By Lindsay S.B. No. 647
77R6220 MXM-D
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, 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
2-1 the purposes of Section 52, Article III, Section 59, Article XVI,
2-2 and Section 52-a, Article III, Texas Constitution, and other public
2-3 purposes stated in this subchapter.
2-4 Sec. 376.453. DEFINITIONS. In this subchapter:
2-5 (1) "Board" means the board of directors of the
2-6 district.
2-7 (2) "County" means Harris County, Texas.
2-8 (3) "District" means the Old Town Spring Improvement
2-9 District.
2-10 Sec. 376.454. BOUNDARIES. The district includes all the
2-11 territory contained in the following described area:
2-12 BEGINNING at the intersection of the northwest line of the W. Smith
2-13 Survey, Abstract No. 706, and the south line of the I. & G. H.
2-14 Railroad right-of-way;
2-15 THENCE generally in a southeasterly direction along the south line
2-16 of the I. & G. H. Railroad right-of-way to its point of
2-17 intersection with the north line of Louetta Road;
2-18 THENCE generally in a westerly direction along the north line of
2-19 Louetta Road to its point of intersection with the east
2-20 right-of-way line of Lexington Boulevard;
2-21 THENCE generally in a northwesterly direction along the east
2-22 right-of-way line of Lexington Boulevard to its point of
2-23 intersection with the south right-of-way line of Spring-Cypress
2-24 Road;
2-25 THENCE generally in a northerly direction across the Spring-Cypress
2-26 Road and along the east right-of-way line of Wunsche Loop Road to
2-27 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 use
3-21 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.
3-27 (b) The creation of the district is in the public interest
4-1 and is essential to:
4-2 (1) further the public purposes of the development and
4-3 diversification of the economy of the state; and
4-4 (2) eliminate unemployment and underemployment and
4-5 develop or expand transportation and commerce.
4-6 (c) The district shall:
4-7 (1) promote the health, safety, and general welfare of
4-8 residents, merchants, landowners, employers, potential employees,
4-9 employees, visitors, consumers in the district, and the general
4-10 public;
4-11 (2) provide needed funding for the Old Town Spring
4-12 area to preserve, maintain, and enhance the economic health and
4-13 vitality of the area as a community and business center;
4-14 (3) provide and maintain common areas and facilities
4-15 in the district to ensure scenic beauty;
4-16 (4) provide inprovements in the district to promote
4-17 the welfare of the public, residents, merchants, and landowners in
4-18 the district; and
4-19 (5) further promote the health, safety, welfare, and
4-20 enjoyment of the public by providing pedestrian ways and by
4-21 landscaping and developing certain areas in the district, which are
4-22 necessary for the restoration, preservation, and enhancement of
4-23 scenic beauty.
4-24 (d) The district may not act as the agent or instrumentality
4-25 of any private interest even though many private interests will be
4-26 benefited by the district, as will the public.
4-27 Sec. 376.457. BOARD OF DIRECTORS. (a) In this section,
5-1 "commissioners court" means the commissioners court of the county.
5-2 (b) The district is governed by a board of five directors
5-3 occupying numbered positions.
5-4 (c) Except for the initial directors, the directors
5-5 occupying positions one, two, and three are appointed under this
5-6 section and the directors occupying positions four and five are
5-7 elected as provided by this section and Section 376.460.
5-8 (d) The commissioners court shall appoint:
5-9 (1) one person who leases a retail store or owns real
5-10 property in the district, who shall serve in position one for a
5-11 three-year term;
5-12 (2) one person who leases a retail store but does not
5-13 own real property in the district, who shall serve in position two
5-14 for a two-year term; and
5-15 (3) one person who owns real property in the district,
5-16 who shall serve in position three for a three-year term.
5-17 (e) Directors elected under Section 376.460 shall serve
5-18 two-year terms. To qualify as a candidate for position four, a
5-19 person must reside in the district. To qualify as a candidate for
5-20 position five, a person must lease a retail store or own real
5-21 property in the district.
5-22 (f) A term expires on December 31 of the appropriate year.
5-23 (g) In appointing directors under Subsection (d), the
5-24 commissioners court shall consider any recommendations received by
5-25 an organization dedicated to the economic development of the Old
5-26 Town Spring area of the county.
5-27 Sec. 376.458. ADMINISTRATION OF BOARD. Sections
6-1 375.066-375.070 apply to the board as if it were established under
6-2 Chapter 375.
6-3 Sec. 376.459. RESTRICTION ON VOTING. The president of the
6-4 board may not vote except to break a tie vote.
6-5 Sec. 376.460. ELECTION OF DIRECTORS. (a) The board shall
6-6 call and hold an election of directors for positions four and five
6-7 in each odd-numbered year on the uniform election date in May
6-8 established by Section 41.001, Election Code.
6-9 (b) Notice of a directors election must:
6-10 (1) state the day and place for holding the election;
6-11 (2) state the number of directors to be voted on; and
6-12 (3) describe the qualifications of the positions for
6-13 which the candidates are running.
6-14 (c) The ballots for a directors election shall provide the
6-15 names of the candidates for each position and describe the
6-16 qualifications of the position for which the candidates are
6-17 running.
6-18 (d) Immediately after the directors election, the presiding
6-19 judge shall take the election returns to the board. The board
6-20 shall canvass the returns and certify that the persons receiving
6-21 the highest number of votes for each position are elected as
6-22 directors for that position.
6-23 Sec. 376.461. GENERAL POWERS. The district has:
6-24 (1) all powers necessary or required to accomplish the
6-25 purposes for which the district was created;
6-26 (2) the powers and duties of a municipal management
6-27 district under Subchapter E, Chapter 375; and
7-1 (3) the powers given to an industrial development
7-2 corporation organized under the Development Corporation Act of 1979
7-3 (Article 5190.6, Vernon's Texas Civil Statutes).
7-4 Sec. 376.462. SPECIFIC POWERS AND LIMITATIONS. (a) The
7-5 district may:
7-6 (1) impose and collect, and apply the proceeds from, a
7-7 limited sales and use tax for the district's purposes;
7-8 (2) borrow money for the corporate purposes of the
7-9 district;
7-10 (3) add or exclude territory in the manner provided by
7-11 Subchapter J, Chapter 49, Water Code;
7-12 (4) contract with a person to accomplish the
7-13 district's purposes, including entering into a contract for the
7-14 payment of costs incurred by the person on behalf of the district,
7-15 including all or part of the costs of an improvement project, from
7-16 tax proceeds or any other specified source of money;
7-17 (5) contract with a person to receive, administer, and
7-18 perform the district's duties under a gift, grant, loan,
7-19 conveyance, transfer, bequest, donation, or other financial
7-20 arrangement relating to the investigation, planning, analysis,
7-21 acquisition, construction, completion, implementation, or operation
7-22 of a proposed or existing improvement project;
7-23 (6) establish and collect user fees, concession fees,
7-24 admission fees, rental fees, or other similar fees or charges and
7-25 apply the proceeds from those fees or charges for the enjoyment,
7-26 sale, rental, or other use of the district's facilities, services,
7-27 or improvement projects;
8-1 (7) adopt rules for:
8-2 (A) the administration and operation of the
8-3 district;
8-4 (B) the use, enjoyment, availability,
8-5 protection, security, and maintenance of the district's
8-6 facilities; and
8-7 (C) the provision of public safety and security
8-8 in the district;
8-9 (8) provide or secure the payment or repayment of any
8-10 district expense, including:
8-11 (A) a district cost relating to an improvement
8-12 project;
8-13 (B) a district contractual obligation or
8-14 indebtedness, because of a lease, installment purchase contract, or
8-15 other agreement; or
8-16 (C) a tax, user fee, concession fee, rental fee,
8-17 or other revenue or resources of the district; and
8-18 (9) undertake improvement projects separately or
8-19 jointly with other persons or entities and pay all or part of the
8-20 costs of improvement projects, including improvement projects that:
8-21 (A) improve, enhance, or support public safety
8-22 and security, fire protection, emergency medical services, or law
8-23 enforcement in the district;
8-24 (B) confer a general benefit on the entire
8-25 district and the areas adjacent to the district; or
8-26 (C) confer a special benefit on all or part of
8-27 the district.
9-1 (b) The district may not employ peace officers.
9-2 (c) The district may not impose an ad valorem tax on
9-3 property in the district.
9-4 (d) The district may, as if the district was a home-rule
9-5 municipality with a population of more than 100,000:
9-6 (1) issue bonds and lease, acquire, or construct a
9-7 building or facility as provided by Section 380.002; and
9-8 (2) establish and administer a program as provided by
9-9 Subchapter A, Chapter 1509, Government Code.
9-10 Sec. 376.463. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An
9-11 improvement project or service provided by the district may
9-12 include:
9-13 (1) the construction, acquisition, lease, rental,
9-14 installment purchase, improvement, rehabilitation, repair,
9-15 relocation, and operation of:
9-16 (A) landscaping; lighting, banners, or signs;
9-17 streets or sidewalks; pedestrian or bicycle paths and trails;
9-18 pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
9-19 right-of-way or transit corridor beautification and improvements;
9-20 (B) drainage or storm water detention
9-21 improvements and solid waste, water, sewer, or power facilities and
9-22 services, including electrical, gas, steam, and chilled water
9-23 facilities and services;
9-24 (C) parks, lakes, gardens, recreational
9-25 facilities, open space, scenic areas, and related exhibits and
9-26 preserves; fountains, plazas, or pedestrian malls; public art or
9-27 sculpture and related exhibits and facilities and educational or
10-1 cultural exhibits and facilities, including exhibits, displays,
10-2 attractions, or facilities for special events, holidays, or
10-3 seasonal or cultural celebrations;
10-4 (D) off-street parking facilities, bus
10-5 terminals, heliports, mass-transit, and roadway or water
10-6 transportation systems; and
10-7 (E) other public improvements, facilities, or
10-8 services similar to the improvements, facilities, or services
10-9 described by Paragraphs (A)-(D);
10-10 (2) the cost of removal, razing, demolition, or
10-11 clearing of land or improvements in connection with providing an
10-12 improvement project;
10-13 (3) the acquisition of property or an interest in the
10-14 property that is made in connection with an authorized improvement
10-15 project; and
10-16 (4) the provision of special or supplemental services
10-17 to improve or promote the area in the district or to protect the
10-18 public health and safety in the district, including advertising,
10-19 promotion, tourism, health and sanitation, public safety, security,
10-20 fire protection or emergency medical services, business
10-21 recruitment, development, elimination of traffic congestion, and
10-22 recreational, educational, or cultural improvements, enhancements,
10-23 or services.
10-24 Sec. 376.464. RELATION TO OTHER LAW. If a law referenced in
10-25 Section 376.461 or referenced in Subchapter E, Chapter 375, is in
10-26 conflict with or inconsistent with this subchapter, this subchapter
10-27 prevails. A law referenced in Section 376.461 or Subchapter E,
11-1 Chapter 375, that is not in conflict with or inconsistent with this
11-2 subchapter is adopted and incorporated by reference and may be used
11-3 by the district independently of each other.
11-4 Sec. 376.465. NO EMINENT DOMAIN POWER. The district may not
11-5 exercise the power of eminent domain.
11-6 Sec. 376.466. SALES AND USE TAX; EXCISE TAX. (a) For
11-7 purposes of this section:
11-8 (1) "Taxable items" includes all items subject to any
11-9 sales and use tax that is imposed by the county if the county has
11-10 imposed a sales and use tax.
11-11 (2) "Use," with respect to a taxable service, means
11-12 the derivation in the district of a direct or indirect benefit from
11-13 the service.
11-14 (b) The district may impose a sales and use tax for the
11-15 benefit of the district if authorized by a majority of the
11-16 qualified voters of the district voting at an election called for
11-17 that purpose.
11-18 (c) If the district adopts the tax:
11-19 (1) a tax is imposed on the receipts from the sale at
11-20 retail of taxable items in the district; and
11-21 (2) an excise tax is imposed on the use, storage, or
11-22 other consumption in the district of taxable items purchased or
11-23 rented from a retailer during the period that the tax is effective
11-24 in the district.
11-25 (d) The rate of the excise tax is the same as the rate of
11-26 the sales tax portion of the tax applied to the sales price of the
11-27 taxable items and is included in the sales tax.
12-1 Sec. 376.467. TAX ELECTION PROCEDURES. (a) The board by
12-2 order may call an election to adopt, change the rate of, or abolish
12-3 a sales and use tax. The election may be held at the same time and
12-4 in conjunction with a confirmation or directors election.
12-5 (b) The election must be held on the next uniform election
12-6 date that falls on or after the 45th day after the date the order
12-7 calling the election is adopted.
12-8 (c) Notice of the election shall be given and the election
12-9 shall be held and conducted in the manner prescribed for bond
12-10 elections under Subchapter D, Chapter 49, Water Code.
12-11 (d) In an election to adopt the tax, the ballot shall be
12-12 prepared to permit voting for or against the proposition: "The
12-13 adoption of a local sales and use tax in the Old Town Spring
12-14 Improvement District at the rate of (proposed tax rate)."
12-15 (e) In an election to change the rate of the tax, the ballot
12-16 shall be prepared to permit voting for or against the proposition:
12-17 "The (increase or decrease, as applicable) in the rate of the local
12-18 sales and use tax imposed in the Old Town Spring Improvement
12-19 District from (tax rate on election date) percent to (proposed tax
12-20 rate) percent."
12-21 (f) In an election to abolish the tax, the ballot shall be
12-22 prepared to permit voting for or against the proposition: "The
12-23 abolition of the local sales and use tax in the Old Town Spring
12-24 Improvement District."
12-25 Sec. 376.468. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
12-26 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
12-27 inconsistent with this subchapter, governs the application,
13-1 collection, and administration of the tax under this subchapter,
13-2 except Sections 323.401-323.406 and 323.505, Tax Code, do not
13-3 apply. Subtitles A and B, Title 2, and Chapter 151, Tax Code,
13-4 govern the administration and enforcement of the taxes under this
13-5 subchapter.
13-6 (b) Chapter 323, Tax Code, does not apply to the use and
13-7 allocation of revenues under this subchapter.
13-8 (c) In applying Chapter 323, Tax Code, the district's name
13-9 shall be substituted for references in that chapter to "the county"
13-10 and the board is substituted for references in that chapter to
13-11 "commissioners court."
13-12 Sec. 376.469. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
13-13 adoption of a tax rate or change in the tax rate takes effect after
13-14 the expiration of the first complete calendar quarter occurring
13-15 after the date on which the comptroller receives a notice of the
13-16 results of the election.
13-17 Sec. 376.470. TAX RATES. The district may impose the sales
13-18 and use tax under this subchapter in increments of one-eighth of
13-19 one percent, with a minimum tax of one-half percent and a maximum
13-20 tax of one percent.
13-21 Sec. 376.471. ABOLITION OF TAX RATE. The board by order may
13-22 abolish the local sales and use tax rate without an election.
13-23 Sec. 376.472. USE OF TAX. Taxes collected under this
13-24 subchapter may be used only for the purposes for which the district
13-25 was created.
13-26 Sec. 376.473. SUBMISSION OF ANNEXATION INFORMATION. Not
13-27 later than the 10th day after the date on which the district
14-1 annexes or excludes territory, the board shall send to the
14-2 comptroller a certified copy of any resolution, order, or ordinance
14-3 relating to the annexation or exclusion.
14-4 Sec. 376.474. BONDS. (a) The board may issue bonds as
14-5 provided by Subchapter J, Chapter 375.
14-6 (b) In addition to the sources described in Subchapter J,
14-7 Chapter 375, the bonds issued by the district may be secured and
14-8 made payable, wholly or partly, by a pledge of any part of the net
14-9 proceeds the district receives from a specified portion of not more
14-10 than one-half of the maximum sales and use tax amount authorized
14-11 and approved by voters of the district under Section 376.467.
14-12 (c) Sections 375.207 and 375.208 do not apply to bonds
14-13 issued under this section.
14-14 Sec. 376.475. CONTRACTING AUTHORITY. (a) The district may
14-15 contract with any person to carry out the purposes of this
14-16 subchapter on terms and for the period the board determines.
14-17 (b) Any person, including any type of governmental entity,
14-18 may contract with the district to carry out the purposes of this
14-19 subchapter.
14-20 Sec. 376.476. DISSOLUTION BY BOARD ORDER. The board by
14-21 order may dissolve the district at any time unless the district has
14-22 outstanding indebtedness or contractual obligations.
14-23 Sec. 376.477. DISSOLUTION BY PETITION OF OWNERS. (a) The
14-24 board by order shall dissolve the district if the board receives a
14-25 written petition signed by 75 percent or more of the individuals
14-26 who own real property in the district.
14-27 (b) After the date the district is dissolved, the district
15-1 may not levy taxes.
15-2 (c) If on the date the district is dissolved the district
15-3 has outstanding liabilities, the board shall, not later than the
15-4 30th day after the dissolution, adopt a resolution certifying each
15-5 outstanding liability. The county shall assume the outstanding
15-6 liabilities. The county shall collect the sales and use tax for
15-7 the district for the remainder of the calendar year. The county
15-8 may continue to collect the tax for an additional calendar year if
15-9 the commissioners court finds that the tax revenue is needed to
15-10 retire the district liabilities that were assumed by the county.
15-11 (d) The district may continue to operate for a period not to
15-12 exceed two months after carrying out the responsibilities required
15-13 by Subsection (c). The district is continued in effect for the
15-14 purpose of satisfying these responsibilities.
15-15 (e) If the district is continued in effect under Subsection
15-16 (d), the district is dissolved entirely on the first day of the
15-17 month following the month in which the board certifies to the
15-18 secretary of state that the district has satisfied the
15-19 responsibilities of Subsection (c).
15-20 Sec. 376.478. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
15-21 DISSOLUTION. (a) After the board orders the dissolution of the
15-22 district, the board shall transfer ownership of all district
15-23 property to the county, except as provided by Subsection (b).
15-24 (b) If, on the date on which the board orders the
15-25 dissolution, more than 50 percent of the district territory is in a
15-26 municipality, the board shall transfer ownership of the district's
15-27 property to the municipality.
16-1 SECTION 2. The legislature finds that:
16-2 (1) the proper and legal notice of the intention to
16-3 introduce this Act, setting forth the general substance of this
16-4 Act, has been published as provided by law, and the notice and a
16-5 copy of this Act have been furnished to all persons, agencies,
16-6 officials, or entities to which they are required to be furnished
16-7 by the constitution and laws of this state, including the governor,
16-8 who has submitted the notice and a copy of this Act to the Texas
16-9 Natural Resource Conservation Commission;
16-10 (2) the Texas Natural Resource Conservation Commission
16-11 has filed its recommendations relating to this Act with the
16-12 governor, lieutenant governor, and speaker of the house of
16-13 representatives within the required time;
16-14 (3) the general law relating to consent by political
16-15 subdivisions to the creation of districts with conservation,
16-16 reclamation, and road powers and the inclusion of land in those
16-17 districts has been complied with; and
16-18 (4) all requirements of the constitution and laws of
16-19 this state and the rules and procedures of the legislature with
16-20 respect to the notice, introduction, and passage of this Act have
16-21 been fulfilled and accomplished.
16-22 SECTION 3. (a) The initial board of directors of the Old
16-23 Town Spring Improvement District consists of:
16-24 Position No. Name of Board Member
16-25 1. Vance Fellers, who shall hold position one
16-26 described by Section 376.457(d)(1), Local
16-27 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 December 31, 2004, and the terms of
17-16 directors for positions 2, 4, and 5 expire on December 31, 2003.
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.