1-1 By: Bernsen S.B. No. 1807
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 19, 1999, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 5, Nays 0;
1-6 April 19, 1999, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1807 By: Ellis
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the administration, powers, including taxing powers,
1-11 operations, and financing of the Town Center Improvement District
1-12 of Montgomery County, Texas.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 2, Chapter 289, Acts of the 73rd
1-15 Legislature, Regular Session, 1993, is amended to read as follows:
1-16 Sec. 2. DEFINITIONS. In this Act:
1-17 (1) "Board" means the board of directors of the
1-18 district.
1-19 (2) "Commission" means the Texas Natural Resource
1-20 Conservation Commission.
1-21 (3) "District" means the Town Center Improvement
1-22 District of Montgomery County, Texas.
1-23 (4) "Impact area" includes the territory inside the
1-24 corporate limits of the City of Shenandoah and the City of Oak
1-25 Ridge North, any other territory the board by resolution designates
1-26 as part of the impact area, and the unincorporated area that is
1-27 located:
1-28 (A) two miles or less from any point on the
1-29 district boundaries or one mile or less from the center line of
1-30 State Highway 242; and
1-31 (B) in the area subject to the authority of a
1-32 nonprofit property owners' association that is authorized to impose
1-33 assessments on the taxable value of property that:
1-34 (i) is on a tax or assessment roll of a
1-35 local government; and
1-36 (ii) has had an aggregate assessed value,
1-37 before exemptions and abatements are accounted for, of more than
1-38 $100 million for at least two consecutive tax years.
1-39 (5) "Improvement project" means any program or
1-40 project, whether individual, intermittent, or continuing and
1-41 whether located or conducted within or without the district, for
1-42 the planning, design, construction, acquisition, lease, rental,
1-43 installment purchase, improvement, provision of furnishings,
1-44 equipment, rehabilitation, repair, reconstruction, relocation, use,
1-45 management, operation, or maintenance of any works, improvements,
1-46 or facilities or the provision, support, enhancement, improvement,
1-47 extension, or expansion of services, whether provided to, for, by,
1-48 or on behalf of the district, necessary for the accomplishment of
1-49 the public purposes of the district, including:
1-50 (A) landscaping; lighting, banners, and signs;
1-51 streets or sidewalks; hike and bike paths and trails, pedestrian
1-52 walkways, skywalks, crosswalks, or tunnels; highway right-of-way or
1-53 transit corridor beautification and improvements; drainage or storm
1-54 water detention improvements; solid waste, water, sewer, or power
1-55 facilities and services, including but not limited to electrical,
1-56 gas, steam, and chilled water facilities; parks, lakes, gardens,
1-57 recreational facilities, open space, scenic areas, and related
1-58 exhibits and preserves; fountains, plazas, and pedestrian malls;
1-59 public art and sculpture and related exhibits and facilities;
1-60 educational and cultural exhibits and facilities; conferences,
1-61 conventions, or exhibitions; manufacturer, consumer, or trade
1-62 shows; civic, community, or institutional events; exhibits,
1-63 displays, attractions, and facilities for special events, holidays,
1-64 and seasonal or cultural celebrations; off-street parking
2-1 facilities, bus terminals, heliports, mass-transit, and
2-2 roadway-borne or water-borne transportation and people-mover
2-3 systems; and any other public improvements, facilities, or services
2-4 similar to the foregoing;
2-5 (B) the removal, razing, demolition, or clearing
2-6 of land or improvements in connection with any improvement project;
2-7 (C) the acquisition of real or personal property
2-8 or any interest therein in connection with an authorized
2-9 improvement project provided that the district shall not have the
2-10 power of eminent domain; and
2-11 (D) any special or supplemental services for the
2-12 improvement and promotion of the district or adjacent areas or for
2-13 the protection of public health and safety within or adjacent to
2-14 the district, including but not limited to advertising, promotion,
2-15 tourism, health and sanitation, public safety, security, fire
2-16 protection and emergency medical services, business recruitment,
2-17 development, elimination of traffic congestion, and recreational,
2-18 educational, and cultural improvements, enhancements, and services.
2-19 SECTION 2. Section 7, Chapter 289, Acts of the 73rd
2-20 Legislature, Regular Session, 1993, is amended to read as follows:
2-21 Sec. 7. ADDITIONAL SPECIFIC POWERS AND DUTIES. (a) In
2-22 addition to the general powers set forth in Section 6 of this Act,
2-23 the board has the powers provided by this section.
2-24 (b) The board may[, subject to the provisions and
2-25 limitations hereinafter set forth:]
2-26 [(1)] levy, assess, and apply the proceeds from the
2-27 [a] limited sales and use taxes authorized by Section 11 of this
2-28 Act [tax] for authorized [the district's] purposes, provided that,
2-29 during each interval of three calendar years following the
2-30 commencement of collection of such tax, the board shall, consistent
2-31 with constitutional limitations and the district's authorized
2-32 powers and purposes, and in its sound discretion, endeavor to apply
2-33 an annual average of not less than 10 percent of the net proceeds
2-34 of the taxes collected under Section 11 of this Act [such tax
2-35 collections], after deduction of the general and administrative
2-36 costs and expenses of the district and the costs and expenses of
2-37 levying, assessing, and collecting such taxes, toward mitigation of
2-38 the net negative impact of development within the district on the
2-39 impact area [adjacent areas], including without limitation effects
2-40 on public utilities and services, public transportation and traffic
2-41 movement, and scenic and aesthetic beauty. Direct expenditures
2-42 made for the district or the impact area are allocable to each area
2-43 for which the expenditure was made. Expenditures for the general
2-44 welfare, promotion, or benefit of the district and impact area are
2-45 allocable between the district and the impact area in the amount,
2-46 as determined by the board, that is proportionate to the benefit
2-47 conferred on each area.
2-48 (c) The board may[; (2)] borrow money for the corporate
2-49 purposes of the district.
2-50 (d) The board may[; (3)] add or exclude territory in the
2-51 manner provided by Subchapter J, Chapter 49, and Section 54.016,
2-52 Water Code, except that for purposes of this subsection, a
2-53 reference in that section to a tax means an ad valorem tax only and
2-54 Section 42.042, Local Government Code, and Section 54.016, Water
2-55 Code, apply only with respect to the consent of a municipality with
2-56 a population of 25,000 or less and do [shall] not apply to the
2-57 annexation of land restricted primarily to commercial or business
2-58 use.
2-59 (e) The board may[; (4)] contract with any person or entity
2-60 for the accomplishment of any of the district's purposes, including
2-61 without limitation contracting for:
2-62 (1) [(A)] the payment, repayment, or reimbursement,
2-63 out of tax proceeds or any other specified source of funds, of any
2-64 costs and reasonable carrying costs incurred by that person for or
2-65 on behalf of the district, including all or part of the costs of
2-66 any improvement project; or
2-67 (2) [(B)] the use, occupancy, lease, rental,
2-68 operation, maintenance, or management of all or part of a proposed
2-69 or existing improvement project.
3-1 (f) The board may[; (5)] make application for and contract
3-2 with any person or entity to receive, administer, and perform the
3-3 district's duties and obligations under any federal, state, local,
3-4 or private gift, grant, loan, conveyance, transfer, bequest,
3-5 donation, or other financial assistance arrangement relating to the
3-6 investigation, planning, analysis, study, design, acquisition,
3-7 construction, improvement, completion, implementation, or operation
3-8 by the district or others of a proposed or existing improvement
3-9 project.
3-10 (g) The board may[; (6)] make, adopt, revise, repeal, amend,
3-11 promulgate, and enforce by ordinary civil remedies reasonable rules
3-12 and regulations for the administration and operation of the
3-13 district, the use, enjoyment, availability, protection, security,
3-14 and maintenance of the district's properties and facilities, and
3-15 providing for public safety and security within the district.
3-16 (h) The board may[; (7)] establish, revise, repeal, enforce,
3-17 collect, and apply the proceeds from user fees, concessions,
3-18 admissions, rentals, or other similar fees or charges for the
3-19 enjoyment, sale, rental, or other use of the district's facilities,
3-20 services, properties, or improvement projects; however, because the
3-21 district is created in an area that is devoted primarily to
3-22 commercial and business activity, the district may not impose an
3-23 impact fee or assessment on a single family residential property or
3-24 a residential duplex, triplex, quadruplex, or condominium.
