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.