1-1 By: Hope (Senate Sponsor - Bernsen) H.B. No. 3633
1-2 (In the Senate - Received from the House May 7, 2001;
1-3 May 7, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 10, 2001, reported favorably by
1-5 the following vote: Yeas 5, Nays 0; May 10, 2001, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the operation of the East Montgomery County Improvement
1-10 District.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 4, Chapter 1316, Acts of the 75th
1-13 Legislature, Regular Session, 1997, is amended to read as follows:
1-14 Sec. 4. BOUNDARIES. The boundaries of the district are
1-15 coextensive with the boundaries of the New Caney Independent School
1-16 District and the Splendora Independent School District as those
1-17 boundaries existed on January 1, 1997, but the district does not
1-18 include any portion of the City of Houston as it existed on January
1-19 1, 1997, and does not include any portion of the New Caney
1-20 Independent School District, as the boundaries of the school
1-21 district exist on September 1, 2001, or as they may exist in the
1-22 future, located in Harris County.
1-23 SECTION 2. Section 11, Chapter 1316, Acts of the 75th
1-24 Legislature, Regular Session, 1997, is amended to read as follows:
1-25 Sec. 11. ADMINISTRATION OF BOARD. (a) Sections 375.066
1-26 through 375.070, Local Government Code, apply to the board as if it
1-27 were established under Chapter 375, Local Government Code.
1-28 (b) After the directors have been selected and have
1-29 qualified as provided by Subsection (a) of this section, they shall
1-30 organize or reorganize by electing a chair, a vice chair, a
1-31 secretary, and other officers of the board as the board considers
1-32 necessary.
1-33 SECTION 3. Section 16, Chapter 1316, Acts of the 75th
1-34 Legislature, Regular Session, 1997, is amended by amending
1-35 Subsection (b) and adding Subsection (e) to read as follows:
1-36 (b) The district may not employ peace officers, but may
1-37 contract with off-duty peace officers to provide public safety and
1-38 security services in connection with a special event, holiday,
1-39 period with high traffic congestion, or similar circumstance and to
1-40 provide public safety and security services at district facilities
1-41 and property.
1-42 (e) The board may employ and establish the terms of
1-43 employment and compensation of an executive director or general
1-44 manager or any officer of the district the board considers
1-45 necessary.
1-46 SECTION 4. Section 21(d), Chapter 1316, Acts of the 75th
1-47 Legislature, Regular Session, 1997, is amended to read as follows:
1-48 (d) For purposes of this section:
1-49 (1) "taxable items" includes all items that would be
1-50 subject to any sales and use tax [that is] imposed by the county if
1-51 the county [has] imposed a sales and use tax; and
1-52 (2) "use," with respect to a taxable service, means
1-53 the derivation in the district of direct or indirect benefit from
1-54 the service.
1-55 SECTION 5. Section 22(a), Chapter 1316, Acts of the 75th
1-56 Legislature, Regular Session, 1997, is amended to read as follows:
1-57 (a) The board by order may call an election to adopt, change
1-58 the rate of, or abolish a sales and use tax, provided that the
1-59 board may not call an election to abolish a sales and use tax or to
1-60 reduce the rate of the sales and use tax below the amount pledged
1-61 to secure payment of any outstanding district debt while any
1-62 district debt remains outstanding. The election may be held at the
1-63 same time and in conjunction with a confirmation or directors
1-64 election.
2-1 SECTION 6. Section 23, Chapter 1316, Acts of the 75th
2-2 Legislature, Regular Session, 1997, is amended by adding Subsection
2-3 (d) to read as follows:
2-4 (d) The district is entitled to examine and receive
2-5 information related to the imposition and collection of sales and
2-6 use taxes to the same extent as if the district were a municipality
2-7 under Subchapter D, Chapter 321, Tax Code.
2-8 SECTION 7. Section 25, Chapter 1316, Acts of the 75th
2-9 Legislature, Regular Session, 1997, is amended to read as follows:
2-10 Sec. 25. TAX RATES. (a) The district may impose the sales
2-11 and use tax under this Act in increments of one-eighth of one
2-12 percent, with a minimum tax of one-half percent and a maximum tax
2-13 of two [one] percent.
2-14 (b) The district may not impose a sales and use tax of
2-15 greater than one percent unless the voters of the district have
2-16 approved, at an election called for such purpose and conducted
2-17 generally in accordance with Section 22 of this Act, the imposition
2-18 of a rate of one percent or less in addition to the existing one
2-19 percent rate. In the election, the ballot must permit voting for
2-20 or against the proposition: "The adoption of a local sales and use
2-21 tax imposed in the East Montgomery County Improvement District of
2-22 __________ (state percentage rate) percent in addition to the sales
2-23 and use tax that the East Montgomery County Improvement District is
2-24 currently authorized to impose at the rate of ___ (state percentage
2-25 rate) percent."
2-26 (c) If as a result of the imposition or increase in a sales
2-27 and use tax by the district as provided by Section 22 and
2-28 Subsection (b) of this section, the overlapping local sales and use
2-29 taxes in a municipality located within the boundaries of the
2-30 district will exceed two percent, the municipality's sales and use
2-31 tax is automatically reduced in that municipality to a rate that,
2-32 when added to the district's rate, does not exceed two percent.
2-33 (d) If the tax rate of a municipality is reduced in
2-34 accordance with Subsection (c), the comptroller shall withhold from
2-35 the district's monthly sales and use tax allocation an amount equal
2-36 to the amount that would have been collected by the municipality
2-37 had the district not imposed or increased its sales and use tax
2-38 less amounts that the municipality collects following the
2-39 district's levy of or increase in its sales and use tax. The
2-40 comptroller shall withhold and pay the amount withheld to the
2-41 municipality under policies or procedures that the comptroller
2-42 considers reasonable.
2-43 SECTION 8. Section 30A, Chapter 1316, Acts of the 75th
2-44 Legislature, Regular Session, 1997, is amended by adding Subsection
2-45 (d) to read as follows:
2-46 (d) To the extent consistent with the documents authorizing
2-47 the issuance of the district's bonds, the proceeds of bonds
2-48 remaining after the payment of the cost of issuing the bonds and
2-49 all costs associated with the projects for which the bonds were
2-50 sold may be spent by the district for any lawful purpose or for any
2-51 project the district is authorized to undertake.
2-52 SECTION 9. Section 33, Chapter 1316, Acts of the 75th
2-53 Legislature, Regular Session, 1997, is repealed.
2-54 SECTION 10. The legislature finds that the property to be
2-55 excluded from the district, as provided by Section 1 of this Act,
2-56 is undeveloped or residential in character, there is no retail
2-57 activity within that area that would generate sales tax revenues,
2-58 and the area is not generating and is not projected in the
2-59 foreseeable future to generate sales tax or other revenues to the
2-60 district, and therefore the exclusion of that land will not have an
2-61 adverse effect on the district's ability to pay its outstanding
2-62 debt.
2-63 SECTION 11. The legislature finds that:
2-64 (1) the proper and legal notice of the intention to
2-65 introduce this Act, setting forth the general substance of this
2-66 Act, has been published as provided by law, and the notice and a
2-67 copy of this Act have been furnished to all persons to which they
2-68 are required to be furnished by the constitution and laws of this
2-69 state; and
3-1 (2) all requirements of the constitution and laws of
3-2 this state and the rules of the legislature with respect to the
3-3 notice, introduction, and passage of this Act have been fulfilled
3-4 and accomplished.
3-5 SECTION 12. This Act takes effect September 1, 2001.
3-6 * * * * *