H.B. No. 3629
AN ACT
relating to the creation of the Spring Branch Area Community
Improvement District and the Temple Health and Bioscience Economic
Development District; providing the authority to issue bonds and
impose a tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SUBCHAPTER A. SPRING BRANCH AREA COMMUNITY IMPROVEMENT DISTRICT
SECTION 1. CREATION OF DISTRICT. (a) The Spring Branch
Area Community Improvement District is a special district created
under Section 59, Article XVI, Texas Constitution.
(b) The board by resolution may change the name of the
district.
SECTION 2. DEFINITIONS. In this subchapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Spring Branch Area Community
Improvement District.
SECTION 3. DECLARATION OF INTENT. (a) The creation of the
district is essential to accomplish the purposes of Sections 52 and
52-a, Article III, and Section 59, Article XVI, Texas Constitution,
and to accomplish other public purposes stated in this subchapter.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the area of the district.
(c) This subchapter and the creation of the district may not
be interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of the effective date of
this subchapter to the area in the district. The district is
created to supplement and not to supplant the county or city
services provided in the area in the district.
SECTION 4. BOUNDARIES. The district includes all the
territory contained in the following described area:
POINT OF BEGINNING, the southwest corner of the intersection
of the West Sam Houston Parkway right-of-way and the Interstate
Highway 10 right-of-way; thence north along the west boundary of
the West Sam Houston Parkway right-of-way to the north boundary of
Clay Road right-of-way; thence east along the north boundary of
Clay Road right-of-way continuing along the north boundary of W.
43rd Street right-of-way to the east boundary of Hempstead Highway
right-of-way; thence southeast along the north boundary of
Hempstead Highway right-of-way to the east boundary of the Loop 610
right-of-way; thence south along the east boundary of Loop 610
right-of-way to the south boundary of Old Katy Road right-of-way;
thence west along the south boundary of Old Katy Road right-of-way
to the west boundary of North Post Oak Road right-of-way; thence
south along the west boundary of North Post Oak Road right-of-way to
the south boundary of Interstate Highway 10 right-of-way; thence
west along the south boundary of Interstate Highway 10 right-of-way
to the POINT OF BEGINNING.
SAVE AND EXCEPT any land located within the boundaries of the
City of Spring Valley and City of Hilshire Village.
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 issue any type of bond for a purpose for
which the district is created or to pay the principal of and
interest on a bond;
(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 included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this subchapter.
(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 district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding to preserve, maintain, and
enhance the economic health and vitality of the district as a
community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(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 subchapter, 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 SUBCHAPTER. This subchapter
shall be liberally construed in conformity with the findings and
purposes stated in this subchapter.
SECTION 9. NOTICE AND APPROVAL OF PROPERTY OWNERS. (a) Not
later than the 30th day before the date of the first board meeting,
written notice must be mailed by certified mail, return receipt
requested, to each property owner in the district who could be
subject to assessment by the district at the address of the property
owner as reflected on the most recent certified tax appraisal roll
for Harris County.
(b) The notice under Subsection (a) of this section must
include:
(1) a description and definition of the Spring Branch
Area Community Improvement District;
(2) the purpose of the district;
(3) a statement that the district, by action of the
board, may charge an assessment for improvements to be made in the
district; and
(4) the time, date, and location of the first board
meeting.
SECTION 10. BOARD OF DIRECTORS IN GENERAL. (a) The
district is governed by a board of 13 directors appointed under
Section 12 of this subchapter.
(b) Directors serve staggered terms of four years, with
seven directors' terms expiring June 1 of an odd-numbered year and
six directors' terms expiring June 1 of the following odd-numbered
year.
SECTION 11. QUALIFICATIONS. (a) To be qualified to serve
as a director, a person must be at least 18 years old and:
(1) an owner of property subject to assessment by the
district;
(2) an owner of a beneficial interest in a trust that
owns property subject to assessment by the district; or
(3) an agent, employee, or tenant nominated by a
person described in Subdivision (1) or (2).
(b) Section 375.063, Local Government Code, does not apply
to the district.
SECTION 12. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the City of Houston shall appoint
directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
SECTION 13. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)
Except as provided by this section:
(1) a director may participate in all board votes and
decisions; and
(2) Chapter 171, Local Government Code, governs
conflicts of interest for directors.
(b) Section 171.004, Local Government Code, does not apply
to the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary benefit
from a board action shall file a one-time affidavit declaring the
interest. An additional affidavit is not required if the
director's interest changes. After the affidavit is filed with the
board secretary, the director may participate in a discussion or
vote on that action if:
(1) a majority of the directors have a similar
interest in the same entity; or
(2) all other similar business or charitable entities
in the district will receive a similar pecuniary benefit.
(c) A director who is also an officer or employee of a public
entity may not participate in the discussion of or vote on a matter
regarding a contract with that same public entity.
(d) For purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that
a person would have a substantial interest in a business entity
under Section 171.002, Local Government Code.
SECTION 14. ELECTRONIC TRANSMISSIONS. (a) The district
may acquire, operate, or charge fees for the use of the district
conduits for:
(1) another person's:
(A) telecommunications network;
(B) fiber-optic cable; or
(C) electronic transmission line; or
(2) any other type of transmission line or supporting
facility.
(b) The district may not require a person to use a district
conduit.
SECTION 15. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to:
(1) a corporation created under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes); and
(2) a housing finance corporation created under
Chapter 394, Local Government Code, to provide housing or
residential development projects in the district.
SECTION 16. AGREEMENTS; GRANTS. (a) The district may make
an agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
SECTION 17. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract to provide law
enforcement services in the district for a fee.
SECTION 18. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act on behalf of the district in implementing a project
or providing a service authorized by this subchapter.
(b) The board shall appoint the board of directors of a
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Chapter 431,
Transportation Code.
(c) The nonprofit corporation:
(1) has the powers of and is considered for purposes of
this subchapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this subchapter.
SECTION 19. 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 that 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 assessment as determined
by the most recent certified tax appraisal roll for Harris County;
or
(2) at least 50 owners of real property in the district
that will be subject to the assessment, if more than 50 persons own
real property subject to the assessment in the district as
determined by the most recent certified tax appraisal roll for
Harris County.
SECTION 20. ASSESSMENTS. (a) The board by resolution may
impose and collect an assessment for any purpose authorized by this
subchapter.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the resolution of
the board imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
SECTION 21. RESIDENTIAL PROPERTY. The district may not
impose an assessment, an impact fee, or any other requirement on
single-family detached residential property or on a residential
duplex, triplex, or fourplex.
SECTION 22. UTILITIES. The district may not impose an
impact fee or assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of an electric utility
or a power generation company as defined by Section 31.002,
Utilities Code, or a gas utility as defined by Section 101.003 or
121.001, Utilities Code, of a telecommunications provider as
defined by Section 51.002, Utilities Code, or of a person that
provides to the public cable television or advanced
telecommunications services.
SECTION 23. BONDS. (a) The district may issue bonds or
other obligations payable in whole or in part from assessments,
impact fees, revenue, grants, or other money of the district, or any
combination of those sources of money, to pay for any authorized
purpose of the district.
(b) The board may not issue bonds for a service or
improvement project under this subchapter unless a written petition
requesting that improvement or service has been filed with the
board. The petition must be signed by the owners of a majority of
the assessed value of real property in the district that will be
subject to the assessment as determined by the most recent
certified tax appraisal roll for Harris County.
(c) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
SECTION 24. DISBURSEMENTS OR TRANSFERS OF MONEY. The board
by resolution shall establish the number of directors' signatures
and the procedure required for a disbursement or transfer of the
district's money.
SECTION 25. COMPETITIVE BIDDING LIMIT. Section 375.221,
Local Government Code, applies to the district only for a contract
that has a value greater than $15,000.
SECTION 26. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
OUTSTANDING DEBT. (a) The board may vote to dissolve a district
that has debt. If the vote is in favor of dissolution, the district
shall remain in existence solely for the limited purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
(b) Section 375.264, Local Government Code, does not apply
to the district.
SECTION 27. INITIAL DIRECTORS. (a) The initial board
consists of the following persons:
Pos. No. Name of Director
1 Ronald Height
2 Glenn Smith
3 Catherine Barchfeld-Alexander
4 Kun C. Youn
5 Jim Jard
6 Al Hartman
7 Johnny H. Baker
8 Patricia A. Maddox
9 Pat Currie
10 Frank Liu
11 Lance H. Davis
12 Larry Levine
13 Everett P. Jackson
(b) Of the initial directors, the terms of directors
appointed for positions 1 through 7 expire June 1, 2005, and the
terms of directors appointed for positions 8 through 13 expire June
1, 2007.
(c) Section 12 of this subchapter does not apply to this
section.
(d) This section expires September 1, 2007.
SECTION 28. LEGISLATIVE FINDINGS. The legislature finds
that:
(1) proper and legal notice of the intention to
introduce this subchapter, setting forth the general substance of
this subchapter, has been published as provided by law, and the
notice and a copy of this subchapter 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 subchapter
to the Texas Commission on Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this subchapter with the
governor, lieutenant governor, and speaker of the house of
representatives within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) 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 subchapter
have been fulfilled and accomplished.
SECTION 29. EFFECTIVE DATE. This subchapter takes effect
immediately if this Act 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.
SUBCHAPTER B. TEMPLE HEALTH AND BIOSCIENCE ECONOMIC
DEVELOPMENT DISTRICT
ARTICLE 1. LEGISLATIVE FINDINGS AND INTENT; CONSTRUCTION OF
SUBCHAPTER
SECTION 1.001. DECLARATION OF LEGISLATIVE FINDINGS AND
INTENT. (a) The creation of a district under this subchapter is
essential to accomplish the purposes of Section 52-a, Article III,
and Section 59, Article XVI, Texas Constitution, and to accomplish
other public purposes stated in this subchapter.
(b) This subchapter is enabling legislation enacted to
further the public purposes under Section 52-a, Article III, Texas
Constitution.
(c) The creation of a district under this subchapter is
necessary to further the public purpose of improving the economy of
the state and the City of Temple by providing for the development of
health and bioscience operations and facilities.
(d) A district created under this subchapter serves the
public purposes stated in this section.
SECTION 1.002. CONSTRUCTION OF ACT. (a) This subchapter
shall be liberally construed in conformity with the legislative
findings and purposes set forth in this subchapter.
(b) Chapter 311, Government Code (Code Construction Act),
applies to this subchapter.
(c) A reference to a section without further identification
is a reference to a section of this subchapter.
ARTICLE 2. GENERAL PROVISIONS
SECTION 2.001. DEFINITIONS. In this subchapter:
(1) "Board" means the board of directors of the
district.
(2) "Bond" means an interest-bearing obligation
issued by the district under this subchapter, including a bond,
certificate, note, or other evidence of indebtedness.
(3) "City council" means the governing body of the
City of Temple.
(4) "Director" means a board member.
(5) "District" means the Temple Health and Bioscience
Economic Development District.
(6) "Project" means a project established under
Section 5.010 and includes the land, buildings, equipment,
facilities, infrastructure, improvements, and other property
necessary to accomplish the purposes of the project.
SECTION 2.002. NATURE OF DISTRICT. The district is a
special district and a political subdivision of this state under
Section 59, Article XVI, Texas Constitution.
ARTICLE 3. CREATION OF DISTRICT
SECTION 3.001. APPLICATION FOR PETITION TO CREATE DISTRICT.
(a) If 10 or more qualified voters of the City of Temple file a
written application with the city, the city shall issue to the
applicants a petition to be circulated among the qualified voters
of the city for the signatures of voters who desire that a local
option election be called in the city to determine whether to create
the district:
(1) with the power to impose an ad valorem tax not to
exceed 15 cents per $100 valuation of all taxable property in the
district; or
(2) without the power to impose an ad valorem tax.
(b) If the district is created without the power to impose
an ad valorem tax and 10 or more qualified voters of the City of
Temple file a written application with the city for a petition to
enable the district to impose a tax, the city shall issue to the
applicants a petition to be circulated among the qualified voters
of the city for the signatures of voters who desire to enable the
district to impose an ad valorem tax not to exceed 15 cents per $100
valuation of all taxable property in the district.
