Texas 2017 85th Regular

Texas Senate Bill SB965 Introduced / Bill

Filed 02/21/2017

Download
.pdf .doc .html
                    85R10151 JXC-D
 By: Zaffirini S.B. No. 965


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation and operation of a park and recreation
 district in counties that share a border on the San Marcos River and
 to the authority of the district to collect fees and issue bonds;
 creating a criminal offense.
 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 CERTAIN COUNTIES ON
 SAN MARCOS RIVER
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 324A.001.  ELIGIBLE COUNTIES AND TERRITORY; PURPOSE.
 (a) Two counties that share a border on the San Marcos River may
 create a district as provided by this chapter in all or part of the
 counties to:
 (1)  conserve the natural resources in the district;
 and
 (2)  improve the public health, safety, and welfare in
 the district.
 (b)  The territory of a district created under this chapter
 must include all of at least one county election precinct on each
 side of the San Marcos River, except that the district territory
 must exclude all territory located in a state park.
 Sec. 324A.002.  DEFINITIONS. In this chapter:
 (1)  "Board" means the board of directors of a park and
 recreation district created under this chapter.
 (2)  "District" means a park and recreation district
 created under this chapter.
 (3)  "Eligible county" means a county described by
 Section 324A.001.
 (4)  "Fee" includes a toll or any other charge.
 SUBCHAPTER B.  CREATION OF PARK AND RECREATION DISTRICT
 Sec. 324A.021.  CREATION ELECTIONS REQUIRED. A district may
 be created under this chapter only if:
 (1)  the commissioners court of each eligible county in
 which the proposed district will be located:
 (A)  receives a written petition for the creation
 of the district that:
 (i)  is 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; and
 (ii)  includes an accurate description of
 the territory to be included in the district by reference to county
 election precinct boundaries, by metes and bounds, by lot and block
 number if there is a recorded map or plat and survey of the area, or
 by other sufficient legal description; or
 (B)  passes a motion favoring creation of the
 district that includes an accurate description of the territory to
 be included in the district by reference to county election
 precinct boundaries, by metes and bounds, by lot and block number if
 there is a recorded map or plat and survey of the area, or by other
 sufficient legal description;
 (2)  the commissioners court of each county in which
 the proposed district will be located approves the creation of the
 district after a public hearing held to consider the creation of the
 district; and
 (3)  the creation of the district is approved by the
 voters as provided by Section 324A.024.
 Sec. 324A.022.  HEARING. (a)  A commissioners court of an
 eligible county that receives a petition or passes a motion under
 Section 324A.021 shall hold a hearing on the creation of the
 district.
 (b)  The commissioners court shall set a date for the hearing
 that is after the 20th day but on or before the 40th day after the
 date the petition is received or the passage of the motion, as
 applicable, under Section 324A.021.
 (c)  The commissioners court shall publish in a newspaper of
 general circulation in the county notice of the petition or motion
 and the hearing date.
 (d)  The notice must be published at least once each week for
 a period of two weeks before the hearing date.
 (e)  At the hearing, the commissioners court shall hear all
 arguments for and against the creation of the district and shall
 take evidence as in civil cases in the county court.
 (f)  The hearing may be adjourned from time to time on good
 cause shown.
 Sec. 324A.023.  ORDER OF ELECTION. (a)  After holding a
 hearing under Section 324A.022, the commissioners court may approve
 the creation of the district and order an election on the issue of
 the creation of the district only if the court finds that:
 (1)  the petition, if any, was 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 territory of the proposed district includes at
 least one county election precinct in an eligible county on each
 side of the San Marcos River.
 (b)  The commissioners court's election order must provide
 for the voters of the territory of the proposed district who reside
 in the county to vote for or against a proposition to approve the
 creation of the district.
 (c)  A commissioners court that orders an election under this
 section shall notify the commissioners court of the other eligible
 county in which the proposed district will be located of the order.
 Sec. 324A.024.  ELECTION; RESULT. (a)  The election must 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 commissioners courts of the counties in which the
 proposed district will be located are not required to hold their
 respective creation elections on the same day.
 (c)  The returns on the election shall be certified and the
 results declared in the same manner as provided for other county
 elections, except as provided by this section.
 (d)  A commissioners court that holds an election under this
 section shall notify the commissioners court of the other county in
 which the district is proposed to be located of the results of the
 election, including the number of voters who voted for the
 proposition and the number of voters who voted against the
 proposition.
 (e)  After an election is held in the proposed district
 territory of each eligible county, the commissioners court of each
 county shall determine whether the majority of the voters of the
 proposed district territory in that county voting in the election
 voted for or against the proposition to approve the creation of the
 district. The county commissioners courts jointly shall declare
 the district created if a majority of the voters who voted in each
 county voted for the proposition. Each commissioners court shall
 enter in the court's minutes at the court's next meeting that the
 voters of the county approved or did not approve the creation of the
 district.
 Sec. 324A.025.  COSTS OF CREATION AND ORGANIZATION. (a) The
 costs necessarily incurred in the creation and organization of the
 district may be paid from the district's revenue from any source.
 (b)  The district may borrow money on terms and conditions
 determined by the board to pay costs incurred in the creation and
 organization of the district.
 SUBCHAPTER C.  BOARD OF DIRECTORS OF PARK AND RECREATION DISTRICT
 Sec. 324A.041.  APPOINTMENT OF BOARD MEMBERS; TERMS. (a)  A
 district is governed by a board composed of seven members.
 (b)  The commissioners court of each county in which the
 district is located shall appoint three members of the board.
 (c)  A municipality in the district may nominate a candidate
 for the seventh board member position.  The six board members
 appointed under Subsection (b) shall appoint a seventh board member
 from among the nominations or, if the board receives no
 nominations, shall appoint a seventh board member.
 (d)  A commissioners court shall file with the county clerk
 of each county in which the district is located a certificate of the
 appointment of each board member appointed by the court. The board
 shall file with the county clerk of each county in which the
 district is located a certificate of the appointment of each board
 member appointed by the board. A certificate is conclusive
 evidence of the proper appointment of the board member.
 (e)  Before appointing a board member who succeeds an initial
 board member, the commissioners court of a county shall request
 from the district a report on the board members serving at that
 time, which must include each member's qualifications to serve on
 the board, occupation, and residence and any relevant demographic
 information. The district shall submit the report in a timely
 manner.
 (f)  Three members of the initial board serve one-year terms
 and four members serve two-year terms. The members shall draw lots
 to determine which members serve the one-year terms. Thereafter,
 each board member is appointed for a term of two years from the date
 of the board member's appointment.
 (g)  A board member may not serve more than four consecutive
 full terms.
 Sec. 324A.042.  QUALIFICATIONS.  (a)  A board member must:
 (1)  be a citizen of the United States; and
 (2)  reside in a county in which the district is
 located.
 (b)  A board member may not be an officer or employee of a
 county in which the district is located or of a municipality in the
 district.
 (c)  At least four board members must reside, own property,
 or own a business in the district.
 (d)  Not more than three board members may be owners,
 operators, or employees of businesses that provide as their main
 business the same specific good or service.
 Sec. 324A.043.  VACANCIES. A vacancy that occurs on the
 board shall be filled for the unexpired term by appointment in the
 manner in which the vacating board member was appointed.
 Sec. 324A.044.  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 district.
 (b)  The bond must be:
 (1)  payable to the district;
 (2)  payable in an amount prescribed by the district 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.045.  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 board. A board member's approved expense
 account shall be paid in due time by the board's check or warrant.
 Sec. 324A.046.  QUORUM; MAJORITY VOTE. (a) Four board
 members constitute a quorum of the board.
 (b)  An affirmative vote of four members is required for
 board action.
 Sec. 324A.047.  APPROVAL OF COMMISSIONERS COURT. (a)  The
 board is subject to the supervision of the commissioners courts of
 the counties in which the district is located 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 courts may approve or disapprove the
 board's action. If one of the courts disapproves the act, the act
 is ineffective. Otherwise, the act becomes effective on the
 earlier of the date each commissioners court approves the act or the
 31st day after the date the board acted.
