Texas 2009 - 81st Regular

Texas House Bill HB4768 Compare Versions

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1	1	81R25170 GCB-D
2	2	By: Hunter H.B. No. 4768
3	3	Substitute the following for H.B. No. 4768:
4	4	By: Marquez C.S.H.B. No. 4768
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of the Padre Island Gateway Municipal
10	10	Management District; providing authority to impose a tax and issue
11	11	bonds.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle C, Title 4, Special District Local Laws
14	14	Code, is amended by adding Chapter 3869 to read as follows:
15	15	CHAPTER 3869. PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 3869.001. DEFINITIONS. In this chapter:
18	18	(1) "Board" means the district's board of directors.
19	19	(2) "City" means the City of Corpus Christi.
20	20	(3) "District" means the Padre Island Gateway
21	21	Municipal Management District.
22	22	(4) "Improvement project" means any program or project
23	23	authorized by Sections 3869.102 and 3869.160 inside or outside the
24	24	district.
25	25	Sec. 3869.002. NATURE OF DISTRICT. The district is a
26	26	special district created under Section 59, Article XVI, Texas
27	27	Constitution.
28	28	Sec. 3869.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The
29	29	creation of the district is essential to accomplish the purposes of
30	30	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
31	31	Texas Constitution, and other public purposes stated in this
32	32	chapter. By creating the district and in authorizing the city and
33	33	other political subdivisions to contract with the district, the
34	34	legislature has established a program to accomplish the public
35	35	purposes set out in Section 52-a, Article III, Texas Constitution.
36	36	(b) The creation of the district is necessary to promote,
37	37	develop, and protect the environment and the other natural
38	38	resources of this state, and to encourage and maintain employment,
39	39	commerce, transportation, housing, tourism, recreation, the arts,
40	40	entertainment, economic development, safety, and the public
41	41	welfare in the district.
42	42	(c) The district is created to supplement and not to
43	43	supplant services provided by the city in the district. This
44	44	chapter and the creation of the district may not be interpreted to
45	45	relieve the city from providing the level of services provided as of
46	46	the effective date of the Act enacting this chapter to the area in
47	47	the district.
48	48	Sec. 3869.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
49	49	The district is created to serve a public use and benefit.
50	50	(b) All land and other property included in the district
51	51	will benefit from the improvements and services to be provided by
52	52	the district under powers conferred by Sections 52 and 52-a,
53	53	Article III, and Section 59, Article XVI, Texas Constitution, and
54	54	other powers granted under this chapter.
55	55	(c) The creation of the district is in the public interest
56	56	and is essential to further the public purposes of:
57	57	(1) developing and diversifying the economy of this
58	58	state;
59	59	(2) eliminating unemployment and underemployment;
60	60	(3) providing quality residential housing;
61	61	(4) developing or expanding transportation and
62	62	commerce; and
63	63	(5) improving and enhancing the environment in and
64	64	around the district and in the city.
65	65	(d) The district will:
66	66	(1) promote the health, safety, and general welfare of
67	67	residents, employers, potential employees, employees, visitors,
68	68	and consumers in the district, and of the public;
69	69	(2) provide needed funding for the district to
70	70	preserve, maintain, and enhance the economic health and vitality of
71	71	the district territory as a residential community and business
72	72	center;
73	73	(3) promote the health, safety, welfare, and enjoyment
74	74	of the public by providing pedestrian ways throughout the district,
75	75	including beaches; and
76	76	(4) landscape and develop areas in the district that
77	77	are necessary for the restoration, preservation, and enhancement of
78	78	scenic beauty and enhancing and improving the environment as an
79	79	essential natural resource of this state.
80	80	(e) Pedestrian ways along or across a street or a beach,
81	81	whether at grade or above or below the surface, and street lighting,
82	82	street landscaping, vehicle parking, and street art objects are
83	83	parts of and necessary components of a street and a beach and are
84	84	considered to be an improvement project that includes a street,
85	85	road, or beach improvement.
86	86	(f) The district will not act as the agent or
87	87	instrumentality of any private interest even though the district
88	88	will benefit many private interests as well as the public.
89	89	Sec. 3869.005. DISTRICT TERRITORY. (a) The district is
90	90	composed of the territory described by Section 2 of the Act creating
91	91	this chapter, as that territory may have been modified under
92	92	Section 3869.107 or other law.
93	93	(b) A mistake in the field notes of the district contained
94	94	in Section 2 of the Act enacting this chapter or in copying the
95	95	field notes in the legislative process does not in any way affect:
96	96	(1) the district's organization, existence, or
97	97	validity;
98	98	(2) the district's right to contract, including the
99	99	right to issue any type of bond or other obligation for a purpose
100	100	for which the district is created;
101	101	(3) the district's right to impose or collect an
102	102	assessment, tax, or any other revenue; or
103	103	(4) the legality or operation of the board.
104	104	Sec. 3869.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
105	105	(a) All or any part of the area of the district is eligible to be
106	106	included in:
107	107	(1) a tax increment reinvestment zone created by the
108	108	city under Chapter 311, Tax Code;
109	109	(2) a tax abatement reinvestment zone created by the
110	110	city under Chapter 312, Tax Code; or
111	111	(3) an enterprise zone created by the city under
112	112	Chapter 2303, Government Code.
113	113	(b) If the city creates a tax increment reinvestment zone
114	114	described by Subsection (a), the district may accept and use money
115	115	deposited in the tax increment fund, in accordance with a contract
116	116	between the city and the district, for a purpose Section
117	117	380.002(b), Local Government Code, authorizes for a corporation.
118	118	The district may pledge the money granted as security for bonds
119	119	issued by the district for an improvement project.
120	120	Sec. 3869.007. CONSTRUCTION OF "AD VALOREM TAX." In this
121	121	chapter, a reference in law to an ad valorem tax refers to an ad
122	122	valorem tax imposed by the district and not an ad valorem tax
123	123	imposed by the city.
124	124	Sec. 3869.008. LIABILITY RESULTING FROM DISTRICT ACTION.
125	125	An action of the district or the board does not create a liability
126	126	against the city or any other political subdivision.
127	127	[Sections 3869.009-3869.050 reserved for expansion]
128	128	SUBCHAPTER B. BOARD OF DIRECTORS
129	129	Sec. 3869.051. GOVERNING BODY; TERMS. The district is
130	130	governed by a board of five voting directors appointed under
131	131	Section 3869.052 and three nonvoting directors serving ex officio
132	132	as provided by Section 3869.054. The five voting directors serve
133	133	staggered terms of four years.
134	134	Sec. 3869.052. APPOINTED DIRECTORS. The governing body of
135	135	the city shall appoint the voting directors and shall appoint a
136	136	director to fill each vacancy that occurs on the board, with the
137	137	appointee to serve for the unexpired term of the former director.
138	138	Sec. 3869.053. ELIGIBILITY OF APPOINTED DIRECTORS. (a) To
139	139	be qualified to serve as a voting director appointed under Section
140	140	3869.052, a person must be at least 18 years old and:
141	141	(1) a resident of the district who is also a registered
142	142	voter of the district;
143	143	(2) an owner of property in the district;
144	144	(3) an owner of stock, whether beneficial or
145	145	otherwise, of a corporate owner of property in the district;
146	146	(4) an owner of a beneficial interest in a trust that
147	147	owns property in the district; or
148	148	(5) an agent, employee, or tenant of a person
149	149	described by Subdivision (2), (3), or (4).
150	150	(b) Section 49.052, Water Code, does not apply to the
151	151	district.
152	152	Sec. 3869.054. EX OFFICIO DIRECTORS. (a) The following
153	153	persons serve ex officio as nonvoting directors:
154	154	(1) an assistant city manager of the city appointed by
155	155	the city manager of the city;
156	156	(2) the chief financial officer of the city; and
157	157	(3) the economic development director of the city.
158	158	(b) If an office described in Subsection (a) is renamed,
159	159	changed, or abolished, the governing body of the city may appoint
160	160	another officer or employee of the city who performs duties
161	161	comparable to those performed by the officer described by
162	162	Subsection (a).
163	163	Sec. 3869.055. FILING OATH OR AFFIRMATION. An initial and
164	164	an appointed director's oath or affirmation of office shall be
165	165	filed with the district and the district shall retain the oath or
166	166	affirmation in the district records.
167	167	Sec. 3869.056. OFFICERS. The board shall elect from among
168	168	the initial and appointed directors a presiding officer, an
169	169	assistant presiding officer, and a secretary.
170	170	Sec. 3869.057. COMPENSATION; EXPENSES; LIABILITY INSURANCE
171	171	FOR DIRECTORS. (a) The district may compensate each initial and
172	172	each appointed voting director in an amount not to exceed $50 for
173	173	each board meeting. The total amount of compensation per appointed
174	174	director per year may not exceed $2,000. The district may not
175	175	compensate a director serving ex officio.
176	176	(b) An initial or appointed voting director is entitled to
177	177	reimbursement for necessary and reasonable expenses incurred in
178	178	carrying out the duties and responsibilities of a director. A
179	179	director serving ex officio is not entitled to reimbursement.
180	180	(c) The district may obtain and pay for comprehensive
181	181	general liability insurance coverage from commercial insurance
182	182	companies or other sources that protect and insure the directors
183	183	against personal liability and from any and all claims for actions
184	184	taken as directors or actions and activities taken by the district
185	185	or by others acting on its behalf.
186	186	Sec. 3869.058. CONFLICTS OF INTEREST. (a) An initial or
187	187	appointed director may participate in a board discussion or vote
188	188	only if the director complies with Subsection (b).
189	189	(b) A director who has a substantial interest in a business
190	190	or charitable entity that will receive a pecuniary benefit from a
191	191	board action shall file an affidavit with the board secretary
192	192	declaring the interest. Another affidavit is not required if the
193	193	director's interest changes.
194	194	(c) After the affidavit is filed, the director may
195	195	participate in a discussion or vote if:
196	196	(1) a majority of the appointed directors have a
197	197	similar interest in the same entity;
198	198	(2) all other similar businesses or charitable
199	199	entities in the district will receive a similar pecuniary benefit;
200	200	or
201	201	(3) the appointed director is a property owner in the
202	202	district.
203	203	(d) Section 171.004, Local Government Code, does not apply
204	204	to the district.
205	205	Sec. 3869.059. INITIAL DIRECTORS. (a) The initial board
206	206	consists of the three ex officio directors described by Section
207	207	3869.054 and the following five voting directors:
208	208	Place No. Name of Initial Director
209	209	Place 1 Stacy Costello
210	210	Place 2 Toni Duclottni
211	211	Place 3 Mark Patterson
212	212	Place 4 Kevin Mutschler
213	213	Place 5 Ronald Batts
214	214	(b) The terms of the initial directors of Places 1 and 2
215	215	expire on July 1, 2011, and the terms of the initial directors of
216	216	Places 3, 4, and 5 expire on July 1, 2013.
217	217	(c) Subsequent voting directors are appointed for four-year
218	218	terms by the governing body of the city under Section 3869.052.
219	219	(d) This section expires September 1, 2013.
