By: Uresti S.B. No. 2491 A BILL TO BE ENTITLED AN ACT relating to the powers and duties of certain public improvement districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter C, Chapter 372, Local Government Code, is amended by adding Section 372.1245 to read as follows: Sec. 372.1245. ANNEXATION OR EXCLUSION OF LAND. (a) A district may annex or exclude land from the district as provided by Subchapter J, Chapter 49, Water Code. (b) Before a district may adopt an order adding or excluding land, the district must obtain the consent of: (1) the county that created the district by a resolution of the county commissioners court; and (2) if Section 372.113(c) applies to the district, a municipality in which the district is located by a resolution adopted by the municipality's governing body. SECTION 2. Section 372.127(c), Local Government Code, is amended to read as follows: (c) A county must adopt an order providing whether a district has the authority to impose a hotel occupancy tax, sales and use tax, or ad valorem tax, and must provide the maximum rate at which the district may impose the tax. [A tax rate approved by the commissioners court and pledged to secure bonds, notes, grant agreements, or development agreements may not be reduced until the obligations of those instruments have been satisfied.] SECTION 3. Subchapter C, Chapter 382, Local Government Code, is amended by adding Section 382.113 to read as follows: Sec. 382.113. ANNEXATION OR EXCLUSION OF LAND. (a) A district may annex or exclude land from the district as provided by Subchapter J, Chapter 49, Water Code. (b) Before a district may adopt an order adding or excluding land, the district must obtain the consent of: (1) the county that created the district by a resolution of the county commissioners court; and (2) if Section 382.101(c) applies to the district, a municipality in which the district is located by a resolution adopted by the municipality's governing body. SECTION 4. Section 382.153(c), Local Government Code, is amended to read as follows: (c) A county must adopt an order providing whether a district has the authority to impose a hotel occupancy tax, sales and use tax, or ad valorem tax, and must provide the maximum rate at which the district may impose the tax. [A tax rate approved by the commissioners court and pledged to secure bonds, notes, grant agreements, or development agreements may not be reduced until the obligations of those instruments have been satisfied.] SECTION 5. (a) The legislature validates and confirms all governmental acts and proceedings before the effective date of this Act of a district created under Subchapter C, Chapter 372, Local Government Code, as that chapter existed before the effective date of this Act, including acts of the district's board of directors. (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 6. (a) Sections 1 and 2 of this Act take effect only if the Act of the 81st Legislature, Regular Session, 2009, relating to nonsubstantive additions to and corrections in enacted codes does not become law. If the Act of the 81st Legislature, Regular Session, 2009, relating to nonsubstantive additions to and corrections in enacted codes becomes law, Sections 1 and 2 of this Act have no effect. (b) Sections 3 and 4 of this Act take effect only if the Act of the 81st Legislature, Regular Session, 2009, relating to nonsubstantive additions to and corrections in enacted codes becomes law. If the Act of the 81st Legislature, Regular Session, 2009, relating to nonsubstantive additions to and corrections in enacted codes does not become law, Sections 3 and 4 of this Act have no effect. 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.