By: Armbrister S.B. No. 1823 A BILL TO BE ENTITLED 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 serves 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.