84R14077 JXC-F
 
  By: Kuempel H.B. No. 2635
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation and operation of a park and recreation
  district in counties that share a border on the San Marcos River and
  to the authority of the district to collect fees and issue bonds;
  creating a criminal offense and providing penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle B, Title 10, Local Government Code, is
  amended by adding Chapter 324A to read as follows:
  CHAPTER 324A. PARK AND RECREATION DISTRICTS IN CERTAIN COUNTIES ON
  THE SAN MARCOS RIVER
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 324A.001.  ELIGIBLE COUNTIES AND TERRITORY. (a) Two
  counties that share a border on the San Marcos River may create a
  district as provided by this chapter in all or part of the counties
  to:
               (1)  conserve the natural resources in the district;
  and
               (2)  improve the public health, safety, and welfare in
  the district.
         (b)  The territory of a district created under this chapter
  must include all of at least one county election precinct on each
  side of the San Marcos River, except that the district territory
  must exclude all territory located in a state park.
         (c)  The territory of a district created under this chapter
  may not include territory outside of the creating counties
  initially, but the district may annex territory outside the
  counties under Section 324A.121.
         Sec. 324A.002.  DEFINITIONS. (a) In this chapter:
               (1)  "Board" means the board of directors of a park and
  recreation district created under this chapter.
               (2)  "District" means a park and recreation district
  created under this chapter.
               (3)  "Eligible county" means a county described by
  Section 324A.001.
               (4)  "Fee" includes a toll or any other charge.
         (b)  A reference in this chapter to a county "in which the
  district is located" does not include a county in which the district
  was not located on the date the district was created.
  SUBCHAPTER B.  CREATION OF PARK AND RECREATION DISTRICT
         Sec. 324A.021.  CREATION ELECTIONS REQUIRED. A district may
  be created under this chapter only if:
               (1)  the commissioners court of each eligible county in
  which the proposed district will be located:
                     (A)  receives a written petition for the creation
  of the district that:
                           (i)  is signed by a number of the registered
  voters who reside in the county equal to at least five percent of
  the votes received in the county in the most recent gubernatorial
  general election; and
                           (ii)  includes an accurate description of
  the territory to be included in the district by reference to county
  election precinct boundaries, by metes and bounds, by lot and block
  number if there is a recorded map or plat and survey of the area, or
  by other sufficient legal description; or
                     (B)  passes a motion favoring creation of the
  district that includes an accurate description of the territory to
  be included in the district by reference to county election
  precinct boundaries, by metes and bounds, by lot and block number if
  there is a recorded map or plat and survey of the area, or by other
  sufficient legal description;
               (2)  the commissioners court of each county in which
  the proposed district will be located approves the creation of the
  district after a public hearing held to consider the creation of the
  district; and
               (3)  the creation of the district is approved by the
  voters as provided by Section 324A.024.
         Sec. 324A.022.  HEARING. (a) A commissioners court of an
  eligible county that receives a petition or passes a motion under
  Section 324A.021 shall hold a hearing on the creation of the
  district.
         (b)  The commissioners court shall set a date for the hearing
  that is after the 20th day but on or before the 40th day after the
  date the petition is received or the passage of the motion, as
  applicable, under Section 324A.021.
         (c)  The commissioners court shall publish in a newspaper of
  general circulation in the county notice of the petition or motion
  and the hearing date.
         (d)  The notice must be published at least once each week for
  a period of two weeks before the hearing date.
         (e)  At the hearing, the commissioners court shall hear all
  arguments for and against the creation of the district and shall
  take evidence as in civil cases in the county court.
         (f)  The hearing may be adjourned from time to time on good
  cause shown.
         Sec. 324A.023.  ORDER OF ELECTION. (a) After holding a
  hearing under Section 324A.022, the commissioners court may approve
  the creation of the district and order an election on the issue of
  the creation of the district only if the court finds that:
               (1)  the petition, if any, was signed by the required
  number of registered voters in the county;
               (2)  the district will serve the purposes prescribed by
  Section 324A.001; and
               (3)  the territory of the proposed district includes at
  least one county election precinct in an eligible county on each
  side of the San Marcos River.
         (b)  The commissioners court's election order must provide
  for the voters of the territory of the proposed district who reside
  in the county to vote for or against a proposition to approve the
  creation of the district.
         (c)  A commissioners court that orders an election under this
  section shall notify the commissioners court of the other eligible
  county in which the proposed district will be located of the order.
         Sec. 324A.024.  ELECTION; RESULT. (a) The election must be
  held on the date of the first regularly scheduled countywide
  election that follows the date of the order of the election and for
  which there is sufficient time to comply with other requirements of
  law.
         (b)  The commissioners courts of the counties in which the
  proposed district will be located are not required to hold their
  respective creation elections on the same day.
         (c)  The returns on the election shall be certified and the
  results declared in the same manner as provided for other county
  elections, except as provided by this section.
         (d)  A commissioners court that holds an election under this
  section shall notify the commissioners court of the other county in
  which the district is proposed to be located of the results of the
  election, including the number of voters who voted for the
  proposition and the number of voters who voted against the
  proposition.
         (e)  After an election is held in the proposed district
  territory of each eligible county, the two commissioners courts
  jointly shall determine whether the majority of the voters voting
  in the proposed district as a whole voted for or against the
  proposition to approve the creation of the district. The county
  commissioners courts jointly shall declare the district created if
  a majority of the voters who voted in the proposed district as a
  whole voted for the proposition. Each commissioners court shall
  enter the declaration in the court's minutes at the court's next
  meeting, or if the majority of the voters who voted in the proposed
  district as a whole voted against the proposition, each court shall
  enter in the court's minutes that the voters did not approve the
  creation of the district.
         Sec. 324A.025.  COSTS OF CREATION AND ORGANIZATION. The
  costs necessarily incurred in the creation and organization of the
  district may be paid from the district's revenue from any source.
  SUBCHAPTER C.  BOARD OF DIRECTORS OF PARK AND RECREATION DISTRICT
         Sec. 324A.041.  APPOINTMENT OF BOARD MEMBERS; TERMS. (a) A
  district is governed by a board composed of seven members.
         (b)  The commissioners court of each county in which the
  district is located shall appoint three members of the board.
         (c)  A municipality in the district may nominate a candidate
  for the seventh board member position.  The six board members
  appointed under Subsection (b) shall select a seventh board member
  from among the nominations or, if the board receives no
  nominations, shall select a seventh board member.
         (d)  A commissioners court or the board shall file with the
  county clerk of each county in which the district is located a
  certificate of the appointment of each board member appointed by
  the court or board. The certificate is conclusive evidence of the
  proper appointment of the board member.
         (e)  Three members of the initial board serve one-year terms
  and four members serve two-year terms. The members shall draw lots
  to determine which members serve the one-year terms. Thereafter,
  each board member is appointed for a term of two years from the date
  of the board member's appointment.
         (f)  A board member may not serve more than four consecutive
  full terms.
         Sec. 324A.042.  QUALIFICATIONS.  (a)  A board member must:
               (1)  be a citizen of the United States; and
               (2)  reside, own property, or own a business in the
  district.
         (b)  A board member may not be an officer or employee of a
  county in which the district is located or of a municipality in the
  district.
         (c)  Not more than two board members may be owners,
  operators, or employees of the same type of business.
         Sec. 324A.043.  VACANCIES. A vacancy that occurs on the
  board shall be filled for the unexpired term by appointment in the
  manner in which the vacating board member was appointed.
         Sec. 324A.044.  OATH AND BOND. (a) Not later than the 30th
  day after the date a board member is appointed, the member must
  qualify by taking the official oath and by filing a good and
  sufficient bond with the district.
         (b)  The bond must be:
               (1)  payable to the district;
               (2)  payable in an amount prescribed by the district of
  $5,000 or more; and
               (3)  conditioned that the board member will faithfully
  perform the duties of a board member, including the proper handling
  of all money that comes into the board member's hands in the board
  member's official capacity.
         Sec. 324A.045.  COMPENSATION AND REIMBURSEMENT. A board
  member is not entitled to compensation but is entitled to
  reimbursement for necessary expenses, including travel expenses,
  incurred in performing the duties of a board member. A board
  member's reimbursement for necessary expenses in excess of $250
  must be approved by the board. A board member's approved expense
  account shall be paid in due time by the board's check or warrant.
         Sec. 324A.046.  QUORUM; MAJORITY VOTE. (a)  Five board
  members constitute a quorum of the board.
         (b)  An affirmative vote of a majority of the membership of
  the board is required for board action.
         Sec. 324A.047.  APPROVAL OF COMMISSIONERS COURT. (a) The
  board is subject to the supervision of the commissioners courts of
  the counties in which the district is located in the exercise of all
  the board's rights, powers, and privileges and in the performance
  of the board's duties.
         (b)  Not later than the 30th day after the date the board
  acts, the commissioners courts jointly may approve or disapprove
  the board's action. If the courts disapprove the act, the act is
  ineffective. Otherwise, the act becomes effective on the earlier
  of the date the commissioners courts approve the act or the 31st day
  after the date the board acted.
         Sec. 324A.048.  ORGANIZATION; MEETINGS. (a) Annually, the
  board shall elect a president, a vice president, a secretary, and a
  treasurer.
         (b)  The offices of secretary and treasurer may be held by
  the same person. If either the secretary or the treasurer is absent
  or unavailable, the president may appoint another board member to
  act for and perform the duties of the absent or unavailable officer.
         (c)  The board shall set times for and hold regular meetings.
  On the request of two or more board members, the board may hold a
  special meeting at other times as necessary.
         (d)  The board shall hold meetings at a public place in a
  county in which the district is located.
  SUBCHAPTER D.  POWERS AND DUTIES
         Sec. 324A.061.  DEPOSITORIES AND DISBURSEMENTS. (a) Money
  and other funds belonging to or under control of the board are
  public funds.
         (b)  The board shall select depositories for the money.
         (c)  A warrant or check for the withdrawal of money must be
  signed by two persons authorized to sign a warrant or check by
  resolution entered in the board's minutes.
         Sec. 324A.062.  ADMINISTRATION. (a) The board may employ a
  manager and a secretary.
         (b)  The board shall determine the qualifications and set the
  duties of employees.
         (c)  The board may call on the county attorney, district
  attorney, or criminal district attorney of a county in which the
  district is located for legal services the board requires. The
  board may contract for and compensate the board's own legal staff.
         (d)  The district may maintain and operate an office.
         (e)  The board may acquire insurance for the district.
         Sec. 324A.063.  SEAL. The board shall adopt a seal to place
  on each lease, deed, or other instrument usually executed under
  seal and on other instruments as the board requires.
         Sec. 324A.064.  CONTRACTS. (a)  The board may enter into any
  contract that the board considers necessary or convenient to carry
  out the purposes and powers granted by this chapter.
         (b)  If the contract is for an amount less than or equal to
  the amount prescribed by Section 262.023, the board may enter into
  the contract without advertisement.  If the contract is for more
  than that amount, the contract is subject to the bidding provisions
  applicable to county contracts.
         (c)  To be effective, a contract must be:
               (1)  approved by board resolution;
               (2)  executed by the president or vice president; and
               (3)  attested by the secretary or treasurer.
         Sec. 324A.065.  SUITS. The board may sue and be sued in the
  board's own name.
         Sec. 324A.066.  DISTRICT RULES AND ORDINANCES; CRIMINAL
  PENALTY. (a) The board may adopt reasonable rules and ordinances
  applicable to:
               (1)  the administration, enforcement, and collection
  of district fees and the issuance, suspension, and cancellation of
  revenue permits;
               (2)  littering and litter abatement on public water in
  the district, including the possession and disposition of plastic
  and glass containers;
               (3)  activities that endanger the health and safety of
  persons or property on public water in the district, including the
  possession or consumption of alcohol by minors, subject to the
  public's paramount right to navigate inland water; and
               (4)  conservation of the district's natural resources
  and regulation of activities affecting the district's natural
  resources, including hunting, fishing, boating, camping, tubing,
  and swimming.
         (b)  A program adopted under this section may require a
  revenue permit holder to participate in a litter abatement program
  where the permit holder issues a trash bag to a customer.
         (c)  A person who violates a rule or ordinance adopted under
  this section commits an offense. An offense under this subsection
  is a Class C misdemeanor punishable by:
               (1)  a fine not to exceed $500 for a violation of a rule
  or ordinance not described by Subsection (a)(2); and
               (2)  a fine not to exceed $1,000 for a violation of a
  rule or ordinance described by Subsection (a)(2).
         Sec. 324A.067.  ENFORCEMENT. (a)  A police officer,
  constable, sheriff, or other law enforcement officer with
  jurisdiction in a county in which the district is located may arrest
  a person who violates a district rule or ordinance, including a
  revenue permit requirement, in the officer's, constable's, or
  sheriff's county and carry out the prosecution of that person in the
  proper court.
         (b)  The county attorney, district attorney, or criminal
  district attorney of a county in which the district is located, or
  an attorney retained by the board for this purpose, may bring an
  action to enjoin a violation of a district rule or ordinance, and if
  the board authorizes, may seek damages and attorney's fees based on
  the violation, if the violation involves:
               (1)  the providing or offering of a rental or service
  for which collection of a fee is required under Section 324A.092;
               (2)  the failure of a revenue permit holder to remit a
  fee imposed under Section 324A.092 if the fee has been due for more
  than 60 days; or
               (3)  the violation by a revenue permit holder of a
  district rule or ordinance relating to an activity that endangers
  the health or safety of a person or property in the district.
         Sec. 324A.068.  BOND. If the board brings an action to
  enforce this subchapter or enjoin a violation of a district rule or
  ordinance adopted under this subchapter, the board is not required
  to post a bond.
         Sec. 324A.069.  HEALTH AND SAFETY SERVICES. The district
  may provide for fire protection, law enforcement, or emergency
  medical services in the district.
         Sec. 324A.070.  WATER QUALITY. The district may conduct a
  program to improve water quality and sanitary conditions in the
  district.
         Sec. 324A.071.  GRANTS AND GRATUITIES. To promote or
  accomplish a purpose of this chapter, the board may:
               (1)  accept grants or gratuities in any form from any
  source, including the United States government, this state, a state
  or federal agency, a private or public corporation, or any other
  person; or
               (2)  accept donations of money or other property.
         Sec. 324A.072.  DISTRICT AS TRUSTEE.  To promote or
  accomplish a purpose of this chapter, the district may act as
  trustee of land, money, or other property.
         Sec. 324A.073.  MANAGEMENT PLAN; ANNUAL BUDGET; FILING. (a)
  The board shall develop and approve a three-year master plan for the
  management of the district.
         (b)  The board shall annually review and revise the master
  plan during the budget process and shall file a copy of the master
  plan and revisions with the county clerk of each county in which the
  district is located.
         (c)  The board shall annually develop and approve a one-year
  budget that must include the suggested revisions and additions to
  the master plan.
         (d)  The board shall submit the annual budget to the
  commissioners court of each county in which the district is located
  for approval and shall file a copy with the county clerk.
         Sec. 324A.074.  NO EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain.
  SUBCHAPTER E.  FEES; BONDS; FINANCIAL PROVISIONS
         Sec. 324A.091.  NO AD VALOREM TAXES. The district may not
  impose an ad valorem tax.
         Sec. 324A.092.  FEES FOR EQUIPMENT RENTALS AND SHUTTLE
  SERVICE; REVENUE PERMITS; CRIMINAL PENALTY. (a) The district may
  collect fees and issue revenue permits under this section in the
  district to carry out any purposes prescribed by this chapter and to
  pay the obligations and expenses of the district.
         (b)  The board by resolution may impose fees for the rental
  of water-oriented recreational equipment intended for use on a
  river in the district, including a canoe, tube, raft, boat, or
  kayak, or for the provision of shuttle service in, or into or out
  of, the district, including a service for river ingress and egress.
  The board may impose different fee rates for different types of
  rental equipment or services, except that a fee may not be imposed
  at a rate greater than $3 per person:
               (1)  for each rental of water-oriented recreational
  equipment; or
               (2)  if the person does not rent equipment described by
  Subdivision (1), for each person using shuttle service.
         (c)  A fee imposed under this section is payable by the
  purchaser or consumer of the item or service subject to the fee
  except that if the person responsible for collecting the fee does
  not comply with this chapter by collecting and remitting the fee to
  the district, the person responsible for collecting the fee is
  liable for the fee.
         (d)  A person who does not hold a revenue permit issued by the
  board commits an offense if the person provides or offers for
  compensation a rental or service if the price paid for the rental or
  service is subject to a fee under this section.  Each provision or
  offer for compensation of the rental or service is a separate
  offense. An offense under this subsection is a Class C misdemeanor,
  unless it is shown at the trial of the defendant that the defendant
  has previously been convicted of an offense under this subsection,
  in which case the offense is a Class B misdemeanor.
         (e)  A person who holds a revenue permit issued by the
  district shall collect the fees imposed under this section and
  shall report and remit the collected fees to the district as the
  district requires.
         (f)  If a revenue permit holder remits fees imposed under
  this section after the due date but on or before the 30th day after
  the due date, the revenue permit holder shall pay the district a
  penalty of five percent of the amount of fees due. If the revenue
  permit holder remits the fees after the 30th day after the due date,
  the revenue permit holder shall pay the district a penalty of 10
  percent of the amount of fees due.
         (g)  Delinquent fees and accrued penalties draw interest at
  the rate of 10 percent a year beginning on the 60th day after the
  date the fees imposed under this section were due.
         (h)  If a revenue permit holder does not collect and remit a
  fee imposed under this section, the board may suspend, revoke, or
  cancel the holder's revenue permit and pursue any other remedy the
  district may have to collect the fee under civil or criminal law.
         (i)  The board may settle a claim for a penalty or interest
  accrued on a fee imposed under this section if the board finds that
  the revenue permit holder exercised reasonable diligence to comply
  with this chapter.
         (j)  In the same manner that this section applies to a person
  who provides or offers a rental or service for compensation in the
  district, this section applies to a person who resides or does
  business outside the district but:
               (1)  provides or offers a rental or service for
  compensation in the district; and
               (2)  regularly transports customers into or out of the
  district for river or parking access.
         Sec. 324A.093.  FEE EXEMPTION. The district may not collect
  a fee on a transaction between a person and an interest operated in
  the district by:
               (1)  the United States;
               (2)  a state park; or
               (3)  a nonprofit youth-oriented organization.
         Sec. 324A.094.  REVENUE BOND ELECTION. (a) Revenue bonds
  may not be issued by the district until authorized by a majority
  vote of the district's voters voting at an election called and held
  for that purpose.
         (b)  Not later than two years after the date the district is
  declared created under Section 324A.024, the board may order a bond
  election. Regardless of the requirements of Section 324A.047(b),
  the order is not effective unless approved by the commissioners
  court of each county in which the district is located. Except as
  provided by this section, the election shall be held in the manner
  provided by the Election Code.
         (c)  At the election, the ballot must be printed to provide
  for voting for or against the issuance of revenue bonds.
         (d)  If a majority of the votes cast at the election favor the
  issuance of the bonds, the bonds may be issued by the board.  If a
  majority of the votes cast at the election do not favor issuance of
  the bonds, the bonds may not be issued.
         Sec. 324A.095.  REVENUE BONDS. (a) The district may issue
  not more than $300,000 in revenue bonds and may issue the bonds only
  to provide funds for the initial operation of the district.  The
  bonds must be approved at an election called under Section
  324A.094.
         (b)  The district may make the bonds payable out of any
  revenue of the district.
         (c)  The bonds must be:
               (1)  issued in the name of the district;
               (2)  signed by the county judge of each county in which
  the district is located; and
               (3)  attested by the county clerk and ex officio clerk
  of the commissioners court of each county in which the district is
  located.
         (d)  The seal of the commissioners court of each county in
  which the district is located must be impressed on the bonds.
         (e)  The bonds must mature serially or otherwise in not more
  than 40 years and may be sold at a price and under terms determined
  by the board to be the most advantageous reasonably obtainable.
         (f)  The resolution authorizing the issuance of the bonds may
  contain provisions for redemption of the bonds before their
  respective maturity dates at prices and times prescribed in the
  resolution. Except for rights of redemption expressly reserved in
  the resolution and in the revenue bonds, the bonds are not subject
  to redemption before maturity.
         (g)  The bonds may be made payable at times and at places,
  inside or outside the state, prescribed in the resolution.
         (h)  The bonds may be made registrable as to principal or as
  to both principal and interest.
         Sec. 324A.096.  BOND ANTICIPATION NOTES. (a) If funds are
  not available to pay the principal of or interest on bonds issued by
  the district or to pay other obligations of the district, the board
  may declare an emergency and may issue negotiable bond anticipation
  notes to borrow the money needed. The bond anticipation notes may
  bear interest at a rate that does not exceed the maximum rate
  provided by Chapter 1204, Government Code, and must mature within
  one year after their date of issuance.
         (b)  Bond anticipation notes may also be issued for any
  purpose for which bonds of the district have been voted or to refund
  previously issued bond anticipation notes.
         (c)  Bond anticipation notes issued under this section must
  be authorized by resolution of the board, subject to approval by the
  commissioners courts under Section 324A.047, and must be executed
  by the president of the board and attested by the secretary of the
  board.
         Sec. 324A.097.  REFUNDING BONDS. The district may issue
  refunding bonds under Chapter 1207, Government Code.
         Sec. 324A.098.  REPAYMENT OF BONDS THROUGH FEE REVENUE. (a)
  This section applies only to fees charged by the district while the
  district has outstanding bonds or interest.
         (b)  The board shall charge or require the payment of fees
  while the principal of or interest on district bonds is
  outstanding.
         (c)  The board shall set the fees in amounts that will yield
  revenues at least sufficient to pay district expenses, to comply
  with the covenants in the bond resolution, and to make payments
  prescribed by the bond resolution for debt service. "Debt
  service," as defined by the bond resolution, may include the
  payment of principal and interest as each matures, the
  establishment and maintenance of funds for extensions and
  improvements, an operating reserve, and an interest and sinking
  fund reserve.
         Sec. 324A.099.  FINANCIAL STATEMENT; BUDGET. (a) On or
  before February 1 of each year, the board shall prepare and file
  with the officer responsible for the county budget for each county
  in which the district is located a complete financial statement
  showing the financial status of the district and the district's
  properties, funds, and indebtedness.
         (b)  The financial statement must be prepared in accordance
  with standards adopted by the Governmental Accounting Standards
  Board and must show separately all information concerning:
               (1)  leases, promissory notes, and other indebtedness
  of the district; and
               (2)  fee revenue of the district.
         (c)  At the time the financial statement is filed, the board
  shall file with the commissioners court of each county in which the
  district is located a proposed budget of the board's needs for the
  next fiscal year. The proposed budget shall include items that:
               (1)  the board is unable to finance from the district's
  revenues; and
               (2)  the board requests purchase of with funds from
  that county.
         (d)  The officer responsible for the county budget for each
  county in which the district is located shall include the
  district's proposed budget on the calendar for the next regularly
  scheduled meeting of the commissioners court. As part of the
  county's tentative budget, the items certified by the board are
  subject to state law relating to county budgets.
         (e)  The county auditor of a county in which the district is
  located, after consultation with or notification to the county
  auditor of the other county in which the district is located, may
  conduct a general audit and issue a financial statement of the
  district at times the auditor considers appropriate.
         Sec. 324A.100.  DISPOSITION OF REVENUE. A district may use
  district fee revenue and other revenue for any purpose authorized
  by this chapter or other law for the benefit of the district.
  SUBCHAPTER F.  ANNEXATION; INCORPORATION; DISSOLUTION
         Sec. 324A.121.  ANNEXATION. (a) The voters of an area that
  is contiguous to a district and is in a county election precinct
  that borders the San Marcos River may file a petition with the board
  to annex the area to the district.
         (b)  The petition must contain an accurate description of the
  area proposed for annexation by reference to county election
  precinct boundaries, by metes and bounds, by lot and block number if
  there is a recorded map or plat and survey of the area, or by other
  sufficient legal description.
         (c)  The petition must be signed by at least one percent of
  the registered voters in the area proposed for annexation.
         (d)  The board shall give notice of a hearing on the petition
  and hold a hearing in the manner prescribed by Section 324A.022 for
  a commissioners court hearing.
         (e)  After holding the hearing, the board may by order annex
  the area only if the board finds that the annexation promotes the
  purposes for which the district was created.
         (f)  If the board annexes territory into the district located
  in a county other than the counties in which the district was
  located on the date of the district's creation, the commissioners
  court of the new county is not entitled to appoint members to the
  district's board, disapprove board actions, or otherwise
  participate in the governance of the district.
         Sec. 324A.122.  EFFECT OF INCORPORATION OR ANNEXATION. The
  incorporation of a political subdivision or the annexation of any
  part of a district by a political subdivision does not affect the
  district's boundaries.
         Sec. 324A.123.  DISANNEXATION. (a) The voters of or county
  commissioners for any area in a district may file a petition with
  the board to disannex the area from the district.
         (b)  The petition must contain an accurate description of the
  area proposed for disannexation by reference to county election
  precinct boundaries, by metes and bounds, by lot and block number if
  there is a recorded map or plat and survey of the area, or by other
  sufficient legal description.
         (c)  The petition must be signed by at least one percent of
  the registered voters in the area proposed for disannexation or by
  each county commissioner for the area proposed for disannexation.
         (d)  The board shall give notice of a hearing on the petition
  and hold a hearing in the manner prescribed by Section 324A.022 for
  a commissioners court hearing.
         (e)  The board may grant the petition and by order disannex
  the territory if the board finds that:
               (1)  the petition meets the requirements of this
  section;
               (2)  the district's projected revenue from all sources,
  except from the area proposed for disannexation, is sufficient to
  pay the district's outstanding debts; and
               (3)  the disannexation is in the district's best
  interests.
         (f)  Except as provided by Section 324A.125(d), if the Parks
  and Wildlife Department creates a state park that includes
  territory in the district, the board shall by order disannex the
  overlapping territory from the district.
         (g)  The disannexation takes effect on the date stated by the
  order or, if the order does not state a date, on the date the order
  is issued.
         Sec. 324A.124.  DISSOLUTION OF DISTRICT BY COMMISSIONERS
  COURTS. (a) The commissioners courts of each county in which the
  district is located by joint order may dissolve the district. The
  order may be adopted:
               (1)  on a motion by a commissioners court; or
               (2)  after the filing of a written petition with each
  county in which the district is located signed by a number of the
  registered voters who reside in the district equal to at least 10
  percent of the votes received in the district in the most recent
  gubernatorial general election.
         (b)  Each commissioners court that receives a petition shall
  give notice of a hearing on the petition or motion and hold a
  hearing in the manner prescribed by Section 324A.022.
         (c)  The commissioners courts shall jointly grant a petition
  and order the dissolution of the district if the courts find that
  the petition, if any, meets the requirements of this section and
  that the dissolution is in the best interests of the counties.
         Sec. 324A.125.  DISSOLUTION OF DISTRICT BY BOARD. (a)  The
  board may by order dissolve the district. The order may be adopted:
               (1)  on the board's own motion; or
               (2)  after the filing of a written petition signed by a
  number of the registered voters who reside in the district equal to
  at least 10 percent of the votes received in the district in the
  most recent gubernatorial general election.
         (b)  The board shall give notice of a hearing on the petition
  or motion and hold a hearing in the manner prescribed by Section
  324A.022 for a commissioners court hearing.
         (c)  After the hearing, the board shall order the dissolution
  of the district if the board finds that the petition, if any, meets
  the requirements of this section and that the dissolution is in the
  best interests of the counties in which the district is located.
         (d)  The board shall by order dissolve the district if the
  Parks and Wildlife Department creates a state park that includes:
               (1)  all of the district's territory located in one of
  the counties in which the district is located; or
               (2)  all of the district's territory.
         Sec. 324A.126.  DISPOSITION OR TRANSFER OF DISTRICT ASSETS
  AND DEBTS. (a) If the district is dissolved, the board shall:
               (1)  transfer the assets of the district to both of the
  counties in which the district is located; or
               (2)  administer the assets and debts until all money
  has been disposed of and all district debts have been paid or
  settled.
         (b)  If the district makes the transfer under Subsection
  (a)(1), the receiving counties assume the debts and obligations of
  the district at the time of the transfer, and the district is
  dissolved.
         (c)  If Subsection (a)(1) does not apply and the board
  administers the assets and debts of the district under Subsection
  (a)(2), the district is dissolved when all money has been disposed
  of and all district debts have been paid or settled.
  SUBCHAPTER Z.  MISCELLANEOUS PROVISIONS
         Sec. 324A.901.  REQUIREMENTS FOR RENTAL OF WATER-ORIENTED
  RECREATIONAL EQUIPMENT. (a) This section applies only to the
  rental of water-oriented recreational equipment in a district.
         (b)  A person may rent water-oriented recreational equipment
  only if each person who will use the equipment is listed on a
  written agreement for the rental of that equipment.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.