By: Kolkhorst S.B. No. 1362 (Schofield) A BILL TO BE ENTITLED AN ACT relating to the powers and duties and composition of the board of directors of the Bridgeland Management District. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 3901.002, Special District Local Laws Code, is amended to read as follows: Sec. 3901.002. CREATION AND NATURE OF DISTRICT; IMMUNITY. (a) The district is a special district created under Section 59, Article XVI, Texas Constitution. (b) The district is a governmental unit, as provided by Section 375.004, Local Government Code. (c) This chapter does not waive any governmental or sovereign immunity from suit, liability, or judgment that would otherwise apply to the district. SECTION 2. Section 3901.006(d), Special District Local Laws Code, is amended to read as follows: (d) 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, road facilities, transit facilities, parking facilities, conduit facilities and other enhanced infrastructure, recreational facilities, and public art objects and by landscaping and developing certain areas, which are necessary for the restoration, preservation, and enhancement of scenic beauty. SECTION 3. Section 3901.008, Special District Local Laws Code, is amended to read as follows: Sec. 3901.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in one or more of the following: (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. SECTION 4. Section 3901.011, Special District Local Laws Code, is amended to read as follows: Sec. 3901.011. CONFLICTS OF LAW. This chapter prevails over any provision of general law, including a provision of Chapter 375, Local Government Code, or Chapter 49, Water Code, that is in conflict or inconsistent with this chapter. SECTION 5. Subchapter B, Chapter 3901, Special District Local Laws Code, is amended by adding Section 3901.054 to read as follows: Sec. 3901.054. DISQUALIFICATION OF DIRECTORS. Section 49.052, Water Code, applies to the members of the board of the district. SECTION 6. Section 3901.103, Special District Local Laws Code, is amended to read as follows: Sec. 3901.103. RECREATIONAL FACILITIES. The district may develop or finance recreational facilities as authorized by Chapter 375, Local Government Code, Sections 52 and 52-a, Article III, Texas Constitution, Section 59, Article XVI, Texas Constitution, and any other law that applies to the district. SECTION 7. Section 3901.104, Special District Local Laws Code, is amended to read as follows: Sec. 3901.104. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may own, operate, maintain, design, acquire, construct, finance, issue bonds, notes, or other obligations for, improve, and convey to this state, a county, or a municipality, for ownership, operation, and maintenance, macadamized, graveled, or paved roads or improvements, including storm drainage, in aid of those roads. SECTION 8. Sections 3901.105(a) and (b), Special District Local Laws Code, are amended to read as follows: (a) The district may [shall] convey a road project authorized by Section 3901.104 to: (1) a [the] municipality or county that will operate and maintain the road if the municipality or county has approved the plans and specifications of the road project; or (2) the state if the state will operate and maintain the road and the Texas Transportation Commission has approved the plans and specifications of the road project. (b) Except as provided by Subsection (c), the district shall operate and maintain a road project authorized by Section 3901.104 that the district implements and does [is] not convey to [approved by] a municipality, a county, or this state under Subsection (a). SECTION 9. Section 3901.109, Special District Local Laws Code, is amended to read as follows: Sec. 3901.109. LAW ENFORCEMENT SERVICES. Section 49.216, Water Code, applies to the district [To protect the public interest, the district may contract with a qualified party, including the county or the city, to provide law enforcement services in the district]. SECTION 10. Section 3901.114, Special District Local Laws Code, is amended by amending Subsection (c) and adding Subsections (d) and (e) to read as follows: (c) The district may include and exclude land as provided by Sections 54.739-54.747, Water Code. A reference in those sections to a "tax" means an ad valorem tax for the purposes of this subsection. (d) If the district adopts a sales and use tax authorized at an election held under Section 3901.252 and subsequently includes new territory in the district under this section, the district: (1) is not required to hold another election to approve the imposition of the sales and use tax in the included territory; and (2) shall impose the sales and use tax in the included territory as provided by Chapter 321, Tax Code. (e) If the district adopts a sales and use tax authorized at an election held under Section 3901.252 and subsequently excludes territory in the district under this section, the sales and use tax is inapplicable to the excluded territory, as provided by Chapter 321, Tax Code. SECTION 11. Section 3901.153, Special District Local Laws Code, is amended to read as follows: Sec. 3901.153. RULES. In addition to rules and regulations adopted under the district's general rulemaking authority in Section 375.096(c), Local Government Code, the [The] district may adopt and enforce rules covering its public transit system or its public parking facilities, except that a rule relating to or affecting the use of the public right-of-way or a requirement for off-street parking is subject to all applicable county requirements. SECTION 12. Subchapter C-1, Chapter 3901, Special District Local Laws Code, is amended by adding Section 3901.156 to read as follows: Sec. 3901.156. MASS TRANSIT SYSTEMS. This subchapter does not limit the authority of the district to provide mass transit systems under Chapter 375, Local Government Code. SECTION 13. Chapter 3901, Special District Local Laws Code, is amended by adding Subchapter C-2 to read as follows: SUBCHAPTER C-2. CONDUIT FACILITIES Sec. 3901.171. CONDUIT FACILITIES. (a) The district may finance, acquire, construct, improve, operate, maintain, or charge a fee for the use of conduits for: (1) fiber-optic cable and supporting facilities; (2) electronic transmission and distribution lines and supporting facilities; or (3) other types of transmission and distribution lines and supporting facilities. (b) The district may not require a person to use a district conduit for a purpose described by Subsection (a)(1) or another telecommunications purpose. SECTION 14. Section 3901.204(a), Special District Local Laws Code, is amended to read as follows: (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 regardless of whether the part of the district where the assessment is to be imposed is subject to an assessment previously imposed by the board. SECTION 15. Subchapter D, Chapter 3901, Special District Local Laws Code, is amended by adding Section 3901.209 to read as follows: Sec. 3901.209. AUDIT EXEMPTION. (a) The district may elect to complete an annual financial report in lieu of an annual audit under Section 375.096(a)(6), Local Government Code, if: (1) the district had no bonds or other long-term (more than one year) liabilities outstanding during the fiscal period; (2) the district did not have gross receipts from operations, loans, taxes, assessments, or contributions in excess of $250,000 during the fiscal period; and (3) the district's cash and temporary investments were not in excess of $250,000 during the fiscal period. (b) Each annual financial report prepared in accordance with this section must be open to public inspection and accompanied by an affidavit signed by a duly authorized representative of the district attesting to the accuracy and authenticity of the financial report. (c) The annual financial report and affidavit shall be substantially similar in form to the annual financial report and affidavit forms prescribed by the executive director of the Texas Commission on Environmental Quality under Section 49.198, Water Code. SECTION 16. The change in law made by Section 3901.054, Special District Local Laws Code, as added by this Act, does not affect the entitlement of a member serving on the board of directors of the Bridgeland Management District immediately before the effective date of this Act to continue to carry out the board's functions for the remainder of the member's term. The change in law applies only to a member elected on or after the effective date of this Act. SECTION 17. (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 18. 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, 2015.