82R17494 SLB-F
	By: Sheffield	H.B. No. 3845

	A BILL TO BE ENTITLED
	AN ACT
	relating to the powers of the CLL Municipal Utility District No. 1;
	providing authority to levy an assessment, impose a tax, and issue
	bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter A, Chapter 8109, Special District
	Local Laws Code, is amended by adding Sections 8109.0025 and
	8109.0026 to read as follows:
	Sec. 8109.0025.  PURPOSE; DECLARATION OF INTENT.  (a)  The
	district is essential to accomplish the purposes of Sections 52 and
	52-a, Article III, and Section 59, Article XVI, Texas Constitution,
	and other public purposes stated in this chapter.  By creating the
	district, the legislature has established a program to accomplish
	the public purposes set out in Section 52-a, Article III, Texas
	Constitution.
	(b)  The creation of the district is necessary to promote,
	develop, encourage, and maintain employment, commerce,
	transportation, housing, tourism, recreation, the arts,
	entertainment, economic development, safety, and the public
	welfare in the district.
	Sec. 8109.0026.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
	(a)  The district is created to serve a public use and benefit.
	(b)  All land and other property included in the district
	will benefit from the improvements and services to be provided by
	the district under powers conferred by Sections 52 and 52-a,
	Article III, and Section 59, Article XVI, Texas Constitution, and
	other powers granted under this chapter.
	(c)  The creation of the district is in the public interest
	and is essential to:
	(1)  further the public purposes of developing and
	diversifying the economy of the state;
	(2)  eliminate unemployment and underemployment; and
	(3)  develop commerce.
	(d)  The district will:
	(1)  promote the health, safety, and general welfare of
	residents, employers, potential employees, employees, visitors,
	and consumers in the district;
	(2)  provide needed funding for the district to
	preserve, maintain, and enhance the economic health and vitality of
	the district territory as a community and business center; and
	(3)  promote the health, safety, welfare, and enjoyment
	of the public by providing trails, landscaping, and other services
	that are necessary for the restoration, preservation, and
	enhancement of the scenic beauty and environment of the area.
	SECTION 2.  Chapter 8109, Special District Local Laws Code,
	is amended by adding Subchapters D, E, F, G, H, and I to read as
	follows:
	SUBCHAPTER D.  POWERS AND DUTIES
	Sec. 8109.151.  MUNICIPAL MANAGEMENT DISTRICT POWERS.  The
	district has the powers provided by Chapter 375, Local Government
	Code.
	Sec. 8109.152.  EXERCISE OF POWERS OF DEVELOPMENT
	CORPORATION.  The district may exercise the powers of a corporation
	created under Section 380.001(c) or Chapter 501, Local Government
	Code.
	Sec. 8109.153.  AIRPORT. The district may construct,
	acquire, improve, maintain, and operate an airport and improvements
	in aid of the airport.
	Sec. 8109.154.  AUTHORITY FOR ROAD PROJECTS. (a)  Under
	Section 52, Article III, Texas Constitution, the district may
	design, acquire, construct, finance, issue bonds for, improve, and
	convey to this state, a county, or a municipality for operation and
	maintenance macadamized, graveled, or paved roads described by
	Section 54.234, Water Code, or improvements, including storm
	drainage, in aid of those roads.
	(b)  The district may exercise the powers provided by this
	section without submitting a petition to or obtaining approval from
	the Texas Commission on Environmental Quality as required by
	Section 54.234, Water Code.
	Sec. 8109.155.  APPROVAL OF ROAD PROJECT.  (a)  The district
	may not undertake a road project authorized by Section 8109.154
	unless:
	(1)  each county that will operate and maintain the
	road has approved the plans and specifications of the road project,
	if a county will operate and maintain the road; or
	(2)  the Texas Transportation Commission has approved
	the plans and specifications of the road project, if the state will
	operate and maintain the road.
	(b)  Except as provided by Subsection (a), the district is
	not required to obtain approval from the Texas Transportation
	Commission to design, acquire, construct, finance, issue bonds for,
	improve, or convey a road project.
	Sec. 8109.156.  COMPLIANCE WITH MUNICIPAL CONSENT ORDINANCE
	OR RESOLUTION.  The district shall comply with all applicable
	requirements of any ordinance or resolution that is adopted under
	Section 54.016 or 54.0165, Water Code, and that consents to the
	creation of the district or to the inclusion of land in the
	district.
	Sec. 8109.157.  LIMITATION ON USE OF EMINENT DOMAIN. The
	district may not exercise the power of eminent domain outside the
	district to acquire a site or easement for:
	(1)  a road project authorized by Section 8109.154; or
	(2)  a recreational facility as defined by Section
	49.462, Water Code.
