Texas 2025 - 89th Regular

Texas House Bill HB112 Compare Versions

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Old	New	Differences
1	1	89R11351 MCF-F
2	2	By: Button H.B. No. 112
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation and operation of a science park district in
10	10	certain counties that may impose assessments, fees, and taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle C, Title 12, Local Government Code, is
13	13	amended by adding Chapter 398 to read as follows:
14	14	CHAPTER 398. SCIENCE PARK DISTRICTS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 398.001. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the board of directors of a
18	18	district.
19	19	(2) "Director" means a member of the board.
20	20	(3) "District" means a science park district created
21	21	under this chapter.
22	22	Sec. 398.002. APPLICABILITY. This chapter applies only in
23	23	a county:
24	24	(1) with a population of 800,000 or more; or
25	25	(2) adjacent to a county with a population of 800,000
26	26	or more.
27	27	Sec. 398.003. PURPOSE; DECLARATION OF INTENT. (a) The
28	28	creation of a science park district under this chapter is essential
29	29	to accomplish the purposes of Section 52-a, Article III, Texas
30	30	Constitution, and other public purposes stated in this chapter.
31	31	(b) The purpose of a science park district is to:
32	32	(1) promote scientific research and technological
33	33	innovation;
34	34	(2) support the establishment and growth of technology
35	35	companies;
36	36	(3) promote and encourage commercial development and
37	37	workforce development;
38	38	(4) facilitate collaboration between higher
39	39	education, the science and technology industry, and government; and
40	40	(5) support the development of infrastructure.
41	41	(c) The district will not act as the agent or
42	42	instrumentality of any private interest even though the district
43	43	will benefit many private interests as well as the public.
44	44	SUBCHAPTER B. CREATION OF DISTRICT; TEMPORARY BOARD
45	45	Sec. 398.051. CREATION OF SCIENCE PARK DISTRICT. (a) The
46	46	owner or owners of territory composed of 1,000 or more contiguous
47	47	acres may petition the Texas Economic Development and Tourism
48	48	Office for creation of a district for that territory.
49	49	(b) A petition described by Subsection (a) must:
50	50	(1) describe the territory to be included in the
51	51	proposed district; and
52	52	(2) demonstrate that the territory meets the
53	53	requirements of Section 398.052.
54	54	(c) If the Texas Economic Development and Tourism Office
55	55	determines that a petition described by Subsection (a) conforms to
56	56	the requirements of this chapter and that the creation of the
57	57	district would be of benefit to the territory to be included in the
58	58	district, the office may approve the creation of the district and
59	59	appoint the temporary board in accordance with Section 398.053.
60	60	(d) If the Texas Economic Development and Tourism Office
61	61	finds that the petition does not conform to the requirements of this
62	62	chapter or that the creation of the district is not of benefit to
63	63	the territory in the proposed district, the office shall either
64	64	deny the petition or require petitioners to amend the petition.
65	65	Sec. 398.052. REQUIREMENTS FOR DISTRICT TERRITORY. The
66	66	territory for which a district may be created under this chapter
67	67	must:
68	68	(1) have access to reliable, high-capacity electric
69	69	generation or storage;
70	70	(2) have access to abundant and sustainable water
71	71	sources;
72	72	(3) be located near a major transportation network,
73	73	including a major highway, rail line, seaport, or international
74	74	airport; and
75	75	(4) include a minimum of 1,000 contiguous acres.
76	76	Sec. 398.053. TEMPORARY BOARD. (a) After the Texas
77	77	Economic Development and Tourism Office approves the creation of a
78	78	district, the office shall request the appointment of a temporary
79	79	board of directors for the district to include:
80	80	(1) three temporary directors appointed by the
81	81	governor;
82	82	(2) three temporary directors appointed by the
83	83	lieutenant governor; and
84	84	(3) three temporary directors appointed by the speaker
85	85	of the house of representatives.
86	86	(b) A temporary director appointed under this section must
87	87	have knowledge or experience in at least one of the following areas:
88	88	(1) scientific research or technological innovation;
89	89	(2) economic policy;
90	90	(3) real estate and infrastructure analysis;
91	91	(4) environment and sustainability;
92	92	(5) risk assessment;
93	93	(6) finance, including cost-benefit analyses, capital
94	94	expenditures, and return on investment calculations;
95	95	(7) public and private stakeholder engagement;
96	96	(8) land or infrastructure development; or
97	97	(9) workforce or higher education.
