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A BILL TO BE ENTITLED
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AN ACT
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relating to the qualifications of directors and the use of project |
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funds of certain municipal development districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 377.051, Local Government Code, is |
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amended by adding Subsection (e) to read as follows: |
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(e) Notwithstanding Subsection (d), a person may qualify to |
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serve as a director of a district that is located in a municipality |
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with a population of more than 5,000 and less than 6,000 and that is |
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located wholly in a county with a population of more than 20,000 and |
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less than 25,000 and that borders the Brazos River if the person |
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resides in the independent school district that serves the majority |
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of the district. |
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SECTION 2. Section 377.072, Local Government Code, is |
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amended by amending Subsection (c) and adding Subsection (e) to |
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read as follows: |
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(c) Except as provided by Subsections [Subsection] (d) and |
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(e), the district may use money in the development project fund only |
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to: |
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(1) pay the costs of planning, acquiring, |
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establishing, developing, constructing, or renovating one or more |
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development projects in the district; |
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(2) pay the principal of, interest on, and other costs |
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relating to bonds or other obligations issued by the district or to |
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refund bonds or other obligations; or |
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(3) pay the costs of operating or maintaining one or |
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more development projects during the planning, acquisition, |
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establishment, development, construction, or renovation or while |
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bonds or other obligations for the planning, acquisition, |
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establishment, development, construction, or renovation are |
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outstanding. |
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(e) A district that is located in a municipality with a |
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population of more than 5,000 and less than 6,000 and that is |
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located wholly in a county with a population of more than 20,000 and |
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less than 25,000 and that borders the Brazos River may use money in |
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the development project fund only to: |
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(1) pay the costs of planning, acquiring, |
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establishing, developing, constructing, or renovating one or more |
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development projects inside the county in which the district is |
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located, if the project: |
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(A) accomplishes a public purpose of the |
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district; |
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(B) allows the district to retain control over |
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the money to ensure that the district's public purpose is |
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accomplished and to protect the district's investment; and |
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(C) benefits the district; |
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(2) pay the principal of, interest on, and other costs |
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relating to bonds or other obligations issued by the district or to |
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refund bonds or other obligations; or |
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(3) pay the costs of operating or maintaining one or |
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more development projects during the planning, acquisition, |
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establishment, development, construction, or renovation or while |
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bonds or other obligations for the planning, acquisition, |
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establishment, development, construction, or renovation are |
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outstanding. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |