81R14594 GCB-F
By: Allen H.B. No. 4771
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of Harris County Improvement
District No. 5; providing authority to impose a tax and issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 3834, Special District
Local Laws Code, is amended by adding Sections 3834.110, 3834.111,
and 3834.112 to read as follows:
Sec. 3834.110. ANNEXATION OR EXCLUSION OF LAND. (a) The
district may annex land as provided by Subchapter J, Chapter 49,
Water Code.
(b) The district may exclude land as provided by Subchapter
J, Chapter 49, Water Code. Section 375.044(b), Local Government
Code, does not apply to the district.
Sec. 3834.111. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
district may establish and provide for the administration of one or
more programs to promote state or local economic development and to
stimulate business and commercial activity in the district,
including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(b) The district has all of the powers of a municipality
under Chapter 380, Local Government Code.
Sec. 3834.112. TAX INCREMENT REINVESTMENT ZONES. (a) The
district is authorized to establish and implement tax increment
reinvestment zones as provided in Chapter 311, Tax Code, in the same
manner as a municipality.
(b) All or any part of the district may be included in a tax
increment reinvestment zone, regardless of the percentage of total
value the land represents to the district as a whole, or whether the
land is used for residential purposes.
(c) Section 311.006, Tax Code, does not apply to a
reinvestment zone that contains land within the district.
SECTION 2. Section 3834.156(b), Special District Local Laws
Code, is amended to read as follows:
(b) The district may borrow money according to terms and
conditions determined by the board. Section 375.205, Local
Government Code, does not apply to a loan, line of credit, or other
borrowing from a bank or financial institution secured by revenue
other than ad valorem taxes. [In exercising the district's power
to borrow, the 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.]
SECTION 3. Section 3834.159, Special District Local Laws
Code, is amended to read as follows:
Sec. 3834.159. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $50,000 [$25,000].
SECTION 4. Chapter 3834, Special District Local Laws Code,
is amended by adding Subchapter F to read as follows:
SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED
PROPERTY
Sec. 3834.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR
DESIGNATED PROPERTY. The district may define areas or designate
certain property of the district to pay for improvements,
facilities, or services that primarily benefit that area or
property and do not generally and directly benefit the district as a
whole.
Sec. 3834.252. PROCEDURE FOR ELECTION. (a) Before the
district may impose an ad valorem tax or issue bonds payable from ad
valorem taxes of the area defined or property designated under
Section 3834.251, the board must call and hold an election as
provided by Section 3834.157 only in the defined area or in the
boundaries of the designated property.
(b) The board may submit the proposition to the voters on
the same ballot to be used in another election.
Sec. 3834.253. DECLARING RESULT AND ISSUING ORDER. (a) If
a majority of the voters voting at the election approve the
proposition or propositions, the board shall declare the results
and by order shall establish the defined area and describe it by
metes and bounds or designate the specific property.
(b) A court may not review the board's order except on the
ground of fraud, palpable error, or arbitrary and confiscatory
abuse of discretion.
Sec. 3834.254. TAXES FOR SERVICES, IMPROVEMENTS, AND
FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
approval and adoption of the order described in Section 3834.253,
the district may apply separately, differently, equitably, and
specifically its taxing power and lien authority to the defined
area or designated property to provide money to construct,
administer, maintain, and operate services, improvements, and
facilities that primarily benefit the defined area or designated
property.
Sec. 3834.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES
FOR DEFINED AREA OR DESIGNATED PROPERTY. After the order under
Section 3834.253 is adopted, the district may issue bonds to
provide for any land, improvements, facilities, plants, equipment,
and appliances for the defined area or designated property.
SECTION 5. (a) The legislature validates and confirms all
acts and proceedings of the Board of Directors of Harris County
Improvement District No. 5 that were taken before the effective
date of this Act.
(b) Subsection (a) of this section does not apply to any
matter that on the effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(2) has been held invalid by a final judgment of a
court.
SECTION 6. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) The general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with.
(e) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act have been
fulfilled and accomplished.
SECTION 7. 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, 2009.