98	98	(c) The temporary board shall:
99	99	(1) develop a strategic plan for the district;
100	100	(2) approve initial projects and resource allocation;
101	101	(3) establish policies for the operation and
102	102	development of the district; and
103	103	(4) submit to the governor, comptroller of public
104	104	accounts, and members of the legislature a report detailing the
105	105	activities, expenditures, and progress of the district on the first
106	106	and second anniversaries of the creation of the district.
107	107	(d) The temporary board has all of the powers and duties of a
108	108	board elected under Subchapter C.
109	109	(e) The temporary directors shall serve staggered terms of
110	110	one or two years. At the first meeting of the temporary board, the
111	111	directors shall draw lots to determine which four directors serve a
112	112	term of one year and which five directors serve a term of two years.
113	113	(f) A vacancy in the office of temporary director shall be
114	114	filled by appointment by the appropriate appointing official.
115	115	(g) An official who appoints a temporary director may
116	116	appoint a successor temporary director if the term of the director
117	117	expires before the election called for the director's successor
118	118	under Section 398.101 is held.
119	119	SUBCHAPTER C. DISTRICT ADMINISTRATION
120	120	Sec. 398.101. BOARD OF DIRECTORS; TERMS. (a) The district
121	121	is governed by a board of nine elected directors.
122	122	(b) Directors serve staggered two-year terms.
123	123	(c) The temporary board shall call an election for four
124	124	director positions to be held on a uniform election date under
125	125	Section 41.001, Election Code, as soon as practicable after the
126	126	district is created. The board shall call an election for the
127	127	remaining five director positions to be held on an authorized
128	128	uniform election date under Section 41.001, Election Code, in the
129	129	year following the first election.
130	130	(d) A temporary director, or a successor temporary
131	131	director, serves until the date a successor for the director is
132	132	elected.
133	133	(e) The election shall be held in accordance with the
134	134	Election Code, to the extent not inconsistent with this chapter.
135	135	(f) A vacancy in the office of director shall be filled by
136	136	the remaining members of the board for the unexpired term.
137	137	Sec. 398.102. QUALIFICATIONS. To serve as a director, a
138	138	person must be at least 18 years old and:
139	139	(1) a qualified voter of the county in which the
140	140	district is located;
141	141	(2) an owner of stock, whether beneficial or
142	142	otherwise, of a corporate owner of property in the district;
143	143	(3) an owner of a beneficial interest in a trust that
144	144	owns property in the district; or
145	145	(4) an agent, employee, or tenant of a person covered
146	146	by Subdivision (1), (2), or (3).
147	147	Sec. 398.103. BOND. The board may require an officer or
148	148	employee to execute a bond payable to the district and conditioned
149	149	on the faithful performance of the person's duties.
150	150	Sec. 398.104. COMPENSATION; EXPENSES. (a) A director
151	151	serves without compensation but may be reimbursed for a reasonable
152	152	and necessary expense incurred in performing an official duty.
153	153	(b) To receive reimbursement under Subsection (a):
154	154	(1) the director must report the expense to the board;
155	155	and
156	156	(2) the board must approve the expense.
157	157	Sec. 398.105. REMOVAL OF DIRECTOR. A majority of the
158	158	directors, after notice and hearing, may remove a director for
159	159	misconduct or failure to carry out the director's duties.
160	160	Sec. 398.106. OFFICERS. The directors shall select from
161	161	among the directors a president, a vice president, a secretary, and
162	162	any other officers the board considers necessary.
163	163	Sec. 398.107. MEETINGS. (a) A board shall hold regular
164	164	meetings at times to be fixed by the board or special meetings as
165	165	necessary.
166	166	(b) The board shall hold its meetings at a designated
167	167	meeting place.
168	168	Sec. 398.108. QUORUM; OFFICERS' DUTIES. (a) Five
169	169	directors constitute a quorum and a concurrence of five is
170	170	sufficient in any matter relating to the business of the district.
171	171	(b) The president presides at all board meetings and is the
172	172	chief executive officer of the district.
173	173	(c) The vice president acts as the president if the
174	174	president is incapacitated or absent from a meeting.
175	175	(d) The secretary acts as the president if both the
176	176	president and vice president are incapacitated or absent from a
177	177	meeting.
178	178	(e) The secretary is responsible for ensuring that all the
179	179	records and books of the district are properly kept.
180	180	(f) The board may appoint another director or an employee as
181	181	assistant or deputy secretary to assist the secretary. The
182	182	assistant or deputy secretary may certify the authenticity of any
183	183	record of the district.
184	184	Sec. 398.109. BYLAWS. The board may adopt bylaws to govern:
185	185	(1) the time, place, and manner of conducting board
186	186	meetings;
187	187	(2) the powers, duties, and responsibilities of the
188	188	board's officers and employees;
189	189	(3) the disbursement of money by a check, draft, or
190	190	warrant;
191	191	(4) the appointment and authority of board committees;
192	192	(5) the keeping of accounts and other records; and
193	193	(6) any other matter the board considers appropriate.
194	194	SUBCHAPTER D. POWERS AND DUTIES
195	195	Sec. 398.151. GENERAL POWERS. (a) A district has the
196	196	powers necessary or convenient to carry out and effect the purposes
197	197	and provisions of this chapter, including:
198	198	(1) a power granted to a municipal management district
199	199	by Section 375.092 or 375.096;
200	200	(2) operating education and training programs in
201	201	collaboration with a university system or public technical
202	202	institute in this state;
203	203	(3) facilitating internships, cooperative education
204	204	programs, and workforce development initiatives; and
205	205	(4) entering into agreements and otherwise
206	206	collaborating with:
207	207	(A) universities and research institutions in
208	208	this state;
209	209	(B) private corporations or companies operating
210	210	domestically and internationally, other than a company owned by an
211	211	individual who is a citizen of a country designated as a country of
212	212	particular concern in the United States secretary of state's
213	213	designations under the International Religious Freedom Act of 1998
214	214	(22 U.S.C. Section 6401 et seq.) in effect on September 1, 2025;
215	215	(C) an agency of the United States that
216	216	regulates, provides funding for, or promotes science and
217	217	technology; and
218	218	(D) a state agency that regulates, provides
219	219	funding for, or promotes economic development and workforce
220	220	development.
221	221	(b) A district may accept gifts, grants, and donations from
222	222	any source, including private and nonprofit organizations.
223	223	Sec. 398.152. DISTRICT PRIORITIES. (a) A district shall
224	224	prioritize the development of state-of-the-art facilities,
225	225	including:
226	226	(1) research and development centers;
227	227	(2) technology incubators and accelerators;
228	228	(3) advanced manufacturing facilities; and
229	229	(4) office space for new businesses and technology
230	230	firms.
231	231	(b) The district shall adopt guidelines for district
232	232	projects to:
233	233	(1) minimize environmental impacts;
234	234	(2) promote energy efficiency;
235	235	(3) ensure that businesses operating in the district
236	236	are not significantly negatively affected by environmental or
237	237	physical externalities created by a district project, such as
238	238	vibrations; and
239	239	(4) balance the effective functioning of businesses in
240	240	the district and national security concerns associated with any
241	241	district project that requires:
242	242	(A) a secure supply chain;
243	243	(B) protection of infrastructure and other
244	244	critical resources; or
245	245	(C) security from threats of terrorism,
246	246	cyberattacks, and natural disasters.
247	247	Sec. 398.153. REAL PROPERTY RESTRICTIONS. (a) The
248	248	district may adopt restrictions on the use of real property in the
249	249	district.
250	250	(b) A restriction adopted under this section must be
251	251	compatible with and equal to or more stringent than a restriction
252	252	adopted by each municipality or county that overlaps the territory
253	253	in which the restriction is adopted.
254	254	Sec. 398.154. ELIGIBILITY FOR INCLUSION IN SPECIAL
255	255	ZONES. (a) All or any part of the area of the district is eligible
256	256	to be included in:
257	257	(1) a tax increment reinvestment zone created under
258	258	Chapter 311, Tax Code; or
259	259	(2) a tax abatement reinvestment zone created under
260	260	Chapter 312, Tax Code.
