By Swinford, et al. H.B. No. 1880
77R7327 BDH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, operation, and administration of
1-3 agricultural development districts and granting the power of
1-4 eminent domain and the authority to issue bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Title 4, Agriculture Code, is amended by adding
1-7 Chapter 60 to read as follows:
1-8 CHAPTER 60. TEXAS AGRICULTURAL DEVELOPMENT DISTRICTS
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 60.001. SHORT TITLE. This chapter may be cited as the
1-11 Agricultural Development District Act.
1-12 Sec. 60.002. LEGISLATIVE INTENT. This chapter furthers the
1-13 public purpose of improving the economy of this state by providing
1-14 incentives for the development of agricultural operations and
1-15 facilities.
1-16 Sec. 60.003. FINDINGS. (a) Agriculture is a critical
1-17 element in Texas' economic, cultural, and historical development
1-18 but is under considerable pressure as a result of market
1-19 concentration, competitive forces, adverse weather conditions,
1-20 urbanization, and other factors.
1-21 (b) Agriculture is a vital component of a diversified state
1-22 economy, creates numerous economic opportunities, and serves to
1-23 renew the state's natural resources through the annual production
1-24 of crops and livestock and the use and reuse of agricultural
2-1 by-products.
2-2 (c) The state must increase economic opportunities,
2-3 including value-added operations, to keep more agriculture-based
2-4 activity in the state and ensure that agriculture remains a vital
2-5 force in the economy. In order to accomplish this goal, the state
2-6 must provide incentives to promote the development of agricultural
2-7 facilities.
2-8 (d) The means and measures authorized by this chapter are in
2-9 the public interest and serve a public purpose of this state in
2-10 promoting the development of agricultural facilities and operations
2-11 by providing incentives for the development of projects that result
2-12 in employment and economic activity.
2-13 (e) The creation of agricultural development districts is
2-14 essential to accomplish the purposes of Section 52-a, Article III,
2-15 Texas Constitution, and to accomplish the other public purposes
2-16 stated in this chapter and further serves the purposes of Section
2-17 59, Article XVI, and Section 52, Article III, Texas Constitution.
2-18 Sec. 60.004. DEFINITIONS. In this chapter:
2-19 (1) "Assessment" means a charge levied against real
2-20 property located within a district's boundaries or against an
2-21 agricultural product produced on real property in the district to
2-22 pay the costs associated with the district's purposes, including a
2-23 reassessment or supplemental assessment.
2-24 (2) "Board" means the board of directors of a
2-25 district.
2-26 (3) "Bond" means an obligation issued by a district
2-27 under this chapter, including a bond, certificate, note, or other
3-1 evidence of indebtedness.
3-2 (4) "Director" means a member of the board of
3-3 directors of a district.
3-4 (5) "District" means a Texas Agricultural Development
3-5 District established under this chapter.
3-6 (6) "Project" means an agricultural project designated
3-7 under Section 60.054.
3-8 Sec. 60.005. GOVERNMENTAL AGENCY; TORT CLAIMS. A district is
3-9 a governmental agency, a body politic and corporate, and a
3-10 political subdivision of this state. Section 375.004, Local
3-11 Government Code, applies to a district.
3-12 Sec. 60.006. PURPOSE AND NATURE OF DISTRICT. (a) A district
3-13 is created as a conservation and reclamation district under Section
3-14 59, Article XVI, Texas Constitution, to:
3-15 (1) conserve and develop the natural resources of this
3-16 state, including agricultural resources;
3-17 (2) conserve the soil for agricultural use; and
3-18 (3) reclaim or drain overflowed lands or provide
3-19 necessary irrigation for natural agricultural resources.
3-20 (b) A district created under this chapter exercises public
3-21 and essential governmental functions.
3-22 (c) Chapter 49, Water Code, does not apply to a district,
3-23 except as provided by Section 60.061.
3-24 (d) The creation of a district is essential to accomplish
3-25 the purposes of Section 52-a, Article III, Texas Constitution, and
3-26 other public purposes stated in this chapter.
3-27 (Sections 60.007-60.020 reserved for expansion
4-1 SUBCHAPTER B. CREATION OF DISTRICT
4-2 Sec. 60.021. PETITION TO ESTABLISH DISTRICT. (a) On
4-3 petition of at least 10 residents of a county included within a
4-4 proposed district, the commissioners court of a county in which an
4-5 agricultural facility of the proposed district is to be located may
4-6 commence the creation of a district.
4-7 (b) The creation of the district is subject to a
4-8 confirmation election held as provided by this subchapter.
4-9 (c) A district may consist of parcels of land that are:
4-10 (1) not contiguous; and
4-11 (2) located in one or more counties.
4-12 (d) Not later than the 10th day following the date of
4-13 receipt of a petition, the commissioners court shall provide notice
4-14 of the receipt of the petition and a copy of the petition to:
4-15 (1) the commissioners court of each other county
4-16 located in whole or in part in the proposed district; and
4-17 (2) the governing body of each municipality located in
4-18 whole or in part in the proposed district.
4-19 Sec. 60.022. CONTENTS OF PETITION. A petition filed under
4-20 Section 60.021 must:
4-21 (1) describe the boundaries of the proposed district
4-22 by metes and bounds or by lot and block number, if there is a
4-23 recorded map or plat and survey of the area;
4-24 (2) include a name for the proposed district, which
4-25 must include the term "Agricultural Development District";
4-26 (3) be signed by the landowners of any land to be
4-27 included within the proposed district and provide an acknowledgment
5-1 that the landowners desire the land to be included in the district;
5-2 (4) include the names of at least five persons who are
5-3 willing and qualified to serve as temporary directors of the
5-4 district;
5-5 (5) name each county in which any agricultural
5-6 facilities to be owned by the district are to be located;
5-7 (6) state the general nature of the proposed
5-8 development and the cost of the development as then estimated by
5-9 the petitioners;
5-10 (7) state the necessity and feasibility of the
5-11 proposed district and whether the district will serve the public
5-12 purpose of furthering agricultural interests;
5-13 (8) include a pledge that the district will make
5-14 payments in lieu of taxes to any school district and county in
5-15 which any real property to be owned by the district is located, as
5-16 follows:
5-17 (A) annual payments to each entity equal to the
5-18 amount of taxes imposed on the real property by the entity in the
5-19 year of the district's creation; and
5-20 (B) a payment to each entity equal to the amount
5-21 that would be due under Section 23.55, Tax Code, on the district's
5-22 date of creation; and
5-23 (9) include a pledge that, if the district employs
5-24 more than 50 persons, the district will make payments in lieu of
5-25 taxes to any school district, in addition to those made under
5-26 Subdivision (8), in an amount negotiated between the district and
5-27 the school district.
6-1 Sec. 60.023. COMMISSIONERS COURT TO CALL PUBLIC HEARING.
6-2 Before the 30th day after the date a petition is received, the
6-3 commissioners court shall call a public hearing at which the
6-4 petition will be considered. The notice of the hearing must state
6-5 that any person may appear and present evidence or testify for or
6-6 against the creation of the district.
6-7 Sec. 60.024. ADDITIONAL NOTICE OF PUBLIC HEARING. In
6-8 addition to other notice required by law, before the 14th day
6-9 before the date of the public hearing, notice of the hearing shall
6-10 be mailed to the persons who signed the petition and be published
6-11 in a newspaper with general circulation in the county with the most
6-12 land within the proposed district.
6-13 Sec. 60.025. PUBLIC HEARING. (a) At the public hearing, the
6-14 commissioners court shall examine the petition to ascertain its
6-15 sufficiency.
6-16 (b) Any interested person may appear at the public hearing
6-17 to offer evidence or testimony on the sufficiency of the petition
6-18 and whether the district should be created.
6-19 Sec. 60.026. ACTION ON PETITION. (a) After the hearing, if
6-20 the commissioners court finds that the petition conforms to the
6-21 requirements of Section 60.022 and that the creation of the
6-22 district and the proposed development is feasible and necessary and
6-23 would serve the public purpose of economic development in the
6-24 counties to be included in the district, the commissioners court
6-25 shall make that finding and enter an order granting the petition
6-26 and creating the district.
6-27 (b) The order may specify the cost of publishing notice and
7-1 conducting hearings for the creation of the district together with
7-2 the cost of conducting the confirmation election. A county may
7-3 require the petitioners to pay the county the appropriate amounts
7-4 specified in the order creating the district at the time the order
7-5 becomes final.
7-6 (c) If the commissioners court finds that the petition does
7-7 not conform to the requirements of Section 60.022 or that the
7-8 creation of the district and the proposed project is not feasible
7-9 and necessary and would not serve the public purpose of economic
7-10 development in the counties to be included in the district, the
7-11 commissioners court shall make that finding in an order and deny
7-12 the petition.
7-13 Sec. 60.027. TEMPORARY DIRECTORS; VACANCY IN OFFICE. (a)
7-14 If the commissioners court grants the petition, it shall appoint as
7-15 temporary directors of the district five persons who are qualified
7-16 under this chapter to serve as directors.
7-17 (b) A vacancy in the office of temporary directors shall be
7-18 filled by appointment by the commissioners court.
7-19 Sec. 60.028. QUALIFICATION AND BOND OF TEMPORARY DIRECTORS.
7-20 Each temporary director shall execute a bond in accordance with
7-21 Section 60.087 and shall take the oath of office.
7-22 Sec. 60.029. ELECTION TO CONFIRM DISTRICT AND INITIAL
7-23 PERMANENT DIRECTORS. The temporary board of directors shall
7-24 conduct an election in the district to confirm the creation of the
7-25 district and to confirm the initial permanent directors.
7-26 Sec. 60.030. ELECTION ORDER. An order calling an election
7-27 under Section 60.029 must state:
8-1 (1) the nature of the election, the proposition to
8-2 appear on the ballot, and the names of at least five persons to
8-3 serve as the initial permanent members of the board of directors;
8-4 (2) the number and terms of directors on the board and
8-5 the manner of selection of board members;
8-6 (3) the date of the election;
8-7 (4) the hours during which the polls will be open; and
8-8 (5) the location of the polling places.
8-9 Sec. 60.031. NOTICE. In addition to other notice required
8-10 by law, the temporary directors shall give notice of the election
8-11 by publishing the substance of the election order in a newspaper
8-12 with general circulation in the county in which the most land
8-13 within the proposed district is located. The notice must be
8-14 published before the 14th day before the date set for the election.
8-15 Sec. 60.032. CONDUCT OF ELECTION. (a) The election shall be
8-16 held in accordance with the Election Code, to the extent not
8-17 inconsistent with this chapter.
8-18 (b) The ballot shall be printed to permit:
8-19 (1) voting for or against the proposition: "The
8-20 creation of __________ Agricultural Development District and
8-21 confirmation of the initial permanent directors of the district";
8-22 and
8-23 (2) naming of the proposed initial permanent
8-24 directors.
8-25 Sec. 60.033. ELECTION RESULTS. (a) After the election, the
8-26 presiding judge shall make returns of the result to the temporary
8-27 board of directors. The temporary board of directors shall canvass
9-1 the returns and declare the results.
9-2 (b) If a majority of the votes cast in the election favor
9-3 the creation of the district, the temporary board shall order the
9-4 district to be created and the persons named on the ballot to serve
9-5 as the initial permanent directors and shall enter the order in its
9-6 minutes. If a majority of the votes cast in the election do not
9-7 favor the creation of the district, the temporary board shall
9-8 declare the proposition to create the district as defeated and
9-9 enter the result in its minutes.
9-10 (c) A certified copy of the temporary board's order creating
9-11 the district or of the declaration that the proposition to create
9-12 the district was defeated shall be sent to the commissioners court
9-13 of each county included in the district by certified or registered
9-14 mail. The board shall include with the order or declaration the
9-15 date of the election, the ballot proposition, and the number of
9-16 votes cast for or against the proposition.
9-17 (d) In the event 10 or fewer votes are cast in the election,
9-18 not later than the 90th day following the date of the order
9-19 canvassing the election, the temporary board shall submit the
9-20 proceedings of the election, including voter affidavits as to
9-21 residency and qualification to vote, to the attorney general.
9-22 (Sections 60.034-60.050 reserved for expansion
9-23 SUBCHAPTER C. DISTRICT POWERS AND DUTIES
9-24 Sec. 60.051. GENERAL POWERS AND DUTIES. (a) A district has
9-25 the powers and duties that are prescribed by this chapter and that
9-26 are necessary or desirable to carry out a power or duty expressly
9-27 or implicitly granted to the district under this chapter.
10-1 (b) A district may own or implement more than one project
10-2 under this chapter.
10-3 (c) A district may merge with another district or districts
10-4 provided that the board of each district agrees to the merger.
10-5 (d) A district may perform acts necessary to carry out the
10-6 purposes of this chapter.
10-7 (e) A district may not impose an ad valorem tax.
10-8 (f) A district may make payments in lieu of taxes to a
10-9 school district or county in the manner provided by Section
10-10 60.022(8).
10-11 (g) To the extent consistent with the purposes of this
10-12 chapter, a district may enter into an installment purchase contract
10-13 to acquire goods or services for the district.
10-14 Sec. 60.052. ECONOMIC DEVELOPMENT. A district may encourage
10-15 the economic development of the area in which the district is
10-16 located by:
10-17 (1) fostering the growth of agricultural enterprises;
10-18 (2) stimulating innovation in agricultural
10-19 enterprises;
10-20 (3) seeking to eliminate unemployment or
10-21 underemployment in the state; and
10-22 (4) developing or expanding transportation resources
10-23 for agricultural purposes.
10-24 Sec. 60.053. AGRICULTURAL DEVELOPMENT. (a) A district may:
10-25 (1) promote all agricultural enterprises, facilities,
10-26 and services of the district;
10-27 (2) encourage the maintenance and conservation of soil
11-1 and water in the district;
11-2 (3) acquire, design, construct, and operate an
11-3 agricultural enterprise; and
11-4 (4) expand, develop, and diversify production,
11-5 processing, marketing, and export of Texas agricultural products.
11-6 (b) A district may acquire property as necessary, including
11-7 vehicles, farm equipment, and other machinery and related
11-8 facilities for the harvesting, processing, storage, packaging,
11-9 distribution, and transportation of agricultural products or
11-10 by-products.
11-11 Sec. 60.054. AGRICULTURAL PROJECTS. (a) The district may
11-12 designate as an agricultural project a project that relates to the
11-13 development of agriculture in the district and surrounding areas
11-14 and the preservation and conservation of the soil and water in the
11-15 district for agricultural purposes.
11-16 (b) A project designated under Subsection (a) must be
11-17 approved by:
11-18 (1) the department; and
11-19 (2) the county commissioners court that issued the
11-20 district's creation order.
11-21 (c) The cost of a project, including interest during
11-22 construction and costs of issuance of bonds, may be paid from any
11-23 source, including proceeds of district bonds.
11-24 (d) The implementation of a project is a governmental
11-25 function or service for purposes of Chapter 791, Government Code.
11-26 Sec. 60.055. TRANSPORTATION DEVELOPMENT; NAVIGATION
11-27 DISTRICTS. (a) The district may encourage the transportation and
12-1 distribution of the district's agricultural products through the
12-2 development and operation of transportation structures necessary to
12-3 further the purposes of this chapter, including railroads, toll
12-4 roads, and private roads.
12-5 (b) The district may cooperate and contract with any
12-6 navigation district on any area of mutual interest.
12-7 Sec. 60.056. AGREEMENTS; DONATIONS. (a) The district may:
12-8 (1) make an agreement with any person for any district
12-9 purpose, including an agreement:
12-10 (A) to acquire, construct, operate, or maintain
12-11 an agricultural enterprise;
12-12 (B) with a municipality or county to provide law
12-13 enforcement services in the district on a fee basis; or
12-14 (C) under a qualified management contract for
12-15 the operation of an agricultural facility; and
12-16 (2) accept a donation, grant, or loan from any person.
12-17 (b) The district, a county, and any other political
12-18 subdivision may contract to implement a district project or assist
12-19 the district in providing a service authorized by this chapter. A
12-20 contract under this subsection may provide:
12-21 (1) for payment from a district assessment or other
12-22 revenue; or
12-23 (2) that an assessment or other revenue collected from
12-24 a district project, or from a person using or purchasing a
12-25 commodity or service from a district project, may be paid or
12-26 rebated to the district.
12-27 Sec. 60.057. PROPERTY. The district may acquire or dispose
13-1 of property in any manner, including by:
13-2 (1) conveyance;
13-3 (2) mortgage; or
13-4 (3) lease, as lessor or lessee.
13-5 Sec. 60.058. EMINENT DOMAIN. The district may exercise the
13-6 power of eminent domain for the purpose of acquiring an
13-7 agricultural facility in order to own, operate, or maintain its
13-8 functional capabilities or the land on which an agricultural
13-9 facility is to be built, if the land will be owned by the district.
13-10 The use of the land may be the subject of a lease agreement entered
13-11 into by the district.
13-12 Sec. 60.059. RESEARCH. The district may conduct or pay for
13-13 research for agricultural purposes.
13-14 Sec. 60.060. SUITS. (a) The district may sue and be sued.
13-15 (b) In a suit against the district, process may be served on
13-16 a director or registered agent.
13-17 (c) The district may not be required to give a bond on an
13-18 appeal or writ of error in a civil case that the district is
13-19 prosecuting or defending.
13-20 (d) The district may indemnify a director or district
13-21 employee or a former director or district employee for reasonable
13-22 expenses and costs, including attorney's fees, incurred by that
13-23 person in connection with a claim asserted against that person if:
13-24 (1) the claim relates to an act or omission of the
13-25 person when acting in the scope of the person's board membership or
13-26 district employment; and
13-27 (2) the person has not been found liable or guilty on
14-1 the claim.
14-2 Sec. 60.061. ANNEXATION; EXCLUDING TERRITORY. (a) The
14-3 district may annex land as provided by Section 49.301 or 49.302,
14-4 Water Code, except that the references in those sections related to
14-5 taxes do not apply. As provided by those sections, the district
14-6 may annex land that is not adjacent or contiguous to the district.
14-7 (b) The board on its own motion may call a hearing on the
14-8 question of the exclusion of land from the district in the manner
14-9 provided by Section 49.304 or 49.307, Water Code, if the proposed
14-10 exclusion is practicable, just, or desirable.
14-11 (c) The board shall call a hearing on the exclusion of land
14-12 or other property from the district in the manner provided by
14-13 Section 49.304 or 49.307, Water Code, if a property owner in the
14-14 district files with the board secretary a written petition
14-15 requesting the hearing before the district issues any bonds.
14-16 (d) The district may annex land only with the written
14-17 consent of the owner of the land to be annexed. The consent must
14-18 include a statement that the owner of the land to be annexed
14-19 understands that the land, once included in the district, will be
14-20 subject to assessments imposed by the district.
14-21 Sec. 60.062. POWERS BEYOND DISTRICT TERRITORY. The district
14-22 may exercise any of its powers outside the boundaries of the
14-23 district, except the power to impose assessments and the power of
14-24 eminent domain, if the board determines that there is a benefit to
14-25 the district in exercising that power.
14-26 Sec. 60.063. NOTICE TO PURCHASERS. (a) Any person who
14-27 proposes to sell or convey real property located in a district must
15-1 first give to the purchaser written notice that the property is
15-2 located in the district. The notice must be given to the
15-3 prospective purchaser prior to execution of a binding contract of
15-4 sale and purchase either separately or as an addendum or paragraph
15-5 of a purchase contract. The purchaser shall sign the notice as
15-6 evidence of receipt.
15-7 (b) At the closing of the purchase and sale, a separate copy
15-8 of the notice with current information about the district and its
15-9 right to impose assessments on land within its boundaries, which
15-10 conveys with the land, shall be executed by the seller and
15-11 purchaser and recorded in the deed records of the county in which
15-12 the property is located.
15-13 (c) If notice is given at closing, a purchaser or the
15-14 purchaser's heirs, successors, or assigns may not maintain any
15-15 action for damages or maintain any action against the seller, title
15-16 insurance company, real estate brokers, or lienholder, or any
15-17 agent, representative, or person acting in their behalf, by reason
15-18 of the imposition of fees or assessments by the district authorized
15-19 by this chapter.
15-20 Sec. 60.064. OFFICIAL SEAL. The district may adopt an
15-21 official seal for the district.
15-22 Sec. 60.065. LIMIT ON DISTRICT POWERS. The district may not
15-23 exercise a power unless it furthers the purposes of this chapter.
15-24 (Sections 60.066-60.080 reserved for expansion
15-25 SUBCHAPTER D. BOARD OF DIRECTORS
15-26 Sec. 60.081. BOARD OF DIRECTORS. (a) The district is
15-27 governed by a board of directors selected in the manner provided by
16-1 the order issued under Section 60.030. On approval of the county
16-2 commissioners court of each county in which the district is
16-3 located, the board may increase or decrease the number of directors
16-4 on the board by resolution if the board finds that to do so is in
16-5 the best interest of the district.
16-6 (b) The directors serve terms as provided by the order
16-7 issued under Section 60.030.
16-8 (c) To serve as a director, a person must be at least 18
16-9 years old and:
16-10 (1) reside in the district; or
16-11 (2) own real property in the district.
16-12 (d) The board shall elect from among its members a
16-13 president, vice president, and secretary. The board by rule may
16-14 provide for the election of other officers.
16-15 Sec. 60.082. VACANCIES. The remaining directors shall fill
16-16 by appointment for the unexpired term a vacancy in the office of
16-17 director.
16-18 Sec. 60.083. BOARD MEETINGS. The board shall meet at least
16-19 once every three months and at the call of the presiding officer or
16-20 a majority of the directors.
16-21 Sec. 60.084. MANAGEMENT OF DISTRICT. (a) The board has
16-22 control over and shall manage the affairs of the district and may
16-23 employ any person, firm, partnership, or corporation the board
16-24 considers necessary for conducting the affairs of the district,
16-25 including engineers, attorneys, financial advisors, a general
16-26 manager, operations personnel, auditors, and secretaries.
16-27 (b) The board may require an officer or employee to execute
17-1 a bond payable to the district and conditioned on the faithful
17-2 performance of the person's duties.
17-3 (c) The board may remove any district employee.
17-4 (d) The board may adopt rules necessary or convenient to
17-5 carry out district powers and duties to govern its affairs.
17-6 (e) The board may adopt rules to preserve the public health
17-7 and welfare concerning the agricultural products submitted to the
17-8 district for harvesting, processing, distributing, or transporting.
17-9 (f) The board may adopt rules on the priority of the use of
17-10 district property and services, including the payment of fees.
17-11 Sec. 60.085. HEARINGS. (a) The board may conduct hearings
17-12 and take evidence on any matter before the board.
17-13 (b) The board may appoint a hearings examiner to conduct a
17-14 hearing called by the board. The hearings examiner may be a
17-15 district employee or director.
17-16 Sec. 60.086. COMPENSATION AND EXPENSES. A director serves
17-17 without compensation but is entitled to be reimbursed by the
17-18 district for a reasonable and necessary expense incurred in
17-19 performing an official duty.
17-20 Sec. 60.087. DIRECTOR'S BOND. (a) As soon as practicable
17-21 after a director is appointed or elected, the director shall
17-22 execute a $10,000 bond payable to the district and conditioned on
17-23 the faithful performance of the director's duties.
17-24 (b) Each director's bond must be approved by the board.
17-25 (c) The bond shall be filed with and retained by the
17-26 district.
17-27 Sec. 60.088. CONFLICTS OF INTEREST; AFFIDAVIT OF INTEREST.
18-1 (a) Except as provided in this section:
18-2 (1) a director may participate in all board votes and
18-3 decisions; and
18-4 (2) Chapter 171, Local Government Code, governs
18-5 conflicts of interest for directors.
18-6 (b) Section 171.004, Local Government Code, does not apply
18-7 to the district. A director who has a substantial interest in a
18-8 business or charitable entity that will receive a pecuniary benefit
18-9 from a board action shall file a one-time affidavit declaring the
18-10 interest. An additional affidavit is not required if the
18-11 director's interest changes. After the affidavit is filed with the
18-12 board secretary, the director may participate in a discussion or
18-13 vote on that action if:
18-14 (1) a majority of the directors have similar interests
18-15 in the same entity; or
18-16 (2) all similar business or charitable entities in the
18-17 district will receive a similar pecuniary benefit.
18-18 (c) A director who is also an officer or employee of another
18-19 public entity may not participate in the discussion of or vote on a
18-20 matter regarding a contract with that other public entity.
18-21 (d) For purposes of this section, a director has a
18-22 substantial interest in a business or charitable entity in the same
18-23 manner that a person would have a substantial interest in a
18-24 business entity under Section 171.002, Local Government Code.
18-25 (Sections 60.089-60.100 reserved for expansion
18-26 SUBCHAPTER E. FINANCES; BONDS
18-27 Sec. 60.101. MISCELLANEOUS FINANCIAL POWERS AND DUTIES. (a)
19-1 The district may:
19-2 (1) impose a charge for using land, a facility, or a
19-3 service the district provides;
19-4 (2) issue bonds as provided by this subchapter;
19-5 (3) borrow money for any corporate purpose or
19-6 combination of purposes;
19-7 (4) loan money;
19-8 (5) invest money under its control in an investment
19-9 permitted by Chapter 2256, Government Code;
19-10 (6) select a depositor;
19-11 (7) establish a system of accounts for the district;
19-12 and
19-13 (8) set the fiscal year for the district.
19-14 (b) The board by rule shall establish the procedure and
19-15 number of directors' signatures required to disburse or transfer
19-16 district money.
19-17 Sec. 60.102. REPAYMENT OF ORGANIZATIONAL EXPENSES. The
19-18 directors may pay:
19-19 (1) all costs and expenses necessarily incurred in the
19-20 creation and organization of the district;
19-21 (2) the cost of investigation and making plans,
19-22 including the cost of feasibility analyses, engineering reports,
19-23 design fees, and other necessary costs; and
19-24 (3) legal fees.
19-25 Sec. 60.103. BONDS. (a) The district may issue any type of
19-26 bond, including an anticipation note or refunding bond, for any
19-27 district purpose. A bond may be issued under Chapter 1371,
20-1 Government Code.
20-2 (b) When authorizing the issuance of a bond, the district
20-3 may also authorize the later issuance of a parity or subordinate
20-4 lien bond.
20-5 (c) A district bond must:
20-6 (1) mature not later than 40 years after its date of
20-7 issuance; and
20-8 (2) state on its face that the bond is not an
20-9 obligation of the state.
20-10 (d) A district bond may be payable from or secured by:
20-11 (1) any source of money, including district revenue,
20-12 loans, or assessments; or
20-13 (2) a lien, pledge, mortgage, or other security
20-14 interest on district revenue or property.
20-15 (e) The district may use bond proceeds for any purpose,
20-16 including to pay:
20-17 (1) into a reserve fund for debt service;
20-18 (2) for the acquisition, design, construction, repair,
20-19 maintenance, or replacement of property, including buildings and
20-20 equipment;
20-21 (3) administrative and operating expenses;
20-22 (4) all expenses incurred or that will be incurred in
20-23 the issuance, sale, and delivery of the bonds;
20-24 (5) the principal of and interest on bonds; or
20-25 (6) for the operation of an agricultural enterprise.
20-26 (f) The district may contract with a bondholder to impose an
20-27 assessment to pay for the operation of an agricultural enterprise.
21-1 Sec. 60.104. APPROVAL OF ASSESSMENT BONDS. A bond secured by
21-2 an assessment may not be issued unless the district receives a
21-3 written petition signed by each owner of the property being
21-4 assessed requesting the assessment and the issuance of bonds.
21-5 Sec. 60.105. AGRICULTURAL FINANCE AUTHORITY BONDS. (a) A
21-6 district may apply for and receive financial assistance from the
21-7 Texas Agricultural Finance Authority. The assistance may be
21-8 funding derived from the proceeds of general obligation or revenue
21-9 bonds issued by the authority or may be loans, loan guaranties,
21-10 insurance, or any other benefit offered by the authority for the
21-11 purposes of expansion, development, and diversification of
21-12 production, processing, marketing, and export of Texas agricultural
21-13 products.
21-14 (b) A district's proposal under this section is subject to
21-15 Chapter 58. If a district project involves a value-added
21-16 agricultural operation, it shall receive preference as provided by
21-17 Section 58.0211(b).
21-18 Sec. 60.106. TAX INCREMENT FINANCING. (a) A district may
21-19 use tax increment financing under Chapter 311, Tax Code, in the
21-20 manner provided by that chapter for a municipality and as modified
21-21 by this section.
21-22 (b) A county commissioners court may establish a
21-23 reinvestment zone including property located in the district and
21-24 enter into a contract with the directors of the district on terms
21-25 mutually acceptable to the two entities to allow the district to
21-26 use tax increment financing as provided by Chapter 311, Tax Code.
21-27 (c) Property within the corporate limits of a municipality
22-1 is not eligible for tax increment financing under this section.
22-2 (d) Before using tax increment financing, a district must:
22-3 (1) obtain the approval of the county commissioners
22-4 court that issued the district's creation order; and
22-5 (2) comply with Section 311.003, Tax Code, as that
22-6 section applies to a municipality.
22-7 (e) For the purpose of tax increment financing under this
22-8 section, the district board of directors is the board of directors
22-9 of the reinvestment zone. Section 311.009, Tax Code, does not
22-10 apply to this chapter.
22-11 (Sections 60.107-60.120 reserved for expansion
22-12 SUBCHAPTER F. ASSESSMENTS
22-13 Sec. 60.121. GENERAL POWERS. (a) A district may impose an
22-14 assessment:
22-15 (1) for a district expense;
22-16 (2) to finance a project or district service; or
22-17 (3) for any other purpose authorized by this chapter.
22-18 (b) Money derived from an assessment for one purpose may not
22-19 be borrowed or otherwise used for a purpose other than the purpose
22-20 for which the assessment is imposed, except as provided by
22-21 Subsection (c).
22-22 (c) The board shall establish a procedure for the
22-23 distribution or use of money derived from an assessment that
22-24 exceeds the amount of money necessary to accomplish the purpose for
22-25 which the assessment was collected.
22-26 Sec. 60.122. LIMITS ON ASSESSMENTS. (a) A district may
22-27 impose an assessment only on real property or on an agricultural
23-1 product produced on real property included in a petition for
23-2 assessment.
23-3 (b) The owner of an improvement constructed in the district
23-4 may waive the right to notice and an assessment hearing and may
23-5 agree to the imposition of the assessment on the improvement or
23-6 land and payment of the assessment at an agreed rate.
23-7 (c) The district may not impose an assessment on property
23-8 owned by a utility. For purposes of this subsection, "utility"
23-9 means a person that provides to the public gas, electricity,
23-10 telephone, wastewater, or water service.
23-11 (d) A district assessment on real property runs with the
23-12 land and successor landowners are bound to pay district assessments
23-13 as they are imposed on the land within the district, providing that
23-14 notice to purchasers was provided to a successor landowner under
23-15 Section 60.063.
23-16 Sec. 60.123. HEARING AND PETITION REQUIRED. A district may
23-17 impose an assessment only if:
23-18 (1) a written petition has been filed with the board
23-19 that:
23-20 (A) requests the assessment;
23-21 (B) states the specific purpose of the
23-22 assessment; and
23-23 (C) is signed by each owner of the real property
23-24 to be assessed or, for an assessment on an agricultural product, by
23-25 each owner of real property on which the agricultural product
23-26 subject to the assessment may be produced;
23-27 (2) two-thirds of the members of the board vote to
24-1 impose the assessment;
24-2 (3) the board provides notice of a hearing on the
24-3 proposal under Section 60.129; and
24-4 (4) the board holds a hearing on the advisability of
24-5 the assessment under Section 60.130.
24-6 Sec. 60.124. APPORTIONMENT OF COST. The board shall
24-7 apportion the cost of an assessment according to the special
24-8 benefits accruing to the real property or product because of the
24-9 project or service to be financed by the assessment. The cost may
24-10 be assessed on real property or on an agricultural product produced
24-11 on real property, as appropriate:
24-12 (1) equally by front foot or by square foot of the
24-13 land area of the real property;
24-14 (2) equally by acreage of the real property;
24-15 (3) according to the value of the real property or
24-16 agricultural product as determined by the board, which may consider
24-17 the value of a structure or improvement on real property;
24-18 (4) based upon the productivity of land subject to the
24-19 assessment or on which the agricultural product subject to the
24-20 assessment is produced;
24-21 (5) in proportion to the value of the agricultural
24-22 product produced on the real property for the year preceding the
24-23 year of the assessment; or
24-24 (6) according to any other reasonable assessment plan
24-25 that imposes a fair share of the cost on property or agricultural
24-26 products similarly benefited.
24-27 Sec. 60.125. ASSESSMENT TO FINANCE A PROJECT OR SERVICE. If
25-1 the board determines the total cost of an assessment to finance a
25-2 project or service, the board shall impose the assessment against
25-3 each parcel of land or against the agricultural product against
25-4 which an assessment may be imposed in the district. The board may
25-5 impose an annual assessment for a service. The amount of an annual
25-6 assessment may vary from year to year, but may not exceed the
25-7 amount necessary to pay the costs and debts of a project to be
25-8 financed by the assessment.
25-9 Sec. 60.126. ASSESSMENT ROLL. (a) The board shall prepare
25-10 and maintain an assessment roll showing the assessment against each
25-11 parcel of real property and against all applicable agricultural
25-12 products and the board's basis for the assessment.
25-13 (b) The board shall allow the public to inspect the
25-14 assessment roll.
25-15 Sec. 60.127. INTEREST ON ASSESSMENTS; LIEN. (a) An
25-16 assessment, including an assessment resulting from an addition or
25-17 correction to the assessment roll, penalties and interest on an
25-18 assessment, assessment collection expenses, and reasonable
25-19 attorney's fees incurred by the district in collecting an
25-20 assessment are:
25-21 (1) a first and prior lien against the property or
25-22 agricultural product assessed;
25-23 (2) superior to any other lien or claim other than a
25-24 lien or claim for county, school district, or municipal ad valorem
25-25 taxes; and
25-26 (3) the personal liability of and charge against the
25-27 owners of the property or the agricultural product when the
26-1 assessment was made, even if the owners are not named in an
26-2 assessment proceeding.
26-3 (b) The lien is effective from the date of the order
26-4 imposing the assessment until the assessment and any related
26-5 penalties, interest, collection expenses, or attorney's fees are
26-6 paid.
26-7 Sec. 60.128. MISTAKES. After notice and hearing in the
26-8 manner required for an original assessment, the board may impose an
26-9 assessment to correct a mistake in the assessment:
26-10 (1) relating to the total cost of the assessment; or
26-11 (2) covering a delinquency or collection costs.
26-12 Sec. 60.129. NOTICE OF HEARING. (a) In addition to other
26-13 notice required by law, the board shall provide notice of an
26-14 assessment hearing in a newspaper with general circulation in the
26-15 district. The publication must be made not later than the 14th day
26-16 before the date of the hearing.
26-17 (b) The notice must include the:
26-18 (1) time and place of the hearing;
26-19 (2) purpose of the proposed assessment;
26-20 (3) estimated cost of the purpose for which the
26-21 assessment is proposed, including interest during construction and
26-22 associated financing costs; and
26-23 (4) proposed assessment method.
26-24 Sec. 60.130. CONDUCT OF HEARING. (a) A hearing on a
26-25 proposed assessment may be adjourned from time to time.
26-26 (b) If a hearings examiner conducts the hearing, the
26-27 examiner shall file with the board a report on the examiner's
27-1 findings under Subsection (d).
27-2 (c) The board or hearings examiner shall hear and rule on
27-3 all objections to a proposed assessment raised at the hearing by an
27-4 owner of real property that would be subject to the assessment or
27-5 on which agricultural products subject to the assessment are
27-6 produced.
27-7 (d) The board or hearings examiner shall make findings
27-8 relating to the:
27-9 (1) advisability of the assessment, including the
27-10 purpose of the assessment;
27-11 (2) estimated cost of the assessment;
27-12 (3) area benefited by the assessment;
27-13 (4) method of assessment; and
27-14 (5) method and time for payment of the assessment.
27-15 (e) After receiving or issuing the findings required by
27-16 Subsection (d), the board by order:
27-17 (1) shall:
27-18 (A) impose the assessment as a special
27-19 assessment on the property or on the agricultural products; and
27-20 (B) specify the method of payment on the
27-21 assessment; and
27-22 (2) may:
27-23 (A) amend a proposed assessment;
27-24 (B) require an assessment to be paid in periodic
27-25 installments, including interest;
27-26 (C) require an interest charge or penalty for a
27-27 failure to make timely payment; or
28-1 (D) charge an amount to cover a delinquency or
28-2 collection expense.
28-3 (f) If the board orders that an assessment may be paid in
28-4 periodic installments, the installments must:
28-5 (1) be in amounts sufficient to meet the annual costs
28-6 of the project or service for which the assessment is imposed; and
28-7 (2) continue for the number of years required to
28-8 retire the indebtedness or pay for the project or service for which
28-9 the assessment is imposed.
28-10 Sec. 60.131. REHEARING. On petition of a property owner
28-11 contesting an assessment of the owner's real property or
28-12 agricultural products received not later than the 30th day after
28-13 the date the assessment order is issued, the board may hold an
28-14 additional hearing to consider the assessment order.
28-15 Sec. 60.132. FILING OF NOTICE OF ASSESSMENT. Not later than
28-16 the 30th day after the date on which an assessment order is issued,
28-17 the district shall file a notice of the assessment in the deed
28-18 records of the county in which the real property to be assessed, or
28-19 on which the agricultural product to be assessed is produced, is
28-20 located. The notice must:
28-21 (1) provide a description of the real property or the
28-22 agricultural products that are subject to the assessment;
28-23 (2) state the name of the owner of the real property
28-24 or the agricultural products subject to the assessment; and
28-25 (3) describe how to contact the district for further
28-26 information about the assessment.
28-27 Sec. 60.133. APPEAL OF INDIVIDUAL ASSESSMENT. (a) A real
29-1 property owner or a person who owns an agricultural product against
29-2 which an assessment is imposed may appeal the assessment to a
29-3 district court in the county in which the real property assessed,
29-4 or on which the agricultural product is produced, is located.
29-5 (b) The owner must file the notice of appeal with the court
29-6 not later than the 30th day after the person receives a bill or
29-7 other notice of the assessment.
29-8 (c) The court shall review the appeal by trial de novo.
29-9 Sec. 60.134. ASSESSMENT AFTER APPEAL. If the court holds
29-10 that an assessment is invalid, the board may impose a new
29-11 assessment in accordance with this subchapter.
29-12 (Sections 60.135-60.150 reserved for expansion
29-13 SUBCHAPTER G. DISSOLUTION
29-14 Sec. 60.151. DISSOLUTION. The district dissolves if:
29-15 (1) a majority of the board votes for dissolution; and
29-16 (2) all district debts and obligations have been
29-17 discharged.
29-18 Sec. 60.152. DISPOSITION OF PROPERTY OF DISSOLVED DISTRICT.
29-19 Prior to dissolution, the board may sell its property. If the
29-20 purchaser of any district property is not a governmental entity,
29-21 purchase by the person renders the agricultural facility or other
29-22 property ineligible to issue tax-exempt securities, to impose
29-23 assessments, or to be eligible for tax-exempt status.
29-24 SECTION 2. This Act takes effect immediately if it receives
29-25 a vote of two-thirds of all the members elected to each house, as
29-26 provided by Section 39, Article III, Texas Constitution. If this
29-27 Act does not receive the vote necessary for immediate effect, this
30-1 Act takes effect September 1, 2001.
30-2 COMMITTEE AMENDMENT NO. 1
30-3 Amend H.B. 1880 as follows:
30-4 (1) On page 9, line 16 after the period add "A certified
30-5 copy of the order creating the district shall be filed in the real
30-6 property records in the county in which the district is located,
30-7 and shall include the legal description of the district."
30-8 (2) On Page 15, line 19 after the period add "Notice is not
30-9 required to be given pursuant to this paragraph unless a certified
30-10 copy of the order creating the district has been recorded in the
30-11 real property records in the county in which the land is located,
30-12 and such order contains the legal description of the district. A
30-13 purchaser, seller, lender, real estate broker, title insurance
30-14 company, and title insurance agent may conclusively rely on the
30-15 recorded certified copy of the order."
30-16 Hardcastle