By Hope H.B. No. 3633
77R10990 ATP-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the East Montgomery County Improvement
1-3 District.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4, Chapter 1316, Acts of the 75th
1-6 Legislature, Regular Session, 1997, is amended to read as follows:
1-7 Sec. 4. BOUNDARIES. The boundaries of the district are
1-8 coextensive with the boundaries of the New Caney Independent School
1-9 District and the Splendora Independent School District as those
1-10 boundaries existed on January 1, 1997, but the district does not
1-11 include any portion of the City of Houston as it existed on January
1-12 1, 1997, and does not include any portion of the New Caney
1-13 Independent School District, as the boundaries of the school
1-14 district exist on September 1, 2001, or as they may exist in the
1-15 future, located in Harris County.
1-16 SECTION 2. Section 11, Chapter 1316, Acts of the 75th
1-17 Legislature, Regular Session, 1997, is amended to read as follows:
1-18 Sec. 11. ADMINISTRATION OF BOARD. (a) Sections 375.066
1-19 through 375.070, Local Government Code, apply to the board as if it
1-20 were established under Chapter 375, Local Government Code.
1-21 (b) After the directors have been selected and have
1-22 qualified as provided by Subsection (a) of this section, they shall
1-23 organize or reorganize by electing a chair, a vice chair, a
1-24 secretary, and other officers of the board as the board considers
2-1 necessary.
2-2 SECTION 3. Section 16, Chapter 1316, Acts of the 75th
2-3 Legislature, Regular Session, 1997, is amended by amending
2-4 Subsection (b) and adding Subsection (e) to read as follows:
2-5 (b) The district may not employ peace officers, but may
2-6 contract with off-duty peace officers to provide public safety and
2-7 security services in connection with a special event, holiday,
2-8 period with high traffic congestion, or similar circumstance and to
2-9 provide public safety and security services at district facilities
2-10 and property.
2-11 (e) The board may employ and establish the terms of
2-12 employment and compensation of an executive director or general
2-13 manager or any officer of the district the board considers
2-14 necessary.
2-15 SECTION 4. Section 21(d), Chapter 1316, Acts of the 75th
2-16 Legislature, Regular Session, 1997, is amended to read as follows:
2-17 (d) For purposes of this section:
2-18 (1) "taxable items" includes all items that would be
2-19 subject to any sales and use tax [that is] imposed by the county if
2-20 the county [has] imposed a sales and use tax; and
2-21 (2) "use," with respect to a taxable service, means
2-22 the derivation in the district of direct or indirect benefit from
2-23 the service.
2-24 SECTION 5. Section 22(a), Chapter 1316, Acts of the 75th
2-25 Legislature, Regular Session, 1997, is amended to read as follows:
2-26 (a) The board by order may call an election to adopt, change
2-27 the rate of, or abolish a sales and use tax, provided that the
3-1 board may not call an election to abolish a sales and use tax or to
3-2 reduce the rate of the sales and use tax below the amount pledged
3-3 to secure payment of any outstanding district debt while any
3-4 district debt remains outstanding. The election may be held at the
3-5 same time and in conjunction with a confirmation or directors
3-6 election.
3-7 SECTION 6. Section 23, Chapter 1316, Acts of the 75th
3-8 Legislature, Regular Session, 1997, is amended by adding Subsection
3-9 (d) to read as follows:
3-10 (d) The district is entitled to examine and receive
3-11 information related to the imposition and collection of sales and
3-12 use taxes to the same extent as if the district were a municipality
3-13 under Subchapter D, Chapter 321, Tax Code.
3-14 SECTION 7. Section 25, Chapter 1316, Acts of the 75th
3-15 Legislature, Regular Session, 1997, is amended to read as follows:
3-16 Sec. 25. TAX RATES. (a) The district may impose the sales
3-17 and use tax under this Act in increments of one-eighth of one
3-18 percent, with a minimum tax of one-half percent and a maximum tax
3-19 of two [one] percent.
3-20 (b) The district may not impose a sales and use tax of
3-21 greater than one percent unless the voters of the district have
3-22 approved, at an election called for such purpose and conducted
3-23 generally in accordance with Section 22 of this Act, the imposition
3-24 of a rate of one percent or less in addition to the existing one
3-25 percent rate. In the election, the ballot must permit voting for
3-26 or against the proposition: "The adoption of a local sales and use
3-27 tax imposed in the East Montgomery County Improvement District of
4-1 __________ (state percentage rate) percent in addition to the sales
4-2 and use tax that the East Montgomery County Improvement District is
4-3 currently authorized to impose at the rate of ___ (state percentage
4-4 rate) percent."
4-5 (c) If as a result of the imposition or increase in a sales
4-6 and use tax by the district as provided by Section 22 and
4-7 Subsection (b) of this section, the overlapping local sales and use
4-8 taxes in a municipality located within the boundaries of the
4-9 district will exceed two percent, the municipality's sales and use
4-10 tax is automatically reduced in that municipality to a rate that,
4-11 when added to the district's rate, does not exceed two percent.
4-12 (d) If the tax rate of a municipality is reduced in
4-13 accordance with Subsection (c), the comptroller shall withhold from
4-14 the district's monthly sales and use tax allocation an amount equal
4-15 to the amount that would have been collected by the municipality
4-16 had the district not imposed or increased its sales and use tax
4-17 less amounts that the municipality collects following the
4-18 district's levy of or increase in its sales and use tax. The
4-19 comptroller shall withhold and pay the amount withheld to the
4-20 municipality under policies or procedures that the comptroller
4-21 considers reasonable.
4-22 SECTION 8. Section 30A, Chapter 1316, Acts of the 75th
4-23 Legislature, Regular Session, 1997, is amended by adding Subsection
4-24 (d) to read as follows:
4-25 (d) To the extent consistent with the documents authorizing
4-26 the issuance of the district's bonds, the proceeds of bonds
4-27 remaining after the payment of the cost of issuing the bonds and
5-1 all costs associated with the projects for which the bonds were
5-2 sold may be spent by the district for any lawful purpose or for any
5-3 project the district is authorized to undertake.
5-4 SECTION 9. Section 33, Chapter 1316, Acts of the 75th
5-5 Legislature, Regular Session, 1997, is repealed.
5-6 SECTION 10. The legislature finds that the property to be
5-7 excluded from the district, as provided by Section 1 of this Act,
5-8 is undeveloped or residential in character, there is no retail
5-9 activity within that area that would generate sales tax revenues,
5-10 and the area is not generating and is not projected in the
5-11 foreseeable future to generate sales tax or other revenues to the
5-12 district, and therefore the exclusion of that land will not have an
5-13 adverse effect on the district's ability to pay its outstanding
5-14 debt.
5-15 SECTION 11. The legislature finds that:
5-16 (1) the proper and legal notice of the intention to
5-17 introduce this Act, setting forth the general substance of this
5-18 Act, has been published as provided by law, and the notice and a
5-19 copy of this Act have been furnished to all persons to which they
5-20 are required to be furnished by the constitution and laws of this
5-21 state; and
5-22 (2) all requirements of the constitution and laws of
5-23 this state and the rules of the legislature with respect to the
5-24 notice, introduction, and passage of this Act have been fulfilled
5-25 and accomplished.
5-26 SECTION 12. This Act takes effect September 1, 2001.