3-25 (i) The board may[; (8)] provide or secure the payment or
3-26 repayment of the costs and expenses of the establishment,
3-27 administration, and operation of the district and the district's
3-28 costs or share of the costs of any improvement project, or district
3-29 contractual obligation or indebtedness, by or through a lease,
3-30 installment purchase contract, or other agreement with any person
3-31 or the levy and assessment of taxes, user fees, concessions,
3-32 rentals, or other revenues or resources of the district.
3-33 (j) The board may[; (9)] undertake separately or jointly
3-34 with other persons or entities and pay all or part of the cost of
3-35 improvement projects, including improvement projects for improving,
3-36 enhancing, and supporting public safety and security, fire
3-37 protection and emergency medical services, and law enforcement
3-38 within and adjacent to the district and improvement projects that
3-39 confer a general benefit on the entire district and the areas
3-40 adjacent thereto or a special benefit on a definable part of the
3-41 district, which may be the entire district or any part thereof.
3-42 (k) The[; however, the] district may not [shall not be
3-43 authorized to] employ peace officers, but may contract for off-duty
3-44 peace officers to provide public safety and security services in
3-45 connection with a special event, holiday, period with high traffic
3-46 congestion, or similar circumstance.
3-47 (l) The board may[; and (10)] impose, collect, and apply the
3-48 proceeds from a hotel occupancy tax as provided by Sections 11A and
3-49 11B of this Act.
3-50 (m) The board may exercise the economic development powers
3-51 and authority that Chapter 380, Local Government Code, and Article
3-52 835s, Revised Statutes, provide a municipality with a population of
3-53 more than 100,000.
3-54 (n) The board by rule may regulate the private use of public
3-55 roadways, open spaces, parks, sidewalks, and similar public areas.
3-56 To the extent the rules of the district conflict with a rule,
3-57 order, ordinance, or regulation of a county or municipality with
3-58 jurisdiction in the district's territory, the rule, order,
3-59 ordinance, or regulation of the county or municipality controls.
3-60 The rules may provide for the safe and orderly use of public
3-61 roadways, open spaces, parks, sidewalks, and similar public areas
3-62 or facilities.
3-63 (o) The board may require a permit for a parade,
3-64 demonstration, celebration, entertainment event, or similar
3-65 nongovernmental activity in or on the public roadways, open spaces,
3-66 parks, sidewalks, and similar public areas or facilities. The
3-67 board may charge a fee for the permit application and for public
3-68 safety or security services in an amount the board considers
3-69 necessary.
4-1 (p) The board may require a permit or franchise agreement
4-2 with a vendor, concessionaire, exhibitor, or similar private or
4-3 commercial person or organization for the limited use of the area
4-4 or facilities on terms and conditions and on payment of a permit or
4-5 franchise fee the board may impose.
4-6 (q) The board may employ and establish the terms of
4-7 employment and compensation of a president, vice president,
4-8 executive director, general manager, and any other operating
4-9 officer of the district the board considers necessary.
4-10 SECTION 3. Subsections (a), (b), (c), (d), (e), and (g),
4-11 Section 8, Chapter 289, Acts of the 73rd Legislature, Regular
4-12 Session, 1993, are amended to read as follows:
4-13 (a) The district is governed by a board composed of 11
4-14 directors elected or appointed as provided by Subsection (c) of
4-15 this section. Directors [of eight directors who shall] serve [for]
4-16 staggered terms of four years.
4-17 (b)(1) Except as otherwise provided by [Subdivisions (2) and
4-18 (3) of] this subsection, to be qualified to serve as a director, a
4-19 person must be at least 18 years old and be:
4-20 (A) a resident of the district;
4-21 (B) an individual owner of real property in the
4-22 district;
4-23 (C) an individual owner, whether beneficial or
4-24 otherwise, of at least 10 percent of the outstanding stock of a
4-25 corporate owner of real property in the district or of a corporate
4-26 lessee of real property in the district with an original lease term
4-27 of five years or more, excluding options;
4-28 (D) an individual owner of at least 10 percent
4-29 of the beneficial interest in a trust that:
4-30 (i) owns real property in the district; or
4-31 (ii) leases real property in the district
4-32 under an original lease term of five years or more, excluding
4-33 options;
4-34 (E) an individual lessee of real property in the
4-35 district under an original lease term of five years or more,
4-36 excluding options;
4-37 (F) an individual owner of at least 10 percent
4-38 of the outstanding interest in a general or limited partnership
4-39 that:
4-40 (i) owns real property in the district; or
4-41 (ii) leases real property in the district
4-42 under an original lease term of five years or more, excluding
4-43 options; or
4-44 (G) an individual agent, employee, officer, or
4-45 director of any individual, corporation, trust, or partnership that
4-46 owns or leases real property described by Paragraph (B), (C), (D),
4-47 (E), or (F) of this subdivision who is designated by such owner or
4-48 lessee to serve in that capacity.
4-49 (2) To be eligible for appointment under Subsection
4-50 (c)(1) [(c)(1)(F)] or (2) [(G)] of this section, a person must be a
4-51 resident of the city making the appointment.
4-52 (3) To be eligible for appointment under Subsection
4-53 (c)(3) of this section, a person must be a resident described by
4-54 Subdivision (1) of this subsection and a resident of any county
4-55 commissioners precinct that includes all or any portion of the
4-56 boundaries of the district or impact area.
4-57 (4) To be eligible for appointment under Subsection
4-58 (c)(4) [(c)(1)(H)] of this section, a person must be a member of
4-59 The Woodlands Community Association, Inc.
4-60 (5) To be eligible for appointment under Subsection
4-61 (c)(5) of this section, a person must be a member of The Woodlands
4-62 Association, Inc.
4-63 (6) To be eligible for appointment under Subsection
4-64 (c)(6) of this section, a person must be a member of The Woodlands
4-65 Commercial Owners Association.
4-66 (7) Notwithstanding any other provision of this
4-67 subsection, not more than three members of the board at any time
4-68 may be agents, employees, officers, or directors of a single
4-69 individual, corporation, trust, or partnership that owns or leases
5-1 real property described by Subdivision (1)(B), (C), (D), (E), or
5-2 (F) of this subsection, regardless of whether the member is elected
5-3 or appointed under this section. Any person filing a ballot or
5-4 write-in candidate's application or any person who is to be
5-5 appointed to the board, whose election or appointment, at the time
5-6 of filing or appointment, would cause the limitation of this
5-7 subdivision to be violated, is ineligible for election or
5-8 appointment.
5-9 (c) The board of directors is composed of:
5-10 (1) [(c)(1) On the effective date of this Act, the
5-11 following persons shall constitute the initial board and shall
5-12 serve as provided in this Act:]
5-13 [(A) Vicki D. Armstrong;]
5-14 [(B) Roger L. Galatas;]
5-15 [(C) R. A. Kutsche;]
5-16 [(D) Michael H. Richmond;]
5-17 [(E) Bruce M. Withers, Jr.;]
5-18 [(F)] one individual appointed by the city
5-19 council of the City of Oak Ridge North;
5-20 (2) [(G)] one individual appointed by the city council
5-21 of the City of Shenandoah;
5-22 (3) one individual appointed by the commissioners
5-23 court of the county in which the majority of the district's
5-24 territory is located;
5-25 (4) [and (H)] one individual appointed by the board of
5-26 directors of The Woodlands Community Association, Inc.;
5-27 (5) one individual appointed by the board of directors
5-28 of The Woodlands Association, Inc.;
5-29 (6) one individual appointed by the board of directors
5-30 of The Woodlands Commercial Owners Association; and
5-31 (7) five individuals elected by the voters of the
5-32 district at large.
5-33 [(2) If one or more of the initial directors listed in
5-34 this subsection fails to qualify for office within 90 days after
5-35 the effective date of this Act, the remaining directors shall
5-36 appoint qualified persons to fill the vacancies for the unexpired
5-37 terms.]
5-38 (d) Directors [Of the initial directors, four shall] serve
5-39 until [the first Saturday in May, 1994, or until] their successors
5-40 have been elected or appointed and have qualified[, and four shall
5-41 serve until the first Saturday in May, 1996, or until their
5-42 successors have been elected or appointed and have qualified. The
5-43 board shall determine the terms of the initial directors by mutual
5-44 agreement or by lot].
5-45 (e) A vacancy in the office of director shall be filled by
5-46 appointment of a qualified individual by a majority vote of the
5-47 remaining directors, except that if the number of directors for any
5-48 reason is less than six [five], on petition of a resident of or
5-49 owner of real property in the district, the commission shall
5-50 appoint the required number of qualified individuals to fill the
5-51 vacancies. The board may remove a director for misconduct or
5-52 failure to carry out the director's duties by unanimous vote of all
5-53 of the remaining directors.
5-54 (g) After directors have been appointed or elected and have
5-55 qualified by executing a bond and taking the proper oath, they
5-56 shall organize or reorganize by electing a chairman [president], a
5-57 vice chairman [vice-president], a secretary, and any other officers
5-58 of the board as [in the judgment of] the board considers [are]
5-59 necessary.
5-60 SECTION 4. Subsections (e) and (i), Section 11, Chapter 289,
5-61 Acts of the 73rd Legislature, Regular Session, 1993, are amended to
5-62 read as follows:
5-63 (e) A tax imposed under this Act or the repeal or reduction
5-64 of a tax under this Act takes effect on the first day of the
5-65 [October 1 after the expiration of the first complete] calendar
5-66 quarter occurring after the date on which the comptroller receives
5-67 the notice required by Subsection (b), Section 323.405, Tax Code,
5-68 or Subsection (i) of this section.
5-69 (i) Within 10 days after the annexation or exclusion of
6-1 territory by the district [or the annexation of all or part of the
6-2 territory of the district by a municipality requiring a reduction
6-3 of the district's sales and use tax, as provided in Subsection (h)
6-4 of this section], the board shall send to the comptroller by United
6-5 States certified or registered mail certified copies of all
6-6 resolutions or[,] orders[, or ordinances] pertaining to such
6-7 events.
6-8 SECTION 5. Chapter 289, Acts of the 73rd Legislature,
6-9 Regular Session, 1993, is amended by adding Section 11C to read as
6-10 follows:
6-11 Sec. 11C. ECONOMIC DEVELOPMENT ZONES. (a) As used in this
6-12 section:
6-13 (1) "Development zone" means an economic development
6-14 zone created by the district under this section.
6-15 (2) "Governing body" means the board of directors of a
6-16 development zone.
6-17 (3) "Initial development" means the first buildings,
6-18 structures, and improvements on a parcel or tract included in a
6-19 development zone. The term does not include a street, utility, or
6-20 off-site facility or service.
6-21 (4) "Substantial redevelopment" includes an expansion,
6-22 enlargement, replacement, and relocation of a building,
6-23 improvement, and facility located in a development zone. The term
6-24 does not include an improvement, modification, or rehabilitation of
6-25 a building, improvement, or facility that has been in existence for
6-26 less than 10 years.
6-27 (b) The board, on its own motion or on receipt of a petition
6-28 signed by the owners of all real property in a defined area of the
6-29 district, by resolution may create, designate, describe, assign a
6-30 name to, and appoint the governing body for a development zone in
6-31 the district to promote initial development or substantial
6-32 redevelopment of the area, if the board finds that the creation of
6-33 the zone will further the public purposes of:
6-34 (1) the development and diversification of the economy
6-35 of the district and the state;
6-36 (2) the elimination of unemployment or underemployment
6-37 in the district and the state;
6-38 (3) the development or expansion of transportation or
6-39 commerce in the district and the state; or
6-40 (4) the promotion and stimulation of business,
6-41 commercial, and economic activity in the district and the state.
6-42 (c) Before designating a development zone, the board must
6-43 prepare a preliminary financing plan for the zone that includes:
6-44 (1) estimated project costs, including administrative
6-45 expenses;
6-46 (2) a list of the kind, number, and location of all
6-47 proposed improvement projects in the zone;
6-48 (3) the estimated amount of bonded indebtedness to be
6-49 incurred;
6-50 (4) a description of the methods of financing and
6-51 expected sources of revenue to pay for the costs of proposed
6-52 improvement projects; and
6-53 (5) the projected duration of the zone.
