By: Cain S.B. No. 658
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation and dissolution of county development
1-2 districts in certain counties.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 312.604, Tax Code, is amended by amending
1-5 Subdivision (8) and adding Subdivision (9) to read as follows:
1-6 (8) "Bonds" means bonds, notes, lease purchase
1-7 contracts, and other obligations authorized by the provisions of
1-8 Sections 375.201, 375.202, 375.203, and 375.204, Local Government
1-9 Code, the provisions of which are incorporated herein as if set out
1-10 in full.
1-11 (9) "Visitors" means persons visiting for business or
1-12 governmental purposes; recreational or entertainment purposes;
1-13 personal or family purposes; health or educational purposes;
1-14 shopping, commerce, trade, or economic development purposes; or any
1-15 other lawful purpose.
1-16 SECTION 2. Subchapter D, Chapter 312, Tax Code, is amended
1-17 by adding Section 312.6065 to read as follows:
1-18 Sec. 312.6065. CONSENT OF MUNICIPALITY. No land within the
1-19 corporate limits of a municipality or within the extraterritorial
1-20 jurisdiction of a municipality shall be included in a district
1-21 unless the municipality grants its written consent, by resolution
1-22 or ordinance approved by two-thirds of the voting members of the
1-23 governing body of the municipality, to the inclusion of the land
2-1 within the district. Petitioners for creation shall submit to the
2-2 governing body of the municipality a petition for consent to
2-3 creation of the district which shall have attached a copy of the
2-4 petition for creation. At least 14 days prior to the adoption of
2-5 the resolution or ordinance granting written consent to the
2-6 inclusion of the land within the district, the governing body of
2-7 the municipality shall conduct a public hearing. Notice of the
2-8 public hearing shall be mailed to the petitioner and the holders of
2-9 fee simple title to all of the land in the proposed district and
2-10 shall be published in a newspaper with general circulation in the
2-11 county in which the proposed district is located.
2-12 SECTION 3. Section 312.608, Tax Code, is amended to read as
2-13 follows:
2-14 Sec. 312.608. NOTICE OF HEARING. At least 30 days before
2-15 the date set for the hearing, notice of the hearing shall be mailed
2-16 to the petitioner, the holders of fee simple title [developer who
2-17 signed the petition and the landowners] of all the land in the
2-18 proposed district, and the municipality within whose city limits or
2-19 extraterritorial jurisdiction the proposed district is located, if
2-20 any, and shall be published in a newspaper with general circulation
2-21 in the county in which the proposed district is located.
2-22 SECTION 4. Subsection (a), Section 312.610, Tax Code, is
2-23 amended to read as follows:
2-24 (a) After the hearing, if it is found that the petition
2-25 conforms to the requirements of Section 312.6055 and that the
3-1 creation of the district and the proposed project is feasible and
3-2 necessary and would serve the public purpose of attracting visitors
3-3 and tourists to the county, the commissioners court may, by the
3-4 affirmative vote of two-thirds of the members of the commissioners
3-5 court, [shall] so find and enter an order creating the district.
3-6 If no appeal of the order creating the district is filed with the
3-7 district court of the county in which the proposed district is
3-8 located within 30 days after the entry of the order creating the
3-9 district, the order creating the district shall become final and
3-10 nonappealable and all of the findings included in the order entered
3-11 by the commissioners court shall become incontestable. Any order
3-12 entered by a commissioners court prior to January 1, 1997, creating
3-13 a county development district which has not been made the subject
3-14 of a lawsuit prior to June 3, 1997, is hereby determined to be
3-15 final and nonappealable, and all of the findings included in the
3-16 order entered by the commissioners court shall be incontestable.
3-17 After the order creating the district becomes final, the district
3-18 may exercise any right, power, and authority granted to it in the
3-19 manner deemed necessary or appropriate by the board. The
3-20 commissioners court shall have the right to include property in
3-21 more than one county development district, with the prior written
3-22 consent of the owner of fee simple title to the property.
3-23 SECTION 5. Section 312.620, Tax Code, is amended to read as
3-24 follows:
3-25 Sec. 312.620. PERSONS DISQUALIFIED TO SERVE. Section 49.052
4-1 [50.026], Water Code, relating to disqualification of directors,
4-2 shall apply to directors of districts created under this
4-3 subchapter. In addition, a director shall be disqualified if the
4-4 director has a financial interest in the land within the district
4-5 or in any project undertaken by the district. Each person seeking
4-6 to be appointed as a director shall file an affidavit with the
4-7 commissioners court prior to being appointed to serve on the board
4-8 which states that the person meets the qualifications set forth in
4-9 Section 312.619 and that the person is not disqualified under this
4-10 section.
4-11 SECTION 6. Subsection (a), Section 312.625, Tax Code, is
4-12 amended to read as follows:
4-13 (a) The board shall designate and establish an [a district]
4-14 office in the county and may establish an office outside the
4-15 county.
4-16 SECTION 7. Section 312.626, Tax Code, is amended to read as
4-17 follows:
4-18 Sec. 312.626. DIRECTOR'S COMPENSATION; BOND AND OATH OF
4-19 OFFICE. A director is [not] entitled to receive fees of office and
4-20 reimbursement of expenses established by the board, not to exceed
4-21 those authorized by Section 49.060, Water Code [compensation for
4-22 service on the board]. Section [Sections] 375.067[, 375.069, and
4-23 375.070], Local Government Code, applies [apply] to directors of a
4-24 district created under this subchapter.
4-25 SECTION 8. Subsections (a) and (c), Section 312.637, Tax
5-1 Code, are amended to read as follows:
5-2 (a) A district may levy a sales and use tax for the benefit
5-3 of the district if authorized by a majority of the qualified voters
5-4 of the district voting at an election called for that purpose only
5-5 if, as a result of adoption of the tax, the combined rate of all
5-6 local sales and use taxes imposed by the county and political
5-7 subdivisions having territory in the district will not exceed two
5-8 percent. The sales and use tax, if adopted by the district, counts
5-9 [does not count] toward the two percent limitation imposed by this
5-10 section and Chapter 323 on any sales and use tax that has been
5-11 levied by the county.
5-12 (c) Chapter 323, to the extent not inconsistent with this
5-13 subchapter, governs the imposition, computation, administration,
5-14 and governance of the tax under this section, except that Section
5-15 [Sections] 323.101(b) [and (e),] and Sections 323.209, 323.401
5-16 through 323.406, and 323.505 do not apply. Chapter 323 does not
5-17 apply to the use and allocation of revenues under this subchapter.
5-18 In applying the procedures under Chapter 323, the district's name
5-19 shall be substituted for "the county" and "board of directors" is
5-20 substituted for "commissioners court."
5-21 SECTION 9. Subsection (a), Section 312.638, Tax Code, is
5-22 amended to read as follows:
5-23 (a) Before the board issues bonds, a petition executed by
5-24 the holders of fee simple title of all of the land described in the
5-25 petition may be filed with the commissioners court requesting that
6-1 the land described in the petition be added to, or excluded from,
6-2 the boundaries of the district. If the petition requests that the
6-3 property be added to the boundaries of the district, the petition
6-4 shall set forth the general nature of the work proposed to be done,
6-5 the cost of the project as then estimated by the petitioner, the
6-6 necessity and feasibility of the addition of the lands, and the
6-7 manner in which the project will serve the public purpose of
6-8 attracting visitors or tourists to the county [the board may, on
6-9 its own motion or on request of a landowner in the district,
6-10 petition the county commissioners for the addition of land to or
6-11 exclusion of land from the district].
6-12 SECTION 10. Section 312.639, Tax Code, is amended by adding
6-13 Subsections (e), (f), and (g) to read as follows:
6-14 (e) If a petition signed within the previous 30 days by
6-15 registered voters equal to at least five percent of the registered
6-16 voters of the district who voted in the previous gubernatorial
6-17 election is presented to the commissioners court to dissolve the
6-18 district, the commissioners court shall order a dissolution
6-19 referendum.
6-20 (f) If all liabilities of the district and all liabilities
6-21 associated with the district have been retired, the ballot must be
6-22 printed to permit voting for or against the proposition: "The
6-23 _____________ County Development District No. _______ should be
6-24 dissolved." If a majority of the voters in the election favor the
6-25 proposition, the commissioners court by order shall dissolve the
7-1 district.
7-2 (g) If all liabilities of the district and all liabilities
7-3 associated with the district have not been retired, the ballot must
7-4 be printed to permit voting for or against the proposition:
7-5 "Whether the _____________ County Development District No. _______
7-6 should be dissolved when all liabilities of the district and all
7-7 liabilities associated with the district have been retired." If a
7-8 majority of votes in the election favor the proposition, the
7-9 commissioners court by order shall:
7-10 (1) limit the district's actions to satisfying
7-11 existing liabilities and obligations, collecting and liquidating
7-12 assets, and activities required for winding up its business and
7-13 affairs; and
7-14 (2) dissolve the district when all of the district's
7-15 liabilities and liabilities associated with the district have been
7-16 retired.
7-17 SECTION 11. Subchapter D, Chapter 312, Tax Code, is amended
7-18 by adding Sections 312.641 and 312.642 to read as follows:
7-19 Sec. 312.641. DIVISION OF DISTRICTS IN CERTAIN COUNTIES.
7-20 (a) County development districts located in a county with a
7-21 population of less than 75,000 may divide into two or more
7-22 districts in accordance with the provisions of this section.
7-23 (b) The district must have no outstanding debt and not be
7-24 levying an ad valorem tax.
7-25 (c) The board may order a special election for the division
8-1 of the district on its own motion.
8-2 (d) The order calling the division election must set forth
8-3 the metes and bounds of the boundaries of the proposed new
8-4 districts.
8-5 (e) The division election shall be called, conducted, and
8-6 canvassed and notice of the election shall be given by the board in
8-7 the manner, on the dates, within the times, and otherwise as
8-8 specified for bond elections by water control and improvement
8-9 districts, all in accordance with Chapter 51, Water Code, and the
8-10 Election Code.
8-11 (f) Simultaneous with calling the division election, the
8-12 board shall include a statement that if the election results in
8-13 division of the district, the new districts shall each be governed
8-14 by a board of five directors elected in the same election. To be
8-15 qualified for election as a director of one of the proposed new
8-16 districts, a person must meet the qualifications which apply to a
8-17 director of a water control and improvement district. A qualified
8-18 person may have his name printed on the ballot by filing a written
8-19 application in the manner required by the Election Code. The
8-20 election of directors shall be called, conducted, and canvassed and
8-21 notice of the election shall be given in the manner, on the dates,
8-22 within the times, and otherwise as specified for the election of
8-23 the first board of directors of a water control and improvement
8-24 district, all in accordance with Chapter 51, Water Code, and the
8-25 Election Code.
9-1 (g) The board shall furnish the ballots and election
9-2 supplies necessary to hold the election. The board shall pay for
9-3 the ballots, election supplies, and other expenses of the election
9-4 from district funds.
9-5 (h) The board shall appoint a presiding judge and other
9-6 election officials in the manner specified in the Election Code.
9-7 (i) Immediately after the election is held, the presiding
9-8 judge shall make out and deliver the returns to the board, and the
9-9 board shall then canvass the returns and declare the result.
9-10 (j) If the election results in the division of the district,
9-11 the five candidates for the board of directors receiving the most
9-12 votes in each new district shall be declared elected. The elected
9-13 directors shall immediately qualify by taking the constitutional
9-14 oath of office and shall file the oath with the county clerk.
9-15 (k) If, for any reason, a full board of directors of each of
9-16 the districts is not elected, the board of the original district
9-17 shall appoint persons to serve as directors.
9-18 (l) Each district created by the division of an existing
9-19 district into two or more districts has all of the powers and
9-20 duties given by this subchapter, and incorporated by reference by
9-21 this subchapter, to county development districts.
9-22 (m) Each new district is a conservation and reclamation
9-23 district created under Section 59, Article XVI, Texas Constitution,
9-24 and may, by following the provisions of Sections 51.040-51.044,
9-25 Water Code, convert into a water control and improvement district
10-1 and may continue to exercise all necessary specific powers under
10-2 any specific conditions provided by this subchapter under which the
10-3 district was operating before conversion.
10-4 (n) The procedure for dividing into two or more districts
10-5 may be utilized as many times as the board deems appropriate.
10-6 Sec. 312.642. DISSOLUTION OF DORMANT DISTRICT. A district
10-7 shall be dissolved if, prior to the first anniversary of the date
10-8 of the canvassing of the election approving the local sales and use
10-9 tax in accordance with Section 312.617, the district has not
10-10 entered into binding agreements requiring expenditures for the
10-11 purpose of implementing a project authorized by this subchapter.
10-12 The commissioners court shall conduct a hearing in the first full
10-13 calendar month following the first anniversary of the date of the
10-14 canvassing of the election approving the local sales and use tax
10-15 election in accordance with Section 312.617. Notice of the hearing
10-16 shall be mailed at least 14 days prior to the hearing to the
10-17 holders of fee simple title to all of the land within the district
10-18 and to the municipality, if any, within whose boundaries or
10-19 extraterritorial jurisdiction the district is located. If no
10-20 evidence is presented to the commissioners court that the district
10-21 has entered into a binding agreement requiring expenditures for the
10-22 purpose of implementing a project authorized by this subchapter and
10-23 if the district has no outstanding bonds or other debts, the
10-24 commissioners court shall enter in its records the appropriate
10-25 findings and the order dissolving the district. The order
11-1 dissolving the district shall become final in the same manner as
11-2 the order creating the district.
11-3 SECTION 12. The importance of this legislation and the
11-4 crowded condition of the calendars in both houses create an
11-5 emergency and an imperative public necessity that the
11-6 constitutional rule requiring bills to be read on three several
11-7 days in each house be suspended, and this rule is hereby suspended,
11-8 and that this Act take effect and be in force from and after its
11-9 passage, and it is so enacted.