By: Cain S.B. No. 658
97S0377/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of county development districts in certain
1-2 counties; authorizing the issuance of bonds and the imposition of
1-3 ad valorem taxes by a county development district.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 312.604, Tax Code, is amended by amending
1-6 Subdivision (8) and adding Subdivision (9) to read as follows:
1-7 (8) "Bonds" means bonds, notes, and other obligations
1-8 authorized by the provisions of Sections 375.201, 375.202, 375.203,
1-9 and 375.204, Local Government Code.
1-10 (9) "Visitors" means persons visiting for business or
1-11 governmental purposes; recreational or entertainment purposes;
1-12 personal or family purposes; health or educational purposes;
1-13 shopping, commerce, trade, or economic development purposes; or any
1-14 other lawful purpose.
1-15 SECTION 2. Subsection (a), Section 312.610, Tax Code, is
1-16 amended to read as follows:
1-17 (a) After the hearing, if it is found that the petition
1-18 conforms to the requirements of Section 312.6055 and that the
1-19 creation of the district and the proposed project is feasible and
1-20 necessary and would serve the public purpose of attracting visitors
1-21 or [and] tourists to the county, the commissioners court shall so
1-22 find and enter an order creating the district. If no appeal of the
1-23 order creating the district is filed with the district court of the
2-1 county in which the proposed district is located within 30 days
2-2 after the date the order creating the district is entered, the
2-3 order creating the district shall become final and nonappealable
2-4 and all of the findings included in the order entered by the
2-5 commissioners court shall become incontestable. After the order
2-6 creating a district becomes final, the district may exercise any
2-7 right, power, or authority granted to it in the manner deemed
2-8 necessary or appropriate by the board. The commissioners court
2-9 shall have the right to include property in more than one district,
2-10 with the prior written consent of the holder of fee simple title to
2-11 the property.
2-12 SECTION 3. Subsection (a), Section 312.625, Tax Code, is
2-13 amended to read as follows:
2-14 (a) The board shall designate and establish an [a district]
2-15 office in the county and may establish an office outside the
2-16 county.
2-17 SECTION 4. Section 312.626, Tax Code, is amended to read as
2-18 follows:
2-19 Sec. 312.626. DIRECTOR'S COMPENSATION; BOND AND OATH OF
2-20 OFFICE. A director is [not] entitled to receive fees of office and
2-21 reimbursement of expenses established by the board, but not to
2-22 exceed those authorized by Section 49.060, Water Code,
2-23 [compensation for service on the board]. Section [Sections]
2-24 375.067[, 375.069, and 375.070], Local Government Code, applies
2-25 [apply] to directors of a district created under this subchapter.
3-1 SECTION 5. Section 312.634, Tax Code, is amended to read as
3-2 follows:
3-3 Sec. 312.634. ISSUANCE OF BONDS, NOTES, AND OTHER
3-4 OBLIGATIONS. (a) The district may issue bonds, notes, and other
3-5 obligations for the purpose of defraying all or part of the cost of
3-6 any project as authorized by [provided in] this subchapter or for
3-7 the purpose of defraying all or part of the cost of exercising any
3-8 right, power, privilege, authority, or function granted to the
3-9 district by this subchapter or by Chapter 375, Local Government
3-10 Code, including but not limited to those rights, powers,
3-11 privileges, authority, and functions set forth in Sections 375.091,
3-12 375.092, 375.093, 375.111, 375.112, 375.141, and 375.181.
3-13 [Sections 375.201 through 375.208, Local Government Code, shall
3-14 apply to a district created under this subchapter to the extent not
3-15 inconsistent with this subchapter.]
3-16 (b) The district shall have the authority to impose an ad
3-17 valorem tax for maintenance and operations for the purpose of
3-18 repaying bonds issued by the district, other than for the
3-19 construction or maintenance of macadamized, graveled, or paved
3-20 roads and turnpikes, or in aid thereof, and for the purpose of
3-21 making contract payments in compliance with the election
3-22 requirements which apply to a water control and improvement
3-23 district created pursuant to Chapter 51, Water Code. Elections to
3-24 authorize the use of ad valorem taxes for the construction,
3-25 maintenance, and operation of macadamized, graveled, or paved roads
4-1 and turnpikes, or in aid thereof, shall be called, conducted, and
4-2 canvassed by the board in the manner specified for such elections
4-3 in road districts, and the board shall exercise the authority
4-4 granted to the commissioners court in such elections.
4-5 (c) The commissioners court may, by resolution, specify
4-6 whether the district will be subject to Section 375.208, Local
4-7 Government Code.
4-8 SECTION 6. Subchapter D, Chapter 312, Tax Code, is amended
4-9 by adding Section 312.641 to read as follows:
4-10 Sec. 312.641. DIVISION OF DISTRICTS. (a) A district may be
4-11 divided into two or more districts if it has no outstanding bonded
4-12 debt and is not levying ad valorem taxes.
4-13 (b) The board may order a special election for the division
4-14 of the district on its own motion.
4-15 (c) The order calling a division election must set forth the
4-16 metes and bounds of the proposed new districts.
4-17 (d) The division election shall be called, conducted, and
4-18 canvassed, and notice of the election shall be given by the board
4-19 in the manner, on the dates, within the times, and otherwise as
4-20 specified for bond elections by water control and improvement
4-21 districts, all in accordance with Chapter 51, Water Code, and the
4-22 Election Code.
4-23 (e) Simultaneous with calling the division election, the
4-24 board shall include a statement that if the election results in
4-25 division of the district, the new districts shall each be governed
5-1 by a board of five directors elected in the same election. To be
5-2 qualified for election as a director of one of the proposed new
5-3 districts, a person must meet the qualifications which apply to a
5-4 director of a water control and improvement district. A qualified
5-5 person's name may be printed on the ballot if the person files a
5-6 written application in the manner required by the Election Code.
5-7 The election of directors shall be called, conducted, and
5-8 canvassed, and notice of the election shall be given in the manner,
5-9 on the dates, within the times, and otherwise as specified for the
5-10 election of the first board of directors of a water control and
5-11 improvement district, all in accordance with Chapter 51, Water
5-12 Code, and the Election Code.
5-13 (f) The board shall furnish the ballots and election
5-14 supplies necessary to hold the election. The board shall pay for
5-15 the ballots, election supplies, and other expenses of the election
5-16 from district funds.
5-17 (g) The board shall appoint a presiding judge and other
5-18 election officials in the manner specified in the Election Code.
5-19 (h) Immediately after the election is held, the presiding
5-20 judge shall make out and deliver the returns to the board, and the
5-21 board shall then canvass the returns and declare the result.
5-22 (i) If the election results in the division of the district,
5-23 the five candidates for the board of directors receiving the most
5-24 votes in each new district shall be declared elected. The elected
5-25 directors shall immediately qualify by taking the constitutional
6-1 oath of office and shall file the oath with the county clerk.
6-2 (j) If, for any reason, a full board of directors of each of
6-3 the districts is not elected, the board of the original district
6-4 shall appoint persons to serve as directors.
6-5 (k) Each district created by the division of an existing
6-6 district into two or more districts has all of the powers and
6-7 duties given by this subchapter, and incorporated by reference by
6-8 this subchapter, to county development districts.
6-9 (l) Each new district is a conservation and reclamation
6-10 district created under Section 59, Article XVI, Texas Constitution,
6-11 and may, by following the provisions of Sections 51.040 through
6-12 51.044, Water Code, convert into a water control and improvement
6-13 district and may continue to exercise all necessary specific powers
6-14 under any specific conditions provided by this subchapter under
6-15 which the district was operating before conversion.
6-16 (m) The procedure for dividing into two or more districts
6-17 may be utilized as many times as the board deems appropriate.
6-18 SECTION 7. All orders of a commissioners court creating a
6-19 county development district under Section 312.610, Tax Code,
6-20 entered prior to January 1, 1997, which have not been made the
6-21 subject of a lawsuit prior to June 3, 1997, are hereby determined
6-22 to be final and nonappealable and all findings included in such
6-23 orders entered by a commissioners court shall be incontestable.
6-24 SECTION 8. The importance of this legislation and the
6-25 crowded condition of the calendars in both houses create an
7-1 emergency and an imperative public necessity that the
7-2 constitutional rule requiring bills to be read on three several
7-3 days in each house be suspended, and this rule is hereby suspended,
7-4 and that this Act take effect and be in force from and after its
7-5 passage, and it is so enacted.