By Coleman, Danburg                                   H.B. No. 3300
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to limits on eminent domain, a code of conduct, and the
 1-3     board of directors for sports and community venue districts in
 1-4     certain populous counties.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter E, Chapter 335, Local Government Code,
 1-7     is amended by adding Section 335.0711 to read as follows:
 1-8           Sec. 335.0711.  LIMIT ON POWER TO OWN OR ACQUIRE REAL
 1-9     PROPERTY IN CERTAIN DISTRICTS.  (a)  In this section:
1-10                 (1)  "Facility site" means a site for:
1-11                       (A)  an arena, coliseum, stadium, or other type
1-12     of area or facility:
1-13                             (i)  that is used or is planned for use for
1-14     one or more professional or amateur sports events, community
1-15     events, or other sports events, including rodeos, livestock shows,
1-16     agricultural expositions, promotional events, and other civic or
1-17     charitable events; and
1-18                             (ii)  for which a fee for admission to the
1-19     events is charged or is planned to be charged; or
1-20                       (B)  a convention center facility or related
1-21     improvement such as a convention center, civic center, civic center
1-22     building, auditorium, theater, opera house, music hall, exhibition
1-23     hall, rehearsal hall, museum, or aquarium.
1-24                 (2)  "Real property" includes an arena, coliseum,
 2-1     stadium, facility site, and related infrastructure.
 2-2                 (3)  "Related infrastructure" means a store,
 2-3     restaurant, on-site hotel, concession, automobile parking facility,
 2-4     road, street, water or sewer facility, or other on-site improvement
 2-5     that relates to and enhances the use, value, or appeal of a venue.
 2-6           (b)  This section applies only to a district located in a
 2-7     county with a population of 2.4 million or more.
 2-8           (c)  A district may not own or acquire real property by
 2-9     eminent domain or any other method unless:
2-10                 (1)  the property is for a facility site or related
2-11     infrastructure as part of an approved venue project in existence as
2-12     of April 1, 1999; and
2-13                 (2)  the governing bodies of the municipality and
2-14     county by resolution or order approve the acquisition.
2-15           (d)  A district may not participate in any way in planning or
2-16     zoning issues before the governing body of a municipality.
2-17           SECTION 2.  Chapter 335, Local Government Code, is amended by
2-18     adding Subchapter F to read as follows:
2-19            SUBCHAPTER F.  CODE OF CONDUCT FOR CERTAIN DISTRICTS
2-20           Sec. 335.101.  DEFINITIONS.  In this subchapter:
2-21                 (1)  "Code of conduct" means the rules adopted by a
2-22     board under Section 335.104.
2-23                 (2)  "Director" means a board member.
2-24                 (3)  "Employee" means a district employee.
2-25           Sec. 335.102.  APPLICABILITY OF SUBCHAPTER.  This subchapter
2-26     applies only to a district located in a county with a population of
2-27     2.4 million or more.
 3-1           Sec. 335.103.  APPLICABILITY OF LAWS.  (a)  Chapter 171
 3-2     applies to an employee as if the employee was a local public
 3-3     official, as that term is defined by Section 171.001.
 3-4           (b)  Chapter 553, Government Code, applies to an employee as
 3-5     if the employee was a public servant, as that term is defined by
 3-6     Section 553.001, Government Code.
 3-7           (c)  Chapter 573, Government Code, applies to an employee as
 3-8     if the employee was a public official, as that term is defined in
 3-9     Section 573.001, Government Code.
3-10           Sec. 335.104.  CREATION OF CODE OF CONDUCT; DISTRIBUTION.
3-11     (a)  The board by rule shall adopt and maintain a code of conduct
3-12     that establishes the general duties of directors and employees of
3-13     the district and specific rules for directors, employees, and
3-14     vendors.  The code of conduct must include:
3-15                 (1)  information regarding a person's duties relating
3-16     to the standards of conduct for a government officer or employee;
3-17                 (2)  a summary of and citation to the laws applicable
3-18     to the conduct of a district officer, employee, or vendor,
3-19     including a copy of the text of this subchapter;
3-20                 (3)  disclosure requirements for directors, employees,
3-21     and vendors; and
3-22                 (4)  a summary of penalties provided by this subchapter
3-23     and other law.
3-24           (b)  The presiding officer of the board shall provide to
3-25     directors, employees, and vendors, as often as necessary, the code
3-26     of conduct created under this section.
3-27           Sec. 335.105.  RULEMAKING.  The board by rule may modify its
 4-1     code of conduct.
 4-2           Sec. 335.106.  GENERAL DUTIES.  A director or employee shall:
 4-3                 (1)  be, and give the appearance of being, independent
 4-4     and impartial;
 4-5                 (2)  place, and give the appearance of placing, the
 4-6     public interest above any private interest in the person's position
 4-7     of public trust; and
 4-8                 (3)  strive to instill confidence in the integrity of
 4-9     the board and employees.
4-10           Sec. 335.107.  VENDOR REQUIREMENTS.  (a)  This section
4-11     applies to a vendor who:
4-12                 (1)  responds to a district request for a proposal; or
4-13                 (2)  otherwise communicates  with the district in
4-14     connection with a potential agreement between that vendor and the
4-15     district.
4-16           (b)  The board by rule shall design a  conflict of interest
4-17     questionnaire that requires disclosure of a vendor's affiliations
4-18     or business relationships that might cause a conflict of interest.
4-19           (c)  A vendor shall file a completed conflict of interest
4-20     questionnaire with the board secretary not less than seven days
4-21     after the vendor:
4-22                 (1)  begins contract discussions or negotiations with
4-23     the district; or
4-24                 (2)  forwards an application, response to a request for
4-25     proposal, correspondence, or other writings related to an agreement
4-26     or potential agreement with the district.
4-27           (d)  A vendor shall file an updated completed questionnaire
 5-1     with the board secretary:
 5-2                 (1)  on September 1 of each year; and
 5-3                 (2)  after each event that would make a statement in
 5-4     the questionnaire incomplete or inaccurate.
 5-5           (e)  Each contract entered into between a district and a
 5-6     vendor shall contain a provision stating that the contract is
 5-7     voidable if the board or vendor violates this section.  A contract
 5-8     entered into between a district and a vendor is voidable if the
 5-9     board or a vendor violates this section.
5-10           Sec. 335.108.  DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS
5-11     AND EMPLOYEES.  (a)  The board by rule shall design a  conflicts
5-12     disclosure statement for directors and employees that includes:
5-13                 (1)  a requirement that each director and employee
5-14     disclose:
5-15                       (A)  an employment or other business relationship
5-16     with a vendor that results in the director's or employee's
5-17     receiving taxable income, including the nature and extent of the
5-18     relationship; and
5-19                       (B)  any gifts received in a 12-month period by
5-20     that director or employee from a vendor that have a total value of
5-21     more than $250;
5-22                 (2)  an acknowledgment from the director or employee
5-23     that:
5-24                       (A)  the disclosure applies to a person related
5-25     to that director or employee within the first degree by
5-26     consanguinity or by affinity, as defined by Subchapter B, Chapter
5-27     573, Government Code; and
 6-1                       (B)  the statement covers the preceding 12
 6-2     months; and
 6-3                 (3)  a signature by the director or employee
 6-4     acknowledging execution of the statement under penalty of perjury.
 6-5           (b)  The disclosure requirement applies to a director or
 6-6     employee and requires disclosure for a person related to that
 6-7     director or employee within the first degree by consanguinity or by
 6-8     affinity, as defined by Subchapter B, Chapter 573, Government Code.
 6-9           (c)  A director or employee shall file a conflicts disclosure
6-10     statement with the board secretary not later than the end of the
6-11     first business day on which the director or employee became aware
6-12     of the relationship between the district and the vendor if:
6-13                 (1)  the vendor has contracted with the district;
6-14                 (2)  the district is considering conducting business
6-15     with the vendor; or
6-16                 (3)  a vendor offered one or more gifts to that
6-17     director or employee in the previous 12-month period that have a
6-18     total value of more than $250.
6-19           (d)  If a director has knowledge that another director has
6-20     not made a disclosure required by this section, the director may
6-21     notify the presiding officer of the board of this fact, or may
6-22     notify the board secretary if the presiding officer is the person
6-23     who failed to make the disclosure.  The presiding officer or
6-24     secretary, as appropriate, may make a preliminary inquiry regarding
6-25     the disclosure and may notify in writing the official who appointed
6-26     the director of the alleged failure to disclose and the reasons for
6-27     believing that a failure to disclose occurred.
 7-1           (e)  An employee may not receive during a 12-month period any
 7-2     gifts from a vendor that have a total value of more than $250
 7-3     unless the employee receives written approval from the presiding
 7-4     officer.
 7-5           Sec. 335.109.  REQUEST FOR OPINION FROM GENERAL COUNSEL.  (a)
 7-6     An employee, with the presiding officer's consent, or a director
 7-7     may seek a written advisory opinion from the district's general
 7-8     counsel concerning whether a violation of Section 335.107 or
 7-9     335.108 exists in a certain situation.  The request must provide
7-10     detailed information about the alleged violation or hypothetical
7-11     situation.
7-12           (b)  After receiving a request, the district's general
7-13     counsel shall prepare a written advisory opinion addressing whether
7-14     a violation has occurred under the information provided.
7-15           (c)  A director or employee may rely in good faith on a
7-16     written advisory opinion issued under this section with respect to
7-17     a  potential violation of Section 335.107 or 335.108.
7-18           Sec. 335.110.  PENALTIES.  The board may reprimand, suspend,
7-19     or terminate an employee who violates the district's code of
7-20     conduct.
7-21           SECTION 3.  Section 335.031(c), Local Government Code, is
7-22     amended to read as follows:
7-23           (c)  Directors serve staggered two-year terms.  A director
7-24     may be removed by the appointing person [mayor or county judge] at
7-25     any time without cause.  Successor directors are appointed in the
7-26     same manner as the original appointees.
7-27           SECTION 4.  Section 335.034, Local Government Code, is
 8-1     amended to read as follows:
 8-2           Sec. 335.034.  OFFICERS.  Except as provided by Section
 8-3     335.035, the [The] presiding officer is designated as provided by
 8-4     the concurrent order.  The board shall designate from the members
 8-5     of the board a secretary and other officers the board considers
 8-6     necessary.
 8-7           SECTION 5.  Subchapter C, Chapter 335, Local Government Code,
 8-8     is amended by adding Section 335.035 to read as follows:
 8-9           Sec. 335.035.  ADDITIONAL REQUIREMENTS FOR BOARD OF DISTRICT
8-10     CREATED IN POPULOUS COUNTY.  (a)  This section applies only to the
8-11     board of a district located in a county with a population of 2.4
8-12     million or more.
8-13           (b)  The mayor of each municipality and the commissioners
8-14     court of each county that create the district shall appoint an
8-15     equal number of directors in accordance with the orders creating
8-16     the district and Section 335.031.  An appointment of a director by
8-17     a mayor must be confirmed by a majority vote of the governing body
8-18     of the municipality.
8-19           (c)  The mayors of the municipalities and the commissioners
8-20     courts of the counties that create the district shall appoint a
8-21     presiding officer by concurrent orders on or before the 30th day
8-22     after the date a vacancy occurs in the presiding officer's
8-23     position.  The appointment must be confirmed by a majority vote of
8-24     the governing body of each municipality.  The presiding officer
8-25     serves for a two-year term.
8-26           (d)  If the mayors and the commissioners courts fail to agree
8-27     on the appointment of a presiding officer under Subsection (c), the
 9-1     board shall appoint, from the district's directors, a presiding
 9-2     officer by a majority vote at the first board meeting that follows
 9-3     the 30-day period described by Subsection (c).  The confirmation
 9-4     requirement of Subsection (c) does not apply to an appointment of a
 9-5     presiding officer under this subsection.
 9-6           (e)  A presiding officer appointed under Subsection (d) shall
 9-7     resign as a director before serving as presiding officer.  The
 9-8     vacancy created by the resignation is filled by the authority that
 9-9     appointed the director.  The appointed director serves for the
9-10     remainder of the vacated term.
9-11           (f)  Section 335.031(b) does not apply to a district located
9-12     in a county with a population of 2.4 million or more.
9-13           SECTION 6.  (a)  This Act takes effect September 1, 1999.
9-14           (b)  Section 335.107, Local Government Code, as added by this
9-15     Act, applies only to:
9-16                 (1)  a contract entered into by a vendor on or after
9-17     September 1, 1999; or
9-18                 (2)  a renewal or extension of a contract entered into
9-19     before September 1, 1999, that occurs on or after September 1,
9-20     1999.
9-21           (c)  The change in law made by Section 335.035, Local
9-22     Government Code, as added by this Act, applies only to an
9-23     appointment of a director or presiding officer to the board of a
9-24     venue district on or after the effective date of this Act.  An
9-25     appointment of a director or presiding officer to the board of a
9-26     venue district before the effective date of this Act is governed by
9-27     the law in effect immediately before the effective date, and that
 10-1    law is continued in effect for that purpose.
 10-2          SECTION 7.  The importance of this legislation and the
 10-3    crowded condition of the calendars in both houses create an
 10-4    emergency and an imperative public necessity that the
 10-5    constitutional rule requiring bills to be read on three several
 10-6    days in each house be suspended, and this rule is hereby suspended.