By Green                                              H.B. No. 3683
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to approval of the creation and acts of Hays County
 1-3     Development District No. 1 and its administration, powers, duties,
 1-4     operation, financing and acquisition of its project.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  LEGISLATIVE FINDINGS. (a)  The Legislature finds
 1-7     that the creation of Hays County Development District No. 1 (the
 1-8     "District") and the project approved by the Hays County
 1-9     Commissioners Court on January 11, 2000 (the "Project") will serve
1-10     the public purpose of attracting visitors and tourists to Hays
1-11     County, and will result in employment and economic activity in the
1-12     manner contemplated by Article III, Section 52-a of Texas
1-13     Constitution and Chapter 383, Local Government Code.
1-14           (b)  The Legislature further finds that economic development
1-15     is an essential function and purpose of the District.
1-16           (c)  The Legislature further finds that the creation of the
1-17     District and the acquisition or financing of the Project by the
1-18     District serves the purpose of Article XVI, Section 59 and Article
1-19     III, Section 52 of the Texas Constitution, and all steps necessary
1-20     to create the District have been taken.
1-21           SECTION 2.  APPROVAL OF CREATION. The creation of Hays County
1-22     Development District No. 1 by the Hays County Commissioners Court
1-23     on January 11, 2000 and all actions heretofore taken with regard to
 2-1     the District are hereby approved.
 2-2           SECTION 3.  FINDINGS RELATED TO BOUNDARIES. The District's
 2-3     boundaries are those as found by the Hays County Commissioners
 2-4     Court's Order Upon Hearing Granting Petition Requesting the
 2-5     Creation of Hays County Development District No. 1 and Appointing
 2-6     Temporary Directors dated January 11, 2000.  The Legislature finds
 2-7     that these boundaries form a closure.  A mistake in field notes or
 2-8     copying the field notes in the legislative process does not affect
 2-9     the organization, existence, or validity of the District, the right
2-10     of the district to levy and collect taxes, or the legality or
2-11     operation of the district or its governing body.
2-12           SECTION 4.  FINDING OF BENEFIT. All of the land and other
2-13     projects included within the boundaries of the District will be
2-14     benefitted by the works and projects that are to be accomplished by
2-15     the District pursuant to the powers conferred by Article III,
2-16     Section 52-a, Article III, Section 52 and Article XVI, Section 59
2-17     of the Texas Constitution.  The District serves a public use and
2-18     benefit.
2-19           SECTION 5.  POWERS. The District has all of the rights,
2-20     powers, privileges, authority, functions, and duties provided by
2-21     Chapters 375 and 383, Local Government Code, as amended, to County
2-22     Development Districts and Municipal Management Districts, including
2-23     but not limited to:
2-24                 (1)  The authority to levy, assess and collect ad
2-25     valorem taxes for the purposes approved at the elections conducted
2-26     on November 7, 2000.
 3-1                 (2)  The authority, after approval by voters at an
 3-2     election conducted within the boundaries of the District, to levy,
 3-3     assess and collect taxes for maintenance and operating purposes in
 3-4     the manner set forth in Section 49.107(a)-(e), Water Code, as
 3-5     amended, and for the repayment of bonds, notes, warrants, lease
 3-6     purchase agreements, certificates of assessment, certificates of
 3-7     participation in lease purchase agreements, and other
 3-8     interest-bearing obligations in the manner set forth in Section
 3-9     49.106(a)-(d), Water Code, as amended, for all of the purposes for
3-10     which the District may expend funds.
3-11                 (3)  To establish, levy and collect special assessments
3-12     in the manner specified in Sections 375.111 through 375.124, Local
3-13     Government Code, as amended; provided, however, that Sections
3-14     375.161 through 375.163, Local Government Code, as amended, shall
3-15     not apply to the assessments imposed by the District;
3-16                 (4)  To utilize funds whether the funds are derived
3-17     from ad valorem taxes, sales and use taxes, hotel occupancy tax,
3-18     revenues from the Project or any other source, for payment of
3-19     projects or services in the manner authorized by Section 375.181,
3-20     Local Government Code as amended and Chapter 383, Local Government
3-21     Code as amended;
3-22                 (5)  To enter into obligations, including, but not
3-23     limited to, lease purchase agreements, certificates of
3-24     participation in lease purchase agreements, general obligation
3-25     bonds and notes and revenue bonds and notes, and combination
3-26     general obligation and revenue bonds and notes and other
 4-1     interest-bearing obligations in the manner specified in Sections
 4-2     375.201 through 375.204, Local Government Code, as amended.  To
 4-3     enter into these obligations, the District shall obtain only those
 4-4     approvals required for the issuance of obligations by Hays County
 4-5     by Chapter 53, Acts of the 70th Legislature, Second Called Session,
 4-6     1987.
 4-7                 (6)  To adopt the powers of a road district under
 4-8     Article III, Section 52(b)(3), Texas Constitution in the manner
 4-9     specified in Section 53.029(c) and (d), Water Code, as amended;
4-10                 (7)  To levy, assess and collect ad valorem taxes to
4-11     make payments on a contract under Section 49.108(a) through (d),
4-12     Water Code, as amended, after obtaining those approvals specified
4-13     in Section 1 of Chapter 778, Acts of the 74th Legislature, Regular
4-14     Session, 1995.
4-15                 (8)  To exercise all of the rights, powers and
4-16     authority of a road district, a municipal management district, and
4-17     a water control and improvement district which are not specifically
4-18     contradicted by Chapter 383, Local Government Code, as amended;
4-19                 (9)  To exercise all of the rights, powers and
4-20     authority granted to the District by this Act, and all of rights,
4-21     powers and authority granted to the District by Chapter 383 and
4-22     375, Local Government Code, which are not contrary to any
4-23     provisions of this Act, to finance, construct or otherwise acquire
4-24     the Project or any element of the Project identified in the
4-25     Commissioner Court Order Upon Hearing Granting Petition Requesting
4-26     the Creation of Hays County Development District No. 1 and
 5-1     Appointing Temporary Directors dated January 11, 2000, including,
 5-2     but not limited to the hotel, the golf course, the water, sewer,
 5-3     drainage and road improvements, the organizational costs and costs
 5-4     of issuance of the obligations of the District.
 5-5           SECTION 6.  LIBERAL CONSTRUCTION. This Act shall be liberally
 5-6     construed in conformity with the legislative findings and purposes
 5-7     set forth therein.  This Act prevails over any provisions of
 5-8     general law that is in conflict or inconsistent with this Act.
 5-9           SECTION 7.  ADMINISTRATIVE PROVISIONS. The District shall
5-10     continue to operate as a County Development District and, subject
5-11     to the provisions hereinafter set forth, comply with Subchapter C,
5-12     Chapter 383, Government Code:
5-13                 (a)  Each director who takes office after the effective
5-14     date of this Act shall own land within the boundaries of the
5-15     District;
5-16                 (b)  A vacancy in the office of director shall be
5-17     filled by appointment by the remaining members of the board of
5-18     directors;
5-19                 (c)  The Board of Directors may designate and establish
5-20     one or more district offices outside Hays County;
5-21                 (d)  The Board of Directors may, at any time, on its
5-22     own motion and shall, if presented with a petition bearing the
5-23     signatures of a majority of the registered voters of the district
5-24     gathered within a 30-day time period, call an election to determine
5-25     whether the Board of Directors of the District will be selected by
5-26     popular election, rather than being selected by appointment by the
 6-1     Commissioners Court.
 6-2           The order calling the election under this Section must state:
 6-3                             (i)  the nature of the election, including
 6-4     the proposition that is to appear on the ballot;
 6-5                             (ii)  the date of the election;
 6-6                             (iii)  the hours during which the polls
 6-7     will be open;
 6-8                             (iv)  the location of the polling places;
 6-9     and
6-10                             (v)  any other information necessary or
6-11     appropriate to comply with the Election Code, as amended.
6-12           Notice of the election shall be given by publishing a
6-13     substantial copy of the election order once a week for two (2)
6-14     consecutive weeks in a newspaper with general circulation in Hays
6-15     County.  The first publication must appear no later than the 14th
6-16     day before the date set for the election.
6-17           The election shall be held in accordance with the provision
6-18     of the Election Code, to the extent not inconsistent with this
6-19     chapter.
6-20           The ballot shall be printed to permit voting for or against
6-21     the proposition: "The selection of directors of Hays County
6-22     Development District No. 1 by popular election."
6-23           After the election, the presiding judge shall make returns of
6-24     the result to the Board of Directors.  The Board of Directors shall
6-25     canvass the returns and canvass the results.
6-26           If a majority of the votes cast in the election favor the
 7-1     selection of directors by popular election, then the Board of
 7-2     Directors shall declare the result and enter it into its minutes.
 7-3     Thereafter, the Board of Directors shall take all steps necessary
 7-4     to conduct an election on the uniform election date next preceding
 7-5     the September 1 date on which an appointed director's term of
 7-6     office expires.  Each appointed director shall serve until his
 7-7     successor is elected and duly qualifies.  The term of office of
 7-8     each elected director shall be four (4) years.  The election of
 7-9     directors shall be conducted in the manner authorized by the
7-10     Election Code.
7-11           If a majority of the votes cast in the election are against
7-12     the selection of directors by popular election, the Board of
7-13     Directors shall declare the result and enter it into its minutes.
7-14     Thereafter, the directors shall continue to be selected by
7-15     appointment by the commissioners court.
7-16           Elections to determine the manner of selection of directors
7-17     under this Section shall occur no more often than once every 24
7-18     months.
7-19           A certified copy of the minute order declaring the results of
7-20     the election shall be sent to the commissioners court.
7-21           SECTION 8. The Legislature finds that the principal function
7-22     of the District is to provide for development and operation of the
7-23     Project to facilitate economic development and to attract visitors
7-24     and tourists which result in employment and economic activity in
7-25     Hays County.  The Legislature finds that the District may provide
7-26     water and sewer, drainage and reclamation services to residential
 8-1     retail or commercial customers.  The District is a district
 8-2     described in Section 49.181(h)(4), Water Code, as amended.
 8-3           SECTION 9.  ADDITION AND EXCLUSION OF LANDS
 8-4           In addition to the authority granted to the District by
 8-5     Section 383.084, Local Government Code, the District may add lands
 8-6     in the manner provided by Section 49.301, Water Code, as amended,
 8-7     and may exclude lands in the methods provided by Sections 49.303
 8-8     through 49.308, Water Code, as amended.
 8-9           SECTION 10.  DISSOLUTION OF DISTRICT BY PETITION OF TAXPAYERS
8-10           In addition to the method of dissolution of the District set
8-11     forth in Sections 383.122 and 383.123, Local Government Code, as
8-12     amended, the District may be dissolved in the following manner:
8-13           (a)  A Petition for Dissolution, duly executed by the owners
8-14     of taxable property equal to at least 60% of the appraised value of
8-15     property within the boundaries of the District which is subject to
8-16     ad valorem taxation by the District on the January 1 next preceding
8-17     the date of the Petition for Dissolution, may be filed with the
8-18     Board of Directors, if all of the interest-bearing obligations of
8-19     the District have been paid.
8-20           (b)  If a majority of the Board of Directors determines that
8-21     the Petition for Dissolution is in the form specified by this
8-22     Section 10 and that all of the interest-bearing obligations of the
8-23     District have been paid, then the Board of Directors shall enter an
8-24     order dissolving the District and execute instruments transferring
8-25     assets of the District to the owners of the property subject to ad
8-26     valorem taxation by the District on the January 1 next preceding
 9-1     the date of the Petition for Dissolution.  If the Board of
 9-2     Directors fails to make the determination necessary to enter the
 9-3     order dissolving the District, it shall dismiss the Petition for
 9-4     Dissolution and set forth its reasons in writing in the dismissal
 9-5     order.
 9-6           (c)  An order entered pursuant to Section 10(b) of this Act
 9-7     may be challenged only in a state district court proceeding filed
 9-8     by owners of property subject to ad valorem taxation by the
 9-9     District.  The proceeding shall be filed in the county in which the
9-10     District is located, not later than the 10th day after the date of
9-11     the order.  If such a proceeding is not filed within the time
9-12     specified herein, the order becomes final and may not thereafter be
9-13     challenged, and each finding in the order becomes incontestable.
9-14     The order can be overturned only if the state district court finds
9-15     that the entry of the order constituted an abuse of discretion by
9-16     the Board of Directors.
9-17           SECTION 11.  FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
9-18     The Legislature finds:
9-19           (a)  The proper and legal notice of the intention to
9-20     introduce this Act, setting for the general substance of this Act,
9-21     has been published as provided by law, and the notice and a copy of
9-22     this Act have been furnished to all persons, agencies, officials,
9-23     or entities to which they are required to be furnished by the
9-24     constitution and other laws of this state, including the governor,
9-25     who has submitted the notice and the Act to the Texas Natural
9-26     Resource Conservation Commission.
 10-1          (b)  The Texas Natural Resource Conservation Commission has
 10-2    filed its recommendations relating to this Act with the governor,
 10-3    lieutenant governor, and speaker of the house of representatives
 10-4    within the required time.
 10-5          (c)  All requirements of the constitution and laws of this
 10-6    state and rules and procedures of the legislature with respect to
 10-7    the notice, introduction, and passage of this Act are fulfilled and
 10-8    accomplished.
 10-9          SECTION 12.  EFFECTIVE DATE. This Act takes effect
10-10    immediately if it receives a vote of two-thirds of all the members
10-11    elected to each house, as provided by Section 39, Article III,
10-12    Texas Constitution.  If this Act does not receive the vote
10-13    necessary for immediate effect, this Act takes effect August 28,
10-14    2001.
10-15          SECTION 13.  EMERGENCY. The importance of this legislation
10-16    and the crowded condition of the calendars in both houses create an
10-17    emergency and an imperative public necessity that the
10-18    constitutional rule requiring bills to be read on three several
10-19    days in each house be suspended, and this rule is hereby suspended.