TLC: Special Districts Local Laws Code Proposed Chapters

CHAPTER 3829. LAKE VIEW MANAGEMENT AND DEVELOPMENT DISTRICT

IN HENDERSON COUNTY

SUBCHAPTER A. GENERAL PROVISIONS

Revised Law

Sec. 3829.001. DEFINITIONS. In this chapter:

(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 3829.102, inside or outside the boundaries of the district. (Acts 78th Leg., R.S., Ch. 1292, Sec. 2.)

Source Law

Sec. 2. 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.

Revised Law

Sec. 3829.002. CREATION AND NATURE OF DISTRICT. (a) The Lake View Management and Development District is a special district created 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 governmental unit 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. (Acts 78th Leg., R.S., Ch. 1292, Sec. 1.)

Source Law

Sec. 1. (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.

Revised Law

Sec. 3829.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter.

(b) All 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 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter.

(1) is essential to the conservation and beneficial use of the water, land, including soil, and other natural resources in or adjacent to the district;

(2) is essential to further the public purposes of:

(A) economic development and diversification of the state;

(B) elimination of unemployment and underemployment; and

(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.

(d) 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.

(e) The district will promote the health, safety, welfare, education, convenience, and enjoyment of the public by:

(1) improving, landscaping, and developing certain areas in and adjacent to the district; and

(2) providing public services and facilities in and adjacent to the district that are necessary for the restoration, preservation, enhancement, and enjoyment of scenic beauty. (Acts 78th Leg., R.S., Ch. 1292, Sec. 5.)

Source Law

Sec. 5. (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.

Revised Law

Sec. 3829.004. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 3, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, as that territory may have been modified under:

(1) Section 3829.105 or its predecessor statute, former Section 18, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003; or

(2) other law.

(b) 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. (Acts 78th Leg., R.S., Ch. 1292, Sec. 4; New.)

Source Law

Sec. 4. 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.

Revisor's Note

The revision of the law governing the district does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description and because that description may not be accurate on the effective date of the revision or at the time of a later reading. For the reader's convenience, the revised law includes a reference to the statutory description of the district's territory and references to statutory authority to change the district's territory under Section 18, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003 (revised in this chapter as Section 3829.105). The revised law also includes a reference to the general authority of the legislature to enact other laws to change the district's territory.

Revised Law

Sec. 3829.005. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be construed liberally in conformity with the findings and purposes stated in this chapter. (Acts 78th Leg., R.S., Ch. 1292, Sec. 6(a).)

Source Law

Sec. 6. (a) This Act shall be liberally construed in conformity with the findings and purposes stated in this Act.

Revisor's Note

Section 6(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that the Code Construction Act (Chapter 311, Government Code) applies to the act. The revised law omits that provision because it duplicates Section 311.002, Government Code (Code Construction Act), applicable to the revised law. The omitted law reads:

(b) Chapter 311, Government Code, applies to this Act.

Revisor's Note

(End of Subchapter)

Section 7(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that the act prevails over general law in case of a conflict. The revised law omits that provision because it duplicates Section 311.026, Government Code (Code Construction Act), applicable to the revised law. The omitted law reads:

(b) A provision of this Act prevails over a provision of the general law that is in conflict or inconsistent with this Act.

[Sections 3829.006-3829.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Revised Law

Sec. 3829.051. COMPOSITION; TERMS. (a) The district is governed by a board of five directors who serve staggered terms of four years.

(b) The board shall hold an election on the uniform election day in February of each even-numbered year to elect the appropriate number of directors.

(c) The board shall hold the first election under this section in 2010. This subsection expires September 1, 2012. (Acts 78th Leg., R.S., Ch. 1292, Secs. 8(a) (part), (d) (part).)

Source Law

(a) … the district is governed by a board of five directors who serve staggered terms of four years.

(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 … .

