89R11351 MCF-F     By: Parker S.B. No. 2828       A BILL TO BE ENTITLED   AN ACT   relating to the creation and operation of a science park district in   certain counties that may impose assessments, fees, and taxes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle C, Title 12, Local Government Code, is   amended by adding Chapter 398 to read as follows:   CHAPTER 398. SCIENCE PARK DISTRICTS   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 398.001.  DEFINITIONS. In this chapter:                (1)  "Board" means the board of directors of a   district.                (2)  "Director" means a member of the board.                (3)  "District" means a science park district created   under this chapter.          Sec. 398.002.  APPLICABILITY. This chapter applies only in   a county:                (1)  with a population of 800,000 or more; or                (2)  adjacent to a county with a population of 800,000   or more.          Sec. 398.003.  PURPOSE; DECLARATION OF INTENT.  (a) The   creation of a science park district under this chapter is essential   to accomplish the purposes of Section 52-a, Article III, Texas   Constitution, and other public purposes stated in this chapter.          (b)  The purpose of a science park district is to:                (1)  promote scientific research and technological   innovation;                (2)  support the establishment and growth of technology   companies;                (3)  promote and encourage commercial development and   workforce development;                (4)  facilitate collaboration between higher   education, the science and technology industry, and government; and                (5)  support the development of infrastructure.          (c)  The district will not act as the agent or   instrumentality of any private interest even though the district   will benefit many private interests as well as the public.   SUBCHAPTER B. CREATION OF DISTRICT; TEMPORARY BOARD          Sec. 398.051.  CREATION OF SCIENCE PARK DISTRICT. (a) The   owner or owners of territory composed of 1,000 or more contiguous   acres may petition the Texas Economic Development and Tourism   Office for creation of a district for that territory.          (b)  A petition described by Subsection (a) must:                (1)  describe the territory to be included in the   proposed district; and                (2)  demonstrate that the territory meets the   requirements of Section 398.052.          (c)  If the Texas Economic Development and Tourism Office   determines that a petition described by Subsection (a) conforms to   the requirements of this chapter and that the creation of the   district would be of benefit to the territory to be included in the   district, the office may approve the creation of the district and   appoint the temporary board in accordance with Section 398.053.          (d)  If the Texas Economic Development and Tourism Office   finds that the petition does not conform to the requirements of this   chapter or that the creation of the district is not of benefit to   the territory in the proposed district, the office shall either   deny the petition or require petitioners to amend the petition.          Sec. 398.052.  REQUIREMENTS FOR DISTRICT TERRITORY. The   territory for which a district may be created under this chapter   must:                (1)  have access to reliable, high-capacity electric   generation or storage;                (2)  have access to abundant and sustainable water   sources;                (3)  be located near a major transportation network,   including a major highway, rail line, seaport, or international   airport; and                (4)  include a minimum of 1,000 contiguous acres.          Sec. 398.053.  TEMPORARY BOARD.  (a) After the Texas   Economic Development and Tourism Office approves the creation of a   district, the office shall request the appointment of a temporary   board of directors for the district to include:                (1)  three temporary directors appointed by the   governor;                (2)  three temporary directors appointed by the   lieutenant governor; and                (3)  three temporary directors appointed by the speaker   of the house of representatives.          (b)  A temporary director appointed under this section must   have knowledge or experience in at least one of the following areas:                (1)  scientific research or technological innovation;                (2)  economic policy;                (3)  real estate and infrastructure analysis;                (4)  environment and sustainability;                (5)  risk assessment;                (6)  finance, including cost-benefit analyses, capital   expenditures, and return on investment calculations;                (7)  public and private stakeholder engagement;                (8)  land or infrastructure development; or                (9)  workforce or higher education.          (c)  The temporary board shall:                (1)  develop a strategic plan for the district;                (2)  approve initial projects and resource allocation;                (3)  establish policies for the operation and   development of the district; and                (4)  submit to the governor, comptroller of public   accounts, and members of the legislature a report detailing the   activities, expenditures, and progress of the district on the first   and second anniversaries of the creation of the district.          (d)  The temporary board has all of the powers and duties of a   board elected under Subchapter C.          (e)  The temporary directors shall serve staggered terms of   one or two years. At the first meeting of the temporary board, the   directors shall draw lots to determine which four directors serve a   term of one year and which five directors serve a term of two years.          (f)  A vacancy in the office of temporary director shall be   filled by appointment by the appropriate appointing official.          (g)  An official who appoints a temporary director may   appoint a successor temporary director if the term of the director   expires before the election called for the director's successor   under Section 398.101 is held.   SUBCHAPTER C. DISTRICT ADMINISTRATION          Sec. 398.101.  BOARD OF DIRECTORS; TERMS.  (a) The district   is governed by a board of nine elected directors.          (b)  Directors serve staggered two-year terms.          (c)  The temporary board shall call an election for four   director positions to be held on a uniform election date under   Section 41.001, Election Code, as soon as practicable after the   district is created.  The board shall call an election for the   remaining five director positions to be held on an authorized   uniform election date under Section 41.001, Election Code, in the   year following the first election.           (d)  A temporary director, or a successor temporary   director, serves until the date a successor for the director is   elected.          (e)  The election shall be held in accordance with the   Election Code, to the extent not inconsistent with this chapter.          (f)  A vacancy in the office of director shall be filled by   the remaining members of the board for the unexpired term.          Sec. 398.102.  QUALIFICATIONS. To serve as a director, a   person must be at least 18 years old and:                (1)  a qualified voter of the county in which the   district is located;                (2)  an owner of stock, whether beneficial or   otherwise, of a corporate owner of property in the district;                (3)  an owner of a beneficial interest in a trust that   owns property in the district; or                (4)  an agent, employee, or tenant of a person covered   by Subdivision (1), (2), or (3).          Sec. 398.103.  BOND. The board may require an officer or   employee to execute a bond payable to the district and conditioned   on the faithful performance of the person's duties.          Sec. 398.104.  COMPENSATION; EXPENSES.  (a) A director   serves without compensation but may be reimbursed for a reasonable   and necessary expense incurred in performing an official duty.          (b)  To receive reimbursement under Subsection (a):                (1)  the director must report the expense to the board;   and                (2)  the board must approve the expense.          Sec. 398.105.  REMOVAL OF DIRECTOR. A majority of the   directors, after notice and hearing, may remove a director for   misconduct or failure to carry out the director's duties.          Sec. 398.106.  OFFICERS. The directors shall select from   among the directors a president, a vice president, a secretary, and   any other officers the board considers necessary.          Sec. 398.107.  MEETINGS.  (a) A board shall hold regular   meetings at times to be fixed by the board or special meetings as   necessary.          (b)  The board shall hold its meetings at a designated   meeting place.          Sec. 398.108.  QUORUM; OFFICERS' DUTIES.  (a) Five   directors constitute a quorum and a concurrence of five is   sufficient in any matter relating to the business of the district.          (b)  The president presides at all board meetings and is the   chief executive officer of the district.          (c)  The vice president acts as the president if the   president is incapacitated or absent from a meeting.          (d)  The secretary acts as the president if both the   president and vice president are incapacitated or absent from a   meeting.          (e)  The secretary is responsible for ensuring that all the   records and books of the district are properly kept.          (f)  The board may appoint another director or an employee as   assistant or deputy secretary to assist the secretary. The   assistant or deputy secretary may certify the authenticity of any   record of the district.          Sec. 398.109.  BYLAWS. The board may adopt bylaws to govern:                (1)  the time, place, and manner of conducting board   meetings;                (2)  the powers, duties, and responsibilities of the   board's officers and employees;                (3)  the disbursement of money by a check, draft, or   warrant;                (4)  the appointment and authority of board committees;                (5)  the keeping of accounts and other records; and                (6)  any other matter the board considers appropriate.   SUBCHAPTER D. POWERS AND DUTIES          Sec. 398.151.  GENERAL POWERS.  (a) A district has the   powers necessary or convenient to carry out and effect the purposes   and provisions of this chapter, including:                (1)  a power granted to a municipal management district   by Section 375.092 or 375.096;                (2)  operating education and training programs in   collaboration with a university system or public technical   institute in this state;                (3)  facilitating internships, cooperative education   programs, and workforce development initiatives; and                (4)  entering into agreements and otherwise   collaborating with:                      (A)  universities and research institutions in   this state;                      (B)  private corporations or companies operating   domestically and internationally, other than a company owned by an   individual who is a citizen of a country designated as a country of   particular concern in the United States secretary of state's   designations under the International Religious Freedom Act of 1998   (22 U.S.C. Section 6401 et seq.) in effect on September 1, 2025;                      (C)  an agency of the United States that   regulates, provides funding for, or promotes science and   technology; and                      (D)  a state agency that regulates, provides   funding for, or promotes economic development and workforce   development.          (b)  A district may accept gifts, grants, and donations from   any source, including private and nonprofit organizations.          Sec. 398.152.  DISTRICT PRIORITIES.  (a) A district shall   prioritize the development of state-of-the-art facilities,   including:                (1)  research and development centers;                (2)  technology incubators and accelerators;                (3)  advanced manufacturing facilities; and                (4)  office space for new businesses and technology   firms.          (b)  The district shall adopt guidelines for district   projects to:                (1)  minimize environmental impacts;                (2)  promote energy efficiency;                (3)  ensure that businesses operating in the district   are not significantly negatively affected by environmental or   physical externalities created by a district project, such as   vibrations; and                (4)  balance the effective functioning of businesses in   the district and national security concerns associated with any   district project that requires:                      (A)  a secure supply chain;                      (B)  protection of infrastructure and other   critical resources; or                      (C)  security from threats of terrorism,   cyberattacks, and natural disasters.          Sec. 398.153.  REAL PROPERTY RESTRICTIONS.  (a) The   district may adopt restrictions on the use of real property in the   district.          (b)  A restriction adopted under this section must be   compatible with and equal to or more stringent than a restriction   adopted by each municipality or county that overlaps the territory   in which the restriction is adopted.          Sec. 398.154.  ELIGIBILITY FOR INCLUSION IN SPECIAL   ZONES.  (a) All or any part of the area of the district is eligible   to be included in:                (1)  a tax increment reinvestment zone created under   Chapter 311, Tax Code; or                (2)  a tax abatement reinvestment zone created under   Chapter 312, Tax Code.          (b)  If a municipality or county creates a tax increment   reinvestment zone described by Subsection (a), the municipality or   county and the board of directors of the zone, by contract with the   district, may grant money deposited in the tax increment fund to the   district to be used by the district for the purposes permitted for   money granted to a corporation under Section 380.002(b), including   the right to pledge the money as security for any bonds issued by   the district for a project.          Sec. 398.155.  ANNUAL REPORT. The district shall submit to   the governor, comptroller of public accounts, and members of the   legislature an annual report detailing the activities,   expenditures, and progress of the district.          Sec. 382.156.  NO EMINENT DOMAIN POWER. The district may not   exercise the power of eminent domain.   SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS          Sec. 398.201.  DISBURSEMENTS AND TRANSFERS OF MONEY. The   board by resolution shall establish the number of directors'   signatures and the procedure required for a disbursement or   transfer of district money.          Sec. 398.202.  MONEY USED FOR PROJECTS OR SERVICES. The   district may acquire, construct, finance, operate, or maintain a   project or service authorized under this chapter using any money   available to the district for that purpose.          Sec. 398.203.  INVESTMENTS. Tax revenue of the district may   be invested in an obligation that is an authorized investment for   the state. District money other than tax revenue may be invested in   accordance with policies adopted by the board.          Sec. 398.204.  ASSESSMENTS. The board of a district may   impose and collect assessments in the manner provided by Subchapter   F, Chapter 375, for any purpose authorized by this chapter in all or   any part of the district.   SUBCHAPTER F. AD VALOREM TAXES          Sec. 398.251.  TAX ELECTION REQUIRED.  (a) A district may   impose an ad valorem tax on property in the district for the   purposes of this chapter if authorized by a majority of the voters   of the district voting at an election called for that purpose. The   district may order an election to approve the imposition of an ad   valorem tax in the manner provided by this subchapter.          (b)  Before a district may order the first election under   this section, the board by order must set:                (1)  the date of the election; and                (2)  the proposed rate of the ad valorem tax that will   appear on the ballot proposition under Section 398.252.          Sec. 398.252.  BALLOT PROPOSITION. If the board orders an   election to approve the imposition of an ad valorem tax, the ballot   for the election shall be printed to permit voting for or against   the proposition: "The imposition of an ad valorem tax in the (name   of district) at a rate not to exceed (rate of tax) cents per $100   valuation of property to be used for district purposes."          Sec. 398.253.  RESULTS OF ELECTION.  (a) If a majority of   the voters voting in the election favor the imposition of an ad   valorem tax, the board:                (1)  shall by order adopt the rate at which the ad   valorem tax will be imposed and enter the result of the election in   its minutes; and                (2)  is authorized to impose the tax.          (b)  If a majority of the voters voting in the election do not   vote in favor of the imposition of the ad valorem tax, the board   shall declare the measure defeated and enter the result of the   election in its minutes.          Sec. 398.254.  ABOLITION OF OR CHANGE IN AD VALOREM TAX   RATE.  (a) The board by order may decrease the rate of or abolish   the ad valorem tax imposed by the district or may call an election   to increase or decrease the rate of or abolish the ad valorem tax.          (b)  At an election to increase or decrease the ad valorem   tax rate, the ballot shall be printed to permit voting for or   against the proposition: "The (increase or decrease, as applicable)   in the ad valorem tax rate of (name of district) to a rate of (rate   of tax) cents per $100 valuation of taxable property to be used for   district purposes."          (c)  At an election to abolish the ad valorem tax imposed by   the district, the ballot shall be printed to permit voting for or   against the proposition: "The abolition of the district ad valorem   tax."          (d)  The increase or decrease in the tax rate, or the   abolition of the tax, is effective if approved by a majority of the   voters of the district voting at the election.          (e)  The board may not reduce or order an election to reduce   the ad valorem tax rate below the rate necessary to pay the   district's outstanding bonded indebtedness.          Sec. 398.255.  USE OF AD VALOREM TAX. The proceeds   attributable to an ad valorem tax imposed in the district under this   subchapter may be used only for a district purpose and may be   pledged as collateral for borrowing money to further those   purposes.   SUBCHAPTER G. BONDS          Sec. 398.301.  ISSUANCE OF BONDS. The district may issue   bonds for the purpose of defraying all or part of the cost of any   project for a district purpose.          Sec. 398.302.  MANNER OF REPAYMENT OF BONDS.  (a) The board   may provide for the payment of principal of and interest and   redemption price on bonds:                (1)  from ad valorem taxes;                (2)  by pledging all or any part of the revenues, fees,   or other compensation from a project or any part of a project,   including revenues and receipts derived by the district from the   lease or sale of the project;                (3)  by pledging all or any part of any grant, donation,   revenue, or income received or to be received from any public or   private source; or                (4)  from a combination of such sources.          (b)  A district may not authorize bonds secured in whole or   in part by taxes unless a majority of the district's qualified   voters who vote at an election ordered for that purpose approve the   issuance of the bonds.          (c)  If a district issues bonds or notes that are payable   wholly from taxes, the board shall, when bonds or notes are   authorized, set a tax rate that is sufficient to pay the principal   of and interest on the bonds or notes as the interest and principal   come due and to provide reserve funds if prescribed in the   resolution authorizing, or the trust indenture securing, the bonds   or notes.          (d)  If a district issues bonds or notes that are payable   from taxes and from revenues, income, or receipts of the district,   the board shall, when the bonds or notes are authorized, set a tax   rate that is sufficient to pay the principal of and interest on the   bonds and notes and to create and maintain any reserve funds.          (e)  In establishing the rate of the tax to be collected for a   year under Subchapter F, the board shall consider the money that   will be available to pay the principal of and interest on any bonds   or notes issued and to create any reserve funds to the extent and in   the manner permitted by the resolution authorizing, or the trust   indenture securing, the bonds or notes.          Sec. 398.303.  USE OF BOND PROCEEDS. The district may use   bond proceeds to:                (1)  pay interest on the bonds during and after the   period of the acquisition or construction of a project;                (2)  pay administrative and operating expenses;                (3)  create a reserve fund for the payment of principal   and interest on the bonds; and                (4)  pay all expenses incurred or that will be incurred   in the issuance, sale, and delivery of the bonds.   SUBCHAPTER H. ACCOUNTABILITY          Sec. 398.351.  AUDIT. Notwithstanding Section   403.0241(b)(2), Government Code, the board shall transmit records   and other information to the comptroller annually for purposes of   providing the comptroller with information on the district to   include in the Special Purpose District Public Information Database   established under Section 403.0241, Government Code.          Sec. 398.352.  PUBLIC MEETINGS. The board shall hold at   least one public meeting each quarter of the calendar year for the   sole purpose of receiving public input on major projects and   initiatives in the district.          SECTION 2.  This Act takes effect September 1, 2025.