By: Fraser S.B. No. 1944
(In the Senate - Filed May 5, 2003; May 6, 2003, read first
time and referred to Committee on Business and Commerce;
May 9, 2003, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 0; May 9, 2003, sent
to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1944 By: Fraser
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Temple Health and Bioscience
Economic Development District; providing authority to impose a tax
and issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. LEGISLATIVE FINDINGS AND INTENT; CONSTRUCTION OF ACT
SECTION 1.001. DECLARATION OF LEGISLATIVE FINDINGS AND
INTENT. (a) The creation of a district under this Act 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 Act.
(b) This Act 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 Act 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 Act serves the public
purposes stated in this section.
SECTION 1.002. CONSTRUCTION OF ACT. (a) This Act shall be
liberally construed in conformity with the legislative findings and
purposes set forth in this Act.
(b) Chapter 311, Government Code (Code Construction Act),
applies to this Act.
(c) A reference to a section without further identification
is a reference to a section of this Act.
ARTICLE 2. GENERAL PROVISIONS
SECTION 2.001. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "Bond" means an interest-bearing obligation
issued by the district under this Act, 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 Act.
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 Act.
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 Act.
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 Act
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 Act.
(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 Act 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 Act.
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 Act.
(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 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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