Texas 2025 - 89th Regular

Texas House Bill HB4308 Latest Draft

Bill / Introduced Version Filed 03/11/2025

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                            89R15803 TYPED
 By: Gates H.B. No. 4308




 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of industrial development districts in
 certain counties; providing authority to issue bonds; and providing
 authority to impose assessments, fees, or taxes.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle B, Title 12, Local Government Code, is
 amended by adding Chapter 389 to read as follows:
 Chapter 389.  COUNTY INDUSTRIAL DEVELOPMENT DISTRICTS
 ARTICLE I. GENERAL PROVISIONS
 Sec. 1.01.  SHORT TITLE. This Act may be cited as the County
 Industrial Development District Act.
 Sec. 1.02.  DEFINITIONS. In this Act:
 (1)  "Board" means the board of directors of the
 district.
 (2)  "Bonds" means bonds, notes, and other obligations.
 (3)  "Commissioners court" means the governing body of
 the county in which the district is located.
 (4)  "Cost" has the same meaning as that term is defined
 to mean in Section 501.152.
 (5)  "County" means the county in which the district is
 located.
 (6)  "Director" means a member of the board.
 (7)  "District" means a county industrial opportunity
 district created under this Act.
 (8)  "Project" includes the land, buildings,
 equipment, facilities, expenditures, targeted infrastructure, and
 improvements that are:
 (A)  for the creation or retention of primary
 jobs; and
 (B)  found by the board of directors to be
 required or suitable for the development, retention, or expansion
 of:
 (i)  advanced manufacturing, operations and
 industrial facilities;
 (ii)  research and development facilities;
 (iii)  transportation facilities, including
 airports, hangars, railports, rail switching
 facilities, maintenance and repair
 facilities, cargo facilities, related
 infrastructure located on or adjacent to an
 airport or railport facility, mass commuting
 facilities, and parking facilities;
 (iv)  sewage or solid waste disposal
 facilities; recycling facilities;
 (v)  air or water pollution control
 facilities;
 (vi)  facilities for furnishing water to the
 public;
 (vii)  distribution centers;
 (viii)  small warehouse facilities capable
 of serving as decentralized storage and
 distribution centers;
 (ix)  primary job training facilities for
 use by institutions of higher education;
 (x)  regional or national corporate
 headquarters facilities; or
 (xi)  Advanced Nuclear Reactors.
 (C)  "Project" includes job training required or
 suitable for the promotion or development and expansion of business
 enterprises described in this chapter
 (D)  In this chapter, project includes
 expenditures that are found by the board of directors to be required
 or suitable for infrastructure necessary to promote or development
 new or expanded business enterprises, including but not limited to:
 (i)  Streets and roads, rail spurs, water
 and sewer utilities, electric utilities, or
 gas utilities, drainage, site improvements,
 and related improvements; and
 (ii)  Telecommunications and Internet
 improvements.
 (E)  In this chapter, "Project" includes the land,
 buildings, equipment, facilities, improvements, and expenditures
 found by the board of directors to be required or suitable for use
 for a career center in the area to be benefited by the district.
 Sec. 1.03.  NATURE OF DISTRICT. A district authorized under
 this Act will be a special district created under Section 59,
 Article XVI, Texas Constitution.
 Sec. 1.04.  PURPOSE; DECLARATION OF INTENT. (a)  The
 creation of a district is essential to accomplish the purposes of
 Section 52 and 52-a, Article III, Texas Constitution, and Section
 59, Article XVI, Texas Constitution, and other purposes stated in
 this chapter.
 (b)  By authorizing the creation of districts under this
 chapter, and authorizing the counties, cities, and other political
 subdivisions to contract with the districts, the legislature has
 established a program to accomplish the purposes set out in Section
 52-a, Article III, Texas Constitution.
 (c)  Authorizing the creation of districts under this
 chapter is necessary to promote, develop, encourage, and maintain
 employment, commerce, transportation, housing, tourism,
 recreation, the arts, entertainment, economic development, safety,
 and the public welfare in the districts.
 (d)  This chapter and the authorization to create industrial
 development districts may not be interpreted to relieve counties or
 cities from providing the level of services provided as of the
 effective date of the Act enacting this chapter to the area in the
 district. The districts are created to supplement and not to
 supplant county or city services provided in a district.
 Sec. 1.05.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
 Small and medium-sized counties in Texas are in need of incentives
 for the development of public improvements to attract major
 industrial employers to such counties, and that such counties are
 at a disadvantage in competing with counties in other states for the
 location and development of projects that attract major industrial
 employers by virtue of the availability and prevalent use in other
 states of financial incentives;
 (b)  All land and other property included in a district
 created under this Act will benefit from the improvements and
 services to be provided by the district under powers conferred by
 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
 Texas Constitution, and other powers granted under this chapter.
 (c)  The means and measures authorized by this Act are in the
 public interest and essential to further the public purposes of:
 (1)  developing and diversifying the economy of the
 state;
 (2)  eliminating unemployment and underemployment; and
 (3)  developing or expanding transportation and
 commerce.
 (d)  Districts created under this Act will:
 (1)  promote the health, safety, and general welfare of
 residents, employers, potential employees, employees, visitors,
 and consumers in the district, and of the public;
 (2)  promote the economic welfare of the citizens of
 the state by providing incentives for the location and development
 in certain Texas counties of projects that attract major industrial
 employers and that result in employment and economic activity; and
 (e)  Districts created authorized for creation under this
 chapter will not act as the agent or instrumentality of any private
 interest even though the districts will benefit many private
 interests as well as the public.
 Sec. 1.06.  COUNTIES AUTHORIZED TO CREATE DISTRICTS. The
 commissioners court in a county with a population of more than
 800,000 that borders a county with a population of more than four
 million according to the most recent federal decennial census may,
 call an election on the question of creating a county industrial
 development district under this chapter.
 Sec. 1.07.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.  All
 or any part of the area of a district created under this Act is
 eligible to be included in:
 (a)  a tax increment reinvestment zone created under Chapter
 311, Tax Code; or
 (b)  a tax abatement reinvestment zone created under Chapter
 312, Tax Code.
 Sec. 1.08.  APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
 LAW. Except as otherwise provided by this chapter, a district
 created under this chapter shall have the powers of a municipal
 management district created under Chapter 375, Local Government
 Code.
 Sec. 1.09.  CONSTRUCTION OF CHAPTER. This chapter shall be
 liberally construed in conformity with the findings and purposes
 stated in this chapter.
 ARTICLE 2. CREATION OF DISTRICTS
 Sec. 2.01.  CALLING AN ELECTION. The commissioners court of
 the county may call an election on the question of creating a county
 industrial development district under this chapter and to obtain
 voter approval to impose an ad valorem tax or issue bonds payable
 from ad valorem taxes.
 Sec. 2.02.  CONTENTS OF ORDER. The order calling the
 election must:
 (1)  describe the boundaries of the proposed district
 by metes and bounds or by lot and block number, if there is a
 recorded map or plat and survey of the area;
 (2)  call for the election to be held within those
 boundaries; and
 (3)  call for the imposition of an ad valorem tax or
 issuance of bonds payable from ad valorem taxes.
 Sec. 2.03.  CONDUCT OF ELECTION. (a)  The election shall be
 held in accordance with the provisions of the Election Code, to the
 extent not inconsistent with this Act.
 (b)  The ballot shall be printed to permit voting for or
 against the proposition: "The creation of _____________ County
 Industrial Development District No. ______ ; the adoption of a
 proposed local sales and use tax rate of ____ (the rate specified in
 the election order); and the imposition of an ad valorem tax to be
 used for the promotion and development of industrial
 opportunities."
 Sec. 2.04.  RESULTS OF ELECTION. The district is created if
 a majority of the votes received at the election favor the creation
 of the district. If a majority of the votes received at the
 election are against the creation of the district, the district is
 not created. The failure to approve the creation of a district
 under this subsection does not affect the authority of the county to
 call one or more elections on the question of creating one or more
 county industrial opportunity districts.
 ARTICLE 3. DISTRICT ADMINISTRATION
 Sec. 3.01.  BOARD OF DIRECTORS. (a)  A district is governed
 by a board of nine directors. Positions One and Two on the board of
 directors shall be filled by the State Senator, or his or her
 designee, of the State Senate district in which the majority of the
 district is located. Positions Two Three and Four on the board
 shall be filled by State Representative, or his or her designee, of
 the House district in which the majority of the district is located.
 The commissioners court of the county in which the district is
 located shall be authorized to nominate and appoint five directors
 to fill Positions Five through Nine
 (b)  Directors serve staggered four-year terms that expire
 September 1. The directors shall draw lots to determine:
 (1)  the four directors to serve terms that expire on
 September 1 of the second year following creation of the district;
 and
 (2)  the five directors to serve terms that expire on
 September 1 of the fourth year following creation of the district.
 Sec. 3.02.  QUALIFICATIONS FOR DIRECTORS. To be qualified
 to serve as a director, a person shall be at least 21 years old, a
 resident citizen of the State of Texas, and a qualified voter within
 the county in which the district is located.
 Sec. 3.03.  PERSONS DISQUALIFIED FROM SERVING. Section
 50.026, Water Code, relating to disqualification of directors,
 shall apply to directors of districts created under this Act.
 Sec. 3.04.  VACANCIES ON THE BOARD. A vacancy in the office
 of director shall be filled by appointment by the office or
 governing body authorized to fill the respective Position of
 director.
 Sec. 3.05.  REMOVAL OF DIRECTOR. The governing body of the
 commissioners court, after notice and hearing, may remove a
 director for misconduct or failure to carry out the director's
 duties on petition by a majority of the remaining directors.
 Sec. 3.06.  ORGANIZATION OF BOARD. After each appointment
 of directors, and after the directors have qualified by taking the
 proper oath, they shall organize by electing a president, a vice
 president, a secretary, and any other officers as in the judgment of
 the board are considered necessary.
 Sec. 3.07.  QUORUM; OFFICERS' DUTIES; MANAGEMENT OF
 DISTRICT. Sections 54.107, 54.108, 54.111, and 54.118, Water Code,
 relating to quorum, officers' duties, and management of the
 district, shall govern the board of directors of a district created
 under this Act.
 Sec. 3.08.  MEETINGS AND NOTICE. (a)  The board shall
 designate and establish a district office in the county.
 (b)  The board may establish regular meetings to conduct
 district business and may hold special meetings at other times as
 the business of a district requires.
 (c)  Notice of the time, place, and purpose of any meeting of
 the board shall be given by posting at a place convenient to the
 public within the district. A copy of the notice shall be furnished
 to the clerk or clerks of the county in which the district is
 located, who shall post them on a bulletin board in the county
 courthouse used for such purpose.
 (d)  Except as herein provided the provisions of the open
 meetings law, Chapter 551, Government Code, shall be applicable to
 meetings of the board of directors. Any interested person may
 attend any meeting of the board.
 Sec. 3.09.  DIRECTOR'S COMPENSATION; BOND AND OATH OF
 OFFICE. A director is not entitled to receive compensation for
 service on the board. Sections 375.067, 375.069, and 375.070,
 Local Government Code, apply to directors of a district created
 under this Act.
 Sec. 3.10.  GOVERNMENTAL AGENCY; SUITS. (a)  A district,
 when created and confirmed, may, through its directors, sue and be
 sued in any and all courts of this state in the name of the district.
 Service of process in any suit may be had by serving any two
 directors.
 (b)  A district is a governmental agency, a body politic and
 corporate, and a political subdivision of the state. Section
 375.004, Local Government Code, applies to a district created under
 this Act.
 ARTICLE 4. POWERS AND DUTIES
 Sec. 4.01.  GENERAL POWERS OF DISTRICT. (a)  A district
 created under this chapter has the powers and duties necessary to
 accomplish the purposes for which the district is created.
 Sec. 4.02.  IMPROVEMENT PROJECTS AND SERVICES. (a)  A
 district created under this chapter, using any money available to
 the district for the purpose, may:
 (1)  provide, design, construct, acquire, improve,
 relocate, operate, maintain, or finance an improvement project or
 service authorized under this chapter or Chapter 375, Local
 Government Code.
 (2)  provide the necessary infrastructure to attract
 major industrial employers to the district and its vicinity, which
 may be conducted by the district pursuant to financial incentives
 and contracts for professional services with persons or
 organizations selected by the district.
 (3)  acquire, sell, lease, or convey, or otherwise
 dispose of property or an interest in property under terms
 determined by the district;
 (4)  employ necessary personnel; and
 (5)  adopt rules to govern the operation of the
 district and its employees and property.
 (b)  The district shall have the power to plan, acquire,
 establish, develop, construct, renovate, and dispose of projects to
 benefit the district, and shall have the power, authority, rights,
 and duties which will permit accomplishment of the purposes for
 which the district was created.
 (c)  A district shall have the power to enter agreements with
 governmental or private entities, including the providers of public
 utilities and commercial railways, to develop the necessary
 infrastructure and to perform any act the district is authorized to
 perform under this chapter.
 (d)  The implementation of a district project or service is a
 governmental function or service for the purposes of Chapter 791,
 Government Code.
 Sec. 4.03.  NONPROFIT CORPORATION. (a)  The board by
 resolution may authorize the creation of a nonprofit corporation to
 assist and act for the district in implementing a project or
 providing a service authorized by this chapter.
 (b)  The nonprofit corporation:
 (1)  has each power of and is considered to be a local
 government corporation created under Subchapter D, Chapter 431,
 Transportation Code; and
 (2)  may implement any project and provide any service
 authorized by this chapter.
 (c)  The board shall appoint the board of directors of the
 nonprofit corporation. The board of directors of the nonprofit
 corporation shall serve in the same manner as the board of directors
 of a local government corporation created under Subchapter D,
 Chapter 431, Transportation Code, except that a board member is not
 required to reside in the district.
 Sec. 4.04.  COMPETITIVE BIDDING; CONTRACT AWARD. Sections
 375.221 and 375.223, Local Government Code, apply to a district
 created under this Act. The district shall have the authority to
 use a method authorized by Chapter 2269, Government Code for as an
 alternative to competitive bidding. Notwithstanding any other
 provision of this Act to the contrary, any contract between the
 district and a governmental entity or nonprofit corporation created
 under the Development Corporation Act of Subtitle C1, Title 12,
 Chapter 501, Texas Local Government Code shall not be subject to the
 competitive bidding requirement of this Act.
 Sec. 4.05.  ECONOMIC DEVELOPMENT PROGRAMS. (a)  A district
 created under this chapter may engage in activities that accomplish
 the economic development purposes of the district.
 (b)  The district may establish and provide for the
 administration of one or more programs to promote state or local
 economic development and stimulate business and commercial
 activity in the district, including programs to:
 (1)  make loans and grants of public money; and
 (2)  provide district personnel and services.
 (c)  The district may create economic development programs
 and exercise the economic development powers provided to
 municipalities by:
 (1)  Chapter 380, Local Government Code; and
 (2)  Subchapter A, Chapter 1509, Government Code.
 Sec. 4.06.  ADDING OR EXCLUDING LAND. A district created
 under this chapter may add or exclude land in the manner provided by
 Subchapter J, Chapter 49, Water Code, or by Subchapter H, Chapter
 54, Water Code.
 Sec. 4.07.  DISBURSEMENTS AND TRANSFERS OF MONEY. The board
 by resolution shall establish the method of disbursement of the
 districts funds and the number of directors' signatures and the
 procedure required for the disbursement or transfer of district
 money.
 Sec. 4.08.  REPAYMENT OF ORGANIZATIONAL EXPENSES. The
 district's directors are authorized to pay all costs and expenses
 necessarily incurred in the creation and organization of a
 district, the cost of investigation and making plans, the cost of
 the engineer's report, project designer fees, legal fees, and other
 incidental expenses and to reimburse any person for money advanced
 for these purposes. These payments may be made from money obtained
 from the issuance of notes or the sale of bonds first issued by the
 district or out of other revenues of the district.
 ARTICLE 5. ASSESSMENTS
 Sec. 5.01.  PETITION REQUIRED FOR FINANCING SERVICES AND
 IMPROVEMENTS WITH ASSESSMENTS. (a)  The board may not finance a
 service or improvement project with assessments under this chapter
 unless a written petition requesting that service or improvement
 has been filed with the board.
 (b)  A petition filed under Subsection (a) must be signed by
 the owners of a majority of the assessed value of real property in
 the district subject to assessment according to the most recent
 certified tax appraisal roll for the county.
 Sec. 5.02.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)  The
 board by resolution may impose and collect an assessment for any
 purpose authorized by this chapter in all or any part of the
 district.
 (b)  An assessment, a reassessment, or an assessment
 resulting from an addition to or correction of the assessment roll
 by the district, penalties and interest on an assessment or
 reassessment, an expense of collection, and reasonable attorney's
 fees incurred by the district;
 (1)  are a first and prior lien against the property
 assessed;
 (2)  are superior to any other lien or claim other than
 a lien or claim for county, school district, or municipal ad valorem
 taxes; and
 (3)  or the personal liability of and a charge against
 the owners of the property even if the owners are not named in the
 assessment proceedings.
 (c)  The lien is effective from the date of the board's
 resolution imposing the assessment until the date the assessment is
 paid. The board may enforce the lien in the same manner that the
 board may enforce an ad valorem tax lien against real property.
 (d)  The board may make a correction to or deletion from the
 assessment roll that does not increase the amount of assessment of
 any parcel of land without providing notice and holding a hearing in
 the manner required for additional assessments.
 ARTICLE 6. TAXES AND BONDS
 Sec. 6.01.  TAX ELECTION REQUIRED. The district must hold an
 election in the manner provided by Chapter 49, Water Code, or if
 applicable, Chapter 375, Local Government Code, to obtain voter
 approval before the district may impose an ad valorem tax.
 Sec. 6.02.  OPERATION AND MAINTENANCE TAX. (a)  If
 authorized by a majority of the district voters voting in the
 election under Section 6.02., the district may impose an operation
 and maintenance tax on taxable property in the district in the
 manner provided by Section 49.107, Water Code, for any district
 purpose, including to:
 (1)  maintain and operate the district;
 (2)  construct or acquire improvements; or
 (3)  provide a service.
 (b)  The board shall determine the tax rate. The rate may not
 exceed the rate approved at the election.
 Sec. 6.03.  AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND
 OTHER OBLIGATIONS. (a)  The district created under this chapter may
 borrow money on terms determined by the board.
 (b)  The district may issue bonds, notes, or other
 obligations payable wholly or partly from ad valorem taxes,
 assessments, impact fees, revenue contract payments, grants, or
 other district money, or any combination of those sources of money,
 to pay for any authorized district purpose, including but not
 limited to the following:
 (1)  pay interest on the bonds during and after the
 period of the acquisition or construction of a project;
 (2)  pay administrative and operating expenses;
 (3)  create a reserve fund for the payment of principal
 and interest on the bonds; and
 (4)  pay all expenses incurred and to be incurred in the
 issuance, sale, and delivery of the bonds.
 (c)  The limitation on the outstanding principal amount of
 bonds, notes, or other obligations provided by Section 49.4645,
 Water Code, does not apply to the district.
 Sec. 6.04.  BONDS SECURED BY REVENUE OR CONTRACT PAYMENTS. A
 district created under this chapter may issue, without an election,
 bonds secured by:
 (1)  revenue other than ad valorem taxes, including
 contract revenues; or
 (2)  contract payments, provided that the requirements
 of Section 49.108, Water Code, have been met.
 Sec. 6.05.  BONDS SECURED BY AD VALOREM TAXES; ELECTIONS.
 (a)  If authorized at an election under Section 6.01., a district
 created under this chapter may issue bonds payable from ad valorem
 taxes.
 (b)  Section 375.243, Local Government Code, does not apply
 to the district.
 (c)  At the time the district issues bonds payable wholly or
 partly from ad valorem taxes, the board shall provide for the annual
 imposition of a continuing directs annual ad valorem tax, without
 limit as to rate or amount, for each year that all or part of the
 bonds are outstanding as required and in the manner provided by
 Sections 54.601 and 54.602, Water Code.
 (d)  All or any part of any facilities or improvements that
 may be acquired by a district by the issuance of its bonds may be
 submitted as a single proposition or as several propositions to be
 voted on at an election.
 Sec. 6.06.  CONSENT OF MUNICIPALITY REQUIRED. (a)  The board
 may not issue bonds until each municipality in whose corporate
 limits or extraterritorial jurisdiction the district is located has
 consented by ordinance or resolution to the creation of the
 district and to the inclusion of land in the district.
 (b)  This section applies only to the district's first
 issuance of bonds payable from ad valorem taxes.
 ARTICLE 7. SALES AND USE TAXES
 Sec. 7.01.  APPLICABILITY OF CERTAIN TAX CODE PROVISIONS.
 (a)  Chapter 321, Tax Code, governs the imposition, computation,
 administration, enforcement, and collection of the sales and use
 tax authorized by this subchapter except to the extent Chapter 321,
 Tax Code is inconsistent with this chapter.
 (b)  For the purposes of section, a reference in Chapter 321,
 Tax Code, to a municipality or the governing body of a municipality
 is a reference to the district or the board, respectively.
 Sec. 7.02.  ELECTION; ADOPTION OF TAX. (a)  The district may
 adopt a sales and use tax if authorized by a majority of the voters
 of the district voting at an election held for that purpose.
 (b)  The board by order may call an election to authorize the
 adoption of the sales and use tax. The election may be held on any
 uniform election date and in conjunction with any other district
 election.
 (c)  The district shall provide notice of the election and
 shall hold the election in the manner prescribed by Section 2.01.
 (d)  The ballot shall be printed to provide for voting for or
 against the proposition: "Authorization of a sales and use tax in
 the [__________] County Industrial Development District No. [___]
 at a rate not to exceed [_____] percent" (insert rate of one or more
 increments of one-eighth of one percent in accordance with Section
 2.03.
 Sec. 7.03.  SALES AND USE TAX RATE. (a)  After the date the
 results are declared of an election held under Section 7.02 at which
 the voters authorized imposition of a tax, the board shall provide
 by resolution or order the initial tax of the tax, which must be in
 one or more increments of one-eighth of one percent.
 (b)  After the authorization of a tax under Section 7.02, the
 board may increase or decrease the rate of the tax by one or more
 increments of one-eighth of one percent.
 (c)  The board may not decrease the rate of the tax if the
 decrease would impair the repayment of any outstanding debt or
 obligation payable from the tax.
 (d)  The initial rate of the tax or any rate resulting from
 subsequent increases or decreases may not exceed the lesser of:
 (1)  the maximum rate authorized at an election held
 under Section 7.02; or
 (2)  a rate that, when added to the rates of all sales
 and use taxes imposed by other political subdivisions with
 territory in the district, would result in the maximum combined
 rate prescribed Section 321.101(f), Tax Code, at any location in
 the district.
 (e)  In determining whether the combined sales and use tax
 rate under Subsection (d) (2) would exceed the maximum combined
 rate prescribed by Section 321.0101(f), Tax Code, at any location
 in the district, the board shall include:
 (1)  any sales and use tax imposed by a political
 subdivision whose territory overlaps all or part of the district;
 (2)  any sales and use tax to be imposed by the city or
 the county as a result of an election held on the same date as the
 election held under Section 7.02; and
 (3)  any increase to an existing sales and use tax
 imposed by the city of the county as a result of an election held on
 the same date as the election held under Section 7.02.
 (f)  If the district adopts a sales and use tax authorized at
 an election under Section 7.02 and subsequently includes a new
 territory in the district, the district:
 (1)  is not required to hold another election to
 approve the imposition of the sales and use tax in the included
 territory; and
 (2)  shall impose the sales and use tax in the included
 territory as provided in Chapter 321, Tax Code.
 (g)  If the district adopts a sales and use tax authorized at
 an election held under Section 7.02 and subsequently excludes
 territory in the district under this section, the sales and use tax
 is inapplicable to the excluded territory as provided by Chapter
 321, Tax Code, but is applicable to the territory remaining in the
 district.
 Sec. 7.04.  NOTIFICATION OF RATE CHANGE. The board shall
 notify the comptroller of any changes made to the tax rate under
 this subchapter in the same manner the municipal secretary provides
 notice to the comptroller under Section 321.405(b), Tax Code.
 Sec. 7.05.  USE OF REVENUE. Revenue from the sales and use
 tax imposed under this subchapter is for the use and benefit of the
 district and may be used for any district purpose. The district may
 pledge all or part of the revenue to the payment of bonds, notes, or
 other obligations, and that pledge of revenue may be in combination
 with other revenue, including tax revenue, available to the
 district.
 Sec. 7.06.  ABOLITION OF TAX. (a)  Except as provided by
 Subsection (b), the board may abolish the tax imposed under this
 subchapter without an election.
 (b)  The board may not abolish the tax imposed under this
 section if the district has any outstanding debt or obligation
 secured by the tax, and repayment of the debt or obligation would be
 impaired by the abolition of the tax.
 (c)  If the board abolishes the tax, the board shall notify
 the comptroller of that action in the same manner as the municipal
 secretary provides notice to the comptroller under Section
 321.405(b), Tax Code.
 (d)  If the board abolishes the tax or decreases the tax rate
 to zero, a new election to authorize a sales and use tax must be held
 under Section 2.01. before the district may subsequently impose the
 tax.
 ARTICLE 8. DISSOLUTION
 Sec. 8.01.  DISSOLUTION. (a)  A district created under this
 chapter may be dissolved only as provided in this section.
 (b)  The board of directors may petition the commissioners
 court to dissolve the district if a majority of the board finds at
 any time (1) before the authorization of bonds or the final lending
 of its credit, that the proposed undertaking is impracticable or
 cannot be successfully and beneficially accomplished, or (2) that
 all bonds of the district or other debts of the district have been
 paid and the purposes of the district have been accomplished.
 (c)  On receipt of a petition from the board for dissolution
 of the district, the county commissioners shall hold a hearing.
 (d)  If the commissioners court determines from the evidence
 that the best interests of the county and the owners of property and
 interests in property within the district will be served by
 dissolving the district, the commissioners court shall enter in its
 records the appropriate findings and order dissolving the district.
 Otherwise the commissioners court shall enter its order providing
 that the district has not been dissolved. On dissolution of the
 district, funds and property of the district, if any, shall be
 transferred to the commissioners court.
 SECTION 2.  (a)  The legal notice of the intention to
 introduce this Act, setting forth the general substance of this
 Act, has been published as provided by law, and the notice and a
 copy of this Act have been furnished to all persons, agencies,
 officials, or entities to which they are required to be furnished
 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
 Government Code.
 (b)  All requirements of the constitution and laws of this
 state and the rules of procedure of the legislature with respect to
 the notice, introduction, and passage of this Act have been
 fulfilled and accomplished.
 SECTION 3.  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, 2025.