By: Galloway S.B. No. 921
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of the East Montgomery County Improvement
1-2 District; authorizing a tax.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. CREATION OF DISTRICT. (a) A special district to
1-5 be known as the "East Montgomery County Improvement District"
1-6 exists as a governmental agency, body politic and corporate, and
1-7 political subdivision of the state.
1-8 (b) The district is a governmental unit for purposes of
1-9 Chapter 101, Civil Practice and Remedies Code, and operations of
1-10 the district are considered for all purposes, including the
1-11 application of that chapter, to be essential governmental functions
1-12 and not proprietary functions.
1-13 (c) The name of the district may be changed by resolution of
1-14 the board.
1-15 SECTION 2. DECLARATION OF INTENT. (a) The creation of the
1-16 district is:
1-17 (1) essential to accomplish the purposes of Section
1-18 52, Article III, and Section 59, Article XVI, Texas Constitution,
1-19 and other public purposes stated in this Act; and
1-20 (2) necessary to promote, develop, encourage, and
1-21 maintain employment, commerce, economic development, and the public
1-22 welfare in the eastern area of Montgomery County.
1-23 (b) The district is created to supplement and not to
1-24 supplant the county, governmental agency, political subdivision, or
2-1 municipal services provided in the district. This Act does not:
2-2 (1) relieve the county or a governmental agency,
2-3 political subdivision, or municipality from providing the level of
2-4 services the entity provides in the district as of August 31, 1997;
2-5 or
2-6 (2) release the county or a governmental agency,
2-7 political subdivision, or municipality from the obligations the
2-8 entity has to provide services to that area.
2-9 SECTION 3. DEFINITIONS. In this Act:
2-10 (1) "Board" means the board of directors of the
2-11 district.
2-12 (2) "District" means the East Montgomery County
2-13 Improvement District.
2-14 (3) "County" means Montgomery County, Texas.
2-15 SECTION 4. BOUNDARIES. The boundaries of the district are
2-16 coextensive with the boundaries of the New Caney Independent School
2-17 District and the Splendora Independent School District as those
2-18 boundaries existed on January 1, 1997, but the district does not
2-19 include any portion of the City of Houston as it existed on January
2-20 1, 1997.
2-21 SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries
2-22 and field notes of the district form a closure. If a mistake is
2-23 made in the field notes or in copying the field notes in the
2-24 legislative process, the mistake does not in any way affect the:
2-25 (1) organization, existence, and validity of the
2-26 district;
2-27 (2) right or power of the district to enter into a
3-1 contract for the purposes for which the district is created;
3-2 (3) right of the district to impose, assess, and
3-3 collect taxes, fees, or charges; or
3-4 (4) legality or operations of the district or its
3-5 governing body.
3-6 SECTION 6. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) All
3-7 the land and other property included in the district will be
3-8 benefited by the works, projects, improvements, and services to be
3-9 provided by the district under powers granted by Section 52,
3-10 Article III, and Section 59, Article XVI, Texas Constitution, and
3-11 other powers granted by this Act.
3-12 (b) The district is created to serve a public use and
3-13 benefit. The creation of the district is in the public interest
3-14 and is essential to:
3-15 (1) further the public purposes of the development and
3-16 diversification of the economy of the state; and
3-17 (2) eliminate unemployment and underemployment and
3-18 develop or expand transportation and commerce.
3-19 (c) The district will:
3-20 (1) promote the health, safety, and general welfare of
3-21 residents, employers, employees, and consumers in the district and
3-22 of the general public;
3-23 (2) promote and develop public transportation and
3-24 pedestrian facilities and systems by new and alternative means,
3-25 including securing expanded and improved transportation and
3-26 pedestrian facilities and systems;
3-27 (3) provide needed money for the area in the district
4-1 to preserve, maintain, and enhance the economic health and vitality
4-2 of the area as a community and business center; and
4-3 (4) promote the health, safety, welfare, education,
4-4 convenience, and enjoyment of the public by:
4-5 (A) improving, landscaping, and developing
4-6 certain areas in and adjacent to the district; and
4-7 (B) providing public services and facilities in
4-8 and adjacent to the district that are necessary for the
4-9 restoration, preservation, enhancement, and enjoyment of scenic and
4-10 aesthetic beauty.
4-11 (d) Each improvement project authorized by this Act is
4-12 essential to carry out a public purpose.
4-13 (e) The district will not act as the agent or
4-14 instrumentality of any private interest even though many private
4-15 interests will be benefited by the district, as will the general
4-16 public.
4-17 SECTION 7. INITIAL DIRECTORS. (a) The Commissioners Court
4-18 of Montgomery County shall appoint eight initial directors. To be
4-19 qualified for appointment as a director, a person must have the
4-20 qualifications specified in Section 12 of this Act.
4-21 (b) In making appointments, the commissioners court shall
4-22 attempt to compose the board of persons who reflect the residents
4-23 in the area of the district.
4-24 SECTION 8. CONFIRMATION ELECTION. (a) The initial
4-25 directors shall meet as soon as practicable after all initial
4-26 directors have qualified for office. The board shall call a
4-27 confirmation election to determine if the proposed district shall
5-1 be established. The board shall call the confirmation election at
5-2 the first meeting unless the board calls a hearing to exclude
5-3 territory from the district.
5-4 (b) The confirmation election shall be held in the manner
5-5 provided by Section 49.102, Water Code. The election must be held
5-6 on the next uniform election date provided by Section 41.001,
5-7 Election Code, that falls on or after the 45th day after the date
5-8 of the order calling the election.
5-9 (c) If a majority of the votes cast in the election are
5-10 against the creation of the district, the board may not call or
5-11 hold another confirmation election until the expiration of six
5-12 months after the date of the most recent confirmation election.
5-13 (d) Before the creation of the district is confirmed, the
5-14 district may not borrow money or impose taxes. The district may
5-15 carry on other business as the board determines.
5-16 SECTION 9. ELECTION OF DIRECTORS. (a) As soon as
5-17 practicable after the first anniversary of the date on which the
5-18 creation of the district is confirmed, the board shall call and
5-19 hold an election to elect the initial permanent directors.
5-20 (b) The election shall be held in the manner provided by
5-21 Section 49.102, Water Code.
5-22 (c) The election must be held on the next uniform election
5-23 date provided by Section 41.001, Election Code, that falls on or
5-24 after the 45th day after the date of the order calling the
5-25 election. The directors elected at the first election shall draw
5-26 lots to determine their terms so that four serve terms expiring on
5-27 the first July 1 of an even-numbered year after the election and
6-1 four serve terms expiring July 1 of the second year after the year
6-2 in which the first terms expire.
6-3 (d) An election to elect the appropriate number of successor
6-4 directors shall be held on the uniform election date, established
6-5 by the Election Code, in May of each even-numbered year.
6-6 SECTION 10. BOARD OF DIRECTORS; TERMS. The district is
6-7 governed by a board of eight directors who serve staggered
6-8 four-year terms, with four members' terms expiring July 1 of each
6-9 even-numbered year.
6-10 SECTION 11. ADMINISTRATION OF BOARD. Sections 375.066
6-11 through 375.070, Local Government Code, apply to the board as if it
6-12 were established under Chapter 375, Local Government Code.
6-13 SECTION 12. QUALIFICATIONS OF DIRECTOR. (a) To be
6-14 qualified to serve as a director, a person must be at least 18
6-15 years old and:
6-16 (1) a resident of the district;
6-17 (2) an owner of real property in the district;
6-18 (3) an owner of stock, whether beneficial or
6-19 otherwise, of a corporate owner of real property in the district;
6-20 (4) an owner of a beneficial interest in a trust that
6-21 owns real property in the district; or
6-22 (5) an agent, employee, or tenant of a person covered
6-23 by Subdivision (2), (3), or (4) of this subsection.
6-24 (b) A person or entity that owns an interest in a general or
6-25 limited partnership owning real property in the district or that
6-26 has a lease of real property in the district with a remaining term
6-27 of 10 years or more, excluding options, is considered to be an
7-1 owner of real property for purposes of this section.
7-2 SECTION 13. QUORUM. Five directors constitute a quorum, and
7-3 a concurrence of a majority of a quorum of directors is required
7-4 for any official action of the district.
7-5 SECTION 14. PARTICIPATION IN VOTING. A person who qualifies
7-6 to serve on the board is qualified to serve as a director and
7-7 participate in all votes pertaining to the business of the district
7-8 regardless of any other statutory provision to the contrary.
7-9 SECTION 15. GENERAL POWERS. The district has:
7-10 (1) all powers necessary or required to accomplish the
7-11 purposes for which the district was created;
7-12 (2) the rights, powers, privileges, and other
7-13 functions of a municipal management district under Subchapter E,
7-14 Chapter 375, Local Government Code; and
7-15 (3) the powers given to an industrial development
7-16 corporation organized under the Development Corporation Act of 1979
7-17 (Article 5190.6, Vernon's Texas Civil Statutes).
7-18 SECTION 16. SPECIFIC POWERS AND LIMITATIONS. (a) The
7-19 district may:
7-20 (1) impose and collect, and apply the proceeds from, a
7-21 limited sales and use tax for the district's purposes;
7-22 (2) borrow money for the corporate purposes of the
7-23 district;
7-24 (3) add or exclude territory in the manner provided by
7-25 Subchapter J, Chapter 49, Water Code;
7-26 (4) contract with an individual or entity to
7-27 accomplish the district's purposes, including entering into a
8-1 contract for the payment, repayment, or reimbursement of costs
8-2 incurred by the person or entity on behalf of the district,
8-3 including all or part of the costs of an improvement project, from
8-4 tax proceeds or any other specified source of money;
8-5 (5) make application for and contract with an
8-6 individual or entity to receive, administer, and perform the
8-7 district's duties under a federal, state, local, or private gift,
8-8 grant, loan, conveyance, transfer, bequest, donation, or other
8-9 financial arrangement relating to the investigation, planning,
8-10 analysis, acquisition, construction, completion, implementation, or
8-11 operation of a proposed or existing improvement project;
8-12 (6) establish and collect only at the district's
8-13 facilities user fees, concession fees, admission fees, rental fees,
8-14 or other similar fees or charges and apply the proceeds from those
8-15 fees or charges for the enjoyment, sale, rental, or other use of
8-16 the district's facilities, services, properties, or improvement
8-17 projects;
8-18 (7) adopt rules for:
8-19 (A) the administration and operation of the
8-20 district;
8-21 (B) the use, enjoyment, availability,
8-22 protection, security, and maintenance of the district's properties
8-23 and facilities; and
8-24 (C) the provision of public safety and security
8-25 in the district;
8-26 (8) provide or secure the payment or repayment of:
8-27 (A) an expense of the establishment,
9-1 administration, or operation of the district;
9-2 (B) a district cost relating to an improvement
9-3 project;
9-4 (C) a district contractual obligation or
9-5 indebtedness, because of a lease, installment purchase contract, or
9-6 other agreement; and
9-7 (D) a tax, user fee, concession fee, rental fee,
9-8 or other revenue or resources of the district; and
9-9 (9) undertake improvement projects separately or
9-10 jointly with other persons or entities and pay all or part of the
9-11 costs of improvement projects, including improvement projects that:
9-12 (A) improve, enhance, or support public safety
9-13 and security, fire protection, emergency medical services, or law
9-14 enforcement in the district;
9-15 (B) confer a general benefit on the entire
9-16 district and the areas adjacent to the district; or
9-17 (C) confer a special benefit on all or part of
9-18 the district.
9-19 (b) The district may not employ peace officers.
9-20 (c) The district may not impose ad valorem taxes on property
9-21 in the district.
