66 S 8632'35" W, 308.58 feet to a point,
2-67 S 8622'47" W, 1,194.19 feet to a point,
2-68 S 8428'14" W, 600.33 feet to a point,
2-69 And S 7428'07" W, 745.32 feet to a point for corner at its
2-70 intersection with the east right-of-way line of Grogan's Mill Road;
3-1 THENCE S 3248'58" W, 187.55 feet to a point for corner;
3-2 THENCE N 7918'19" W, 210.00 feet to a point for corner;
3-3 THENCE N 2212'11" W, 78.06 feet to a point for corner;
3-4 THENCE N 1755'38" E, 654.45 feet to a point for corner;
3-5 THENCE N 4007'24" E, 529.39 feet to a point for corner;
3-6 THENCE N 2732'47" E, 1,121.03 feet to a point for corner;
3-7 THENCE N 2150'09" E, 150.75 feet to a point for corner;
3-8 THENCE N 2732'47" E, 43.97 feet to a point for corner;
3-9 THENCE N 6227'13" W, 584.03 feet to a point for corner;
3-10 THENCE N 2732'47" E, 382.16 feet to a point for corner;
3-11 THENCE northwesterly along a curve to the right an arc distance of
3-12 21.26 feet based on a radius of 270.00 feet, a central angle of
3-13 0430'45" and having a chord which bears N 6442'35" W a chord
3-14 distance of 21.26 feet to a point of tangency;
3-15 THENCE N 6227'13" W, 352.65 feet to a point of curvature;
3-16 THENCE along a curve to the right an arc distance of 194.65 feet
3-17 based on a radius of 720.00 feet, a central angle of 1529'24" and
3-18 having a chord which bears N 5442'31" W a chord distance of 194.06
3-19 feet to a point of tangency;
3-20 THENCE N 4657'49" W, 154.37 feet to a point for corner;
3-21 THENCE N 4302'11" E, 50.00 feet to a point of curvature;
3-22 THENCE along a curve to the left an arc distance of 200.28 feet
3-23 based on a radius of 425.00 feet, a central angle of 2700'00" and
3-24 having a chord which bears N 2932'11" E a chord distance of 198.43
3-25 feet to a point of tangency;
3-26 THENCE N 1602'11" E, 295.95 feet to a point of curvature;
3-27 THENCE along a curve to the left an arc distance of 212.31 feet
3-28 based on a radius of 1,450.00 feet, a central angle of 0823'21"
3-29 and having a chord which bears N 1150'30" E a chord distance of
3-30 212.12 feet to a point of tangency;
3-31 THENCE N 0738'50" E, 130.20 feet to a point for corner;
3-32 THENCE N 5111'04" W, 374.66 feet to a point for corner;
3-33 THENCE N 4800'30" W, 634.11 feet to a point for corner;
3-34 THENCE N 5917'39" W, 62.45 feet to a point for corner;
3-35 THENCE N 1823'46" W, 93.02 feet to a point for corner;
3-36 THENCE N 1752'41" E, 59.29 feet to a point for corner;
3-37 THENCE N 4534'13" E, 97.61 feet to a point for corner;
3-38 THENCE N 1737'12" E, 183.70 feet to a point for corner;
3-39 THENCE N 1417'46" W, 108.32 feet to a point for corner;
3-40 THENCE N 1918'14" E, 72.16 feet to a point for corner;
3-41 THENCE N 3337'34" E, 104.17 feet to a point for corner;
3-42 THENCE S 7557'49" E, 12.49 feet to a point of curvature;
3-43 THENCE along a curve to the right an arc distance of 974.72 feet
3-44 based on a radius of 2,080.00 feet, a central angle of 2650'59"
3-45 and having a chord which bears S 6232'20" E a chord distance of
3-46 965.83 feet to a point of tangency;
3-47 THENCE S 4906'50" E, 142.10 feet to a point for corner;
3-48 THENCE N 3640'50" E, 828.08 feet to a point for corner;
3-49 THENCE S 4908'52" E, 346.64 feet to a point for corner;
3-50 THENCE N 8731'24" E, 536.99 feet to a point for corner;
3-51 THENCE S 0229'55" E, 115.53 feet to a point for corner;
3-52 THENCE S 0225'00" E, 590.05 feet to a point for corner;
3-53 THENCE S 4718'01" E, 244.25 feet to a point for corner;
3-54 THENCE S 8441'11" E, 194.52 feet to a point for corner;
3-55 THENCE N 8900'34" E, 555.28 feet to a point for corner;
