Texas 2009 - 81st Regular

Texas House Bill HB4782 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	81R28562 SJM-F
2	2	By: Eissler H.B. No. 4782
3	3	Substitute the following for H.B. No. 4782:
4	4	By: Frost C.S.H.B. No. 4782
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the administration, powers and duties, operations, and
10	10	financing of The Woodlands Township.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1(c), Chapter 289, Acts of the 73rd
13	13	Legislature, Regular Session, 1993, is amended to read as follows:
14	14	(c) The name of the district may be changed by resolution of
15	15	the board of directors of the district at any time. A reference in
16	16	this Act to the district means the name of the district as changed.
17	17	SECTION 2. Section 7, Chapter 289, Acts of the 73rd
18	18	Legislature, Regular Session, 1993, is amended by adding
19	19	Subsections (s), (t), (u), (v), (w), (x), (y), (z), (aa), (bb),
20	20	(cc), and (dd) to read as follows:
21	21	(s) The district may make, enter into, and enforce tax
22	22	abatement agreements in the same manner as other taxing units under
23	23	Chapter 312, Tax Code. Before an ad valorem tax is first imposed,
24	24	the district may enter into a tax abatement agreement with the owner
25	25	of property subject to a tax abatement agreement with a county in
26	26	which any part of the district is located. The agreement may provide
27	27	for the parties to be bound by the same terms as the county
28	28	agreement for the remaining term of the county agreement and
29	29	provide for the same share of the property exempted by the county
30	30	agreement to be exempted from taxation by the district in each
31	31	remaining year of the county agreement.
32	32	(t) In order to promote business retention, sustain
33	33	employment, and prevent substandard and blighted housing
34	34	conditions, the district may:
35	35	(1) except as otherwise provided by this subsection
36	36	and in the same manner as a qualified association, assume, accept an
37	37	assignment of, succeed to, or contract to undertake, exercise, or
38	38	perform:
39	39	(A) all or part of the rights, powers,
40	40	privileges, duties, responsibilities, assets, liabilities, and
41	41	obligations of a qualified association under community covenants;
42	42	(B) any contracts, agreements, leases,
43	43	commitments, loans, pledges, instruments of indebtedness, or other
44	44	undertakings with any person, regardless of whether the person is a
45	45	qualified association, in the exercise of the rights, powers,
46	46	privileges, duties, or responsibilities described by Paragraph
47	47	(A);
48	48	(C) the administration, enforcement, amendment,
49	49	supplementation, repeal, revocation, or rescission of a community
50	50	covenant as provided by the covenant; or
51	51	(D) the functions, duties, and responsibilities
52	52	of the board of directors of a qualified association, without the
53	53	necessity of electing or appointing members of the board of
54	54	directors of the qualified association;
55	55	(2) administer and perform procedures established in a
56	56	community covenant or a related agreement for the selection or
57	57	appointment of members or officers to committees, village
58	58	association governing bodies, or similar positions;
59	59	(3) arrange or contract with one or more
60	60	municipalities, political subdivisions, or nonprofit organizations
61	61	for the provision of services and facilities to all or part of the
62	62	territory in or adjacent to the district that are substantially
63	63	equivalent to the services or facilities provided by the district
64	64	or a qualified association in the district, provided that the
65	65	district may not transfer, assign, or abrogate responsibility for
66	66	the administration or enforcement of any land use restrictions or
67	67	negative covenants included in a community covenant that apply to
68	68	land in or adjacent to the district;
69	69	(4) own, acquire, construct, improve, repair,
70	70	rehabilitate, operate, maintain, lease, purchase, sell, dispose
71	71	of, encumber, abandon, or remove:
72	72	(A) any buildings, improvements, or facilities;
73	73	or
74	74	(B) any real, personal, or mixed property; and
75	75	(5) assess, charge, collect, pledge, encumber, and
76	76	apply any fees, rents, charges, or proceeds received for the use,
77	77	enjoyment, or disposition of a building, improvement, facility, or
78	78	property or for a service or facility.
79	79	(u) The actions and proceedings of the district and the
80	80	board of directors under Subsection (t) of this section are
81	81	governmental functions. Title 11, Property Code, does not apply to
82	82	the district. This Act may not be construed as constituting a
83	83	waiver of governmental or sovereign immunity from suit, liability,
84	84	or judgment.
85	85	(v) In this section:
86	86	(1) "Qualified association" means a nonprofit
87	87	property owners' association created and operated by a planned
88	88	community, as that term is defined by Section 43.0754, Local
89	89	Government Code.
90	90	(2) "Community covenant" means recorded land use
91	91	restrictions and covenants applicable to a planned community, as
92	92	that term is defined by Section 43.0754, Local Government Code.
93	93	(w) The district may develop and maintain and may sell,
94	94	lease, encumber, abandon, or dispose of recreational facilities,
95	95	including an open space and a related street, sidewalk, path,
96	96	building, structure, improvement, or appurtenance. Subchapter N,
97	97	Chapter 49, Water Code, does not apply to the district, except that
98	98	the terms "develop and maintain" and "recreational facilities" have
99	99	the meanings assigned by Section 49.462 of that chapter.
100	100	(x) The district is a special district but is treated as a
101	101	conservation and reclamation district that is entitled to
102	102	participate in the election of the board of directors of an
103	103	appraisal district for the purposes of Section 6.03, Tax Code.
104	104	(y) The district and a county tax assessor-collector may
105	105	contract for the collection of the delinquent assessments of a
106	106	qualified association for which the district has been assigned and
107	107	has assumed the duties, functions, and responsibilities. The
108	108	assessments may be collected through the use of the county's tax
109	109	billing and collection procedures or other mutually agreeable
110	110	means. A suit for collection of delinquent assessments under this
111	111	subsection:
112	112	(1) has the same priority and preference as a
113	113	delinquent tax collection suit; and
114	114	(2) shall be conducted in the same manner as a
115	115	delinquent tax collection suit.
116	116	(z) The district has the same rights and powers as a
117	117	municipality annexing territory in a district that provides
118	118	emergency services to cause all or part of the territory of the
119	119	district to be removed from the district providing emergency
120	120	services.
121	121	(aa) The board of directors by resolution may cause district
122	122	territory described in the resolution to be removed from the
123	123	boundaries and taxing jurisdiction of a transit authority whose
124	124	territory overlaps the district's territory if the district and a
125	125	municipality enter into a regional participation agreement under
126	126	Section 43.0754, Local Government Code, that requires the district
127	127	to deposit money into a regional participation fund for the
128	128	purpose, among others, of funding mobility projects of mutual
129	129	benefit to the district and municipality. A removal of territory
130	130	under this subsection takes effect on the date the board provides a
131	131	certified copy of the resolution to:
132	132	(1) the transit authority; and
133	133	(2) the comptroller.
134	134	(bb) Subject to approval by the county, the district by
135	135	rule, order, or resolution may, in the same manner provided for a
136	136	municipality by Chapter 393, Transportation Code, and Section
137	137	216.901, Local Government Code:
138	138	(1) prohibit, regulate, or authorize placement of
139	139	signs on the right-of-way of a road or highway maintained by the
140	140	county within the district, other than standard traffic control or
141	141	directional signs; or
142	142	(2) administer a kiosk program as provided by Section
143	143	393.0026, Transportation Code.
144	144	(cc) The district may enter into an interlocal agreement
145	145	with the county under which the county grants the district
146	146	permission to prohibit, regulate, or authorize placement of a
147	147	specific type or class of sign on the right-of-way of a highway that
148	148	is maintained by the county and located within the district.
149	149	(dd) Subsections (bb) and (cc) do not apply to a sign
150	150	regulated by another municipality, if all or part of the territory
151	151	of the district is incorporated, that is located within the
152	152	exclusive extraterritorial jurisdiction of that other
153	153	municipality.
154	154	SECTION 3. Section 7F, Chapter 289, Acts of the 73rd
155	155	Legislature, Regular Session, 1993, is amended by amending
156	156	Subsections (a) and (c) and adding Subsections (d), (e), (f), and
157	157	(g) to read as follows:
158	158	(a) In this section:
159	159	(1) "Fire-fighting services" has the meaning assigned
160	160	by Section 49.351(k), Water Code.
161	161	(2) "Fire [, "fire] protection personnel" has the
162	162	meaning assigned by Section 419.021, Government Code, except that a
163	163	reference to a fire department includes a nonprofit corporation
164	164	employing fire protection personnel and providing fire-fighting
165	165	services that is owned, operated, or controlled by the district.
166	166	(c) Before January 1, 2012 [2010], the district may not
167	167	directly employ any fire protection personnel but may own, operate,
168	168	or control a nonprofit corporation employing fire protection
169	169	personnel and providing fire-fighting services. This subsection
170	170	expires February [January] 1, 2012 [2010].
171	171	(d) Except as provided by Subsection (c), a district may:
172	172	(1) directly, or through a nonprofit corporation
173	173	created, funded, owned, operated, or controlled by the district,
174	174	establish, acquire, operate, and maintain a fire department to
175	175	perform fire-fighting services in or adjacent to the district; and
176	176	(2) issue public securities, including public
177	177	securities approved by district voters and payable wholly or partly
178	178	from ad valorem taxes, to finance the construction, acquisition,
179	179	improvement, renovation, repair, or rehabilitation of any related
180	180	buildings, facilities, interests in land, equipment, or supplies.
181	181	(e) Subchapter L, Chapter 49, Water Code, does not apply to
182	182	the district.
183	183	(f) Unless other law requires a prior election, the district
184	184	shall hold an election to determine whether the district shall
185	185	adopt the provisions of Chapter 174, Local Government Code, if the
186	186	district receives a timely petition signed by a majority of the fire
187	187	protection personnel of the fire department of the district or of
188	188	any nonprofit corporation owned, operated, or controlled by the
189	189	district. On receipt and verification of the petition, the
190	190	district shall hold the election on a uniform election date that
191	191	occurs not later than the date of the last authorized uniform
192	192	election date in 2011 and shall conduct the election in compliance
193	193	with applicable law and Chapter 174, Local Government Code. This
194	194	subsection expires January 1, 2012.
195	195	(g) If an election is called under Subsection (f) of this
196	196	section and a majority of the voters voting in the election approve
197	197	the adoption by the district of the provisions of Chapter 174, Local
198	198	Government Code, the provisions of that chapter shall be binding on
199	199	the district when the district, or any municipality or other form of
200	200	local government succeeding to the principal assets, functions, and
201	201	liabilities of the district, directly employs fire protection
202	202	personnel. The results of the election shall continue in effect
203	203	unless the adoption of Chapter 174, Local Government Code, is
204	204	repealed in the manner provided by that chapter. A collective
205	205	bargaining agreement made and entered into by the district under
206	206	Chapter 174, Local Government Code, shall be binding on a successor
207	207	municipality or local government.
208	208	SECTION 4. Chapter 289, Acts of the 73rd Legislature,
209	209	Regular Session, 1993, is amended by adding Sections 7H and 7I to
210	210	read as follows:
211	211	Sec. 7H. CREATION OF EMERGENCY SERVICES DISTRICT. (a)
212	212	Notwithstanding Chapter 775, Health and Safety Code, on receipt of
213	213	an ordinance or resolution adopted by a municipality adjacent to
214	214	the district requesting that action, the board, instead of the
215	215	commissioners court of the county, may conduct a public hearing on
216	216	the creation and establishment of an emergency services district to
217	217	be located:
218	218	(1) wholly in one county;
219	219	(2) wholly within the corporate limits or
220	220	extraterritorial jurisdiction of the requesting municipality; and
221	221	(3) outside the boundaries of any existing emergency
222	222	services district.
223	223	(b) The request from the municipality must include:
224	224	(1) the elements required to be included in a petition
225	225	for creation under Sections 775.013(a) and (a-1), Health and Safety
226	226	Code; and
227	227	(2) an agreement between the district and the
228	228	requesting municipality that the municipality will pay all costs of
229	229	the district related to the request.
230	230	(c) Not later than the 21st day before the date of the
231	231	hearing, the district shall publish at least once in a newspaper of
232	232	general circulation in the requesting municipality a notice of the
233	233	hearing containing the information required under Section
234	234	775.015(c), Health and Safety Code.
235	235	(d) The board shall conduct the hearing in the same manner
236	236	as provided for the commissioners court by Section 775.016, Health
237	237	and Safety Code. If after the hearing the board determines that
238	238	creation of the emergency services district is feasible and will
239	239	promote the public safety, welfare, health, and convenience of
240	240	persons residing in and adjacent to the proposed emergency services
241	241	district, the board, subject to Subsection (e) of this section,
242	242	shall grant the request and fix the boundaries of the emergency
243	243	services district.
244	244	(e) The requesting municipality may order an election to
245	245	confirm the creation of the emergency services district and to
246	246	authorize the imposition of a tax not to exceed the rate allowed by
247	247	Section 48-e, Article III, Texas Constitution. The emergency
248	248	services district is created and shall organize and operate under
249	249	Chapter 775, Health and Safety Code, if a majority of the voters
250	250	voting in the election approve the creation of the emergency
251	251	services district.
252	252	(f) The governing body of the requesting municipality shall
253	253	appoint the initial and successor emergency services commissioners
254	254	for the emergency services district in the same manner as a
255	255	commissioners court appoints emergency services commissioners
256	256	under Section 775.034, Health and Safety Code, except that:
257	257	(1) the governing body shall appoint only three
258	258	emergency services commissioners who shall serve as the governing
259	259	body of the emergency services district; and
260	260	(2) the emergency services commissioners shall serve
261	261	staggered two-year terms.
262	262	(g) To be eligible for appointment to the board of emergency
263	263	services commissioners, a person must:
264	264	(1) be at least 18 years of age;
265	265	(2) be a citizen of this state; and
266	266	(3) reside within the requesting municipality or the
267	267	emergency services district.
268	268	(h) At least two of the emergency services commissioners
269	269	must reside in the emergency services district at all times.
270	270	(i) An emergency services commissioner is not entitled to
271	271	compensation or per diem allowances but is entitled to
272	272	reimbursement of reasonable expenses incurred in performing the
273	273	duties of an emergency services commissioner.
274	274	(j) A concurrence of two emergency services commissioners
275	275	is necessary in any matter relating to the business of the emergency
276	276	services district. The offices of secretary and treasurer of the
277	277	board of emergency services commissioners shall be combined, and an
278	278	assistant treasurer may not be elected.
279	279	(k) Section 775.076(a-1), Health and Safety Code, does not
280	280	apply to an emergency services district created under this section.
281	281	(l) The emergency services district may be dissolved and
282	282	abolished only on official action of the governing body of the
283	283	municipality and on assumption by the municipality of all of the
284	284	assets and liabilities of the emergency services district. The
285	285	municipality may dissolve and abolish the emergency services
286	286	district:
287	287	(1) by removing all territory from the emergency
288	288	services district; or
289	289	(2) after receiving a petition signed by not less than
290	290	10 percent of the registered voters in the emergency services
291	291	district requesting dissolution and abolition of the emergency
292	292	services district.
293	293	Sec. 7I. EVENT ADMISSIONS TAX. (a) In this section:
294	294	(1) "Cultural education" means the exhibition or
295	295	promotion of or education about the performing, dramatic, visual,
296	296	literary, or fine arts, including historical, geological,
297	297	archeological, or paleontological sciences, and history, natural
298	298	history, scientific, cultural, ethnic, or heritage education
299	299	meeting local community standards in the district.
300	300	(2) "Event" means any performance, exhibition,
301	301	showing, or similar presentation at a venue for which an admission
302	302	fee or charge is imposed by the venue user, including a cultural
303	303	education event.
304	304	(3) "Venue" means an indoor or outdoor theater, music,
305	305	exhibition, rehearsal, or concert hall, opera house, auditorium,
306	306	park, zoo, museum, aquarium, plaza, civic center, or similar
307	307	building or forum in the district, other than a motion picture
308	308	theater, regardless of whether the district owns, operates, leases,
309	309	finances, or uses the venue.
310	310	(4) "Venue user" means an owner, lessee, operator, or
311	311	other user of a venue that:
312	312	(A) is not a governmental entity; and
313	313	(B) presents more than four events in a calendar
314	314	year.
315	315	(b) The district by order may impose a tax on each ticket
316	316	sold as admission to an event held at a venue.
317	317	(c) The amount of the tax may be imposed at any uniform
318	318	percentage not to exceed five percent of the price of the ticket
319	319	sold as admission to an event held at a venue.
320	320	(d) The district by order may increase, repeal, or decrease
321	321	the rate of the tax imposed under this section.
322	322	(e) The district by order may require the venue user to
323	323	collect the tax for the benefit of the district.
324	324	(f) A venue user required to collect the tax under this
325	325	section shall add the tax to the admissions price, and the tax is a
326	326	part of the admissions price, is a debt owed to the venue user by the
327	327	person admitted, and is recoverable at law in the same manner as the
328	328	admissions price.
329	329	(g) The tax imposed by this section is not an occupation tax
330	330	imposed on the venue user.
331	331	(h) A tax imposed under this section or a change in a tax
332	332	rate takes effect on the date prescribed by the order imposing the
333	333	tax or changing the rate.
334	334	(i) A person required to collect a tax imposed under this
335	335	section shall report and remit the taxes to the district as provided
336	336	by order of the district.
337	337	(j) The district by order may prescribe penalties and
338	338	interest charges for failure to keep records required by the
339	339	district, to report when required, or to fully and timely collect or
340	340	remit the tax. The district may bring suit against a person who
341	341	fails to collect a tax under this section or to fully and timely
342	342	remit the tax to the district.
343	343	(k) The district by order may permit a person who is
344	344	required to collect a tax under this section to retain a percentage
345	345	of the amount collected and required to be reported as
346	346	reimbursement to the person for the costs of collecting the tax.
347	347	The district may provide that the person may retain the amount only
348	348	if the person pays the tax and files reports as required by the
349	349	district.
350	350	(l) The district and any venue user may enter into an
351	351	agreement for a term of not more than 20 years:
352	352	(1) providing for the payment or reimbursement, or the
353	353	reservation of tax proceeds for the payment or reimbursement, to
354	354	the venue user of all or any agreed portion of the venue user's
355	355	actual costs of operations, maintenance, management, financing,
356	356	funding development, capital costs, debt service, or other actual
357	357	costs of the production, promotion, or presentation of a cultural
358	358	education event at the venue; and
359	359	(2) containing any other terms, conditions, and
360	360	provisions as may be considered necessary and appropriate to
361	361	support cultural education in the district.
362	362	(m) The proceeds received by the district from the tax
363	363	authorized by this section may be used only to support cultural
364	364	education in the district.
365	365	(n) The district may continue to impose the tax authorized
366	366	by this section after any contractual obligations have been
367	367	fulfilled if the tax revenue is used to support cultural education.
368	368	(o) An agreement entered into in anticipation of this
369	369	section taking effect that otherwise meets the requirements of this
370	370	section is not invalid because it was authorized, executed, or
371	371	entered into before the effective date of this section.
372	372	SECTION 5. Section 8(j), Chapter 289, Acts of the 73rd
373	373	Legislature, Regular Session, 1993, is amended to read as follows:
374	374	(j) Except as provided by Subsection (e) of this section, a
375	375	majority of the total authorized number of [four] directors
376	376	constitutes [constitute] a quorum for the consideration of all
377	377	matters pertaining to the business of the district, and a
378	378	concurrence of a majority of a quorum of directors shall be required
379	379	for any official action of the district.
380	380	SECTION 6. Section 9, Chapter 289, Acts of the 73rd
381	381	Legislature, Regular Session, 1993, is amended by amending
382	382	Subsection (g) and adding Subsection (l) to read as follows:
383	383	(g) After passage of the propositions in the confirmation
384	384	election, as required by Subsection (e) of this section and Section
385	385	7-a of this Act:
386	386	(1) an election shall be called for the uniform
387	387	election date in May of the next even-numbered year for the election
388	388	of five directors at large. The three candidates receiving the
389	389	highest number of votes shall be elected for a term of three years,
390	390	and the two candidates receiving the next highest number of votes
391	391	shall be elected for a term of two years;
392	392	(2) an election shall be called for the uniform
393	393	election date in May of the next succeeding even-numbered year
394	394	after the election held under Subdivision (1) of this subsection,
395	395	for the election of four directors by position [at large]. Each of
396	396	the [The] four candidates [receiving the highest number of votes
397	397	shall be] elected shall serve for a term of two years; and
398	398	(3) an election shall be called annually thereafter
399	399	for the uniform election date in May of each year for the election
400	400	by position of either three or four directors, as appropriate, to
401	401	serve two-year terms.
402	402	(l) An election held on the proposition of incorporating all
403	403	or part of the territory of the district under Subsection (h)(2) may
404	404	be held regardless of population or area limits described by
405	405	Section 5.901, Local Government Code, or other law, if the area to
406	406	be incorporated has a population of 5,000 or more inhabitants
407	407	according to the most recent federal decennial census or other
408	408	credible population records.
409	409	SECTION 7. Chapter 289, Acts of the 73rd Legislature,
410	410	Regular Session, 1993, is amended by adding Section 11B-1 to read as
411	411	follows:
412	412	Sec. 11B-1. SUPPLEMENTAL HOTEL OCCUPANCY TAX. (a) In
413	413	addition to the tax authorized by Section 11A of this Act, but
414	414	subject to Subsection (c), the board by order may impose, repeal,
415	415	increase, or decrease a supplemental hotel occupancy tax in the
416	416	same manner as the tax authorized by Section 11A. The rate of the
417	417	supplemental tax may not exceed two percent of the price paid for a
418	418	room in a hotel.
419	419	(b) The district shall apply the proceeds from the
420	420	supplemental tax imposed under Subsection (a) solely for the
421	421	purposes described by Sections 352.101(a) and 352.1015, Tax Code,
422	422	provided that at least 75 percent of the proceeds from the
423	423	supplemental tax, as determined on an annual average basis, must be
424	424	used for the purpose of establishing, operating, and maintaining a
425	425	convention and visitors bureau within or adjacent to the district.
426	426	For purposes of this subsection, a reference in Section 352.101(a)
427	427	or 352.1015, Tax Code, to a county, county officer, or
428	428	commissioners court means the district, a district officer, or the
429	429	board, as appropriate.
430	430	(c) The board may not impose the supplemental tax authorized
431	431	by Subsection (a) before January 1, 2011. The board may impose the
432	432	tax at a rate not to exceed one percent until December 31, 2011. On
433	433	or after January 1, 2012, the board may impose the tax at a rate not
434	434	to exceed two percent.
435	435	SECTION 8. Section 11C, Chapter 289, Acts of the 73rd
436	436	Legislature, Regular Session, 1993, is amended by amending
437	437	Subsections (g), (k), and (p) and adding Subsections (g-1) and (s)
438	438	to read as follows:
439	439	(g) Members of the governing body shall be appointed for a
440	440	term of two years, except that:
441	441	(1) the appointment of the initial members of the
442	442	governing body may provide for some terms to be limited to one year
443	443	in order to achieve staggered terms of office; and
444	444	(2) the board by resolution may:
445	445	(A) extend the terms of office of members of the
446	446	governing body beyond two years to the extent necessary to
447	447	coordinate those terms with the next election of members of the
448	448	board of directors; or
449	449	(B) provide for one-year terms of office for
450	450	members of a subsequent governing body.
451	451	(g-1) The district by appointment shall fill a vacancy on
452	452	the governing body of the zone for the unexpired portion of the
453	453	term.
454	454	(k) A development zone created by the district under this
455	455	section is a body politic and corporate and a political subdivision
456	456	of the state, separate from the district. The district and the
457	457	development zone have the same power and authority to carry out this
458	458	section as Section 311.008, Tax Code, provides a municipality to
459	459	carry out Chapter 311, Tax Code. In addition to the powers granted
460	460	to the governing body by this section, the board by order may
461	461	delegate, subject in whole or in part to final approval by the
462	462	board, any powers and duties relating to the financing and
463	463	implementation of the project plan for the zone, including the
464	464	power and authority to:
465	465	(1) issue tax increment bonds or notes for and in the
466	466	name of the zone in the same manner as Section 311.015 [311.010],
467	467	Tax Code, provides for a municipality, except that tax increment
468	468	bonds or notes of the zone must mature in not more than 30 years, to
469	469	fund any project of the zone and pay any related bond issuance and
470	470	bond reserve costs or to refund any bonds, notes, contractual
471	471	obligations, commitments, or undertakings of the zone, including
472	472	the reimbursement to any person for project costs and related
473	473	interest for which the zone would have been authorized to issue its
474	474	bonds or notes;
475	475	(2) pledge irrevocably all or part of the tax
476	476	increment fund for the zone, as Section 311.015, Tax Code, provides
477	477	for a municipality; and
478	478	(3) impose, assess, and collect ad valorem taxes,
479	479	assessments, and other charges in the zone, as Chapter 375, Local
480	480	Government Code, provides for municipal management districts, as
481	481	well as the incremental sales and use tax authorized by this
482	482	section, if the ad valorem tax or incremental sales and use tax has
483	483	been approved by the qualified voters of the district at an election
484	484	called and held for that purpose.
485	485	(p) Sections 311.002 and 311.014 through 311.017, Tax Code,
486	486	apply to the district, except that for purposes of this subsection:
487	487	(1) a reference in those sections to a municipality
488	488	means the district and the development zone;
489	489	(2) a reference in those sections to an ordinance
490	490	means an order;
491	491	(3) a reference in those sections to a reinvestment
492	492	zone means a development zone;
493	493	(4) a reference in those sections to an agreement made
494	494	under Subsection (b), Section 311.010, Tax Code, means an agreement
495	495	made under Subsection (l) of this section;
496	496	(5) "development" means initial development;
497	497	(6) "redevelopment" means substantial redevelopment;
498	498	[and]
499	499	(7) Section 311.016, Tax Code, applies only if ad
500	500	valorem taxes are used, in whole or in part, in payment of project
501	501	costs of a development zone; and
502	502	(8) a development zone created without a duration or
503	503	date of termination may be dissolved by a two-thirds vote of the
504	504	board of directors of the district or of the governing body of a
505	505	municipality or other form of local government succeeding to the
506	506	principal assets, powers, functions, and liabilities of the
507	507	district, but only if:
508	508	(A) the development zone has no outstanding
509	509	indebtedness or other obligations; or
510	510	(B) the assets, powers, functions, and
511	511	liabilities, and any outstanding indebtedness or obligations of the
512	512	development zone are expressly assumed by the district or the
513	513	succeeding municipality or local government.
514	514	(s) The district or a municipality or other local government
515	515	succeeding to the principal assets, powers, functions, and
516	516	liabilities of the district may assume, exercise, perform, and
517	517	discharge the assets, powers, functions, and liabilities of a
518	518	development zone in the same manner, to the same extent, and for the
519	519	same purposes as a development zone created under this section.
520	520	SECTION 9. The heading to Section 12A, Chapter 289, Acts of
521	521	the 73rd Legislature, Regular Session, 1993, is amended to read as
522	522	follows:
523	523	Sec. 12A. PUBLIC SECURITIES [BONDS].
524	524	SECTION 10. Section 12A, Chapter 289, Acts of the 73rd
525	525	Legislature, Regular Session, 1993, is amended by amending
526	526	Subsections (a) and (c) and adding Subsections (d), (e), and (f) to
527	527	read as follows:
528	528	(a) The board may issue, sell, and deliver the public
529	529	securities [bonds] of the district in the manner provided by this
530	530	section or other applicable law, including Chapter 1371, Government
531	531	Code, and Subchapter J, Chapter 375, Local Government Code, for any
532	532	district purpose or to finance or pay for any district facilities,
533	533	programs, or improvement projects [project], including for the
534	534	purpose of making or providing for payment of any amounts due or to
535	535	become due from the district under a regional participation
536	536	agreement authorized by this Act or other law, to refund or
537	537	refinance any public security or other contract, agreement,
538	538	commitment, or undertaking of the district in payment of which the
539	539	district could have issued its public securities, or to fund or pay
540	540	for any reserve fund or issuance expenses related to the public
541	541	securities. The public securities [which] shall be deemed to be in
542	542	furtherance of a program authorized pursuant to Section 52-a,
543	543	Article III, Texas Constitution[, in the manner provided by
544	544	Subchapter J, Chapter 375, Local Government Code]. Sections
545	545	375.207 and 375.208, Local Government Code, do not apply to public
546	546	securities [bonds] issued by the district under this Act.
547	547	(c) In addition to the sources of money described by
548	548	Subchapter J, Chapter 375, Local Government Code, the public
549	549	securities [bonds] of the district may be secured and made payable,
550	550	wholly or partly, by a pledge of any part of the net proceeds the
551	551	district receives from:
552	552	(1) a specified portion, but not more than one-half of
553	553	one percent, of the sales and use tax authorized by Section 11 of
554	554	this Act;
555	555	(2) the hotel occupancy tax authorized by Section 11A
556	556	of this Act;
557	557	(3) an ad valorem tax approved by the voters of the
558	558	district at an election called for that purpose;
559	559	(4) any revenues, receipts, fees, charges, income,
560	560	funds, or proceeds received or to be received by the district from
561	561	refunding public securities, contracts, agreements, or other
562	562	[lawful] sources, including a contract with a development zone to
563	563	facilitate an improvement project or project plan of the district
564	564	or the development zone; or
565	565	(5) [any other revenues, income, or proceeds that in
566	566	accordance with this Act or other law may be pledged or used for
567	567	purposes described by Subdivision (4) of this subsection; or
568	568	[(6)] any combination of revenues, taxes, or proceeds
569	569	from one or more of the sources described by Subdivisions (1)-(4)
570	570	[(1)-(5)] of this subsection.
571	571	(d) The board of directors or an officer or employee of the
572	572	district to whom the board delegates authority may sell a district
573	573	public security at a public or private sale in the form, at the
574	574	price, on the terms and conditions, at the interest rate or rates,
575	575	whether fixed, variable, floating, adjustable, or otherwise, as the
576	576	board determines appropriate. The net effective interest rate of
577	577	the public securities under this section may not exceed the maximum
578	578	rate allowed by law.
579	579	(e) The board may secure a district public security with a
580	580	security agreement, credit agreement, or both, with the security
581	581	interest or interests, other than a mortgage interest in real
582	582	property, and with the parity or priority of pledge and lien as the
583	583	board determines appropriate.
584	584	(f) In this section:
585	585	(1) "Public security" has the meaning assigned by
586	586	Section 1201.002, Government Code.
587	587	(2) "Credit agreement," "security agreement," and
588	588	"security interest" have the meanings assigned by Section 1208.001,
589	589	Government Code.
590	590	SECTION 11. (a) The legislature ratifies and confirms all
591	591	governmental acts and proceedings of The Woodlands Township and its
592	592	board and of The Woodlands Township Economic Development Zone and
593	593	its governing body before the effective date of this Act, in:
594	594	(1) calling, holding, conducting, and declaring the
595	595	results of the confirmation and tax election held in the district on
596	596	November 6, 2007;
597	597	(2) conditionally enlarging the boundaries and
598	598	increasing the number of eligible voters of the district for
599	599	conducting the election described by Subdivision (1);
600	600	(3) changing the name of the district to The Woodlands
601	601	Township;
602	602	(4) describing the boundaries of the district for any
603	603	purpose, including the election described by Subdivision (1);
604	604	(5) creating, establishing, organizing, and
605	605	describing the boundaries of The Woodlands Township Economic
606	606	Development Zone;
607	607	(6) dissolving, abolishing, and transferring the
608	608	funds, assets, liabilities, and obligations of all existing
609	609	economic development zones overlapped by The Woodlands Township
610	610	Economic Development Zone;
611	611	(7) imposing and collecting an incremental sales and
612	612	use tax by The Woodlands Township Economic Development Zone; and
613	613	(8) conditionally excluding territory from the
614	614	boundaries of The Woodlands Township Economic Development Zone and
615	615	reserving the right to repeal or rescind the exclusion.
616	616	(b) Subsection (a) does not apply to a matter that on the
617	617	effective date of this Act:
618	618	(1) is involved in litigation, if the litigation
619	619	ultimately results in the matter being held invalid by a final court
620	620	judgment; or
621	621	(2) has been held invalid by a final court judgment.
622	622	SECTION 12. The provisions of this Act are severable. If any
623	623	word, phrase, clause, sentence, section, provision, or part of this
624	624	Act is held invalid or unconstitutional, it shall not affect the
625	625	validity of the remaining portions, and it is declared to be the
626	626	legislative intent that this Act would have been passed as to the
627	627	remaining portions regardless of the invalidity of any part.
628	628	SECTION 13. (a) The legislature finds that the powers,
629	629	authority, and functions of the district authorized by this Act are
630	630	essential and beneficial to the district and to the state as a whole
631	631	as a program for promoting, facilitating, and accomplishing the
632	632	public purposes of Section 52-a, Article III, Texas Constitution,
633	633	by:
634	634	(1) promoting, sustaining, and advancing employment
635	635	and economic diversification and development in the state;
636	636	(2) sustaining and stimulating business in the state;
637	637	(3) conserving and sustaining property values and
638	638	living conditions in the state;
639	639	(4) promoting traffic circulation and public safety in
640	640	the state;
641	641	(5) promoting the development of parks, recreational
642	642	facilities, and cultural education in the state; and
643	643	(6) serving other purposes beneficial to the state.
644	644	(b) The legal notice of the intention to introduce this Act,
645	645	setting forth the general substance of this Act, has been published
646	646	as provided by law, and the notice and a copy of this Act have been
647	647	furnished to all persons, agencies, officials, or entities to which
648	648	they are required to be furnished under Section 59, Article XVI,
649	649	Texas Constitution, and Chapter 313, Government Code.
650	650	(c) The governor, one of the required recipients, has
651	651	submitted the notice and Act to the Texas Commission on
652	652	Environmental Quality.
653	653	(d) The Texas Commission on Environmental Quality has filed
654	654	its recommendations relating to this Act with the governor,
655	655	lieutenant governor, and speaker of the house of representatives
656	656	within the required time.
657	657	(e) All requirements of the constitution and laws of this
658	658	state and the rules and procedures of the legislature with respect
659	659	to the notice, introduction, and passage of this Act have been
660	660	fulfilled and accomplished.
661	661	SECTION 14. This Act takes effect immediately if it
662	662	receives a vote of two-thirds of all the members elected to each
663	663	house, as provided by Section 39, Article III, Texas Constitution.
664	664	If this Act does not receive the vote necessary for immediate
665	665	effect, this Act takes effect September 1, 2009.