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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the Fort Bend County Improvement |
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District No. 24; providing authority to impose an assessment, |
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impose a tax, and issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 4, Special District Local Laws |
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Code, is amended by adding Chapter 3898 to read as follows: |
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CHAPTER 3898. FORT BEND COUNTY IMPROVEMENT DISTRICT NO. 24 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 3898.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "City" means the City of Houston. |
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(3) "County" means Fort Bend County. |
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(4) "Director" means a board member. |
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(5) "District" means the Fort Bend County Improvement |
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District No. 24. |
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Sec. 3898.002. CREATION AND NATURE OF DISTRICT. The |
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district is a special district created under Section 59, Article |
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XVI, Texas Constitution. |
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Sec. 3898.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The |
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creation of the district is essential to accomplish the purposes of |
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Sections 52 and 52-a, Article III, and Section 59, Article XVI, |
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Texas Constitution, and other public purposes stated in this |
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chapter. By creating the district and in authorizing the city and |
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other political subdivisions to contract with the district, the |
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legislature has established a program to accomplish the public |
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purposes set out in Section 52-a, Article III, Texas Constitution. |
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(b) The creation of the district is necessary to promote, |
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develop, encourage, and maintain employment, commerce, |
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transportation, housing, tourism, recreation, the arts, |
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entertainment, economic development, safety, and the public |
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welfare in the district. |
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(c) The district is created to supplement and not to |
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supplant city services provided in the district. |
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Sec. 3898.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. |
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(a) The district is created to serve a public use and benefit. |
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(b) All land and other property included in the district |
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will benefit from the improvements and services to be provided by |
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the district under powers conferred by Sections 52 and 52-a, |
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Article III, and Section 59, Article XVI, Texas Constitution, and |
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other powers granted under this chapter. |
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(c) The creation of the district is in the public interest |
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and is essential to further the public purposes of: |
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(1) developing and diversifying the economy of the |
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state; |
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(2) eliminating unemployment and underemployment; |
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(3) developing or expanding transportation and |
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commerce; and |
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(4) providing quality residential housing. |
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(d) The district will: |
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(1) promote the health, safety, and general welfare of |
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residents, employers, potential employees, employees, visitors, |
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and consumers in the district, and of the public; |
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(2) provide needed funding for the district to |
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preserve, maintain, and enhance the economic health and vitality of |
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the district territory as a residential community and business |
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center; and |
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(3) promote the health, safety, welfare, and enjoyment |
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of the public by providing pedestrian ways and by landscaping, |
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removing graffiti from, and developing certain areas in the |
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district, which are necessary for the restoration, preservation, |
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and enhancement of scenic beauty. |
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(e) Pedestrian ways along or across a street, whether at |
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grade or above or below the surface, and street lighting, street |
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landscaping, vehicle parking, and street art objects are parts of |
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and necessary components of a street and are considered to be an |
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improvement project that includes a street or road improvement. |
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(f) The district will not act as the agent or |
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instrumentality of any private interest even though the district |
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will benefit many private interests as well as the public. |
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Sec. 3898.005. DISTRICT TERRITORY. (a) The district is |
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initially composed of the territory described by Section 2 of the |
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Act enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting this chapter form a closure. A mistake in the |
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field notes or in copying the field notes in the legislative process |
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does not affect the district's: |
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(1) organization, existence, or validity; |
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(2) right to issue any type of bond for the purposes |
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for which the district is created or to pay the principal of and |
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interest on a bond; |
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(3) right to impose or collect an assessment or tax; or |
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(4) legality or operation. |
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Sec. 3898.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. |
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(a) All or any part of the area of the district is eligible to be |
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included in: |
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(1) a tax increment reinvestment zone created under |
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Chapter 311, Tax Code; |
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(2) a tax abatement reinvestment zone created under |
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Chapter 312, Tax Code; |
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(3) an enterprise zone created under Chapter 2303, |
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Government Code; or |
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(4) an industrial district created under Chapter 42, |
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Local Government Code. |
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(b) If the city creates a tax increment reinvestment zone |
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described by Subsection (a), the city and the board of directors of |
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the zone, by contract with the district, may grant money deposited |
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in the tax increment fund to the district to be used by the district |
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for the purposes permitted for money granted to a corporation under |
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Section 380.002(b), Local Government Code, including the right to |
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pledge the money as security for any bonds issued by the district |
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for an improvement project. A project may not receive public funds |
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under Section 380.002(b), Local Government Code, unless the project |
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has been approved by the governing body of the city. |
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(c) A tax increment reinvestment zone created by the city in |
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the district is not subject to the limitations provided by Section |
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311.006(b), Tax Code. |
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Sec. 3898.007. APPLICABILITY OF MUNICIPAL MANAGEMENT |
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DISTRICTS LAW. Except as otherwise provided by this chapter, |
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Chapter 375, Local Government Code, applies to the district. |
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Sec. 3898.008. LIBERAL CONSTRUCTION OF CHAPTER. This |
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chapter shall be liberally construed in conformity with the |
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findings and purposes stated in this chapter. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 3898.051. GOVERNING BODY; TERMS. The district is |
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governed by a board of five directors who serve staggered terms of |
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four years, with two or three directors' terms expiring June 1 of |
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each odd-numbered year. |
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Sec. 3898.052. QUALIFICATIONS OF DIRECTORS APPOINTED BY |
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CITY. (a) To be qualified to serve as a director appointed by the |
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governing body of the city, a person must be: |
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(1) a resident of the district who is also a registered |
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voter of the district; |
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(2) an owner of property in the district; |
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(3) an owner of stock or a partnership or membership |
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interest, whether beneficial or otherwise, of a corporate |
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partnership, limited liability company, or other entity owner of a |
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direct or indirect interest in property in the district; |
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(4) an owner of a beneficial interest in a trust, or a |
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trustee in a trust, that directly or indirectly owns property in the |
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district; |
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(5) an agent, employee, or tenant of a person |
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described by Subdivision (2), (3), or (4); or |
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(6) an initial director under Section 3898.062. |
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(b) Section 49.052, Water Code, does not apply to the |
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district. |
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Sec. 3898.053. APPOINTMENT OF DIRECTORS. The governing |
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body of the city shall appoint directors from persons recommended |
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by the board. |
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Sec. 3898.054. VACANCY. If a vacancy occurs on the board, |
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the remaining directors shall appoint a director for the remainder |
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of the unexpired term. |
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Sec. 3898.055. DIRECTOR'S OATH OR AFFIRMATION. (a) A |
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director shall file the director's oath or affirmation of office |
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with the district, and the district shall retain the oath or |
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affirmation in the district records. |
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(b) A director shall file a copy of the director's oath or |
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affirmation with the secretary of the city. |
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Sec. 3898.056. QUORUM. A vacant director position is not |
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counted for purposes of establishing a quorum. |
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Sec. 3898.057. OFFICERS. The board shall elect from among |
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the directors a chair, a vice chair, and a secretary. The offices |
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of chair and secretary may not be held by the same person. |
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Sec. 3898.058. COMPENSATION; EXPENSES. (a) The district |
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may compensate each director in an amount not to exceed $50 for each |
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board meeting. The total amount of compensation a director may |
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receive each year may not exceed $2,000. |
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(b) A director is entitled to reimbursement for necessary |
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and reasonable expenses incurred in carrying out the duties and |
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responsibilities of the board. |
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Sec. 3898.059. LIABILITY INSURANCE. The district may |
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obtain and pay for comprehensive general liability insurance |
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coverage from a commercial insurance company or other source that |
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protects and insures a director against personal liability and from |
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all claims relating to: |
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(1) actions taken by the director in the director's |
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capacity as a member of the board; |
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(2) actions and activities taken by the district; or |
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(3) the actions of others acting on behalf of the |
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district. |
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Sec. 3898.060. NO EXECUTIVE COMMITTEE. The board may not |
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create an executive committee to exercise the powers of the board. |
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Sec. 3898.061. BOARD MEETINGS. The board shall hold |
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meetings at a place accessible to the public. |
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Sec. 3898.062. INITIAL DIRECTORS. (a) The initial board |
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consists of: |
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Pos. No. Name of Director |
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1 Jim Foreman |
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2 Erin Dyer |
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3 Scott Leafe |
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4 Belinda Meller |
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5 David Foor |
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(b) The terms of the initial directors expire June 1, 2015. |
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(c) Of the directors who replace an initial director, the |
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terms of directors serving in positions 1, 2, and 3 expire June 1, |
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2017, and the terms of directors serving in positions 4 and 5 expire |
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June 1, 2019. |
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(d) Section 3898.052 does not apply to this section. |
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(e) This section expires September 1, 2019. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 3898.101. GENERAL POWERS AND DUTIES. The district has |
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the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 3898.102. IMPROVEMENT PROJECTS AND SERVICES. The |
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district may provide, design, construct, acquire, improve, |
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relocate, operate, maintain, or finance an improvement project or |
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service using money available to the district, or contract with a |
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governmental or private entity to provide, design, construct, |
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acquire, improve, relocate, operate, maintain, or finance an |
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improvement project or service authorized under this chapter or |
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Chapter 375, Local Government Code. |
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Sec. 3898.103. LOCATION OF IMPROVEMENT PROJECT. An |
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improvement project described by Section 3898.102 may be located: |
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(1) in the district; or |
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(2) in an area outside but adjacent to the district if |
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the project is for the purpose of extending a public infrastructure |
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improvement beyond the district's boundaries to a logical terminus. |
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Sec. 3898.104. DEVELOPMENT CORPORATION POWERS. The |
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district, using money available to the district, may exercise the |
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powers given to a development corporation under Chapter 505, Local |
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Government Code, including the power to own, operate, acquire, |
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construct, lease, improve, or maintain a project under that |
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chapter. |
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Sec. 3898.105. NONPROFIT CORPORATION. (a) The board by |
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resolution may authorize the creation of a nonprofit corporation to |
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assist and act for the district in implementing a project or |
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providing a service authorized by this chapter. |
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(b) The nonprofit corporation: |
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(1) has each power of and is considered to be a local |
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government corporation created under Subchapter D, Chapter 431, |
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Transportation Code; and |
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(2) may implement any project and provide any service |
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authorized by this chapter. |
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(c) The board shall appoint the board of directors of the |
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nonprofit corporation. The board of directors of the nonprofit |
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corporation shall serve in the same manner as the board of directors |
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of a local government corporation created under Subchapter D, |
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Chapter 431, Transportation Code, except that a board member is not |
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required to reside in the district. |
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Sec. 3898.106. AGREEMENTS; GRANTS. (a) As provided by |
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Chapter 375, Local Government Code, the district may make an |
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agreement with or accept a gift, grant, or loan from any person. |
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(b) The implementation of a project is a governmental |
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function or service for the purposes of Chapter 791, Government |
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Code. |
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Sec. 3898.107. LAW ENFORCEMENT SERVICES. To protect the |
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public interest, the district may contract with a qualified party, |
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including the county or the city, to provide law enforcement |
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services in the district for a fee. |
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Sec. 3898.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The |
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district may join and pay dues to a charitable or nonprofit |
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organization that performs a service or provides an activity |
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consistent with the furtherance of a district purpose. |
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Sec. 3898.109. ECONOMIC DEVELOPMENT. (a) The district may |
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engage in activities that accomplish the economic development |
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purposes of the district. |
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(b) The district may establish and provide for the |
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administration of one or more programs to promote state or local |
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economic development and to stimulate business and commercial |
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activity in the district, including programs to: |
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(1) make loans and grants of public money; and |
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(2) provide district personnel and services. |
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(c) The district may create economic development programs |
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and exercise the economic development powers that: |
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(1) Chapter 380, Local Government Code, provides to a |
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municipality; and |
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(2) Subchapter A, Chapter 1509, Government Code, |
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provides to a municipality. |
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Sec. 3898.110. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS |
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Sec. 3898.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The |
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board by resolution shall establish the number of signatures and |
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the procedure required for a disbursement or transfer of the |
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district's money. |
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Sec. 3898.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. |
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The district may acquire, construct, finance, operate, or maintain |
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an improvement project or service authorized under this chapter or |
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Chapter 375, Local Government Code, using any money available to |
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the district. |
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Sec. 3898.153. GENERAL POWERS REGARDING PAYMENT OF DISTRICT |
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BONDS, OBLIGATIONS, OR OTHER COSTS. The district may provide or |
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secure the payment or repayment of any bond, note, or other |
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temporary or permanent obligation or reimbursement or other |
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contract with any person and the costs and expenses of the |
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establishment, administration, and operation of the district and |
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the district's costs or share of the costs or revenue of an |
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improvement project or district contractual obligation or |
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indebtedness by: |
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(1) the imposition of an ad valorem tax or sales and |
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use tax or an assessment, user fee, concession fee, or rental |
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charge; or |
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(2) any other revenue or resources of the district, or |
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other revenue authorized by the city, including revenues from a tax |
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increment reinvestment zone created by the city under applicable |
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law. |
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Sec. 3898.154. PETITION REQUIRED FOR FINANCING SERVICES AND |
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IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a |
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service or improvement project with assessments under this chapter |
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unless a written petition requesting that service or improvement |
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has been filed with the board. |
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(b) The petition must be signed by: |
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(1) the owners of a majority of the assessed value of |
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real property in the district subject to assessment according to |
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the most recent certified tax appraisal roll for the county; or |
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(2) at least 25 persons who own real property in the |
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district subject to assessment, if more than 25 persons own real |
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property in the district subject to assessment as determined by the |
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most recent certified tax appraisal roll for the county. |
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Sec. 3898.155. METHOD OF NOTICE FOR HEARING. The district |
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may mail the notice required by Section 375.115(c), Local |
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Government Code, by certified or first class United States mail. |
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The board shall determine the method of notice. |
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Sec. 3898.156. ASSESSMENTS; LIENS FOR ASSESSMENTS. |
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(a) The board by resolution may impose and collect an assessment |
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for any purpose authorized by this chapter in all or any part of the |
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district. |
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(b) An assessment, a reassessment, or an assessment |
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resulting from an addition to or correction of the assessment roll |
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by the district, penalties and interest on an assessment or |
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reassessment, an expense of collection, and reasonable attorney's |
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fees incurred by the district: |
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(1) are a first and prior lien against the property |
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assessed; |
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(2) are superior to any other lien or claim other than |
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a lien or claim for county, school district, or municipal ad valorem |
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taxes; and |
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(3) are the personal liability of and a charge against |
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the owners of the property even if the owners are not named in the |
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assessment proceedings. |
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(c) The lien is effective from the date of the board's |
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resolution imposing the assessment until the date the assessment is |
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paid. The board may enforce the lien in the same manner that the |
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board may enforce an ad valorem tax lien against real property. |
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(d) The board may make a correction to or deletion from the |
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assessment roll that does not increase the amount of assessment of |
