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A BILL TO BE ENTITLED
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AN ACT
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relating to county development districts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 383.003(a), Local Government Code, is |
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amended to read as follows: |
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(a) Counties [Small and medium-sized counties] in this |
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state need incentives for the development of public improvements to |
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attract visitors and tourists [to those counties], and [those
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counties] are at a disadvantage in competing with counties in other |
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states for the location and development of projects that attract |
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visitors by virtue of the availability and prevalent use of |
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financial incentives in other states. |
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SECTION 2. Section 383.021(a), Local Government Code, is |
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amended to read as follows: |
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(a) The commissioners court of a county by issuing a |
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proposal approved by a majority of the court or [with a population
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of 400,000 or less,] on petition of the owners of land in a proposed |
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district, may commence the creation of a county development |
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district. |
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SECTION 3. Section 383.022, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.022. PETITION OF LANDOWNERS. To commence the |
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creation of a district by petition [create a district], a petition |
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requesting creation must be filed with the commissioners court of |
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the county in which all of the land in the proposed district is |
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located. The petition must be accompanied by a sworn statement |
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indicating consent to creation signed by the holders of fee simple |
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title of all of the land in the proposed district. |
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SECTION 4. Section 383.023, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.023. CONTENTS OF PROPOSAL OR PETITION. The |
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commissioners court's proposal or the petition to create a district |
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must: |
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(1) describe the boundaries of the proposed district |
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by metes and bounds or by lot and block number, if there is a |
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recorded map or plat and survey of the area; |
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(2) include a name for the proposed district, which |
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must include the name of the county followed by the words |
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"Development District No.______"; |
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(3) include the names of five persons who are willing |
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and qualified to serve as initial [temporary] directors of the |
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proposed district; |
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(4) state the general nature of the work proposed to be |
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done and the cost of the project as then estimated by the |
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petitioners; and |
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(5) state the necessity and feasibility of the |
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proposed district and whether the district will serve the public |
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purpose of attracting visitors and tourists to the county. |
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SECTION 5. Section 383.024, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.024. SETTING OF [COMMISSION] HEARING; CONTENTS OF |
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NOTICE. Before the 61st day after the date a proposal is issued or a |
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petition is received, the commissioners court shall set a date, |
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time, and place for a hearing on the creation of the district [at
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which the petition shall be heard] and shall issue notice of the |
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date, time, place, and subject matter of the hearing. The notice |
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shall inform all persons of their right to appear and present |
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evidence and testify for or against the creation of the district. |
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SECTION 6. Section 383.025, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.025. PROVIDING NOTICE OF HEARING. Before the 30th |
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day before the date set for the hearing, the commissioners court |
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shall provide notice of the hearing by: |
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(1) mailing the notice [shall be mailed] to the |
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[developer who signed the petition and the] landowners of all the |
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land in the district; or |
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(2) publishing the notice [and shall be published] in |
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a newspaper with general circulation in the county in which the |
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proposed district is located. |
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SECTION 7. Section 383.026, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.026. HEARING. At the hearing: |
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(1) [,] the commissioners court shall examine the |
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proposal or petition to ascertain its sufficiency;[,] and |
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(2) any interested person may appear before the |
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commissioners court to offer testimony on the sufficiency of the |
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proposal or petition and whether the district should be created. |
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SECTION 8. Section 383.027, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.027. GRANTING OR REFUSING PREVIOUS PROPOSAL OR |
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PETITION; CREATION OF DISTRICT. (a) After the hearing, if the |
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commissioners court finds that the petition, if a petition was |
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filed, conforms to the requirements of Section 383.022 and that the |
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creation of the district and the proposed project is feasible and |
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necessary and would serve the public purpose of attracting visitors |
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or tourists to the county, the commissioners court by order may make |
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that finding and create [enter an order creating] the district. |
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(b) The order creating the district may specify the cost to |
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the county of publishing notice and conducting hearings for the |
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creation of the district together with the cost of conducting the |
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confirmation and sales and use tax election. The county may require |
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the petitioner, if a petition was filed, to pay to the county the |
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amounts specified in the order creating the district at the time the |
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order becomes final. |
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(c) If the commissioners court finds that the petition does |
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not conform to the requirements of Section 383.022 or that the |
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creation of the district and the proposed project is not feasible |
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and necessary and would not serve the purpose of attracting |
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visitors and tourists to the county, the commissioners court by |
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order shall make that finding [in an order] and deny the creation of |
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the district [petition]. |
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SECTION 9. Section 383.028, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.028. INITIAL [TEMPORARY] DIRECTORS; VACANCY IN |
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OFFICE. (a) If the commissioners court orders the creation of the |
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district under Section 383.027 [grants the petition], it shall |
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appoint to serve as initial [temporary] directors of the district |
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five persons who are qualified under this chapter to serve as |
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directors. |
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(b) A vacancy in the office of initial [temporary] director |
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shall be filled by appointment by the commissioners court. |
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SECTION 10. Section 383.029, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.029. QUALIFICATION OF INITIAL [TEMPORARY] |
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DIRECTORS; ORGANIZATION. (a) Each initial [temporary] director |
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shall execute a bond in accordance with Section 383.046 and shall |
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take an oath of office. |
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(b) The board shall meet and organize. |
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SECTION 11. Section 383.030, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.030. CONFIRMATION AND SALES AND USE TAX ELECTION. |
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The initial [temporary] board of directors shall conduct an |
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election in the district to confirm the creation of the district and |
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authorize a sales and use tax in conformity with this chapter. |
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SECTION 12. Section 383.032, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.032. NOTICE. The initial [temporary] directors |
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shall give notice of the election by publishing a substantial copy |
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of the election order once a week for two consecutive weeks in a |
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newspaper with general circulation in the county in which the |
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proposed district is located. The first publication must appear |
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before the 14th day before the date set for the election. |
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SECTION 13. Sections 383.034(a) and (b), Local Government |
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Code, are amended to read as follows: |
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(a) After the election, the presiding judge shall make |
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returns of the result to the initial [temporary] board of |
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directors. The initial [temporary] board of directors shall |
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canvass the returns and declare the results. |
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(b) If a majority of the votes cast in the election favor the |
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creation of the district and the adoption of the sales and use tax, |
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the initial [temporary] board shall declare that the district is |
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created and shall declare the amount of the local sales and use tax |
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adopted and enter the result in its minutes. If a majority of the |
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votes cast in the election are against the creation of the district |
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and the adoption of the sales and use tax, the initial [temporary] |
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board shall declare that the proposition to create the district was |
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defeated and enter the result in its minutes. |
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SECTION 14. Section 383.041, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.041. BOARD OF DIRECTORS; TERMS. (a) A district is |
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governed by a board of five directors appointed by the |
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commissioners court of the county in which the district is located. |
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The initial [temporary] directors appointed under Section 383.028 |
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remain [shall become permanent] directors of the district, if the |
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creation of the district is confirmed at the confirmation election. |
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(b) Directors serve staggered terms of two [four] years, |
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with two or three members' terms expiring September 1 of each [every
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other] year. Following confirmation of the district at the |
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election, the initial [temporary] directors shall draw lots to |
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determine: |
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(1) the two directors to serve terms that expire on |
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September 1 of the first [second] year following creation of the |
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district; and |
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(2) the three directors to serve terms that expire on |
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September 1 of the second [fourth] year following creation of the |
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district. |
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SECTION 15. Subchapter D, Chapter 383, Local Government |
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Code, is amended by adding Sections 383.067 and 383.068 to read as |
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follows: |
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Sec. 383.067. CONTRACTS WITH COUNTY. A district and a |
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county may enter into an interlocal contract under Chapter 791, |
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Government Code, for the county to provide services to the |
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district, including county auditor services. |
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Sec. 383.068. FINANCING OF INFRASTRUCTURE AND SERVICES. A |
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district may finance government infrastructure and services in the |
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district. |
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SECTION 16. Section 383.084, Local Government Code, is |
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amended by amending Subsection (b) and adding Subsections (c) and |
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(d) to read as follows: |
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(b) If the commissioners court unanimously determines from |
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the evidence that the best interests of the persons and property in |
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the district will be served by [adding or] excluding land, the |
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commissioners court shall enter in its records the appropriate |
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findings and order [adding or] excluding land. |
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(c) The commissioners court shall enter in its records the |
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appropriate findings and order adding the land only if: |
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(1) all landowners of the land to be added consent to |
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the addition of the land; or |
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(2) a majority of the voters voting in an election |
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approve the addition of the land. |
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(d) Only voters who reside on the land proposed to be added |
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may vote in an election held under Subsection (c). |
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SECTION 17. The heading to Subchapter E, Chapter 383, Local |
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Government Code, is amended to read as follows: |
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SUBCHAPTER E. BONDS; ADDING OR REMOVING LAND |
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SECTION 18. Subchapter E, Chapter 383, Local Government |
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Code, is amended by adding Section 383.085 to read as follows: |
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Sec. 383.085. REMOVAL OF TERRITORY BY MUNICIPALITY. (a) If |
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a municipality completes all other procedures necessary to annex |
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territory in a district, the municipality shall send written notice |
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of that fact to the board. The municipality must send the notice to |
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the board secretary by certified mail, return receipt requested. |
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The territory remains part of the district and does not become part |
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of the municipality until the board secretary receives the notice. |
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On receipt of the notice, the board shall immediately change its |
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records to show that the territory has been disannexed from the |
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district. |
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(b) The disannexation of territory under this section does |
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not diminish or impair the rights of the holders of any outstanding |
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and unpaid bonds, warrants, or other obligations of the district |
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including loans and lease-purchase agreements. |
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(c) If a municipality annexes territory in a district, the |
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municipality shall compensate the district immediately after |
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disannexation of the territory under Subsection (a) in an amount |
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equal to the annexed territory's pro rata share of the district's |
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bonded and other indebtedness as computed according to the formula |
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in Subsection (d). The district shall apply compensation received |
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from a municipality under this subsection exclusively to the |
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payment of the annexed territory's pro rata share of the district's |
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bonded and other indebtedness. |
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(d) The amount of compensation under Subsection (c) is |
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determined by multiplying the district's total indebtedness at the |
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time of the annexation by a fraction the numerator of which is the |
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assessed value of the property to be annexed based on the most |
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recent certified county property tax rolls at the time of |
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annexation and the denominator of which is the total assessed value |
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of the property of the district based on the most recent certified |
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county property tax rolls at the time of annexation. |
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(e) For purposes of this section, total indebtedness |
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includes loans and lease-purchase agreements but does not include a |
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loan or lease-purchase agreement the district enters into after the |
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district receives notice of the municipality's intent to annex |
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district territory. |
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SECTION 19. Section 383.101(b), Local Government Code, is |
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amended to read as follows: |
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(b) If a district adopts the tax, there is imposed a tax on |
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the receipts from the sale at retail of taxable items in the |
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district at a rate of up to [one-half of] one percent. There is also |
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imposed an excise tax on the use, storage, or other consumption in |
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the district of taxable items purchased, leased, or rented from a |
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retailer during the period that the tax is effective in the |
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district. The rate of the excise tax is the same as the rate of the |
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sales tax portion of the tax applied to the sales price of the |
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taxable items and is included in the sales tax. |
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SECTION 20. Section 383.103, Local Government Code, is |
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amended to read as follows: |
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Sec. 383.103. TAX RATES. The permissible rates for a local |
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sales and use tax levied under this chapter are one-fourth of one |
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percent, three-eighths of one percent, [and] one-half of one |
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percent, five-eighths of one percent, three-fourths of one percent, |
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seven-eighths of one percent, and one percent. |
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SECTION 21. The heading to Subchapter B, Chapter 383, Local |
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Government Code, is amended to read as follows: |
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SUBCHAPTER B. CREATION OF DISTRICT; INITIAL [TEMPORARY] BOARD |
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SECTION 22. (a) Section 383.041, Local Government Code, as |
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amended by this Act, does not terminate the office of a director |
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serving on a county development district as of the effective date of |
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this Act. The directors shall transition to two-year terms as |
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provided by Subsection (b) of this section. |
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(b) To comply with Section 383.041, Local Government Code, |
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as amended by this Act, the directors of a county development |
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district shall draw lots to determine which two or three terms |
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expire September 1, 2008. The remaining directors' terms expire |
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September 1, 2009. |
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SECTION 23. Section 383.085, Local Government Code, as |
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added by this Act, applies only to the annexation of an area for |
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which all parts of the statutory annexation process are begun on or |
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after the effective date of this Act. The annexation of an area for |
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which any part of the statutory annexation process was begun before |
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the effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and the former |
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law is continued in effect for that purpose. |
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SECTION 24. This Act takes effect September 1, 2007. |