AN ACT
1-1 relating to the Town Center Improvement District of Montgomery
1-2 County, Texas; authorizing a tax and granting the authority to
1-3 issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1, Chapter 289, Acts of the 73rd
1-6 Legislature, 1993, is amended by adding Subsection (f) to read as
1-7 follows:
1-8 (f) Except as otherwise provided by this Act, the district
1-9 is not subject to the jurisdiction or supervision of the commission
1-10 under Chapter 49, Water Code, or other law.
1-11 SECTION 2. Section 2, Chapter 289, Acts of the 73rd
1-12 Legislature, 1993, is amended to read as follows:
1-13 Sec. 2. DEFINITIONS. In this Act:
1-14 (1) "Board" means the board of directors of the
1-15 district.
1-16 (2) "Commission" means the Texas Natural Resource
1-17 Conservation Commission.
1-18 (3) "District" means the Town Center Improvement
1-19 District of Montgomery County, Texas.
1-20 (4) [(3)] "Improvement project" means any program or
1-21 project, whether individual, intermittent, or continuing and
1-22 whether located or conducted within or without the district, for
1-23 the planning, design, construction, acquisition, lease, rental,
2-1 installment purchase, improvement, provision of furnishings,
2-2 equipment, rehabilitation, repair, reconstruction, relocation, use,
2-3 management, operation, or maintenance of any works, improvements,
2-4 or facilities or the provision, support, enhancement, improvement,
2-5 extension, or expansion of services, whether provided to, for, by,
2-6 or on behalf of the district, necessary for the accomplishment of
2-7 the public purposes of the district, including:
2-8 (A) landscaping; lighting, banners, and signs;
2-9 streets or sidewalks; hike and bike paths and trails, pedestrian
2-10 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
2-11 transit corridor beautification and improvements; drainage or storm
2-12 water detention improvements; solid waste, water, sewer, or power
2-13 facilities and services, including but not limited to electrical,
2-14 gas, steam, and chilled water facilities; parks, lakes, gardens,
2-15 recreational facilities, open space, scenic areas, and related
2-16 exhibits and preserves; fountains, plazas, and pedestrian malls;
2-17 public art and sculpture and related exhibits and facilities;
2-18 educational and cultural exhibits and facilities; conferences,
2-19 conventions, or exhibitions; manufacturer, consumer, or trade
2-20 shows; civic, community, or institutional events; exhibits,
2-21 displays, attractions, and facilities for special events, holidays,
2-22 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
3-1 similar to the foregoing;
3-2 (B) the removal, razing, demolition, or clearing
3-3 of land or improvements in connection with any improvement project;
3-4 (C) the acquisition of real or personal property
3-5 or any interest therein in connection with an authorized
3-6 improvement project provided that the district shall not have the
3-7 power of eminent domain; and
3-8 (D) any special or supplemental services for the
3-9 improvement and promotion of the district or adjacent areas or for
3-10 the protection of public health and safety within or adjacent to
3-11 the district, including but not limited to advertising, promotion,
3-12 tourism, health and sanitation, public safety, security, fire
3-13 protection and emergency medical services, business recruitment,
3-14 development, elimination of traffic congestion, and recreational,
3-15 educational, and cultural improvements, enhancements, and services.
3-16 SECTION 3. Subsection (a), Section 6, Chapter 289, Acts of
3-17 the 73rd Legislature, 1993, is amended to read as follows:
3-18 (a) The district has all of the rights, powers, privileges,
3-19 authority, and functions conferred on municipal management
3-20 districts by Subchapter E, Chapter 375, Local Government Code, and
3-21 by the general laws of the state on conservation and reclamation
3-22 districts created under Article XVI, Section 59, of the Texas
3-23 Constitution, and on road districts and road utility districts
3-24 created pursuant to Article III, Section 52, of the Texas
3-25 Constitution, including those conferred by Chapters 49 and
4-1 [Chapter] 54, Water Code, and Chapter 441, Transportation Code [13,
4-2 Acts of the 68th Legislature, 2nd Called Session, 1984 (Article
4-3 6674r-1, Vernon's Texas Civil Statutes)], together with the
4-4 additional rights, powers, privileges, authority, and functions
4-5 contained in this Act.
4-6 SECTION 4. Section 7, Chapter 289, Acts of the 73rd
4-7 Legislature, 1993, is amended to read as follows:
4-8 Sec. 7. Additional Specific Powers and Duties. In addition
4-9 to the general powers set forth in Section 6 of this Act, the board
4-10 may, subject to the provisions and limitations hereinafter set
4-11 forth:
4-12 (1) levy, assess, and apply the proceeds from a
4-13 limited sales and use tax for the district's purposes, provided
4-14 that, during each interval of three calendar years following the
4-15 commencement of collection of such tax, the board shall, consistent
4-16 with the district's authorized powers and purposes and in its sound
4-17 discretion, endeavor to apply an annual average of not less than 10
4-18 percent of the net proceeds of such tax collections, after
4-19 deduction of the general and administrative costs and expenses of
4-20 the district and the costs and expenses of levying, assessing, and
4-21 collecting such taxes, toward mitigation of the impact of
4-22 development within the district on adjacent areas, including
4-23 without limitation effects on public utilities and services, public
4-24 transportation and traffic movement, and scenic and aesthetic
4-25 beauty;
5-1 (2) borrow money for the corporate purposes of the
5-2 district;
5-3 (3) add or exclude territory in the manner provided by
5-4 Subchapter J [H], Chapter 49, and Section 54.016 [54], Water Code,
5-5 except that Section 42.042, Local Government Code, and Section
5-6 54.016, Water Code, shall not apply to the annexation of land
5-7 restricted primarily to commercial or business use;
5-8 (4) contract with any person or entity for the
5-9 accomplishment of any of the district's purposes including without
5-10 limitation contracting [contracts] for:
5-11 (A) the payment, repayment, or reimbursement,
5-12 out of tax proceeds or any other specified source of funds, of any
5-13 costs and reasonable carrying costs incurred by that person for or
5-14 on behalf of the district, including all or part of the costs of
5-15 any improvement project; or
5-16 (B) the use, occupancy, lease, rental,
5-17 operation, maintenance, or management of all or part of a proposed
5-18 or existing improvement project;
5-19 (5) make application for and contract with any person
5-20 or entity to receive, administer, and perform the district's duties
5-21 and obligations under any federal, state, local, or private gift,
5-22 grant, loan, conveyance, transfer, bequest, donation, or other
5-23 financial assistance arrangement relating to the investigation,
5-24 planning, analysis, study, design, acquisition, construction,
5-25 improvement, completion, implementation, or operation by the
6-1 district or others of a proposed or existing improvement project;
6-2 (6) make, adopt, revise, repeal, amend, promulgate,
6-3 and enforce by ordinary civil remedies reasonable rules and
6-4 regulations for the administration and operation of the district,
6-5 the use, enjoyment, availability, protection, security, and
6-6 maintenance of the district's properties and facilities, and
6-7 providing for public safety and security within the district;
6-8 (7) establish, revise, repeal, enforce, collect, and
6-9 apply the proceeds from user fees, concessions, admissions,
6-10 rentals, or other similar fees or charges for the enjoyment, sale,
6-11 rental, or other use of the district's facilities, services,
6-12 properties, or improvement projects; however, because the district
6-13 is created in an area that is devoted primarily to commercial and
6-14 business activity, the district may not impose an impact fee or
6-15 assessment on a single family residential property or a residential
6-16 duplex, triplex, quadruplex, or condominium;
6-17 (8) provide or secure the payment or repayment of the
6-18 costs and expenses of the establishment, administration, and
6-19 operation of the district and the district's costs or share of the
6-20 costs of any improvement project, or district contractual
6-21 obligation or indebtedness, by or through a lease, installment
6-22 purchase contract, or other agreement with any person or the levy
6-23 and assessment of taxes, user fees, concessions, rentals, or other
6-24 revenues or resources of the district; [and]
6-25 (9) undertake separately or jointly with other persons
7-1 or entities and pay all or part of the cost of improvement
7-2 projects, including improvement projects for improving, enhancing,
7-3 and supporting public safety and security, fire protection and
7-4 emergency medical services, and law enforcement within and adjacent
7-5 to the district and improvement projects that confer a general
7-6 benefit on the entire district and the areas adjacent thereto or a
7-7 special benefit on a definable part of the district, which may be
7-8 the entire district or any part thereof; however, the district
7-9 shall not be authorized to employ peace officers; and
7-10 (10) impose, collect, and apply the proceeds from a
7-11 hotel occupancy tax as provided by Sections 11A and 11B of this
7-12 Act.
7-13 SECTION 5. Subsections (b), (c), (e), and (k), Section (8),
7-14 Chapter 289, Acts of the 73rd Legislature, 1993, are amended to
7-15 read as follows:
7-16 (b)(1) Except as provided by Subdivisions (2) and (3) of
7-17 this subsection, to be qualified to serve as a director, a person
7-18 must be at least 18 years old and be:
7-19 (A) a resident of the district;
7-20 (B) an individual owner of real property in the
7-21 district;
7-22 (C) an individual owner [of stock], whether
7-23 beneficial or otherwise, of at least 10 percent of the outstanding
7-24 stock of a corporate owner of real property in the district or of a
7-25 corporate lessee of real property in the district with an original
8-1 lease term of five years or more, excluding options;
8-2 (D) an individual owner of at least 10 percent
8-3 of the [a] beneficial interest in a trust that:
8-4 (i) owns real property in the district; or
8-5 (ii) leases real property in the district
8-6 under an original lease term of five years or more, excluding
8-7 options;
8-8 (E) an individual lessee of real property in the
8-9 district under an original lease term of five years or more,
8-10 excluding options;
8-11 (F) an individual owner of at least 10 percent
8-12 of the outstanding interest in a general or limited partnership
8-13 that:
8-14 (i) owns real property in the district; or
8-15 (ii) leases real property in the district
8-16 under an original lease term of five years or more, excluding
8-17 options; or
8-18 (G) [(E)] an individual agent, employee,
8-19 officer, or director of any individual, corporation, trust, or
8-20 partnership that owns or leases [owner of] real property described
8-21 by Paragraph (B), (C), [or] (D), (E), or (F) of this subdivision
8-22 who is designated by such owner or lessee to serve in that
8-23 capacity.
8-24 (2) To be eligible for appointment under [Paragraph
8-25 (F) or (G) of Subdivision (1) of] Subsection (c)(1)(F) or (G) of
9-1 this section, a person must be a resident of the city making the
9-2 appointment [and may not be a person described by Paragraph (B),
9-3 (C), (D), or (E) of Subdivision (1) of this subsection].
9-4 (3) To be eligible for appointment under [Paragraph
9-5 (H) of Subdivision (1) of] Subsection (c)(1)(H) of this section, a
9-6 person must be a member of The [the] Woodlands Community
9-7 Association, Inc [and may not be a person described by Paragraph
9-8 (B), (C), (D), or (E) of Subdivision (1) of this subsection.]
9-9 [(4) A person or entity that owns an interest in a
9-10 general or limited partnership owning real property in the district
9-11 or who has a lease of real property in the district with a
9-12 remaining term of 10 years or more, excluding options, is
9-13 considered to be an owner of real property for purposes of this
9-14 subsection].
9-15 (c)(1) On the effective date of this Act, the following
9-16 persons shall constitute the initial board and shall serve as
9-17 provided in this Act:
9-18 (A) Vicki D. Armstrong;
9-19 (B) Roger L. Galatas;
9-20 (C) R. A. Kutsche;
9-21 (D) Michael H. Richmond;
9-22 (E) Bruce M. Withers, Jr.;
9-23 (F) one individual appointed by the city council
9-24 of the City of Oak Ridge North;
9-25 (G) one individual appointed by the city council
10-1 of the City of Shenandoah; and
10-2 (H) one individual appointed by the board of
10-3 directors of The [the] Woodlands Community Association, Inc.
10-4 (2) If one or more of the initial directors listed in
10-5 this subsection fails to qualify for office within 90 days after
10-6 the effective date of this Act, the remaining directors shall
10-7 appoint qualified persons to fill the vacancies for the unexpired
10-8 terms.
10-9 (e) A vacancy in the office of director shall be filled by
10-10 appointment of a qualified individual by a majority vote of the
10-11 remaining directors, except that if the number of directors for any
10-12 reason is less than five, on petition of a resident of or owner of
10-13 real property in the district, the commission shall appoint the
10-14 required number of qualified individuals to fill the vacancies.
10-15 The board may remove a director for misconduct or failure to carry
10-16 out the director's [his] duties by unanimous vote of all of the
10-17 remaining directors.
10-18 (k) A person who qualifies to serve on the board [under
10-19 Subsection (b) of this section] shall be qualified to serve as a
10-20 director and participate in all votes pertaining to the business of
10-21 the district regardless of any common-law doctrine or any statutory
10-22 conflict-of-interest, incompatibility, or similar provision
10-23 [provisions] to the contrary.
10-24 SECTION 6. Section 11, Chapter 289, Acts of the 73rd
10-25 Legislature, 1993, is amended by amending Subsection (h) and adding
11-1 Subsection (j) to read as follows:
11-2 (h) In the event that all or part of the territory of the
11-3 district is annexed by or incorporated into a municipality that
11-4 [which] has adopted and is imposing a sales and use tax or that
11-5 later adopts and imposes a sales and use tax, the sales and use tax
11-6 imposed by the district in such annexed or incorporated territory
11-7 shall be reduced, if required to comply with the provisions hereof,
11-8 in even multiples of one-half percent, and without the necessity
11-9 for an election, such that the combined rate of all sales and use
11-10 taxes imposed by the county, the [annexing] municipality, and all
11-11 other political subdivisions within the annexed or incorporated
11-12 territory of the district will not exceed two percent, provided
11-13 that:
11-14 (1) the municipality shall reimburse the district for
11-15 the amount of the tax reduced in the manner provided by Section
11-16 312.637(h), Tax Code, until the bonds of the district payable or
11-17 secured, wholly or partly, from the proceeds of the sales and use
11-18 tax are no longer outstanding;
11-19 (2) a sales and use tax previously adopted by the
11-20 district for such annexed or incorporated territory shall not be
11-21 reduced to less than one-half percent; and
11-22 (3) [provided further that] no reduction of the
11-23 district's sales and use tax in the portions of the district not so
11-24 annexed or incorporated shall be required.
11-25 (j) The district is entitled to examine and receive
12-1 information related to the levy, assessment, and collection of
12-2 sales and use taxes to the same extent as if the district were a
12-3 municipality.
12-4 SECTION 7. Chapter 289, Acts of the 73rd Legislature, 1993,
12-5 is amended by adding Sections 11A and 11B to read as follows:
12-6 Sec. 11A. HOTEL OCCUPANCY TAX. (a) In this section,
12-7 "hotel" has the meaning assigned by Section 156.001, Tax Code.
12-8 (b) The board by order may impose a tax on a person who,
12-9 under a lease, concession, permit, right of access, license,
12-10 contract, or agreement, pays for the use or possession or for the
12-11 right to use or possess a room that is in a hotel located in the
12-12 boundaries of the district, costs $2 or more each day, and is
12-13 ordinarily used for sleeping. The amount of the tax may not exceed
12-14 seven percent of the price paid for a room in a hotel.
12-15 (c) A district by order may repeal, increase, or decrease
12-16 the rate of a tax imposed under this section.
12-17 (d) Except as inconsistent with this section and Section 11B
12-18 of this Act and subject to the limitations prescribed by Sections
12-19 352.002(b) and (c), Tax Code, Subchapter A, Chapter 352, Tax Code,
12-20 governs a hotel occupancy tax authorized under this section,
12-21 including the collection of the tax.
12-22 (e) The district is entitled to examine and receive
12-23 information related to the levy, assessment, and collection of
12-24 hotel occupancy taxes to the same extent as if the district were a
12-25 municipality.
13-1 (f) For purposes of this section, a reference in Subchapter
13-2 A, Chapter 352, Tax Code, to a county or the county's officers or
13-3 governing body is a reference to the district or the district's
13-4 officers or governing body, as appropriate.
13-5 Sec. 11B. USE OF HOTEL OCCUPANCY TAX PROCEEDS. (a) The
13-6 district shall apply the proceeds from a hotel occupancy tax
13-7 imposed under Section 11A of this Act for any of the district's
13-8 purposes and for the purposes described by Section 352.1015, Tax
13-9 Code, to the extent considered appropriate by the board.
13-10 (b) During each interval of three calendar years following
13-11 the date on which a hotel occupancy tax imposed under Section 11A
13-12 of this Act is initially collected, the board may not apply an
13-13 annual average of more than 10 percent of the amount of tax
13-14 collected under that section, excluding any interest earnings or
13-15 investment profits and after a deduction for the costs of imposing
13-16 and collecting the taxes, for the administrative expenses of the
13-17 district or a district purpose other than:
13-18 (1) the costs of advertising and promoting tourism;
13-19 and
13-20 (2) the costs of business development and commerce,
13-21 including the costs of planning, designing, constructing,
13-22 acquiring, leasing, financing, owning, operating, maintaining,
13-23 managing, improving, repairing, rehabilitating, or reconstructing
13-24 improvement projects for conferences, conventions, and exhibitions,
13-25 manufacturer, consumer, or trade shows, and civic, community, or
14-1 institutional events.
14-2 (c) For purposes of this section, a reference in Subchapter
14-3 A, Chapter 352, Tax Code, to a county or the county officers or
14-4 governing body means the district or the district's officers or
14-5 governing body, as appropriate.
14-6 SECTION 8. Chapter 289, Acts of the 73rd Legislature, 1993,
14-7 is amended by adding Section 12A to read as follows:
14-8 Sec. 12A. BONDS. (a) The board may issue bonds in the
14-9 manner provided by Subchapter J, Chapter 375, Local Government
14-10 Code. Sections 375.207 and 375.208, Local Government Code, do not
14-11 apply to bonds issued under this section.
14-12 (b) If the district issues bonds for the primary purpose of
14-13 providing water, sewage, or drainage facilities, the district must
14-14 obtain the commission's approval in the manner provided by Chapter
14-15 49, Water Code.
14-16 (c) In addition to the sources of money described by
14-17 Subchapter J, Chapter 375, Local Government Code, the bonds of the
14-18 district may be secured and made payable, wholly or partly, by a
14-19 pledge of any part of the net proceeds the district receives from:
14-20 (1) a specified portion, but not more than one-half
14-21 percent, of the sales and use tax authorized by Section 11 of this
14-22 Act;
14-23 (2) the hotel occupancy tax authorized by Section 11A
14-24 of this Act; and
14-25 (3) repayments the district receives from a
15-1 municipality because of a required reduction of the district's
15-2 sales and use tax.
15-3 SECTION 9. Section 14, Chapter 289, Acts of the 73rd
15-4 Legislature, 1993, is amended by adding Subsection (d) to read as
15-5 follows:
15-6 (d) The district may not be dissolved by a municipality in
15-7 which the district is located.
15-8 SECTION 10. Section 12, Chapter 289, Acts of the 73rd
15-9 Legislature, 1993, is repealed.
15-10 SECTION 11. (a) The proper and legal notice of the
15-11 intention to introduce this Act, setting forth the general
15-12 substance of this Act, has been published as provided by law, and
15-13 the notice and a copy of this Act have been furnished to all
15-14 persons, agencies, officials, or entities to which they are
15-15 required to be furnished by the constitution and other laws of this
15-16 state, including the governor, who has submitted the notice and Act
15-17 to the Texas Natural Resource Conservation Commission.
15-18 (b) The Texas Natural Resource Conservation Commission has
15-19 filed its recommendations relating to this Act with the governor,
15-20 lieutenant governor, and speaker of the house of representatives
15-21 within the required time.
15-22 (c) All requirements of the constitution and laws of this
15-23 state and the rules and procedures of the legislature with respect
15-24 to the notice, introduction, and passage of this Act are fulfilled
15-25 and accomplished.
16-1 SECTION 12. The importance of this legislation and the
16-2 crowded condition of the calendars in both houses create an
16-3 emergency and an imperative public necessity that the
16-4 constitutional rule requiring bills to be read on three several
16-5 days in each house be suspended, and this rule is hereby suspended,
16-6 and that this Act take effect and be in force from and after its
16-7 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 26 passed the Senate on
April 23, 1997, by the following vote: Yeas 30, Nays 1.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 26 passed the House on
May 10, 1997, by the following vote: Yeas 139, Nays 1, two present
not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor