Texas 2009 81st Regular

Texas House Bill HB4782 House Committee Report / Bill

Filed 02/01/2025

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                    81R28562 SJM-F
 By: Eissler H.B. No. 4782
 Substitute the following for H.B. No. 4782:
 By: Frost C.S.H.B. No. 4782


 A BILL TO BE ENTITLED
 AN ACT
 relating to the administration, powers and duties, operations, and
 financing of The Woodlands Township.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1. Section 1(c), Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended to read as follows:
 (c) The name of the district may be changed by resolution of
 the board of directors of the district at any time. A reference in
 this Act to the district means the name of the district as changed.
 SECTION 2. Section 7, Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended by adding
 Subsections (s), (t), (u), (v), (w), (x), (y), (z), (aa), (bb),
 (cc), and (dd) to read as follows:
 (s)  The district may make, enter into, and enforce tax
 abatement agreements in the same manner as other taxing units under
 Chapter 312, Tax Code. Before an ad valorem tax is first imposed,
 the district may enter into a tax abatement agreement with the owner
 of property subject to a tax abatement agreement with a county in
 which any part of the district is located. The agreement may provide
 for the parties to be bound by the same terms as the county
 agreement for the remaining term of the county agreement and
 provide for the same share of the property exempted by the county
 agreement to be exempted from taxation by the district in each
 remaining year of the county agreement.
 (t)  In order to promote business retention, sustain
 employment, and prevent substandard and blighted housing
 conditions, the district may:
 (1)  except as otherwise provided by this subsection
 and in the same manner as a qualified association, assume, accept an
 assignment of, succeed to, or contract to undertake, exercise, or
 perform:
 (A)  all or part of the rights, powers,
 privileges, duties, responsibilities, assets, liabilities, and
 obligations of a qualified association under community covenants;
 (B)  any contracts, agreements, leases,
 commitments, loans, pledges, instruments of indebtedness, or other
 undertakings with any person, regardless of whether the person is a
 qualified association, in the exercise of the rights, powers,
 privileges, duties, or responsibilities described by Paragraph
 (A);
 (C)  the administration, enforcement, amendment,
 supplementation, repeal, revocation, or rescission of a community
 covenant as provided by the covenant; or
 (D)  the functions, duties, and responsibilities
 of the board of directors of a qualified association, without the
 necessity of electing or appointing members of the board of
 directors of the qualified association;
 (2)  administer and perform procedures established in a
 community covenant or a related agreement for the selection or
 appointment of members or officers to committees, village
 association governing bodies, or similar positions;
 (3)  arrange or contract with one or more
 municipalities, political subdivisions, or nonprofit organizations
 for the provision of services and facilities to all or part of the
 territory in or adjacent to the district that are substantially
 equivalent to the services or facilities provided by the district
 or a qualified association in the district, provided that the
 district may not transfer, assign, or abrogate responsibility for
 the administration or enforcement of any land use restrictions or
 negative covenants included in a community covenant that apply to
 land in or adjacent to the district;
 (4)  own, acquire, construct, improve, repair,
 rehabilitate, operate, maintain, lease, purchase, sell, dispose
 of, encumber, abandon, or remove:
 (A)  any buildings, improvements, or facilities;
 or
 (B) any real, personal, or mixed property; and
 (5)  assess, charge, collect, pledge, encumber, and
 apply any fees, rents, charges, or proceeds received for the use,
 enjoyment, or disposition of a building, improvement, facility, or
 property or for a service or facility.
 (u)  The actions and proceedings of the district and the
 board of directors under Subsection (t) of this section are
 governmental functions.  Title 11, Property Code, does not apply to
 the district. This Act may not be construed as constituting a
 waiver of governmental or sovereign immunity from suit, liability,
 or judgment.
 (v) In this section:
 (1)  "Qualified association" means a nonprofit
 property owners' association created and operated by a planned
 community, as that term is defined by Section 43.0754, Local
 Government Code.
 (2)  "Community covenant" means recorded land use
 restrictions and covenants applicable to a planned community, as
 that term is defined by Section 43.0754, Local Government Code.
 (w)  The district may develop and maintain and may sell,
 lease, encumber, abandon, or dispose of recreational facilities,
 including an open space and a related street, sidewalk, path,
 building, structure, improvement, or appurtenance. Subchapter N,
 Chapter 49, Water Code, does not apply to the district, except that
 the terms "develop and maintain" and "recreational facilities" have
 the meanings assigned by Section 49.462 of that chapter.
 (x)  The district is a special district but is treated as a
 conservation and reclamation district that is entitled to
 participate in the election of the board of directors of an
 appraisal district for the purposes of Section 6.03, Tax Code.
 (y)  The district and a county tax assessor-collector may
 contract for the collection of the delinquent assessments of a
 qualified association for which the district has been assigned and
 has assumed the duties, functions, and responsibilities.  The
 assessments may be collected through the use of the county's tax
 billing and collection procedures or other mutually agreeable
 means. A suit for collection of delinquent assessments under this
 subsection:
 (1)  has the same priority and preference as a
 delinquent tax collection suit; and
 (2)  shall be conducted in the same manner as a
 delinquent tax collection suit.
 (z)  The district has the same rights and powers as a
 municipality annexing territory in a district that provides
 emergency services to cause all or part of the territory of the
 district to be removed from the district providing emergency
 services.
 (aa)  The board of directors by resolution may cause district
 territory described in the resolution to be removed from the
 boundaries and taxing jurisdiction of a transit authority whose
 territory overlaps the district's territory if the district and a
 municipality enter into a regional participation agreement under
 Section 43.0754, Local Government Code, that requires the district
 to deposit money into a regional participation fund for the
 purpose, among others, of funding mobility projects of mutual
 benefit to the district and municipality.  A removal of territory
 under this subsection takes effect on the date the board provides a
 certified copy of the resolution to:
 (1) the transit authority; and
 (2) the comptroller.
 (bb)  Subject to approval by the county, the district by
 rule, order, or resolution may, in the same manner provided for a
 municipality by Chapter 393, Transportation Code, and Section
 216.901, Local Government Code:
 (1)  prohibit, regulate, or authorize placement of
 signs on the right-of-way of a road or highway maintained by the
 county within the district, other than standard traffic control or
 directional signs; or
 (2)  administer a kiosk program as provided by Section
 393.0026, Transportation Code.
 (cc)  The district may enter into an interlocal agreement
 with the county under which the county grants the district
 permission to prohibit, regulate, or authorize placement of a
 specific type or class of sign on the right-of-way of a highway that
 is maintained by the county and located within the district.
 (dd) Subsections (bb) and (cc) do not apply to a sign
 regulated by another municipality, if all or part of the territory
 of the district is incorporated, that is located within the
 exclusive extraterritorial jurisdiction of that other
 municipality.
 SECTION 3. Section 7F, Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended by amending
 Subsections (a) and (c) and adding Subsections (d), (e), (f), and
 (g) to read as follows:
 (a) In this section:
 (1)  "Fire-fighting services" has the meaning assigned
 by Section 49.351(k), Water Code.
 (2) "Fire [, "fire] protection personnel" has the
 meaning assigned by Section 419.021, Government Code, except that a
 reference to a fire department includes a nonprofit corporation
 employing fire protection personnel and providing fire-fighting
 services that is owned, operated, or controlled by the district.
 (c) Before January 1, 2012 [2010], the district may not
 directly employ any fire protection personnel but may own, operate,
 or control a nonprofit corporation employing fire protection
 personnel and providing fire-fighting services. This subsection
 expires February [January] 1, 2012 [2010].
 (d) Except as provided by Subsection (c), a district may:
 (1)  directly, or through a nonprofit corporation
 created, funded, owned, operated, or controlled by the district,
 establish, acquire, operate, and maintain a fire department to
 perform fire-fighting services in or adjacent to the district; and
 (2)  issue public securities, including public
 securities approved by district voters and payable wholly or partly
 from ad valorem taxes, to finance the construction, acquisition,
 improvement, renovation, repair, or rehabilitation of any related
 buildings, facilities, interests in land, equipment, or supplies.
 (e)  Subchapter L, Chapter 49, Water Code, does not apply to
 the district.
 (f)  Unless other law requires a prior election, the district
 shall hold an election to determine whether the district shall
 adopt the provisions of Chapter 174, Local Government Code, if the
 district receives a timely petition signed by a majority of the fire
 protection personnel of the fire department of the district or of
 any nonprofit corporation owned, operated, or controlled by the
 district. On receipt and verification of the petition, the
 district shall hold the election on a uniform election date that
 occurs not later than the date of the last authorized uniform
 election date in 2011 and shall conduct the election in compliance
 with applicable law and Chapter 174, Local Government Code. This
 subsection expires January 1, 2012.
 (g)  If an election is called under Subsection (f) of this
 section and a majority of the voters voting in the election approve
 the adoption by the district of the provisions of Chapter 174, Local
 Government Code, the provisions of that chapter shall be binding on
 the district when the district, or any municipality or other form of
 local government succeeding to the principal assets, functions, and
 liabilities of the district, directly employs fire protection
 personnel. The results of the election shall continue in effect
 unless the adoption of Chapter 174, Local Government Code, is
 repealed in the manner provided by that chapter. A collective
 bargaining agreement made and entered into by the district under
 Chapter 174, Local Government Code, shall be binding on a successor
 municipality or local government.
 SECTION 4. Chapter 289, Acts of the 73rd Legislature,
 Regular Session, 1993, is amended by adding Sections 7H and 7I to
 read as follows:
 Sec. 7H.  CREATION OF EMERGENCY SERVICES DISTRICT. (a)
 Notwithstanding Chapter 775, Health and Safety Code, on receipt of
 an ordinance or resolution adopted by a municipality adjacent to
 the district requesting that action, the board, instead of the
 commissioners court of the county, may conduct a public hearing on
 the creation and establishment of an emergency services district to
 be located:
 (1) wholly in one county;
 (2)  wholly within the corporate limits or
 extraterritorial jurisdiction of the requesting municipality; and
 (3)  outside the boundaries of any existing emergency
 services district.
 (b) The request from the municipality must include:
 (1)  the elements required to be included in a petition
 for creation under Sections 775.013(a) and (a-1), Health and Safety
 Code; and
 (2)  an agreement between the district and the
 requesting municipality that the municipality will pay all costs of
 the district related to the request.
 (c)  Not later than the 21st day before the date of the
 hearing, the district shall publish at least once in a newspaper of
 general circulation in the requesting municipality a notice of the
 hearing containing the information required under Section
 775.015(c), Health and Safety Code.
 (d)  The board shall conduct the hearing in the same manner
 as provided for the commissioners court by Section 775.016, Health
 and Safety Code. If after the hearing the board determines that
 creation of the emergency services district is feasible and will
 promote the public safety, welfare, health, and convenience of
 persons residing in and adjacent to the proposed emergency services
 district, the board, subject to Subsection (e) of this section,
 shall grant the request and fix the boundaries of the emergency
 services district.
 (e)  The requesting municipality may order an election to
 confirm the creation of the emergency services district and to
 authorize the imposition of a tax not to exceed the rate allowed by
 Section 48-e, Article III, Texas Constitution. The emergency
 services district is created and shall organize and operate under
 Chapter 775, Health and Safety Code, if a majority of the voters
 voting in the election approve the creation of the emergency
 services district.
 (f)  The governing body of the requesting municipality shall
 appoint the initial and successor emergency services commissioners
 for the emergency services district in the same manner as a
 commissioners court appoints emergency services commissioners
 under Section 775.034, Health and Safety Code, except that:
 (1)  the governing body shall appoint only three
 emergency services commissioners who shall serve as the governing
 body of the emergency services district; and
 (2)  the emergency services commissioners shall serve
 staggered two-year terms.
 (g)  To be eligible for appointment to the board of emergency
 services commissioners, a person must:
 (1) be at least 18 years of age;
 (2) be a citizen of this state; and
 (3)  reside within the requesting municipality or the
 emergency services district.
 (h)  At least two of the emergency services commissioners
 must reside in the emergency services district at all times.
 (i)  An emergency services commissioner is not entitled to
 compensation or per diem allowances but is entitled to
 reimbursement of reasonable expenses incurred in performing the
 duties of an emergency services commissioner.
 (j)  A concurrence of two emergency services commissioners
 is necessary in any matter relating to the business of the emergency
 services district. The offices of secretary and treasurer of the
 board of emergency services commissioners shall be combined, and an
 assistant treasurer may not be elected.
 (k)  Section 775.076(a-1), Health and Safety Code, does not
 apply to an emergency services district created under this section.
 (l)  The emergency services district may be dissolved and
 abolished only on official action of the governing body of the
 municipality and on assumption by the municipality of all of the
 assets and liabilities of the emergency services district.  The
 municipality may dissolve and abolish the emergency services
 district:
 (1)  by removing all territory from the emergency
 services district; or
 (2)  after receiving a petition signed by not less than
 10 percent of the registered voters in the emergency services
 district requesting dissolution and abolition of the emergency
 services district.
 Sec. 7I. EVENT ADMISSIONS TAX. (a) In this section:
 (1)  "Cultural education" means the exhibition or
 promotion of or education about the performing, dramatic, visual,
 literary, or fine arts, including historical, geological,
 archeological, or paleontological sciences, and history, natural
 history, scientific, cultural, ethnic, or heritage education
 meeting local community standards in the district.
 (2)  "Event" means any performance, exhibition,
 showing, or similar presentation at a venue for which an admission
 fee or charge is imposed by the venue user, including a cultural
 education event.
 (3)  "Venue" means an indoor or outdoor theater, music,
 exhibition, rehearsal, or concert hall, opera house, auditorium,
 park, zoo, museum, aquarium, plaza, civic center, or similar
 building or forum in the district, other than a motion picture
 theater, regardless of whether the district owns, operates, leases,
 finances, or uses the venue.
 (4)  "Venue user" means an owner, lessee, operator, or
 other user of a venue that:
 (A) is not a governmental entity; and
 (B)  presents more than four events in a calendar
 year.
 (b)  The district by order may impose a tax on each ticket
 sold as admission to an event held at a venue.
 (c)  The amount of the tax may be imposed at any uniform
 percentage not to exceed five percent of the price of the ticket
 sold as admission to an event held at a venue.
 (d)  The district by order may increase, repeal, or decrease
 the rate of the tax imposed under this section.
 (e)  The district by order may require the venue user to
 collect the tax for the benefit of the district.
 (f)  A venue user required to collect the tax under this
 section shall add the tax to the admissions price, and the tax is a
 part of the admissions price, is a debt owed to the venue user by the
 person admitted, and is recoverable at law in the same manner as the
 admissions price.
 (g)  The tax imposed by this section is not an occupation tax
 imposed on the venue user.
 (h)  A tax imposed under this section or a change in a tax
 rate takes effect on the date prescribed by the order imposing the
 tax or changing the rate.
 (i)  A person required to collect a tax imposed under this
 section shall report and remit the taxes to the district as provided
 by order of the district.
 (j)  The district by order may prescribe penalties and
 interest charges for failure to keep records required by the
 district, to report when required, or to fully and timely collect or
 remit the tax. The district may bring suit against a person who
 fails to collect a tax under this section or to fully and timely
 remit the tax to the district.
 (k)  The district by order may permit a person who is
 required to collect a tax under this section to retain a percentage
 of the amount collected and required to be reported as
 reimbursement to the person for the costs of collecting the tax.
 The district may provide that the person may retain the amount only
 if the person pays the tax and files reports as required by the
 district.
 (l)  The district and any venue user may enter into an
 agreement for a term of not more than 20 years:
 (1)  providing for the payment or reimbursement, or the
 reservation of tax proceeds for the payment or reimbursement, to
 the venue user of all or any agreed portion of the venue user's
 actual costs of operations, maintenance, management, financing,
 funding development, capital costs, debt service, or other actual
 costs of the production, promotion, or presentation of a cultural
 education event at the venue; and
 (2)  containing any other terms, conditions, and
 provisions as may be considered necessary and appropriate to
 support cultural education in the district.
 (m)  The proceeds received by the district from the tax
 authorized by this section may be used only to support cultural
 education in the district.
 (n)  The district may continue to impose the tax authorized
 by this section after any contractual obligations have been
 fulfilled if the tax revenue is used to support cultural education.
 (o)  An agreement entered into in anticipation of this
 section taking effect that otherwise meets the requirements of this
 section is not invalid because it was authorized, executed, or
 entered into before the effective date of this section.
 SECTION 5. Section 8(j), Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended to read as follows:
 (j) Except as provided by Subsection (e) of this section, a
 majority of the total authorized number of [four] directors
 constitutes [constitute] a quorum for the consideration of all
 matters pertaining to the business of the district, and a
 concurrence of a majority of a quorum of directors shall be required
 for any official action of the district.
 SECTION 6. Section 9, Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended by amending
 Subsection (g) and adding Subsection (l) to read as follows:
 (g) After passage of the propositions in the confirmation
 election, as required by Subsection (e) of this section and Section
 7-a of this Act:
 (1) an election shall be called for the uniform
 election date in May of the next even-numbered year for the election
 of five directors at large. The three candidates receiving the
 highest number of votes shall be elected for a term of three years,
 and the two candidates receiving the next highest number of votes
 shall be elected for a term of two years;
 (2) an election shall be called for the uniform
 election date in May of the next succeeding even-numbered year
 after the election held under Subdivision (1) of this subsection,
 for the election of four directors by position [at large]. Each of
 the [The] four candidates [receiving the highest number of votes
 shall be] elected shall serve for a term of two years; and
 (3) an election shall be called annually thereafter
 for the uniform election date in May of each year for the election
 by position of either three or four directors, as appropriate, to
 serve two-year terms.
 (l)  An election held on the proposition of incorporating all
 or part of the territory of the district under Subsection (h)(2) may
 be held regardless of population or area limits described by
 Section 5.901, Local Government Code, or other law, if the area to
 be incorporated has a population of 5,000 or more inhabitants
 according to the most recent federal decennial census or other
 credible population records.
 SECTION 7. Chapter 289, Acts of the 73rd Legislature,
 Regular Session, 1993, is amended by adding Section 11B-1 to read as
 follows:
 Sec. 11B-1.  SUPPLEMENTAL HOTEL OCCUPANCY TAX. (a)  In
 addition to the tax authorized by Section 11A of this Act, but
 subject to Subsection (c), the board by order may impose, repeal,
 increase, or decrease a supplemental hotel occupancy tax in the
 same manner as the tax authorized by Section 11A.  The rate of the
 supplemental tax may not exceed two percent of the price paid for a
 room in a hotel.
 (b)  The district shall apply the proceeds from the
 supplemental tax imposed under Subsection (a) solely for the
 purposes described by Sections 352.101(a) and 352.1015, Tax Code,
 provided that at least 75 percent of the proceeds from the
 supplemental tax, as determined on an annual average basis, must be
 used for the purpose of establishing, operating, and maintaining a
 convention and visitors bureau within or adjacent to the district.
 For purposes of this subsection, a reference in Section 352.101(a)
 or 352.1015, Tax Code, to a county, county officer, or
 commissioners court means the district, a district officer, or the
 board, as appropriate.
 (c)  The board may not impose the supplemental tax authorized
 by Subsection (a) before January 1, 2011.  The board may impose the
 tax at a rate not to exceed one percent until December 31, 2011.  On
 or after January 1, 2012, the board may impose the tax at a rate not
 to exceed two percent.
 SECTION 8. Section 11C, Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended by amending
 Subsections (g), (k), and (p) and adding Subsections (g-1) and (s)
 to read as follows:
 (g) Members of the governing body shall be appointed for a
 term of two years, except that:
 (1) the appointment of the initial members of the
 governing body may provide for some terms to be limited to one year
 in order to achieve staggered terms of office; and
 (2) the board by resolution may:
 (A)  extend the terms of office of members of the
 governing body beyond two years to the extent necessary to
 coordinate those terms with the next election of members of the
 board of directors; or
 (B)  provide for one-year terms of office for
 members of a subsequent governing body.
 (g-1) The district by appointment shall fill a vacancy on
 the governing body of the zone for the unexpired portion of the
 term.
 (k) A development zone created by the district under this
 section is a body politic and corporate and a political subdivision
 of the state, separate from the district. The district and the
 development zone have the same power and authority to carry out this
 section as Section 311.008, Tax Code, provides a municipality to
 carry out Chapter 311, Tax Code. In addition to the powers granted
 to the governing body by this section, the board by order may
 delegate, subject in whole or in part to final approval by the
 board, any powers and duties relating to the financing and
 implementation of the project plan for the zone, including the
 power and authority to:
 (1) issue tax increment bonds or notes for and in the
 name of the zone in the same manner as Section 311.015 [311.010],
 Tax Code, provides for a municipality, except that tax increment
 bonds or notes of the zone must mature in not more than 30 years, to
 fund any project of the zone and pay any related bond issuance and
 bond reserve costs or to refund any bonds, notes, contractual
 obligations, commitments, or undertakings of the zone, including
 the reimbursement to any person for project costs and related
 interest for which the zone would have been authorized to issue its
 bonds or notes;
 (2) pledge irrevocably all or part of the tax
 increment fund for the zone, as Section 311.015, Tax Code, provides
 for a municipality; and
 (3) impose, assess, and collect ad valorem taxes,
 assessments, and other charges in the zone, as Chapter 375, Local
 Government Code, provides for municipal management districts, as
 well as the incremental sales and use tax authorized by this
 section, if the ad valorem tax or incremental sales and use tax has
 been approved by the qualified voters of the district at an election
 called and held for that purpose.
 (p) Sections 311.002 and 311.014 through 311.017, Tax Code,
 apply to the district, except that for purposes of this subsection:
 (1) a reference in those sections to a municipality
 means the district and the development zone;
 (2) a reference in those sections to an ordinance
 means an order;
 (3) a reference in those sections to a reinvestment
 zone means a development zone;
 (4) a reference in those sections to an agreement made
 under Subsection (b), Section 311.010, Tax Code, means an agreement
 made under Subsection (l) of this section;
 (5) "development" means initial development;
 (6) "redevelopment" means substantial redevelopment;
 [and]
 (7) Section 311.016, Tax Code, applies only if ad
 valorem taxes are used, in whole or in part, in payment of project
 costs of a development zone; and
 (8)  a development zone created without a duration or
 date of termination may be dissolved by a two-thirds vote of the
 board of directors of the district or of the governing body of a
 municipality or other form of local government succeeding to the
 principal assets, powers, functions, and liabilities of the
 district, but only if:
 (A)  the development zone has no outstanding
 indebtedness or other obligations; or
 (B)  the assets, powers, functions, and
 liabilities, and any outstanding indebtedness or obligations of the
 development zone are expressly assumed by the district or the
 succeeding municipality or local government.
 (s)  The district or a municipality or other local government
 succeeding to the principal assets, powers, functions, and
 liabilities of the district may assume, exercise, perform, and
 discharge the assets, powers, functions, and liabilities of a
 development zone in the same manner, to the same extent, and for the
 same purposes as a development zone created under this section.
 SECTION 9. The heading to Section 12A, Chapter 289, Acts of
 the 73rd Legislature, Regular Session, 1993, is amended to read as
 follows:
 Sec. 12A. PUBLIC SECURITIES [BONDS].
 SECTION 10. Section 12A, Chapter 289, Acts of the 73rd
 Legislature, Regular Session, 1993, is amended by amending
 Subsections (a) and (c) and adding Subsections (d), (e), and (f) to
 read as follows:
 (a) The board may issue, sell, and deliver the public
 securities [bonds] of the district in the manner provided by this
 section or other applicable law, including Chapter 1371, Government
 Code, and Subchapter J, Chapter 375, Local Government Code, for any
 district purpose or to finance or pay for any district facilities,
 programs, or improvement projects [project], including for the
 purpose of making or providing for payment of any amounts due or to
 become due from the district under a regional participation
 agreement authorized by this Act or other law, to refund or
 refinance any public security or other contract, agreement,
 commitment, or undertaking of the district in payment of which the
 district could have issued its public securities, or to fund or pay
 for any reserve fund or issuance expenses related to the public
 securities.  The public securities [which] shall be deemed to be in
 furtherance of a program authorized pursuant to Section 52-a,
 Article III, Texas Constitution[, in the manner provided by
 Subchapter J, Chapter 375, Local Government Code]. Sections
 375.207 and 375.208, Local Government Code, do not apply to public
 securities [bonds] issued by the district under this Act.
 (c) In addition to the sources of money described by
 Subchapter J, Chapter 375, Local Government Code, the public
 securities [bonds] of the district may be secured and made payable,
 wholly or partly, by a pledge of any part of the net proceeds the
 district receives from:
 (1) a specified portion, but not more than one-half of
 one percent, of the sales and use tax authorized by Section 11 of
 this Act;
 (2) the hotel occupancy tax authorized by Section 11A
 of this Act;
 (3) an ad valorem tax approved by the voters of the
 district at an election called for that purpose;
 (4) any revenues, receipts, fees, charges, income,
 funds, or proceeds received or to be received by the district from
 refunding public securities, contracts, agreements, or other
 [lawful] sources, including a contract with a development zone to
 facilitate an improvement project or project plan of the district
 or the development zone; or
 (5) [any other revenues, income, or proceeds that in
 accordance with this Act or other law may be pledged or used for
 purposes described by Subdivision (4) of this subsection; or
 [(6)] any combination of revenues, taxes, or proceeds
 from one or more of the sources described by Subdivisions (1)-(4)
 [(1)-(5)] of this subsection.
 (d)  The board of directors or an officer or employee of the
 district to whom the board delegates authority may sell a district
 public security at a public or private sale in the form, at the
 price, on the terms and conditions, at the interest rate or rates,
 whether fixed, variable, floating, adjustable, or otherwise, as the
 board determines appropriate. The net effective interest rate of
 the public securities under this section may not exceed the maximum
 rate allowed by law.
 (e)  The board may secure a district public security with a
 security agreement, credit agreement, or both, with the security
 interest or interests, other than a mortgage interest in real
 property, and with the parity or priority of pledge and lien as the
 board determines appropriate.
 (f) In this section:
 (1)  "Public security" has the meaning assigned by
 Section 1201.002, Government Code.
 (2)  "Credit agreement," "security agreement," and
 "security interest" have the meanings assigned by Section 1208.001,
 Government Code.
 SECTION 11. (a) The legislature ratifies and confirms all
 governmental acts and proceedings of The Woodlands Township and its
 board and of The Woodlands Township Economic Development Zone and
 its governing body before the effective date of this Act, in:
 (1) calling, holding, conducting, and declaring the
 results of the confirmation and tax election held in the district on
 November 6, 2007;
 (2) conditionally enlarging the boundaries and
 increasing the number of eligible voters of the district for
 conducting the election described by Subdivision (1);
 (3) changing the name of the district to The Woodlands
 Township;
 (4) describing the boundaries of the district for any
 purpose, including the election described by Subdivision (1);
 (5) creating, establishing, organizing, and
 describing the boundaries of The Woodlands Township Economic
 Development Zone;
 (6) dissolving, abolishing, and transferring the
 funds, assets, liabilities, and obligations of all existing
 economic development zones overlapped by The Woodlands Township
 Economic Development Zone;
 (7) imposing and collecting an incremental sales and
 use tax by The Woodlands Township Economic Development Zone; and
 (8) conditionally excluding territory from the
 boundaries of The Woodlands Township Economic Development Zone and
 reserving the right to repeal or rescind the exclusion.
 (b) Subsection (a) does not apply to a 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 court
 judgment; or
 (2) has been held invalid by a final court judgment.
 SECTION 12. The provisions of this Act are severable. If any
 word, phrase, clause, sentence, section, provision, or part of this
 Act is held invalid or unconstitutional, it shall not affect the
 validity of the remaining portions, and it is declared to be the
 legislative intent that this Act would have been passed as to the
 remaining portions regardless of the invalidity of any part.
 SECTION 13. (a) The legislature finds that the powers,
 authority, and functions of the district authorized by this Act are
 essential and beneficial to the district and to the state as a whole
 as a program for promoting, facilitating, and accomplishing the
 public purposes of Section 52-a, Article III, Texas Constitution,
 by:
 (1) promoting, sustaining, and advancing employment
 and economic diversification and development in the state;
 (2) sustaining and stimulating business in the state;
 (3) conserving and sustaining property values and
 living conditions in the state;
 (4) promoting traffic circulation and public safety in
 the state;
 (5) promoting the development of parks, recreational
 facilities, and cultural education in the state; and
 (6) serving other purposes beneficial to the state.
 (b) 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.
 (c) The governor, one of the required recipients, has
 submitted the notice and Act to the Texas Commission on
 Environmental Quality.
 (d) 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.
 (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 14. 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.