By Williams H.B. No. 3453
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 Relating to the administration, powers, including taxing powers,
1-3 operations and financing of Town Center Improvement District of
1-4 Montgomery County, Texas.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. That Section 7 of Chapter 289, Acts of the 73rd
1-7 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
1-8 of the 75th Texas Legislature, Regular Session, 1997, is amended to
1-9 read as follows:
1-10 Sec. 7. Additional Specific Powers and Duties. In addition
1-11 to the general powers set forth in Section 6 of this Act, the board
1-12 may, subject to the provisions and limitations hereinafter set
1-13 forth:
1-14 (1) levy, assess, and apply the proceeds from [a] the
1-15 limited sales and use taxes authorized in Sections 11 and 11C of
1-16 this Act for [the district's] authorized purposes, provided that,
1-17 during each interval of three calendar years following the
1-18 commencement of collection of such tax, the board shall, consistent
1-19 with constitutional limitations and the district's authorized
1-20 powers and purposes, and in its sound discretion, endeavor to apply
1-21 an annual average of not less than 10 percent of the net proceeds
2-1 of [such] all tax collections from the tax imposed pursuant to
2-2 Section 11 of this Act, after deduction of the general and
2-3 administrative costs and expenses of the district and the costs and
2-4 expenses of levying, assessing, and collecting such taxes, toward
2-5 mitigation of the net negative impact of development within the
2-6 district on [adjacent] the impact area[s], including without
2-7 limitation effects on public utilities and services, public
2-8 transportation and traffic movement, and scenic and aesthetic
2-9 beauty[;]. As used in this subdivision, "impact area" means and
2-10 includes:
2-11 (i) the corporate limits of the City of
2-12 Shenandoah, Texas, and the City of Oak Ridge North, Texas, as same
2-13 may exist from time to time;
2-14 (ii) the unincorporated area, whether or
2-15 not contiguous to the boundaries of the district or the impact
2-16 area, which is located within the assessment authority of any
2-17 non-profit property owners corporation or association imposing or
2-18 authorized to impose assessments on property on the basis of the
2-19 taxable value of such property on any local governmental tax or
2-20 assessment roll, and which has had for at least two consecutive tax
2-21 years a total assessed value, before exemptions and tax abatements,
2-22 of more than one hundred million dollars, and which is situated
2-23 within either two miles of any point on the boundaries of the
2-24 district or one mile from the center line of State Highway No. 242;
2-25 and
3-1 (iii) such other territory, whether or not
3-2 contiguous to the boundaries of the district or the impact area, as
3-3 the board may by resolution designate for full or limited purposes
3-4 or for a specified, permanent or indefinite period of time. In
3-5 determining compliance with this subsection, direct expenditures
3-6 made within or for the district or the impact area shall be
3-7 directly allocable to each, but costs or expenditures for the
3-8 general welfare, promotion, or benefit of the combined district and
3-9 impact area including, without limitation, debt service and capital
3-10 improvement costs or expenditures, shall be allocable between the
3-11 district and the impact area proportionate to the benefits
3-12 conferred to each, as determined in the sound discretion of the
3-13 board;
3-14 (2) borrow money for the corporate purposes of the
3-15 district;
3-16 (3) add or exclude territory in the manner provided by
3-17 Subchapter J, Chapter 49, and Section 54.016, Water Code, except
3-18 that all references therein to taxes shall mean and refer only to
3-19 ad valorem taxes, and Section 42.042, Local Government Code, and
3-20 Section 54.016, Water Code, shall apply to the district with
3-21 respect to a municipality having a population of 25,000 or less,
3-22 but shall not otherwise apply to the annexation of land restricted
3-23 primarily to commercial or business use;
3-24 (4) contract with any person or entity for the
3-25 accomplishment of any of the district's purposes including without
4-1 limitation contracting for:
4-2 (A) the payment, repayment, or reimbursement,
4-3 out of tax proceeds or any other specified source of funds, of any
4-4 costs and reasonable carrying costs incurred by that person for or
4-5 on behalf of the district, including all or part of the costs of
4-6 any improvement project; or
4-7 (B) the use, occupancy, lease, rental,
4-8 operation, maintenance, or management of all or part of a proposed
4-9 or existing improvement project;
4-10 (5) make application for and contract with any person
4-11 or entity to receive, administer, and perform the district's duties
4-12 and obligations under any federal, state, local, or private gift,
4-13 grant, loan, conveyance, transfer, bequest, donation, or other
4-14 financial assistance arrangement relating to the investigation,
4-15 planning, analysis, study, design, acquisition, construction,
4-16 improvement, completion, implementation, or operation by the
4-17 district or others of a proposed or existing improvement project;
4-18 (6) make, adopt, revise, repeal, amend, promulgate,
4-19 and enforce by ordinary civil remedies reasonable rules and
4-20 regulations for the administration and operation of the district,
4-21 the use, enjoyment, availability, protection, security, and
4-22 maintenance of the district's properties and facilities, and
4-23 providing for public safety and security within the district;
4-24 (7) establish, revise, repeal, enforce, collect, and
4-25 apply the proceeds from user fees, concessions, admissions,
5-1 rentals, or other similar fees or charges for the enjoyment, sale,
5-2 rental, or other use of the district's facilities, services,
5-3 properties, or improvement projects; however, because the district
5-4 is created in an area that is devoted primarily to commercial and
5-5 business activity, the district may not impose an impact fee or
5-6 assessment on a single family residential property or a residential
5-7 duplex, triplex, quadruplex, or condominium;
5-8 (8) provide or secure the payment or repayment of the
5-9 costs and expenses of the establishment, administration, and
5-10 operation of the district and the district's costs or share of the
5-11 costs of any improvement project, or district contractual
5-12 obligation or indebtedness, by or through a lease, installment
5-13 purchase contract, or other agreement with any person or the levy
5-14 and assessment of taxes, user fees, concessions, rentals, or other
5-15 revenues or resources of the district;
5-16 (9) undertake separately or jointly with other persons
5-17 or entities and pay all or part of the cost of improvement
5-18 projects, including improvement projects for improving, enhancing,
5-19 and supporting public safety and security, fire protection and
5-20 emergency medical services, and law enforcement within and adjacent
5-21 to the district and improvement projects that confer a general
5-22 benefit on the entire district and the areas adjacent thereto or a
5-23 special benefit on a definable part of the district, which may be
5-24 the entire district or any part thereof; however, the district
5-25 shall not be authorized to employ peace officers, but the district
6-1 may contract for off duty peace officers to provide additional
6-2 public safety and security services in connection with special
6-3 events, holidays, periods of high traffic congestion or similar
6-4 circumstances; [and]
6-5 (10) impose, collect, and apply the proceeds from a
6-6 hotel occupancy tax as provided by Sections 11A and 11B of this
6-7 Act[.];
6-8 (11) exercise the economic development powers and
6-9 authority conferred by Chapter 380, Local Government Code, and
6-10 Vernon's Ann.Civ.St. Article 835s, upon a municipality having a
6-11 population of more than 100,000;
6-12 (12) subject and subordinate to any applicable orders,
6-13 ordinances, rules or regulations of any overlapping county or
6-14 municipality, regulate the private use of public roadways, open
6-15 spaces, parks, sidewalks and similar public areas by:
6-16 (A) adopting reasonable and necessary rules and
6-17 regulations for the safe and orderly use of such areas;
6-18 (B) requiring permits for parades,
6-19 demonstrations, celebrations, entertainment events or similar
6-20 non-governmental activities in such areas, with all or any
6-21 designated portion of the reasonable and necessary costs for such
6-22 permit application, and any additional public safety or security
6-23 services deemed necessary by the district for such activities being
6-24 chargeable to the permit applicant; and
6-25 (C) requiring permits or franchise agreements
7-1 with vendors, concessionaires, exhibitors or similar private or
7-2 commercial persons or organizations for the limited use of such
7-3 areas upon such terms and conditions and upon payment of such
7-4 permit or franchise fees as the district, in its sound discretion,
7-5 may impose; and
7-6 (13) employ and fix the terms of employment and
7-7 compensation of a president, a vice president, an executive
7-8 director, a general manager, and any other operating officers of
7-9 the district as in the judgment of the board are necessary.
7-10 SECTION 2. That subsections (a), (b), (c), (d), (e), and (g)
7-11 of Section 8 of Chapter 289, Acts of the 73rd Legislature, Regular
7-12 Session, 1993, as amended by Chapter 255, Acts of the 75th Texas
7-13 Legislature, Regular Session, 1997, are amended to read as follows:
7-14 (a) The district is governed by a board of [eight] eleven
7-15 directors who shall serve for staggered terms of four years.
7-16 (b)(1) Except as otherwise provided by [Subdivisions (2) and
7-17 (3) of] this subsection, to be qualified to serve as a director, a
7-18 person must be at least 18 years old and be:
7-19 (A) a resident of the district;
7-20 (B) an individual owner of real property in the
7-21 district;
7-22 (C) an individual owner, whether beneficial or
7-23 otherwise, of at least 10 percent of the outstanding stock of a
7-24 corporate owner of real property in the district or of a corporate
7-25 lessee of real property in the district with an original lease term
8-1 of five years or more, excluding options;
8-2 (D) an individual owner of at least 10 percent
8-3 of the beneficial interest in a trust that:
8-4 (i) owns real property in the district; or
8-5 (ii) leases real property in the district
8-6 under an original lease term of five years or more, excluding
8-7 options;
8-8 (E) an individual lessee of real property in the
8-9 district under an original lease term of five years or more,
8-10 excluding options;
8-11 (F) an individual owner of at least 10 percent
8-12 of the outstanding interest in a general or limited partnership
8-13 that:
8-14 (i) owns real property in the district; or
8-15 (ii) leases real property in the district
8-16 under an original lease term of five years or more, excluding
8-17 options; or
8-18 (G) an individual agent, employee, officer, or
8-19 director of any individual, corporation, trust, or partnership that
8-20 owns or leases real property described by Paragraph (B), (C), (D),
8-21 (E), or (F) of this subdivision who is designated by such owner or
8-22 lessee to serve in that capacity; provided that not more than three
8-23 members of the board, whether elected or appointed, may at any time
8-24 be agents, employees, officers, or directors of a single
8-25 individual, corporation, trust, or partnership that owns or leases
9-1 real property described by Paragraph (B), (C), (D), (E), or (F) of
9-2 this subdivision, and any person filing a ballot or write in
9-3 candidate's application or appointed to the board, in order of the
9-4 time of filing or appointment, whose election or appointment would
9-5 cause such limitation to be exceeded, shall be ineligible for
9-6 election or appointment.
9-7 (2) To be eligible for appointment under Subsection
9-8 (c)(1)[(F)] or [(G)] (2) of this section, a person must be a
9-9 resident of the city making the appointment.
9-10 (3) To be eligible for appointment under Subsection
9-11 (c) [(1)(H)] (3) of this section, a person must be a member of The
9-12 Woodlands Community Association, Inc.;
9-13 (4) To be eligible for appointment under Subsection
9-14 (c)(4) of this section, a person must be a member of the Woodlands
9-15 Association, Inc.;
9-16 (5) To be eligible for appointment under Subsection
9-17 (c)(5) of this section, a person must be a member of The Woodlands
9-18 Commercial Owners Association; and
9-19 (6) To be eligible for appointment under Subsection
9-20 (c)(6) of this section, a person must be a person described in
9-21 subdivision (b)(1) of this Subsection and a resident of any county
9-22 commissioners precinct which includes all or any portion of the
9-23 boundaries of the district or the impact area.
9-24 (c) The board shall serve as provided in this Act and shall
9-25 be composed of five elected directors and six appointed directors.
10-1 The appointed directors shall include: [(1) On the effective date
10-2 of this Act, the following persons shall constitute the initial
10-3 board and shall serve as provided in this Act:]
10-4 [(A) Vicki D. Armstrong;]
10-5 [(B) Roger L. Galatas;]
10-6 [(C) R. A. Kutsche;]
10-7 [(D) Michael H. Richmond;]
10-8 [(E) Bruce M. Withers, Jr.;]
10-9 [(F)] (1) one individual appointed by the city
10-10 council of the City of Oak Ridge North;
10-11 [(G)] (2) one individual appointed by the city
10-12 council of the City of Shenandoah; [and]
10-13 [(H)] (3) one individual appointed by the
10-14 governing board of directors of The Woodlands Community
10-15 Association, Inc.;
10-16 (4) one individual appointed by the governing board of
10-17 directors of The Woodlands Association;
10-18 (5) one individual appointed by the governing board of
10-19 directors of The Woodlands Commercial Owners Association; and
10-20 (6) one individual appointed by the commissioners
10-21 court of the county in which the majority in acreage of the
10-22 district is located.
10-23 [(2) If one or more of the initial directors listed in
10-24 this subsection fails to qualify for office within 90 days after
10-25 the effective date of this Act, the remaining directors shall
11-1 appoint qualified persons to fill the vacancies for the unexpired
11-2 terms.]
11-3 (d) Directors shall serve until their successors have been
11-4 elected or appointed and have qualified.
11-5 (e) A vacancy in the office of director shall be filled by
11-6 appointment of a qualified individual by a majority vote on the
11-7 remaining directors, except that if the number of directors for any
11-8 reason is less than [five] six, on petition of a resident of or
11-9 owner of real property in the district, the commission shall
11-10 appoint the required number of qualified individuals to fill the
11-11 vacancies. The board may remove a director for misconduct or
11-12 failure to carry out the director's duties by unanimous vote of all
11-13 of the remaining directors.
11-14 (g) After directors have been appointed or elected and have
11-15 qualified by executing a bond and taking the proper oath, they
11-16 shall organize or reorganize by electing a [president] chairman, a
11-17 vice-[president]chairman, a secretary, and any other officers of
11-18 the board as in the judgment of the board are necessary.
11-19 SECTION 3. That subsections (e) and (i) of Section 11 of
11-20 Chapter 289, Acts of the 73rd Legislature, Regular Session, 1993,
11-21 as amended by Chapter 255, Acts of the 75th Texas Legislature,
11-22 Regular Session, 1997, are amended to read as follows:
11-23 Sec. 11. LIMITED SALES AND USE TAX.
11-24 (e) A tax imposed under this Act or the repeal or reduction
11-25 of a tax under this Act takes effect on [October 1] the first day
12-1 of the [after the expiration of the first complete] calendar
12-2 quarter occurring after the date on which the comptroller receives
12-3 the notice required by Subsection (b), Section 323.405, Tax Code,
12-4 or Subsection (i) of this section.
12-5 (i) Within 10 days after the annexation or exclusion of
12-6 territory by the district [or the annexation of all or part of the
12-7 territory of the district by a municipality requiring a reduction
12-8 of the district's sales and use tax, as provided in Subsection (h)
12-9 of this section], the board shall send to the comptroller by United
12-10 States certified or registered mail certified copies of all
12-11 resolutions[,] or orders[, or ordinances] pertaining to such
12-12 events.
12-13 SECTION 4. That Chapter 289, Acts of the 73rd Legislature,
12-14 Regular Session, 1993, as amended by Chapter 255, Acts of the 75th
12-15 Texas Legislature, Regular Session, 1997, is amended by the
12-16 addition of Section 11C to read as follows:
12-17 Sec. 11C. ECONOMIC DEVELOPMENT ZONES. (a) As used in this
12-18 section:
12-19 (1) "Economic development zone" or "zone" means an
12-20 economic development zone created by the district pursuant to this
12-21 section.
12-22 (2) "Governing body" means the board of directors of a
12-23 zone.
12-24 (3) "Initial development" means the first buildings,
12-25 structures, and improvements on a parcel or tract included within a
13-1 zone, excluding streets, utilities, and offsite facilities and
13-2 services.
13-3 (4) "Substantial redevelopment" shall not include
13-4 improvements, modifications, or rehabilitation of buildings,
13-5 improvements, and facilities which have been in existence less than
13-6 10 years, but may include expansions, enlargements, replacements,
13-7 and relocations of any buildings, improvements, and facilities
13-8 within a zone;
13-9 (b) The board, on its own motion, or upon receipt of a
13-10 petition signed by the owners of all real property within a defined
13-11 area of the district, may by resolution create, designate,
13-12 describe, assign a name to and appoint the governing body for an
13-13 economic development zone within the district to promote initial
13-14 development or substantial redevelopment of the area, if the board
13-15 finds that the creation of a zone will further the public purposes
13-16 of:
13-17 (1) development and diversification of the economy of
13-18 the district and the state;
13-19 (2) the elimination of unemployment or underemployment
13-20 in the district and the state;
13-21 (3) the development or expansion of transportation or
13-22 commerce in the district and the state; or
13-23 (4) promoting and stimulating business, commercial and
13-24 economic activity in the district and the state.
13-25 (c) Before designating an economic development zone, the
14-1 board must prepare a preliminary financing plan for such zone which
14-2 includes:
14-3 (1) estimated project costs, including administrative
14-4 expenses;
14-5 (2) a list of the kind, number and location of all
14-6 proposed improvement projects in the zone;
14-7 (3) the estimated amount of bonded indebtedness to be
14-8 incurred;
14-9 (4) a description of the methods of financing and
14-10 expected sources of revenue to pay for the costs of proposed
14-11 improvement projects; and
14-12 (5) the projected duration of the zone.
14-13 (d) Before designating an economic development zone on its
14-14 own motion or, if ad valorem taxes are to be used, in whole or in
14-15 part, in payment of improvement project costs within the economic
14-16 development zone to be designated in response to a landowner
14-17 petition, the board shall call and conduct a public hearing in the
14-18 same general procedural manner as provided by Section 311.003, Tax
14-19 Code, for reinvestment zones designated by a municipality.
14-20 (e) An economic development zone may not be created if more
14-21 than 10% of the property in the proposed zone, excluding property
14-22 that is publicly owned, is used or planned for use for residential
14-23 purposes. Property is used for residential purposes if it is
14-24 occupied by a house having fewer than five living units.
14-25 (f) A resolution designating an area as an economic
15-1 development zone must:
15-2 (1) describe the boundaries of the zone sufficiently
15-3 to identify with reasonable certainty the territory included;
15-4 (2) provide an effective date for the zone;
15-5 (3) provide a date for termination of the zone;
15-6 (4) assign a name to the zone for identification;
15-7 (5) adopt a preliminary financing plan for the zone;
15-8 (6) establish a tax increment fund for the zone; and
15-9 (7) appoint the governing body for the zone or
15-10 authorize the board to serve ex-officio as the governing body of
15-11 the zone.
15-12 (g) Members of the governing body shall be appointed for a
15-13 term of two years, except for the initial members of the governing
15-14 body, some of whose terms may be limited to one year in order to
15-15 achieve staggered terms of office. Any vacancy on the governing
15-16 body of the zone shall be filled by appointment for the unexpired
15-17 term by the district.
15-18 (h) A member of a governing body must be a member of the
15-19 board or must be at least 18 years of age, a citizen of the state,
15-20 and a person described in Subsection 2(b) of this Act. Each member
15-21 must qualify for office by subscribing to the constitutional oath
15-22 of office for public officers and furnishing a fidelity bond issued
15-23 by a responsible surety in the amount of $10,000 in favor of the
15-24 zone to secure faithful performance of the member's duties.
15-25 (i) Following appointment and qualification, the governing
16-1 body of the zone shall meet and organize by electing a president, a
16-2 vice president, a secretary/treasurer and such other officers as
16-3 the governing body of the zone may deem appropriate.
16-4 (j) The boundaries of an economic development zone may be
16-5 reduced or enlarged in the same general manner as provided herein
16-6 for creation of a zone.
16-7 (k) A zone created by the district pursuant to this section
16-8 shall constitute a body politic and corporate and a political
16-9 subdivision of the state, separate and apart from the district.
16-10 The district and the zone shall have the same power and authority
16-11 to carry out this section as are conferred upon a municipality with
16-12 respect to a reinvestment zone under Section 311.008, Tax Code. In
16-13 addition to the powers herein granted to the governing body, the
16-14 board may by order delegate, subject in whole or in part to final
16-15 approval by the board of the district, any powers and duties
16-16 relating to the financing and implementation of the project plan
16-17 for the zone, including, without limitation, the power and
16-18 authority to:
16-19 (1) issue tax increment bonds or notes for and in the
16-20 name of the zone in the same manner as provided for a municipality
16-21 in Section 311.010, Tax Code, except that tax increment bonds or
16-22 notes of the zone shall mature in not more than 30 years;
16-23 (2) pledge irrevocably all or part of the tax
16-24 increment fund for the zone, as provided for a municipality in
16-25 Section 311.015, Tax Code; and
17-1 (3) levy, assess and collect ad valorem taxes,
17-2 assessments and other charges within the zone, as provided for
17-3 municipal management districts in Chapter 375, Local Government
17-4 Code, as well as the incremental sales and use tax authorized by
17-5 this section, but only if such ad valorem tax or incremental sales
17-6 and use tax has been approved by the qualified voters of the
17-7 district.
17-8 (l) The board and the governing body each may enter into
17-9 such agreements as may be considered necessary or convenient to
17-10 implement a project plan and economic development zone financing
17-11 plan and achieve their purposes. An agreement may provide for the
17-12 regulation or restriction of the use of land by imposing
17-13 conditions, restrictions, or covenants that run with the land. An
17-14 agreement may dedicate revenue from the tax increment fund to pay
17-15 project costs and may provide that a restriction adopted by the
17-16 governing body continues in effect after the termination of the
17-17 zone. The district and the zone may enter into agreements whereby
17-18 the district will provide administration, management, investment,
17-19 accounting, and other services for the zone in consideration for
17-20 the benefits to inure to the district through implementation of the
17-21 project plan for the zone.
17-22 (m) Subject to approval by resolution of the board, the
17-23 governing body shall prepare and adopt, and may thereafter amend, a
17-24 project plan and an economic development zone financing plan for
17-25 the zone containing generally the information and estimates
18-1 described in Section 311.011, Tax Code, with respect to
18-2 reinvestment zones, together with an estimate of total and
18-3 incremental sales and use taxes to be derived from the zone. If a
18-4 plan amendment reduces or increases the geographic area of the
18-5 zone, increases the amount of bonded indebtedness to be incurred,
18-6 creates or changes a tax increment to be contributed by a taxing
18-7 unit, or increases the total estimated project costs, such
18-8 amendment may be adopted only after a public hearing meeting the
18-9 procedural requirements of this section has been held.
18-10 (n) If the financing plan adopted by the governing body of
18-11 the zone uses ad valorem taxes, in whole or in part, for payment of
18-12 project costs, then the provisions of Sections 311.012 and 311.013,
18-13 Tax Code, relative to a city or municipality, or its governing
18-14 body, shall apply to the zone and the governing body of the zone.
18-15 (o) If approved at an election by a majority of the
18-16 qualified voters voting in such election, the district may adopt or
18-17 repeal for the use and benefit of one or more economic development
18-18 zones previously or thereafter created by the district, an
18-19 incremental sales and use tax of not more than one percent (1%).
18-20 An election for the purpose of permitting voting for or against the
18-21 adoption or repeal of the maximum rate of incremental sales and use
18-22 tax specified by the board in the election proposition may be
18-23 called and held by the board in general conformity with the
18-24 procedural requirements of Section 11 of this Act for adoption of
18-25 the limited sales and use tax therein authorized. After adoption
19-1 at an election, and if and to the extent authorized by delegation
19-2 by the district to a zone, the governing body may levy, assess, and
19-3 collect all or any portion of such incremental sales and use tax,
19-4 in increments of not less than one-eighth percent, within and for
19-5 the benefit of the zone, by order of the governing body, and such
19-6 incremental sales and use tax shall be in addition to the limited
19-7 sales and use tax authorized and levied, assessed, and collected by
19-8 the district within and for the entire district pursuant to Section
19-9 11 of this Act. Such incremental sales and use tax shall become
19-10 effective on the first day of the calendar quarter following
19-11 written notice to the comptroller of the imposition of same and
19-12 shall be paid into the tax increment fund for such zone.
19-13 (p) Section 311.002 and Sections 311.014 through 311.017,
19-14 Tax Code, shall apply to the district, except that:
19-15 (1) references therein to a municipality shall mean
19-16 and refer to the district and the zone;
19-17 (2) references therein to an ordinance shall mean and
19-18 refer to an order;
19-19 (3) references therein to a reinvestment zone shall
19-20 mean and refer to an economic development zone;
19-21 (4) references therein to an agreement made under
19-22 Section 311.010(b) therein shall mean and refer to an agreement
19-23 made under subsection (k) of this section;
19-24 (5) development or redevelopment shall mean and
19-25 include initial development or substantial redevelopment; and
20-1 (6) Section 311.016, Tax Code, shall apply only if ad
20-2 valorem taxes are used, in whole or in part, in payment of project
20-3 costs of a zone."
20-4 SECTION 5. That Section 12A of Chapter 289, Acts of the 73rd
20-5 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
20-6 of the 75th Texas Legislature, Regular Session, 1997, is amended to
20-7 read as follows:
20-8 Sec. 12A. BONDS. (a) The board of the district may issue
20-9 bonds of the district in the manner provided by Subchapter J,
20-10 Chapter 375, Local Government Code. Sections 375.207 and 375.208,
20-11 Local Government Code, do not apply to bonds issued by the district
20-12 under this [section] Act.
20-13 (b) If the district issues bonds for the primary purpose of
20-14 providing water, sewage, or drainage facilities, the district must
20-15 obtain the commission's approval in the manner provided by Chapter
20-16 49, Water Code.
20-17 (c) In addition to the sources of money described by
20-18 Subchapter J, Chapter 375, Local Government Code, the bonds of the
20-19 district may be secured and made payable, wholly or partly, by a
20-20 pledge of any part of the net proceeds the district receives from:
20-21 (1) a specified portion, but not more than one-half
20-22 percent, of the sales and use tax authorized by Section 11 of this
20-23 Act; and
20-24 (2) the hotel occupancy tax authorized by Section 11A
20-25 of this Act[; and].
21-1 [(3) repayments the district receives from a
21-2 municipality because of a required reduction of the district's
21-3 sales and use tax.]
21-4 SECTION 6. That Section 13 of Chapter 289, Acts of the 73rd
21-5 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
21-6 of the 75th Texas Legislature, Regular Session, 1997, is amended to
21-7 read as follows:
21-8 Sec. 13. CONTRACTS WITH DISTRICT. The district is
21-9 authorized to contract with a city, county, other political
21-10 subdivision, corporation, or other persons to carry out the
21-11 purposes of this Act on such terms and conditions and for such
21-12 period of time as the board may determine. A state agency, city,
21-13 county, other political subdivision, corporation, individual, or
21-14 other entity may contract with the district to carry out the
21-15 purposes of this Act without any further authorization,
21-16 notwithstanding any other law or charter provision to the contrary.
21-17 In particular, the district and a municipality situated in whole or
21-18 in part within the boundaries or impact area of the district may
21-19 enter into and carry out interlocal agreements, with such terms and
21-20 conditions as the parties may deem advisable, for the
21-21 accomplishment of improvement projects or the provision of
21-22 facilities, services, or equipment by the district within or for
21-23 the benefit of the municipality, and notwithstanding any provision
21-24 of law to the contrary, payment for such improvement projects,
21-25 facilities, services, or equipment may be made or pledged by the
22-1 municipality to the district out of any funds collected by the
22-2 municipality pursuant to Chapter 351, Tax Code, or any other
22-3 lawfully available funds.
22-4 SECTION 7. REPEAL. Subsection (d) of Section 8 and
22-5 subsection (h) of Section 11 of Chapter 289, Acts of the 73rd
22-6 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
22-7 of the 75th Texas Legislature, Regular Session, 1997, are repealed.
22-8 SECTION 8. TERMS OF OFFICE. The additional directors
22-9 authorized by this Act shall be appointed and qualified as soon as
22-10 practicable after the effective date of this Act. One of the
22-11 additional directors shall serve for a term ending on the first
22-12 Saturday in May, 2000, and the remaining two additional directors
22-13 shall serve for a term ending on the first Saturday in May, 2002,
22-14 as determined by the board by lot or by mutual agreement. Nothing
22-15 in this Act shall be deemed or construed to affect the terms of
22-16 office of the existing directors.
22-17 SECTION 9. NOTICE AND CONSENT. The legislature finds that
22-18 the proper and legal notice of the intention to introduce this Act,
22-19 setting forth the general substance of this Act, has been published
22-20 as provided by law, and the notice and a copy of this Act have been
22-21 furnished to all persons, agencies, officials, or entities to which
22-22 they are required to be furnished by the constitution and laws of
22-23 this state, including the governor, who has submitted the notice
22-24 and Act to the Texas Natural Resource Conservation Commission. The
22-25 legislature further finds that, to the extent required, the Texas
23-1 Natural Resource Conservation Commission has filed its
23-2 recommendations relating to this Act with the governor, lieutenant
23-3 governor, and speaker of the house of representatives within the
23-4 required time. All requirements of the constitution and laws of
23-5 this state and the rules and procedures of the legislature with
23-6 respect to the notice, introduction, and passage of this Act have
23-7 been fulfilled and accomplished. This Act shall take effect and be
23-8 in force from and after its passage, notwithstanding the general
23-9 law relating to consent by political subdivisions to the creation
23-10 of conservation and reclamation districts and to the inclusion of
23-11 land in such districts.
23-12 SECTION 10. SEVERABILITY. The provisions of this Act are
23-13 severable. If any word, phrase, clause, sentence, section,
23-14 provision, or part of this Act is held invalid or unconstitutional,
23-15 it shall not affect the validity of the remaining portions, and it
23-16 is declared to be the legislative intent that this Act would have
23-17 been passed as to the remaining portions regardless of the
23-18 invalidity of any part.
23-19 SECTION 11. EMERGENCY. The importance of this legislation
23-20 and the crowded condition of the calendars in both houses create an
23-21 emergency and an imperative public necessity that the
23-22 constitutional rule requiring bills to be read on three several
23-23 days in each house be suspended, and this rule is hereby suspended,
23-24 and that this Act take effect and be in force from and after its
23-25 passage, and it is so enacted.