1-1 By: Bernsen S.B. No. 1772
1-2 (In the Senate - Filed March 21, 2001; March 22, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 17, 2001, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 7, Nays 0;
1-6 April 17, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1772 By: Lindsay
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the boundaries and operation of the East Montgomery
1-11 County Improvement District.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 4, Chapter 1316, Acts of the 75th
1-14 Legislature, Regular Session, 1997, is amended to read as follows:
1-15 Sec. 4. BOUNDARIES. The boundaries of the district are
1-16 coextensive with the boundaries of the New Caney Independent School
1-17 District and the Splendora Independent School District as those
1-18 boundaries existed on January 1, 1997, but the district does not
1-19 include any portion of the City of Houston as it existed on January
1-20 1, 1997, and does not include any portion of the New Caney
1-21 Independent School District, as the boundaries of the school
1-22 district exist on September 1, 2001, or as they may exist in the
1-23 future, located in Harris County.
1-24 SECTION 2. Section 11, Chapter 1316, Acts of the 75th
1-25 Legislature, Regular Session, 1997, is amended to read as follows:
1-26 Sec. 11. ADMINISTRATION OF BOARD. (a) Sections 375.066
1-27 through 375.070, Local Government Code, apply to the board as if it
1-28 were established under Chapter 375, Local Government Code.
1-29 (b) After the directors have been selected and have
1-30 qualified as provided by Subsection (a) of this section, they shall
1-31 organize or reorganize by electing a chair, a vice chair, a
1-32 secretary, and other officers of the board as the board considers
1-33 necessary.
1-34 SECTION 3. Section 16, Chapter 1316, Acts of the 75th
1-35 Legislature, Regular Session, 1997, is amended by amending
1-36 Subsection (b) and adding Subsection (e) to read as follows:
1-37 (b) The district may not employ peace officers, but may
1-38 contract with off-duty peace officers to provide public safety and
1-39 security services in connection with a special event, holiday,
1-40 period with high traffic congestion, or similar circumstance and to
1-41 provide public safety and security services at district facilities
1-42 and property.
1-43 (e) The board may employ and establish the terms of
1-44 employment and compensation of an executive director or general
1-45 manager or any officer of the district the board considers
1-46 necessary.
1-47 SECTION 4. Subsection (d), Section 21, Chapter 1316, Acts of
1-48 the 75th Legislature, Regular Session, 1997, is amended to read as
1-49 follows:
1-50 (d) For purposes of this section:
1-51 (1) "taxable items" includes all items that would be
1-52 subject to any sales and use tax [that is] imposed by the county if
1-53 the county [has] imposed a sales and use tax; and
1-54 (2) "use," with respect to a taxable service, means
1-55 the derivation in the district of direct or indirect benefit from
1-56 the service.
1-57 SECTION 5. Subsection (a), Section 22, Chapter 1316, Acts of
1-58 the 75th Legislature, Regular Session, 1997, is amended to read as
1-59 follows:
1-60 (a) The board by order may call an election to adopt, change
1-61 the rate of, or abolish a sales and use tax, provided that the
1-62 board may not call an election to abolish a sales and use tax or to
1-63 reduce the rate of the sales and use tax below the amount pledged
1-64 to secure payment of any outstanding district debt while any
2-1 district debt remains outstanding. The election may be held at the
2-2 same time and in conjunction with a confirmation or directors
2-3 election.
2-4 SECTION 6. Section 23, Chapter 1316, Acts of the 75th
2-5 Legislature, Regular Session, 1997, is amended by adding Subsection
2-6 (d) to read as follows:
2-7 (d) The district is entitled to examine and receive
2-8 information related to the imposition and collection of sales and
2-9 use taxes to the same extent as if the district were a municipality
2-10 under Subchapter D, Chapter 321, Tax Code.
2-11 SECTION 7. Section 25, Chapter 1316, Acts of the 75th
2-12 Legislature, Regular Session, 1997, is amended to read as follows:
2-13 Sec. 25. TAX RATES. (a) The district may impose the sales
2-14 and use tax under this Act in increments of one-eighth of one
2-15 percent, with a minimum tax of one-half percent and a maximum tax
2-16 of two [one] percent.
2-17 (b) The district may not impose a sales and use tax of
2-18 greater than one percent unless the voters of the district have
2-19 approved, at an election called for such purpose and conducted
2-20 generally in accordance with Section 22 of this Act, the imposition
2-21 of a rate of one percent or less in addition to the existing one
2-22 percent rate. In the election, the ballot must permit voting for
2-23 or against the proposition: "The adoption of a local sales and use
2-24 tax imposed in the East Montgomery County Improvement District of
2-25 __________ (state percentage rate) percent in addition to the sales
2-26 and use tax that the East Montgomery County Improvement District is
2-27 currently authorized to impose at the rate of ___ (state percentage
2-28 rate) percent."
2-29 (c) If as a result of the imposition of or an increase in a
2-30 sales and use tax by the district as provided by Section 22 of this
2-31 Act and Subsection (b) of this section, the overlapping local sales
2-32 and use taxes in a municipality located within the boundaries of
2-33 the district will exceed two percent, the municipality's sales and
2-34 use tax is automatically reduced in that municipality to a rate
2-35 that, when added to the district's rate, does not exceed two
2-36 percent.
2-37 (d) If the tax rate of a municipality is reduced in
2-38 accordance with Subsection (c) of this section, the comptroller
2-39 shall withhold from the district's monthly sales and use tax
2-40 allocation an amount equal to the amount that would have been
2-41 collected by the municipality had the district not imposed or
2-42 increased its sales and use tax less amounts that the municipality
2-43 collects following the district's levy of or increase in its sales
2-44 and use tax. The comptroller shall withhold and pay the amount
2-45 withheld to the municipality under policies or procedures that the
2-46 comptroller considers reasonable.
2-47 SECTION 8. Section 30A, Chapter 1316, Acts of the 75th
2-48 Legislature, Regular Session, 1997, is amended by adding Subsection
2-49 (d) to read as follows:
2-50 (d) To the extent consistent with the documents authorizing
2-51 the issuance of the district's bonds, the proceeds of bonds
2-52 remaining after the payment of the cost of issuing the bonds and
2-53 all costs associated with the projects for which the bonds were
2-54 sold may be spent by the district for any lawful purpose or for any
2-55 project the district is authorized to undertake.
2-56 SECTION 9. Section 33, Chapter 1316, Acts of the 75th
2-57 Legislature, Regular Session, 1997, is repealed.
2-58 SECTION 10. The legislature finds that the property to be
2-59 excluded from the East Montgomery County Improvement District, as
2-60 provided by Section 1 of this Act, is undeveloped or residential in
2-61 character, there is no retail activity within that area that would
2-62 generate sales tax revenues, and the area is not generating and is
2-63 not projected in the foreseeable future to generate sales tax or
2-64 other revenues to the district, and therefore the exclusion of that
2-65 land will not have an adverse effect on the district's ability to
2-66 pay its outstanding debt.
2-67 SECTION 11. The legislature finds that:
2-68 (1) the proper and legal notice of the intention to
2-69 introduce this Act, setting forth the general substance of this
3-1 Act, has been published as provided by law, and the notice and a
3-2 copy of this Act have been furnished to all persons to which they
3-3 are required to be furnished by the constitution and laws of this
3-4 state; and
3-5 (2) all requirements of the constitution and laws of
3-6 this state and the rules of the legislature with respect to the
3-7 notice, introduction, and passage of this Act have been fulfilled
3-8 and accomplished.
3-9 SECTION 12. This Act takes effect September 1, 2001.
3-10 * * * * *