Texas 2011 82nd Regular

Texas House Bill HB3275 Introduced / Bill

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                    By: Coleman H.B. No. 3275


 A BILL TO BE ENTITLED
 AN ACT
 relating to the powers and duties of counties and political
 subdivisions of this state and entities created by those
 subdivisions.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subchapter A, Chapter 375, Local Government
 Code, is amended by adding Section 375.005 to read as follows:
 Sec. 375.005.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
 All or any part of the area of the district is eligible to be
 included in:
 (1)  a tax increment reinvestment zone created under
 Chapter 311, Tax Code;
 (2)  a tax abatement reinvestment zone created under
 Chapter 312, Tax Code;
 (3)  an enterprise zone created under Chapter 2303,
 Government Code; or
 (4)  an industrial district created under Chapter 42,
 Local Government Code.
 SECTION 2.  Subchapter E, Chapter 375, Local Government
 Code, is amended by adding Section 375.098 to read as follows:
 Sec. 375.098.  DISTRICT ACT OR PROCEEDING PRESUMED VALID.
 (a)  A governmental act or proceeding of a district is conclusively
 presumed, as of the date it occurred, valid and to have occurred in
 accordance with all applicable statutes and rules if:
 (1)  the third anniversary of the effective date of the
 act or proceeding has expired; and
 (2)  a lawsuit to annul or invalidate the act or
 proceeding has not been filed on or before that third anniversary.
 (b)  This section does not apply to:
 (1)  an act or proceeding that was void at the time it
 occurred;
 (2)  an act or proceeding that, under a statute of this
 state or the United States, was a misdemeanor or felony at the time
 the act or proceeding occurred;
 (3)  a rule that, at the time it was passed, was
 preempted by a statute of this state or the United States, including
 Section 1.06 or 109.57, Alcoholic Beverage Code; or
 (4)  a matter that on the effective date of this
 section:
 (A)  is involved in litigation if the litigation
 ultimately results in the matter being held invalid by a final
 judgment of a court; or
                    (B)  has been held invalid by a final judgment of a
 court.
 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 powers have been delegated under Section
 382.101(c), a municipality in which the district is located by a
 resolution adopted by the municipality's governing body.
 SECTION 4.  Section 387.003, Local Government Code, is
 amended by amending Subsections (a), (b), (b-1), (c), (e), (f), and
 (h) and adding Subsections (a-1), (i), and (j) to read as follows:
 (a)  The commissioners court of the county may call an
 election on the question of creating a county assistance district
 under this chapter.  More than one county assistance district may be
 created in a county.
 (a-1)  A district may [to] perform the following functions in
 the district:
 (1)  the construction, maintenance, or improvement of
 roads or highways;
 (2)  the provision of law enforcement and detention
 services;
 (3)  the maintenance or improvement of libraries,
 museums, parks, or other recreational facilities;
 (4)  the provision of services that benefit the public
 health or welfare, including the provision of firefighting and fire
 prevention services; or
 (5)  the promotion of economic development and tourism.
 (b)  The order calling the election must:
 (1)  define the boundaries of the district to include
 any portion of the county in which the combined tax rate of all
 local sales and use taxes imposed, including the rate to be imposed
 by the district if approved at the election, would not exceed the
 maximum combined rate of sales and use taxes imposed by political
 subdivisions of this state that is prescribed by Sections 321.101
 and 323.101, Tax Code [two percent]; and
 (2)  call for the election to be held within those
 boundaries.
 (b-1)  If the proposed district includes any territory of a
 municipality, the commissioners court shall send notice by
 certified mail to the governing body of the municipality of the
 commissioners court's intent to create the district.  If the
 municipality has created a development corporation under Chapter
 504 or 505, the commissioners court shall also send the notice to
 the board of directors of the corporation.  The commissioners court
 must send the notice not later than the 60th day before the date the
 commissioners court orders the election.  The governing body of the
 municipality may exclude the territory of the municipality from the
 proposed district by sending notice by certified mail to the
 commissioners court of the governing body's desire to exclude the
 municipal territory from the district.  The governing body must
 send the notice not later than the 45th day after the date the
 governing body receives notice from the commissioners court under
 this subsection.  The territory of a municipality that is excluded
 under this subsection may subsequently be included in:
 (1)  the district in an election held under Subsection
 (f) with the consent of the municipality; or
 (2)  another district after complying with the
 requirements of this subsection and after an election held under
 Subsection (f).
 (c)  The ballot at the election must be printed to permit
 voting for or against the proposition: "Authorizing the creation of
 the ______ County Assistance District No. ____ (insert name of
 district) and the imposition of a sales and use tax at the rate of
 ____ [of one] percent (insert [one eighth, one fourth, three
 eighths, or one half, as] appropriate rate) for the purpose of
 financing the operations of the district."
 (e)  If a majority of the votes received at the election are
 against the creation of the district, the district is not created.
 The failure to approve the creation of a district under this
 subsection does not affect the authority of the county to call one
 or more elections [another election] on the question of creating
 one or more [a] county assistance districts [district may not be
 held in the county before the first anniversary of the most recent
 election concerning the creation of a district].
 (f)  The commissioners court may call an election to be held
 in an area of the county that is not located in a district created
 under this section to determine whether the area should be included
 in the district and whether the district's sales and use tax should
 be imposed in the area.  An election may not be held in an area in
 which the combined tax rate of all local sales and use taxes
 imposed, including the rate to be imposed by the district if
 approved at the election, would exceed the maximum combined rate of
 sales and use taxes imposed by political subdivisions of this state
 that is prescribed by Sections 321.101 and 323.101, Tax Code [two
 percent].
 (h)  If more than one election to authorize a local sales and
 use tax is held on the same day in the area of a proposed district or
 an area proposed to be added to a district and if the resulting
 approval by the voters would cause the imposition of a local sales
 and use tax in any area to exceed the maximum combined rate of sales
 and use taxes of political subdivisions of this state that is
 prescribed by Sections 321.101 and 323.101, Tax Code [two percent],
 only a tax authorized at an election under this section may be
 imposed.
 (i)  In addition to the authority to include an area in a
 district under Subsection (f), the governing body of a district by
 order may include an area in the district on receipt of a petition
 or petitions signed by the owner or owners of the majority of the
 land in the area to be included in the district.  If there are no
 registered voters in the area to be included in the district, no
 election is required.
 (j)  The commissioners court by order may exclude an area
 from the district if the district has no outstanding bonds payable
 wholly or partly from sales and use taxes and the exclusion does not
 impair any outstanding district debt or contractual obligation.
 SECTION 5.  Section 387.005, Local Government Code, is
 amended to read as follows:
 Sec. 387.005.  GOVERNING BODY. (a)  The commissioners court
 of the county in which the district is created by order shall
 provide that:
 (1)  the commissioners court is the governing body of
 the district; or
 (2)  the commissioners court shall appoint a governing
 body of the district.
 (b)  A member of the governing body of the district
 [commissioners court] is not entitled to compensation for service
 [on the governing body of the district] but is entitled to
 reimbursement for actual and necessary expenses.
 (c)  A board of directors appointed by the commissioners
 court under this section shall consist of five directors who serve
 staggered terms of two years.  To be eligible to serve as a
 director, a person must be a resident of the county in which the
 district is located.  The initial directors shall draw lots to
 achieve staggered terms, with three of the directors serving
 one-year terms and two of the directors serving two-year terms.
 SECTION 6.  Section 387.006(a), Local Government Code, is
 amended to read as follows:
 (a)  A district may:
 (1)  perform any act necessary to the full exercise of
 the district's functions;
 (2)  accept a grant or loan from:
 (A)  the United States;
 (B)  an agency or political subdivision of this
 state; or
 (C)  a public or private person;
 (3)  acquire, sell, lease, convey, or otherwise dispose
 of property or an interest in property under terms determined by the
 district;
 (4)  employ necessary personnel; [and]
 (5)  adopt rules to govern the operation of the
 district and its employees and property; and
 (6)  enter into agreements with municipalities
 necessary or convenient to achieve the district's purposes,
 including agreements regarding the duration, rate, and allocation
 between the district and the municipality of sales and use taxes.
 SECTION 7.  Section 387.007, Local Government Code, is
 amended by amending Subsection (b) and adding Subsection (c) to
 read as follows:
 (b)  A district may not adopt a sales and use tax under this
 chapter if the adoption of the tax would result in a combined tax
 rate of all local sales and use taxes that would exceed the maximum
 combined rate prescribed by Sections 321.101 and 323.101, Tax Code,
 [of more than two percent] in any location in the district.
 (c)  A district may define areas in the district to pay for
 improvements, facilities, or services that primarily benefit that
 area and do not generally and directly benefit the district as a
 whole.  The district may impose different rates of sales and use tax
 in each defined area.  The sales and use tax rate in each area may
 not exceed the rate approved at an election held under Section
 387.003.
 SECTION 8.  Section 387.009, Local Government Code, is
 amended to read as follows:
 Sec. 387.009.  TAX RATE. The rate of a tax adopted under
 this chapter must be in increments of one-eighth[, one fourth,
 three eighths, or one half] of one percent.
 SECTION 9.  Sections 387.010(a), (b), and (c), Local
 Government Code, are amended to read as follows:
 (a)  A district that has adopted a sales and use tax under
 this chapter may, by order and subject to Section 387.007(b):
 (1)  reduce [, change] the rate of the tax or repeal the
 tax without an election, except that the district may not repeal the
 sales and use tax or reduce the rate of the sales and use tax below
 the amount pledged to secure payment of an outstanding district
 debt or contractual obligation;
 (2)  increase the rate of the sales and use tax, if the
 increased rate of the sales and use tax will not exceed the rate
 approved at an election held under Section 387.003; or
 (3)  increase the rate of the sales and use tax to a
 rate that exceeds the rate approved at an election held under
 Section 387.003 after [if] the increase [change or repeal] is
 approved by a majority of the votes received in the district at an
 election held for that purpose.
 (b)  The tax may be changed under Subsection (a) in one or
 more increments of one-eighth of one percent [to a maximum of one
 half of one percent].
 (c)  The ballot for an election to increase [change] the tax
 shall be printed to permit voting for or against the proposition:
 "The increase [change] of a sales and use tax for the ______ County
 Assistance District No. ____ (insert name of district) from the
 rate of ____ [of one] percent (insert [one fourth, three eighths, or
 one half, as] appropriate rate) to the rate of ____ [of one] percent
 (insert [one fourth, three eighths, or one half, as] appropriate
 rate)."
 SECTION 10.  Section 387.012, Local Government Code, is
 amended to read as follows:
 Sec. 387.012.  EFFECTIVE DATE OF TAX. The adoption of the
 tax, the increase or reduction [change] of the tax rate, or the
 repeal of the tax takes effect on the first day of the first
 calendar quarter occurring after the expiration of the first
 complete quarter occurring after the date the comptroller receives
 a copy of the order of the district's governing body [notice of the
 results of the election] adopting, increasing, reducing
 [changing], or repealing the tax.
 SECTION 11.  Section 552.014, Local Government Code, is
 amended to read as follows:
 Sec. 552.014.  CONTRACTS WITH WATER DISTRICTS OR NONPROFIT
 CORPORATIONS. (a)  In this section:
 (1)  "Project" means a water supply or treatment system, a
 water distribution system, a sanitary sewage collection or
 treatment system, works or improvements necessary for drainage of
 land, recreational facilities, roads and improvements in aid of
 roads, or facilities to provide firefighting services.
 (2)  "Water district" [, "water district"] means a
 district created under Article XVI, Section 59, of the Texas
 Constitution.
 (b)  A municipality or county may enter into a contract with
 a water district or with a corporation organized to be operated
 without profit under which the district or corporation will acquire
 for the benefit of and convey to the municipality or county, either
 separately or together, one or more projects [a water supply or
 treatment system, a water distribution system, a sanitary sewage
 collection or treatment system, or works or improvements necessary
 for drainage of land in the municipality].  In connection with the
 acquisition, the district or corporation shall improve, enlarge, or
 extend the existing municipal or county facilities as provided by
 the contract.
 (c)  If the contract provides that the municipality or county
 assumes ownership of the project [water, sewer, or drainage system]
 on completion of construction or at the time that all debt incurred
 by the district or corporation in the acquisition, construction,
 improvement, or extension of the project [system] is paid in full,
 the municipality or county may make payments to the district or
 corporation for project [water, sewer, or drainage] services to
 part or all of the residents of the municipality or county.  The
 contract may provide for purchase of the project [system] by the
 municipality or county through periodic payments to the district or
 corporation in amounts that, together with the net income of the
 district or corporation, are sufficient to pay the principal of and
 interest on the bonds of the district or corporation as they become
 due.  The contract may provide:
 (1)  that any payments due under this section are
 payable from and are secured by a pledge of a specified part of the
 revenues of the municipality or county, including revenues from
 municipal or county sales and use taxes [municipal water system,
 sewer system, or drainage system];
 (2)  for the levying of a tax to make payments due under
 this section; or
 (3)  that the payments due under this section be made
 from a combination of revenues [from the system] and taxes.
 (d)  The contract may provide that the district or
 corporation may use the streets, alleys, and other public ways and
 places of the municipality or county for project [water, sewer, or
 drainage] purposes for a period that ends at the time the
 indebtedness of the district or corporation is paid in full and the
 municipality or county acquires title to the project [system] in
 accordance with this section.
 (e)  The contract may provide for the operation of the
 project [system] by the municipality or county, and, if so
 authorized, the municipality or county may operate the project
 [system].
 (f)  A contract under this section must be authorized by a
 majority vote of the governing body of the municipality or county.
 (g)  This section does not authorize a water district or
 corporation described by Subsection (b) to participate in a project
 that the water district or corporation is not authorized to
 participate in under other law.
 SECTION 12.  Sections 311.006(a) and (b), Tax Code, are
 amended to read as follows:
 (a)  A municipality may not designate [create] a
 reinvestment zone if:
 (1)  more than 30 [10] percent of the property in the
 proposed zone, excluding property that is publicly owned, is used
 for residential purposes; or
 (2)  the total appraised value of taxable real property
 in the proposed zone and in existing reinvestment zones exceeds:
 (A)  25 [20] percent of the total appraised value
 of taxable real property in the municipality and in the industrial
 districts created by the municipality, if the municipality has a
 population of 100,000 or more [is the county seat of a county:
 [(i)     that is adjacent to a county with a
 population of 3.3 million or more; and
 [(ii)     in which a planned community is
 located that has 20,000 or more acres of land, that was originally
 established under the Urban Growth and New Community Development
 Act of 1970 (42 U.S.C. Section 4501 et seq.), and that is subject to
 restrictive covenants containing ad valorem or annual variable
 budget based assessments on real property]; or
 (B)  50 [15] percent of the total appraised value
 of taxable real property in the municipality and in the industrial
 districts created by the municipality, if [Paragraph (A) does not
 apply to] the municipality has a population of less than 100,000.
 (b)  A municipality may not change the boundaries of an
 existing reinvestment zone to include property in excess of the
 restrictions on composition of a zone described by Subsection (a)
 [more than 10 percent of which, excluding property dedicated to
 public use, is used for residential purposes or to include more than
 15 percent of the total appraised value of taxable real property in
 the municipality and in the industrial districts created by the
 municipality].
 SECTION 13.  Sections 311.009(a), (b), and (e), Tax Code,
 are amended to read as follows:
 (a)  Except as provided by Subsection (b), the board of
 directors of a reinvestment zone consists of at least five and not
 more than 15 members, unless more than 15 members are required to
 satisfy the requirements of this subsection. Each taxing unit other
 than the municipality or county that designated [created] the zone
 that levies taxes on real property in the zone may appoint one
 member of the board if the taxing unit has approved the payment of
 all or part of the tax increment produced by the unit into the tax
 increment fund for the zone. A unit may waive its right to appoint a
 director. The governing body of the municipality or county that
 designated [created] the zone may appoint not more than 10
 directors to the board; except that if there are fewer than five
 directors appointed by taxing units other than the municipality or
 county, the governing body of the municipality or county may
 appoint more than 10 members as long as the total membership of the
 board does not exceed 15.
 (b)  If the zone was designated under Section 311.005(a)(4),
 the governing body of the municipality or county that designated
 the zone may provide that the board of directors of the zone
 consists of nine members appointed as provided by this subsection,
 unless more than nine members are required to comply with this
 subsection.  Each taxing unit [school district, county, or
 municipality], other than the municipality or county that
 designated [created] the zone, that levies taxes on real property
 in the zone may appoint one member of the board if the taxing unit
 [school district, county, or municipality] has approved the payment
 of all or part of the tax increment produced by the unit into the
 tax increment fund for the zone. The member of the state senate in
 whose district the zone is located is a member of the board, and the
 member of the state house of representatives in whose district the
 zone is located is a member of the board, except that either may
 designate another individual to serve in the member's place at the
 pleasure of the member. If the zone is located in more than one
 senate or house district, this subsection applies only to the
 senator or representative in whose district a larger portion of the
 zone is located than any other senate or house district, as
 applicable. If fewer than seven taxing units, other than the
 municipality or county that designated the zone, are eligible to
 appoint members of the board of directors of the zone, the
 municipality or county may appoint a number of members of the board
 such that the board comprises nine members. If at least seven taxing
 units, other than the municipality or county that designated the
 zone, are eligible to appoint members of the board of directors of
 the zone, the municipality or county may appoint one member. [The
 remaining members of the board are appointed by the governing body
 of the municipality or county that created the zone.]
 (e)  To be eligible for appointment to the board by the
 governing body of the municipality or county that designated
 [created] the zone, an individual must be at least 18 years of age
 and:
 (1)  if the board is covered by Subsection (a):
 (A)  be a resident of the county in which the zone
 is located or a county adjacent to that county [qualified voter of
 the municipality or county, as applicable]; or
 (B)  [be at least 18 years of age and] own real
 property in the zone, whether or not the individual resides in the
 [municipality or] county in which the zone is located or a county
 adjacent to that county; or
 (2)  if the board is covered by Subsection (b), [:
 [(A)  be at least 18 years of age; and
 [(B)]  own real property in the zone or be an
 employee or agent of a person that owns real property in the zone.
 SECTION 14.  Sections 311.010(g) and (h), Tax Code, are
 amended to read as follows:
 (g)  Chapter 252, Local Government Code, does not apply to a
 dedication, pledge, or other use of revenue in the tax increment
 fund for a reinvestment zone [by the board of directors of the zone
 in carrying out its powers] under Subsection (b).
 (h)  Subject to the approval of the governing body of the
 municipality or county that designated [created] the zone, the
 board of directors of a reinvestment zone, as necessary or
 convenient to implement the project plan and reinvestment zone
 financing plan and achieve their purposes, may establish and
 provide for the administration of one or more programs for the
 public purposes of developing and diversifying the economy of the
 zone, eliminating unemployment and underemployment in the zone, and
 developing or expanding transportation, business, and commercial
 activity in the zone, including programs to make grants and loans
 [from the tax increment fund of the zone in an aggregate amount not
 to exceed the amount of the tax increment produced by the
 municipality and paid into the tax increment fund for the zone] for
 activities that benefit the zone and stimulate business and
 commercial activity in the zone. For purposes of this subsection,
 on approval of the municipality or county, the board of directors of
 the zone has all the powers of a municipality under Chapter 380,
 Local Government Code. The approval required by this subsection may
 be granted in an ordinance, in the case of a zone designated by a
 municipality, or in an order, in the case of a zone designated by a
 county, approving a project plan or reinvestment zone financing
 plan or approving an amendment to a project plan or reinvestment
 zone financing plan.