3-56 THENCE N 8047'31" E, 300.00 feet to a point for corner;
3-57 THENCE N 1102'00" W, 190.00 feet to a point for corner;
3-58 THENCE N 0208'49" W, 975.00 feet to a point for corner;
3-59 THENCE N 8751'11" E, 580.00 feet to a point for corner;
3-60 THENCE S 0208'49" E, 126.11 feet to a point for corner;
3-61 THENCE N 8751'11" E, 440.00 feet to a point for corner;
3-62 THENCE N 0208'49" W, 486.11 feet to a point for corner;
3-63 THENCE N 8751'11" E, 32.96 feet to a point of curvature;
3-64 THENCE along a curve to the right an arc distance of 528.31 feet
3-65 based on a radius of 5,045.00 feet, a central angle of 0600'00"
3-66 and having a chord which bears S 8908'49" E a chord distance of
3-67 528.07 feet to a point of tangency;
3-68 THENCE S 8608'49" E, 99.85 feet to a point for corner;
3-69 THENCE N 4851'11" E, 14.14 feet to a point for corner;
3-70 THENCE N 0351'11" E, 39.31 feet to a point of curvature;
4-1 THENCE along a curve to the right an arc distance of 372.34 feet
4-2 based on a radius of 1,255.00 feet, a central angle of 1659'56"
4-3 and having a chord which bears N 1221'09" E a chord distance of
4-4 370.98 feet to a point of tangency;
4-5 THENCE N 2051'07" E 416.95 feet to a point for corner;
4-6 THENCE N 2408'53" W, 35.36 feet to a point for corner;
4-7 THENCE N 6908'53" W, 10.41 feet to a point for corner;
4-8 THENCE N 2051'07" E, 110.00 feet to a point for corner;
4-9 THENCE S 6908'53" E, 5.41 feet to a point for corner;
4-10 THENCE N 6551'07" E, 35.36 feet to a point for corner;
4-11 THENCE S 6908'53" E, 115.00 feet to a point for corner;
4-12 THENCE S 2408'53" E, 35.36 feet to a point for corner;
4-13 THENCE S 6908'53" E, 73.98 feet to a point of curvature;
4-14 THENCE along a curve to the left an arc distance of 379.33 feet
4-15 based on a radius of 945.00 feet, a central angle of 2259'56" and
4-16 having a chord which bears S 8038'51" E a chord distance of 376.79
4-17 feet to a point of tangency;
4-18 THENCE N 8751'11" E, 478.87 feet to a point of curvature;
4-19 THENCE along a curve to the left an arc distance of 135.57 feet
4-20 based on a radius of 1,945.00 feet, a central angle of 0359'37"
4-21 and having a chord which bears N 8551'22" E a chord distance of
4-22 135.54 feet to a point of tangency;
4-23 THENCE N 8351'34" E, 330.58 feet to a point for corner;
4-24 THENCE S 0608'26" E, 251.66 feet to a point for corner;
4-25 THENCE S 0619'08" E, 104.20 feet to a point for corner;
4-26 THENCE S 0534'08" E, 335.41 feet to a point for corner;
4-27 THENCE S 0629'11" E, 327.06 feet to a point for corner;
4-28 THENCE S 0744'55" E, 239.82 feet to a point for corner;
4-29 THENCE S 8821'10" W, 186.42 feet to a point for corner;
4-30 THENCE S 0208'52" E, 436.57 feet to a point for corner;
4-31 THENCE N 8722'38" E, 220.97 feet to a point for corner;
4-32 THENCE S 0637'09" E, 662.44 feet to a point for corner;
4-33 THENCE S 0647'16" E, 337.68 feet to a point for corner;
4-34 THENCE S 0639'37" E, 500.77 feet to a point for corner;
4-35 THENCE S 0646'14" E, 576.28 feet to a point for corner;
4-36 THENCE S 0856'30" E, 493.48 feet to a point for corner;
4-37 THENCE S 0842'03" E, 450.64 feet to a point for corner;
4-38 THENCE S 0848'51" E, 498.47 feet to a point for corner;
4-39 THENCE S 0849'00" E, 368.85 feet to a point for corner;
4-40 THENCE S 2016'52" E, 209.35 feet to a point for corner;
4-41 THENCE S 0453'48" E, 289.23 feet to a point for corner;
4-42 THENCE S 7841'39" W, 528.50 feet to a point for corner;
4-43 THENCE N 1121'21" W, 49.94 feet to the POINT OF BEGINNING and
4-44 containing 802.95 acres of land.
4-45 SECTION 4. FINDINGS RELATING TO BOUNDARIES. The legislature
4-46 finds that the boundaries and field notes of the district form a
4-47 closure. If any mistake is made in the field notes or in copying
4-48 the field notes in the legislative process, it in no way affects
4-49 the organization, existence, and validity of the district or the
4-50 right, power, or authority of the district to enter into any type
4-51 of contract for the purposes for which the district is created or
4-52 the right of the district to levy, assess, and collect taxes, fees,
4-53 or charges, as herein provided, and in no other manner affects the
4-54 legality or operations of the district or its board.
4-55 SECTION 5. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) The
4-56 legislature finds that all of the land and other property included
4-57 within the boundaries of the district will be benefited by the
4-58 works, projects, improvements, and services that are to be
4-59 accomplished by the district under powers conferred by Article III,
4-60 Section 52, and Article XVI, Section 59, of the Texas Constitution
4-61 and other powers granted under this Act and that the district is
4-62 created to serve a public use and benefit.
4-63 (b) The legislature finds that the creation of the district
4-64 is essential to further the public purposes of the economic
4-65 development and diversification of the state, the elimination of
4-66 unemployment and underemployment, and the stimulation and
4-67 development of transportation and commerce; that it is in the
4-68 public interest; and that it will promote the health, safety, and
4-69 general welfare of residents, employers, employees, and consumers
4-70 in the district and of the general public. The present and
5-1 prospective traffic congestion in the district and the safety of
5-2 pedestrians and the limited availability of funds require the
5-3 promotion and development of public transportation and pedestrian
5-4 facilities and systems by new and alternative means, and the
5-5 district will serve the public purpose of securing expanded and
5-6 improved transportation and pedestrian facilities and systems. The
5-7 district will provide needed funding for the Town Center area to
5-8 preserve, maintain, and enhance the economic health and vitality of
5-9 the area as a community and business and commerce center. The
5-10 district will further promote the health, safety, welfare,
5-11 education, convenience, and enjoyment of the public by improving,
5-12 landscaping, and developing certain areas within and adjacent to
5-13 the district and providing public services and facilities within
5-14 and adjacent to the district which are necessary for the
5-15 restoration, preservation, enhancement, and enjoyment of scenic and
5-16 aesthetic beauty. Each and all of the improvement projects
5-17 authorized by this Act are hereby found and declared to be
5-18 essential to carrying out a public purpose. The district will not
5-19 act as the agent or instrumentality of any private interests, even
5-20 though many private interests will be benefited by the district as
5-21 will the general public.
5-22 (c) This Act shall be liberally construed in conformity with
5-23 the legislative findings and purposes set forth herein.
5-24 SECTION 6. GENERAL POWERS. (a) The district has all of the
5-25 rights, powers, privileges, authority, and functions conferred on
5-26 municipal management districts by Subchapter E, Chapter 375, Local
5-27 Government Code, and by the general laws of the state on
5-28 conservation and reclamation districts created under Article XVI,
5-29 Section 59, of the Texas Constitution, and on road districts and
5-30 road utility districts created pursuant to Article III, Section 52,
5-31 of the Texas Constitution, including those conferred by Chapter 54,
5-32 Water Code, and Chapter 13, Acts of the 68th Legislature, 2nd
5-33 Called Session, 1984 (Article 6674r-1, Vernon's Texas Civil
5-34 Statutes), together with the additional rights, powers, privileges,
5-35 authority, and functions contained in this Act.
5-36 (b) If any provision of the general law is in conflict or
5-37 inconsistent with this Act, this Act prevails. Any general law
5-38 which supplements the power and authority of the district, to the
5-39 extent not in conflict or inconsistent with this Act, is adopted
5-40 and incorporated by reference.
5-41 SECTION 7. ADDITIONAL SPECIFIC POWERS AND DUTIES. In
5-42 addition to the general powers set forth in Section 6 of this Act,
5-43 the board may, subject to the provisions and limitations
5-44 hereinafter set forth:
5-45 (1) levy, assess, and apply the proceeds from a
5-46 limited sales and use tax for the district's purposes;
5-47 (2) borrow money for the corporate purposes of the
5-48 district;
5-49 (3) add or exclude territory in the manner provided by
5-50 Subchapter H, Chapter 54, Water Code;
5-51 (4) contract with any person or entity for the
5-52 accomplishment of any of the district's purposes including without
5-53 limitation contracts for the payment, repayment, or reimbursement,
5-54 out of tax proceeds or any other specified source of funds, of any
5-55 costs and reasonable carrying costs incurred by that person for or
5-56 on behalf of the district, including all or part of the costs of
5-57 any improvement project;
5-58 (5) make application for and contract with any person
5-59 or entity to receive, administer, and perform the district's duties
5-60 and obligations under any federal, state, local, or private gift,
5-61 grant, loan, conveyance, transfer, bequest, donation, or other
5-62 financial assistance arrangement relating to the investigation,
5-63 planning, analysis, study, design, acquisition, construction,
5-64 improvement, completion, implementation, or operation by the
5-65 district or others of a proposed or existing improvement project;
5-66 (6) make, adopt, revise, repeal, amend, promulgate,
5-67 and enforce by ordinary civil remedies reasonable rules and
5-68 regulations for the administration and operation of the district,
5-69 the use, enjoyment, availability, protection, security, and
5-70 maintenance of the district's properties and facilities, and
6-1 providing for public safety and security within the district;
6-2 (7) establish, revise, repeal, enforce, collect, and
6-3 apply the proceeds from user fees, concessions, admissions,
6-4 rentals, or other similar fees or charges for the enjoyment, sale,
6-5 rental, or other use of the district's facilities, services,
6-6 properties, or improvement projects; however, because the district
6-7 is created in an area that is devoted primarily to commercial and
6-8 business activity, the district may not impose an impact fee or
6-9 assessment on a single family residential property or a residential
6-10 duplex, triplex, quadruplex, or condominium;
6-11 (8) provide or secure the payment or repayment of the
6-12 costs and expenses of the establishment, administration, and
6-13 operation of the district and the district's costs or share of the
6-14 costs of any improvement project, or district contractual
6-15 obligation or indebtedness, by or through a lease, installment
6-16 purchase contract, or other agreement with any person or the levy
6-17 and assessment of taxes, user fees, concessions, rentals, or other
6-18 revenues or resources of the district; and
6-19 (9) undertake separately or jointly with other persons
6-20 or entities and pay all or part of the cost of improvement
6-21 projects, including improvement projects for improving, enhancing,
6-22 and supporting public safety and security, fire protection and
6-23 emergency medical services, and law enforcement within and adjacent
6-24 to the district and improvement projects that confer a general
6-25 benefit on the entire district and the areas adjacent thereto or a
6-26 special benefit on a definable part of the district, which may be
6-27 the entire district or any part thereof; however, the district
6-28 shall not be authorized to employ peace officers.
6-29 SECTION 8. BOARD OF DIRECTORS. (a) The district is
6-30 governed by a board of five directors who shall serve for staggered
6-31 terms of four years.
6-32 (b)(1) To be qualified to serve as a director a person must
6-33 be at least 18 years old and must be:
6-34 (A) a resident of the district;
6-35 (B) an individual owner of real property in the
6-36 district;
6-37 (C) an individual owner of stock, whether
6-38 beneficial or otherwise, of a corporate owner of real property in
6-39 the district;
6-40 (D) an individual owner of a beneficial interest
6-41 in a trust that owns real property in the district; or
6-42 (E) an agent, employee, officer, or director of
6-43 any owner of real property described in Paragraphs (B), (C), or (D)
6-44 of this subdivision.
6-45 (2) A person or entity that owns an interest in a
6-46 general or limited partnership owner of real property in the
6-47 district or who has a lease of real property in the district with a
6-48 remaining term of 10 years or more, excluding options, shall be
6-49 deemed to be an owner of real property for purposes of this Act.
