By Green                                              H.B. No. 3241
         76R5691 CAG-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to restrictions on the construction or operations of
 1-3     health and fitness facilities by a political subdivision.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle C, Title 10, Local Government Code, is
 1-6     amended to add Chapter 336 to read as follows:
 1-7          CHAPTER 336.  RESTRICTIONS ON CONSTRUCTION AND OPERATION
 1-8                      OF HEALTH AND FITNESS FACILITIES
 1-9           Sec. 336.001.  DEFINITIONS.  In this section:
1-10                 (1)  "Construct or operate a health and fitness
1-11     facility" includes the following activities:
1-12                       (A)  building or enlarging a health and fitness
1-13     facility; or
1-14                       (B)  adding new equipment or employees to
1-15     increase the number of persons a health and fitness facility may
1-16     serve.
1-17                 (2)  "Health and fitness facility" means any facility
1-18     at which health and fitness services are offered to the public,
1-19     including a stadium, playing field, or gym. The term does not
1-20     include:
1-21                       (A)  a facility used exclusively for the benefit
1-22     of the employees of a political subdivision or the students of a
1-23     school district;
1-24                       (B)  a golf course, driving range, or other
 2-1     golf-related facility used exclusively for the benefit of the
 2-2     students of a school district; or
 2-3                       (C)  a swimming pool used exclusively for
 2-4     swimming or other water sports or activities.
 2-5                 (3)  "Health and fitness service" means the
 2-6     instruction, training, or assistance in any activity designed to
 2-7     promote health  or physical fitness, including bodybuilding,
 2-8     exercising, weight reduction, figure development, tennis, squash,
 2-9     racquetball, handball, volleyball, swimming, basketball, running,
2-10     or any other athletic activity or training.
2-11                 (4)  "Political subdivision" means a county,
2-12     municipality, special district, school district, junior college
2-13     district, or any other political subdivision of the state.
2-14           Sec. 336.002.  RESTRICTIONS ON SPENDING.  A political
2-15     subdivision may not use any public funds to construct or operate a
2-16     health and fitness facility or expand a health and fitness service
2-17     offered by the political subdivision unless the use of public funds
2-18     is approved under this chapter.
2-19           Sec. 336.003.  REQUIRED HEARING.  (a)  A political
2-20     subdivision that proposes to use any public funds to construct or
2-21     operate a health and fitness facility or expand a health and
2-22     fitness service shall hold a hearing on the use of the public funds
2-23     for that purpose.
2-24           (b)  The governing body of the political subdivision shall
2-25     publish notice of the hearing not less than three times in a
2-26     newspaper of general circulation in the political subdivision.
2-27           (c)  At the hearing, the governing body may receive testimony
 3-1     on:
 3-2                 (1)  the number of private health and fitness
 3-3     facilities in or near the political subdivision, including the
 3-4     number of facilities providing similar health and fitness
 3-5     facilities or services; and
 3-6                 (2)  the impact on any private health and fitness
 3-7     facility resulting from the proposed construction or operation of
 3-8     the political subdivision's health and fitness facility or expanded
 3-9     service.
3-10           Sec. 336.004.  GOVERNING BODY APPROVAL.  (a)  After a hearing
3-11     under Section 336.003, the governing body of the political
3-12     subdivision may approve the use of public funds only if the
3-13     governing body adopts a written finding, by a three-fifths  or
3-14     greater vote, that the use of public funds for the construction or
3-15     operation of a health and fitness facility or the expanded service:
3-16                 (1)  is necessary because the need for the facility or
3-17     service is not satisfied by the operation of private health and
3-18     fitness facilities; and
3-19                 (2)  will not have an adverse impact on the tax or
3-20     economic base of the political subdivision as a result of the
3-21     closing of or loss of tax revenue from any private health and
3-22     fitness facility operation caused by the construction or operation
3-23     of a health and fitness facility or the expanded service offered by
3-24     the political subdivision.
3-25           (b)  The authority may spend public funds for the
3-26     construction or operation of a health and fitness facility or the
3-27     expanded service only if that action is confirmed by the voters.
 4-1     If the governing body adopts a finding under Subsection (a), the
 4-2     governing body shall order an election to confirm the use of public
 4-3     funds for the construction or operation of the health and fitness
 4-4     facility or the expanded service.  The election shall be held on
 4-5     the first uniform authorized election date that occurs on or after
 4-6     the  45th day after the date the finding is approved.
 4-7           Sec. 336.005.  BALLOT PROPOSITION.  The ballot for the
 4-8     election shall be printed to permit voting for or against the
 4-9     proposition: "Allowing ____________(name of political subdivision)
4-10     to spend _________(amount of public funds) for the
4-11     _______________(description of proposed construction or operation
4-12     of a health and fitness facility or the expansion of service)."
4-13           Sec. 336.006.  RESULTS OF ELECTION.  If a majority of the
4-14     votes received in the election favor the use of public funds, the
4-15     governing body of the political subdivision may use the public
4-16     funds for the designated purpose.
4-17           SECTION 2.  Subtitle F, Title 10, Government Code, is amended
4-18     by adding Chapter 2259 to read as follows:
4-19                 CHAPTER 2259.  RESTRICTIONS ON CONSTRUCTION
4-20                          AND OPERATION OF CERTAIN
4-21                     STATE HEALTH AND FITNESS FACILITIES
4-22           Sec. 2259.001.  DEFINITION.  In this chapter, "state agency"
4-23     means a state officer, board, commission, or department with
4-24     statewide  jurisdiction that makes rules or determines contested
4-25     cases. The term includes an institution of higher education.
4-26           Sec. 2259.002.  RESTRICTIONS ON CERTAIN SPENDING BY STATE
4-27     AGENCIES.  (a) The restrictions and requirements imposed on a
 5-1     political subdivision under Sections 336.001-336.003, Local
 5-2     Government Code, also apply to a state agency.
 5-3           (b)  Before a state agency uses any public funds to construct
 5-4     or operate a health or fitness facility or expand a health and
 5-5     fitness service offered by the state agency, the state agency shall
 5-6     hold a hearing in the same manner that a political subdivision
 5-7     holds a hearing under Section 336.003, Local Government Code.
 5-8           Sec. 2259.003.  AGENCY APPROVAL REQUIRED.  (a)  After a
 5-9     hearing under Section 2259.002, the governing body of a state
5-10     agency may approve the use of public funds only if the governing
5-11     body adopts a written finding, by a three-fifths or greater vote,
5-12     approving the use of the funds  to construct or operate a health or
5-13     fitness facility or expand a health and fitness service offered by
5-14     the state agency.
5-15           (b)  A finding adopted under this section must comply with
5-16     the requirements of Section 336.004(a), Local Government Code.
5-17           SECTION 3.  (a)  This Act takes effect September 1, 1999.
5-18           (b)  This Act applies only to a new or expanded health and
5-19     fitness service offered or a new or expanded health and fitness
5-20     facility operated or proposed to be operated under Chapter 336,
5-21     Local Government Code, or Chapter 2259, Government Code, as added
5-22     by this Act.
5-23           (c)  This Act does not apply to a health and fitness service
5-24     offered or a health and fitness facility operated by a political
5-25     subdivision or a state agency before the effective date of this Act
5-26     if the service is offered or facility is operated at the same level
5-27     as the service or facility provided before the effective date of
 6-1     this Act.
 6-2           SECTION 4.  The importance of this legislation and the
 6-3     crowded condition of the calendars in both houses create an
 6-4     emergency and an imperative public necessity that the
 6-5     constitutional rule requiring bills to be read on three several
 6-6     days in each house be suspended, and this rule is hereby suspended.