(c) At the request of petitioners under this section, a
petition for a local option election to determine whether the
district may impose an ad valorem tax may also express that at the
same election the district shall be authorized to issue bonds
payable in whole or in part from that ad valorem tax as permitted
under Section 6.010.
SECTION 3.002. HEADING, STATEMENT, AND ISSUE ON APPLICATION
FOR PETITION TO CREATE DISTRICT. (a) An application for a petition
under Section 3.001 to create the district with the power to impose
an ad valorem tax must be entitled: "Application for Local Option
Election Petition to Create the Temple Health and Bioscience
Economic Development District with the Power to Impose an Ad
Valorem Tax not to Exceed 15 Cents per $100 Valuation of all Taxable
Property in the District." The application must contain a
statement just before the signatures of the applicants that reads
substantially as follows: "The petitioners whose signatures appear
on this petition intend that the Temple Health and Bioscience
Economic Development District referred to in the issue set out
above be created." If the petition also seeks an election to
authorize the issuance of bonds by the district payable in whole or
in part from ad valorem taxes, the statement: "and to Issue Bonds
Payable in Whole or in Part from the Ad Valorem Tax" must be
appended to the end of the title specified in this subsection.
(b) An application for a petition under Section 3.001(a) to
create the district without the power to impose the ad valorem tax
must be entitled: "Application for Local Option Election Petition
to Create the Temple Health and Bioscience Economic Development
District." The application must contain a statement just before
the signatures of the applicants that reads substantially as
follows: "The petitioners whose signatures appear on this petition
intend that the Temple Health and Bioscience Economic Development
District referred to in the issue set out above be created."
(c) If the district initially is created without ad valorem
taxing authority, an application for a petition under Section
3.001(b) seeking an election to enable the district to impose an ad
valorem tax not to exceed 15 cents per $100 valuation of all taxable
property in the district must be entitled: "Application for Local
Option Election Petition to Enable the Temple Health and Bioscience
Economic Development District to Impose an Ad Valorem Tax not to
Exceed 15 Cents per $100 Valuation of all Taxable Property in the
District." The application must contain a statement just before
the signatures of the applicants that reads substantially as
follows: "The petitioners whose signatures appear on this petition
intend that the Temple Health and Bioscience Economic Development
District be enabled to impose an ad valorem tax not to exceed 15
cents per $100 valuation of all taxable property in the district."
If the petition also seeks an election to authorize the issuance of
bonds by the district payable in whole or in part from ad valorem
taxes, the statement: "and to Issue Bonds Payable in Whole or in
Part from the Ad Valorem Tax" must be appended to the title
specified by this subsection.
(d) Each petition must show the date it is issued by the City
of Temple and be serially numbered. Each page of a petition must
bear the same date and serial number.
SECTION 3.003. COPIES OF PETITION. (a) The City of Temple
shall supply as many copies of the petition as required by the
applicants but not to exceed more than one page of the petition for
every 10 registered voters in the city. Each copy shall bear the
date, number, and seal on each page as required on the original
petition.
(b) The City of Temple shall keep a copy of each petition and
a record of the applicants for that petition.
SECTION 3.004. FILING AND VERIFICATION OF PETITION. (a)
Not later than the 120th day after the date on which a petition is
issued by the City of Temple under Section 3.002, the applicants
requesting the petition may file a request with the City of Temple
for the petition to be verified under Subsection (b).
(b) If a request for verification is made under
Subsection (a), the City of Temple shall examine the names of the
signers of petitions and determine whether the signers of the
petition were qualified voters of the city at the time the petition
was issued. The City of Temple shall certify to the city council
the number of qualified voters signing the petition not later than
the 15th day after the date the request for verification was filed.
(c) A signature may not be counted under this section if
there is good reason to believe that:
(1) the signature is not the actual signature of the
purported signer;
(2) the voter registration certificate number is not
correct;
(3) the signature duplicates a name or the handwriting
used in any other signature on the petition; or
(4) the signer's residence address cannot be verified.
SECTION 3.005. REQUIREMENTS TO ORDER ELECTION. (a) Not
later than the date of the second regular session of the city
council convened after a petition has been verified under Section
3.004, the city council shall order a local option election to be
held on the issue set out in the petition if the petition contains
the following:
(1) the actual signatures of a number of qualified
voters of the City of Temple equal to at least 10 percent of the
registered voters of the city who voted in the most recent general
election in the city;
(2) a notation showing the residence address of each
signer;
(3) each signer's voter registration certificate
number; and
(4) each signer's printed name.
(b) The following shall be entered in the city council
minutes:
(1) the dates a petition is presented to and verified
by the City of Temple;
(2) the names of the signers; and
(3) the action taken on the petition.
SECTION 3.006. NOTICE AND CONDUCT OF ELECTION; RESULTS.
(a) If the requirements to order an election under Section 3.005
are met, the city council shall give notice of the election on the
issue set out in the verified petition by publishing a substantial
copy of the election order once a week for two consecutive weeks in
a newspaper with general circulation in the City of Temple. The
first publication must appear before the 14th day before the date
set for the election. If the election order includes the issue of
whether the district may issue bonds, the first publication must
appear before the 31st day before the date set for the election.
(b) The order calling the election must:
(1) define the district boundaries to be the
boundaries of the City of Temple as the boundaries of the city are
adjusted from time to time by the city; and
(2) call for the election to be held within those
boundaries.
(c) The ballot at an election held under this section must
be printed to permit voting for or against the proposition set forth
below that was covered by the verified petition:
(1) "Authorizing the creation of the Temple Health and
Bioscience Economic Development District and the imposition of an
ad valorem tax not to exceed the rate of 15 cents per $100 valuation
of all taxable property in the district";
(2) "Authorizing the creation of the Temple Health and
Bioscience Economic Development District and the imposition of an
ad valorem tax not to exceed the rate of 15 cents per $100 valuation
of all taxable property in the district and to issue bonds payable
in whole or in part from the ad valorem tax";
(3) "Authorizing the creation of the Temple Health and
Bioscience Economic Development District";
(4) "Authorizing the imposition of an ad valorem tax
not to exceed the rate of 15 cents per $100 valuation of all taxable
property in the district"; or
(5) "Authorizing the imposition of an ad valorem tax
not to exceed the rate of 15 cents per $100 valuation of all taxable
property in the district and to issue bonds payable in whole or in
part from the ad valorem tax."
(d) The district is created if a majority of the registered
voters of the proposed district voting at the election favor
creation. The district may impose an ad valorem tax not to exceed
the rate of 15 cents per $100 valuation of all taxable property in
the district if a majority of the registered voters of the district
voting at the election favor its imposition. The district may issue
bonds payable wholly or partially from ad valorem taxes if a
majority of the registered voters of the district voting at the
election favor the authorization.
(e) If a majority of the registered voters of the proposed
district voting at the election to create the district vote against
creating the district, another election on the question of creating
the district may not be held before the first anniversary of the
date of the most recent election concerning the creation. If a
majority of the registered voters of the district voting at the
election to establish the power of the district to impose an ad
valorem tax vote against the power, another election on the
question may not be held before the first anniversary of the date of
the most recent election concerning the question. If a majority of
the registered voters of the district voting at the election to
authorize the district to issue bonds payable wholly or partially
from ad valorem taxes vote against the authorization, another
election on the question may not be held before the first
anniversary of the date of the most recent election concerning the
question.
(f) The City of Temple shall hold an election provided under
this section on the earliest of the uniform election dates under
Section 41.001, Election Code, to occur following the adoption of
the order calling the election by the city council.
SECTION 3.007. TEMPORARY BOARD. (a) After creation of the
district under Section 3.006(d), the city council by resolution
shall appoint seven directors to serve on a temporary board.
(b) In the resolution, the city council shall stagger the
terms of the directors appropriately so that four directors serve
until directors are elected under Section 4.003(1) and three
directors serve until directors are elected under Section 4.003(2).
ARTICLE 4. BOARD OF DIRECTORS
SECTION 4.001. GOVERNING BODY. The district is governed by
a board of seven directors elected as provided by this subchapter.
SECTION 4.002. TERMS. Except as provided by Section 3.007,
directors serve staggered three-year terms.
SECTION 4.003. DATE OF ELECTIONS. The district shall hold
board elections as follows:
(1) four directors must be elected on the regular
election day on which certain members of the city council and the
mayor of the City of Temple are elected; and
(2) three directors must be elected on the regular
election day on which the other members of the city council of the
City of Temple are elected.
SECTION 4.004. QUALIFICATIONS. A director:
(1) must be a registered voter of the City of Temple;
and
(2) may not be:
(A) an elected official; or
(B) employed by the district or the City of
Temple.
SECTION 4.005. BOARD VACANCY. A vacancy in the office of
director shall be filled by the remaining directors for the
unexpired term.
SECTION 4.006. DIRECTOR'S BOND; OATH. (a) As soon as
practicable after a director is elected or appointed, the director
shall execute a bond for $10,000 payable to the district and
conditioned on the faithful performance of the director's duties.
(b) The bond must be approved by the board.
(c) Each director shall take the oath of office prescribed
by the constitution for public office.
(d) The bond and oath shall be filed with the district and
the district shall retain the bond and oath in its records.
SECTION 4.007. BOARD OFFICERS. (a) The board shall elect
from the board a presiding officer, a secretary, and any other
officers the board considers necessary.
(b) The board by resolution shall establish the powers and
duties of the officers, consistent with this subchapter.
SECTION 4.008. COMPENSATION; EXPENSES. A director serves
without compensation but is entitled to reimbursement for actual
and necessary expenses approved by the board.
SECTION 4.009. MEETINGS AND NOTICE. (a) The board may
establish regular meetings to conduct district business and may
hold special meetings at other times as necessary.
(b) The board shall provide the notice prepared under
Subchapter C, Chapter 551, Government Code, to the City of Temple's
secretary. In addition to the requirements imposed by that
subchapter on the district, the city shall post the notice at the
usual location at which notices of city council meetings are
posted.
SECTION 4.010. EMPLOYEES; PERSONS HIRED BY BOARD. (a) The
board shall employ any person the board considers necessary to
conduct district affairs, including:
(1) engineers;
(2) attorneys;
(3) financial advisors;
(4) economists;
(5) a general manager;
(6) a utility operator;
(7) bookkeepers;
(8) auditors; and
(9) clerical workers.
(b) The board by resolution shall determine the
compensation and terms of service of any person employed or hired by
the district.
(c) The board may remove any employee.
(d) The board may require an employee to execute a bond
payable to the district and conditioned on the faithful performance
of the person's duties.
ARTICLE 5. POWERS AND DUTIES
SECTION 5.001. GENERAL POWERS OF DISTRICT. The district
has all powers necessary or convenient to carry out and effect the
purposes and provisions of this subchapter.
SECTION 5.002. RULES. The board may adopt rules to govern
the district, including its operations, employees, and property.
SECTION 5.003. DISTRICT OFFICE. The board shall designate
and establish a district office in the City of Temple.
SECTION 5.004. PROPERTY. The district may exercise any
type of property right, including the power to acquire, sell, or
lease as lessee or lessor, regarding any type of property interest
in the district or for use in the district under terms and
conditions determined by the board.
SECTION 5.005. AGREEMENTS; GRANTS. The district may make
an agreement with or accept a gift, grant, or loan from any person
for any district purpose, including a contract to manage or
maintain a district project.
SECTION 5.006. COMPETITIVE BIDDING. (a) Except as
provided by Subsection (b), Section 375.221, Local Government Code,
applies to the district.
(b) Section 375.221, Local Government Code, does not apply
to a contract between the district and:
(1) another governmental entity;
(2) a nonprofit corporation, including a scientific
research corporation; or
(3) a corporation created under the Development
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
Statutes).
SECTION 5.007. RELATION TO OTHER LAW ON CONTRACTS. This
subchapter states the procedures necessary to award contracts and
supersedes any law or other requirement otherwise applicable to the
district regarding the award of contracts.
SECTION 5.008. FEES FOR USE OF DISTRICT IMPROVEMENTS. The
district may establish and maintain reasonable and
nondiscriminatory rates, fares, charges, rents, or other fees or
compensation for the use of the improvements constructed, operated,
or maintained by the district.
SECTION 5.009. PROGRAMS. (a) The district may establish
and provide for the administration of one or more programs to:
(1) promote state or local economic development; and
(2) stimulate business and commercial activity in the
district that relates to a project.
(b) As part of a program established under Subsection (a),
the district may:
(1) make loans or grants of public money for a public
purpose as provided by Section 52-a, Article III, Texas
Constitution; or
(2) provide district personnel and services for the
program.
(c) The district may contract with any person to administer
a program under this section.
SECTION 5.010. PROJECTS. (a) The district may establish
projects for:
(1) bioscience and health products, including
projects related to:
(A) research and development;
(B) invention and discovery;
(C) commercialization;
(D) production and manufacturing of goods and
products, including facilities for manufacturing; and
(E) development of production process and
delivery system purposes in, involved in, based on, or related to,
or intended to advance the state of knowledge, skill, and
understanding of, the biosciences, including:
(i) wet laboratories;
(ii) clean rooms;
(iii) dry laboratories;
(iv) research and development facilities;
(v) genetics facilities and equipment;
(vi) pharmaceutical facilities and
equipment;
(vii) biotechnology incubators;
(viii) bioscience and biotech health care
facilities;
(ix) biotech facilities;
(x) bioscience facilities; and
(xi) other similar projects;
(2) bioscience education, including health or biotech
education facilities regardless of any affiliation with other
institutions of higher, vocational, or job training education;
(3) access to public safety facilities and equipment;
(4) streets and roads;
(5) drainage services;
(6) wastewater services;
(7) potable water services;
(8) telecommunication facilities;
(9) demolition of existing structures;
(10) development and institution of water
conservation programs;
(11) chilled water services;
(12) steam services;
(13) industrial gases services;
(14) other utility and process and production
services; or
(15) the support of any other type of health or
bioscience projects.
(b) A project established under Subsection (a) must be
related to the bioscience or health purposes of the district.
SECTION 5.011. SUITS. (a) The district may sue and be
sued.
(b) Service of process in a suit may be made by serving any
two directors.
(c) The district may not be required to give security for
costs and may appeal from a judgment without giving a supersedeas or
cost bond.
SECTION 5.012. SEAL. The district may adopt a seal.
SECTION 5.013. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation
under the Texas Non-Profit Corporation Act (Article 1396-1.01 et
seq., Vernon's Texas Civil Statutes), including creation of a
scientific corporation. The nonprofit corporation shall assist and
act on behalf of the district in implementing a project or providing
a service authorized by this subchapter.
(b) The board shall appoint the board of directors of a
nonprofit corporation. The board may appoint a director of the
district's board to serve as a director of the nonprofit
corporation. The board of directors of the nonprofit corporation
shall serve in the same manner as the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
(c) The nonprofit corporation:
(1) has the powers of and is considered for purposes of
this subchapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this subchapter.
ARTICLE 6. GENERAL FINANCIAL PROVISIONS
SECTION 6.001. USE OF DISTRICT MONEY. The district may use
district money for any district purpose, including to pay:
(1) for projects; and
(2) district bonds or other obligations.
SECTION 6.002. INVESTMENTS. (a) The district may invest
money it receives under this subchapter.
(b) The district may hire a person to invest district money
on terms the board considers advisable.
SECTION 6.003. DISBURSEMENTS OR TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
SECTION 6.004. DEPOSITORY INSTITUTION. The district may
designate financial institutions to serve as the depository bank or
banks for the district.
SECTION 6.005. ACCOUNTS; FISCAL YEAR. (a) The district may
establish an accounting system for the district for each year.
(b) The district may establish a fiscal year for the
district.
SECTION 6.006. PROJECT FUND. (a) The district by
resolution shall establish a project fund.
(b) The district may establish separate accounts within the
project fund.
(c) The district shall deposit into the project fund all
district money, including:
(1) the proceeds from any ad valorem tax imposed by the
district;
(2) all revenue from the sale of district bonds or
other obligations; and
(3) any other money acquired or received by the
district.
SECTION 6.007. AUDIT. (a) The district shall contract with
an independent certified public accountant or a certified public
accounting firm to audit the district's affairs annually, including
the district's financial records. The contract must be a written
contract.
(b) The district shall make the audit available for
inspection by the public and the City of Temple.
SECTION 6.008. ASSESSMENTS. The district may impose an
assessment on property in the district, including a leasehold
interest, by agreement with the property owner.
SECTION 6.009. LIABILITIES. The district may incur
liabilities, including those incurred by:
(1) borrowing money on terms and conditions the board
determines; and
(2) issuing bonds or other obligations under Section
6.010.
SECTION 6.010. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds, including revenue bonds, or other
obligations to pay the costs of a project in the district.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
ARTICLE 7. AD VALOREM TAX
SECTION 7.001. IMPOSITION OF AD VALOREM TAX. If authorized
at an election held under Section 3.006, the district:
(1) may by order impose an annual ad valorem tax on
taxable property in the district to pay for projects; and
(2) shall by order impose an ad valorem tax to pay for
bonds that are payable wholly or partly from ad valorem taxes.
SECTION 7.002. TAX RATE. (a) The board shall determine the
tax rate.
(b) The tax rate may not exceed 15 cents per each $100 of
assessed valuation of taxable property in the district.
SECTION 7.003. TAX ASSESSOR-COLLECTOR. The board may:
(1) appoint a district tax assessor-collector; or
(2) contract for the assessment and collection of
taxes as provided by the Tax Code.
ARTICLE 8. DISSOLUTION OF DISTRICT
SECTION 8.001. DISSOLUTION OF DISTRICT. The district may
be dissolved only as provided by this article.
SECTION 8.002. DISSOLUTION BY ORDER OF CITY COUNCIL. (a)
The board may petition the city council to dissolve the district if
the board finds that the district:
(1) has not issued bonds or other obligations under
Section 6.010 and that the purposes of the district are
impracticable, or reasonably and economically cannot be successful
or accomplished; or
(2) has paid, or otherwise provided for payment of,
all bonds and other obligations issued under Section 6.010 and that
the purposes of the district have been accomplished.
(b) On receipt of a petition under Subsection (a), the city
council shall hold a public hearing to determine whether the
dissolution of the district serves the best interests of the City of
Temple and the residents of the city.
(c) After the hearing, the city council shall:
(1) enter in its records the appropriate findings and
order dissolving of the district if the city council unanimously
determines that the best interests of the City of Temple and the
residents of the city will be served by dissolving the district; or
(2) enter its order providing that the district has
not been dissolved if the city council does not unanimously
determine that the best interests of the City of Temple and the
residents of the city will be served by dissolving the district.
(d) On dissolution of the district under this section:
(1) all money and other property of the district is
transferred to the City of Temple; and
(2) the City of Temple shall assume any remaining
contracts or other obligations of the district.
SECTION 8.003. DISSOLUTION OF DISTRICT ON AGREEMENT WITH
CITY. (a) The district may be dissolved by agreement between the
city council and the board.
(b) On dissolution of the district under this section:
(1) all money and other property of the district is
transferred to the City of Temple; and
(2) the City of Temple shall assume the district's
responsibilities regarding all district contracts, debts, bonds,
and other obligations.
SECTION 8.004. EFFECT OF DISSOLUTION ON TAXES. On
dissolution of the district, any taxes imposed by the district are
abolished.
ARTICLE 9. EFFECTIVE DATE
SECTION 9.001. EFFECTIVE DATE. This subchapter takes
effect immediately if this Act 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 subchapter takes effect
September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3629 was passed by the House on May
23, 2003, by the following vote: Yeas 145, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3629 on May 30, 2003, by the following vote: Yeas 142, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3629 was passed by the Senate, with
amendments, on May 28, 2003, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor