H.B. No. 3845
 
 
 
 
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.  NO TOLL ROADS.  The district may not
  construct, acquire, maintain, or operate a toll road.
         Sec. 8109.157.  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. 8109.158.  LIMITATION ON USE OF EMINENT DOMAIN. (a)  
  The district may only exercise the power of eminent domain
  described by Chapters 49 and 54, Water Code.
         (b)  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.
         (c)  The district may not exercise the power of eminent
  domain for an improvement project.
  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.  SOLID WASTE SERVICES.  An improvement
  project may include solid waste management services, including
  garbage collection, recycling, and composting.
         Sec. 8109.206.  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. 8109.207.  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. 8109.208.  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.  ELECTIONS REGARDING TAXES AND BONDS. (a)  
  The district must hold an election in the manner provided by
  Subchapter L, Chapter 375, Local Government Code, to obtain voter
  approval before the district may impose an ad valorem tax or issue
  bonds payable from ad valorem taxes.
         (b)  Section 375.243, Local Government Code, does not apply
  to the district.
         (c)  All or any part of any facilities or improvements that
  may be acquired by a district by the issuance of its bonds may be
  submitted as a single proposition or as several propositions to be
  voted on at the election.
         Sec. 8109.303.  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. 8109.304.  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3845 was passed by the House on May
  13, 2011, by the following vote:  Yeas 139, Nays 5, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3845 on May 27, 2011, by the following vote:  Yeas 141, Nays 0,
  2
  present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3845 was passed by the Senate, with
  amendments, on May 25, 2011, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor