HBA-TYH H.B. 3300 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3300
By: Coleman
State Affairs
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

The 75th Legislature passed legislation allowing the creation of sports and
community venue districts financed by certain local taxes for the purpose
of constructing sports and community venues such as stadiums, convention
centers, and museums.  If approved by the voters, these districts were
given all powers necessary to plan and complete a venue project, including
the power of eminent domain. H.B. 3300 limits the power of eminent domain
of a venue district to only the actual physical site of the approved venue
project.  This bill also creates a code of conduct for board members and
employees of certain venue districts. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter E, Chapter 335, Local Government Code, by
adding Section 335.0711, as follows: 
 
Sec. 335.0711.  LIMIT ON POWER TO OWN OR ACQUIRE REAL PROPERTY IN CERTAIN
DISTRICTS.  Defines "facility site," "real property," and "related
infrastructure."  Provides that this section applies only to a district
located in a county with a population of 2.4 million or more.  Prohibits a
district from owning or acquiring real property by eminent domain or any
other method unless the property is for a facility site or related
infrastructure as part of an approved venue project.  Prohibits a district
from participating in any way in planning or zoning issues before the
governing body of a municipality.  

SECTION 2.  Amends Chapter 335, Local Government Code, by adding Subchapter
F, as follows: 

SUBCHAPTER F.  CODE OF CONDUCT FOR CERTAIN DISTRICTS
 
Sec. 335.101.  DEFINITIONS. Defines "code of conduct," "director" and
"employee." 
  
Sec. 335.102.  APPLICABILITY OF SUBCHAPTER.  Provides that this subchapter
applies only to a district located in a county with a population of 2.4
million or more.  
 
Sec. 335.103.  APPLICABILITY OF LAWS.  Provides that Chapter 171
(Regulation of Conflicts of Interest of Officers of Municipalities,
Counties, and Certain Other Local Governments) applies to an employee as if
the employee was a local public official, as defined by Section 171.001
(Definitions).  Provides that Chapter 553 (Public Disclosure), Government
Code, applies to an employee as if the employee was a public servant, as
defined by Section 553.001 (Definitions), Government Code.  Provides that
Chapter 573 (Degrees of Relationship; Nepotism Prohibitions), Government
Code, applies to an employee as if the employee was a public official, as
defined by Section 573.001 (Definitions), Government Code.  
 
Sec. 335.104.  CREATION OF CODE OF CONDUCT; DISTRIBUTION.  Requires the
board of directors of the venue district (board), by rule, to adopt and
maintain a code of conduct that establishes the general duties of directors
and employees of the district and specific rules for directors, employees,
and vendors.  Provides that the code of conduct must include the specified
items.  Requires the presiding officer of the board to provide the code of
conduct to directors, employees, and vendors as often as necessary. 

Sec. 335.105.  RULEMAKING.  Authorizes the board, by rule, to modify its
code of conduct.  
 
Sec. 335.106.  GENERAL DUTIES.  Requires a director or employee to carry
out the enumerated duties. 
 
Sec. 335.107.  VENDOR REQUIREMENTS.  (a)  Provides that this section
applies to a vendor who responds to a district request for a proposal or
otherwise communicates  with the district in connection with a potential
agreement between that vendor and the district.  
 
(b)  Requires the board, by rule, to design a  conflict of interest
questionnaire that requires disclosure of a vendor's affiliations or
business relationships that might cause a conflict of interest.  
 
(c)  Requires a vendor to file a completed conflict of interest
questionnaire with the board secretary within seven days after the vendor
performs the enumerated actions.  
 
(d)  Requires a vendor to file an updated completed questionnaire with the
board secretary on the enumerated dates. 
 
(e)  Requires each contract entered into between a district and a vendor to
contain a provision stating that the contract is voidable if the board or
vendor violates this section.  
 
Sec. 335.108.  DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS AND
EMPLOYEES.  (a)  Requires the board, by rule, to design a conflicts
disclosure statement for directors and employees that includes the
enumerated items. 
 
(b)  Provides that the disclosure requirement applies to a director or
employee and requires disclosure for a person related to that director or
employee within the first degree by consanguinity or by affinity, as
defined by Subchapter B (Relationships by Consanguinity or by Affinity),
Chapter 573, Government Code.  
 
(c)  Requires a director or employee to file a conflicts disclosure
statement with the board secretary not later than the end of the first
business day on which the director or employee became aware of the
relationship between the district and the vendor if any of the enumerated
conditions occur. 
  
(d) Authorizes  the director, if a director has knowledge that another
director has not made a disclosure, to notify the presiding officer of the
board of this fact, or to notify the board secretary if the presiding
officer is the person who failed to make the disclosure. Authorizes the
presiding officer or secretary, as appropriate, to  make a preliminary
inquiry regarding the disclosure and to notify in writing the official who
appointed the director of the alleged failure to disclose and the reasons
for believing that a failure to disclose occurred.  
 
(e)  Prohibits an employee from receiving, during a 12-month period, any
gifts from a vendor that have a total value of more than $250 unless the
employee receives written approval from the presiding officer.  
 
Sec. 335.109.  REQUEST FOR OPINION FROM GENERAL COUNSEL.  Authorizes an
employee, with the presiding officer's consent, or a director to seek a
written advisory opinion from the district's general counsel concerning
whether a violation of Section 335.107  or 335.108 exists in a certain
situation.  Provides that the request must provide detailed information
about the alleged violation or hypothetical situation.  Requires the
district's general counsel, after receiving a request, to prepare a written
advisory opinion addressing whether a violation has occurred under the
information provided.  Authorizes a director or employee to rely in good
faith on a written advisory opinion issued with respect to a potential
violation of Section 335.107 or 335.108.  
 
Sec. 335.110.  PENALTIES.  Authorizes the board to reprimand, suspend, or
terminate an employee who violates the district's code of conduct.  

SECTION 3.  Amends Section 335.031(c), Local Government Code,  to provide
that a director may be removed by the appointing person, rather than the
mayor or county judge, at any time without cause. 

SECTION 4.  Amends Section 335.034, Local Government Code, to provide
Section 335.035  as an exception to the designation of a presiding officer
by concurrent order. 

SECTION 5.  Amends Subchapter C, Chapter 335, Local Government Code, by
adding Section 335.035, as follows: 

Sec. 335.035.  ADDITIONAL REQUIREMENTS FOR BOARD OF DISTRICT CREATED IN
POPULOUS COUNTY.  (a)  Provides that this section applies only to the board
of a district located in a county with a population of 2.4 million or more. 

(b)  Requires the mayor of each municipality and the commissioners court of
each county that created the district to appoint an equal number of
directors in accordance with the orders creating the district and Section
335.031 (Composition and Appointment of Board).  Provides that an
appointment of a director by a mayor must be confirmed by a majority vote
of the governing body of the municipality. 

(c)  Requires the mayors of the municipalities and the commissioners courts
of the counties that create the district to appoint a presiding officer by
concurrent orders within 30 days of the date on which either the two-year
term of office expires or a vacancy occurs in the presiding officer's
position.  Provides that the appointment must be confirmed by a majority
vote of the governing body of each municipality.  Establishes that the
presiding officer serves for a two-year term. 

(d)  Requires the board, if the mayors and the commissioners courts fail to
agree on the appointment of a presiding officer, to appoint, from the
district's directors, a presiding officer by a majority vote at the first
board meeting that follows the 30-day period. Provides that the
confirmation requirement does not apply to an appointment of a presiding
officer. 

(e)  Requires a presiding officer to resign as a director before serving as
presiding officer. Provides that the vacancy created by the resignation is
filled by the authority that appointed the director.  Provides that the
appointed director serves for the remainder of the vacated term. 

(f)  Provides that Section 335.031(b) does not apply to a district located
in a county with a population of 2.4 million or more. 

SECTION 6.  Amends Section 335.054, Local Government Code, by adding
Subsection (g), as follows: 
 
(g)  Provides that notwithstanding Subsections (c) and (d) (relating to
propositions to impose a tax) of this section, if a district is presently
collecting taxes from one or more methods of financing and seeks to use a
portion of the revenue from the tax or taxes to finance the venue project
and does not seek to change the rate of tax or taxes, the ballot at the
election or elections held under this section must be printed to permit
voting for or  against the proposition.  Sets forth the exact language of
the proposition. 

SECTION 7.  Effective date: September 1, 1999.
  Makes application of Section 335.107 of this Act prospective.
Makes application of this Act prospective to an appointment of a director
or presiding officer to the board of a venue district on or after the
effective date of this Act. 

SECTION 8.  Emergency clause.