9-22 SECTION 17. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An
9-23 improvement project or service provided by the district may
9-24 include:
9-25 (1) the construction, acquisition, lease, rental,
9-26 installment purchase, improvement, rehabilitation, repair,
9-27 relocation, and operation of:
10-1 (A) landscaping; lighting, banners, or signs;
10-2 streets or sidewalks, pedestrian or bicycle paths and trails;
10-3 pedestrian walkways, skywalks, crosswalks, or tunnels; highway
10-4 right-of-way or transit corridor beautification and improvements;
10-5 (B) drainage or storm water detention
10-6 improvements; solid waste, water, sewer, or power facilities and
10-7 services, including electrical, gas, steam, and chilled water
10-8 facilities and services;
10-9 (C) parks, lakes, gardens, recreational
10-10 facilities, open space, scenic areas, and related exhibits and
10-11 preserves; fountains, plazas, or pedestrian malls; public art or
10-12 sculpture and related exhibits and facilities; educational or
10-13 cultural exhibits and facilities; exhibits, displays, attractions,
10-14 or facilities for special events, holidays, or seasonal or cultural
10-15 celebrations;
10-16 (D) off-street parking facilities, bus
10-17 terminals, heliports, mass-transit, or roadway-borne or water-borne
10-18 transportation systems; and
10-19 (E) other public improvements, facilities, or
10-20 services similar to the improvements, facilities, or services
10-21 described by Paragraphs (A) through (D) of this subdivision;
10-22 (2) the cost of removal, razing, demolition, or
10-23 clearing of land or improvements in connection with providing an
10-24 improvement project;
10-25 (3) the acquisition of real or personal property or an
10-26 interest in the property that is made in connection with an
10-27 authorized improvement project; and
11-1 (4) the provision of special or supplemental services
11-2 to improve or promote the area in the district or to protect the
11-3 public health and safety in the district, including advertising,
11-4 promotion, tourism, health and sanitation, public safety, security,
11-5 fire protection or emergency medical services, business
11-6 recruitment, development, elimination of traffic congestion, and
11-7 recreational, educational, or cultural improvements, enhancements,
11-8 or services.
11-9 SECTION 18. RELATION TO OTHER LAW. If a provision of a law
11-10 referenced in Section 15 of this Act or referenced in Subchapter E,
11-11 Chapter 375, Local Government Code, is in conflict with or
11-12 inconsistent with this Act, this Act prevails. A law referenced in
11-13 Section 15 of this Act or referenced in Subchapter E, Chapter 375,
11-14 Local Government Code, that is not in conflict with or inconsistent
11-15 with this Act is adopted and incorporated by reference and may be
11-16 used by the district independently of each other.
11-17 SECTION 19. NO EMINENT DOMAIN POWER. The district may not
11-18 exercise the power of eminent domain.
11-19 SECTION 20. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The
11-20 district may not impose an impact fee or assessment on a single
11-21 family residential property or a residential duplex, triplex,
11-22 quadruplex, or condominium.
11-23 SECTION 21. SALES AND USE TAX; EXCISE TAX. (a) The
11-24 district may impose a sales and use tax for the benefit of the
11-25 district if authorized by a majority of the qualified voters of the
11-26 district voting at an election called for that purpose.
11-27 (b) If the district adopts the tax:
12-1 (1) a tax is imposed on the receipts from the sale at
12-2 retail of taxable items in the district; and
12-3 (2) an excise tax is imposed on the use, storage, or
12-4 other consumption in the district of taxable items purchased,
12-5 leased, or rented from a retailer during the period that the tax is
12-6 effective in the district.
12-7 (c) The rate of the excise tax is the same as the rate of
12-8 the sales tax portion of the tax applied to the sales price of the
12-9 taxable items and is included in the sales tax.
12-10 (d) For purposes of this section:
12-11 (1) "taxable items" includes all items subject to any
12-12 sales and use tax that is imposed by the county if the county has
12-13 imposed a sales and use tax; and
12-14 (2) "use," with respect to a taxable service, means
12-15 the derivation in the district of direct or indirect benefit from
12-16 the service.
12-17 SECTION 22. TAX ELECTION PROCEDURES. (a) The board by
12-18 order may call an election to adopt, change the rate of, or abolish
12-19 a sales and use tax. The election may be held at the same time and
12-20 in conjunction with a confirmation or directors election.
12-21 (b) The election must be held on the next uniform election
12-22 date that falls on or after the 45th day after the date the order
12-23 calling the election is adopted.
