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                                  * * * * *