80R8708 MXM-F

By: Wentworth S.B. No. 1421

A BILL TO BE ENTITLED

AN ACT

relating to allowing the creation of scientific and cultural facilities districts in council of government regions; authorizing a tax.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. FINDINGS. The legislature finds that:

(1) the scientific and cultural facilities located in this state are a rich source of inspiration and knowledge to this state;

(2) the preservation and development of this state's scientific and cultural facilities are vital to the cultural and economic life and well-being of this state; and

(3) the creation of scientific and cultural facilities districts in this state will promote the health, safety, and welfare of the residents of this state.

SECTION 2. SCIENTIFIC AND CULTURAL FACILITIES DISTRICTS. Subtitle C, Title 10, Local Government Code, is amended by adding Chapter 337 to read as follows: CHAPTER 337. SCIENTIFIC AND CULTURAL FACILITIES DISTRICTS SUBCHAPTER A. GENERAL PROVISIONS

Sec. 337.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Director" means a board member.

(3) "District" means a scientific and cultural facilities district created under this chapter.

(4) "Executive director" means an executive director employed under Section 337.103.

(5) "Lead governmental entity" means the county that proposes to create a district under this chapter.

(6) "Region" means a region for a council of government created under Chapter 391.

Sec. 337.002. NATURE OF DISTRICT. A district is a special district and a political subdivision of this state.

Sec. 337.003. SUPPORT AND MAINTENANCE OF SCIENTIFIC OR CULTURAL FACILITY. A district shall assist in the development and diversification of the economy of this state by helping to equip, support, and maintain a facility having as its primary purpose the advancement and preservation of:

(1) zoology, botany, anthropology, cultural history, or natural history; or

(2) art, music, theater, or dance. [Sections 337.004-337.020 reserved for expansion] SUBCHAPTER B. CREATION OF DISTRICT

Sec. 337.021. COUNCIL OF GOVERNMENT REGIONS. Each region may create not more than one district.

Sec. 337.022. ROLE OF LEAD GOVERNMENTAL ENTITY. (a) A district may be created by the most populous county in a region that, by resolution, assumes the role of a lead governmental entity under this chapter and proposes the creation of a district for specific contiguous counties in the region that by resolution agree to have their territory in the district.

(b) The governing body of the most populous county in a region may adopt a resolution under Subsection (a) on its own motion or after a hearing held on a petition requesting the creation of a district.

Sec. 337.023. TERRITORY INCLUDED IN DISTRICT. (a) The lead governmental entity shall describe the initial district territory, which must include all territory of each county in the region that agrees to have its territory in the district under Section 337.022.

(b) The district may include incorporated or unincorporated territory and may include any contiguous territory in one or more counties in the region that agree to have the counties' territory in the district under Section 337.022.

Sec. 337.024. CONFIRMATION ELECTION REQUIRED. A district may be created only if confirmed at an election held for the purpose of confirming the creation of the district and approving a sales tax in the district.

Sec. 337.025. PAYMENT OF CONFIRMATION ELECTION COSTS. The lead governmental entity may not order the confirmation election until the entity deposits with the county clerk an amount of money equal to the cost of conducting the confirmation election, as computed by the county clerk.

Sec. 337.026. ORDERING CONFIRMATION ELECTION. (a) The governing body of the lead governmental entity may order a confirmation election to confirm the district's creation and to confirm the imposition of a sales tax in the proposed district.

(b) In addition to the elements required to be included by the Election Code, the election order must state:

(1) the ballot proposition stating the measure to be voted on;

(2) the hours that the polls will be open; and

(3) the location of each polling place.

Sec. 337.027. NOTICE OF CONFIRMATION ELECTION. (a) The lead governmental entity shall give notice of the election by publishing a substantial copy of the election order once a week for two consecutive weeks in a newspaper with general circulation in each county in which the proposed district is located.

(b) The notice must be published not earlier than the 30th day and not later than the 10th day before election day.

Sec. 337.028. BALLOT PROPOSITION. The ballot for the election shall be printed to permit voting for or against the proposition: "The creation of a scientific and cultural facilities district to be known as the __________ (name of district) and adoption of a sales tax in the __________ (name of district) at the rate of _______ (rate of tax) percent."

Sec. 337.029. RESULTS OF CONFIRMATION ELECTION. (a) If a majority of the voters voting in the election favor the creation of the district and the adoption of a sales tax, the lead governmental entity shall by resolution or order declare that the district is created and shall declare the rate of the sales tax adopted and enter the result in its minutes.

(b) If a majority of the voters voting in the election do not favor the creation of the district, the lead governmental entity shall declare the measure defeated and enter the result in its minutes.

(c) An order under Subsection (a) must:

(1) contain a description of the district's boundaries and a map of the district;

(2) state the election date; and

(3) state the total number of votes cast for and against the ballot proposition.

(d) The lead governmental entity must file in the deed records of each county in which the district is located a resolution or order issued under Subsection (a).

Sec. 337.030. INITIAL BOARD AND PRESIDING OFFICER. (a) Appointments to the initial board are made as provided by Subchapter C, except that the initial directors shall agree to stagger their terms, with four terms expiring in two years and three terms expiring in one year. If the directors cannot agree on the initial staggering, the directors shall draw lots to determine the staggering.

(b) The lead governmental entity shall appoint the board's initial presiding officer to serve a two-year term in that capacity. The requirement of Section 337.056 that the board elect the presiding officer does not apply to the presiding officer appointed under this subsection.

Sec. 337.031. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) The district may:

(1) pay all costs and expenses necessarily incurred in the creation and organization of the district; and

(2) reimburse any person for money advanced for the costs and expenses described by Subdivision (1).

(b) Payments under this section may be made from money obtained from taxes or other district revenue. [Sections 337.032-337.050 reserved for expansion] SUBCHAPTER C. BOARD OF DIRECTORS

Sec. 337.051. GOVERNING BODY. A district is governed by a seven-member board. The board has control over and shall manage the affairs of the district.

Sec. 337.052. APPOINTMENT. (a) The lead governmental entity shall appoint four directors to the board.

(b) The most populous municipality in the district shall appoint three directors to the board.

Sec. 337.053. ELIGIBILITY FOR APPOINTMENT. A person is eligible for appointment to the board if the person:

(1) resides in the district;

(2) is registered to vote in a county in which the district is located; and

(3) has recognized expertise in:

(A) business;

(B) education;

(C) government;

(D) science or culture; or

(E) nonprofit management.

Sec. 337.054. TERMS. Directors serve staggered two-year terms.

Sec. 337.055. VACANCY. A vacancy on the board shall be filled by appointment for the remainder of the unexpired term by the governmental entity that appointed the vacating director.

Sec. 337.056. OFFICERS. (a) The board shall elect a director to serve as the board's presiding officer. The presiding officer presides at all board meetings and is the chief executive officer of the district.

(b) The board shall elect from among its members a vice presiding officer, a secretary, and any other officers the board considers necessary.

(c) The vice presiding officer acts as the presiding officer if the presiding officer is incapacitated or absent from a meeting.

(d) The secretary acts as the presiding officer if both the presiding officer and vice presiding officer are incapacitated or absent from a meeting.

Sec. 337.057. MEETINGS AND NOTICE. (a) The board may establish regular meetings to conduct district business and may hold special meetings at other times as the business of the district requires.

(b) The board shall hold its meetings at a designated meeting place.

Sec. 337.058. CONFLICT OF INTEREST IN CONTRACT. (a) For purposes of this section, a director who is an employee of or a director related within the second degree by affinity or consanguinity as determined under Subchapter B, Chapter 573, Government Code, to a person who is financially interested in a contract is considered to be financially interested in the contract.

(b) A director who is financially interested in a contract may not vote on the acceptance of the contract or participate in the discussion on the contract.

(c) A director who is financially interested in a contract with the district shall disclose that fact to the other directors. The disclosure shall be entered into the minutes of the meeting.

(d) The failure of a director to disclose the director's financial interest in a contract and to have the disclosure entered in the minutes invalidates the contract. [Sections 337.059-337.100 reserved for expansion] SUBCHAPTER D. OTHER ADMINISTRATIVE PROVISIONS

Sec. 337.101. BYLAWS. The board may adopt bylaws to govern:

(1) the time, place, and manner of conducting board meetings;

(2) the powers, duties, and responsibilities of the board's officers and employees;

(3) the disbursement of money by a check, draft, or warrant;

(4) the appointment and authority of board committees;

(5) the keeping of accounts and other records; and

(6) any other matter the board considers appropriate.

Sec. 337.102. EMPLOYEES. (a) The board may employ any person the board considers necessary for conducting the district's affairs.

(b) The board may remove any employee.

Sec. 337.103. EXECUTIVE DIRECTOR. (a) The board may employ an executive director to administer the affairs of the district under policies and requirements established by the board.

(b) The board shall set the compensation of the executive director.

(c) The board may delegate to the executive director the board's authority to hire, establish the compensation of, review the performance of, discipline, or remove a district employee.

Sec. 337.104. BOND. The board may require an officer or employee to execute a bond payable to the district and conditioned on the faithful performance of the person's duties.

Sec. 337.105. EMPLOYEE PLANS. (a) The board may provide for and administer a workers' compensation, health benefit, retirement, disability, or death compensation plan for district employees.

(b) The board may adopt a plan to accomplish the purpose of this section.

(c) The board, after notice and a hearing, may change any plan or rule adopted under this section.

Sec. 337.106. RECORDS; SECRETARY. (a) The secretary is responsible for ensuring that all district books and other records are properly maintained.

(b) The board may appoint the executive director or an employee as assistant or deputy secretary to assist the secretary in performing the secretary's duties under this section. The assistant or deputy secretary may certify the authenticity of any district record. [Sections 337.107-337.150 reserved for expansion] SUBCHAPTER E. POWERS AND DUTIES

Sec. 337.151. GENERAL POWERS OF DISTRICT. A district has all authority necessary to accomplish district purposes.

Sec. 337.152. RULES; VIOLATION OF RULES. (a) The board may adopt reasonable rules to accomplish district purposes.

(b) The board may set monetary charges in reasonable amounts for the violation of a district rule.

Sec. 337.153. DETERMINATION OF FACILITY ELIGIBILITY FOR MONEY; ALLOCATION. (a) The board shall determine the eligibility of a scientific or cultural facility, including a museum or zoo, to receive money distributed under this chapter. In making a determination, the board shall consider the facility's financial and organizational capacity to spend tax dollars to serve the public purpose of the district and achieve the facility's mission.

(b) A district may allocate money to equip, support, or maintain a scientific or cultural facility described by Section 337.003 only if the facility:

(1) is in the district;

(2) is owned by a nonprofit organization exempt from taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c)(3) of that code; and

(3) was in existence and operating for at least two years before the date the money is allocated.

(c) The board shall allocate money, including sales tax revenue, to a scientific or cultural facility based on the facility's:

(1) annual operating income;

(2) annual paid attendance;

(3) accessibility;

(4) quality; and

(5) need.

Sec. 337.154. CONTRACTS. A district may contract with any person for any district purpose.

Sec. 337.155. SUITS. (a) A district may sue and be sued in any court of this state in the district's name.

(b) A court of this state shall take judicial notice of the district's establishment.

(c) A district is not required to give security for costs in a suit or to give a supersedeas or cost bond in an appeal of a judgment.

Sec. 337.156. EXPANSION OF DISTRICT. (a) The district may expand to include additional territory if the commissioners court of the county in which the territory is located holds an election for that purpose in the territory to be added to the district.

(b) If a majority of the voters voting at the expansion election approve the expansion of the district, the territory of the district is expanded. [Sections 337.157-337.200 reserved for expansion] SUBCHAPTER F. GENERAL FINANCIAL PROVISIONS

Sec. 337.201. BORROWING. A district may borrow money.

Sec. 337.202. DEPOSITORY. (a) The board shall designate one or more banks inside or outside of the district to serve as the depository for district money.

(b) The district shall deposit district tax revenue in a depository bank.

Sec. 337.203. ACCOUNTS AND RECORDS; AUDITS. (a) A district shall keep a complete system of accounts.

(b) The district shall have an annual audit of the district affairs performed by an independent certified public accountant.

(c) The district shall have a signed copy of the audit report delivered to each director not later than the 120th day after the closing date of each fiscal year.

(d) A copy of the audit report shall be kept on file at the district office and shall be made available for inspection by any interested person during regular business hours.

Sec. 337.204. GRANTS AND DONATIONS. A district may accept and administer a grant or donation from any source for any district purpose. [Sections 337.205-337.250 reserved for expansion] SUBCHAPTER G. SALES AND USE TAX

Sec. 337.251. IMPOSITION, COMPUTATION, ADMINISTRATION, AND GOVERNANCE OF SALES AND USE TAX. (a) A district may impose a sales and use tax.

(b) Chapter 321, Tax Code, to the extent not inconsistent with this chapter, governs the imposition, computation, administration, and governance of the sales and use tax under this subchapter, except that Sections 321.101, 321.404, and 321.406-321.408, Tax Code, do not apply.

(c) Chapter 321, Tax Code, does not apply to the use and allocation of revenue under this chapter.

(d) In applying the procedures under Chapter 321, Tax Code, to the district, the district's name shall be substituted for "the municipality," and "board of directors" is substituted for "governing body."

Sec. 337.252. SALES AND USE TAX RATES. The permissible rates for a sales and use tax imposed under this chapter are one-eighth of one percent, one-fourth of one percent, three-eighths of one percent, and one-half of one percent.

Sec. 337.253. USE OF SALES AND USE TAX. A sales and use tax collected under this subchapter may be used only for a district purpose and may be pledged as collateral for borrowing money to further those purposes.

SECTION 3. EFFECTIVE DATE. 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.