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 * * * * *