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any parcel of land without providing notice and holding a hearing in |
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the manner required for additional assessments. |
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Sec. 3898.157. STORM WATER USER CHARGES. The district may |
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establish user charges related to the operation of storm water |
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facilities, including the regulation of storm water for the |
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protection of water quality in the district. |
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Sec. 3898.158. NONPOTABLE WATER USER CHARGES. The district |
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may establish user charges for the use of nonpotable water for |
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irrigation purposes, subject to approval of the governing body of |
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the city. |
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Sec. 3898.159. COSTS FOR IMPROVEMENT PROJECTS. The |
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district may undertake separately or jointly with other persons, |
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including the city or county, all or part of the cost of an |
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improvement project, including an improvement project: |
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(1) for improving, enhancing, and supporting public |
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safety and security, fire protection and emergency medical |
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services, and law enforcement in or adjacent to the district; or |
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(2) that confers a general benefit on the entire |
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district or a special benefit on a definable part of the district. |
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Sec. 3898.160. TAX AND ASSESSMENT ABATEMENTS. The district |
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may designate reinvestment zones and may grant abatements of a tax |
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or assessment on property in the zones. |
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SUBCHAPTER E. TAXES AND BONDS |
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Sec. 3898.201. TAX ABATEMENT. The district may enter into a |
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tax abatement agreement in accordance with the general laws of this |
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state authorizing and applicable to a tax abatement agreement by a |
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municipality. |
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Sec. 3898.202. PROPERTY TAX AUTHORIZED. (a) The district |
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may impose an ad valorem tax on all taxable property in the district |
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to: |
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(1) pay for an improvement project of the types |
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authorized by Section 52(b), Article III, and Section 59, Article |
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XVI, Texas Constitution; or |
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(2) secure the payment of bonds issued for a purpose |
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described by Subdivision (1). |
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(b) The district may not impose an ad valorem tax to pay for |
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an improvement project under this chapter unless the imposition is |
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approved by the voters of the district voting at an election held |
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for that purpose. The board may call an election to approve the |
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imposition of an ad valorem tax to pay for an improvement project |
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under this chapter only if the board receives a petition requesting |
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the election signed by: |
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(1) more than 51 percent of the record owners of real |
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property in the district subject to taxation; or |
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(2) owners representing more than 51 percent of the |
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appraised value of real property in the district subject to |
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taxation, as determined by the tax rolls of the appraisal district. |
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Sec. 3898.203. SALES AND USE TAX. (a) The district may |
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impose a sales and use tax if authorized by a majority of the voters |
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of the district voting at an election called for that purpose. |
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Revenue from the tax may be used for any purpose for which ad |
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valorem tax revenue of the district may be used. |
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(b) The district may not adopt a sales and use tax if as a |
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result of the adoption of the tax the combined rate of all sales and |
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use taxes imposed by the district and other political subdivisions |
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of this state having territory in the district would exceed two |
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percent at any location in the district. |
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(c) If the voters of the district approve the adoption of |
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the tax at an election held on the same election date on which |
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another political subdivision adopts a sales and use tax or |
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approves an increase in the rate of its sales and use tax and as a |
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result the combined rate of all sales and use taxes imposed by the |
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district and other political subdivisions of this state having |
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territory in the district would exceed two percent at any location |
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in the district, the election to adopt a sales and use tax under |
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this chapter has no effect. |
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Sec. 3898.204. BONDS AND OTHER OBLIGATIONS. (a) The |
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district may issue, by public or private sale, bonds, notes, or |
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other obligations payable wholly or partly from ad valorem taxes, |
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sales and use taxes, or assessments in the manner provided by |
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Subchapter A, Chapter 372, or Subchapter J, Chapter 375, Local |
|
Government Code. |
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(b) In exercising the district's borrowing power, the |
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district may issue a bond or other 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. |
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(c) In addition to the sources of money described by |
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Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local |
|
Government Code, district bonds may be secured and made payable |
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wholly or partly by a pledge of any part of the money the district |
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receives from improvement revenue or from any other source. |
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Sec. 3898.205. BOND MATURITY. Bonds may mature not more |
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than 40 years from their date of issue. |
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Sec. 3898.206. TAXES FOR BONDS AND OTHER OBLIGATIONS. At |
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the time bonds or other obligations payable wholly or partly from ad |
|
valorem taxes are issued: |
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(1) the board shall impose a continuing direct annual |
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ad valorem tax for each year that all or part of the bonds are |
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outstanding; and |
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(2) the district annually shall impose an ad valorem |
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tax on all taxable property in the district in an amount sufficient |
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to: |
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(A) pay the interest on the bonds or other |
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obligations as the interest becomes due; and |
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(B) create a sinking fund for the payment of the |
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principal of the bonds or other obligations when due or the |
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redemption price at any earlier required redemption date. |
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SUBCHAPTER F. DISSOLUTION |
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Sec. 3898.251. DISSOLUTION BY CITY ORDINANCE. (a) The |
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city by ordinance may dissolve the district. |
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(b) The city may not dissolve the district until the |
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district's outstanding debt or contractual obligations that are |
|
payable from ad valorem taxes have been repaid or discharged, or the |
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city has affirmatively assumed the obligation to pay the |
|
outstanding debt from city revenue. |
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Sec. 3898.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. |
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(a) If the dissolved district has bonds or other obligations |
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outstanding secured by and payable from assessments or other |
|
revenue, other than ad valorem taxes, the city shall succeed to the |
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rights and obligations of the district regarding enforcement and |
|
collection of the assessments or other revenue. |
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(b) The city shall have and exercise all district powers to |
|
enforce and collect the assessments or other revenue to pay: |
|
(1) the bonds or other obligations when due and |
|
payable according to their terms; or |
|
(2) special revenue or assessment bonds or other |
|
obligations issued by the city to refund the outstanding bonds or |
|
obligations. |
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Sec. 3898.253. CONCURRENCE ON ADDITIONAL POWERS. If the |
|
legislature grants the district a power that is in addition to the |
|
powers approved by the initial resolution of the governing body of |
|
the city consenting to the creation of the district, the district |
|
may not exercise that power unless the governing body of the city |
|
consents to that change by resolution. |
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Sec. 3898.254. ASSUMPTION OF ASSETS AND LIABILITIES. |
|
(a) After the city dissolves the district, the city assumes, |
|
subject to the appropriation and availability of funds, the |
|
obligations of the district, including any bonds or other debt |
|
payable from assessments or other district revenue. |
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(b) If the city dissolves the district, the board shall |
|
transfer ownership of all district property to the city. |
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SECTION 2. The Fort Bend County Improvement District No. 24 |
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initially includes all the territory contained in the following |
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area: |
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The Fort Bend County Improvement District is comprised of 93.243 |
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acres located at the northeast corner of Farm-to-Market (FM) Road |
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1093 and FM Road 1463 with the beginning point at the north |
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right-of-way (ROW) of FM 1093 and east ROW of FM 1463 and the |
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southwest corner of 8.81 ac. parcel (0274 R H KUYKENDALL, ACRES |
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8.81); Then north along east ROW of FM 1463 and coincident west |
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boundary of 8.81 ac. parcel (0274 R H KUYKENDALL, ACRES 8.81), and |
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84.013 ac. parcel (0421 T W SOUTHERLAND, ACRES 84.013) to northwest |
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corner of said 84.013 ac. parcel; Then east along north boundary of |
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said 84.013 ac. parcel to northeast corner of said parcel; Then |
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south along east boundary of said 84.013 ac. parcel, and 0.42 ac. |
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parcel (0574 JOHN FOSTER, ACRES .42) to southeast corner of said |
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0.42 ac. parcel and north ROW of FM 1093; Then west southwest along |
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south boundary of said 0.42 acre parcel, and 8.81 ac. parcel (0274 R |
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H KUYKENDALL, ACRES 8.81) to southwest corner of said 8.81 ac. |
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parcel and beginning point of 93.243 acre tract. |
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SECTION 3. (a) The 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 |
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under Section 59, Article XVI, Texas Constitution, and Chapter 313, |
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Government Code. |
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(b) The governor, one of the required recipients, has |
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submitted the notice and Act to the Texas Commission on |
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Environmental Quality. |
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(c) The Texas Commission on Environmental Quality has filed |
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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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(d) 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. |
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(e) All requirements of the constitution and laws of this |
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state and the rules and procedures of the legislature with respect |
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to the notice, introduction, and passage of this Act have been |
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fulfilled and accomplished. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |
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