By Hawley H.B. No. 1921
75R6217 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of municipal development districts;
1-3 authorizing the imposition of certain local taxes and the issuance
1-4 of local bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle A, Title 12, Local Government Code, is
1-7 amended by adding Chapter 376 to read as follows:
1-8 CHAPTER 376. MUNICIPAL DEVELOPMENT DISTRICTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 376.001. DEFINITIONS. In this chapter:
1-11 (1) "Board" means the board of directors of a
1-12 municipal development district.
1-13 (2) "District" means a municipal development district
1-14 created under this chapter.
1-15 (3) "Development project":
1-16 (A) means:
1-17 (i) a "project" as that term is defined by
1-18 Section 4B(a), Development Corporation Act of 1979 (Article 5190.6,
1-19 Vernon's Texas Civil Statutes); and
1-20 (ii) a convention center facility or
1-21 related improvement such as a convention center, civic center,
1-22 civic center building, civic center hotel, or auditorium; and
1-23 (B) includes parking areas or facilities that
1-24 are used to park vehicles and that are located at or in the
2-1 vicinity of other convention center facilities.
2-2 Sec. 376.002. APPLICATION. This chapter applies only to a
2-3 municipality that is located in more than two counties.
2-4 (Sections 376.003-376.020 reserved for expansion
2-5 SUBCHAPTER B. MUNICIPAL DEVELOPMENT DISTRICT
2-6 Sec. 376.021. CREATION. (a) A municipality may call an
2-7 election on the question of creating a municipal development
2-8 district under this chapter to plan, acquire, establish, develop,
2-9 construct, or renovate one or more development projects in the
2-10 district.
2-11 (b) The order calling the election must:
2-12 (1) define the boundaries of the district to include
2-13 all or part of the boundaries of the municipality; and
2-14 (2) call for the election to be held within those
2-15 boundaries.
2-16 (c) The ballot at an election held under this section must
2-17 be printed to permit voting for or against the proposition:
2-18 "Authorizing the creation of the ____ Municipal Development
2-19 District (insert name of district) and the imposition of a sales
2-20 and use tax at the rate of ____ of one percent (insert one-eighth,
2-21 one-fourth, three-eighths, or one-half, as appropriate) for the
2-22 purpose of financing development projects in the district."
2-23 (d) The district is created if a majority of the registered
2-24 voters of the proposed district voting at the election favor
2-25 creation of the district.
2-26 (e) If a majority of the registered voters of the proposed
2-27 district voting at the election to create the district vote against
3-1 creation of the district, another election on the question of
3-2 creating a municipal development district may not be held in the
3-3 municipality before the first anniversary of the most recent
3-4 election concerning creation of a district.
3-5 (f) The Election Code governs an election held under this
3-6 chapter.
3-7 Sec. 376.022. POLITICAL SUBDIVISION; OPEN MEETINGS. (a) A
3-8 district is a political subdivision of this state and of the
3-9 municipality in which the district is located.
3-10 (b) A district is subject to Chapter 551, Government Code.
3-11 (Sections 376.023-376.050 reserved for expansion
3-12 SUBCHAPTER C. BOARD OF DIRECTORS
3-13 Sec. 376.051. COMPOSITION AND APPOINTMENT OF BOARD. (a) A
3-14 district is governed by a board of at least four directors.
3-15 (b) The board is appointed by the governing body of the
3-16 municipality in which the district is located.
3-17 (c) Directors serve staggered two-year terms. A director
3-18 may be removed by the appointing municipality at any time without
3-19 cause. Successor directors are appointed in the same manner as the
3-20 original appointees.
3-21 (d) To qualify to serve as a director, a person must be a
3-22 resident of the municipality in which the district is located. An
3-23 employee, officer, or member of the governing body of the
3-24 municipality may serve as a director, but may not have a personal
3-25 interest in a contract executed by the district other than as an
3-26 employee, officer, or member of the governing body of the
3-27 municipality.
4-1 Sec. 376.052. COMPENSATION. A board member is not entitled
4-2 to compensation, but is entitled to reimbursement for actual and
4-3 necessary expenses.
4-4 Sec. 376.053. MEETINGS. The board shall conduct its
4-5 meetings in the municipality in which the district is located.
4-6 Sec. 376.054. OFFICERS. The board shall designate from the
4-7 members of the board a presiding officer, a secretary, and other
4-8 officers the board considers necessary.
4-9 (Sections 376.055-376.070 reserved for expansion
4-10 SUBCHAPTER D. POWERS AND DUTIES
4-11 Sec. 376.071. GENERAL POWERS OF DISTRICT. (a) A district
4-12 may:
4-13 (1) perform any act necessary to the full exercise of
4-14 the district's powers;
4-15 (2) accept a grant or loan from a:
4-16 (A) department or agency of the United States;
4-17 (B) department, agency, or political subdivision
4-18 of this state; or
4-19 (C) public or private person;
4-20 (3) acquire, sell, lease, convey, or otherwise dispose
4-21 of property or an interest in property, including a development
4-22 project, under terms and conditions determined by the district;
4-23 (4) employ necessary personnel; and
4-24 (5) adopt rules to govern the operation of the
4-25 district and its employees and property.
4-26 (b) A district may contract with a public or private person
4-27 to:
5-1 (1) plan, acquire, establish, develop, construct, or
5-2 renovate a development project; or
5-3 (2) perform any other act the district is authorized
5-4 to perform under this chapter.
5-5 (c) A district may not levy an ad valorem tax.
5-6 Sec. 376.072. DEVELOPMENT PROJECT FUND. (a) A district
5-7 shall establish by resolution a fund known as the development
5-8 project fund. The district may establish separate accounts within
5-9 the fund.
5-10 (b) The district shall deposit into the development project
5-11 fund:
5-12 (1) the proceeds from any sales and use tax imposed by
5-13 the district;
5-14 (2) all revenue from the sale of bonds or other
5-15 obligations by the district; and
5-16 (3) any other money required by law to be deposited in
5-17 the fund.
5-18 (c) The district may use money in the development project
5-19 fund only to:
5-20 (1) pay the costs of planning, acquiring,
5-21 establishing, developing, constructing, or renovating one or more
5-22 development projects in the district;
5-23 (2) pay the principal of, interest on, and other costs
5-24 relating to bonds or other obligations issued by the district or
5-25 to refund bonds or other obligations; or
5-26 (3) pay the costs of operating or maintaining one or
5-27 more development projects during the planning, acquisition,
6-1 establishment, development, construction, or renovation or while
6-2 bonds or other obligations for the planning, acquisition,
6-3 establishment, development, construction, or renovation are
6-4 outstanding.
6-5 Sec. 376.073. BONDS AND OTHER OBLIGATIONS. (a) A district
6-6 may issue bonds, including revenue bonds and refunding bonds, or
6-7 other obligations to pay the costs of a development project.
6-8 (b) The bonds or other obligations and the proceedings
6-9 authorizing the bonds or other obligations shall be submitted to
6-10 the attorney general for review and approval as required by
6-11 Article 3, Chapter 53, Acts of the 70th Legislature, 2nd Called
6-12 Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes).
6-13 (c) The bonds or other obligations must be payable from and
6-14 secured by the revenues of the district.
6-15 (d) The bonds or other obligations may mature serially or
6-16 otherwise not more than 30 years from their date of issuance.
6-17 (e) The bonds or other obligations are not a debt of and do
6-18 not create a claim for payment against the revenue or property of
6-19 the district other than a development project for which the bonds
6-20 are issued.
6-21 Sec. 376.074. PUBLIC PURPOSE OF PROJECT. (a) The
6-22 legislature finds for all constitutional and statutory purposes
6-23 that a development project is owned, used, and held for public
6-24 purposes by the district.
6-25 (b) Section 25.07(a), Tax Code, does not apply to a
6-26 leasehold or other possessory interest granted by the district
6-27 while the district owns the development project.
7-1 (c) The development project is exempt from taxation under
7-2 Section 11.11, Tax Code, while the district owns the project.
7-3 (Sections 376.075-376.100 reserved for expansion
7-4 SUBCHAPTER E. SALES AND USE TAX
7-5 Sec. 376.101. SALES AND USE TAX. (a) A district by order
7-6 may impose a sales and use tax under this subchapter.
7-7 (b) A district by order may repeal or decrease the rate of a
7-8 tax imposed under this subchapter.
7-9 (c) A district may impose a tax under this subchapter only
7-10 if the tax is approved at an election held under Section 376.021.
7-11 (d) A district may not adopt a sales and use tax under this
7-12 subchapter if the adoption of the tax under this subchapter would
7-13 result in a combined tax rate of all local sales and use taxes of
7-14 more than two percent in any location in the district.
7-15 Sec. 376.102. TAX CODE APPLICABLE. (a) Chapter 323, Tax
7-16 Code, governs the imposition, computation, administration,
7-17 collection, and remittance of a tax authorized under this
7-18 subchapter except as inconsistent with this subchapter.
7-19 (b) Section 323.101(b), Tax Code, does not apply to the tax
7-20 authorized by this subchapter.
7-21 Sec. 376.103. TAX RATE. The rate of a tax adopted under
7-22 this subchapter must be one-eighth, one-fourth, three-eighths, or
7-23 one-half of one percent.
7-24 Sec. 376.104. RATE INCREASE. (a) A district that has
7-25 adopted a sales and use tax under this subchapter at a rate of less
7-26 than one-half of one percent may by order and subject to Section
7-27 376.101(d) increase the rate of the tax if the increase is approved
8-1 by a majority of the registered voters of that district voting at
8-2 an election called and held for that purpose.
8-3 (b) The tax may be increased under Subsection (a) in one or
8-4 more increments of one-eighth of one percent to a maximum of
8-5 one-half of one percent.
8-6 (c) The ballot for an election to increase the tax shall be
8-7 printed to permit voting for or against the proposition: "The
8-8 adoption of a sales and use tax at the rate of ____ of one percent
8-9 (insert one-fourth, three-eighths, or one-half, as appropriate)."
8-10 Sec. 376.105. IMPOSITION OF TAX. (a) If the district
8-11 adopts the tax, a tax is imposed on the receipts from the sale at
8-12 retail of taxable items in the district at the rate approved at the
8-13 election.
8-14 (b) There is also imposed an excise tax on the use, storage,
8-15 or other consumption in the district of tangible personal property
8-16 purchased, leased, or rented from a retailer during the period that
8-17 the tax is effective in the district. The rate of the excise tax
8-18 is the same as the rate of the sales tax portion of the tax and is
8-19 applied to the sale price of the tangible personal property.
8-20 Sec. 376.106. EFFECTIVE DATE OF TAX. The adoption of the
8-21 tax or the change of the tax rate takes effect on the first day of
8-22 the first calendar quarter occurring after the expiration of the
8-23 first complete quarter occurring after the date on which the
8-24 comptroller receives a notice of the results of the election
8-25 adopting or increasing the tax or of the order decreasing the tax.
8-26 Sec. 376.107. DEPOSIT OF TAX REVENUES. Revenue from the tax
8-27 imposed under this subchapter shall be deposited in the development
9-1 project fund of the district imposing the tax.
9-2 SECTION 2. The importance of this legislation and the
9-3 crowded condition of the calendars in both houses create an
9-4 emergency and an imperative public necessity that the
9-5 constitutional rule requiring bills to be read on three several
9-6 days in each house be suspended, and this rule is hereby suspended,
9-7 and that this Act take effect and be in force from and after its
9-8 passage, and it is so enacted.