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