Monitoring the Session

HB 4308

Industrial District Bill Creates Appointed Boards With Taxing Power

Died in committee

Verdict: Smells

SmellsReviewed
Rep. Gary GatesRHouse 28
Why it's charged
New fee, fund, board or appointees

THE TEXT

…“governed by a board of nine directors appointed by the”…

Bill text, engrossed version (E)

The bill builds a new layer of local government with appointed directors and taxing power. The caption does say it creates districts and grants tax authority.

New fee, fund, board or appointees

On Nov 1, 2026 the editor checked the caption mismatch charge against the bill's caption and removed it.

Corrected Nov 1, 2026

Corrected Nov 1, 2026 · We checked this summary against the bill text and fixed it.

Reviewed · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the creation of industrial development districts in certain counties; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

Caption from analyzed text · version E.

Summary

Voters decide whether to create a district. Its board has nine appointed directors.

The bill lets any county commissioners court call an election to create an industrial development district, governed by a nine-member board that the court appoints. Each district can impose assessments, property taxes, and a sales tax. It can also borrow, issue bonds (some without an election), and hand out loans and grants of public money to attract industrial employers. On the ground, voters inside a district's lines approve its creation and taxes. After that, an appointed board gets bond, tax and incentive powers, with no cap on outstanding debt.

Labels

Labels: CROSS-PARTY HANDOFF. Lead author Gary Gates (R) in the House. Lead sponsor Borris Miles (D) in the Senate. Party as the Legislative Reference Library lists it for the 89th Legislature.ACROSS THE AISLE. Joint authors: 4 Republicans, 1 Democrat. Party as the Legislative Reference Library lists it for the 89th Legislature.DOORSTOP: 5,014 WORDS. The bill as filed runs 5,014 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).GOT HALFWAY. Passed the House on May 13, 2025. Died in the Senate: left pending in the Local Government committee.

Receipt

The receipt

89R-HB4308 · 2025-03-11

SOLD BY

+ 2 more authors

ITEM

relating to the creation of industrial development districts in certain counties; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

WHAT IT DOES

Voters decide whether to create a district. Its board has nine appointed directors.

The bill lets any county commissioners court call an election to create an industrial development district, governed by a nine-member board that the court appoints. Each district can impose assessments, property taxes, and a sales tax. It can also borrow, issue bonds (some without an election), and hand out loans and grants of public money to attract industrial employers. On the ground, voters inside a district's lines approve its creation and taxes. After that, an appointed board gets bond, tax and incentive powers, with no cap on outstanding debt.

CHARGES

[x] NEW FEE, FUND, BOARD OR APPOINTEESanalysis confidence 60%

THE TEXT

…“governed by a board of nine directors appointed by the”…

Bill text, engrossed version (E)

The bill builds a new layer of local government with appointed directors and taxing power. The caption does say it creates districts and grants tax authority.

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 25, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Trade, Workforce & Economic Development
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
  9. Considered in formal meeting
  10. Committee substitute considered in committee
  11. Reported favorably as substituted
  12. Comte report filed with Committee Coordinator
  13. Committee report distributed
  14. Committee report sent to Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Read 2nd time
  18. Amended 1-Gates
  19. Amended 2-Gates
  20. Record vote RV#2206
  21. Statement(s) of vote recorded in Journal
  22. Amendment withdrawn 3-Olcott
  23. Passed to engrossment as amended
  24. Record vote RV#2207
  25. Read 3rd time
  26. Passed
  27. Record vote RV#2273
  28. Statement(s) of vote recorded in Journal
  29. Reported engrossed
  30. Received from the House
  31. Read first time
  32. Referred to Local Government
  33. Scheduled for public hearing on . . .
  34. Considered in public hearing
  35. Testimony taken in committee
  36. Left pending in committee
FILED UNDER

DEBT AND SPECIAL DISTRICTS

THE TEXT

“A district may issue, without an election, bonds secured”…

Bill text, engrossed version (E)

The bill creates a new kind of special district that can issue bonds, some without voter approval. The Water Code cap on outstanding debt is switched off for these districts.

CORPORATE WELFARE

THE TEXT

“(1) make loans and grants of public money; and”…

Bill text, engrossed version (E)

Districts may give loans and grants of public money to businesses to attract industrial employers.

GOVERNMENT GROWTH UNDER A CONSERVATIVE BANNER

THE TEXT

…“governed by a board of nine directors appointed by the”…

Bill text, engrossed version (E)

Each district adds a new appointed nine-member board and an office. It can also provide district personnel.

SIGNED FOR BY

House · 102 yea · 30 nay

Sources

House: Final passage · May 13, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 30, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Conservative Majority PAC$273,400.00

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223, 101071943.

Texans for Lawsuit Reform PAC$224,000.08

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010390, 101033067, 101068223, 101071943.

Texans for Reasonable Solutions PAC$25,000.00

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Conservative Majority PAC

$273,400.00

Cash
$150,000.00
Paid by others
$123,400.00
Total
$273,400.00
canvassing $108,000.00polling $15,400.00

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Aug 17, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223, 101071943.

×

Texans for Lawsuit Reform PAC

$224,000.08

Cash
$35,000.00
Paid by others
$189,000.08
Total
$224,000.08
mail $87,600.08advertising $68,500.00polling $32,900.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Oct 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010390, 101033067, 101068223, 101071943.

×

Texans for Reasonable Solutions PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 81 other sitting lawmakers.

Derived recipient stock · Aug 23, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Jul 30, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068223.

Votes3

House May 13, 2025

Yea
102
Nay
30
Present, not voting
2
Absent
3
Excused
13
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2273

HB 4308 was passed by (Record 2273): 102 Yeas, 30 Nays, 2 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 102 (published)
  • Nay: 30 (published)
  • Present, not voting: 2 (published)
  • Absent: 3 (derived from named list)
  • Excused: 13 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 12, 2025

Yea
76
Nay
61
Present, not voting
3
Absent
5
Excused
5
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2207

CSHB 4308, as amended, was passed to engrossment by (Record 2207): 76 Yeas, 61 Nays, 3 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 76 (published)
  • Nay: 61 (published)
  • Present, not voting: 3 (published)
  • Absent: 5 (derived from named list)
  • Excused: 5 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 12, 2025

Yea
84
Nay
53
Present, not voting
3
Absent
5
Excused
5
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2206

Amendment No. 2 was adopted by (Record 2206): 84 Yeas, 53 Nays, 3 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 84 (published)
  • Nay: 53 (published)
  • Present, not voting: 3 (published)
  • Absent: 5 (derived from named list)
  • Excused: 5 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses5
For
5
Against
0
On
0
Names

For

  • Conference of Urban Counties1 registration
  • Fort Bend County Texas1 registration
  • Self; Constituent Relations Manager for Fort Bend County Pct. 31 registration
  • Self; Fort Bend County1 registration
  • Wise Energy Resources, Ltd.1 registration
Sources

5 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · May 25, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Adversarial review by claude-opus-5-5 at high effort: Smells.

Analysis of text version E by claude-opus-5-5, Oct 22, 2026, against the published rubric.

Sources

Texas House · Filed Mar 11, 2025

05/26/2025 S Left pending in committee

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Nov 1, 2026 at 6:27 PM CST. Grades, charges, quotes and corrections follow the published record.

Sponsors

House committee · Trade, Workforce & Economic Development · Committee vote 9 aye, 0 nay, 2 absent · Out of committee

Senate committee · Local Government · Final status: Died in committee

Subjects

City Government--General

County Government--General

Economic & Industrial Development--General

Elections--Initiative, Referendum & Recall

Open Meetings

Special Districts & Authorities--Miscellaneous

Taxation--General

COUNTY INDUSTRIAL DEVELOPMENT DISTRICT ACT (PC6MP)

Text

The text as introduced · 5,014 words

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.