By: Lindsay S.B. No. 647
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Old Town Spring Improvement
1-3 District; providing authority to impose a tax and issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 376, Local Government Code, is amended by
1-6 adding Subchapter K to read as follows:
1-7 SUBCHAPTER K. OLD TOWN SPRING IMPROVEMENT DISTRICT
1-8 Sec. 376.451. CREATION OF DISTRICT. (a) The Old Town
1-9 Spring Improvement District is created as a special district under
1-10 Section 59, Article XVI, Texas Constitution.
1-11 (b) The board by resolution may change the district's name.
1-12 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of
1-13 the district is necessary to promote, develop, encourage, and
1-14 maintain employment, commerce, transportation, housing, tourism,
1-15 recreation, arts, entertainment, economic development, safety,
1-16 scenic beauty, and the public welfare in the Old Town Spring area
1-17 of Harris County.
1-18 (b) The creation of the district and this legislation do not
1-19 relieve the county from providing the level of services, as of the
1-20 effective date of this subchapter, to the area in the district or
1-21 release the county from the obligations it has to provide services
1-22 to that area. The district is created to supplement and not
1-23 supplant the county services provided in the area in the district.
1-24 (c) The creation of the district is essential to accomplish
1-25 the purposes of Section 52, Article III, Section 59, Article XVI,
2-1 and Section 52-a, Article III, Texas Constitution, and other public
2-2 purposes stated in this subchapter.
2-3 Sec. 376.453. DEFINITIONS. In this subchapter:
2-4 (1) "Board" means the board of directors of the
2-5 district.
2-6 (2) "County" means Harris County, Texas.
2-7 (3) "District" means the Old Town Spring Improvement
2-8 District.
2-9 Sec. 376.454. BOUNDARIES. The district includes all the
2-10 territory contained in the following described area:
2-11 BEGINNING at the intersection of the northwest line of the W. Smith
2-12 Survey, Abstract No. 706, and the south line of the I. & G. H.
2-13 Railroad right-of-way;
2-14 THENCE generally in a southeasterly direction along the south line
2-15 of the I. & G. H. Railroad right-of-way to its point of
2-16 intersection with the north line of Louetta Road;
2-17 THENCE generally in a westerly direction along the north line of
2-18 Louetta Road to its point of intersection with the east
2-19 right-of-way line of Lexington Boulevard;
2-20 THENCE generally in a northwesterly direction along the east
2-21 right-of-way line of Lexington Boulevard to its point of
2-22 intersection with the south right-of-way line of Spring-Cypress
2-23 Road;
2-24 THENCE generally in a northerly direction across the Spring-Cypress
2-25 Road and along the east right-of-way line of Wunsche Loop Road to
2-26 its point of intersection with the west line of tract 47 of the
3-1 said W. Smith Survey;
3-2 THENCE continuing in a northerly direction along the west line of
3-3 said tract 47 to its intersection with the northwest line of the
3-4 said W. Smith Survey;
3-5 THENCE in a northeasterly direction along the northwest line of the
3-6 said W. Smith Survey to the POINT OF BEGINNING.
3-7 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The
3-8 boundaries and field notes of the district form a closure. If a
3-9 mistake is made in the field notes or in copying the field notes in
3-10 the legislative process, the mistake does not in any way affect the
3-11 district's:
3-12 (1) organization, existence, or validity;
3-13 (2) right to issue any type of bond for the purposes
3-14 for which the district is created or to pay the principal of and
3-15 interest on a bond;
3-16 (3) right to impose or collect an assessment or tax;
3-17 or
3-18 (4) legality or operation.
3-19 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE;
3-20 GENERAL DUTIES. (a) The district is created to serve a public
3-21 use and benefit. All the land and other property included in the
3-22 district will be benefited by the improvements and services to be
3-23 provided by the district under powers conferred by Section 52,
3-24 Article III, Section 59, Article XVI, and Section 52-a, Article
3-25 III, Texas Constitution, and other powers granted under this
3-26 subchapter.
4-1 (b) The creation of the district is in the public interest
4-2 and is essential to:
4-3 (1) further the public purposes of the development and
4-4 diversification of the economy of the state; and
4-5 (2) eliminate unemployment and underemployment and
4-6 develop or expand transportation and commerce.
4-7 (c) The district shall:
4-8 (1) promote the health, safety, and general welfare of
4-9 residents, merchants, landowners, employers, potential employees,
4-10 employees, visitors, consumers in the district, and the general
4-11 public;
4-12 (2) provide needed funding for the Old Town Spring
4-13 area to preserve, maintain, and enhance the economic health and
4-14 vitality of the area as a community and business center;
4-15 (3) provide and maintain common areas and facilities
4-16 in the district to ensure scenic beauty;
4-17 (4) provide improvements in the district to promote
4-18 the welfare of the public, residents, merchants, and landowners in
4-19 the district; and
4-20 (5) further promote the health, safety, welfare, and
4-21 enjoyment of the public by providing pedestrian ways and by
4-22 landscaping and developing certain areas in the district which are
4-23 necessary for the restoration, preservation, and enhancement of
4-24 scenic beauty.
4-25 (d) The district may not act as the agent or instrumentality
4-26 of any private interest even though many private interests will be
5-1 benefited by the district, as will the public.
5-2 Sec. 376.457. BOARD OF DIRECTORS. (a) In this section,
5-3 "commissioners court" means the commissioners court of the county.
5-4 (b) The district is governed by a board of five directors
5-5 occupying numbered positions.
5-6 (c) Except for the initial directors, the directors
5-7 occupying positions one, two, and three are appointed under this
5-8 section and the directors occupying positions four and five are
5-9 elected as provided by this section and Section 376.460.
5-10 (d) The commissioners court shall appoint:
5-11 (1) one person who leases a retail store or owns real
5-12 property in the district, who shall serve in position one for a
5-13 three-year term;
5-14 (2) one person who leases a retail store but does not
5-15 own real property in the district, who shall serve in position two
5-16 for a two-year term; and
5-17 (3) one person who owns real property in the district,
5-18 who shall serve in position three for a three-year term.
5-19 (e) Directors elected under Section 376.460 shall serve
5-20 two-year terms. To qualify as a candidate for position four, a
5-21 person must reside in the district. To qualify as a candidate for
5-22 position five, a person must lease a retail store or own real
5-23 property in the district.
5-24 (f) A term expires on December 31 of the appropriate year.
5-25 (g) In appointing directors under Subsection (d), the
5-26 commissioners court shall consider any recommendations received by
6-1 an organization dedicated to the economic development of the Old
6-2 Town Spring area of the county.
6-3 Sec. 376.458. ADMINISTRATION OF BOARD. Sections
6-4 375.066-375.070 apply to the board as if it were established under
6-5 Chapter 375.
6-6 Sec. 376.459. RESTRICTION ON VOTING. The president of the
6-7 board may not vote except to break a tie vote.
6-8 Sec. 376.460. ELECTION OF DIRECTORS. (a) The board shall
6-9 call and hold an election of directors for positions four and five
6-10 in each odd-numbered year on the uniform election date in May
6-11 established by Section 41.001, Election Code.
6-12 (b) Notice of a directors election must:
6-13 (1) state the day and place for holding the election;
6-14 (2) state the number of directors to be voted on; and
6-15 (3) describe the qualifications of the positions for
6-16 which the candidates are running.
6-17 (c) The ballots for a directors election shall provide the
6-18 names of the candidates for each position and describe the
6-19 qualifications of the position for which the candidates are
6-20 running.
6-21 (d) Immediately after the directors election, the presiding
6-22 judge shall take the election returns to the board. The board
6-23 shall canvass the returns and certify that the persons receiving
6-24 the highest number of votes for each position are elected as
6-25 directors for that position.
6-26 Sec. 376.461. GENERAL POWERS. The district has:
7-1 (1) all powers necessary or required to accomplish the
7-2 purposes for which the district was created;
7-3 (2) the powers and duties of a municipal management
7-4 district under Subchapter E, Chapter 375; and
7-5 (3) the powers given to an industrial development
7-6 corporation organized under the Development Corporation Act of 1979
7-7 (Article 5190.6, Vernon's Texas Civil Statutes).
7-8 Sec. 376.462. SPECIFIC POWERS AND LIMITATIONS. (a) The
7-9 district may:
7-10 (1) impose and collect, and apply the proceeds from, a
7-11 limited sales and use tax for the district's purposes;
7-12 (2) borrow money for the corporate purposes of the
7-13 district;
7-14 (3) add or exclude territory in the manner provided by
7-15 Subchapter J, Chapter 49, Water Code;
7-16 (4) contract with a person to accomplish the
7-17 district's purposes, including entering into a contract for the
7-18 payment of costs incurred by the person on behalf of the district,
7-19 including all or part of the costs of an improvement project, from
7-20 tax proceeds or any other specified source of money;
7-21 (5) contract with a person to receive, administer, and
7-22 perform the district's duties under a gift, grant, loan,
7-23 conveyance, transfer, bequest, donation, or other financial
7-24 arrangement relating to the investigation, planning, analysis,
7-25 acquisition, construction, completion, implementation, or operation
7-26 of a proposed or existing improvement project;
8-1 (6) establish and collect user fees, concession fees,
8-2 admission fees, rental fees, or other similar fees or charges and
8-3 apply the proceeds from those fees or charges for the enjoyment,
8-4 sale, rental, or other use of the district's facilities, services,
8-5 or improvement projects;
8-6 (7) adopt rules for:
8-7 (A) the administration and operation of the
8-8 district;
8-9 (B) the use, enjoyment, availability,
8-10 protection, security, and maintenance of the district's
8-11 facilities; and
8-12 (C) the provision of public safety and security
8-13 in the district;
8-14 (8) provide or secure the payment or repayment of any
8-15 district expense, including:
8-16 (A) a district cost relating to an improvement
8-17 project;
8-18 (B) a district contractual obligation or
8-19 indebtedness, because of a lease, installment purchase contract, or
8-20 other agreement; or
8-21 (C) a tax, user fee, concession fee, rental fee,
8-22 or other revenue or resources of the district; and
8-23 (9) undertake improvement projects separately or
8-24 jointly with other persons or entities and pay all or part of the
8-25 costs of improvement projects, including improvement projects that:
8-26 (A) improve, enhance, or support public safety
9-1 and security, fire protection, emergency medical services, or law
9-2 enforcement in the district;
9-3 (B) confer a general benefit on the entire
9-4 district and the areas adjacent to the district; or
9-5 (C) confer a special benefit on all or part of
9-6 the district.
9-7 (b) The district may not employ peace officers.
9-8 (c) The district may not impose an ad valorem tax on
9-9 property in the district.
9-10 (d) The district may, as if the district was a home-rule
9-11 municipality with a population of more than 100,000:
9-12 (1) issue bonds and lease, acquire, or construct a
9-13 building or facility as provided by Section 380.002; and
9-14 (2) establish and administer a program as provided by
9-15 Subchapter A, Chapter 1509, Government Code.
9-16 Sec. 376.463. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An
9-17 improvement project or service provided by the district may
9-18 include:
9-19 (1) the construction, acquisition, lease, rental,
9-20 installment purchase, improvement, rehabilitation, repair,
9-21 relocation, and operation of:
9-22 (A) landscaping; lighting, banners, or signs;
9-23 streets or sidewalks; pedestrian or bicycle paths and trails;
9-24 pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
9-25 right-of-way or transit corridor beautification and improvements;
9-26 (B) drainage or storm water detention
10-1 improvements and solid waste, water, sewer, or power facilities and
10-2 services, including electrical, gas, steam, and chilled water
10-3 facilities and services;
10-4 (C) parks, lakes, gardens, recreational
10-5 facilities, open space, scenic areas, and related exhibits and
10-6 preserves; fountains, plazas, or pedestrian malls; public art or
10-7 sculpture and related exhibits and facilities and educational or
10-8 cultural exhibits and facilities, including exhibits, displays,
10-9 attractions, or facilities for special events, holidays, or
10-10 seasonal or cultural celebrations;
10-11 (D) off-street parking facilities, bus
10-12 terminals, heliports, mass transit, and roadway or water
10-13 transportation systems; and
10-14 (E) other public improvements, facilities, or
10-15 services similar to the improvements, facilities, or services
10-16 described by Paragraphs (A)-(D);
10-17 (2) the cost of removal, razing, demolition, or
10-18 clearing of land or improvements in connection with providing an
10-19 improvement project;
10-20 (3) the acquisition of property or an interest in the
10-21 property that is made in connection with an authorized improvement
10-22 project; and
10-23 (4) the provision of special or supplemental services
10-24 to improve or promote the area in the district or to protect the
10-25 public health and safety in the district, including advertising,
10-26 promotion, tourism, health and sanitation, public safety, security,
11-1 fire protection or emergency medical services, business
11-2 recruitment, development, elimination of traffic congestion, and
11-3 recreational, educational, or cultural improvements, enhancements,
11-4 or services.
11-5 Sec. 376.464. RELATION TO OTHER LAW. If a law referenced in
11-6 Section 376.461 or referenced in Subchapter E, Chapter 375, is in
11-7 conflict with or inconsistent with this subchapter, this subchapter
11-8 prevails. A law referenced in Section 376.461 or Subchapter E,
11-9 Chapter 375, that is not in conflict with or inconsistent with this
11-10 subchapter is adopted and incorporated by reference and may be used
11-11 by the district independently of each other.
11-12 Sec. 376.465. NO EMINENT DOMAIN POWER. The district may not
11-13 exercise the power of eminent domain.
11-14 Sec. 376.466. SALES AND USE TAX; EXCISE TAX. (a) For
11-15 purposes of this section:
11-16 (1) "Taxable items" includes all items subject to any
11-17 sales and use tax that is imposed by the county if the county has
11-18 imposed a sales and use tax.
11-19 (2) "Use," with respect to a taxable service, means
11-20 the derivation in the district of a direct or indirect benefit from
11-21 the service.
11-22 (b) The district may impose a sales and use tax for the
11-23 benefit of the district if authorized by a majority of the
11-24 qualified voters of the district voting at an election called for
11-25 that purpose.
11-26 (c) If the district adopts the tax:
12-1 (1) a tax is imposed on the receipts from the sale at
12-2 retail of taxable items in the district; and
12-3 (2) an excise tax is imposed on the use, storage, or
12-4 other consumption in the district of taxable items purchased or
12-5 rented from a retailer during the period that the tax is effective
12-6 in the district.
12-7 (d) The rate of the excise tax is the same as the rate of
12-8 the sales tax portion of the tax applied to the sales price of the
12-9 taxable items and is included in the sales tax.
12-10 Sec. 376.467. TAX ELECTION PROCEDURES. (a) The board by
12-11 order may call an election to adopt, change the rate of, or abolish
12-12 a sales and use tax. The election may be held at the same time and
12-13 in conjunction with a confirmation or directors election.
12-14 (b) The election must be held on the next uniform election
12-15 date that falls on or after the 45th day after the date the order
12-16 calling the election is adopted.
12-17 (c) Notice of the election shall be given and the election
12-18 shall be held and conducted in the manner prescribed for bond
12-19 elections under Subchapter D, Chapter 49, Water Code.
12-20 (d) In an election to adopt the tax, the ballot shall be
12-21 prepared to permit voting for or against the proposition: "The
12-22 adoption of a local sales and use tax in the Old Town Spring
12-23 Improvement District at the rate of (proposed tax rate)."
12-24 (e) In an election to change the rate of the tax, the ballot
12-25 shall be prepared to permit voting for or against the proposition:
12-26 "The (increase or decrease, as applicable) in the rate of the local
13-1 sales and use tax imposed in the Old Town Spring Improvement
13-2 District from (tax rate on election date) percent to (proposed tax
13-3 rate) percent."
13-4 (f) In an election to abolish the tax, the ballot shall be
13-5 prepared to permit voting for or against the proposition: "The
13-6 abolition of the local sales and use tax in the Old Town Spring
13-7 Improvement District."
13-8 Sec. 376.468. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
13-9 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
13-10 inconsistent with this subchapter, governs the application,
13-11 collection, and administration of the tax under this subchapter,
13-12 except Sections 323.401-323.406 and 323.505, Tax Code, do not
13-13 apply. Subtitles A and B, Title 2, and Chapter 151, Tax Code,
13-14 govern the administration and enforcement of the taxes under this
13-15 subchapter.
13-16 (b) Chapter 323, Tax Code, does not apply to the use and
13-17 allocation of revenues under this subchapter.
13-18 (c) In applying Chapter 323, Tax Code, the district's name
13-19 shall be substituted for references in that chapter to "the county"
13-20 and the board is substituted for references in that chapter to
13-21 "commissioners court."
13-22 Sec. 376.469. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
13-23 adoption of a tax rate or change in the tax rate takes effect after
13-24 the expiration of the first complete calendar quarter occurring
13-25 after the date on which the comptroller receives a notice of the
13-26 results of the election.
14-1 Sec. 376.470. TAX RATES. The district may impose the sales
14-2 and use tax under this subchapter in increments of one-eighth of
14-3 one percent, with a minimum tax of one-half percent and a maximum
14-4 tax of one percent.
14-5 Sec. 376.471. ABOLITION OF TAX RATE. The board by order may
14-6 abolish the local sales and use tax rate without an election.
14-7 Sec. 376.472. USE OF TAX. Taxes collected under this
14-8 subchapter may be used only for the purposes for which the district
14-9 was created.
14-10 Sec. 376.473. SUBMISSION OF ANNEXATION INFORMATION. Not
14-11 later than the 10th day after the date on which the district
14-12 annexes or excludes territory, the board shall send to the
14-13 comptroller a certified copy of any resolution, order, or ordinance
14-14 relating to the annexation or exclusion.
14-15 Sec. 376.474. BONDS. (a) The board may issue bonds as
14-16 provided by Subchapter J, Chapter 375.
14-17 (b) In addition to the sources described in Subchapter J,
14-18 Chapter 375, the bonds issued by the district may be secured and
14-19 made payable, wholly or partly, by a pledge of any part of the net
14-20 proceeds the district receives from a specified portion of not more
14-21 than one-half of the maximum sales and use tax amount authorized
14-22 and approved by voters of the district under Section 376.467.
14-23 (c) Sections 375.207 and 375.208 do not apply to bonds
14-24 issued under this section.
14-25 Sec. 376.475. CONTRACTING AUTHORITY. (a) The district may
14-26 contract with any person to carry out the purposes of this
15-1 subchapter on terms and for the period the board determines.
15-2 (b) Any person, including any type of governmental entity,
15-3 may contract with the district to carry out the purposes of this
15-4 subchapter.
15-5 Sec. 376.476. DISSOLUTION BY BOARD ORDER. The board by
15-6 order may dissolve the district at any time unless the district has
15-7 outstanding indebtedness or contractual obligations.
15-8 Sec. 376.477. DISSOLUTION BY PETITION OF OWNERS. (a) The
15-9 board by order shall dissolve the district if the board receives a
15-10 written petition signed by 75 percent or more of the individuals
15-11 who own real property in the district.
15-12 (b) After the date the district is dissolved, the district
15-13 may not levy taxes.
15-14 (c) If on the date the district is dissolved the district
15-15 has outstanding liabilities, the board shall, not later than the
15-16 30th day after the dissolution, adopt a resolution certifying each
15-17 outstanding liability. The county shall assume the outstanding
15-18 liabilities. The county shall collect the sales and use tax for
15-19 the district for the remainder of the calendar year. The county
15-20 may continue to collect the tax for an additional calendar year if
15-21 the commissioners court finds that the tax revenue is needed to
15-22 retire the district liabilities that were assumed by the county.
15-23 (d) The district may continue to operate for a period not to
15-24 exceed two months after carrying out the responsibilities required
15-25 by Subsection (c). The district is continued in effect for the
15-26 purpose of satisfying these responsibilities.
16-1 (e) If the district is continued in effect under Subsection
16-2 (d), the district is dissolved entirely on the first day of the
16-3 month following the month in which the board certifies to the
16-4 secretary of state that the district has satisfied the
16-5 responsibilities of Subsection (c).
