CHAPTER 383. COUNTY DEVELOPMENT DISTRICTS
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE B. COUNTY PLANNING AND DEVELOPMENT
CHAPTER 383. COUNTY DEVELOPMENT DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 383.001. SHORT TITLE. This chapter may be cited as the
County Development District Act.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.601 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.002. LEGISLATIVE INTENT. This chapter furthers the
public purpose of developing and diversifying the economy of this
state by providing incentives for the location and development of
projects in certain counties to attract visitors and tourists.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.602 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.003. FINDINGS. (a) Small and medium-sized counties in
this state need incentives for the development of public
improvements to attract visitors and tourists to those counties,
and those counties are at a disadvantage in competing with
counties in other states for the location and development of
projects that attract visitors by virtue of the availability and
prevalent use of financial incentives in other states.
(b) The means and measures authorized by this chapter are in the
public interest and serve a public purpose of this state in
promoting the economic welfare of the residents of this state by
providing incentives for the location and development in certain
counties of this state of projects that attract visitors and
tourists and that result in employment and economic activity.
(c) The creation of development districts is essential to the
accomplishment of Section 52-a, Article III, Texas Constitution,
and to the accomplishment of the other public purposes stated in
this chapter and further serves the purpose of Section 59,
Article XVI, and Section 52, Article III, Texas Constitution.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.603 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.004. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "Bonds" includes notes and other obligations.
(3) "Commissioners court" means the governing body of the
county.
(4) "Cost" has the meaning assigned by Section 501.152.
(5) "County" means the county in which the district is located.
(6) "Director" means a member of the board.
(7) "District" means a county development district created under
this chapter.
(8) "Project" has the meaning assigned by Sections
505.151-505.156.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.604 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.27, eff. April 1, 2009.
Sec. 383.005. GOVERNMENTAL AGENCY; TORT CLAIMS. A district is a
governmental agency, a body politic and corporate, and a
political subdivision of the state. Section 375.004 applies to a
district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.627(b) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
SUBCHAPTER B. CREATION OF DISTRICT; TEMPORARY BOARD
Sec. 383.021. COUNTIES AUTHORIZED TO CREATE DISTRICTS. (a) The
commissioners court of a county with a population of 400,000 or
less, on petition of the owners of land in a proposed district,
may commence the creation of a county development district.
(b) The creation of the district is subject to a confirmation
election held as provided by this chapter.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.605 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.022. PETITION OF LANDOWNERS. To create a district, a
petition requesting creation must be filed with the commissioners
court of the county in which all of the land in the proposed
district is located. The petition must be accompanied by a sworn
statement indicating consent to creation signed by the holders of
fee simple title of all of the land in the proposed district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.6055 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.023. CONTENTS OF PETITION. The petition must:
(1) describe the boundaries of the proposed district by metes
and bounds or by lot and block number, if there is a recorded map
or plat and survey of the area;
(2) include a name for the proposed district, which must include
the name of the county followed by the words "Development
District No.______";
(3) include the names of five persons who are willing and
qualified to serve as temporary directors of the proposed
district;
(4) state the general nature of the work proposed to be done and
the cost of the project as then estimated by the petitioners; and
(5) state the necessity and feasibility of the proposed district
and whether the district will serve the public purpose of
attracting visitors and tourists to the county.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.606 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.024. COMMISSION HEARING; CONTENTS OF NOTICE. Before
the 61st day after the date a petition is received, the
commissioners court shall set a date, time, and place at which
the petition shall be heard and shall issue notice of the date,
time, place, and subject matter of the hearing. The notice shall
inform all persons of their right to appear and present evidence
and testify for or against the creation of the district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.607 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.025. NOTICE OF HEARING. Before the 30th day before the
date set for the hearing, notice of the hearing shall be mailed
to the developer who signed the petition and the landowners of
all the land in the district and shall be published in a
newspaper with general circulation in the county in which the
proposed district is located.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.608 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.026. HEARING. At the hearing, the commissioners court
shall examine the petition to ascertain its sufficiency, and any
interested person may appear before the commissioners court to
offer testimony on the sufficiency of the petition and whether
the district should be created.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.609 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.027. GRANTING OR REFUSING PETITION. (a) After the
hearing, if the commissioners court finds that the petition
conforms to the requirements of Section 383.022 and that the
creation of the district and the proposed project is feasible and
necessary and would serve the public purpose of attracting
visitors or tourists to the county, the commissioners court may
make that finding and enter an order creating the district.
(b) The order creating the district may specify the cost to the
county of publishing notice and conducting hearings for the
creation of the district together with the cost of conducting the
confirmation and sales and use tax election. The county may
require the petitioner to pay to the county the amounts specified
in the order creating the district at the time the order becomes
final.
(c) If the commissioners court finds that the petition does not
conform to the requirements of Section 383.022 or that the
creation of the district and the proposed project is not feasible
and necessary and would not serve the purpose of attracting
visitors and tourists to the county, the commissioners court
shall make that finding in an order and deny the petition.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.610 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997. Amended
by Acts 1997, 75th Leg., ch. 1199, Sec. 1, eff. Sept. 1, 1997;
Acts 2001, 77th Leg., ch. 1420, Sec. 12.110, eff. Sept. 1, 2001.
Sec. 383.028. TEMPORARY DIRECTORS; VACANCY IN OFFICE. (a) If
the commissioners court grants the petition, it shall appoint to
serve as temporary directors of the district five persons who are
qualified under this chapter to serve as directors.
(b) A vacancy in the office of temporary director shall be
filled by appointment by the commissioners court.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.611 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.029. QUALIFICATION OF TEMPORARY DIRECTORS;
ORGANIZATION. (a) Each temporary director shall execute a bond
in accordance with Section 383.046 and shall take an oath of
office.
(b) The board shall meet and organize.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.612 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.030. CONFIRMATION AND SALES AND USE TAX ELECTION. The
temporary board of directors shall conduct an election in the
district to confirm the creation of the district and authorize a
sales and use tax in conformity with this chapter.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.613 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.031. ELECTION ORDER. An order calling an election
under Section 383.030 must state:
(1) the nature of the election, including the proposition that
is to appear on the ballot;
(2) the date of the election;
(3) the hours during which the polls will be open;
(4) the location of the polling places; and
(5) the proposed rate of the sales and use tax for the district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.614 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.032. NOTICE. The temporary directors shall give notice
of the election by publishing a substantial copy of the election
order once a week for two consecutive weeks in a newspaper with
general circulation in the county in which the proposed district
is located. The first publication must appear before the 14th day
before the date set for the election.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.615 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.033. CONDUCT OF ELECTION. (a) The election shall be
held in accordance with the provisions of the Election Code, to
the extent not inconsistent with this chapter.
(b) The ballot shall be printed to permit voting for or against
the proposition: "The creation of ____________ County Development
District No. _____ and the adoption of a proposed local sales and
use tax rate of _____ (the rate specified in the election order)
to be used for the promotion and development of tourism."
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.616 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.034. RESULTS OF ELECTION. (a) After the election, the
presiding judge shall make returns of the result to the temporary
board of directors. The temporary board of directors shall
canvass the returns and declare the results.
(b) If a majority of the votes cast in the election favor the
creation of the district and the adoption of the sales and use
tax, the temporary board shall declare that the district is
created and shall declare the amount of the local sales and use
tax adopted and enter the result in its minutes. If a majority of
the votes cast in the election are against the creation of the
district and the adoption of the sales and use tax, the temporary
board shall declare that the proposition to create the district
was defeated and enter the result in its minutes.
(c) A certified copy of the minute order declaring that the
district is created and the local sales and use tax adopted and
including the rate of the sales and use tax, or declaring that
the proposition to create the district was defeated, shall be
sent to the commissioners court, the comptroller, and any taxing
entity by certified or registered mail. The order shall also show
the date of the election, the proposition on which the vote was
held, the total number of votes cast for or against the
proposition, and the number of votes by which the proposition was
approved.
(d) In the event 10 or fewer votes are cast in the confirmation
and sales and use tax election, within 90 days following the
entry of the order canvassing the election the proceedings of the
election, including voter affidavits as to residency and
qualification to vote, shall be submitted to the attorney
general.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.617 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997. Amended
by Acts 1997, 75th Leg., ch. 1199, Sec. 2, eff. Sept. 1, 1997.
SUBCHAPTER C. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS
Sec. 383.041. BOARD OF DIRECTORS; TERMS. (a) A district is
governed by a board of five directors appointed by the
commissioners court of the county in which the district is
located. The temporary directors appointed under Section 383.028
shall become permanent directors of the district, if the creation
of the district is confirmed at the confirmation election.
(b) Directors serve staggered terms of four years with two or
three members' terms expiring September 1 of every other year.
Following confirmation of the district at the election, the
temporary directors shall draw lots to determine:
(1) the two directors to serve terms that expire on September 1
of the second year following creation of the district; and
(2) the three directors to serve terms that expire on September
1 of the fourth year following creation of the district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.618 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.042. QUALIFICATIONS OF DIRECTOR. To be qualified to
serve as a director, a person must be at least 21 years of age, a
resident citizen of this state, and a qualified voter of the
county in which the district is located.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.619 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.043. PERSONS DISQUALIFIED TO SERVE. Section 50.026,
Water Code, applies to a director of a district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.620 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.044. REMOVAL OF DIRECTOR. The commissioners court,
after notice and hearing, may remove a director for misconduct or
failure to carry out the director's duties if petitioned by a
majority of the remaining directors.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.622 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.045. BOARD VACANCY. A vacancy in the office of
director shall be filled by appointment of the commissioners
court.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.621 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.046. DIRECTOR'S COMPENSATION; BOND AND OATH OF OFFICE.
A director is not entitled to receive compensation for service on
the board. Sections 375.067, 375.069, and 375.070 apply to a
director.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.626 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.047. OFFICERS. After each appointment of directors by
the commissioners court, and after the directors have qualified
by taking the proper oath, the directors shall organize by
electing a president, a vice president, a secretary, and any
other officer the board considers necessary.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.623 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.048. QUORUM; OFFICERS' DUTIES. (a) Three directors
constitute a quorum and a concurrence of three is sufficient in
any matter relating to the business of the district.
(b) The president presides at all board meetings and is the
chief executive officer of the district. The vice president acts
as president if the president is absent or disabled.
(c) The secretary acts as president if both the president and
vice president are absent or disabled. The secretary acts as
secretary of the board and is responsible for seeing that all
records and books of the district are properly kept.
(d) The board may appoint another director, the general manager,
or an employee as assistant or deputy secretary to assist the
secretary. The assistant or deputy secretary may certify the
authenticity of any record of the district, including a
proceeding relating to a bond, contract, or indebtedness of the
district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.624 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.049. BYLAWS. The board may adopt bylaws to govern:
(1) the time, place, and manner of conducting board meetings;
(2) the powers, duties, and other responsibilities of the
board's officers and employees;
(3) the disbursement of money by a check, draft, or warrant;
(4) the appointment and authority of director committees;
(5) the keeping of accounts and other records; and
(6) any other matter the board considers appropriate.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1,
1997.
Sec. 383.050. MANAGEMENT OF DISTRICT. (a) The board has
control over and shall manage the affairs of the district and
shall employ any person, firm, partnership, or corporation the
board considers necessary for conducting the affairs of the
district, including engineers, attorneys, financial advisors, a
general manager, a utility operator, bookkeepers, auditors, and
secretaries.
(b) The board shall determine the term of office and the
compensation of any employee and consultant by contract or by
resolution of the board.
(c) The board may remove any employee.
(d) The board may require an officer or employer to execute a
bond payable to the district and conditioned on the faithful
performance of the person's duties.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1,
1997.
Sec. 383.051. DIRECTOR INTERESTED IN CONTRACT. (a) A director
who is financially interested in a contract with the district or
a director who is an employee of a person who or firm that is
financially interested in a contract with the district shall
disclose that fact to the other directors. The disclosure shall
be entered into the minutes of the meeting.
(b) An interested director may not vote on the acceptance of the
contract or participate in the discussion on the contract.
(c) The failure of a director to disclose the director's
financial interest in a contract and to have the disclosure
entered in the minutes invalidates the contract.
Added by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1,
1997.
Sec. 383.052. DISTRICT OFFICE. The board shall designate and
establish a district office in the county.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.625(a) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.053. MEETINGS AND NOTICE. (a) The board may establish
regular meetings to conduct district business and may hold
special meetings at other times as the business of the district
requires.
(b) Notice of the time, place, and purpose of a meeting of the
board shall be given by posting the notice at a place convenient
to the public in the district. A copy of the notice shall be
furnished to a clerk of the county, who shall post it on a
bulletin board in the county courthouse used for that purpose.
(c) Except as otherwise provided by this chapter, Chapter 551,
Government Code, applies to the meetings of the board. Any
interested person may attend any meeting of the board.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.625(b) to (d) and amended
by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 383.061. GENERAL POWERS OF DISTRICT. (a) A district may
acquire and dispose of projects and has all of the other powers,
authority, rights, and duties that will permit accomplishment of
the purposes for which the district was created.
(b) The district has the powers of a municipal management
district created under Chapter 375 to the extent not inconsistent
with this chapter.
(c) The district has the power to provide for general promotion
and tourist advertising of the district and its vicinity and to
conduct a marketing program to attract visitors, any of which may
be conducted by the district pursuant to contracts for
professional services with persons or organizations selected by
the district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.628 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.062. SUITS. A district, after it is created and
confirmed, through its directors may sue and be sued in any court
of this state in the name of the district. Service of process in
any suit may be made by serving any two directors.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.627(b) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.063. EMINENT DOMAIN. (a) A district that is not
located within a municipality may exercise the power of eminent
domain to acquire land or interests in land in the district
considered necessary by the board for the purpose of providing
water and sewer services to an authorized project.
(b) The power of eminent domain shall be exercised in the manner
provided by Chapter 21, Property Code.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.630 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.064. EXPENDITURES. A district's money may be disbursed
only by check, draft, order, or another instrument that must be
signed by at least three directors. The general manager,
treasurer, or other employee of the district, if authorized by
resolution of the board, may sign checks, drafts, orders, or
other instruments on any district operation account and these
need not be signed by any other person.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.631 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.065. PURPOSES FOR BORROWING MONEY. The district may
borrow money for any corporate purpose or combination of
corporate purposes.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.632 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.066. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) The
directors may pay:
(1) all costs and expenses necessarily incurred in the creation
and organization of the district;
(2) the cost of investigation and making plans;
(3) the cost of the engineer's report;
(4) project designer fees;
(5) legal fees; and
(6) other incidental expenses.
(b) A director may reimburse any person for money advanced for
the costs, fees, and expenses described by Subsection (a).
(c) Payments under this section may be made from money obtained
from the issuance of notes or the sale of bonds first issued by
the district or from other district revenues.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.633 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
SUBCHAPTER E. BONDS
Sec. 383.081. ISSUANCE OF BONDS. The district may issue bonds
for the purpose of defraying all or part of the cost of any
project as provided in this chapter. Sections 375.201 through
375.208 apply to a district to the extent not inconsistent with
this chapter.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.634 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.082. MANNER OF REPAYMENT OF BONDS. The board may
provide for the payment of principal of and interest and
redemption price on bonds:
(1) from taxes;
(2) by pledging all or any part of the designated revenues,
license fees, or other compensation from a project or any part of
a project, including revenues and receipts derived by the
district from the lease or sale of the project;
(3) by pledging all or any part of any grant, donation, revenue,
or income received or to be received from any public or private
source; or
(4) from a combination of such sources.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.635 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.083. USE OF BOND PROCEEDS. The district may use bond
proceeds to:
(1) pay interest on the bonds during and after the period of the
acquisition or construction of a project;
(2) pay administrative and operating expenses;
(3) create a reserve fund for the payment of principal and
interest on the bonds; and
(4) pay all expenses incurred or that will be incurred in the
issuance, sale, and delivery of the bonds.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from V.T.C.A, Tax Code Sec. 312.636 and amended
by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.084. ADDING AND EXCLUDING LAND FROM THE DISTRICT. (a)
Before the board issues bonds, the board, on its own motion or on
request of a landowner in the district, may petition the
commissioners court for the addition of land to or exclusion of
land from the district.
(b) If the commissioners court unanimously determines from the
evidence that the best interests of the persons and property in
the district will be served by adding or excluding land, the
commissioners court shall enter in its records the appropriate
findings and order adding or excluding land.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.638 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
SUBCHAPTER F. SALES AND USE TAX
Sec. 383.101. SALES AND USE TAX. (a) A district may impose a
sales and use tax for the benefit of the district if authorized
by a majority of the qualified voters of the district voting at
an election called for that purpose. The sales and use tax, if
adopted, does not count toward the limitation imposed by Chapter
323, Tax Code, on any sales and use tax that has been levied by
the county.
(b) If a district adopts the tax, there is imposed a tax on the
receipts from the sale at retail of taxable items in the district
at a rate of up to one-half of one percent. There is also imposed
an excise tax on the use, storage, or other consumption in the
district of taxable items purchased, leased, or rented from a
retailer during the period that the tax is effective in the
district. The rate of the excise tax is the same as the rate of
the sales tax portion of the tax applied to the sales price of
the taxable items and is included in the sales tax.
(c) For purposes of this section, "taxable items" includes all
items subject to any sales and use tax that is imposed by the
county if the county has imposed a sales and use tax.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.637(a), (b) and amended
by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.102. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
inconsistent with this chapter, governs the imposition,
computation, administration, and governance of the tax under this
subchapter, except that Sections 323.101(b) and (e), Tax Code,
and Sections 323.209, 323.401 through 323.406, and 323.505, Tax
Code, do not apply.
(b) Chapter 323, Tax Code, does not apply to the use and
allocation of revenues under this chapter.
(c) In applying the procedures under Chapter 323, Tax Code, the
district's name shall be substituted for "the county" and "board
of directors" is substituted for "commissioners court."
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.637(c) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.103. TAX RATES. The permissible rates for a local
sales and use tax levied under this chapter are one-fourth of one
percent, three-eighths of one percent, and one-half of one
percent.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.637(d) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.104. ABOLITION OF OR CHANGE IN TAX RATE. (a) The
board by order may decrease or abolish the local sales and use
tax rate or may call an election to increase, decrease, or
abolish the local sales and use tax rate.
(b) At the election, the ballots shall be printed to permit
voting for or against the proposition: "The increase (decrease)
in the local sales and use tax rate of (name of district) to
(percentage) to be used for the promotion and development of
tourism" or "The abolition of the district sales and use tax used
for the promotion and development of tourism." The increase or
decrease in the tax rate is effective if it is approved by a
majority of the votes cast. In calling and holding the election,
the board shall use the procedure for the confirmation and tax
election set forth in this chapter.
(c) The district's sales and use tax is automatically
discontinued by operation of law if no tax revenue is collected
within the district before the first anniversary of the date the
tax took effect. The comptroller shall notify the board and the
commissioners court of the county in which the district is
located of the discontinuance of the tax. The district may
authorize a new sales and use tax by following the procedures
provided by this subchapter for imposition of the tax.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.637(e), (f) and amended
by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 6, eff. Sept. 1,
2001.
Sec. 383.105. USE OF TAX. Taxes collected under this subchapter
may be used only for the purposes for which the district was
created, and the district may pledge the revenue derived from the
taxes imposed under this subchapter to the payment of bonds
issued by the district.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.637(g) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.106. LIMITATION ON ADOPTION OF TAX. (a) A district
may adopt a tax under this subchapter only if as a result of
adoption of the tax the combined rate of all local sales and use
taxes imposed by political subdivisions having territory in the
district will not exceed two percent.
(b) If, as a result of the imposition or increase in a sales and
use tax by a municipality in which there is located a district
with an existing sales and use tax or as a result of the
annexation by a municipality of the territory in a district with
an existing sales and use tax, the overlapping local sales and
use taxes in the area in the district will exceed two percent,
the district's sales and use tax rate is automatically reduced to
a rate that when added to the combined rate of local sales and
use taxes will equal two percent.
(c) If a district's tax rate is reduced in accordance with
Subsection (b), the municipality shall make payments to the
district equal to the amounts that would have been collected by
the district had the municipality not imposed or increased its
sales and use tax or annexed the area in the district, less
amounts that the district collects following the municipality's
levy of or increase in its sales and use tax or annexation of the
area in the district. The payment shall be made by the
municipality to the district within 10 days after the date of
receipt of the money from the comptroller's office and shall
continue only for so long as any bonds of the district are
outstanding.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1997. Renumbered from Tax Code Sec. 312.637(h) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
SUBCHAPTER G. COMPETITIVE BIDDING
Sec. 383.111. COMPETITIVE BIDDING. Sections 375.221 and 375.223
apply to a district created under this chapter.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.629 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.112. EXEMPTION. Notwithstanding any other provision of
this chapter to the contrary, any contract between the district
and a governmental entity or nonprofit corporation created under
the Development Corporation Act (Subtitle C1, Title 12) is not
subject to the competitive bidding requirements of this chapter.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.629 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.28, eff. April 1, 2009.
SUBCHAPTER H. DISSOLUTION
Sec. 383.121. DISSOLUTION OF DISTRICT. A district may be
dissolved only as provided by this subchapter.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.639(a) and amended by
Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.122. DISSOLUTION BY ORDER OF COMMISSIONERS COURT. (a)
The board may petition the commissioners court to dissolve the
district if a majority of the board finds at any time:
(1) before the authorization of bonds or the final lending of
its credit, that the proposed undertaking is impracticable or
cannot be successfully and beneficially accomplished; or
(2) that all bonds of the district or other debts of the
district have been paid and the purposes of the district have
been accomplished.
(b) On receipt of a petition from the board for the dissolution
of the district, the commissioners court shall hold a hearing as
provided by Section 383.024.
(c) If the commissioners court unanimously determines from the
evidence that the best interests of the county and the owners of
property and interests in property in the district will be served
by dissolving the district, the commissioners court shall enter
in its records the appropriate findings and order dissolution of
the district. Otherwise the commissioners court shall enter its
order providing that the district has not been dissolved. On
dissolution of the district, funds and property of the district,
if any, shall be transferred to the commissioners court.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1997. Renumbered from Tax Code Sec. 312.639(b), (c) and amended
by Acts 1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.
Sec. 383.123. DISSOLUTION OF DISTRICT ON AGREEMENT WITH
MUNICIPALITY. A district may be dissolved by agreement between
the governing body of a municipality and the board if all of the
territory in the district is located in or is annexed by the
municipality. The agreement shall require the municipality to
acquire all of the money, property, and other assets of the
district and assume all contracts, debts, bonds, and other
obligations of the district, and the municipality shall be bound
in the same manner and to the same extent that the district was
bound with respect to those contracts, debts, bonds, and other
obligations. On dissolution of the district, the taxes levied by
the district are abolished.
Added by Acts 1995, 74th Leg., ch. 995, Sec. 5, eff. Sept. 1,
1995. Renumbered from Tax Code Sec. 312.640 and amended by Acts
1997, 75th Leg., ch. 165, Sec. 23.05, eff. Sept. 1, 1997.