1-1     By:  Lindsay                                           S.B. No. 647
 1-2           (In the Senate - Filed February 12, 2001; February 13, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; March 8, 2001, reported favorably by the following vote:
 1-5     Yeas 6, Nays 0; March 8, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation of the Old Town Spring Improvement
 1-9     District; providing authority to impose a tax and issue bonds.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-12     adding Subchapter K to read as follows:
1-13             SUBCHAPTER K.  OLD TOWN SPRING IMPROVEMENT DISTRICT
1-14           Sec. 376.451.  CREATION OF DISTRICT.  (a)  The Old Town
1-15     Spring Improvement District is created as a special district under
1-16     Section 59, Article XVI, Texas Constitution.
1-17           (b)  The board by resolution may change the district's name.
1-18           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-19     the district is necessary to promote, develop, encourage, and
1-20     maintain employment, commerce, transportation, housing, tourism,
1-21     recreation, arts, entertainment, economic development, safety,
1-22     scenic beauty, and the public welfare in the Old Town Spring area
1-23     of Harris County.
1-24           (b)  The creation of the district and this legislation do not
1-25     relieve the county from providing the level of services, as of the
1-26     effective date of this subchapter, to the area in the district or
1-27     release the county from the obligations it has to provide services
1-28     to that area.  The district is created to supplement and not
1-29     supplant the county services provided in the area in the district.
1-30           (c)  The creation of the district is essential to accomplish
1-31     the purposes of Section 52, Article III, Section 59, Article XVI,
1-32     and Section 52-a, Article III, Texas Constitution, and other public
1-33     purposes stated in this subchapter.
1-34           Sec. 376.453.  DEFINITIONS.  In this subchapter:
1-35                 (1)  "Board" means the board of directors of the
1-36     district.
1-37                 (2)  "County" means Harris County, Texas.
1-38                 (3)  "District" means the Old Town Spring Improvement
1-39     District.
1-40           Sec. 376.454.  BOUNDARIES.  The district includes all the
1-41     territory contained in the following described area:
1-42     BEGINNING at the intersection of the northwest line of the W. Smith
1-43     Survey, Abstract No. 706, and the south line of the I. & G. H.
1-44     Railroad right-of-way;
1-45     THENCE generally in a southeasterly direction along the south line
1-46     of the I. & G. H. Railroad right-of-way to its point of
1-47     intersection with the north line of Louetta Road;
1-48     THENCE generally in a westerly direction along the north line of
1-49     Louetta Road to its point of intersection with the east
1-50     right-of-way line of Lexington Boulevard;
1-51     THENCE generally in a northwesterly direction along the east
1-52     right-of-way line of Lexington Boulevard to its point of
1-53     intersection with the south right-of-way line of Spring-Cypress
1-54     Road;
1-55     THENCE generally in a northerly direction across the Spring-Cypress
1-56     Road and along the east right-of-way line of Wunsche Loop Road to
1-57     its point of intersection with the west line of tract 47 of the
1-58     said W. Smith Survey;
1-59     THENCE continuing in a northerly direction along the west line of
1-60     said tract 47 to its intersection with the northwest line of the
1-61     said W. Smith Survey;
1-62     THENCE in a northeasterly direction along the northwest line of the
1-63     said W. Smith Survey to the POINT OF BEGINNING.
1-64           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
 2-1     boundaries and field notes of the district form a closure.  If a
 2-2     mistake is made in the field notes or in copying the field notes in
 2-3     the legislative process, the mistake does not in any way affect the
 2-4     district's:
 2-5                 (1)  organization, existence, or validity;
 2-6                 (2)  right to issue any type of bond for the purposes
 2-7     for which the district is created or to pay the principal of and
 2-8     interest on a bond;
 2-9                 (3)  right to impose or collect an assessment or tax;
2-10     or
2-11                 (4)  legality or operation.
2-12           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE;
2-13     GENERAL DUTIES.  (a)  The district is created to serve a public use
2-14     and benefit.  All the land and other property included in the
2-15     district will be benefited by the improvements and services to be
2-16     provided by the district under powers conferred by Section 52,
2-17     Article III, Section 59, Article XVI, and Section 52-a, Article
2-18     III, Texas Constitution, and other powers granted under this
2-19     subchapter.
2-20           (b)  The creation of the district is in the public interest
2-21     and is essential to:
2-22                 (1)  further the public purposes of the development and
2-23     diversification of the economy of the state; and
2-24                 (2)  eliminate unemployment and underemployment and
2-25     develop or expand transportation and commerce.
2-26           (c)  The district shall:
2-27                 (1)  promote the health, safety, and general welfare of
2-28     residents, merchants, landowners, employers, potential employees,
2-29     employees, visitors, consumers in the district, and the general
2-30     public;
2-31                 (2)  provide needed funding for the Old Town Spring
2-32     area to preserve, maintain, and enhance the economic health and
2-33     vitality of the area as a community and business center;
2-34                 (3)  provide and maintain common areas and facilities
2-35     in the district to ensure scenic beauty;
2-36                 (4)  provide improvements in the district to promote
2-37     the welfare of the public, residents, merchants, and landowners in
2-38     the district; and
2-39                 (5)  further promote the health, safety, welfare, and
2-40     enjoyment of the public by providing pedestrian ways and by
2-41     landscaping and developing certain areas in the district which are
2-42     necessary for the restoration, preservation, and enhancement of
2-43     scenic beauty.
2-44           (d)  The district may not act as the agent or instrumentality
2-45     of any private interest even though many private interests will be
2-46     benefited by the district, as will the public.
2-47           Sec. 376.457.  BOARD OF DIRECTORS.  (a)  In this section,
2-48     "commissioners court" means the commissioners court of the county.
2-49           (b)  The district is governed by a board of five directors
2-50     occupying numbered positions.
2-51           (c)  Except for the initial directors, the directors
2-52     occupying positions one, two, and three are appointed under this
2-53     section and the directors occupying positions four and five are
2-54     elected as provided by this section and Section 376.460.
2-55           (d)  The commissioners court shall appoint:
2-56                 (1)  one person who leases a retail store or owns real
2-57     property in the district, who shall serve in position one for a
2-58     three-year term;
2-59                 (2)  one person who leases a retail store but does not
2-60     own real property in the district, who shall serve in position two
2-61     for a two-year term; and
2-62                 (3)  one person who owns real property in the district,
2-63     who shall serve in position three for a three-year term.
2-64           (e)  Directors elected under Section 376.460 shall serve
2-65     two-year terms.  To qualify as a candidate for position four, a
2-66     person must reside in the district.  To qualify as a candidate for
2-67     position five, a person must lease a retail store or own real
2-68     property in the district.
2-69           (f)  A term expires on December 31 of the appropriate year.
 3-1           (g)  In appointing directors under Subsection (d), the
 3-2     commissioners court shall consider any recommendations received by
 3-3     an organization dedicated to the economic development of the Old
 3-4     Town Spring area of the county.
 3-5           Sec. 376.458.  ADMINISTRATION OF BOARD.  Sections
 3-6     375.066-375.070 apply to the board as if it were established under
 3-7     Chapter 375.
 3-8           Sec. 376.459.  RESTRICTION ON VOTING.  The president of the
 3-9     board may not vote except to break a tie vote.
3-10           Sec. 376.460.  ELECTION OF DIRECTORS.  (a)  The board shall
3-11     call and hold an election of directors for positions four and five
3-12     in each odd-numbered year on the uniform election date in May
3-13     established by Section 41.001, Election Code.
3-14           (b)  Notice of a directors election must:
3-15                 (1)  state the day and place for holding the election;
3-16                 (2)  state the number of directors to be voted on; and
3-17                 (3)  describe the qualifications of the positions for
3-18     which the candidates are running.
3-19           (c)  The ballots for a directors election shall provide the
3-20     names of the candidates for each position and describe the
3-21     qualifications of the position for which the candidates are
3-22     running.
3-23           (d)  Immediately after the directors election, the presiding
3-24     judge shall take the election returns to the board.  The board
3-25     shall canvass the returns and certify that the persons receiving
3-26     the highest number of votes for each position are elected as
3-27     directors for that position.
3-28           Sec. 376.461.  GENERAL POWERS.  The district has:
3-29                 (1)  all powers necessary or required to accomplish the
3-30     purposes for which the district was created;
3-31                 (2)  the powers and duties of a municipal management
3-32     district under Subchapter E, Chapter 375; and
3-33                 (3)  the powers given to an industrial development
3-34     corporation organized under the Development Corporation Act of 1979
3-35     (Article 5190.6, Vernon's Texas Civil Statutes).
3-36           Sec. 376.462.  SPECIFIC POWERS AND LIMITATIONS.  (a)  The
3-37     district may:
3-38                 (1)  impose and collect, and apply the proceeds from, a
3-39     limited sales and use tax for the district's purposes;
3-40                 (2)  borrow money for the corporate purposes of the
3-41     district;
3-42                 (3)  add or exclude territory in the manner provided by
3-43     Subchapter J, Chapter 49, Water Code;
3-44                 (4)  contract with a person to accomplish the
3-45     district's purposes, including entering into a contract for the
3-46     payment of costs incurred by the person on behalf of the district,
3-47     including all or part of the costs of an improvement project, from
3-48     tax proceeds or any other specified source of money;
3-49                 (5)  contract with a person to receive, administer, and
3-50     perform the district's duties under a gift, grant, loan,
3-51     conveyance, transfer, bequest, donation, or other financial
3-52     arrangement relating to the investigation, planning, analysis,
3-53     acquisition, construction, completion, implementation, or operation
3-54     of a proposed or existing improvement project;
3-55                 (6)  establish and collect user fees, concession fees,
3-56     admission fees, rental fees, or other similar fees or charges and
3-57     apply the proceeds from those fees or charges for the enjoyment,
3-58     sale, rental, or other use of the district's facilities, services,
3-59     or improvement projects;
3-60                 (7)  adopt rules for:
3-61                       (A)  the administration and operation of the
3-62     district;
3-63                       (B)  the use, enjoyment, availability,
3-64     protection, security, and maintenance of the district's
3-65     facilities; and
3-66                       (C)  the provision of public safety and security
3-67     in the district;
3-68                 (8)  provide or secure the payment or repayment of any
3-69     district expense, including:
 4-1                       (A)  a district cost relating to an improvement
 4-2     project;
 4-3                       (B)  a district contractual obligation or
 4-4     indebtedness, because of a lease, installment purchase contract, or
 4-5     other agreement; or
 4-6                       (C)  a tax, user fee, concession fee, rental fee,
 4-7     or other revenue or resources of the district; and
 4-8                 (9)  undertake improvement projects separately or
 4-9     jointly with other persons or entities and pay all or part of the
4-10     costs of improvement projects, including improvement projects that:
4-11                       (A)  improve, enhance, or support public safety
4-12     and security, fire protection, emergency medical services, or law
4-13     enforcement in the district;
4-14                       (B)  confer a general benefit on the entire
4-15     district and the areas adjacent to the district; or
4-16                       (C)  confer a special benefit on all or part of
4-17     the district.
4-18           (b)  The district may not employ peace officers.
4-19           (c)  The district may not impose an ad valorem tax on
4-20     property in the district.
4-21           (d)  The district may, as if the district was a home-rule
4-22     municipality with a population of more than 100,000:
4-23                 (1)  issue bonds and lease, acquire, or construct a
4-24     building or facility as provided by Section 380.002; and
4-25                 (2)  establish and administer a program as provided by
4-26     Subchapter A, Chapter 1509, Government Code.
4-27           Sec. 376.463.  SPECIFIC POWERS RELATING TO IMPROVEMENTS.  An
4-28     improvement project or service provided by the district may
4-29     include:
4-30                 (1)  the construction, acquisition, lease, rental,
4-31     installment purchase, improvement, rehabilitation, repair,
4-32     relocation, and operation of:
4-33                       (A)  landscaping; lighting, banners, or signs;
4-34     streets or sidewalks; pedestrian or bicycle paths and trails;
4-35     pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
4-36     right-of-way or transit corridor beautification and improvements;
4-37                       (B)  drainage or storm water detention
4-38     improvements and solid waste, water, sewer, or power facilities and
4-39     services, including electrical, gas, steam, and chilled water
4-40     facilities and services;
4-41                       (C)  parks, lakes, gardens, recreational
4-42     facilities, open space, scenic areas, and related exhibits and
4-43     preserves; fountains, plazas, or pedestrian malls; public art or
4-44     sculpture and related exhibits and facilities and educational or
4-45     cultural exhibits and facilities, including exhibits, displays,
4-46     attractions, or facilities for special events, holidays, or
4-47     seasonal or cultural celebrations;
4-48                       (D)  off-street parking facilities, bus
4-49     terminals, heliports, mass transit, and roadway or water
4-50     transportation systems; and
4-51                       (E)  other public improvements, facilities, or
4-52     services similar to the improvements, facilities, or services
4-53     described by Paragraphs (A)-(D);
4-54                 (2)  the cost of removal, razing, demolition, or
4-55     clearing of land or improvements in connection with providing an
4-56     improvement project;
4-57                 (3)  the acquisition of property or an interest in the
4-58     property that is made in connection with an authorized improvement
4-59     project; and
4-60                 (4)  the provision of special or supplemental services
4-61     to improve or promote the area in the district or to protect the
4-62     public health and safety in the district, including advertising,
4-63     promotion, tourism, health and sanitation, public safety, security,
4-64     fire protection or emergency medical services, business
4-65     recruitment, development, elimination of traffic congestion, and
4-66     recreational, educational, or cultural improvements, enhancements,
4-67     or services.
4-68           Sec. 376.464.  RELATION TO OTHER LAW.  If a law referenced in
4-69     Section 376.461 or referenced in Subchapter E, Chapter 375, is in
 5-1     conflict with or inconsistent with this subchapter, this subchapter
 5-2     prevails.  A law referenced in Section 376.461 or Subchapter E,
 5-3     Chapter 375, that is not in conflict with or inconsistent with this
 5-4     subchapter is adopted and incorporated by reference and may be used
 5-5     by the district independently of each other.
 5-6           Sec. 376.465.  NO EMINENT DOMAIN POWER.  The district may not
 5-7     exercise the power of eminent domain.
 5-8           Sec. 376.466.  SALES AND USE TAX; EXCISE TAX.  (a)  For
 5-9     purposes of this section:
5-10                 (1)  "Taxable items" includes all items subject to any
5-11     sales and use tax that is imposed by the county if the county has
5-12     imposed a sales and use tax.
5-13                 (2)  "Use," with respect to a taxable service, means
5-14     the derivation in the district of a direct or indirect benefit from
5-15     the service.
5-16           (b)  The district may impose a sales and use tax for the
5-17     benefit of the district if authorized by a majority of the
5-18     qualified voters of the district voting at an election called for
5-19     that purpose.
5-20           (c)  If the district adopts the tax:
5-21                 (1)  a tax is imposed on the receipts from the sale at
5-22     retail of taxable items in the district; and
5-23                 (2)  an excise tax is imposed on the use, storage, or
5-24     other consumption in the district of taxable items purchased or
5-25     rented from a retailer during the period that the tax is effective
5-26     in the district.
5-27           (d)  The rate of the excise tax is the same as the rate of
5-28     the sales tax portion of the tax applied to the sales price of the
5-29     taxable items and is included in the sales tax.
5-30           Sec. 376.467.  TAX ELECTION PROCEDURES.  (a)  The board by
5-31     order may call an election to adopt, change the rate of, or abolish
5-32     a sales and use tax.  The election may be held at the same time and
5-33     in conjunction with a confirmation or directors election.
5-34           (b)  The election must be held on the next uniform election
5-35     date that falls on or after the 45th day after the date the order
5-36     calling the election is adopted.
5-37           (c)  Notice of the election shall be given and the election
5-38     shall be held and conducted in the manner prescribed for bond
5-39     elections under Subchapter D, Chapter 49, Water Code.
5-40           (d)  In an election to adopt the tax, the ballot shall be
5-41     prepared to permit voting for or against the proposition:  "The
5-42     adoption of a local sales and use tax in the Old Town Spring
5-43     Improvement District at the rate of (proposed tax rate)." 
5-44           (e)  In an election to change the rate of the tax, the ballot
5-45     shall be prepared to permit voting for or against the proposition:
5-46     "The (increase or decrease, as applicable) in the rate of the local
5-47     sales and use tax imposed in the Old Town Spring Improvement
5-48     District from (tax rate on election date) percent to (proposed tax
5-49     rate) percent."
5-50           (f)  In an election to abolish the tax, the ballot shall be
5-51     prepared to permit voting for or against the proposition:  "The
5-52     abolition of the local sales and use tax in the Old Town Spring
5-53     Improvement District."
5-54           Sec. 376.468.  IMPOSITION, COMPUTATION, ADMINISTRATION, AND
5-55     GOVERNANCE OF TAX.  (a)  Chapter 323, Tax Code, to the extent not
5-56     inconsistent with this subchapter, governs the application,
5-57     collection, and administration of the tax under this subchapter,
5-58     except Sections 323.401-323.406 and 323.505, Tax Code, do not
5-59     apply.  Subtitles A and B, Title 2, and Chapter 151, Tax Code,
5-60     govern the administration and enforcement of the taxes under this
5-61     subchapter.
5-62           (b)  Chapter 323, Tax Code, does not apply to the use and
5-63     allocation of revenues under this subchapter.
5-64           (c)  In applying Chapter 323, Tax Code, the district's name
5-65     shall be substituted for references in that chapter to "the county"
5-66     and the board is substituted for references in that chapter to
5-67     "commissioners court."
5-68           Sec. 376.469.  EFFECTIVE DATE OF TAX OR TAX CHANGE.  The
5-69     adoption of a tax rate or change in the tax rate takes effect after
 6-1     the expiration of the first complete calendar quarter occurring
 6-2     after the date on which the comptroller receives a notice of the
 6-3     results of the election.
 6-4           Sec. 376.470.  TAX RATES.  The district may impose the sales
 6-5     and use tax under this subchapter in increments of one-eighth of
 6-6     one percent, with a minimum tax of one-half percent and a maximum
 6-7     tax of one percent.
 6-8           Sec. 376.471.  ABOLITION OF TAX RATE.  The board by order may
 6-9     abolish the local sales and use tax rate without an election.
6-10           Sec. 376.472.  USE OF TAX.  Taxes collected under this
6-11     subchapter may be used only for the purposes for which the district
6-12     was created.
6-13           Sec. 376.473.  SUBMISSION OF ANNEXATION INFORMATION.  Not
6-14     later than the 10th day after the date on which the district
6-15     annexes or excludes territory, the board shall send to the
6-16     comptroller a certified copy of any resolution, order, or ordinance
6-17     relating to the annexation or exclusion.
6-18           Sec. 376.474.  BONDS.  (a)  The board may issue bonds as
6-19     provided by Subchapter J, Chapter 375.
6-20           (b)  In addition to the sources described in Subchapter J,
6-21     Chapter 375, the bonds issued by the district may be secured and
6-22     made payable, wholly or partly, by a pledge of any part of the net
6-23     proceeds the district receives from a specified portion of not more
6-24     than one-half of the maximum sales and use tax amount authorized
6-25     and approved by voters of the district under Section 376.467.
6-26           (c)  Sections 375.207 and 375.208 do not apply to bonds
6-27     issued under this section.
6-28           Sec. 376.475.  CONTRACTING AUTHORITY.  (a)  The district may
6-29     contract with any person to carry out the purposes of this
6-30     subchapter on terms and for the period the board determines.
6-31           (b)  Any person, including any type of governmental entity,
6-32     may contract with the district to carry out the purposes of this
6-33     subchapter.
6-34           Sec. 376.476.  DISSOLUTION BY BOARD ORDER.  The board by
6-35     order may dissolve the district at any time unless the district has
6-36     outstanding indebtedness or contractual obligations.
6-37           Sec. 376.477.  DISSOLUTION BY PETITION OF OWNERS.  (a)  The
6-38     board by order shall dissolve the district if the board receives a
6-39     written petition signed by 75 percent or more of the individuals
6-40     who own real property in the district.
6-41           (b)  After the date the district is dissolved, the district
6-42     may not levy taxes.
6-43           (c)  If on the date the district is dissolved the district
6-44     has outstanding liabilities, the board shall, not later than the
6-45     30th day after the dissolution, adopt a resolution certifying each
6-46     outstanding liability.  The county shall assume the outstanding
6-47     liabilities.  The county shall collect the sales and use tax for
6-48     the district for the remainder of the calendar year.  The county
6-49     may continue to collect the tax for an additional calendar year if
6-50     the commissioners court finds that the tax revenue is needed to
6-51     retire the district liabilities that were assumed by the county.
6-52           (d)  The district may continue to operate for a period not to
6-53     exceed two months after carrying out the responsibilities required
6-54     by Subsection (c).  The district is continued in effect for the
6-55     purpose of satisfying these responsibilities.
6-56           (e)  If the district is continued in effect under Subsection
6-57     (d), the district is dissolved entirely on the first day of the
6-58     month following the month in which the board certifies to the
6-59     secretary of state that the district has satisfied the
6-60     responsibilities of Subsection (c).
6-61           Sec. 376.478.  ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
6-62     DISSOLUTION.  (a)  After the board orders the dissolution of the
6-63     district, the board shall transfer ownership of all district
6-64     property to the county, except as provided by Subsection (b).
6-65           (b)  If, on the date on which the board orders the
6-66     dissolution, more than 50 percent of the district territory is in a
6-67     municipality, the board shall transfer ownership of the district's
6-68     property to the municipality.
6-69           SECTION 2.  The legislature finds that:
 7-1                 (1)  the proper and legal notice of the intention to
 7-2     introduce this Act, setting forth the general substance of this
 7-3     Act, has been published as provided by law, and the notice and a
 7-4     copy of this Act have been furnished to all persons, agencies,
 7-5     officials, or entities to which they are required to be furnished
 7-6     by the constitution and laws of this state, including the governor,
 7-7     who has submitted the notice and a copy of this Act to the Texas
 7-8     Natural Resource Conservation Commission;
 7-9                 (2)  the Texas Natural Resource Conservation Commission
7-10     has filed its recommendations relating to this Act with the
7-11     governor, lieutenant governor, and speaker of the house of
7-12     representatives within the required time;
7-13                 (3)  the general law relating to consent by political
7-14     subdivisions to the creation of districts with conservation,
7-15     reclamation, and road powers and the inclusion of land in those
7-16     districts has been complied with; and
7-17                 (4)  all requirements of the constitution and laws of
7-18     this state and the rules and procedures of the legislature with
7-19     respect to the notice, introduction, and passage of this Act have
7-20     been fulfilled and accomplished.
7-21           SECTION 3.  (a)  The initial board of directors of the Old
7-22     Town Spring Improvement District consists of:
7-23           Position No.                  Name of Board Member
7-24           1.                Vance Fellers, who shall hold position one
7-25                             described by Subdivision (1), Subsection
7-26                             (d), Section 376.457, Local Government
7-27                             Code, as added by this Act;
7-28           2.                Amy Doktor, who shall hold position two
7-29                             described by Subdivision (2), Subsection
7-30                             (d), Section 376.457, Local Government
7-31                             Code, as added by this Act;
7-32           3.                Ed Weddle, who shall hold position three
7-33                             described by Subdivision (3), Subsection
7-34                             (d), Section 376.457, Local Government
7-35                             Code, as added by this Act;
7-36           4.                Anatar Schubert, who shall hold position
7-37                             four described by Subsection (e), Section
7-38                             376.457, Local Government Code, as added by
7-39                             this Act; and
7-40           5.                Mary Mallott Todeschini, who shall hold
7-41                             position five described by Subsection (e),
7-42                             Section 376.457, Local Government Code, as
7-43                             added by this Act.
7-44           (b)  Of the initial directors, the terms of directors for
7-45     positions 1 and 3 expire on December 31, 2004, and the terms of
7-46     directors for positions 2, 4, and 5 expire on December 31, 2003.
7-47           (c)  Vance Fellers shall serve as the president of the
7-48     initial board.  This subsection prevails over Section 375.068,
7-49     Local Government Code, to the extent of any inconsistency with that
7-50     section.
7-51           SECTION 4.  (a)  The initial board of directors under Section
7-52     3 of this Act shall meet as soon as practicable.  The board shall
7-53     call an election to confirm the creation of the Old Town Spring
7-54     Improvement District created under Subchapter K, Chapter 376, Local
7-55     Government Code, as added by this Act.  The board shall call the
7-56     confirmation election at the first meeting unless the board calls a
7-57     hearing to exclude territory from the district.
7-58           (b)  The confirmation election shall be held in the manner
7-59     provided by Section 49.102, Water Code.  The election must be held
7-60     on the first uniform election date provided by Section 41.001,
7-61     Election Code, that falls on or after the 45th day after the date
7-62     of the order calling the election.
7-63           (c)  If a majority of the votes cast in the election are
7-64     against confirmation, the board may not call or hold another
7-65     confirmation election until the expiration of six months after the
7-66     date of the most recent confirmation election.
7-67           (d)  Before the creation of the district is confirmed, the
7-68     district may not borrow money or impose taxes.  The district may
7-69     carry on other business as the board determines.
 8-1           SECTION 5.  This Act takes effect September 1, 2001.
 8-2                                  * * * * *