78R8627 DRH-D
By: Eissler H.B. No. 3562
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Southwest Montgomery County
Improvement District; providing authority to impose taxes and issue
bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. CREATION OF DISTRICT. (a) The Southwest
Montgomery County Improvement District is created as a special
district in Montgomery County under Section 59, Article XVI, Texas
Constitution.
(b) The board by resolution may change the name of the
district.
SECTION 2. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "District" means the Southwest Montgomery County
Improvement District.
SECTION 3. DECLARATION OF INTENT. (a) The creation of the
district is essential to accomplish the purposes of Section 52,
Article III, and Section 59, Article XVI, Texas Constitution, and
other public purposes stated in this Act.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce, economic
development, and the public welfare in the southwest portion of
Montgomery County.
(c) The creation of the district and this legislation may
not be interpreted to relieve Montgomery County or any other
political subdivision from providing the level of services
provided, as of the effective date of this Act, to the area in the
district. The district is created to supplement and not to supplant
services provided in the area in the district.
SECTION 4. BOUNDARIES. The district includes all of the
territory contained in Montgomery County Election Precincts Number
13, 18, 28, 29, 30, 34, 65, 66, 69, 71, 74, 75, 76, and 81, as those
precincts existed on January 1, 2003, except for:
(1) territory within the corporate limits of the
following municipalities as of January 1, 2003: Conroe, Houston,
Magnolia, Stagecoach, and Shenandoah; and
(2) territory that is a part of the Town Center
Improvement District as of January 1, 2003.
SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries
and field notes of the district form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not in any way affect the district's:
(1) organization, existence, or validity;
(2) right to enter any type of contract for a purpose
for which the district is created;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
SECTION 6. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit.
(b) All land and other property in the district will benefit
from the improvements and services to be provided by the district
under powers conferred by Section 52, Article III, and Section 59,
Article XVI, Texas Constitution, and other powers granted under
this Act.
(c) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of development and
diversification of the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The present and prospective traffic congestion in the
district and the safety of pedestrians and the limited availability
of funds require the promotion and development of public
transportation and pedestrian facilities and systems, and the
district will serve the public purpose of securing expanded and
improved transportation and pedestrian facilities and systems.
(e) The district will:
(1) promote the health, safety, and general welfare of
residents and employers in the district;
(2) secure expanded and improved transportation and
pedestrian facilities and systems;
(3) provide needed funding to preserve, maintain, and
enhance the economic health and vitality of the district as a
community and commerce center; and
(4) promote the health, safety, welfare, education,
convenience, and enjoyment of the public by improving, landscaping,
and developing certain areas and by providing public services and
facilities in and adjacent to the district, which are necessary for
the restoration, preservation, enjoyment, and enhancement of
scenic beauty.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
SECTION 7. APPLICATION OF OTHER LAW. (a) Except as
otherwise provided by this Act, Chapter 375, Local Government Code,
applies to the district.
(b) Chapter 311, Government Code (Code Construction Act),
applies to this Act.
SECTION 8. CONSTRUCTION OF ACT. This Act shall be liberally
construed in conformity with the findings and purposes stated in
this Act.
SECTION 9. BOARD OF DIRECTORS. (a) Except as provided by
Section 14 of this Act, the district is governed by a board of 11
directors who serve staggered terms of four years.
(b) Except as provided by Section 14 of this Act, six
directors are elected by the voters of the district at large. Five
directors are appointed as follows:
(1) one director appointed by the governing body of
the City of Magnolia;
(2) one director appointed by the governing body of
the City of Stagecoach;
(3) one director appointed by the governing body of
the City of Conroe;
(4) one director appointed by the governing body of
the Magnolia Independent School District; and
(5) one director appointed by the Montgomery County
Commissioners Court.
(c) To be eligible to serve as a director, a person must be
at least 18 years old, a resident of the district, and:
(1) an owner of real property in the district;
(2) an owner, whether beneficial or otherwise, of at
least 10 percent of the outstanding stock of a corporate owner of
real property in the district or of a corporate lessee of real
property in the district with a lease term of five years or more
measured from the date of appointment or election, excluding
options;
(3) an owner of at least 10 percent of the beneficial
interest in a trust that:
(A) owns real property in the district; or
(B) leases real property in the district under an
original lease term of five years or more measured from the date of
appointment or election, excluding options;
(4) a lessee of real property in the district under an
original lease term of five years or more, excluding options;
(5) an owner of at least 10 percent of the outstanding
interest in a general or limited partnership that:
(A) owns real property in the district; or
(B) leases real property in the district under
an original lease term of five years or more measured from the date
of appointment or election, excluding options; or
(6) an agent, employee, officer, or director of any
individual, corporation, trust, or partnership that owns or leases
real property described by Subdivision (1), (2), (3), (4), or (5) of
this subsection who is designated by the owner or lessee to serve as
a director.
(d) A person may not be appointed as a director under
Subsection (b) of this section if the appointment would cause more
than three members of the board to be an agent, employee, officer,
or director of the same individual, corporation, trust, or
partnership that owns or leases property in the district.
SECTION 10. VACANCY. (a) A vacancy in an appointed
position is filled for the remainder of the unexpired term by the
entity that made the original appointment. A vacancy in an elected
position is filled by the remaining members of the board for the
unexpired term.
(b) If six or more vacancies occur at the same time, on
petition of a property owner of the district, the Montgomery County
Commissioners Court shall make appointments to fill the vacancies.
(c) Section 375.066, Local Government Code, does not apply
to the district.
SECTION 11. ELECTION DATE FOR DIRECTORS. The election of a
director is held on the uniform election date in September of the
year in which an elected director's term expires.
SECTION 12. BOND NOT REQUIRED. A director is not required
to execute a bond as required by Section 375.067, Local Government
Code.
SECTION 13. REMOVAL OF DIRECTOR. The board may remove a
director for misconduct or failure to carry out the director's
duties by vote of not less than 75 percent of the remaining
directors.
SECTION 14. INITIAL DIRECTORS. (a) Not later than the 30th
day after the effective date of this Act, the entities described in
Section 9(b) of this Act shall make the initial appointments to the
positions described in that section. The Montgomery County
Commissioners Court shall make the initial appointment of the six
elected directors and designate whether the director serves for a
term expiring October 1, 2005, or October 1, 2007.
(b) The initial directors serve terms as follows:
(1) the director appointed under Section 9(b)(5) of
this Act and three of the elected directors appointed by the
Montgomery County Commissioners Court under Subsection (a) serve
for terms expiring on October 1, 2007;
(2) the directors appointed under Sections 9(b)(1),
(2), and (4) of this Act serve for terms expiring on October 1,
2006; and
(3) the director appointed under Section 9(b)(3) of
this Act and three of the elected directors appointed by the
commissioners court under Subsection (a) of this section serve for
terms expiring on October 1, 2005.
(c) This section expires January 1, 2008.
SECTION 15. CONFIRMATION ELECTION. (a) After holding any
hearings on whether to exclude territory from the district, the
board shall order an election on the confirmation of the district.
The election shall be held on the first uniform election date that
occurs 45 or more days after the date the election is ordered.
(b) The election shall be called and held in the same manner
as provided by general law for a municipal utility district.
(c) If less than a majority of the votes cast at the
election favor confirmation of the district, another confirmation
election may not be held sooner than 180 days after the date of a
previous confirmation election.
(d) Until confirmed at an election, the district may not
impose taxes, fees, or assessments, but may carry out other
district business as determined by the board.
SECTION 16. BORROWING MONEY BEFORE CONFIRMATION ELECTION.
(a) Before the election confirming the district and the election
imposing a limited sales and use tax, the board may borrow money to
hire employees, obtain office space, pay fees and costs of holding
elections, and pay other costs and expenses reasonably necessary to
prepare for commencement of operation.
(b) Funds borrowed for a purpose described by Subsection (a)
of this section are repayable by the district only if the elections
result in the confirmation of the district and imposition of a
limited sales and use tax. The district shall repay those funds not
later than the fifth anniversary of the date the funds were
borrowed.
(c) The maximum amount the district may borrow under this
section is $75,000.
SECTION 17. IMPACT AREAS. (a) In this section, "impact
area" means an area defined by board resolution that is in the
district or within two miles of the district and located in
Montgomery County.
(b) The board may, after allowing for the general and
administrative costs of operating the district, apply proceeds from
the limited sales and use tax to mitigate the net negative effects
of development in the district on an impact area, including effects
on public utilities and services, public transportation and traffic
movement, and scenic beauty.
(c) The district may allocate direct expenditures for the
district or the impact area to each area for which the expenditure
was made. The district may allocate expenditures for the general
welfare, promotion, or benefit of the district and impact area
between the district and the impact area in the amount, as
determined by the board, that is proportionate to the benefit
conferred on each area.
SECTION 18. IMPROVEMENT PROJECTS. (a) The board may
authorize any program or project necessary for the accomplishment
of the public purposes of the district, whether located or
conducted inside or outside of the district or provided by or on
behalf of the district, for the:
(1) planning, design, construction, acquisition,
lease, rental, installment purchase, improvement, provision of
furnishings or other equipment, rehabilitation, repair,
reconstruction, relocation, use, management, operation, or
maintenance of any works, improvements, or facilities; or
(2) provision, support, enhancement, improvement,
extension, or expansion of services.
(b) A project authorized under this section may include:
(1) landscaping, lighting, banners, signs, streets or
sidewalks, hike and bike paths and trails, pedestrian walkways,
skywalks, crosswalks or tunnels, and highway right-of-way or
transit corridor beautification and improvements;
(2) drainage or storm water detention improvements and
solid waste, water, sewer, telecommunications infrastructure, or
power facilities and services, including electrical, gas, steam,
and chilled water facilities;
(3) parks, lakes, gardens, recreational facilities,
open space, scenic areas, and related exhibits and preserves,
fountains, plazas, and pedestrian malls, public art and sculpture
and related exhibits and facilities, and educational and cultural
exhibits and facilities;
(4) conferences, conventions, or exhibitions,
manufacturer, consumer, or trade shows, civic, community, or
institutional events, exhibits, displays, attractions and
facilities for special events, holidays, and seasonal or cultural
celebrations;
(5) off-street parking facilities, bus terminals,
heliports, mass-transit, and roadway-borne or water-borne
transportation and people-mover systems; and
(6) any other public improvements, facilities, or
services similar to the projects described in this subsection.
(c) In connection with any improvement project the board
may:
(1) remove, raze, demolish, or clear land or
improvements;
(2) acquire any interest in real or personal property
except that the district may not acquire the property through
eminent domain; and
(3) provide any special or supplemental services for
the improvement and promotion of the district or adjacent areas or
for the protection of public health and safety in or adjacent to the
district, including advertising, promotion, tourism, health and
sanitation, public safety, security, fire protection and emergency
medical services, business recruitment, development, elimination
of traffic congestion, and recreational, educational, and cultural
improvements, enhancements, and services.
(d) The board may undertake separately or jointly with other
persons and pay all or part of the cost of improvement projects,
including projects:
(1) for improving, enhancing, and supporting public
safety and security, fire protection and emergency medical
services, and law enforcement within and adjacent to the district;
and
(2) that confer a general benefit on the entire
district and adjacent areas or a special benefit on a definable part
of the district.
SECTION 19. PAYMENT OF EXPENSES. The board may provide or
secure the payment or repayment of the costs and expenses of the
establishment, administration, and operation of the district,
including the costs of an improvement project or a contractual
obligation or indebtedness, through:
(1) a lease, installment purchase contract, or other
agreement with any person; or
(2) the imposition of taxes, user fees, concessions,
rentals, or other revenues or resources of the district.
SECTION 20. USE OF OPEN SPACES. (a) The board by rule may
regulate the private use of public roadways, open spaces, parks,
sidewalks, and similar public areas. The rules may provide for the
safe and orderly use of public roadways, open spaces, parks,
sidewalks, and similar public areas or facilities.
(b) To the extent a rule adopted under Subsection (a) of
this section conflicts with a rule, order, ordinance, or
regulation of a county or municipality with jurisdiction in the
district's territory, the rule, order, ordinance, or regulation of
the county or municipality controls.
SECTION 21. PERMIT FOR PUBLIC GATHERINGS; FEE. (a) The
board may require a permit for a parade, demonstration,
celebration, entertainment event, or similar nongovernmental
activity in or on the public roadways, open spaces, parks,
sidewalks, and similar public areas or facilities in the district.
(b) The board may charge a fee for the permit application
and for public safety or security services in an amount the board
considers necessary.
SECTION 22. PUBLIC SECURITY. The district may not employ
peace officers, but may contract for off-duty peace officers to
provide public safety and security services in connection with
security needs in commercial office, retail, or industrial areas
and in connection with a special event,holiday, or other period
with high traffic congestion, or similar circumstance.
SECTION 23. ECONOMIC DEVELOPMENT POWERS. (a) The district
has the same economic development powers that Chapter 380, Local
Government Code, and Subchapter A, Chapter 1509, Government Code,
provide a municipality with a population of more than 100,000.
(b) The district has the powers and duties of a conservation
and reclamation district created under Section 59, Article XVI,
Texas Constitution, under the Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes).
SECTION 24. REQUIREMENTS FOR USE OF FACILITIES. The board
may require a permit or franchise agreement with a vendor,
concessionaire, exhibitor, or similar private or commercial entity
for the limited use of the area or facilities of the district on
terms the board may impose.
SECTION 25. CHANGE IN DISTRICT TERRITORY. (a) The board
may add or exclude territory in the manner provided by Subchapter J,
Chapter 49, and Section 54.016, Water Code, except that:
(1) a reference in those laws to a tax means an ad
valorem tax only; and
(2) Section 42.042, Local Government Code, and Section
54.016, Water Code, apply only with respect to the consent of a
municipality with a population of 25,000 or less and do not apply to
the annexation of land restricted primarily to commercial or
business use.
(b) Territory of the district that is annexed by a
municipality is no longer a part of the district effective on the
date the municipality may impose a sales and use tax in the
territory.
(c) Not later than the 10th day after the date of the
annexation or exclusion of territory by the district, the board
shall send to the comptroller, by certified or registered mail,
certified copies of all resolutions, orders, or ordinances
pertaining to the annexation or exclusion of the territory by a
district or municipality.
SECTION 26. LIMITED SALES AND USE TAX. (a) Words and
phrases used in this section that are defined by Chapters 151 and
321, Tax Code, have the meanings assigned by Chapters 151 and 321,
Tax Code.
(b) Except as otherwise provided in this section, Subtitles
A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to the
taxes and to the administration and enforcement of the taxes
imposed by the district in the same manner that those laws apply to
state taxes.
(c) The district may adopt, reduce, or repeal the limited
sales and use tax authorized by this section at an election in which
a majority of the voters of the district voting in the election
approve the adoption or the abolition of the tax, as applicable.
The board may set the tax at any rate of up to two percent in
increments of one-eighth of one percent except that the tax may not
be imposed at a rate that would cause the combined tax rate of all
local sales and use taxes in any location in the district to exceed
two percent.
(d) The provisions of Subchapters C, D, E, and F, Chapter
323, Tax Code, relating to county sales and use taxes shall apply to
the application, collection, and administration of a sales and use
tax imposed under this section to the extent consistent with this
Act, as if references in Chapter 323, Tax Code, to a county referred
to the district and references to a commissioners court referred to
the board. Sections 323.401-323.404 and 323.505, Tax Code, do not
apply to a tax imposed under this section.
(e) A tax imposed under this section or the repeal or
reduction of a tax under this section takes effect on the first day
of the calendar quarter occurring after the date on which the
comptroller receives the copy of the resolution as required by
Section 323.405(b), Tax Code.
(f) On adoption of the tax authorized by this section, there
is imposed a tax at the rate approved on the receipts from the sale
at retail of taxable items within the district, and an excise tax on
the use, storage, or other consumption within the district of
taxable items purchased, leased, or rented from a retailer within
the district during the period that the tax is in effect. The rate
of the excise tax is the same as the rate of the sales tax portion of
the tax and is applied to the sales price of the taxable item. With
respect to a taxable service, "use" means the derivation in the
district of a direct or indirect benefit from the service.
(g) An election to authorize, reduce, or repeal a limited
sales and use tax may be called by order of the board and must be
held on the next available uniform election date that occurs 45 or
more days after the date on which the order calling the election was
passed. The district shall provide notice of the election and shall
hold and conduct the election in the manner prescribed by Chapter
54, Water Code, for bond elections for municipal utility districts.
The ballots shall be printed to provide for voting for or against
the appropriate one of the following propositions:
(1) "Adoption of a ___ percent district sales and use
tax within the district";
(2) "Reduction of the district sales and use tax
within the district from ___ percent to ___ percent"; or
(3) "Abolition of the district sales and use tax
within the district."
(h) The district may examine and receive information
related to the imposition, assessment, and collection of sales and
use taxes to the same extent as if the district were a municipality.
SECTION 27. BONDS. (a) The board may issue bonds of the
district in the manner provided by Subchapter J, Chapter 375, Local
Government Code, except that Sections 375.207 and 375.208, Local
Government Code, do not apply.
(b) If the district issues bonds for the primary purpose of
providing water, sewage, or drainage facilities, the district must
obtain the commission's approval in the manner provided by Chapter
49, Water Code.
(c) In addition to the sources of money described by
Subchapter J, Chapter 375, Local Government Code, the bonds of the
district may be secured and made payable, wholly or partly, by a
pledge of any part of the net proceeds the district receives from a
specified portion of the sales and use tax authorized by this Act.
SECTION 28. INTERLOCAL AGREEMENTS. (a) The district and a
municipality, any part of which is located in the boundaries of the
district or impact area defined as provided by Section 17 of this
Act, may enter into an interlocal agreement to:
(1) accomplish an improvement project; or
(2) provide for a facility, service, or equipment from
the district for the benefit of the municipality.
(b) Payment for the improvement project, facility, service,
or equipment may be made or pledged by the municipality to the
district out of any money the municipality collects under Chapter
351, Tax Code, or out of any other available money.
SECTION 29. DISSOLUTION. (a) Subchapter M, Chapter 375,
Local Government Code, governs the dissolution of the district,
except that Section 375.263 of that subchapter does not apply to the
district.
(b) On dissolution of the district, the board shall transfer
ownership of all property and assets of the district to:
(1) Montgomery County; or
(2) if on the date of dissolution of the district more
than 50 percent of the territory in the district is located in the
corporate limits of a municipality, that municipality.
SECTION 30. ADDITIONAL LEGISLATIVE FINDINGS. The
legislature finds that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the commission;
(2) the commission has filed its recommendations
relating to this Act with the governor, lieutenant governor, and
speaker of the house of representatives within the required time;
and
(3) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 31. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.