2009 Texas Code
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
CHAPTER 324. PARK AND RECREATION DISTRICT AND PARK BONDS: COUNTIES WITH FRONTAGE ON GUADALUPE AND COMAL RIVERS  

LOCAL GOVERNMENT CODE

TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES

SUBTITLE B. COUNTY PARKS AND OTHER RECREATIONAL AND CULTURAL

RESOURCES

CHAPTER 324. PARK AND RECREATION DISTRICT AND PARK BONDS:

COUNTIES WITH FRONTAGE ON GUADALUPE AND COMAL RIVERS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 324.001. ELIGIBLE COUNTIES. In a county that has river

frontage on both the Guadalupe and Comal rivers, a district may

be created for all or part of the unincorporated area in the

county to:

(1) improve, equip, maintain, finance, and operate any public

park located in the district and owned or leased by the county;

(2) conserve the natural resources in the district; and

(3) improve the public health, safety, and welfare in the

district.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.002. DEFINITIONS. In this chapter:

(1) "District" means a park and recreation district created

under this chapter.

(2) "Board" means the board of directors of a park district.

(3) "Fee" includes a toll or any other charge.

(4) "Park" includes any land, including any improvements to the

land, that is administered, operated, or managed by the district

for use by the general public.

(5) "District facility" includes any facility, land, or

improvement to land, whether permanent or temporary, that is

owned, leased, or acquired by the district.

(6) "Hotel" means a building in which persons may obtain

sleeping accommodations for consideration of a fee and includes a

motel, tourist court, lodging house, inn, rooming house, or

condominium, but does not include a hospital, sanitarium, or

nursing home.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1989, 71st Leg., ch. 539, Sec. 1, eff.

Sept. 1, 1989; Acts 1993, 73rd Leg., ch. 1039, Sec. 2, eff. Aug.

30, 1993.

SUBCHAPTER B. CREATION OF PARK AND RECREATION DISTRICT

Sec. 324.021. ORDER OF ELECTION. (a) The commissioners court

of the county may order an election on the issue of the creation

of a district:

(1) on the commissioners court's own motion; or

(2) after the filing of a written petition signed by a number of

the registered voters who reside in the county equal to at least

five percent of the votes received in the county in the most

recent gubernatorial general election.

(b) The petition or commissioners court's motion must include:

(1) the name of the proposed district;

(2) an accurate description of the area to be included in the

district by metes and bounds and by public roads or

rights-of-way; and

(3) an accurate plat of the area to be included in the district.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.022. NOTICE OF HEARING. (a) After the filing of the

petition, the commissioners court shall set a date for a hearing

on the petition that is after the 20th day but on or before the

40th day after the date the petition is filed.

(b) The commissioners court shall publish notice of the petition

and the hearing date in a newspaper of general circulation in the

county.

(c) The notice must be published once each week for a period of

two weeks before the hearing date.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.023. HEARING. (a) At the hearing, evidence shall be

taken as in civil cases in the county court. The commissioners

court shall hear all arguments for and against the creation of

the district.

(b) The hearing may be adjourned from time to time on good cause

shown.

(c) The commissioners court shall grant the petition and order

the election on the issue of the creation of the district if the

court finds that:

(1) the petition is signed by the required number of registered

voters in the county;

(2) the district will serve the purposes prescribed by Section

324.001; and

(3) the district does not include any incorporated area.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.024. CREATION ELECTION. (a) The election shall be

held on the date of the first regularly scheduled countywide

election that follows the date of the order of the election and

for which there is sufficient time to comply with other

requirements of law.

(b) The returns on the election shall be certified and canvassed

and the results declared, in the same manner as provided for

other county elections. If a majority of the votes received on

the issue favor creation of the district, the commissioners court

shall declare the district created and shall enter the results in

its minutes at its next regularly scheduled meeting.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.025. COSTS OF CREATION AND ORGANIZATION. The costs

necessarily incurred in the creation and organization of the

district may be paid from the district's revenue from bond

anticipation notes, the first revenue bonds issued by the

district, or any other source.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

SUBCHAPTER C. BOARD OF DIRECTORS OF PARK AND RECREATION DISTRICT

Sec. 324.041. COMPOSITION AND APPOINTMENT OF BOARD. (a) A

district is governed by a board composed of seven members.

(b) The commissioners court shall appoint the members of the

board.

(c) A board member must be a citizen of the United States and

must reside in the county. Four of the board members must reside,

own property, or own a business in the district. One board member

must live outside the district.

(d) A board member may not be an officer or employee of the

county in which the district is created or of a municipality in

that county.

(e) Three members of the initial board serve one-year terms and

four serve two-year terms. The members shall draw lots to

determine who serves the one-year terms. Thereafter, each

director is appointed for a term of two years from the date of

the director's appointment.

(f) If a vacancy occurs on the board, the commissioners court

shall appoint a person to fill the vacancy for the unexpired

term.

(g) The commissioners court shall file a certificate of the

appointment of each board member with the county clerk. The

certificate is conclusive evidence of the proper appointment of

the board member.

(h) A board member may not serve more than four consecutive full

terms.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.042. OATH AND BOND. (a) Within 30 days after the date

a board member is appointed, the member must qualify by taking

the official oath and by filing a good and sufficient bond with

the county clerk.

(b) The bond must be:

(1) payable to the order of the commissioners court;

(2) payable in an amount prescribed by the commissioners court

of $5,000 or more; and

(3) conditioned that the board member will faithfully perform

the duties of a board member, including the proper handling of

all money that comes into the board member's hands in the board

member's official capacity.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 5, eff.

Aug. 30, 1993.

Sec. 324.043. COMPENSATION AND REIMBURSEMENT. A board member is

not entitled to compensation but is entitled to reimbursement for

necessary expenses, including travel expenses, incurred in

performing the duties of a board member. A board member's

reimbursement for necessary expenses, in excess of $250, shall be

approved by the commissioners court. A board member's approved

expense account shall be paid in due time by the board's check or

warrant.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 6, eff.

Aug. 30, 1993.

Sec. 324.044. QUORUM; MAJORITY VOTE. Four board members

constitute a quorum of the board. The board may act on the

majority of the vote of the assembled quorum.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1989, 71st Leg., ch. 539, Sec. 2, eff.

Sept. 1, 1989.

Sec. 324.045. APPROVAL OF COMMISSIONERS COURT. (a) The board

is subject to the supervision of the commissioners court in the

exercise of all its rights, powers, and privileges and in the

performance of its duties.

(b) Not later than the 30th day after the date on which the

board acts, the commissioners court may approve or disapprove the

action. If the court disapproves the act, the act is ineffective.

Otherwise, the act becomes effective on the date that the

commissioners court approves the act or on the 31st day after the

date on which the board acted, whichever is first.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1989, 71st Leg., ch. 539, Sec. 3, eff.

Sept. 1, 1989.

Sec. 324.046. ORGANIZATION; MEETINGS. (a) Annually, the board

shall elect a president, a vice-president, a secretary, and a

treasurer, except that the first president shall be designated by

the commissioners court at the time of the appointment of the

first board.

(b) The offices of secretary and treasurer may be held by the

same person. If either the secretary or the treasurer is absent

or unavailable, the president may appoint another board member to

act for and perform the duties of the absent or unavailable

officer.

(c) The board shall set times for and hold regular meetings. On

the request of two or more board members, the board may hold

special meetings at other times as necessary.

(d) The board shall hold its meetings at a public place in a

county in which at least part of the district is located.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 7, eff.

Aug. 30, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

491, Sec. 1, eff. September 1, 2005.

SUBCHAPTER D. POWERS AND DUTIES

Sec. 324.061. DEPOSITORIES AND DISBURSEMENTS. (a) Money and

other funds belonging to or under control of the board are public

funds.

(b) The board shall select depositories for the money.

(c) A warrant or check for the withdrawal of money must be

signed by two persons authorized to sign a warrant or check by

resolution entered in the minutes of the board.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 8, eff.

Aug. 30, 1993.

Sec. 324.062. PERSONNEL. (a) The board may employ managers,

secretaries, stenographers, bookkeepers, accountants, technical

experts, and any other support personnel or agents the board

considers necessary.

(b) The board shall determine the qualifications and set the

duties of employees.

(c) The board may call on the county attorney, district

attorney, or criminal district attorney for the legal services it

requires. In addition, or in the alternative, the board may

contract for and compensate its own legal staff.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 9, eff.

Aug. 30, 1993; Acts 1997, 75th Leg., ch. 452, Sec. 1, eff. Sept.

1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

491, Sec. 2, eff. September 1, 2005.

Sec. 324.063. SEAL. The board shall adopt a seal to place on

each lease, deed, or other instrument usually executed under seal

and on other instruments as the board requires.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.064. CONTRACTS. (a) The board may enter into any

contract that the board considers necessary or convenient to

carry out the purposes and powers granted by this chapter,

including a lease or other contract connected with, incident to,

or affecting the acquisition, financing, construction, equipment,

maintenance, renovation, repair, improvement, or operation of

real property or facilities.

(b) If the contract is for an amount less than or equal to the

amount in Section 262.023, the board may enter into the contract

without advertisement. If the contract is for more than that

amount, the contract is subject to the bidding provisions for

contracts applicable to the county.

(c) To be effective, a contract must be:

(1) approved by resolution of the board;

(2) executed by the president or vice-president; and

(3) attested by the secretary or treasurer.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 10, eff.

Aug. 30, 1993; Acts 1997, 75th Leg., ch. 452, Sec. 2, eff. Sept.

1, 1997.

Amended by:

Acts 2005, 79th Leg., Ch.

491, Sec. 3, eff. September 1, 2005.

Sec. 324.065. SUITS. The board may sue and be sued in its own

name.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.066. DISTRICT RULES AND ORDINANCES; CRIMINAL PENALTY;

CIVIL ENFORCEMENT. (a) The board may adopt reasonable rules and

ordinances applicable to:

(1) the administration, enforcement, and collection of district

taxes and the issuance, suspension, and cancellation of revenue

permits;

(2) littering and litter abatement on the public water in the

district, including the possession and disposition of glass

containers;

(3) activities that endanger the health and safety of persons or

property on public water in the district, subject to the public's

paramount right to navigate inland water; and

(4) tenants, business privileges, concessionaires, users, and

activities affecting district property and facilities, including

hunting, fishing, boating, camping, tubing, swimming, and

conservation of natural resources.

(b) A police officer, constable, sheriff, or other law

enforcement officer with jurisdiction in the county may arrest

persons violating rules or ordinances of the board, and carry out

the prosecution of those persons in the proper court.

(c) A person who violates a rule or ordinance adopted under this

section commits an offense. An offense under this section is a

Class C misdemeanor.

(d) The county attorney, the district attorney, the criminal

district attorney, or an attorney retained by the board for this

purpose may bring an action to enjoin a violation of board rules

or ordinances, and if the board authorizes, may seek damages and

attorney's fees based on the violation, if the violation

involves:

(1) the providing or offering of a service or the use or rental

of a facility or an item for remuneration by a person who does

not hold a revenue permit issued by the district or for which

collection of a tax is required;

(2) failure of a revenue permit holder to remit a tax imposed

and the tax has been due for more than 60 days; or

(3) violation by a revenue permit holder of a district rule

relating to an activity that endangers the health or safety of a

person or property in the district.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 11, eff.

Aug. 30, 1993; Acts 1997, 75th Leg., ch. 452, Sec. 3, eff. Sept.

1, 1997.

Sec. 324.0665. BOND. If the board brings an action to enforce

this subchapter or enjoin a violation of a rule or ordinance

adopted by the board under this subchapter, the board is not

required to post a bond.

Added by Acts 1997, 75th Leg., ch. 452, Sec. 4, eff. Sept. 1,

1997.

Sec. 324.067. POWER TO ACQUIRE PROPERTY. (a) For the

conservation of the natural resources of the county, the board

may acquire land in the county, in or out of the district,

including streams, lakes, submerged lands, and swamplands, to

create parks. The board may develop, improve, protect, and

promote the land in a manner the board considers conducive to the

general welfare.

(b) The land may be acquired by:

(1) gift or devise;

(2) lump-sum payment; or

(3) installment payments with or without option to purchase.

(c) The district does not have the power of eminent domain.

(d) The commissioners court by eminent domain may not acquire

land for park purposes and subsequently transfer by any means the

land or control of the land to the board for park purposes or

other purposes. If the commissioners court by eminent domain

acquires land for purposes other than park purposes, the court

may not subsequently transfer by any means the land or control of

the land to the board for park purposes or other purposes unless

at least 10 years have expired after the date of the acquisition

by the court. This subsection applies only to land that the

commissioners court acquires by eminent domain on or after August

31, 1987.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.068. SALE OR LEASE OF LANDS. (a) If the board

determines that any land owned by the district is not necessary

for the purposes for which the land was acquired, the board may

sell and dispose of the land on terms the board considers

advisable.

(b) The board may lease or permit the use of land for purposes

consistent with the purposes for which the land was acquired and

on terms the board considers advisable.

(c) Before land owned by the district may be sold, once a week

for four consecutive weeks in a newspaper of general circulation

in the county, the board must publish a notice of its intention

to sell the land. The notice must include an accurate description

of the land, the time of a public hearing that is before the 10th

day before the disposition date, and the time and place at which

sealed bids will be received.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.069. ACCEPTANCE OF GRANTS AND GRATUITIES. To promote,

establish, or accomplish a purpose of this chapter, the board

may:

(1) accept grants and gratuities in any form from any source,

including the United States government, this state, any state or

federal agency, any private or public corporation, or any other

person;

(2) accept donations of money or other property; and

(3) act as trustee of land, money, or other property.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.070. COOPERATION WITH OTHER PUBLIC AUTHORITIES. Under

an agreement with a public authority in control of parkland in

the county, the district may assume control of all or part of the

parkland within the district or contiguous to the district or may

contract or cooperate with the public authority in connection

with the use, development, improvement, and protection of the

parkland.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 12, eff.

Aug. 30, 1993.

Sec. 324.071. IMPROVEMENT OF PUBLIC HIGHWAY. The board may

enter into agreements with the public authorities in control of a

highway in a park area or connecting two or more park areas to

make alterations in the route or width of the highway, or to

grade, drain, pave, or otherwise improve the highway.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.072. PLAN FOR DEVELOPMENT OF PARKS; ANNUAL BUDGET;

FILING. (a) The board shall develop and approve a three-year

master plan for capital development and the development of parks

and district facilities.

(b) The board shall annually review and revise the master plan

during the budget process and shall file a copy of the master

plan and revisions with the county clerk.

(c) The board shall annually develop and approve a one-year

budget that must include the suggested revisions and additions to

the master plan.

(d) The board shall submit the annual budget to the

commissioners court for approval and shall file a copy with the

county clerk.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 13, eff.

Aug. 30, 1993.

SUBCHAPTER E. BONDS, TAXES, AND OTHER FINANCIAL MATTERS

Sec. 324.091. REVENUE BOND ELECTION. (a) Revenue bonds may not

be issued by the district until authorized by a majority vote of

qualified voters of the district voting at an election called and

held for that purpose.

(b) The board may order a bond election. Regardless of Section

324.045(b), the order is not effective unless approved by the

commissioners court. Except as provided by this section, the

election shall be held in the manner provided by the Election

Code.

(c) At an election to authorize bonds, the ballot must be

printed to provide for voting for or against the issuance of

revenue bonds.

(d) If a majority of the votes cast at the election favor the

issuance of the bonds, the bonds may be issued by the board, but

if a majority of the votes cast at the election do not favor

issuance of the bonds, the bonds may not be issued.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.092. REVENUE BONDS. (a) For the purpose of providing

funds for the acquisition of any permanent improvement to

property of the district or for the acquisition, renovation,

repair, improvement, equipping, or construction of a facility to

be used in connection with the operation of the district, the

board may issue revenue bonds that are approved at an election

called under Section 324.091.

(b) The district may make the bonds payable out of any revenue

of the district but may not levy ad valorem taxes on any property

located within the district.

(c) Bonds issued under this chapter are fully negotiable

instruments under Chapter 8, Business & Commerce Code, and

other laws of this state.

(d) Except as provided by Section 324.095, among the permanent

improvements and facilities that may be acquired through the

issuance of revenue bonds are bathhouses; bathing beaches;

swimming pools; pavilions; athletic fields; golf courses;

buildings and grounds for assembly, entertainment, health, and

recreation; restaurants and refreshment places; yacht basins;

parking lots; and roads.

(e) The bonds must be issued in the name of the county, signed

by the county judge, and attested by the county clerk and ex

officio clerk of the commissioners court. The seal of the

commissioners court must be impressed on the bonds.

(f) The bonds must mature serially or otherwise in not more than

40 years and may be sold at a price and under terms determined by

the board to be the most advantageous reasonably obtainable.

(g) The resolution authorizing the issuance of the bonds may

contain provisions for redemption of the bonds before their

respective maturity dates at prices and times prescribed in the

resolution. Except for rights of redemption expressly reserved in

the resolution and in the revenue bonds, the bonds are not

subject to redemption before maturity.

(h) The bonds may be made payable at times and at places, inside

or outside the state, prescribed in the resolution.

(i) The bonds may be made registrable as to principal or as to

both principal and interest.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.093. APPROVAL BY ATTORNEY GENERAL. (a) Bonds issued

by the district must be submitted to the attorney general for

examination. The bonds must be submitted with the record relating

to their issuance and the record relating to the creation of the

district.

(b) If the attorney general finds that the bonds have been

authorized in accordance with law, the attorney general shall

approve the bonds and the comptroller shall register the bonds.

(c) Bonds that are approved and registered under this section

are incontestable and are valid and binding obligations in

accordance with their terms.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.094. REFUNDING BONDS. The district may issue refunding

bonds under Chapter 1207, Government Code.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.321, eff.

Sept. 1, 2001.

Sec. 324.095. PERMANENT IMPROVEMENTS ON LAND WITH RIVER

FRONTAGE. (a) Through revenue bonds or any other revenue

sources, the district may not purchase a river access location

except for use as a:

(1) sanitary facility;

(2) litter receptacle;

(3) drinking water facility;

(4) parking lot;

(5) road or trail;

(6) river ingress or egress facility;

(7) information booth;

(8) tax collection facility;

(9) visitor's center; or

(10) district office.

(b) At a river access location permitted under this section, the

district may not engage in any activity that competes with

private enterprise except the provision and operation of a

permanent improvement permitted under this section.

(c) Subject to the restrictions provided by Section 324.067(d),

the district may accept as a grant, gratuity, gift, or devise

land with river access and any improvement that may exist on the

land at the time of the gift.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 14, eff.

Aug. 30, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

491, Sec. 4, eff. September 1, 2005.

Sec. 324.096. FEES. (a) The expense of operation and

maintenance of a facility of which the revenues are pledged to

the payment of bonds is a first lien on and charge against the

income of the facility. As long as any of the bonds or interest

remain outstanding, the board shall charge or require the payment

of fees for the use of the facilities, except drinking water or

sanitary facilities. Fees must be equal and uniform within

classes defined by the board and must be in amounts that will

yield revenues at least sufficient to pay the expenses of

operation and maintenance and to make the payment prescribed in

the bond resolution for debt service. "Debt service," as defined

in the bond resolution, may include: the payment of principal and

interest as each matures, the establishment and maintenance of

funds for extensions and improvements, an operating reserve, and

an interest and sinking fund reserve.

(b) Except as provided by a contract entered into by the board,

the board may determine the rate of fees charged for the use,

operation, or lease of facilities, services, or equipment of the

district. The board shall fix the fees in amounts sufficient to

comply with the covenants in the bond resolution.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.097. FINANCIAL STATEMENT; BUDGET. (a) On or before

February 1 of each year, the board shall prepare and file with

the officer responsible for the county budget a complete

financial statement showing the financial status of the district

and the district's properties, funds, and indebtedness.

(b) The financial statement must be prepared in accordance with

standards adopted by the Government Accounting Standards Board

and must show separately all information concerning:

(1) revenue bonds, the income from pledged facilities, and

expenditures of that revenue;

(2) leases, promissory notes, and other indebtedness of the

district; and

(3) fee and tax revenue of the district.

(c) At the time the financial statement is filed, the board

shall file with the commissioners court a proposed budget of its

needs for the next fiscal year. The proposed budget shall include

items that:

(1) the board is unable to finance from the district's revenues,

including revenues from facilities of which the income is pledged

to revenue bonds; and

(2) the board requests purchase of with county funds.

(d) The officer responsible for the county budget shall include

the district's proposed budget on the calendar for the next

regularly scheduled meeting of the commissioners court. As part

of the county's tentative budget, the items certified by the

board are subject to state law relating to county budgets.

(e) The county auditor may conduct a general audit and issue a

financial statement of the district at times the auditor

considers appropriate.

(f) The board shall operate the parks and facilities under its

control for which revenues are pledged to the payment of revenue

bonds in a manner that will produce gross revenues sufficient to

pay the operation and maintenance expenses of the parks and

facilities without seeking from the commissioners court the

appropriation of additional money for expenses.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 15, eff.

Aug. 30, 1993.

Sec. 324.098. BOND ANTICIPATION NOTES. (a) If funds are not

available to pay the principal of or interest on bonds issued by

the district or to pay other obligations of the district, the

board may declare an emergency and may issue negotiable bond

anticipation notes to borrow the money needed. The bond

anticipation notes may bear interest at a rate that does not

exceed the maximum rate provided by Chapter 1204, Government

Code, and must mature within one year after their date of

issuance.

(b) Bond anticipation notes may also be issued for any purpose

for which bonds of the district have been voted or to refund

previously issued bond anticipation notes.

(c) Bond anticipation notes issued under this section must be

authorized by resolution of the board, subject to approval by the

commissioners court under Section 324.045, and must be executed

by the president of the board and attested by the secretary of

the board.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.322, eff.

Sept. 1, 2001.

Sec. 324.099. IMPOSITION AND COLLECTION OF TAXES; CRIMINAL

PENALTY. (a) The district may levy and collect taxes and issue

revenue permits to carry out any purposes prescribed by this

chapter and to pay the obligations of the district.

(b) The taxes that a district may levy apply only within the

district and are:

(1) a tax, at a rate not greater than five percent established

by resolution of the board, imposed on each person who, under a

lease, concession, permit, right of access, license, contract, or

agreement, pays $1 or more:

(A) for each day to rent:

(i) a camping space;

(ii) a picnic space;

(iii) a parking space;

(iv) a boat slip or dry boat storage;

(v) fishing tackle; or

(vi) water-oriented recreational equipment intended for use on a

lake in the district, including a boat, personal watercraft,

windsurfer, or sailing craft;

(B) for each day of recreational guide services; or

(C) for an initiation or membership fee of a private club or

organization that provides water-oriented recreational equipment

for use to a member;

(2) a tax imposed by resolution of the board at a rate not

greater than four percent on the cost of occupancy of a hotel if

the cost of occupancy is $2 or more each day; a tax is not

imposed if the accommodations are leased or contracted to one

party for at least 30 consecutive days; and

(3) a tax imposed by resolution of the board at a rate not

greater than $1 a person:

(A) for each rental of water-oriented recreational equipment,

including a canoe, tube, raft, boat, or kayak intended for use on

a river in the district; or

(B) if the person is not renting equipment under Paragraph (A),

for each person using shuttle service in the district, including

for river ingress and egress.

(c) The taxes imposed under this section are payable by the

purchaser or consumer of the items subject to the tax except that

if the person responsible for collecting the tax does not comply

with this chapter by collecting and remitting the tax to the

district, the person responsible for collecting the tax is liable

for the tax.

(d) A person who does not hold a revenue permit issued by the

board may not provide or offer for remuneration a service, a use

of a facility, or a rental of an item if the price paid for the

service, use, or rental is taxed under this section. A person who

holds a revenue permit issued by the district shall collect the

taxes imposed under this section and shall report and remit the

collected taxes to the district as the district requires.

(e) If a revenue permit holder remits taxes after the due date

but on or before the 30th day after the due date, the revenue

permit holder shall pay the district a penalty of five percent of

the amount of taxes due. If the revenue permit holder remits the

taxes after the 30th day after the due date, the person who holds

the permit shall pay the district a penalty of 10 percent of the

amount of taxes due.

(f) Delinquent taxes and accrued penalties draw interest at the

rate of 10 percent a year beginning 60 days after the date on

which the taxes were due.

(g) If a revenue permit holder does not collect and remit a tax

imposed, the board may suspend, revoke, or cancel the holder's

revenue permit in addition to any other remedy the district may

have to collect the tax under civil or criminal law.

(h) A person who violates Subsection (d) commits an offense if

the person rents or offers for rent an item taxed under this

section. Each provision or offer for remuneration of the service,

use, or rental is a separate offense. An offense under this

subsection is a Class C misdemeanor, unless it is shown at the

trial of the defendant that the defendant has previously been

convicted of an offense under this subsection, in which case the

offense is a Class B misdemeanor.

(i) In the same manner that this section applies to a person who

provides or offers a service, a use of a facility, or a rental of

an item in the district, this section applies to a person who

resides or does business outside the district but provides or

offers recreational guide or shuttle services or the rental of

water-oriented recreational equipment and the person regularly

transports customers into the district for river access while the

person is in the district.

(j) The board may settle a claim for a penalty or interest

accrued on a tax imposed by this chapter if the board finds that

the revenue permit holder exercised reasonable diligence to

comply with this chapter.

(k) The district may impose different tax rates for the

different types of services and different types of rental items

to which Subsection (b)(3) applies but none of the rates may

exceed the maximum rate provided by that subsection.

(l) The managing entity, as defined by Section 221.002, Property

Code, of a timeshare property, as defined by Section 221.002,

Property Code, shall collect and remit to a district, on a

property owner's behalf, all district taxes imposed under

Subsection (b)(2) if the managing entity participates in the

rental of the property by either:

(1) advertising rental availability on behalf of the property

owner; or

(2) collecting the rent on the property owner's behalf.

(m) If a managing entity located in the district does not

collect rent or advertise rental availability on behalf of its

property owners, a certificate executed in good faith by the

managing entity and delivered to the district informing the

district that the managing entity does not collect rent or

advertise rentals on the behalf of property owners shall be final

and binding on the district, so long as the certificate remains

accurate.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1989, 71st Leg., ch. 539, Sec. 4, eff.

Sept. 1, 1989; Acts 1993, 73rd Leg., ch. 1039, Sec. 16, eff. Aug.

30, 1993; Acts 1995, 74th Leg., ch. 1000, Sec. 67, eff. Oct. 1,

1995; Acts 1997, 75th Leg., ch. 452, Sec. 5, eff. Sept. 1, 1997;

Acts 1999, 76th Leg., ch. 1098, Sec. 1, eff. Sept. 1, 1999.

Amended by:

Acts 2005, 79th Leg., Ch.

491, Sec. 5, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

145, Sec. 1, eff. September 1, 2009.

Sec. 324.0995. TAX EXEMPTIONS. (a) Section 324.099(b)(2) does

not impose a tax on:

(1) an employee of the United States government conducting

official business in the district; or

(2) a person who occupies a lodging facility or campground in

the district if the person has evacuated from the person's home

due to an emergency and the state has temporarily suspended

collection of the state hotel occupancy tax.

(b) The district may not tax a transaction between a person and

an interest operated by:

(1) the United States in the district; or

(2) a state park in the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

145, Sec. 2, eff. September 1, 2009.

Sec. 324.100. DISPOSITION OF REVENUE. In addition to any other

purpose or obligation of a district, a district may use its tax

revenue and other revenue for:

(1) acquisition of a right-of-way that leads to or is in the

district;

(2) construction, improvement, or maintenance of a road that

leads to or is in the district;

(3) provision of law enforcement, emergency medical services, or

fire protection in the district;

(4) programs to improve the water quality and sanitary

conditions in the district;

(5) other programs that promote water-oriented recreation in the

district;

(6) contribution to the county's general fund in the event that

the board finds it has excess revenues;

(7) payment of indebtedness for bonds issued under Sections

324.091 and 324.092;

(8) acquiring insurance for the district;

(9) hiring necessary personnel as provided by Section 324.062;

(10) construction of facilities to house district personnel and

equipment;

(11) leasing of property as necessary to benefit the district;

and

(12) any other lawful purpose for the benefit of the district.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989. Amended by Acts 1993, 73rd Leg., ch. 1039, Sec. 17, eff.

Aug. 30, 1993.

Amended by:

Acts 2005, 79th Leg., Ch.

491, Sec. 6, eff. September 1, 2005.

Sec. 324.101. REPLACEMENT FUND. (a) The board may establish a

replacement fund. It may deposit in the fund any amounts from its

revenue that it considers appropriate.

(b) The replacement fund may be used to rebuild on the original

site or elsewhere, restore, repair, or improve property of the

district that is destroyed or injured or that is necessary to

expand, improve, demolish, repair, or replace because of its

unfitness.

(c) The board may invest the replacement fund in bonds of the

United States, this state, or a county, municipal corporation, or

school district of this state.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

SUBCHAPTER F. ANNEXATION, INCORPORATION, DISSOLUTION

Sec. 324.121. ANNEXATION. (a) The voters of an unincorporated

area that is contiguous to a district may file a petition with

the board to annex the area to the district.

(b) The petition must contain an accurate description of the

area proposed for annexation, accompanied by an accurate map or

plat of the area.

(c) The petition must be signed by at least one percent of the

registered voters in the area proposed for annexation.

(d) If the board considers the proposed annexation desirable,

the board shall file the petition with the commissioners court

with a statement of the reasons the board favors the annexation.

(e) The commissioners court shall give notice of a hearing on

the petition and hold a hearing in the manner prescribed by

Sections 324.022 and 324.023 for a petition for creation of a

district.

(f) The commissioners court may grant the petition if it finds

the petition meets the requirements of this section and the

annexation promotes the purposes for which the district was

created.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.122. EFFECT OF INCORPORATION OR ANNEXATION. The

incorporation of a political subdivision or the annexation of any

part of a park district by a political subdivision does not

affect the district's boundaries.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

145, Sec. 3, eff. September 1, 2009.

Sec. 324.123. DISANNEXATION. (a) The voters of or county

commissioners for any area in a district may file a petition with

the board to disannex the area from the district.

(b) The petition must contain an accurate description of the

area proposed for disannexation, accompanied by an accurate map

or plat of the area.

(c) The petition must be signed by at least one percent of the

registered voters in the area proposed for disannexation or by

the county commissioners for the area proposed for disannexation.

(d) The board shall file the petition with the commissioners

court if:

(1) the district has not acquired or constructed a permanent

improvement or facility in the area proposed for disannexation;

and

(2) the district's projected revenue from all sources, except

from the area proposed for disannexation, is sufficient to pay

the district's outstanding debts.

(e) The commissioners court shall give notice of a hearing on

the petition and hold a hearing in the manner prescribed by

Sections 324.022 and 324.023 for a petition for creation of a

district.

(f) The commissioners court by order may grant the petition if

it finds that:

(1) the petition meets the requirements of this section;

(2) the conditions listed in Subsection (d) exist; and

(3) the disannexation is in the best interests of the county.

(g) The disannexation takes effect on the date stated by the

order or, if the order does not state a date, on the date the

order is issued.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

Sec. 324.124. DISSOLUTION OF DISTRICT. (a) The commissioners

court by order may dissolve a district. The order may be adopted:

(1) on the commissioners court's own motion; or

(2) after the filing of a written petition signed by a number of

the registered voters who reside in the district equal to at

least 10 percent of the votes received in the district in the

most recent gubernatorial general election.

(b) The commissioners court shall give notice of a hearing on

the petition and hold a hearing in the manner prescribed by

Sections 324.022 and 324.023 for a petition for creation of a

district.

(c) The commissioners court shall grant the petition and order

the dissolution of the district if the court finds that the

petition meets the requirements of this section and that the

dissolution is in the best interest of the county.

(d) On dissolution of the district, the property and other

assets, the debts and other liabilities, and the obligations of

the district become those of the county.

Added by Acts 1989, 71st Leg., ch. 1, Sec. 71(a), eff. Aug. 28,

1989.

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 324.901. REQUIREMENTS FOR RENTAL OF WATER-ORIENTED

RECREATIONAL EQUIPMENT. (a) This section applies only to the

rental of water-oriented recreational equipment in a district.

(b) A person may not rent water-oriented recreational equipment

to a person younger than 18 years of age.

(c) A person may rent water-oriented recreational equipment to a

person who is at least 18 years of age only if:

(1) each person who is at least 18 years of age who will use the

equipment signs a written agreement for the rental of that

equipment; and

(2) each person who will use the equipment, regardless of age,

is listed on the agreement.

Added by Acts 1999, 76th Leg., ch. 1098, Sec. 2, eff. Sept. 1,

1999.