By: Bernsen S.B. No. 1807
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administration, powers, including taxing powers,
1-2 operations and financing of Town Center Improvement District of
1-3 Montgomery County, Texas.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. That Section 7 of Chapter 289, Acts of the 73rd
1-6 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
1-7 of the 75th Texas Legislature, Regular Session, 1997, is amended to
1-8 read as follows:
1-9 "SECTION 7. ADDITIONAL SPECIFIC POWERS AND DUTIES. In
1-10 addition to the general powers set forth in Section 6 of this Act,
1-11 the board may, subject to the provisions and limitations
1-12 hereinafter set forth:
1-13 "(1) levy, assess, and apply the proceeds from [a] the
1-14 limited sales and use taxes authorized in Sections 11 and 11C of
1-15 this Act for [the district's] authorized purposes, provided that,
1-16 during each interval of three calendar years following the
1-17 commencement of collection of such tax, the board shall, consistent
1-18 with constitutional limitations and the district's authorized
1-19 powers and purposes, and in its sound discretion, endeavor to apply
1-20 an annual average of not less than 10 percent of the net proceeds
1-21 of [such] all tax collections from the tax imposed pursuant to
1-22 Section 11 of this Act, after deduction of the general and
2-1 administrative costs and expenses of the district and the costs and
2-2 expenses of levying, assessing, and collecting such taxes, toward
2-3 mitigation of the net negative impact of development within the
2-4 district on [adjacent] the impact area[s], including without
2-5 limitation effects on public utilities and services, public
2-6 transportation and traffic movement, and scenic and aesthetic
2-7 beauty[;]. As used in this subdivision, "impact area" means and
2-8 includes:
2-9 (i) the corporate limits of the City of
2-10 Shenandoah, Texas, and the City of Oak Ridge North, Texas, as same
2-11 may exist from time to time;
2-12 (ii) the unincorporated area, whether or
2-13 not contiguous to the boundaries of the district or the impact
2-14 area, which is located within the assessment authority of any
2-15 non-profit property owners corporation or association imposing or
2-16 authorized to impose assessments on property on the basis of the
2-17 taxable value of such property on any local governmental tax or
2-18 assessment roll, and which has had for at least two consecutive tax
2-19 years a total assessed value, before exemptions and tax abatements,
2-20 of more than one hundred million dollars, and which is situated
2-21 within either two miles of any point on the boundaries of the
2-22 district or one mile from the center line of State Highway No. 242;
2-23 and
2-24 (iii) such other territory, whether or not
2-25 contiguous to the boundaries of the district or the impact area, as
2-26 the board may by resolution designate for full or limited purposes
3-1 or for a specified, permanent or indefinite period of time. In
3-2 determining compliance with this subsection, direct expenditures
3-3 made within or for the district or the impact area shall be
3-4 directly allocable to each, but costs or expenditures for the
3-5 general welfare, promotion, or benefit of the combined district and
3-6 impact area including, without limitation, debt service and capital
3-7 improvement costs or expenditures, shall be allocable between the
3-8 district and the impact area proportionate to the benefits
3-9 conferred to each, as determined in the sound discretion of the
3-10 board;
3-11 "(2) borrow money for the corporate purposes of the
3-12 district;
3-13 "(3) add or exclude territory in the manner provided
3-14 by Subchapter J, Chapter 49, and Section 54.016, Water Code, except
3-15 that all references therein to taxes shall mean and refer only to
3-16 ad valorem taxes, and Section 42.042, Local Government Code, and
3-17 Section 54.016, Water Code, shall apply to the district with
3-18 respect to a municipality having a population of 25,000 or less,
3-19 but shall not otherwise apply to the annexation of land restricted
3-20 primarily to commercial or business use;
3-21 "(4) contract with any person or entity for the
3-22 accomplishment of any of the district's purposes including without
3-23 limitation contracting for:
3-24 (A) the payment, repayment, or reimbursement,
3-25 out of tax proceeds or any other specified source of funds, of any
3-26 costs and reasonable carrying costs incurred by that person for or
4-1 on behalf of the district, including all or part of the costs of
4-2 any improvement project; or
4-3 (B) the use, occupancy, lease, rental,
4-4 operation, maintenance, or management of all or part of a proposed
4-5 or existing improvement project;
4-6 "(5) make application for and contract with any person
4-7 or entity to receive, administer, and perform the district's duties
4-8 and obligations under any federal, state, local, or private gift,
4-9 grant, loan, conveyance, transfer, bequest, donation, or other
4-10 financial assistance arrangement relating to the investigation,
4-11 planning, analysis, study, design, acquisition, construction,
4-12 improvement, completion, implementation, or operation by the
4-13 district or others of a proposed or existing improvement project;
4-14 "(6) make, adopt, revise, repeal, amend, promulgate,
4-15 and enforce by ordinary civil remedies reasonable rules and
4-16 regulations for the administration and operation of the district,
4-17 the use, enjoyment, availability, protection, security, and
4-18 maintenance of the district's properties and facilities, and
4-19 providing for public safety and security within the district;
4-20 "(7) establish, revise, repeal, enforce, collect, and
4-21 apply the proceeds from user fees, concessions, admissions,
4-22 rentals, or other similar fees or charges for the enjoyment, sale,
4-23 rental, or other use of the district's facilities, services,
4-24 properties, or improvement projects; however, because the district
4-25 is created in an area that is devoted primarily to commercial and
4-26 business activity, the district may not impose an impact fee or
5-1 assessment on a single family residential property or a residential
5-2 duplex, triplex, quadruplex, or condominium;
5-3 "(8) provide or secure the payment or repayment of the
5-4 costs and expenses of the establishment, administration, and
5-5 operation of the district and the district's costs or share of the
5-6 costs of any improvement project, or district contractual
5-7 obligation or indebtedness, by or through a lease, installment
5-8 purchase contract, or other agreement with any person or the levy
5-9 and assessment of taxes, user fees, concessions, rentals, or other
5-10 revenues or resources of the district;
5-11 "(9) undertake separately or jointly with other
5-12 persons or entities and pay all or part of the cost of improvement
5-13 projects, including improvement projects for improving, enhancing,
5-14 and supporting public safety and security, fire protection and
5-15 emergency medical services, and law enforcement within and adjacent
5-16 to the district and improvement projects that confer a general
5-17 benefit on the entire district and the areas adjacent thereto or a
5-18 special benefit on a definable part of the district, which may be
5-19 the entire district or any part thereof; however, the district
5-20 shall not be authorized to employ peace officers, but the district
5-21 may contract for off duty peace officers to provide additional
5-22 public safety and security services in connection with special
5-23 events, holidays, periods of high traffic congestion or similar
5-24 circumstances; [and]
5-25 "(10) impose, collect, and apply the proceeds from a
5-26 hotel occupancy tax as provided by Sections 11A and 11B of this
6-1 Act[.];
6-2 "(11) exercise the economic development powers and
6-3 authority conferred by Chapter 380, Local Government Code, and
6-4 Vernon's Ann.Civ.St. Article 835s, upon a municipality having a
6-5 population of more than 100,000;
6-6 "(12) subject and subordinate to any applicable
6-7 orders, ordinances, rules or regulations of any overlapping county
6-8 or municipality, regulate the private use of public roadways, open
6-9 spaces, parks, sidewalks and similar public areas by:
6-10 (A) adopting reasonable and necessary rules and
6-11 regulations for the safe and orderly use of such areas;
6-12 (B) requiring permits for parades,
6-13 demonstrations, celebrations, entertainment events or similar
6-14 non-governmental activities in such areas, with all or any
6-15 designated portion of the reasonable and necessary costs for such
6-16 permit application, and any additional public safety or security
6-17 services deemed necessary by the district for such activities being
6-18 chargeable to the permit applicant; and
6-19 (C) requiring permits or franchise agreements
6-20 with vendors, concessionaires, exhibitors or similar private or
6-21 commercial persons or organizations for the limited use of such
6-22 areas upon such terms and conditions and upon payment of such
6-23 permit or franchise fees as the district, in its sound discretion,
6-24 may impose; and
6-25 "(13) employ and fix the terms of employment and
6-26 compensation of a president, a vice president, an executive
7-1 director, a general manager, and any other operating officers of
7-2 the district as in the judgment of the board are necessary."
7-3 SECTION 2. That subsections (a), (b), (c), (d), (e) and (g)
7-4 of Section 8 of Chapter 289, Acts of the 73rd Legislature, Regular
7-5 Session, 1993, as amended by Chapter 255, Acts of the 75th Texas
7-6 Legislature, Regular Session, 1997, are amended to read as follows:
7-7 "(a) The district is governed by a board of [eight] eleven
7-8 directors who shall serve for staggered terms of four years.
7-9 "(b)(1) Except as otherwise provided by [Subdivisions (2)
7-10 and (3) of] this subsection, to be qualified to serve as a
7-11 director, a person must be at least 18 years old and be:
7-12 (A) a resident of the district;
7-13 (B) an individual owner of real property in the
7-14 district;
7-15 (C) an individual owner, whether beneficial or
7-16 otherwise, of at least 10 percent of the outstanding stock of a
7-17 corporate owner of real property in the district or of a corporate
7-18 lessee of real property in the district with an original lease term
7-19 of five years or more, excluding options;
7-20 (D) an individual owner of at least 10 percent
7-21 of the beneficial interest in a trust that:
7-22 (i) owns real property in the district; or
7-23 (ii) leases real property in the district
7-24 under an original lease term of five years or more, excluding
7-25 options;
7-26 (E) an individual lessee of real property in the
8-1 district under an original lease term of five years or more,
8-2 excluding options;
8-3 (F) an individual owner of at least 10 percent
8-4 of the outstanding interest in a general or limited partnership
8-5 that:
8-6 (i) owns real property in the district; or
8-7 (ii) leases real property in the district
8-8 under an original lease term of five years or more, excluding
8-9 options; or
8-10 (G) an individual agent, employee, officer, or
8-11 director of any individual, corporation, trust, or partnership that
8-12 owns or leases real property described by Paragraph (B), (C), (D),
8-13 (E), or (F) of this subdivision who is designated by such owner or
8-14 lessee to serve in that capacity; provided that not more than three
8-15 members of the board, whether elected or appointed, may at any time
8-16 be agents, employees, officers or directors of a single individual,
8-17 corporation, trust, or partnership that owns or leases real
8-18 property described by Paragraph (B), (C), (D), (E), or (F) of this
8-19 subdivision, and any person filing a ballot or write in candidate's
8-20 application or appointed to the board, in order of the time of
8-21 filing or appointment, whose election or appointment would cause
8-22 such limitation to be exceeded, shall be ineligible for election or
8-23 appointment.
8-24 "(2) To be eligible for appointment under Subsection
8-25 (c)(1) [(F)] or [(G)] (2) of this section, a person must be a
8-26 resident of the city making the appointment.
9-1 "(3) To be eligible for appointment under Subsection
9-2 (c) [(1)(H)] (3) of this section, a person must be a member of The
9-3 Woodlands Community Association, Inc.;
9-4 "(4) To be eligible for appointment under Subsection
9-5 (c)(4) of this section, a person must be a member of The Woodlands
9-6 Association, Inc.;
9-7 "(5) To be eligible for appointment under Subsection
9-8 (c) (5) of this section, a person must be a member of The Woodlands
9-9 Commercial Owners Association; and
9-10 "(6) To be eligible for appointment under Subsection
9-11 (c)(6) of this section, a person must be a person described in
9-12 subdivision (b)(1) of this Subsection and a resident of any county
9-13 commissioners precinct which includes all or any portion of the
9-14 boundaries of the district or the impact area.
9-15 "(c) The board shall serve as provided in this Act and shall
9-16 be composed of five elected directors and six appointed directors.
9-17 The appointed directors shall include:[(1) On the effective date
9-18 of this Act, the following persons shall constitute the initial
9-19 board and shall serve as provided in this Act:]
9-20 [(A) Vicki D. Armstrong;]
9-21 [(B) Roger L. Galatas]
9-22 [(C) R. A. Kutsche]
9-23 [(D) Michael H. Richmond]
9-24 [(E) Bruce M. Withers, Jr.;]
9-25 [(F)] (1) one individual appointed by the city
9-26 council of the City of Oak Ridge North;
10-1 [(G)] (2) one individual appointed by the city
10-2 council of the City of Shenandoah; [and]
10-3 [(H)] (3) one individual appointed by the
10-4 governing board of directors of The Woodlands Community
10-5 Association, Inc.;
10-6 (4) one individual appointed by the governing
10-7 board of directors of The Woodlands Association;
10-8 (5) one individual appointed by the governing
10-9 board of directors of The Woodlands Commerical Owners Association;
10-10 and
10-11 (6) one individual appointed by the
10-12 commissioners court of the county in which the majority in acreage
10-13 of the district is located.
10-14 ["(2) If one or more of the initial directors listed
10-15 in this subsection fails to qualify for office within 90 days after
10-16 the effective date of this Act, the remaining directors shall
10-17 appoint qualified persons to fill the vacancies for the unexpired
10-18 terms.]
10-19 (d) Directors shall serve until their successors have been
10-20 elected or appointed and have qualified.
10-21 "(e) A vacancy in the office of director shall be filled by
10-22 appointment of a qualified individual by a majority vote on the
10-23 remaining directors, except that if the number of directors for any
10-24 reason is less than [five]six, on petition of a resident of or
10-25 owner of real property in the district, the commission shall
10-26 appoint the required number of qualified individuals to fill the
11-1 vacancies. The board may remove a director for misconduct or
11-2 failure to carry out the director's duties by unanimous vote of all
11-3 of the remaining directors.
11-4 "(g)After directors have been appointed or elected and have
11-5 qualified by executing a bond and taking the proper oath, they
11-6 shall organize or reorganize by electing a [president] chairman, a
11-7 vice-[president]chairman, a secretary, and any other officers of
11-8 the board as in the judgment of the board are necessary."
11-9 SECTION 3. That subsections (e) and (i) of Section 11 of
11-10 Chapter 289, Acts of the 73rd Legislature, Regular Session, 1993,
11-11 as amended by Chapter 255, Acts of the 75th Texas Legislature,
11-12 Regular Session, 1997, are amended to read as follows:
11-13 SECTION 11. LIMITED SALES AND USE TAX.
11-14 "(e) A tax imposed under this Act or the repeal or reduction
11-15 of a tax under this Act takes effect on [October 1] the first day
11-16 of the [after the expiration of the first complete] calendar
11-17 quarter occurring after the date on which the comptroller receives
11-18 the notice required by Subsection (b), Section 323.405, Tax Code,
11-19 or Subsection (i) of this section.
11-20 "(i) Within 10 days after the annexation or exclusion of
11-21 territory by the district [or the annexation of all or part of the
11-22 territory of the district by a municipality requiring a reduction
11-23 of the district's sales and use tax, as provided in Subsection (h)
11-24 of this section], the board shall send to the comptroller by United
11-25 States certified or registered mail certified copies of all
11-26 resolutions[,] or orders [, or ordinances] pertaining to such
12-1 events.
12-2 SECTION 4. That Chapter 289, Acts of the 73rd Legislature,
12-3 Regular Session, 1993, as amended by Chapter 255, Acts of the 75th
12-4 Texas Legislature, Regular Session, 1997, is amended by the
12-5 addition of Section 11C to read as follows:
12-6 "SECTION 11C. ECONOMIC DEVELOPMENT ZONES. (a) As used in
12-7 this section:
12-8 "(1) "Economic development zone" or "zone" means an
12-9 economic development zone created by the district pursuant to this
12-10 section.
12-11 "(2) "Governing body" means the board of directors of
12-12 a zone.
12-13 "(3) "Initial development" means the first buildings,
12-14 structures, and improvements on a parcel or tract included within a
12-15 zone, excluding streets, utilities, and offsite facilities and
12-16 services.
12-17 "(4) "Substantial redevelopment" shall not include
12-18 improvements, modifications, or rehabilitation of buildings,
12-19 improvements, and facilities which have been in existence less than
12-20 10 years, but may include expansions, enlargements, replacements,
12-21 and relocations of any buildings, improvements, and facilities
12-22 within a zone;
12-23 "(b) The board, on its own motion, or upon receipt of
12-24 a petition signed by the owners of all real property within a
12-25 defined area of the district, may by resolution create, designate,
12-26 describe, assign a name to and appoint the governing body for an
13-1 economic development zone within the district to promote initial
13-2 development or substantial redevelopment of the area, if the board
13-3 finds that the creation of a zone will further the public purposes
13-4 of:
13-5 "(1) development and diversification of the economy of
13-6 the district and the state;
13-7 (2) the elimination of unemployment or underemployment
13-8 in the district and the state;
13-9 (3) the development or expansion of transportation or
13-10 commerce in the district and the state; or
13-11 (4) promoting and stimulating business, commercial and
13-12 economic activity in the district and the state.
13-13 "(c) Before designating an economic development zone, the
13-14 board must prepare a preliminary financing plan for such zone which
13-15 includes:
13-16 "(1) estimated project costs, including administrative
13-17 expenses;
13-18 "(2) a list of the kind, number and location of all
13-19 proposed improvement projects in the zone;
13-20 "(3) the estimated amount of bonded indebtedness to be
13-21 incurred;
13-22 "(4) a description of the methods of financing and
13-23 expected sources of revenue to pay for the costs of proposed
13-24 improvement projects; and
13-25 "(5) the projected duration of the zone.
13-26 "(d) Before designating an economic development zone on its
14-1 own motion or, if ad valorem taxes are to be used, in whole or in
14-2 part, in payment of improvement project costs within the economic
14-3 development zone to be designated in response to a landowner
14-4 petition, the board shall call and conduct a public hearing in the
14-5 same general procedural manner as provided by Section 311.003, Tax
14-6 Code, for reinvestment zones designated by a municipality.
14-7 "(e) An economic development zone may not be created if more
14-8 than 10% of the property in the proposed zone, excluding property
14-9 that is publicly owned, is used or planned for use for residential
14-10 purposes. Property is used for residential purposes if it is
14-11 occupied by a house having fewer than five living units.
14-12 "(f) A resolution designating an area as an economic
14-13 development zone must:
14-14 "(1) describe the boundaries of the zone sufficiently
14-15 to identify with reasonable certainty the territory included;
14-16 "(2) provide an effective date for the zone;
14-17 "(3) provide a date for termination of the zone;
14-18 "(4) assign a name to the zone for identification;
14-19 "(5) adopt a preliminary financing plan for the zone;
14-20 "(6) establish a tax increment fund for the zone; and
14-21 "(7) appoint the governing body for the zone or
14-22 authorize the board to serve ex-officio as the governing body of
14-23 the zone.
14-24 "(g) Members of the governing body shall be appointed for a
14-25 term of two years, except for the initial members of the governing
14-26 body, some of whose terms may be limited to one year in order to
15-1 achieve staggered terms of office.
15-2 Any vacancy on the governing body of the zone shall be filled by
15-3 appointment for the unexpired term by the district.
15-4 "(h) A member of a governing body must be a member of the
15-5 board or must be at least 18 years of age, a citizen of the state,
15-6 and a person described in Subsection 2(b) of this Act. Each member
15-7 must qualify for office by subscribing to the constitutional oath
15-8 of office for public officers and furnishing a fidelity bond issued
15-9 by a responsible surety in the amount of $10,000 in favor of the
15-10 zone to secure faithful performance of the member's duties.
15-11 "(i) Following appointment and qualification, the governing
15-12 body of the zone shall meet and organize by electing a president, a
15-13 vice president, a secretary/treasurer and such other officers as
15-14 the governing body of the zone may deem appropriate.
15-15 "(j) The boundaries of an economic development zone may be
15-16 reduced or enlarged in the same general manner as provided herein
15-17 for creation of a zone.
15-18 "(k) A zone created by the district pursuant to this section
15-19 shall constitute a body politic and corporate and a political
15-20 subdivision of the state, separate and apart from the district.
15-21 The district and the zone shall have the same power and authority
15-22 to carry out this section as are conferred upon a municipality with
15-23 respect to a reinvestment zone under Section 311.008, Tax Code. In
15-24 addition to the powers herein granted to the governing body, the
15-25 board may by order delegate, subject in whole or in part to final
16-1 approval by the board of the district, any powers and duties
16-2 relating to the financing and implementation of the project plan
16-3 for the zone, including, without limitation, the power and
16-4 authority to:
16-5 "(1) issue tax increment bonds or notes for and in the
16-6 name of the zone in the same manner as provided for a municipality
16-7 in Section 311.010, Tax Code, except that tax increment bonds or
16-8 notes of the zone shall mature in not more than 30 years;
16-9 "(2) pledge irrevocably all or part of the tax
16-10 increment fund for the zone, as provided for a municipality in
16-11 Section 311.015, Tax Code; and
16-12 "(3) levy, assess and collect ad valorem taxes,
16-13 assessments and other charges within the zone, as provided for
16-14 municipal management districts in Chapter 375, Local Government
16-15 Code, as well as the incremental sales and use tax authorized by
16-16 this section, but only if such ad valorem tax or incremental sales
16-17 and use tax has been approved by the qualified voters of the
16-18 district.
16-19 "(l) The board and the governing body each may enter
16-20 into such agreements as may be considered necessary or convenient
16-21 to implement a project plan and economic development zone financing
16-22 plan and achieve their purposes. An agreement may provide for the
16-23 regulation or restriction of the use of land by imposing
16-24 conditions, restrictions, or covenants that run with the land. An
16-25 agreement may dedicate revenue from the tax increment fund to pay
16-26 project costs and may provide that a restriction adopted by the
17-1 governing body continues in effect after the termination of the
17-2 zone. The district and the zone may enter into agreements whereby
17-3 the district will provide administration, management, investment,
17-4 accounting, and other services for the zone in consideration for
17-5 the benefits to inure to the district through implementation of the
17-6 project plan for the zone.
17-7 "(m) Subject to approval by resolution of the board, the
17-8 governing body shall prepare and adopt, and may thereafter amend, a
17-9 project plan and an economic development zone financing plan for
17-10 the zone containing generally the information and estimates
17-11 described in Section 311.011, Tax Code, with respect to
17-12 reinvestment zones, together with an estimate of total and
17-13 incremental sales and use taxes to be derived from the zone. If a
17-14 plan amendment reduces or increases the geographic area of the
17-15 zone, increases the amount of bonded indebtedness to be incurred,
17-16 creates or changes a tax increment to be contributed by a taxing
17-17 unit, or increases the total estimated project costs, such
17-18 amendment may be adopted only after a public hearing meeting the
17-19 procedural requirements of this section has been held.
17-20 "(n) If the financing plan adopted by the governing body of
17-21 the zone uses ad valorem taxes, in whole or in part, for payment of
17-22 project costs, then the provisions of Sections 311.012 and 311.013,
17-23 Tax Code, relative to a city or municipality, or its governing
17-24 body, shall apply to the zone and the governing body of the zone.
17-25 "(o) If approved at an election by a majority of the
17-26 qualified voters voting in such election, the district may adopt or
18-1 repeal for the use and benefit of one or more economic development
18-2 zones previously or thereafter created by the district, an
18-3 incremental sales and use tax of not more than one percent (1%).
18-4 An election for the purpose of permitting voting for or against the
18-5 adoption or repeal of the maximum rate of incremental sales and use
18-6 tax specified by the board in the election proposition may be
18-7 called and held by the board in general conformity with the
18-8 procedural requirements of Section 11 of this Act for adoption of
18-9 the limited sales and use tax therein authorized. After adoption
18-10 at an election, and if and to the extent authorized by delegation
18-11 by the district to a zone, the governing body may levy, assess, and
18-12 collect all or any portion of such incremental sales and use tax,
18-13 in increments of not less than one-eighth percent, within and for
18-14 the benefit of the zone, by order of the governing body, and such
18-15 incremental sales and use tax shall be in addition to the limited
18-16 sales and use tax authorized and levied, assessed, and collected by
18-17 the district within and for the entire district pursuant to Section
18-18 11 of this Act. Such incremental sales and use tax shall become
18-19 effective on the first day of the calendar quarter following
18-20 written notice to the comptroller of the imposition of same and
18-21 shall be paid into the tax increment fund for such zone.
18-22 "(p) Section 311.002 and Sections 311.014 through 311.017,
18-23 Tax Code, shall apply to the district, except that:
18-24 "(1) references therein to a municipality shall mean
18-25 and refer to the district and the zone;
18-26 "(2) references therein to an ordinance shall mean and
19-1 refer to an order;
19-2 "(3) references therein to a reinvestment zone shall
19-3 mean and refer to an economic development zone;
19-4 "(4) references therein to an agreement made under
19-5 Section 311.010(b) therein shall mean and refer to an agreement
19-6 made under subsection (k) of this section;
19-7 "(5) development or redevelopment shall mean and
19-8 include initial development or substantial redevelopment; and
19-9 "(6) Section 311.016, Tax Code, shall apply only if ad
19-10 valorem taxes are used, in whole or in part, in payment of project
19-11 costs of a zone."
19-12 SECTION 5. That Section 12A of Chapter 289, Acts of the 73rd
19-13 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
19-14 of the 75th Texas Legislature, Regular Session, 1997, is amended to
19-15 read as follows:
19-16 "SECTION 12A. BONDS. (a) The board of the district may
19-17 issue bonds of the district in the manner provided by Subchapter J,
19-18 Chapter 375, Local Government Code. Sections 375.207 and 375.208,
19-19 Local Government Code, do not apply to bonds issued by the district
19-20 under this [section] Act.
19-21 "(b) If the district issues bonds for the primary purpose of
19-22 providing water, sewage, or drainage facilities, the district must
19-23 obtain the commission's approval in the manner provided by Chapter
19-24 49, Water Code.
19-25 "(c) In addition to the sources of money described by
19-26 Subchapter J, Chapter 375, Local Government Code, the bonds of the
20-1 district may be secured and made payable, wholly or partly, by a
20-2 pledge of any part of the net proceeds the district receives from:
20-3 "(1) a specified portion, but not more than one-half
20-4 percent, of the sales and use tax authorized by Section 11 of this
20-5 Act; and
20-6 "(2) the hotel occupancy tax authorized by Section 11A
20-7 of this Act[; and].
20-8 [(3) repayments the district receives from a
20-9 municipality because of a required reduction of the district's
20-10 sales and use tax.]
20-11 SECTION 6. That Section 13 of Chapter 289, Acts of the 73rd
20-12 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
20-13 of the 75th Texas Legislature, Regular Session, 1997, is amended to
20-14 read as follows:
20-15 "SECTION 13. CONTRACTS WITH DISTRICT. The district is
20-16 authorized to contract with a city, county, other political
20-17 subdivision, corporation, or other persons to carry out the
20-18 purposes of this Act on such terms and conditions and for such
20-19 period of time as the board may determine. A state agency, city,
20-20 county, other political subdivision, corporation, individual, or
20-21 other entity may contract with the district to carry out the
20-22 purposes of this Act without any further authorization,
20-23 notwithstanding any other law or charter provision to the contrary.
20-24 In particular, the district and a municipality situated in whole or
20-25 in part within the boundaries or impact area of the district may
20-26 enter into and carry out interlocal agreements, with such terms and
21-1 conditions as the parties may deem advisable, for the
21-2 accomplishment of improvement projects or the provision of
21-3 facilities, services, or equipment by the district within or for
21-4 the benefit of the municipality, and notwithstanding any provision
21-5 of law to the contrary, payment for such improvement projects,
21-6 facilities, services, or equipment may be made or pledged by the
21-7 municipality to the district out of any funds collected by the
21-8 municipality pursuant to Chapter 351, Tax Code, or any other
21-9 lawfully available funds."
21-10 SECTION 7. REPEAL. Subsection (d) of Section 8 and
21-11 subsection (h) of Section 11 of Chapter 289, Acts of the 73rd
21-12 Legislature, Regular Session, 1993, as amended by Chapter 255, Acts
21-13 of the 75th Texas Legislature, Regular Session, 1997, are repealed.
21-14 SECTION 8. TERMS OF OFFICE. The additional directors
21-15 authorized by this Act shall be appointed and qualified as soon as
21-16 practicable after the effective date of this Act. One of the
21-17 additional directors shall serve for a term ending on the first
21-18 Saturday in May, 2000, and the remaining two additional directors
21-19 shall serve for a term ending on the first Saturday in May, 2002,
21-20 as determined by the board by lot or by mutual agreement. Nothing
21-21 in this Act shall be deemed or construed to affect the terms of
21-22 office of the existing directors.
21-23 SECTION 9. NOTICE AND CONSENT. The legislature finds that
21-24 the proper and legal notice of the intention to introduce this Act,
21-25 setting forth the general substance of this Act, has been published
21-26 as provided by law, and the notice and a copy of this Act have been
22-1 furnished to all persons, agencies, officials, or entities to which
22-2 they are required to be furnished by the constitution and laws of
22-3 this state, including the governor, who has submitted the notice
22-4 and Act to the Texas Natural Resource Conservation Commission. The
22-5 legislature further finds that, to the extent required, the Texas
22-6 Natural Resource Conservation Commission has filed its
22-7 recommendations relating to this Act with the governor, lieutenant
22-8 governor, and speaker of the house of representatives within the
22-9 required time. All requirements of the constitution and laws of
22-10 this state and the rules and procedures of the legislature with
22-11 respect to the notice, introduction, and passage of this Act have
22-12 been fulfilled and accomplished. This Act shall take effect and be
22-13 in force from and after its passage, notwithstanding the general
22-14 law relating to consent by political subdivisions to the creation
22-15 of conservation and reclamation districts and to the inclusion of
22-16 land in such districts.
22-17 SECTION 10. SEVERABILITY. The provisions of this Act are
22-18 severable. If any word, phrase, clause, sentence, section,
22-19 provision, or part of this Act is held invalid or unconstitutional,
22-20 it shall not affect the validity of the remaining portions, and it
22-21 is declared to be the legislative intent that this Act would have
22-22 been passed as to the remaining portions regardless of the
22-23 invalidity of any part.
22-24 SECTION 11. EMERGENCY. The importance of this legislation
22-25 and the crowded condition of the calendars in both houses create an
22-26 emergency and an imperative public necessity that the
23-1 constitutional rule requiring bills to be read on three several
23-2 days in each house be suspended, and this rule is hereby suspended,
23-3 and that this Act take effect and be in force from and after its
23-4 passage, and it is so enacted.