H.B. No. 2259

	AN ACT
	relating to the Driftwood Economic Development Municipal
	Management District; removing conditions to imposing a tax on
	residential property; providing authority to issue bonds.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 3858.052, Special District Local Laws
	Code, is amended to read as follows:
	Sec. 3858.052.  APPOINTMENT OF DIRECTORS. The board
	consists of the following directors:
	(1)  Position 1:  a person appointed by the
	commissioners court;
	(2)  Position 2:  a person appointed by the
	commissioners court;
	(3)  Position 3:  a person appointed by the city
	council;
	(4)  Position 4:  a person appointed by the city
	council; and
	(5)  Position 5:  a person appointed by the
	commissioners court, who must be the individual, the designee of
	the individual, or the designee of the entity that [who] owns more
	property in the district than any other individual or entity,
	except that if the commissioners court is unable to identify a
	qualified person [qualified for Position 5] who is willing and able
	to serve, the commissioners court shall appoint to the place a
	person who is:
	(A)  at least 18 years old; and
	(B)  a resident of this state.
	SECTION 2.  Subchapter B, Chapter 3858, Special District
	Local Laws Code, is amended by adding Section 3858.057 to read as
	follows:
	Sec. 3858.057.  QUALIFICATIONS OF DIRECTORS; PARTICIPATION
	IN VOTING. (a) Sections 375.063 and 375.072, Local Government
	Code, do not apply to a director.
	(b)  An official or employee of a public entity may serve on
	the board. The common law doctrine of incompatibility does not
	disqualify an official or employee of a public entity from serving
	as a director.
	(c)  A person appointed to serve on the board under this
	chapter is qualified to serve as a director and participate in all
	votes pertaining to the business of the district regardless of any
	other statutory provision to the contrary.
	(d)  A director may participate in discussion and vote on an
	action even if the director is an official or employee of a public
	entity and the action relates to assessments on or contracts with
	the public entity.
	SECTION 3.  Section 3858.102(a), Special District Local Laws
	Code, is amended to read as follows:
	(a)  The district may provide, or it may enter into contracts
	with a governmental or private entity to provide, the following
	types of improvement projects or services or activities in support
	of or incidental to those projects or services:
	(1)  the planning, design, construction, improvement,
	operation, and maintenance of:
	(A)  irrigation facilities and landscaping;
	(B)  highway right-of-way or transit corridor
	beautification and improvement;
	(C)  lighting, banners, and signs;
	(D)  a street or sidewalk;
	(E)  a hiking or cycling path or trail;
	(F)  a park, lake, garden, recreational facility,
	sports facility, open space, scenic area, animal habitat, or
	related exhibit or preserve;
	(G)  a fountain, plaza, or pedestrian mall;
	(H)  a drainage or storm-water detention
	improvement;
	(I)  a wastewater treatment and disposal
	facility;
	(J)  water, wastewater, or drainage facilities or
	services;
	(K)  a water quality protection facility;
	(L) [(K)]  a facility to enhance groundwater
	recharge, including a rainwater collection and harvesting system;
	(M) [(L)]  an alternative energy facility; or
	(N) [(M)]  solid waste management services,
	including garbage collection, recycling, and composting;
	(2)  the planning, design, construction, acquisition,
	lease, rental, improvement, maintenance, installation, and
	management of and provision of furnishings for a facility for:
	(A)  a conference, convention, or exhibition;
	(B)  a manufacturer, consumer, or trade show;
	(C)  a civic, community, or institutional event;
	or
	(D)  an exhibit, display, attraction, special
	event, or seasonal or cultural celebration or holiday; or
	(3)  a special or supplemental service for the
	improvement and promotion of the district or for the protection of
	public health and safety in the district, including:
	(A)  advertising;
	(B)  promotion;
	(C)  tourism;
	(D)  health and sanitation;
	(E)  public safety;
	(F)  security;
	(G)  fire protection or emergency medical
	services;
	(H)  business recruitment;
	(I)  development;
	(J)  elimination of traffic congestion;
	(K)  recreational, educational, or cultural
	improvements, enhancements, and services; [or]
	(L)  water, wastewater, or drainage facilities or
	services; or
	(M)  any similar public improvement, facility, or
	service.
	SECTION 4.  Subchapter C, Chapter 3858, Special District
	Local Laws Code, is amended by adding Section 3858.1025 to read as
	follows:
	Sec. 3858.1025.  ECONOMIC DEVELOPMENT. (a) The district may
	engage in activities that accomplish the economic development
	purposes of the district.
	(b)  The district may establish and provide for the
	administration of one or more programs to promote state or local
	economic development and to stimulate business and commercial
	activity in the district, including programs to:
	(1)  make loans and grants of public money; and
	(2)  provide district personnel and services.
	(c)  The district may create economic development programs
	and exercise the economic development powers that Chapter 380,
	Local Government Code, provides to a municipality.
	SECTION 5.  Section 3858.104(a), Special District Local Laws
	Code, is amended to read as follows:
	(a)  The district may adopt and enforce rules:
	(1)  to administer or operate the district or any
	service provided by the district;
	(2)  for the use, enjoyment, availability, protection,
	security, and maintenance of the district's property and
	facilities; or
	(3)  to provide for public safety and security in the
	district.
	SECTION 6.  Subchapter D, Chapter 3858, Special District
	Local Laws Code, is amended by adding Sections 3858.1521 and
	3858.1522 to read as follows:
	Sec. 3858.1521.  BONDS AND OTHER OBLIGATIONS. (a)  The
	district may issue bonds, notes, or other obligations payable
	wholly or partly from ad valorem taxes, assessments, impact fees,
	revenue, contract payments, grants, or other district money for any
	purpose authorized by this chapter.
	(b)  Notwithstanding Subsection (a), ad valorem taxes may be
	pledged only to pay bonds, notes, or other obligations that are
	issued by the district for purposes authorized under Sections 52
	and 52-a, Article III, or Section 59, Article XVI, Texas
	Constitution.
	Sec. 3858.1522.  ELECTIONS REGARDING BONDS. (a) The
	district may issue, without an election, bonds and other
	obligations secured by revenue from any source other than ad
	valorem taxes.
	(b)  The district must hold an election in the manner
	provided by Chapters 49 and 54, Water Code, to obtain voter approval
	before the district may issue bonds payable from ad valorem taxes.
	SECTION 7.  Section 3858.152, Special District Local Laws
	Code, is repealed.
	SECTION 8.  (a) Section 3858.153(c), Special District Local
	Laws Code, is repealed.
	(b)  This section takes effect January 1, 2016.
	SECTION 9.  The repeal by this Act of Section 3858.153(c),
	Special District Local Laws Code, applies only to ad valorem taxes
	that are imposed for an ad valorem tax year that begins on or after
	January 1, 2016.
	SECTION 10.  (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 11.  Except as otherwise provided by this Act, this
	Act takes effect September 1, 2015.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2259 was passed by the House on May
	15, 2015, by the following vote:  Yeas 134, Nays 5, 2 present, not
	voting; and that the House concurred in Senate amendments to H.B.
	No. 2259 on May 29, 2015, by the following vote:  Yeas 141, Nays 5,
	2 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2259 was passed by the Senate, with
	amendments, on May 27, 2015, by the following vote:  Yeas 28, Nays
	3.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor