By: Cain S.B. No. 658
1-1 By: Cain S.B. No. 658
1-2 (In the Senate - Filed February 18, 1997; February 24, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 April 22, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 12, Nays 0; April 22, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 658 By: Cain
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the creation and dissolution of county development
1-11 districts in certain counties.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 312.604, Tax Code, is amended by amending
1-14 Subdivision (8) and adding Subdivision (9) to read as follows:
1-15 (8) "Bonds" means bonds, notes, lease purchase
1-16 contracts, and other obligations authorized by the provisions of
1-17 Sections 375.201, 375.202, 375.203, and 375.204, Local Government
1-18 Code, the provisions of which are incorporated herein as if set out
1-19 in full.
1-20 (9) "Visitors" means persons visiting for business or
1-21 governmental purposes; recreational or entertainment purposes;
1-22 personal or family purposes; health or educational purposes;
1-23 shopping, commerce, trade, or economic development purposes; or any
1-24 other lawful purpose.
2-1 SECTION 2. Subchapter D, Chapter 312, Tax Code, is amended
2-2 by adding Section 312.6065 to read as follows:
2-3 Sec. 312.6065. CONSENT OF MUNICIPALITY. No land within the
2-4 corporate limits of a municipality or within the extraterritorial
2-5 jurisdiction of a municipality shall be included in a district
2-6 unless the municipality grants its written consent, by resolution
2-7 or ordinance approved by two-thirds of the voting members of the
2-8 governing body of the municipality, to the inclusion of the land
2-9 within the district. Petitioners for creation shall submit to the
2-10 governing body of the municipality a petition for consent to
2-11 creation of the district which shall have attached a copy of the
2-12 petition for creation. At least 14 days prior to the adoption of
2-13 the resolution or ordinance granting written consent to the
2-14 inclusion of the land within the district, the governing body of
2-15 the municipality shall conduct a public hearing. Notice of the
2-16 public hearing shall be mailed to the petitioner and the holders of
2-17 fee simple title to all of the land in the proposed district and
2-18 shall be published in a newspaper with general circulation in the
2-19 county in which the proposed district is located.
2-20 SECTION 3. Section 312.608, Tax Code, is amended to read as
2-21 follows:
2-22 Sec. 312.608. NOTICE OF HEARING. At least 30 days before
2-23 the date set for the hearing, notice of the hearing shall be mailed
2-24 to the petitioner, the holders of fee simple title [developer who
2-25 signed the petition and the landowners] of all the land in the
2-26 proposed district, and the municipality within whose city limits or
2-27 extraterritorial jurisdiction the proposed district is located, if
3-1 any, and shall be published in a newspaper with general circulation
3-2 in the county in which the proposed district is located.
3-3 SECTION 4. Subsection (a), Section 312.610, Tax Code, is
3-4 amended to read as follows:
3-5 (a) After the hearing, if it is found that the petition
3-6 conforms to the requirements of Section 312.6055 and that the
3-7 creation of the district and the proposed project is feasible and
3-8 necessary and would serve the public purpose of attracting visitors
3-9 and tourists to the county, the commissioners court may, by the
3-10 affirmative vote of two-thirds of the members of the commissioners
3-11 court, [shall] so find and enter an order creating the district.
3-12 If no appeal of the order creating the district is filed with the
3-13 district court of the county in which the proposed district is
3-14 located within 30 days after the entry of the order creating the
3-15 district, the order creating the district shall become final and
3-16 nonappealable and all of the findings included in the order entered
3-17 by the commissioners court shall become incontestable. Any order
3-18 entered by a commissioners court prior to January 1, 1997, creating
3-19 a county development district which has not been made the subject
3-20 of a lawsuit prior to June 3, 1997, is hereby determined to be
3-21 final and nonappealable, and all of the findings included in the
3-22 order entered by the commissioners court shall be incontestable.
3-23 After the order creating the district becomes final, the district
3-24 may exercise any right, power, and authority granted to it in the
3-25 manner deemed necessary or appropriate by the board. The
3-26 commissioners court shall have the right to include property in
3-27 more than one county development district, with the prior written
4-1 consent of the owner of fee simple title to the property.
4-2 SECTION 5. Section 312.620, Tax Code, is amended to read as
4-3 follows:
4-4 Sec. 312.620. PERSONS DISQUALIFIED TO SERVE. Section 49.052
4-5 [50.026], Water Code, relating to disqualification of directors,
4-6 shall apply to directors of districts created under this
4-7 subchapter. In addition, a director shall be disqualified if the
4-8 director has a financial interest in the land within the district
4-9 or in any project undertaken by the district. Each person seeking
4-10 to be appointed as a director shall file an affidavit with the
4-11 commissioners court prior to being appointed to serve on the board
4-12 which states that the person meets the qualifications set forth in
4-13 Section 312.619 and that the person is not disqualified under this
4-14 section.
4-15 SECTION 6. Subsection (a), Section 312.625, Tax Code, is
4-16 amended to read as follows:
4-17 (a) The board shall designate and establish an [a district]
4-18 office in the county and may establish an office outside the
4-19 county.
4-20 SECTION 7. Section 312.626, Tax Code, is amended to read as
4-21 follows:
4-22 Sec. 312.626. DIRECTOR'S COMPENSATION; BOND AND OATH OF
4-23 OFFICE. A director is [not] entitled to receive fees of office and
4-24 reimbursement of expenses established by the board, not to exceed
4-25 those authorized by Section 49.060, Water Code [compensation for
4-26 service on the board]. Section [Sections] 375.067[, 375.069, and
4-27 375.070], Local Government Code, applies [apply] to directors of a
5-1 district created under this subchapter.
5-2 SECTION 8. Subsections (a) and (c), Section 312.637, Tax
5-3 Code, are amended to read as follows:
5-4 (a) A district may levy a sales and use tax for the benefit
5-5 of the district if authorized by a majority of the qualified voters
5-6 of the district voting at an election called for that purpose only
5-7 if, as a result of adoption of the tax, the combined rate of all
5-8 local sales and use taxes imposed by the county and political
5-9 subdivisions having territory in the district will not exceed two
5-10 percent. The sales and use tax, if adopted by the district, counts
5-11 [does not count] toward the two percent limitation imposed by this
5-12 section and Chapter 323 on any sales and use tax that has been
5-13 levied by the county.
5-14 (c) Chapter 323, to the extent not inconsistent with this
5-15 subchapter, governs the imposition, computation, administration,
5-16 and governance of the tax under this section, except that Section
5-17 [Sections] 323.101(b) [and (e),] and Sections 323.209, 323.401
5-18 through 323.406, and 323.505 do not apply. Chapter 323 does not
5-19 apply to the use and allocation of revenues under this subchapter.
5-20 In applying the procedures under Chapter 323, the district's name
5-21 shall be substituted for "the county" and "board of directors" is
5-22 substituted for "commissioners court."
5-23 SECTION 9. Subsection (a), Section 312.638, Tax Code, is
5-24 amended to read as follows:
5-25 (a) Before the board issues bonds, a petition executed by
5-26 the holders of fee simple title of all of the land described in the
5-27 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
6-26 district.
6-27 (g) If all liabilities of the district and all liabilities
7-1 associated with the district have not been retired, the ballot must
7-2 be printed to permit voting for or against the proposition:
7-3 "Whether the _____________ County Development District No. _______
7-4 should be dissolved when all liabilities of the district and all
7-5 liabilities associated with the district have been retired." If a
7-6 majority of votes in the election favor the proposition, the
7-7 commissioners court by order shall:
7-8 (1) limit the district's actions to satisfying
7-9 existing liabilities and obligations, collecting and liquidating
7-10 assets, and activities required for winding up its business and
7-11 affairs; and
7-12 (2) dissolve the district when all of the district's
7-13 liabilities and liabilities associated with the district have been
7-14 retired.
7-15 SECTION 11. Subchapter D, Chapter 312, Tax Code, is amended
7-16 by adding Sections 312.641 and 312.642 to read as follows:
7-17 Sec. 312.641. DIVISION OF DISTRICTS IN CERTAIN COUNTIES.
7-18 (a) County development districts located in a county with a
7-19 population of less than 75,000 may divide into two or more
7-20 districts in accordance with the provisions of this section.
7-21 (b) The district must have no outstanding debt and not be
7-22 levying an ad valorem tax.
7-23 (c) The board may order a special election for the division
7-24 of the district on its own motion.
7-25 (d) The order calling the division election must set forth
7-26 the metes and bounds of the boundaries of the proposed new
7-27 districts.
8-1 (e) The division election shall be called, conducted, and
8-2 canvassed and notice of the election shall be given by the board in
8-3 the manner, on the dates, within the times, and otherwise as
8-4 specified for bond elections by water control and improvement
8-5 districts, all in accordance with Chapter 51, Water Code, and the
8-6 Election Code.
8-7 (f) Simultaneous with calling the division election, the
8-8 board shall include a statement that if the election results in
8-9 division of the district, the new districts shall each be governed
8-10 by a board of five directors elected in the same election. To be
8-11 qualified for election as a director of one of the proposed new
8-12 districts, a person must meet the qualifications which apply to a
8-13 director of a water control and improvement district. A qualified
8-14 person may have his name printed on the ballot by filing a written
8-15 application in the manner required by the Election Code. The
8-16 election of directors shall be called, conducted, and canvassed and
8-17 notice of the election shall be given in the manner, on the dates,
8-18 within the times, and otherwise as specified for the election of
8-19 the first board of directors of a water control and improvement
8-20 district, all in accordance with Chapter 51, Water Code, and the
8-21 Election Code.
8-22 (g) The board shall furnish the ballots and election
8-23 supplies necessary to hold the election. The board shall pay for
8-24 the ballots, election supplies, and other expenses of the election
8-25 from district funds.
8-26 (h) The board shall appoint a presiding judge and other
8-27 election officials in the manner specified in the Election Code.
9-1 (i) Immediately after the election is held, the presiding
9-2 judge shall make out and deliver the returns to the board, and the
9-3 board shall then canvass the returns and declare the result.
9-4 (j) If the election results in the division of the district,
9-5 the five candidates for the board of directors receiving the most
9-6 votes in each new district shall be declared elected. The elected
9-7 directors shall immediately qualify by taking the constitutional
9-8 oath of office and shall file the oath with the county clerk.
9-9 (k) If, for any reason, a full board of directors of each of
9-10 the districts is not elected, the board of the original district
9-11 shall appoint persons to serve as directors.
9-12 (l) Each district created by the division of an existing
9-13 district into two or more districts has all of the powers and
9-14 duties given by this subchapter, and incorporated by reference by
9-15 this subchapter, to county development districts.
9-16 (m) Each new district is a conservation and reclamation
9-17 district created under Section 59, Article XVI, Texas Constitution,
9-18 and may, by following the provisions of Sections 51.040-51.044,
9-19 Water Code, convert into a water control and improvement district
9-20 and may continue to exercise all necessary specific powers under
9-21 any specific conditions provided by this subchapter under which the
9-22 district was operating before conversion.
9-23 (n) The procedure for dividing into two or more districts
9-24 may be utilized as many times as the board deems appropriate.
9-25 Sec. 312.642. DISSOLUTION OF DORMANT DISTRICT. A district
9-26 shall be dissolved if, prior to the first anniversary of the date
9-27 of the canvassing of the election approving the local sales and use
10-1 tax in accordance with Section 312.617, the district has not
10-2 entered into binding agreements requiring expenditures for the
10-3 purpose of implementing a project authorized by this subchapter.
10-4 The commissioners court shall conduct a hearing in the first full
10-5 calendar month following the first anniversary of the date of the
10-6 canvassing of the election approving the local sales and use tax
10-7 election in accordance with Section 312.617. Notice of the hearing
10-8 shall be mailed at least 14 days prior to the hearing to the
10-9 holders of fee simple title to all of the land within the district
10-10 and to the municipality, if any, within whose boundaries or
10-11 extraterritorial jurisdiction the district is located. If no
10-12 evidence is presented to the commissioners court that the district
10-13 has entered into a binding agreement requiring expenditures for the
10-14 purpose of implementing a project authorized by this subchapter and
10-15 if the district has no outstanding bonds or other debts, the
10-16 commissioners court shall enter in its records the appropriate
10-17 findings and the order dissolving the district. The order
10-18 dissolving the district shall become final in the same manner as
10-19 the order creating the district.
10-20 SECTION 12. The importance of this legislation and the
10-21 crowded condition of the calendars in both houses create an
10-22 emergency and an imperative public necessity that the
10-23 constitutional rule requiring bills to be read on three several
10-24 days in each house be suspended, and this rule is hereby suspended,
10-25 and that this Act take effect and be in force from and after its
10-26 passage, and it is so enacted.
10-27 * * * * *