Amend CSHB 2001 by adding the following appropriately
numbered sections:
SECTION 1. CREATION OF DISTRICT. (a) A special district to
be known as the "East Montgomery County Improvement District"
exists as a governmental agency, body politic and corporate, and
political subdivision of the state.
(b) The district is a governmental unit for purposes of
Chapter 101, Civil Practice and Remedies Code, and operations of
the district are considered for all purposes, including the
application of that chapter, to be essential governmental functions
and not proprietary functions.
(c) The name of the district may be changed by resolution of
the board.
SECTION 2. DECLARATION OF INTENT. (a) The creation of the
district is:
(1) essential to accomplish the purposes of Section
52, Article III, and Section 59, Article XVI, Texas Constitution,
and other public purposes stated in this Act; and
(2) necessary to promote, develop, encourage, and
maintain employment, commerce, economic development, and the public
welfare in the eastern area of Montgomery County.
(b) The district is created to supplement and not to
supplant the county, governmental agency, political subdivision, or
municipal services provided in the district. This Act does not:
(1) relieve the county or a governmental agency,
political subdivision, or municipality from providing the level of
services the entity provides in the district as of August 31, 1997;
or
(2) release the county or a governmental agency,
political subdivision, or municipality from the obligations the
entity has to provide services to that area.
SECTION 3. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "District" means the East Montgomery County
Improvement District.
(3) "County" means Montgomery County, Texas.
SECTION 4. BOUNDARIES. The boundaries of the district are
coextensive with the boundaries of the New Caney Independent School
District and the Splendora Independent School District as those
boundaries existed on January 1, 1997, but the district does not
include any portion of the City of Houston as it existed on January
1, 1997.
SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries
and field notes of the district form a closure. If a mistake is
made in the field notes or in copying the field notes in the
legislative process, the mistake does not in any way affect the:
(1) organization, existence, and validity of the
district;
(2) right or power of the district to enter into a
contract for the purposes for which the district is created;
(3) right of the district to impose, assess, and
collect taxes, fees, or charges; or
(4) legality or operations of the district or its
governing body.
SECTION 6. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) All
the land and other property included in the district will be
benefited by the works, projects, improvements, and services to be
provided by the district under powers granted by Section 52,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted by this Act.
(b) The district is created to serve a public use and
benefit. The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of the development and
diversification of the economy of the state; and
(2) eliminate unemployment and underemployment and
develop or expand transportation and commerce.
(c) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, and consumers in the district and
of the general public;
(2) promote and develop public transportation and
pedestrian facilities and systems by new and alternative means,
including securing expanded and improved transportation and
pedestrian facilities and systems;
(3) provide needed money for the area in the district
to preserve, maintain, and enhance the economic health and vitality
of the area as a community and business center; and
(4) promote the health, safety, welfare, education,
convenience, and enjoyment of the public by:
(A) improving, landscaping, and developing
certain areas in and adjacent to the district; and
(B) providing public services and facilities in
and adjacent to the district that are necessary for the
restoration, preservation, enhancement, and enjoyment of scenic and
aesthetic beauty.
(d) Each improvement project authorized by this Act is
essential to carry out a public purpose.
(e) The district will not act as the agent or
instrumentality of any private interest even though many private
interests will be benefited by the district, as will the general
public.
SECTION 7. INITIAL DIRECTORS. (a) The Commissioners Court
of Montgomery County shall appoint eight initial directors. To be
qualified for appointment as a director, a person must have the
qualifications specified in Section 12 of this Act.
(b) In making appointments, the commissioners court shall
attempt to compose the board of persons who reflect the residents
in the area of the district.
SECTION 8. CONFIRMATION ELECTION. (a) The initial
directors shall meet as soon as practicable after all initial
directors have qualified for office. The board shall call a
confirmation election to determine if the proposed district shall
be established. The board shall call the confirmation election at
the first meeting unless the board calls a hearing to exclude
territory from the district.
(b) The confirmation election shall be held in the manner
provided by Section 49.102, Water Code. The election must be held
on the next uniform election date provided by Section 41.001,
Election Code, that falls on or after the 45th day after the date
of the order calling the election.
(c) If a majority of the votes cast in the election are
against the creation of the district, the board may not call or
hold another confirmation election until the expiration of six
months after the date of the most recent confirmation election.
(d) Before the creation of the district is confirmed, the
district may not borrow money or impose taxes. The district may
carry on other business as the board determines.
SECTION 9. ELECTION OF DIRECTORS. (a) As soon as
practicable after the first anniversary of the date on which the
creation of the district is confirmed, the board shall call and
hold an election to elect the initial permanent directors.
(b) The election shall be held in the manner provided by
Section 49.102, Water Code.
(c) The election must be held on the next uniform election
date provided by Section 41.001, Election Code, that falls on or
after the 45th day after the date of the order calling the
election. The directors elected at the first election shall draw
lots to determine their terms so that four serve terms expiring on
the first July 1 of an even-numbered year after the election and
four serve terms expiring July 1 of the second year after the year
in which the first terms expire.
(d) An election to elect the appropriate number of successor
directors shall be held on the uniform election date, established
by the Election Code, in May of each even-numbered year.
SECTION 10. BOARD OF DIRECTORS; TERMS. The district is
governed by a board of eight directors who serve staggered
four-year terms, with four members' terms expiring July 1 of each
even-numbered year.
SECTION 11. ADMINISTRATION OF BOARD. Sections 375.066
through 375.070, Local Government Code, apply to the board as if it
were established under Chapter 375, Local Government Code.
SECTION 12. QUALIFICATIONS OF DIRECTOR. (a) To be
qualified to serve as a director, a person must be at least 18
years old and:
(1) a resident of the district;
(2) an owner of real property in the district;
(3) an owner of stock, whether beneficial or
otherwise, of a corporate owner of real property in the district;
(4) an owner of a beneficial interest in a trust that
owns real property in the district; or
(5) an agent, employee, or tenant of a person covered
by Subdivision (2), (3), or (4) of this subsection.
(b) A person or entity that owns an interest in a general or
limited partnership owning real property in the district or that
has a lease of real property in the district with a remaining term
of 10 years or more, excluding options, is considered to be an
owner of real property for purposes of this section.
SECTION 13. QUORUM. Five directors constitute a quorum, and
a concurrence of a majority of a quorum of directors is required
for any official action of the district.
SECTION 14. PARTICIPATION IN VOTING. A person who qualifies
to serve on the board is qualified to serve as a director and
participate in all votes pertaining to the business of the district
regardless of any other statutory provision to the contrary.
SECTION 15. GENERAL POWERS. The district has:
(1) all powers necessary or required to accomplish the
purposes for which the district was created;
(2) the rights, powers, privileges, and other
functions of a municipal management district under Subchapter E,
Chapter 375, Local Government Code; and
(3) the powers given to an industrial development
corporation organized under the Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes).
SECTION 16. SPECIFIC POWERS AND LIMITATIONS. (a) The
district may:
(1) impose and collect, and apply the proceeds from, a
limited sales and use tax for the district's purposes;
(2) borrow money for the corporate purposes of the
district;
(3) add or exclude territory in the manner provided by
Subchapter J, Chapter 49, Water Code;
(4) contract with an individual or entity to
accomplish the district's purposes, including entering into a
contract for the payment, repayment, or reimbursement of costs
incurred by the person or entity on behalf of the district,
including all or part of the costs of an improvement project, from
tax proceeds or any other specified source of money;
(5) make application for and contract with an
individual or entity to receive, administer, and perform the
district's duties under a federal, state, local, or private gift,
grant, loan, conveyance, transfer, bequest, donation, or other
financial arrangement relating to the investigation, planning,
analysis, acquisition, construction, completion, implementation, or
operation of a proposed or existing improvement project;
(6) establish and collect only at the district's
facilities user fees, concession fees, admission fees, rental fees,
or other similar fees or charges and apply the proceeds from those
fees or charges for the enjoyment, sale, rental, or other use of
the district's facilities, services, properties, or improvement
projects;
(7) adopt rules for:
(A) the administration and operation of the
district;
(B) the use, enjoyment, availability,
protection, security, and maintenance of the district's properties
and facilities; and
(C) the provision of public safety and security
in the district;
(8) provide or secure the payment or repayment of:
(A) an expense of the establishment,
administration, or operation of the district;
(B) a district cost relating to an improvement
project;
(C) a district contractual obligation or
indebtedness, because of a lease, installment purchase contract, or
other agreement; and
(D) a tax, user fee, concession fee, rental fee,
or other revenue or resources of the district; and
(9) undertake improvement projects separately or
jointly with other persons or entities and pay all or part of the
costs of improvement projects, including improvement projects that:
(A) improve, enhance, or support public safety
and security, fire protection, emergency medical services, or law
enforcement in the district;
(B) confer a general benefit on the entire
district and the areas adjacent to the district; or
(C) confer a special benefit on all or part of
the district.
(b) The district may not employ peace officers.
(c) The district may not impose ad valorem taxes on property
in the district.
SECTION 17. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An
improvement project or service provided by the district may
include:
(1) the construction, acquisition, lease, rental,
installment purchase, improvement, rehabilitation, repair,
relocation, and operation of:
(A) landscaping; lighting, banners, or signs;
streets or sidewalks, pedestrian or bicycle paths and trails;
pedestrian walkways, skywalks, crosswalks, or tunnels; highway
right-of-way or transit corridor beautification and improvements;
(B) drainage or storm water detention
improvements; solid waste, water, sewer, or power facilities and
services, including electrical, gas, steam, and chilled water
facilities and services;
(C) parks, lakes, gardens, recreational
facilities, open space, scenic areas, and related exhibits and
preserves; fountains, plazas, or pedestrian malls; public art or
sculpture and related exhibits and facilities; educational or
cultural exhibits and facilities; exhibits, displays, attractions,
or facilities for special events, holidays, or seasonal or cultural
celebrations;
(D) off-street parking facilities, bus
terminals, heliports, mass-transit, or roadway-borne or water-borne
transportation systems; and
(E) other public improvements, facilities, or
services similar to the improvements, facilities, or services
described by Paragraphs (A) through (D) of this subdivision;
(2) the cost of removal, razing, demolition, or
clearing of land or improvements in connection with providing an
improvement project;
(3) the acquisition of real or personal property or an
interest in the property that is made in connection with an
authorized improvement project; and
(4) the provision of special or supplemental services
to improve or promote the area in the district or to protect the
public health and safety in the district, including advertising,
promotion, tourism, health and sanitation, public safety, security,
fire protection or emergency medical services, business
recruitment, development, elimination of traffic congestion, and
recreational, educational, or cultural improvements, enhancements,
or services.
SECTION 18. RELATION TO OTHER LAW. If a provision of a law
referenced in Section 15 of this Act or referenced in Subchapter E,
Chapter 375, Local Government Code, is in conflict with or
inconsistent with this Act, this Act prevails. A law referenced in
Section 15 of this Act or referenced in Subchapter E, Chapter 375,
Local Government Code, that is not in conflict with or inconsistent
with this Act is adopted and incorporated by reference and may be
used by the district independently of each other.
SECTION 19. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
SECTION 20. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The
district may not impose an impact fee or assessment on a single
family residential property or a residential duplex, triplex,
quadruplex, or condominium.
SECTION 21. SALES AND USE TAX; EXCISE TAX. (a) The
district may impose a sales and use tax for the benefit of the
district if authorized by a majority of the qualified voters of the
district voting at an election called for that purpose.
(b) If the district adopts the tax:
(1) a tax is imposed on the receipts from the sale at
retail of taxable items in the district; and
(2) an excise tax is imposed on the use, storage, or
other consumption in the district of taxable items purchased,
leased, or rented from a retailer during the period that the tax is
effective in the district.
(c) The rate of the excise tax is the same as the rate of
the sales tax portion of the tax applied to the sales price of the
taxable items and is included in the sales tax.
(d) For purposes of this section:
(1) "taxable items" includes all items subject to any
sales and use tax that is imposed by the county if the county has
imposed a sales and use tax; and
(2) "use," with respect to a taxable service, means
the derivation in the district of direct or indirect benefit from
the service.
SECTION 22. TAX ELECTION PROCEDURES. (a) The board by
order may call an election to adopt, change the rate of, or abolish
a sales and use tax. The election may be held at the same time and
in conjunction with a confirmation or directors election.
(b) The election must be held on the next uniform election
date that falls on or after the 45th day after the date the order
calling the election is adopted.
(c) Notice of the election shall be given and the election
shall be held and conducted in the manner prescribed for bond
elections under Subchapter D, Chapter 49, Water Code.
(d) In an election to adopt the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
adoption of a local sales and use tax in the East Montgomery County
Improvement District at the rate of (proposed tax rate)."
(e) In an election to change the rate of the tax, the ballot
shall be prepared to permit voting for or against the proposition:
"The (increase or decrease, as applicable) in the rate of the local
sales and use tax imposed in the East Montgomery County Improvement
District from (tax rate on election date) percent to (proposed tax
rate) percent."
(f) In an election to abolish the tax, the ballot shall be
prepared to permit voting for or against the proposition: "The
abolition of the local sales and use tax in the East Montgomery
County Improvement District."
SECTION 23. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
inconsistent with this Act, governs the application, collection,
and administration of the tax under this Act, except Sections
323.401 through 323.406, and 323.505, Tax Code, do not apply.
Subtitles A and B, Title 2, and Chapter 151, Tax Code, govern the
administration and enforcement of the taxes under this Act.
(b) Chapter 323, Tax Code, does not apply to the use and
allocation of revenues under this Act.
(c) In applying Chapter 323, Tax Code, the district's name
shall be substituted for references in that chapter to "the county"
and the board of directors of the district is substituted for
references in that chapter to "commissioners court."
