By Coleman, Danburg                                   H.B. No. 3300
         76R5934 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to limits on eminent domain and a code of conduct for
 1-3     sports and community venue districts in certain populous counties.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter E, Chapter 335, Local Government Code,
 1-6     is amended by adding Section 335.0711 to read as follows:
 1-7           Sec. 335.0711.  LIMIT ON POWER OF EMINENT DOMAIN IN CERTAIN
 1-8     DISTRICTS.  (a)  For purposes of this section, "facility site"
 1-9     means a site for:
1-10                 (1)  an arena, coliseum, stadium, or other type of area
1-11     or facility:
1-12                       (A)  that is used or is planned for use for one
1-13     or more professional or amateur sports events, community events, or
1-14     other sports events, including rodeos, livestock shows,
1-15     agricultural expositions, promotional events, and other civic or
1-16     charitable events; and
1-17                       (B)  for which a fee for admission to the events
1-18     is charged or is planned to be charged; or
1-19                 (2)  a convention center facility or related
1-20     improvement such as a convention center, civic center, civic center
1-21     building, auditorium, theater, opera house, music hall, exhibition
1-22     hall, rehearsal hall, museum, or aquarium.
1-23           (b)  This section applies only to a district located in a
1-24     county with a population of 2.4 million or more.
 2-1           (c)  A district may use its power of eminent domain under
 2-2     Section 335.071 only to acquire a facility site as part of an
 2-3     approved venue project.  A district may not use its right and power
 2-4     of eminent domain for any other purpose.
 2-5           (d)  A district may not participate in any way in planning or
 2-6     zoning issues before the governing body of a municipality.
 2-7           SECTION 2.  Chapter 335, Local Government Code, is amended by
 2-8     adding Subchapter F to read as follows:
 2-9            SUBCHAPTER F.  CODE OF CONDUCT FOR CERTAIN DISTRICTS
2-10           Sec. 335.101.  DEFINITIONS.  In this subchapter:
2-11                 (1)  "Director" means a board member.
2-12                 (2)  "Employee" means a district employee.
2-13           Sec. 335.102.  APPLICABILITY OF SUBCHAPTER.  This subchapter
2-14     applies only to a district located in a county with a population of
2-15     2.4 million or more.
2-16           Sec. 335.103.  APPLICABILITY OF LAWS.  (a)  Chapter 171
2-17     applies to an employee as if the employee was a local public
2-18     official, as that term is defined by Section 171.001.
2-19           (b)  Chapter 553, Government Code, applies to an employee as
2-20     if the employee was a public servant, as that term is defined by
2-21     Section 553.001, Government Code.
2-22           (c)  Chapter 573, Government Code, applies to an employee as
2-23     if the employee was a public official, as that term is defined in
2-24     Section 573.001, Government Code.
2-25           Sec. 335.104.  DISTRIBUTION OF CODE OF CONDUCT.  The
2-26     presiding officer of the board shall provide to directors and
2-27     employees, as often as necessary, a code of conduct regarding the
 3-1     requirements for office or employment under this chapter,
 3-2     including:
 3-3                 (1)  information regarding a person's responsibilities
 3-4     relating to standards of conduct for a government officer or
 3-5     employee;
 3-6                 (2)  a summary and citation of the laws applicable to
 3-7     a district officer or employee;
 3-8                 (3)  this subchapter; and
 3-9                 (4)  any additional requirements that the board may by
3-10     rule add to the code of conduct.
3-11           Sec. 335.105.  RULEMAKING.  The board by rule may modify its
3-12     code of conduct.
3-13           Sec. 335.106.  GENERAL DUTIES.  A director or employee shall:
3-14                 (1)  be, and give the appearance of being, independent
3-15     and impartial;
3-16                 (2)  place, and give the appearance of placing, the
3-17     public interest above any private interest in the person's position
3-18     of public trust; and
3-19                 (3)  strive to instill confidence in the integrity of
3-20     the board and employees.
3-21           Sec. 335.107.  VENDOR REQUIREMENTS.  (a)  This section
3-22     applies to a vendor who:
3-23                 (1)  responds to a district request for a proposal; or
3-24                 (2)  otherwise communicates  with the district in
3-25     connection with a potential agreement between that vendor and the
3-26     district.
