Bill Text: TX SB1234 | 2011-2012 | 82nd Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to municipal management districts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [SB1234 Detail]
Download: Texas-2011-SB1234-Comm_Sub.html
Bill Title: Relating to municipal management districts.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2011-06-17 - Effective on 9/1/11 [SB1234 Detail]
Download: Texas-2011-SB1234-Comm_Sub.html
By: West | S.B. No. 1234 | |
(In the Senate - Filed March 7, 2011; March 16, 2011, read | ||
first time and referred to Committee on Intergovernmental | ||
Relations; May 2, 2011, reported adversely, with favorable | ||
Committee Substitute by the following vote: Yeas 5, Nays 0; | ||
May 2, 2011, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR S.B. No. 1234 | By: West |
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relating to municipal management districts. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subdivisions (3) and (4), Section 375.003, Local | ||
Government Code, are amended to read as follows: | ||
(3) "Commission" means the Texas Commission on | ||
Environmental Quality [ |
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(4) "Disadvantaged business" means: | ||
(A) a corporation formed for the purpose of | ||
making a profit and at least 51 percent of all classes of the shares | ||
of stock or other equitable securities of which are owned by one or | ||
more persons who are socially disadvantaged because of their | ||
identification as members of certain groups that have suffered the | ||
effects of discriminatory practices or similar insidious | ||
circumstances over which they have no control, including black | ||
Americans, Hispanic Americans, women, Asian Pacific Americans, and | ||
American Indians; | ||
(B) a sole proprietorship formed for the purpose | ||
of making a profit that is owned, operated, and controlled | ||
exclusively by one or more persons described by Paragraph (A); | ||
(C) a partnership that is formed for the purpose | ||
of making a profit, in which 51 percent of the assets and interest | ||
in the partnership is owned by one or more persons described by | ||
Paragraph (A), and in which minority or women partners have a | ||
proportionate interest in the control, operation, and management of | ||
the partnership affairs; | ||
(D) a joint venture between minority and women's | ||
group members formed for the purpose of making a profit and the | ||
minority participation in which is based on the sharing of real | ||
economic interest, including equally proportionate control over | ||
management, interest in capital, and interest earnings, other than | ||
a joint venture in which majority group members own or control debt | ||
securities, leasehold interest, management contracts, or other | ||
interests; [ |
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(E) a supplier contract between persons | ||
described in Paragraph (A) and a prime contractor in which the | ||
disadvantaged business is directly involved for the manufacture or | ||
distribution of the supplies or materials or otherwise for | ||
warehousing and shipping the supplies; or | ||
(F) a person certified as a disadvantaged | ||
business by: | ||
(i) this state; | ||
(ii) a political subdivision of this state; | ||
or | ||
(iii) a regional planning commission, | ||
council of governments, or similar regional planning agency created | ||
under Chapter 391. | ||
SECTION 2. Subsection (c), Section 375.022, Local | ||
Government Code, is amended to read as follows: | ||
(c) The petition must: | ||
(1) describe the boundaries of the proposed district: | ||
(A) by metes and bounds; | ||
(B) by verifiable landmarks, including a road, | ||
creek, or railroad line; or | ||
(C)[ |
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survey of the area, by lot and block number; | ||
(2) state the specific purposes for which the district | ||
will be created; | ||
(3) state the general nature of the work, projects, or | ||
services proposed to be provided, the necessity for those services, | ||
and the costs as estimated by the persons filing the petition; | ||
(4) include a name of the district, which must be | ||
generally descriptive of the location of the district, followed by | ||
"Management District" or "Improvement District"; | ||
(5) include a proposed list of initial directors that | ||
includes the directors' experience and initial term of service; and | ||
(6) include a resolution of the governing body of the | ||
municipality in support of the creation of the district. | ||
SECTION 3. Section 375.043, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.043. ANNEXATION. A district may annex land as | ||
provided by Section 49.301 and Chapter 54, Water Code, subject to | ||
the approval of the governing body of the municipality. | ||
SECTION 4. Subsection (b), Section 375.044, Local | ||
Government Code, is amended to read as follows: | ||
(b) The board shall call a hearing on the exclusion of land | ||
or other property from the district if a signed petition evidencing | ||
