HBA-RBT H.B. 3567 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3567 By: Uher Ways & Means 4/8/1999 Introduced BACKGROUND AND PURPOSE Currently, the County Development District Act 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. H.B. 3567 adds "public improvement" and the attraction of residents as public purposes under the Act. This bill also increases from 400,000 to 600,000 the population minimum for counties which create county development districts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 383.002, Local Government Code, to include residents among those for whom incentives are provided to attract to local projects. SECTION 2. Amends Sections 383.003(a) and (b), Local Government Code, to state that small and medium-sized counties in this state need programs and the authority to spend public money, rather than incentives, for the development of projects to attract residents to those counties and states that those counties are at a disadvantage in competing with counties in other states for the location and development of public improvements or projects that attract visitors, tourists, or residents. Makes conforming and nonsubstantive changes. SECTION 3. Amends Section 383.004, Local Government Code, to define "resident" and "visitor" and redefine "project." SECTION 4. Amends Section 383.021(a), Local Government Code, to authorize the commissioners court of a county with a population of 600,000, rather than 400,000, or less, on petition of the owners of land in a proposed district, to commence the creation of a county development district. SECTION 5. Amends Section 383.023, Local Government Code, to make conforming changes. SECTION 6. Amends Section 383.027, Local Government Code, by amending Subsection (a) and adding Subsections (c) and (d), as follows: (a) Makes nonsubstantive changes. (c) Provides that an appeal of an order creating a district under Subsection (a) must be filed in a district court of the county in which the district is created not later than the 30th day after the date of the order. Prohibits the filing of an appeal outside of that time frame. Authorizes the district to exercise any of the powers granted to the district after the 30th day. (d) Authorizes the commissioners court, with the written consent of the owner of the fee simple title of property, to include the property in more than one county development district. SECTION 7. Amends Section 383.033(b), Local Government Code, to provide that the ballot language be changed to provide that the sales and use tax money, when creating the county development district, be used for the purpose specified in the election order, rather than the promotion and development of tourism. SECTION 8. Amends Section 383.061, Local Government Code, by adding Subsections (d) and (e), to authorize a district to contract with any other district or person as necessary to carry out a power or duty of the district under this chapter. Authorizes a district to enter into a contract with the county under which the district agrees not to call an election to authorize an ad valorem tax without the written approval of the county. SECTION 9. Amends Section 383.081, Local Government Code, to require the bonds of the district to be submitted to the attorney general for approval. Provides that bonds issued by the district do not require approval from the Texas Natural Resource Conservation Commission. Authorizes a district's bonds to be repaid from any source of tax or revenue, including assessments on residential property. Deletes text making Sections 375.201 through 375.208 (regarding revenue bonds) applicable to a district. SECTION 10. Amends Subchapter F, Chapter 383, Local Government Code, by adding Section 383.107, as follows: Sec. 383.107. CONTRACTS AND PROGRAMS FOR USE OF TAXES AND REVENUE. Authorizes a district to establish a program and enter into an economic development agreement with any person under which the taxes and revenue collected by the district may be spent to stimulate business, commercial, or residential activity in the county in which the district is located for specified development. SECTION 11. Amends Section 352.107, Tax Code, to authorize a commissioner court of a county with a population of less than 600,000, rather than 400,000, to impose a hotel occupancy tax. Provides that if two or more county development districts include the same parcel of land, a hotel occupancy tax may be collected from only the first district to include the parcel. Makes conforming and nonsubstantive changes. SECTION 12. Provides that an action taken by the board of directors of a county development district created under Chapter 383, Local Government Code, before the effective date of this act is validated as of the date the action was taken, unless the action is involved in litigation, if the litigation ultimately results in the action being held invalid by a final judgment of a court or has been held invalid by a final judgment of a court. SECTION 13. Emergency clause. Effective date: upon passage.