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.