 Sec. 324A.048.  ORGANIZATION; MEETINGS. (a)  Annually, the
 board shall elect a president, a vice president, a secretary, and a
 treasurer.
 (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 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.  ADMINISTRATION. (a)  The board may employ a
 manager and a secretary.
 (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 of a county in which the
 district is located for legal services the board requires. The
 board may contract for and compensate the board's own legal staff.
 (d)  The district may maintain and operate an office.
 (e)  The board may acquire insurance for the district.
 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.
 (b)  If the contract is for an amount less than or equal to
 $25,000, 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.  GENERAL DISTRICT POWERS. The district has
 all powers necessary to accomplish the purposes for which the
 district was created.
 Sec. 324A.067.  DISTRICT RULES AND ORDINANCES; CRIMINAL
 PENALTY. (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)  noise abatement in the district;
 (3)  traffic control in the district;
 (4)  littering and litter abatement on public water in
 the district, including the possession and disposition of glass
 containers;
 (5)  activities that endanger the health, safety, or
 welfare of persons or property on public water in the district,
 subject to the public's paramount right to navigate inland water;
 and
 (6)  conservation of the district's natural resources
 and regulation of activities affecting the district's natural
 resources.
 (b)  The district may not adopt a rule or ordinance that
 would prevent a reasonably prudent person from operating a business
 that the person operated immediately before the rule or ordinance
 was adopted.
 (c)  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.
 Sec. 324A.068.  ENFORCEMENT. (a) A police officer,
 constable, sheriff, or other law enforcement officer with
 jurisdiction in a county in which the district is located may arrest
 a person who violates a district rule or ordinance, including a
 revenue permit requirement, in the officer's, constable's, or
 sheriff's county and carry out the prosecution of that person in the
 proper court.
 (b)  The district may contract for or employ its own peace
 officers with power to make arrests when necessary to prevent or
 abate the commission of any offense against the rules or ordinances
 of the district.
 (c)  A peace officer contracted for by the district,
 individually or through a county, sheriff, constable, or
 municipality, is an independent contractor, and the district is
 responsible for the acts or omissions of the peace officer only to
 the extent provided by law for other independent contractors.
 (d)  A law enforcement agency operating under a district
 contract shall submit to the district a monthly report that
 includes:
 (1)  the number of citations issued and arrests made by
 the peace officers of the agency in the district; and
 (2)  the types of violations for which the citations
 were issued and arrests made.
 (e)  The county attorney, district attorney, or criminal
 district attorney of a county in which the district is located, or
 an attorney retained by the board for this purpose, may bring an
 action to enjoin a violation of a district rule or ordinance, 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 rental or service
 for which collection of a fee is required under Section 324A.092;
 (2)  the failure of a revenue permit holder to remit a
 fee imposed under Section 324A.092 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, safety, or welfare of a person or property in the
 district.
 Sec. 324A.069.  DISPOSITION OF FINES. (a) A justice of the
 peace, a clerk of any court, or any other officer of this state
 receiving any fine imposed by a court on a person who was issued a
 citation or arrested for a violation by a peace officer operating
 under a contract with the district at the time of the violation
 shall:
 (1)  send 75 percent of the fine to the district and 25
 percent of the fine to the county in which the court is located; and
 (2)  note the docket number of the case, the name of the
 person fined, and the law, rule, or ordinance violated.
 (b)  All costs of the court shall be retained by the court and
 deposited as other fees in the proper fund.
 Sec. 324A.070.  BOND. If the board brings an action to
 enforce this subchapter or enjoin a violation of a district rule or
 ordinance adopted under this subchapter, the board is not required
 to post a bond.
 Sec. 324A.071.  FIRE AND MEDICAL SERVICES. The district may
 provide for fire protection and emergency medical services in the
 district.
 Sec. 324A.072.  WATER QUALITY; WASTE DISPOSAL. The district
 may conduct a program to improve water quality, sanitary
 conditions, or waste disposal in the district, including a program
 to provide trash bags to patrons of revenue permit holders.