Revised Law

Sec. 3829.052. ELIGIBILITY. 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. (Acts 78th Leg., R.S., Ch. 1292, Sec. 8(e) (part).)

Source Law

(e) … 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.

Revised Law

Sec. 3829.053. VACANCY. The remaining directors shall fill a vacancy on the board by appointing a person who meets the qualifications prescribed by Section 3829.052. (Acts 78th Leg., R.S., Ch. 1292, Sec. 9.)

Source Law

Sec. 9. 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.

Revised Law

Sec. 3829.054. DIRECTOR'S BOND; OATH OR AFFIRMATION. (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.

(b) The bond must be approved by the board.

(c) The bond and constitutional oath or affirmation of office shall be filed with the district and the district shall retain the bond and oath or affirmation in the district records.

(d) The district shall pay the cost of the bond. (Acts 78th Leg., R.S., Ch. 1292, Secs. 10(a), (c), (d).)

Source Law

Sec. 10. (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.

(d) The district shall pay the cost of a bond executed under Subsection (a) of this section.

Revisor's Note

Section 10(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, requires each member of the board to take the constitutional oath of office. The revised law omits this provision as unnecessary because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath or affirmation before assuming office. In addition, the revised law includes a reference to an "affirmation" of office because Section 1, Article XVI, Texas Constitution, refers to an oath or affirmation. The revised law is drafted to conform to the constitutional requirement. The omitted law reads as follows:

(b) Each director shall take the oath of office prescribed by the constitution for public office.

Revised Law

Sec. 3829.055. OFFICERS. The board shall elect from among the directors a presiding officer, a vice presiding officer, and a secretary. (Acts 78th Leg., R.S., Ch. 1292, Sec. 11.)

Source Law

Sec. 11. The board shall elect a chair, a vice chair, and a secretary from its members.

Revisor's Note

Section 11, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, refers to the "chair" and "vice chair" of the district board. The revised law substitutes "presiding officer" and "vice presiding officer" for those terms because, in context, the terms have the same meaning and "presiding officer" and "vice presiding officer" are more commonly used.

Revised Law

Sec. 3829.056. COMPENSATION. A director is not entitled to compensation for service on the board but is entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of a director. (Acts 78th Leg., R.S., Ch. 1292, Sec. 12.)

Source Law

Sec. 12. 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.

Revised Law

Sec. 3829.057. INITIAL DIRECTORS. (a) 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

(b) 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.

(c) The board shall hold an election in 2010 and 2012 in accordance with Section 3829.051(b) to elect directors to fill the positions the terms of which expire on March 1 of those years.

(d) Sections 3829.051(a) and 3829.052 do not apply to initial directors.

(e) This section expires September 1, 2012. (Acts 78th Leg., R.S., Ch. 1292, Secs. 8(a) (part), (b), (c), (d), (e) (part).)

Source Law

Sec. 8. (a) Except as provided by Subsections (b) and (c) of this section, … .

(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, … .

Revised Law

Sec. 3829.058. 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 to confirm the establishment of the district shall be called and held 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 subsequent elections, 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 business as the board may determine except that the district may not borrow money or impose or assess a tax or an assessment. (Acts 78th Leg., R.S., Ch. 1292, Sec. 14.)

Source Law

Sec. 14. (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.

Revisor's Note

Section 14(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, allows the board to call a subsequent district confirmation "on a uniform election date" if the district is not created at a district confirmation election. The revised law omits the quoted language because it duplicates Section 41.001, Election Code, which requires all elections to be held on a uniform election date.

Revisor's Note

(End of Subchapter)

(1) Section 13, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that three members of the board, which is a majority of the full membership of the board, constitute a quorum. The revised law omits that provision as duplicative of general law. Section 311.013, Government Code (Code Construction Act), applicable to the revised law, provides that a majority of a board or commission constitutes a quorum. Additionally, Section 49.053, Water Code, applicable to the district under Sections 49.001(1) and 49.002, Water Code, provides that a majority of a board constitutes a quorum. The omitted law reads:

Sec. 13. Three directors are a quorum… .

(2) Section 13, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that, when a quorum is present, a concurrence of a majority of those present is required to take an official action of the district. The revised law omits the provision as unnecessary because, under common law, the majority of the members of a body present at a meeting may act for the body if at least a quorum is present. The omitted law reads:

Sec. 13. … A concurrence of a majority of a quorum of the board shall be required for any official action of the district.

[Sections 3829.059-3829.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 3829.101. GENERAL POWERS AND DUTIES. The district has the powers and duties provided by:

(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 372, Local Government Code, in the same manner as a municipality or a county;

(4) Chapter 375, Local Government Code; and

(5) Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes). (Acts 78th Leg., R.S., Ch. 1292, Sec. 7(a).)

Source Law

Sec. 7. (a) The district has all of the powers and duties provided by the following:

(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 372, Local Government Code, in the same manner as a municipality or a county;

(4) Chapter 375, Local Government Code; and

(5) Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes).

Revised Law

Sec. 3829.102. 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) a retail or wholesale water treatment, supply, and distribution facility or system to provide potable and nonpotable water to the residents and businesses of the district, including a wastewater and sewerage collection and treatment facility or system, provided that treated effluent water resulting from a sewerage treatment facility operated by or in the district may be used by the district for irrigation in the district;

(2) septic tank maintenance services inside or outside the district and solid waste disposal services if the board determines the action to be necessary and appropriate to protect the district;

(3) a macadamized, graveled, or paved road, street, or turnpike, 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 improvement;

(D) a street or sidewalk;

(E) a hiking and cycling path or trail;

(F) a pedestrian walkway, skywalk, crosswalk, or tunnel;

(G) a park, lake, garden, recreational facility, sports facility, open space, scenic area, or related exhibit or preserve;

(H) a fountain, plaza, or pedestrian mall; or

(I) a drainage or storm-water detention improvement;

(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) a solid waste, water, sewer, or power facility or service, including an electrical, gas, steam, or chilled water facility; or

(B) an off-street parking facility or heliport;

(7) the planning and acquisition of:

(A) public art and sculpture and related exhibits and facilities; or

(B) an educational and cultural exhibit or facility;

(8) the planning, design, construction, acquisition, lease, rental, improvement, maintenance, installation, and management of and provision of furnishings for a facility for:

(A) a conference, convention, or exhibition;

(B) a manufacturer, consumer, or trade show;

(D) an exhibit, display, attraction, special event, or seasonal or cultural celebration or holiday;

(9) the removal, razing, demolition, or clearing of land or improvements in connection with an improvement project;

(10) the acquisition and improvement of land or other property for the mitigation of the environmental effects of an improvement project;

(11) the acquisition of property or an interest in property in connection with an authorized improvement project;

(12) a special or supplemental service for the improvement and promotion of the district or an area adjacent to the district or for the protection of public health and safety in or adjacent to the district, including:

(A) advertising;

(B) promotion;

(D) health and sanitation;

(E) public safety;

(F) security;

(G) fire protection or emergency medical services;

(H) business recruitment;

(I) development;

(J) elimination of traffic congestion; and

(K) recreational, educational, or cultural improvements, enhancements, and services; or

(13) any similar public improvement, facility, or service. (Acts 78th Leg., R.S., Ch. 1292, Sec. 15.)

Source Law

Sec. 15. 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;

(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;

(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, 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.

Revised Law

Sec. 3829.103. GENERAL POWERS REGARDING CONTRACTS. (a) The district may:

(1) enter into a contract with any person to accomplish 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; and

(2) apply for and contract with any person to receive, administer, and perform a duty or obligation of the district under a federal, state, local, or private gift, grant, loan, conveyance, transfer, bequest, 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.

(b) A contract the district enters into to carry out a purpose of this chapter may be on any terms and for any period the board determines.

(c) Any person may contract with the district to carry out the purposes of this chapter without further statutory or other authorization. (Acts 78th Leg., R.S., Ch. 1292, Secs. 16(a) (part), (b), (c).)

Source Law

(a) The district may:

…

(6) enter into a contract with any person for the accomplishment of any district purpose, including a contract for:

(B) the use, occupancy, lease, rental, operation, maintenance, or management of all or part of a proposed or existing improvement project;

(7) 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;

…

(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.

Revisor's Note

(1) Section 16(a)(7), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, refers to a "gift" or "donation" given to the district. The revised law omits "donation" because "donation" is included in the meaning of "gift."

(2) Section 16(c), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, allows a "state agency, a municipality, Henderson County, any other political subdivision, a corporation, an individual, or any other entity" to contract with the district. The revised law substitutes "person" for the quoted language because the terms in the quoted language are included in the definition of "person" under Section 311.005, Government Code (Code Construction Act). That definition applies to the revised law.

Revised Law

Sec. 3829.104. 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. (Acts 78th Leg., R.S., Ch. 1292, Sec. 17.)

Source Law

Sec. 17. 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.

Revised Law

Sec. 3829.105. 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, wholly or partly, from ad valorem taxes are outstanding. (Acts 78th Leg., R.S., Ch. 1292, Sec. 18.)

Source Law

Sec. 18. 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.

Revised Law

Sec. 3829.106. EMINENT DOMAIN. (a) The district may exercise the power of eminent domain inside district boundaries for any public purpose.

(b) The district may exercise the power of eminent domain outside district boundaries only to construct, acquire, operate, repair, or maintain a water supply line or sanitary sewer line.

(c) The district's power of eminent domain must be exercised in the manner provided by Chapter 21, Property Code. (Acts 78th Leg., R.S., Ch. 1292, Sec. 19.)

Source Law

Sec. 19. (a) Within the boundaries of the district, the district may exercise the power of eminent domain for all public purposes.

(b) Outside the boundaries of the district, the district may exercise the power of eminent domain only for the purpose of constructing, acquiring, operating, repairing, or maintaining water supply lines or sanitary sewer lines.

Revisor's Note

Section 19(c), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that the district must exercise the power of eminent domain "in the same manner as required for a county." The revised law substitutes a reference to Chapter 21, Property Code, for the quoted language because it is the general law governing eminent domain and applies to all political subdivisions that have eminent domain authority, including counties.

Revised Law

Sec. 3829.107. NONPROFIT CORPORATION. (a) The board by resolution may authorize the incorporation of a nonprofit corporation to assist and act for the district in implementing an improvement project or providing a service authorized by this chapter.

(b) The nonprofit corporation:

(1) has each power of and is considered for purposes of this chapter to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code; and

(2) may implement any improvement project and provide any service authorized by this chapter and approved by the board.

(c) The board shall appoint the board of directors of the nonprofit corporation. The board of directors of the nonprofit corporation shall serve in the same manner, for the same term, and on the same conditions as a board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code. (Acts 78th Leg., R.S., Ch. 1292, Sec. 20.)

Source Law

Sec. 20. (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.

(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.

Revised Law

Sec. 3829.108. ECONOMIC DEVELOPMENT. The district may create economic development programs and exercise the economic development powers that:

(1) Chapter 380, Local Government Code, provides to a municipality with a population of more than 100,000; and

(2) Chapter 1509, Government Code, provides to any municipality. (Acts 78th Leg., R.S., Ch. 1292, Sec. 21.)

Source Law

Sec. 21. 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.

Revisor's Note

Section 21, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, refers to the district's economic development "powers and authority." The revised law omits "authority" because "authority" is included in the meaning of "powers."

Revised Law

Sec. 3829.109. 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 district employees the board considers necessary. (Acts 78th Leg., R.S., Ch. 1292, Sec. 22.)

Source Law

Sec. 22. 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.

Revised Law

Sec. 3829.110. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF THE DISTRICT. (a) The board by rule may regulate the private use of a public roadway, open space, park, sidewalk, or similar public area in the district. To the extent the district rules conflict with a rule, order, or regulation of Henderson County or the Tarrant Regional Water District, the rule, order, or regulation of the county or Tarrant Regional Water District controls. A rule 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 similar nongovernmental activity in or on a public roadway, open space, park, sidewalk, or similar public area or facility. The board may charge a fee for the permit application or 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 facility on terms and on payment of a permit or franchise fee the board may impose. (Acts 78th Leg., R.S., Ch. 1292, Sec. 23.)

Source Law

Sec. 23. (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 or the Tarrant Regional Water District, the rule, order, or regulation of the county or Tarrant Regional Water District 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.

Revised Law

Sec. 3829.111. ZONING BY COUNTY. (a) If requested by the district to exercise zoning powers, Henderson County may exercise, solely in the district boundaries, the zoning powers granted to counties in Subchapter E, Chapter 231, Local Government Code, without holding the election required by Section 231.075 of that code.

(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.

(c) This section does not apply to land or facilities owned by the Tarrant Regional Water District. (Acts 78th Leg., R.S., Ch. 1292, Sec. 24.)

Source Law

Sec. 24. (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.

[Sections 3829.112-3829.150 reserved for expansion]

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Revised Law

Sec. 3829.151. GENERAL POWERS REGARDING FINANCIAL MATTERS. The district may:

(1) impose an ad valorem tax in accordance with Chapter 375, Local Government Code, on all taxable property in the district;

(2) impose an assessment or impact fee in the manner provided for a municipality or county under Chapter 372, Local Government Code, on all industrial, commercial, and residential property in the district;

(3) impose and apply the proceeds from a sales and use tax, and a hotel occupancy tax, as authorized by this chapter;

(4) impose a rate, fee, or charge for the use of an improvement project or the consumption of a product resulting from an improvement project;

(5) borrow money for a district purpose by issuing or executing bonds, notes, credit agreements, or other obligations of any kind found by the board to be necessary or appropriate for the district purpose;

(6) establish, revise, repeal, enforce, collect, and apply the proceeds from a user fee or charge for the enjoyment, sale, rental, or other use of a district facility, service, property, or improvement project;

(7) 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;

(8) 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;

(9) 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

(10) enter into a tax abatement agreement in accordance with the general laws of this state authorizing and applicable to tax abatement agreements by municipalities. (Acts 78th Leg., R.S., Ch. 1292, Sec. 16(a) (part).)

Source Law

Sec. 16. (a) The district may:

(1) impose an ad valorem tax in accordance with Chapter 375, Local Government Code, on all taxable property in the district;

(3) impose, assess, and apply the proceeds from a limited sales and use tax, and a hotel occupancy tax, as authorized by this Act;

(4) impose rates, fees, and charges for the use of any improvement project or the consumption of a product resulting from an improvement project;

(5) 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; …

(8) 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;

(9) 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;

(10) 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;

(11) 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

(12) enter into tax abatement agreements in accordance with the general laws of the state authorizing and applicable to tax abatement agreements by municipalities.

Revisor's Note

Section 16(a)(3), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, authorizes the district to "impose" and "assess" certain taxes. Other provisions revised in this chapter refer to the "imposition," "assessment," and "collection" of taxes and the authority of the district to "impose" and "collect" taxes. Throughout this chapter, the revised law omits "assess," "assessment," "collect," and "collection" when used with "impose" or "imposition" because "impose" includes the assessment and collection of a tax and is more commonly used.

Revised Law

Sec. 3829.152. IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a) The district may impose an impact fee or assessment, including an impact fee or assessment on residential property, only in the manner provided by Chapter 372, Local Government Code, for a municipality, county, or public improvement district, according to the benefit received by the property.

(b) An impact fee for residential property must be for the limited purpose of providing capital funding for:

(1) public water and wastewater facilities;

(2) drainage and storm-water facilities; and

(3) streets and alleys.

(c) The district may not impose an impact fee or assessment on the property, including equipment and facilities, of a public utility provider or a cable operator as defined by 47 U.S.C. Section 522, as amended. (Acts 78th Leg., R.S., Ch. 1292, Sec. 25.)

Source Law

Sec. 25. (a) The district may only impose impact fees and assessments in the manner provided by Chapter 372, Local Government Code, for a municipality, county, or public improvement district, 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, 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 or a cable operator as defined by 47 U.S.C. Section 522, as amended.

Revised Law

Sec. 3829.153. MAINTENANCE AND OPERATION TAX; ELECTION. (a) The district may impose a tax for maintenance and operation purposes, including for funds for:

(1) planning, constructing, acquiring, maintaining, repairing, and operating all necessary land, plants, works, facilities, improvements, appliances, and equipment of the district; and

(2) paying costs of services, engineering and legal fees, and organization and administrative expenses.

(b) The district may not impose a maintenance and operation tax unless the tax is approved by a majority of the voters voting at an election held for that purpose. If the tax is approved, the board may have the tax assessed and collected in the same manner as other district ad valorem taxes.

(c) A maintenance and operation 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 a maintenance and operation tax election may be for a specific maximum rate or for an unlimited rate. (Acts 78th Leg., R.S., Ch. 1292, Secs. 26(a)-(d).)

Source Law

Sec 26. (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.

Revisor's Note

(1) Section 26(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, authorizes the imposition of a maintenance and operation tax if the tax is approved by "qualified voters" in the district. The revised law omits "qualified voters" because Chapter 11, Election Code, governs eligibility to vote in an election in this state and allows only votes cast by "qualified voters" who are residents of the territory covered by the election to vote in an election.

(2) Section 26(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, permits the board to assess and collect a maintenance and operation tax "in the same manner as other district taxes." The revised law specifies that the maintenance and operation tax may be assessed and collected in the same manner as other district ad valorem taxes rather than as for all other district taxes because, in the context of this section on maintenance and operation taxes, it is clear that the legislature did not intend to allow the district to assess and collect that tax in the same manner as all other district taxes, such as the sales and use tax and the hotel occupancy tax. Instead, a maintenance and operation tax is a type of ad valorem tax, governed by Title 1, Tax Code (property tax code).

Revised Law

Sec. 3829.154. USE OF SURPLUS MAINTENANCE AND OPERATION MONEY. If the district has surplus maintenance and operation tax money that is not needed for the purposes for which it was collected, the money may be used for any authorized purpose. (Acts 78th Leg., R.S., Ch. 1292, Sec. 26(e).)

Source Law

(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.

Revised Law

Sec. 3829.155. 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 chapter.

(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 chapter and from any other district revenues. (Acts 78th Leg., R.S., Ch. 1292, Sec. 31.)

Source Law

Sec. 31. (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.

Revised Law

Sec. 3829.156. TAXES FOR BONDS AND OTHER OBLIGATIONS. (a) At the time bonds or other obligations payable wholly or partly 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 that all or part of the bonds are outstanding; and

(2) the district annually shall impose 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 the interest 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

(b) Bonds or other obligations that are secured by and payable from 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 hold an election required by this section in the manner provided by Subchapter L, Chapter 375, Local Government Code. (Acts 78th Leg., R.S., Ch. 1292, Sec. 27.)

Source Law

Sec. 27. (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) The district shall conduct an election required by this section in the manner provided by Subchapter L, Chapter 375, Local Government Code.

Revised Law

Sec. 3829.157. INAPPLICABILITY OF CERTAIN TAX CODE PROVISIONS. Sections 26.04, 26.05, and 26.07, Tax Code, do not apply to a tax imposed under Section 3829.153 or 3829.156. (Acts 78th Leg., R.S., Ch. 1292, Sec. 26(f).)

Source Law

(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.

Revised Law

Sec. 3829.158. HOTEL OCCUPANCY TAX. (a) In this section, "hotel" has the meaning assigned by Section 156.001, Tax Code.

(b) 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.

(c) Except as inconsistent with this section, Subchapter A, Chapter 352, Tax Code, governs a hotel occupancy tax authorized by this section, including the collection of the tax, subject to the limitations prescribed by Sections 352.002(b) and (c), Tax Code.

(d) The board by order may impose, repeal, 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 the use or possession of a room that:

(1) is in a hotel located in the district's boundaries;

(2) costs $2 or more each day; and

(3) is ordinarily used for sleeping.

(e) The amount of the tax may not exceed seven percent of the price paid for a room in a hotel.

(f) The district may examine and receive information related to the imposition of hotel occupancy taxes to the same extent as if the district were a municipality. (Acts 78th Leg., R.S., Ch. 1292, Sec. 29.)

Source Law

Sec. 29. (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.

Revised Law

Sec. 3829.159. USE OF HOTEL OCCUPANCY TAX. (a) The district may use the proceeds from a hotel occupancy tax imposed under Section 3829.158 for any of the district's purposes and for the purposes described by Section 352.1015, Tax Code, to the extent the board considers appropriate.

(b) During each interval of three calendar years following the date on which a hotel occupancy tax imposed under Section 3829.158 is initially collected, the board may not apply an annual average of more than 10 percent of the amount of tax collected under that section, 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

(A) conferences, conventions, and exhibitions;

(B) manufacturer, consumer, or trade shows; and

(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. (Acts 78th Leg., R.S., Ch. 1292, Sec. 30.)

Source Law

Sec. 30. (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.

[Sections 3829.160-3829.200 reserved for expansion]

SUBCHAPTER E. SALES AND USE TAX

Revised Law

Sec. 3829.201. MEANINGS OF WORDS AND PHRASES. Words and phrases used in this subchapter that are defined by Chapters 151 and 321, Tax Code, have the meanings assigned by Chapters 151 and 321, Tax Code. (Acts 78th Leg., R.S., Ch. 1292, Sec. 28(a).)

Source Law

Sec. 28. (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.

Revised Law

Sec. 3829.202. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS. (a) Except as otherwise provided by this subchapter, Subtitles A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to taxes imposed under this subchapter and to the administration and enforcement of those taxes in the same manner that those laws apply to state taxes.

(b) The provisions of Subchapters C, D, E, and F, Chapter 323, Tax Code, relating to county sales and use taxes apply to the application, collection, and administration of a sales and use tax imposed under this subchapter to the extent consistent with this chapter, 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.

(c) Sections 323.401-323.404 and 323.505, Tax Code, do not apply to a tax imposed under this subchapter. (Acts 78th Leg., R.S., Ch. 1292, Secs. 28(b), (d).)

Source Law

(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.

(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.

Revisor's Note

Section 28(b), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that Subtitles A and B of Title 2, Tax Code, "apply to the taxes and to the administration and enforcement of the taxes imposed by the district … ." The revised law limits the applicability of the provision only to the sales and use taxes imposed under Subchapter E because the provision appears in a section applicable only to sales and use taxes and, in context, it is clear that the legislature did not intend the statement to apply to all taxes imposed by the district.

Revised Law

Sec. 3829.203. AUTHORIZATION; ELECTION. (a) The district may adopt, reduce, or repeal the sales and use tax authorized by this subchapter at an election in which a majority of the voters of the district voting in the election approve the adoption, reduction, or repeal of the tax, as applicable.

(b) The board by order may call an election to adopt, reduce, or repeal a sales and use tax. The election must be held on the next available uniform election date that occurs at least 45 days after the date the order calling the election was passed.

(c) The district shall provide notice of the election and shall hold the election in the manner prescribed by Chapter 54, Water Code, for bond elections for municipal utility districts.

(d) The ballots shall be printed to provide for voting for or against the following appropriate proposition:

(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) "Repeal of the district sales and use tax within the district." (Acts 78th Leg., R.S., Ch. 1292, Secs. 28(c), (g).)

Source Law

(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.

(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."

Revisor's Note

(1) Section 28(c), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, allows a district to "adopt, reduce, or repeal" a sales and use tax if a majority of voters in the district "approve the adoption or the abolition of the tax." The revised law substitutes "repeal" for "abolition" for consistency within the subsection and for consistency with other subsections in the section. In addition, the revised law adds the term "reduction" to the quoted phrase for consistency with preceding language in the subsection and because the authority to call an election to reduce the amount of the tax is implied by Section 28(g), which lists the requirements for such an election.

(2) Section 28(g), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, refers to an election to "authorize, reduce, or repeal" a sales and use tax. The revised law substitutes "adopt" for "authorize" for consistency within the subsection and for consistency with other subsections in the section. Similarly, the revised law substitutes "[r]epeal" for "[a]bolition" in the ballot language requirements for the reason provided in Revisor's Note (1).

(3) Section 28(g), Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, requires the district to "hold and conduct" an election in a certain manner. The revised law omits "conduct" because in the context of the revised law the term is included in the meaning of "hold."

Revised Law

Sec. 3829.204. EFFECTIVE DATE OF TAX. A tax imposed under this subchapter or the repeal or reduction of a tax under this subchapter takes effect on the first day of the calendar quarter that occurs after the date the comptroller receives the copy of the resolution as required by Section 323.405(b), Tax Code. (Acts 78th Leg., R.S., Ch. 1292, Secs. 28(e), (i).)

Source Law

(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.

(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.

Revised Law

Sec. 3829.205. SALES AND USE TAX RATE. (a) On adoption of the tax authorized by this subchapter, 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.

(b) 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. (Acts 78th Leg., R.S., Ch. 1292, Sec. 28(f).)

Source Law

(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.

Revised Law

Sec. 3829.206. EFFECT OF ANNEXATION OR EXCLUSION OF TERRITORY. (a) If all or part of the district territory 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 of 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.

(b) 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 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. (Acts 78th Leg., R.S., Ch. 1292, Secs. 28(h), (j).)

Source Law

(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.

(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.

Revised Law

Sec. 3829.207. EXAMINATION AND RECEIPT OF INFORMATION. The district may examine and receive information related to the imposition of a sales and use tax to the same extent as if the district were a municipality. (Acts 78th Leg., R.S., Ch. 1292, Sec. 28(k).)

Source Law

(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.

[Sections 3829.208-3829.250 reserved for expansion]

SUBCHAPTER F. DISSOLUTION OF DISTRICT

Revised Law

Sec. 3829.251. 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; 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 district property and assets to Henderson County. (Acts 78th Leg., R.S., Ch. 1292, Sec. 32.)

Source Law

Sec. 32. (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.

Revisor's Note

Section 32, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, provides that the board of the district may dissolve the district "by majority vote." The revised law omits the quoted language because it duplicates general law. Section 311.013, Government Code (Code Construction Act), provides that authority given jointly to three or more persons as a public body may be executed by a majority of them. That provision applies to the board of directors of the district.

Revisor's Note

(End of Chapter)

Section 33, Chapter 1292, Acts of the 78th Legislature, Regular Session, 2003, recites legislative findings regarding procedural requirements for the creation of the district under the constitution and other laws and rules, including proper legal notice, filing of recommendations, and consent by other governmental entities to the creation of the district. The revised law omits these provisions as executed. The omitted law reads:

Sec. 33. 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.


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