Bill Text: TX SB2269 | 2017-2018 | 85th Legislature | Comm Sub


Bill Title: Relating to creation of the Bolivar Management District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-05-10 - Recommendations filed with the Senate [SB2269 Detail]

Download: Texas-2017-SB2269-Comm_Sub.html
 
 
  By: Creighton  S.B. No. 2269
         (In the Senate - Filed April 7, 2017; April 10, 2017, read
  first time and referred to Committee on Intergovernmental
  Relations; May 3, 2017, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 6, Nays 0;
  May 3, 2017, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2269 By:  Garcia
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to creation of the Bolivar Management District; providing
  authority to issue bonds; providing authority to impose
  assessments, fees, and 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 3796 to read as follows:
  CHAPTER 3796. BOLIVAR MANAGEMENT DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 3796.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "City" means the City of Galveston.
               (3)  "County" means Galveston County.
               (4)  "District" means the Bolivar Management District.
         Sec. 3796.002.  BOLIVAR MANAGEMENT DISTRICT. The Bolivar
  Management District is a special district created under Section 59,
  Article XVI, Texas Constitution.
         Sec. 3796.003.  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. 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 area of 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 the county services provided in the
  area in the district.
         Sec. 3796.004.  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:
               (1)  further the public purposes of development and
  diversification of the economy of the state;
               (2)  eliminate unemployment and underemployment; and
               (3)  develop or expand transportation and commerce.
         (d)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, employees, visitors, and consumers in the
  district, and of the public;
               (2)  provide needed funding to preserve, maintain, and
  enhance the economic health and vitality of the district 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, 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. 3796.005.  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 of the district contained
  in Section 2 of the Act enacting this chapter form a closure. A
  mistake made in the field notes or in copying the field notes in the
  legislative process does not in any way affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bonds, notes, or other
  obligations for a purpose for which the district is created or to
  pay the principal of and interest on the bonds, notes, or other
  obligations;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3796.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
  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.
         Sec. 3796.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3796.008.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be construed liberally in conformity with the
  findings and purposes stated in this chapter.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3796.051.  GOVERNING BODY; TERMS. (a)  Except as
  provided by Subsection (c), the district is governed by a board of
  five directors appointed under Section 3796.052.
         (b)  Voting directors serve staggered terms of four years,
  with two or three directors' terms expiring June 1 of each
  odd-numbered year.
         (c)  The board by resolution may increase or decrease the
  number of directors on the board if the board finds it is in the best
  interest of the district. The board may not consist of fewer than 5
  or more than 15 directors.
         Sec. 3796.052.  APPOINTMENT OF DIRECTORS. The governing
  body of the county shall appoint the directors from a list of
  persons recommended by the board.
         Sec. 3796.053.  CONFLICTS OF INTEREST. (a)  Except as
  provided by this section:
               (1)  a director may participate in all board votes and
  decisions; and
               (2)  Chapter 171, Local Government Code, governs
  conflicts of interest for directors.
         (b)  A director who is also an officer or employee of a public
  entity may not participate in the discussion of or vote on a matter
  regarding a contract with that public entity.
         Sec. 3796.054.  INITIAL DIRECTORS. (a)  The initial board
  consists of the following directors:
 
Pos. No. Name of Director
 
1 Robert Morgan
 
2 Justin Thompson
 
3 Tom Harrison
 
4 Brad Ballard
 
5 Ross Harrison
         (b)  Of the initial directors, the terms of directors
  appointed for positions one and two expire June 1, 2019, and the
  terms of directors appointed for positions three through five
  expire June 1, 2021.
         (c)  Section 3796.052 does not apply to this section.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3796.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3796.102.  IMPROVEMENT PROJECTS AND SERVICES.  (a)  The
  district may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service using 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
  under Chapter 375, Local Government Code.
         (b)  An improvement project described by Subsection (a) may
  be located inside or outside the district.
         Sec. 3796.103.  AUTHORITY FOR ROAD PROJECTS.  Under Section
  52, Article III, Texas Constitution, the district may own, operate,
  maintain, design, acquire, construct, finance, issue bonds, notes,
  or other obligations for, improve, and convey to this state, a
  county, or a municipality for ownership, operation, and maintenance
  macadamized, graveled, or paved roads or improvements, including
  storm drainage, in aid of those roads.
         Sec. 3796.104.  CONVEYANCE AND APPROVAL OF ROAD PROJECT.  
  (a)  The district may convey a road project authorized by Section
  3796.103 to:
               (1)  a municipality or county that will operate and
  maintain the road if the municipality or county has approved the
  plans and specifications of the road project; or
               (2)  the state if the state will operate and maintain
  the road and the Texas Transportation Commission has approved the
  plans and specifications of the road project.
         (b)  Except as provided by Subsection (c), the district shall
  operate and maintain a road project authorized by Section 3796.103
  that the district implements and does not convey to a municipality,
  a county, or this state under Subsection (a).
         (c)  The district may agree in writing with a municipality, a
  county, or this state to assign operation and maintenance duties to
  the district, the municipality, the county, or this state in a
  manner other than the manner described in Subsections (a) and (b).
         Sec. 3796.105.  DEVELOPMENT CORPORATION POWERS.  The
  district, using money available to the district, may exercise the
  powers given to a development corporation under Chapter 505, Local
  Government Code, including the power to own, operate, acquire,
  construct, lease, improve, or maintain a project under that
  chapter.
         Sec. 3796.106.  ADDITIONAL POWERS OF DISTRICT.  The district
  may exercise the powers given to a district governed by Subchapters
  E and M, Chapter 60, Water Code, and Section 61.116, Water Code.
         Sec. 3796.107.  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 for purposes of
  this chapter 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. 3796.108.  AGREEMENTS; GRANTS. (a)  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. 3796.109.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with the county or the
  city to provide law enforcement services in the district for a fee.
         Sec. 3796.110.  COMPETITIVE BIDDING. Section 375.221, Local
  Government Code, applies to the district, but only for a contract
  that has a value greater than $15,000.
         Sec. 3796.111.  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. 3796.112.  ECONOMIC DEVELOPMENT PROGRAMS. 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.
  SUBCHAPTER D. FINANCIAL PROVISIONS
         Sec. 3796.151.  DISBURSEMENTS OR TRANSFERS OF MONEY. The
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of the district's money.
         Sec. 3796.152.  TAX AND BOND ELECTIONS. (a)  The district
  shall hold an election in the manner provided by Subchapter L,
  Chapter 375, Local Government Code, to obtain voter approval before
  the district imposes a maintenance tax or issues bonds payable from
  ad valorem taxes.
         (b)  The board may not include more than one purpose in a
  single proposition at an election.
         (c)  Section 375.243, Local Government Code, does not apply
  to the district.
         Sec. 3796.153.  MAINTENANCE AND OPERATION TAX. (a)  If
  authorized at an election held in accordance with Section 3796.152,
  the district may impose an annual ad valorem tax on taxable property
  in the district for the:
               (1)  maintenance and operation of the district and the
  improvements constructed or acquired by the district; or
               (2)  provision of a service.
         (b)  The board shall determine the tax rate. The rate may not
  exceed the rate approved at the election.
         Sec. 3796.154.  ASSESSMENTS; LIENS FOR ASSESSMENTS.
  (a)  The board by resolution may impose an assessment for any
  purpose authorized by this chapter.
         (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. 3796.155.  PETITION REQUIRED FOR FINANCING SERVICES AND
  IMPROVEMENTS. (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)  The petition 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. 3796.156.  UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
  ASSESSMENTS. The district may not impose an impact fee or
  assessment on the property, including the equipment,
  rights-of-way, 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;
               (3)  a telecommunications provider as defined by
  Section 51.002, Utilities Code; or
               (4)  a person who provides to the public cable
  television or advanced telecommunications services.
         Sec. 3796.157.  BONDS AND OTHER OBLIGATIONS. (a)  The
  district may issue bonds or other obligations payable wholly or
  partly from ad valorem taxes, assessments, impact fees, revenue,
  grants, or other money of the district, or any combination of those
  sources of money, to pay for any authorized purpose of the district.
         (b)  In exercising the district's power to borrow, the
  district may issue a bond or other obligation in the form of a bond,
  note, certificate of participation or other instrument evidencing a
  proportionate interest in payments to be made by the district, or
  other type of obligation.
         Sec. 3796.158.  COUNTY NOT REQUIRED TO PAY DISTRICT
  OBLIGATIONS. The county is not required to pay a bond, note, or
  other obligation of the district.
         Sec. 3796.159.  TAX AND ASSESSMENT ABATEMENTS. Without
  further authorization or other procedural requirement, the
  district may grant, consistent with Chapter 312, Tax Code, an
  abatement for a tax or assessment owed to the district.
  SUBCHAPTER E. DISSOLUTION
         Sec. 3796.201.  DISSOLUTION OF DISTRICT WITH OUTSTANDING
  DEBT. (a)  The board may vote to dissolve a district that has debt.
  If the vote is in favor of dissolution, the district shall remain in
  existence solely for the limited purpose of discharging its debts.
  The dissolution is effective when all debts have been discharged.
         (b)  Section 375.264, Local Government Code, does not apply
  to the district.
         SECTION 2.  The Bolivar Management District initially
  includes all the territory contained in the following area:
         Land lying and being situated in Galveston County, Texas, out
  of the Port Bolivar Townsite, Samuel Parr Survey, Abstract No. 162,
  Galveston County, Texas as follows:
         Block Lot(s)
         320 1-33
         345 13-24
         346 1-34
         Water Lots # 33 - 55 Lying North of Intracoastal Waterway.
         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.
 
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