Texas 2009 - 81st Regular

Texas Senate Bill SB2550 Compare Versions

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1	1	S.B. No. 2550
2	2
3	3
4	4	AN ACT
5	5	relating to the creation of the Padre Island Gateway Municipal
6	6	Management District; providing authority to impose a tax and issue
7	7	bonds.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle C, Title 4, Special District Local Laws
10	10	Code, is amended by adding Chapter 3869 to read as follows:
11	11	CHAPTER 3869. PADRE ISLAND GATEWAY MUNICIPAL MANAGEMENT DISTRICT
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 3869.001. DEFINITIONS. In this chapter:
14	14	(1) "Board" means the district's board of directors.
15	15	(2) "City" means the City of Corpus Christi.
16	16	(3) "District" means the Padre Island Gateway
17	17	Municipal Management District.
18	18	(4) "Improvement project" means any program or project
19	19	authorized by Sections 3869.102 and 3869.160 inside or outside the
20	20	district.
21	21	Sec. 3869.002. NATURE OF DISTRICT. The district is a
22	22	special district created under Section 59, Article XVI, Texas
23	23	Constitution.
24	24	Sec. 3869.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The
25	25	creation of the district is essential to accomplish the purposes of
26	26	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
27	27	Texas Constitution, and other public purposes stated in this
28	28	chapter. By creating the district and in authorizing the city and
29	29	other political subdivisions to contract with the district, the
30	30	legislature has established a program to accomplish the public
31	31	purposes set out in Section 52-a, Article III, Texas Constitution.
32	32	(b) The creation of the district is necessary to promote,
33	33	develop, and protect the environment and the other natural
34	34	resources of this state, and to encourage and maintain employment,
35	35	commerce, transportation, housing, tourism, recreation, the arts,
36	36	entertainment, economic development, safety, and the public
37	37	welfare in the district.
38	38	(c) The district is created to supplement and not to
39	39	supplant services provided by the city in the district. This
40	40	chapter and the creation of the district may not be interpreted to
41	41	relieve the city from providing the level of services provided as of
42	42	the effective date of the Act creating this chapter to the area in
43	43	the district.
44	44	Sec. 3869.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
45	45	(a) The district is created to serve a public use and benefit.
46	46	(b) All land and other property included in the district
47	47	will benefit from the improvements and services to be provided by
48	48	the district under powers conferred by Sections 52 and 52-a,
49	49	Article III, and Section 59, Article XVI, Texas Constitution, and
50	50	other powers granted under this chapter.
51	51	(c) The creation of the district is in the public interest
52	52	and is essential to further the public purposes of:
53	53	(1) developing and diversifying the economy of this
54	54	state;
55	55	(2) eliminating unemployment and underemployment;
56	56	(3) providing quality residential housing;
57	57	(4) developing or expanding transportation and
58	58	commerce; and
59	59	(5) improving and enhancing the environment in and
60	60	around the district and in the city.
61	61	(d) The district will:
62	62	(1) promote the health, safety, and general welfare of
63	63	residents, employers, potential employees, employees, visitors,
64	64	and consumers in the district, and of the public;
65	65	(2) provide needed funding for the district to
66	66	preserve, maintain, and enhance the economic health and vitality of
67	67	the district territory as a residential community and business
68	68	center;
69	69	(3) promote the health, safety, welfare, and enjoyment
70	70	of the public by providing pedestrian ways throughout the district,
71	71	including beaches; and
72	72	(4) landscape and develop areas in the district that
73	73	are necessary for the restoration, preservation, and enhancement of
74	74	scenic beauty and enhancing and improving the environment as an
75	75	essential natural resource of this state.
76	76	(e) Pedestrian ways along or across a street or a beach,
77	77	whether at grade or above or below the surface, and street lighting,
78	78	street landscaping, vehicle parking, and street art objects are
79	79	parts of and necessary components of a street and a beach and are
80	80	considered to be an improvement project that includes a street,
81	81	road, or beach improvement.
82	82	(f) The district will not act as the agent or
83	83	instrumentality of any private interest even though the district
84	84	will benefit many private interests as well as the public.
85	85	Sec. 3869.005. DISTRICT TERRITORY. (a) The district is
86	86	composed of the territory described by Section 2 of the Act creating
87	87	this chapter, as that territory may have been modified under
88	88	Section 3869.107 or other law.
89	89	(b) A mistake in the field notes of the district contained
90	90	in Section 2 of the Act creating this chapter or in copying the
91	91	field notes in the legislative process does not in any way affect:
92	92	(1) the district's organization, existence, or
93	93	validity;
94	94	(2) the district's right to contract, including the
95	95	right to issue any type of bond or other obligation for a purpose
96	96	for which the district is created;
97	97	(3) the district's right to impose or collect an
98	98	assessment, tax, or any other revenue; or
99	99	(4) the legality or operation of the board.
100	100	Sec. 3869.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
101	101	(a) All or any part of the area of the district is eligible to be
102	102	included in:
103	103	(1) a tax increment reinvestment zone created by the
104	104	city under Chapter 311, Tax Code;
105	105	(2) a tax abatement reinvestment zone created by the
106	106	city under Chapter 312, Tax Code; or
107	107	(3) an enterprise zone created by the city under
108	108	Chapter 2303, Government Code.
109	109	(b) If the city creates a tax increment reinvestment zone
110	110	described by Subsection (a), the district may accept and use money
111	111	deposited in the tax increment fund, in accordance with a contract
112	112	between the city and the district, for a purpose Section
113	113	380.002(b), Local Government Code, authorizes for a corporation.
114	114	The district may pledge the money granted as security for bonds
115	115	issued by the district for an improvement project.
116	116	Sec. 3869.007. CONSTRUCTION OF "AD VALOREM TAX." In this
117	117	chapter, a reference in law to an ad valorem tax refers to an ad
118	118	valorem tax imposed by the district and not an ad valorem tax
119	119	imposed by the city.
120	120	Sec. 3869.008. LIABILITY RESULTING FROM DISTRICT ACTION.
121	121	An action of the district or the board does not create a liability
122	122	against the city or any other political subdivision.
123	123	[Sections 3869.009-3869.050 reserved for expansion]
124	124	SUBCHAPTER B. BOARD OF DIRECTORS
125	125	Sec. 3869.051. GOVERNING BODY; TERMS. The district is
126	126	governed by a board of five voting directors appointed under
127	127	Section 3869.052 and three nonvoting directors serving ex officio
128	128	as provided by Section 3869.054. The five voting directors serve
129	129	staggered terms of four years.
130	130	Sec. 3869.052. APPOINTED DIRECTORS. The governing body of
131	131	the city shall appoint the voting directors and shall appoint a
132	132	director to fill each vacancy that occurs on the board, with the
133	133	appointee to serve for the unexpired term of the former director.
134	134	Sec. 3869.053. ELIGIBILITY OF APPOINTED DIRECTORS. (a) To
135	135	be qualified to serve as a voting director appointed under Section
136	136	3869.052, a person must be at least 18 years old and:
137	137	(1) a resident of the district who is also a registered
138	138	voter of the district;
139	139	(2) an owner of property in the district;
140	140	(3) an owner of stock, whether beneficial or
141	141	otherwise, of a corporate owner of property in the district;
142	142	(4) an owner of a beneficial interest in a trust that
143	143	owns property in the district; or
144	144	(5) an agent, employee, or tenant of a person
145	145	described by Subdivision (2), (3), or (4).
146	146	(b) Section 49.052, Water Code, does not apply to the
147	147	district.
148	148	Sec. 3869.054. EX OFFICIO DIRECTORS. (a) The following
149	149	persons serve ex officio as nonvoting directors:
150	150	(1) an assistant city manager of the city appointed by
151	151	the city manager of the city;
152	152	(2) the chief financial officer of the city; and
153	153	(3) the economic development director of the city.
154	154	(b) If an office described in Subsection (a) is renamed,
155	155	changed, or abolished, the governing body of the city may appoint
156	156	another officer or employee of the city who performs duties
157	157	comparable to those performed by the officer described by
158	158	Subsection (a).
159	159	Sec. 3869.055. FILING OATH OR AFFIRMATION. An initial and
160	160	an appointed director's oath or affirmation of office shall be
161	161	filed with the district and the district shall retain the oath or
162	162	affirmation in the district records.
163	163	Sec. 3869.056. OFFICERS. The board shall elect from among
164	164	the initial and appointed directors a presiding officer, an
165	165	assistant presiding officer, and a secretary.
166	166	Sec. 3869.057. COMPENSATION; EXPENSES; LIABILITY INSURANCE
167	167	FOR DIRECTORS. (a) The district may compensate each initial and
168	168	each appointed voting director in an amount not to exceed $50 for
169	169	each board meeting. The total amount of compensation per appointed
170	170	director per year may not exceed $2,000. The district may not
171	171	compensate a director serving ex officio.
172	172	(b) An initial or appointed voting director is entitled to
173	173	reimbursement for necessary and reasonable expenses incurred in
174	174	carrying out the duties and responsibilities of a director. A
175	175	director serving ex officio is not entitled to reimbursement.
176	176	(c) The district may obtain and pay for comprehensive
177	177	general liability insurance coverage from commercial insurance
178	178	companies or other sources that protect and insure the directors
179	179	against personal liability and from any and all claims for actions
180	180	taken as directors or actions and activities taken by the district
181	181	or by others acting on its behalf.
182	182	Sec. 3869.058. CONFLICTS OF INTEREST. (a) An initial or
183	183	appointed director may participate in a board discussion or vote
184	184	only if the director complies with Subsection (b).
185	185	(b) A director who has a substantial interest in a business
186	186	or charitable entity that will receive a pecuniary benefit from a
187	187	board action shall file an affidavit with the board secretary
188	188	declaring the interest. Another affidavit is not required if the
189	189	director's interest changes.
190	190	(c) After the affidavit is filed, the director may
191	191	participate in a discussion or vote if:
192	192	(1) a majority of the appointed directors have a
193	193	similar interest in the same entity;
194	194	(2) all other similar businesses or charitable
195	195	entities in the district will receive a similar pecuniary benefit;
196	196	or
197	197	(3) the appointed director is a property owner in the
198	198	district.
199	199	(d) Section 171.004, Local Government Code, does not apply
200	200	to the district.
