S.B. No. 1014

	AN ACT
	relating to The Woodlands Township.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 8(e), Chapter 289, Acts of the 73rd
	Legislature, Regular Session, 1993, is amended to read as follows:
	(e)  A vacancy in the office of director shall be filled by
	appointment of a qualified individual by a majority vote of the
	remaining directors[, except that if the number of directors for
	any reason is less than four, on petition of a resident of or owner
	of real property in the district, the commission shall appoint the
	required number of qualified individuals to fill the vacancies].
	SECTION 2.  Section 11B, Chapter 289, Acts of the 73rd
	Legislature, Regular Session, 1993, is amended by adding Subsection
	(b) to read as follows:
	(b)  Notwithstanding Subsection (a) of this section, if at
	least 99 percent of the territory of the district is incorporated
	and the district is dissolved in the manner provided by Section 14A
	of this Act, the district or municipality shall apply the proceeds
	from a hotel occupancy tax imposed under Section 11A of this Act:
	(1)  for the purposes described by Section 351.101, Tax
	Code; or
	(2)  as may otherwise be required in connection with
	the district's debt and other obligations existing before the
	incorporation to which the proceeds from a hotel occupancy tax
	imposed under Section 11A of this Act have been pledged.
	SECTION 3.  Section 11C(p), Chapter 289, Acts of the 73rd
	Legislature, Regular Session, 1993, is amended to read as follows:
	(p)  Sections 311.002 and 311.014 through 311.017, Tax Code,
	apply to the district, except that for purposes of this subsection:
	(1)  a reference in those sections to a municipality
	means the district and the development zone;
	(2)  a reference in those sections to an ordinance
	means an order;
	(3)  a reference in those sections to a reinvestment
	zone means a development zone;
	(4)  a reference in those sections to an agreement made
	under Subsection (b), Section 311.010, Tax Code, means an agreement
	made under Subsection (l) of this section;
	(5)  "development" means initial development;
	(6)  "redevelopment" means substantial redevelopment;
	(7)  Section 311.016, Tax Code, applies only if ad
	valorem taxes are used, in whole or in part, in payment of project
	costs of a development zone; and
	(8)  a development zone created without a duration or
	date of termination may be dissolved by a two-thirds vote of the
	board of directors of the district or of the governing body of a
	municipality or other form of local government, other than the
	development zone, succeeding to the principal assets, powers,
	functions, and liabilities of the district, but only if:
	(A)  the development zone has no outstanding
	indebtedness or other obligations; or
	(B)  the assets, powers, functions, and
	liabilities, and any outstanding indebtedness or obligations, of
	the development zone are expressly assumed by the district or the
	succeeding municipality or local government.
	SECTION 4.  Chapter 289, Acts of the 73rd Legislature,
	Regular Session, 1993, is amended by adding Section 14A to read as
	follows:
	Sec. 14A.  INCORPORATION. (a)  This section prevails over
	any other provision of this Act that conflicts with or is
	inconsistent with this section.
	(b)  Except as provided by Subsections (c) and (f) of this
	section, and subject to any applicable limitations of the
	constitution of this state, if the incorporation of at least 99
	percent of the territory of the district and the transfer of the
	rights, powers, privileges, duties, purposes, functions, and
	responsibilities of the district and the district's authority to
	issue bonds and impose a tax to the municipality are approved by a
	majority of the voters voting in an election held for that purpose,
	including an election described by Section 9(h)(2) of this Act:
	(1)  the assets, liabilities, obligations, rights,
	powers, privileges, duties, purposes, functions, and
	responsibilities of the district and the district's authority to
	issue bonds and impose a tax are transferred to the municipality;
	and
	(2)  the district is dissolved.
	(c)  If on the date the incorporation of the territory of the
	district is approved at an election described by Subsection (b) of
	this section the district owes any debt that cannot be transferred
	to the municipality, the district is continued until the debt is
	retired or is restructured in a manner that the debt may be
	transferred to the municipality.
	(d)  If the conditions described by Subsection (c) of this
	section are met:
	(1)  the board shall adopt an order certifying that the
	conditions have been met; and
	(2)  on the effective date of the order:
	(A)  the assets, liabilities, obligations,
	rights, powers, privileges, duties, purposes, functions, and
	responsibilities of the district and the district's authority to
	issue bonds and impose a tax are transferred to the municipality;
	and
	(B)  the district is dissolved.
	(e)  In addition to any other restructuring methods
	permitted by law, the district may restructure its outstanding debt
	for the purpose of transferring the debt to the municipality by
	issuing refunding bonds secured by:
	(1)  a limited pledge of ad valorem tax revenue not
	greater than that authorized to be levied by the municipality;
	(2)  a pledge of one or more other sources of revenue
	available to the district that are also available to the
	municipality under this section or general law; or
	(3)  a pledge of a combination of revenues described by
	Subdivisions (1) and (2) of this subsection.
	(f)  The transfer of assets, liabilities, obligations,
	rights, powers, privileges, duties, purposes, functions, and
	responsibilities of the district and the district's authority to
	issue bonds and impose a tax to the municipality under this section
	is effective regardless of whether the boundaries of the
	municipality are coterminous with the boundaries of the district,
	unless the transfer would materially impair the security for a debt
	transferred to the municipality.  If the transfer would materially
	impair the security for a debt transferred to the municipality, the
	debt must be restructured in the manner provided by this section
	before the transfer may occur.
	SECTION 5.  Subtitle X, Title 6, Special District Local Laws
	Code, is amended by adding Chapter 11011 to read as follows:
	CHAPTER 11011.  THE WOODLANDS TOWNSHIP
	Sec. 11011.001.  DEFINITION. In this chapter, "district"
	means The Woodlands Township.
	Sec. 11011.002.  LAW GOVERNING DISTRICT. The district is
	governed by this chapter and Chapter 289, Acts of the 73rd
	Legislature, Regular Session, 1993.
	Sec. 11011.003.  DISSOLUTION OF DISTRICT. (a)  If at least
	99 percent of the territory of the district is incorporated and the
	district is dissolved in the manner provided by Section 14A,
	Chapter 289, Acts of the 73rd Legislature, Regular Session, 1993,
	only the following sections of Chapter 289, Acts of the 73rd
	Legislature, Regular Session, 1993, apply to the municipality in
	addition to any applicable general law provisions, a reference in
	those sections to the district means the municipality, and a
	reference in those sections to the board or board of directors means
	the governing body of the municipality:
	(1)  Sections 6(a) and (c);
	(2)  Sections 7(a), (b), (c), (e), (f), (g), (h), (i),
	(j), (l), (n), (o), (p), (q), (r), (t), (u), (v), (w), (y), (z), and
	(aa);
	(3)  Section 7H;
	(4)  Sections 9(h)(3), (4), and (5);
	(5)  Section 11;
	(6)  Section 11A;
	(7)  Section 11B;
	(8)  Section 11B-1;
	(9)  Section 11C;
	(10)  Sections 12A(a), (c), (d), (e), and (f); and
	(11)  Section 13.
	(b)  The remaining provisions of Chapter 289, Acts of the
	73rd Legislature, Regular Session, 1993, do not apply to the
	municipality after the dissolution of the district.
	SECTION 6.  (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, one of the required recipients, 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)  The general law relating to consent by political
	subdivisions to the creation of districts with conservation,
	reclamation, and road powers and the inclusion of land in those
	districts has been complied with.
	(e)  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 have been
	fulfilled and accomplished.
	SECTION 7.  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, 2017.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1014 passed the Senate on
	April 25, 2017, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendment on May 27, 2017, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1014 passed the House, with
	amendment, on May 24, 2017, by the following vote: Yeas 146,
	Nays 0, two present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor