AN ACT
1-1 relating to the administration, powers, including taxing powers,
1-2 operations, and financing of the Town Center Improvement District
1-3 of Montgomery County, Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 2, Chapter 289, Acts of the 73rd
1-6 Legislature, Regular Session, 1993, is amended to read as follows:
1-7 Sec. 2. DEFINITIONS. In this Act:
1-8 (1) "Board" means the board of directors of the
1-9 district.
1-10 (2) "Commission" means the Texas Natural Resource
1-11 Conservation Commission.
1-12 (3) "District" means the Town Center Improvement
1-13 District of Montgomery County, Texas.
1-14 (4) "Impact area" includes the territory inside the
1-15 corporate limits of the City of Shenandoah and the City of Oak
1-16 Ridge North, any other territory the board by resolution designates
1-17 as part of the impact area, and the unincorporated area that is
1-18 located:
1-19 (A) two miles or less from any point on the
1-20 district boundaries or one mile or less from the center line of
1-21 State Highway 242; and
1-22 (B) in the area subject to the authority of a
1-23 nonprofit property owners' association that is authorized to impose
1-24 assessments on the taxable value of property that:
2-1 (i) is on a tax or assessment roll of a
2-2 local government; and
2-3 (ii) has had an aggregate assessed value,
2-4 before exemptions and abatements are accounted for, of more than
2-5 $100 million for at least two consecutive tax years.
2-6 (5) "Improvement project" means any program or
2-7 project, whether individual, intermittent, or continuing and
2-8 whether located or conducted within or without the district, for
2-9 the planning, design, construction, acquisition, lease, rental,
2-10 installment purchase, improvement, provision of furnishings,
2-11 equipment, rehabilitation, repair, reconstruction, relocation, use,
2-12 management, operation, or maintenance of any works, improvements,
2-13 or facilities or the provision, support, enhancement, improvement,
2-14 extension, or expansion of services, whether provided to, for, by,
2-15 or on behalf of the district, necessary for the accomplishment of
2-16 the public purposes of the district, including:
2-17 (A) landscaping; lighting, banners, and signs;
2-18 streets or sidewalks; hike and bike paths and trails, pedestrian
2-19 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
2-20 transit corridor beautification and improvements; drainage or storm
2-21 water detention improvements; solid waste, water, sewer, or power
2-22 facilities and services, including but not limited to electrical,
2-23 gas, steam, and chilled water facilities; parks, lakes, gardens,
2-24 recreational facilities, open space, scenic areas, and related
2-25 exhibits and preserves; fountains, plazas, and pedestrian malls;
2-26 public art and sculpture and related exhibits and facilities;
3-1 educational and cultural exhibits and facilities; conferences,
3-2 conventions, or exhibitions; manufacturer, consumer, or trade
3-3 shows; civic, community, or institutional events; exhibits,
3-4 displays, attractions, and facilities for special events, holidays,
3-5 and seasonal or cultural celebrations; off-street parking
3-6 facilities, bus terminals, heliports, mass-transit, and
3-7 roadway-borne or water-borne transportation and people-mover
3-8 systems; and any other public improvements, facilities, or services
3-9 similar to the foregoing;
3-10 (B) the removal, razing, demolition, or clearing
3-11 of land or improvements in connection with any improvement project;
3-12 (C) the acquisition of real or personal property
3-13 or any interest therein in connection with an authorized
3-14 improvement project provided that the district shall not have the
3-15 power of eminent domain; and
3-16 (D) any special or supplemental services for the
3-17 improvement and promotion of the district or adjacent areas or for
3-18 the protection of public health and safety within or adjacent to
3-19 the district, including but not limited to advertising, promotion,
3-20 tourism, health and sanitation, public safety, security, fire
3-21 protection and emergency medical services, business recruitment,
3-22 development, elimination of traffic congestion, and recreational,
3-23 educational, and cultural improvements, enhancements, and services.
3-24 SECTION 2. Section 7, Chapter 289, Acts of the 73rd
3-25 Legislature, Regular Session, 1993, is amended to read as follows:
3-26 Sec. 7. ADDITIONAL SPECIFIC POWERS AND DUTIES. (a) In
4-1 addition to the general powers set forth in Section 6 of this Act,
4-2 the board has the powers provided by this section.
4-3 (b) The board may[, subject to the provisions and
4-4 limitations hereinafter set forth:]
4-5 [(1)] levy, assess, and apply the proceeds from the
4-6 [a] limited sales and use taxes authorized by Section 11 of this
4-7 Act [tax] for authorized [the district's] purposes, provided that,
4-8 during each interval of three calendar years following the
4-9 commencement of collection of such tax, the board shall, consistent
4-10 with constitutional limitations and the district's authorized
4-11 powers and purposes, and in its sound discretion, endeavor to apply
4-12 an annual average of not less than 10 percent of the net proceeds
4-13 of the taxes collected under Section 11 of this Act [such tax
4-14 collections], after deduction of the general and administrative
4-15 costs and expenses of the district and the costs and expenses of
4-16 levying, assessing, and collecting such taxes, toward mitigation of
4-17 the net negative impact of development within the district on the
4-18 impact area [adjacent areas], including without limitation effects
4-19 on public utilities and services, public transportation and traffic
4-20 movement, and scenic and aesthetic beauty. Direct expenditures
4-21 made for the district or the impact area are allocable to each area
4-22 for which the expenditure was made. Expenditures for the general
4-23 welfare, promotion, or benefit of the district and impact area are
4-24 allocable between the district and the impact area in the amount,
4-25 as determined by the board, that is proportionate to the benefit
4-26 conferred on each area.
5-1 (c) The board may[; (2)] borrow money for the corporate
5-2 purposes of the district.
5-3 (d) The board may[; (3)] add or exclude territory in the
5-4 manner provided by Subchapter J, Chapter 49, and Section 54.016,
5-5 Water Code, except that for purposes of this subsection, a
5-6 reference in that section to a tax means an ad valorem tax only and
5-7 Section 42.042, Local Government Code, and Section 54.016, Water
5-8 Code, apply only with respect to the consent of a municipality with
5-9 a population of 25,000 or less and do [shall] not apply to the
5-10 annexation of land restricted primarily to commercial or business
5-11 use.
5-12 (e) The board may[; (4)] contract with any person or entity
5-13 for the accomplishment of any of the district's purposes, including
5-14 without limitation contracting for:
5-15 (1) [(A)] the payment, repayment, or reimbursement,
5-16 out of tax proceeds or any other specified source of funds, of any
5-17 costs and reasonable carrying costs incurred by that person for or
5-18 on behalf of the district, including all or part of the costs of
5-19 any improvement project; or
5-20 (2) [(B)] the use, occupancy, lease, rental,
5-21 operation, maintenance, or management of all or part of a proposed
5-22 or existing improvement project.
5-23 (f) The board may[; (5)] make application for and contract
5-24 with any person or entity to receive, administer, and perform the
5-25 district's duties and obligations under any federal, state, local,
5-26 or private gift, grant, loan, conveyance, transfer, bequest,
6-1 donation, or other financial assistance arrangement relating to the
6-2 investigation, planning, analysis, study, design, acquisition,
6-3 construction, improvement, completion, implementation, or operation
6-4 by the district or others of a proposed or existing improvement
6-5 project.
6-6 (g) The board may[; (6)] make, adopt, revise, repeal, amend,
6-7 promulgate, and enforce by ordinary civil remedies reasonable rules
6-8 and regulations for the administration and operation of the
6-9 district, the use, enjoyment, availability, protection, security,
6-10 and maintenance of the district's properties and facilities, and
6-11 providing for public safety and security within the district.
6-12 (h) The board may[; (7)] establish, revise, repeal, enforce,
6-13 collect, and apply the proceeds from user fees, concessions,
6-14 admissions, rentals, or other similar fees or charges for the
6-15 enjoyment, sale, rental, or other use of the district's facilities,
6-16 services, properties, or improvement projects; however, because the
6-17 district is created in an area that is devoted primarily to
6-18 commercial and business activity, the district may not impose an
6-19 impact fee or assessment on a single family residential property or
6-20 a residential duplex, triplex, quadruplex, or condominium.
6-21 (i) The board may[; (8)] provide or secure the payment or
6-22 repayment of the costs and expenses of the establishment,
6-23 administration, and operation of the district and the district's
6-24 costs or share of the costs of any improvement project, or district
6-25 contractual obligation or indebtedness, by or through a lease,
6-26 installment purchase contract, or other agreement with any person
7-1 or the levy and assessment of taxes, user fees, concessions,
7-2 rentals, or other revenues or resources of the district.
7-3 (j) The board may[; (9)] undertake separately or jointly
7-4 with other persons or entities and pay all or part of the cost of
7-5 improvement projects, including improvement projects for improving,
7-6 enhancing, and supporting public safety and security, fire
7-7 protection and emergency medical services, and law enforcement
7-8 within and adjacent to the district and improvement projects that
7-9 confer a general benefit on the entire district and the areas
7-10 adjacent thereto or a special benefit on a definable part of the
7-11 district, which may be the entire district or any part thereof.
7-12 (k) The[; however, the] district may not [shall not be
7-13 authorized to] employ peace officers, but may contract for off-duty
7-14 peace officers to provide public safety and security services in
7-15 connection with a special event, holiday, period with high traffic
7-16 congestion, or similar circumstance.
7-17 (l) The board may[; and (10)] impose, collect, and apply the
7-18 proceeds from a hotel occupancy tax as provided by Sections 11A and
7-19 11B of this Act.
7-20 (m) The board may exercise the economic development powers
7-21 and authority that Chapter 380, Local Government Code, and Article
7-22 835s, Revised Statutes, provide a municipality with a population of
7-23 more than 100,000.
7-24 (n) The board by rule may regulate the private use of public
7-25 roadways, open spaces, parks, sidewalks, and similar public areas.
7-26 To the extent the rules of the district conflict with a rule,
8-1 order, ordinance, or regulation of a county or municipality with
8-2 jurisdiction in the district's territory, the rule, order,
8-3 ordinance, or regulation of the county or municipality controls.
8-4 The rules may provide for the safe and orderly use of public
8-5 roadways, open spaces, parks, sidewalks, and similar public areas
8-6 or facilities.
8-7 (o) The board may require a permit for a parade,
8-8 demonstration, celebration, entertainment event, or similar
8-9 nongovernmental activity in or on the public roadways, open spaces,
8-10 parks, sidewalks, and similar public areas or facilities. The
8-11 board may charge a fee for the permit application and for public
8-12 safety or security services in an amount the board considers
8-13 necessary.
8-14 (p) The board may require a permit or franchise agreement
8-15 with a vendor, concessionaire, exhibitor, or similar private or
8-16 commercial person or organization for the limited use of the area
8-17 or facilities on terms and conditions and on payment of a permit or
8-18 franchise fee the board may impose.
8-19 (q) The board may employ and establish the terms of
8-20 employment and compensation of a president, vice president,
8-21 executive director, general manager, and any other operating
8-22 officer of the district the board considers necessary.
8-23 SECTION 3. Subsections (a), (b), (c), (d), (e), and (g),
8-24 Section 8, Chapter 289, Acts of the 73rd Legislature, Regular
8-25 Session, 1993, are amended to read as follows:
8-26 (a) The district is governed by a board composed of 11
9-1 directors elected or appointed as provided by Subsection (c) of
9-2 this section. Directors [of eight directors who shall] serve [for]
9-3 staggered terms of four years.
9-4 (b)(1) Except as otherwise provided by [Subdivisions (2) and
9-5 (3) of] this subsection, to be qualified to serve as a director, a
9-6 person must be at least 18 years old and be:
9-7 (A) a resident of the district;
9-8 (B) an individual owner of real property in the
9-9 district;
9-10 (C) an individual owner, whether beneficial or
9-11 otherwise, of at least 10 percent of the outstanding stock of a
9-12 corporate owner of real property in the district or of a corporate
9-13 lessee of real property in the district with an original lease term
9-14 of five years or more, excluding options;
9-15 (D) an individual owner of at least 10 percent
9-16 of the beneficial interest in a trust that:
9-17 (i) owns real property in the district; or
9-18 (ii) leases real property in the district
9-19 under an original lease term of five years or more, excluding
9-20 options;
9-21 (E) an individual lessee of real property in the
9-22 district under an original lease term of five years or more,
9-23 excluding options;
9-24 (F) an individual owner of at least 10 percent
9-25 of the outstanding interest in a general or limited partnership
9-26 that:
10-1 (i) owns real property in the district; or
10-2 (ii) leases real property in the district
10-3 under an original lease term of five years or more, excluding
10-4 options; or
10-5 (G) an individual agent, employee, officer, or
10-6 director of any individual, corporation, trust, or partnership that
10-7 owns or leases real property described by Paragraph (B), (C), (D),
10-8 (E), or (F) of this subdivision who is designated by such owner or
10-9 lessee to serve in that capacity.
10-10 (2) To be eligible for appointment under Subsection
10-11 (c)(1) [(c)(1)(F)] or (2) [(G)] of this section, a person must be a
10-12 resident of the city making the appointment.
10-13 (3) To be eligible for appointment under Subsection
10-14 (c)(3) of this section, a person must be a resident described by
10-15 Subdivision (1) of this subsection and a resident of any county
10-16 commissioners precinct that includes all or any portion of the
10-17 boundaries of the district or impact area.
10-18 (4) To be eligible for appointment under Subsection
10-19 (c)(4) [(c)(1)(H)] of this section, a person must be a member of
10-20 The Woodlands Community Association, Inc.
10-21 (5) To be eligible for appointment under Subsection
10-22 (c)(5) of this section, a person must be a member of The Woodlands
10-23 Association, Inc.
10-24 (6) To be eligible for appointment under Subsection
10-25 (c)(6) of this section, a person must be a member of The Woodlands
10-26 Commercial Owners Association.
11-1 (7) Notwithstanding any other provision of this
11-2 subsection, not more than three members of the board at any time
11-3 may be agents, employees, officers, or directors of a single
11-4 individual, corporation, trust, or partnership that owns or leases
11-5 real property described by Subdivision (1)(B), (C), (D), (E), or
11-6 (F) of this subsection, regardless of whether the member is elected
11-7 or appointed under this section. Any person filing a ballot or
11-8 write-in candidate's application or any person who is to be
11-9 appointed to the board, whose election or appointment, at the time
11-10 of filing or appointment, would cause the limitation of this
11-11 subdivision to be violated, is ineligible for election or
11-12 appointment.
11-13 (c) The board of directors is composed of:
11-14 (1) [(c)(1) On the effective date of this Act, the
11-15 following persons shall constitute the initial board and shall
11-16 serve as provided in this Act:]
11-17 [(A) Vicki D. Armstrong;]
11-18 [(B) Roger L. Galatas;]
11-19 [(C) R. A. Kutsche;]
11-20 [(D) Michael H. Richmond;]
11-21 [(E) Bruce M. Withers, Jr.;]
11-22 [(F)] one individual appointed by the city
11-23 council of the City of Oak Ridge North;
11-24 (2) [(G)] one individual appointed by the city council
11-25 of the City of Shenandoah;
11-26 (3) one individual appointed by the commissioners
12-1 court of the county in which the majority of the district's
12-2 territory is located;
12-3 (4) [and (H)] one individual appointed by the board of
12-4 directors of The Woodlands Community Association, Inc.;
12-5 (5) one individual appointed by the board of directors
12-6 of The Woodlands Association, Inc.;
12-7 (6) one individual appointed by the board of directors
12-8 of The Woodlands Commercial Owners Association; and
12-9 (7) five individuals elected by the voters of the
12-10 district at large.
12-11 [(2) If one or more of the initial directors listed in
12-12 this subsection fails to qualify for office within 90 days after
12-13 the effective date of this Act, the remaining directors shall
12-14 appoint qualified persons to fill the vacancies for the unexpired
12-15 terms.]
12-16 (d) Directors [Of the initial directors, four shall] serve
12-17 until [the first Saturday in May, 1994, or until] their successors
12-18 have been elected or appointed and have qualified[, and four shall
12-19 serve until the first Saturday in May, 1996, or until their
12-20 successors have been elected or appointed and have qualified. The
12-21 board shall determine the terms of the initial directors by mutual
12-22 agreement or by lot].