 Sec. 324A.073.  CUSTOMER IDENTIFICATION. (a) The district
 may require revenue permit holders to:
 (1)  ask customers to provide a driver's license,
 personal identification certificate, military identification card,
 or passport for the purpose of identifying customers who are 21
 years of age or older; and
 (2)  provide wristbands or another method of
 identification to customers who are 21 years of age or older.
 (b)  If the district imposes identification requirements
 under Subsection (a):
 (1)  the district may not require a revenue permit
 holder to hold a permit required by the Alcoholic Beverage Code;
 (2)  a revenue permit holder is not responsible for
 determining whether identification presented by a customer is
 valid; and
 (3)  a revenue permit holder is not liable in a suit for
 damages for negligent performance or nonperformance of the
 requirements.
 (c)  The district may require revenue permit holders to
 ensure that each person who will use water-oriented recreational
 equipment rented from the permit holder is listed on a written
 agreement for the rental of that equipment.
 (d)  A violation of a requirement adopted under this section
 is not an offense.
 Sec. 324A.074.  GRANTS AND GRATUITIES. To promote or
 accomplish a purpose of this chapter, the board may:
 (1)  accept grants or gratuities in any form from any
 source, including the United States government, this state, a
 private or public corporation, or any other person; or
 (2)  accept donations of money or other personal
 property.
 Sec. 324A.075.  MANAGEMENT PLAN; ANNUAL BUDGET; FILING.
 (a)  The board shall develop and approve a three-year master plan
 for the management of the district.
 (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 of each county in which the
 district is located.
 (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 of each county in which the district is located
 for approval and shall file a copy with the county clerk.
 Sec. 324A.076.  CONTRIBUTIONS FOR ROADS. If the board has
 excess revenue, the board may make a contribution from the excess
 revenue to the general fund of a county in which the district is
 located or to the general fund of a municipality for the purposes of
 construction, improvement, or maintenance of a road that leads to
 or is in the district.
 Sec. 324A.077.  NO PROMOTION. The district may not promote
 or advertise for a specific recreational river activity.
 Sec. 324A.078.  NO EMINENT DOMAIN POWER.  The district may
 not exercise the power of eminent domain.
 SUBCHAPTER E.  FEES; BONDS; FINANCIAL PROVISIONS
 Sec. 324A.091.  NO AD VALOREM TAXES. The district may not
 impose an ad valorem tax.
 Sec. 324A.092.  FEES FOR EQUIPMENT RENTALS AND SHUTTLE
 SERVICE; REVENUE PERMITS; CRIMINAL PENALTY. (a)  The district may
 collect fees and issue revenue permits under this section in the
 district to carry out any purposes prescribed by this chapter and to
 pay the obligations and expenses of the district. The district may
 not impose a fee other than a fee described by this section.
 (b)  The board by resolution may impose fees for the rental
 of water-oriented recreational equipment intended for use on a
 river in the district, including a canoe, tube, raft, boat, or
 kayak, or for the provision of shuttle service in, or into or out
 of, the district, including a service for river ingress and egress.
 The board may impose different fee rates for different types of
 rental equipment or services, except that a fee may not be imposed
 at a rate greater than $4 per person:
 (1)  for each rental of water-oriented recreational
 equipment; or
 (2)  if the person does not rent equipment described by
 Subdivision (1), for each person using shuttle service.
 (c)  A fee imposed under this section is payable by the
 purchaser or consumer of the item or service 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 commits an offense if the person provides or offers for
 compensation a rental or service if the rental or service is subject
 to a fee under this section.  Each provision or offer for
 compensation of the rental or service 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.
 (e)  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.
 (f)  If a revenue permit holder remits fees imposed under
 this section 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.
 (g)  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 imposed under this section were due.
 (h)  If a revenue permit holder does not collect and remit a
 fee imposed under this section, the board may pursue any remedy the
 district may have to collect the fee under civil or criminal law.
 (i)  The board may settle a claim for a penalty or interest
 accrued on a fee imposed under this section if the board finds that
 the revenue permit holder exercised reasonable diligence to comply
 with this chapter.
 (j)  A revenue permit holder shall:
 (1)  maintain records of fee receipts, monthly gross
 income from fees collected, and written rental agreements for at
 least five years after the date of the associated transaction; and
 (2)  allow the district to inspect the records.
 (k)  A revenue permit holder's records are subject to
 inspection and audit by the district or a certified public
 accountant representing the district.
 (l)  The board may suspend, revoke, or cancel a revenue
 permit if the board finds that the permit holder has violated this
 chapter, a district rule or ordinance, or a district requirement
 adopted under this chapter.
 (m)  In the same manner that this section applies to a person
 who provides or offers a rental or service for compensation in the
 district, this section applies to a person who resides or does
 business outside the district but:
 (1)  provides or offers a rental or service for
 compensation in the district; and
 (2)  regularly transports customers into or out of the
 district for river or parking access.
 Sec. 324A.093.  FEE EXEMPTION. The district may not collect
 a fee on a transaction between a person and an interest operated in
 the district by:
 (1)  the United States; or
 (2)  a state park.
 Sec. 324A.094.  REVENUE BOND ELECTION. (a)  Revenue bonds
 may not be issued by the district until authorized by a majority
 vote of the district's voters voting at an election called and held
 for that purpose.
 (b)  The board may order a bond election. Regardless of the
 requirements of Section 324A.047(b), the order is not effective
 unless approved by the commissioners court of each county in which
 the district is located. Except as provided by this section, the
 election shall be held in the manner provided by the Election Code.
 (c)  At the election, the ballot must be printed to provide
 for voting for or against the issuance of revenue bonds.
 (d)  If a majority of the votes cast at the election favor the
 issuance of the bonds, the bonds may be issued by the board.  If a
 majority of the votes cast at the election do not favor issuance of
 the bonds, the bonds may not be issued.
 Sec. 324A.095.  REVENUE BONDS. (a)  The district may make
 revenue bonds payable out of any revenue of the district.
 (b)  The bonds must be:
 (1)  issued in the name of the district;
 (2)  signed by the county judge of each county in which
 the district is located; and
 (3)  attested by the county clerk and ex officio clerk
 of the commissioners court of each county in which the district is
 located.
 (c)  The seal of the commissioners court of each county in
 which the district is located must be impressed on the bonds.
 (d)  The bonds must mature serially or otherwise in not more
 than 40 years and may be sold at a price and under terms determined
 by the board to be the most advantageous reasonably obtainable.
 (e)  The resolution authorizing the issuance of the bonds may
 contain provisions for redemption of the bonds before their
 respective maturity dates at prices and times prescribed in the
 resolution. Except for rights of redemption expressly reserved in
 the resolution and in the revenue bonds, the bonds are not subject
 to redemption before maturity.
 (f)  The bonds may be made payable at times and at places,
 inside or outside the state, prescribed in the resolution.
 (g)  The bonds may be made registrable as to principal or as
 to both principal and interest.
 Sec. 324A.096.  BOND ANTICIPATION NOTES. (a)  If funds are
 not available to pay the principal of or interest on bonds issued by
 the district or to pay other obligations of the district, the board
 may declare an emergency and may issue negotiable bond anticipation
 notes to borrow the money needed. The bond anticipation notes may
 bear interest at a rate that does not exceed the maximum rate
 provided by Chapter 1204, Government Code, and must mature within
 one year after their date of issuance.
 (b)  Bond anticipation notes may also be issued for any
 purpose for which bonds of the district have been voted or to refund
 previously issued bond anticipation notes.
 (c)  Bond anticipation notes issued under this section must
 be authorized by resolution of the board, subject to approval by the
 commissioners courts under Section 324A.047, and must be executed
 by the president of the board and attested by the secretary of the
 board.
 Sec. 324A.097.  REFUNDING BONDS. The district may issue
 refunding bonds under Chapter 1207, Government Code.
 Sec. 324A.098.  REPAYMENT OF DEBT THROUGH FEE REVENUE.
 (a)  This section applies only to fees charged by the district
 while the district has outstanding loans, bonds, or interest.
 (b)  The board shall charge or require the payment of fees
 authorized by Section 324A.092 while the principal of or interest
 on district bonds is outstanding.
 (c)  Subject to the maximum fee amount prescribed by Section
 324A.092(b), the board shall set the fees in amounts that will yield
 revenues at least sufficient to pay district expenses, to comply
 with the covenants in the bond resolution, and to make payments
 prescribed by the bond resolution for debt service. "Debt
 service," as defined by the bond resolution, may include the
 payment of principal and interest as each matures, the
 establishment and maintenance of funds for extensions and
 improvements, an operating reserve, and an interest and sinking
 fund reserve.
 Sec. 324A.099.  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 for each county
 in which the district is located 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 of each county in which the
 district is located 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 funds from
 that county.
 (d)  The officer responsible for the county budget for each
 county in which the district is located 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 of a county in which the district is
 located, after consultation with or notification to the county
 auditor of the other county in which the district is located, may
 conduct a general audit and issue a financial statement of the
 district at times the auditor considers appropriate.
 Sec. 324A.100.  DISPOSITION OF REVENUE. A district may use
 district fee revenue and other revenue for any purpose authorized
 by this chapter or other law for the benefit of the district.
 SUBCHAPTER F.  INCORPORATION; ANNEXATION; DISSOLUTION
 Sec. 324A.121.  EFFECT OF INCORPORATION OR ANNEXATION. The
 incorporation of a political subdivision or the annexation of any
 part of a district by a political subdivision does not affect the
 district's boundaries.
 Sec. 324A.122.  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 by reference to county election
 precinct boundaries, by metes and bounds, by lot and block number if
 there is a recorded map or plat and survey of the area, or by other
 sufficient legal description.
 (c)  The petition must be signed by at least five 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 give notice of a hearing on the petition
 and hold a hearing in the manner prescribed by Section 324A.022 for
 a commissioners court hearing.
 (e)  The board may grant the petition and by order disannex
 the territory if the board finds that:
 (1)  the petition meets the requirements of this
 section;
 (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; and
 (3)  the disannexation is in the district's best
 interests.
 (f)  Except as provided by Section 324A.124(d), if a state
 park is created that includes territory in the district, the board
 shall by order disannex the overlapping territory from the
 district.
 (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.123.  DISSOLUTION OF DISTRICT BY COMMISSIONERS
 COURTS. (a)  The commissioners courts of each county in which the
 district is located by joint order may dissolve the district. The
 order may be adopted:
 (1)  on a motion by a commissioners court; or
 (2)  after the filing of a written petition with each
 county in which the district is located 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)  Each commissioners court that receives a petition shall
 give notice of a hearing on the petition or motion and hold a
 hearing in the manner prescribed by Section 324A.022.
 (c)  The commissioners courts shall jointly grant a petition
 and order the dissolution of the district if the courts find that
 the petition, if any, meets the requirements of this section and
 that the dissolution is in the best interests of the counties.
 Sec. 324A.124.  DISSOLUTION OF DISTRICT BY BOARD. (a)  The
 board may by order dissolve the district.  The order may be adopted:
 (1)  on the board'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 board shall give notice of a hearing on the petition
 or motion and hold a hearing in the manner prescribed by Section
 324A.022 for a commissioners court hearing.
 (c)  After the hearing, the board shall order the dissolution
 of the district if the board finds that the petition, if any, meets
 the requirements of this section and that the dissolution is in the
 best interests of the counties in which the district is located.
 (d)  The board shall by order dissolve the district if a
 state park is created that includes:
 (1)  all of the district's territory located in one of
 the counties in which the district is located; or
 (2)  all of the district's territory.
 Sec. 324A.125.  DISPOSITION OF DISTRICT ASSETS AND DEBTS.
 (a)  If the district is dissolved, the board shall administer the
 assets and debts, and charge fees as provided by Section 324A.098,
 until all money has been disposed of and all district debts have
 been paid or settled.
 (b)  The district is dissolved when all money has been
 disposed of and all district debts have been paid or settled.
 SECTION 2.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2017.