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.