83R20794 JSL-F
By: Hegar S.B. No. 1906
A BILL TO BE ENTITLED
AN ACT
relating to the creation of Fort Bend County Municipal Management
District No. 1; granting a limited power of eminent domain;
providing authority to issue bonds; providing authority to impose
assessments, fees, or taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3927 to read as follows:
CHAPTER 3927. FORT BEND COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3927.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Houston.
(3) "County" means Fort Bend County.
(4) "Director" means a board member.
(5) "District" means the Fort Bend County Municipal
Management District No. 1.
Sec. 3927.002. NATURE OF DISTRICT. The Fort Bend County
Municipal Management District No. 1 is a special district created
under Sections 52 and 52-a, Article III, and Section 59, Article
XVI, Texas Constitution.
Sec. 3927.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or the county from providing the
level of services provided as of the effective date of the Act
enacting this chapter to the area in the district. The district is
created to supplement and not to supplant city or county services
provided in the district.
Sec. 3927.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The district is created to accomplish the purposes of a
municipal management district as provided by general law and
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution.
(d) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding transportation and
commerce.
(e) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(f) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(g) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 3927.005. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bonds for the purposes
for which the district is created or to pay the principal of and
interest on bonds;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3927.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
(a) All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under
Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code;
(3) an enterprise zone created under Chapter 2303,
Government Code; or
(4) an industrial district created under Chapter 42,
Local Government Code.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city and the board of directors of
the zone, by contract with the district, may grant money deposited
in the tax increment fund to the district to be used by the district
for the purposes permitted for money granted to a corporation under
Section 380.002(b), Local Government Code, including the right to
pledge the money as security for any bonds issued by the district
for an improvement project.
Sec. 3927.007. CONSTRUCTION OF CHAPTER. This chapter shall
be liberally construed in conformity with the findings and purposes
stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3927.051. GOVERNING BODY; TERMS. The district is
governed by a board of five elected directors who serve staggered
terms of four years, with two or three directors' terms expiring
each even-numbered year.
Sec. 3927.052. ELECTION DATE. The board shall hold an
election for directors on the uniform election date in May in
even-numbered years.
Sec. 3927.053. ELIGIBILITY. To be qualified to serve as a
director, a person must meet the qualifications prescribed by
Section 375.063, Local Government Code.
Sec. 3927.054. INITIAL VOTING DIRECTORS. (a) On or after
the effective date of the Act enacting this chapter, the owner or
owners of a majority of the assessed value of the real property in
the district according to the most recent certified tax appraisal
roll for the county may submit a petition to the Texas Commission on
Environmental Quality requesting that the commission appoint as
initial voting directors the five persons named in the petition.
The commission shall appoint the five persons named in the petition
as initial directors by position.
(b) The initial directors appointed under Subsection (a)
shall draw lots to determine which two directors shall serve until
the first regularly scheduled election under Section 3927.052 and
which three directors shall serve until the second regularly
scheduled election under Section 3927.052.
(c) Section 3927.051 does not apply to this section.
(d) This section expires September 1, 2017.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3927.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3927.102. MUNICIPAL MANAGEMENT DISTRICT POWERS AND
DUTIES. The district has the powers and duties provided by the
general law of this state, including Chapter 375, Local Government
Code, applicable to municipal management districts created under
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution.
Sec. 3927.103. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service using any money available to the district, or contract with
a governmental or private entity to provide, design, construct,
acquire, improve, relocate, operate, maintain, or finance an
improvement project or service authorized under this chapter or
Chapter 375, Local Government Code.
Sec. 3927.104. UTILITY AND RECREATIONAL FACILITIES AND
SERVICES AND ROADS PROHIBITED WITHOUT AGREEMENT. The district may
not provide water, wastewater, or recreational facilities or
services or roads to any land within both the district and a
municipal utility district unless the district and the municipal
utility district enter into a written agreement specifying the
facilities and services to be provided by the district.
Sec. 3927.105. AGREEMENTS; GRANTS. (a) As provided by
Chapter 375, Local Government Code, the district may make an
agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3927.106. ECONOMIC DEVELOPMENT. (a) The district may
engage in activities that accomplish the economic development
purposes of the district.
(b) The district may establish and provide for the
administration of one or more programs to promote state or local
economic development and to stimulate business and commercial
activity in the district, including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(c) The district may create economic development programs
and exercise the economic development powers provided to
municipalities by:
(1) Chapter 380, Local Government Code; and
(2) Subchapter A, Chapter 1509, Government Code.
Sec. 3927.107. LIMITED EMINENT DOMAIN. The district may
exercise the power of eminent domain only for the purposes, only to
the extent, and subject to the limitations the general law provides
for a municipal utility district under Chapter 49, Water Code.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3927.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 3927.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or Chapter
375, Local Government Code, using any money available to the
district.
Sec. 3927.153. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by
the owners of a majority of the assessed value of real property in
the district subject to assessment according to the most recent
certified tax appraisal roll for the county.
Sec. 3927.154. METHOD OF NOTICE OF HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified or first class United States mail.
The board shall determine the method of mailing notice.
Sec. 3927.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
Sec. 3927.156. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3927.201. ELECTIONS REGARDING TAXES AND BONDS. (a)
The district may issue, without an election, bonds, notes, and
other obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 3927.203.
(b) The district must hold an election in the manner
provided by Subchapter L, Chapter 375, Local Government Code, to
obtain voter approval before the district may impose an ad valorem
tax or issue bonds payable from ad valorem taxes.
(c) Section 375.243, Local Government Code, does not apply
to the district.
(d) The district may not issue bonds payable from ad valorem
taxes to finance a road project unless the issuance is approved by a
vote of a two-thirds majority of the district voters voting at an
election held for that purpose.
Sec. 3927.202. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election held in accordance with Section 3927.201, the district may
impose an operation and maintenance tax on taxable property in the
district in accordance with Section 49.107, Water Code, for
operation and maintenance purposes, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
Sec. 3927.203. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
Sec. 3927.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
determined by the board.
(b) The district may issue bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
Sec. 3927.205. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall provide for the annual imposition of a continuing
direct annual ad valorem tax, without limit as to rate or amount,
for each year that all or part of the bonds are outstanding as
required and in the manner provided by Sections 54.601 and 54.602,
Water Code.
Sec. 3927.206. BONDS FOR ROAD PROJECTS. At the time of
issuance, the total principal amount of bonds or other obligations
issued or incurred to finance road projects and payable from ad
valorem taxes may not exceed one-fourth of the assessed value of the
real property in the district.
SECTION 2. The Fort Bend County Municipal Management
District No. 1 initially includes all territory contained in the
following area:
[[[boundaries to be determined]]]
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.
SECTION 4. (a) Section 3927.107, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 3927, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 3927.107 to read as follows:
Sec. 3927.107. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(c) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.