	SUBCHAPTER E.  IMPROVEMENT PROJECTS
	Sec. 8109.201.  IMPROVEMENT PROJECTS; SERVICES. The
	district may provide, or it may enter into contracts with a
	governmental or private entity to provide, the improvement projects
	and services described by this subchapter or activities in support
	of or incidental to those projects and services.
	Sec. 8109.202.  BOARD DETERMINATION REQUIRED.  The district
	may not undertake a project under this subchapter unless the board
	determines the project to be necessary to accomplish a public
	purpose of the district.
	Sec. 8109.203.  WATER.  An improvement project may include
	a:
	(1)  wastewater treatment and disposal facility;
	(2)  water quality protection facility; and
	(3)  facility to enhance groundwater recharge.
	Sec. 8109.204.  IRRIGATION AND DRAINAGE.  An improvement
	project may include facilities for irrigation and drainage.
	Sec. 8109.205.  ALTERNATIVE ENERGY.  An improvement project
	may include an alternative energy facility.
	Sec. 8109.206.  SOLID WASTE SERVICES.  An improvement
	project may include solid waste management services, including
	garbage collection, recycling, and composting.
	Sec. 8109.207.  CONVENTION CENTER.  An improvement project
	may include the planning, design, construction, acquisition,
	lease, rental, improvement, maintenance, installation, and
	management of and provision of furnishings for a facility for:
	(1)  a conference, convention, or exhibition;
	(2)  a manufacturer, consumer, or trade show;
	(3)  a civic, community, or institutional event; or
	(4)  an exhibit, display, attraction, special event, or
	seasonal or cultural celebration or holiday.
	Sec. 8109.208.  MISCELLANEOUS DESIGN, CONSTRUCTION, AND
	MAINTENANCE.  In addition to the projects and services described by
	Section 375.112, Local Government Code, an improvement project may
	include the planning, design, construction, improvement, and
	maintenance of:
	(1)  highway right-of-way or transit corridor
	beautification and improvement;
	(2)  a hiking and cycling path or trail;
	(3)  a garden, recreational facility, sports facility,
	open space, scenic area, or related exhibit or preserve; or
	(4)  a storm water detention improvement.
	Sec. 8109.209.  SIMILAR IMPROVEMENT PROJECTS.  An
	improvement project may include a public improvement, facility, or
	service similar to a project described by this subchapter.
	SUBCHAPTER F.  GENERAL FINANCIAL PROVISIONS
	Sec. 8109.251.  ASSESSMENTS. The district may levy and
	collect special assessments in the same manner and for the same
	purposes as a municipal management district as provided in
	Subchapter F, Chapter 375, Local Government Code.
	SUBCHAPTER G.  BONDS AND OTHER OBLIGATIONS
	Sec. 8109.301.  AUTHORITY TO ISSUE BONDS AND OTHER
	OBLIGATIONS.  The district may issue bonds or other obligations
	payable wholly or partly from ad valorem taxes, impact fees,
	revenue, contract payments, grants, hotel occupancy taxes, sales
	and use taxes, other district money, or any combination of those
	sources to pay for any authorized district purpose.
	Sec. 8109.302.  TAXES FOR BONDS.  (a)  At the time the
	district issues bonds payable wholly or partly from ad valorem
	taxes, the board shall provide for the annual imposition of an ad
	valorem tax, without limit as to rate or amount, as required by
	Section 54.601, Water Code.
	(b)  The board shall annually impose the tax while all or
	part of the bonds are outstanding. Sections 54.601 and 54.602,
	Water Code, govern the amount and rate of the tax.
	Sec. 8109.303.  BONDS FOR ROAD PROJECTS. At the time of
	issuance, the total principal amount of bonds or other obligations
	issued or incurred to finance road projects and payable from ad
	valorem taxes may not exceed one-fourth of the assessed value of the real property in the district.
	SUBCHAPTER H. SALES AND USE TAX
	Sec. 8109.351.  APPLICABILITY OF CERTAIN TAX CODE
	PROVISIONS. (a)  Chapter 321, Tax Code, governs the imposition,
	computation, administration, enforcement, and collection of the
	sales and use tax authorized by this subchapter except to the extent
	Chapter 321, Tax Code, is inconsistent with this chapter.
	(b)  A reference in Chapter 321, Tax Code, to a municipality
	or the governing body of a municipality is a reference to the
	district or the board, respectively.
	Sec. 8109.352.  ELECTION; ADOPTION OF TAX. (a) The district
	may adopt a sales and use tax if authorized by a majority of the
	voters of the district voting at an election held for that purpose.
	(b)  The board by order may call an election to authorize the
	adoption of the sales and use tax. The election may be held on any
	uniform election date and in conjunction with any other district
	election.
	(c)  The ballot shall be printed to provide for voting for or
	against the proposition: "Authorization of a sales and use tax in
	the CLL Municipal Utility District No. 1 at a rate not to exceed
	____ percent" (insert rate of one or more increments of one-eighth
	of one percent).
	Sec. 8109.353.  SALES AND USE TAX RATE. (a) Not later than
	the 10th day after the date the results are declared of an election
	held under Section 8109.352, at which the voters approved
	imposition of the tax authorized by this subchapter, the board
	shall determine the initial rate of the tax, which must be in one or
	more increments of one-eighth of one percent.
	(b)  After the election held under Section 8109.352, the
	board may decrease the rate of the tax by one or more increments of
	one-eighth of one percent. The board may not decrease the rate of
	the tax if the decrease would impair the repayment of any
	outstanding debt or obligation payable from the tax.
	(c)  The initial rate of the tax or any rate resulting from
	subsequent decreases may not exceed the lesser of:
	(1)  the maximum rate authorized by the district voters
	at the election held under Section 8109.352; or
	(2)  a rate that, when added to the rates of all sales
	and use taxes imposed by other political subdivisions with
	territory in the district, would result in the maximum combined
	rate prescribed by Section 321.101(f), Tax Code, at any location in
	the district.
	(d)  The board shall notify the comptroller of any changes
	made to the tax rate in the same manner the municipal secretary
	provides notice to the comptroller under Section 321.405(b), Tax
	Code.
	Sec. 8109.354.  USE OF REVENUE. Revenue from the sales and
	use tax imposed under this subchapter is for the use and benefit of
	the district and may be used for any district purpose.
	SUBCHAPTER I. HOTEL OCCUPANCY TAX
	Sec. 8109.401.  APPLICABILITY OF CERTAIN TAX CODE
	PROVISIONS.  (a)  In this subchapter:
	(1)  a reference in Subchapter A, Chapter 351, Tax
	Code, to a municipality is a reference to the district; and
	(2)  a reference in Subchapter A, Chapter 351, Tax
	Code, to the governing body of a municipality is a reference to the
	board.
	(b)  Except as inconsistent with this subchapter, Subchapter
	A, Chapter 351, Tax Code, governs a hotel occupancy tax authorized
	by this subchapter, including the collection of the tax, subject to
	the limitations prescribed by Sections 351.002(b) and (c), Tax
	Code.
	Sec. 8109.402.  TAX AUTHORIZED; USE OF REVENUE.  The
	district may impose a hotel occupancy tax for any purpose
	authorized by Section 351.101, Tax Code.
	Sec. 8109.403.  TAX RATE.  (a) The amount of the hotel
	occupancy tax may not exceed the maximum rate provided by Section
	351.003(a), Tax Code.
	(b)  The district may not adopt a hotel occupancy tax at a
	rate that would cause the combined rate of all hotel occupancy taxes
	imposed by the district and other political subdivisions of this
	state at a location in the district to exceed 15 percent. If a
	political subdivision's adoption of a hotel occupancy tax rate
	causes the combined hotel occupancy tax rate imposed at a location
	in the district to exceed 15 percent, the district's hotel
	occupancy tax rate in the entire district is automatically reduced
	to bring the combined rate imposed at that location down to not more
	than 15 percent.
	(c)  The district shall notify each hotel in the district of
	any change in the hotel occupancy tax rate under this section.
	(d)  Any change in the hotel occupancy tax rate takes effect
	on the first day of the next calendar month following the change.
	SECTION 3.  (a)  The legislature validates and confirms all
	governmental acts and proceedings of the CLL Municipal Utility
	District No. 1 relating to the exclusion of land, the annexation of
	land, and the establishment of the district's boundaries that were
	taken before the effective date of this Act.
	(b)  This section does not apply to:
	(1)  an act or proceeding that was void at the time it
	occurred;
	(2)  an act that was a misdemeanor or felony at the time
	it occurred;
	(3)  an annexation or attempted annexation of land in
	the boundaries or extraterritorial jurisdiction of a municipality
	that occurred without the consent of the municipality; and
	(4)  any matter that on the effective date of this Act:
	(A)  is involved in litigation if the litigation
	ultimately results in the matter being held invalid by a final court
	judgment; or
	(B)  has been held invalid by a final court
	judgment.
	SECTION 4.  (a)  The legal notice of the intention to
	introduce this Act, setting forth the general substance of this
	Act, has been published as provided by law, and the notice and a
	copy of this Act have been furnished to all persons, agencies,
	officials, or entities to which they are required to be furnished
	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
	Government Code.
	(b)  The governor has submitted the notice and Act to the
	Texas Commission on Environmental Quality.
	(c)  The Texas Commission on Environmental Quality has filed
	its recommendations relating to this Act with the governor,
	lieutenant governor, and speaker of the house of representatives
	within the required time.
	(d)  All requirements of the constitution and laws of this
	state and the rules and procedures of the legislature with respect
	to the notice, introduction, and passage of this Act are fulfilled
	and accomplished.
	SECTION 5.  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, 2011.