Bill Text: TX SB2259 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to the creation of the Fort Bend County Municipal Management District No. 2; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-05-05 - Recommendations filed with the Senate [SB2259 Detail]

Download: Texas-2017-SB2259-Comm_Sub.html
 
 
  By: Kolkhorst  S.B. No. 2259
         (In the Senate - Filed March 28, 2017; April 3, 2017, read
  first time and referred to Committee on Intergovernmental
  Relations; April 26, 2017, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 6, Nays 0;
  April 26, 2017, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2259 By:  Garcia
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of the Fort Bend County Municipal
  Management District No. 2; providing authority to issue bonds;
  providing authority to impose assessments, fees, or taxes.
         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 3957 to read as follows:
  CHAPTER 3957.  FORT BEND COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 2
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 3957.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "County" means Fort Bend County.
               (3)  "Director" means a board member.
               (4)  "District" means the Fort Bend County Municipal
  Management District No. 2.
         Sec. 3957.002.  NATURE OF DISTRICT. The district is a
  special district created under Section 59, Article XVI, Texas
  Constitution.
         Sec. 3957.003.  PURPOSE; LEGISLATIVE FINDINGS. (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. By creating the district and in authorizing the county 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.
         (b)  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.
         (c)  This chapter and the creation of the district may not be
  interpreted to relieve the county 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 services provided in the
  district.
         Sec. 3957.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a)  The district is created to serve a public use and benefit.
         (b)  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.
         (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; and
               (3)  developing or expanding transportation and
  commerce.
         (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;
               (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;
  and
               (4)  provide for water, wastewater, drainage, road, and
  recreational facilities for the district.
         (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. 3957.005.  INITIAL DISTRICT TERRITORY. (a)  The
  district is initially composed of the territory described by
  Section 2 of the Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure. A mistake in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bonds for the purposes
  for which the district is created or to pay the principal of and
  interest on bonds;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3957.006.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3957.007.  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. 3957.051.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of five directors elected in the manner provided
  by Sections 49.102 and 49.103, Water Code.
         (b)  Except as provided by Section 3957.054, directors serve
  staggered four-year terms.
         Sec. 3957.052.  QUORUM. For purposes of determining the
  requirements for a quorum of the board, the following are not
  counted:
               (1)  a board position vacant for any reason, including
  death, resignation, or disqualification; or
               (2)  a director who is abstaining from participation in
  a vote because of a conflict of interest.
         Sec. 3957.053.  COMPENSATION. A director is entitled to
  receive fees of office and reimbursement for actual expenses as
  provided by Section 49.060, Water Code. Sections 375.069 and
  375.070, Local Government Code, do not apply to the board.
         Sec. 3957.054.  TEMPORARY VOTING DIRECTORS; CONFIRMATION.  
  (a)  On or after the effective date of the Act enacting this
  chapter, the owner or owners of a majority of the assessed value of
  the real property in the district according to the most recent
  certified tax appraisal roll for the county may submit a petition to
  the Texas Commission on Environmental Quality requesting that the
  commission appoint as temporary voting directors the five persons
  named in the petition. The commission shall appoint the five
  persons named in the petition as temporary directors by position.
         (b)  The temporary directors shall hold an election to
  confirm the creation of the district and to elect five permanent
  directors as provided by Section 49.102, Water Code.
         (c)  Temporary directors serve until the earlier of:
               (1)  the date permanent directors are elected under
  Subsection (b); or
               (2)  the fourth anniversary of the effective date of
  the Act enacting this chapter.
         (d)  If permanent directors have not been elected under
  Subsection (b) and the terms of the temporary directors have
  expired, successor temporary directors shall be appointed or
  reappointed as provided by Subsection (e) to serve terms that
  expire on the earlier of:
               (1)  the date permanent directors are elected under
  Subsection (b); or
               (2)  the fourth anniversary of the date of the
  appointment or reappointment.
         (e)  If Subsection (d) applies, the owner or owners of a
  majority of the assessed value of the real property in the district
  may submit a petition to the Texas Commission on Environmental
  Quality requesting that the commission appoint as successor
  temporary directors the five persons named in the petition.  The
  commission shall appoint as successor temporary directors the five
  persons named in the petition.
         (f)  Section 3957.051 does not apply to this section.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3957.101.  GENERAL POWERS AND DUTIES. The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3957.102.  IMPROVEMENT PROJECTS AND SERVICES. The
  district may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service using any money available to the district, or contract with
  a governmental or private entity to 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.
         Sec. 3957.103.  AGREEMENTS; GRANTS. (a)  As provided by
  Chapter 375, Local Government Code, the district may make an
  agreement with or accept a gift, grant, or loan from any person.
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  Code.
         Sec. 3957.104.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with a qualified party,
  including the county, to provide law enforcement services in the
  district for a fee.
         Sec. 3957.105.  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. 3957.106.  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. 3957.107.  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. 3957.108.  ANNEXATION OF LAND. The district may annex
  land as provided by Subchapter J, Chapter 49, Water Code.
         Sec. 3957.109.  NO EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
         Sec. 3957.151.  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. 3957.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
  The district may acquire, construct, finance, operate, or maintain
  any improvement or service authorized under this chapter or Chapter
  375, Local Government Code, using any money available to the
  district.
         Sec. 3957.153.  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. 3957.154.  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 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.
         Sec. 3957.155.  TAX AND ASSESSMENT ABATEMENTS.  The district
  may designate reinvestment zones and may grant abatements of a tax
  or assessment on property in the zones.
  SUBCHAPTER E. TAXES AND BONDS
         Sec. 3957.201.  ELECTIONS REGARDING TAXES AND BONDS.
  (a)  The district may issue, without an election, bonds, notes, and
  other obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 3957.203.
         (b)  The district must hold an election in the manner
  provided by Subchapter L, Chapter 375, Local Government Code, to
  obtain voter approval before the district may impose an ad valorem
  tax or issue bonds payable from ad valorem taxes.
         (c)  Section 375.243, Local Government Code, does not apply
  to the district.
         (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 the election.
         Sec. 3957.202.  OPERATION AND MAINTENANCE TAX. (a)  If
  authorized by a majority of the district voters voting at an
  election held in accordance with Section 3957.201, the district may
  impose an operation and maintenance tax on taxable property in the
  district in accordance with 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.
         (c)  Section 49.107(h), Water Code, does not apply to the
  district.
         Sec. 3957.203.  CONTRACT TAXES. (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
         Sec. 3957.204.  AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
  AND OTHER OBLIGATIONS. (a)  The district may borrow money on terms
  determined by the board.  Section 375.205, Local Government Code,
  does not apply to a loan, line of credit, or other borrowing from a
  bank or financial institution secured by revenue other than ad
  valorem taxes.
         (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.
         (c)  The limitation on the outstanding principal amount of
  bonds, notes, and other obligations provided by Section 49.4645,
  Water Code, does not apply to the district.
         Sec. 3957.205.  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,
  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.
  SUBCHAPTER F.  DEFINED AREAS
         Sec. 3957.251.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
  DESIGNATED PROPERTY. The district may define areas or designate
  certain property of the district to pay for improvements,
  facilities, or services that primarily benefit that area or
  property and do not generally and directly benefit the district as a
  whole.
         Sec. 3957.252.  PROCEDURE FOR ELECTION. (a)  Before the
  district may impose an ad valorem tax or issue bonds payable from ad
  valorem taxes of the defined area or designated property, the board
  shall hold an election in the defined area or in the designated
  property only.
         (b)  The board may submit the proposition to the voters on
  the same ballot to be used in another election.
         Sec. 3957.253.  DECLARING RESULT AND ISSUING ORDER. (a)  If
  a majority of the voters voting at the election approve the
  proposition or propositions, the board shall declare the results
  and, by order, shall establish the defined area and describe it by
  metes and bounds or designate the specific property.
         (b)  A court may not review the board's order except on the
  ground of fraud, palpable error, or arbitrary and confiscatory
  abuse of discretion.
         Sec. 3957.254.  TAXES FOR SERVICES, IMPROVEMENTS, AND
  FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
  approval and adoption of the order described by Section 3957.253,
  the district may apply separately, differently, equitably, and
  specifically its taxing power and lien authority to the defined
  area or designated property to provide money to construct,
  administer, maintain, and operate services, improvements, and
  facilities that primarily benefit the defined area or designated
  property.
         Sec. 3957.255.  ISSUANCE OF BONDS FOR DEFINED AREA OR
  DESIGNATED PROPERTY. After the order under Section 3957.253 is
  adopted, the district may issue bonds to provide for any land,
  improvements, facilities, plants, equipment, and appliances for
  the defined area or designated property.
         Sec. 3957.256.  ADDITION OR EXCLUSION OF LAND IN DEFINED
  AREA. The district may add or exclude land from the defined areas
  in the same manner the district may add or exclude land from the
  district.
  SUBCHAPTER G.  DISSOLUTION AND MUNICIPAL ANNEXATION
         Sec. 3957.301.  DISSOLUTION; MUNICIPAL ANNEXATION.
  (a)  The district is a water or sewer district for the purposes of
  Section 43.071, Local Government Code.
         (b)  Section 43.075, Local Government Code, applies to the
  district.
         (c)  Section 375.264, Local Government Code, does not apply
  to the dissolution of the district by a municipality.
         SECTION 2.  The Fort Bend County Municipal Management
  District No. 2 initially includes all the territory contained in
  the following area:
         BEING a 100.0 acre tract of land situated in the Knight and
  White Survey, Abstract No. 46 of Fort Bend County, Texas and being a
  portion of a called 901.854 acre tract (Tract I) of land as
  described in an instrument to WBH Ranches, LP recorded under Fort
  Bend County Clerk's File Number (F.B.C.C.F. No.) 2015004534, said
  100.0 acre tract of land described by metes and bounds as follows:
         COMMENCING at an interior corner of said 901.854 acre tract,
  same being the northwest corner of a called 294.296 acre tract as
  described in an instrument to Old South Plantation, Inc. recorded
  under F.B.C.C.F. No. 9722234, and the northwest corner of a called
  19.991 acre Drainage Easement tract as described in an instrument
  to the State of Texas for highway drainage purposes recorded under
  Volume 2247, Page 916 of the Fort Bend County Deed Records;
         THENCE, S 02°29'39" E, along and with the east line of said
  901.854 acre tract, same being the west line of said 294.296 acre
  tract and said 19.991 acre drainage easement tract, a distance of
  1,127.28 feet to the northeast corner and POINT OF BEGINNING of the
  herein described tract;
         THENCE, S 02°29'39" E, continuing along and with said east
  line, a distance of 2,087.00 feet to the southeast corner of the
  herein described tract;
         THENCE, over and across said 901.854 acre tract, the
  following courses and distances:
               S 87°30'21" W, a distance of 2,087.21 feet to the
  southwest corner of the herein described tract;
               N 02°29'39" W, a distance of 2,087.00 feet to the
  northwest corner of the herein described tract;
               N 87°30'21" E, a distance of 2,087.21 feet to the POINT
  OF BEGINNING and containing 100.0 acres of land.
         Bearing orientation is based on the Texas Coordinate System,
  South Central Zone 4204, NAD-83 and is referenced to a called
  901.854 acre tract as cited herein.
         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)  The general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with.
         (e)  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, 2017.
 
  * * * * *
feedback