3-27           (b)  The board by rule shall design a  conflict of interest
 4-1     questionnaire that requires disclosure of a vendor's affiliations
 4-2     or business relationships that might cause a conflict of interest.
 4-3           (c)  A vendor shall file a completed conflict of interest
 4-4     questionnaire with the board secretary not less than seven days
 4-5     after the vendor:
 4-6                 (1)  begins contract discussions or negotiations with
 4-7     the district; or
 4-8                 (2)  forwards an application, response to a request for
 4-9     proposal, correspondence, or other writings related to an agreement
4-10     or potential agreement with the district.
4-11           (d)  The board may not approve an agreement with a vendor
4-12     unless the vendor's completed questionnaire has been on file with
4-13     the board  secretary for not less than five days.
4-14           (e)  A vendor shall file an updated completed questionnaire
4-15     with the board secretary:
4-16                 (1)  on September 1 of each year; and
4-17                 (2)  after each event that would make a statement in
4-18     the questionnaire incomplete or inaccurate.
4-19           (f)  Each contract entered into between a district and a
4-20     vendor shall contain a provision stating that the contract is void
4-21     if the board or vendor violates this section.  A contract entered
4-22     into between a district and a vendor is void if the board or a
4-23     vendor violates this section.
4-24           Sec. 335.108.  DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS
4-25     AND EMPLOYEES.  (a)  The board by rule shall design a  conflicts
4-26     disclosure statement for directors and employees that includes:
4-27                 (1)  a requirement that each director and employee
 5-1     disclose:
 5-2                       (A)  an employment or other business relationship
 5-3     with a vendor that results in the director's or employee's
 5-4     receiving taxable income, including the nature and extent of the
 5-5     relationship; and
 5-6                       (B)  any gifts received in a 12-month period by
 5-7     that director or employee from a vendor that have a total value of
 5-8     more than $250;
 5-9                 (2)  an acknowledgment from the director or employee
5-10     that:
5-11                       (A)  the disclosure applies to a person related
5-12     to that director or employee within the first degree by
5-13     consanguinity or by affinity, as defined by Subchapter B, Chapter
5-14     573, Government Code; and
5-15                       (B)  the statement covers the preceding 12
5-16     months; and
5-17                 (3)  a signature by the director or employee
5-18     acknowledging execution of the statement under penalty of perjury.
5-19           (b)  The disclosure requirement applies to a director or
5-20     employee and a person related to that director or employee within
5-21     the first degree by consanguinity or by affinity, as defined by
5-22     Subchapter B, Chapter 573, Government Code.
5-23           (c)  A director or employee shall file a conflicts disclosure
5-24     statement with the board secretary not later than the end of the
5-25     first business day on which the director or employee became aware
5-26     of the relationship between the district and the vendor if:
5-27                 (1)  the vendor has contracted with the district;
 6-1                 (2)  the district is considering conducting business
 6-2     with the vendor; or
 6-3                 (3)  a vendor offered one or more gifts to that
 6-4     director or employee in the previous 12-month period that have a
 6-5     total value of more than $250.
 6-6           (d)  If a director has knowledge that another director has
 6-7     not made a disclosure required by this section, the director may
 6-8     notify the presiding officer of the board of this fact, or may
 6-9     notify the board secretary if the presiding officer is the person
6-10     who failed to make the disclosure.  The presiding officer or
6-11     secretary, as appropriate, may make a preliminary inquiry regarding
6-12     the disclosure and may notify in writing the official who appointed
6-13     the director of the alleged failure to disclose and the reasons for
6-14     believing that a failure to disclose occurred.
6-15           (e)  An employee may not receive during a 12-month period any
6-16     gifts from a vendor that have a total value of more than $250
6-17     unless the employee receives written approval from the presiding
6-18     officer.
6-19           Sec. 335.109.  REQUEST FOR OPINION FROM GENERAL COUNSEL.  (a)
6-20     An employee, with the presiding officer's consent, or a director
6-21     may seek a written advisory opinion from the district's general
6-22     counsel concerning whether a violation of Section 335.107 or
6-23     335.108 exists in a certain situation.  The request must provide
6-24     detailed information about the alleged violation or hypothetical
6-25     situation.
6-26           (b)  After receiving a request, the district's general
6-27     counsel shall prepare a written advisory opinion addressing whether
 7-1     a violation has occurred under the information provided.
 7-2           (c)  A director or employee may rely in good faith on a
 7-3     written advisory opinion issued under this section with respect to
 7-4     a  potential violation of Section 335.107 or 335.108.
 7-5           Sec. 335.110.  PENALTIES.  The board may reprimand, suspend,
 7-6     or terminate an employee who violates the district's code of
 7-7     conduct.
 7-8           SECTION 3.  (a)  This Act takes effect September 1, 1999.
 7-9           (b)  Section 335.107, Local Government Code, as added by this
7-10     Act, applies only to:
7-11                 (1)  a contract entered into by a vendor on or after
7-12     September 1, 1999; or
7-13                 (2)  a renewal or extension of a contract entered into
7-14     before September 1, 1999, that occurs on or after September 1,
7-15     1999.
7-16           SECTION 4.  The importance of this legislation and the
7-17     crowded condition of the calendars in both houses create an
7-18     emergency and an imperative public necessity that the
7-19     constitutional rule requiring bills to be read on three several
7-20     days in each house be suspended, and this rule is hereby suspended.
7-21                          COMMITTEE AMENDMENT NO. 1
7-22           Amend H.B. 3300 as follows:
7-23           (1)  On page 1, strike lines 7 through 9, and substitute:
7-24           Sec. 335.0711.  LIMIT ON POWER TO OWN OR ACQUIRE REAL
7-25     PROPERTY IN CERTAIN DISTRICTS.  (a)  In this section:
7-26                 (1)  "Facility site" means a site for:
7-27           (2)  On page 1, line 10, strike "(1)" and substitute "(A)".
 8-1           (3)  On page 1, line 12, strike "(A)" and substitute "(i)".
 8-2           (4)  On page 1, line 17, strike "(B)" and substitute "(ii)".
 8-3           (5)  On page 1, line 19, strike "(2)" and substitute "(B)".
 8-4           (6)  On page 1, between lines 22 and 23, insert:
 8-5                 (2)  "Real property" includes an arena, coliseum,
 8-6     stadium, facility site, and related infrastructure.
 8-7                 (3)  "Related infrastructure" means a store,
 8-8     restaurant, on-site hotel, concession, automobile parking facility,
 8-9     road, street, water or sewer facility, or other on-site improvement
8-10     that relates to and enhances the use, value, or appeal of a venue.
8-11           (7)  On page 2, strike lines 1 through 4, and substitute:
8-12           (c)  A district may not own or acquire real property by
8-13     eminent domain or any other method unless:
8-14                 (1)  the property is for a facility site or related
8-15     infrastructure as part of an approved venue project in existence as
8-16     of April 1, 1999; and
8-17                 (2)  the governing bodies of the municipality and
8-18     county by resolution or order approve the acquisition.
8-19           (8)  On page 2, between lines 10 and 11, insert:
8-20                 (1)  "Code of conduct" means the rules adopted by a
8-21     board under Section 335.104.
8-22           (9)  On page 2, line 11, strike "(1)" and substitute "(2)".
8-23           (10)  On page 2, line 12, strike "(2)" and substitute "(3)".
8-24           (11)  Strike page 2, line 25, through page 3, line 10, and
8-25     substitute:
8-26           Sec. 335.104.  CREATION OF CODE OF CONDUCT; DISTRIBUTION.
8-27     (a)  The board by rule shall adopt and maintain a code of conduct
 9-1     that establishes the general duties of directors and employees of
 9-2     the district and specific rules for directors, employees, and
 9-3     vendors.  The code of conduct must include:
 9-4                 (1)  information regarding a person's duties relating
 9-5     to the standards of conduct for a government officer or employee;
 9-6                 (2)  a summary of and citation to the laws applicable
 9-7     to the conduct of a district officer, employee, or vendor,
 9-8     including a copy of the text of this subchapter;
 9-9                 (3)  disclosure requirements for directors, employees,
9-10     and vendors; and
9-11                 (4)  a summary of penalties provided by this subchapter
9-12     and other law.
9-13           (b)  The presiding officer of the board shall provide to
9-14     directors, employees, and vendors, as often as necessary, the code
9-15     of conduct created under this section.
9-16           (12)  On page 4, strike lines 11 through 13.
9-17           (13)  On page 4, line 14, strike "(e)" and substitute "(d)".
9-18           (14)  On page 4, line 19, strike "(f)" and substitute "(e)".
9-19           (15)  On page 4, line 20, strike "void" and substitute
9-20     "voidable".
9-21           (16)  On page 4, line 22, strike "void" and substitute
9-22     "voidable".
9-23           (17)  On page 5, line 20, between "and" and "a", insert
9-24     "requires disclosure for".
9-25     76R12013 MXM-D                                              Danburg
9-26                          COMMITTEE AMENDMENT NO. 2
9-27           Amend H.B. 3300 as follows:
 10-1          (1)  On page 7, between lines 7 and 8, insert:
 10-2          SECTION 3.  Section 335.031(c), Local Government Code, is
 10-3    amended to read as follows:
 10-4          (c)  Directors serve staggered two-year terms.  A director
 10-5    may be removed by the appointing person [mayor or county judge] at
 10-6    any time without cause.  Successor directors are appointed in the
 10-7    same manner as the original appointees.
 10-8          SECTION 4.  Section 335.034, Local Government Code, is
 10-9    amended to read as follows:
10-10          Sec. 335.034.  OFFICERS.  Except as provided by Section
10-11    335.035, the [The] presiding officer is designated as provided by
10-12    the concurrent order.  The board shall designate from the members
10-13    of the board a secretary and other officers the board considers
10-14    necessary.
10-15          SECTION 5.  Subchapter C, Chapter 335, Local Government Code,
10-16    is amended by adding Section 335.035 to read as follows:
10-17          Sec. 335.035.  ADDITIONAL REQUIREMENTS FOR BOARD OF DISTRICT
10-18    CREATED IN POPULOUS COUNTY.  (a)  This section applies only to the
10-19    board of a district located in a county with a population of 2.4
10-20    million or more.
10-21          (b)  The mayor of each municipality and the commissioners
10-22    court of each county that create the district shall appoint an
10-23    equal number of directors in accordance with the orders creating
10-24    the district and Section 335.031.  An appointment of a director by
10-25    a mayor must be confirmed by a majority vote of the governing body
10-26    of the municipality.
10-27          (c)  The mayors of the municipalities and the commissioners
 11-1    courts of the counties that create the district shall appoint a
 11-2    presiding officer by concurrent orders on or before the 30th day
 11-3    after the date a vacancy occurs in the presiding officer's
 11-4    position.  The appointment must be confirmed by a majority vote of
 11-5    the governing body of each municipality.  The presiding officer
 11-6    serves for a two-year term.
 11-7          (d)  If the mayors and the commissioners courts fail to agree
 11-8    on the appointment of a presiding officer under Subsection (c), the
 11-9    board shall appoint, from the district's directors, a presiding
11-10    officer by a majority vote at the first board meeting that follows
11-11    the 30-day period described by Subsection (c).  The confirmation
11-12    requirement of Subsection (c) does not apply to an appointment of a
11-13    presiding officer under this subsection.
11-14          (e)  A presiding officer appointed under Subsection (d) shall
11-15    resign as a director before serving as presiding officer.  The
11-16    vacancy created by the resignation is filled by the authority that
11-17    appointed the director.  The appointed director serves for the
11-18    remainder of the vacated term.
11-19          (f)  Section 335.031(b) does not apply to a district located
11-20    in a county with a population of 2.4 million or more.
11-21          (2)  On page 7, between lines 15 and 16, insert:
11-22          (c)  The change in law made by Section 335.035, Local
11-23    Government Code, as added by this Act, applies only to an
11-24    appointment of a director or presiding officer to the board of a
11-25    venue district on or after the effective date of this Act.  An
11-26    appointment of a director or presiding officer to the board of a
11-27    venue district before the effective date of this Act is governed by
 12-1    the law in effect immediately before the effective date, and that
 12-2    law is continued in effect for that purpose.
 12-3          (3)  Renumber the subsequent sections of the bill
 12-4    appropriately.
 12-5    76R12604 MXM-D                                              Danburg