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 and to elections for certain districts.
 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)  Notwithstanding any other provision of this chapter, a
 2-9     district may not own or acquire real property by eminent domain or
2-10     any other method unless the property is for a facility site or
2-11     related infrastructure as part of an approved venue project.
2-12           (d)  A district may not participate in any way in planning or
2-13     zoning issues before the governing body of a municipality.
2-14           SECTION 2.  Chapter 335, Local Government Code, is amended by
2-15     adding Subchapter F to read as follows:
2-16            SUBCHAPTER F.  CODE OF CONDUCT FOR CERTAIN DISTRICTS
2-17           Sec. 335.101.  DEFINITIONS.  In this subchapter:
2-18                 (1)  "Code of conduct" means the rules adopted by a
2-19     board under Section 335.104.
2-20                 (2)  "Director" means a board member.
2-21                 (3)  "Employee" means a district employee.
2-22           Sec. 335.102.  APPLICABILITY OF SUBCHAPTER.  This subchapter
2-23     applies only to a district located in a county with a population of
2-24     2.4 million or more.
2-25           Sec. 335.103.  APPLICABILITY OF LAWS.  (a)  Chapter 171
2-26     applies to an employee as if the employee was a local public
2-27     official, as that term is defined by Section 171.001.
 3-1           (b)  Chapter 553, Government Code, applies to an employee as
 3-2     if the employee was a public servant, as that term is defined by
 3-3     Section 553.001, Government Code.
 3-4           (c)  Chapter 573, Government Code, applies to an employee as
 3-5     if the employee was a public official, as that term is defined in
 3-6     Section 573.001, Government Code.
 3-7           Sec. 335.104.  CREATION OF CODE OF CONDUCT; DISTRIBUTION.
 3-8     (a)  The board by rule shall adopt and maintain a code of conduct
 3-9     that establishes the general duties of directors and employees of
3-10     the district and specific rules for directors, employees, and
3-11     vendors.  The code of conduct must include:
3-12                 (1)  information regarding a person's duties relating
3-13     to the standards of conduct for a government officer or employee;
3-14                 (2)  a summary of and citation to the laws applicable
3-15     to the conduct of a district officer, employee, or vendor,
3-16     including a copy of the text of this subchapter;
3-17                 (3)  disclosure requirements for directors, employees,
3-18     and vendors; and
3-19                 (4)  a summary of penalties provided by this subchapter
3-20     and other law.
3-21           (b)  The presiding officer of the board shall provide to
3-22     directors, employees, and vendors, as often as necessary, the code
3-23     of conduct created under this section.
3-24           Sec. 335.105.  RULEMAKING.  The board by rule may modify its
3-25     code of conduct.
3-26           Sec. 335.106.  GENERAL DUTIES.  A director or employee shall:
3-27                 (1)  be, and give the appearance of being, independent
 4-1     and impartial;
 4-2                 (2)  place, and give the appearance of placing, the
 4-3     public interest above any private interest in the person's position
 4-4     of public trust; and
 4-5                 (3)  strive to instill confidence in the integrity of
 4-6     the board and employees.
 4-7           Sec. 335.107.  VENDOR REQUIREMENTS.  (a)  This section
 4-8     applies to a vendor who:
 4-9                 (1)  responds to a district request for a proposal; or
4-10                 (2)  otherwise communicates  with the district in
4-11     connection with a potential agreement between that vendor and the
4-12     district.
4-13           (b)  The board by rule shall design a  conflict of interest
4-14     questionnaire that requires disclosure of a vendor's affiliations
4-15     or business relationships that might cause a conflict of interest.
4-16           (c)  A vendor shall file a completed conflict of interest
4-17     questionnaire with the board secretary not less than seven days
4-18     after the vendor:
4-19                 (1)  begins contract discussions or negotiations with
4-20     the district; or
4-21                 (2)  forwards an application, response to a request for
4-22     proposal, correspondence, or other writings related to an agreement
4-23     or potential agreement with the district.
4-24           (d)  A vendor shall file an updated completed questionnaire
4-25     with the board secretary:
4-26                 (1)  on September 1 of each year; and
4-27                 (2)  after each event that would make a statement in
 5-1     the questionnaire incomplete or inaccurate.
 5-2           (e)  Each contract entered into between a district and a
 5-3     vendor shall contain a provision stating that the contract is
 5-4     voidable if the board or vendor violates this section.  A contract
 5-5     entered into between a district and a vendor is voidable if the
 5-6     board or a vendor violates this section.
 5-7           Sec. 335.108.  DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS
 5-8     AND EMPLOYEES.  (a)  The board by rule shall design a  conflicts
 5-9     disclosure statement for directors and employees that includes:
5-10                 (1)  a requirement that each director and employee
5-11     disclose:
5-12                       (A)  an employment or other business relationship
5-13     with a vendor that results in the director's or employee's
5-14     receiving taxable income, including the nature and extent of the
5-15     relationship; and
5-16                       (B)  any gifts received in a 12-month period by
5-17     that director or employee from a vendor that have a total value of
5-18     more than $250;
5-19                 (2)  an acknowledgment from the director or employee
5-20     that:
5-21                       (A)  the disclosure applies to a person related
5-22     to that director or employee within the first degree by
5-23     consanguinity or by affinity, as defined by Subchapter B, Chapter
5-24     573, Government Code; and
5-25                       (B)  the statement covers the preceding 12
5-26     months; and
5-27                 (3)  a signature by the director or employee
 6-1     acknowledging execution of the statement under penalty of perjury.
 6-2           (b)  The disclosure requirement applies to a director or
 6-3     employee and requires disclosure for a person related to that
 6-4     director or employee within the first degree by consanguinity or by
 6-5     affinity, as defined by Subchapter B, Chapter 573, Government Code.
 6-6           (c)  A director or employee shall file a conflicts disclosure
 6-7     statement with the board secretary not later than the end of the
 6-8     first business day on which the director or employee became aware
 6-9     of the relationship between the district and the vendor if:
6-10                 (1)  the vendor has contracted with the district;
6-11                 (2)  the district is considering conducting business
6-12     with the vendor; or
6-13                 (3)  a vendor offered one or more gifts to that
6-14     director or employee in the previous 12-month period that have a
6-15     total value of more than $250.
6-16           (d)  If a director has knowledge that another director has
6-17     not made a disclosure required by this section, the director may
6-18     notify the presiding officer of the board of this fact, or may
6-19     notify the board secretary if the presiding officer is the person
6-20     who failed to make the disclosure.  The presiding officer or
6-21     secretary, as appropriate, may make a preliminary inquiry regarding
6-22     the disclosure and may notify in writing the official who appointed
6-23     the director of the alleged failure to disclose and the reasons for
6-24     believing that a failure to disclose occurred.
6-25           (e)  An employee may not receive during a 12-month period any
6-26     gifts from a vendor that have a total value of more than $250
6-27     unless the employee receives written approval from the presiding
 7-1     officer.
 7-2           Sec. 335.109.  REQUEST FOR OPINION FROM GENERAL COUNSEL.  (a)
 7-3     An employee, with the presiding officer's consent, or a director
 7-4     may seek a written advisory opinion from the district's general
 7-5     counsel concerning whether a violation of Section 335.107 or
 7-6     335.108 exists in a certain situation.  The request must provide
 7-7     detailed information about the alleged violation or hypothetical
 7-8     situation.
 7-9           (b)  After receiving a request, the district's general
7-10     counsel shall prepare a written advisory opinion addressing whether
7-11     a violation has occurred under the information provided.
7-12           (c)  A director or employee may rely in good faith on a
7-13     written advisory opinion issued under this section with respect to
7-14     a  potential violation of Section 335.107 or 335.108.
7-15           Sec. 335.110.  PENALTIES.  The board may reprimand, suspend,
7-16     or terminate an employee who violates the district's code of
7-17     conduct.
7-18           SECTION 3.  Section 335.031(c), Local Government Code, is
7-19     amended to read as follows:
7-20           (c)  Directors serve staggered two-year terms.  A director
7-21     may be removed by the appointing person [mayor or county judge] at
7-22     any time without cause.  Successor directors are appointed in the
7-23     same manner as the original appointees.
7-24           SECTION 4.  Section 335.034, Local Government Code, is
7-25     amended to read as follows:
7-26           Sec. 335.034.  OFFICERS.  Except as provided by Section
7-27     335.035, the [The] presiding officer is designated as provided by
 8-1     the concurrent order.  The board shall designate from the members
 8-2     of the board a secretary and other officers the board considers
 8-3     necessary.
 8-4           SECTION 5.  Subchapter C, Chapter 335, Local Government Code,
 8-5     is amended by adding Section 335.035 to read as follows:
 8-6           Sec. 335.035.  ADDITIONAL REQUIREMENTS FOR BOARD OF DISTRICT
 8-7     CREATED IN POPULOUS COUNTY.  (a)  This section applies only to the
 8-8     board of a district located in whole or in part in a county with a
 8-9     population of 2.4 million or more.
8-10           (b)  The mayor of each municipality and the commissioners
8-11     court of each county that create the district shall appoint an
8-12     equal number of directors in accordance with the orders creating
8-13     the district and Section 335.031.  An appointment of a director by
8-14     a mayor must be confirmed by a majority vote of the governing body
8-15     of the municipality.
8-16           (c)  The mayors of the municipalities and the commissioners
8-17     courts of the counties that create the district shall appoint a
8-18     presiding officer by concurrent orders on or before the 30th day
8-19     after the date on which either the two-year term of office expires
8-20     or a vacancy occurs in the presiding officer's position.  The
8-21     appointment must be confirmed by a majority vote of the governing
8-22     body of each municipality.  The presiding officer serves for a
8-23     two-year term.
8-24           (d)  If the mayors and the commissioners courts fail to agree
8-25     on the appointment of a presiding officer under Subsection (c), the
8-26     board shall appoint, from the district's directors, a presiding
8-27     officer by a majority vote at the first board meeting that follows
 9-1     the 30-day period described by Subsection (c).  The confirmation
 9-2     requirement of Subsection (c) does not apply to an appointment of a
 9-3     presiding officer under this subsection.
 9-4           (e)  A presiding officer appointed under Subsection (d) shall
 9-5     resign as a director before serving as presiding officer.  The
 9-6     vacancy created by the resignation is filled by the authority that
 9-7     appointed the director.  The appointed director serves for the
 9-8     remainder of the vacated term.
 9-9           (f)  Section 335.031(b) does not apply to a district located
9-10     in a county with a population of 2.4 million or more.
9-11           SECTION 6.  Section 335.054, Local Government Code, is
9-12     amended by adding Subsection (g) as follows:
9-13           (g)  Notwithstanding Subsections (c) and (d) of this section,
9-14     if a district is presently collecting taxes from one or more
9-15     methods of financing and seeks to use a portion of the revenue from
9-16     the tax or taxes to finance the venue project and does not seek to
9-17     change the rate of tax or taxes, the ballot at the election or
9-18     elections held under this section must be printed to permit voting
9-19     for or against the proposition: "Authorizing ____________ (insert
9-20     name of district) to __________ (insert description of venue
9-21     project) using a portion of existing __________ (insert type of tax
9-22     or taxes) tax for the purpose of financing the project."
9-23           SECTION 7.  (a)  This Act takes effect September 1, 1999.
9-24           (b)  Section 335.107, Local Government Code, as added by this
9-25     Act, applies only to:
9-26                 (1)  a contract entered into by a vendor on or after
9-27     September 1, 1999; or
 10-1                (2)  a renewal or extension of a contract entered into
 10-2    before September 1, 1999, that occurs on or after September 1,
 10-3    1999.
 10-4          (c)  The change in law made by Section 335.035, Local
 10-5    Government Code, as added by this Act, applies only to an
 10-6    appointment of a director or presiding officer to the board of a
 10-7    venue district on or after the effective date of this Act.  An
 10-8    appointment of a director or presiding officer to the board of a
 10-9    venue district before the effective date of this Act is governed by
10-10    the law in effect immediately before the effective date, and that
10-11    law is continued in effect for that purpose.
10-12          SECTION 8.  The importance of this legislation and the
10-13    crowded condition of the calendars in both houses create an
10-14    emergency and an imperative public necessity that the
10-15    constitutional rule requiring bills to be read on three several
10-16    days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3300 was passed by the House on May
         8, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 3300 on May 22, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3300 was passed by the Senate, with
         amendments, on May 20, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor