By: Brown of Brazos (Senate Sponsor - Ogden) H.B. No. 3589
(In the Senate - Received from the House May 20, 2005;
May 20, 2005, read first time and referred to Committee on
Intergovernmental Relations; May 21, 2005, reported favorably by
the following vote: Yeas 5, Nays 0; May 21, 2005, sent to
printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Research Valley Innovation
District.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3854 to read as follows:
CHAPTER 3854. RESEARCH VALLEY INNOVATION DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3854.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Commissioners court" means the governing body of
Brazos County.
(3) "Director" means a board member.
(4) "District" means the Research Valley Innovation
District.
(5) "Obligation" means an interest-bearing obligation
issued by the district under this chapter, including a bond,
certificate, note, or other evidence of indebtedness.
(6) "Project" means a project established under
Section 3854.111 and includes the land, buildings, equipment,
facilities, infrastructure, improvements, and other property
necessary to accomplish the purposes of the project.
Sec. 3854.002. PURPOSE; DECLARATION OF LEGISLATIVE
FINDINGS. (a) The creation of the district 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 chapter.
(b) This chapter is enabling legislation enacted to further
the public purposes under Section 52-a, Article III, Texas
Constitution.
(c) The creation of the district is necessary to further the
public purpose of improving the economy of this state and of Brazos
County by providing for projects.
(d) The district serves the public purposes stated in this
section.
Sec. 3854.003. NATURE OF DISTRICT. The district is a
special district and a political subdivision of this state under
Section 59, Article XVI, Texas Constitution.
Sec. 3854.004. DISTRICT TERRITORY. The district boundaries
are coextensive with the boundaries of Brazos County.
Sec. 3854.005. APPLICABILITY OF OTHER WATER DISTRICTS LAW.
Chapter 49, Water Code, does not apply to the district.
Sec. 3854.006. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be construed liberally in conformity with the
legislative findings and purposes stated in this chapter.
[Sections 3854.007-3854.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3854.051. GOVERNING BODY. The district is governed by
a board of seven directors appointed as provided by this
subchapter.
Sec. 3854.052. TERMS. (a) Directors serve staggered
three-year terms that expire on June 1.
(b) A director may not serve more than two consecutive
terms.
Sec. 3854.053. APPOINTMENT. The commissioners court shall
appoint the directors.
Sec. 3854.054. QUALIFICATIONS. A director:
(1) must be a registered voter of Brazos County; and
(2) may not:
(A) be an elected official; or
(B) be employed by the district or Brazos County.
Sec. 3854.055. VACANCY. The remaining directors shall fill
a vacancy in the office of director for the unexpired term.
Sec. 3854.056. DIRECTOR'S BOND; OATH OR AFFIRMATION. (a)
As soon as practicable after a director is 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) The bond and the director's constitutional oath or
affirmation of office shall be filed with the district and the
district shall retain the bond and the oath or affirmation in the
district's records.
Sec. 3854.057. OFFICERS. (a) The board shall elect from
among the directors 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 chapter.
Sec. 3854.058. COMPENSATION; EXPENSES. A director serves
without compensation but is entitled to reimbursement for actual
and necessary expenses approved by the board.
Sec. 3854.059. MEETINGS; NOTICE OF MEETINGS. (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 county clerk of
Brazos County. In addition to the requirements imposed by that
subchapter on the district, the county shall post the notice at the
usual location at which notices of commissioners court meetings are
posted.
Sec. 3854.060. 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) certified public accountants;
(4) economists;
(5) administrative assistants;
(6) bookkeepers; and
(7) 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.
Sec. 3854.061. INITIAL DIRECTORS. (a) After creation of
the district under Subchapter F, the commissioners court shall by
resolution appoint initial directors.
(b) The commissioners court shall stagger the directors'
terms to expire on June 1, with:
(1) two directors serving as near as possible to a
one-year term;
(2) two directors serving as near as possible to a
two-year term; and
(3) three directors serving as near as possible to a
three-year term.
[Sections 3854.062-3854.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3854.101. GENERAL POWERS. The district has all powers
necessary or convenient to carry out and effect the purposes and
provisions of this chapter.
Sec. 3854.102. RULES. The board may adopt rules to govern
the district, including rules governing district operations,
employees, and property.
Sec. 3854.103. DISTRICT OFFICE. The board shall designate
and establish a district office in Brazos County.
Sec. 3854.104. 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 determined by
the board.
Sec. 3854.105. AGREEMENTS. The district may make an
agreement with any person for any district purpose, including a
contract to manage or maintain a district project.
Sec. 3854.106. GIFTS, GRANTS, AND LOANS. The district may
accept a gift, grant, or loan from any person for any district
purpose.
Sec. 3854.107. 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.
Sec. 3854.108. RELATION TO OTHER LAW ON CONTRACTS. This
chapter states the procedures necessary to award contracts and
supersedes any law or other requirement otherwise applicable to the
district regarding the award of contracts.
Sec. 3854.109. 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.
Sec. 3854.110. 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, the district may make loans or
grants of public money for a public purpose as provided by Section
52-a, Article III, Texas Constitution.
Sec. 3854.111. PROJECTS. (a) The district may establish
projects for:
(1) research and development activities, including
initiatives to prove the feasibility of an idea;
(2) commercialization of the results of research;
(3) the incubation of new business or the expansion of
existing business;
(4) the promotion of innovations or discoveries;
(5) the production and manufacturing of goods and
products;
(6) day-to-day business operations or services; and
(7) education provided in affiliation with an
institution of higher education, including job training or
vocational education.
(b) A project must be related to the following areas of
technology or industry:
(1) energy, including manufactured energy systems or
the development of alternative energy sources;
(2) biotechnology;
(3) medicine or pharmaceuticals;
(4) life sciences;
(5) defense or homeland security;
(6) information, computer, or software technology,
including semiconductor technology;
(7) engineering; or
(8) micro-electromechanical systems.
Sec. 3854.112. 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
bond or cost bond.
Sec. 3854.113. SEAL. The district may adopt a seal.
Sec. 3854.114. NONPROFIT CORPORATION; JOINT ECONOMIC
DEVELOPMENT. The district shall contract with:
(1) a nonprofit corporation that receives money from
Brazos County and the cities of Bryan and College Station to promote
joint economic development for those governmental entities; or
(2) another entity associated or affiliated with the
nonprofit corporation to initiate, promote, facilitate, or
administer the development of, or to serve or assist the district to
implement, a project or program under this chapter.
[Sections 3854.115-3854.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 3854.151. USE OF DISTRICT MONEY. The district may use
district money for any district purpose, including:
(1) to pay for projects; and
(2) to pay district obligations.
Sec. 3854.152. INVESTMENTS. (a) The district may invest
money the district receives under this chapter.
(b) The district may hire a person to invest district money
on terms the board considers advisable.
Sec. 3854.153. 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.
Sec. 3854.154. DEPOSITORY INSTITUTION. The district may
select one or more financial institutions to serve as a depository
bank for the district.
Sec. 3854.155. 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.
Sec. 3854.156. PROJECT FUND. (a) The district by
resolution shall establish a project fund.
(b) The district may establish separate accounts in the
project fund.
(c) The district shall deposit into the project fund all
money acquired or received by the district, including:
(1) the proceeds from an ad valorem tax imposed by the
district; and
(2) revenue from the sale of district obligations.
Sec. 3854.157. AUDIT. (a) The district shall enter into a
written contract with an independent certified public accountant or
a certified public accounting firm for an annual audit of the
district's affairs and financial records.
(b) The district shall make the audit available for
inspection by the public and Brazos County.
Sec. 3854.158. ASSESSMENTS. The district may impose an
assessment on property in the district, including an assessment on
a leasehold interest, by agreement with the property owner.
Sec. 3854.159. LIABILITIES. The district may incur
liabilities, including a liability incurred by:
(1) borrowing money on terms the board determines; and
(2) issuing obligations under Section 3854.160.
Sec. 3854.160. OBLIGATIONS. (a) The district may issue
obligations, including revenue bonds, to pay the costs of a project
in the district.
(b) The district may issue an 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.
[Sections 3854.161-3854.200 reserved for expansion]
SUBCHAPTER E. AD VALOREM TAX
Sec. 3854.201. IMPOSITION OF AD VALOREM TAX. If authorized
at an election held under Subchapter F, 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
obligations that are payable wholly or partly from ad valorem
taxes.
Sec. 3854.202. TAX RATE. (a) The board shall recommend a
tax rate to the commissioners court.
(b) The commissioners court shall set the tax rate. The tax
rate may not exceed 10 cents per $100 of assessed valuation of
taxable property in the district.
Sec. 3854.203. 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.
[Sections 3854.204-3854.250 reserved for expansion]
SUBCHAPTER F. PETITION AND ELECTION TO ALLOW CREATION, TAXING, OR
RELATED OBLIGATION AUTHORITY
Sec. 3854.251. APPLICATION FOR PETITION TO CREATE DISTRICT.
(a) If 10 or more registered voters of Brazos County file a written
application with the county, the county shall issue to the
applicants a petition to be circulated among the registered voters
of the county for the signatures of voters who want an election to
be called in the county to determine whether to create the district:
(1) with the power to impose an ad valorem tax not to
exceed 10 cents per $100 valuation of all taxable property in the
district; or
(2) without the power to impose an ad valorem tax.
(b) An application for a petition 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
Research Valley Innovation District with the Power to Impose an Ad
Valorem Tax not to Exceed 10 Cents per $100 Valuation of all Taxable
Property in the District." The application must contain a
statement immediately above the signatures of the applicants that
reads substantially as follows: "The petitioners whose signatures
appear on this petition intend that the Research Valley Innovation
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 following statement must be appended to the end of the title
specified in this subsection: "and to Issue Bonds Payable in Whole
or in Part from the Ad Valorem Tax."
(c) An application for a petition under this section 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 Research Valley Innovation District." The
application must contain a statement immediately above the
signatures of the applicants that reads substantially as follows:
"The petitioners whose signatures appear on this petition intend
that the Research Valley Innovation District referred to in the
issue set out above be created."
Sec. 3854.252. APPLICATION FOR PETITION TO CALL TAX OR BOND
ELECTION. (a) If the district is created without the power to
impose an ad valorem tax and 10 or more registered voters of Brazos
County file a written application with the county for a petition to
authorize the district to impose an ad valorem tax, the county shall
issue to the applicants a petition to be circulated among the
registered voters of the county for the signatures of voters who
want to authorize the district to impose an ad valorem tax.
(b) 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 provide that at the
same election the district is authorized to issue obligations
payable wholly or partly from that ad valorem tax as permitted under
Section 3854.160.
(c) The application for the petition must be titled:
"Application for Local Option Election Petition to Enable the
Research Valley Innovation District to Impose an Ad Valorem Tax not
to Exceed 10 Cents per $100 Valuation of all Taxable Property in the
District."
(d) The application must contain a statement immediately
above the signatures of the applicants that reads substantially as
follows: "The petitioners whose signatures appear on this petition
intend that the Research Valley Innovation District be enabled to
impose an ad valorem tax not to exceed 10 cents per $100 valuation
of all taxable property in the district."
(e) If the petition also seeks an election to authorize the
issuance of obligations by the district payable wholly or partly
from ad valorem taxes, the following statement must be appended to
the title specified by Subsection (c): "and to Issue Bonds Payable
in Whole or in Part from the Ad Valorem Tax."
Sec. 3854.253. FORM AND COPIES OF PETITION. (a) Each
petition issued under this subchapter must show the date it is
issued by Brazos County and be serially numbered. Each page of the
petition must bear the same date and serial number.
(b) Brazos County 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
county. Each copy shall bear the date, number, and seal on each
page as required on the original petition.
(c) Brazos County shall keep a copy of each petition and a
record of the applicants for that petition.
Sec. 3854.254. FILING AND VERIFICATION OF PETITION. (a)
The applicants requesting a petition under this subchapter may file
a request with Brazos County for the petition to be verified. The
applicants must file the request not later than the 120th day after
the date the petition is issued by the county.
(b) If the applicants file a request for verification of the
petition, Brazos County shall examine the names of the signers of
petitions and determine whether the signers of the petition were
registered voters of the county at the time the petition was issued.
(c) Brazos County shall certify to the commissioners court
the number of registered voters signing the petition not later than
the 15th day after the date the request for verification was filed.
(d) 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.
Sec. 3854.255. ELECTION ORDER. (a) Not later than the
date of the fourth regular session of the commissioners court
convened after a petition has been verified under Section 3854.254,
the commissioners court shall order an election to be held in the
district on the proposition stated in the petition if the petition
contains:
(1) the signatures of a number of registered voters of
Brazos County equal to at least 10 percent of the registered voters
of the county who voted in the most recent general election in the
county;
(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 commissioners
court minutes:
(1) the dates a petition is presented to and verified
by Brazos County;
(2) the names of the signers; and
(3) the action taken on the petition.
(c) The order issued under Subsection (a) must state that
the district's boundaries are coextensive with the boundaries of
Brazos County and that the election will be held within those
boundaries.
Sec. 3854.256. NOTICE AND CONDUCT OF ELECTION;
RESULTS. (a) The commissioners court shall give notice of an
election ordered under Section 3854.255 by publishing a substantial
copy of the election order once a week for two consecutive weeks in
a newspaper with general circulation in Brazos County.
(b) The first publication of the notice 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
obligations, the first publication of the notice must appear before
the 31st day before the date set for the election.
(c) The ballot for an election held under this section must
be printed to permit voting for or against the following
proposition, as appropriate according to the verified petition:
(1) "Authorizing the creation of the Research Valley
Innovation District and the imposition of an ad valorem tax not to
exceed the rate of 10 cents per $100 valuation of all taxable
property in the district.";
(2) "Authorizing the creation of the Research Valley
Innovation District, the imposition of an ad valorem tax not to
exceed the rate of 10 cents per $100 valuation of all taxable
property in the district, and the issuance of bonds payable in whole
or in part from the ad valorem tax.";
(3) "Authorizing the creation of the Research Valley
Innovation District.";
(4) "Authorizing the imposition of an ad valorem tax
not to exceed the rate of 10 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 10 cents per $100 valuation of all taxable
property in the district and the issuance of bonds payable wholly or
partly from the ad valorem tax."
(d) The district is created if a majority of the voters
voting at the election favor creation.
(e) The district may impose an ad valorem tax if a majority
of the district voters voting at the election favor the proposition
stated in Subsection (c)(1), (2), (4), or (5).
(f) The district may issue obligations payable wholly or
partly from ad valorem taxes if a majority of the district voters
voting at the election favor the proposition stated in Subsection
(c)(2) or (5).
(g) If a majority of the district voters voting at the
election vote against the proposition, another election on the
proposition may not be held before the first anniversary of the date
of the most recent election concerning the proposition.
(h) Brazos County shall hold an election provided under this
section on the earliest uniform election date under Section 41.001,
Election Code, that occurs after the commissioners court adopts the
order calling the election.
[Sections 3854.257-3854.300 reserved for expansion]
SUBCHAPTER G. DISSOLUTION OF DISTRICT
Sec. 3854.301. DISSOLUTION OF DISTRICT. The district may
be dissolved only as provided by this subchapter.
Sec. 3854.302. DISSOLUTION BY ORDER OF COMMISSIONERS COURT.
(a) The board may petition the commissioners court to dissolve the
district if the board finds that the district:
(1) has not issued obligations under Section 3854.160
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 obligations issued under Section 3854.160 and that the district
purposes have been accomplished.
(b) On receipt of the petition, the commissioners court
shall hold a public hearing to determine whether the dissolution of
the district serves the best interests of Brazos County and of the
residents of the county.
(c) After the hearing, the commissioners court shall:
(1) enter in the commissioners court records the
appropriate findings and an order dissolving the district if the
commissioners court unanimously determines that the best interests
of Brazos County and of the residents of the county will be served
by dissolving the district; or
(2) enter an order providing that the district is not
dissolved if the commissioners court does not unanimously determine
that the best interests of Brazos County and of the residents of the
county 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 are
transferred to Brazos County; and
(2) Brazos County shall assume any remaining district
contracts or other district obligations.
Sec. 3854.303. DISSOLUTION OF DISTRICT ON AGREEMENT WITH
BRAZOS COUNTY. (a) The district may be dissolved by agreement
between the commissioners court and the board.
(b) On dissolution of the district under this section:
(1) all money and other property of the district are
transferred to Brazos County; and
(2) Brazos County shall assume the district's
responsibilities regarding all district contracts, debts, and
obligations.
Sec. 3854.304. EFFECT OF DISSOLUTION ON TAXES. On
dissolution of the district, any taxes imposed by the district are
abolished.
SECTION 2. 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.
* * * * *