201	201	Sec. 3869.059. INITIAL DIRECTORS. (a) The initial board
202	202	consists of the three ex officio directors described by Section
203	203	3869.054 and the following five voting directors:
204	204	Place No. Name of Initial Director
205	205	Place 1 Stacy Costello
206	206	Place 2 Toni Duclottni
207	207	Place 3 Mark Patterson
208	208	Place 4 Kevin Mutschler
209	209	Place 5 Ronald Batts
210	210	(b) The terms of the initial directors of Places 1 and 2
211	211	expire on July 1, 2011, and the terms of the initial directors of
212	212	Places 3, 4, and 5 expire on July 1, 2013.
213	213	(c) Subsequent voting directors are appointed for four-year
214	214	terms by the governing body of the city under Section 3869.052.
215	215	(d) This section expires September 1, 2013.
216	216	[Sections 3869.060-3869.100 reserved for expansion]
217	217	SUBCHAPTER C. POWERS AND DUTIES
218	218	Sec. 3869.101. GENERAL POWERS AND DUTIES. The district has
219	219	the duties imposed and the powers granted by this chapter and the
220	220	powers provided by:
221	221	(1) the general laws relating to conservation and
222	222	reclamation districts created under Section 59, Article XVI, Texas
223	223	Constitution, including Chapters 49 and 54, Water Code;
224	224	(2) the general laws relating to road districts and
225	225	road utility districts created under Section 52, Article III, Texas
226	226	Constitution;
227	227	(3) Subchapter A, Chapter 372, Local Government Code,
228	228	to a municipality or county;
229	229	(4) Chapter 375, Local Government Code;
230	230	(5) Chapter 505, Local Government Code, to a
231	231	corporation created under that chapter; and
232	232	(6) Chapter 1371, Government Code, to an issuer, as
233	233	defined by that chapter.
234	234	Sec. 3869.102. IMPROVEMENT PROJECTS. (a) To the extent
235	235	authorized by a project development agreement entered into under
236	236	Section 3869.160, the district may provide, or enter into contracts
237	237	with a governmental or private entity to provide, the following
238	238	types of improvement projects or activities in support of or
239	239	incidental to those projects:
240	240	(1) a supply and distribution facility or system to
241	241	provide potable and nonpotable water to the residents and
242	242	businesses of the district, including a wastewater collection
243	243	facility;
244	244	(2) a paved, macadamized, or graveled road or street,
245	245	inside and outside the district, to the full extent authorized by
246	246	Section 52, Article III, Texas Constitution;
247	247	(3) the planning, design, construction, improvement,
248	248	and maintenance of:
249	249	(A) landscaping;
250	250	(B) highway right-of-way or transit corridor
251	251	beautification and improvement;
252	252	(C) lighting, banners, and signs;
253	253	(D) a street or sidewalk;
254	254	(E) a hiking and cycling path or trail;
255	255	(F) a pedestrian walkway, skywalk, crosswalk, or
256	256	tunnel;
257	257	(G) a beach, park, lake, garden, recreational
258	258	facility, community activities center, dock, wharf, sports
259	259	facility, open space, scenic area, or related exhibit or preserve;
260	260	(H) a fountain, plaza, or pedestrian mall; or
261	261	(I) a drainage or storm water detention
262	262	improvement;
263	263	(4) protection and improvement of the quality of storm
264	264	water that flows through the district;
265	265	(5) the planning, design, construction, improvement,
266	266	maintenance, and operation of an off-street parking facility or
267	267	heliport;
268	268	(6) the planning, design, construction, improvement,
269	269	maintenance, and operation of a water or sewer facility;
270	270	(7) the planning and acquisition of:
271	271	(A) public art and sculpture and related exhibits
272	272	and facilities; or
273	273	(B) an educational facility and a cultural
274	274	exhibit or facility;
275	275	(8) the planning, design, construction, acquisition,
276	276	lease, rental, improvement, maintenance, installation, and
277	277	management of and provision of furnishings for a facility for:
278	278	(A) a conference, convention, or exhibition;
279	279	(B) a manufacturer, consumer, or trade show;
280	280	(C) a civic, community, or institutional event;
281	281	or
282	282	(D) an exhibit, display, attraction, special
283	283	event, or seasonal or cultural celebration or holiday;
284	284	(9) the removal, razing, demolition, or clearing of
285	285	land or improvements in connection with an improvement project;
286	286	(10) the acquisition and improvement of land or other
287	287	property for the mitigation of the environmental effects of an
288	288	improvement project;
289	289	(11) the acquisition of property or an interest in
290	290	property in connection with an authorized improvement project,
291	291	including any project authorized by Subchapter A, Chapter 372,
292	292	Local Government Code;
293	293	(12) a special or supplemental service for the
294	294	improvement and promotion of the district or an area adjacent to the
295	295	district or for the protection of public health and safety or the
296	296	environment in or adjacent to the district, including:
297	297	(A) advertising;
298	298	(B) promotion;
299	299	(C) tourism;
300	300	(D) health and sanitation;
301	301	(E) public safety;
302	302	(F) security;
303	303	(G) fire protection or emergency medical
304	304	services;
305	305	(H) business recruitment;
306	306	(I) development;
307	307	(J) the reduction of automobile traffic volume
308	308	and congestion, including the provision, construction, and
309	309	operation of light rail or streetcar systems and services; and
310	310	(K) recreational, educational, or cultural
311	311	improvements, enhancements, and services; or
312	312	(13) any similar public improvement, facility, or
313	313	service.
314	314	(b) The district may not undertake a project under this
315	315	section unless:
316	316	(1) the board determines the project to be necessary
317	317	to accomplish a public purpose of the district; and
318	318	(2) the project is authorized by a project development
319	319	agreement entered into under Section 3869.160.
320	320	(c) An improvement project must comply with any applicable
321	321	codes and ordinances of the city.
322	322	(d) The district may not provide, conduct, or authorize any
323	323	improvement project on streets, highways, rights-of-way, or
324	324	easements of the city without the consent of the governing body of
325	325	the city.
326	326	(e) The district shall transfer to the city title to all or
327	327	any portion of an improvement project as provided by a project
328	328	development agreement entered into under Section 3869.160.
329	329	(f) If authorized by the city, the district may own,
330	330	encumber, maintain, and operate an improvement project, subject to
331	331	the right of the city to order a conveyance of the project to the
332	332	city on a date determined by the city.
333	333	(g) The district shall immediately comply with an
334	334	ordinance, order, or resolution the city adopts to require the
335	335	district to transfer title to an improvement project to the city.
336	336	(h) For the purposes of this section, planning, design,
337	337	construction, improvement, and maintenance of a body of water
338	338	includes work done for drainage, reclamation, or recreation.
339	339	Sec. 3869.103. GENERAL POWERS REGARDING CONTRACTS.
340	340	(a) The district may:
341	341	(1) contract with any person to accomplish any
342	342	district purpose included in a project development agreement
343	343	entered into under Section 3869.160, including a contract for:
344	344	(A) the payment, repayment, or reimbursement of
345	345	costs incurred by that person on behalf of the district, including
346	346	all or part of the costs of an improvement project and interest on
347	347	the reimbursed cost; or
348	348	(B) the use, occupancy, lease, rental,
349	349	operation, maintenance, or management of all or part of a proposed
350	350	or existing improvement project; and
351	351	(2) apply for and contract with any person to receive,
352	352	administer, and perform a duty or obligation of the district under a
353	353	federal, state, local, or private gift, grant, loan, conveyance,
354	354	transfer, bequest, or other financial assistance arrangement
355	355	relating to the investigation, planning, analysis, study, design,
356	356	acquisition, construction, improvement, completion,
357	357	implementation, or operation by the district or others of a
358	358	proposed or existing improvement project.
359	359	(b) A contract the district enters into to carry out a
360	360	purpose of this chapter may be on any terms and for any period the
361	361	board determines, including a negotiable or nonnegotiable note or
362	362	warrant payable to the city, Nueces County, or any other person.
363	363	(c) Any person, including the city, may contract with the
364	364	district to carry out the purposes of this chapter without further
365	365	statutory or other authorization.
366	366	Sec. 3869.104. RULES; ENFORCEMENT. (a) The district may
367	367	adopt rules:
368	368	(1) to administer or operate the district;
369	369	(2) for the use, enjoyment, availability, protection,
370	370	security, and maintenance of the district's property and
371	371	facilities; or
372	372	(3) to provide for public safety and security in the
373	373	district, including the regulation or prohibition of automobiles
374	374	and other motor vehicles from using, entering, or traveling in
375	375	certain limited access areas in the district, except for safety and
376	376	emergency purposes.
377	377	(b) The district may enforce its rules by injunctive relief.
378	378	(c) To the extent a district rule conflicts with a rule,
379	379	order, ordinance, or regulation of the city, the rule, order,
380	380	ordinance, or regulation controls.
381	381	Sec. 3869.105. NAME CHANGE. The board by resolution may
382	382	change the district's name. The board shall give written notice of
383	383	the change to the city.
384	384	Sec. 3869.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF
385	385	DISTRICT. (a) The board by rule may regulate the private use of a
386	386	public roadway, open space, park, sidewalk, or similar public area
387	387	in the district. To the extent the district rules conflict with a
388	388	rule, order, ordinance, or regulation of the city, the rule, order,
389	389	ordinance, or regulation of the city controls. A rule may provide
390	390	for the safe and orderly use of public roadways, open spaces, parks,
391	391	sidewalks, and similar public areas or facilities.
392	392	(b) In addition to any permit required by the city, the
393	393	board may require a permit for a parade, demonstration,
394	394	celebration, entertainment event, or similar nongovernmental
395	395	activity in or on a public roadway, open space, park, sidewalk,
396	396	beach, or similar public area or facility owned by the district.
397	397	The board may charge a fee for the permit application or for public
398	398	safety or security services for those facilities in an amount the
399	399	board considers necessary.
400	400	(c) In addition to any permit required by the city, the
401	401	board may require a permit or franchise agreement with a vendor,
402	402	concessionaire, exhibitor, or similar private or commercial person
403	403	or organization for the limited use of the area or facility owned by
404	404	the district on terms and on payment of a permit or franchise fee
405	405	the board may impose.
406	406	Sec. 3869.107. ADDING OR REMOVING TERRITORY. As provided
407	407	by Subchapter J, Chapter 49, Water Code, the board may add territory
408	408	to the district, subject to Section 54.016, Water Code, or remove
409	409	territory from the district, except that:
410	410	(1) the addition or removal of the territory must be:
411	411	(A) included in an amended project development
412	412	agreement entered into under Section 3869.160;
413	413	(B) approved by the governing body of the city;
414	414	and
415	415	(C) approved by the owners of the territory being
416	416	added or removed;
417	417	(2) a reference to a tax in Subchapter J, Chapter 49,
418	418	or Section 54.016, Water Code, means an ad valorem tax; and
419	419	(3) territory may not be removed from the district if
420	420	bonds or other obligations of the district payable wholly or partly
421	421	from ad valorem taxes or assessments levied or assessed on the
422	422	territory are outstanding.
423	423	Sec. 3869.108. ECONOMIC DEVELOPMENT. (a) The district may
424	424	create an economic development program authorized by Section 52-a,
425	425	Article III, Texas Constitution, and may impose an ad valorem tax in
426	426	support of the program if the tax is approved by the district's
427	427	voters.
428	428	(b) The district may exercise the economic development
429	429	powers that:
430	430	(1) Chapter 380, Local Government Code, provides to a
431	431	municipality with a population of more than 100,000; and
432	432	(2) Chapter 1509, Government Code, provides to a
433	433	municipality.
434	434	Sec. 3869.109. TERMS OF EMPLOYMENT; COMPENSATION. The
435	435	board may employ and establish the terms of employment and
436	436	compensation of an executive director or general manager and any
437	437	other district employees the board considers necessary.
438	438	Sec. 3869.110. NO EMINENT DOMAIN POWER. The district may
439	439	not exercise the power of eminent domain.
440	440	[Sections 3869.111-3869.150 reserved for expansion]
441	441	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
442	442	Sec. 3869.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.
443	443	Except as provided by Section 3869.160, and subject to a project
444	444	development agreement entered into under Section 3869.160, the
445	445	district may:
446	446	(1) impose an ad valorem tax on all taxable property in
447	447	the district, including industrial, commercial, and residential
448	448	property, to pay for an improvement project of a type authorized by
449	449	Section 52, Article III, or Section 59, Article XVI, Texas
450	450	Constitution, or to secure payment of bonds issued to pay for those
451	451	projects;
452	452	(2) impose an assessment on property in the district
453	453	to pay the cost of maintenance of any authorized district
454	454	improvement in the manner provided for:
455	455	(A) a district under Subchapters A, E, and F,
456	456	Chapter 375, Local Government Code; or
457	457	(B) a municipality or county under Subchapter A,
458	458	Chapter 372, Local Government Code;
459	459	(3) provide or secure the payment or repayment of any
460	460	bond, note, other temporary or permanent obligation,
461	461	reimbursement, or other contract with any person; or
462	462	(4) provide or secure the payment or repayment of the
463	463	costs and expenses of the establishment, administration, and
464	464	operation of the district and the district's costs or share of the
465	465	costs or revenue of an improvement project or district contractual
466	466	obligation or indebtedness by or through:
467	467	(A) the imposition of an ad valorem tax, or an
468	468	assessment, user fee, concession fee, or rental charge; or
469	469	(B) any other revenue or resources of the
470	470	district, or other revenues authorized by the city, including
471	471	revenues from a tax increment reinvestment zone created by the
472	472	city;
473	473	(5) establish user charges related to the operation of
474	474	storm water facilities, including the regulation of storm water for
475	475	the protection of water quality in the district;
476	476	(6) establish user charges for the use of nonpotable
477	477	water for irrigation purposes, subject to the approval of the
478	478	governing body of the city;
479	479	(7) undertake separately or jointly with other
480	480	persons, including the city or Nueces County, all or part of the
481	481	cost of an improvement project, including an improvement project:
482	482	(A) for improving, enhancing, and supporting
483	483	public safety and security, fire protection and emergency medical
484	484	services, and law enforcement in and adjacent to the district; or
485	485	(B) that confers a general benefit on the entire
486	486	district or a special benefit on a definable part of the district;
487	487	and
488	488	(8) enter into a tax abatement agreement in accordance
489	489	with the general laws of this state authorizing and applicable to
490	490	tax abatement agreements by municipalities.
491	491	Sec. 3869.152. BORROWING MONEY. The district may borrow
492	492	money for a district purpose included in a project development
493	493	agreement entered into under Section 3869.160 by issuing or
494	494	executing bonds, notes, credit agreements, or other obligations of
495	495	any kind found by the board to be necessary or appropriate for the
496	496	district purpose. The bond, note, credit agreement, or other
497	497	obligation must be secured by and payable from ad valorem taxes,
498	498	assessments, or any combination thereof or from other district
499	499	revenue.
500	500	Sec. 3869.153. IMPACT FEES AND ASSESSMENTS; EXEMPTION.
501	501	(a) The district may impose an impact fee or assessment included
502	502	in a project development agreement entered into under Section
503	503	3869.160 on property in the district, including an impact fee or
504	504	assessment on residential or commercial property, only in the
505	505	manner provided by Subchapter A, Chapter 372, or by Subchapter F,
506	506	Chapter 375, Local Government Code, for a municipality, county, or
507	507	district, according to the benefit received by the property.
508	508	(b) An impact fee for residential property must be for the
509	509	limited purpose of providing capital funding for:
510	510	(1) public water and wastewater facilities;
511	511	(2) drainage and storm water facilities; and
512	512	(3) streets and alleys.
513	513	(c) An assessment, a reassessment, or an assessment
514	514	resulting from an addition to or correction of the assessment roll
515	515	by the district, penalties and interest on an assessment or
516	516	reassessment, an expense of collection, and reasonable attorney's
517	517	fees incurred by the district are:
518	518	(1) a first and prior lien against the property
519	519	assessed; and
520	520	(2) superior to any other lien or claim other than a
521	521	lien or claim for county, school district, or municipal ad valorem
522	522	taxes.
523	523	(d) The lien of an assessment against property runs with the
524	524	land. That portion of an assessment payment obligation that has not
525	525	yet come due is not eliminated by the foreclosure of an ad valorem
526	526	tax lien, and any purchaser of property in a foreclosure of an ad
527	527	valorem tax lien takes the property subject to the assessment
528	528	payment obligations that have not yet come due and to the lien and
529	529	terms of payment under the assessment ordinance or order.
530	530	(e) The board may make a correction to or deletion from the
531	531	assessment roll that does not increase the amount of assessment of
532	532	any parcel of land without providing notice and holding a hearing in
533	533	the manner required for additional assessments.
534	534	(f) The district may not impose an impact fee on the
535	535	property, including equipment and facilities, of a public utility
536	536	provider in the district.
537	537	Sec. 3869.154. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT.
538	538	Section 375.161, Local Government Code, does not apply to the
539	539	district.
540	540	Sec. 3869.155. MAINTENANCE AND OPERATION TAX; ELECTION.
541	541	(a) To the extent authorized by a project development agreement
542	542	entered into under Section 3869.160, the district may impose a tax
543	543	for maintenance and operation purposes, including for:
544	544	(1) planning, constructing, acquiring, maintaining,
545	545	repairing, and operating all improvement projects, including land,
546	546	plants, works, facilities, improvements, appliances, and equipment
547	547	of the district; and
548	548	(2) paying costs of services, engineering and legal
549	549	fees, and organization and administrative expenses.
550	550	(b) The district may not impose a maintenance and operation
551	551	tax unless the maintenance and operation tax is approved by a
552	552	majority of the district voters voting at an election held for that
553	553	purpose. The proposition in a maintenance and operation tax
554	554	election may be for a specific maximum rate or for an unlimited
555	555	rate. If a maximum tax rate is approved, the board may impose the
556	556	tax at any rate that does not exceed the approved rate.
557	557	(c) A maintenance and operation tax election may be held at
558	558	the same time and in conjunction with any other district election.
559	559	The election may be called by a separate election order or as part
560	560	of any other election order.
561	561	Sec. 3869.156. USE OF SURPLUS MAINTENANCE AND OPERATION
562	562	MONEY. If the district has surplus maintenance and operation tax
563	563	money that is not needed for the purposes for which it was
564	564	collected, the money may be used for any authorized purpose.
565	565	Sec. 3869.157. BONDS AND OTHER OBLIGATIONS; MUNICIPAL
566	566	APPROVAL. (a) Except as provided by Sections 3869.159 and
567	567	3869.160, the district may issue by competitive bid or negotiated
568	568	sale bonds, notes, or other obligations payable wholly or partly
569	569	from ad valorem taxes, or by assessments in the manner provided by
570	570	Subchapter A, Chapter 372, or by Subchapter J, Chapter 375, Local
571	571	Government Code.
572	572	(b) In exercising the district's borrowing power, the
573	573	district may issue a bond or other obligation in the form of a bond,
574	574	note, certificate of participation or other instrument evidencing a
575	575	proportionate interest in payments to be made by the district, or
576	576	any other type of obligation.
577	577	(c) In addition to the sources of money described by
578	578	Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
579	579	Government Code, district bonds may be secured and made payable,
580	580	wholly or partly, by a pledge of any part of the money the district
581	581	receives from system or improvement revenues or from any other
582	582	source, to the extent authorized by a project development agreement
583	583	entered into under Section 3869.160.
584	584	Sec. 3869.158. BOND MATURITY. Bonds may mature not more
585	585	than 40 years from their date of issue.
586	586	Sec. 3869.159. TAXES FOR BONDS AND OTHER OBLIGATIONS.
587	587	(a) At the time bonds or other obligations payable wholly or
588	588	partly from ad valorem taxes are issued:
589	589	(1) the board shall impose a continuing direct annual
590	590	ad valorem tax, without limit as to rate or amount, for each year
591	591	that all or part of the bonds are outstanding; and
592	592	(2) the district annually shall impose an ad valorem
593	593	tax on all taxable property in the district in an amount sufficient
594	594	to:
595	595	(A) pay the interest on the bonds or other
596	596	obligations as the interest becomes due;
597	597	(B) create a sinking fund for the payment of the
598	598	principal of the bonds or other obligations when due or the
599	599	redemption price at any earlier required redemption date; and
600	600	(C) pay the expenses of imposing the taxes.
601	601	(b) Bonds or other obligations that are secured by and
602	602	payable from ad valorem taxes may not be issued unless the bonds and
603	603	the imposition of the taxes are approved by a majority of the
604	604	district voters voting at an election held for that purpose.
605	605	(c) The district shall hold an election required by this
606	606	section in the manner provided by Chapter 54, Water Code.
607	607	Sec. 3869.160. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
608	608	UNDERTAKE PROJECTS, IMPOSE TAXES, OR BORROW MONEY, INCLUDING BONDS.
609	609	(a) Before the district may undertake projects, issue bonds,
610	610	impose taxes, or borrow money, the district and the city must
611	611	negotiate and execute a mutually approved and accepted project
612	612	development agreement regarding the development plans and rules
613	613	for:
614	614	(1) the development and operation of the district; and
615	615	(2) the financing of improvement projects.
616	616	(b) The agreement must:
617	617	(1) describe each project the district intends to
618	618	undertake;
619	619	(2) include a financing plan specifying how each
620	620	project will be financed; and
621	621	(3) provide a procedure and rules for amending the
622	622	agreement.
623	623	[Sections 3869.161-3869.200 reserved for expansion]
624	624	SUBCHAPTER E. DISSOLUTION
625	625	Sec. 3869.201. DISSOLUTION BY ORDINANCE. (a) The city by
626	626	ordinance may dissolve the district on its own volition or at the
627	627	request of the board.
628	628	(b) The city may not dissolve a district until that
629	629	district's outstanding indebtedness or contractual obligations
630	630	that are payable from ad valorem taxes have been repaid or
631	631	discharged.
632	632	(c) The city may not dissolve a district until the agreement
633	633	under Section 3869.160 has been executed and the district's
634	634	performance under the agreement has been fulfilled, including any
635	635	right or obligation the district has to reimburse a developer or
636	636	owner for the costs of improvement projects.
637	637	Sec. 3869.202. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
638	638	(a) If the dissolved district has bonds or other obligations
639	639	outstanding secured by and payable from assessments or other
640	640	revenue, other than ad valorem taxes, the city shall succeed to the
641	641	rights and obligations of the district regarding enforcement and
642	642	collection of the assessments or other revenue.
643	643	(b) The city has and shall exercise all district powers to
644	644	enforce and collect the assessments or other revenue to pay:
645	645	(1) the bonds or other obligations when due and
646	646	payable according to their terms; or
647	647	(2) special revenue or assessment bonds or other
648	648	obligations issued by the city to refund the outstanding bonds or
649	649	obligations.
650	650	Sec. 3869.203. ASSUMPTION OF ASSETS AND LIABILITIES. After
651	651	the city dissolves the district, the city assumes, subject to the
652	652	appropriation and availability of funds, the obligations of the
653	653	district, including any bonds or other revenue.
654	654	SECTION 2. The Padre Island Gateway Municipal Management
655	655	District shall include the 45.856 acre tract of land out of Blocks 1
656	656	and 2, Padre Island - Corpus Christi Section 18, a map of which is
657	657	recorded in Volume 38, Pages 69 and 70, Map Records of Nueces
658	658	County, Texas; said 45.586 acre tract being more fully described by
659	659	metes and bounds as follows:
660	660	Beginning at a corner of Padre Island Nueces County Park No.
661	661	2, for the northwest corner of Lot I, Block 4, Padre Island Section
662	662	18, a map of which is recorded in Volume 57, Page 105, Map Records of
663	663	Nueces County, Texas, same being the southeast corner of this
664	664	tract, from which corner the north boundary of South Padre Island
665	665	Drive, a public roadway, for the southwest corner of said Lot 1
666	666	bears South 3912'40" West 399.98 feet;
667	667	Thence, along the south boundary of this tract as follows:
668	668	North 3912'40" East 50.62 feet;
669	669	North 5901'18" West 58.15 feet;
670	670	North 2449'46" West, 65.47 feet;
671	671	North 3928'15" West, 52.76 feet;
672	672	North 8220'42" West, 55.35 feet;
673	673	North 6756'24" West, 39.39 feet;
674	674	North 3145'02" West, 111.21 feet;
675	675	South 8302'11" West, 42.36 feet;
676	676	North 6908'53" West, 50.34 feet;
677	677	North 3259'21" East, 44.81 feet;
678	678	North 3417' 14" East, 32.65 feet;
679	679	South 8137'02" West, 33.57 feet;
680	680	South 3822'00" West, 35.15 feet;
681	681	North 8142'50" West, 20.77 feet;
682	682	South 5530'57" West, 90.72 feet;
683	683	South 8748'14" West, 33.48 feet;
684	684	South 13'11"52" West, 24.55 feet;
685	685	North 5956'59" West, 8.13 feet;
686	686	North 0041'45" East, 40.61 feet;
687	687	North 0144'23" West, 145.17 feet;
688	688	North 1201'38" West, 16.72 feet;
689	689	South 8632'51" West, 156.63 feet;
690	690	South 0546'00" East, 11.04 feet;
691	691	South 2236'18" West, 94.42 feet;
692	692	South 3235'45" West, 119.26 feet;
693	693	South 6102'05" West, 62.66 feet;
694	694	South 1612'44" West, 22.95 feet;
695	695	South 2834'51" West, 30.73 feet;
696	696	South 4406'14" West, 22.87 feet;
697	697	North 7302'08" West, 9.22 feet;
698	698	North 0410'31" West, 24.32 feet;
699	699	North 2714'31" East, 21.05 feet;
700	700	North 2253'30" East, 7.43 feet;
701	701	North 8859'13" West, 51.70 feet;
702	702	North 7932'56" West, 88.00 feet;
703	703	North 5819'46" West, 75.33 feet;
704	704	North 7116' 35" West, 43.42 feet for the southwest corner of
705	705	this tract;
706	706	Thence, along the west boundary of this tract, same being the
707	707	southerly shoreline of Packery channel as accepted by Texas General
708	708	Land Office per letter dated April 30, 1998, as follows:
709	709	North 5513'55" East, 28.37 feet;
710	710	South 6551'29" East, 41.25 feet;
711	711	South 6419'51" East, 64.68 feet;
712	712	North 5513'55" East, 340.15 feet;
713	713	North 3153' 53" East, 30.54 feet;
714	714	North 4456'59" East, 29.80 feet;
715	715	North 5127'13" East, 36.11 feet;
716	716	North 6550'19" East, 55.92 feet;
717	717	North 5535'00" East, 42.51 feet;
718	718	North 3331'45" East, 51.92 feet;
719	719	North 3831'45" East, 17.85 feet;
720	720	North 2025'53" East, 102.95 feet;
721	721	North 8159'03" East, 65.59 feet;
722	722	North 7234'53" East, 67.69 feet;
723	723	North 7149'28" East, 59.60 feet;
724	724	North 0151'03" East, 48.09 feet;
725	725	North 1745'00" East, 64.91 feet;
726	726	North 7804'21" West, 66.41 feet;
727	727	South 8715'19" West, 100.76 feet;
728	728	South 4935'03" West, 65.86 feet;
729	729	South 4910'34" West, 38.32 feet;
730	730	North 0043'54" East, 49.68 feet;
731	731	North 3724'35" East, 144.97 feet;
732	732	North 3746'47" East, 112.88 feet;
733	733	North 2005'37" East, 76.29 feet;
734	734	North 3242'34" East, 310.32 feet;
735	735	North 4030'15" East, 113.40 feet;
736	736	North 44~0'29" East, 95.30 feet for the northwest corner of
737	737	this tract;
738	738	Thence, along the north boundary of this tract as follows:
739	739	North 7259'05" East, 96.30 feet;
740	740	South 8810'08" East, 103.26 feet;
741	741	North 8903'23" East, 166.00 feet;
742	742	South 8418'24" East, 125.72 feet;
743	743	South 6940'03" East, 110.24 feet;
744	744	South 7156'18" East, 51.70 feet;
745	745	South 5305'14" East, 121.61 feet;
746	746	South 2754'36" East, 77.28 feet;
747	747	South 6035'14" East, 107.60 feet;
748	748	South 4953'53" East, 57.14 feet;
749	749	South 3733'52" East, 126.22 feet;
750	750	South 3753'45" East, 108.63 feet;
751	751	South 2007'15" East, 69.56 feet;
752	752	North 8007'23" East, 38.18 feet;
753	753	South 5527'21" East, 94.45 feet;
754	754	South 5143'16" East, 112.40 feet;
755	755	South 0900'57" West, 65.74 feet;
756	756	South 3739'14" East, 146.26 feet;
757	757	South 4543'19" East, 131.51 feet;
758	758	South 4140'27" East, 76.82 feet for the northeast corner of
759	759	this tract;
760	760	Thence, South 6811' 13" West, along the east boundary of said
761	761	Block 2 and of this tract, same being the west boundary of said
762	762	Padre Island Nueces County Park No. 2, a distance of 1592.69 feet to
763	763	the Point of Beginning and containing 45.856 acres of land
764	764	SECTION 3. (a) The legal notice of the intention to
765	765	introduce this Act, setting forth the general substance of this
766	766	Act, has been published as provided by law, and the notice and a
767	767	copy of this Act have been furnished to all persons, agencies,
768	768	officials, or entities to which they are required to be furnished
769	769	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
770	770	Government Code.
771	771	(b) The governor, one of the required recipients, has
772	772	submitted the notice and Act to the Texas Commission on
773	773	Environmental Quality.
774	774	(c) The Texas Commission on Environmental Quality has filed
775	775	its recommendations relating to this Act with the governor, the
776	776	lieutenant governor, and the speaker of the house of
777	777	representatives within the required time.
778	778	(d) All requirements of the constitution and laws of this
779	779	state and the rules and procedures of the legislature with respect
780	780	to the notice, introduction, and passage of this Act are fulfilled
781	781	and accomplished.
782	782	SECTION 4. This Act takes effect immediately if it receives
783	783	a vote of two-thirds of all the members elected to each house, as
784	784	provided by Section 39, Article III, Texas Constitution. If this
785	785	Act does not receive the vote necessary for immediate effect, this
786	786	Act takes effect September 1, 2009.
787	787	______________________________ ______________________________
788	788	President of the Senate Speaker of the House
789	789	I hereby certify that S.B. No. 2550 passed the Senate on
790	790	May 14, 2009, by the following vote: Yeas 31, Nays 0.
791	791	______________________________
792	792	Secretary of the Senate
793	793	I hereby certify that S.B. No. 2550 passed the House on
794	794	May 27, 2009, by the following vote: Yeas 148, Nays 0, one
795	795	present not voting.
796	796	______________________________
797	797	Chief Clerk of the House
798	798	Approved:
799	799	______________________________
800	800	Date
801	801	______________________________
802	802	Governor