78R4823 DRH-F
By: Staples S.B. No. 1641
A BILL TO BE ENTITLED
AN ACT
relating to the creation of Lake View Management and Development
District in Henderson County; providing authority to impose a tax
and issue bonds; granting the power of eminent domain.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. CREATION AND NAMING OF DISTRICT; CONTROLLING
LAW. (a) The Lake View Management and Development District is
created as a special district under Section 59, Article XVI, Texas
Constitution.
(b) The board by resolution may change the district's name.
The board shall give written notice of the change to the commission.
(c) The district is a unit of government for the purposes of
Chapter 101, Civil Practice and Remedies Code, and operations of
the district are considered to be essential governmental functions
and not proprietary functions for all purposes, including the
application of that chapter.
SECTION 2. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "District" means the Lake View Management and
Development District.
(4) "Improvement project" means a program or project
authorized by Section 15 of this Act, inside or outside the
boundaries of the district.
SECTION 3. BOUNDARIES. The district includes the land
located in Henderson County that is described and defined by metes
and bounds, as follows, to-wit:
BEING a 549.0 acre tract of land situated in the G. Martinez
Survey, Abstract No. 481, Henderson County, Texas, and being
comprised of nine (9) tracts of land as conveyed in six (6) deeds to
Long Cove Ranch Company as follows: (1) Parcel 10C and Parcel 10D
described as Tracts 10 C, 56.41 acres and 10 D, 54.86 acres in
Volume 2158, Page 001, Deed Records, Henderson County, Texas, (2)
Parcel 9 described as 140.0 acres in Volume 2143, Page 363, Deed
Records, Henderson County, Texas, (3) Parcel 8 described as 100.0
acres in Volume 2030, Page 555, Deed Records, Henderson County,
Texas, (4) Parcel 7 described as 40.72 acres in Volume 2030, Page
541, Deed Records, Henderson County, Texas, (5) Parcels 6A, 6B, and
6D described as 11.064 acres, 44.317 acres and 61.686 acres tracts
respectively in Volume 1960, Page 595, Deed Records, Henderson
County, Texas, and (6) portion of Parcel 4, the easterly 40 acres
of the first tract described in Volume 1769, Page 768, Deed Records,
Henderson County, Texas, and being more particularly described as
follows:
BEGINNING at the intersection of the north line of Parcel 8
with the deeded 325 foot elevation take line of Cedar Creek Lake;
THENCE North 89 degrees 23 minutes 11 seconds East, along the
north line of Parcel 8 , called the north line of Martinez Survey
and the south line of Thomas Caro Survey, a distance of 654.83 feet
to the northeast corner of said Parcel 8 and the northwest corner of
Parcel 10C;
THENCE North 89 degrees 46 minutes 07 seconds East, along the
north line of Parcel 10C, called the north line of said Martinez
Survey, a distance of 1,203.86 feet to the northeast corner of said
Parcel 10C;
THENCE South 00 degrees 47 minutes 49 seconds West, along the
east line of Parcel 10 C, a distance of 2,418.84 feet to the
southeast corner of said Parcel 10C;
THENCE South 88 degrees 14 minutes 18 seconds West, along the
south line of Parcel 10 C, a distance of 1,175.96 feet to the
southeast corner of Parcel 8;
THENCE South 88 degrees 53 minutes 14 seconds West, along the
south line of Parcel 8, a distance of 1,254.61 feet to a point in the
east line of Parcel 10D;
THENCE South 00 degrees 06 minutes 04 seconds East, along the
east line of Parcel 10 C, a distance of 348.17 feet to the southeast
corner of said Parcel 10 C and the northeast corner of Parcel 9;
THENCE South 00 degrees 06 minutes 04 seconds East, along the
east line of Parcel 9, a distance of 2,520.78 feet to the southeast
corner of said Parcel 9;
THENCE North 89 degrees 49 minutes 16 seconds West, along the
south line of Parcel 9, a distance of 2,689.08 feet to the southwest
corner of said Parcel 9 in the east line of Parcel 6 D;
THENCE South 00 degrees 33 minutes 24 seconds West, along the
east line of Parcel 6 D, a distance of 51.64 feet to an angle point
in said east line;
THENCE South 00 degrees 25 minutes 27 seconds East,
continuing along the east line of Parcel 6 D, a distance of 1,844.44
feet to the southeast corner of said Parcel 6 D;
THENCE South 88 degrees 23 minutes 18 seconds West, along the
south line of Parcel 6 D, a distance of 1,534.22 feet to southwest
corner of said Parcel 6 D and the southeast corner of Parcel 4;
THENCE North 00 degrees 02 minutes 41 seconds East, crossing
Parcel 4, a distance of 2,918.36 feet to the deeded 325 foot
elevation take line of Cedar Creek Lake;
THENCE generally in a northeasterly direction with it's
meanders along the deeded 325 foot elevation take line of Cedar
Creek Lake to the PLACE OF BEGINNING and containing 549.0 acres of
land more or less.
SECTION 4. FINDINGS RELATING TO BOUNDARIES. The boundaries
of the district form a closure. A mistake in the name or spelling of
a party to a deed or to the page or volume where filed in the deed
records of Henderson County, or in the name of a survey or abstract,
does not affect:
(1) the district's organization, existence, or
validity;
(2) the district's right to enter into any type of
contract for the purposes for which the district is created;
(3) the district's right to impose, assess, or collect
taxes, fees, or charges; or
(4) the operation of the board or the district.
SECTION 5. LEGISLATIVE DECLARATIONS AND FINDINGS. (a) The
legislature finds that all of the land and other property included
in the district will benefit from the improvement projects and
services to be accomplished by the district under powers conferred
by Sections 52 and 52a, Article III, and Section 59, Article XVI,
Texas Constitution, and the other powers granted under this Act,
and the creation of the district is essential to accomplish the
purposes of those provisions and to accomplish the other public
purposes stated in this Act.
(b) The legislature further finds that the creation of the
district:
(1) is essential to the conservation and beneficial
use of the water, land, soil, and other natural resources in or
adjacent to the district;
(2) is essential to further the public purposes of the
economic development and diversification of the state, the
elimination of unemployment and underemployment, and the
stimulation and development of transportation and commerce;
(3) will promote the health, safety, and general
welfare of residents, employers, employees, and consumers in the
district and in Henderson County and of the public; and
(4) is in the public interest.
(c) The district's operations and the district's
improvement projects will enable the district to preserve,
maintain, and enhance the economic health and vitality of the area
in the district as a community, residential, recreational,
business, and commerce center. The district will further promote
the health, safety, welfare, education, convenience, and enjoyment
of the public by improving, landscaping, and developing certain
areas in and adjacent to the district and providing public services
and facilities in and adjacent to the district that are necessary
for the restoration, preservation, enhancement, and enjoyment of
scenic beauty.
SECTION 6. CONSTRUCTION OF ACT. (a) This Act shall be
liberally construed in conformity with the findings and purposes
stated in this Act.
(b) Chapter 311, Government Code, applies to this Act.
SECTION 7. GENERAL POWERS AND DUTIES. (a) The district has
all of the powers and duties provided by the following:
(1) the general laws relating to conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including Chapters 49 and 54, Water Code, except that
the district's bonds and other securities are not subject to the
jurisdiction or supervision of the commission under Chapter 49,
Water Code, or other law;
(2) the general laws relating to road districts and
road utility districts created under Section 52(b), Article III,
Texas Constitution, including Chapter 441, Transportation Code;
(3) Chapter 375, Local Government Code; and
(4) Section 4B, Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes).
(b) A provision of this Act prevails over a provision of the
general law that is in conflict or inconsistent with this Act.
SECTION 8. BOARD OF DIRECTORS; ELIGIBILITY. (a) Except as
provided by Subsections (b) and (c) of this section, the district is
governed by a board of five directors who serve staggered terms of
four years.
(b) The following directors serve until March 1, 2008:
(1) Position One: Murray Holland
(2) Position Two: Scott Griffith
(3) Position Three: Thomas Corcoran
(4) Position Four: David Jaderlund
(5) Position Five: Robert Whitman
(c) The board shall hold an election to elect all directors
on the uniform election day in February 2008. Persons elected to
Positions One and Two serve terms expiring March 1, 2010. Persons
elected to Positions Three, Four, and Five serve terms expiring
March 1, 2012.
(d) Starting in 2010, the board shall hold an election on
the uniform election day in February of an even-numbered year to
elect directors to fill the positions the terms of which expire on
March 1 of that year.
(e) Other than a director listed in Subsection (b) of this
section, to be qualified to serve as a director a person must be at
least 18 years of age and:
(1) reside in the district;
(2) own real property in the district;
(3) own at least 10 percent of the outstanding
interest of a corporation or general or limited partnership that
owns real property in the district; or
(4) be an agent, employee, officer, or director of a
corporation, limited liability company, or partnership that owns
real property in the district.
SECTION 9. VACANCY. A vacancy on the board shall be filled
by appointment by the remaining members of the board of a person who
meets the qualifications under Section 8(e) of this Act.
SECTION 10. DIRECTOR'S BOND; OATH. (a) As soon as
practicable after a director is elected or appointed, the director
shall execute a bond for $10,000 payable to the district and
conditioned on the faithful performance of the director's duties.
The bond must be approved by the board.
(b) Each director shall take the oath of office prescribed
by the constitution for public office.
(c) The bond and oath shall be filed with the district and
the district shall retain the bond and oath in its records.
(d) The district shall pay the cost of a bond executed under
Subsection (a) of this section.
SECTION 11. OFFICERS. The board shall elect a chair, a vice
chair, and a secretary from its members.
SECTION 12. COMPENSATION. A director is not entitled to
compensation for service on the board but is entitled to be
reimbursed for necessary and reasonable expenses incurred in
carrying out the duties and responsibilities of a director.
SECTION 13. QUORUM. Three directors are a quorum. A
concurrence of a majority of a quorum of the board shall be required
for any official action of the district.
SECTION 14. DISTRICT CONFIRMATION ELECTION. (a) As soon as
practicable after all initial directors have qualified for office,
the initial directors shall hold an organizational meeting and call
a confirmation election to be held not later than the second uniform
election date occurring after the date of the organizational
meeting.
(b) The confirmation election shall be called and held to
confirm the establishment of the district in the manner provided by
Subchapter D, Chapter 49, Water Code. If a majority of the votes
cast at a confirmation election do not favor the creation of the
district, the board may call succeeding elections on a uniform
election date, but may not call another confirmation election
sooner than six months after the date of the previous election.
(c) Before the district is confirmed at an election, the
district may carry on any business as the board may determine except
that the district may not borrow money or impose or assess a tax or
an assessment.
SECTION 15. IMPROVEMENT PROJECTS. The district may
provide, or it may enter into contracts with a governmental or
private entity to provide, the following types of improvement
projects or activities in support of or incidental to those
projects:
(1) retail or wholesale water treatment, supply, and
distribution facilities and systems to provide potable and
nonpotable water to the residents and businesses of the district,
including wastewater and sewerage collection and treatment
facilities and systems, provided that treated effluent water
resulting from any sewerage treatment facilities operated by or in
the district may be used by the district for irrigation in the
district;
(2) the provision of septic tank maintenance services
inside or outside the district and of solid waste disposal services
if the board determines the action to be necessary and appropriate
to protect the district;
(3) macadamized, graveled, or paved roads, streets,
and turnpikes, inside and outside the district to the extent
authorized by Section 52, Article III, Texas Constitution;
(4) the planning, design, construction, improvement,
and maintenance of:
(A) landscaping;
(B) highway right-of-way or transit corridor
beautification and improvements;
(C) lighting, banners, and signs;
(D) streets or sidewalks;
(E) hiking and cycling paths and trails,
pedestrian walkways, skywalks, crosswalks, or tunnels;
(F) parks, lakes, gardens, recreational and
sports facilities, open space, scenic areas, and related exhibits
and preserves;
(G) fountains, plazas, and pedestrian malls; and
(H) drainage or storm-water detention
improvements;
(5) protection and improvement of the quality of storm
water that flows through the district;
(6) the planning, design, construction, improvement,
maintenance, and operation of:
(A) solid waste, water, sewer, or power
facilities or services, including electrical, gas, steam, and
chilled water facilities; or
(B) off-street parking facilities and heliports;
(7) the planning and acquisition of:
(A) public art and sculpture and related exhibits
and facilities; and
(B) educational and cultural exhibits and
facilities;
(8) the planning, design, construction, acquisition,
lease, rental, improvement, maintenance, installation, and
management of and provision of furnishings for facilities for:
(A) conferences, conventions, or exhibitions;
(B) manufacturer, consumer, or trade shows;
(C) civic, community, or institutional events;
and
(D) exhibits, displays, attractions, special
events, and seasonal or cultural celebrations and holidays;
(9) the removal, razing, demolition, or clearing of
land or improvements in connection with any improvement project;
(10) the acquisition and improvement of land and other
property for the mitigation of the environmental effects of any
improvement project;
(11) the acquisition of property or an interest in
property in connection with an authorized improvement project;
(12) any special or supplemental services for the
improvement and promotion of the district or the areas adjacent to
the district or for the protection of public health and safety
within or adjacent to the district, including advertising,
promotion, tourism, health and sanitation, telecommunications and
cable services to residents and businesses in the district, public
safety, security, fire protection or emergency medical services,
business recruitment, development, elimination of traffic
congestion, and recreational, educational, or cultural
improvements, enhancements, and services; and
(13) any similar public improvements, facilities, or
services.
SECTION 16. POWERS RELATED GENERALLY TO CONTRACTS AND
FINANCIAL MATTERS. (a) The district may:
(1) impose an ad valorem tax, assessment, or impact
fee in accordance with Chapter 375, Local Government Code, on all
taxable property in the district, including industrial,
commercial, and residential property, to finance and provide
improvement projects;
(2) impose, assess, and apply the proceeds from a
limited sales and use tax, and a hotel occupancy tax, as authorized
by this Act;
(3) impose rates, fees, and charges for the use of any
improvement project or the consumption of a product resulting from
an improvement project;
(4) borrow money for district purposes by issuing or
executing bonds, notes, credit agreements, or other obligations of
any kind found by the board to be necessary or appropriate for
district purposes;
(5) enter into a contract with any person for the
accomplishment of any district purpose, including a contract for:
(A) the payment, repayment, or reimbursement of
costs incurred by that person on behalf of the district, including
all or part of the costs of an improvement project and interest on
the reimbursed cost; or
(B) the use, occupancy, lease, rental,
operation, maintenance, or management of all or part of a proposed
or existing improvement project;
(6) apply for and contract with any person to receive,
administer, and perform any duty or obligation of the district
under a federal, state, local, or private gift, grant, loan,
conveyance, transfer, bequest, donation, or other financial
assistance arrangement relating to the investigation, planning,
analysis, study, design, acquisition, construction, improvement,
completion, implementation, or operation by the district or others
of a proposed or existing improvement project;
(7) establish, revise, repeal, enforce, collect, and
apply the proceeds from user fees or charges for the enjoyment,
sale, rental, or other use of the district's facilities, services,
properties, or improvement projects;
(8) provide or secure the payment or repayment of the
costs and expenses of the establishment, administration, and
operation of the district and the district's costs or share of the
costs of an improvement project or district contractual obligation
or indebtedness by or through a lease, installment purchase
contract, or other agreement with any person, or the imposition of
taxes, user fees, concessions, rentals, or other revenues or
resources of the district;
(9) establish user charges related to the operation of
various public services, including public water supply services,
for the collection and treatment of wastewater, and for the
operation of storm-water facilities, including the regulation of
storm water for the protection of water quality in the district, and
for the provision of septic tank maintenance services inside and
outside the district;
(10) undertake separately or jointly with other
persons all or part of the cost of an improvement project, including
an improvement project:
(A) for improving, enhancing, and supporting
public safety and security, fire protection and emergency medical
services, and law enforcement in and adjacent to the district; or
(B) that confers a general benefit on the entire
district or a special benefit on a definable part of the district;
and
(11) enter into tax abatement agreements in accordance
with the general laws of the state authorizing and applicable to tax
abatement agreements by municipalities.
(b) A contract the district enters into to carry out a
purpose of this Act may be on any terms and for any period as the
board may determine.
(c) A state agency, a municipality, Henderson County, any
other political subdivision, a corporation, an individual, or any
other entity may contract with the district to carry out the
purposes of this Act without any further statutory or other
authorization.
SECTION 17. RULES. The district may adopt rules:
(1) to administer or operate the district;
(2) for the use, enjoyment, availability, protection,
security, and maintenance of the district's properties and
facilities; or
(3) to provide for public safety and security in the
district.
SECTION 18. ADDITION OR REMOVAL OF TERRITORY. The board may
add, delete, or exclude territory in the manner provided by
Subchapter J, Chapter 49, Water Code, as limited by Section 54.016,
Water Code, except that:
(1) for purposes of this section, a reference in
Subchapter J, Chapter 49, Water Code, or Section 54.016, Water
Code, to a tax means an ad valorem tax;
(2) Section 54.016, Water Code, and Section 42.042,
Local Government Code, do not apply to the district's annexation of
land restricted primarily to commercial or business use;
(3) land may not be added or annexed to the district
without the consent of the owners of the land; and
(4) land may not be removed or disannexed from the
district at any time during which any bonds or other obligations of
the district that are payable, in whole or in part, from ad valorem
taxes are outstanding.
SECTION 19. EMINENT DOMAIN. The district has the power of
eminent domain, inside and outside its boundaries, for all public
purposes. The district's power of eminent domain is exercised in
the same manner as required for a county.
SECTION 20. NONPROFIT CORPORATION. (a) The district, by
board resolution, may authorize the incorporation of a nonprofit
corporation to assist and act for the district in implementing an
improvement project or providing services authorized by this Act.
(b) The board shall appoint the board of directors of a
nonprofit corporation created under this section. The board of
directors of the nonprofit corporation shall serve in the same
manner as, for the same term as, and on the same conditions as a
board of directors of a local government corporation created under
Subchapter D, Chapter 431, Transportation Code.
(c) A nonprofit corporation created under this section:
(1) has each power of and is considered for purposes of
this Act to be a local government corporation created under
Subchapter D, Chapter 431, Transportation Code; and
(2) may implement an improvement project and provide a
service authorized by this Act and approved by the board.
SECTION 21. ECONOMIC DEVELOPMENT. The district may create
economic development programs and exercise the economic
development powers and authority that Chapter 380, Local Government
Code, provides to a municipality with a population of more than
100,000, and Chapter 1509, Government Code, provides to any
municipality.
SECTION 22. TERMS OF EMPLOYMENT; COMPENSATION. The board
may employ and establish the terms of employment and compensation
of an executive director or general manager and any other employees
of the district the board considers necessary.
SECTION 23. USE OF ROADWAYS, PARKS, OTHER PUBLIC AREAS OF
THE DISTRICT. (a) The board by rule may regulate the private use of
public roadways, open spaces, parks, sidewalks, and similar public
areas in the district. To the extent the rules of the district
conflict with a rule, order, or regulation of Henderson County, the
rule, order, or regulation of the county controls. The rules may
provide for the safe and orderly use of public roadways, open
spaces, parks, sidewalks, and similar public areas or facilities.
(b) The board may require a permit for a parade,
demonstration, celebration, entertainment event, or a similar
nongovernmental activity in or on the public roadways, open spaces,
parks, sidewalks, and similar public areas or facilities. The board
may charge a fee for the permit application and for public safety or
security services in an amount the board considers necessary.
(c) The board may require a permit or franchise agreement
with a vendor, concessionaire, exhibitor, or similar private or
commercial person or organization for the limited use of the area or
facilities on terms and on payment of a permit or franchise fee the
board may impose.
SECTION 24. ZONING BY COUNTY. (a) If requested by the
district to exercise zoning powers, Henderson County may exercise,
solely in the boundaries of the district, the zoning powers granted
to counties in Subchapter E, Chapter 231, Local Government Code,
without holding the election required by Section 231.075.
(b) If the county exercises zoning powers, the board shall
exercise and perform the powers, duties, and functions of a lake
planning commission under Section 231.077, Local Government Code.
SECTION 25. IMPACT FEES AND ASSESSMENTS. (a) The district
may impose impact fees and assessments according to benefits
received by the property, including an impact fee or assessment on
residential property.
(b) An impact fee for residential property must be for the
limited purposes of providing capital funding for public water and
wastewater facilities, for drainage and storm-water facilities,
for telecommunications and cable facilities and services, and for
streets and alleys.
(c) The district may not impose an impact fee or assessment
on the property, equipment, or facilities of a public utility
provider.
SECTION 26. OPERATION AND MAINTENANCE TAX; ELECTION. (a)
The district may impose a tax for operation and maintenance
purposes, including for funds for planning, constructing,
acquiring, maintaining, repairing, and operating all necessary
land, plants, works, facilities, improvements, appliances, and
equipment of the district and for paying costs of services,
engineering and legal fees, and organization and administrative
expenses.
(b) An operation and maintenance tax may not be imposed
until it is approved by the qualified voters in the district voting
at an election held for that purpose. If a majority of the votes
cast at the election approve the imposition of the tax, the board
may impose the tax and have it assessed and collected in the same
manner as other district taxes.
(c) An operation and maintenance tax election may be held at
the same time and in conjunction with any other district election.
The election may be called by a separate election order or as part
of any other election order.
(d) The proposition in an operation and maintenance tax
election may be for a specific maximum rate or for an unlimited
rate.
(e) If the district has surplus operation or maintenance tax
funds that are not needed for the purposes for which they were
collected, the funds may be used for any authorized purpose.
(f) Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
to a tax levied and collected under this section or an ad valorem
tax levied and collected for the payment of the interest on and
principal of bonds issued by the district.
SECTION 27. TAX LEVY FOR BONDS AND OTHER OBLIGATIONS. (a)
At the time bonds or other obligations payable in whole or in part
from ad valorem taxes are issued:
(1) the board shall impose a continuing direct annual
ad valorem tax, without limit as to rate or amount, for each year
while all or part of the bonds are outstanding; and
(2) the district shall annually assess and collect an
ad valorem tax on all taxable property in the district in an amount
sufficient to:
(A) pay the interest on the bonds or other
obligations as it becomes due;
(B) create a sinking fund for the payment of the
principal of the bonds or other obligations when due or the
redemption price at any earlier required redemption date; and
(C) pay the expenses of assessing and collecting
the taxes.
(b) Bonds or other obligations that are secured by and
payable from assessments or ad valorem taxes, or a combination of
assessments and ad valorem taxes, may not be issued unless the bonds
and the imposition of the taxes are approved by a majority of the
voters in the district voting at an election held for that purpose.
(c) The district shall conduct an election required by this
section in the manner provided by Subchapter L, Chapter 375, Local
Government Code.
SECTION 28. LIMITED SALES AND USE TAX. (a) Words and
phrases used in this section that are defined by Chapters 151 and
321, Tax Code, have the meanings assigned by Chapters 151 and 321,
Tax Code.
(b) Except as otherwise provided in this section, Subtitles
A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to the
taxes and to the administration and enforcement of the taxes
imposed by the district in the same manner that those laws apply to
state taxes.
(c) The district may adopt, reduce, or repeal the limited
sales and use tax authorized by this section at an election in which
a majority of the voters of the district voting in the election
approve the adoption or the abolition of the tax, as applicable.
(d) The provisions of Subchapters C, D, E, and F, Chapter
323, Tax Code, relating to county sales and use taxes shall apply to
the application, collection, and administration of a sales and use
tax imposed under this section to the extent consistent with this
Act, as if references in Chapter 323, Tax Code, to a county referred
to the district and references to a commissioners court referred to
the board. Sections 323.401-323.404 and 323.505, Tax Code, do not
apply to a tax imposed under this section.
(e) A tax imposed under this section or the repeal or
reduction of a tax under this section takes effect on the first day
of the calendar quarter occurring after the date on which the
comptroller receives the copy of the resolution as required by
Section 323.405(b), Tax Code.
(f) On adoption of the tax authorized by this section, there
is imposed a tax of two percent, or the maximum rate at which the
combined tax rate of all local sales and use taxes in any location
in the district does not exceed two percent, on the receipts from
the sale at retail of taxable items within the district, and an
excise tax on the use, storage, or other consumption within the
district of taxable items purchased, leased, or rented from a
retailer within the district during the period that the tax is in
effect. The rate of the excise tax is the same as the rate of the
sales tax portion of the tax and is applied to the sales price of the
taxable item.
(g) An election to authorize, reduce, or repeal a limited
sales and use tax may be called by order of the board and must be
held on the next available uniform election date that occurs 45 or
more days after the date on which the order calling the election was
passed. The district shall provide notice of the election and shall
hold and conduct the election in the manner prescribed by Chapter
54, Water Code, for bond elections for municipal utility districts.
The ballots shall be printed to provide for voting for or against
the appropriate one of the following propositions:
(1) "Adoption of a ___ percent district sales and use
tax within the district";
(2) "Reduction of the district sales and use tax
within the district from ___ percent to ___ percent"; or
(3) "Abolition of the district sales and use tax
within the district."
(h) If all or part of the territory of the district is
annexed by a municipality that has adopted and is imposing a sales
and use tax, the sales and use tax imposed by the district in the
annexed territory shall be reduced, if required, in even multiples
of one-eighth percent, and without the necessity for an election,
so that the combined rate of all sales and use taxes imposed by
Henderson County, the annexing municipality, and all other
political subdivisions within the annexed territory of the district
will not exceed two percent, except that:
(1) a sales and use tax previously adopted by the
district for the annexed territory may not be reduced to less than
one-half percent; and
(2) a reduction of the district's sales and use tax in
the portions of the district that are not annexed is not required.
(i) A tax imposed under this section or the reduction or
repeal of a tax under this section takes effect on the first day of
the calendar quarter occurring after the date on which the
comptroller receives the notice required by Section 323.405(b), Tax
Code.
(j) Not later than the 10th day after the date of the
annexation or exclusion of territory by the district or the
annexation of all or part of the territory of the district by a
municipality requiring a reduction of the district's sales and use
tax as provided by Subsection (h) of this section, the board shall
send to the comptroller, by certified or registered mail, certified
copies of all resolutions, orders, or ordinances pertaining to the
annexation or exclusion of the territory by a district or
municipality.
(k) The district may examine and receive information
related to the imposition, assessment, and collection of sales and
use taxes to the same extent as if the district were a municipality.
SECTION 29. HOTEL OCCUPANCY TAX. (a) In this section,
"hotel" has the meaning assigned by Section 156.001, Tax Code.
(b) The board by order may impose, repeal, or increase or
decrease the rate of a tax on a person who, under a lease,
concession, permit, right of access, license, contract, or
agreement, pays for the use or possession or for the right to use or
possess a room that is in a hotel located in the boundaries of the
district, costs $2 or more each day, and is ordinarily used for
sleeping. The amount of the tax may not exceed seven percent of the
price paid for a room in a hotel.
(c) Except as inconsistent with this section, Subchapter A,
Chapter 352, Tax Code, governs a hotel occupancy tax authorized
under this section, including the collection of the tax, subject to
the limitations prescribed by Sections 352.002(b) and (c), Tax
Code.
(d) The district may examine and receive information
related to the imposition, assessment, and collection of hotel
occupancy taxes to the same extent as if the district were a
municipality.
(e) For purposes of this section, a reference in Subchapter
A, Chapter 352, Tax Code, to a county is a reference to the district
and a reference in Subchapter A, Chapter 352, Tax Code, to the
county's officers or governing body is a reference to the board.
SECTION 30. USE OF HOTEL OCCUPANCY TAX. (a) The district
shall apply the proceeds from a hotel occupancy tax imposed under
this Act for any of the district's purposes and for the purposes
described by Section 352.1015, Tax Code, to the extent considered
appropriate by the board.
(b) During each interval of three calendar years following
the date on which a hotel occupancy tax imposed under this section
is initially collected, the board may not apply an annual average of
more than 10 percent of the amount of tax collected under Section 29
of this Act, excluding any interest earnings or investment profits
and after a deduction for the costs of imposing and collecting the
taxes, for the administrative expenses of the district or a
district purpose other than:
(1) the costs of advertising and promoting tourism; or
(2) the costs of business development and commerce,
including the costs of planning, designing, constructing,
acquiring, leasing, financing, owning, operating, maintaining,
managing, improving, repairing, rehabilitating, or reconstructing
improvement projects for conferences, conventions, and
exhibitions, manufacturer, consumer, or trade shows, and civic,
community, or institutional events.
(c) For purposes of this section, a reference in Subchapter
B, Chapter 352, Tax Code, to a county is a reference to the district
and a reference in Subchapter B, Chapter 352, Tax Code, to the
county's officers or governing body is a reference to the board.
SECTION 31. BONDS AND OTHER OBLIGATIONS. (a) The district
may issue bonds in the manner provided by Subchapter J, Chapter 375,
Local Government Code, except that Sections 375.207 and 375.208 do
not apply to bonds issued under this Act.
(b) In addition to the sources of money described by
Subchapter J, Chapter 375, Local Government Code, the bonds of the
district may be secured and made payable, wholly or partly, by a
pledge of any part of the net proceeds the district receives from
the sales and use tax and the hotel occupancy tax authorized by
this Act and from any other district revenues.
SECTION 32. DISSOLUTION. (a) Except as provided by
Subsection (b) and the terms of a joint development and operating
agreement, the board:
(1) may dissolve the district by majority vote; and
(2) shall dissolve the district on receipt of a
written petition requesting dissolution signed by the owners of 75
percent of the acreage of real property in the district.
(b) The board may not dissolve the district until the
district's outstanding indebtedness or contractual obligations
have been repaid or discharged.
(c) After the board dissolves the district, the board shall
transfer ownership of all property and assets of the district to
Henderson County.
SECTION 33. ADDITIONAL LEGISLATIVE FINDINGS. The
legislature finds that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the commission;
(2) the commission has filed its recommendations
relating to this Act with the governor, lieutenant governor, and
speaker of the house of representatives within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 34. EFFECTIVE DATE. This Act takes effect February
15, 2004.