Texas 2015 - 84th Regular

Texas Senate Bill SB234 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R31123 JXC-D
2	2	By: Zaffirini S.B. No. 234
3	3	(Kuempel)
4	4	Substitute the following for S.B. No. 234: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation and operation of a park and recreation
10	10	district in counties that share a border on the San Marcos River and
11	11	to the authority of the district to collect fees and issue bonds;
12	12	creating a criminal offense and providing penalties.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Subtitle B, Title 10, Local Government Code, is
15	15	amended by adding Chapter 324A to read as follows:
16	16	CHAPTER 324A. PARK AND RECREATION DISTRICTS IN CERTAIN COUNTIES ON
17	17	SAN MARCOS RIVER
18	18	SUBCHAPTER A. GENERAL PROVISIONS
19	19	Sec. 324A.001. ELIGIBLE COUNTIES AND TERRITORY. (a) Two
20	20	counties that share a border on the San Marcos River may create a
21	21	district as provided by this chapter in all or part of the counties
22	22	to:
23	23	(1) conserve the natural resources in the district;
24	24	and
25	25	(2) improve the public health, safety, and welfare in
26	26	the district.
27	27	(b) The territory of a district created under this chapter
28	28	must include all of at least one county election precinct on each
29	29	side of the San Marcos River, except that the district territory
30	30	must exclude all territory located in a state park.
31	31	Sec. 324A.002. DEFINITIONS. In this chapter:
32	32	(1) "Board" means the board of directors of a park and
33	33	recreation district created under this chapter.
34	34	(2) "District" means a park and recreation district
35	35	created under this chapter.
36	36	(3) "Eligible county" means a county described by
37	37	Section 324A.001.
38	38	(4) "Fee" includes a toll or any other charge.
39	39	SUBCHAPTER B. CREATION OF PARK AND RECREATION DISTRICT
40	40	Sec. 324A.021. CREATION ELECTIONS REQUIRED. A district may
41	41	be created under this chapter only if:
42	42	(1) the commissioners court of each eligible county in
43	43	which the proposed district will be located:
44	44	(A) receives a written petition for the creation
45	45	of the district that:
46	46	(i) is signed by a number of the registered
47	47	voters who reside in the county equal to at least five percent of
48	48	the votes received in the county in the most recent gubernatorial
49	49	general election; and
50	50	(ii) includes an accurate description of
51	51	the territory to be included in the district by reference to county
52	52	election precinct boundaries, by metes and bounds, by lot and block
53	53	number if there is a recorded map or plat and survey of the area, or
54	54	by other sufficient legal description; or
55	55	(B) passes a motion favoring creation of the
56	56	district that includes an accurate description of the territory to
57	57	be included in the district by reference to county election
58	58	precinct boundaries, by metes and bounds, by lot and block number if
59	59	there is a recorded map or plat and survey of the area, or by other
60	60	sufficient legal description;
61	61	(2) the commissioners court of each county in which
62	62	the proposed district will be located approves the creation of the
63	63	district after a public hearing held to consider the creation of the
64	64	district; and
65	65	(3) the creation of the district is approved by the
66	66	voters as provided by Section 324A.024.
67	67	Sec. 324A.022. HEARING. (a) A commissioners court of an
68	68	eligible county that receives a petition or passes a motion under
69	69	Section 324A.021 shall hold a hearing on the creation of the
70	70	district.
71	71	(b) The commissioners court shall set a date for the hearing
72	72	that is after the 20th day but on or before the 40th day after the
73	73	date the petition is received or the passage of the motion, as
74	74	applicable, under Section 324A.021.
75	75	(c) The commissioners court shall publish in a newspaper of
76	76	general circulation in the county notice of the petition or motion
77	77	and the hearing date.
78	78	(d) The notice must be published at least once each week for
79	79	a period of two weeks before the hearing date.
80	80	(e) At the hearing, the commissioners court shall hear all
81	81	arguments for and against the creation of the district and shall
82	82	take evidence as in civil cases in the county court.
83	83	(f) The hearing may be adjourned from time to time on good
84	84	cause shown.
85	85	Sec. 324A.023. ORDER OF ELECTION. (a) After holding a
86	86	hearing under Section 324A.022, the commissioners court may approve
87	87	the creation of the district and order an election on the issue of
88	88	the creation of the district only if the court finds that:
89	89	(1) the petition, if any, was signed by the required
90	90	number of registered voters in the county;
91	91	(2) the district will serve the purposes prescribed by
92	92	Section 324A.001; and
93	93	(3) the territory of the proposed district includes at
94	94	least one county election precinct in an eligible county on each
95	95	side of the San Marcos River.
96	96	(b) The commissioners court's election order must provide
97	97	for the voters of the territory of the proposed district who reside
98	98	in the county to vote for or against a proposition to approve the
99	99	creation of the district.
100	100	(c) A commissioners court that orders an election under this
101	101	section shall notify the commissioners court of the other eligible
102	102	county in which the proposed district will be located of the order.
103	103	Sec. 324A.024. ELECTION; RESULT. (a) The election must be
104	104	held on the date of the first regularly scheduled countywide
105	105	election that follows the date of the order of the election and for
106	106	which there is sufficient time to comply with other requirements of
107	107	law.
108	108	(b) The commissioners courts of the counties in which the
109	109	proposed district will be located are not required to hold their
110	110	respective creation elections on the same day.
111	111	(c) The returns on the election shall be certified and the
112	112	results declared in the same manner as provided for other county
113	113	elections, except as provided by this section.
114	114	(d) A commissioners court that holds an election under this
115	115	section shall notify the commissioners court of the other county in
116	116	which the district is proposed to be located of the results of the
117	117	election, including the number of voters who voted for the
118	118	proposition and the number of voters who voted against the
119	119	proposition.
120	120	(e) After an election is held in the proposed district
121	121	territory of each eligible county, the commissioners court of each
122	122	county shall determine whether the majority of the voters of the
123	123	proposed district territory in that county voting in the election
124	124	voted for or against the proposition to approve the creation of the
125	125	district. The county commissioners courts jointly shall declare
126	126	the district created if a majority of the voters who voted in each
127	127	county voted for the proposition. Each commissioners court shall
128	128	enter in the court's minutes at the court's next meeting that the
129	129	voters of the county approved or did not approve the creation of the
130	130	district.
131	131	Sec. 324A.025. COSTS OF CREATION AND ORGANIZATION. The
132	132	costs necessarily incurred in the creation and organization of the
133	133	district may be paid from the district's revenue from any source.
134	134	SUBCHAPTER C. BOARD OF DIRECTORS OF PARK AND RECREATION DISTRICT
135	135	Sec. 324A.041. APPOINTMENT OF BOARD MEMBERS; TERMS. (a) A
136	136	district is governed by a board composed of seven members.
137	137	(b) The commissioners court of each county in which the
138	138	district is located shall appoint three members of the board.
139	139	(c) A municipality in the district may nominate a candidate
140	140	for the seventh board member position. The six board members
141	141	appointed under Subsection (b) shall select a seventh board member
142	142	from among the nominations or, if the board receives no
143	143	nominations, shall select a seventh board member.
144	144	(d) A commissioners court or the board shall file with the
145	145	county clerk of each county in which the district is located a
146	146	certificate of the appointment of each board member appointed by
147	147	the court or board. The certificate is conclusive evidence of the
148	148	proper appointment of the board member.
149	149	(e) Three members of the initial board serve one-year terms
150	150	and four members serve two-year terms. The members shall draw lots
151	151	to determine which members serve the one-year terms. Thereafter,
152	152	each board member is appointed for a term of two years from the date
153	153	of the board member's appointment.
154	154	(f) A board member may not serve more than four consecutive
155	155	full terms.
156	156	Sec. 324A.042. QUALIFICATIONS. (a) A board member must:
157	157	(1) be a citizen of the United States; and
158	158	(2) reside, own property, or own a business in the
159	159	district.
160	160	(b) A board member may not be an officer or employee of a
161	161	county in which the district is located or of a municipality in the
162	162	district.
163	163	(c) Not more than two board members may be owners,
164	164	operators, or employees of businesses that provide as their main
165	165	business the same specific good or service.
166	166	Sec. 324A.043. VACANCIES. A vacancy that occurs on the
167	167	board shall be filled for the unexpired term by appointment in the
168	168	manner in which the vacating board member was appointed.
169	169	Sec. 324A.044. OATH AND BOND. (a) Not later than the 30th
170	170	day after the date a board member is appointed, the member must
171	171	qualify by taking the official oath and by filing a good and
172	172	sufficient bond with the district.
173	173	(b) The bond must be:
174	174	(1) payable to the district;
175	175	(2) payable in an amount prescribed by the district of
176	176	$5,000 or more; and
177	177	(3) conditioned that the board member will faithfully
178	178	perform the duties of a board member, including the proper handling
179	179	of all money that comes into the board member's hands in the board
180	180	member's official capacity.
181	181	Sec. 324A.045. COMPENSATION AND REIMBURSEMENT. A board
182	182	member is not entitled to compensation but is entitled to
183	183	reimbursement for necessary expenses, including travel expenses,
184	184	incurred in performing the duties of a board member. A board
185	185	member's reimbursement for necessary expenses in excess of $250
186	186	must be approved by the board. A board member's approved expense
187	187	account shall be paid in due time by the board's check or warrant.
188	188	Sec. 324A.046. QUORUM; MAJORITY VOTE. (a) Five board
189	189	members constitute a quorum of the board.
190	190	(b) An affirmative vote of a majority of the membership of
191	191	the board is required for board action.
192	192	Sec. 324A.047. APPROVAL OF COMMISSIONERS COURT. (a) The
193	193	board is subject to the supervision of the commissioners courts of
194	194	the counties in which the district is located in the exercise of all
195	195	the board's rights, powers, and privileges and in the performance
196	196	of the board's duties.
197	197	(b) Not later than the 30th day after the date the board
198	198	acts, the commissioners courts may approve or disapprove the
199	199	board's action. If one of the courts disapproves the act, the act
200	200	is ineffective. Otherwise, the act becomes effective on the
201	201	earlier of the date each commissioners court approves the act or the
202	202	31st day after the date the board acted.
203	203	Sec. 324A.048. ORGANIZATION; MEETINGS. (a) Annually, the
204	204	board shall elect a president, a vice president, a secretary, and a
205	205	treasurer.
206	206	(b) The offices of secretary and treasurer may be held by
207	207	the same person. If either the secretary or the treasurer is absent
208	208	or unavailable, the president may appoint another board member to
209	209	act for and perform the duties of the absent or unavailable officer.
210	210	(c) The board shall set times for and hold regular meetings.
211	211	On the request of two or more board members, the board may hold a
212	212	special meeting at other times as necessary.
213	213	(d) The board shall hold meetings at a public place in a
214	214	county in which the district is located.
215	215	SUBCHAPTER D. POWERS AND DUTIES
216	216	Sec. 324A.061. DEPOSITORIES AND DISBURSEMENTS. (a) Money
217	217	and other funds belonging to or under control of the board are
218	218	public funds.
219	219	(b) The board shall select depositories for the money.
220	220	(c) A warrant or check for the withdrawal of money must be
221	221	signed by two persons authorized to sign a warrant or check by
222	222	resolution entered in the board's minutes.
223	223	Sec. 324A.062. ADMINISTRATION. (a) The board may employ a
224	224	manager and a secretary.
225	225	(b) The board shall determine the qualifications and set the
226	226	duties of employees.
227	227	(c) The board may call on the county attorney, district
228	228	attorney, or criminal district attorney of a county in which the
229	229	district is located for legal services the board requires. The
230	230	board may contract for and compensate the board's own legal staff.
231	231	(d) The district may maintain and operate an office.
232	232	(e) The board may acquire insurance for the district.
233	233	Sec. 324A.063. SEAL. The board shall adopt a seal to place
234	234	on each lease, deed, or other instrument usually executed under
235	235	seal and on other instruments as the board requires.
236	236	Sec. 324A.064. CONTRACTS. (a) The board may enter into
237	237	any contract that the board considers necessary or convenient to
238	238	carry out the purposes and powers granted by this chapter.
239	239	(b) If the contract is for an amount less than or equal to
240	240	$25,000, the board may enter into the contract without
241	241	advertisement. If the contract is for more than that amount, the
242	242	contract is subject to the bidding provisions applicable to county
243	243	contracts.
244	244	(c) To be effective, a contract must be:
245	245	(1) approved by board resolution;
246	246	(2) executed by the president or vice president; and
247	247	(3) attested by the secretary or treasurer.
248	248	Sec. 324A.065. SUITS. The board may sue and be sued in the
249	249	board's own name.
250	250	Sec. 324A.066. DISTRICT RULES AND ORDINANCES; CRIMINAL
251	251	PENALTY. (a) The board may adopt reasonable rules and ordinances
252	252	applicable to:
253	253	(1) the administration, enforcement, and collection
254	254	of district fees and the issuance, suspension, and cancellation of
255	255	revenue permits;
256	256	(2) littering and litter abatement on public water in
257	257	the district;
258	258	(3) activities that endanger the health and safety of
259	259	persons or property on public water in the district, including the
260	260	possession or consumption of alcohol by minors, subject to the
261	261	public's paramount right to navigate inland water; and
262	262	(4) conservation of the district's natural resources
263	263	and regulation of activities affecting the district's natural
264	264	resources.
265	265	(b) A program adopted under this section may require a
266	266	revenue permit holder to participate in a litter abatement program
267	267	where the permit holder issues a trash bag to a customer.
268	268	(c) A person who violates a rule or ordinance adopted under
269	269	this section commits an offense. An offense under this subsection
270	270	is a Class C misdemeanor.
271	271	Sec. 324A.067. ENFORCEMENT. (a) A police officer,
272	272	constable, sheriff, or other law enforcement officer with
273	273	jurisdiction in a county in which the district is located may arrest
274	274	a person who violates a district rule or ordinance, including a
275	275	revenue permit requirement, in the officer's, constable's, or
276	276	sheriff's county and carry out the prosecution of that person in the
277	277	proper court.
278	278	(b) The county attorney, district attorney, or criminal
279	279	district attorney of a county in which the district is located, or
280	280	an attorney retained by the board for this purpose, may bring an
281	281	action to enjoin a violation of a district rule or ordinance, and if
282	282	the board authorizes, may seek damages and attorney's fees based on
283	283	the violation, if the violation involves:
284	284	(1) the providing or offering of a rental or service
285	285	for which collection of a fee is required under Section 324A.092;
286	286	(2) the failure of a revenue permit holder to remit a
287	287	fee imposed under Section 324A.092 if the fee has been due for more
288	288	than 60 days; or
289	289	(3) the violation by a revenue permit holder of a
290	290	district rule or ordinance relating to an activity that endangers
291	291	the health or safety of a person or property in the district.
292	292	Sec. 324A.068. BOND. If the board brings an action to
293	293	enforce this subchapter or enjoin a violation of a district rule or
294	294	ordinance adopted under this subchapter, the board is not required
295	295	to post a bond.
296	296	Sec. 324A.069. HEALTH AND SAFETY SERVICES. The district
297	297	may provide for fire protection, law enforcement, or emergency
298	298	medical services in the district.
299	299	Sec. 324A.070. WATER QUALITY. The district may conduct a
300	300	program to improve water quality and sanitary conditions in the
301	301	district.
302	302	Sec. 324A.071. GRANTS AND GRATUITIES. To promote or
303	303	accomplish a purpose of this chapter, the board may:
304	304	(1) accept grants or gratuities in any form from any
305	305	source, including the United States government, this state, a state
306	306	or federal agency, a private or public corporation, or any other
307	307	person; or
308	308	(2) accept donations of money or other property.
309	309	Sec. 324A.072. DISTRICT AS TRUSTEE. To promote or
310	310	accomplish a purpose of this chapter, the district may act as
311	311	trustee of land, money, or other property.
312	312	Sec. 324A.073. MANAGEMENT PLAN; ANNUAL BUDGET; FILING.
313	313	(a) The board shall develop and approve a three-year master plan
314	314	for the management of the district.
315	315	(b) The board shall annually review and revise the master
316	316	plan during the budget process and shall file a copy of the master
317	317	plan and revisions with the county clerk of each county in which the
318	318	district is located.
319	319	(c) The board shall annually develop and approve a one-year
320	320	budget that must include the suggested revisions and additions to
321	321	the master plan.
322	322	(d) The board shall submit the annual budget to the
323	323	commissioners court of each county in which the district is located
324	324	for approval and shall file a copy with the county clerk.
325	325	Sec. 324A.074. NO EMINENT DOMAIN POWER. The district may
326	326	not exercise the power of eminent domain.
327	327	SUBCHAPTER E. FEES; BONDS; FINANCIAL PROVISIONS
328	328	Sec. 324A.091. NO AD VALOREM TAXES. The district may not
329	329	impose an ad valorem tax.
330	330	Sec. 324A.092. FEES FOR EQUIPMENT RENTALS AND SHUTTLE
331	331	SERVICE; REVENUE PERMITS; CRIMINAL PENALTY. (a) The district may
332	332	collect fees and issue revenue permits under this section in the
333	333	district to carry out any purposes prescribed by this chapter and to
334	334	pay the obligations and expenses of the district. The district may
335	335	not impose a fee other than a fee described by this section.
336	336	(b) The board by resolution may impose fees for the rental
337	337	of water-oriented recreational equipment intended for use on a
338	338	river in the district, including a canoe, tube, raft, boat, or
339	339	kayak, or for the provision of shuttle service in, or into or out
340	340	of, the district, including a service for river ingress and egress.
341	341	The board may impose different fee rates for different types of
342	342	rental equipment or services, except that a fee may not be imposed
343	343	at a rate greater than $3 per person:
344	344	(1) for each rental of water-oriented recreational
345	345	equipment; or
346	346	(2) if the person does not rent equipment described by
347	347	Subdivision (1), for each person using shuttle service.
348	348	(c) A fee imposed under this section is payable by the
349	349	purchaser or consumer of the item or service subject to the fee
350	350	except that if the person responsible for collecting the fee does
351	351	not comply with this chapter by collecting and remitting the fee to
352	352	the district, the person responsible for collecting the fee is
353	353	liable for the fee.
354	354	(d) A person who does not hold a revenue permit issued by the
355	355	board commits an offense if the person provides or offers for
356	356	compensation a rental or service if the price paid for the rental or
357	357	service is subject to a fee under this section. Each provision or
358	358	offer for compensation of the rental or service is a separate
359	359	offense. An offense under this subsection is a Class C misdemeanor,
360	360	unless it is shown at the trial of the defendant that the defendant
361	361	has previously been convicted of an offense under this subsection,
362	362	in which case the offense is a Class B misdemeanor.
363	363	(e) A person who holds a revenue permit issued by the
364	364	district shall collect the fees imposed under this section and
365	365	shall report and remit the collected fees to the district as the
366	366	district requires.
367	367	(f) If a revenue permit holder remits fees imposed under
368	368	this section after the due date but on or before the 30th day after
369	369	the due date, the revenue permit holder shall pay the district a
370	370	penalty of five percent of the amount of fees due. If the revenue
371	371	permit holder remits the fees after the 30th day after the due date,
372	372	the revenue permit holder shall pay the district a penalty of 10
373	373	percent of the amount of fees due.
374	374	(g) Delinquent fees and accrued penalties draw interest at
375	375	the rate of 10 percent a year beginning on the 60th day after the
376	376	date the fees imposed under this section were due.
377	377	(h) If a revenue permit holder does not collect and remit a
378	378	fee imposed under this section, the board may suspend, revoke, or
379	379	cancel the holder's revenue permit and pursue any other remedy the
380	380	district may have to collect the fee under civil or criminal law.
381	381	(i) The board may settle a claim for a penalty or interest
382	382	accrued on a fee imposed under this section if the board finds that
383	383	the revenue permit holder exercised reasonable diligence to comply
384	384	with this chapter.
385	385	(j) In the same manner that this section applies to a person
386	386	who provides or offers a rental or service for compensation in the
387	387	district, this section applies to a person who resides or does
388	388	business outside the district but:
389	389	(1) provides or offers a rental or service for
390	390	compensation in the district; and
391	391	(2) regularly transports customers into or out of the
392	392	district for river or parking access.
393	393	Sec. 324A.093. FEE EXEMPTION. The district may not collect
394	394	a fee on a transaction between a person and an interest operated in
395	395	the district by:
396	396	(1) the United States;
397	397	(2) a state park; or
398	398	(3) a nonprofit youth-oriented organization.
399	399	Sec. 324A.094. REVENUE BOND ELECTION. (a) Revenue bonds
400	400	may not be issued by the district until authorized by a majority
401	401	vote of the district's voters voting at an election called and held
402	402	for that purpose.
403	403	(b) Not later than two years after the date the district is
404	404	declared created under Section 324A.024, the board may order a bond
405	405	election. Regardless of the requirements of Section 324A.047(b),
406	406	the order is not effective unless approved by the commissioners
407	407	court of each county in which the district is located. Except as
408	408	provided by this section, the election shall be held in the manner
409	409	provided by the Election Code.
410	410	(c) At the election, the ballot must be printed to provide
411	411	for voting for or against the issuance of revenue bonds.
412	412	(d) If a majority of the votes cast at the election favor the
413	413	issuance of the bonds, the bonds may be issued by the board. If a
414	414	majority of the votes cast at the election do not favor issuance of
415	415	the bonds, the bonds may not be issued.
416	416	Sec. 324A.095. REVENUE BONDS. (a) The district may issue
417	417	not more than $300,000 in revenue bonds and may issue the bonds only
418	418	to provide funds for the initial operation of the district. The
419	419	bonds must be approved at an election called under Section
420	420	324A.094.
421	421	(b) The district may make the bonds payable out of any
422	422	revenue of the district.
423	423	(c) The bonds must be:
424	424	(1) issued in the name of the district;
425	425	(2) signed by the county judge of each county in which
426	426	the district is located; and
427	427	(3) attested by the county clerk and ex officio clerk
428	428	of the commissioners court of each county in which the district is
429	429	located.
430	430	(d) The seal of the commissioners court of each county in
431	431	which the district is located must be impressed on the bonds.
432	432	(e) The bonds must mature serially or otherwise in not more
433	433	than 40 years and may be sold at a price and under terms determined
434	434	by the board to be the most advantageous reasonably obtainable.
435	435	(f) The resolution authorizing the issuance of the bonds may
436	436	contain provisions for redemption of the bonds before their
437	437	respective maturity dates at prices and times prescribed in the
438	438	resolution. Except for rights of redemption expressly reserved in
439	439	the resolution and in the revenue bonds, the bonds are not subject
440	440	to redemption before maturity.
441	441	(g) The bonds may be made payable at times and at places,
442	442	inside or outside the state, prescribed in the resolution.
443	443	(h) The bonds may be made registrable as to principal or as
444	444	to both principal and interest.
445	445	Sec. 324A.096. BOND ANTICIPATION NOTES. (a) If funds are
446	446	not available to pay the principal of or interest on bonds issued by
447	447	the district or to pay other obligations of the district, the board
448	448	may declare an emergency and may issue negotiable bond anticipation
449	449	notes to borrow the money needed. The bond anticipation notes may
450	450	bear interest at a rate that does not exceed the maximum rate
451	451	provided by Chapter 1204, Government Code, and must mature within
452	452	one year after their date of issuance.
453	453	(b) Bond anticipation notes may also be issued for any
454	454	purpose for which bonds of the district have been voted or to refund
455	455	previously issued bond anticipation notes.
456	456	(c) Bond anticipation notes issued under this section must
457	457	be authorized by resolution of the board, subject to approval by the
458	458	commissioners courts under Section 324A.047, and must be executed
459	459	by the president of the board and attested by the secretary of the
460	460	board.
461	461	Sec. 324A.097. REFUNDING BONDS. The district may issue
462	462	refunding bonds under Chapter 1207, Government Code.
463	463	Sec. 324A.098. REPAYMENT OF BONDS THROUGH FEE REVENUE.
464	464	(a) This section applies only to fees charged by the district
465	465	while the district has outstanding bonds or interest.
466	466	(b) The board shall charge or require the payment of fees
467	467	authorized by Section 324A.092 while the principal of or interest
468	468	on district bonds is outstanding.
469	469	(c) Subject to the maximum fee amount prescribed by Section
470	470	324A.092(b), the board shall set the fees in amounts that will yield
471	471	revenues at least sufficient to pay district expenses, to comply
472	472	with the covenants in the bond resolution, and to make payments
473	473	prescribed by the bond resolution for debt service. "Debt
474	474	service," as defined by the bond resolution, may include the
475	475	payment of principal and interest as each matures, the
476	476	establishment and maintenance of funds for extensions and
477	477	improvements, an operating reserve, and an interest and sinking
478	478	fund reserve.
479	479	Sec. 324A.099. FINANCIAL STATEMENT; BUDGET. (a) On or
480	480	before February 1 of each year, the board shall prepare and file
481	481	with the officer responsible for the county budget for each county
482	482	in which the district is located a complete financial statement
483	483	showing the financial status of the district and the district's
484	484	properties, funds, and indebtedness.
485	485	(b) The financial statement must be prepared in accordance
486	486	with standards adopted by the Governmental Accounting Standards
487	487	Board and must show separately all information concerning:
488	488	(1) leases, promissory notes, and other indebtedness
489	489	of the district; and
490	490	(2) fee revenue of the district.
491	491	(c) At the time the financial statement is filed, the board
492	492	shall file with the commissioners court of each county in which the
493	493	district is located a proposed budget of the board's needs for the
494	494	next fiscal year. The proposed budget shall include items that:
495	495	(1) the board is unable to finance from the district's
496	496	revenues; and
497	497	(2) the board requests purchase of with funds from
498	498	that county.
499	499	(d) The officer responsible for the county budget for each
500	500	county in which the district is located shall include the
501	501	district's proposed budget on the calendar for the next regularly
502	502	scheduled meeting of the commissioners court. As part of the
503	503	county's tentative budget, the items certified by the board are
504	504	subject to state law relating to county budgets.
505	505	(e) The county auditor of a county in which the district is
506	506	located, after consultation with or notification to the county
507	507	auditor of the other county in which the district is located, may
508	508	conduct a general audit and issue a financial statement of the
509	509	district at times the auditor considers appropriate.
510	510	Sec. 324A.100. DISPOSITION OF REVENUE. A district may use
511	511	district fee revenue and other revenue for any purpose authorized
512	512	by this chapter or other law for the benefit of the district.
513	513	SUBCHAPTER F. INCORPORATION; ANNEXATION; DISSOLUTION
514	514	Sec. 324A.121. EFFECT OF INCORPORATION OR ANNEXATION. The
515	515	incorporation of a political subdivision or the annexation of any
516	516	part of a district by a political subdivision does not affect the
517	517	district's boundaries.
518	518	Sec. 324A.122. DISANNEXATION. (a) The voters of or county
519	519	commissioners for any area in a district may file a petition with
520	520	the board to disannex the area from the district.
521	521	(b) The petition must contain an accurate description of the
522	522	area proposed for disannexation by reference to county election
523	523	precinct boundaries, by metes and bounds, by lot and block number if
524	524	there is a recorded map or plat and survey of the area, or by other
525	525	sufficient legal description.
526	526	(c) The petition must be signed by at least one percent of
527	527	the registered voters in the area proposed for disannexation or by
528	528	each county commissioner for the area proposed for disannexation.
529	529	(d) The board shall give notice of a hearing on the petition
530	530	and hold a hearing in the manner prescribed by Section 324A.022 for
531	531	a commissioners court hearing.
532	532	(e) The board may grant the petition and by order disannex
533	533	the territory if the board finds that:
534	534	(1) the petition meets the requirements of this
535	535	section;
536	536	(2) the district's projected revenue from all sources,
537	537	except from the area proposed for disannexation, is sufficient to
538	538	pay the district's outstanding debts; and
539	539	(3) the disannexation is in the district's best
540	540	interests.
541	541	(f) Except as provided by Section 324A.124(d), if the Parks
542	542	and Wildlife Department creates a state park that includes
543	543	territory in the district, the board shall by order disannex the
544	544	overlapping territory from the district.
545	545	(g) The disannexation takes effect on the date stated by the
546	546	order or, if the order does not state a date, on the date the order
547	547	is issued.
548	548	Sec. 324A.123. DISSOLUTION OF DISTRICT BY COMMISSIONERS
549	549	COURTS. (a) The commissioners courts of each county in which the
550	550	district is located by joint order may dissolve the district. The
551	551	order may be adopted:
552	552	(1) on a motion by a commissioners court; or
553	553	(2) after the filing of a written petition with each
554	554	county in which the district is located signed by a number of the
555	555	registered voters who reside in the district equal to at least 10
556	556	percent of the votes received in the district in the most recent
557	557	gubernatorial general election.
558	558	(b) Each commissioners court that receives a petition shall
559	559	give notice of a hearing on the petition or motion and hold a
560	560	hearing in the manner prescribed by Section 324A.022.
561	561	(c) The commissioners courts shall jointly grant a petition
562	562	and order the dissolution of the district if the courts find that
563	563	the petition, if any, meets the requirements of this section and
564	564	that the dissolution is in the best interests of the counties.
565	565	Sec. 324A.124. DISSOLUTION OF DISTRICT BY BOARD. (a) The
566	566	board may by order dissolve the district. The order may be adopted:
567	567	(1) on the board's own motion; or
568	568	(2) after the filing of a written petition signed by a
569	569	number of the registered voters who reside in the district equal to
570	570	at least 10 percent of the votes received in the district in the
571	571	most recent gubernatorial general election.
572	572	(b) The board shall give notice of a hearing on the petition
573	573	or motion and hold a hearing in the manner prescribed by Section
574	574	324A.022 for a commissioners court hearing.
575	575	(c) After the hearing, the board shall order the dissolution
576	576	of the district if the board finds that the petition, if any, meets
577	577	the requirements of this section and that the dissolution is in the
578	578	best interests of the counties in which the district is located.
579	579	(d) The board shall by order dissolve the district if the
580	580	Parks and Wildlife Department creates a state park that includes:
581	581	(1) all of the district's territory located in one of
582	582	the counties in which the district is located; or
583	583	(2) all of the district's territory.
584	584	Sec. 324A.125. DISPOSITION OF DISTRICT ASSETS AND DEBTS.
585	585	(a) If the district is dissolved, the board shall administer the
586	586	assets and debts until all money has been disposed of and all
587	587	district debts have been paid or settled.
588	588	(b) The district is dissolved when all money has been
589	589	disposed of and all district debts have been paid or settled.
590	590	SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
591	591	Sec. 324A.901. REQUIREMENTS FOR RENTAL OF WATER-ORIENTED
592	592	RECREATIONAL EQUIPMENT. (a) This section applies only to the
593	593	rental of water-oriented recreational equipment in a district.
594	594	(b) A person may rent water-oriented recreational equipment
595	595	only if each person who will use the equipment is listed on a
596	596	written agreement for the rental of that equipment.
597	597	SECTION 2. This Act takes effect immediately if it receives
598	598	a vote of two-thirds of all the members elected to each house, as
599	599	provided by Section 39, Article III, Texas Constitution. If this
600	600	Act does not receive the vote necessary for immediate effect, this
601	601	Act takes effect September 1, 2015.