12-24 (c) Notice of the election shall be given and the election
12-25 shall be held and conducted in the manner prescribed for bond
12-26 elections under Subchapter D, Chapter 49, Water Code.
12-27 (d) In an election to adopt the tax, the ballot shall be
13-1 prepared to permit voting for or against the proposition: "The
13-2 adoption of a local sales and use tax in the East Montgomery County
13-3 Improvement District at the rate of (proposed tax rate)."
13-4 (e) In an election to change the rate of the tax, the ballot
13-5 shall be prepared to permit voting for or against the proposition:
13-6 "The (increase or decrease, as applicable) in the rate of the local
13-7 sales and use tax imposed in the East Montgomery County Improvement
13-8 District from (tax rate on election date) percent to (proposed tax
13-9 rate) percent."
13-10 (f) In an election to abolish the tax, the ballot shall be
13-11 prepared to permit voting for or against the proposition: "The
13-12 abolition of the local sales and use tax in the East Montgomery
13-13 County Improvement District."
13-14 SECTION 23. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
13-15 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
13-16 inconsistent with this Act, governs the application, collection,
13-17 and administration of the tax under this Act, except Sections
13-18 323.401 through 323.406, and 323.505, Tax Code, do not apply.
13-19 Subtitles A and B, Title 2, and Chapter 151, Tax Code, govern the
13-20 administration and enforcement of the taxes under this Act.
13-21 (b) Chapter 323, Tax Code, does not apply to the use and
13-22 allocation of revenues under this Act.
13-23 (c) In applying Chapter 323, Tax Code, the district's name
13-24 shall be substituted for references in that chapter to "the county"
13-25 and the board of directors of the district is substituted for
13-26 references in that chapter to "commissioners court."
13-27 SECTION 24. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
14-1 adoption of a tax rate or change in the tax rate takes effect after
14-2 the expiration of the first complete calendar quarter occurring
14-3 after the date on which the comptroller receives a notice of the
14-4 results of the election.
14-5 SECTION 25. TAX RATES. The district may impose the sales
14-6 and use tax under this Act in increments of one-eighth of one
14-7 percent, with a minimum tax of one-half percent and a maximum tax
14-8 of one percent.
14-9 SECTION 26. ABOLITION OF TAX RATE. The board by order may
14-10 abolish the local sales and use tax rate without an election.
14-11 SECTION 27. USE OF TAX. Taxes collected under this Act may
14-12 be used only for the purposes for which the district was created.
14-13 SECTION 28. SUBMISSION OF ANNEXATION INFORMATION. Not later
14-14 than the 10th day after the date on which the district annexes or
14-15 excludes territory, the board shall send to the comptroller a
14-16 certified copy of any resolution, order, or ordinance relating to
14-17 the annexation or exclusion.
14-18 SECTION 29. APPLICATION OF CERTAIN TAX PROCEEDS.
14-19 (a) During each interval of three calendar years following the
14-20 date on which a tax imposed under this Act is collected for the
14-21 first time, the board shall apply an annual average of not less
14-22 than 10 percent of the net proceeds of the tax collection to
14-23 mitigate the impact of development in the district on adjacent
14-24 areas, including effects on public utilities and services, public
14-25 transportation and traffic movement, and scenic and aesthetic
14-26 beauty.
14-27 (b) In this section, "net proceeds" means the difference
15-1 between the amount of tax collected and the total amount of the
15-2 general and administrative expenses of the district, including the
15-3 cost of imposing and collecting the tax.
15-4 SECTION 30. LIMITATION ON INDEBTEDNESS. The district may
15-5 borrow money for a term of less than one year to finance the
15-6 district's purposes and evidence the indebtedness by a contract,
15-7 promissory note, or similar instrument. Before the district
15-8 borrows money, the board must find that the district's taxes and
15-9 other net revenue to be collected by the district during the
15-10 one-year period following the creation of the debt and money
15-11 available to the district from other sources will be sufficient to
15-12 repay or discharge the debt before that one-year period expires.
15-13 SECTION 31. CONTRACTING AUTHORITY. (a) The district may
15-14 contract with a municipality, a county, another political
15-15 subdivision, a corporation, or another person to carry out the
15-16 purposes of this Act on terms and for the period of time the board
15-17 determines.
15-18 (b) Notwithstanding any other law or charter provision to
15-19 the contrary, a state agency, a municipality, a county, another
15-20 political subdivision, a corporation, an individual, or another
15-21 entity is authorized to contract with the district to carry out the
15-22 purposes of this Act.
15-23 SECTION 32. DISSOLUTION BY BOARD ORDER. The board by order
15-24 may dissolve the district at any time unless the district has
15-25 outstanding indebtedness or contractual obligations.
15-26 SECTION 33. DISSOLUTION BY PETITION OF OWNERS. (a) The
15-27 board by order shall dissolve the district if the board receives a
16-1 written petition signed by the owners of 75 percent or more of the
16-2 real property acreage in the district.
16-3 (b) After the date the district is dissolved, the district
16-4 may not levy taxes.
16-5 (c) If on the date the district is dissolved the district
16-6 has outstanding liabilities, the board shall, not later than the
16-7 30th day after the dissolution, adopt a resolution certifying each
16-8 outstanding liability. The county in which the district is located
16-9 shall assume the outstanding liabilities. The county shall collect
16-10 the sales and use tax for the district for the remainder of the
16-11 calendar year. The county may continue to collect the tax for an
16-12 additional calendar year if the commissioners court finds that the
16-13 tax revenue is needed to retire the district liabilities that were
16-14 assumed by the county.
16-15 (d) The district and the board may continue to operate for a
16-16 period not to exceed two months after carrying out the
16-17 responsibilities required by Subsection (c) of this section. The
16-18 board and the district are continued in effect for the purpose of
16-19 satisfying these responsibilities.
16-20 (e) If the board and the district are continued in effect
16-21 under Subsection (d) of this section, the board and district are
16-22 dissolved entirely on the first day of the month following the
16-23 month in which the board certifies to the secretary of state that
16-24 no responsibilities of Subsection (c) of this section are left
16-25 unsatisfied.
16-26 SECTION 34. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
16-27 DISSOLUTION. (a) After the board orders the dissolution of the
17-1 district, the board shall transfer ownership of all property and
17-2 assets of the district to the county, except as provided by
17-3 Subsection (b) of this section.
17-4 (b) If on the date on which the board orders the dissolution
17-5 of the district more than 50 percent of the territory in the
17-6 district is in the corporate limits of a municipality, the board
17-7 shall transfer ownership of the district's property and assets to
17-8 the municipality.
17-9 SECTION 35. NOTICE AND CONSENT. The legislature finds that:
17-10 (1) the proper and legal notice of the intention to
17-11 introduce this Act, setting forth the general substance of this
17-12 Act, has been published as provided by law, and the notice and a
17-13 copy of this Act have been furnished to all persons, agencies,
17-14 officials, or entities to which they are required to be furnished
17-15 by the constitution and laws of this state, including the governor,
17-16 who has submitted the notice and a copy of this Act to the Texas
17-17 Natural Resource Conservation Commission;
17-18 (2) the Texas Natural Resource Conservation Commission
17-19 has filed its recommendations relating to this Act with the
17-20 governor, lieutenant governor, and speaker of the house of
17-21 representatives within the required time;
17-22 (3) the general law relating to consent by political
17-23 subdivisions to the creation of districts with conservation,
17-24 reclamation, and road powers and the inclusion of land in those
17-25 districts has been complied with; and
17-26 (4) all requirements of the constitution and laws of
17-27 this state and the rules and procedures of the legislature with
18-1 respect to the notice, introduction, and passage of this Act have
18-2 been fulfilled and accomplished.
18-3 SECTION 36. EMERGENCY. The importance of this legislation
18-4 and the crowded condition of the calendars in both houses create an
18-5 emergency and an imperative public necessity that the
18-6 constitutional rule requiring bills to be read on three several
18-7 days in each house be suspended, and this rule is hereby suspended,
18-8 and that this Act take effect and be in force from and after its
18-9 passage, and it is so enacted.