1-1     By:  Coleman, Danburg (Senate Sponsor - Whitmire)     H.B. No. 3300
 1-2           (In the Senate - Received from the House May 10, 1999;
 1-3     May 10, 1999, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 14, 1999, reported favorably, as
 1-5     amended, by the following vote:  Yeas 4, Nays 0; May 14, 1999, sent
 1-6     to printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                              By:  Lindsay
 1-8     Amend H.B. 3300 as follows:
 1-9     (1)  On page 4, line 38 insert "whole or in part in" after "in" and
1-10     before "a".
1-11     (2)  On page 4, line 49 insert "on which either the two year term
1-12     of office expires or" after "date" and before "a".
1-13     COMMITTEE AMENDMENT NO. 2                              By:  Lindsay
1-14     Amend HB 3300 as follows:
1-15     Delete all of subsection c on page 2, lines 11 through 17 and
1-16     replace it with a new subsection c as follows:
1-17           (c)  Notwithstanding any other provision of this chapter, a
1-18     district may not own or acquire real property by eminent domain or
1-19     any other method unless the property is for a facility site or
1-20     related infrastructure as part of an approved venue project.
1-21     COMMITTEE AMENDMENT NO. 3                              By:  Lindsay
1-22           Amend H.B. 3300 as follows:
1-23           (1)  On page 4, between lines 66 and 67 (House Engrossment),
1-24     insert the following appropriately numbered new section and
1-25     renumber subsequent sections appropriately:
1-26           SECTION ___.  Section 335.054, Local Government Code, is
1-27     amended by adding new Subsection (e) as follows:
1-28           (e)  Notwithstanding Subsections (c) and (d) of this section,
1-29     if a district is presently collecting taxes from one or more
1-30     methods of financing and seeks to use a portion of the revenue from
1-31     the tax or taxes to finance the venue project and does not seek to
1-32     change the rate of tax or taxes, the ballot at the election or
1-33     elections held under this section must be printed to permit voting
1-34     for or against the proposition:  "Authorizing            (insert
1-35     name of district) to            (insert description of venue
1-36     project) using a portion of existing        (insert type of tax or
1-37     taxes) tax for the purpose of financing the project."
1-38                            A BILL TO BE ENTITLED
1-39                                   AN ACT
1-40     relating to limits on eminent domain, a code of conduct, and the
1-41     board of directors for sports and community venue districts in
1-42     certain populous counties.
1-43           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-44           SECTION 1.  Subchapter E, Chapter 335, Local Government Code,
1-45     is amended by adding Section 335.0711 to read as follows:
1-46           Sec. 335.0711.  LIMIT ON POWER TO OWN OR ACQUIRE REAL
1-47     PROPERTY IN CERTAIN DISTRICTS.  (a)  In this section:
1-48                 (1)  "Facility site" means a site for:
1-49                       (A)  an arena, coliseum, stadium, or other type
1-50     of area or facility:
1-51                             (i)  that is used or is planned for use for
1-52     one or more professional or amateur sports events, community
1-53     events, or other sports events, including rodeos, livestock shows,
1-54     agricultural expositions, promotional events, and other civic or
1-55     charitable events; and
1-56                             (ii)  for which a fee for admission to the
1-57     events is charged or is planned to be charged; or
1-58                       (B)  a convention center facility or related
1-59     improvement such as a convention center, civic center, civic center
 2-1     building, auditorium, theater, opera house, music hall, exhibition
 2-2     hall, rehearsal hall, museum, or aquarium.
 2-3                 (2)  "Real property" includes an arena, coliseum,
 2-4     stadium, facility site, and related infrastructure.
 2-5                 (3)  "Related infrastructure" means a store,
 2-6     restaurant, on-site hotel, concession, automobile parking facility,
 2-7     road, street, water or sewer facility, or other on-site improvement
 2-8     that relates to and enhances the use, value, or appeal of a venue.
 2-9           (b)  This section applies only to a district located in a
2-10     county with a population of 2.4 million or more.
2-11           (c)  A district may not own or acquire real property by
2-12     eminent domain or any other method unless:
2-13                 (1)  the property is for a facility site or related
2-14     infrastructure as part of an approved venue project in existence as
2-15     of April 1, 1999; and
2-16                 (2)  the governing bodies of the municipality and
2-17     county by resolution or order approve the acquisition.
2-18           (d)  A district may not participate in any way in planning or
2-19     zoning issues before the governing body of a municipality.
2-20           SECTION 2.  Chapter 335, Local Government Code, is amended by
2-21     adding Subchapter F to read as follows:
2-22            SUBCHAPTER F.  CODE OF CONDUCT FOR CERTAIN DISTRICTS
2-23           Sec. 335.101.  DEFINITIONS.  In this subchapter:
2-24                 (1)  "Code of conduct" means the rules adopted by a
2-25     board under Section 335.104.
2-26                 (2)  "Director" means a board member.
2-27                 (3)  "Employee" means a district employee.
2-28           Sec. 335.102.  APPLICABILITY OF SUBCHAPTER.  This subchapter
2-29     applies only to a district located in a county with a population of
2-30     2.4 million or more.
2-31           Sec. 335.103.  APPLICABILITY OF LAWS.  (a)  Chapter 171
2-32     applies to an employee as if the employee was a local public
2-33     official, as that term is defined by Section 171.001.
2-34           (b)  Chapter 553, Government Code, applies to an employee as
2-35     if the employee was a public servant, as that term is defined by
2-36     Section 553.001, Government Code.
2-37           (c)  Chapter 573, Government Code, applies to an employee as
2-38     if the employee was a public official, as that term is defined in
2-39     Section 573.001, Government Code.
2-40           Sec. 335.104.  CREATION OF CODE OF CONDUCT; DISTRIBUTION.
2-41     (a)  The board by rule shall adopt and maintain a code of conduct
2-42     that establishes the general duties of directors and employees of
2-43     the district and specific rules for directors, employees, and
2-44     vendors.  The code of conduct must include:
2-45                 (1)  information regarding a person's duties relating
2-46     to the standards of conduct for a government officer or employee;
2-47                 (2)  a summary of and citation to the laws applicable
2-48     to the conduct of a district officer, employee, or vendor,
2-49     including a copy of the text of this subchapter;
2-50                 (3)  disclosure requirements for directors, employees,
2-51     and vendors; and
2-52                 (4)  a summary of penalties provided by this subchapter
2-53     and other law.
2-54           (b)  The presiding officer of the board shall provide to
2-55     directors, employees, and vendors, as often as necessary, the code
2-56     of conduct created under this section.
2-57           Sec. 335.105.  RULEMAKING.  The board by rule may modify its
2-58     code of conduct.
2-59           Sec. 335.106.  GENERAL DUTIES.  A director or employee shall:
2-60                 (1)  be, and give the appearance of being, independent
2-61     and impartial;
2-62                 (2)  place, and give the appearance of placing, the
2-63     public interest above any private interest in the person's position
2-64     of public trust; and
2-65                 (3)  strive to instill confidence in the integrity of
2-66     the board and employees.
2-67           Sec. 335.107.  VENDOR REQUIREMENTS.  (a)  This section
2-68     applies to a vendor who:
2-69                 (1)  responds to a district request for a proposal; or
 3-1                 (2)  otherwise communicates  with the district in
 3-2     connection with a potential agreement between that vendor and the
 3-3     district.
 3-4           (b)  The board by rule shall design a  conflict of interest
 3-5     questionnaire that requires disclosure of a vendor's affiliations
 3-6     or business relationships that might cause a conflict of interest.
 3-7           (c)  A vendor shall file a completed conflict of interest
 3-8     questionnaire with the board secretary not less than seven days
 3-9     after the vendor:
3-10                 (1)  begins contract discussions or negotiations with
3-11     the district; or
3-12                 (2)  forwards an application, response to a request for
3-13     proposal, correspondence, or other writings related to an agreement
3-14     or potential agreement with the district.
3-15           (d)  A vendor shall file an updated completed questionnaire
3-16     with the board secretary:
3-17                 (1)  on September 1 of each year; and
3-18                 (2)  after each event that would make a statement in
3-19     the questionnaire incomplete or inaccurate.
3-20           (e)  Each contract entered into between a district and a
3-21     vendor shall contain a provision stating that the contract is
3-22     voidable if the board or vendor violates this section.  A contract
3-23     entered into between a district and a vendor is voidable if the
3-24     board or a vendor violates this section.
3-25           Sec. 335.108.  DISCLOSURE OF VENDOR RELATIONSHIP BY DIRECTORS
3-26     AND EMPLOYEES.  (a)  The board by rule shall design a  conflicts
3-27     disclosure statement for directors and employees that includes:
3-28                 (1)  a requirement that each director and employee
3-29     disclose:
3-30                       (A)  an employment or other business relationship
3-31     with a vendor that results in the director's or employee's
3-32     receiving taxable income, including the nature and extent of the
3-33     relationship; and
3-34                       (B)  any gifts received in a 12-month period by
3-35     that director or employee from a vendor that have a total value of
3-36     more than $250;
3-37                 (2)  an acknowledgment from the director or employee
3-38     that:
3-39                       (A)  the disclosure applies to a person related
3-40     to that director or employee within the first degree by
3-41     consanguinity or by affinity, as defined by Subchapter B, Chapter
3-42     573, Government Code; and
3-43                       (B)  the statement covers the preceding 12
3-44     months; and
3-45                 (3)  a signature by the director or employee
3-46     acknowledging execution of the statement under penalty of perjury.
3-47           (b)  The disclosure requirement applies to a director or
3-48     employee and requires disclosure for a person related to that
3-49     director or employee within the first degree by consanguinity or by
3-50     affinity, as defined by Subchapter B, Chapter 573, Government Code.
3-51           (c)  A director or employee shall file a conflicts disclosure
3-52     statement with the board secretary not later than the end of the
3-53     first business day on which the director or employee became aware
3-54     of the relationship between the district and the vendor if:
3-55                 (1)  the vendor has contracted with the district;
3-56                 (2)  the district is considering conducting business
3-57     with the vendor; or
3-58                 (3)  a vendor offered one or more gifts to that
3-59     director or employee in the previous 12-month period that have a
3-60     total value of more than $250.
3-61           (d)  If a director has knowledge that another director has
3-62     not made a disclosure required by this section, the director may
3-63     notify the presiding officer of the board of this fact, or may
3-64     notify the board secretary if the presiding officer is the person
3-65     who failed to make the disclosure.  The presiding officer or
3-66     secretary, as appropriate, may make a preliminary inquiry regarding
3-67     the disclosure and may notify in writing the official who appointed
3-68     the director of the alleged failure to disclose and the reasons for
3-69     believing that a failure to disclose occurred.
 4-1           (e)  An employee may not receive during a 12-month period any
 4-2     gifts from a vendor that have a total value of more than $250
 4-3     unless the employee receives written approval from the presiding
 4-4     officer.
 4-5           Sec. 335.109.  REQUEST FOR OPINION FROM GENERAL COUNSEL.  (a)
 4-6     An employee, with the presiding officer's consent, or a director
 4-7     may seek a written advisory opinion from the district's general
 4-8     counsel concerning whether a violation of Section 335.107 or
 4-9     335.108 exists in a certain situation.  The request must provide
4-10     detailed information about the alleged violation or hypothetical
4-11     situation.
4-12           (b)  After receiving a request, the district's general
4-13     counsel shall prepare a written advisory opinion addressing whether
4-14     a violation has occurred under the information provided.
4-15           (c)  A director or employee may rely in good faith on a
4-16     written advisory opinion issued under this section with respect to
4-17     a  potential violation of Section 335.107 or 335.108.
4-18           Sec. 335.110.  PENALTIES.  The board may reprimand, suspend,
4-19     or terminate an employee who violates the district's code of
4-20     conduct.
4-21           SECTION 3.  Section 335.031(c), Local Government Code, is
4-22     amended to read as follows:
4-23           (c)  Directors serve staggered two-year terms.  A director
4-24     may be removed by the appointing person [mayor or county judge] at
4-25     any time without cause.  Successor directors are appointed in the
4-26     same manner as the original appointees.
4-27           SECTION 4.  Section 335.034, Local Government Code, is
4-28     amended to read as follows:
4-29           Sec. 335.034.  OFFICERS.  Except as provided by Section
4-30     335.035, the [The] presiding officer is designated as provided by
4-31     the concurrent order.  The board shall designate from the members
4-32     of the board a secretary and other officers the board considers
4-33     necessary.
4-34           SECTION 5.  Subchapter C, Chapter 335, Local Government Code,
4-35     is amended by adding Section 335.035 to read as follows:
4-36           Sec. 335.035.  ADDITIONAL REQUIREMENTS FOR BOARD OF DISTRICT
4-37     CREATED IN POPULOUS COUNTY.  (a)  This section applies only to the
4-38     board of a district located in a county with a population of 2.4
4-39     million or more.
4-40           (b)  The mayor of each municipality and the commissioners
4-41     court of each county that create the district shall appoint an
4-42     equal number of directors in accordance with the orders creating
4-43     the district and Section 335.031.  An appointment of a director by
4-44     a mayor must be confirmed by a majority vote of the governing body
4-45     of the municipality.
4-46           (c)  The mayors of the municipalities and the commissioners
4-47     courts of the counties that create the district shall appoint a
4-48     presiding officer by concurrent orders on or before the 30th day
4-49     after the date a vacancy occurs in the presiding officer's
4-50     position.  The appointment must be confirmed by a majority vote of
4-51     the governing body of each municipality.  The presiding officer
4-52     serves for a two-year term.
4-53           (d)  If the mayors and the commissioners courts fail to agree
4-54     on the appointment of a presiding officer under Subsection (c), the
4-55     board shall appoint, from the district's directors, a presiding
4-56     officer by a majority vote at the first board meeting that follows
4-57     the 30-day period described by Subsection (c).  The confirmation
4-58     requirement of Subsection (c) does not apply to an appointment of a
4-59     presiding officer under this subsection.
4-60           (e)  A presiding officer appointed under Subsection (d) shall
4-61     resign as a director before serving as presiding officer.  The
4-62     vacancy created by the resignation is filled by the authority that
4-63     appointed the director.  The appointed director serves for the
4-64     remainder of the vacated term.
4-65           (f)  Section 335.031(b) does not apply to a district located
4-66     in a county with a population of 2.4 million or more.
4-67           SECTION 6.  (a)  This Act takes effect September 1, 1999.
4-68           (b)  Section 335.107, Local Government Code, as added by this
4-69     Act, applies only to:
 5-1                 (1)  a contract entered into by a vendor on or after
 5-2     September 1, 1999; or
 5-3                 (2)  a renewal or extension of a contract entered into
 5-4     before September 1, 1999, that occurs on or after September 1,
 5-5     1999.
 5-6           (c)  The change in law made by Section 335.035, Local
 5-7     Government Code, as added by this Act, applies only to an
 5-8     appointment of a director or presiding officer to the board of a
 5-9     venue district on or after the effective date of this Act.  An
5-10     appointment of a director or presiding officer to the board of a
5-11     venue district before the effective date of this Act is governed by
5-12     the law in effect immediately before the effective date, and that
5-13     law is continued in effect for that purpose.
5-14           SECTION 7.  The importance of this legislation and the
5-15     crowded condition of the calendars in both houses create an
5-16     emergency and an imperative public necessity that the
5-17     constitutional rule requiring bills to be read on three several
5-18     days in each house be suspended, and this rule is hereby suspended.
5-19                                  * * * * *