 SECTION 15.  Sections 311.013(f), (l), and (n), Tax Code,
 are amended to read as follows:
 (f)  A taxing unit is not required to pay into the tax
 increment fund any of its tax increment produced from property
 located in a reinvestment zone designated under Section 311.005(a)
 or in an area added to a reinvestment zone under Section 311.007
 unless the taxing unit enters into an agreement to do so with the
 governing body of the municipality or county that designated
 [created] the zone. A taxing unit may enter into an agreement under
 this subsection at any time before or after the zone is designated
 [created] or enlarged. The agreement may include conditions for
 payment of that tax increment into the fund and must specify the
 portion of the tax increment to be paid into the fund and the years
 for which that tax increment is to be paid into the fund. In
 addition to any other terms to which the parties agree, the
 agreement may specify the projects to which a participating taxing
 unit's tax increment will be dedicated and that the taxing unit's
 participation may be computed with respect to a base year later
 than the original base year of the zone. The agreement and the
 conditions in the agreement are binding on the taxing unit, the
 municipality or county, and the board of directors of the zone.
 (l)  The governing body of a municipality or county
 that designates an area as a reinvestment zone may determine, in the
 designating ordinance or order adopted under Section 311.003 or in
 the ordinance or order adopted under Section 311.011 approving the
 reinvestment zone financing plan for the zone, the portion of the
 tax increment produced by the municipality or county that the
 municipality or county is required to pay into the tax increment
 fund for the zone. If a municipality or county does not determine
 the portion of the tax increment produced by the municipality or
 county that the municipality or county is required to pay into the
 tax increment fund for a reinvestment zone, the municipality or
 county is required to pay into the fund for the zone the entire tax
 increment produced by the municipality or county, except as
 provided by Subsection (b)(1).
 (n)  This subsection applies only to a school district whose
 taxable value computed under Section 403.302(d), Government Code,
 is reduced in accordance with Subdivision (5) [(4)] of that
 subsection. In addition to the amount otherwise required to be paid
 into the tax increment fund, the district shall pay into the fund an
 amount equal to the amount by which the amount of taxes the district
 would have been required to pay into the fund in the current year if
 the district levied taxes at the rate the district levied in 2005
 exceeds the amount the district is otherwise required to pay into
 the fund in the year of the reduction.  This additional amount may
 not exceed the amount the school district receives in state aid for
 the current tax year under Section 42.2514, Education Code. The
 school district shall pay the additional amount after the district
 receives the state aid to which the district is entitled for the
 current tax year under Section 42.2514, Education Code.
 SECTION 16.  Chapter 311, Tax Code, is amended by adding
 Section 311.021 to read as follows:
 Sec. 311.021.  ACT OR PROCEEDING PRESUMED VALID. (a) A
 governmental act or proceeding of a municipality or county, the
 board of directors of a reinvestment zone, or an entity acting
 under Section 311.010(f) relating to the designation, operation, or
 administration of a reinvestment zone or the implementation of a
 project plan or reinvestment zone financing plan under this chapter
 is conclusively presumed, as of the date it occurred, valid and to
 have occurred in accordance with all applicable statutes and rules
 if:
 (1)  the second anniversary of the effective date of
 the act or proceeding has expired; and
 (2)  a lawsuit to annul or invalidate the act or
 proceeding has not been filed on or before the later of that second
 anniversary or August 1, 2011.
 (b)  This section does not apply to:
 (1)  an act or proceeding that was void at the time it
 occurred;
 (2)  an act or proceeding that, under a statute of this
 state or the United States, was a misdemeanor or felony at the time
 the act or proceeding occurred;
 (3)  a rule that, at the time it was passed, was
 preempted by a statute of this state or the United States,
 including Section 1.06 or 109.57, Alcoholic Beverage Code; or
 (4)  a matter that on the effective date of the Act
 enacting this section:
 (A)  is involved in litigation if the litigation
 ultimately results in the matter being held invalid by a final
 judgment of a court; or
 (B)  has been held invalid by a final judgment of a
 court.
 SECTION 17.  Subchapter E, Chapter 42, Education Code, is
 amended by adding Section 42.2514 to read as follows:
 Sec. 42.2514.  TAX INCREMENT FINANCING PAYMENTS. For each
 school year, a school district, including a school district that is
 otherwise ineligible for state aid under this chapter, is entitled
 to state aid in an amount equal to the amount the district is
 required to pay into the tax increment reinvestment fund for a
 reinvestment zone under Section 311.013(n), Tax Code.
 SECTION 18.  Section 42.2516(b), Education Code, is amended
 to read as follows:
 (b)  Notwithstanding any other provision of this title, a
 school district that imposes a maintenance and operations tax at a
 rate at least equal to the product of the state compression
 percentage multiplied by the maintenance and operations tax rate
 adopted by the district for the 2005 tax year is entitled to at
 least the amount of state revenue necessary to provide the district
 with the sum of:
 (1)  as calculated under Subsection (e), the amount of
 state and local revenue per student in weighted average daily
 attendance for maintenance and operations that the district would
 have received during the 2009-2010 school year under Chapter 41 and
 this chapter, as those chapters existed on January 1, 2009, at a
 maintenance and operations tax rate equal to the product of the
 state compression percentage for that year multiplied by the
 maintenance and operations tax rate adopted by the district for the
 2005 tax year;
 (2)  an amount equal to the product of $120 multiplied
 by the number of students in weighted average daily attendance in
 the district; and
 (3)  [an amount equal to the amount the district is
 required to pay into the tax increment fund for a reinvestment zone
 under Section 311.013(n), Tax Code, in the current tax year; and
 [(4)]  any amount to which the district is entitled
 under Section 42.106.
 SECTION 19.  Section 49.063, Water Code, is amended to read
 as follows:
 Sec. 49.063.  NOTICE OF MEETINGS. (a) Notice of meetings of
 the board shall be given as set forth in the open meetings law,
 Chapter 551, Government Code, except that if a district does not
 have a meeting place within the district, the district shall post
 notice of its meeting at a public place within the district
 specified by the board in a written resolution, rather than at its
 administrative office. The board shall specify such public place to
 be a bulletin board or other place within the district which is
 reasonably available to the public.
 (b)  The validity of an action taken at a board meeting is not
 affected by:
 (1)  [Neither] failure to provide notice of the meeting
 if the meeting is a regular meeting;
 (2)  [nor] an insubstantial defect in notice of the
 [any] meeting; or
 (3)  failure of a county clerk to timely or properly
 post or maintain public access to a district notice of the meeting
 furnished to the county clerk in sufficient time for posting under
 Section 551.043(a) or 551.045, Government Code [shall affect the
 validity of any action taken at the meeting].
 SECTION 20.  Section 49.216, Water Code, is amended by
 amending Subsection (e) and adding Subsection (f) to read as
 follows:
 (e)  Any peace officer who is directly employed by a
 district, before beginning to perform any duties and at the time of
 appointment, must take an oath and execute a bond conditioned on
 faithful performance of such officer's duties in the amount of
 $1,000 payable to the district. The oath and the bond shall be filed
 in the district office.
 (f)  A peace officer contracted for by the district,
 individually or through a county, sheriff, constable, or
 municipality, is an independent contractor, and the district is
 responsible for the acts or omissions of the peace officer only to
 the extent provided by law for other independent contractors.
 SECTION 21.  The following laws are repealed:
 (1)  Section 382.155(d), Local Government Code; and
 (2)  Section 387.010(d), Local Government Code.
 SECTION 22.  This Act takes effect September 1, 2011.