By Uher                                               H.B. No. 3567
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to county development districts.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 383.003(a), Local Government Code, is
 1-5     amended to read as follows:
 1-6           (a)  Small and medium-sized counties in this state need
 1-7     programs and the authority to spend public money [incentives] for
 1-8     the development of public improvements to attract visitors and
 1-9     tourists to those counties, and those counties are at a
1-10     disadvantage in competing with counties in other states for the
1-11     location and development of projects that attract visitors or
1-12     tourists by virtue of the availability and prevalent use of
1-13     financial incentives in other states.
1-14           SECTION 2.  Section 383.004, Local Government Code, is
1-15     amended by adding Subdivision (9) to read as follows:
1-16                 (9)  "Visitor" means a person visiting for a business,
1-17     governmental, recreational, health, educational, commercial, or
1-18     economic development purpose.  In a district created after June 1,
1-19     1999, the term also includes a person visiting for personal or
1-20     other purposes.
1-21           SECTION 3.  Section 383.021(a), Local Government Code, is
1-22     amended to read as follows:
1-23           (a)  The commissioners court of a county with a population of
1-24     600,000 [400,000] or less, on petition of the owners of land in a
 2-1     proposed district, may commence the creation of a county
 2-2     development district.
 2-3           SECTION 4.  Section 383.022, Local Government Code, is
 2-4     amended to read as follows:
 2-5           Sec. 383.022.  PETITION OF LANDOWNERS.  To create a district,
 2-6     a petition requesting creation must be filed with the commissioners
 2-7     court of the county in which all of the land in the proposed
 2-8     district is located.  The petition must be accompanied by:
 2-9                 (1)  a sworn statement indicating consent to creation
2-10     signed by the holders of fee simple title of all of the land in the
2-11     proposed district; and
2-12                 (2)  a copy of an ordinance or resolution supporting
2-13     the creation of the district enacted by each municipality with
2-14     incorporated territory or extraterritorial jurisdiction located in
2-15     the proposed district.
2-16           SECTION 5.  Section 383.027, Local Government Code, is
2-17     amended by amending Subsection (a)  and adding Subsections (c) and
2-18     (d) to read as follows:
2-19           (a)  After the hearing, if the commissioners court finds that
2-20     the petition conforms to the requirements of Section 383.022 and
2-21     that the creation of the district and the proposed project is
2-22     feasible and necessary and would serve a [the public] purpose of
2-23     this chapter [attracting visitors and tourists to the county], the
2-24     commissioners court shall make that finding and enter an order
2-25     creating the district.  The order creating the district may specify
2-26     the cost to the county of publishing notice and conducting hearings
2-27     for the creation of the district together with the cost of
 3-1     conducting the confirmation and sales and use tax election.  The
 3-2     county may require the petitioner to pay to the county the amounts
 3-3     specified in the order creating the district at the time the order
 3-4     becomes final.
 3-5           (c)  An appeal of an order creating a district under
 3-6     Subsection (a)  must be filed in a district court of the county in
 3-7     which the district is created not later than the 30th day after the
 3-8     date of the order.  If an appeal is not filed within that time, the
 3-9     order becomes final and may not be appealed, and a finding in the
3-10     order becomes incontestable.  After the order becomes final, the
3-11     district may exercise any of the powers granted to the district as
3-12     determined by the board.
3-13           (d)  The commissioners court, with the written consent of the
3-14     owner of the fee simple title of property, may include the property
3-15     in more than one county development district.
3-16           SECTION 6.  Section 383.061, Local Government Code, is
3-17     amended by adding Subsections (d) and (e) to read as follows:
3-18           (d)  A district may contract with any other political
3-19     subdivisions as necessary to carry out a power or duty of the
3-20     district under this chapter.
3-21           (e)  A district created after June 1, 1999, may enter into a
3-22     contract with the county under which the district agrees not to
3-23     call an election to authorize an ad valorem tax without the written
3-24     approval of the county.
3-25           SECTION 7.  Section 383.081, Local Government Code, is
3-26     amended to read as follows:
3-27           Sec. 383.081.  ISSUANCE OF BONDS.  (a)  The district may
 4-1     issue bonds for the purpose of defraying all or part of the cost of
 4-2     any project authorized by [as provided in] this chapter.  [Sections
 4-3     375.201 through 375.208 apply to a district to the extent not
 4-4     inconsistent with this chapter.]
 4-5           (b)  Bonds of the district shall be submitted to the attorney
 4-6     general for approval as required by Chapter 53, Acts of the 70th
 4-7     Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
 4-8     Texas Civil Statutes).  Bonds issued by a district created after
 4-9     June 1, 1999, do not require approval as provided by Section
4-10     50.107, Water Code.
4-11           (c)  Notwithstanding Section 375.161, the bonds of a district
4-12     created after June 1, 1999, may be repaid from any source of tax or
4-13     revenue, including assessments on real property.
4-14           SECTION 8.  Subchapter F, Chapter 383, Local Government Code,
4-15     is amended by adding Section 383.107 to read as follows:
4-16           Sec. 383.107.  CONTRACTS AND PROGRAMS FOR USE OF TAXES AND
4-17     REVENUE.  A district created after June 1, 1999, may establish a
4-18     program and enter into an economic development agreement under
4-19     which the taxes and revenue collected by the district may be spent
4-20     to stimulate business, commercial, or economic development activity
4-21     in the county in which the district is located.
4-22           SECTION 9.  Section 352.107, Tax Code, is amended to read as
4-23     follows:
4-24           Sec. 352.107.  HOTEL TAX AUTHORIZED FOR COUNTY DEVELOPMENT
4-25     DISTRICTS.  Notwithstanding any other provision of this chapter to
4-26     the contrary, a commissioners court of a county with a population
4-27     of less than 600,000 [400,000] may impose a hotel occupancy tax not
 5-1     to exceed seven percent on a person who pays for the use or
 5-2     possession or for the right to the use or possession of a room in a
 5-3     hotel ordinarily used for sleeping that is located within the
 5-4     boundaries of the county development district created under
 5-5     [Subchapter D,] Chapter 383, Local Government Code [312], and that
 5-6     is not located within the corporate limits of a municipality,
 5-7     subject to the limitations set forth in Sections 352.002(b) and
 5-8     (c).  Taxes collected by a county under this section shall be
 5-9     remitted to the county development district not later than the 10th
5-10     day after the date the county receives such funds and may be used
5-11     by the district for the purposes of attracting visitors and
5-12     tourists to the county.  If two or more county development
5-13     districts include the same parcel of land, a hotel occupancy tax
5-14     may be collected only for the first district to include the parcel
5-15     [for which sales and use tax proceeds may be used by the district].
5-16           SECTION 10.  The importance of this legislation and the
5-17     crowded condition of the calendars in both houses create an
5-18     emergency and an imperative public necessity that the
5-19     constitutional rule requiring bills to be read on three several
5-20     days in each house be suspended, and this rule is hereby suspended,
5-21     and that this Act take effect and be in force from and after its
5-22     passage, and it is so enacted.