By Hope H.B. No. 3633
77R6666 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 it existed on January 1, 2001,
1-14 located in Harris County.
1-15 SECTION 2. Section 11, Chapter 1316, Acts of the 75th
1-16 Legislature, Regular Session, 1997, is amended to read as follows:
1-17 Sec. 11. ADMINISTRATION OF BOARD. (a) Sections 375.066
1-18 through 375.070, Local Government Code, apply to the board as if it
1-19 were established under Chapter 375, Local Government Code.
1-20 (b) After the directors have been selected and have
1-21 qualified as provided by Subsection (a) of this section, they shall
1-22 organize or reorganize by electing a chair, a vice chair, a
1-23 secretary, and other officers of the board as the board considers
1-24 necessary.
2-1 SECTION 3. Section 16, Chapter 1316, Acts of the 75th
2-2 Legislature, Regular Session, 1997, is amended by amending
2-3 Subsection (b) and adding Subsection (e) to read as follows:
2-4 (b) The district may not employ peace officers, but may
2-5 contract with off-duty peace officers to provide public safety and
2-6 security services in connection with a special event, holiday,
2-7 period with high traffic congestion, or similar circumstance and to
2-8 provide public safety and security services at district facilities
2-9 and property.
2-10 (e) The board may employ and establish the terms of
2-11 employment and compensation of an executive director or general
2-12 manager or any officer the board considers necessary.
2-13 SECTION 4. Section 21(d), Chapter 1316, Acts of the 75th
2-14 Legislature, Regular Session, 1997, is amended to read as follows:
2-15 (d) For purposes of this section:
2-16 (1) "taxable items" includes all items that would be
2-17 subject to any sales and use tax [that is] imposed by the county if
2-18 the county has imposed a sales and use tax; and
2-19 (2) "use," with respect to a taxable service, means
2-20 the derivation in the district of direct or indirect benefit from
2-21 the service.
2-22 SECTION 5. Section 22(a), Chapter 1316, Acts of the 75th
2-23 Legislature, Regular Session, 1997, is amended to read as follows:
2-24 (a) The board by order may call an election to adopt, change
2-25 the rate of, or abolish a sales and use tax, provided that the
2-26 board may not call an election to abolish a sales and use tax or to
2-27 reduce the rate of the sales and use tax below the amount pledged
3-1 to secure payment of any outstanding district debt while any
3-2 district debt remains outstanding. The election may be held at the
3-3 same time and in conjunction with a confirmation or directors
3-4 election.
3-5 SECTION 6. Section 23, Chapter 1316, Acts of the 75th
3-6 Legislature, Regular Session, 1997, is amended by adding Subsection
3-7 (d) to read as follows:
3-8 (d) The district is entitled to examine and receive
3-9 information related to the imposition and collection of sales and
3-10 use taxes to the same extent as if the district were a municipality
3-11 to which Section 321.3022, Tax Code, applies.
3-12 SECTION 7. Section 25, Chapter 1316, Acts of the 75th
3-13 Legislature, Regular Session, 1997, is amended to read as follows:
3-14 Sec. 25. TAX RATES. (a) The district may impose the sales
3-15 and use tax under this Act in increments of one-eighth of one
3-16 percent, with a minimum tax of one-half percent and a maximum tax
3-17 of two [one] percent.
3-18 (b) Notwithstanding Subsection (a), the district may only
3-19 impose a sales and use tax greater than one percent if the voters
3-20 within the district approve the change in the rate under Section
3-21 22.
3-22 (c) If as a result of the imposition or increase in a sales
3-23 and use tax by the district as provided by Section 22 and
3-24 Subsection (b) of this section, the overlapping local sales and use
3-25 taxes in a municipality located within the boundaries of the
3-26 district will exceed two percent, the municipality's sales and use
3-27 tax is automatically reduced in that municipality to a rate that,
4-1 when added to the district's rate, does not exceed two percent.
4-2 (d) If the tax rate of a municipality is reduced in
4-3 accordance with Subsection (c), the comptroller shall withhold from
4-4 the district's monthly sales and use tax allocation an amount equal
4-5 to the amount that would have been collected by the municipality
4-6 had the district not imposed or increased its sales and use tax
4-7 less amounts that the municipality collects following the
4-8 district's levy of or increase in its sales and use tax. The
4-9 comptroller shall withhold and pay the amount withheld to the
4-10 municipality under policies or procedures that the comptroller
4-11 considers reasonable.
4-12 SECTION 8. Section 30A, Chapter 1316, Acts of the 75th
4-13 Legislature, Regular Session, 1997, is amended by adding Subsection
4-14 (d) to read as follows:
4-15 (d) To the extent consistent with the documents authorizing
4-16 the issuance of the district's bonds, the proceeds of bonds
4-17 remaining after the payment of the cost of issuing the bonds and
4-18 all costs associated with the projects for which the bonds were
4-19 sold may be spent by the district for any lawful purpose or for any
4-20 project the district is authorized to undertake.
4-21 SECTION 9. Section 33, Chapter 1316, Acts of the 75th
4-22 Legislature, Regular Session, 1997, is repealed.
4-23 SECTION 10. The legislature finds that the property to be
4-24 excluded from the district, as provided by Section 1 of this Act,
4-25 is undeveloped or residential in character, there is no retail
4-26 activity within that area that would generate sales tax revenues,
4-27 and the area is not generating and is not projected in the
5-1 foreseeable future to generate sales tax or other revenues to the
5-2 district, and therefore the exclusion of that land will not have an
5-3 adverse effect on the district's ability to pay its outstanding
5-4 debt.
5-5 SECTION 11. The legislature finds that:
5-6 (1) the proper and legal notice of the intention to
5-7 introduce this Act, setting forth the general substance of this
5-8 Act, has been published as provided by law, and the notice and a
5-9 copy of this Act have been furnished to all persons to which they
5-10 are required to be furnished by the constitution and laws of this
5-11 state; and
5-12 (2) all requirements of the constitution and laws of
5-13 this state and the rules of the legislature with respect to the
5-14 notice, introduction, and passage of this Act have been fulfilled
5-15 and accomplished.
5-16 SECTION 12. This Act takes effect September 1, 2001.