Texas 2025 - 89th Regular

Texas House Bill HB4308 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R15803 TYPED
2	2	By: Gates H.B. No. 4308
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of industrial development districts in
10	10	certain counties; providing authority to issue bonds; and providing
11	11	authority to impose assessments, fees, or taxes.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle B, Title 12, Local Government Code, is
14	14	amended by adding Chapter 389 to read as follows:
15	15	Chapter 389. COUNTY INDUSTRIAL DEVELOPMENT DISTRICTS
16	16	ARTICLE I. GENERAL PROVISIONS
17	17	Sec. 1.01. SHORT TITLE. This Act may be cited as the County
18	18	Industrial Development District Act.
19	19	Sec. 1.02. DEFINITIONS. In this Act:
20	20	(1) "Board" means the board of directors of the
21	21	district.
22	22	(2) "Bonds" means bonds, notes, and other obligations.
23	23	(3) "Commissioners court" means the governing body of
24	24	the county in which the district is located.
25	25	(4) "Cost" has the same meaning as that term is defined
26	26	to mean in Section 501.152.
27	27	(5) "County" means the county in which the district is
28	28	located.
29	29	(6) "Director" means a member of the board.
30	30	(7) "District" means a county industrial opportunity
31	31	district created under this Act.
32	32	(8) "Project" includes the land, buildings,
33	33	equipment, facilities, expenditures, targeted infrastructure, and
34	34	improvements that are:
35	35	(A) for the creation or retention of primary
36	36	jobs; and
37	37	(B) found by the board of directors to be
38	38	required or suitable for the development, retention, or expansion
39	39	of:
40	40	(i) advanced manufacturing, operations and
41	41	industrial facilities;
42	42	(ii) research and development facilities;
43	43	(iii) transportation facilities, including
44	44	airports, hangars, railports, rail switching
45	45	facilities, maintenance and repair
46	46	facilities, cargo facilities, related
47	47	infrastructure located on or adjacent to an
48	48	airport or railport facility, mass commuting
49	49	facilities, and parking facilities;
50	50	(iv) sewage or solid waste disposal
51	51	facilities; recycling facilities;
52	52	(v) air or water pollution control
53	53	facilities;
54	54	(vi) facilities for furnishing water to the
55	55	public;
56	56	(vii) distribution centers;
57	57	(viii) small warehouse facilities capable
58	58	of serving as decentralized storage and
59	59	distribution centers;
60	60	(ix) primary job training facilities for
61	61	use by institutions of higher education;
62	62	(x) regional or national corporate
63	63	headquarters facilities; or
64	64	(xi) Advanced Nuclear Reactors.
65	65	(C) "Project" includes job training required or
66	66	suitable for the promotion or development and expansion of business
67	67	enterprises described in this chapter
68	68	(D) In this chapter, project includes
69	69	expenditures that are found by the board of directors to be required
70	70	or suitable for infrastructure necessary to promote or development
71	71	new or expanded business enterprises, including but not limited to:
72	72	(i) Streets and roads, rail spurs, water
73	73	and sewer utilities, electric utilities, or
74	74	gas utilities, drainage, site improvements,
75	75	and related improvements; and
76	76	(ii) Telecommunications and Internet
77	77	improvements.
78	78	(E) In this chapter, "Project" includes the land,
79	79	buildings, equipment, facilities, improvements, and expenditures
80	80	found by the board of directors to be required or suitable for use
81	81	for a career center in the area to be benefited by the district.
82	82	Sec. 1.03. NATURE OF DISTRICT. A district authorized under
83	83	this Act will be a special district created under Section 59,
84	84	Article XVI, Texas Constitution.
85	85	Sec. 1.04. PURPOSE; DECLARATION OF INTENT. (a) The
86	86	creation of a district is essential to accomplish the purposes of
87	87	Section 52 and 52-a, Article III, Texas Constitution, and Section
88	88	59, Article XVI, Texas Constitution, and other purposes stated in
89	89	this chapter.
90	90	(b) By authorizing the creation of districts under this
91	91	chapter, and authorizing the counties, cities, and other political
92	92	subdivisions to contract with the districts, the legislature has
93	93	established a program to accomplish the purposes set out in Section
94	94	52-a, Article III, Texas Constitution.
95	95	(c) Authorizing the creation of districts under this
96	96	chapter is necessary to promote, develop, encourage, and maintain
97	97	employment, commerce, transportation, housing, tourism,
98	98	recreation, the arts, entertainment, economic development, safety,
99	99	and the public welfare in the districts.
100	100	(d) This chapter and the authorization to create industrial
101	101	development districts may not be interpreted to relieve counties or
102	102	cities from providing the level of services provided as of the
103	103	effective date of the Act enacting this chapter to the area in the
104	104	district. The districts are created to supplement and not to
105	105	supplant county or city services provided in a district.
106	106	Sec. 1.05. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
107	107	Small and medium-sized counties in Texas are in need of incentives
108	108	for the development of public improvements to attract major
109	109	industrial employers to such counties, and that such counties are
110	110	at a disadvantage in competing with counties in other states for the
111	111	location and development of projects that attract major industrial
112	112	employers by virtue of the availability and prevalent use in other
113	113	states of financial incentives;
114	114	(b) All land and other property included in a district
115	115	created under this Act will benefit from the improvements and
116	116	services to be provided by the district under powers conferred by
117	117	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
118	118	Texas Constitution, and other powers granted under this chapter.
119	119	(c) The means and measures authorized by this Act are in the
120	120	public interest and essential to further the public purposes of:
121	121	(1) developing and diversifying the economy of the
122	122	state;
123	123	(2) eliminating unemployment and underemployment; and
124	124	(3) developing or expanding transportation and
125	125	commerce.
126	126	(d) Districts created under this Act will:
127	127	(1) promote the health, safety, and general welfare of
128	128	residents, employers, potential employees, employees, visitors,
129	129	and consumers in the district, and of the public;
130	130	(2) promote the economic welfare of the citizens of
131	131	the state by providing incentives for the location and development
132	132	in certain Texas counties of projects that attract major industrial
133	133	employers and that result in employment and economic activity; and
134	134	(e) Districts created authorized for creation under this
135	135	chapter will not act as the agent or instrumentality of any private
136	136	interest even though the districts will benefit many private
137	137	interests as well as the public.
138	138	Sec. 1.06. COUNTIES AUTHORIZED TO CREATE DISTRICTS. The
139	139	commissioners court in a county with a population of more than
140	140	800,000 that borders a county with a population of more than four
141	141	million according to the most recent federal decennial census may,
142	142	call an election on the question of creating a county industrial
143	143	development district under this chapter.
144	144	Sec. 1.07. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All
145	145	or any part of the area of a district created under this Act is
146	146	eligible to be included in:
147	147	(a) a tax increment reinvestment zone created under Chapter
148	148	311, Tax Code; or
149	149	(b) a tax abatement reinvestment zone created under Chapter
150	150	312, Tax Code.
151	151	Sec. 1.08. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
152	152	LAW. Except as otherwise provided by this chapter, a district
153	153	created under this chapter shall have the powers of a municipal
154	154	management district created under Chapter 375, Local Government
155	155	Code.
156	156	Sec. 1.09. CONSTRUCTION OF CHAPTER. This chapter shall be
157	157	liberally construed in conformity with the findings and purposes
158	158	stated in this chapter.
159	159	ARTICLE 2. CREATION OF DISTRICTS
160	160	Sec. 2.01. CALLING AN ELECTION. The commissioners court of
161	161	the county may call an election on the question of creating a county
162	162	industrial development district under this chapter and to obtain
163	163	voter approval to impose an ad valorem tax or issue bonds payable
164	164	from ad valorem taxes.
165	165	Sec. 2.02. CONTENTS OF ORDER. The order calling the
166	166	election must:
167	167	(1) describe the boundaries of the proposed district
168	168	by metes and bounds or by lot and block number, if there is a
169	169	recorded map or plat and survey of the area;
170	170	(2) call for the election to be held within those
171	171	boundaries; and
172	172	(3) call for the imposition of an ad valorem tax or
173	173	issuance of bonds payable from ad valorem taxes.
174	174	Sec. 2.03. CONDUCT OF ELECTION. (a) The election shall be
175	175	held in accordance with the provisions of the Election Code, to the
176	176	extent not inconsistent with this Act.
177	177	(b) The ballot shall be printed to permit voting for or
178	178	against the proposition: "The creation of _____________ County
179	179	Industrial Development District No. ______ ; the adoption of a
180	180	proposed local sales and use tax rate of ____ (the rate specified in
181	181	the election order); and the imposition of an ad valorem tax to be
182	182	used for the promotion and development of industrial
183	183	opportunities."
184	184	Sec. 2.04. RESULTS OF ELECTION. The district is created if
185	185	a majority of the votes received at the election favor the creation
186	186	of the district. If a majority of the votes received at the
187	187	election are against the creation of the district, the district is
188	188	not created. The failure to approve the creation of a district
189	189	under this subsection does not affect the authority of the county to
190	190	call one or more elections on the question of creating one or more
191	191	county industrial opportunity districts.
192	192	ARTICLE 3. DISTRICT ADMINISTRATION
193	193	Sec. 3.01. BOARD OF DIRECTORS. (a) A district is governed
194	194	by a board of nine directors. Positions One and Two on the board of
195	195	directors shall be filled by the State Senator, or his or her
196	196	designee, of the State Senate district in which the majority of the
197	197	district is located. Positions Two Three and Four on the board
198	198	shall be filled by State Representative, or his or her designee, of
199	199	the House district in which the majority of the district is located.
200	200	The commissioners court of the county in which the district is
201	201	located shall be authorized to nominate and appoint five directors
202	202	to fill Positions Five through Nine
203	203	(b) Directors serve staggered four-year terms that expire
204	204	September 1. The directors shall draw lots to determine:
205	205	(1) the four directors to serve terms that expire on
206	206	September 1 of the second year following creation of the district;
207	207	and
208	208	(2) the five directors to serve terms that expire on
209	209	September 1 of the fourth year following creation of the district.
210	210	Sec. 3.02. QUALIFICATIONS FOR DIRECTORS. To be qualified
211	211	to serve as a director, a person shall be at least 21 years old, a
212	212	resident citizen of the State of Texas, and a qualified voter within
213	213	the county in which the district is located.
214	214	Sec. 3.03. PERSONS DISQUALIFIED FROM SERVING. Section
215	215	50.026, Water Code, relating to disqualification of directors,
216	216	shall apply to directors of districts created under this Act.
217	217	Sec. 3.04. VACANCIES ON THE BOARD. A vacancy in the office
218	218	of director shall be filled by appointment by the office or
219	219	governing body authorized to fill the respective Position of
220	220	director.
221	221	Sec. 3.05. REMOVAL OF DIRECTOR. The governing body of the
222	222	commissioners court, after notice and hearing, may remove a
223	223	director for misconduct or failure to carry out the director's
224	224	duties on petition by a majority of the remaining directors.
225	225	Sec. 3.06. ORGANIZATION OF BOARD. After each appointment
226	226	of directors, and after the directors have qualified by taking the
227	227	proper oath, they shall organize by electing a president, a vice
228	228	president, a secretary, and any other officers as in the judgment of
229	229	the board are considered necessary.
230	230	Sec. 3.07. QUORUM; OFFICERS' DUTIES; MANAGEMENT OF
231	231	DISTRICT. Sections 54.107, 54.108, 54.111, and 54.118, Water Code,
232	232	relating to quorum, officers' duties, and management of the
233	233	district, shall govern the board of directors of a district created
234	234	under this Act.
235	235	Sec. 3.08. MEETINGS AND NOTICE. (a) The board shall
236	236	designate and establish a district office in the county.
237	237	(b) The board may establish regular meetings to conduct
238	238	district business and may hold special meetings at other times as
239	239	the business of a district requires.
240	240	(c) Notice of the time, place, and purpose of any meeting of
241	241	the board shall be given by posting at a place convenient to the
242	242	public within the district. A copy of the notice shall be furnished
243	243	to the clerk or clerks of the county in which the district is
244	244	located, who shall post them on a bulletin board in the county
245	245	courthouse used for such purpose.
246	246	(d) Except as herein provided the provisions of the open
247	247	meetings law, Chapter 551, Government Code, shall be applicable to
248	248	meetings of the board of directors. Any interested person may
249	249	attend any meeting of the board.
250	250	Sec. 3.09. DIRECTOR'S COMPENSATION; BOND AND OATH OF
251	251	OFFICE. A director is not entitled to receive compensation for
252	252	service on the board. Sections 375.067, 375.069, and 375.070,
253	253	Local Government Code, apply to directors of a district created
254	254	under this Act.
255	255	Sec. 3.10. GOVERNMENTAL AGENCY; SUITS. (a) A district,
256	256	when created and confirmed, may, through its directors, sue and be
257	257	sued in any and all courts of this state in the name of the district.
258	258	Service of process in any suit may be had by serving any two
259	259	directors.
260	260	(b) A district is a governmental agency, a body politic and
261	261	corporate, and a political subdivision of the state. Section
262	262	375.004, Local Government Code, applies to a district created under
263	263	this Act.
264	264	ARTICLE 4. POWERS AND DUTIES
265	265	Sec. 4.01. GENERAL POWERS OF DISTRICT. (a) A district
266	266	created under this chapter has the powers and duties necessary to
267	267	accomplish the purposes for which the district is created.
268	268	Sec. 4.02. IMPROVEMENT PROJECTS AND SERVICES. (a) A
269	269	district created under this chapter, using any money available to
270	270	the district for the purpose, may:
271	271	(1) provide, design, construct, acquire, improve,
272	272	relocate, operate, maintain, or finance an improvement project or
273	273	service authorized under this chapter or Chapter 375, Local
274	274	Government Code.
275	275	(2) provide the necessary infrastructure to attract
276	276	major industrial employers to the district and its vicinity, which
277	277	may be conducted by the district pursuant to financial incentives
278	278	and contracts for professional services with persons or
279	279	organizations selected by the district.
280	280	(3) acquire, sell, lease, or convey, or otherwise
281	281	dispose of property or an interest in property under terms
282	282	determined by the district;
283	283	(4) employ necessary personnel; and
284	284	(5) adopt rules to govern the operation of the
285	285	district and its employees and property.
286	286	(b) The district shall have the power to plan, acquire,
287	287	establish, develop, construct, renovate, and dispose of projects to
288	288	benefit the district, and shall have the power, authority, rights,
289	289	and duties which will permit accomplishment of the purposes for
290	290	which the district was created.
291	291	(c) A district shall have the power to enter agreements with
292	292	governmental or private entities, including the providers of public
293	293	utilities and commercial railways, to develop the necessary
294	294	infrastructure and to perform any act the district is authorized to
295	295	perform under this chapter.
296	296	(d) The implementation of a district project or service is a
297	297	governmental function or service for the purposes of Chapter 791,
298	298	Government Code.
299	299	Sec. 4.03. NONPROFIT CORPORATION. (a) The board by
300	300	resolution may authorize the creation of a nonprofit corporation to
301	301	assist and act for the district in implementing a project or
302	302	providing a service authorized by this chapter.
303	303	(b) The nonprofit corporation:
304	304	(1) has each power of and is considered to be a local
305	305	government corporation created under Subchapter D, Chapter 431,
306	306	Transportation Code; and
307	307	(2) may implement any project and provide any service
308	308	authorized by this chapter.
309	309	(c) The board shall appoint the board of directors of the
310	310	nonprofit corporation. The board of directors of the nonprofit
311	311	corporation shall serve in the same manner as the board of directors
312	312	of a local government corporation created under Subchapter D,
313	313	Chapter 431, Transportation Code, except that a board member is not
314	314	required to reside in the district.
315	315	Sec. 4.04. COMPETITIVE BIDDING; CONTRACT AWARD. Sections
316	316	375.221 and 375.223, Local Government Code, apply to a district
317	317	created under this Act. The district shall have the authority to
318	318	use a method authorized by Chapter 2269, Government Code for as an
319	319	alternative to competitive bidding. Notwithstanding any other
320	320	provision of this Act to the contrary, any contract between the
321	321	district and a governmental entity or nonprofit corporation created
322	322	under the Development Corporation Act of Subtitle C1, Title 12,
323	323	Chapter 501, Texas Local Government Code shall not be subject to the
324	324	competitive bidding requirement of this Act.
325	325	Sec. 4.05. ECONOMIC DEVELOPMENT PROGRAMS. (a) A district
326	326	created under this chapter may engage in activities that accomplish
327	327	the economic development purposes of the district.
328	328	(b) The district may establish and provide for the
329	329	administration of one or more programs to promote state or local
330	330	economic development and stimulate business and commercial
331	331	activity in the district, including programs to:
332	332	(1) make loans and grants of public money; and
333	333	(2) provide district personnel and services.
334	334	(c) The district may create economic development programs
335	335	and exercise the economic development powers provided to
336	336	municipalities by:
337	337	(1) Chapter 380, Local Government Code; and
338	338	(2) Subchapter A, Chapter 1509, Government Code.
339	339	Sec. 4.06. ADDING OR EXCLUDING LAND. A district created
340	340	under this chapter may add or exclude land in the manner provided by
341	341	Subchapter J, Chapter 49, Water Code, or by Subchapter H, Chapter
342	342	54, Water Code.
343	343	Sec. 4.07. DISBURSEMENTS AND TRANSFERS OF MONEY. The board
344	344	by resolution shall establish the method of disbursement of the
345	345	districts funds and the number of directors' signatures and the
346	346	procedure required for the disbursement or transfer of district
347	347	money.
348	348	Sec. 4.08. REPAYMENT OF ORGANIZATIONAL EXPENSES. The
349	349	district's directors are authorized to pay all costs and expenses
350	350	necessarily incurred in the creation and organization of a
351	351	district, the cost of investigation and making plans, the cost of
352	352	the engineer's report, project designer fees, legal fees, and other
353	353	incidental expenses and to reimburse any person for money advanced
354	354	for these purposes. These payments may be made from money obtained
355	355	from the issuance of notes or the sale of bonds first issued by the
356	356	district or out of other revenues of the district.
357	357	ARTICLE 5. ASSESSMENTS
358	358	Sec. 5.01. PETITION REQUIRED FOR FINANCING SERVICES AND
359	359	IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
360	360	service or improvement project with assessments under this chapter
361	361	unless a written petition requesting that service or improvement
362	362	has been filed with the board.
363	363	(b) A petition filed under Subsection (a) must be signed by
364	364	the owners of a majority of the assessed value of real property in
365	365	the district subject to assessment according to the most recent
366	366	certified tax appraisal roll for the county.
367	367	Sec. 5.02. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The
368	368	board by resolution may impose and collect an assessment for any
369	369	purpose authorized by this chapter in all or any part of the
370	370	district.
371	371	(b) An assessment, a reassessment, or an assessment
372	372	resulting from an addition to or correction of the assessment roll
373	373	by the district, penalties and interest on an assessment or
374	374	reassessment, an expense of collection, and reasonable attorney's
375	375	fees incurred by the district;
376	376	(1) are a first and prior lien against the property
377	377	assessed;
378	378	(2) are superior to any other lien or claim other than
379	379	a lien or claim for county, school district, or municipal ad valorem
380	380	taxes; and
381	381	(3) or the personal liability of and a charge against
382	382	the owners of the property even if the owners are not named in the
383	383	assessment proceedings.
384	384	(c) The lien is effective from the date of the board's
385	385	resolution imposing the assessment until the date the assessment is
386	386	paid. The board may enforce the lien in the same manner that the
387	387	board may enforce an ad valorem tax lien against real property.
388	388	(d) The board may make a correction to or deletion from the
389	389	assessment roll that does not increase the amount of assessment of
390	390	any parcel of land without providing notice and holding a hearing in
391	391	the manner required for additional assessments.
392	392	ARTICLE 6. TAXES AND BONDS
393	393	Sec. 6.01. TAX ELECTION REQUIRED. The district must hold an
394	394	election in the manner provided by Chapter 49, Water Code, or if
395	395	applicable, Chapter 375, Local Government Code, to obtain voter
396	396	approval before the district may impose an ad valorem tax.
397	397	Sec. 6.02. OPERATION AND MAINTENANCE TAX. (a) If
398	398	authorized by a majority of the district voters voting in the
399	399	election under Section 6.02., the district may impose an operation
400	400	and maintenance tax on taxable property in the district in the
401	401	manner provided by Section 49.107, Water Code, for any district
402	402	purpose, including to:
403	403	(1) maintain and operate the district;
404	404	(2) construct or acquire improvements; or
405	405	(3) provide a service.
406	406	(b) The board shall determine the tax rate. The rate may not
407	407	exceed the rate approved at the election.
408	408	Sec. 6.03. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND
409	409	OTHER OBLIGATIONS. (a) The district created under this chapter may
410	410	borrow money on terms determined by the board.
411	411	(b) The district may issue bonds, notes, or other
412	412	obligations payable wholly or partly from ad valorem taxes,
413	413	assessments, impact fees, revenue contract payments, grants, or
414	414	other district money, or any combination of those sources of money,
415	415	to pay for any authorized district purpose, including but not
416	416	limited to the following:
417	417	(1) pay interest on the bonds during and after the
418	418	period of the acquisition or construction of a project;
419	419	(2) pay administrative and operating expenses;
420	420	(3) create a reserve fund for the payment of principal
421	421	and interest on the bonds; and
422	422	(4) pay all expenses incurred and to be incurred in the
423	423	issuance, sale, and delivery of the bonds.
424	424	(c) The limitation on the outstanding principal amount of
425	425	bonds, notes, or other obligations provided by Section 49.4645,
426	426	Water Code, does not apply to the district.
427	427	Sec. 6.04. BONDS SECURED BY REVENUE OR CONTRACT PAYMENTS. A
428	428	district created under this chapter may issue, without an election,
429	429	bonds secured by:
430	430	(1) revenue other than ad valorem taxes, including
431	431	contract revenues; or
432	432	(2) contract payments, provided that the requirements
433	433	of Section 49.108, Water Code, have been met.
434	434	Sec. 6.05. BONDS SECURED BY AD VALOREM TAXES; ELECTIONS.
435	435	(a) If authorized at an election under Section 6.01., a district
436	436	created under this chapter may issue bonds payable from ad valorem
437	437	taxes.
438	438	(b) Section 375.243, Local Government Code, does not apply
439	439	to the district.
440	440	(c) At the time the district issues bonds payable wholly or
441	441	partly from ad valorem taxes, the board shall provide for the annual
442	442	imposition of a continuing directs annual ad valorem tax, without
443	443	limit as to rate or amount, for each year that all or part of the
444	444	bonds are outstanding as required and in the manner provided by
445	445	Sections 54.601 and 54.602, Water Code.
446	446	(d) All or any part of any facilities or improvements that
447	447	may be acquired by a district by the issuance of its bonds may be
448	448	submitted as a single proposition or as several propositions to be
449	449	voted on at an election.
450	450	Sec. 6.06. CONSENT OF MUNICIPALITY REQUIRED. (a) The board
451	451	may not issue bonds until each municipality in whose corporate
452	452	limits or extraterritorial jurisdiction the district is located has
453	453	consented by ordinance or resolution to the creation of the
454	454	district and to the inclusion of land in the district.
455	455	(b) This section applies only to the district's first
456	456	issuance of bonds payable from ad valorem taxes.
457	457	ARTICLE 7. SALES AND USE TAXES
458	458	Sec. 7.01. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS.
459	459	(a) Chapter 321, Tax Code, governs the imposition, computation,
460	460	administration, enforcement, and collection of the sales and use
461	461	tax authorized by this subchapter except to the extent Chapter 321,
462	462	Tax Code is inconsistent with this chapter.
463	463	(b) For the purposes of section, a reference in Chapter 321,
464	464	Tax Code, to a municipality or the governing body of a municipality
465	465	is a reference to the district or the board, respectively.
466	466	Sec. 7.02. ELECTION; ADOPTION OF TAX. (a) The district may
467	467	adopt a sales and use tax if authorized by a majority of the voters
468	468	of the district voting at an election held for that purpose.
469	469	(b) The board by order may call an election to authorize the
470	470	adoption of the sales and use tax. The election may be held on any
471	471	uniform election date and in conjunction with any other district
472	472	election.
473	473	(c) The district shall provide notice of the election and
474	474	shall hold the election in the manner prescribed by Section 2.01.
475	475	(d) The ballot shall be printed to provide for voting for or
476	476	against the proposition: "Authorization of a sales and use tax in
477	477	the [__________] County Industrial Development District No. [___]
478	478	at a rate not to exceed [_____] percent" (insert rate of one or more
479	479	increments of one-eighth of one percent in accordance with Section
480	480	2.03.
481	481	Sec. 7.03. SALES AND USE TAX RATE. (a) After the date the
482	482	results are declared of an election held under Section 7.02 at which
483	483	the voters authorized imposition of a tax, the board shall provide
484	484	by resolution or order the initial tax of the tax, which must be in
485	485	one or more increments of one-eighth of one percent.
486	486	(b) After the authorization of a tax under Section 7.02, the
487	487	board may increase or decrease the rate of the tax by one or more
488	488	increments of one-eighth of one percent.
489	489	(c) The board may not decrease the rate of the tax if the
490	490	decrease would impair the repayment of any outstanding debt or
491	491	obligation payable from the tax.
492	492	(d) The initial rate of the tax or any rate resulting from
493	493	subsequent increases or decreases may not exceed the lesser of:
494	494	(1) the maximum rate authorized at an election held
495	495	under Section 7.02; or
496	496	(2) a rate that, when added to the rates of all sales
497	497	and use taxes imposed by other political subdivisions with
498	498	territory in the district, would result in the maximum combined
499	499	rate prescribed Section 321.101(f), Tax Code, at any location in
500	500	the district.
501	501	(e) In determining whether the combined sales and use tax
502	502	rate under Subsection (d) (2) would exceed the maximum combined
503	503	rate prescribed by Section 321.0101(f), Tax Code, at any location
504	504	in the district, the board shall include:
505	505	(1) any sales and use tax imposed by a political
506	506	subdivision whose territory overlaps all or part of the district;
507	507	(2) any sales and use tax to be imposed by the city or
508	508	the county as a result of an election held on the same date as the
509	509	election held under Section 7.02; and
510	510	(3) any increase to an existing sales and use tax
511	511	imposed by the city of the county as a result of an election held on
512	512	the same date as the election held under Section 7.02.
513	513	(f) If the district adopts a sales and use tax authorized at
514	514	an election under Section 7.02 and subsequently includes a new
515	515	territory in the district, the district:
516	516	(1) is not required to hold another election to
517	517	approve the imposition of the sales and use tax in the included
518	518	territory; and
519	519	(2) shall impose the sales and use tax in the included
520	520	territory as provided in Chapter 321, Tax Code.
521	521	(g) If the district adopts a sales and use tax authorized at
522	522	an election held under Section 7.02 and subsequently excludes
523	523	territory in the district under this section, the sales and use tax
524	524	is inapplicable to the excluded territory as provided by Chapter
525	525	321, Tax Code, but is applicable to the territory remaining in the
526	526	district.
527	527	Sec. 7.04. NOTIFICATION OF RATE CHANGE. The board shall
528	528	notify the comptroller of any changes made to the tax rate under
529	529	this subchapter in the same manner the municipal secretary provides
530	530	notice to the comptroller under Section 321.405(b), Tax Code.
531	531	Sec. 7.05. USE OF REVENUE. Revenue from the sales and use
532	532	tax imposed under this subchapter is for the use and benefit of the
533	533	district and may be used for any district purpose. The district may
534	534	pledge all or part of the revenue to the payment of bonds, notes, or
535	535	other obligations, and that pledge of revenue may be in combination
536	536	with other revenue, including tax revenue, available to the
537	537	district.
538	538	Sec. 7.06. ABOLITION OF TAX. (a) Except as provided by
539	539	Subsection (b), the board may abolish the tax imposed under this
540	540	subchapter without an election.
541	541	(b) The board may not abolish the tax imposed under this
542	542	section if the district has any outstanding debt or obligation
543	543	secured by the tax, and repayment of the debt or obligation would be
544	544	impaired by the abolition of the tax.
545	545	(c) If the board abolishes the tax, the board shall notify
546	546	the comptroller of that action in the same manner as the municipal
547	547	secretary provides notice to the comptroller under Section
548	548	321.405(b), Tax Code.
549	549	(d) If the board abolishes the tax or decreases the tax rate
550	550	to zero, a new election to authorize a sales and use tax must be held
551	551	under Section 2.01. before the district may subsequently impose the
552	552	tax.
553	553	ARTICLE 8. DISSOLUTION
554	554	Sec. 8.01. DISSOLUTION. (a) A district created under this
555	555	chapter may be dissolved only as provided in this section.
556	556	(b) The board of directors may petition the commissioners
557	557	court to dissolve the district if a majority of the board finds at
558	558	any time (1) before the authorization of bonds or the final lending
559	559	of its credit, that the proposed undertaking is impracticable or
560	560	cannot be successfully and beneficially accomplished, or (2) that
561	561	all bonds of the district or other debts of the district have been
562	562	paid and the purposes of the district have been accomplished.
563	563	(c) On receipt of a petition from the board for dissolution
564	564	of the district, the county commissioners shall hold a hearing.
565	565	(d) If the commissioners court determines from the evidence
566	566	that the best interests of the county and the owners of property and
567	567	interests in property within the district will be served by
568	568	dissolving the district, the commissioners court shall enter in its
569	569	records the appropriate findings and order dissolving the district.
570	570	Otherwise the commissioners court shall enter its order providing
571	571	that the district has not been dissolved. On dissolution of the
572	572	district, funds and property of the district, if any, shall be
573	573	transferred to the commissioners court.
574	574	SECTION 2. (a) The legal notice of the intention to
575	575	introduce this Act, setting forth the general substance of this
576	576	Act, has been published as provided by law, and the notice and a
577	577	copy of this Act have been furnished to all persons, agencies,
578	578	officials, or entities to which they are required to be furnished
579	579	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
580	580	Government Code.
581	581	(b) All requirements of the constitution and laws of this
582	582	state and the rules of procedure of the legislature with respect to
583	583	the notice, introduction, and passage of this Act have been
584	584	fulfilled and accomplished.
585	585	SECTION 3. This Act takes effect immediately if it receives
586	586	a vote of two-thirds of all the members elected to each house, as
587	587	provided by Section 39, Article III, Texas Constitution. If this
588	588	Act does not receive the vote necessary for immediate effect, this
589	589	Act takes effect September 1, 2025.