81R13992 JJT-D By: Coleman H.B. No. 3484 A BILL TO BE ENTITLED AN ACT relating to the powers and duties of special purpose districts and related matters. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. DEFINITIONS. In this Act: (1) "Special purpose district" includes any special district created by general or special law as a political subdivision of this state, including: (A) a conservation and reclamation district created under Section 59, Article XVI, Texas Constitution; (B) a road utility district or a district created to manage water created under Section 52, Article III, Texas Constitution; (C) a hospital district created under Sections 4 through 11, Article IX, Texas Constitution; (D) an airport authority created under Section 12, Article IX, Texas Constitution; and (E) a municipal development district created under Chapter 377, Local Government Code. (2) "Internal district" includes any defined area as designated by this state or a political subdivision of this state for special treatment by this state or the political subdivision or to accomplish a purpose of this state or the political subdivision inside that defined area, including: (A) a reinvestment zone for tax increment financing or tax abatement as authorized under Chapter 311 or 312, Tax Code, or other law; (B) an enterprise zone authorized under Chapter 2303, Government Code; (C) a defense economic readjustment zone authorized under Chapter 2310, Government Code; (D) an improvement district authorized under Chapter 372, Local Government Code; (E) an area designated for a community development program under Chapter 373, Local Government Code; (F) a homestead preservation district designated or a homestead preservation reinvestment zone created under Chapter 373A, Local Government Code; (G) an area designated as a blighted area under Chapter 374, Local Government Code; (H) a neighborhood empowerment zone created under Chapter 378, Local Government Code; (I) a North American Free Trade Agreement impact zone created under Chapter 379, Local Government Code; and (J) a defense base development authority established under Chapter 379B, Local Government Code. SECTION 2. COMMISSIONERS COURT OVERSIGHT. (a) A county commissioners court has oversight authority over a special purpose district or internal district created or operating inside the county's boundaries. (b) A special purpose district or internal district may not be created inside a county's boundaries without giving the commissioners court of the county: (1) notice of the intention to create the special purpose district or internal district; (2) an opportunity to comment on the creation of the special purpose district or internal district; and (3) express oversight authority over the special purpose district or internal district to the extent permitted by the Texas Constitution. (c) The boundaries of a special purpose district or internal district may not be altered inside a county's boundaries without giving the commissioners court of the county: (1) notice of the intention to alter the boundaries; and (2) an opportunity to comment on the alteration. (d) A special purpose district may not convert to a special purpose district of another kind or consolidate with another district without giving the commissioners court of the county: (1) notice of the intention to convert or consolidate; and (2) an opportunity to comment on the conversion or consolidation. SECTION 3. POWERS AND DUTIES OF SPECIAL PURPOSE DISTRICTS, INTERNAL DISTRICTS, OR POLITICAL SUBDIVISIONS. (a) A special purpose district may be given authority to issue, amend, or revoke permits under its jurisdiction and to enforce permit conditions. (b) A county commissioners court may impose on a special purpose district or internal district a duty to report to the court regarding matters related to the jurisdiction or purpose of the special purpose district or internal district. (c) A special purpose district or a political subdivision that creates or establishes an internal district may require a utility to relocate utility facilities at the utility's expense to facilitate the district or subdivision initiating or altering a project in the right-of-way where the utility facilities are located. (d) Bonds to be issued by or on behalf of a special purpose district or internal district are subject to the approval of a county commissioners court. (e) A special purpose district or internal district may initiate recycling programs inside or outside of the boundaries of the district. (f) Peace officers may be employed by or on the behalf of a special purpose district or internal district. (g) To the extent provided by law, a special purpose district or internal district may tax, make assessments against, or impose fees on a person inside the boundaries of the special purpose district or internal district to pay for purposes of the district. (h) A special purpose district or internal district may borrow money to finance purposes of the district. (i) A special purpose district or internal district may change the number or qualifications of the district's governing body. (j) A special purpose district or internal district may alter its boundaries subject to Section 2(c) of this Act. (k) A special purpose district or internal district may contract with other persons to accomplish its purposes. (l) As provided by law, a special purpose district may convert into a special purpose district of another kind or consolidate with another district, subject to Section 2(d) of this Act. (m) A special purpose district or internal district may require of any person a report on a matter related to the purpose for which the district is created. The report must be in the form and include information as required by the district. (n) A special purpose district or internal district may adopt rules to ensure that the purposes for which the district is created may be accomplished. A special purpose district may impose penalties on a person who violates a rule of the district. An internal district's rule may be enforced by the entity that created the district. SECTION 4. ENERGY MATTERS. (a) A special purpose district or internal district, to the extent permissible by law, may engage in activities to promote energy efficiency or the transmission of electric energy inside the district's territory. (b) A special purpose district or internal district shall undertake programs to ensure that its activities are as energy efficient as practicable. (c) A special purpose district or internal district shall undertake programs to educate the public regarding activities the district takes regarding energy and energy efficiency. The programs may also include educational efforts to promote energy conservation or energy efficiency by the members of the public in the district's territory. SECTION 5. RECYCLING AND WASTE DISPOSAL. (a) A special purpose district or internal district may establish recycling or waste disposal programs that are consistent with the purpose for which the district is created. (b) A special purpose district or internal district shall undertake programs to ensure that waste generated by the district's activities is properly disposed of and, to the extent practicable, recycled or reused. SECTION 6. EFFECTIVE DATE. This Act takes effect September 1, 2009.