6-50 (c)(1) At the time this Act takes effect, the following
6-51 persons shall constitute the initial board and shall serve as
6-52 provided herein:
6-53 (A) Vicki D. Armstrong;
6-54 (B) Roger L. Galatas;
6-55 (C) R. A. Kutsche;
6-56 (D) Michael H. Richmond; and
6-57 (E) Bruce M. Withers, Jr.
6-58 (2) If one or more of the initial directors listed in
6-59 this subsection fails to qualify for office within 90 days of the
6-60 effective date of this Act, the remaining directors shall appoint
6-61 qualified persons to fill the vacancies for the unexpired terms.
6-62 (d) Of the initial directors, two shall serve until the
6-63 first Saturday in May, 1994, or until their successors have been
6-64 elected or appointed and have qualified, and three shall serve
6-65 until the first Saturday in May, 1996, or until their successors
6-66 have been elected or appointed and have qualified. The board shall
6-67 determine the terms of the initial directors by mutual agreement or
6-68 by lot.
6-69 (e) A vacancy in the office of director shall be filled by
6-70 appointment by a majority vote of the remaining directors. The
7-1 board may remove a director for misconduct or failure to carry out
7-2 his duties by unanimous vote of all of the remaining directors.
7-3 (f) As soon as practicable after a director is elected or
7-4 appointed, such person shall execute a bond for $10,000 payable to
7-5 the district and conditioned on the faithful performance of his
7-6 duties. All bonds of the directors shall be approved by the board,
7-7 and each director shall take the oath of office prescribed by the
7-8 constitution for public officers. The bond and oath shall be filed
7-9 with the district and retained in its records.
7-10 (g) After directors have been appointed or elected and have
7-11 qualified by executing a bond and taking the proper oath, they
7-12 shall organize or reorganize by electing a president, a
7-13 vice-president, a secretary, and any other officers as in the
7-14 judgment of the board are necessary.
7-15 (h) A position on the board may not be construed to be a
7-16 civil office of emolument for any purpose, including those purposes
7-17 described in Article XVI, Section 40, of the Texas Constitution.
7-18 (i) A director is not entitled to compensation for service
7-19 on the board but is entitled to be reimbursed for necessary
7-20 expenses incurred in carrying out the duties and responsibilities
7-21 of a director.
7-22 (j) Except as provided in Subsection (e) of this section,
7-23 three directors constitute a quorum for the consideration of
7-24 matters pertaining to the purposes of the district, and a
7-25 concurrence of a majority of a quorum of directors shall be
7-26 required for any official action of the district.
7-27 (k) A person who qualifies to serve on the board under
7-28 Subsection (b) of this section shall be qualified to serve as a
7-29 director and participate in all votes pertaining to the business of
7-30 the district regardless of any statutory provisions to the
7-31 contrary.
7-32 SECTION 9. CONFIRMATION AND DIRECTORS ELECTIONS. (a) As
7-33 soon as practicable after all initial directors have qualified for
7-34 office, the initial directors shall file the statement and take the
7-35 oath of office required of appointed officials and meet in an
7-36 organizational session. If the board does not determine to call
7-37 hearings to exclude territory from the district, the board at the
7-38 organizational meeting shall call a confirmation election to be
7-39 held on the next lawfully available uniform election date occurring
7-40 not less than 45 days after the date of such organizational
7-41 meeting.
7-42 (b) The confirmation election shall be called and held to
7-43 confirm the establishment of the district in the manner provided by
7-44 general law applicable to municipal utility districts. In the
7-45 event a majority of the votes cast at a confirmation election is
7-46 against the creation of the district, the board shall not call
7-47 another confirmation election for six months after the date the
7-48 former confirmation election is held. Prior to a successful
7-49 confirmation election, the district may not borrow money or levy or
7-50 assess taxes; however, the district shall have the power to carry
7-51 on such other business as the board may determine.
7-52 (c) An election to authorize or to discontinue the levy and
7-53 assessment of taxes may be held at the same time and in conjunction
7-54 with a confirmation or directors election.
7-55 (d) An election for directors shall be held on the first
7-56 Saturday in May in each even-numbered year in the manner provided
7-57 by general law applicable to municipal utility districts, and the
7-58 appropriate number of directors shall be elected for four-year
7-59 terms.