12-23 (e) A vacancy in the office of director shall be filled by
12-24 appointment of a qualified individual by a majority vote of the
12-25 remaining directors, except that if the number of directors for any
12-26 reason is less than six [five], on petition of a resident of or
13-1 owner of real property in the district, the commission shall
13-2 appoint the required number of qualified individuals to fill the
13-3 vacancies. The board may remove a director for misconduct or
13-4 failure to carry out the director's duties by unanimous vote of all
13-5 of the remaining directors.
13-6 (g) After directors have been appointed or elected and have
13-7 qualified by executing a bond and taking the proper oath, they
13-8 shall organize or reorganize by electing a chairman [president], a
13-9 vice chairman [vice-president], a secretary, and any other officers
13-10 of the board as [in the judgment of] the board considers [are]
13-11 necessary.
13-12 SECTION 4. Subsections (e) and (i), Section 11, Chapter 289,
13-13 Acts of the 73rd Legislature, Regular Session, 1993, are amended to
13-14 read as follows:
13-15 (e) A tax imposed under this Act or the repeal or reduction
13-16 of a tax under this Act takes effect on the first day of the
13-17 [October 1 after the expiration of the first complete] calendar
13-18 quarter occurring after the date on which the comptroller receives
13-19 the notice required by Subsection (b), Section 323.405, Tax Code,
13-20 or Subsection (i) of this section.
13-21 (i) Within 10 days after the annexation or exclusion of
13-22 territory by the district [or the annexation of all or part of the
13-23 territory of the district by a municipality requiring a reduction
13-24 of the district's sales and use tax, as provided in Subsection (h)
13-25 of this section], the board shall send to the comptroller by United
13-26 States certified or registered mail certified copies of all
14-1 resolutions or[,] orders[, or ordinances] pertaining to such
14-2 events.
14-3 SECTION 5. Chapter 289, Acts of the 73rd Legislature,
14-4 Regular Session, 1993, is amended by adding Section 11C to read as
14-5 follows:
14-6 Sec. 11C. ECONOMIC DEVELOPMENT ZONES. (a) As used in this
14-7 section:
14-8 (1) "Development zone" means an economic development
14-9 zone created by the district under this section.
14-10 (2) "Governing body" means the board of directors of a
14-11 development zone.
14-12 (3) "Initial development" means the first buildings,
14-13 structures, and improvements on a parcel or tract included in a
14-14 development zone. The term does not include a street, utility, or
14-15 off-site facility or service.
14-16 (4) "Substantial redevelopment" includes an expansion,
14-17 enlargement, replacement, and relocation of a building,
14-18 improvement, and facility located in a development zone. The term
14-19 does not include an improvement, modification, or rehabilitation of
14-20 a building, improvement, or facility that has been in existence for
14-21 less than 10 years.
14-22 (b) The board, on its own motion or on receipt of a petition
14-23 signed by the owners of all real property in a defined area of the
14-24 district, by resolution may create, designate, describe, assign a
14-25 name to, and appoint the governing body for a development zone in
14-26 the district to promote initial development or substantial
15-1 redevelopment of the area, if the board finds that the creation of
15-2 the zone will further the public purposes of:
15-3 (1) the development and diversification of the economy
15-4 of the district and the state;
15-5 (2) the elimination of unemployment or underemployment
15-6 in the district and the state;
15-7 (3) the development or expansion of transportation or
15-8 commerce in the district and the state; or
15-9 (4) the promotion and stimulation of business,
15-10 commercial, and economic activity in the district and the state.
15-11 (c) Before designating a development zone, the board must
15-12 prepare a preliminary financing plan for the zone that includes:
15-13 (1) estimated project costs, including administrative
15-14 expenses;
15-15 (2) a list of the kind, number, and location of all
15-16 proposed improvement projects in the zone;
15-17 (3) the estimated amount of bonded indebtedness to be
15-18 incurred;
15-19 (4) a description of the methods of financing and
15-20 expected sources of revenue to pay for the costs of proposed
15-21 improvement projects; and
15-22 (5) the projected duration of the zone.
15-23 (d) Before designating a development zone on its own motion
15-24 or, if ad valorem taxes are to be used, in whole or in part, for
15-25 the payment of improvement project costs in a development zone to
15-26 be designated in response to a landowner petition, the board shall
16-1 call and hold a public hearing on the creation of the zone in the
16-2 manner provided by Section 311.003, Tax Code, for reinvestment
16-3 zones designated by a municipality.
16-4 (e) A development zone may not be created if more than 10
16-5 percent of the property in the proposed zone, other than property
16-6 that is publicly owned, is used or planned for use for residential
16-7 purposes. For purposes of this subsection, property is used for
16-8 residential purposes if the property is occupied by a house that
16-9 has fewer than five living units.
16-10 (f) A resolution designating an area as a development zone
16-11 must:
16-12 (1) describe the boundaries of the zone sufficiently
16-13 to identify with reasonable certainty the territory included;
16-14 (2) provide an effective date for the creation of the
16-15 zone;
16-16 (3) provide a date for termination of the zone;
16-17 (4) assign a name to the zone for identification;
16-18 (5) adopt a preliminary financing plan for the zone;
16-19 (6) establish a tax increment fund for the zone; and
16-20 (7) appoint the governing body for the zone or
16-21 authorize the board to serve ex officio as the governing body of
16-22 the zone.
16-23 (g) Members of the governing body shall be appointed for a
16-24 term of two years, except that the appointment of the initial
16-25 members of the governing body may provide for some terms to be
16-26 limited to one year in order to achieve staggered terms of office.
17-1 The district by appointment shall fill a vacancy on the governing
17-2 body of the zone for the unexpired portion of the term.
17-3 (h) A member of a governing body must be at least 18 years
17-4 of age, a citizen of the state, and a person described in
17-5 Subsection (b) of Section 8 of this Act. A member of the board of
17-6 directors of the district may be appointed to the governing body.
17-7 Each member must qualify for office by subscribing to the
17-8 constitutional oath of office for public officers and furnishing a
17-9 fidelity bond issued by a responsible surety in the amount of
17-10 $10,000 in favor of the development zone to secure faithful
17-11 performance of the member's duties.
17-12 (i) Following appointment and qualification, the governing
17-13 body of the development zone shall meet and organize by electing a
17-14 president, a vice president, a secretary-treasurer, and other
17-15 officers the governing body considers appropriate.
17-16 (j) The boundaries of a development zone may be reduced or
17-17 enlarged in the manner provided by this section for creation of a
17-18 zone.
17-19 (k) A development zone created by the district under this
17-20 section is a body politic and corporate and a political subdivision
17-21 of the state, separate from the district. The district and the
17-22 development zone have the same power and authority to carry out
17-23 this section as Section 311.008, Tax Code, provides a municipality
17-24 to carry out Chapter 311, Tax Code. In addition to the powers
17-25 granted to the governing body by this section, the board by order
17-26 may delegate, subject in whole or in part to final approval by the
18-1 board, any powers and duties relating to the financing and
18-2 implementation of the project plan for the zone, including the
18-3 power and authority to:
18-4 (1) issue tax increment bonds or notes for and in the
18-5 name of the zone in the same manner as Section 311.010, Tax Code,
18-6 provides for a municipality, except that tax increment bonds or
18-7 notes of the zone must mature in not more than 30 years;
18-8 (2) pledge irrevocably all or part of the tax
18-9 increment fund for the zone, as Section 311.015, Tax Code, provides
18-10 for a municipality; and
18-11 (3) impose, assess, and collect ad valorem taxes,
18-12 assessments, and other charges in the zone, as Chapter 375, Local
18-13 Government Code, provides for municipal management districts, as
18-14 well as the incremental sales and use tax authorized by this
18-15 section, if the ad valorem tax or incremental sales and use tax has
18-16 been approved by the qualified voters of the district at an
18-17 election called and held for that purpose.
18-18 (l) The board and the governing body each may enter into an
18-19 agreement considered necessary or convenient to implement a project
18-20 plan and development zone financing plan and achieve their
18-21 purposes. An agreement may provide for the regulation or
18-22 restriction of the use of land by imposing conditions,
18-23 restrictions, or covenants that run with the land. An agreement
18-24 may dedicate revenue from the tax increment fund to pay project
18-25 costs and may provide that a restriction adopted by the governing
18-26 body continues in effect after the termination of the development
19-1 zone. The district and the development zone may agree that the
19-2 district will provide administration, management, investment,
19-3 accounting, and other services for the zone in consideration for
19-4 the benefits received by the district through the implementation of
19-5 the project plan for the zone.
19-6 (m) Subject to approval by resolution of the board, the
19-7 governing body shall prepare and adopt, and may amend, a project
19-8 plan and a development zone financing plan for the development zone
19-9 containing generally the information and estimates described by
19-10 Section 311.011, Tax Code, with respect to reinvestment zones,
19-11 together with an estimate of total and incremental sales and use
19-12 taxes to be derived from the zone. If a plan amendment reduces or
19-13 increases the geographic area of the zone, increases the amount of
19-14 bonded indebtedness to be incurred, creates or changes a tax
19-15 increment to be contributed by a taxing unit, or increases the
19-16 total estimated project costs, the amendment may be adopted only
19-17 after a public hearing meeting the procedural requirements of this
19-18 section for a meeting on the creation of a development zone has
19-19 been held.
19-20 (n) If the financing plan adopted by the governing body of
19-21 the development zone uses ad valorem taxes, in whole or in part,
19-22 for payment of project costs, the provisions of Sections 311.012
19-23 and 311.013, Tax Code, shall apply to the development zone as if
19-24 the zone were a taxing unit under those sections and to the
19-25 governing body of the zone as if the governing body were the
19-26 governing body of a taxing unit under those sections.
20-1 (o) If approved at an election by a majority of the
20-2 qualified voters voting in an election called and held for that
20-3 purpose, the district may adopt or repeal for the use and benefit
20-4 of one or more development zones created by the district before or
20-5 after the election an incremental sales and use tax of not more
20-6 than one percent. An election on the adoption or repeal of the
20-7 maximum rate of incremental sales and use tax may be called and
20-8 held by the board as provided by Section 11 of this Act for an
20-9 election on the adoption of the limited sales and use tax
20-10 authorized by Section 11 of this Act. After adoption at an
20-11 election, to the extent the district has delegated the authority to
20-12 the zone, the governing body may impose, assess, and collect all or
20-13 any portion of the incremental sales and use tax, in increments of
20-14 not less than one-eighth of one percent, for the benefit of the
20-15 zone, by order of the governing body. The incremental sales and
20-16 use tax is in addition to the limited sales and use tax authorized
20-17 and imposed, assessed, and collected by the district under Section
20-18 11 of this Act. The incremental sales and use tax becomes
20-19 effective on the first day of the calendar quarter following the
20-20 date the comptroller receives written notice of the imposition of
20-21 the tax and shall be paid into the tax increment fund for the
20-22 development zone.
20-23 (p) Sections 311.002 and 311.014 through 311.017, Tax Code,
20-24 apply to the district, except that for purposes of this subsection:
20-25 (1) a reference in those sections to a municipality
20-26 means the district and the development zone;
21-1 (2) a reference in those sections to an ordinance
21-2 means an order;
21-3 (3) a reference in those sections to a reinvestment
21-4 zone means a development zone;
21-5 (4) a reference in those sections to an agreement made
21-6 under Subsection (b), Section 311.010, Tax Code, means an agreement
21-7 made under Subsection (l) of this section;
21-8 (5) "development" means initial development;
21-9 (6) "redevelopment" means substantial redevelopment;
21-10 and
21-11 (7) Section 311.016, Tax Code, applies only if ad
21-12 valorem taxes are used, in whole or in part, in payment of project
21-13 costs of a development zone.
21-14 SECTION 6. Subsections (a) and (c), Section 12A, Chapter
21-15 289, Acts of the 73rd Legislature, Regular Session, 1993, are
21-16 amended to read as follows:
21-17 (a) The board may issue bonds of the district in the manner
21-18 provided by Subchapter J, Chapter 375, Local Government Code.
21-19 Sections 375.207 and 375.208, Local Government Code, do not apply
21-20 to bonds issued by the district under this Act [section].
21-21 (c) In addition to the sources of money described by
21-22 Subchapter J, Chapter 375, Local Government Code, the bonds of the
21-23 district may be secured and made payable, wholly or partly, by a
21-24 pledge of any part of the net proceeds the district receives from:
21-25 (1) a specified portion, but not more than one-half of
21-26 one percent, of the sales and use tax authorized by Section 11 of
22-1 this Act; and
22-2 (2) the hotel occupancy tax authorized by Section 11A
22-3 of this Act[; and]
22-4 [(3) repayments the district receives from a
22-5 municipality because of a required reduction of the district's
22-6 sales and use tax].
22-7 SECTION 7. Section 13, Chapter 289, Acts of the 73rd
22-8 Legislature, Regular Session, 1993, is amended to read as follows:
22-9 Sec. 13. CONTRACTS WITH DISTRICT. (a) The district is
22-10 authorized to contract with a city, county, other political
22-11 subdivision, corporation, or other persons to carry out the
22-12 purposes of this Act on such terms and conditions and for such
22-13 period of time as the board may determine. A state agency, city,
22-14 county, other political subdivision, corporation, individual, or
22-15 other entity may contract with the district to carry out the
22-16 purposes of this Act without any further authorization,
22-17 notwithstanding any other law or charter provision to the contrary.
22-18 (b) The district and a municipality any part of which is
22-19 located in the boundaries of the district or impact area may enter
22-20 into and carry out an interlocal agreement for the accomplishment
22-21 of an improvement project or the provision of a facility, a
22-22 service, or equipment by the district in or for the benefit of the
22-23 municipality. Notwithstanding any other law, payment for the
22-24 improvement project, facility, service, or equipment may be made or
22-25 pledged by the municipality to the district out of any money the
22-26 municipality collects under Chapter 351, Tax Code, or out of any
23-1 other available money.
23-2 SECTION 8. Subsection (h), Section 11, Chapter 289, Acts of
23-3 the 73rd Legislature, Regular Session, 1993, is repealed.
23-4 SECTION 9. The additional directors of the Town Center
23-5 Improvement District of Montgomery County, Texas, provided by
23-6 Section 8, Chapter 289, Acts of the 73rd Legislature, Regular
23-7 Session, 1993, as amended by this Act, shall be appointed as
23-8 provided by that section as soon as practicable after the effective
23-9 date of this Act. One of the additional directors shall serve for
23-10 a term ending on the first Saturday in May, 2000, and the other two
23-11 additional directors shall serve for a term ending on the first
23-12 Saturday in May, 2002, as determined by the board of directors of
23-13 the Town Center Improvement District of Montgomery County, Texas,
23-14 by lot or by mutual agreement. Nothing in this Act affects the
23-15 terms of office of the existing directors.
23-16 SECTION 10. (a) The proper and legal notice of the
23-17 intention to introduce this Act, setting forth the general
23-18 substance of this Act, has been published as provided by law, and
23-19 the notice and a copy of this Act have been furnished to all
23-20 persons, agencies, officials, or entities to which they are
23-21 required to be furnished by the constitution and other laws of this
23-22 state, including the governor, who has submitted the notice and Act
23-23 to the Texas Natural Resource Conservation Commission.
23-24 (b) The Texas Natural Resource Conservation Commission has
23-25 filed its recommendations relating to this Act with the governor,
23-26 lieutenant governor, and speaker of the house of representatives
24-1 within the required time.
24-2 (c) All requirements of the constitution and laws of this
24-3 state and the rules and procedures of the legislature with respect
24-4 to the notice, introduction, and passage of this Act are fulfilled
24-5 and accomplished.
24-6 SECTION 11. The importance of this legislation and the
24-7 crowded condition of the calendars in both houses create an
24-8 emergency and an imperative public necessity that the
24-9 constitutional rule requiring bills to be read on three several
24-10 days in each house be suspended, and this rule is hereby suspended,
24-11 and that this Act take effect and be in force from and after its
24-12 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1807 passed the Senate on
April 29, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1807 passed the House on
May 25, 1999, by the following vote: Yeas 145, Nays 0, two present
not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor