HBA-RBT C.S.H.B. 3567 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3567
By: Uher
Ways & Means
5/3/1999
Committee Report (Substituted)



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.  C.S.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 Sections 383.003(a), 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 public improvements to attract visitors and tourists 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
projects that attract visitors or tourists.  

SECTION 2.  Amends Section 383.004, Local Government Code, to define
"visitor." 

SECTION 3.  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 4.  Amends Section 383.022, Local Government Code, to provide that
a petition requesting creation of a district must be accompanied by a copy
of an ordinance or resolution supporting the creation of the district
enacted by each municipality with incorporated territory or
extraterritorial jurisdiction located in the proposed district. 

SECTION 5.  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 6.  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 7.  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 8.  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.   

SECTION 9.  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 the hotel occupancy
tax is to be used for the purpose of attracting visitors and tourists to
the county.  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 10.  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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original by deleting SECTIONS 1(Legislative
Intent), 5 (Contents of Petition), and 7 (Ballot Language) of the original. 

The substitute differs from the original by redesignating SECTIONS 2, 3, 4,
6, 8, 9, 10, 11, 12, and 13 of the original, as SECTIONS 1, 2, 3, 5, 6, 7,
8, 9, 10, and 11, respectively. 

The substitute differs from the original by adding a new SECTION 4,
amending Section 383.022, Local Government Code.  Please also see the
Section-by-Section Analysis.