7-60 SECTION 10. OPEN MEETINGS AND RECORDS. The district is a
7-61 political subdivision for purposes of the open meetings law,
7-62 Chapter 271, Acts of the 60th Legislature, Regular Session, 1967
7-63 (Article 6252-17, Vernon's Texas Civil Statutes), and the open
7-64 records law, Chapter 424, Acts of the 63rd Legislature, Regular
7-65 Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes),
7-66 and shall solely for the purposes thereof be considered a municipal
7-67 utility district.
7-68 SECTION 11. LIMITED SALES AND USE TAX. (a) The words and
7-69 phrases used in this section and defined by Chapters 151 and 321,
7-70 Tax Code, have the meanings assigned by Chapters 151 and 321, Tax
8-1 Code.
8-2 (b) Except as otherwise provided in this section, Subtitles
8-3 A and B, Title 2, and Chapter 151, Tax Code, apply to the taxes and
8-4 to the administration and enforcement of the taxes imposed by this
8-5 district pursuant to this Act in the same manner that those laws
8-6 apply to state taxes.
8-7 (c) The district may adopt or repeal the limited sales and
8-8 use tax authorized by this section at an election in which a
8-9 majority of the qualified voters of the district voting in such
8-10 election approve the adoption or the abolition of the tax, as
8-11 applicable.
8-12 (d) The provisions of Subchapters C, D, E, and F, Chapter
8-13 323, Tax Code, relating to county sales and use taxes shall apply
8-14 to the application, collection, and administration of a sales and
8-15 use tax imposed under this Act, to the extent not inconsistent with
8-16 the provisions of this Act, and with the same effect as if
8-17 references therein to a county or a commissioners court referred to
8-18 the district or its board; provided that Sections 323.401 through
8-19 323.404 and Section 323.505, Tax Code, do not apply.
8-20 (e) A tax imposed under this Act or the repeal or reduction
8-21 of a tax under this Act takes effect on October 1 after the
8-22 expiration of the first complete calendar quarter occurring after
8-23 the date on which the comptroller receives the notice required by
8-24 Subsection (b), Section 323.405, Tax Code, or Subsection (i) of
8-25 this section.
8-26 (f) On adoption of the tax authorized by this Act, there is
8-27 imposed a tax on the receipts from the sale at retail of taxable
8-28 items within the district at the rate of one percent, as well as an
8-29 excise tax on the use, storage, or other consumption within the
8-30 district of taxable items purchased, leased, or rented from a
8-31 retailer during the period that the tax is effective within the
8-32 district. The rate of the excise tax is the same as the rate of
8-33 the sales tax portion of the tax and is applied to the sales price
8-34 of the taxable item. With respect to a taxable service, "use"
8-35 means the derivation in the district of direct or indirect benefit
8-36 from the service.
8-37 (g) An election to authorize or repeal a limited sales and
8-38 use tax may be called by order of the board and must be held on the
8-39 next lawfully available uniform election date occurring not less
8-40 than 45 days after the date on which the order calling the election
8-41 was passed. Notice of the election shall be given and the election
8-42 shall be held and conducted in the manner prescribed by general law
8-43 for bond elections for municipal utility districts. The ballots
8-44 shall be printed to provide for voting for or against the
8-45 proposition "Adoption of a one percent district sales and use tax
8-46 within the district" or "Abolition of the district sales and use
8-47 tax within the district," as appropriate.
8-48 (h) In the event that all or part of the territory of the
8-49 district is annexed by a municipality which has adopted and is
8-50 imposing a sales and use tax, the sales and use tax imposed by the
8-51 district in such annexed territory shall be reduced, if required to
8-52 comply with the provisions hereof, in even multiples of one-half
8-53 percent, and without the necessity for an election, such that the
8-54 combined rate of all sales and use taxes imposed by the county, the
8-55 annexing municipality, and all other political subdivisions within
8-56 the annexed territory of the district will not exceed two percent,
8-57 provided that a sales and use tax previously adopted by the
8-58 district for such annexed territory shall not be reduced to less
8-59 than one-half percent and provided further that no reduction of the
8-60 district's sales and use tax in the portions of the district not so
8-61 annexed shall be required.
8-62 (i) Within 10 days after the annexation or exclusion of
8-63 territory by the district or the annexation of all or part of the
8-64 territory of the district by a municipality requiring a reduction
8-65 of the district's sales and use tax, as provided in Subsection (h)
8-66 of this section, the board shall send to the comptroller by United
8-67 States certified or registered mail certified copies of all
8-68 resolutions, orders, or ordinances pertaining to such events.
8-69 SECTION 12. LIMITATIONS ON INDEBTEDNESS. The district may
8-70 borrow money for its corporate purposes and evidence such
9-1 indebtedness by one or more contracts, promissory notes, or similar
9-2 instruments provided that no such indebtedness shall be incurred by
9-3 the district unless the taxes and other net revenues to be realized
9-4 by the district during the one-year period following the incurrence
9-5 of such indebtedness are projected by the board to be sufficient,
9-6 together with funds on hand and available or projected to be on
9-7 hand and available to the district from other sources, including
9-8 gifts, grants, loans, conveyances, transfers, bequests, donations,
9-9 or other financial assistance, to repay or discharge such
9-10 indebtedness within such one-year period.
9-11 SECTION 13. CONTRACTS WITH DISTRICT. The district is
9-12 authorized to contract with a city, county, other political
9-13 subdivision, corporation, or other persons to carry out the
9-14 purposes of this Act on such terms and conditions and for such
9-15 period of time as the board may determine. A state agency, city,
9-16 county, other political subdivision, corporation, individual, or
9-17 other entity may contract with the district to carry out the
9-18 purposes of this Act without any further authorization,
9-19 notwithstanding any other law or charter provision to the contrary.
9-20 SECTION 14. DISSOLUTION. The board may elect by majority
9-21 vote to dissolve the district at any time, and the board shall
9-22 dissolve the district on written petition of the owners of 75
9-23 percent, in terms of acreage, of the real property in the district;
9-24 however, the district may not be dissolved by the board if the
9-25 district has any outstanding indebtedness or contractual
9-26 obligations until such indebtedness or contractual obligations have
9-27 been repaid or discharged.
9-28 SECTION 15. NOTICE AND CONSENT. The legislature finds that
9-29 the proper and legal notice of the intention to introduce this Act,
9-30 setting forth the general substance of this Act, has been published
9-31 as provided by law, and the notice and a copy of this Act have been
9-32 furnished to all persons, agencies, officials, or entities to which
9-33 they are required to be furnished by the constitution and laws of
9-34 this state, including the governor, who has submitted the notice
9-35 and Act to the Texas Water Commission. The legislature further
9-36 finds that the Texas Water Commission has filed its recommendations
9-37 relating to this Act with the governor, lieutenant governor, and
9-38 speaker of the house of representatives within the required time.
9-39 All requirements of the constitution and laws of this state and the
9-40 rules and procedures of the legislature with respect to the notice,
9-41 introduction, and passage of this Act have been fulfilled and
9-42 accomplished.
9-43 SECTION 16. SEVERABILITY. The provisions of this Act are
9-44 severable. If any word, phrase, clause, sentence, section,
9-45 provision, or part of this Act is held invalid or unconstitutional,
9-46 it shall not affect the validity of the remaining portions, and it
9-47 is declared to be the legislative intent that this Act would have
9-48 been passed as to the remaining portions regardless of the
9-49 invalidity of any part.
9-50 SECTION 17. EMERGENCY. The importance of this legislation
9-51 and the crowded condition of the calendars in both houses create an
9-52 emergency and an imperative public necessity that the
9-53 constitutional rule requiring bills to be read on three several
9-54 days in each house be suspended, and this rule is hereby suspended,
9-55 and that this Act take effect and be in force from and after its
9-56 passage, and it is so enacted.
9-57 * * * * *
9-58 Austin,
9-59 Texas
9-60 April 15, 1993
9-61 Hon. Bob Bullock
9-62 President of the Senate
9-63 Sir:
9-64 We, your Committee on Economic Development to which was referred
9-65 S.B. No. 1373, have had the same under consideration, and I am
9-66 instructed to report it back to the Senate with the recommendation
9-67 that it do pass and be printed.
9-68 Parker,
9-69 Chairman
9-70 * * * * *
10-1 WITNESSES
10-2 No witnesses appeared on S.B. No. 1373.