the consent of the owners of a majority of the acreage in the | ||
district, according to the most recent certified tax roll of the | ||
county, is filed [ |
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requesting the hearing before the issuance of bonds. | ||
SECTION 5. Section 375.061, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.061. NUMBER OF DIRECTORS; TERMS. A district is | ||
governed by a board of at least five [ |
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directors who serve staggered four-year terms. | ||
SECTION 6. Section 375.071, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.071. QUORUM. One-half of the serving directors | ||
constitutes a quorum, and a concurrence of a majority of a quorum of | ||
directors is required for any official action of the district. The | ||
written consent of at least two-thirds of the directors is required | ||
to authorize the levy of assessments, the levy of taxes, the | ||
imposition of impact fees, or the issuance of bonds. | ||
SECTION 7. Section 375.091, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.091. GENERAL POWERS OF DISTRICT. [ |
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district has the rights, powers, privileges, authority, and | ||
functions conferred by the general law of this state applicable to | ||
conservation and reclamation districts created under Article XVI, | ||
Section 59, of the Texas Constitution, including those conferred by | ||
Chapter 54, Water Code. | ||
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SECTION 8. Subchapter E, Chapter 375, Local Government | ||
Code, is amended by adding Sections 375.0921 and 375.0922 to read as | ||
follows: | ||
Sec. 375.0921. AUTHORITY FOR ROAD PROJECTS. (a) Under | ||
Section 52, Article III, Texas Constitution, a district may design, | ||
acquire, construct, finance, issue bonds for, improve, operate, | ||
maintain, and convey to this state, a county, or a municipality for | ||
operation and maintenance macadamized, graveled, or paved roads, or | ||
improvements, including storm drainage, in aid of those roads. | ||
(b) The district may impose ad valorem taxes to provide for | ||
mass transit systems in the manner and subject to the limitations | ||
provided by Section 52, Article III, and Section 52-a, Article III, | ||
Texas Constitution. | ||
Sec. 375.0922. ROAD STANDARDS AND REQUIREMENTS. (a) A | ||
road project must meet all applicable construction standards, | ||
zoning and subdivision requirements, and regulations of each | ||
municipality in whose corporate limits or extraterritorial | ||
jurisdiction the road project is located. | ||
(b) If a road project is not located in the corporate limits | ||
or extraterritorial jurisdiction of a municipality, the road | ||
project must meet all applicable construction standards, | ||
subdivision requirements, and regulations of each county in which | ||
the road project is located. | ||
(c) If the state will maintain and operate the road, the | ||
Texas Transportation Commission must approve the plans and | ||
specifications of the road project. | ||
SECTION 9. Subsection (a), Section 375.097, Local | ||
Government Code, is amended to read as follows: | ||
(a) The board may appoint a hearings examiner to conduct any | ||
hearing called by the board, including a hearing required by | ||
Chapter 395. The hearings examiner may be an employee or contractor | ||
of the district, or a member of the district's board. | ||
SECTION 10. Subchapter E, Chapter 375, Local Government | ||
Code, is amended by adding Section 375.098 to read as follows: | ||
Sec. 375.098. DISTRICT ACT OR PROCEEDING PRESUMED VALID. | ||
(a) A governmental act or proceeding of a district is conclusively | ||
presumed, as of the date it occurred, valid and to have occurred in | ||
accordance with all applicable statutes and rules if: | ||
(1) the third anniversary of the effective date of the | ||
act or proceeding has expired; and | ||
(2) a lawsuit to annul or invalidate the act or | ||
proceeding has not been filed on or before that third anniversary. | ||
(b) This section does not apply to: | ||
(1) an act or proceeding that was void at the time it | ||
occurred; | ||
(2) an act or proceeding that, under a statute of this | ||
state or the United States, was a misdemeanor or felony at the time | ||
the act or proceeding occurred; | ||
(3) a rule that, at the time it was passed, was | ||
preempted by a statute of this state or the United States, including | ||
Section 1.06 or 109.57, Alcoholic Beverage Code; or | ||
(4) a matter that on the effective date of this | ||
section: | ||
(A) is involved in litigation if the litigation | ||
ultimately results in the matter being held invalid by a final | ||
judgment of a court; or | ||
(B) has been held invalid by a final judgment of a | ||
court. | ||
SECTION 11. Section 375.114, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.114. PETITION REQUIRED. The board may not finance | ||
services and improvement projects under this chapter unless a | ||
written petition has been filed with the board requesting those | ||
improvements or services signed by: | ||
(1) the owners of 50 percent or more of the assessed | ||
value of the property in the district subject to assessment, | ||
according to [ |
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property tax rolls; or | ||
(2) the owners of 50 percent or more of the surface | ||
area of the district, excluding roads, streets, highways, and | ||
utility rights-of-way, other public areas, and any other property | ||
exempt from assessment under Section 375.162 or 375.163, according | ||
to [ |
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tax rolls. | ||
SECTION 12. Subsection (e), Section 375.202, Local | ||
Government Code, is amended to read as follows: | ||
(e) If provided by the bond order or resolution, the | ||
proceeds from the sale of bonds may be used to pay interest on the | ||
bonds during and after the period of the acquisition or | ||
construction of any improvement project to be provided through the | ||
issuance of the bonds, to pay administrative and operation expenses | ||
to create a reserve fund for the payment of the principal of and | ||
interest on the bonds, to pay costs associated with the issuance of | ||
the bonds, and to create any other funds. The proceeds of the bonds | ||
may be placed on time deposit or invested, until needed, in | ||
securities in the manner provided by the bond order or resolution. | ||
SECTION 13. Subsection (a), Section 375.205, Local | ||
Government Code, is amended to read as follows: | ||
(a) The district shall submit bonds and the appropriate | ||
proceedings authorizing their issuance to the attorney general for | ||
examination. This subsection applies only to bonds that are public | ||
securities, as that term is defined by Section 1202.001, Government | ||
Code. | ||
SECTION 14. Subchapter J, Chapter 375, Local Government | ||
Code, is amended by adding Section 375.209 to read as follows: | ||
Sec. 375.209. TAXES FOR BONDS. 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 | ||
direct annual ad valorem tax, without limit as to rate or amount, | ||
while all or part of the bonds are outstanding as required and in | ||
the manner provided by Sections 54.601 and 54.602, Water Code. | ||
SECTION 15. Section 375.221, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.221. APPLICABILITY OF WATER DISTRICTS LAW TO | ||
COMPETITIVE BIDDING ON CERTAIN [ |
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(a) Except as provided by Subsection (b) of this section, | ||
Subchapter I, Chapter 49, Water Code, applies to a district | ||
contract for construction work, equipment, materials, or | ||
machinery. | ||
(b) [ |
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The board may adopt rules governing receipt of bids and the award of | ||
the contract and providing for the waiver of the competitive bid | ||
requirement if: | ||
(1) there is an emergency; | ||
(2) the needed materials are available from only one | ||
source; | ||
(3) in a procurement requiring design by the supplier | ||
competitive bidding would not be appropriate and competitive | ||
negotiation, with proposals solicited from an adequate number of | ||
qualified sources, would permit reasonable competition consistent | ||
with the nature and requirements of the procurement; or | ||
(4) after solicitation, it is ascertained that there | ||
will be only one bidder. | ||
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SECTION 16. Subsection (a), Section 375.263, Local | ||
Government Code, is amended to read as follows: | ||
(a) The [ |
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governing body of a municipality in which a district is wholly | ||
located, by a vote of not less than two-thirds of its membership, | ||
may adopt an ordinance dissolving the district. | ||
SECTION 17. Section 375.264, Local Government Code, is | ||
amended to read as follows: | ||
Sec. 375.264. LIMITATION ON DISSOLUTION BY BOARD. A | ||
district may not be dissolved by its board [ |
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the district 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. | ||
SECTION 18. Subchapter N, Chapter 375, Local Government | ||
Code, is amended by adding Section 375.282 to read as follows: | ||
Sec. 375.282. STRATEGIC PARTNERSHIP AGREEMENT. A district | ||
with territory in the extraterritorial jurisdiction of a | ||
municipality may negotiate and enter into a written strategic | ||
partnership with the municipality under Section 43.0751. | ||
SECTION 19. Sections 375.021 and 375.027 and Subsection | ||
(f), Section 375.064, Local Government Code, are repealed. | ||
SECTION 20. The change in law made by this Act to Section | ||
375.221, Local Government Code, applies only to a contract awarded | ||
on or after January 1, 2012. A contract awarded before January 1, | ||
2012, is governed by the law in effect on the date the contract was | ||
awarded, and that law is continued in effect for that purpose. | ||
SECTION 21. This Act takes effect September 1, 2011. | ||
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