By Uher H.B. No. 3567
76R7852 DRH-F
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 383.002, Local Government Code, is
1-5 amended to read as follows:
1-6 Sec. 383.002. LEGISLATIVE INTENT. This chapter furthers the
1-7 public purpose of developing and diversifying the economy of this
1-8 state by providing incentives for the location and development of
1-9 projects in certain counties to attract visitors, [and] tourists,
1-10 or residents.
1-11 SECTION 2. Sections 383.003(a) and (b), Local Government
1-12 Code, are amended to read as follows:
1-13 (a) Small and medium-sized counties in this state need
1-14 programs and the authority to spend public money [incentives] for
1-15 the development of public improvements or projects to attract
1-16 visitors, [and] tourists, or residents to those counties, and those
1-17 counties are at a disadvantage in competing with counties in other
1-18 states for the location and development of public improvements or
1-19 projects that attract visitors, tourists, or residents by virtue of
1-20 the availability and prevalent use of financial incentives in other
1-21 states.
1-22 (b) The means and measures authorized by this chapter are in
1-23 the public interest and serve a public purpose of this state in
1-24 promoting the economic welfare of the residents of this state by
2-1 providing incentives for the location and development in certain
2-2 counties of this state of projects that attract visitors, [and]
2-3 tourists, or residents and that result in employment and economic
2-4 activity.
2-5 SECTION 3. Section 383.004, Local Government Code, is
2-6 amended by amending Subdivision (8) and adding Subdivisions (9) and
2-7 (10) to read as follows:
2-8 (8) "Project" has the meaning assigned by Section
2-9 4B(a)(2), Development Corporation Act of 1979 (Article 5190.6,
2-10 Vernon's Texas Civil Statutes) and also includes:
2-11 (A) a facility for freshwater supply, storage,
2-12 and distribution;
2-13 (B) sanitary sewer collection, transportation,
2-14 and treatment;
2-15 (C) storm water drainage control, collection,
2-16 detention, retention, and run-off; and
2-17 (D) roads, streets, bridges, or other
2-18 transportation facilities that accomplish a purpose of this
2-19 chapter.
2-20 (9) "Resident" means a person who resides in the
2-21 county in which the district is located.
2-22 (10) "Visitor" means a person visiting for a business,
2-23 governmental, recreational, personal, health, educational,
2-24 commercial, economic development, or other purpose.
2-25 SECTION 4. Section 383.021(a), Local Government Code, is
2-26 amended to read as follows:
2-27 (a) The commissioners court of a county with a population of
3-1 600,000 [400,000] or less, on petition of the owners of land in a
3-2 proposed district, may commence the creation of a county
3-3 development district.
3-4 SECTION 5. Section 383.023, Local Government Code, is
3-5 amended to read as follows:
3-6 Sec. 383.023. CONTENTS OF PETITION. The petition must:
3-7 (1) describe the boundaries of the proposed district
3-8 by metes and bounds or by lot and block number, if there is a
3-9 recorded map or plat and survey of the area;
3-10 (2) include a name for the proposed district, which
3-11 must include the name of the county followed by the words
3-12 "Development District No.______";
3-13 (3) include the names of five persons who are willing
3-14 and qualified to serve as temporary directors of the proposed
3-15 district;
3-16 (4) state the general nature of the work proposed to
3-17 be done and the cost of the project as then estimated by the
3-18 petitioners; and
3-19 (5) state the necessity and feasibility of the
3-20 proposed district and whether the district will serve the public
3-21 purpose of attracting visitors, [and] tourists, or residents to the
3-22 county.
3-23 SECTION 6. Section 383.027, Local Government Code, is
3-24 amended by amending Subsection (a) and adding Subsections (c) and
3-25 (d) to read as follows:
3-26 (a) After the hearing, if the commissioners court finds that
3-27 the petition conforms to the requirements of Section 383.022 and
4-1 that the creation of the district and the proposed project is
4-2 feasible and necessary and would serve a [the public] purpose of
4-3 this chapter [attracting visitors and tourists to the county], the
4-4 commissioners court shall make that finding and enter an order
4-5 creating the district. The order creating the district may specify
4-6 the cost to the county of publishing notice and conducting hearings
4-7 for the creation of the district together with the cost of
4-8 conducting the confirmation and sales and use tax election. The
4-9 county may require the petitioner to pay to the county the amounts
4-10 specified in the order creating the district at the time the order
4-11 becomes final.
4-12 (c) An appeal of an order creating a district under
4-13 Subsection (a) must be filed in a district court of the county in
4-14 which the district is created not later than the 30th day after the
4-15 date of the order. If an appeal is not filed within that time, the
4-16 order becomes final and may not be appealed, and a finding in the
4-17 order becomes incontestable. After the order becomes final, the
4-18 district may exercise any of the powers granted to the district as
4-19 determined by the board.
4-20 (d) The commissioners court, with the written consent of the
4-21 owner of the fee simple title of property, may include the property
4-22 in more than one county development district.
4-23 SECTION 7. Section 383.033(b), Local Government Code, is
4-24 amended to read as follows:
4-25 (b) The ballot shall be printed to permit voting for or
4-26 against the proposition: "The creation of ____________ County
4-27 Development District No. _____ and the adoption of a proposed local
5-1 sales and use tax rate of _____ (the rate specified in the election
5-2 order) to be used for _______ (the purpose specified in the
5-3 election order) [the promotion and development of tourism]."
5-4 SECTION 8. Section 383.061, Local Government Code, is
5-5 amended by adding Subsections (d) and (e) to read as follows:
5-6 (d) A district may contract with any other district or
5-7 person as necessary to carry out a power or duty of the district
5-8 under this chapter.
5-9 (e) A district may enter into a contract with the county
5-10 under which the district agrees not to call an election to
5-11 authorize an ad valorem tax without the written approval of the
5-12 county.
5-13 SECTION 9. Section 383.081, Local Government Code, is
5-14 amended to read as follows:
5-15 Sec. 383.081. ISSUANCE OF BONDS. (a) The district may
5-16 issue bonds for the purpose of defraying all or part of the cost of
5-17 any project authorized by [as provided in] this chapter. [Sections
5-18 375.201 through 375.208 apply to a district to the extent not
5-19 inconsistent with this chapter.]
5-20 (b) Bonds of the district shall be submitted to the attorney
5-21 general for approval as required by Chapter 53, Acts of the 70th
5-22 Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's
5-23 Texas Civil Statutes). Bonds issued by the district do not require
5-24 approval as provided by Section 375.208.
5-25 (c) Notwithstanding Section 375.162, a district's bonds may
5-26 be repaid from any source of tax or revenue, including assessments
5-27 on residential property.
6-1 SECTION 10. Subchapter F, Chapter 383, Local Government
6-2 Code, is amended by adding Section 383.107 to read as follows:
6-3 Sec. 383.107. CONTRACTS AND PROGRAMS FOR USE OF TAXES AND
6-4 REVENUE. A district may establish a program and enter into an
6-5 economic development agreement with any person under which the
6-6 taxes and revenue collected by the district may be spent to
6-7 stimulate business, commercial, or residential activity in the
6-8 county in which the district is located:
6-9 (1) for state or local economic development;
6-10 (2) for small or disadvantaged business development;
6-11 (3) to encourage business location in the county and
6-12 commercial and residential development in the county; or
6-13 (4) to improve the award of contracts to businesses
6-14 owned by women or minorities.
6-15 SECTION 11. Section 352.107, Tax Code, is amended to read as
6-16 follows:
6-17 Sec. 352.107. HOTEL TAX AUTHORIZED FOR COUNTY DEVELOPMENT
6-18 DISTRICTS. Notwithstanding any other provision of this chapter to
6-19 the contrary, a commissioners court of a county with a population
6-20 of less than 600,000 [400,000] may impose a hotel occupancy tax not
6-21 to exceed seven percent on a person who pays for the use or
6-22 possession or for the right to the use or possession of a room in a
6-23 hotel ordinarily used for sleeping that is located within the
6-24 boundaries of the county development district created under
6-25 [Subchapter D,] Chapter 383, Local Government Code [312], and that
6-26 is not located within the corporate limits of a municipality,
6-27 subject to the limitations set forth in Sections 352.002(b) and
7-1 (c). Taxes collected by a county under this section shall be
7-2 remitted to the county development district not later than the 10th
7-3 day after the date the county receives such funds and may be used
7-4 by the district for the purposes for which sales and use tax
7-5 proceeds may be used by the district. If two or more county
7-6 development districts include the same parcel of land, a hotel
7-7 occupancy tax may be collected only for the first district to
7-8 include the parcel.
7-9 SECTION 12. (a) Except as provided by Subsection (b), an
7-10 action taken by the board of directors of a county development
7-11 district created under Chapter 383, Local Government Code, before
7-12 the effective date of this Act is validated as of the date the
7-13 action was taken.
7-14 (b) Subsection (a) does not apply to an action that on the
7-15 effective date of this Act:
7-16 (1) is involved in litigation if the litigation
7-17 ultimately results in the action being held invalid by a final
7-18 judgment of a court; or
7-19 (2) has been held invalid by a final judgment of a
7-20 court.
7-21 SECTION 13. The importance of this legislation and the
7-22 crowded condition of the calendars in both houses create an
7-23 emergency and an imperative public necessity that the
7-24 constitutional rule requiring bills to be read on three several
7-25 days in each house be suspended, and this rule is hereby suspended,
7-26 and that this Act take effect and be in force from and after its
7-27 passage, and it is so enacted.