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Amend CSHB 2120 (Senate committee printing) as follows:
(1) Insert the following appropriately numbered SECTION and
renumbering subsequent SECTIONS accordingly:
SECTION ____. Chapter 372, Local Government Code, is
amended by adding Subchapter C to read as follows:
SUBCHAPTER C. IMPROVEMENT PROJECTS IN CERTAIN COUNTIES
Sec. 372.101. DEFINITIONS. In this subchapter:
(1) "Board" means the board of directors of a
district.
(2) "Commissioners court" means the governing body of
the county.
(3) "County" means the county in which the public
improvement project authorized by this subchapter or the district
is located.
(4) "District" means a public improvement district
that may be created by a county authorized under this subchapter.
(5) "Hotel" has the meaning assigned by Section
156.001, Tax Code, and includes a timeshare, overnight lodging
unit, or condominium during the time the timeshare, overnight
lodging unit, or condominium is rented by a person who is not the
owner of the timeshare, overnight lodging unit, or condominium.
(6) "Municipality" means the municipality in whose
extraterritorial jurisdiction the improvement project is to be
located.
Sec. 372.102. PURPOSE. By enacting this subchapter, the
legislature has created a program for economic development as
provided in Section 52-a, Article III, Texas Constitution. A
county eligible under this subchapter is authorized to engage in
economic development projects as provided in this subchapter, and,
upon a determination of the governing body of an eligible county,
may delegate the authority to oversee and manage the economic
development project to an appointed board of directors. In
appointing such a board of directors, the governing body of the
eligible county delegates its authority to serve a public use and
benefit.
Sec. 372.103. COUNTY MAY ESTABLISH DISTRICT. In the event a
county determines it is in the best interest of the county, it may
create a public improvement district. A district created under
this subchapter is a political subdivision of this state.
Sec. 372.104. APPLICABILITY; CONFLICT OF LAWS. In the
event of a conflict between this subchapter and Subchapter A, this
subchapter controls.
Sec. 372.105. ESTABLISHMENT OF ECONOMIC DEVELOPMENT
PROJECTS; OPTIONAL CREATION OF PUBLIC IMPROVEMENT
DISTRICT. (a) The governing body of a county with a population of
one million or more, but not more than 3.3 million, may by order,
upon receipt of a petition satisfying the requirements of
Section 372.005, establish an economic development project in a
designated portion of that county, or, if the county determines it
is in the best interests of the county, create a district only in an
area located in the extraterritorial jurisdiction of a municipality
in that county.
(b) The order must:
(1) describe the territory in which the economic
development project is to be located or the boundaries of a public
improvement district;
(2) if the county has determined that the creation of a
district is in the best interests of the county, specifically
authorize the district to exercise the powers of this subchapter;
and
(3) state whether the petition requests improvements
to be financed and paid for with taxes authorized by this subchapter
instead of or in addition to assessments.
Sec. 372.106. GOVERNING BODY; TERMS. If a county elects to
delegate the authority granted under this subchapter, it shall
appoint a board of seven directors to serve staggered two-year
terms, with three or four directors' terms expiring June 1 of each
year to manage the economic development project or, at the option of
the county, govern the public improvement district.
Sec. 372.107. ELIGIBILITY. (a) The county must appoint
directors who are at least 18 years old.
(b) If the population of the district is more than 1,000,
the county must appoint as directors individuals who are at least 18
years old, reside in the district, and meet the qualifications of
Section 375.063.
Sec. 372.108. VACANCIES; QUORUM. (a) A board vacancy is
filled in the same manner as the original appointment.
(b) A vacant board position is not counted for the purposes
of establishing a quorum of the board.
Sec. 372.109. CONFLICTS OF INTEREST. The governing body of
an eligible county must comply with Chapter 171 in considering any
conflicts of interest for directors.
Sec. 372.110. COMPENSATION. (a) A county is authorized to
compensate the directors when they perform the duties of a
director. For purposes of this section, "performs the duties of a
director" means substantial performance of the management of the
district's business, including participation in board and
committee meetings and other activities involving the substantive
deliberation of district business and in pertinent educational
programs, but does not include routine or ministerial activities
such as the execution of documents or self-preparation for
meetings.
(b) The county shall compensate a director not more than $50
a day for each day that the director performs the duties of a
director.
Sec. 372.111. OATH AND BOND; OFFICER ELECTIONS. As soon as
practicable, a board member shall give the bond and take the oath of
office in accordance with Section 375.067, and the board shall
elect officers in accordance with Section 375.068.
Sec. 372.112. ELECTION DATES. (a) For an election ordered
by the county under this subchapter before December 31, 2005, the
uniform election dates under the Election Code in effect on
January 1, 2005, apply.
(b) This section expires January 1, 2007.
Sec. 372.113. POWERS AND DUTIES. (a) A county operating
under this subchapter has the powers and duties of:
(1) a county development district under Chapter 383,
except for Section 383.066;
(2) a road district created by a county under Section
52, Article III, Texas Constitution; and
(3) a municipality or county under Chapter 380 or 381,
or under Section 372.003(b)(9).
(b) A county is authorized to manage an economic development
project in a designated portion of the county, or to create a public
improvement district and to delegate to an appointed board of
directors the county's powers and duties, as provided in this
subchapter.
(c) A county may not delegate to a district the powers and
duties of a road district or provide water, wastewater, or drainage
facilities under this section unless the municipality and county
both consent by resolution.
Sec. 372.114. DEVELOPMENT AGREEMENTS. A county may enter
into a development agreement with owners of land in the territory
designated for the economic development project or, if the county
has determined to create a district, that entity is authorized to
enter into an agreement, for a term not to exceed 30 years on any
terms and conditions the county or the board considers advisable.
The parties may amend the agreement.
Sec. 372.115. ECONOMIC DEVELOPMENT AGREEMENT; ELECTION;
TAXES. (a) A county may enter into an agreement only on terms and
conditions the commissioners court, and any board of directors of a
district created under this subchapter, consider advisable, to make
a grant or loan of public money to promote state or local economic
development and to stimulate business and commercial activity in
the territory where the economic development project is located, or
in the district, including a grant or loan to induce the
construction of a tourist destination or attraction in accordance
with Chapter 380 or 381.
(b) If the county so authorizes it, an election may be
ordered by the district created by the county so that a grant or
loan agreement may be approved by the voters of the district at an
election held in the district for that purpose, the grant or loan
may be payable over a term of years and be binding and enforceable
on the district in accordance with the terms of the agreement and
the conditions of the election, which may, subject to the
requirements of Sections 372.127(c), include the irrevocable
obligation to impose an ad valorem tax, sales and use tax, or hotel
occupancy tax for a term not to exceed 30 years. If authorized at
the election, the county appointed board may contract and covenant
to pay the taxes to the recipient of the grant or loan in accordance
with the agreement.
(c) If the property owners petitioning a county to create a
district under Section 372.105 propose that the district be created
only to provide economic development grants or loans and road
improvements and not to impose assessments, and the county
determines that the creation of the district is in the best
interests of the county, the district is not required to prepare a
feasibility report, a service plan or assessment plan, or prepare
an assessment roll as required by this chapter.
Sec. 372.116. CONTRACTS; GENERAL. (a) In the event the
county creates a district, the district may contract with any
person, including the municipality or county, on the terms and
conditions and for a period of time the board determines, to:
(1) accomplish any district purpose, including a
contract to pay, repay, or reimburse from tax proceeds or another
specified source of money any costs, including reasonable interest,
incurred by a person on the county's or the district's behalf,
including all or part of the costs of an improvement project; and
(2) receive, administer, and perform the county's or
the district's duties and obligations under a gift, grant, loan,
conveyance, or other financial assistance arrangement relating to
the investigation, planning, analysis, study, design, acquisition,
construction, improvement, completion, implementation, or
operation by the district or another person of an improvement
project or proposed improvement project.
(b) A state agency, municipality, county, other political
subdivision, corporation, or other person may contract with the
county or district to carry out the purposes of this subchapter.
Sec. 372.117. PROCUREMENT CONTRACTS. In the event a county
creates a district under this subchapter, such district may
contract for materials, supplies, and construction:
(1) in accordance with the laws applicable to
counties; or
(2) in the same manner that a local government
corporation created pursuant to Chapter 431, Transportation Code,
is authorized to contract.
Sec. 372.118. RULES; ENFORCEMENT. A county may authorize
the board of a district created under this subchapter to adopt
rules:
(1) to administer and operate a district authorized by
the commissioners court;
(2) for the use, enjoyment, availability, protection,
security, and maintenance of district property, including
facilities; or
(3) to provide for public safety and security in the
district.
Sec. 372.119. FEES. A county may authorize a board to
establish, revise, repeal, enforce, collect, and apply the proceeds
from user fees or charges for the enjoyment, sale, rental, or other
use of its facilities or other property, or for services or
improvement projects.
Sec. 372.120. RULES; REGULATION OF ROADS AND OTHER PUBLIC
AREAS. (a) A county may authorize a board to adopt rules to
regulate the private use of public roadways, open spaces, parks,
sidewalks, and similar public areas in the district, if the use is
for a public purpose.
(b) To the extent a rule adopted under this section
conflicts with a rule, order, ordinance, or regulation of the
county or municipality, the county or municipality rule, order,
ordinance, or regulation controls.
(c) A rule adopted under this section may provide for the
safe and orderly use of public roadways, open spaces, parks,
sidewalks, and similar public areas in the area of the district or
economic development project.
Sec. 372.121. ROAD PROJECTS. (a) To the extent authorized
by Section 52, Article III, Texas Constitution, the county may
delegate to the district the authority to construct, acquire,
improve, maintain, or operate macadamized, graveled, or paved roads
or turnpikes, or improvements in aid of those roads or turnpikes,
inside the territory targeted by the county for an economic
development project, or the district.
(b) A road project must meet all applicable construction
standards, zoning and subdivision requirements, and regulatory
ordinances of each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located. If the
district is located outside the extraterritorial jurisdiction of a
municipality, a road project must meet all applicable construction
standards, zoning and subdivision requirements, and regulatory
ordinances of each county in which the district is located.
Sec. 372.122. UTILITIES. (a) This subchapter does not grant
the board appointed by a county under this subchapter any
right-of-way management authority over public utilities.
(b) To the extent the construction, maintenance, or
operation of a project under this subchapter requires the
relocation or extension of a public utility facility, the district
shall reimburse the public utility for all costs associated with
the relocation, removal, extension, or other adjustment of the
facility.
Sec. 372.123. SERVICE PLAN REQUIRED. The commissioners
court may require an annual service plan, in the manner provided for
by Section 372.013, which must meet the commissioners court's
review and approval.
Sec. 372.124. NO EMINENT DOMAIN. If a county creates a
district under this subchapter, the district may not exercise the
power of eminent domain.
Sec. 372.125. NO TAX ABATEMENTS. A county may not grant a
tax abatement or enter into a tax abatement agreement for a district
created under this subchapter.
Sec. 372.126. BONDS; NOTES. (a) The county commissioners
court must grant prior approval to a district it creates under this
subchapter before a district is authorized to issue bonds. If the
population in the district is more than 1,000, a bond issuance must
be approved by a majority of those voting in an election held for
that purpose. A bond election under this subsection does not affect
prior bond issuances and is not required for refunding bond
issuances.
(b) A commissioners court must grant prior approval to a
district it creates under this subchapter before such district is
authorized to issue a negotiable promissory note or notes.
(c) If the commissioners court grants the approvals in this
section, bonds, notes, and other district obligations may be
secured by district revenue or any type of district taxes or
assessments.
Sec. 372.127. AUTHORITY TO IMPOSE ASSESSMENTS AND AD
VALOREM, SALES AND USE, AND HOTEL OCCUPANCY TAXES; ELECTION. (a) A
county or a district created under this subchapter may accomplish
its purposes and pay the cost of services and improvements by
imposing:
(1) an assessment;
(2) an ad valorem tax;
(3) a sales and use tax; or
(4) a hotel occupancy tax.
(b) If approved by the county commissioners court, and if
approved at an election called by the district, and in accordance
with Section 372.127(c), a district may impose an ad valorem tax,
hotel occupancy tax, or sales and use tax to accomplish the economic
development purposes prescribed by Section 52a, Article III, Texas
Constitution.
(c) A county must adopt an order providing whether a district
created under this subchapter may have authority to impose a hotel
occupancy tax, sales and use tax, or ad valorem tax, and must
provide the rate at which the district may impose such tax or taxes.
A tax rate approved by the commissioners court and pledged to secure
bonds, notes, grant agreements, or development agreements may not
be reduced until the obligations of those instruments have been
satisfied.
Sec. 372.128. USE OF REVENUE FROM TAXES. A tax authorized by
a county to be imposed under this subchapter may be used to
accomplish any improvement project or road project, or to provide
any service authorized by this subchapter, chapter or Chapter 380,
381, or 383.
Sec. 372.129. HOTEL OCCUPANCY TAX. (a) A county may
authorize a district to impose a hotel occupancy tax on a person who
pays for the use or possession of or for the right to the use or
possession of a room that is ordinarily used for sleeping in a hotel
in the district.
(b) If authorized by a county, a district shall impose a
hotel occupancy tax as provided by Chapter 383, Local Government
Code, and Section 352.107, Tax Code, except that a hotel occupancy
tax:
(1) may be used for any purpose authorized in this
subchapter; and
(2) is authorized by the county to be imposed by the
district.
(c) The hotel occupancy tax rate is the greater of nine
percent or the rate imposed by the municipality.
(d) A hotel occupancy tax may not be imposed on the occupants
of a hotel unless the owner of the hotel agrees to the imposition of
the hotel occupancy taxes under this subchapter. After the owner
agrees, the agreement may not be revoked by the owner of the hotel
or any subsequent owner of the hotel. After an agreement under this
section, the district may impose hotel occupancy taxes as provided
by this subchapter.
Sec. 372.130. SALES AND USE TAX. (a) A commissioners court
may authorize a district to impose a sales and use tax in increments
of 1/8 of one percent up to a rate of two percent.
(b) Except as otherwise provided in this subchapter, a sales
and use tax must be imposed in accordance with Chapter 383, Local
Government Code, and Chapter 323, Tax Code.
Sec. 372.131. AD VALOREM TAX. A commissioners court may
authorize a district to impose an ad valorem tax on property in the
district in accordance with Chapter 257, Transportation Code.
Sec. 372.132. BORROWING. The commissioners court may
authorize a district to borrow money for any district purpose,
including for a development agreement that authorizes the district
to borrow money.
Sec. 372.133. REPAYMENT OF COSTS. The commissioner's court
may authorize a district, by a lease, lease-purchase agreement,
installment purchase contract, or other agreement, or by the
imposition or assessment of a tax, user fee, concession, rental, or
other revenue or resource of the district, to provide for or secure
the payment or repayment of:
(1) the costs and expenses of the establishment,
administration, and operation of the district;
(2) the district's costs or share of costs of an
improvement project; or
(3) the district's contractual obligations or
indebtedness.
Sec. 372.134. LIABILITIES; ASSUMPTION OF ASSETS AFTER
COMPLETE ANNEXATION BY MUNICIPALITY. (a) In the event a county has
created a district under this subchapter, and if the municipality
annexes the entire district territory, the municipality shall
succeed to such district's assets, but is not liable for the
district's debt or other obligations.
(b) If the county has authorized the district created under
this subchapter to have debt or other obligations, the district
shall remain in existence after the territory is annexed by the
municipality, for the purpose of collecting any taxes or
assessments authorized by the county and imposed by the district
prior to the annexation, which shall be used by the district solely
for the purpose of satisfying any preexisting county authorized
district debt or other obligations. After the debt or other
obligations have been discharged, or two years have expired since
the date of the annexation, the district is dissolved and any
outstanding debt or obligations are extinguished.
Sec. 372.135. AUTHORITY TO IMPOSE TAXES OR ASSESSMENTS AFTER
PARTIAL OR COMPLETE ANNEXATION. (a) After a district created by a
county under this subchapter has been annexed by a municipality
wholly or partly for general purposes, the county shall not
authorize the district to impose an ad valorem tax, hotel occupancy
tax, or sales and use tax, or collect an assessment in the area that
the municipality overlaps the district, except as provided by
Subsection (b) or Section 372.134(b).
(b) A district may continue to impose a tax in an area that
the municipality annexes for limited purposes and in which the
municipality does not impose taxes. If the municipality annexes an
area for limited purposes and imposes some of the taxes which the
district is imposing but not all of them, the district may continue
to impose taxes only to the extent that the level of taxation of the
municipality and the district combined, calculating the hotel tax,
the sales tax, and the ad valorem tax independently, is equal to or
less than the tax level of the municipality as to fully annexed
areas.
(c) The legislature intends that the level of taxation of
areas where the district and the municipality overlap do not exceed
the level of taxation of fully annexed areas.
(2) Strike SECTION 49 of the bill (page 18, lines 60-65) and
substitute the following:
SECTION ____. (a) Except as provided by Subsections (b) of
this section, this Act takes effect September 1, 2005.
(b) The provisions of this Act amending Chapter 372, Local
Government Code, take 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, those
provisions take effect September 1, 2005.