Parker Bill Lets 1,000-Acre Owners Seek A Science Park District

The text as introduced · 3,238 words

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.