1-1 By: Galloway S.B. No. 26
1-2 (In the Senate - Filed April 8, 1997; April 10, 1997, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 18, 1997, reported favorably, as amended, by the
1-5 following vote: Yeas 9, Nays 1; April 18, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Galloway
1-7 Amend S.B. No. 26 in SECTION 4 of the bill by deleting Section 7(3)
1-8 and inserting the following new Section 7(3):
1-9 (3) add or exclude territory in the manner provided by
1-10 Subchapter J[H] Chapter 49, and Section 54.016 [54] Water Code,
1-11 except that Section 42.042, Local Government Code, and Section
1-12 54.016, Water Code, shall not apply to the annexation of land
1-13 restricted primarily to commercial or business use;
1-14 A BILL TO BE ENTITLED
1-15 AN ACT
1-16 relating to the Town Center Improvement District of Montgomery
1-17 County, Texas; authorizing a tax and granting the authority to
1-18 issue bonds.
1-19 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-20 SECTION 1. Section 1, Chapter 289, Acts of the 73rd
1-21 Legislature, 1993, is amended by adding Subsection (f) to read as
1-22 follows:
1-23 (f) Except as otherwise provided by this Act, the district
1-24 is not subject to the jurisdiction or supervision of the commission
1-25 under Chapter 49, Water Code, or other law.
1-26 SECTION 2. Section 2, Chapter 289, Acts of the 73rd
1-27 Legislature, 1993, is amended to read as follows:
1-28 Sec. 2. DEFINITIONS. In this Act:
1-29 (1) "Board" means the board of directors of the
1-30 district.
1-31 (2) "Commission" means the Texas Natural Resource
1-32 Conservation Commission.
1-33 (3) "District" means the Town Center Improvement
1-34 District of Montgomery County, Texas.
1-35 (4) [(3)] "Improvement project" means any program or
1-36 project, whether individual, intermittent, or continuing and
1-37 whether located or conducted within or without the district, for
1-38 the planning, design, construction, acquisition, lease, rental,
1-39 installment purchase, improvement, provision of furnishings,
1-40 equipment, rehabilitation, repair, reconstruction, relocation, use,
1-41 management, operation, or maintenance of any works, improvements,
1-42 or facilities or the provision, support, enhancement, improvement,
1-43 extension, or expansion of services, whether provided to, for, by,
1-44 or on behalf of the district, necessary for the accomplishment of
1-45 the public purposes of the district, including:
1-46 (A) landscaping; lighting, banners, and signs;
1-47 streets or sidewalks; hike and bike paths and trails, pedestrian
1-48 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
1-49 transit corridor beautification and improvements; drainage or storm
1-50 water detention improvements; solid waste, water, sewer, or power
1-51 facilities and services, including but not limited to electrical,
1-52 gas, steam, and chilled water facilities; parks, lakes, gardens,
1-53 recreational facilities, open space, scenic areas, and related
1-54 exhibits and preserves; fountains, plazas, and pedestrian malls;
1-55 public art and sculpture and related exhibits and facilities;
1-56 educational and cultural exhibits and facilities; conferences,
1-57 conventions, or exhibitions; manufacturer, consumer, or trade
1-58 shows; civic, community, or institutional events; exhibits,
1-59 displays, attractions, and facilities for special events, holidays,
1-60 and seasonal or cultural celebrations; off-street parking
1-61 facilities, bus terminals, heliports, mass-transit, and
1-62 roadway-borne or water-borne transportation and people-mover
1-63 systems; and any other public improvements, facilities, or services
1-64 similar to the foregoing;
2-1 (B) the removal, razing, demolition, or clearing
2-2 of land or improvements in connection with any improvement project;
2-3 (C) the acquisition of real or personal property
2-4 or any interest therein in connection with an authorized
2-5 improvement project provided that the district shall not have the
2-6 power of eminent domain; and
2-7 (D) any special or supplemental services for the
2-8 improvement and promotion of the district or adjacent areas or for
2-9 the protection of public health and safety within or adjacent to
2-10 the district, including but not limited to advertising, promotion,
2-11 tourism, health and sanitation, public safety, security, fire
2-12 protection and emergency medical services, business recruitment,
2-13 development, elimination of traffic congestion, and recreational,
2-14 educational, and cultural improvements, enhancements, and services.
2-15 SECTION 3. Subsection (a), Section 6, Chapter 289, Acts of
2-16 the 73rd Legislature, 1993, is amended to read as follows:
2-17 (a) The district has all of the rights, powers, privileges,
2-18 authority, and functions conferred on municipal management
2-19 districts by Subchapter E, Chapter 375, Local Government Code, and
2-20 by the general laws of the state on conservation and reclamation
2-21 districts created under Article XVI, Section 59, of the Texas
2-22 Constitution, and on road districts and road utility districts
2-23 created pursuant to Article III, Section 52, of the Texas
2-24 Constitution, including those conferred by Chapters 49 and
2-25 [Chapter] 54, Water Code, and Chapter 441, Transportation Code [13,
2-26 Acts of the 68th Legislature, 2nd Called Session, 1984 (Article
2-27 6674r-1, Vernon's Texas Civil Statutes)], together with the
2-28 additional rights, powers, privileges, authority, and functions
2-29 contained in this Act.
2-30 SECTION 4. Section 7, Chapter 289, Acts of the 73rd
2-31 Legislature, 1993, is amended to read as follows:
2-32 Sec. 7. Additional Specific Powers and Duties. In addition
2-33 to the general powers set forth in Section 6 of this Act, the board
2-34 may, subject to the provisions and limitations hereinafter set
2-35 forth:
2-36 (1) levy, assess, and apply the proceeds from a
2-37 limited sales and use tax for the district's purposes, provided
2-38 that, during each interval of three calendar years following the
2-39 commencement of collection of such tax, the board shall, consistent
2-40 with the district's authorized powers and purposes and in its sound
2-41 discretion, endeavor to apply an annual average of not less than 10
2-42 percent of the net proceeds of such tax collections, after
2-43 deduction of the general and administrative costs and expenses of
2-44 the district and the costs and expenses of levying, assessing, and
2-45 collecting such taxes, toward mitigation of the impact of
2-46 development within the district on adjacent areas, including
2-47 without limitation effects on public utilities and services, public
2-48 transportation and traffic movement, and scenic and aesthetic
2-49 beauty;
2-50 (2) borrow money for the corporate purposes of the
2-51 district;
2-52 (3) add or exclude territory in the manner provided by
2-53 Subchapter J [H], Chapter 49 [54], Water Code, except that Section
2-54 42.042, Local Government Code, does not apply to the district;
2-55 (4) contract with any person or entity for the
2-56 accomplishment of any of the district's purposes including without
2-57 limitation contracting [contracts] for:
2-58 (A) the payment, repayment, or reimbursement,
2-59 out of tax proceeds or any other specified source of funds, of any
2-60 costs and reasonable carrying costs incurred by that person for or
2-61 on behalf of the district, including all or part of the costs of
2-62 any improvement project; or
2-63 (B) the use, occupancy, lease, rental,
2-64 operation, maintenance, or management of all or part of a proposed
2-65 or existing improvement project;
2-66 (5) make application for and contract with any person
2-67 or entity to receive, administer, and perform the district's duties
2-68 and obligations under any federal, state, local, or private gift,
2-69 grant, loan, conveyance, transfer, bequest, donation, or other
3-1 financial assistance arrangement relating to the investigation,
3-2 planning, analysis, study, design, acquisition, construction,
3-3 improvement, completion, implementation, or operation by the
3-4 district or others of a proposed or existing improvement project;
3-5 (6) make, adopt, revise, repeal, amend, promulgate,
3-6 and enforce by ordinary civil remedies reasonable rules and
3-7 regulations for the administration and operation of the district,
3-8 the use, enjoyment, availability, protection, security, and
3-9 maintenance of the district's properties and facilities, and
3-10 providing for public safety and security within the district;
3-11 (7) establish, revise, repeal, enforce, collect, and
3-12 apply the proceeds from user fees, concessions, admissions,
3-13 rentals, or other similar fees or charges for the enjoyment, sale,
3-14 rental, or other use of the district's facilities, services,
3-15 properties, or improvement projects; however, because the district
3-16 is created in an area that is devoted primarily to commercial and
3-17 business activity, the district may not impose an impact fee or
3-18 assessment on a single family residential property or a residential
3-19 duplex, triplex, quadruplex, or condominium;
3-20 (8) provide or secure the payment or repayment of the
3-21 costs and expenses of the establishment, administration, and
3-22 operation of the district and the district's costs or share of the
3-23 costs of any improvement project, or district contractual
3-24 obligation or indebtedness, by or through a lease, installment
3-25 purchase contract, or other agreement with any person or the levy
3-26 and assessment of taxes, user fees, concessions, rentals, or other
3-27 revenues or resources of the district; [and]
3-28 (9) undertake separately or jointly with other persons
3-29 or entities and pay all or part of the cost of improvement
3-30 projects, including improvement projects for improving, enhancing,
3-31 and supporting public safety and security, fire protection and
3-32 emergency medical services, and law enforcement within and adjacent
3-33 to the district and improvement projects that confer a general
3-34 benefit on the entire district and the areas adjacent thereto or a
3-35 special benefit on a definable part of the district, which may be
3-36 the entire district or any part thereof; however, the district
3-37 shall not be authorized to employ peace officers; and
3-38 (10) impose, collect, and apply the proceeds from a
3-39 hotel occupancy tax as provided by Sections 11A and 11B of this
3-40 Act.
3-41 SECTION 5. Subsections (b), (c), (e), and (k), Section (8),
3-42 Chapter 289, Acts of the 73rd Legislature, 1993, are amended to
3-43 read as follows:
3-44 (b)(1) Except as provided by Subdivisions (2) and (3) of
3-45 this subsection, to be qualified to serve as a director, a person
3-46 must be at least 18 years old and be:
3-47 (A) a resident of the district;
3-48 (B) an individual owner of real property in the
3-49 district;
3-50 (C) an individual owner [of stock], whether
3-51 beneficial or otherwise, of at least 10 percent of the outstanding
3-52 stock of a corporate owner of real property in the district or of a
3-53 corporate lessee of real property in the district with an original
3-54 lease term of five years or more, excluding options;
3-55 (D) an individual owner of at least 10 percent
3-56 of the [a] beneficial interest in a trust that:
3-57 (i) owns real property in the district; or
3-58 (ii) leases real property in the district
3-59 under an original lease term of five years or more, excluding
3-60 options;
3-61 (E) an individual lessee of real property in the
3-62 district under an original lease term of five years or more,
3-63 excluding options;
3-64 (F) an individual owner of at least 10 percent
3-65 of the outstanding interest in a general or limited partnership
3-66 that:
3-67 (i) owns real property in the district; or
3-68 (ii) leases real property in the district
3-69 under an original lease term of five years or more, excluding
4-1 options; or
4-2 (G) [(E)] an individual agent, employee,
4-3 officer, or director of any individual, corporation, trust, or
4-4 partnership that owns or leases [owner of] real property described
4-5 by Paragraph (B), (C), [or] (D), (E), or (F) of this subdivision
4-6 who is designated by such owner or lessee to serve in that
4-7 capacity.
4-8 (2) To be eligible for appointment under [Paragraph
4-9 (F) or (G) of Subdivision (1) of] Subsection (c)(1)(F) or (G) of
4-10 this section, a person must be a resident of the city making the
4-11 appointment [and may not be a person described by Paragraph (B),
4-12 (C), (D), or (E) of Subdivision (1) of this subsection].
4-13 (3) To be eligible for appointment under [Paragraph
4-14 (H) of Subdivision (1) of] Subsection (c)(1)(H) of this section, a
4-15 person must be a member of The [the] Woodlands Community
4-16 Association, Inc [and may not be a person described by Paragraph
4-17 (B), (C), (D), or (E) of Subdivision (1) of this subsection.]
4-18 [(4) A person or entity that owns an interest in a
4-19 general or limited partnership owning real property in the district
4-20 or who has a lease of real property in the district with a
4-21 remaining term of 10 years or more, excluding options, is
4-22 considered to be an owner of real property for purposes of this
4-23 subsection].
4-24 (c)(1) On the effective date of this Act, the following
4-25 persons shall constitute the initial board and shall serve as
4-26 provided in this Act:
4-27 (A) Vicki D. Armstrong;
4-28 (B) Roger L. Galatas;
4-29 (C) R. A. Kutsche;
4-30 (D) Michael H. Richmond;
4-31 (E) Bruce M. Withers, Jr.;
4-32 (F) one individual appointed by the city council
4-33 of the City of Oak Ridge North;
4-34 (G) one individual appointed by the city council
4-35 of the City of Shenandoah; and
4-36 (H) one individual appointed by the board of
4-37 directors of The [the] Woodlands Community Association, Inc.
4-38 (2) If one or more of the initial directors listed in
4-39 this subsection fails to qualify for office within 90 days after
4-40 the effective date of this Act, the remaining directors shall
4-41 appoint qualified persons to fill the vacancies for the unexpired
4-42 terms.
4-43 (e) A vacancy in the office of director shall be filled by
4-44 appointment of a qualified individual by a majority vote of the
4-45 remaining directors, except that if the number of directors for any
4-46 reason is less than five, on petition of a resident of or owner of
4-47 real property in the district, the commission shall appoint the
4-48 required number of qualified individuals to fill the vacancies.
4-49 The board may remove a director for misconduct or failure to carry
4-50 out the director's [his] duties by unanimous vote of all of the
4-51 remaining directors.
4-52 (k) A person who qualifies to serve on the board [under
4-53 Subsection (b) of this section] shall be qualified to serve as a
4-54 director and participate in all votes pertaining to the business of
4-55 the district regardless of any common-law doctrine or any statutory
4-56 conflict-of-interest, incompatibility, or similar provision
4-57 [provisions] to the contrary.
4-58 SECTION 6. Section 11, Chapter 289, Acts of the 73rd
4-59 Legislature, 1993, is amended by amending Subsection (h) and adding
4-60 Subsection (j) to read as follows:
4-61 (h) In the event that all or part of the territory of the
4-62 district is annexed by or incorporated into a municipality that
4-63 [which] has adopted and is imposing a sales and use tax or that
4-64 later adopts and imposes a sales and use tax, the sales and use tax
4-65 imposed by the district in such annexed or incorporated territory
4-66 shall be reduced, if required to comply with the provisions hereof,
4-67 in even multiples of one-half percent, and without the necessity
4-68 for an election, such that the combined rate of all sales and use
4-69 taxes imposed by the county, the [annexing] municipality, and all
5-1 other political subdivisions within the annexed or incorporated
5-2 territory of the district will not exceed two percent, provided
5-3 that:
5-4 (1) the municipality shall reimburse the district for
5-5 the amount of the tax reduced in the manner provided by Section
5-6 312.637(h), Tax Code, until the bonds of the district payable or
5-7 secured, wholly or partly, from the proceeds of the sales and use
5-8 tax are no longer outstanding;
5-9 (2) a sales and use tax previously adopted by the
5-10 district for such annexed or incorporated territory shall not be
5-11 reduced to less than one-half percent; and
5-12 (3) [provided further that] no reduction of the
5-13 district's sales and use tax in the portions of the district not so
5-14 annexed or incorporated shall be required.
5-15 (j) The district is entitled to examine and receive
5-16 information related to the levy, assessment, and collection of
5-17 sales and use taxes to the same extent as if the district were a
5-18 municipality.
5-19 SECTION 7. Chapter 289, Acts of the 73rd Legislature, 1993,
5-20 is amended by adding Sections 11A and 11B to read as follows:
5-21 Sec. 11A. HOTEL OCCUPANCY TAX. (a) In this section,
5-22 "hotel" has the meaning assigned by Section 156.001, Tax Code.
5-23 (b) The board by order may impose a tax on a person who,
5-24 under a lease, concession, permit, right of access, license,
5-25 contract, or agreement, pays for the use or possession or for the
5-26 right to use or possess a room that is in a hotel located in the
5-27 boundaries of the district, costs $2 or more each day, and is
5-28 ordinarily used for sleeping. The amount of the tax may not exceed
5-29 seven percent of the price paid for a room in a hotel.
5-30 (c) A district by order may repeal, increase, or decrease
5-31 the rate of a tax imposed under this section.
5-32 (d) Except as inconsistent with this section and Section 11B
5-33 of this Act and subject to the limitations prescribed by Sections
5-34 352.002(b) and (c), Tax Code, Subchapter A, Chapter 352, Tax Code,
5-35 governs a hotel occupancy tax authorized under this section,
5-36 including the collection of the tax.
5-37 (e) The district is entitled to examine and receive
5-38 information related to the levy, assessment, and collection of
5-39 hotel occupancy taxes to the same extent as if the district were a
5-40 municipality.
5-41 (f) For purposes of this section, a reference in Subchapter
5-42 A, Chapter 352, Tax Code, to a county or the county's officers or
5-43 governing body is a reference to the district or the district's
5-44 officers or governing body, as appropriate.
5-45 Sec. 11B. USE OF HOTEL OCCUPANCY TAX PROCEEDS. (a) The
5-46 district shall apply the proceeds from a hotel occupancy tax
5-47 imposed under Section 11A of this Act for any of the district's
5-48 purposes and for the purposes described by Section 352.1015, Tax
5-49 Code, to the extent considered appropriate by the board.
5-50 (b) During each interval of three calendar years following
5-51 the date on which a hotel occupancy tax imposed under Section 11A
5-52 of this Act is initially collected, the board may not apply an
5-53 annual average of more than 10 percent of the amount of tax
5-54 collected under that section, excluding any interest earnings or
5-55 investment profits and after a deduction for the costs of imposing
5-56 and collecting the taxes, for the administrative expenses of the
5-57 district or a district purpose other than:
5-58 (1) the costs of advertising and promoting tourism;
5-59 and
5-60 (2) the costs of business development and commerce,
5-61 including the costs of planning, designing, constructing,
5-62 acquiring, leasing, financing, owning, operating, maintaining,
5-63 managing, improving, repairing, rehabilitating, or reconstructing
5-64 improvement projects for conferences, conventions, and exhibitions,
5-65 manufacturer, consumer, or trade shows, and civic, community, or
5-66 institutional events.
5-67 (c) For purposes of this section, a reference in Subchapter
5-68 A, Chapter 352, Tax Code, to a county or the county officers or
5-69 governing body means the district or the district's officers or
6-1 governing body, as appropriate.
6-2 SECTION 8. Chapter 289, Acts of the 73rd Legislature, 1993,
6-3 is amended by adding Section 12A to read as follows:
6-4 Sec. 12A. BONDS. (a) The board may issue bonds in the
6-5 manner provided by Subchapter J, Chapter 375, Local Government
6-6 Code. Sections 375.207 and 375.208, Local Government Code, do not
6-7 apply to bonds issued under this section.
6-8 (b) If the district issues bonds for the primary purpose of
6-9 providing water, sewage, or drainage facilities, the district must
6-10 obtain the commission's approval in the manner provided by Chapter
6-11 49, Water Code.
6-12 (c) In addition to the sources of money described by
6-13 Subchapter J, Chapter 375, Local Government Code, the bonds of the
6-14 district may be secured and made payable, wholly or partly, by a
6-15 pledge of any part of the net proceeds the district receives from:
6-16 (1) a specified portion, but not more than one-half
6-17 percent, of the sales and use tax authorized by Section 11 of this
6-18 Act;
6-19 (2) the hotel occupancy tax authorized by Section 11A
6-20 of this Act; and
6-21 (3) repayments the district receives from a
6-22 municipality because of a required reduction of the district's
6-23 sales and use tax.
6-24 SECTION 9. Section 14, Chapter 289, Acts of the 73rd
6-25 Legislature, 1993, is amended by adding Subsection (d) to read as
6-26 follows:
6-27 (d) The district may not be dissolved by a municipality in
6-28 which the district is located.
6-29 SECTION 10. Section 12, Chapter 289, Acts of the 73rd
6-30 Legislature, 1993, is repealed.
6-31 SECTION 11. (a) The proper and legal notice of the
6-32 intention to introduce this Act, setting forth the general
6-33 substance of this Act, has been published as provided by law, and
6-34 the notice and a copy of this Act have been furnished to all
6-35 persons, agencies, officials, or entities to which they are
6-36 required to be furnished by the constitution and other laws of this
6-37 state, including the governor, who has submitted the notice and Act
6-38 to the Texas Natural Resource Conservation Commission.
6-39 (b) The Texas Natural Resource Conservation Commission has
6-40 filed its recommendations relating to this Act with the governor,
6-41 lieutenant governor, and speaker of the house of representatives
6-42 within the required time.
6-43 (c) All requirements of the constitution and laws of this
6-44 state and the rules and procedures of the legislature with respect
6-45 to the notice, introduction, and passage of this Act are fulfilled
6-46 and accomplished.
6-47 SECTION 12. The importance of this legislation and the
6-48 crowded condition of the calendars in both houses create an
6-49 emergency and an imperative public necessity that the
6-50 constitutional rule requiring bills to be read on three several
6-51 days in each house be suspended, and this rule is hereby suspended,
6-52 and that this Act take effect and be in force from and after its
6-53 passage, and it is so enacted.
6-54 * * * * *