16-6 Sec. 376.478. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
16-7 DISSOLUTION. (a) After the board orders the dissolution of the
16-8 district, the board shall transfer ownership of all district
16-9 property to the county, except as provided by Subsection (b).
16-10 (b) If, on the date on which the board orders the
16-11 dissolution, more than 50 percent of the district territory is in a
16-12 municipality, the board shall transfer ownership of the district's
16-13 property to the municipality.
16-14 SECTION 2. The legislature finds that:
16-15 (1) the proper and legal notice of the intention to
16-16 introduce this Act, setting forth the general substance of this
16-17 Act, has been published as provided by law, and the notice and a
16-18 copy of this Act have been furnished to all persons, agencies,
16-19 officials, or entities to which they are required to be furnished
16-20 by the constitution and laws of this state, including the governor,
16-21 who has submitted the notice and a copy of this Act to the Texas
16-22 Natural Resource Conservation Commission;
16-23 (2) the Texas Natural Resource Conservation Commission
16-24 has filed its recommendations relating to this Act with the
16-25 governor, lieutenant governor, and speaker of the house of
16-26 representatives within the required time;
17-1 (3) the general law relating to consent by political
17-2 subdivisions to the creation of districts with conservation,
17-3 reclamation, and road powers and the inclusion of land in those
17-4 districts has been complied with; and
17-5 (4) all requirements of the constitution and laws of
17-6 this state and the rules and procedures of the legislature with
17-7 respect to the notice, introduction, and passage of this Act have
17-8 been fulfilled and accomplished.
17-9 SECTION 3. (a) The initial board of directors of the Old
17-10 Town Spring Improvement District consists of:
17-11 Position No. Name of Board Member
17-12 1. Vance Fellers, who shall hold position one
17-13 described by Subdivision (1), Subsection
17-14 (d), Section 376.457, Local Government
17-15 Code, as added by this Act;
17-16 2. Amy Doktor, who shall hold position two
17-17 described by Subdivision (2), Subsection
17-18 (d), Section 376.457, Local Government
17-19 Code, as added by this Act;
17-20 3. Ed Weddle, who shall hold position three
17-21 described by Subdivision (3), Subsection
17-22 (d), Section 376.457, Local Government
17-23 Code, as added by this Act;
17-24 4. Anatar Schubert, who shall hold position
17-25 four described by Subsection (e), Section
17-26 376.457, Local Government Code, as added by
18-1 this Act; and
18-2 5. Mary Mallott Todeschini, who shall hold
18-3 position five described by Subsection (e),
18-4 Section 376.457, Local Government Code, as
18-5 added by this Act.
18-6 (b) Of the initial directors, the terms of directors for
18-7 positions 1 and 3 expire on December 31, 2004, and the terms of
18-8 directors for positions 2, 4, and 5 expire on December 31, 2003.
18-9 (c) Vance Fellers shall serve as the president of the
18-10 initial board. This subsection prevails over Section 375.068,
18-11 Local Government Code, to the extent of any inconsistency with that
18-12 section.
18-13 SECTION 4. (a) The initial board of directors under Section
18-14 3 of this Act shall meet as soon as practicable. The board shall
18-15 call an election to confirm the creation of the Old Town Spring
18-16 Improvement District created under Subchapter K, Chapter 376, Local
18-17 Government Code, as added by this Act. The board shall call the
18-18 confirmation election at the first meeting unless the board calls a
18-19 hearing to exclude territory from the district.
18-20 (b) The confirmation election shall be held in the manner
18-21 provided by Section 49.102, Water Code. The election must be held
18-22 on the first uniform election date provided by Section 41.001,
18-23 Election Code, that falls on or after the 45th day after the date
18-24 of the order calling the election.
18-25 (c) If a majority of the votes cast in the election are
18-26 against confirmation, the board may not call or hold another
19-1 confirmation election until the expiration of six months after the
19-2 date of the most recent confirmation election.
19-3 (d) Before the creation of the district is confirmed, the
19-4 district may not borrow money or impose taxes. The district may
19-5 carry on other business as the board determines.
19-6 SECTION 5. This Act takes effect September 1, 2001.