Texas 2011 - 82nd Regular

Texas Senate Bill SB1234 Compare Versions

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Old	New	Differences
1	1	By: West S.B. No. 1234
2	2	(Dutton)
3	3	Substitute the following for S.B. No. 1234: No.
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to municipal management districts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 375.003(3) and (4), Local Government
11	11	Code, are amended to read as follows:
12	12	(3) "Commission" means the Texas Commission on
13	13	Environmental Quality [Natural Resource Conservation Commission].
14	14	(4) "Disadvantaged business" means:
15	15	(A) a corporation formed for the purpose of
16	16	making a profit and at least 51 percent of all classes of the shares
17	17	of stock or other equitable securities of which are owned by one or
18	18	more persons who are socially disadvantaged because of their
19	19	identification as members of certain groups that have suffered the
20	20	effects of discriminatory practices or similar insidious
21	21	circumstances over which they have no control, including black
22	22	Americans, Hispanic Americans, women, Asian Pacific Americans, and
23	23	American Indians;
24	24	(B) a sole proprietorship formed for the purpose
25	25	of making a profit that is owned, operated, and controlled
26	26	exclusively by one or more persons described by Paragraph (A);
27	27	(C) a partnership that is formed for the purpose
28	28	of making a profit, in which 51 percent of the assets and interest
29	29	in the partnership is owned by one or more persons described by
30	30	Paragraph (A), and in which minority or women partners have a
31	31	proportionate interest in the control, operation, and management of
32	32	the partnership affairs;
33	33	(D) a joint venture between minority and women's
34	34	group members formed for the purpose of making a profit and the
35	35	minority participation in which is based on the sharing of real
36	36	economic interest, including equally proportionate control over
37	37	management, interest in capital, and interest earnings, other than
38	38	a joint venture in which majority group members own or control debt
39	39	securities, leasehold interest, management contracts, or other
40	40	interests; [or]
41	41	(E) a supplier contract between persons
42	42	described in Paragraph (A) and a prime contractor in which the
43	43	disadvantaged business is directly involved for the manufacture or
44	44	distribution of the supplies or materials or otherwise for
45	45	warehousing and shipping the supplies; or
46	46	(F) a person certified as a disadvantaged
47	47	business by:
48	48	(i) this state;
49	49	(ii) a political subdivision of this state;
50	50	or
51	51	(iii) a regional planning commission,
52	52	council of governments, or similar regional planning agency created
53	53	under Chapter 391.
54	54	SECTION 2. Section 375.022(c), Local Government Code, is
55	55	amended to read as follows:
56	56	(c) The petition must:
57	57	(1) describe the boundaries of the proposed district:
58	58	(A) by metes and bounds;
59	59	(B) by verifiable landmarks, including a road,
60	60	creek, or railroad line; or
61	61	(C)[,] if there is a recorded map or plat and
62	62	survey of the area, by lot and block number;
63	63	(2) state the specific purposes for which the district
64	64	will be created;
65	65	(3) state the general nature of the work, projects, or
66	66	services proposed to be provided, the necessity for those services,
67	67	and the costs as estimated by the persons filing the petition;
68	68	(4) include a name of the district, which must be
69	69	generally descriptive of the location of the district, followed by
70	70	"Management District" or "Improvement District";
71	71	(5) include a proposed list of initial directors that
72	72	includes the directors' experience and initial term of service; and
73	73	(6) include a resolution of the governing body of the
74	74	municipality in support of the creation of the district.
75	75	SECTION 3. Section 375.043, Local Government Code, is
76	76	amended to read as follows:
77	77	Sec. 375.043. ANNEXATION. A district may annex land as
78	78	provided by Section 49.301 and Chapter 54, Water Code, subject to
79	79	the approval of the governing body of the municipality.
80	80	SECTION 4. Section 375.044(b), Local Government Code, is
81	81	amended to read as follows:
82	82	(b) The board shall call a hearing on the exclusion of land
83	83	or other property from the district if a signed petition evidencing
84	84	the consent of the owners of a majority of the acreage in the
85	85	district, according to the most recent certified tax roll of the
86	86	county, is filed [landowner or property owner in the district
87	87	files] with the secretary of the board [a written petition]
88	88	requesting the hearing before the issuance of bonds.
89	89	SECTION 5. Section 375.061, Local Government Code, is
90	90	amended to read as follows:
91	91	Sec. 375.061. NUMBER OF DIRECTORS; TERMS. A district is
92	92	governed by a board of at least five [nine] but not more than 30
93	93	directors who serve staggered four-year terms.
94	94	SECTION 6. Section 375.071, Local Government Code, is
95	95	amended to read as follows:
96	96	Sec. 375.071. QUORUM. One-half of the serving directors
97	97	constitutes a quorum, and a concurrence of a majority of a quorum of
98	98	directors is required for any official action of the district. The
99	99	written consent of at least two-thirds of the directors is required
100	100	to authorize the levy of assessments, the levy of taxes, the
101	101	imposition of impact fees, or the issuance of bonds.
102	102	SECTION 7. Section 375.091, Local Government Code, is
103	103	amended to read as follows:
104	104	Sec. 375.091. GENERAL POWERS OF DISTRICT. [(a)] A district
105	105	has the rights, powers, privileges, authority, and functions
106	106	conferred by the general law of this state applicable to
107	107	conservation and reclamation districts created under Article XVI,
108	108	Section 59, of the Texas Constitution, including those conferred by
109	109	Chapter 54, Water Code.
110	110	[(b) The district may contract and manage its affairs and
111	111	funds for any corporate purpose in accordance with Chapter 54,
112	112	Water Code.
113	113	[(c) The district has all the rights, powers, privileges,
114	114	authority, and functions of road districts and road utility
115	115	districts created pursuant to Article III, Section 52, of the Texas
116	116	Constitution, including the power to levy ad valorem taxes for the
117	117	construction, maintenance, and operation of macadamized, graveled,
118	118	or paved roads and turnpikes, or in aid thereof. This power
119	119	includes the power to levy ad valorem taxes to provide for mass
120	120	transit systems in the manner and subject to the limitations
121	121	provided in Article III, Section 52, and Article III, Section
122	122	52(a), of the Texas Constitution.
123	123	[(d) A district has those powers conferred by Chapters 365
124	124	and 441, Transportation Code, and the additional rights,
125	125	privileges, authority, and functions contained in those chapters.]
126	126	SECTION 8. Subchapter E, Chapter 375, Local Government
127	127	Code, is amended by adding Sections 375.0921 and 375.0922 to read as
128	128	follows:
129	129	Sec. 375.0921. AUTHORITY FOR ROAD PROJECTS. (a) Under
130	130	Section 52, Article III, Texas Constitution, a district may design,
131	131	acquire, construct, finance, issue bonds for, improve, operate,
132	132	maintain, and convey to this state, a county, or a municipality for
133	133	operation and maintenance macadamized, graveled, or paved roads, or
134	134	improvements, including storm drainage, in aid of those roads.
135	135	(b) The district may impose ad valorem taxes to provide for
136	136	mass transit systems in the manner and subject to the limitations
137	137	provided by Section 52, Article III, and Section 52-a, Article III,
138	138	Texas Constitution.
139	139	Sec. 375.0922. ROAD STANDARDS AND REQUIREMENTS. (a) A road
140	140	project must meet all applicable construction standards, zoning and
141	141	subdivision requirements, and regulations of each municipality in
142	142	whose corporate limits or extraterritorial jurisdiction the road
143	143	project is located.
144	144	(b) If a road project is not located in the corporate limits
145	145	or extraterritorial jurisdiction of a municipality, the road
146	146	project must meet all applicable construction standards,
147	147	subdivision requirements, and regulations of each county in which
148	148	the road project is located.
149	149	(c) If the state will maintain and operate the road, the
150	150	Texas Transportation Commission must approve the plans and
151	151	specifications of the road project.
152	152	SECTION 9. Section 375.097(a), Local Government Code, is
153	153	amended to read as follows:
154	154	(a) The board may appoint a hearings examiner to conduct any
155	155	hearing called by the board, including a hearing required by
156	156	Chapter 395. The hearings examiner may be an employee or contractor
157	157	of the district, or a member of the district's board.
158	158	SECTION 10. Subchapter E, Chapter 375, Local Government
159	159	Code, is amended by adding Section 375.098 to read as follows:
160	160	Sec. 375.098. DISTRICT ACT OR PROCEEDING PRESUMED VALID.
161	161	(a) A governmental act or proceeding of a district is conclusively
162	162	presumed, as of the date it occurred, valid and to have occurred in
163	163	accordance with all applicable statutes and rules if:
164	164	(1) the third anniversary of the effective date of the
165	165	act or proceeding has expired; and
166	166	(2) a lawsuit to annul or invalidate the act or
167	167	proceeding has not been filed on or before that third anniversary.
168	168	(b) This section does not apply to:
169	169	(1) an act or proceeding that was void at the time it
170	170	occurred;
171	171	(2) an act or proceeding that, under a statute of this
172	172	state or the United States, was a misdemeanor or felony at the time
173	173	the act or proceeding occurred;
174	174	(3) a rule that, at the time it was passed, was
175	175	preempted by a statute of this state or the United States, including
176	176	Section 1.06 or 109.57, Alcoholic Beverage Code; or
177	177	(4) a matter that on the effective date of this
178	178	section:
179	179	(A) is involved in litigation if the litigation
180	180	ultimately results in the matter being held invalid by a final
181	181	judgment of a court; or
182	182	(B) has been held invalid by a final judgment of a
183	183	court.
184	184	SECTION 11. Section 375.112(a)(1), Local Government Code,
185	185	is amended to read as follows
186	186	(1) landscaping, lighting, banners, and signs; streets and
187	187	sidewalks; pedestrian skywalks, crosswalks, and tunnels; seawalls;
188	188	marinas; drainage and navigation improvements; pedestrian malls;
189	189	solid waste, water, sewer and power facilities, including
190	190	electrical, gas, steam, cogeneration, and chilled water
191	191	facilities; parks, plazas, lakes, rivers, bayous, ponds, and
192	192	recreation and scenic areas; historic areas; fountains; works or
193	193	art; off-street parking facilities, bus terminals, heliports, and
194	194	mass transit systems; theatres, studios, exhibition halls,
195	195	production facilities and ancillary facilities in support of the
196	196	foregoing; and the cost of any demolition in connection with
197	197	providing any of the improvement projects;
198	198	SECTION 12. Section 375.114, Local Government Code, is
199	199	amended to read as follows:
200	200	Sec. 375.114. PETITION REQUIRED. The board may not finance
201	201	services and improvement projects under this chapter unless a
202	202	written petition has been filed with the board requesting those
203	203	improvements or services signed by:
204	204	(1) the owners of 50 percent or more of the assessed
205	205	value of the property in the district subject to assessment,
206	206	according to [as determined from] the most recent certified county
207	207	property tax rolls; or
208	208	(2) the owners of 50 percent or more of the surface
209	209	area of the district, excluding roads, streets, highways, and
210	210	utility rights-of-way, other public areas, and any other property
211	211	exempt from assessment under Section 375.162 or 375.163, according
212	212	to [as determined from] the most recent certified county property
213	213	tax rolls.
214	214	SECTION 13. Section 375.202(e), Local Government Code, is
215	215	amended to read as follows:
216	216	(e) If provided by the bond order or resolution, the
217	217	proceeds from the sale of bonds may be used to pay interest on the
218	218	bonds during and after the period of the acquisition or
219	219	construction of any improvement project to be provided through the
220	220	issuance of the bonds, to pay administrative and operation expenses
221	221	to create a reserve fund for the payment of the principal of and
222	222	interest on the bonds, to pay costs associated with the issuance of
223	223	the bonds, and to create any other funds. The proceeds of the bonds
224	224	may be placed on time deposit or invested, until needed, in
225	225	securities in the manner provided by the bond order or resolution.
226	226	SECTION 14. Section 375.205(a), Local Government Code, is
227	227	amended to read as follows:
228	228	(a) The district shall submit bonds and the appropriate
229	229	proceedings authorizing their issuance to the attorney general for
230	230	examination. This subsection applies only to bonds that are public
231	231	securities, as that term is defined by Section 1202.001, Government
232	232	Code.
233	233	SECTION 15. Subchapter J, Chapter 375, Local Government
234	234	Code, is amended by adding Section 375.209 to read as follows:
235	235	Sec. 375.209. TAXES FOR BONDS. At the time the district
236	236	issues bonds payable wholly or partly from ad valorem taxes, the
237	237	board shall provide for the annual imposition of a continuing
238	238	direct annual ad valorem tax, without limit as to rate or amount,
239	239	while all or part of the bonds are outstanding as required and in
240	240	the manner provided by Sections 54.601 and 54.602, Water Code.
241	241	SECTION 16. Section 375.221, Local Government Code, is
242	242	amended to read as follows:
243	243	Sec. 375.221. APPLICABILITY OF WATER DISTRICTS LAW TO
244	244	COMPETITIVE BIDDING ON CERTAIN [PUBLIC WORKS] CONTRACTS. (a)
245	245	Except as provided by Subsection (b) of this section, Subchapter I,
246	246	Chapter 49, Water Code, applies to a district contract for
247	247	construction work, equipment, materials, or machinery.
248	248	(b) [A contract, other than a contract for services, for
249	249	more than $50,000 for the construction of improvements or the
250	250	purchase of material, machinery, equipment, supplies, and other
251	251	property, except real property, may be entered into only after
252	252	competitive bids. Notice of the contract for the purpose of
253	253	soliciting bids shall be published once a week for two consecutive
254	254	weeks in a newspaper with general circulation in the area in which
255	255	the district is located. The first publication of notice must be
256	256	not later than the 14th day before the date set for receiving bids.]
257	257	The board may adopt rules governing receipt of bids and the award of
258	258	the contract and providing for the waiver of the competitive bid
259	259	requirement if:
260	260	(1) there is an emergency;
261	261	(2) the needed materials are available from only one
262	262	source;
263	263	(3) in a procurement requiring design by the supplier
264	264	competitive bidding would not be appropriate and competitive
265	265	negotiation, with proposals solicited from an adequate number of
266	266	qualified sources, would permit reasonable competition consistent
267	267	with the nature and requirements of the procurement; or
268	268	(4) after solicitation, it is ascertained that there
269	269	will be only one bidder.
270	270	[(b) If a proposed contract for works, plant improvements,
271	271	facilities other than land, or the purchase of equipment,
272	272	appliances, materials, or supplies is for an estimated amount of
273	273	more than $50,000 or for a duration of more than two years,
274	274	competitive sealed proposals shall be asked from at least three
275	275	persons.]
276	276	SECTION 17. Section 375.263(a), Local Government Code, is
277	277	amended to read as follows:
278	278	(a) The [Except as limited by Section 375.264, the]
279	279	governing body of a municipality in which a district is wholly
280	280	located, by a vote of not less than two-thirds of its membership,
281	281	may adopt an ordinance dissolving the district.
282	282	SECTION 18. Section 375.264, Local Government Code, is
283	283	amended to read as follows:
284	284	Sec. 375.264. LIMITATION ON DISSOLUTION BY BOARD. A
285	285	district may not be dissolved by its board [or by a municipality] if
286	286	the district has any outstanding bonded indebtedness until that
287	287	bonded indebtedness has been repaid or defeased in accordance with
288	288	the order or resolution authorizing the issuance of the bonds.
289	289	SECTION 19. Subchapter N, Chapter 375, Local Government
290	290	Code, is amended by adding Section 375.282 to read as follows:
291	291	Sec. 375.282. STRATEGIC PARTNERSHIP AGREEMENT. A district
292	292	with territory in the extraterritorial jurisdiction of a
293	293	municipality may negotiate and enter into a written strategic
294	294	partnership with the municipality under Section 43.0751.
295	295	SECTION 20. Sections 375.021, 375.027, and 375.064(f),
296	296	Local Government Code, are repealed.
297	297	SECTION 21. The change in law made by this Act to Section
298	298	375.221, Local Government Code, applies only to a contract awarded
299	299	on or after January 1, 2012. A contract awarded before January 1,
300	300	2012, is governed by the law in effect on the date the contract was
301	301	awarded, and that law is continued in effect for that purpose.
302	302	SECTION 22. This Act takes effect September 1, 2011.