By Uresti                                             H.B. No. 3006
         77R9263 T                           
                                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. Chapter 311.009, Tax Code, is amended to read as
 1-6     follows:
 1-7           (a)  [Except as provided by Subsection (b), t] The board of
 1-8     directors of a reinvestment zone consists of at least five and not
 1-9     more than 15 members, unless more than 15 members are required to
1-10     satisfy the requirements of this subsection.
1-11           Each taxing unit other than a municipality that levies taxes
1-12     on real property in the zone may appoint one member of the
1-13     board[.], except that if the unit has approved the payment of all
1-14     or part of the tax increment produced by the unit, it shall have
1-15     the right to appoint as many members as are appointed by the
1-16     municipality that created the zone.  A unit may waive its right to
1-17     appoint a director.  [The governing body of the municipality that
1-18     created the zone may appoint not more than 10 directors to the
1-19     board; except that if there are fewer than five directors appointed
1-20     by taxing units other than the municipality, the governing body of
1-21     the municipality may appoint more than 10 members as long as the
1-22     total membership of the board does not exceed 15.]
1-23           (b)  If the zone was designated under Section 311.005(a)(5),
1-24     [the board of directors of the zone consists of nine members.  Each
 2-1     school district or county that levies taxes on real property in the
 2-2     zone] a taxing unit may appoint [one] a member of the board only if
 2-3     the [school district or county] unit has approved the payment of
 2-4     all or part of the tax increment produced by the unit.  The member
 2-5     of the state senate in whose district the zone is located is a
 2-6     member of the board, and the member of the state house of
 2-7     representatives in whose district the zone is located is a member
 2-8     of the board, except that either may designate another individual
 2-9     to serve in the member's place at the pleasure of the member.  If
2-10     the zone is located in more than one senate or house district, this
2-11     subsection applies only to the senator or representative in whose
2-12     district a larger portion of the zone is located than any other
2-13     senate or house district, as applicable.  [The remaining members of
2-14     the board are appointed by the governing body of the municipality
2-15     that created the zone.]
2-16           (c)  Members of the board are appointed for terms of two
2-17     years unless longer terms are provided under Article XI, Section
2-18     11, of the Texas Constitution.  Terms of members may be staggered.
2-19           (d)  A vacancy on the board is filled for the unexpired term
2-20     by appointment of the governing body of the taxing unit that
2-21     appointed the director who served in the vacant position.
2-22           (e)  To be eligible for appointment to the board by the
2-23     governing body of the municipality, an individual must:
2-24                 (1)  if the board is covered by Subsection (a):
2-25                       (A)  be a qualified voter of the municipality; or
2-26                       (B)  be at least 18 years of age and own real
2-27     property in the zone, whether or not the individual resides in the
 3-1     municipality; or
 3-2                 (2)  if the board is covered by Subsection (b):
 3-3                       (A)  be at least 18 years of age; and
 3-4                       (B)  own real property in the zone or be an
 3-5     employee or agent of a person that owns real property in the zone.
 3-6           (f)  Each year the [governing body of the municipality] board
 3-7     of directors of a reinvestment zone shall appoint one of its
 3-8     members [of the board] to serve as chairman for a term of one year
 3-9     that begins on January 1 of the following year.  The board of
3-10     directors may elect a vice-chairman to preside in the absence of
3-11     the chairman or when there is a vacancy in the office of chairman.
3-12     The board may elect other officers as it considers appropriate.
3-13           (g)  A member of the board of directors of a reinvestment
3-14     zone:
3-15                 (1)  is not a public official by virtue of that
3-16     position; and
3-17                 (2)  unless otherwise ineligible, may be appointed to
3-18     serve concurrently on the board of directors of a local government
3-19     corporation created under Subchapter D, Chapter 431, Transportation
3-20     Code.
3-21           SECTION 2.  This act takes effect September 1, 2001.