89R11351 MCF-F
By: Button H.B. No. 112
A BILL TO BE ENTITLED
AN ACT
relating to the creation and operation of a science park district in
certain counties that may impose assessments, fees, and taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 398 to read as follows:
CHAPTER 398. SCIENCE PARK DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 398.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of a
district.
(2) "Director" means a member of the board.
(3) "District" means a science park district created
under this chapter.
Sec. 398.002. APPLICABILITY. This chapter applies only in
a county:
(1) with a population of 800,000 or more; or
(2) adjacent to a county with a population of 800,000
or more.
Sec. 398.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of a science park district under this chapter is essential
to accomplish the purposes of Section 52-a, Article III, Texas
Constitution, and other public purposes stated in this chapter.
(b) The purpose of a science park district is to:
(1) promote scientific research and technological
innovation;
(2) support the establishment and growth of technology
companies;
(3) promote and encourage commercial development and
workforce development;
(4) facilitate collaboration between higher
education, the science and technology industry, and government; and
(5) support the development of infrastructure.
(c) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
SUBCHAPTER B. CREATION OF DISTRICT; TEMPORARY BOARD
Sec. 398.051. CREATION OF SCIENCE PARK DISTRICT. (a) The
owner or owners of territory composed of 1,000 or more contiguous
acres may petition the Texas Economic Development and Tourism
Office for creation of a district for that territory.
(b) A petition described by Subsection (a) must:
(1) describe the territory to be included in the
proposed district; and
(2) demonstrate that the territory meets the
requirements of Section 398.052.
(c) If the Texas Economic Development and Tourism Office
determines that a petition described by Subsection (a) conforms to
the requirements of this chapter and that the creation of the
district would be of benefit to the territory to be included in the
district, the office may approve the creation of the district and
appoint the temporary board in accordance with Section 398.053.
(d) If the Texas Economic Development and Tourism Office
finds that the petition does not conform to the requirements of this
chapter or that the creation of the district is not of benefit to
the territory in the proposed district, the office shall either
deny the petition or require petitioners to amend the petition.
Sec. 398.052. REQUIREMENTS FOR DISTRICT TERRITORY. The
territory for which a district may be created under this chapter
must:
(1) have access to reliable, high-capacity electric
generation or storage;
(2) have access to abundant and sustainable water
sources;
(3) be located near a major transportation network,
including a major highway, rail line, seaport, or international
airport; and
(4) include a minimum of 1,000 contiguous acres.
Sec. 398.053. TEMPORARY BOARD. (a) After the Texas
Economic Development and Tourism Office approves the creation of a
district, the office shall request the appointment of a temporary
board of directors for the district to include:
(1) three temporary directors appointed by the
governor;
(2) three temporary directors appointed by the
lieutenant governor; and
(3) three temporary directors appointed by the speaker
of the house of representatives.
(b) A temporary director appointed under this section must
have knowledge or experience in at least one of the following areas:
(1) scientific research or technological innovation;
(2) economic policy;
(3) real estate and infrastructure analysis;
(4) environment and sustainability;
(5) risk assessment;
(6) finance, including cost-benefit analyses, capital
expenditures, and return on investment calculations;
(7) public and private stakeholder engagement;
(8) land or infrastructure development; or
(9) workforce or higher education.
(c) The temporary board shall:
(1) develop a strategic plan for the district;
(2) approve initial projects and resource allocation;
(3) establish policies for the operation and
development of the district; and
(4) submit to the governor, comptroller of public
accounts, and members of the legislature a report detailing the
activities, expenditures, and progress of the district on the first
and second anniversaries of the creation of the district.
(d) The temporary board has all of the powers and duties of a
board elected under Subchapter C.
(e) The temporary directors shall serve staggered terms of
one or two years. At the first meeting of the temporary board, the
directors shall draw lots to determine which four directors serve a
term of one year and which five directors serve a term of two years.
(f) A vacancy in the office of temporary director shall be
filled by appointment by the appropriate appointing official.
(g) An official who appoints a temporary director may
appoint a successor temporary director if the term of the director
expires before the election called for the director's successor
under Section 398.101 is held.
SUBCHAPTER C. DISTRICT ADMINISTRATION
Sec. 398.101. BOARD OF DIRECTORS; TERMS. (a) The district
is governed by a board of nine elected directors.
(b) Directors serve staggered two-year terms.
(c) The temporary board shall call an election for four
director positions to be held on a uniform election date under
Section 41.001, Election Code, as soon as practicable after the
district is created. The board shall call an election for the
remaining five director positions to be held on an authorized
uniform election date under Section 41.001, Election Code, in the
year following the first election.
(d) A temporary director, or a successor temporary
director, serves until the date a successor for the director is
elected.
(e) The election shall be held in accordance with the
Election Code, to the extent not inconsistent with this chapter.
(f) A vacancy in the office of director shall be filled by
the remaining members of the board for the unexpired term.
Sec. 398.102. QUALIFICATIONS. To serve as a director, a
person must be at least 18 years old and:
(1) a qualified voter of the county in which the
district is located;
(2) an owner of stock, whether beneficial or
otherwise, of a corporate owner of property in the district;
(3) an owner of a beneficial interest in a trust that
owns property in the district; or
(4) an agent, employee, or tenant of a person covered
by Subdivision (1), (2), or (3).
Sec. 398.103. BOND. The board may require an officer or
employee to execute a bond payable to the district and conditioned
on the faithful performance of the person's duties.
Sec. 398.104. COMPENSATION; EXPENSES. (a) A director
serves without compensation but may be reimbursed for a reasonable
and necessary expense incurred in performing an official duty.
(b) To receive reimbursement under Subsection (a):
(1) the director must report the expense to the board;
and
(2) the board must approve the expense.
Sec. 398.105. REMOVAL OF DIRECTOR. A majority of the
directors, after notice and hearing, may remove a director for
misconduct or failure to carry out the director's duties.
Sec. 398.106. OFFICERS. The directors shall select from
among the directors a president, a vice president, a secretary, and
any other officers the board considers necessary.
Sec. 398.107. MEETINGS. (a) A board shall hold regular
meetings at times to be fixed by the board or special meetings as
necessary.
(b) The board shall hold its meetings at a designated
meeting place.
Sec. 398.108. QUORUM; OFFICERS' DUTIES. (a) Five
directors constitute a quorum and a concurrence of five is
sufficient in any matter relating to the business of the district.
(b) The president presides at all board meetings and is the
chief executive officer of the district.
(c) The vice president acts as the president if the
president is incapacitated or absent from a meeting.
(d) The secretary acts as the president if both the
president and vice president are incapacitated or absent from a
meeting.
(e) The secretary is responsible for ensuring that all the
records and books of the district are properly kept.
(f) The board may appoint another director or an employee as
assistant or deputy secretary to assist the secretary. The
assistant or deputy secretary may certify the authenticity of any
record of the district.
Sec. 398.109. BYLAWS. The board may adopt bylaws to govern:
(1) the time, place, and manner of conducting board
meetings;
(2) the powers, duties, and responsibilities of the
board's officers and employees;
(3) the disbursement of money by a check, draft, or
warrant;
(4) the appointment and authority of board committees;
(5) the keeping of accounts and other records; and
(6) any other matter the board considers appropriate.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 398.151. GENERAL POWERS. (a) A district has the
powers necessary or convenient to carry out and effect the purposes
and provisions of this chapter, including:
(1) a power granted to a municipal management district
by Section 375.092 or 375.096;
(2) operating education and training programs in
collaboration with a university system or public technical
institute in this state;
(3) facilitating internships, cooperative education
programs, and workforce development initiatives; and
(4) entering into agreements and otherwise
collaborating with:
(A) universities and research institutions in
this state;
(B) private corporations or companies operating
domestically and internationally, other than a company owned by an
individual who is a citizen of a country designated as a country of
particular concern in the United States secretary of state's
designations under the International Religious Freedom Act of 1998
(22 U.S.C. Section 6401 et seq.) in effect on September 1, 2025;
(C) an agency of the United States that
regulates, provides funding for, or promotes science and
technology; and
(D) a state agency that regulates, provides
funding for, or promotes economic development and workforce
development.
(b) A district may accept gifts, grants, and donations from
any source, including private and nonprofit organizations.
Sec. 398.152. DISTRICT PRIORITIES. (a) A district shall
prioritize the development of state-of-the-art facilities,
including:
(1) research and development centers;
(2) technology incubators and accelerators;
(3) advanced manufacturing facilities; and
(4) office space for new businesses and technology
firms.
(b) The district shall adopt guidelines for district
projects to:
(1) minimize environmental impacts;
(2) promote energy efficiency;
(3) ensure that businesses operating in the district
are not significantly negatively affected by environmental or
physical externalities created by a district project, such as
vibrations; and
(4) balance the effective functioning of businesses in
the district and national security concerns associated with any
district project that requires:
(A) a secure supply chain;
(B) protection of infrastructure and other
critical resources; or
(C) security from threats of terrorism,
cyberattacks, and natural disasters.
Sec. 398.153. REAL PROPERTY RESTRICTIONS. (a) The
district may adopt restrictions on the use of real property in the
district.
(b) A restriction adopted under this section must be
compatible with and equal to or more stringent than a restriction
adopted by each municipality or county that overlaps the territory
in which the restriction is adopted.
Sec. 398.154. ELIGIBILITY FOR INCLUSION IN SPECIAL
ZONES. (a) 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; or
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code.
(b) If a municipality or county creates a tax increment
reinvestment zone described by Subsection (a), the municipality or
county and the board of directors of the zone, by contract with the
district, may grant money deposited in the tax increment fund to the
district to be used by the district for the purposes permitted for
money granted to a corporation under Section 380.002(b), including
the right to pledge the money as security for any bonds issued by
the district for a project.
Sec. 398.155. ANNUAL REPORT. The district shall submit to
the governor, comptroller of public accounts, and members of the
legislature an annual report detailing the activities,
expenditures, and progress of the district.
Sec. 382.156. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 398.201. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 398.202. MONEY USED FOR PROJECTS OR SERVICES. The
district may acquire, construct, finance, operate, or maintain a
project or service authorized under this chapter using any money
available to the district for that purpose.
Sec. 398.203. INVESTMENTS. Tax revenue of the district may
be invested in an obligation that is an authorized investment for
the state. District money other than tax revenue may be invested in
accordance with policies adopted by the board.
Sec. 398.204. ASSESSMENTS. The board of a district may
impose and collect assessments in the manner provided by Subchapter
F, Chapter 375, for any purpose authorized by this chapter in all or
any part of the district.
SUBCHAPTER F. AD VALOREM TAXES
Sec. 398.251. TAX ELECTION REQUIRED. (a) A district may
impose an ad valorem tax on property in the district for the
purposes of this chapter if authorized by a majority of the voters
of the district voting at an election called for that purpose. The
district may order an election to approve the imposition of an ad
valorem tax in the manner provided by this subchapter.
(b) Before a district may order the first election under
this section, the board by order must set:
(1) the date of the election; and
(2) the proposed rate of the ad valorem tax that will
appear on the ballot proposition under Section 398.252.
Sec. 398.252. BALLOT PROPOSITION. If the board orders an
election to approve the imposition of an ad valorem tax, the ballot
for the election shall be printed to permit voting for or against
the proposition: "The imposition of an ad valorem tax in the (name
of district) at a rate not to exceed (rate of tax) cents per $100
valuation of property to be used for district purposes."
Sec. 398.253. RESULTS OF ELECTION. (a) If a majority of
the voters voting in the election favor the imposition of an ad
valorem tax, the board:
(1) shall by order adopt the rate at which the ad
valorem tax will be imposed and enter the result of the election in
its minutes; and
(2) is authorized to impose the tax.
(b) If a majority of the voters voting in the election do not
vote in favor of the imposition of the ad valorem tax, the board
shall declare the measure defeated and enter the result of the
election in its minutes.
