77R10622 MXM-D By Lindsay S.B. No. 647 Substitute the following for S.B. No. 647: By Ramsay C.S.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 Spring 1-9 Improvement District is created as a special district under Section 1-10 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, it has to provide to the area in 1-21 the district. The district is created to supplement and not 1-22 replace the county services provided in the area in the district. 1-23 (c) The creation of the district is essential to accomplish 1-24 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 2-27 said W. Smith Survey; 3-1 THENCE continuing in a northerly direction along the west line of 3-2 said tract 47 to its intersection with the northwest line of the 3-3 said W. Smith Survey; 3-4 THENCE in a northeasterly direction along the northwest line of the 3-5 said W. Smith Survey to the POINT OF BEGINNING. 3-6 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 3-7 boundaries and field notes of the district form a closure. If a 3-8 mistake is made in the field notes or in copying the field notes in 3-9 the legislative process, the mistake does not in any way affect the 3-10 district's: 3-11 (1) organization, existence, or validity; 3-12 (2) right to issue any type of bond for the purposes 3-13 for which the district is created or to pay the principal of and 3-14 interest on a bond; 3-15 (3) right to impose or collect an assessment or tax; 3-16 or 3-17 (4) legality or operation. 3-18 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE; 3-19 GENERAL DUTIES. (a) The district is created to serve a public use 3-20 and benefit. All the land and other property included in the 3-21 district will be benefited by the improvements and services to be 3-22 provided by the district under powers conferred by Section 52, 3-23 Article III, Section 59, Article XVI, and Section 52-a, Article 3-24 III, Texas Constitution, and other powers granted under this 3-25 subchapter. 3-26 (b) The creation of the district is in the public interest 3-27 and is essential to: 4-1 (1) further the public purposes of the development and 4-2 diversification of the economy of the state; and 4-3 (2) eliminate unemployment and underemployment and 4-4 develop or expand transportation and commerce. 4-5 (c) The district shall: 4-6 (1) promote the health, safety, and general welfare of 4-7 residents, merchants, landowners, employers, potential employees, 4-8 employees, visitors, consumers in the district, and the general 4-9 public; 4-10 (2) provide needed funding for the Old Town Spring 4-11 area to preserve, maintain, and enhance the economic health and 4-12 vitality of the area as a community and business center; 4-13 (3) provide and maintain common areas and facilities 4-14 in the district to ensure scenic beauty; 4-15 (4) provide improvements in the district to promote 4-16 the welfare of the public, residents, merchants, and landowners in 4-17 the district; and 4-18 (5) further promote the health, safety, welfare, and 4-19 enjoyment of the public by providing pedestrian ways and by 4-20 landscaping and developing certain areas in the district, which are 4-21 necessary for the restoration, preservation, and enhancement of 4-22 scenic beauty. 4-23 (d) The district may not act as the agent or instrumentality 4-24 of any private interest even though many private interests will be 4-25 benefited by the district, as will the public. 4-26 Sec. 376.457. BOARD OF DIRECTORS. (a) In this section, 4-27 "commissioners court" means the commissioners court of the county. 5-1 (b) The district is governed by a board of five directors 5-2 occupying numbered positions. 5-3 (c) Except for the initial directors, the directors 5-4 occupying positions one, two, and three are appointed under this 5-5 section and the directors occupying positions four and five are 5-6 elected as provided by this section and Section 376.460. 5-7 (d) The commissioners court shall appoint: 5-8 (1) one person who leases a retail store or owns real 5-9 property in the district, who shall serve in position one for a 5-10 three-year term; 5-11 (2) one person who leases a retail store but does not 5-12 own real property in the district, who shall serve in position two 5-13 for a two-year term; and 5-14 (3) one person who owns real property in the district, 5-15 who shall serve in position three for a three-year term. 5-16 (e) Directors elected under Section 376.460 shall serve 5-17 two-year terms. To qualify as a candidate for position four, a 5-18 person must reside in the district. To qualify as a candidate for 5-19 position five, a person must lease a retail store or own real 5-20 property in the district. 5-21 (f) A term expires on January 31 of the appropriate year. 5-22 (g) In appointing directors under Subsection (d), the 5-23 commissioners court shall consider any recommendations received by 5-24 an organization dedicated to the economic development of the Old 5-25 Town Spring area of the county. 5-26 Sec. 376.458. ADMINISTRATION OF BOARD. Sections 5-27 375.066-375.070 apply to the board as if it were established under 6-1 Chapter 375. 6-2 Sec. 376.459. RESTRICTION ON VOTING. The president of the 6-3 board may not vote except to break a tie vote. 6-4 Sec. 376.460. ELECTION OF DIRECTORS. (a) The board shall 6-5 call and hold an election of directors for positions four and five 6-6 in each even-numbered year on the uniform election date in January 6-7 established by Section 41.001, Election Code. 6-8 (b) Notice of a directors election must: 6-9 (1) state the day and place for holding the election; 6-10 (2) state the number of directors to be voted on; and 6-11 (3) describe the qualifications of the positions for 6-12 which the candidates are running. 6-13 (c) The ballots for a directors election shall provide the 6-14 names of the candidates for each position and describe the 6-15 qualifications of the position for which the candidates are 6-16 running. 6-17 (d) Immediately after the directors election, the presiding 6-18 judge shall take the election returns to the board. The board 6-19 shall canvass the returns and certify that the persons receiving 6-20 the highest number of votes for each position are elected as 6-21 directors for that position. 6-22 Sec. 376.461. GENERAL POWERS. The district has: 6-23 (1) all powers necessary or required to accomplish the 6-24 purposes for which the district was created; 6-25 (2) the powers and duties of a municipal management 6-26 district under Subchapter E, Chapter 375; and 6-27 (3) the powers given to an industrial development 7-1 corporation organized under the Development Corporation Act of 1979 7-2 (Article 5190.6, Vernon's Texas Civil Statutes). 7-3 Sec. 376.462. SPECIFIC POWERS AND LIMITATIONS. (a) The 7-4 district may: 7-5 (1) impose and collect, and apply the proceeds from, a 7-6 limited sales and use tax for the district's purposes; 7-7 (2) borrow money for the corporate purposes of the 7-8 district; 7-9 (3) add or exclude territory in the manner provided by 7-10 Subchapter J, Chapter 49, Water Code; 7-11 (4) contract with a person to accomplish the 7-12 district's purposes, including entering into a contract for the 7-13 payment of costs incurred by the person on behalf of the district, 7-14 including all or part of the costs of an improvement project, from 7-15 tax proceeds or any other specified source of money; 7-16 (5) contract with a person to receive, administer, and 7-17 perform the district's duties under a gift, grant, loan, 7-18 conveyance, transfer, bequest, donation, or other financial 7-19 arrangement relating to the investigation, planning, analysis, 7-20 acquisition, construction, completion, implementation, or operation 7-21 of a proposed or existing improvement project; 7-22 (6) establish and collect user fees, concession fees, 7-23 admission fees, rental fees, or other similar fees or charges and 7-24 apply the proceeds from those fees or charges for the enjoyment, 7-25 sale, rental, or other use of the district's facilities, services, 7-26 or improvement projects; 7-27 (7) adopt rules for: 8-1 (A) the administration and operation of the 8-2 district; 8-3 (B) the use, enjoyment, availability, 8-4 protection, security, and maintenance of the district's 8-5 facilities; and 8-6 (C) the provision of public safety and security 8-7 in the district; 8-8 (8) provide or secure the payment or repayment of any 8-9 district expense, including: 8-10 (A) a district cost relating to an improvement 8-11 project; 8-12 (B) a district contractual obligation or 8-13 indebtedness, because of a lease, installment purchase contract, or 8-14 other agreement; or 8-15 (C) a tax, user fee, concession fee, rental fee, 8-16 or other revenue or resources of the district; and 8-17 (9) undertake improvement projects separately or 8-18 jointly with other persons or entities and pay all or part of the 8-19 costs of improvement projects, including improvement projects that: 8-20 (A) improve, enhance, or support public safety 8-21 and security, fire protection, emergency medical services, or law 8-22 enforcement in the district; 8-23 (B) confer a general benefit on the entire 8-24 district and the areas adjacent to the district; or 8-25 (C) confer a special benefit on all or part of 8-26 the district. 8-27 (b) The district may not employ peace officers. 9-1 (c) The district may not impose an ad valorem tax on 9-2 property in the district. 9-3 (d) The district may, as if the district was a home-rule 9-4 municipality with a population of more than 100,000: 9-5 (1) issue bonds and lease, acquire, or construct a 9-6 building or facility as provided by Section 380.002; and 9-7 (2) establish and administer a program as provided by 9-8 Subchapter A, Chapter 1509, Government Code. 9-9 Sec. 376.463. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An 9-10 improvement project or service provided by the district may 9-11 include: 9-12 (1) the construction, acquisition, lease, rental, 9-13 installment purchase, improvement, rehabilitation, repair, 9-14 relocation, and operation of: 9-15 (A) landscaping; lighting, banners, or signs; 9-16 streets or sidewalks; pedestrian or bicycle paths and trails; 9-17 pedestrian walkways, skywalks, crosswalks, or tunnels; and highway 9-18 right-of-way or transit corridor beautification and improvements; 9-19 (B) drainage or storm water detention 9-20 improvements and solid waste, water, sewer, or power facilities and 9-21 services, including electrical, gas, steam, and chilled water 9-22 facilities and services; 9-23 (C) parks, lakes, gardens, recreational 9-24 facilities, open space, scenic areas, and related exhibits and 9-25 preserves; fountains, plazas, or pedestrian malls; public art or 9-26 sculpture and related exhibits and facilities and educational or 9-27 cultural exhibits and facilities, including exhibits, displays, 10-1 attractions, or facilities for special events, holidays, or 10-2 seasonal or cultural celebrations; 10-3 (D) off-street parking facilities, bus 10-4 terminals, heliports, mass-transit, and roadway or water 10-5 transportation systems; and 10-6 (E) other public improvements, facilities, or 10-7 services similar to the improvements, facilities, or services 10-8 described by Paragraphs (A)-(D); 10-9 (2) the cost of removal, razing, demolition, or 10-10 clearing of land or improvements in connection with providing an 10-11 improvement project; 10-12 (3) the acquisition of property or an interest in the 10-13 property that is made in connection with an authorized improvement 10-14 project; and 10-15 (4) the provision of special or supplemental services 10-16 to improve or promote the area in the district or to protect the 10-17 public health and safety in the district, including advertising, 10-18 promotion, tourism, health and sanitation, public safety, security, 10-19 fire protection or emergency medical services, business 10-20 recruitment, development, elimination of traffic congestion, and 10-21 recreational, educational, or cultural improvements, enhancements, 10-22 or services. 10-23 Sec. 376.464. RELATION TO OTHER LAW. If a law referenced in 10-24 Section 376.461 or referenced in Subchapter E, Chapter 375, is in 10-25 conflict with or inconsistent with this subchapter, this subchapter 10-26 prevails. A law referenced in Section 376.461 or Subchapter E, 10-27 Chapter 375, that is not in conflict with or inconsistent with this 11-1 subchapter is adopted and incorporated by reference and may be used 11-2 by the district independently of each other. 11-3 Sec. 376.465. NO EMINENT DOMAIN POWER. The district may not 11-4 exercise the power of eminent domain. 11-5 Sec. 376.466. SALES AND USE TAX; EXCISE TAX. (a) For 11-6 purposes of this section: 11-7 (1) "Taxable items" includes all items subject to any 11-8 sales and use tax that is imposed by the county if the county has 11-9 imposed a sales and use tax. 11-10 (2) "Use," with respect to a taxable service, means 11-11 the derivation in the district of a direct or indirect benefit from 11-12 the service. 11-13 (b) The district may impose a sales and use tax for the 11-14 benefit of the district if authorized by a majority of the 11-15 qualified voters of the district voting at an election called for 11-16 that purpose. 11-17 (c) If the district adopts the tax: 11-18 (1) a tax is imposed on the receipts from the sale at 11-19 retail of taxable items in the district; and 11-20 (2) an excise tax is imposed on the use, storage, or 11-21 other consumption in the district of taxable items purchased or 11-22 rented from a retailer during the period that the tax is effective 11-23 in the district. 11-24 (d) The rate of the excise tax is the same as the rate of 11-25 the sales tax portion of the tax applied to the sales price of the 11-26 taxable items and is included in the sales tax. 11-27 Sec. 376.467. TAX ELECTION PROCEDURES. (a) The board by 12-1 order may call an election to adopt, change the rate of, or abolish 12-2 a sales and use tax. The election may be held at the same time and 12-3 in conjunction with a confirmation or directors election. 12-4 (b) The election must be held on the next uniform election 12-5 date that falls on or after the 45th day after the date the order 12-6 calling the election is adopted. 12-7 (c) Notice of the election shall be given and the election 12-8 shall be held and conducted in the manner prescribed for bond 12-9 elections under Subchapter D, Chapter 49, Water Code. 12-10 (d) In an election to adopt the tax, the ballot shall be 12-11 prepared to permit voting for or against the proposition: "The 12-12 adoption of a local sales and use tax in the Old Town Spring 12-13 Improvement District at the rate of (proposed tax rate)." 12-14 (e) In an election to change the rate of the tax, the ballot 12-15 shall be prepared to permit voting for or against the proposition: 12-16 "The (increase or decrease, as applicable) in the rate of the local 12-17 sales and use tax imposed in the Old Town Spring Improvement 12-18 District from (tax rate on election date) percent to (proposed tax 12-19 rate) percent." 12-20 (f) In an election to abolish the tax, the ballot shall be 12-21 prepared to permit voting for or against the proposition: "The 12-22 abolition of the local sales and use tax in the Old Town Spring 12-23 Improvement District." 12-24 Sec. 376.468. IMPOSITION, COMPUTATION, ADMINISTRATION, AND 12-25 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not 12-26 inconsistent with this subchapter, governs the application, 12-27 collection, and administration of the tax under this subchapter, 13-1 except Sections 323.401-323.406 and 323.505, Tax Code, do not 13-2 apply. Subtitles A and B, Title 2, and Chapter 151, Tax Code, 13-3 govern the administration and enforcement of the taxes under this 13-4 subchapter. 13-5 (b) Chapter 323, Tax Code, does not apply to the use and 13-6 allocation of revenues under this subchapter. 13-7 (c) In applying Chapter 323, Tax Code, the district's name 13-8 shall be substituted for references in that chapter to "the county" 13-9 and the board is substituted for references in that chapter to 13-10 "commissioners court." 13-11 Sec. 376.469. EFFECTIVE DATE OF TAX OR TAX CHANGE. The 13-12 adoption of a tax rate or change in the tax rate takes effect after 13-13 the expiration of the first complete calendar quarter occurring 13-14 after the date on which the comptroller receives a notice of the 13-15 results of the election. 13-16 Sec. 376.470. TAX RATES. The district may impose the sales 13-17 and use tax under this subchapter in increments of one-eighth of 13-18 one percent, with a minimum tax of one-half percent and a maximum 13-19 tax of one percent. 13-20 Sec. 376.471. ABOLITION OF TAX RATE. The board by order may 13-21 abolish the local sales and use tax rate without an election. 13-22 Sec. 376.472. USE OF TAX. Taxes collected under this 13-23 subchapter may be used only for the purposes for which the district 13-24 was created. 13-25 Sec. 376.473. SUBMISSION OF ANNEXATION INFORMATION. Not 13-26 later than the 10th day after the date on which the district 13-27 annexes or excludes territory, the board shall send to the 14-1 comptroller a certified copy of any resolution, order, or ordinance 14-2 relating to the annexation or exclusion. 14-3 Sec. 376.474. BONDS. (a) The board may issue bonds as 14-4 provided by Subchapter J, Chapter 375. 14-5 (b) In addition to the sources described in Subchapter J, 14-6 Chapter 375, the bonds issued by the district may be secured and 14-7 made payable, wholly or partly, by a pledge of any part of the net 14-8 proceeds the district receives from a specified portion of not more 14-9 than one-half of the maximum sales and use tax amount authorized 14-10 and approved by voters of the district under Section 376.467. 14-11 (c) Sections 375.207 and 375.208 do not apply to bonds 14-12 issued under this section. 14-13 Sec. 376.475. CONTRACTING AUTHORITY. (a) The district may 14-14 contract with any person to carry out the purposes of this 14-15 subchapter on terms and for the period the board determines. 14-16 (b) Any person, including any type of governmental entity, 14-17 may contract with the district to carry out the purposes of this 14-18 subchapter. 14-19 Sec. 376.476. DISSOLUTION BY BOARD ORDER. The board by 14-20 order may dissolve the district at any time unless the district has 14-21 outstanding indebtedness or contractual obligations. 14-22 Sec. 376.477. DISSOLUTION BY PETITION OF OWNERS. (a) The 14-23 board by order shall dissolve the district if the board receives a 14-24 written petition signed by 75 percent or more of the individuals 14-25 who own real property in the district. 14-26 (b) After the date the district is dissolved, the district 14-27 may not levy taxes. 15-1 (c) If on the date the district is dissolved the district 15-2 has outstanding liabilities, the board shall, not later than the 15-3 30th day after the dissolution, adopt a resolution certifying each 15-4 outstanding liability. The county shall assume the outstanding 15-5 liabilities. The county shall collect the sales and use tax for 15-6 the district for the remainder of the calendar year. The county 15-7 may continue to collect the tax for an additional calendar year if 15-8 the commissioners court finds that the tax revenue is needed to 15-9 retire the district liabilities that were assumed by the county. 15-10 (d) The district may continue to operate for a period not to 15-11 exceed two months after carrying out the responsibilities required 15-12 by Subsection (c). The district is continued in effect for the 15-13 purpose of satisfying these responsibilities. 15-14 (e) If the district is continued in effect under Subsection 15-15 (d), the district is dissolved entirely on the first day of the 15-16 month following the month in which the board certifies to the 15-17 secretary of state that the district has satisfied the 15-18 responsibilities of Subsection (c). 15-19 Sec. 376.478. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING 15-20 DISSOLUTION. (a) After the board orders the dissolution of the 15-21 district, the board shall transfer ownership of all district 15-22 property to the county, except as provided by Subsection (b). 15-23 (b) If, on the date on which the board orders the 15-24 dissolution, more than 50 percent of the district territory is in a 15-25 municipality, the board shall transfer ownership of the district's 15-26 property to the municipality. 15-27 SECTION 2. The legislature finds that: 16-1 (1) the proper and legal notice of the intention to 16-2 introduce this Act, setting forth the general substance of this 16-3 Act, has been published as provided by law, and the notice and a 16-4 copy of this Act have been furnished to all persons, agencies, 16-5 officials, or entities to which they are required to be furnished 16-6 by the constitution and laws of this state, including the governor, 16-7 who has submitted the notice and a copy of this Act to the Texas 16-8 Natural Resource Conservation Commission; 16-9 (2) the Texas Natural Resource Conservation Commission 16-10 has filed its recommendations relating to this Act with the 16-11 governor, lieutenant governor, and speaker of the house of 16-12 representatives within the required time; 16-13 (3) the general law relating to consent by political 16-14 subdivisions to the creation of districts with conservation, 16-15 reclamation, and road powers and the inclusion of land in those 16-16 districts has been complied with; and 16-17 (4) all requirements of the constitution and laws of 16-18 this state and the rules and procedures of the legislature with 16-19 respect to the notice, introduction, and passage of this Act have 16-20 been fulfilled and accomplished. 16-21 SECTION 3. (a) The initial board of directors of the Old 16-22 Town Spring Improvement District consists of: 16-23 Position No. Name of Board Member 16-24 1. Vance Fellers, who shall hold position one 16-25 described by Section 376.457(d)(1), Local 16-26 Government Code, as added by this Act; 17-1 2. Amy Doktor, who shall hold position two 17-2 described by Section 376.457(d)(2), Local 17-3 Government Code, as added by this Act; 17-4 3. Ed Weddle, who shall hold position three 17-5 described by Section 376.457(d)(3), Local 17-6 Government Code, as added by this Act; 17-7 4. Anatar Schubert, who shall hold position 17-8 four described by Section 376.457(e), Local 17-9 Government Code, as added by this Act; and 17-10 5. Mary Mallott Todeschini, who shall hold 17-11 position five described by Section 17-12 376.457(e), Local Government Code, as added 17-13 by this Act. 17-14 (b) Of the initial directors, the terms of directors for 17-15 positions 1 and 3 expire on January 31, 2005, and the terms of 17-16 directors for positions 2, 4, and 5 expire on January 31, 2004. 17-17 (c) Vance Fellers shall serve as the president of the 17-18 initial board. This subsection prevails over Section 375.068, 17-19 Local Government Code, to the extent of any inconsistency with that 17-20 section. 17-21 SECTION 4. (a) The initial board of directors under Section 17-22 3 of this Act shall meet as soon as practicable. The board shall 17-23 call an election to confirm the creation of the Old Town Spring 17-24 Improvement District created under Subchapter K, Chapter 376, Local 17-25 Government Code, as added by this Act. The board shall call the 17-26 confirmation election at the first meeting unless the board calls a 17-27 hearing to exclude territory from the district. 18-1 (b) The confirmation election shall be held in the manner 18-2 provided by Section 49.102, Water Code. The election must be held 18-3 on the first uniform election date provided by Section 41.001, 18-4 Election Code, that falls on or after the 45th day after the date 18-5 of the order calling the election. 18-6 (c) If a majority of the votes cast in the election are 18-7 against confirmation, the board may not call or hold another 18-8 confirmation election until the expiration of six months after the 18-9 date of the most recent confirmation election. 18-10 (d) Before the creation of the district is confirmed, the 18-11 district may not borrow money or impose taxes. The district may 18-12 carry on other business as the board determines. 18-13 SECTION 5. This Act takes effect September 1, 2001.