By: Farney (Senate Sponsor - Schwertner) H.B. No. 3186
(In the Senate - Received from the House May 13, 2015;
May 14, 2015, read first time and referred to Committee on
Intergovernmental Relations; May 25, 2015, reported favorably by
the following vote: Yeas 5, Nays 0; May 25, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the qualifications of directors and the use of project
funds of certain municipal development districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 377.051, Local Government Code, is
amended by adding Subsection (e) to read as follows:
(e) Notwithstanding Subsection (d), a person may qualify to
serve as a director of a district that is located in a municipality
with a population of more than 5,000 and less than 6,000 and that is
located wholly in a county with a population of more than 20,000 and
less than 25,000 and that borders the Brazos River if the person
resides in the independent school district that serves the majority
of the district.
SECTION 2. Section 377.072, Local Government Code, is
amended by amending Subsection (c) and adding Subsection (e) to
read as follows:
(c) Except as provided by Subsections [Subsection] (d) and
(e), the district may use money in the development project fund only
to:
(1) pay the costs of planning, acquiring,
establishing, developing, constructing, or renovating one or more
development projects in the district;
(2) pay the principal of, interest on, and other costs
relating to bonds or other obligations issued by the district or to
refund bonds or other obligations; or
(3) pay the costs of operating or maintaining one or
more development projects during the planning, acquisition,
establishment, development, construction, or renovation or while
bonds or other obligations for the planning, acquisition,
establishment, development, construction, or renovation are
outstanding.
(e) A district that is located in a municipality with a
population of more than 5,000 and less than 6,000 and that is
located wholly in a county with a population of more than 20,000 and
less than 25,000 and that borders the Brazos River may use money in
the development project fund only to:
(1) pay the costs of planning, acquiring,
establishing, developing, constructing, or renovating one or more
development projects inside the county in which the district is
located, if the project:
(A) accomplishes a public purpose of the
district;
(B) allows the district to retain control over
the money to ensure that the district's public purpose is
accomplished and to protect the district's investment; and
(C) benefits the district;
(2) pay the principal of, interest on, and other costs
relating to bonds or other obligations issued by the district or to
refund bonds or other obligations; or
(3) pay the costs of operating or maintaining one or
more development projects during the planning, acquisition,
establishment, development, construction, or renovation or while
bonds or other obligations for the planning, acquisition,
establishment, development, construction, or renovation are
outstanding.
SECTION 3. 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, 2015.
* * * * *