By Bernsen                                            S.B. No. 1772
         77R9482 ATP-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the operation of the East Montgomery County Improvement
 1-3     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 it existed on January 1, 2001,
1-14     located in Harris County.
1-15           SECTION 2. Section 11, Chapter 1316, Acts of the 75th
1-16     Legislature, Regular Session, 1997, is amended to read as follows:
1-17           Sec. 11.  ADMINISTRATION OF BOARD. (a)  Sections 375.066
1-18     through 375.070, Local Government Code, apply to the board as if it
1-19     were established under Chapter 375, Local Government Code.
1-20           (b)  After the directors have been selected and have
1-21     qualified as provided by Subsection (a) of this section, they shall
1-22     organize or reorganize by electing a chair, a vice chair, a
1-23     secretary, and other officers of the board as the board considers
1-24     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 the board considers necessary.
2-13           SECTION 4. Section 21(d), Chapter 1316, Acts of the 75th
2-14     Legislature, Regular Session, 1997, is amended to read as follows:
2-15           (d)  For purposes of this section:
2-16                 (1)  "taxable items" includes all items that would be
2-17     subject to any sales and use tax [that is] imposed by the county if
2-18     the county has imposed a sales and use tax; and
2-19                 (2)  "use," with respect to a taxable service, means
2-20     the derivation in the district of direct or indirect benefit from
2-21     the service.
2-22           SECTION 5. Section 22(a), Chapter 1316, Acts of the 75th
2-23     Legislature, Regular Session, 1997, is amended to read as follows:
2-24           (a)  The board by order may call an election to adopt, change
2-25     the rate of, or abolish a sales and use tax, provided that the
2-26     board may not call an election to abolish a sales and use tax or to
2-27     reduce the rate of the sales and use tax below the amount pledged
 3-1     to secure payment of any outstanding district debt while any
 3-2     district debt remains outstanding.  The election may be held at the
 3-3     same time and in conjunction with a confirmation or directors
 3-4     election.
 3-5           SECTION 6. Section 23, Chapter 1316, Acts of the 75th
 3-6     Legislature, Regular Session, 1997, is amended by adding Subsection
 3-7     (d) to read as follows:
 3-8           (d)  The district is entitled to examine and receive
 3-9     information related to the imposition and collection of sales and
3-10     use taxes to the same extent as if the district were a municipality
3-11     to which Section 321.3022, Tax Code, applies.
3-12           SECTION 7. Section 25, Chapter 1316, Acts of the 75th
3-13     Legislature, Regular Session, 1997, is amended to read as follows:
3-14           Sec. 25.  TAX RATES. (a)  The district may impose the sales
3-15     and use tax under this Act in increments of one-eighth of one
3-16     percent, with a minimum tax of one-half percent and a maximum tax
3-17     of two [one] percent.
3-18           (b)  Notwithstanding Subsection (a), the district may only
3-19     impose a sales and use tax greater than one percent if the voters
3-20     within the district approve the change in the rate under Section 22
3-21     of this Act.
3-22           SECTION 8. Section 30A, Chapter 1316, Acts of the 75th
3-23     Legislature, Regular Session, 1997, is amended by adding Subsection
3-24     (d) to read as follows:
3-25           (d)  To the extent consistent with the documents authorizing
3-26     the issuance of the district's bonds, the proceeds of bonds
3-27     remaining after the payment of the cost of issuing the bonds and
 4-1     all costs associated with the projects for which the bonds were
 4-2     sold may be spent by the district for any lawful purpose or for any
 4-3     project the district is authorized to undertake.
 4-4           SECTION 9. Section 33, Chapter 1316, Acts of the 75th
 4-5     Legislature, Regular Session, 1997, is repealed.
 4-6           SECTION 10. The legislature finds that the property to be
 4-7     excluded from the district, as provided by Section 1 of this Act,
 4-8     is undeveloped or residential in character, there is no retail
 4-9     activity within that area that would generate sales tax revenues,
4-10     and the area is not generating and is not projected in the
4-11     foreseeable future to generate sales tax or other revenues to the
4-12     district, and therefore the exclusion of that land will not have an
4-13     adverse effect on the district's ability to pay its outstanding
4-14     debt.
4-15           SECTION 11. The legislature finds that:
4-16                 (1)  the proper and legal notice of the intention to
4-17     introduce this Act, setting forth the general substance of this
4-18     Act, has been published as provided by law, and the notice and a
4-19     copy of this Act have been furnished to all persons to which they
4-20     are required to be furnished by the constitution and laws of this
4-21     state; and
4-22                 (2)  all requirements of the constitution and laws of
4-23     this state and the rules of the legislature with respect to the
4-24     notice, introduction, and passage of this Act have been fulfilled
4-25     and accomplished.
4-26           SECTION 12. This Act takes effect September 1, 2001.