6-54 (d) Before designating a development zone on its own motion
6-55 or, if ad valorem taxes are to be used, in whole or in part, for
6-56 the payment of improvement project costs in a development zone to
6-57 be designated in response to a landowner petition, the board shall
6-58 call and hold a public hearing on the creation of the zone in the
6-59 manner provided by Section 311.003, Tax Code, for reinvestment
6-60 zones designated by a municipality.
6-61 (e) A development zone may not be created if more than 10
6-62 percent of the property in the proposed zone, other than property
6-63 that is publicly owned, is used or planned for use for residential
6-64 purposes. For purposes of this subsection, property is used for
6-65 residential purposes if the property is occupied by a house that
6-66 has fewer than five living units.
6-67 (f) A resolution designating an area as a development zone
6-68 must:
6-69 (1) describe the boundaries of the zone sufficiently
7-1 to identify with reasonable certainty the territory included;
7-2 (2) provide an effective date for the creation of the
7-3 zone;
7-4 (3) provide a date for termination of the zone;
7-5 (4) assign a name to the zone for identification;
7-6 (5) adopt a preliminary financing plan for the zone;
7-7 (6) establish a tax increment fund for the zone; and
7-8 (7) appoint the governing body for the zone or
7-9 authorize the board to serve ex officio as the governing body of
7-10 the zone.
7-11 (g) Members of the governing body shall be appointed for a
7-12 term of two years, except that the appointment of the initial
7-13 members of the governing body may provide for some terms to be
7-14 limited to one year in order to achieve staggered terms of office.
7-15 The district by appointment shall fill a vacancy on the governing
7-16 body of the zone for the unexpired portion of the term.
7-17 (h) A member of a governing body must be at least 18 years
7-18 of age, a citizen of the state, and a person described in
7-19 Subsection (b) of Section 8 of this Act. A member of the board of
7-20 directors of the district may be appointed to the governing body.
7-21 Each member must qualify for office by subscribing to the
7-22 constitutional oath of office for public officers and furnishing a
7-23 fidelity bond issued by a responsible surety in the amount of
7-24 $10,000 in favor of the development zone to secure faithful
7-25 performance of the member's duties.
7-26 (i) Following appointment and qualification, the governing
7-27 body of the development zone shall meet and organize by electing a
7-28 president, a vice president, a secretary-treasurer, and other
7-29 officers the governing body considers appropriate.
7-30 (j) The boundaries of a development zone may be reduced or
7-31 enlarged in the manner provided by this section for creation of a
7-32 zone.
7-33 (k) A development zone created by the district under this
7-34 section is a body politic and corporate and a political subdivision
7-35 of the state, separate from the district. The district and the
7-36 development zone have the same power and authority to carry out
7-37 this section as Section 311.008, Tax Code, provides a municipality
7-38 to carry out Chapter 311, Tax Code. In addition to the powers
7-39 granted to the governing body by this section, the board by order
7-40 may delegate, subject in whole or in part to final approval by the
7-41 board, any powers and duties relating to the financing and
7-42 implementation of the project plan for the zone, including the
7-43 power and authority to:
7-44 (1) issue tax increment bonds or notes for and in the
7-45 name of the zone in the same manner as Section 311.010, Tax Code,
7-46 provides for a municipality, except that tax increment bonds or
7-47 notes of the zone must mature in not more than 30 years;
7-48 (2) pledge irrevocably all or part of the tax
7-49 increment fund for the zone, as Section 311.015, Tax Code, provides
7-50 for a municipality; and
7-51 (3) impose, assess, and collect ad valorem taxes,
7-52 assessments, and other charges in the zone, as Chapter 375, Local
7-53 Government Code, provides for municipal management districts, as
7-54 well as the incremental sales and use tax authorized by this
7-55 section, if the ad valorem tax or incremental sales and use tax has
7-56 been approved by the qualified voters of the district at an
7-57 election called and held for that purpose.
7-58 (l) The board and the governing body each may enter into an
7-59 agreement considered necessary or convenient to implement a project
7-60 plan and development zone financing plan and achieve their
7-61 purposes. An agreement may provide for the regulation or
7-62 restriction of the use of land by imposing conditions,
7-63 restrictions, or covenants that run with the land. An agreement
7-64 may dedicate revenue from the tax increment fund to pay project
7-65 costs and may provide that a restriction adopted by the governing
7-66 body continues in effect after the termination of the development
7-67 zone. The district and the development zone may agree that the
7-68 district will provide administration, management, investment,
7-69 accounting, and other services for the zone in consideration for
8-1 the benefits received by the district through the implementation of
8-2 the project plan for the zone.
8-3 (m) Subject to approval by resolution of the board, the
8-4 governing body shall prepare and adopt, and may amend, a project
8-5 plan and a development zone financing plan for the development zone
8-6 containing generally the information and estimates described by
8-7 Section 311.011, Tax Code, with respect to reinvestment zones,
8-8 together with an estimate of total and incremental sales and use
8-9 taxes to be derived from the zone. If a plan amendment reduces or
8-10 increases the geographic area of the zone, increases the amount of
8-11 bonded indebtedness to be incurred, creates or changes a tax
8-12 increment to be contributed by a taxing unit, or increases the
8-13 total estimated project costs, the amendment may be adopted only
8-14 after a public hearing meeting the procedural requirements of this
8-15 section for a meeting on the creation of a development zone has
8-16 been held.
8-17 (n) If the financing plan adopted by the governing body of
8-18 the development zone uses ad valorem taxes, in whole or in part,
8-19 for payment of project costs, the provisions of Sections 311.012
8-20 and 311.013, Tax Code, shall apply to the development zone as if
8-21 the zone were a taxing unit under those sections and to the
8-22 governing body of the zone as if the governing body were the
8-23 governing body of a taxing unit under those sections.
8-24 (o) If approved at an election by a majority of the
8-25 qualified voters voting in an election called and held for that
8-26 purpose, the district may adopt or repeal for the use and benefit
8-27 of one or more development zones created by the district before or
8-28 after the election an incremental sales and use tax of not more
8-29 than one percent. An election on the adoption or repeal of the
8-30 maximum rate of incremental sales and use tax may be called and
8-31 held by the board as provided by Section 11 of this Act for an
8-32 election on the adoption of the limited sales and use tax
8-33 authorized by a Section 11 of this Act. After adoption at an
8-34 election, to the extent the district has delegated the authority to
8-35 the zone, the governing body may impose, assess, and collect all or
8-36 any portion of the incremental sales and use tax, in increments of
8-37 not less than one-eighth of one percent, for the benefit of the
8-38 zone, by order of the governing body. The incremental sales and
8-39 use tax is in addition to the limited sales and use tax authorized
8-40 and imposed, assessed, and collected by the district under Section
8-41 11 of this Act. The incremental sales and use tax becomes
8-42 effective on the first day of the calendar quarter following the
8-43 date the comptroller receives written notice of the imposition of
8-44 the tax and shall be paid into the tax increment fund for the
8-45 development zone.
8-46 (p) Sections 311.002 and 311.014 through 311.017, Tax Code,
8-47 apply to the district, except that for purposes of this subsection:
8-48 (1) a reference in those sections to a municipality
8-49 means the district and the development zone;
8-50 (2) a reference in those sections to an ordinance
8-51 means an order;
8-52 (3) a reference in those sections to a reinvestment
8-53 zone means a development zone;
8-54 (4) a reference in those sections to an agreement made
8-55 under Subsection (b), Section 311.010, Tax Code, means an agreement
8-56 made under Subsection (l) of this section;
8-57 (5) "development" means initial development;
8-58 (6) "redevelopment" means substantial redevelopment;
8-59 and
8-60 (7) Section 311.016, Tax Code, applies only if ad
8-61 valorem taxes are used, in whole or in part, in payment of project
8-62 costs of a development zone.
8-63 SECTION 6. Subsections (a) and (c), Section 12A, Chapter
8-64 289, Acts of the 73rd Legislature, Regular Session, 1993, are
8-65 amended to read as follows:
8-66 (a) The board may issue bonds of the district in the manner
8-67 provided by Subchapter J, Chapter 375, Local Government Code.
8-68 Sections 375.207 and 375.208, Local Government Code, do not apply
8-69 to bonds issued by the district under this Act [section].
9-1 (c) In addition to the sources of money described by
9-2 Subchapter J, Chapter 375, Local Government Code, the bonds of the
9-3 district may be secured and made payable, wholly or partly, by a
9-4 pledge of any part of the net proceeds the district receives from:
9-5 (1) a specified portion, but not more than one-half of
9-6 one percent, of the sales and use tax authorized by Section 11 of
9-7 this Act; and
9-8 (2) the hotel occupancy tax authorized by Section 11A
9-9 of this Act[; and]
9-10 [(3) repayments the district receives from a
9-11 municipality because of a required reduction of the district's
9-12 sales and use tax].
9-13 SECTION 7. Section 13, Chapter 289, Acts of the 73rd
9-14 Legislature, Regular Session, 1993, is amended to read as follows:
9-15 Sec. 13. CONTRACTS WITH DISTRICT. (a) The district is
9-16 authorized to contract with a city, county, other political
9-17 subdivision, corporation, or other persons to carry out the
9-18 purposes of this Act on such terms and conditions and for such
9-19 period of time as the board may determine. A state agency, city,
9-20 county, other political subdivision, corporation, individual, or
9-21 other entity may contract with the district to carry out the
9-22 purposes of this Act without any further authorization,
9-23 notwithstanding any other law or charter provision to the contrary.
9-24 (b) The district and a municipality any part of which is
9-25 located in the boundaries of the district or impact area may enter
9-26 into and carry out an interlocal agreement for the accomplishment
9-27 of an improvement project or the provision of a facility, a
9-28 service, or equipment by the district in or for the benefit of the
9-29 municipality. Notwithstanding any other law, payment for the
9-30 improvement project, facility, service, or equipment may be made or
9-31 pledged by the municipality to the district out of any money the
9-32 municipality collects under Chapter 351, Tax Code, or out of any
9-33 other available money.
9-34 SECTION 8. Subsection (h), Section 11, Chapter 289, Acts of
9-35 the 73rd Legislature, Regular Session, 1993, is repealed.
9-36 SECTION 9. The additional directors of the Town Center
9-37 Improvement District of Montgomery County, Texas, provided by
9-38 Section 8, Chapter 289, Acts of the 73rd Legislature, Regular
9-39 Session, 1993, as amended by this Act, shall be appointed as
9-40 provided by that section as soon as practicable after the effective
9-41 date of this Act. One of the additional directors shall serve for
9-42 a term ending on the first Saturday in May 2000, and the other two
9-43 additional directors shall serve for a term ending on the first
9-44 Saturday in May 2002, as determined by the board of directors of
9-45 the Town Center Improvement District of Montgomery County, Texas,
9-46 by a lot or by mutual agreement. Nothing in this Act affects the
9-47 terms of office of the existing directors.
9-48 SECTION 10. (a) The proper and legal notice of the
9-49 intention to introduce this Act, setting forth the general
9-50 substance of this Act, has been published as provided by law, and
9-51 the notice and a copy of this Act have been furnished to all
9-52 persons, agencies, officials, or entities to which they are
9-53 required to be furnished by the constitution and other laws of this
9-54 state, including the governor, who has submitted the notice and Act
9-55 to the Texas Natural Resource Conservation Commission.
9-56 (b) The Texas Natural Resource Conservation Commission has
9-57 filed its recommendations relating to this Act with the governor,
9-58 lieutenant governor, and speaker of the house of representatives
9-59 within the required time.
9-60 (c) All requirements of the constitution and laws of this
9-61 state and the rules and procedures of the legislature with respect
9-62 to the notice, introduction, and passage of this Act are fulfilled
9-63 and accomplished.
9-64 SECTION 11. The importance of this legislation and the
9-65 crowded condition of the calendars in both houses create an
9-66 emergency and an imperative public necessity that the
9-67 constitutional rule requiring bills to be read on three several
9-68 days in each house be suspended, and this rule is hereby suspended,
9-69 and that this Act take effect and be in force from and after its
10-1 passage, and it is so enacted.
10-2 * * * * *