1-1 By: Armbrister S.B. No. 1823 1-2 (In the Senate - Filed April 20, 2001; April 23, 2001, read 1-3 first time and referred to Committee on Intergovernmental 1-4 Relations; May 2, 2001, reported favorably by the following vote: 1-5 Yeas 5, Nays 0; May 2, 2001, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the approval of the creation and acts of Hays County 1-9 Development District No. 1, to the administration, powers, duties, 1-10 operation, and financing of the district, and to acquisition of the 1-11 district's project. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. LEGISLATIVE FINDINGS. (a) The legislature finds 1-14 that the creation of Hays County Development District No. 1 (the 1-15 "district") and the project approved by the Hays County 1-16 Commissioners Court on January 11, 2000 (the "project"), will serve 1-17 the public purpose of attracting visitors and tourists to Hays 1-18 County and will result in employment and economic activity in the 1-19 manner contemplated by Section 52-a, Article III, Texas 1-20 Constitution, and Chapter 383, Local Government Code. 1-21 (b) The legislature further finds that economic development 1-22 is an essential function and purpose of the district. 1-23 (c) The legislature further finds that the creation of the 1-24 district and the acquisition or financing of the project by the 1-25 district serves the purpose of Section 59, Article XVI, and Section 1-26 52, Article III, Texas Constitution, and that all steps necessary 1-27 to create the district have been taken. 1-28 SECTION 2. APPROVAL OF CREATION. The creation of Hays 1-29 County Development District No. 1 by the Hays County Commissioners 1-30 Court on January 11, 2000, and all actions heretofore taken with 1-31 regard to the district are hereby approved. 1-32 SECTION 3. FINDINGS RELATED TO BOUNDARIES. The district's 1-33 boundaries are those as found by the Hays County Commissioners 1-34 Court Order Upon Hearing and Granting Petition Requesting the 1-35 Creation of Hays County Development District No. 1 and Appointing 1-36 Temporary Directors dated January 11, 2000. The legislature finds 1-37 that these boundaries form a closure. A mistake in field notes or 1-38 copying the field notes in the legislative process does not affect 1-39 the organization, existence, or validity of the district, the right 1-40 of the district to levy and collect taxes, or the legality or 1-41 operation of the district or its governing body. 1-42 SECTION 4. FINDING OF BENEFIT. All of the land and other 1-43 projects included within the boundaries of the district will be 1-44 benefited by the works and projects that are to be accomplished by 1-45 the district pursuant to the powers conferred by Sections 52-a and 1-46 52, Article III, and Section 59, Article XVI, Texas Constitution. 1-47 The district serves a public use and benefit. 1-48 SECTION 5. POWERS. The district has all of the rights, 1-49 powers, privileges, authority, functions, and duties provided by 1-50 Chapters 375 and 383, Local Government Code, to county development 1-51 districts and municipal management districts, including but not 1-52 limited to: 1-53 (1) the authority to levy, assess, and collect ad 1-54 valorem taxes for the purposes approved at the elections conducted 1-55 on November 7, 2000; 1-56 (2) the authority, after approval by voters at an 1-57 election conducted within the boundaries of the district, to levy, 1-58 assess and collect taxes for maintenance and operating purposes in 1-59 the manner set forth in Sections 49.107(a)-(e), Water Code, and for 1-60 the repayment of bonds, notes, warrants, lease purchase agreements, 1-61 certificates of assessment, certificates of participation in lease 1-62 purchase agreements, and other interest-bearing obligations in the 1-63 manner set forth in Sections 49.106(a)-(d), Water Code, and for all 1-64 of the purposes for which the district may expend funds; 2-1 (3) to establish, levy, and collect special 2-2 assessments in the manner specified in Sections 375.111-375.124, 2-3 Local Government Code; provided, however, that Sections 2-4 375.161-375.163, Local Government Code, shall not apply to the 2-5 assessments imposed by the district; 2-6 (4) to utilize funds, whether the funds are derived 2-7 from ad valorem taxes, sales and use taxes, hotel occupancy taxes, 2-8 revenues from the project, or any other source, for payment of 2-9 projects or services in the manner authorized by Section 375.181, 2-10 Local Government Code, and Chapter 383, Local Government Code; 2-11 (5) to enter into obligations, including, but not 2-12 limited to, lease purchase agreements, certificates of 2-13 participation in lease purchase agreements, general obligation 2-14 bonds and notes and revenue bonds and notes, and combination 2-15 general obligation and revenue bonds and notes and other 2-16 interest-bearing obligations, in the manner specified in Sections 2-17 375.201-375.204, Local Government Code. To enter into these 2-18 obligations, the district shall obtain only those approvals 2-19 required for the issuance of obligations by Hays County by Chapter 2-20 53, Acts of the 70th Legislature, Second Called Session, 1987; 2-21 (6) to adopt the powers of a road district under 2-22 Section 52(b)(3), Article III, Texas Constitution, in the manner 2-23 specified in Sections 53.029(c) and (d), Water Code; 2-24 (7) to levy, assess, and collect ad valorem taxes to 2-25 make payments on a contract under Sections 49.108(a)-(d), Water 2-26 Code, after obtaining those approvals specified in Section 1, 2-27 Chapter 778, Acts of the 74th Legislature, Regular Session, 1995; 2-28 (8) to exercise all of the rights, powers, and 2-29 authority of a road district, a municipal management district, and 2-30 a water control and improvement district which are not specifically 2-31 contradicted by Chapter 383, Local Government Code; and 2-32 (9) to exercise all of the rights, powers, and 2-33 authority granted to the district by this Act, and all of the 2-34 rights, powers, and authority granted to the district by Chapters 2-35 383 and 375, Local Government Code, which are not contrary to any 2-36 provisions of this Act, to finance, construct, or otherwise acquire 2-37 the project or any element of the project identified in the 2-38 Commissioners Court Order Upon Hearing and Granting Petition 2-39 Requesting the Creation of Hays County Development District No. 1 2-40 and Appointing Temporary Directors dated January 11, 2000, 2-41 including, but not limited to, the hotel, the golf course, the 2-42 water, sewer, drainage, and road improvements, the organizational 2-43 costs, and the costs of issuance of the obligations of the 2-44 district. 2-45 SECTION 6. LIBERAL CONSTRUCTION. This Act shall be 2-46 liberally construed in conformity with the legislative findings and 2-47 purposes set forth therein. This Act prevails over any provisions 2-48 of general law that are in conflict or inconsistent with this Act. 2-49 SECTION 7. ADMINISTRATIVE PROVISIONS. (a) The district 2-50 shall continue to operate as a county development district and, 2-51 subject to the provisions hereinafter set forth, comply with 2-52 Subchapter C, Chapter 383, Local Government Code. 2-53 (b) Each director who takes office after the effective date 2-54 of this Act shall own land within the boundaries of the district. 2-55 (c) A vacancy in the office of director shall be filled by 2-56 appointment by the remaining members of the board of directors. 2-57 (d) The board of directors may designate and establish one 2-58 or more district offices outside Hays County. 2-59 (e) (1) The board of directors may, at any time, on its own 2-60 motion and shall, if presented with a petition bearing the 2-61 signatures of a majority of the registered voters of the district 2-62 gathered within a 30-day time period, call an election to determine 2-63 whether the board of directors of the district will be selected by 2-64 popular election rather than being selected by appointment by the 2-65 commissioners court. 2-66 (2) The order calling the election under this section 2-67 must state: 2-68 (A) the nature of the election, including the 2-69 proposition that is to appear on the ballot; 3-1 (B) the date of the election; 3-2 (C) the hours during which the polls will be 3-3 open; 3-4 (D) the location of the polling places; and 3-5 (E) any other information necessary or 3-6 appropriate to comply with the Election Code. 3-7 (3) Notice of the election shall be given by 3-8 publishing a substantial copy of the election order once a week for 3-9 two consecutive weeks in a newspaper with general circulation in 3-10 Hays County. The first publication must appear no later than the 3-11 14th day before the date set for the election. 3-12 (4) The election shall be held in accordance with the 3-13 provisions of the Election Code, to the extent not inconsistent 3-14 with this chapter. 3-15 (5) The ballot shall be printed to permit voting for 3-16 or against the proposition: "The selection of directors of Hays 3-17 County Development District No. 1 by popular election." 3-18 (6) After the election, the presiding judge shall make 3-19 returns of the results to the board of directors. The board of 3-20 directors shall canvass the returns and canvass the results. 3-21 (7) If a majority of the votes cast in the election 3-22 favor the selection of directors by popular election, then the 3-23 board of directors shall declare the result and enter it into its 3-24 minutes. Thereafter, the board of directors shall take all steps 3-25 necessary to conduct an election on the uniform election date next 3-26 preceding the September 1 date on which an appointed director's 3-27 term of office expires. Each appointed director shall serve until 3-28 his successor is elected and duly qualifies. The term of office of 3-29 each elected director shall be four years. The election of 3-30 directors shall be conducted in the manner authorized by the 3-31 Election Code. 3-32 (8) If a majority of the votes cast in the election 3-33 are against the selection of directors by popular election, the 3-34 board of directors shall declare the result and enter it into its 3-35 minutes. Thereafter, the directors shall continue to be selected 3-36 by appointment by the commissioners court. 3-37 (9) Elections to determine the manner of selection of 3-38 directors under this section shall occur no more often than once 3-39 every 24 months. 3-40 (10) A certified copy of the minute order declaring 3-41 the results of the election shall be sent to the commissioners 3-42 court. 3-43 SECTION 8. LEGISLATIVE FINDINGS. The legislature finds that 3-44 the principal function of the district is to provide for 3-45 development and operation of the project, to facilitate economic 3-46 development, and to attract visitors and tourists, which will 3-47 result in employment and economic activity in Hays County. The 3-48 legislature finds that the district may provide water and sewer, 3-49 drainage, and reclamation services to residential retail or 3-50 commercial customers. The district is a district described in 3-51 Section 49.181(h)(4), Water Code. 3-52 SECTION 9. ADDITION AND EXCLUSION OF LANDS. In addition to 3-53 the authority granted to the district by Section 383.084, Local 3-54 Government Code, the district may add lands in the manner provided 3-55 by Section 49.301, Water Code, and may exclude lands in the methods 3-56 provided by Sections 49.303 through 49.308, Water Code. 3-57 SECTION 10. DISSOLUTION OF DISTRICT BY PETITION OF 3-58 TAXPAYERS. In addition to the method of dissolution of the 3-59 district set forth in Sections 383.122 and 383.123, Local 3-60 Government Code, the district may be dissolved in the following 3-61 manner: 3-62 (1) A petition for dissolution, duly executed by the 3-63 owners of taxable property equal to at least 60 percent of the 3-64 appraised value of property within the boundaries of the district 3-65 which is subject to ad valorem taxation by the district on the 3-66 January 1 preceding the date of the petition for dissolution, may 3-67 be filed with the board of directors, if all of the 3-68 interest-bearing obligations of the district have been paid. 3-69 (2) If a majority of the board of directors determines 4-1 that the petition for dissolution is in the form specified by this 4-2 section and that all of the interest-bearing obligations of the 4-3 district have been paid, then the board of directors shall enter an 4-4 order dissolving the district and execute instruments transferring 4-5 assets of the district to the owners of the property subject to ad 4-6 valorem taxation by the district on the January 1 preceding the 4-7 date of the petition for dissolution. If the board of directors 4-8 fails to make the determination necessary to enter the order 4-9 dissolving the district, it shall dismiss the petition for 4-10 dissolution and set forth its reasons in writing in the dismissal 4-11 order. 4-12 (3) An order entered pursuant to Subsection (b) of 4-13 this section may be challenged only in a state district court 4-14 proceeding filed by owners of property subject to ad valorem 4-15 taxation by the district. The proceeding shall be filed in the 4-16 county in which the district is located not later than the 10th day 4-17 after the date of the order. If such a proceeding is not filed 4-18 within the time specified herein, the order becomes final and may 4-19 not thereafter be challenged, and each finding in the order becomes 4-20 incontestable. The order can be overturned only if the state 4-21 district court finds that the entry of the order constituted an 4-22 abuse of discretion by the board of directors. 4-23 SECTION 11. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS. 4-24 The Legislature finds that: 4-25 (1) the proper and legal notice of the intention to 4-26 introduce this Act, setting for the general substance of this Act, 4-27 has been published as provided by law, and the notice and a copy of 4-28 this Act have been furnished to all persons, agencies, officials, 4-29 or entities to which they are required to be furnished by the 4-30 constitution and other laws of this state, including the governor, 4-31 who has submitted the notice and the Act to the Texas Natural 4-32 Resource Conservation Commission; 4-33 (2) the Texas Natural Resource Conservation Commission 4-34 has filed its recommendations relating to this Act with the 4-35 governor, lieutenant governor, and speaker of the house of 4-36 representatives within the required time; and 4-37 (3) all requirements of the constitution and laws of 4-38 this state and rules and procedures of the legislature with respect 4-39 to the notice, introduction, and passage of this Act are fulfilled 4-40 and accomplished. 4-41 SECTION 12. EFFECTIVE DATE. This Act takes effect 4-42 immediately if it receives a vote of two-thirds of all the members 4-43 elected to each house, as provided by Section 39, Article III, 4-44 Texas Constitution. If this Act does not receive the vote 4-45 necessary for immediate effect, this Act takes effect August 28, 4-46 2001. 4-47 SECTION 13. EMERGENCY. The importance of this legislation 4-48 and the crowded condition of the calendars in both houses create an 4-49 emergency and an imperative public necessity that the 4-50 constitutional rule requiring bills to be read on three several 4-51 days in each house be suspended, and this rule is hereby suspended. 4-52 * * * * *