By:  Callegari (Senate Sponsor - Ogden)                           H.B. No. 3587
	(In the Senate - Received from the House May 24, 2003; 
May 24, 2003, read first time and referred to Committee on Natural 
Resources; May 26, 2003, reported favorably, as amended, by the 
following vote:  Yeas 7, Nays 0; May 26, 2003, sent to printer.)


COMMITTEE AMENDMENT NO. 1                                                By:  Armbrister


Amend HB 3587 as follows:                                                   
	On page 9, line 61, insert the following new sections and 
renumber subsequent sections accordingly:
	SECTION 15.  Section 386.001(2), Health and Safety Code, is 
amended to read as follows:
		(2)  "Affected county" includes:                                              
			(A)  Bastrop County;                                                         
			(B)  Bexar County;                                                           
			(C)  Caldwell County;                                                        
			(D)  Comal County;                                                           
			(E)  Ellis County;                                                           
			(F)  Gregg County;                                                           
			(G)  Guadalupe County;                                                       
			(H)  Harrison County;                                                        
			(I)  Hays County;                                                            
			(J)  Henderson County;                                                
			(K)  Hood County;                                                     
			(L)  Hunt County;                                                     
			(M)  Johnson County;                                                  
			(N) [(K)]  Kaufman County;                           
			(O) [(L)]  Nueces County;                            
			(P) [(M)]  Parker County;                            
			(Q) [(N)]  Rockwall County;                          
			(R) [(O)]  Rusk County;                              
			(S) [(P)]  San Patricio County;                      
			(T) [(Q)]  Smith County;                             
			(U) [(R)]  Travis County;                            
			(V) [(S)]  Upshur County;                            
			(W) [(T)]  Victoria County;                          
			(X) [(U)]  Williamson County; [and] 
			(Y) [(V)]  Wilson County; and                 
			(Z)  any other county designated as an affected 
county by commission rule because of deteriorating air quality.
	SECTION 16.  Section 386.053(d), Health and Safety Code, is 
amended to read as follows:
	(d)  The commission may propose revisions to the guidelines 
and criteria adopted under this section as necessary to improve the 
ability of the plan to achieve its goals.  Revisions may include, 
among other changes, adding additional pollutants, adding 
stationary engines or engines used in stationary applications, 
adding vehicles and equipment that use fuels other than diesel, or 
adjusting eligible program categories, as appropriate, to ensure 
that incentives established under this chapter achieve the maximum 
possible emissions reductions.  The commission shall make a 
proposed revision available to the public before the 45th day 
preceding the date of final adoption of the revision and shall hold 
at least one public meeting to consider public comments on the 
proposed revision before final adoption.
	SECTION 17.  Sections 386.101(6) and (9), Health and Safety 
Code, are amended to read as follows:
		(6)  "On-road diesel" means an on-road diesel-powered 
motor vehicle that has a gross vehicle weight rating of 8,500
[10,000] pounds or more.
		(9)  "Repower" means to replace an old engine powering 
an on-road or non-road diesel with a new engine, a used engine, a 
remanufactured engine, or electric motors, drives, or fuel cells[:
			[(A)  a new engine that emits at least 30 percent 
less than the oxides of nitrogen emissions standard required by 
federal regulation for the current model year for that engine;
			[(B)  an engine manufactured later than 1987 that 
emits at least 30 percent less than the oxides of nitrogen emissions 
standard emitted by a new engine certified to the baseline oxides of 
nitrogen emissions standard for that engine;
			[(C)  an engine manufactured before 1988 that 
emits not more than 50 percent of the oxides of nitrogen emissions 
standard emitted by a new engine certified to the baseline oxides of 
nitrogen emissions standard for that engine; or
			[(D)  electric motors, drives, or fuel cells].              
	SECTION 18.  Section 386.102(b), Health and Safety Code, is 
amended to read as follows:
	(b)  Projects that may be considered for a grant under the 
program include:  
		(1)  purchase or lease of on-road or non-road diesels;                 
		(2)  emissions-reducing retrofit projects for on-road 
or non-road diesels;  
		(3)  emissions-reducing repower projects for on-road 
or non-road diesels;   
		(4)  purchase and use of emissions-reducing add-on 
equipment for on-road or non-road diesels;
		(5)  development and demonstration of practical, 
low-emissions retrofit technologies, repower options, and advanced 
technologies for on-road or non-road diesels with lower emissions 
of oxides of nitrogen;
		(6)  use of qualifying fuel; [and]                           
		(7)  implementation of infrastructure projects; and                    
		(8)  replacement of on-road or non-road diesels with 
newer on-road or non-road diesels.
	SECTION 19.  Section 386.103(a), Health and Safety Code, is 
amended to read as follows:
	(a)  Any person as defined by Section 382.003 that owns one 
or more on-road or non-road diesels that operate primarily within a 
nonattainment area or affected county of this state or that 
otherwise contributes to the state inventory of emissions of oxides 
of nitrogen may apply for a grant under the program.  The commission 
may adopt guidelines to allow a person other than the owner to apply 
for and receive a grant in order to improve the ability of the 
program to achieve its goals.
	SECTION 20.  Section 386.104(f), Health and Safety Code, is 
amended to read as follows:
	(f)  A proposed retrofit, repower, replacement, or add-on 
equipment project must document, in a manner acceptable to the 
commission, a reduction in emissions of oxides of nitrogen of at 
least 30 percent compared with the baseline emissions adopted by 
the commission for the relevant engine year and application.  After 
study of available emissions reduction technologies, after public 
notice and comment, and after consultation with the advisory board, 
the commission may revise the minimum percentage reduction in 
emissions of oxides of nitrogen required by this subsection to 
improve the ability of the program to achieve its goals.
	SECTION 21.  Section 386.105, Health and Safety Code, is 
amended by adding Subsection (e) to read as follows:
	(e)  The commission may allow for the apportionment of 
credits associated with a project between the plan and another 
program or entity if the part of the credit assigned to the program 
that is part of the plan still meets any applicable 
cost-effectiveness criteria.
	SECTION 22.  Section 386.106(a), Health and Safety Code, is 
amended to read as follows:
	(a)  Except as provided by Section 386.107 and except for 
infrastructure projects and infrastructure purchases that are part 
of a broader retrofit, repower, replacement, or add-on equipment 
project, the commission may not award a grant for a proposed project 
the cost-effectiveness of which, calculated in accordance with 
Section 386.105 and criteria developed under that section, exceeds 
$13,000 per ton of oxides of nitrogen emissions reduced in the 
nonattainment area or affected county for which the project is 
proposed.  This subsection does not restrict commission authority 
under other law to require emissions reductions with a 
cost-effectiveness that exceeds $13,000 per ton.
	SECTION 23.  Section 386.112(b), Health and Safety Code, is 
amended to read as follows:
	(b)  The program shall authorize statewide incentives for 
the reimbursement of incremental costs for the purchase or lease, 
according to the schedule provided by Section 386.113, of new 
on-road diesels that are certified by the United States 
Environmental Protection Agency or the California Air Resources 
Board to an emissions standard provided by Section 386.113 if the 
purchaser or lessee of the on-road diesel agrees to register the 
vehicle in this state and to operate the on-road diesel in this 
state for not less than 75 percent of the on-road diesel's annual 
mileage.
	SECTION 24.  Subchapter C, Chapter 386, Health and Safety 
Code, is amended by adding Section 386.115 to read as follows:
	Sec. 386.115.  MODIFICATION OF VEHICLE ELIGIBILITY.  After 
evaluating the availability of vehicles meeting the emissions 
standards and after public notice and comment, the commission, in 
consultation with the advisory board, may expand the program to 
include other on-road vehicles, regardless of fuel type used, that 
meet the emissions standards, have a gross vehicle weight rating of 
greater than 8,500 pounds, and are purchased or leased in lieu of a 
new on-road diesel.
	SECTION 25.  Chapter 368, Health and Safety Code, is amended 
by adding Section 386.116 to read as follows:
	Section 386.116.SMALL BUSINESS INCENTIVES.  (a)  In this 
section, "small business" means a business owned by a person who:
	(1)  owns and operates not more than two vehicles, one of 
which is:   
		(A)  an on-road diesel with a pre-1994 engine model; or                
		(B)  a non-road diesel with an engine with uncontrolled 
emissions; and
	(2)  has owned the vehicle described by Subdivision (1)(A) or 
(B) for more than one year.
	(b)  The commission by rule shall develop a method of 
providing fast and simple access to grants under this subchapter 
for a small business.
	(c)  The commission shall publicize and promote the 
availability of grants under this section to encourage the use of 
vehicles that produce fewer emissions.
	(d)  On or before December 1 of each even-numbered year, the 
commission shall report commission actions and results under this 
section to the governor, lieutenant governor, and speaker of the 
house of representatives.
	SECTION 26.  Section 386.202(b), Health and Safety Code, is 
amended to read as follows:
	(b)  Programs approved under this subchapter and other 
energy efficiency programs administered by the utility commission
must include energy conservation programs for the retirement of 
materials and appliances that contribute to energy consumption or
peak energy demand to ensure the reduction of energy consumption,
energy demand, or peak loads, and associated emissions of air 
contaminants.
	SECTION 27.  Section 386.252, Health and Safety Code, is 
amended to read as follows:
	Sec. 386.252.  USE OF FUND.  (a)  Money in the fund may be 
used only to implement and administer programs established under 
the plan and shall be allocated as follows:
		(1)  for the diesel emissions reduction incentive 
program, 87.5 [72] percent of the money in the fund, of which not 
more than  [three percent may be used for infrastructure projects 
and not more than] 10 percent may be used for on-road diesel 
purchase or lease incentives;
		(2)  [for the motor vehicle purchase or lease incentive 
program, 15 percent of the money in the fund;
		[(3)  for the energy efficiency grant program, 7.5 
percent of the money in the fund;
		[(4)]  for the new technology research and development 
program, 9.5[7.5] percent of the money in the fund, of which up to 
$250,000 is allocated for administration, up to $200,000 is 
allocated for a health effects study, [and] $500,000 is to be 
deposited in the state treasury to the credit of the clean air 
account created under Section 382.0622 to supplement funding for 
air quality planning activities in affected counties, and not less 
than 20 percent is to be allocated each year to support research 
related to air quality for the Houston-Galveston-Brazoria and 
Dallas-Fort Worth nonattainment areas by a nonprofit organization 
based in Houston.
		(3) [(5)]  for administrative costs incurred by [the 
utility commission,] the commission[, the comptroller,] and the 
laboratory, three percent.
	(b)  Up to 25 [15] percent of the money allocated under 
Subsection (a) to a particular program and not expended under that 
program by January [March] 1 of the second fiscal year of a fiscal 
biennium may be used for another program under the plan as 
determined by the commission in consultation with the advisory 
board.
	SECTION 28.  Section 387.003(b), Health and Safety Code, is 
amended to read as follows:
	(b)  Under the program, the Texas Council on Environmental 
Technology shall provide grants to be used to support development 
of emissions-reducing technologies that may be used for projects 
eligible for awards under Chapter 386 and other new technologies 
that show promise for commercialization.  The primary objective of 
this chapter is to promote the development of commercialization 
technologies that will support projects that may be funded under 
Chapter 386 and this chapter, including advanced technologies such 
as fuel cells, catalysts, and fuel additives.
	SECTION 29.  Section 387.006(a), Health and Safety Code, is 
amended to read as follows:
	(a)  An application for a technology grant under this chapter 
must show clear and compelling evidence that:
		(1)  the proposed technology project has a strong 
commercialization plan and organization; and
		(2)  the technology proposed for funding:                                     
			(A)  is likely to be offered for commercial sale 
in this state as soon as practicable but no later than [within] five 
years after the date of the application for funding; and
			(B)  once commercialized, will offer 
opportunities for projects eligible for funding under Chapter 386.
	SECTION 30.  Section 388.003, Health and Safety Code, is 
amended by adding Subsection (i) to read as follows:
	(i)  A building certified by a national, state, or local 
accredited energy efficiency program shall be considered in 
compliance.
	SECTION 31.  Section 388.004, Health and Safety Code, is 
amended to read as follows:
	Section 388.004.  ENFORCEMENT OF ENERGY STANDARDS OUTSIDE OF 
MUNICIPALITY.  (a)  For construction outside of the local 
jurisdiction of a municipality:
		(1)  a building certified by a national, state, or 
local accredited energy efficiency program shall be considered in 
compliance;
		(2)  a building with inspections from private 
code-certified inspectors using the energy efficiency chapter of 
the International Residential Code or International Energy 
Conservation Code shall be considered in compliance; and
		(3)  a builder who does not have access to either of the 
above methods for a building shall certify compliance using a form 
provided by the laboratory, enumerating the code-compliance 
features of the building.
	(b)  A builder shall retain until the third anniversary of 
the date on which compliance is achieved the original copy of any 
documentation that establishes compliance under this section.  The 
builder on receipt of any compliance documentation shall provide a 
copy to the owner of the building.
	(c)  A single-family residence built in the unincorporated 
area of a county the construction of which was completed on or after 
September 1, 2001, but not later than August 31, 2002, shall be 
considered in compliance.
	SECTION 32.  Chapter 388, Health and Safety Code, is amended 
by adding Sections 388.009 and 388.010 to read as follows:
	Sec. 388.009.  ENERGY-EFFICIENT BUILDING PROGRAM. (a)  In 
this section, "National Housing Act" means Section 203(b), (i), or 
(k) of the National Housing Act (12 U.S.C. Sections 1709(b), (i), 
and (k), as amended.
	(b)  The General Land Office, in consultation with the 
laboratory, the commission, and an advisory committee appointed by 
the General Land Office, may develop en energy-efficient building 
accreditation program for buildings that exceed the building energy 
performance standards under Section 388.003 by 15 percent or more.
	(c)  If the General Land Office adopts a program under this 
section, the General Land Office, in consultation with the 
laboratory, shall update the program on or before December 1 of each 
even-numbered year using the best available energy-efficient 
building practices.
	(d)  If the General Land Office adopts a program under this 
section, the program shall use a checklist system to produce an 
energy-efficient building scorecard to help:
		(1)  home buyers compare potential homes and, by 
providing a copy of the completed scorecard to a mortgage lender, 
qualify for energy-efficient mortgages under the National Housing 
Act; and
		(2)  communities qualify for emissions reduction 
credits by adopting codes that meet or exceed the energy-efficient 
building or energy performance standards established under this 
chapter.
	(e)  The General Land Office may establish a public 
information program to inform homeowners, sellers, buyers, and 
others regarding energy-efficient building ratings.
	(f)  If the General Land Office adopts a program under this 
section, the laboratory shall establish a system to measure the 
reduction in energy and emissions produced under the 
energy-efficient building program and report those savings to the 
commission.
	Sec. 388.010.  OUTREACH TO NEAR-NONATTAINMENT AREAS.  The 
commission shall conduct outreach to near-nonattainment areas and 
affected counties on the benefits of implementing energy efficiency 
initiatives, including the promotion of energy-efficient building 
programs and urban heat island mitigation techniques, as a way to 
meet air quality attainment goals under the federal Clean Air Act 
(42 U.S.C. Section 7401 et seq.).
	SECTION 33.  Chapter 389, Health and Safety Code, is amended 
by adding Section 389.003 to read as follows:
	Sec. 389.003.  COMPUTING ENERGY EFFICIENCY EMISSIONS 
REDUCTIONS.  The commission shall develop a method to use in 
computing emissions reductions obtained through energy efficiency 
initiatives.
	SECTION 34.  Subchapter H, Chapter 2155, Government Code, is 
amended by adding Section 2155.451 to read as follows:
	Sec. 2155.451.  VENDORS THAT MEET OR EXCEED AIR QUALITY 
STANDARDS.  (a)  This section applies only to a contract to be 
performed, wholly or partly, in an affected county, as that term is 
defined by Section 386.001, Health and Safety Code.
	(b)  The commission and state agencies procuring goods and 
services may:
		(1)  give preference to goods or services of a vendor 
that demonstrates that the vendor meets or exceeds any state or 
federal environmental standards, including voluntary standards, 
relating to air quality; or
		(2)  require that a vendor demonstrate that the vendor 
meets or exceeds any state or federal environmental standards, 
including voluntary standards, relating to air quality.
	SECTION 35.  Subchapter Z, Chapter 271, Local Government 
Code, is amended by adding Section 271.907 to read as follows:
	Sec. 271.907.  VENDORS THAT MEET OR EXCEED AIR QUALITY 
STANDARDS.  (a)  In this section, "governmental agency" has the 
meaning assigned by the Section 271.003.
	(b)  This section applies only to a contract to be performed, 
wholly or partly, in an affected county, as that term is defined by 
Section 386.001, Health and Safety Code.
	(c)  A governmental agency procuring goods or services may:             
		(1)  give preference to goods or services of a vendor 
that demonstrates that the vendor meets or exceeds any state or 
federal environmental standards, including voluntary standards, 
relating to air quality; or
		(2)  require that a vendor demonstrate that the vendor 
meets or exceeds any state or federal environmental standards, 
including voluntary standards, relating to air quality.
	SECTION 36.  Section 151.0515, Tax Code, is amended by 
amending Subsections (a), (b), and (c) and adding Subsection (b-1) 
to read as follows:
	(a)  In this section, "equipment" includes all off-road, 
heavy-duty diesel equipment [classified as construction 
equipment], other than implements of husbandry used solely for 
agricultural purposes, including:
		(1)  pavers;                                                                  
		(2)  tampers/rammers;                                                         
		(3)  plate compactors;                                                        
		(4)  concrete pavers;                                                         
		(5)  rollers;                                                                 
		(6)  scrapers;                                                                
		(7)  paving equipment;                                                        
		(8)  surface equipment;                                                       
		(9)  signal boards/light plants;                                              
		(10)  trenchers;                                                              
		(11)  bore/drill rigs;                                                        
		(12)  excavators;                                                             
		(13)  concrete/industrial saws;                                               
		(14)  cement and mortar mixers;                                               
		(15)  cranes;                                                                 
		(16)  graders;                                                                
		(17)  off-highway trucks;                                                     
		(18)  crushing/processing equipment;                                          
		(19)  rough terrain forklifts;                                                
		(20)  rubber tire loaders;                                                    
		(21)  rubber tire tractors/dozers;                                            
		(22)  tractors/loaders/backhoes;                                              
		(23)  crawler tractors/dozers;                                                
		(24)  skid steer loaders;                                                     
		(25)  off-highway tractors; [and]                            
		(26)  Dumpsters/tenders; and                                           
		(27)  mining equipment;                                                
	(b)  In each county in this state, a surcharge is imposed on 
the retail sale, lease, or rental of new or used equipment in an 
amount equal to two [one] percent of the sale price or the lease or 
rental amount.
	(b-1)  In each county in this state, a surcharge is imposed 
on the storage, use, or other consumption in this state of new or 
used equipment.  The surcharge is at the same percentage rate as is 
provided by Subsection (b) on the sales price or the lease or rental 
amount of the equipment.
	(c)  The surcharge shall be collected at the same time and in 
the same manner and shall be administered and enforced in the same 
manner as the tax imposed under this chapter [subchapter].  The 
comptroller shall adopt any additional procedures needed for the 
collection, administration, and enforcement of the surcharge 
authorized by this section and shall deposit all remitted 
surcharges to the credit of the Texas emissions reduction plan 
fund.
	SECTION 37.  Section 152.0215(a), Tax Code, is amended to 
read as follows:   
	(a)  A surcharge is imposed on every retail sale, [or] lease, 
or use of every on-road diesel motor vehicle that is over 14,000 
pounds [and is of a model year 1996 or earlier] and that is sold,
[or] leased, or used in this state.  The amount of the surcharge is 
two [2.5] percent of the total consideration.
	SECTION 38.  Section 224.153, Transportation Code, amended 
by adding Subsection (d) to read as follows:
	(d)  The department may not authorize vehicles addressed in 
Subsection (c) to use a high occupancy vehicle lane if such use 
would violate federal transit or highway funding restrictions.
	SECTION 39.  Sections 501.138(a) and (b), Transportation 
Code, are amended to read as follows:
	(a)  An applicant for a certificate of title, other than the 
state or a political subdivision of the state, must pay the county 
assessor-collector a fee of:  [$13].
		(1)  $33 if the applicant's residence is a county 
located within a non-attainment area as defined under Section 
107(d) of the federal Clean Air Act (U.S.C. Section 7407), as 
amended, or is an affected county, as defined by Section 386.01, 
Health and Safety Code; or
		(2)  $25 if the applicant's residence is any other 
county.           
	(b)  The county assessor-collector shall send:                                 
		(1)  $5 of the fee to the county treasurer for deposit 
in the officers' salary fund; [and]
		(2)  $8 of the fee to the department:                                         
			(A)  together with the application within the time 
prescribed by Section 501.023; or
			(B)  if the fee is deposited in an 
interest-bearing account or certificate in the county depository or 
invested in an investment authorized by Subchapter A, Chapter 2256, 
Government Code, not later than the 35th day after the date on which 
the fee is received; and
		(3)  The following amount to the comptroller at the 
time and in the manner prescribed by the comptroller:
			(A)  $20 of the fee if the applicant's residence 
is a county located within a non-attainment area as defined under 
Section 107(d) of the federal Clean Air Act (42 U.S.C. Section 
7407), as amended, or is an affected county, as defined by Section 
386.001, Health and Safety Code; or
			(B)  $12 of the fee if the applicant's residence 
is any other county.
			(C)  Fees collected under this subsection to be 
sent to the comptroller shall be deposited as follows:
		(1)  before September 1, 2008, to the credit of the 
Texas emissions reduction fund; and
		(2)  after September 1, 2008, to the credit of the Texas 
Mobility Fund.
	SECTION 40.  Section 545.353, Transportation Code, is 
amended by adding Subsection (j) to read as follows:
	(j)  The commission may not determine or declare, or agree to 
determine or declare, a prima facie speed limit for environmental 
purposes on a part of the highway system.
	SECTION 41.  Section 386.157, Health and Safety Code, and 
Section 386.159, Health and Safety Code, are repealed.
	SECTION 42.  (a)  Except as provided by Subsection (b) of 
this section, 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.
	(b)  Sections 24 and 25 of this Act take effect on the first 
day of the first month beginning on or after the earliest date on 
which this Act may take effect 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 effect before September 1, 2003, Sections 24 and 
25 of this Act take effect September 1, 2003.  The comptroller of 
public accounts may adopt emergency rules for the implementation of 
Sections 36 and 37 of this Act.
	(c)  Section 40 of this Act does not affect speed limits 
which have been approved by the Transportation Commission prior to 
the effective date of this Act.

A BILL TO BE ENTITLED
AN ACT
relating to powers, duties, and name of the Energy Corridor Management District. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter K, Chapter 376, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows:
SUBCHAPTER K. HARRIS COUNTY IMPROVEMENT
[ENERGY CORRIDOR MANAGEMENT] DISTRICT NO. 4
SECTION 2. Section 376.451(a), Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: (a) The Harris County Improvement [Energy Corridor Management] District No. 4 is created as a special district under Section 59, Article XVI, Texas Constitution. SECTION 3. Section 376.452, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Subsection (d) to read as follows: (d) By creating the district and in authorizing the City of Houston, Harris County, and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution. SECTION 4. Section 376.453(3), Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: (3) "District" means the Harris County Improvement [Energy Corridor Management] District No. 4. SECTION 5. Section 376.459, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Subsection (d) to read as follows: (d) If the board determines that it is in the best interest of the district, the board by resolution may increase or decrease the number of directors on the board except that the board may not consist of fewer than seven or more than 15 directors. SECTION 6. Section 376.461, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Subsection (c) to read as follows: (c) A nonvoting director is not included for the purpose of establishing a board quorum. SECTION 7. Section 376.464(a), Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: (a) The district may exercise the powers given to a corporation created under Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), including the power to own, operate, acquire, construct, lease, improve, or maintain a project described by that section. SECTION 8. Section 376.467, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 376.467. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. The board may not finance a service or improvement project with assessments under this subchapter unless a written petition requesting the improvement or service has been filed with the board. The petition must be signed by: (1) the owners of a majority of the assessed value of real property in the district subject to the assessment as determined by the most recent certified county property tax rolls; or (2) at least 25 persons who own real property [land] in the district, if there are more than 25 persons who own real property in the district as determined by the most recent certified county property tax rolls. SECTION 9. Section 376.468, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended by amending Subsection (a) and adding Subsection (c) to read as follows: (a) The [In addition to the elections the district must hold under Subchapter L, Chapter 375, the] district shall hold an election in the manner provided by Subchapter L, Chapter 375, [that subchapter] to obtain voter approval before the district imposes a maintenance tax or issues bonds payable from ad valorem taxes [or assessments]. (c) Section 375.243 does not apply to the district. SECTION 10. Section 376.470, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Subsection (d) to read as follows: (d) The board may make a correction to or deletion from the assessment roll without notice and hearing required for an additional assessment if the correction or deletion does not increase the amount of a parcel of land. SECTION 11. Subchapter K, Chapter 376, Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, is amended by adding Sections 376.478, 376.479, 376.480, and 376.481 to read as follows: Sec. 376.478. TAX AND ASSESSMENT ABATEMENTS. The district may grant in the manner authorized by Chapter 312, Tax Code, an abatement for a tax or assessment owed to the district. Sec. 376.479. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to an organization that: (1) enjoys tax-exempt status under Section 501(c)(3), 501(c)(4), or 501(c)(6), Internal Revenue Code of 1986 (26 U.S.C. Section 501), as amended; and (2) performs services or provides activities consistent with the furtherance of the purposes of the district. Sec. 376.480. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in: (1) a tax increment reinvestment zone created by the municipality under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone created by the municipality under Chapter 312, Tax Code; or (3) an enterprise zone created by the municipality under Chapter 2303, Government Code. Sec. 376.481. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district may establish and provide for the administration of one or more programs, including programs for making loans and grants of public money and providing personnel and services of the district, to promote state or local economic development and to stimulate business and commercial activity in the district. (b) For purposes of this section, the district has all of the powers and authority of a municipality under Chapter 380. SECTION 12. Sections 376.459(c) and 376.460(b), Local Government Code, as added by Chapter 1376, Acts of the 77th Legislature, Regular Session, 2001, are repealed. SECTION 13. (a) The legislature validates and confirms all acts and proceedings of the Harris County Improvement District No. 4 and the district's board of directors that occurred before the effective date of this Act. (b) This section does not apply to any matter that on the effective date of this Act: (1) is involved in litigation, if the litigation ultimately results in the matter being held invalid by a final judgment of a court with jurisdiction; or (2) has been held invalid by a court with jurisdiction. SECTION 14. 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.
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