220	220	[Sections 3869.060-3869.100 reserved for expansion]
221	221	SUBCHAPTER C. POWERS AND DUTIES
222	222	Sec. 3869.101. GENERAL POWERS AND DUTIES. (a) The district
223	223	has the duties imposed and the powers granted by this chapter and
224	224	the powers provided by:
225	225	(1) the general laws relating to conservation and
226	226	reclamation districts created under Section 59, Article XVI, Texas
227	227	Constitution, including Chapters 49 and 54, Water Code;
228	228	(2) the general laws relating to road districts and
229	229	road utility districts created under Section 52, Article III, Texas
230	230	Constitution;
231	231	(3) Subchapter A, Chapter 372, Local Government Code,
232	232	to a municipality or county;
233	233	(4) Chapter 375, Local Government Code;
234	234	(5) Chapter 505, Local Government Code, to a
235	235	corporation created under that chapter; and
236	236	(6) Chapter 1371, Government Code, to an issuer, as
237	237	defined by that chapter.
238	238	(b) It is expressly provided that the district's bonds and
239	239	other securities, and the activities and appointment of the board
240	240	of the district, are not subject to the jurisdiction or supervision
241	241	of the Texas Commission on Environmental Quality under Chapter 49,
242	242	Water Code, under Chapter 375, Local Government Code, or under any
243	243	other law.
244	244	Sec. 3869.102. IMPROVEMENT PROJECTS. (a) To the extent
245	245	authorized by a project development agreement entered into under
246	246	Section 3869.160, the district may provide, or enter into contracts
247	247	with a governmental or private entity to provide, the following
248	248	types of improvement projects or activities in support of or
249	249	incidental to those projects:
250	250	(1) a supply and distribution facility or system to
251	251	provide potable and nonpotable water to the residents and
252	252	businesses of the district, including a wastewater collection
253	253	facility;
254	254	(2) a paved, macadamized, or graveled road, street, or
255	255	turnpike, inside and outside the district, to the full extent
256	256	authorized by Section 52, Article III, Texas Constitution;
257	257	(3) the planning, design, construction, improvement,
258	258	and maintenance of:
259	259	(A) landscaping;
260	260	(B) highway right-of-way or transit corridor
261	261	beautification and improvement;
262	262	(C) lighting, banners, and signs;
263	263	(D) a street or sidewalk;
264	264	(E) a hiking and cycling path or trail;
265	265	(F) a pedestrian walkway, skywalk, crosswalk, or
266	266	tunnel;
267	267	(G) a beach, park, lake, garden, recreational
268	268	facility, community activities center, dock, wharf, sports
269	269	facility, open space, scenic area, or related exhibit or preserve;
270	270	(H) a fountain, plaza, or pedestrian mall; or
271	271	(I) a drainage or storm water detention
272	272	improvement;
273	273	(4) protection and improvement of the quality of storm
274	274	water that flows through the district;
275	275	(5) the planning, design, construction, improvement,
276	276	maintenance, and operation of an off-street parking facility or
277	277	heliport;
278	278	(6) the planning, design, construction, improvement,
279	279	maintenance, and operation of a water or sewer facility;
280	280	(7) the planning and acquisition of:
281	281	(A) public art and sculpture and related exhibits
282	282	and facilities; or
283	283	(B) an educational facility and a cultural
284	284	exhibit or facility;
285	285	(8) the planning, design, construction, acquisition,
286	286	lease, rental, improvement, maintenance, installation, and
287	287	management of and provision of furnishings for a facility for:
288	288	(A) a conference, convention, or exhibition;
289	289	(B) a manufacturer, consumer, or trade show;
290	290	(C) a civic, community, or institutional event;
291	291	or
292	292	(D) an exhibit, display, attraction, special
293	293	event, or seasonal or cultural celebration or holiday;
294	294	(9) the removal, razing, demolition, or clearing of
295	295	land or improvements in connection with an improvement project;
296	296	(10) the acquisition and improvement of land or other
297	297	property for the mitigation of the environmental effects of an
298	298	improvement project;
299	299	(11) the acquisition of property or an interest in
300	300	property in connection with an authorized improvement project,
301	301	including any project authorized by Subchapter A, Chapter 372,
302	302	Local Government Code;
303	303	(12) a special or supplemental service for the
304	304	improvement and promotion of the district or an area adjacent to the
305	305	district or for the protection of public health and safety or the
306	306	environment in or adjacent to the district, including:
307	307	(A) advertising;
308	308	(B) promotion;
309	309	(C) tourism;
310	310	(D) health and sanitation;
311	311	(E) public safety;
312	312	(F) security;
313	313	(G) fire protection or emergency medical
314	314	services;
315	315	(H) business recruitment;
316	316	(I) development;
317	317	(J) the reduction of automobile traffic volume
318	318	and congestion, including the provision, construction, and
319	319	operation of light rail or streetcar systems and services; and
320	320	(K) recreational, educational, or cultural
321	321	improvements, enhancements, and services; or
322	322	(13) any similar public improvement, facility, or
323	323	service.
324	324	(b) The district may not undertake a project under this
325	325	section unless:
326	326	(1) the board determines the project to be necessary
327	327	to accomplish a public purpose of the district; and
328	328	(2) the project is authorized by a project development
329	329	agreement entered into under Section 3869.160.
330	330	(c) An improvement project must comply with any applicable
331	331	codes and ordinances of the city.
332	332	(d) The district may not provide, conduct, or authorize any
333	333	improvement project on streets, highways, rights-of-way, or
334	334	easements of the city without the consent of the governing body of
335	335	the city.
336	336	(e) The district shall transfer to the city title to all or
337	337	any portion of an improvement project as provided by a project
338	338	development agreement entered into under Section 3869.160.
339	339	(f) If authorized by the city, the district may own,
340	340	encumber, maintain, and operate an improvement project, subject to
341	341	the right of the city to order a conveyance of the project to the
342	342	city on a date determined by the city.
343	343	(g) The district shall immediately comply with an
344	344	ordinance, order, or resolution the city adopts to require the
345	345	district to transfer title to an improvement project to the city.
346	346	(h) For the purposes of this section, planning, design,
347	347	construction, improvement, and maintenance of a body of water
348	348	includes work done for drainage, reclamation, or recreation.
349	349	Sec. 3869.103. GENERAL POWERS REGARDING CONTRACTS. (a)
350	350	The district may:
351	351	(1) contract with any person to accomplish any
352	352	district purpose included in a project development agreement
353	353	entered into under Section 3869.160, including a contract for:
354	354	(A) the payment, repayment, or reimbursement of
355	355	costs incurred by that person on behalf of the district, including
356	356	all or part of the costs of an improvement project and interest on
357	357	the reimbursed cost; or
358	358	(B) the use, occupancy, lease, rental,
359	359	operation, maintenance, or management of all or part of a proposed
360	360	or existing improvement project; and
361	361	(2) apply for and contract with any person to receive,
362	362	administer, and perform a duty or obligation of the district under a
363	363	federal, state, local, or private gift, grant, loan, conveyance,
364	364	transfer, bequest, or other financial assistance arrangement
365	365	relating to the investigation, planning, analysis, study, design,
366	366	acquisition, construction, improvement, completion,
367	367	implementation, or operation by the district or others of a
368	368	proposed or existing improvement project.
369	369	(b) A contract the district enters into to carry out a
370	370	purpose of this chapter may be on any terms and for any period the
371	371	board determines, including a negotiable or nonnegotiable note or
372	372	warrant payable to the city, Nueces County, or any other person.
373	373	(c) Any person, including the city, may contract with the
374	374	district to carry out the purposes of this chapter without further
375	375	statutory or other authorization.
376	376	Sec. 3869.104. RULES; ENFORCEMENT. (a) The district may
377	377	adopt rules:
378	378	(1) to administer or operate the district;
379	379	(2) for the use, enjoyment, availability, protection,
380	380	security, and maintenance of the district's property and
381	381	facilities; or
382	382	(3) to provide for public safety and security in the
383	383	district, including the regulation or prohibition of automobiles
384	384	and other motor vehicles from using, entering, or traveling in
385	385	certain limited access areas in the district, except for safety and
386	386	emergency purposes.
387	387	(b) The district may enforce its rules by injunctive relief.
388	388	(c) To the extent a district rule conflicts with a rule,
389	389	order, ordinance, or regulation of the city, the rule, order,
390	390	ordinance, or regulation controls.
391	391	Sec. 3869.105. NAME CHANGE. The board by resolution may
392	392	change the district's name. The board shall give written notice of
393	393	the change to the city.
394	394	Sec. 3869.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF
395	395	DISTRICT. (a) The board by rule may regulate the private use of a
396	396	public roadway, open space, park, sidewalk, or similar public area
397	397	in the district. To the extent the district rules conflict with a
398	398	rule, order, ordinance, or regulation of the city, the rule, order,
399	399	ordinance, or regulation of the city controls. A rule may provide
400	400	for the safe and orderly use of public roadways, open spaces, parks,
401	401	sidewalks, and similar public areas or facilities.
402	402	(b) In addition to any permit required by the city, the
403	403	board may require a permit for a parade, demonstration,
404	404	celebration, entertainment event, or similar nongovernmental
405	405	activity in or on a public roadway, open space, park, sidewalk,
406	406	beach, or similar public area or facility owned by the district.
407	407	The board may charge a fee for the permit application or for public
408	408	safety or security services for those facilities in an amount the
409	409	board considers necessary.
410	410	(c) In addition to any permit required by the city, the
411	411	board may require a permit or franchise agreement with a vendor,
412	412	concessionaire, exhibitor, or similar private or commercial person
413	413	or organization for the limited use of the area or facility owned by
414	414	the district on terms and on payment of a permit or franchise fee
415	415	the board may impose.
416	416	Sec. 3869.107. ADDING OR REMOVING TERRITORY. As provided
417	417	by Subchapter J, Chapter 49, Water Code, the board may add territory
418	418	to the district, subject to Section 54.016, Water Code, or remove
419	419	territory from the district, except that:
420	420	(1) the addition or removal of the territory must be:
421	421	(A) included in an amended project development
422	422	agreement entered into under Section 3869.160;
423	423	(B) approved by the governing body of the city;
424	424	and
425	425	(C) approved by the owners of the territory being
426	426	added or removed;
427	427	(2) a reference to a tax in Subchapter J, Chapter 49,
428	428	or Section 54.016, Water Code, means an ad valorem tax; and
429	429	(3) territory may not be removed from the district if
430	430	bonds or other obligations of the district payable wholly or partly
431	431	from ad valorem taxes or assessments levied or assessed on the
432	432	territory are outstanding.
433	433	Sec. 3869.108. ECONOMIC DEVELOPMENT. (a) The district may
434	434	create an economic development program authorized by Section 52-a,
435	435	Article III, Texas Constitution, and may impose an ad valorem tax in
436	436	support of the program if the tax is approved by the district's
437	437	voters.
438	438	(b) The district may exercise the economic development
439	439	powers that:
440	440	(1) Chapter 380, Local Government Code, provides to a
441	441	municipality with a population of more than 100,000; and
442	442	(2) Chapter 1509, Government Code, provides to a
443	443	municipality.
444	444	Sec. 3869.109. TERMS OF EMPLOYMENT; COMPENSATION. The
445	445	board may employ and establish the terms of employment and
446	446	compensation of an executive director or general manager and any
447	447	other district employees the board considers necessary.
