By Uresti                                             H.B. No. 3006
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to composition of the board of directors of a tax
 1-3     increment reinvestment zone.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 311.009, Tax Code, is amended to read as
 1-6     follows:
 1-7           Sec. 311.009.  COMPOSITION OF BOARD OF DIRECTORS. (a)  The
 1-8     [Except as provided by Subsection (b), the] board of directors of a
 1-9     reinvestment zone consists of at least five and not more than 15
1-10     members, unless more than 15 members are required to satisfy the
1-11     requirements of this subsection. Each taxing unit other than a
1-12     municipality that levies taxes on real property in the zone may
1-13     appoint one member of the board, except that if the unit has
1-14     approved the payment of all or part of the tax increment produced
1-15     by the unit, it shall have the right to appoint as many members as
1-16     are appointed by the municipality that created the zone.  A unit
1-17     may waive its right to appoint a director.  [The governing body of
1-18     the municipality that created the zone may appoint not more than 10
1-19     directors to the board; except that if there are fewer than five
1-20     directors appointed by taxing units other than the municipality,
1-21     the governing body of the municipality may appoint more than 10
1-22     members as long as the total membership of the board does not
1-23     exceed 15.]
1-24           (b)  If the zone was designated under Section 311.005(a)(5),
 2-1     a taxing unit [the board of directors of the zone consists of nine
 2-2     members.  Each school district or county that levies taxes on real
 2-3     property in the zone] may appoint a [one] member of the board only
 2-4     if the unit [school district or county] has approved the payment of
 2-5     all or part of the tax increment produced by the unit.  The member
 2-6     of the state senate in whose district the zone is located is a
 2-7     member of the board, and the member of the state house of
 2-8     representatives in whose district the zone is located is a member
 2-9     of the board, except that either may designate another individual
2-10     to serve in the member's place at the pleasure of the member.  If
2-11     the zone is located in more than one senate or house district, this
2-12     subsection applies only to the senator or representative in whose
2-13     district a larger portion of the zone is located than any other
2-14     senate or house district, as applicable.  [The remaining members of
2-15     the board are appointed by the governing body of the municipality
2-16     that created the zone.]
2-17           (c)  Members of the board are appointed for terms of two
2-18     years unless longer terms are provided under Article XI, Section
2-19     11, of the Texas Constitution.  Terms of members may be staggered.
2-20           (d)  A vacancy on the board is filled for the unexpired term
2-21     by appointment of the governing body of the taxing unit that
2-22     appointed the director who served in the vacant position.
2-23           (e)  To be eligible for appointment to the board by the
2-24     governing body of the municipality, an individual must:
2-25                 (1)  if the board is covered by Subsection (a):
2-26                       (A)  be a qualified voter of the municipality; or
2-27                       (B)  be at least 18 years of age and own real
 3-1     property in the zone, whether or not the individual resides in the
 3-2     municipality; or
 3-3                 (2)  if the board is covered by Subsection (b):
 3-4                       (A)  be at least 18 years of age; and
 3-5                       (B)  own real property in the zone or be an
 3-6     employee or agent of a person that owns real property in the zone.
 3-7           (f)  Each year the board of directors of a reinvestment zone
 3-8     [governing body of the municipality] shall appoint one of its
 3-9     members [member of the board] to serve as chairman for a term of
3-10     one year that begins on January 1 of the following year.  The board
3-11     of directors may elect a vice-chairman to preside in the absence of
3-12     the chairman or when there is a vacancy in the office of chairman.
3-13     The board may elect other officers as it considers appropriate.
3-14           (g)  A member of the board of directors of a reinvestment
3-15     zone:
3-16                 (1)  is not a public official by virtue of that
3-17     position; and
3-18                 (2)  unless otherwise ineligible, may be appointed to
3-19     serve concurrently on the board of directors of a local government
3-20     corporation created under Subchapter D, Chapter 431, Transportation
3-21     Code.
3-22           SECTION 2.  This Act takes effect September 1, 2001.