79(R) HB 167 - Senate Committee Report version


                                                                                


By:  Smith of Harris (Senate Sponsor - Jackson)                   H.B. No. 167
	(In the Senate - Received from the House April 21, 2005; 
April 25, 2005, read first time and referred to Committee on 
Intergovernmental Relations; May 17, 2005, reported adversely, 
with favorable Committee Substitute by the following vote:  Yeas 5, 
Nays 0; May 17, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 167                                    By:  Deuell


A BILL TO BE ENTITLED

AN ACT


relating to the creation and authority of municipal development 
districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 377.001(3), Local Government Code, is 
amended to read as follows:
		(3)  "Development project"[:                                 
			[(A)] means:                                                
			(A) [(i)]  a "project" as that term is defined by 
Section 4B(a), Development Corporation Act of 1979 (Article 5190.6, 
Vernon's Texas Civil Statutes); or
			(B) [and (ii)]  a convention center facility or 
related improvement such as a convention center, civic center, 
civic center building, civic center hotel, or auditorium, 
including[; and
			[(B)  includes] parking areas or facilities that 
are used to park vehicles and that are located at or in the vicinity 
of other convention center facilities.
	SECTION 2.  Section 377.002, Local Government Code, is 
amended to read as follows:
	Sec. 377.002.  SCOPE [APPLICABILITY].  (a)  A [This chapter 
applies only to a] municipality may create a district as provided in 
this chapter in:
		(1)  all or part of the boundaries of the municipality;                
		(2)  all or part of the boundaries of the municipality 
and all or part of the boundaries of the municipality's 
extraterritorial jurisdiction; or
		(3)  all or part of the municipality's extraterritorial 
jurisdiction [that is located in more than one county].
	(b)  The municipality may include territory outside of the 
municipality only to the extent that territory is in the 
municipality's extraterritorial jurisdiction.
	SECTION 3.  Subchapter A, Chapter 377, Local Government 
Code, is amended by adding Section 377.003 to read as follows:
	Sec. 377.003.  CONSTITUTIONAL PURPOSE.  This chapter creates 
a program under Section 52-a, Article III, Texas Constitution.
	SECTION 4.  Sections 377.021(b), (e), and (g), Local 
Government Code, are amended to read as follows:
	(b)  The order calling the election must:                                      
		(1)  define the boundaries of the district [to include 
all or part of the boundaries of the municipality]; and
		(2)  call for the election to be held within those 
boundaries.              
	(e)  If a majority of the registered voters of the proposed 
district voting at the election to create the district vote against 
creation of the district, the municipality may not hold another 
election on the question of creating a municipal development 
district [may not be held in the municipality] before the first 
anniversary of the most recent election concerning creation of a 
district.
	(g)  In the order calling the election, the municipality may 
provide for the district boundaries to conform automatically to any 
changes in the boundaries of the portion of the municipality or the 
municipality's extraterritorial jurisdiction included in the 
district, and the election shall be held on one of the four uniform 
election dates under Section 41.001, Election Code.
	SECTION 5.  Section 377.022(a), Local Government Code, is 
amended to read as follows:
	(a)  A district is a political subdivision of this state and 
of the municipality that created [in which] the district [is 
located].
	SECTION 6.  Sections 377.051(b) and (d), Local Government 
Code, are amended to read as follows:
	(b)  The board is appointed by the governing body of the 
municipality that created [in which] the district [is located].
	(d)  To qualify to serve as a director, a person must reside 
in [be a resident of] the municipality that created the district or 
in that municipality's extraterritorial jurisdiction [in which the 
district is located].  An employee, officer, or member of the 
governing body of the municipality may serve as a director, but may 
not have a personal interest in a contract executed by the district 
other than as an employee, officer, or member of the governing body 
of the municipality.
	SECTION 7.  Section 377.053, Local Government Code, is 
amended to read as follows:
	Sec. 377.053.  MEETINGS.  The board shall conduct its 
meetings in the municipality that created [in which] the district 
[is located].
	SECTION 8.  Section 377.072, Local Government Code, is 
amended by amending Subsection (c) and adding Subsection (d) to 
read as follows:
	(c)  Except as provided by Subsection (d), the [The] district 
may use money in the development project fund only to:
		(1)  pay the costs of planning, acquiring, 
establishing, developing, constructing, or renovating one or more 
development projects in the district;
		(2)  pay the principal of, interest on, and other costs 
relating to bonds or other obligations issued by the district or to 
refund bonds or other obligations; or
		(3)  pay the costs of operating or maintaining one or 
more development projects during the planning, acquisition, 
establishment, development, construction, or renovation or while 
bonds or other obligations for the planning, acquisition, 
establishment, development, construction, or renovation are 
outstanding.
	(d)  A district located in a county with a population of 3.3 
million or more may use money in the development project fund only 
to:
		(1)  pay the costs of planning, acquiring, 
establishing, developing, constructing, or renovating one or more 
development projects beneficial to the district if the projects are 
in the district boundaries or the extraterritorial jurisdiction of 
the municipality where the district is located;
		(2)  pay the principal of, interest on, and other costs 
relating to bonds or other obligations issued by the district or to 
refund bonds or other obligations; or
		(3)  pay the costs of operating or maintaining one or 
more development projects during the planning, acquisition, 
establishment, development, construction, or renovation or while 
bonds or other obligations for the planning, acquisition, 
establishment, development, construction, or renovation are 
outstanding.
	SECTION 9.  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, 2005.



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