1-1 AN ACT
1-2 relating to the boundaries and operation of the East Montgomery
1-3 County Improvement District.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4, Chapter 1316, Acts of the 75th
1-6 Legislature, Regular Session, 1997, is amended to read as follows:
1-7 Sec. 4. BOUNDARIES. The boundaries of the district are
1-8 coextensive with the boundaries of the New Caney Independent School
1-9 District and the Splendora Independent School District as those
1-10 boundaries existed on January 1, 1997, but the district does not
1-11 include any portion of the City of Houston as it existed on January
1-12 1, 1997, and does not include any portion of the New Caney
1-13 Independent School District, as the boundaries of the school
1-14 district exist on September 1, 2001, or as they may exist in the
1-15 future, located in Harris County.
1-16 SECTION 2. Section 11, Chapter 1316, Acts of the 75th
1-17 Legislature, Regular Session, 1997, is amended to read as follows:
1-18 Sec. 11. ADMINISTRATION OF BOARD. (a) Sections 375.066
1-19 through 375.070, Local Government Code, apply to the board as if it
1-20 were established under Chapter 375, Local Government Code.
1-21 (b) After the directors have been selected and have
1-22 qualified as provided by Subsection (a) of this section, they shall
1-23 organize or reorganize by electing a chair, a vice chair, a
1-24 secretary, and other officers of the board as the board considers
1-25 necessary.
2-1 SECTION 3. Section 16, Chapter 1316, Acts of the 75th
2-2 Legislature, Regular Session, 1997, is amended by amending
2-3 Subsection (b) and adding Subsection (e) to read as follows:
2-4 (b) The district may not employ peace officers, but may
2-5 contract with off-duty peace officers to provide public safety and
2-6 security services in connection with a special event, holiday,
2-7 period with high traffic congestion, or similar circumstance and to
2-8 provide public safety and security services at district facilities
2-9 and property.
2-10 (e) The board may employ and establish the terms of
2-11 employment and compensation of an executive director or general
2-12 manager or any officer of the district the board considers
2-13 necessary.
2-14 SECTION 4. Subsection (d), Section 21, Chapter 1316, Acts of
2-15 the 75th Legislature, Regular Session, 1997, is amended to read as
2-16 follows:
2-17 (d) For purposes of this section:
2-18 (1) "taxable items" includes all items that would be
2-19 subject to any sales and use tax [that is] imposed by the county if
2-20 the county [has] imposed a sales and use tax; and
2-21 (2) "use," with respect to a taxable service, means
2-22 the derivation in the district of direct or indirect benefit from
2-23 the service.
2-24 SECTION 5. Subsection (a), Section 22, Chapter 1316, Acts of
2-25 the 75th Legislature, Regular Session, 1997, is amended to read as
2-26 follows:
3-1 (a) The board by order may call an election to adopt, change
3-2 the rate of, or abolish a sales and use tax, provided that the
3-3 board may not call an election to abolish a sales and use tax or to
3-4 reduce the rate of the sales and use tax below the amount pledged
3-5 to secure payment of any outstanding district debt while any
3-6 district debt remains outstanding. The election may be held at the
3-7 same time and in conjunction with a confirmation or directors
3-8 election.
3-9 SECTION 6. Section 23, Chapter 1316, Acts of the 75th
3-10 Legislature, Regular Session, 1997, is amended by adding Subsection
3-11 (d) to read as follows:
3-12 (d) The district is entitled to examine and receive
3-13 information related to the imposition and collection of sales and
3-14 use taxes to the same extent as if the district were a municipality
3-15 under Subchapter D, Chapter 321, Tax Code.
3-16 SECTION 7. Section 25, Chapter 1316, Acts of the 75th
3-17 Legislature, Regular Session, 1997, is amended to read as follows:
3-18 Sec. 25. TAX RATES. (a) The district may impose the sales
3-19 and use tax under this Act in increments of one-eighth of one
3-20 percent, with a minimum tax of one-half percent and a maximum tax
3-21 of two [one] percent.
3-22 (b) The district may not impose a sales and use tax of
3-23 greater than one percent unless the voters of the district have
3-24 approved, at an election called for such purpose and conducted
3-25 generally in accordance with Section 22 of this Act, the imposition
3-26 of a rate of one percent or less in addition to the existing one
4-1 percent rate. In the election, the ballot must permit voting for
4-2 or against the proposition: "The adoption of a local sales and use
4-3 tax imposed in the East Montgomery County Improvement District of
4-4 __________ (state percentage rate) percent in addition to the sales
4-5 and use tax that the East Montgomery County Improvement District is
4-6 currently authorized to impose at the rate of ___ (state percentage
4-7 rate) percent."
4-8 (c) If as a result of the imposition of or an increase in a
4-9 sales and use tax by the district as provided by Section 22 of this
4-10 Act and Subsection (b) of this section, the overlapping local sales
4-11 and use taxes in a municipality located within the boundaries of
4-12 the district will exceed two percent, the municipality's sales and
4-13 use tax is automatically reduced in that municipality to a rate
4-14 that, when added to the district's rate, does not exceed two
4-15 percent.
4-16 (d) If the tax rate of a municipality is reduced in
4-17 accordance with Subsection (c) of this section, the comptroller
4-18 shall withhold from the district's monthly sales and use tax
4-19 allocation an amount equal to the amount that would have been
4-20 collected by the municipality had the district not imposed or
4-21 increased its sales and use tax less amounts that the municipality
4-22 collects following the district's levy of or increase in its sales
4-23 and use tax. The comptroller shall withhold and pay the amount
4-24 withheld to the municipality under policies or procedures that the
4-25 comptroller considers reasonable.
4-26 SECTION 8. Section 30A, Chapter 1316, Acts of the 75th
5-1 Legislature, Regular Session, 1997, is amended by adding Subsection
5-2 (d) to read as follows:
5-3 (d) To the extent consistent with the documents authorizing
5-4 the issuance of the district's bonds, the proceeds of bonds
5-5 remaining after the payment of the cost of issuing the bonds and
5-6 all costs associated with the projects for which the bonds were
5-7 sold may be spent by the district for any lawful purpose or for any
5-8 project the district is authorized to undertake.
5-9 SECTION 9. Section 33, Chapter 1316, Acts of the 75th
5-10 Legislature, Regular Session, 1997, is repealed.
5-11 SECTION 10. The legislature finds that the property to be
5-12 excluded from the East Montgomery County Improvement District, as
5-13 provided by Section 1 of this Act, is undeveloped or residential in
5-14 character, there is no retail activity within that area that would
5-15 generate sales tax revenues, and the area is not generating and is
5-16 not projected in the foreseeable future to generate sales tax or
5-17 other revenues to the district, and therefore the exclusion of that
5-18 land will not have an adverse effect on the district's ability to
5-19 pay its outstanding debt.
5-20 SECTION 11. The legislature finds that:
5-21 (1) the proper and legal notice of the intention to
5-22 introduce this Act, setting forth the general substance of this
5-23 Act, has been published as provided by law, and the notice and a
5-24 copy of this Act have been furnished to all persons to which they
5-25 are required to be furnished by the constitution and laws of this
5-26 state; and
6-1 (2) all requirements of the constitution and laws of
6-2 this state and the rules of the legislature with respect to the
6-3 notice, introduction, and passage of this Act have been fulfilled
6-4 and accomplished.
6-5 SECTION 12. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1772 passed the Senate on
April 26, 2001, by the following vote: Yeas 30, Nays 0, one
present, not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1772 passed the House on
May 17, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor