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A BILL TO BE ENTITLED
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AN ACT
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relating to the Town Center Improvement District of Montgomery |
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County, Texas, including the district's authority to impose taxes |
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and issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. DISTRICT CHANGES NOT SUBJECT TO ELECTION RESULT |
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SECTION 1.01. Section 1(d), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended to read as follows: |
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(d) The creation and operation of the district are [is
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declared to be] essential to the accomplishment of the purposes of |
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Article III, Sections 52 and 52-a [Section 52], and Article XVI, |
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Section 59, of the Texas Constitution and to the accomplishment of |
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the several other public purposes stated in this Act. |
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SECTION 1.02. Section 5(a), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended to read as follows: |
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(a) The legislature finds that [all of the land and other
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property included within the boundaries of the district will be
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benefited by] the works, projects, improvements, and services that |
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are to be promoted, facilitated, and accomplished by the district |
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under powers conferred by Article III, Sections 52 and 52-a |
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[Section 52], and Article XVI, Section 59, of the Texas |
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Constitution and other powers granted under this Act provide a |
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continuing substantial [and that the district is created to serve
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a] public use and benefit in the district, in areas adjacent to the |
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district, and throughout this state by: |
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(1) promoting and stimulating business activity, |
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commerce, tourism, travel, and economic development and |
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diversification in this state; |
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(2) promoting and facilitating public safety and |
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health, mobility of people, traffic circulation, and mass |
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transportation in this state; |
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(3) preserving and promoting scenic beauty in this |
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state; |
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(4) promoting and advancing employment and business |
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relocation and retention in this state; |
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(5) reducing or eliminating unemployment and |
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underemployment in this state; and |
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(6) protecting and securing the general welfare of |
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this state and of all its citizens. |
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SECTION 1.03. Chapter 289, Acts of the 73rd Legislature, |
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Regular Session, 1993, is amended by adding Section 6A to read as |
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follows: |
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Sec. 6A. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT. Section |
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375.161, Local Government Code, does not apply to the district. |
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SECTION 1.04. Chapter 289, Acts of the 73rd Legislature, |
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Regular Session, 1993, is amended by adding Section 7F to read as |
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follows: |
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Sec. 7F. LOCAL GOVERNMENT CORPORATIONS. The district may |
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sponsor, create, use, administer, or contract with a local |
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government corporation under Subchapter D, Chapter 431, |
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Transportation Code, in the same manner as a local government may |
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under that subchapter. |
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SECTION 1.05. Section 11C(d), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended to read as follows: |
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(d) Before designating a development zone on its own motion |
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or, if ad valorem taxes are to be used, in whole or in part, for the |
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payment of improvement project costs in a development zone to be |
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designated in response to a landowner petition, the board shall |
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call and hold a public hearing on the creation of the zone in the |
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manner provided by Sections 311.003(c) and (d) [Section 311.003], |
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Tax Code, for reinvestment zones designated by a municipality. |
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SECTION 1.06. The following are repealed: |
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(1) Sections 9(a) and (b), Chapter 289, Acts of the |
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73rd Legislature, Regular Session, 1993; and |
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(2) Section 11B(b), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993. |
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ARTICLE 2. ADDITION OF TERRITORY; CONFIRMATION ELECTION; |
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EFFECTIVE DATE OF ARTICLE 3 |
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SECTION 2.01. Chapter 289, Acts of the 73rd Legislature, |
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Regular Session, 1993, is amended by adding Section 7G to read as |
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follows: |
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Sec. 7G. ORDER ADDING TERRITORY SUBJECT TO CONFIRMATION |
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ELECTION. (a) Except as provided by Subsection (d), the board, on |
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its own motion and without a petition, after notice and hearing in |
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the manner provided by Subchapter J, Chapter 49, Water Code, by |
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order may propose that certain territory be added to the district. |
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The proposal is subject to approval of the voters voting at a |
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confirmation election held under this section. |
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(b) After adopting an order under Subsection (a), the board |
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shall hold an election in the district to confirm the addition of |
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the territory as proposed by the board order and the assumption by |
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the added territory of its pro rata share of the bonds, taxes, |
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indebtedness, and contract obligations of the district. District |
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voters and voters in the territory proposed to be added are entitled |
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to vote in the election. The election must be held on the first |
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available uniform election date after the date the board adopts the |
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order that allows sufficient time for compliance with other |
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requirements of law. |
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(c) If a majority of the voters voting at the election favor |
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the proposal to add the territory to the district, the board's order |
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is effective and the proposed territory is added to the district. |
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If a majority of the voters voting at the election do not favor the |
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addition, the proposed territory may not be added under this |
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section. |
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(d) Territory added to the district as provided by this |
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section assumes the pro rata share of the bonds, taxes, or other |
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debt and contract obligations of the district. |
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(e) Not later than the seventh day after the date the |
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district boundaries change by the addition of territory under this |
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section, the district shall record a map or plat showing the |
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district boundaries in the real property records of each county in |
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which all or part of the district is located. |
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(f) The district may not add territory under this section |
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that is located in the corporate limits or extraterritorial |
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jurisdiction of a municipality with a population of less than 1.5 |
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million unless the municipality consents by ordinance, resolution, |
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or a written agreement. The district and municipality may, in the |
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written agreement, agree to limit when the territory may be added. |
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SECTION 2.02. (a) In this section, "board" and "district" |
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have the meanings assigned by Section 2, Chapter 289, Acts of the |
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73rd Legislature, Regular Session, 1993. |
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(b) On the uniform election date in November 2007, the board |
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shall hold an election at which voters may vote for or against the |
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following propositions: |
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(1) the addition of territory to the district in |
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accordance with board action taken under Section 7G, Chapter 289, |
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Acts of the 73rd Legislature, Regular Session, 1993, as added by |
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this article; and |
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(2) the transition from an 11-member board serving |
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four-year terms, with six appointed and five elected members, to a |
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seven-member elected board serving two-year terms. |
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(c) The persons entitled to vote on both propositions under |
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Subsection (b) of this section are the district voters and the |
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voters in the territory proposed to be added. |
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(d) On the date on which the election results are officially |
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declared, if both propositions are approved by a majority of the |
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voters voting at the election, the board shall certify that result |
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to the secretary of state and Article 3 of this Act takes effect on |
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the date the results are officially declared. If the results are |
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not declared on the same date for both propositions, Article 3 takes |
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effect on the date of the later declaration. |
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(e) If the election is not held on the uniform election date |
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in November 2007 or if a majority of the voters voting at the |
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election do not approve both propositions: |
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(1) Section 7G, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, as added by this article, |
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expires: |
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(A) on the uniform election date in November |
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2007, if an election was not held on that date; or |
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(B) on the date the first election results were |
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officially declared that did not approve the proposition, if an |
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election was held on the uniform election date in November 2007; and |
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(2) Article 3 of this Act does not take effect. |
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ARTICLE 3. DISTRICT CHANGES SUBJECT TO ELECTION RESULT |
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SECTION 3.01. Sections 7(b), (h), and (k), Chapter 289, |
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Acts of the 73rd Legislature, Regular Session, 1993, are amended to |
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read as follows: |
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(b) The board may levy, assess, and apply the proceeds from |
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the [limited sales and use] taxes, fees, and charges authorized by |
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[Section 11 of] this Act for authorized district purposes, |
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including making, or funding debt service and other costs related |
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to the issuance of bonds for the purpose of making, any payments |
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required under a regional participation agreement, authorized by |
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this Act or by other law, with one or more governmental entities |
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relating to the financing of regional programs, improvements, and |
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facilities that mutually benefit the district and other |
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governmental entities [provided that, during each interval of three
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calendar years following the commencement of collection of such
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tax, the board shall, consistent with constitutional limitations
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and the district's authorized powers and purposes, and in its sound
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discretion, endeavor to apply an annual average of not less than 10
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percent of the net proceeds of the taxes collected under Section 11
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of this Act, after deduction of the general and administrative
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costs and expenses of the district and the costs and expenses of
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levying, assessing, and collecting such taxes, toward mitigation of
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the net negative impact of development within the district on the
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impact area, including without limitation effects on public
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utilities and services, public transportation and traffic
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movement, and scenic and aesthetic beauty. Direct expenditures
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made for the district or the impact area are allocable to each area
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for which the expenditure was made. Expenditures for the general
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welfare, promotion, or benefit of the district and impact area are
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allocable between the district and the impact area in the amount, as
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determined by the board, that is proportionate to the benefit
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conferred on each area]. |
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(h) The board may establish, revise, repeal, enforce, |
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collect, and apply the proceeds from user fees, concessions, |
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admissions, rentals, or other similar fees or charges for the |
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enjoyment, sale, rental, or other use of the district's facilities, |
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services, properties, or improvement projects; however, [because
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the district is created in an area that is devoted primarily to
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commercial and business activity,] the district may not impose an |
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impact fee or assessment on a single family residential property or |
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a residential duplex, triplex, quadruplex, or condominium. |
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(k) The district may not employ peace officers, but may |
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contract with: |
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(1) a county or municipality that has territory wholly |
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or partly in or contiguous to the district's territory [or impact
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area] for the county or municipality to provide law enforcement |
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services by any lawful means for the district, including a |
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warrantless arrest, to the same extent and with the same effect as |
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if the district were authorized to employ its own peace officers |
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directly; and |
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(2) off-duty peace officers directly to provide public |
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safety and security services in connection with a special event, |
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holiday, period with high traffic congestion, or similar |
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circumstance. |
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SECTION 3.02. Section 7C, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended to read as follows: |
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Sec. 7C. CONFLICT BETWEEN DISTRICT RULE AND OTHER LOCAL |
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REGULATIONS. To the extent a district rule conflicts with a rule, |
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order, ordinance, or regulation of a county or municipality with |
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jurisdiction in the district's territory [or impact area], the |
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rule, order, ordinance, or regulation of the county or municipality |
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controls. |
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SECTION 3.03. Section 8, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended by amending |
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Subsections (a), (e), and (j) and adding Subsections (a-1) and |
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(a-2) to read as follows: |
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(a) The district is governed by a board composed of seven |
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[11] directors elected [or appointed] as provided by Subsection |
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(a-1) [(c)] of this section. Directors serve staggered terms of two |
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[four] years, with three directors' terms expiring in odd-numbered |
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years and four directors' terms expiring in even-numbered years. |
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(a-1) The board shall hold an election on the uniform |
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election date in May of each year to elect directors. |
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(a-2) To serve as a director, a person must be: |
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(1) at least 18 years of age; and |
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(2) a district resident. |
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(e) A vacancy in the office of director shall be filled by |
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appointment of a qualified individual by a majority vote of the |
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remaining directors, except that if the number of directors for any |
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reason is less than four [six], on petition of a resident of or |
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owner of real property in the district, the commission shall |
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appoint the required number of qualified individuals to fill the |
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vacancies. [The board may remove a director for misconduct or
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failure to carry out the director's duties by unanimous vote of all
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of the remaining directors.] |
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(j) Except as provided by [in] Subsection (e) of this |
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section, four [five] directors constitute a quorum for the |
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consideration of all matters [pertaining to the purposes of the
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district], and a concurrence of a majority of a quorum of directors |
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is [shall be] required for any official action of the district. |
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SECTION 3.04. The heading to Section 9, Chapter 289, Acts of |
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the 73rd Legislature, Regular Session, 1993, is amended to read as |
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follows: |
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Sec. 9. ELECTION DATE TO DISCONTINUE ASSESSMENT OR TAX |
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[CONFIRMATION AND DIRECTORS ELECTIONS]. |
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SECTION 3.05. Chapter 289, Acts of the 73rd Legislature, |
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Regular Session, 1993, is amended by adding Section 9A to read as |
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follows: |
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Sec. 9A. ELECTIONS GENERALLY. (a) The board may hold an |
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election in the district to authorize: |
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(1) the release of all or part of the district |
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territory from the extraterritorial jurisdiction of a municipality |
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under a regional participation agreement authorized by this Act or |
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other law; |
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(2) all or part of the district territory to: |
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(A) incorporate as a municipality; or |
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(B) adopt another form of local government; |
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(3) the imposition of an ad valorem tax; |
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(4) debt payable wholly or partly from ad valorem |
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taxes; or |
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(5) any other bonds, contracts, indebtedness, |
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measures, or other propositions authorized by law. |
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(b) A measure under Subsection (a) is approved only if a |
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majority of the district voters voting at the election vote in favor |
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of the authorization. |
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SECTION 3.06. Section 11C, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended by adding |
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Subsections (q) and (r) to read as follows: |
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(q) On the creation and organization of a new development |
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zone that overlaps the territory of an existing development zone, |
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and the imposition or assessment by the governing body of an ad |
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valorem tax or limited sales and use tax for the new development |
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zone, the existing development zone is dissolved, and all assets, |
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including property, and all liabilities, including debt and other |
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obligations, of the existing development zones transfer to and are |
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assumed by the new development zone. |
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(r) For a development zone created to facilitate a |
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continuing improvement project, the board and the governing body |
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are not required to specify a duration or date of termination of the |
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development zone in: |
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(1) a preliminary financing plan; |
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(2) the resolution creating the development zone; or |
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(3) the project plan or financing plan of the |
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development zone. |
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SECTION 3.07. Section 12A, Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended by adding Subsection |
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(a-1) and amending Subsection (c) to read as follows: |
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(a-1) The bonds may be issued for any district purpose, |
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including: |
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(1) for an improvement project; and |
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(2) for payment of an amount under a regional |
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participation agreement authorized by this Act or other law. |
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(c) In addition to the sources of money described by |
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Subchapter J, Chapter 375, Local Government Code, the bonds of the |
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district may be secured and made payable, wholly or partly, by a |
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pledge of any part of the net proceeds the district receives from: |
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(1) a specified portion, but not more than one-half of |
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one percent, of the sales and use tax authorized by Section 11 of |
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this Act; [and] |
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(2) the hotel occupancy tax authorized by Section 11A |
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of this Act; |
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(3) an ad valorem tax approved by the district voters |
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at an election held for that purpose; |
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(4) revenue or proceeds received or to be received by |
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the district from a contract or other agreement, including a |
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contract with a development zone to facilitate an improvement |
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project or project plan of the district or the development zone; |
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(5) any other revenue from any source allowed under |
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this Act or other law; or |
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(6) any combination of revenue, taxes, or proceeds |
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described by this subsection. |
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SECTION 3.08. Section 13(b), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, is amended to read as follows: |
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(b) The district and a municipality any part of which is |
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located in the boundaries of the district [or impact area] may enter |
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into and carry out an interlocal agreement for the accomplishment |
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of an improvement project or the provision of a facility, a service, |
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or equipment by the district in or for the benefit of the |
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municipality. Notwithstanding any other law, payment for the |
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improvement project, facility, service, or equipment may be made or |
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pledged by the municipality to the district out of any money the |
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municipality collects under Chapter 351, Tax Code, or out of any |
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other available money. |
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SECTION 3.09. Sections 14(a), (c), and (d), Chapter 289, |
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Acts of the 73rd Legislature, Regular Session, 1993, are amended to |
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read as follows: |
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(a) The board may elect by majority vote to dissolve the |
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district at any time[, and the board shall dissolve the district on
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written petition of the owners of 75 percent, in terms of acreage,
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of the real property in the district]; however, the district may not |
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be dissolved by the board if the district has any outstanding |
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indebtedness or contractual obligations, including obligations |
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under a regional participation agreement authorized by this Act or |
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other law, until: |
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(1) the [such] indebtedness or contractual |
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obligations have been repaid or discharged; or |
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(2) the indebtedness and contractual obligations have |
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been assumed by another governmental entity with the power to repay |
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or discharge the indebtedness and contractual obligations. |
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(c) If on the date of the vote to dissolve the district more |
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than 50 percent of the territory of [within] the district is inside |
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[within] the boundaries of another governmental entity that has |
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assumed the district's indebtedness and contractual obligations |
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under Subsection (a) [corporate limits of a municipality], the |
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board shall transfer ownership of the district's property and |
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assets to that governmental entity [municipality]. |
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(d) The district may not be dissolved by a municipality |
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annexing all or part of [in which] the district territory [is
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located]. |
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SECTION 3.10. The following sections of Chapter 289, Acts |
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of the 73rd Legislature, Regular Session, 1993, are repealed: |
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(1) Section 2(4); |
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(2) Sections 8(b), (c), (d), and (k); |
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(3) Section 9(d); and |
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(4) Section 11C(e). |
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SECTION 3.11. (a) In this section, "board" and "district" |
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have the meanings assigned by Section 2, Chapter 289, Acts of the |
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73rd Legislature, Regular Session, 1993. |
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(b) The board shall hold an election on the uniform election |
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date in May 2008 to elect five directors at large. Each of the three |
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candidates receiving the highest number of votes is elected to |
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serve a three-year term, and each of the two candidates receiving |
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the next highest number of votes is elected to serve a two-year |
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term. |
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(c) The board shall hold an election on the uniform election |
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date in May 2010 to elect four directors at large. Each of the four |
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candidates receiving the highest number of votes is elected to |
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serve a two-year term. |
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(d) To the extent of any conflict, this section controls |
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over: |
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(1) Section 8(a), Chapter 289, Acts of the 73rd |
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Legislature, Regular Session, 1993, as amended by this article; or |
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(2) Section 8(a-1) or (a-2), Chapter 289, Acts of the |
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73rd Legislature, Regular Session, 1993, as added by this article. |
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SECTION 3.12. This article takes effect as provided by |
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Section 2.02 of this Act. |
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ARTICLE 4. LEGISLATIVE FINDING ON NOTICE OF ACT; |
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EFFECTIVE DATE OF ACT |
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SECTION 4.01. The legislature finds that: |
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(1) proper and legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished by |
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the constitution and laws of this state, including the governor, |
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who has submitted the notice and Act to the Texas Commission on |
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Environmental Quality; |
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(2) the Texas Commission on Environmental Quality has |
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filed its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time; |
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(3) the general law relating to consent by political |
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subdivisions to the creation of districts with conservation, |
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reclamation, and road powers and the inclusion of land in those |
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districts has been complied with; and |
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(4) all requirements of the constitution and laws of |
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this state and the rules and procedures of the legislature with |
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respect to the notice, introduction, and passage of this Act have |
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been fulfilled and accomplished. |
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SECTION 4.02. Except as provided by Sections 2.02 and 3.12, |
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this Act takes effect immediately if it receives a vote of |
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two-thirds of all the members elected to each house, as provided by |
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Section 39, Article III, Texas Constitution. If this Act does not |
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receive the vote necessary for immediate effect, this Act takes |
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effect September 1, 2007. |