Sec. 398.254. ABOLITION OF OR CHANGE IN AD VALOREM TAX
RATE. (a) The board by order may decrease the rate of or abolish
the ad valorem tax imposed by the district or may call an election
to increase or decrease the rate of or abolish the ad valorem tax.
(b) At an election to increase or decrease the ad valorem
tax rate, the ballot shall be printed to permit voting for or
against the proposition: "The (increase or decrease, as applicable)
in the ad valorem tax rate of (name of district) to a rate of (rate
of tax) cents per $100 valuation of taxable property to be used for
district purposes."
(c) At an election to abolish the ad valorem tax imposed by
the district, the ballot shall be printed to permit voting for or
against the proposition: "The abolition of the district ad valorem
tax."
(d) The increase or decrease in the tax rate, or the
abolition of the tax, is effective if approved by a majority of the
voters of the district voting at the election.
(e) The board may not reduce or order an election to reduce
the ad valorem tax rate below the rate necessary to pay the
district's outstanding bonded indebtedness.
Sec. 398.255. USE OF AD VALOREM TAX. The proceeds
attributable to an ad valorem tax imposed in the district under this
subchapter may be used only for a district purpose and may be
pledged as collateral for borrowing money to further those
purposes.
SUBCHAPTER G. BONDS
Sec. 398.301. ISSUANCE OF BONDS. The district may issue
bonds for the purpose of defraying all or part of the cost of any
project for a district purpose.
Sec. 398.302. MANNER OF REPAYMENT OF BONDS. (a) The board
may provide for the payment of principal of and interest and
redemption price on bonds:
(1) from ad valorem taxes;
(2) by pledging all or any part of the revenues, fees,
or other compensation from a project or any part of a project,
including revenues and receipts derived by the district from the
lease or sale of the project;
(3) by pledging all or any part of any grant, donation,
revenue, or income received or to be received from any public or
private source; or
(4) from a combination of such sources.
(b) A district may not authorize bonds secured in whole or
in part by taxes unless a majority of the district's qualified
voters who vote at an election ordered for that purpose approve the
issuance of the bonds.
(c) If a district issues bonds or notes that are payable
wholly from taxes, the board shall, when bonds or notes are
authorized, set a tax rate that is sufficient to pay the principal
of and interest on the bonds or notes as the interest and principal
come due and to provide reserve funds if prescribed in the
resolution authorizing, or the trust indenture securing, the bonds
or notes.
(d) If a district issues bonds or notes that are payable
from taxes and from revenues, income, or receipts of the district,
the board shall, when the bonds or notes are authorized, set a tax
rate that is sufficient to pay the principal of and interest on the
bonds and notes and to create and maintain any reserve funds.
(e) In establishing the rate of the tax to be collected for a
year under Subchapter F, the board shall consider the money that
will be available to pay the principal of and interest on any bonds
or notes issued and to create any reserve funds to the extent and in
the manner permitted by the resolution authorizing, or the trust
indenture securing, the bonds or notes.
Sec. 398.303. USE OF BOND PROCEEDS. The district may use
bond proceeds to:
(1) pay interest on the bonds during and after the
period of the acquisition or construction of a project;
(2) pay administrative and operating expenses;
(3) create a reserve fund for the payment of principal
and interest on the bonds; and
(4) pay all expenses incurred or that will be incurred
in the issuance, sale, and delivery of the bonds.
SUBCHAPTER H. ACCOUNTABILITY
Sec. 398.351. AUDIT. Notwithstanding Section
403.0241(b)(2), Government Code, the board shall transmit records
and other information to the comptroller annually for purposes of
providing the comptroller with information on the district to
include in the Special Purpose District Public Information Database
established under Section 403.0241, Government Code.
Sec. 398.352. PUBLIC MEETINGS. The board shall hold at
least one public meeting each quarter of the calendar year for the
sole purpose of receiving public input on major projects and
initiatives in the district.
SECTION 2. This Act takes effect September 1, 2025.