SWB H.B. 3319 75(R)BILL ANALYSIS WAYS & MEANS H.B. 3319 By: Horn 4-28-97 Committee Report (Amended) BACKGROUND Section 312.639, Tax Code (Dissolution of District) allows the board of directors of a county development district to petition the commissioners court to dissolve the district. It also allows for the district to be dissolved through an agreement between the board of directors and the municipality in which the district is located. However, current law does not allow for the dissolution of the district by the people living within its boundaries. PURPOSE The bill would give the people living within a development district the right to place the issue of dissolving the development district on a referendum. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1.Amends Section 312.639, Tax Code (Dissolution of District), by adding subsections (e), (f), and (g) as follows: (e) Provides that if five percent of registered voters of the district who voted in the previous gubernatorial election present a petition to the commissioners court to dissolve the district, the commissioners court shall order a dissolution referendum. (f) Provides ballot language if all liabilities of the district and all liabilities associated with the district have been retired. Provides that if a majority of voters in the election favor the proposition, the commissioners court, by order, shall dissolve the district. (g) Provides ballot language if all liabilities of the district and all liabilities associated with the district have not been retired. Provides that if a majority of the voters favor the proposition, the commissioners court, by order, shall: 1) limit the district's actions to satisfying existing liabilities and obligations, collecting and liquidating assets, and activities required for winding up its business and affairs; 2) dissolve the district when all of the district's liabilities and liabilities associated with the district have been retired. SECTION 2.Emergency clause. EXPLANATION OF AMENDMENTS Committee amendment number one strikes the words "the district" and substitutes the words "a commissioner's precinct in which the district is located" on page 1, line 6.