CHAPTER 382. IMPROVEMENT PROJECTS IN CERTAIN COUNTIES
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE B. COUNTY PLANNING AND DEVELOPMENT
CHAPTER 382. IMPROVEMENT PROJECTS IN CERTAIN COUNTIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 382.001. DEFINITIONS. (a) In this chapter:
(1) "Board" means the board of directors of a district.
(2) "District" means a public improvement district created by a
county under this chapter.
(3) "Hotel" has the meaning assigned by Section 156.001, Tax
Code, and includes a timeshare, overnight lodging unit, or
condominium during the time the timeshare, overnight lodging
unit, or condominium is rented by a person who is not the owner
of the timeshare, overnight lodging unit, or condominium.
(4) "Municipality" means the municipality in whose
extraterritorial jurisdiction the improvement project is to be
located.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.002. APPLICABILITY. This chapter applies only to:
(1) a county with a population of 825,000 or more, other than a
county that:
(A) borders on the Gulf of Mexico or a bay or inlet of the gulf;
or
(B) has two municipalities located wholly or partly in its
boundaries each having a population of 300,000 or more; or
(2) a county with a population of 70,000 or more that is
adjacent to a county described by Subdivision (1) in which a
municipality with a population of 35,000 or more is primarily
situated and includes all or a part of the extraterritorial
jurisdiction of a municipality with a population of 1.1 million
or more.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.003. NATURE OF DISTRICT; PURPOSE. (a) A district is
created under Section 52, Article III, and Section 59, Article
XVI, Texas Constitution.
(b) By enacting this chapter, the legislature has created a
program for economic development as provided in Section 52-a,
Article III, Texas Constitution. A county may engage in economic
development projects as provided by this chapter, and, on a
determination of the commissioners court of the county to create
a district, may delegate the authority to oversee and manage the
economic development project to an appointed board of directors.
In appointing a board, the commissioners court delegates its
authority to serve a public use and benefit.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.004. COUNTY MAY ESTABLISH DISTRICT. A county may
create a public improvement district under this chapter if the
county determines it is in the county's best interest. A
district is a political subdivision of this state.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.005. APPLICABILITY; CONFLICT OF LAWS. This chapter
controls to the extent of a conflict between this chapter and
Subchapter A, Chapter 372.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.006. ESTABLISHMENT OF ECONOMIC DEVELOPMENT PROJECTS;
OPTIONAL CREATION OF PUBLIC IMPROVEMENT DISTRICT. (a) The
commissioners court of a county may on receipt of a petition
satisfying the requirements of Section 372.005, establish by
order an economic development project in a designated portion of
the county, or, if the county determines it is in the best
interests of the county, create a district by order only in an
area located in the extraterritorial jurisdiction of a
municipality in that county. If the county is a county described
by Section 382.002(2), the petition described by this subsection
must also be approved by a resolution adopted by the municipality
with a population of 1.1 million or more.
(b) For a county described by Section 382.002(2), a district may
only be created in an area containing at least 2,000 contiguous
acres of land that is located wholly or partly in the
extraterritorial jurisdiction of a municipality with a population
of 1.1 million or more.
(c) The order must:
(1) describe the territory in which the economic development
project is to be located or the boundaries of a district;
(2) specifically authorize the district to exercise the powers
of this chapter if the county has determined that creating a
district is in the county's best interests; and
(3) state whether the petition requests improvements to be
financed and paid for with taxes authorized by this chapter
instead of or in addition to assessments.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 382.051. GOVERNING BODY; TERMS. If a county elects to
delegate the authority granted under this chapter, it shall
appoint a board of seven directors to serve staggered two-year
terms, with three or four directors' terms expiring June 1 of
each year to manage the economic development project or, at the
option of the county, govern the district.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.052. ELIGIBILITY. (a) To be eligible to serve as a
director, a person must be at least 18 years old.
(b) If the population of the district is more than 1,000, to be
eligible to serve as a director, a person must be at least 18
years old, reside in the district, and meet the qualifications of
Section 375.063.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.053. VACANCIES; QUORUM. (a) A board vacancy is filled
in the same manner as the original appointment.
(b) A vacant board position is not counted for the purposes of
establishing a quorum of the board.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.054. CONFLICTS OF INTEREST. Chapter 171 governs
conflicts of interest for directors.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.055. COMPENSATION. (a) For purposes of this section,
"performs the duties of a director" means substantial performance
of the management of the district's business, including
participation in board and committee meetings and other
activities involving the substantive deliberation of district
business and in pertinent educational programs, but does not
include routine or ministerial activities such as the execution
of documents or self-preparation for meetings.
(b) A county is authorized to compensate the directors when they
perform the duties of a director. The county shall compensate a
director not more than $50 a day for each day that the director
performs the duties of a director.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.056. OATH AND BOND; OFFICER ELECTIONS. As soon as
practicable, a board member shall give the bond and take the oath
of office in accordance with Section 375.067, and the board shall
elect officers in accordance with Section 375.068.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 382.101. COUNTY'S GENERAL POWERS AND DUTIES. (a) A county
operating under this chapter has the powers and duties of:
(1) a county development district under Chapter 383, except for
Section 383.066;
(2) a road district created by a county under Section 52,
Article III, Texas Constitution; and
(3) a municipality or county under Chapter 380 or 381, or under
Section 372.003(b)(9).
(b) A county is authorized to manage an economic development
project in a designated portion of the county, or to create a
district and to delegate to a board the county's powers and
duties as provided by this chapter.
(c) A county may not delegate to a district the powers and
duties of a road district or the power to provide water,
wastewater, or drainage facilities under this section unless both
the municipality and county consent by resolution.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.102. DEVELOPMENT AGREEMENTS. A county may enter into a
development agreement with an owner of land in the territory
designated for an economic development project, or a district may
enter into a development agreement, for a term not to exceed 30
years on any terms and conditions the county or the board
considers advisable. The parties may amend the agreement.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.103. ECONOMIC DEVELOPMENT AGREEMENT; ELECTION; TAXES.
(a) A county may enter into an agreement, only on terms and
conditions the commissioners court and a board consider
advisable, to make a grant or loan of public money to promote
state or local economic development and to stimulate business and
commercial activity in the territory where the economic
development project is located, or in the district, including a
grant or loan to induce the construction of a tourist destination
or attraction in accordance with Chapter 380 or 381.
(b) If authorized by the county, a district may order an
election to be held in the district to approve a grant or loan
agreement. The grant or loan may be payable over a term of years
and be enforceable on the district under the terms of the
agreement and the conditions of the election, which may, subject
to the requirements of Section 382.153(c), include the
irrevocable obligation to impose an ad valorem tax, sales and use
tax, or hotel occupancy tax for a term not to exceed 30 years.
If authorized at the election, the board may contract to pay the
taxes to the recipient of the grant or loan in accordance with
the agreement.
(c) If the property owners petitioning a county to create a
district under Section 382.006 propose that the district be
created only to provide economic development grants or loans and
road improvements and not to impose assessments, and the county
determines that the creation of the district is in the best
interests of the county, the district is not required to prepare
a feasibility report, a service plan or assessment plan, or an
assessment roll as required by Subchapter A, Chapter 372.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.104. CONTRACTS; GENERAL. (a) A district may contract
with any person, including the municipality or county, on the
terms and conditions and for a period of time the board
determines, to:
(1) accomplish any district purpose, including a contract to
pay, repay, or reimburse from tax proceeds or another specified
source of money any costs, including reasonable interest,
incurred by a person on the county's or the district's behalf,
including all or part of the costs of an improvement project; and
(2) receive, administer, and perform the county's or the
district's duties and obligations under a gift, grant, loan,
conveyance, or other financial assistance arrangement relating to
the investigation, planning, analysis, study, design,
acquisition, construction, improvement, completion,
implementation, or operation by the district or another person of
an improvement project or proposed improvement project.
(b) A state agency, municipality, county, other political
subdivision, corporation, or other person may contract with the
county or district to carry out the purposes of this chapter.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.105. PROCUREMENT CONTRACTS. A district may contract
for materials, supplies, and construction:
(1) in accordance with the laws applicable to counties; or
(2) in the same manner that a local government corporation
created pursuant to Chapter 431, Transportation Code, is
authorized to contract.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.106. RULES; ENFORCEMENT. A county may authorize the
board to adopt rules:
(1) to administer and operate the district;
(2) for the use, enjoyment, availability, protection, security,
and maintenance of district property, including facilities; or
(3) to provide for public safety and security in the district.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.107. FEES. A county may authorize a board to
establish, revise, repeal, enforce, collect, and apply the
proceeds from user fees or charges for the enjoyment, sale,
rental, or other use of its facilities or other property, or for
services or improvement projects.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.108. RULES; REGULATION OF ROADS AND OTHER PUBLIC AREAS.
(a) A county may authorize a board to adopt rules to regulate
the private use of public roadways, open spaces, parks,
sidewalks, and similar public areas in the district, if the use
is for a public purpose.
(b) A rule, order, ordinance, or regulation of a county or
municipality that conflicts with a rule adopted under this
section controls to the extent of any conflict.
(c) A rule adopted under this section may provide for the safe
and orderly use of public roadways, open spaces, parks,
sidewalks, and similar public areas in the area of the district
or economic development project.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.109. ROAD PROJECTS. (a) To the extent authorized by
Section 52, Article III, Texas Constitution, the county may
delegate to the district the authority to construct, acquire,
improve, maintain, or operate macadamized, graveled, or paved
roads or turnpikes, or improvements in aid of those roads or
turnpikes, inside the territory targeted by the county for an
economic development project, or the district.
(b) A road project must meet all applicable construction
standards, zoning and subdivision requirements, and regulatory
ordinances of each municipality in whose corporate limits or
extraterritorial jurisdiction the district is located. If the
district is located outside the extraterritorial jurisdiction of
a municipality, a road project must meet all applicable
construction standards, zoning and subdivision requirements, and
regulatory ordinances of each county in which the district is
located.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.110. UTILITIES. (a) This chapter does not grant the
board any right-of-way management authority over public
utilities.
(b) To the extent the construction, maintenance, or operation of
a project under this chapter requires the relocation or extension
of a public utility facility, the district shall reimburse the
public utility for all costs associated with the relocation,
removal, extension, or other adjustment of the facility.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.111. SERVICE PLAN REQUIRED. The commissioners court of
the county that created the district may require a district to
prepare an annual service plan, in the manner provided for by
Section 372.013, that meets the approval of the commissioners
court.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.112. NO EMINENT DOMAIN. A district may not exercise
the power of eminent domain.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; TAXES
Sec. 382.151. NO TAX ABATEMENTS. A county may not grant a tax
abatement or enter into a tax abatement agreement for a district.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.152. BONDS; NOTES. (a) A district may not issue bonds
unless approved by the commissioners court of the county that
created the district. Bonds may not be issued unless approved by
a majority of the voters of the district voting in an election
held for that purpose. A bond election under this subsection
does not affect prior bond issuances and is not required for
refunding bond issuances.
(b) A district may not issue a negotiable promissory note or
notes unless approved by the commissioners court of the county
that created the district.
(c) If the commissioners court grants approval under this
section, bonds, notes, and other district obligations may be
secured by district revenue or any type of district taxes or
assessments, or any combination of taxes and revenue pledged to
the payment of bonds.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.153. AUTHORITY TO IMPOSE ASSESSMENTS AND AD VALOREM,
SALES AND USE, AND HOTEL OCCUPANCY TAXES; ELECTION. (a) A
county or a district may accomplish its purposes and pay the cost
of services and improvements by imposing:
(1) an assessment;
(2) an ad valorem tax;
(3) a sales and use tax; or
(4) a hotel occupancy tax.
(b) A district may impose an ad valorem tax, hotel occupancy
tax, or sales and use tax to accomplish the economic development
purposes prescribed by Section 52a, Article III, Texas
Constitution, if the tax is approved by:
(1) the commissioners court of the county that created the
district; and
(2) a majority of the voters of the district voting at an
election held for that purpose.
(c) A county must adopt an order providing whether a district
has the authority to impose a hotel occupancy tax, sales and use
tax, or ad valorem tax, and must provide the rate at which the
district may impose the tax. A tax rate approved by the
commissioners court and pledged to secure bonds, notes, grant
agreements, or development agreements may not be reduced until
the obligations of those instruments have been satisfied.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.154. USE OF REVENUE FROM TAXES. A tax authorized by a
county to be imposed under this chapter may be used to accomplish
any improvement project or road project, or to provide any
service authorized by this chapter or Chapter 372, 380, 381, or
383.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.155. HOTEL OCCUPANCY TAX. (a) A county may authorize
a district to impose a hotel occupancy tax on a person who pays
for the use or possession of or for the right to the use or
possession of a room that is ordinarily used for sleeping in a
hotel in the district.
(b) If authorized by a county, a district shall impose a hotel
occupancy tax as provided by Chapter 383, Local Government Code,
and Section 352.107, Tax Code, except that a hotel occupancy tax:
(1) may be used for any purpose authorized in this chapter; and
(2) is authorized by the county to be imposed by the district.
(c) The hotel occupancy tax rate is the greater of nine percent
or the rate imposed by the municipality.
(d) A hotel occupancy tax may not be imposed on the occupants of
a hotel unless the owner of the hotel agrees to the imposition of
the hotel occupancy taxes under this chapter. After the owner
agrees, the agreement may not be revoked by the owner of the
hotel or any subsequent owner of the hotel. After an agreement
under this section, the district may impose hotel occupancy taxes
as provided by this chapter.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.156. SALES AND USE TAX. (a) A commissioners court may
authorize a district to impose a sales and use tax in increments
of one-eighth of one percent up to a rate of two percent.
(b) Except as otherwise provided in this chapter, a sales and
use tax must be imposed in accordance with Chapter 383, Local
Government Code, or Chapter 323, Tax Code.
(c) The ballot for a sales tax election shall be printed to
provide for voting for or against the proposition: "A sales and
use tax at a rate not to exceed ____ [insert percentage rate] in
the _______________ [insert name of district]" or "The adoption
of a ____ [insert percentage rate] sales and use tax in the
_______________ [insert name of district]."
(d) A tax authorized at an election held under this section may
be imposed at a rate less than or equal to the rate printed in
the ballot proposition.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.157. AD VALOREM TAX. A commissioners court may
authorize a district to impose an ad valorem tax on property in
the district in accordance with Chapter 257, Transportation Code.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.158. BORROWING. The commissioners court may authorize
a district to borrow money for any district purpose, including
for a development agreement that authorizes the district to
borrow money.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.159. REPAYMENT OF COSTS. The commissioners court may
authorize a district, by a lease, lease-purchase agreement,
installment purchase contract, or other agreement, or by the
imposition or assessment of a tax, user fee, concession, rental,
or other revenue or resource of the district, to provide for or
secure the payment or repayment of:
(1) the costs and expenses of the establishment, administration,
and operation of the district;
(2) the district's costs or share of costs of an improvement
project; or
(3) the district's contractual obligations or indebtedness.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
SUBCHAPTER E. ANNEXATION BY MUNICIPALITY; TAXES
Sec. 382.201. LIABILITIES; ASSUMPTION OF ASSETS AFTER COMPLETE
ANNEXATION BY MUNICIPALITY. (a) If the municipality annexes the
entire territory of a district, the municipality shall assume the
district's assets, but is not liable for the district's debt or
other obligations.
(b) If the county has authorized a district to have debt or
other obligations, the district remains in existence after the
territory is annexed by the municipality for the purpose of
collecting any taxes or assessments authorized by the county and
imposed by the district before annexation. Taxes or assessments
collected after annexation must be used by the district solely
for the purpose of satisfying any preexisting county-authorized
district debt or other obligation. After the debt or other
obligations have been discharged, or two years have expired since
the date of the annexation, the district is dissolved and any
outstanding debt or obligations are extinguished.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.
Sec. 382.202. AUTHORITY TO IMPOSE TAXES OF ASSESSMENTS AFTER
PARTIAL OR COMPLETE ANNEXATION. (a) After a district has been
annexed by a municipality wholly or partly for general purposes,
the county may not authorize the district to impose an ad valorem
tax, hotel occupancy tax, or sales and use tax, or collect an
assessment in the area that the municipality overlaps the
district, except as provided by Subsection (b) or Section
382.201(b).
(b) A district may continue to impose a tax in an area that the
municipality annexes for limited purposes and in which the
municipality does not impose taxes. If the municipality annexes
an area for limited purposes and imposes some of the taxes which
the district is imposing but not all of them, the district may
continue to impose taxes only to the extent that the level of
taxation of the municipality and the district combined,
calculating the hotel tax, the sales tax, and the ad valorem tax
independently, is equal to or less than the tax level of the
municipality as to fully annexed areas.
(c) The legislature intends that the level of taxation of areas
where the district and the municipality overlap do not exceed the
level of taxation of fully annexed areas.
Transferred from Local Government Code, Subchapter C, Chapter 372
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 15.009, eff. September 1, 2009.