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.