448	448	Sec. 3869.110. NO EMINENT DOMAIN POWER. The district may
449	449	not exercise the power of eminent domain.
450	450	[Sections 3869.111-3869.150 reserved for expansion]
451	451	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
452	452	Sec. 3869.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.
453	453	Except as provided by Section 3869.160, and subject to a project
454	454	development agreement entered into under Section 3869.160, the
455	455	district may:
456	456	(1) impose an ad valorem tax on all taxable property in
457	457	the district, including industrial, commercial, and residential
458	458	property, to pay for an improvement project of a type authorized by
459	459	Section 52, Article III, or Section 59, Article XVI, Texas
460	460	Constitution, or to secure payment of bonds issued to pay for those
461	461	projects;
462	462	(2) impose an assessment on property in the district
463	463	to pay the cost of maintenance of any authorized district
464	464	improvement in the manner provided for:
465	465	(A) a district under Subchapters A, E, and F,
466	466	Chapter 375, Local Government Code; or
467	467	(B) a municipality or county under Subchapter A,
468	468	Chapter 372, Local Government Code;
469	469	(3) provide or secure the payment or repayment of any
470	470	bond, note, other temporary or permanent obligation,
471	471	reimbursement, or other contract with any person; or
472	472	(4) provide or secure the payment or repayment of the
473	473	costs and expenses of the establishment, administration, and
474	474	operation of the district and the district's costs or share of the
475	475	costs or revenue of an improvement project or district contractual
476	476	obligation or indebtedness by or through:
477	477	(A) the imposition of an ad valorem tax, or an
478	478	assessment, user fee, concession fee, or rental charge; or
479	479	(B) any other revenue or resources of the
480	480	district, or other revenues authorized by the city, including
481	481	revenues from a tax increment reinvestment zone created by the
482	482	city;
483	483	(5) establish user charges related to the operation of
484	484	storm water facilities, including the regulation of storm water for
485	485	the protection of water quality in the district;
486	486	(6) establish user charges for the use of nonpotable
487	487	water for irrigation purposes, subject to the approval of the
488	488	governing body of the city;
489	489	(7) undertake separately or jointly with other
490	490	persons, including the city or Nueces County, all or part of the
491	491	cost of an improvement project, including an improvement project:
492	492	(A) for improving, enhancing, and supporting
493	493	public safety and security, fire protection and emergency medical
494	494	services, and law enforcement in and adjacent to the district; or
495	495	(B) that confers a general benefit on the entire
496	496	district or a special benefit on a definable part of the district;
497	497	and
498	498	(8) enter into a tax abatement agreement in accordance
499	499	with the general laws of this state authorizing and applicable to
500	500	tax abatement agreements by municipalities.
501	501	Sec. 3869.152. BORROWING MONEY. The district may borrow
502	502	money for a district purpose included in a project development
503	503	agreement entered into under Section 3869.160 by issuing or
504	504	executing bonds, notes, credit agreements, or other obligations of
505	505	any kind found by the board to be necessary or appropriate for the
506	506	district purpose. The bond, note, credit agreement, or other
507	507	obligation must be secured by and payable from ad valorem taxes,
508	508	assessments, or any combination thereof or from other district
509	509	revenue.
510	510	Sec. 3869.153. IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a)
511	511	The district may impose an impact fee or assessment included in a
512	512	project development agreement entered into under Section 3869.160
513	513	on property in the district, including an impact fee or assessment
514	514	on residential or commercial property, only in the manner provided
515	515	by Subchapter A, Chapter 372, or by Subchapter F, Chapter 375, Local
516	516	Government Code, for a municipality, county, or district, according
517	517	to the benefit received by the property.
518	518	(b) An impact fee for residential property must be for the
519	519	limited purpose of providing capital funding for:
520	520	(1) public water and wastewater facilities;
521	521	(2) drainage and storm water facilities; and
522	522	(3) streets and alleys.
523	523	(c) An assessment, a reassessment, or an assessment
524	524	resulting from an addition to or correction of the assessment roll
525	525	by the district, penalties and interest on an assessment or
526	526	reassessment, an expense of collection, and reasonable attorney's
527	527	fees incurred by the district are:
528	528	(1) a first and prior lien against the property
529	529	assessed; and
530	530	(2) superior to any other lien or claim other than a
531	531	lien or claim for county, school district, or municipal ad valorem
532	532	taxes.
533	533	(d) The lien of an assessment against property runs with the
534	534	land. That portion of an assessment payment obligation that has not
535	535	yet come due is not eliminated by the foreclosure of an ad valorem
536	536	tax lien, and any purchaser of property in a foreclosure of an ad
537	537	valorem tax lien takes the property subject to the assessment
538	538	payment obligations that have not yet come due and to the lien and
539	539	terms of payment under the assessment ordinance or order.
540	540	(e) The board may make a correction to or deletion from the
541	541	assessment roll that does not increase the amount of assessment of
542	542	any parcel of land without providing notice and holding a hearing in
543	543	the manner required for additional assessments.
544	544	(f) The district may not impose an impact fee on the
545	545	property, including equipment and facilities, of a public utility
546	546	provider in the district.
547	547	Sec. 3869.154. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.
548	548	Section 375.161, Local Government Code, does not apply to the
549	549	district.
550	550	Sec. 3869.155. MAINTENANCE AND OPERATION TAX; ELECTION.
551	551	(a) To the extent authorized by a project development agreement
552	552	entered into under Section 3869.160, the district may impose a tax
553	553	for maintenance and operation purposes, including for:
554	554	(1) planning, constructing, acquiring, maintaining,
555	555	repairing, and operating all improvement projects, including land,
556	556	plants, works, facilities, improvements, appliances, and equipment
557	557	of the district; and
558	558	(2) paying costs of services, engineering and legal
559	559	fees, and organization and administrative expenses.
560	560	(b) The district may not impose a maintenance and operation
561	561	tax unless the maintenance and operation tax is approved by a
562	562	majority of the district voters voting at an election held for that
563	563	purpose. The proposition in a maintenance and operation tax
564	564	election may be for a specific maximum rate or for an unlimited
565	565	rate. If a maximum tax rate is approved, the board may impose the
566	566	tax at any rate that does not exceed the approved rate.
567	567	(c) A maintenance and operation tax election may be held at
568	568	the same time and in conjunction with any other district election.
569	569	The election may be called by a separate election order or as part
570	570	of any other election order.
571	571	Sec. 3869.156. USE OF SURPLUS MAINTENANCE AND OPERATION
572	572	MONEY. If the district has surplus maintenance and operation tax
573	573	money that is not needed for the purposes for which it was
574	574	collected, the money may be used for any authorized purpose.
575	575	Sec. 3869.157. BONDS AND OTHER OBLIGATIONS; MUNICIPAL
576	576	APPROVAL. (a) Except as provided by Sections 3869.159 and
577	577	3869.160, the district may issue by competitive bid or negotiated
578	578	sale bonds, notes, or other obligations payable wholly or partly
579	579	from ad valorem taxes, or by assessments in the manner provided by
580	580	Subchapter A, Chapter 372, or by Subchapter J, Chapter 375, Local
581	581	Government Code.
582	582	(b) In exercising the district's borrowing power, the
583	583	district may issue a bond or other obligation in the form of a bond,
584	584	note, certificate of participation or other instrument evidencing a
585	585	proportionate interest in payments to be made by the district, or
586	586	any other type of obligation.
587	587	(c) In addition to the sources of money described by
588	588	Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
589	589	Government Code, district bonds may be secured and made payable,
590	590	wholly or partly, by a pledge of any part of the money the district
591	591	receives from system or improvement revenues or from any other
592	592	source, to the extent authorized by a project development agreement
593	593	entered into under Section 3869.160.
594	594	Sec. 3869.158. BOND MATURITY. Bonds may mature not more
595	595	than 40 years from their date of issue.
596	596	Sec. 3869.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. (a)
597	597	At the time bonds or other obligations payable wholly or partly from
598	598	ad valorem taxes are issued:
599	599	(1) the board shall impose a continuing direct annual
600	600	ad valorem tax, without limit as to rate or amount, for each year
601	601	that all or part of the bonds are outstanding; and
602	602	(2) the district annually shall impose an ad valorem
603	603	tax on all taxable property in the district in an amount sufficient
604	604	to:
605	605	(A) pay the interest on the bonds or other
606	606	obligations as the interest becomes due;
607	607	(B) create a sinking fund for the payment of the
608	608	principal of the bonds or other obligations when due or the
609	609	redemption price at any earlier required redemption date; and
610	610	(C) pay the expenses of imposing the taxes.
611	611	(b) Bonds or other obligations that are secured by and
612	612	payable from ad valorem taxes may not be issued unless the bonds and
613	613	the imposition of the taxes are approved by a majority of the
614	614	district voters voting at an election held for that purpose.
615	615	(c) The district shall hold an election required by this
616	616	section in the manner provided by Chapter 54, Water Code.
617	617	Sec. 3869.160. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
618	618	UNDERTAKE PROJECTS, IMPOSE TAXES, OR BORROW MONEY, INCLUDING BONDS.
619	619	(a) Before the district may undertake projects, issue bonds,
620	620	impose taxes, or borrow money, the district and the city must
621	621	negotiate and execute a mutually approved and accepted project
622	622	development agreement regarding the development plans and rules
623	623	for:
624	624	(1) the development and operation of the district; and
625	625	(2) the financing of improvement projects.
626	626	(b) The agreement must:
627	627	(1) describe each project the district intends to
628	628	undertake;
629	629	(2) include a financing plan specifying how each
630	630	project will be financed; and
631	631	(3) provide a procedure and rules for amending the
632	632	agreement.
633	633	[Sections 3869.161-3869.200 reserved for expansion]
634	634	SUBCHAPTER E. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
635	635	Sec. 3869.201. DIVISION OF DISTRICT; REQUIREMENTS. (a) At
636	636	any time before the district issues indebtedness secured by ad
637	637	valorem taxes, the district may be divided into two or more new
638	638	districts.
639	639	(b) A new district created by division of the district must
640	640	be at least 10 acres.
641	641	(c) Any new district created by the division of the district
642	642	may not, at the time the new district is created, contain any land
643	643	outside the area described by Section 2 of the Act enacting this
644	644	chapter.
645	645	(d) The board may consider a proposal to divide the district
646	646	on:
647	647	(1) a petition of a landowner in the district; or
648	648	(2) a motion by the board.
649	649	(e) The board may not divide the district unless the
650	650	division is approved by the governing body of the city by
651	651	resolution. The resolution may establish conditions for the
652	652	division under Subsection (f).
653	653	(f) If the board decides to divide the district, the board,
654	654	subject to the resolution adopted under Subsection (e), shall:
655	655	(1) provide the conditions of the division, including
656	656	names for the new districts and a plan for the payment or
657	657	performance of any outstanding district obligations; and
658	658	(2) prepare a metes and bounds description for each
659	659	proposed district.
660	660	Sec. 3869.202. ELECTION FOR DIVISION OF DISTRICT. (a)
661	661	After the board has complied with Section 3869.201, the board shall
662	662	hold an election in the district to determine whether the district
663	663	should be divided as proposed.
664	664	(b) The board shall give notice of the election not later
665	665	than the 35th day before the date of the election. The notice must
666	666	state:
667	667	(1) the date and location of the election; and
668	668	(2) the proposition to be voted on.
669	669	(c) If a majority of the votes cast are in favor of the
670	670	division:
671	671	(1) the district is divided; and
672	672	(2) not later than the 30th day after the date of the
673	673	election, the district shall provide written notice of the division
674	674	to the city.
675	675	(d) If a majority of the votes cast are not in favor of the
676	676	division, the district is not divided.
677	677	Sec. 3869.203. APPOINTMENT OF DIRECTORS OF NEW DISTRICTS.
678	678	(a) Not later than the 90th day after the date of an election in
679	679	favor of the division of the district:
680	680	(1) the board shall designate itself as the board of
681	681	one of the new districts; and
682	682	(2) the governing body of the city shall appoint five
683	683	directors having the qualifications established in Section
684	684	3869.053 for each of the other new districts.
685	685	(b) The directors serving under Subsection (a)(1) serve the
686	686	staggered terms for which they were elected in the original
687	687	district. Two directors appointed under Subsection (a)(2) serve
688	688	for two years and three directors serve for four years and until the
689	689	appointment of succeeding directors under Subsection (c).
690	690	(c) Succeeding directors of all districts shall be
691	691	appointed by the governing body of the city according to the
692	692	procedures set forth in Section 3869.052.
693	693	Sec. 3869.204. CONTINUING POWERS AND OBLIGATIONS OF NEW
694	694	DISTRICTS. (a) Each new district may incur and pay debts and has
695	695	all powers of the original district created by this chapter.
696	696	(b) Each new district has the same limitations or other
697	697	provisions concerning the city that apply to the original district.
698	698	(c) If the district is divided as provided by this
699	699	subchapter, the current obligations and any bond authorizations of
700	700	the district are not impaired. District debts shall be paid by
701	701	revenue or by taxes or assessments imposed on real property in the
702	702	district as if the district had not been divided or by contributions
703	703	from each new district as stated in the conditions established by
704	704	the board under Section 3869.201(f).
705	705	(d) Any other district obligation is divided pro rata among
706	706	the new districts on an acreage basis or on other terms that are
707	707	satisfactory to the new districts.
708	708	Sec. 3869.205. CONTRACT AUTHORITY OF NEW DISTRICTS. The
709	709	new districts may contract with each other for any matter the boards
710	710	of the districts consider appropriate.
711	711	[Sections 3869.206-3869.250 reserved for expansion]
712	712	SUBCHAPTER F. DISSOLUTION
713	713	Sec. 3869.251. DISSOLUTION BY ORDINANCE. (a) The city by
714	714	ordinance may dissolve the district on its own volition or at the
715	715	request of the board.
716	716	(b) The city may not dissolve a district until that
717	717	district's outstanding indebtedness or contractual obligations
718	718	that are payable from ad valorem taxes have been repaid or
719	719	discharged.
720	720	(c) The city may not dissolve a district until the agreement
721	721	under Section 3869.160 has been executed and the district's
722	722	performance under the agreement has been fulfilled, including any
723	723	right or obligation the district has to reimburse a developer or
724	724	owner for the costs of improvement projects.
725	725	Sec. 3869.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
726	726	(a) If the dissolved district has bonds or other obligations
727	727	outstanding secured by and payable from assessments or other
728	728	revenue, other than ad valorem taxes, the city shall succeed to the
729	729	rights and obligations of the district regarding enforcement and
730	730	collection of the assessments or other revenue.
731	731	(b) The city has and shall exercise all district powers to
732	732	enforce and collect the assessments or other revenue to pay:
733	733	(1) the bonds or other obligations when due and
734	734	payable according to their terms; or
735	735	(2) special revenue or assessment bonds or other
736	736	obligations issued by the city to refund the outstanding bonds or
737	737	obligations.
738	738	Sec. 3869.253. ASSUMPTION OF ASSETS AND LIABILITIES. After
739	739	the city dissolves the district, the city assumes, subject to the
740	740	appropriation and availability of funds, the obligations of the
741	741	district, including any bonds or other revenue.
742	742	SECTION 2. The district shall include the 45.856 acre tract
743	743	of land out of Blocks 1 and 2, Padre Island - Corpus Christi Section
744	744	18, a map of which is recorded in Volume 38, Pages 69 and 70, Map
745	745	Records of Nueces County, Texas; said 45.586 acre tract being more
746	746	fully described by metes and bounds as follows:
747	747	Beginning at a corner of Padre Island Nueces County Park No.
748	748	2, for the northwest corner of Lot I, Block 4, Padre Island Section
749	749	18, a map of which is recorded in Volume 57, Page 105, Map Records of
750	750	Nueces County, Texas, same being the southeast corner of this
751	751	tract, from which corner the north boundary of South Padre Island
752	752	Drive, a public roadway, for the southwest corner of said Lot 1
753	753	bears South 3912'40" West 399.98 feet;
754	754	Thence, along the south boundary of this tract as follows:
755	755	North 3912'40" East 50.62 feet;
756	756	North 5901'18" West 58.15 feet;
757	757	North 2449'46" West, 65.47 feet;
758	758	North 3928'15" West, 52.76 feet;
759	759	North 8220'42" West, 55.35 feet;
760	760	North 6756'24" West, 39.39 feet;
761	761	North 3145'02" West, 111.21 feet;
762	762	South 8302'11" West, 42.36 feet;
763	763	North 6908'53" West, 50.34 feet;
764	764	North 3259'21" East, 44.81 feet;
765	765	North 3417' 14" East, 32.65 feet;
766	766	South 8137'02" West, 33.57 feet;
767	767	South 3822'00" West, 35.15 feet;
768	768	North 8142'50" West, 20.77 feet;
769	769	South 5530'57" West, 90.72 feet;
770	770	South 8748'14" West, 33.48 feet;
771	771	South 13'11"52" West, 24.55 feet;
772	772	North 5956'59" West, 8.13 feet;
773	773	North 0041'45" East, 40.61 feet;
774	774	North 0144'23" West, 145.17 feet;
775	775	North 1201'38" West, 16.72 feet;
776	776	South 8632'51" West, 156.63 feet;
777	777	South 0546'00" East, 11.04 feet;
778	778	South 2236'18" West, 94.42 feet;
779	779	South 3235'45" West, 119.26 feet;
780	780	South 6102'05" West, 62.66 feet;
781	781	South 1612'44" West, 22.95 feet;
782	782	South 2834'51" West, 30.73 feet;
783	783	South 4406'14" West, 22.87 feet;
784	784	North 7302'08" West, 9.22 feet;
785	785	North 0410'31" West, 24.32 feet;
786	786	North 2714'31" East, 21.05 feet;
787	787	North 2253'30" East, 7.43 feet;
788	788	North 8859'13" West, 51.70 feet;
789	789	North 7932'56" West, 88.00 feet;
790	790	North 5819'46" West, 75.33 feet;
791	791	North 7116' 35" West, 43.42 feet for the southwest corner of
792	792	this tract;
793	793	Thence, along the west boundary of this tract, same being the
794	794	southerly shoreline of Packery channel as accepted by Texas General
795	795	Land Office per letter dated April 30, 1998, as follows:
796	796	North 5513'55" East, 28.37 feet;
797	797	South 6551'29" East, 41.25 feet;
798	798	South 6419'51" East, 64.68 feet;
799	799	North 5513'55" East, 340.15 feet;
800	800	North 3153' 53" East, 30.54 feet;
801	801	North 4456'59" East, 29.80 feet;
802	802	North 5127'13" East, 36.11 feet;
803	803	North 6550'19" East, 55.92 feet;
804	804	North 5535'00" East, 42.51 feet;
805	805	North 3331'45" East, 51.92 feet;
806	806	North 3831'45" East, 17.85 feet;
807	807	North 2025'53" East, 102.95 feet;
808	808	North 8159'03" East, 65.59 feet;
809	809	North 7234'53" East, 67.69 feet;
810	810	North 7149'28" East, 59.60 feet;
811	811	North 0151'03" East, 48.09 feet;
812	812	North 1745'00" East, 64.91 feet;
813	813	North 7804'21" West, 66.41 feet;
814	814	South 8715'19" West, 100.76 feet;
815	815	South 4935'03" West, 65.86 feet;
816	816	South 4910'34" West, 38.32 feet;
817	817	North 0043'54" East, 49.68 feet;
818	818	North 3724'35" East, 144.97 feet;
819	819	North 3746'47" East, 112.88 feet;
820	820	North 2005'37" East, 76.29 feet;
821	821	North 3242'34" East, 310.32 feet;
822	822	North 4030'15" East, 113.40 feet;
823	823	North 44~0'29" East, 95.30 feet for the northwest corner of
824	824	this tract;
825	825	Thence, along the north boundary of this tract as follows:
826	826	North 7259'05" East, 96.30 feet;
827	827	South 8810'08" East, 103.26 feet;
828	828	North 8903'23" East, 166.00 feet;
829	829	South 8418'24" East, 125.72 feet;
830	830	South 6940'03" East, 110.24 feet;
831	831	South 7156'18" East, 51.70 feet;
832	832	South 5305'14" East, 121.61 feet;
833	833	South 2754'36" East, 77.28 feet;
834	834	South 6035'14" East, 107.60 feet;
835	835	South 4953'53" East, 57.14 feet;
836	836	South 3733'52" East, 126.22 feet;
837	837	South 3753'45" East, 108.63 feet;
838	838	South 2007'15" East, 69.56 feet;
839	839	North 8007'23" East, 38.18 feet;
840	840	South 5527'21" East, 94.45 feet;
841	841	South 5143'16" East, 112.40 feet;
842	842	South 0900'57" West, 65.74 feet;
843	843	South 3739'14" East, 146.26 feet;
844	844	South 4543'19" East, 131.51 feet;
845	845	South 4140'27" East, 76.82 feet for the northeast corner of
846	846	this tract;
847	847	Thence, South 6811' 13" West, along the east boundary of said
848	848	Block 2 and of this tract, same being the west boundary of said
849	849	Padre Island Nueces County Park No. 2, a distance of 1592.69 feet to
850	850	the Point of Beginning and containing 45.856 acres of land
851	851	SECTION 3. (a) The legal notice of the intention to
852	852	introduce this Act, setting forth the general substance of this
853	853	Act, has been published as provided by law, and the notice and a
854	854	copy of this Act have been furnished to all persons, agencies,
855	855	officials, or entities to which they are required to be furnished
856	856	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
857	857	Government Code.
858	858	(b) The governor, one of the required recipients, has
859	859	submitted the notice and Act to the Texas Commission on
860	860	Environmental Quality.
861	861	(c) The Texas Commission on Environmental Quality has filed
862	862	its recommendations relating to this Act with the governor, the
863	863	lieutenant governor, and the speaker of the house of
864	864	representatives within the required time.
865	865	(d) All requirements of the constitution and laws of this
866	866	state and the rules and procedures of the legislature with respect
867	867	to the notice, introduction, and passage of this Act are fulfilled
868	868	and accomplished.
869	869	SECTION 4. This Act takes effect immediately if it receives
870	870	a vote of two-thirds of all the members elected to each house, as
871	871	provided by Section 39, Article III, Texas Constitution. If this
872	872	Act does not receive the vote necessary for immediate effect, this
873	873	Act takes effect September 1, 2009.