By: Kleinschmidt H.B. No. 74 A BILL TO BE ENTITLED AN ACT relating to the creation and operation of a park and recreation district in a county with frontage on the San Marcos River and to the authority of the district to collect fees; providing penalties. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle B, Title 10, Local Government Code, is amended by adding Chapter 324A to read as follows: CHAPTER 324A. PARK AND RECREATION DISTRICTS IN COUNTIES WITH FRONTAGE ON SAN MARCOS RIVER SUBCHAPTER A. GENERAL PROVISIONS Sec. 324A.001. ELIGIBLE COUNTIES. In a county that has river frontage on the San Marcos River and a population of more than 35,000 but not more than 100,000, a district may be created for all or part of the unincorporated area in the county to: (1) improve, equip, maintain, finance, and operate any public park located in the district and owned or leased by the county; (2) construct, improve, and maintain transportation infrastructure projects to provide public access to and in the district; (3) conserve the natural resources in the district; and (4) improve the public health, safety, and welfare in the district. Sec. 324A.002. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of a park and recreation district. (2) "District" means a park and recreation district created under this chapter. (3) "District facility" includes any facility, land, or improvement to land, whether permanent or temporary, that is owned, leased, or acquired by the district. (4) "Fee" includes a toll or any other charge. (5) "Recreational vehicle" has the meaning assigned by Section 522.004(b), Transportation Code. (6) "Recreational vehicle park" means property on which utility service connections are made for recreational vehicle transient guest use and for which fees are paid at intervals of one day or longer. SUBCHAPTER B. CREATION OF PARK AND RECREATION DISTRICT Sec. 324A.021. ORDER OF ELECTION. (a) The commissioners court of the county may order an election on the issue of the creation of a district: (1) on the commissioners court's own motion; or (2) after the filing of a written petition signed by a number of the registered voters who reside in the county equal to at least five percent of the votes received in the county in the most recent gubernatorial general election. (b) The petition or commissioners court's motion must include: (1) the name of the proposed district; (2) an accurate description of the area to be included in the district by metes and bounds and by public roads or rights-of-way; and (3) an accurate plat of the area to be included in the district. Sec. 324A.022. NOTICE OF HEARING. (a) After the filing of the petition, the commissioners court shall set a date for a hearing on the petition that is after the 20th day but on or before the 40th day after the date the petition is filed. (b) The commissioners court shall publish notice of the petition and the hearing date in a newspaper of general circulation in the county. (c) The notice must be published once each week for a period of two weeks before the hearing date. Sec. 324A.023. HEARING. (a) At the hearing, evidence shall be taken as in civil cases in the county court. The commissioners court shall hear all arguments for and against the creation of the district. (b) The hearing may be adjourned from time to time on good cause shown. (c) The commissioners court shall grant the petition and order the election on the issue of the creation of the district if the court finds that: (1) the petition is signed by the required number of registered voters in the county; (2) the district will serve the purposes prescribed by Section 324A.001; and (3) the district does not include any incorporated area. Sec. 324A.024. CREATION ELECTION. (a) The election shall be held on the date of the first regularly scheduled countywide election that follows the date of the order of the election and for which there is sufficient time to comply with other requirements of law. (b) The returns on the election shall be certified and the results declared in the same manner as provided for other county elections. If a majority of the votes received on the issue favor creation of the district, the commissioners court shall declare the district created and shall enter the results in the commissioners court's minutes at the commissioners court's next regularly scheduled meeting. Sec. 324A.025. COSTS OF CREATION AND ORGANIZATION. The costs necessarily incurred in the creation and organization of the district may be paid from the district's revenue from any source. SUBCHAPTER C. BOARD OF DIRECTORS OF PARK AND RECREATION DISTRICT Sec. 324A.041. COMPOSITION AND APPOINTMENT OF BOARD. (a) A district is governed by a board composed of seven members. (b) The commissioners court shall appoint the members of the board. (c) A board member must be a citizen of the United States and must reside in the county. Four of the board members must reside, own property, or own a business in the district. One board member must live outside the district. (d) A board member may not be an officer or employee of the county in which the district is created or of a municipality in that county. (e) Three members of the initial board serve one-year terms and four members serve two-year terms. The members shall draw lots to determine who serves the one-year terms. Thereafter, each director is appointed for a term of two years from the date of the director's appointment. (f) If a vacancy occurs on the board, the commissioners court shall appoint a person to fill the vacancy for the unexpired term. (g) The commissioners court shall file a certificate of the appointment of each board member with the county clerk. The certificate is conclusive evidence of the proper appointment of the board member. (h) A board member may not serve more than four consecutive full terms. Sec. 324A.042. OATH AND BOND. (a) Not later than the 30th day after the date a board member is appointed, the member must qualify by taking the official oath and by filing a good and sufficient bond with the county clerk. (b) The bond must be: (1) payable to the order of the commissioners court; (2) payable in an amount prescribed by the commissioners court of $5,000 or more; and (3) conditioned that the board member will faithfully perform the duties of a board member, including the proper handling of all money that comes into the board member's hands in the board member's official capacity. Sec. 324A.043. COMPENSATION AND REIMBURSEMENT. A board member is not entitled to compensation but is entitled to reimbursement for necessary expenses, including travel expenses, incurred in performing the duties of a board member. A board member's reimbursement for necessary expenses in excess of $250 must be approved by the commissioners court. A board member's approved expense account shall be paid in due time by the board's check or warrant. Sec. 324A.044. QUORUM; MAJORITY VOTE. Four board members constitute a quorum of the board. The board may act on the majority of the vote of the assembled quorum. Sec. 324A.045. APPROVAL OF COMMISSIONERS COURT. (a) The board is subject to the supervision of the commissioners court in the exercise of all the board's rights, powers, and privileges and in the performance of the board's duties. (b) Not later than the 30th day after the date the board acts, the commissioners court may approve or disapprove the board's action. If the court disapproves the act, the act is ineffective. Otherwise, the act becomes effective on the earlier of the date the commissioners court approves the act or the 31st day after the date the board acted. Sec. 324A.046. ORGANIZATION; MEETINGS. (a) Annually, the board shall elect a president, a vice president, a secretary, and a treasurer, except that the first president shall be designated by the commissioners court at the time of the appointment of the first board. (b) The offices of secretary and treasurer may be held by the same person. If either the secretary or the treasurer is absent or unavailable, the president may appoint another board member to act for and perform the duties of the absent or unavailable officer. (c) The board shall set times for and hold regular meetings. On the request of two or more board members, the board may hold a special meeting at other times as necessary. (d) The board shall hold meetings at a public place in a county in which at least part of the district is located. SUBCHAPTER D. POWERS AND DUTIES Sec. 324A.061. DEPOSITORIES AND DISBURSEMENTS. (a) Money and other funds belonging to or under control of the board are public funds. (b) The board shall select depositories for the money. (c) A warrant or check for the withdrawal of money must be signed by two persons authorized to sign a warrant or check by resolution entered in the board's minutes. Sec. 324A.062. PERSONNEL. (a) The board may employ a manager, secretary, stenographer, bookkeeper, accountant, and technical expert and any other support personnel or agent the board considers necessary. (b) The board shall determine the qualifications and set the duties of employees. (c) The board may call on the county attorney, district attorney, or criminal district attorney for the legal services the board requires. The board may contract for and compensate the board's own legal staff. Sec. 324A.063. SEAL. The board shall adopt a seal to place on each lease, deed, or other instrument usually executed under seal and on other instruments as the board requires. Sec. 324A.064. CONTRACTS. (a) The board may enter into any contract that the board considers necessary or convenient to carry out the purposes and powers granted by this chapter, including a lease or other contract connected with, incident to, or affecting the acquisition, financing, construction, equipment, maintenance, renovation, repair, improvement, or operation of real property or facilities. (b) If the contract is for an amount less than or equal to the amount prescribed by Section 262.023, the board may enter into the contract without advertisement. If the contract is for more than that amount, the contract is subject to the bidding provisions applicable to county contracts. (c) To be effective, a contract must be: (1) approved by board resolution; (2) executed by the president or vice president; and (3) attested by the secretary or treasurer. Sec. 324A.065. SUITS. The board may sue and be sued in the board's own name. Sec. 324A.066. DISTRICT RULES AND ORDINANCES; CRIMINAL PENALTY; CIVIL ENFORCEMENT. (a) The board may adopt reasonable rules and ordinances applicable to: (1) the administration, enforcement, and collection of district fees and the issuance, suspension, and cancellation of revenue permits; (2) littering and litter abatement on public water in the district, including the possession and disposition of plastic containers of not more than two ounces and glass containers; (3) activities that endanger the health and safety of persons or property on public water in the district, subject to the public's paramount right to navigate inland water; and (4) tenants, business privileges, concessionaires, users, and activities affecting district property and facilities, including hunting, fishing, boating, camping, tubing, swimming, and conservation of natural resources. (b) The board may not prohibit the possession of 12-ounce aluminum cans. (c) A police officer, constable, sheriff, or other law enforcement officer with jurisdiction in the county may arrest persons violating board rules or ordinances and carry out the prosecution of those persons in the proper court. (d) A person who violates a rule or ordinance adopted under this section commits an offense. An offense under this subsection is a Class C misdemeanor punishable by: (1) a fine not to exceed $500 for a violation of a rule or ordinance not described by Subsection (a)(2); and (2) a fine not to exceed $1,000 for a violation of a rule or ordinance described by Subsection (a)(2). (e) The county attorney, the district attorney, the criminal district attorney, or an attorney retained by the board for this purpose may bring an action to enjoin a violation of board rules or ordinances and, if the board authorizes, may seek damages and attorney's fees based on the violation, if the violation involves: (1) the providing or offering of a service or the use or rental of a facility or an item for remuneration by a person who does not hold a revenue permit issued by the district or for which collection of a fee is required; (2) the failure of a revenue permit holder to remit a fee imposed if the fee has been due for more than 60 days; or (3) the violation by a revenue permit holder of a district rule or ordinance relating to an activity that endangers the health or safety of a person or property in the district. Sec. 324A.067. BOND. If the board brings an action to enforce this subchapter or enjoin a violation of a rule or ordinance adopted by the board under this subchapter, the board is not required to post a bond. Sec. 324A.068. POWER TO ACQUIRE PROPERTY. (a) For the conservation of the natural resources of the county, the board may acquire land in the county, in or outside the district, including a stream, a lake, submerged land, and swampland, to create parks. The board may develop, improve, protect, and promote the land in a manner the board considers conducive to the general welfare. (b) The land may be acquired by: (1) gift or devise; (2) lump-sum payment; or (3) installment payments with or without option to purchase. (c) The district does not have the power of eminent domain. (d) The commissioners court by eminent domain may not acquire land for park purposes after August 31, 2013, and subsequently transfer by any means the land or control of the land to the board for park purposes or other purposes. If the commissioners court by eminent domain acquires land for purposes other than park purposes after August 31, 2013, the court may not transfer by any means the land or control of the land to the board for park purposes or other purposes before the 10th anniversary of the date the court acquired the land. Sec. 324A.069. SALE OR LEASE OF LANDS. (a) If the board determines that any land owned by the district is not necessary for the purposes for which the land was acquired, the board may sell and dispose of the land on terms the board considers advisable. (b) The board may lease or permit the use of land for purposes consistent with the purposes for which the land was acquired and on terms the board considers advisable. (c) Before land owned by the district may be sold, once a week for four consecutive weeks in a newspaper of general circulation in the county, the board must publish a notice of the board's intention to sell the land. The notice must include an accurate description of the land, the time of a public hearing that is not later than the 10th day before the disposition date, and the time and place at which sealed bids will be received. Sec. 324A.070. GRANTS AND GRATUITIES. To promote, establish, or accomplish a purpose of this chapter, the board may: (1) accept grants and gratuities in any form from any source, including the United States government, this state, any state or federal agency, any private or public corporation, or any other person; (2) accept donations of money or other property; and (3) act as trustee of land, money, or other property. Sec. 324A.071. PARKLAND CONTROLLED BY OTHER PUBLIC AUTHORITIES. Under an agreement with a public authority in control of parkland in the county, the district may assume control of all or part of the parkland in the district or contiguous to the district or may contract or cooperate with the public authority in connection with the use, development, improvement, and protection of the parkland. Sec. 324A.072. PUBLIC ROAD OR HIGHWAY AGREEMENTS. (a) The board may enter into an agreement with a public authority in control of a highway in a park area or connecting two or more park areas to make alterations in the route or width of the highway or to grade, drain, pave, or otherwise improve the highway. (b) The board may enter into an agreement with the county to cooperate with the county to construct, improve, or maintain a public road or highway in the county. Sec. 324A.073. PLAN FOR DEVELOPMENT OF PARKS; ANNUAL BUDGET; FILING. (a) The board shall develop and approve a three-year master plan for capital development and the development of parks and district facilities. (b) The board shall annually review and revise the master plan during the budget process and shall file a copy of the master plan and revisions with the county clerk. (c) The board shall annually develop and approve a one-year budget that must include the suggested revisions and additions to the master plan. (d) The board shall submit the annual budget to the commissioners court for approval and shall file a copy with the county clerk. Sec. 324A.074. PERMANENT IMPROVEMENTS ON LAND WITH RIVER FRONTAGE. (a) The district may not purchase a river access location except for use as: (1) a sanitary facility; (2) a litter receptacle; (3) a drinking water facility; (4) a parking lot; (5) a road or trail; (6) a river ingress or egress facility; (7) an information booth; (8) a fee collection facility; (9) a visitor's center; or (10) a district office. (b) At a river access location permitted under this section, the district may not engage in any activity that competes with private enterprise except for the provision and operation of a permanent improvement permitted under this section. (c) Subject to the restrictions provided by Section 324A.068(d), the district may accept as a grant, gratuity, gift, or devise land with river access and any improvement that may exist on the land at the time of the gift. SUBCHAPTER E. FEES AND FINANCIAL PROVISIONS Sec. 324A.091. NO AD VALOREM TAXES OR BONDS. The district may not impose an ad valorem tax or issue a bond. Sec. 324A.092. FEES FOR USE OF DISTRICT FACILITY. (a) The board may charge or require the payment of a fee for the use of a district facility except a drinking water or sanitary facility. (b) A fee assessed under this section must be equal and uniform within classes defined by the board. (c) Except as provided by a contract entered into by the board, the board may determine the rate of fees charged for the use, operation, or lease of district facilities, services, or equipment. The fees must be in amounts that will produce revenue at least sufficient to pay the expenses of operating and maintaining district facilities. Sec. 324A.093. FINANCIAL STATEMENT; BUDGET. (a) On or before February 1 of each year, the board shall prepare and file with the officer responsible for the county budget a complete financial statement showing the financial status of the district and the district's properties, funds, and indebtedness. (b) The financial statement must be prepared in accordance with standards adopted by the Governmental Accounting Standards Board and must show separately all information concerning: (1) leases, promissory notes, and other indebtedness of the district; and (2) fee revenue of the district. (c) At the time the financial statement is filed, the board shall file with the commissioners court a proposed budget of the board's needs for the next fiscal year. The proposed budget shall include items that: (1) the board is unable to finance from the district's revenues; and (2) the board requests purchase of with county funds. (d) The officer responsible for the county budget shall include the district's proposed budget on the calendar for the next regularly scheduled meeting of the commissioners court. As part of the county's tentative budget, the items certified by the board are subject to state law relating to county budgets. (e) The county auditor may conduct a general audit and issue a financial statement of the district at times the auditor considers appropriate. (f) The board shall operate the parks and facilities under the board's control in a manner that will produce revenue at least sufficient to pay the expenses of operating and maintaining the district's parks and facilities without seeking from the commissioners court the appropriation of additional money for those expenses. Sec. 324A.094. IMPOSITION AND COLLECTION OF FEES; CRIMINAL PENALTY. (a) The district may collect fees and issue revenue permits within the district to carry out any purposes prescribed by this chapter and to pay the obligations of the district. (b) The district may collect only the following fees: (1) a fee, at a rate not greater than five percent established by board resolution, imposed on each person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays $1 or more: (A) for each day to rent a camping space, picnic space, or parking space, if the space is not part of a recreational vehicle park; (B) for each day to rent a boat slip, dry boat storage, or fishing tackle; (C) for each day of recreational guide services; or (D) for an initiation or membership fee of a private club or organization that provides water-oriented recreational equipment for use to a member; and (2) a fee imposed by board resolution at a rate not greater than $1 a person: (A) for each rental of water-oriented recreational equipment, including a canoe, tube, raft, boat, or kayak, intended for use on a river in the district; or (B) if the person does not rent equipment described by Paragraph (A), for each person using shuttle service in the district, including for river ingress and egress. (c) A fee imposed under this section is payable by the purchaser or consumer of the item subject to the fee, except that, if the person responsible for collecting the fee does not comply with this chapter by collecting and remitting the fee to the district, the person responsible for collecting the fee is liable for the fee. (d) A person who does not hold a revenue permit issued by the board may not provide or offer for remuneration a service, a use of a facility, or a rental of an item if the price paid for the service, use, or rental is subject to a fee under this section. A person who holds a revenue permit issued by the district shall collect the fees imposed under this section and shall report and remit the collected fees to the district as the district requires. (e) If a revenue permit holder remits fees after the due date but on or before the 30th day after the due date, the revenue permit holder shall pay the district a penalty of five percent of the amount of fees due. If the revenue permit holder remits the fees after the 30th day after the due date, the revenue permit holder shall pay the district a penalty of 10 percent of the amount of fees due. (f) Delinquent fees and accrued penalties draw interest at the rate of 10 percent a year beginning on the 60th day after the date the fees were due. (g) If a revenue permit holder does not collect and remit a fee imposed, the board may suspend, revoke, or cancel the holder's revenue permit and pursue any other remedy the district may have to collect the fee under civil or criminal law. (h) A person who violates Subsection (d) commits an offense if the person rents or offers for rent an item subject to a fee under this section. Each provision or offer for remuneration of the service, use, or rental is a separate offense. An offense under this subsection is a Class C misdemeanor unless it is shown at the trial of the defendant that the defendant has previously been convicted of an offense under this subsection, in which case the offense is a Class B misdemeanor. (i) In the same manner that this section applies to a person who provides or offers a service, a use of a facility, or a rental of an item in the district, this section applies to a person who resides or does business outside the district but: (1) provides or offers recreational guide or shuttle services or the rental of water-oriented recreational equipment in the district; and (2) regularly transports customers into or out of the district for river or parking access. (j) The board may settle a claim for a penalty or interest accrued on a fee imposed by this chapter if the board finds that the revenue permit holder exercised reasonable diligence to comply with this chapter. (k) The district may impose different fee rates for different types of services or rental items described by Subsection (b)(2). A fee rate may not exceed the maximum rate provided by that subdivision. Sec. 324A.095. FEE EXEMPTION. The district may not collect a fee on a transaction between a person and an interest operated by: (1) the United States in the district; or (2) a state park in the district. Sec. 324A.096. DISPOSITION OF REVENUE. In addition to any other purpose or obligation of a district, a district may use district fee revenue and other revenue for: (1) acquisition of a right-of-way that leads to or is in the district; (2) construction, improvement, or maintenance of a road or highway that leads to or is in the district and mitigation of adverse environmental effects that result directly from the construction, improvement, or maintenance of the road or highway; (3) the provision of law enforcement, emergency medical services, or fire protection in the district; (4) programs to improve the water quality and sanitary conditions in the district; (5) other programs that promote water-oriented recreation in the district; (6) a contribution to the county's general fund in the event that the board finds it has excess revenues; (7) acquiring insurance for the district; (8) hiring necessary personnel as provided by Section 324A.062; (9) the construction of facilities to house district personnel and equipment; (10) the leasing of property as necessary to benefit the district; and (11) any other lawful purpose for the benefit of the district. Sec. 324A.097. REPLACEMENT FUND. (a) The board may establish a replacement fund. The board may deposit in the fund any amounts from board revenue that the board considers appropriate. (b) The replacement fund may be used to rebuild, restore, repair, or improve district property that is destroyed or injured or as necessary to expand, improve, demolish, repair, or replace district property because of unfitness. (c) The board may invest the replacement fund in bonds of the United States, this state, or a county, municipal corporation, or school district of this state. SUBCHAPTER F. ANNEXATION; INCORPORATION; DISSOLUTION Sec. 324A.121. ANNEXATION. (a) The voters of an unincorporated area that is contiguous to a district may file a petition with the board to annex the area to the district. (b) The petition must contain an accurate description of the area proposed for annexation, accompanied by an accurate map or plat of the area. (c) The petition must be signed by at least one percent of the registered voters in the area proposed for annexation. (d) If the board considers the proposed annexation desirable, the board shall file the petition with the commissioners court with a statement of the reasons the board favors the annexation. (e) The commissioners court shall give notice of a hearing on the petition and hold a hearing in the manner prescribed by Sections 324A.022 and 324A.023 for a petition for creation of a district. (f) The commissioners court may grant the petition if the commissioners court finds the petition meets the requirements of this section and the annexation promotes the purposes for which the district was created. Sec. 324A.122. EFFECT OF INCORPORATION OR ANNEXATION. The incorporation of a political subdivision or the annexation of any part of a park and recreation district by a political subdivision does not affect the district's boundaries. Sec. 324A.123. DISANNEXATION. (a) The voters of or county commissioners for any area in a district may file a petition with the board to disannex the area from the district. (b) The petition must contain an accurate description of the area proposed for disannexation, accompanied by an accurate map or plat of the area. (c) The petition must be signed by at least one percent of the registered voters in the area proposed for disannexation or by each county commissioner for the area proposed for disannexation. (d) The board shall file the petition with the commissioners court if: (1) the district has not acquired or constructed a permanent improvement or facility in the area proposed for disannexation; and (2) the district's projected revenue from all sources, except from the area proposed for disannexation, is sufficient to pay the district's outstanding debts. (e) The commissioners court shall give notice of a hearing on the petition and hold a hearing in the manner prescribed by Sections 324A.022 and 324A.023 for a petition for creation of a district. (f) The commissioners court by order may grant the petition if the commissioners court finds that: (1) the petition meets the requirements of this section; (2) the conditions listed in Subsection (d) exist; and (3) the disannexation is in the county's best interests. (g) The disannexation takes effect on the date stated by the order or, if the order does not state a date, on the date the order is issued. Sec. 324A.124. DISSOLUTION OF DISTRICT. (a) The commissioners court by order may dissolve a district. The order may be adopted: (1) on the commissioners court's own motion; or (2) after the filing of a written petition signed by a number of the registered voters who reside in the district equal to at least 10 percent of the votes received in the district in the most recent gubernatorial general election. (b) The commissioners court shall give notice of a hearing on the petition and hold a hearing in the manner prescribed by Sections 324A.022 and 324A.023 for a petition for creation of a district. (c) The commissioners court shall grant the petition and order the dissolution of the district if the court finds that the petition meets the requirements of this section and that the dissolution is in the county's best interests. (d) On dissolution of the district, the county assumes the district's property and other assets, debts and other liabilities, and obligations. SUBCHAPTER Z. MISCELLANEOUS PROVISIONS Sec. 324A.901. REQUIREMENTS FOR RENTAL OF WATER-ORIENTED RECREATIONAL EQUIPMENT. (a) This section applies only to the rental of water-oriented recreational equipment in a district. (b) A person may rent water-oriented recreational equipment only if each person who will use the equipment is listed on a written agreement for the rental of that equipment. SECTION 2. This Act takes effect October 1, 2013.