By: Macias (Senate Sponsor - Wentworth) H.B. No. 3954
         (In the Senate - Received from the House May 14, 2007;
  May 15, 2007, read first time and referred to Committee on
  Intergovernmental Relations; May 18, 2007, reported favorably by
  the following vote:  Yeas 3, Nays 0; May 18, 2007, sent to
  printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to improvement projects in certain counties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 372.101, Local Government
  Code, is amended to read as follows:
         Sec. 372.101.  DEFINITIONS[; APPLICABILITY].
         SECTION 2.  Subchapter C, Chapter 372, Local Government
  Code, is amended by adding Section 372.1011 to read as follows:
         Sec. 372.1011.  APPLICABILITY.  This subchapter applies only
  to:
               (1)  a county with a population of 825,000 or more,
  other than a county that:
                     (A)  borders on the Gulf of Mexico or a bay or
  inlet of the gulf; or
                     (B)  has two municipalities located wholly or
  partly in its boundaries each having a population of 300,000 or
  more; or
               (2)  a county with a population of 70,000 or more that
  is adjacent to a county described by Subdivision (1) in which a
  municipality with a population of 35,000 or more is primarily
  situated and includes all or a part of the extraterritorial
  jurisdiction of a municipality with a population of 1.1 million or
  more.
         SECTION 3.  Section 372.102, Local Government Code, is
  amended to read as follows:
         Sec. 372.102.  NATURE OF DISTRICT; PURPOSE.  (a)  A district
  is created under Section 52, Article III, and Section 59, Article
  XVI, Texas Constitution.
         (b)  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 may engage in
  economic development projects as provided by this subchapter, and,
  on a determination of the commissioners court of the county to
  create a district, may delegate the authority to oversee and manage
  the economic development project to an appointed board of
  directors. In appointing a board, the commissioners court
  delegates its authority to serve a public use and benefit.
         SECTION 4.  Section 372.105, Local Government Code, is
  amended to read as follows:
         Sec. 372.105.  ESTABLISHMENT OF ECONOMIC DEVELOPMENT
  PROJECTS; OPTIONAL CREATION OF PUBLIC IMPROVEMENT DISTRICT. (a)
  The commissioners court of a county [, other than a county that
  borders on the Gulf of Mexico or a bay or inlet of the gulf or a
  county that has two municipalities located in whole or in part
  within its boundaries each having a population of 300,000 or more,]
  may on receipt of a petition satisfying the requirements of Section
  372.005, establish by order an economic development project in a
  designated portion of the county, or, if the county determines it is
  in the best interests of the county, create a district by order only
  in an area located in the extraterritorial jurisdiction of a
  municipality in that county.  If the county is a county described by
  Section 372.1011(2), the petition described by this subsection must
  also be approved by a resolution adopted by the municipality with a
  population of 1.1 million or more.
         (b)  For a county described by Section 372.1011(2), a
  district may only be created in an area containing at least 2,000
  contiguous acres of land that is located wholly or partly in the
  extraterritorial jurisdiction of a municipality with a population
  of 1.1 million or more.
         (c) [(b)]  The order must:
               (1)  describe the territory in which the economic
  development project is to be located or the boundaries of a
  district;
               (2)  specifically authorize the district to exercise
  the powers of this subchapter if the county has determined that
  creating a district is in the county's best interests; 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.
         SECTION 5.  Sections 372.126(a) and (c), Local Government
  Code, are amended to read as follows:
         (a)  A district may not issue bonds unless approved by the
  commissioners court of the county that created the district. Bonds 
  [If the population in the district is more than 1,000, the bonds]
  may not be issued unless approved by a majority of the voters of the
  district 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.
         (c)  If the commissioners court grants approval under this
  section, bonds, notes, and other district obligations may be
  secured by district revenue or any type of district taxes or
  assessments, or any combination of taxes and revenue pledged to the
  payment of bonds.
         SECTION 6.  Section 372.130, Local Government Code, is
  amended by amending Subsection (b) and adding Subsections (c) and
  (d) to read as follows:
         (b)  Except as otherwise provided in this subchapter, a sales
  and use tax must be imposed in accordance with Chapter 383, Local
  Government Code, or [and] Chapter 323, Tax Code.
         (c)  The ballot for a sales tax election shall be printed to
  provide for voting for or against the proposition: "A sales and use
  tax at a rate not to exceed ____ [insert percentage rate] in the
  ____ [insert name of district]" or "The adoption of a ____ [insert
  percentage rate] sales and use tax in the ____ [insert name of
  district]."
         (d)  A tax authorized at an election held under this section
  may be imposed at a rate less than or equal to the rate printed in
  the ballot proposition.
         SECTION 7.  Section 372.101(b), Local Government Code, is
  repealed.
         SECTION 8.  (a) All acts and proceedings related to the
  authorization of any taxes or bonds, including acts and proceedings
  related to an election, by a district created under Subchapter C,
  Chapter 372, Local Government Code, before the effective date of
  this Act are validated, ratified, and confirmed in all respects as
  if the acts and proceedings occurred as authorized by law.
         (b)  This section does not apply to any matter that on the
  effective date of this Act:
               (1)  is involved in litigation if the litigation
  ultimately results in the matter being held invalid by a final court
  judgment; or
               (2)  has been held invalid by a final court judgment.
         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, 2007.
 
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