1-1 AN ACT
1-2 relating to the approval of the creation and acts of Hays County
1-3 Development District No. 1, to the administration, powers, duties,
1-4 operation, and financing of the district, and to acquisition of the
1-5 district's project.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. LEGISLATIVE FINDINGS. (a) The legislature finds
1-8 that the creation of Hays County Development District No. 1 (the
1-9 "district") and the project approved by the Hays County
1-10 Commissioners Court on January 11, 2000 (the "project"), will serve
1-11 the public purpose of attracting visitors and tourists to Hays
1-12 County and will result in employment and economic activity in the
1-13 manner contemplated by Section 52-a, Article III, Texas
1-14 Constitution, and Chapter 383, Local Government Code.
1-15 (b) The legislature further finds that economic development
1-16 is an essential function and purpose of the district.
1-17 (c) The legislature further finds that the creation of the
1-18 district and the acquisition or financing of the project by the
1-19 district serve the purpose of Section 59, Article XVI, and Section
1-20 52, Article III, Texas Constitution, and that all steps necessary
1-21 to create the district have been taken.
1-22 SECTION 2. APPROVAL OF CREATION. The creation of Hays
1-23 County Development District No. 1 by the Hays County Commissioners
1-24 Court on January 11, 2000, and all actions heretofore taken with
1-25 regard to the district are hereby approved.
2-1 SECTION 3. FINDINGS RELATED TO BOUNDARIES. The district's
2-2 boundaries are those as found by the Hays County Commissioners
2-3 Court Order Upon Hearing and Granting Petition Requesting the
2-4 Creation of Hays County Development District No. 1 and Appointing
2-5 Temporary Directors dated January 11, 2000. The legislature finds
2-6 that these boundaries form a closure. A mistake in field notes or
2-7 copying the field notes in the legislative process does not affect
2-8 the organization, existence, or validity of the district, the right
2-9 of the district to levy and collect taxes, or the legality or
2-10 operation of the district or its governing body.
2-11 SECTION 4. FINDING OF BENEFIT. All of the land and other
2-12 projects included within the boundaries of the district will be
2-13 benefited by the works and projects that are to be accomplished by
2-14 the district pursuant to the powers conferred by Sections 52-a and
2-15 52, Article III, and Section 59, Article XVI, Texas Constitution.
2-16 The district serves a public use and benefit.
2-17 SECTION 5. POWERS. The district has all of the rights,
2-18 powers, privileges, authority, functions, and duties provided by
2-19 Chapters 375 and 383, Local Government Code, to county development
2-20 districts and municipal management districts, including but not
2-21 limited to:
2-22 (1) the authority to levy, assess, and collect ad
2-23 valorem taxes for the purposes approved at the elections conducted
2-24 on November 7, 2000;
2-25 (2) the authority, after approval by voters at an
2-26 election conducted within the boundaries of the district, to levy,
3-1 assess and collect taxes for maintenance and operating purposes in
3-2 the manner set forth in Sections 49.107(a)-(e), Water Code, and for
3-3 the repayment of bonds, notes, warrants, lease purchase agreements,
3-4 certificates of assessment, certificates of participation in lease
3-5 purchase agreements, and other interest-bearing obligations in the
3-6 manner set forth in Sections 49.106(a)-(d), Water Code, and for all
3-7 of the purposes for which the district may expend funds;
3-8 (3) to establish, levy, and collect special
3-9 assessments in the manner specified in Sections 375.111-375.124,
3-10 Local Government Code; provided, however, that Sections
3-11 375.161-375.163, Local Government Code, shall not apply to the
3-12 assessments imposed by the district;
3-13 (4) to utilize funds, whether the funds are derived
3-14 from ad valorem taxes, sales and use taxes, hotel occupancy taxes,
3-15 revenues from the project, or any other source, for payment of
3-16 projects or services in the manner authorized by Section 375.181,
3-17 Local Government Code, and Chapter 383, Local Government Code;
3-18 (5) to enter into obligations, including, but not
3-19 limited to, lease purchase agreements, certificates of
3-20 participation in lease purchase agreements, general obligation
3-21 bonds and notes and revenue bonds and notes, and combination
3-22 general obligation and revenue bonds and notes and other
3-23 interest-bearing obligations, in the manner specified in Sections
3-24 375.201-375.204, Local Government Code. To enter into these
3-25 obligations, the district shall obtain only those approvals
3-26 required for the issuance of obligations by Hays County by Chapter
4-1 53, Acts of the 70th Legislature, Second Called Session, 1987;
4-2 (6) to adopt the powers of a road district under
4-3 Section 52(b)(3), Article III, Texas Constitution, in the manner
4-4 specified in Sections 53.029(c) and (d), Water Code;
4-5 (7) to levy, assess, and collect ad valorem taxes to
4-6 make payments on a contract under Sections 49.108(a)-(d), Water
4-7 Code, after obtaining those approvals specified in Section 1,
4-8 Chapter 778, Acts of the 74th Legislature, Regular Session, 1995;
4-9 (8) to exercise all of the rights, powers, and
4-10 authority of a road district, a municipal management district, and
4-11 a water control and improvement district which are not specifically
4-12 contradicted by Chapter 383, Local Government Code; and
4-13 (9) to exercise all of the rights, powers, and
4-14 authority granted to the district by this Act, and all of the
4-15 rights, powers, and authority granted to the district by Chapters
4-16 383 and 375, Local Government Code, which are not contrary to any
4-17 provisions of this Act, to finance, construct, or otherwise acquire
4-18 the project or any element of the project identified in the
4-19 Commissioners Court Order Upon Hearing and Granting Petition
4-20 Requesting the Creation of Hays County Development District No. 1
4-21 and Appointing Temporary Directors dated January 11, 2000,
4-22 including, but not limited to, the hotel, the golf course, the
4-23 water, sewer, drainage, and road improvements, the organizational
4-24 costs, and the costs of issuance of the obligations of the
4-25 district.
4-26 SECTION 6. LIBERAL CONSTRUCTION. This Act shall be
5-1 liberally construed in conformity with the legislative findings and
5-2 purposes set forth therein. This Act prevails over any provisions
5-3 of general law that are in conflict or inconsistent with this Act.
5-4 SECTION 7. ADMINISTRATIVE PROVISIONS. (a) The district
5-5 shall continue to operate as a county development district and,
5-6 subject to the provisions hereinafter set forth, comply with
5-7 Subchapter C, Chapter 383, Local Government Code.
5-8 (b) Each director who takes office after the effective date
5-9 of this Act shall own land within the boundaries of the district.
5-10 (c) A vacancy in the office of director shall be filled by
5-11 appointment by the remaining members of the board of directors.
5-12 (d) The board of directors may designate and establish one
5-13 or more district offices outside Hays County.
5-14 (e)(1) The board of directors may, at any time, on its own
5-15 motion and shall, if presented with a petition bearing the
5-16 signatures of a majority of the registered voters of the district
5-17 gathered within a 30-day time period, call an election to determine
5-18 whether the board of directors of the district will be selected by
5-19 popular election rather than being selected by appointment by the
5-20 commissioners court.
5-21 (2) The order calling the election under this section
5-22 must state:
5-23 (A) the nature of the election, including the
5-24 proposition that is to appear on the ballot;
5-25 (B) the date of the election;
5-26 (C) the hours during which the polls will be
6-1 open;
6-2 (D) the location of the polling places; and
6-3 (E) any other information necessary or
6-4 appropriate to comply with the Election Code.
6-5 (3) Notice of the election shall be given by
6-6 publishing a substantial copy of the election order once a week for
6-7 two consecutive weeks in a newspaper with general circulation in
6-8 Hays County. The first publication must appear no later than the
6-9 14th day before the date set for the election.
6-10 (4) The election shall be held in accordance with the
6-11 provisions of the Election Code, to the extent not inconsistent
6-12 with this chapter.
6-13 (5) The ballot shall be printed to permit voting for
6-14 or against the proposition: "The selection of directors of Hays
6-15 County Development District No. 1 by popular election."
6-16 (6) After the election, the presiding judge shall make
6-17 returns of the results to the board of directors. The board of
6-18 directors shall canvass the returns and canvass the results.
6-19 (7) If a majority of the votes cast in the election
6-20 favor the selection of directors by popular election, then the
6-21 board of directors shall declare the result and enter it into its
6-22 minutes. Thereafter, the board of directors shall take all steps
6-23 necessary to conduct an election on the uniform election date next
6-24 preceding the September 1 date on which an appointed director's
6-25 term of office expires. Each appointed director shall serve until
6-26 his successor is elected and duly qualifies. The term of office of
7-1 each elected director shall be four years. The election of
7-2 directors shall be conducted in the manner authorized by the
7-3 Election Code.
7-4 (8) If a majority of the votes cast in the election
7-5 are against the selection of directors by popular election, the
7-6 board of directors shall declare the result and enter it into its
7-7 minutes. Thereafter, the directors shall continue to be selected
7-8 by appointment by the commissioners court.
7-9 (9) Elections to determine the manner of selection of
7-10 directors under this section shall occur no more often than once
7-11 every 24 months.
7-12 (10) A certified copy of the minute order declaring
7-13 the results of the election shall be sent to the commissioners
7-14 court.
7-15 SECTION 8. LEGISLATIVE FINDINGS. The legislature finds that
7-16 the principal function of the district is to provide for
7-17 development and operation of the project, to facilitate economic
7-18 development, and to attract visitors and tourists, which will
7-19 result in employment and economic activity in Hays County. The
7-20 legislature finds that the district may provide water and sewer,
7-21 drainage, and reclamation services to residential retail or
7-22 commercial customers. The district is a district described in
7-23 Section 49.181(h)(4), Water Code.
7-24 SECTION 9. ADDITION AND EXCLUSION OF LANDS. In addition to
7-25 the authority granted to the district by Section 383.084, Local
7-26 Government Code, the district may add lands in the manner provided
8-1 by Section 49.301, Water Code, and may exclude lands in the methods
8-2 provided by Sections 49.303 through 49.308, Water Code.
8-3 SECTION 10. DISSOLUTION OF DISTRICT BY PETITION OF
8-4 TAXPAYERS. In addition to the method of dissolution of the
8-5 district set forth in Sections 383.122 and 383.123, Local
8-6 Government Code, the district may be dissolved in the following
8-7 manner:
8-8 (1) A petition for dissolution, duly executed by the
8-9 owners of taxable property equal to at least 60 percent of the
8-10 appraised value of property within the boundaries of the district
8-11 which is subject to ad valorem taxation by the district on the
8-12 January 1 preceding the date of the petition for dissolution, may
8-13 be filed with the board of directors, if all of the
8-14 interest-bearing obligations of the district have been paid.
8-15 (2) If a majority of the board of directors determines
8-16 that the petition for dissolution is in the form specified by this
8-17 section and that all of the interest-bearing obligations of the
8-18 district have been paid, then the board of directors shall enter an
8-19 order dissolving the district and execute instruments transferring
8-20 assets of the district to the owners of the property subject to ad
8-21 valorem taxation by the district on the January 1 preceding the
8-22 date of the petition for dissolution. If the board of directors
8-23 fails to make the determination necessary to enter the order
8-24 dissolving the district, it shall dismiss the petition for
8-25 dissolution and set forth its reasons in writing in the dismissal
8-26 order.
9-1 (3) An order entered pursuant to Subsection (b) of
9-2 this section may be challenged only in a state district court
9-3 proceeding filed by owners of property subject to ad valorem
9-4 taxation by the district. The proceeding shall be filed in the
9-5 county in which the district is located not later than the 10th day
9-6 after the date of the order. If such a proceeding is not filed
9-7 within the time specified herein, the order becomes final and may
9-8 not thereafter be challenged, and each finding in the order becomes
9-9 incontestable. The order can be overturned only if the state
9-10 district court finds that the entry of the order constituted an
9-11 abuse of discretion by the board of directors.
9-12 SECTION 11. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
9-13 The legislature finds that:
9-14 (1) the proper and legal notice of the intention to
9-15 introduce this Act, setting for the general substance of this Act,
9-16 has been published as provided by law, and the notice and a copy of
9-17 this Act have been furnished to all persons, agencies, officials,
9-18 or entities to which they are required to be furnished by the
9-19 constitution and other laws of this state, including the governor,
9-20 who has submitted the notice and the Act to the Texas Natural
9-21 Resource Conservation Commission;
9-22 (2) the Texas Natural Resource Conservation Commission
9-23 has filed its recommendations relating to this Act with the
9-24 governor, lieutenant governor, and speaker of the house of
9-25 representatives within the required time; and
9-26 (3) all requirements of the constitution and laws of
10-1 this state and rules and procedures of the legislature with respect
10-2 to the notice, introduction, and passage of this Act are fulfilled
10-3 and accomplished.
10-4 SECTION 12. EFFECTIVE DATE. This Act takes effect
10-5 immediately if it receives a vote of two-thirds of all the members
10-6 elected to each house, as provided by Section 39, Article III,
10-7 Texas Constitution. If this Act does not receive the vote
10-8 necessary for immediate effect, this Act takes effect August 28,
10-9 2001.
10-10 SECTION 13. EMERGENCY. The importance of this legislation
10-11 and the crowded condition of the calendars in both houses create an
10-12 emergency and an imperative public necessity that the
10-13 constitutional rule requiring bills to be read on three several
10-14 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1823 passed the Senate on
May 10, 2001, by the following vote: Yeas 29, Nays 0, one present,
not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1823 passed the House on
May 23, 2001, by the following vote: Yeas 145, Nays 0, two
present, not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor