By:  Bivins                                           S.B. No. 1696
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the creation of development districts in certain
    1-2  counties; authorizing certain taxes, the issuance of bonds, and the
    1-3  exercise of eminent domain.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Title 44, Revised Statutes, is amended by adding
    1-6  Article 2372d-9 to read as follows:
    1-7        Art. 2372d-9.  COUNTY DEVELOPMENT DISTRICTS
    1-8                    ARTICLE I.  GENERAL PROVISIONS
    1-9        Sec. 1.01.  SHORT TITLE.  This Act may be cited as the County
   1-10  Development District Act.
   1-11        Sec. 1.02.  LEGISLATIVE INTENT.  The intent of the
   1-12  legislature is to further the public purpose of developing and
   1-13  diversifying the economy of the state by providing incentives for
   1-14  the location and development of projects in certain counties to
   1-15  attract visitors and tourists.
   1-16        Sec. 1.03.  LEGISLATIVE FINDINGS.  The legislature finds
   1-17  that:
   1-18              (1)  small and medium-sized counties in Texas are in
   1-19  need of incentives for the development of public improvements to
   1-20  attract visitors and tourists to such counties, and that such
   1-21  counties are at a disadvantage in competing with counties in other
   1-22  states for the location and development of projects that attract
   1-23  visitors and tourists by virtue of the availability and prevalent
    2-1  use in other states of financial incentives;
    2-2              (2)  that the means and measures authorized by this Act
    2-3  are in the public interest and serve a public purpose of the state
    2-4  in promoting the economic welfare of the citizens of the state by
    2-5  providing incentives for the location and development in certain
    2-6  Texas counties of projects that attract visitors and tourists and
    2-7  that result in employment and economic activity; and
    2-8              (3)  the creation of development districts is essential
    2-9  to the accomplishment of Section 52-a, Article III, Texas
   2-10  Constitution, and to the accomplishment of the other public
   2-11  purposes stated in this Act and further serves the purpose of
   2-12  Section 59, Article XVI, and Section 52, Article III, Texas
   2-13  Constitution.
   2-14        Sec. 1.04.  DEFINITIONS.  In this Act:
   2-15              (1)  "District" means a county development district
   2-16  created under this Act.
   2-17              (2)  "Board" means the board of directors of the
   2-18  district.
   2-19              (3)  "Director" means a member of the board.
   2-20              (4)  "Commissioners court" means the governing body of
   2-21  the county in which the district is located.
   2-22              (5)  "County" means the county in which the district is
   2-23  located.
   2-24              (6)  "Project" has the same meaning as that term is
   2-25  defined to mean in Section 4B(a)(2), Development Corporation Act of
    3-1  1979 (Article 5190.6, Vernon's Texas Civil Statutes).
    3-2              (7)  "Cost" has the same meaning as that term is
    3-3  defined to mean in Section 2(4), Development Corporation Act of
    3-4  1979 (Article 5190.6, Vernon's Texas Civil Statutes).
    3-5              (8)  "Bonds" means bonds, notes, and other obligations.
    3-6        Sec. 1.05.  COUNTIES AUTHORIZED TO CREATE DISTRICTS.  The
    3-7  commissioners court in a county with a population of not more than
    3-8  400,000 according to the most recent federal decennial census may,
    3-9  on petition of the owners of land in a proposed county, commence
   3-10  the creation of a county development district.  The creation of the
   3-11  district is subject to a confirmation election held as provided by
   3-12  Article 2 of this Act.
   3-13                   ARTICLE 2.  CREATION OF DISTRICTS
   3-14        Sec. 2.01.  PETITION OF LANDOWNERS.  To create a district, a
   3-15  petition requesting creation shall be filed with the county
   3-16  commissioners court of the county in which all of the land in the
   3-17  proposed district is located.  The petition shall be accompanied by
   3-18  a sworn statement indicating consent to creation signed by the
   3-19  holders of fee simple title of all of the land within the proposed
   3-20  district.
   3-21        Sec. 2.02.  CONTENTS OF PETITION.  The petition shall:
   3-22              (1)  describe the boundaries of the proposed district
   3-23  by metes and bounds or by lot and block number, if there is a
   3-24  recorded map or plat and survey of the area;
   3-25              (2)  include a name of the district which shall include
    4-1  the name of the county followed by the words Development District
    4-2  No. ____;
    4-3              (3)  include the names of five persons who are willing
    4-4  and qualified to serve as temporary directors of the proposed
    4-5  district;
    4-6              (4)  state the general nature of the work proposed to
    4-7  be done and the cost of the project as then estimated by the
    4-8  petitioners; and
    4-9              (5)  state the necessity and feasibility of the
   4-10  proposed district and whether the district will serve the public
   4-11  purpose of attracting visitors and tourists to the county.
   4-12        Sec. 2.03.  HEARING ON PETITION.  Not later than the 60th day
   4-13  after the date a petition is received, the commissioners court
   4-14  shall fix a date, time, and place at which the petition shall be
   4-15  heard and shall issue notice of the date, time, place, and subject
   4-16  matter of the hearing.  The notice shall inform all persons of
   4-17  their right to appear and present evidence and testify for or
   4-18  against the creation of the district.
   4-19        Sec. 2.04.  NOTICE OF HEARING.  At least 30 days before the
   4-20  date set for the hearing, notice of the hearing shall be mailed to
   4-21  the developer who signed the petition and the landowner of all the
   4-22  land in the district and shall be published in a newspaper with
   4-23  general circulation in the county in which the proposed district is
   4-24  located.
   4-25        Sec. 2.05.  HEARING.  At the hearing, the commissioners court
    5-1  shall examine the petition to ascertain its sufficiency, and any
    5-2  person interested may appear before the commission to offer
    5-3  testimony on the sufficiency of the petition and whether or not the
    5-4  district should be created.
    5-5        Sec. 2.06.  GRANTING OR REFUSING PETITION.  (a)  After the
    5-6  hearing, if it is found that the petition conforms to the
    5-7  requirements of Section 2.02 of this Act and that the creation of
    5-8  the district and the proposed project is feasible and necessary and
    5-9  would serve the public purpose of attracting visitors and tourists
   5-10  to the county, the commissioners court shall so find and enter an
   5-11  order creating the district.
   5-12        (b)  If the commissioners court finds that the petition does
   5-13  not conform to the requirements of Section 2.02 of this Act or that
   5-14  the creation of the district and the proposed project is not
   5-15  feasible and necessary and would not serve the purpose of
   5-16  attracting visitors and tourists to the county, the commissioners
   5-17  court shall so find by its order and deny the petition.
   5-18        Sec. 2.07.  TEMPORARY DIRECTORS; VACANCY IN OFFICE.  If the
   5-19  commissioners court grants the petition, it shall appoint to serve
   5-20  as temporary directors of the district five persons who are
   5-21  qualified under this Act to serve as directors.  A vacancy in the
   5-22  office of temporary director shall be filled by appointment by the
   5-23  commissioners court.
   5-24        Sec. 2.08.  QUALIFICATION OF TEMPORARY DIRECTORS.  Each
   5-25  temporary director shall execute a bond in accordance with the
    6-1  provisions of Section 3.09 of this Act and shall take an oath of
    6-2  office, and the board shall meet and organize.
    6-3        Sec. 2.09.  CONFIRMATION AND SALES AND USE TAX ELECTION.  The
    6-4  temporary board of directors shall conduct an election within the
    6-5  boundaries of the district to confirm the creation of the district
    6-6  and authorize a sales and use tax in conformity with this Act.
    6-7        Sec. 2.10.  ELECTION ORDER.  An order calling an election
    6-8  under Section 2.09 of this Act must state:
    6-9              (1)  the nature of the election, including the
   6-10  proposition that is to appear on the ballot;
   6-11              (2)  the date of the election;
   6-12              (3)  the hours during which the polls will be open;
   6-13              (4)  the location of the polling places; and
   6-14              (5)  the proposed rate of the sales and use tax for the
   6-15  district.
   6-16        Sec. 2.11.  NOTICE.  The temporary directors shall give
   6-17  notice of the confirmation and sales and use tax election by
   6-18  publishing a substantial copy of the election order in a newspaper
   6-19  with general circulation in the county in which the proposed
   6-20  district is located once a week for two consecutive weeks.  The
   6-21  first publication must appear at least 14 days before the date set
   6-22  for the election.
   6-23        Sec. 2.12.  CONDUCT OF ELECTION.  (a)  The election shall be
   6-24  held in accordance with the provisions of the Election Code, to the
   6-25  extent not inconsistent with this Act.
    7-1        (b)  The ballot shall be printed to permit voting for or
    7-2  against the proposition:  "The creation of _____________ County
    7-3  Development District No. ______ and the adoption of a proposed
    7-4  local sales and use tax rate of ____ (the rate specified in the
    7-5  election order) to be used for the promotion and development of
    7-6  tourism."
    7-7        Sec. 2.13.  RESULTS OF ELECTION.  (a)  After the confirmation
    7-8  and sales and use tax election, the presiding judge shall make
    7-9  returns of the result to the temporary board of directors.  The
   7-10  temporary board of directors shall canvass the returns and declare
   7-11  the results.
   7-12        (b)  If a majority of the votes cast in the election favor
   7-13  the creation of the district and the adoption of the sales and use
   7-14  tax, then the temporary board shall declare that the district is
   7-15  created and shall declare the amount of the local sales and use tax
   7-16  adopted and enter the result on its minutes.  If a majority of the
   7-17  votes cast in the election are against the creation of the district
   7-18  and the adoption of the sales and use tax, the temporary board
   7-19  shall declare that the proposition to create the district was
   7-20  defeated and enter the result in its minutes.
   7-21        (c)  A certified copy of the minute order declaring that the
   7-22  district is created and the local sales and use tax adopted and
   7-23  including the rate of the sales and use tax, or declaring that the
   7-24  proposition to create the district was defeated, shall be sent to
   7-25  the commissioners court, the comptroller, and any taxing entity by
    8-1  certified or registered mail.  Such order also shall show the date
    8-2  of the election, the proposition on which the vote was held, the
    8-3  total number of votes cast for or against the proposition, and the
    8-4  number of votes by which the proposition was approved.
    8-5                  ARTICLE 3.  DISTRICT ADMINISTRATION
    8-6        Sec. 3.01.  BOARD OF DIRECTORS.  (a)  A district is governed
    8-7  by a board of five directors appointed by the county commissioners
    8-8  of the county in which the district is located.  The temporary
    8-9  directors appointed under Section 2.07 of this Act shall become
   8-10  permanent directors of the district provided that the creation of
   8-11  the district is confirmed at the confirmation election.
   8-12        (b)  Directors serve staggered four-year terms that expire
   8-13  September 1.  Following confirmation of the district at the
   8-14  election, the temporary directors shall draw lots to determine:
   8-15              (1)  the two directors to serve terms that expire on
   8-16  September 1 of the second year following creation of the district;
   8-17  and
   8-18              (2)  the three directors to serve terms that expire on
   8-19  September 1 of the fourth year following creation of the district.
   8-20        Sec. 3.02.  QUALIFICATIONS FOR DIRECTORS.  To be qualified to
   8-21  serve as a director, a person shall be at least 21 years old, a
   8-22  resident citizen of the State of Texas, and a qualified voter
   8-23  within the county in which the district is located.
   8-24        Sec. 3.03.  PERSONS DISQUALIFIED FROM SERVING.  Section
   8-25  50.026, Water Code, relating to disqualification of directors,
    9-1  shall apply to directors of districts created under this Act.
    9-2        Sec. 3.04.  VACANCIES ON THE BOARD.  A vacancy in the office
    9-3  of director shall be filled by appointment of the commissioners
    9-4  court.
    9-5        Sec. 3.05.  REMOVAL OF DIRECTOR.  The governing body of the
    9-6  commissioners court, after notice and hearing, may remove a
    9-7  director for misconduct or failure to carry out the director's
    9-8  duties on petition by a majority of the remaining directors.
    9-9        Sec. 3.06.  ORGANIZATION OF BOARD.  After each appointment of
   9-10  directors by the commissioners court, and after the directors have
   9-11  qualified by taking the proper oath, they shall organize by
   9-12  electing a president, a vice president, a secretary, and any other
   9-13  officers as in the judgment of the board are considered necessary.
   9-14        Sec. 3.07.  QUORUM; OFFICERS' DUTIES; MANAGEMENT OF DISTRICT.
   9-15  Sections 54.107, 54.108, 54.111, and 54.118, Water Code, relating
   9-16  to quorum, officers' duties, and management of the district, shall
   9-17  govern the board of directors of a district created under this Act.
   9-18        Sec. 3.08.  MEETINGS AND NOTICE.  (a)  The board shall
   9-19  designate and establish a district office in the county.
   9-20        (b)  The board may establish regular meetings to conduct
   9-21  district business and may hold special meetings at other times as
   9-22  the business of a district requires.
   9-23        (c)  Notice of the time, place, and purpose of any meeting of
   9-24  the board shall be given by posting at a place convenient to the
   9-25  public within the district.  A copy of the notice shall be
   10-1  furnished to the clerk or clerks of the county in which the
   10-2  district is located, who shall post them on a bulletin board in the
   10-3  county courthouse used for such purpose.
   10-4        (d)  Except as herein provided the provisions of the open
   10-5  meetings law, Chapter 551, Government Code, shall be applicable to
   10-6  meetings of the board of directors.  Any interested person may
   10-7  attend any meeting of the board.
   10-8        Sec. 3.09.  DIRECTOR'S COMPENSATION; BOND AND OATH OF OFFICE.
   10-9  A director is not entitled to receive compensation for service on
  10-10  the board.  Sections 375.067, 375.069, and 375.070, Local
  10-11  Government Code, apply to directors of a district created under
  10-12  this Act.
  10-13        Sec. 3.10.  GOVERNMENTAL AGENCY; SUITS.  (a)  A district,
  10-14  when created and confirmed, may, through its directors, sue and be
  10-15  sued in any and all courts of this state in the name of the
  10-16  district.  Service of process in any suit may be had by serving any
  10-17  two directors.
  10-18        (b)  A district is a governmental agency, a body politic and
  10-19  corporate, and a political subdivision of the state.  Section
  10-20  375.004, Local Government Code, applies to a district created under
  10-21  this Act.
  10-22                     ARTICLE 4.  POWERS AND DUTIES
  10-23        Sec. 4.01.  POWERS.  (a)  A district shall have the power to
  10-24  acquire and dispose of projects and shall have all of the other
  10-25  powers, authority, rights, and duties which will permit
   11-1  accomplishment of the purposes for which the district was created.
   11-2        (b)  The district shall have the power to provide for general
   11-3  promotion and tourist advertising of the district and its vicinity
   11-4  and to conduct a marketing program to attract visitors, any of
   11-5  which may be conducted by the district pursuant to contracts for
   11-6  professional services with persons or organizations selected by the
   11-7  district.
   11-8        (c)  The district shall have the powers of a municipal
   11-9  management district created under Chapter 375, Local Government
  11-10  Code, to the extent not inconsistent with this Act.
  11-11        Sec. 4.02.  COMPETITIVE BIDDING; CONTRACT AWARD.  Sections
  11-12  375.221 and 375.223, Local Government Code, apply to a district
  11-13  created under this Act.  Notwithstanding any other provision of
  11-14  this Act to the contrary, any contract between the district and a
  11-15  governmental entity or nonprofit corporation created under the
  11-16  Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
  11-17  Civil Statutes) shall not be subject to the competitive bidding
  11-18  requirement of this Act.
  11-19        Sec. 4.03.  EMINENT DOMAIN.  A district not located within
  11-20  the corporate limits of a municipality may exercise the power of
  11-21  eminent domain to acquire land or interests in land within the
  11-22  district deemed necessary by the board of directors of the district
  11-23  for the purpose of providing water and sewer services to an
  11-24  authorized project.  The right of eminent domain shall be exercised
  11-25  in the manner provided in Chapter 21, Property Code.
   12-1                 ARTICLE 5.  GENERAL FISCAL PROVISIONS
   12-2        Sec. 5.01.  EXPENDITURES.  A district's money may be
   12-3  disbursed only by check, draft, order, or other instrument which
   12-4  shall be signed by at least three directors.  The general manager,
   12-5  treasurer, or other employee of the district when authorized by
   12-6  resolution of the board may sign checks, drafts, orders, or other
   12-7  instruments on any district operation account and these need not be
   12-8  signed by anyone else.
   12-9        Sec. 5.02.  PURPOSES FOR BORROWING MONEY.  The district may
  12-10  borrow money for any corporate purpose or combination of corporate
  12-11  purposes.
  12-12        Sec. 5.03.  REPAYMENT OF ORGANIZATIONAL EXPENSES.  The
  12-13  district's directors are authorized to pay all costs and expenses
  12-14  necessarily incurred in the creation and organization of a
  12-15  district, the cost of investigation and making plans, the cost of
  12-16  the engineer's report, project designer fees, legal fees, and other
  12-17  incidental expenses and to reimburse any person for money advanced
  12-18  for these purposes.  These payments may be made from money obtained
  12-19  from the issuance of notes or the sale of bonds first issued by the
  12-20  district or out of other revenues of the district.
  12-21                     ARTICLE 6.  ISSUANCE OF BONDS
  12-22        Sec. 6.01.  ISSUANCE OF BONDS.  The district may issue bonds
  12-23  for the purpose of defraying all or part of the cost of any project
  12-24  as provided in this Act.  Sections 375.201 through 375.208,
  12-25  inclusive, Local Government Code, shall apply to a district created
   13-1  under this Act to the extent not inconsistent with this Act.
   13-2        Sec. 6.02.  MANNER OF REPAYMENT OF BONDS.  The board may
   13-3  provide for the payment of principal of and interest and redemption
   13-4  price on bonds from taxes; by pledging all or any part of the
   13-5  designated revenues, license fees, or other compensation from a
   13-6  project or any part thereof, including revenues and receipts
   13-7  derived by the district from the lease or sale of the project, or
   13-8  by pledging all or any part of any grant, donation, revenues, or
   13-9  income received or to be received from any public or private
  13-10  source; or from a combination of such sources.
  13-11        Sec. 6.03.  USE OF BOND PROCEEDS.  The district may use bond
  13-12  proceeds to pay interest on the bonds during and after the period
  13-13  of the acquisition or construction of a project, to pay
  13-14  administrative and operating expenses, to create a reserve fund for
  13-15  the payment of principal and interest on the bonds, and to pay all
  13-16  expenses incurred and to be incurred in the issuance, sale, and
  13-17  delivery of the bonds.
  13-18                           ARTICLE 7.  TAXES
  13-19        Sec. 7.01.  SALES AND USE TAX.  (a)  A district may levy a
  13-20  sales and use tax for the benefit of the district if authorized by
  13-21  a majority of the qualified voters of the district voting at an
  13-22  election called and held for that purpose.  The sales and use tax,
  13-23  if adopted, does not count toward the limitation imposed by Chapter
  13-24  323, Tax Code (County Sales and Use Tax Act), on any sales and use
  13-25  tax that has been levied by the county.
   14-1        (b)  If a district adopts the tax, there is imposed a tax on
   14-2  the receipts from the sale at retail of taxable items within the
   14-3  district at a rate of up to one-half of one percent.  For purposes
   14-4  of this section, the term "taxable items" includes all items
   14-5  subject to any sales and use tax that is imposed by the county in
   14-6  which the district is located if the county has imposed a sales and
   14-7  use tax.  There is also imposed an excise tax on the use, storage,
   14-8  or other consumption within the district of taxable items
   14-9  purchased, leased, or rented from a retailer during the period that
  14-10  the tax is effective within the district.  The rate of the excise
  14-11  tax is the same as the rate of the sales tax portion of the tax
  14-12  applied to the sales price of the taxable items and is included in
  14-13  the sales tax.
  14-14        (c)  Chapter 323, Tax Code (County Sales and Use Tax Act), to
  14-15  the extent not inconsistent with this Act, governs the imposition,
  14-16  computation, administration, and governance of the tax under this
  14-17  section, except that Subsections (b) and (e), Section 323.101, and
  14-18  Sections 323.209, 323.401 through 323.406, and 323.505 do not
  14-19  apply.  Chapter 323, Tax Code (County Sales and Use Tax Act), does
  14-20  not apply to the use and allocation of revenues under this Act.  In
  14-21  applying the procedures under Chapter 323, Tax Code (County Sales
  14-22  and Use Tax Act), the district's name shall be substituted for "the
  14-23  county" and "board of directors" is substituted for "commissioners
  14-24  court."
  14-25        (d)  The permissible rates for a local sales and use tax
   15-1  levied under this Act are one-fourth of one percent, three-eighths
   15-2  of one percent, and one-half of one percent.
   15-3        (e)  The board by order may decrease or abolish the local
   15-4  sales and use tax rate or may call an election to increase,
   15-5  decrease, or abolish the local sales and use tax rate.
   15-6        (f)  At the election, the ballots shall be prepared to permit
   15-7  voting for or against the proposition:  "The increase (decrease) of
   15-8  the local sales and use tax rate of (name of district) to
   15-9  (percentage) to be used for the promotion and development of
  15-10  tourism" or "The abolition of the district sales and use tax used
  15-11  for the promotion and development of tourism."  The increase or
  15-12  decrease in the tax rate is effective if it is approved by a
  15-13  majority of the votes cast.  In calling and holding the election,
  15-14  the board shall use the procedures for the confirmation and tax
  15-15  election set forth in Article 2 of this Act.
  15-16        (g)  Taxes collected under this section may be used only for
  15-17  the purposes for which the district was created, and the district
  15-18  may pledge the revenue derived from the taxes imposed under this
  15-19  section to the payment of bonds issued by the district.
  15-20        (h)  A county development district may adopt a tax under this
  15-21  section only if as a result of adoption of the tax the combined
  15-22  rate of all local sales and use taxes imposed by political
  15-23  subdivisions having territory in the district will not exceed two
  15-24  percent.  If, as a result of the levy of or increase in a sales and
  15-25  use tax by a municipality in which there is located a district with
   16-1  an existing sales and use tax, or as a result of the annexation by
   16-2  a municipality of the territory in a district with an existing
   16-3  sales and use tax, the overlapping local sales and use taxes in the
   16-4  area within the district will exceed two percent, then the
   16-5  district's sales and use tax rate shall automatically be reduced to
   16-6  a rate that when added to the combined rate of local sales and use
   16-7  taxes will equal two percent.  If a district's tax rate is so
   16-8  reduced, the municipality shall make payments to the district equal
   16-9  to the amounts that would have been collected by the district had
  16-10  the municipality not levied or increased its sales and use tax or
  16-11  annexed the area within the district, less amounts that the
  16-12  district collects following the city's levy of or increase in its
  16-13  sales and use tax or annexation of the area within the district.
  16-14  Such payment shall be made by the municipality to the district
  16-15  within 10 days of receipt of the money from the comptroller's
  16-16  office and shall continue only for so long as any bonds of the
  16-17  district are outstanding.
  16-18              ARTICLE 8.  ADDING AND EXCLUDING TERRITORY;
  16-19                CONSOLIDATING AND DISSOLVING DISTRICTS
  16-20        Sec. 8.01.  ADDING AND EXCLUDING LAND FROM THE DISTRICT.
  16-21  (a)  Before the board issues bonds, the board may, on its own
  16-22  motion or on request of a landowner in the district, petition the
  16-23  county commissioners for the addition of land to or exclusion of
  16-24  land from the district.
  16-25        (b)  If the commissioners court unanimously determines from
   17-1  the evidence that the best interests of the persons and property in
   17-2  the district will be served by adding or excluding land, the
   17-3  commissioners court shall enter in its records the appropriate
   17-4  findings and order adding or excluding land.
   17-5        Sec. 8.02.  DISSOLUTION OF DISTRICT.  (a)  A district may be
   17-6  dissolved only as provided by this section.
   17-7        (b)  The board of directors may petition the commissioners
   17-8  court to dissolve the district if a majority of the board finds at
   17-9  any time (1) before the authorization of bonds or the final lending
  17-10  of its credit, that the proposed undertaking is impracticable or
  17-11  cannot be successfully and beneficially accomplished, or (2) that
  17-12  all bonds of the district or other debts of the district have been
  17-13  paid and the purposes of the district have been accomplished.
  17-14        (c)  On receipt of a petition from the board for dissolution
  17-15  of the district, the county commissioners shall hold a hearing as
  17-16  provided in Article 2 of this Act.
  17-17        (d)  If the commissioners court unanimously determines from
  17-18  the evidence that the best interests of the county and the owners
  17-19  of property and interests in property within the district will be
  17-20  served by dissolving the district, the commissioners court shall
  17-21  enter in its records the appropriate findings and order dissolving
  17-22  the district.  Otherwise the commissioners court shall enter its
  17-23  order providing that the district has not been dissolved.  On
  17-24  dissolution of the district, funds and property of the district, if
  17-25  any, shall be transferred to the commissioners court.
   18-1        Sec. 8.03.  DISSOLUTION OF DISTRICT UPON AGREEMENT WITH
   18-2  MUNICIPALITY.  A district may be dissolved by agreement between the
   18-3  governing body of a municipality and the board of directors of a
   18-4  district if all of the territory within the district is located
   18-5  within or annexed by the municipality.  The agreement shall require
   18-6  the municipality to acquire all of the funds, property, and other
   18-7  assets of the district and assume all contracts, debts, bonds, and
   18-8  other obligations of the district, and the municipality shall be
   18-9  bound in the same manner and to the same extent that the district
  18-10  was bound with respect to such contracts, debts, bonds, and other
  18-11  obligations.  On dissolution of the district, the taxes levied by
  18-12  the district are abolished.
  18-13        SECTION 2.  Chapter 352, Tax Code, is amended by adding
  18-14  Section 352.107 to read as follows:
  18-15        Sec. 352.107.  HOTEL TAX AUTHORIZED FOR COUNTY DEVELOPMENT
  18-16  DISTRICTS.  Notwithstanding any other provision of this chapter to
  18-17  the contrary, a commissioners court of a county with a population
  18-18  of less than 400,000 may impose a hotel occupancy tax not to exceed
  18-19  seven percent on a person who pays for the use or possession or for
  18-20  the right to the use or possession of a room in a hotel ordinarily
  18-21  used for sleeping that is located within the boundaries of the
  18-22  county development district created under Article 2372d-9, Revised
  18-23  Statutes, and that is not located within the corporate limits of a
  18-24  municipality, subject to the limitations set forth in Sections
  18-25  352.002(b) and (c).  Taxes  collected by a county under this
   19-1  section shall be remitted to the county development district not
   19-2  later than the 10th day after the date the county receives such
   19-3  funds and may be used by the district for the purposes for which
   19-4  sales and use tax proceeds may be used by the district.
   19-5        SECTION 3.  The importance of this legislation and the
   19-6  crowded condition of the calendars in both houses create an
   19-7  emergency and an imperative public necessity that the
   19-8  constitutional rule requiring bills to be read on three several
   19-9  days in each house be suspended, and this rule is hereby suspended,
  19-10  and that this Act take effect and be in force from and after its
  19-11  passage, and it is so enacted.