SECTION 24. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
adoption of a tax rate or change in the tax rate takes effect after
the expiration of the first complete calendar quarter occurring
after the date on which the comptroller receives a notice of the
results of the election.
SECTION 25. TAX RATES. The district may impose the sales
and use tax under this Act in increments of one-eighth of one
percent, with a minimum tax of one-half percent and a maximum tax
of one percent.
SECTION 26. ABOLITION OF TAX RATE. The board by order may
abolish the local sales and use tax rate without an election.
SECTION 27. USE OF TAX. Taxes collected under this Act may
be used only for the purposes for which the district was created.
SECTION 28. SUBMISSION OF ANNEXATION INFORMATION. Not later
than the 10th day after the date on which the district annexes or
excludes territory, the board shall send to the comptroller a
certified copy of any resolution, order, or ordinance relating to
the annexation or exclusion.
SECTION 29. APPLICATION OF CERTAIN TAX PROCEEDS.
(a) During each interval of three calendar years following the
date on which a tax imposed under this Act is collected for the
first time, the board shall apply an annual average of not less
than 10 percent of the net proceeds of the tax collection to
mitigate the impact of development in the district on adjacent
areas, including effects on public utilities and services, public
transportation and traffic movement, and scenic and aesthetic
beauty.
(b) In this section, "net proceeds" means the difference
between the amount of tax collected and the total amount of the
general and administrative expenses of the district, including the
cost of imposing and collecting the tax.
SECTION 30. LIMITATION ON INDEBTEDNESS. The district may
borrow money for a term of less than one year to finance the
district's purposes and evidence the indebtedness by a contract,
promissory note, or similar instrument. Before the district
borrows money, the board must find that the district's taxes and
other net revenue to be collected by the district during the
one-year period following the creation of the debt and money
available to the district from other sources will be sufficient to
repay or discharge the debt before that one-year period expires.
SECTION 31. CONTRACTING AUTHORITY. (a) The district may
contract with a municipality, a county, another political
subdivision, a corporation, or another person to carry out the
purposes of this Act on terms and for the period of time the board
determines.
(b) Notwithstanding any other law or charter provision to
the contrary, a state agency, a municipality, a county, another
political subdivision, a corporation, an individual, or another
entity is authorized to contract with the district to carry out the
purposes of this Act.
SECTION 32. DISSOLUTION BY BOARD ORDER. The board by order
may dissolve the district at any time unless the district has
outstanding indebtedness or contractual obligations.
SECTION 33. DISSOLUTION BY PETITION OF OWNERS. (a) The
board by order shall dissolve the district if the board receives a
written petition signed by the owners of 75 percent or more of the
real property acreage in the district.
(b) After the date the district is dissolved, the district
may not levy taxes.
(c) If on the date the district is dissolved the district
has outstanding liabilities, the board shall, not later than the
30th day after the dissolution, adopt a resolution certifying each
outstanding liability. The county in which the district is located
shall assume the outstanding liabilities. The county shall collect
the sales and use tax for the district for the remainder of the
calendar year. The county may continue to collect the tax for an
additional calendar year if the commissioners court finds that the
tax revenue is needed to retire the district liabilities that were
assumed by the county.
(d) The district and the board may continue to operate for a
period not to exceed two months after carrying out the
responsibilities required by Subsection (c) of this section. The
board and the district are continued in effect for the purpose of
satisfying these responsibilities.
(e) If the board and the district are continued in effect
under Subsection (d) of this section, the board and district are
dissolved entirely on the first day of the month following the
month in which the board certifies to the secretary of state that
no responsibilities of Subsection (c) of this section are left
unsatisfied.
SECTION 34. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
DISSOLUTION. (a) After the board orders the dissolution of the
district, the board shall transfer ownership of all property and
assets of the district to the county, except as provided by
Subsection (b) of this section.
(b) If on the date on which the board orders the dissolution
of the district more than 50 percent of the territory in the
district is in the corporate limits of a municipality, the board
shall transfer ownership of the district's property and assets to
the municipality.
SECTION 35. NOTICE AND CONSENT. The legislature finds that:
(1) the proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
by the constitution and laws of this state, including the governor,
who has submitted the notice and a copy of this Act to the Texas
Natural Resource Conservation Commission;
(2) the Texas Natural Resource Conservation Commission
has filed its recommendations relating to this Act with the
governor, lieutenant governor, and speaker of the house of
representatives within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 36. EMERGENCY. The importance of this legislation
and the crowded condition of the calendars in both houses create an
emergency and an imperative public necessity that the
constitutional rule requiring bills to be read on three several
days in each house be suspended, and this rule is hereby suspended,
and that this Act take effect and be in force from and after its
passage, and it is so enacted.