261	261	(b) If a municipality or county creates a tax increment
262	262	reinvestment zone described by Subsection (a), the municipality or
263	263	county and the board of directors of the zone, by contract with the
264	264	district, may grant money deposited in the tax increment fund to the
265	265	district to be used by the district for the purposes permitted for
266	266	money granted to a corporation under Section 380.002(b), including
267	267	the right to pledge the money as security for any bonds issued by
268	268	the district for a project.
269	269	Sec. 398.155. ANNUAL REPORT. The district shall submit to
270	270	the governor, comptroller of public accounts, and members of the
271	271	legislature an annual report detailing the activities,
272	272	expenditures, and progress of the district.
273	273	Sec. 382.156. NO EMINENT DOMAIN POWER. The district may not
274	274	exercise the power of eminent domain.
275	275	SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
276	276	Sec. 398.201. DISBURSEMENTS AND TRANSFERS OF MONEY. The
277	277	board by resolution shall establish the number of directors'
278	278	signatures and the procedure required for a disbursement or
279	279	transfer of district money.
280	280	Sec. 398.202. MONEY USED FOR PROJECTS OR SERVICES. The
281	281	district may acquire, construct, finance, operate, or maintain a
282	282	project or service authorized under this chapter using any money
283	283	available to the district for that purpose.
284	284	Sec. 398.203. INVESTMENTS. Tax revenue of the district may
285	285	be invested in an obligation that is an authorized investment for
286	286	the state. District money other than tax revenue may be invested in
287	287	accordance with policies adopted by the board.
288	288	Sec. 398.204. ASSESSMENTS. The board of a district may
289	289	impose and collect assessments in the manner provided by Subchapter
290	290	F, Chapter 375, for any purpose authorized by this chapter in all or
291	291	any part of the district.
292	292	SUBCHAPTER F. AD VALOREM TAXES
293	293	Sec. 398.251. TAX ELECTION REQUIRED. (a) A district may
294	294	impose an ad valorem tax on property in the district for the
295	295	purposes of this chapter if authorized by a majority of the voters
296	296	of the district voting at an election called for that purpose. The
297	297	district may order an election to approve the imposition of an ad
298	298	valorem tax in the manner provided by this subchapter.
299	299	(b) Before a district may order the first election under
300	300	this section, the board by order must set:
301	301	(1) the date of the election; and
302	302	(2) the proposed rate of the ad valorem tax that will
303	303	appear on the ballot proposition under Section 398.252.
304	304	Sec. 398.252. BALLOT PROPOSITION. If the board orders an
305	305	election to approve the imposition of an ad valorem tax, the ballot
306	306	for the election shall be printed to permit voting for or against
307	307	the proposition: "The imposition of an ad valorem tax in the (name
308	308	of district) at a rate not to exceed (rate of tax) cents per $100
309	309	valuation of property to be used for district purposes."
310	310	Sec. 398.253. RESULTS OF ELECTION. (a) If a majority of
311	311	the voters voting in the election favor the imposition of an ad
312	312	valorem tax, the board:
313	313	(1) shall by order adopt the rate at which the ad
314	314	valorem tax will be imposed and enter the result of the election in
315	315	its minutes; and
316	316	(2) is authorized to impose the tax.
317	317	(b) If a majority of the voters voting in the election do not
318	318	vote in favor of the imposition of the ad valorem tax, the board
319	319	shall declare the measure defeated and enter the result of the
320	320	election in its minutes.
321	321	Sec. 398.254. ABOLITION OF OR CHANGE IN AD VALOREM TAX
322	322	RATE. (a) The board by order may decrease the rate of or abolish
323	323	the ad valorem tax imposed by the district or may call an election
324	324	to increase or decrease the rate of or abolish the ad valorem tax.
325	325	(b) At an election to increase or decrease the ad valorem
326	326	tax rate, the ballot shall be printed to permit voting for or
327	327	against the proposition: "The (increase or decrease, as applicable)
328	328	in the ad valorem tax rate of (name of district) to a rate of (rate
329	329	of tax) cents per $100 valuation of taxable property to be used for
330	330	district purposes."
331	331	(c) At an election to abolish the ad valorem tax imposed by
332	332	the district, the ballot shall be printed to permit voting for or
333	333	against the proposition: "The abolition of the district ad valorem
334	334	tax."
335	335	(d) The increase or decrease in the tax rate, or the
336	336	abolition of the tax, is effective if approved by a majority of the
337	337	voters of the district voting at the election.
338	338	(e) The board may not reduce or order an election to reduce
339	339	the ad valorem tax rate below the rate necessary to pay the
340	340	district's outstanding bonded indebtedness.
341	341	Sec. 398.255. USE OF AD VALOREM TAX. The proceeds
342	342	attributable to an ad valorem tax imposed in the district under this
343	343	subchapter may be used only for a district purpose and may be
344	344	pledged as collateral for borrowing money to further those
345	345	purposes.
346	346	SUBCHAPTER G. BONDS
347	347	Sec. 398.301. ISSUANCE OF BONDS. The district may issue
348	348	bonds for the purpose of defraying all or part of the cost of any
349	349	project for a district purpose.
350	350	Sec. 398.302. MANNER OF REPAYMENT OF BONDS. (a) The board
351	351	may provide for the payment of principal of and interest and
352	352	redemption price on bonds:
353	353	(1) from ad valorem taxes;
354	354	(2) by pledging all or any part of the revenues, fees,
355	355	or other compensation from a project or any part of a project,
356	356	including revenues and receipts derived by the district from the
357	357	lease or sale of the project;
358	358	(3) by pledging all or any part of any grant, donation,
359	359	revenue, or income received or to be received from any public or
360	360	private source; or
361	361	(4) from a combination of such sources.
362	362	(b) A district may not authorize bonds secured in whole or
363	363	in part by taxes unless a majority of the district's qualified
364	364	voters who vote at an election ordered for that purpose approve the
365	365	issuance of the bonds.
366	366	(c) If a district issues bonds or notes that are payable
367	367	wholly from taxes, the board shall, when bonds or notes are
368	368	authorized, set a tax rate that is sufficient to pay the principal
369	369	of and interest on the bonds or notes as the interest and principal
370	370	come due and to provide reserve funds if prescribed in the
371	371	resolution authorizing, or the trust indenture securing, the bonds
372	372	or notes.
373	373	(d) If a district issues bonds or notes that are payable
374	374	from taxes and from revenues, income, or receipts of the district,
375	375	the board shall, when the bonds or notes are authorized, set a tax
376	376	rate that is sufficient to pay the principal of and interest on the
377	377	bonds and notes and to create and maintain any reserve funds.
378	378	(e) In establishing the rate of the tax to be collected for a
379	379	year under Subchapter F, the board shall consider the money that
380	380	will be available to pay the principal of and interest on any bonds
381	381	or notes issued and to create any reserve funds to the extent and in
382	382	the manner permitted by the resolution authorizing, or the trust
383	383	indenture securing, the bonds or notes.
384	384	Sec. 398.303. USE OF BOND PROCEEDS. The district may use
385	385	bond proceeds to:
386	386	(1) pay interest on the bonds during and after the
387	387	period of the acquisition or construction of a project;
388	388	(2) pay administrative and operating expenses;
389	389	(3) create a reserve fund for the payment of principal
390	390	and interest on the bonds; and
391	391	(4) pay all expenses incurred or that will be incurred
392	392	in the issuance, sale, and delivery of the bonds.
393	393	SUBCHAPTER H. ACCOUNTABILITY
394	394	Sec. 398.351. AUDIT. Notwithstanding Section
395	395	403.0241(b)(2), Government Code, the board shall transmit records
396	396	and other information to the comptroller annually for purposes of
397	397	providing the comptroller with information on the district to
398	398	include in the Special Purpose District Public Information Database
399	399	established under Section 403.0241, Government Code.
400	400	Sec. 398.352. PUBLIC MEETINGS. The board shall hold at
401	401	least one public meeting each quarter of the calendar year for the
402	402	sole purpose of receiving public input on major projects and
403	403	initiatives in the district.
404	404	SECTION 2. This Act takes effect September 1, 2025.