Bill Text: TX HB4750 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the creation of the Trinity Municipal Management District; providing authority to issue bonds; providing authority to impose assessments and fees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-05-27 - Recommendations filed with the Speaker [HB4750 Detail]
Download: Texas-2019-HB4750-Introduced.html
86R24330 SMT-F | ||
By: Davis of Dallas | H.B. No. 4750 |
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relating to the creation of the Trinity Municipal Management | ||
District; providing authority to issue bonds; providing authority | ||
to impose assessments and fees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle C, Title 4, Special District Local Laws | ||
Code, is amended by adding Chapter 3989 to read as follows: | ||
CHAPTER 3989. TRINITY MUNICIPAL MANAGEMENT DISTRICT | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 3989.0101. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "City" means the City of Dallas. | ||
(3) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(4) "County" means Dallas County. | ||
(5) "Director" means a board member. | ||
(6) "District" means the Trinity Municipal Management | ||
District. | ||
Sec. 3989.0102. NATURE OF DISTRICT. The Trinity Municipal | ||
Management District is a special district created under Section 59, | ||
Article XVI, Texas Constitution. | ||
Sec. 3989.0103. PURPOSE; DECLARATION OF INTENT. (a) The | ||
creation of the district is essential to accomplish the purposes of | ||
Sections 52 and 52-a, Article III, and Section 59, Article XVI, | ||
Texas Constitution, and other public purposes stated in this | ||
chapter. | ||
(b) By creating the district and in authorizing the city and | ||
other political subdivisions to contract with the district, the | ||
legislature has established a program to accomplish the public | ||
purposes set out in Section 52-a, Article III, Texas Constitution. | ||
(c) The creation of the district 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 district. | ||
(d) This chapter and the creation of the district may not be | ||
interpreted to relieve the county or the city 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 district is | ||
created to supplement and not to supplant county or city services | ||
provided in the district. | ||
Sec. 3989.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. | ||
(a) All land and other property included in the district 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. | ||
(b) The district is created to serve a public use and | ||
benefit. | ||
(c) The creation of the district is in the public interest | ||
and is essential to further the public purposes of: | ||
(1) developing and diversifying the economy of the | ||
state; | ||
(2) eliminating unemployment and underemployment; | ||
(3) developing or expanding transportation and | ||
commerce; | ||
(4) eliminating homelessness and establishing a means | ||
to address related social, medical, or mental health needs; and | ||
(5) preventing dislocation of residents and providing | ||
affordable housing. | ||
(d) The district 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) provide needed funding for the district to | ||
preserve, maintain, and enhance the economic health and vitality of | ||
the district territory as a community and business center; and | ||
(3) promote the health, safety, welfare, and enjoyment | ||
of the public by providing pedestrian ways and by landscaping and | ||
developing certain areas in the district, which are necessary for | ||
the restoration, preservation, and enhancement of scenic beauty. | ||
(e) Pedestrian ways along or across a street, whether at | ||
grade or above or below the surface, and street lighting, street | ||
landscaping, parking, and street art objects are parts of and | ||
necessary components of a street and are considered to be a street | ||
or road improvement. | ||
(f) The district will not act as the agent or | ||
instrumentality of any private interest even though the district | ||
will benefit many private interests as well as the public. | ||
Sec. 3989.0105. INITIAL DISTRICT TERRITORY. The district | ||
is initially composed of the territory described by Section 2 of the | ||
Act enacting this chapter. | ||
Sec. 3989.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. | ||
(a) All or any part of the area of the district is eligible to be | ||
included in: | ||
(1) a tax increment reinvestment zone created under | ||
Chapter 311, Tax Code; | ||
(2) a tax abatement reinvestment zone created under | ||
Chapter 312, Tax Code; or | ||
(3) an enterprise zone created under Chapter 2303, | ||
Government Code. | ||
(b) If the city creates a tax increment reinvestment zone | ||
described by Subsection (a), the city and the board of directors of | ||
the zone, by contract with the district, may grant money deposited | ||
in the tax increment fund to the district to be used by the district | ||
for the purposes permitted for money granted to a corporation under | ||
Section 380.002(b), Local Government Code, including the right to | ||
pledge the money as security for any bonds issued by the district | ||
for an improvement project. | ||
Sec. 3989.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT | ||
DISTRICTS LAW. Except as otherwise provided by this chapter, | ||
Chapter 375, Local Government Code, applies to the district. | ||
Sec. 3989.0108. CONSTRUCTION OF CHAPTER. This chapter | ||
shall be liberally construed in conformity with the findings and | ||
purposes stated in this chapter. | ||
SUBCHAPTER B. BOARD OF DIRECTORS | ||
Sec. 3989.0201. BOARD OF DIRECTORS; TERMS. The district is | ||
governed by a board of five directors who serve staggered terms of | ||
four years, with two or three directors' terms expiring on June 1st | ||
of each even-numbered year. | ||
Sec. 3989.0202. APPOINTMENT OF BOARD. Directors are | ||
appointed by the mayor of the city. | ||
Sec. 3989.0203. INITIAL DIRECTORS. (a) Notwithstanding | ||
Sections 3989.0201 and 3989.0202, the initial board consists of the | ||
14 elected representatives serving on the city council of the city | ||
on the effective date of the Act enacting this chapter. The initial | ||
directors serve until the earlier of: | ||
(1) June 1, 2020; or | ||
(2) the date directors are appointed for new districts | ||
created by a division of the district under Subchapter F. | ||
(b) Notwithstanding Section 3989.0201, the mayor shall | ||
designate two directors who succeed initial directors under | ||
Subsection (a)(1) to serve two-year terms. | ||
SUBCHAPTER C. POWERS AND DUTIES | ||
Sec. 3989.0301. GENERAL POWERS AND DUTIES. (a) The | ||
district has the powers and duties necessary to accomplish the | ||
purposes for which the district is created. | ||
(b) The district shall adopt a comprehensive plan for | ||
accomplishing the purposes of the district. | ||
Sec. 3989.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) The | ||
district, using any money available to the district for the | ||
purpose, may 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. | ||
(b) The district may contract with a governmental or private | ||
entity to carry out an action under Subsection (a). | ||
(c) The implementation of a district project or service is a | ||
governmental function or service for the purposes of Chapter 791, | ||
Government Code. | ||
Sec. 3989.0303. 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. 3989.0304. LAW ENFORCEMENT SERVICES. To protect the | ||
public interest, the district may contract with a qualified party, | ||
including the county or the city, to provide law enforcement | ||
services in the district for a fee. | ||
Sec. 3989.0305. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. | ||
The district may join and pay dues to a charitable or nonprofit | ||
organization that performs a service or provides an activity | ||
consistent with the furtherance of a district purpose. | ||
Sec. 3989.0306. ECONOMIC DEVELOPMENT PROGRAMS. (a) The | ||
district 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 to 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. 3989.0307. PARKING FACILITIES. (a) The district may | ||
acquire, lease as lessor or lessee, construct, develop, own, | ||
operate, and maintain parking facilities or a system of parking | ||
facilities, including lots, garages, parking terminals, or other | ||
structures or accommodations for parking motor vehicles off the | ||
streets and related appurtenances. | ||
(b) The district's parking facilities serve the public | ||
purposes of the district and are owned, used, and held for a public | ||
purpose even if leased or operated by a private entity for a term of | ||
years. | ||
(c) The district's parking facilities are parts of and | ||
necessary components of a street and are considered to be a street | ||
or road improvement. | ||
(d) The development and operation of the district's parking | ||
facilities may be considered an economic development program. | ||
Sec. 3989.0308. ADDING OR EXCLUDING LAND. The district 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. 3989.0309. DISBURSEMENTS AND TRANSFERS OF MONEY. The | ||
board by resolution shall establish the number of directors' | ||
signatures and the procedure required for a disbursement or | ||
transfer of district money. | ||
Sec. 3989.0310. PUBLIC IMPROVEMENT DISTRICT POWERS. The | ||
district has the powers provided by Chapter 372, Local Government | ||
Code, to a municipality or county. | ||
Sec. 3989.0311. RATES, FEES, AND CHARGES. The district may | ||
establish, revise, repeal, enforce, and collect rates, fees, and | ||
charges for the enjoyment, sale, rental, or other use of: | ||
(1) an improvement project; | ||
(2) a product resulting from an improvement project; | ||
or | ||
(3) another district facility, service, or property. | ||
Sec. 3989.0312. BOARD DETERMINATION REQUIRED. The district | ||
may not undertake an improvement project unless the board | ||
determines the project is necessary to accomplish a public purpose | ||
of the district. | ||
Sec. 3989.0313. LOCATION OF IMPROVEMENT PROJECT. An | ||
improvement project may be located or provide service inside or | ||
outside the district. | ||
Sec. 3989.0314. CITY REQUIREMENTS. An improvement project | ||
in the district must comply with any applicable requirements of the | ||
city, including codes and ordinances, unless specifically waived or | ||
superseded by agreement with the city. | ||
Sec. 3989.0315. RULES AND REGULATIONS. Notwithstanding any | ||
other law, with the approval of the city as provided by a resolution | ||
or ordinance, the district may: | ||
(1) establish rules and regulations governing zoning | ||
and land use in the district; and | ||
(2) establish rules and regulations to promote the use | ||
of historically underutilized businesses for the provision of goods | ||
and services in the district. | ||
Sec. 3989.0316. ENFORCEMENT OF REAL PROPERTY RESTRICTIONS. | ||
The district may enforce a real property restriction in the manner | ||
provided by Section 54.237, Water Code, if, in the reasonable | ||
judgment of the board, the enforcement of the restriction is | ||
necessary. | ||
Sec. 3989.0317. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM | ||
ASSESSMENTS AND FEES. The district may not impose an assessment, | ||
impact fee, or standby fee on the property, including the | ||
equipment, rights-of-way, easements, facilities, or improvements, | ||
of: | ||
(1) an electric utility or a power generation company | ||
as defined by Section 31.002, Utilities Code; | ||
(2) a gas utility, as defined by Section 101.003 or | ||
121.001, Utilities Code, or a person who owns pipelines used for the | ||
transportation or sale of oil or gas or a product or constituent of | ||
oil or gas; | ||
(3) a person who owns pipelines used for the | ||
transportation or sale of carbon dioxide; | ||
(4) a telecommunications provider as defined by | ||
Section 51.002, Utilities Code; or | ||
(5) a cable service provider or video service provider | ||
as defined by Section 66.002, Utilities Code. | ||
Sec. 3989.0318. NO AD VALOREM TAX. The district may not | ||
impose an ad valorem tax. | ||
Sec. 3989.0319. NO TOLL ROADS. The district may not | ||
construct, acquire, maintain, or operate a toll road. | ||
Sec. 3989.0320. NO EMINENT DOMAIN POWER. The district may | ||
not exercise the power of eminent domain. | ||
SUBCHAPTER D. ASSESSMENTS | ||
Sec. 3989.0401. 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. 3989.0402. 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) are 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 would enforce an ad valorem tax lien against real property if | ||
the board were authorized to impose an ad valorem tax. | ||
(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. | ||
Sec. 3989.0403. RESIDENTIAL PROPERTY NOT EXEMPT. Sections | ||
375.161 and 375.164, Local Government Code, do not apply to the | ||
district. | ||
Sec. 3989.0404. COLLECTION OF ASSESSMENTS. The district | ||
may contract as provided by Chapter 791, Government Code, with the | ||
commissioners court of the county for the assessment and collection | ||
of assessments imposed under this subchapter. | ||
SUBCHAPTER E. BONDS | ||
Sec. 3989.0501. AUTHORITY TO BORROW MONEY AND TO ISSUE | ||
BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on | ||
terms determined by the board. | ||
(b) The district may issue, by public or private sale, | ||
bonds, notes, or other obligations payable wholly or partly from | ||
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. | ||
(c) The district may issue, by public or private sale, | ||
bonds, notes, or other obligations payable wholly or partly from | ||
assessments in the manner provided by Subchapter A, Chapter 372, | ||
Local Government Code, if the improvement financed by an obligation | ||
issued under this section will be conveyed to or operated and | ||
maintained by a municipality or other retail utility provider | ||
pursuant to an agreement with the district entered into before the | ||
issuance of the obligation. | ||
SUBCHAPTER F. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS | ||
Sec. 3989.0601. DIVISION OF DISTRICT; PREREQUISITES. The | ||
district may be divided into two or more new districts. | ||
Sec. 3989.0602. LAW APPLICABLE TO NEW DISTRICT. This | ||
chapter applies to any new district created by division of the | ||
district, and a new district has all the powers and duties of the | ||
district. | ||
Sec. 3989.0603. LIMITATION ON AREA OF NEW DISTRICT. A new | ||
district created by the division of the district may not, at the | ||
time the new district is created, contain any land outside the area | ||
described by Section 2 of the Act enacting this chapter. | ||
Sec. 3989.0604. DIVISION PROCEDURES. (a) The board may | ||
adopt an order dividing the district. | ||
(b) An order dividing the district must: | ||
(1) name each new district; | ||
(2) include a description of the territory of each new | ||
district; | ||
(3) include the names of directors for each new | ||
district appointed by the mayor of the city; and | ||
(4) provide for the division of assets and liabilities | ||
between the new districts. | ||
(c) Not later than the 30th day after the date the board | ||
adopts an order dividing the district into two or more new | ||
districts, the mayor of the city shall appoint directors for each | ||
new district. The mayor shall designate two directors appointed | ||
under this subsection to serve two-year terms. | ||
(d) On or before the 30th day after the date of adoption of | ||
an order dividing the district, the district shall file the order | ||
with the commission and record the order in the real property | ||
records of each county in which the district is located. | ||
SUBCHAPTER I. DISSOLUTION | ||
Sec. 3989.0901. DISSOLUTION. (a) The board shall dissolve | ||
the district on written petition filed with the board by the owners | ||
of: | ||
(1) 66 percent or more of the assessed value of the | ||
property subject to assessment by the district based on the most | ||
recent certified county property tax rolls; or | ||
(2) 66 percent or more of the surface area of the | ||
district, excluding roads, streets, highways, utility | ||
rights-of-way, other public areas, and other property exempt from | ||
assessment by the district according to the most recent certified | ||
county property tax rolls. | ||
(b) The board by majority vote may dissolve the district at | ||
any time. | ||
(c) The district may not be dissolved by its board under | ||
Subsection (a) or (b) if the district: | ||
(1) has any outstanding bonded indebtedness until that | ||
bonded indebtedness has been repaid or defeased in accordance with | ||
the order or resolution authorizing the issuance of the bonds; | ||
(2) has a contractual obligation to pay money until | ||
that obligation has been fully paid in accordance with the | ||
contract; or | ||
(3) owns, operates, or maintains public works, | ||
facilities, or improvements unless the district contracts with | ||
another person for the ownership, operation, or maintenance of the | ||
public works, facilities, or improvements. | ||
(d) Sections 375.261, 375.262, and 375.264, Local | ||
Government Code, do not apply to the district. | ||
(e) The city is not liable for district debts or obligations | ||
following dissolution under this subchapter. | ||
SECTION 2. The Trinity Municipal Management District | ||
initially includes all the territory that, as of the effective date | ||
of this Act, is: | ||
(1) in the corporate limits of Dallas, Texas; and | ||
(2) included in a population census tract that is: | ||
(A) a qualified opportunity zone as defined by | ||
Section 1400Z-1, Internal Revenue Code of 1986; and | ||
(B) designated an opportunity zone by the | ||
governor. | ||
SECTION 3. (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) The governor, one of the required recipients, has | ||
submitted the notice and Act to the Texas Commission on | ||
Environmental Quality. | ||
(c) The Texas Commission on Environmental Quality has filed | ||
its recommendations relating to this Act with the governor, | ||
lieutenant governor, and speaker of the house of representatives | ||
within the required time. | ||
(d) All requirements of the constitution and laws of this | ||
state and the rules and procedures of the legislature with respect | ||
to the notice, introduction, and passage of this Act have been | ||
fulfilled and accomplished. | ||
SECTION 4. 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, 2019. |