Texas 2015 - 84th Regular

Texas Senate Bill SB2035 Compare Versions

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Version 2 (New)

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1	1	By: Kolkhorst S.B. No. 2035
2	2	(Zerwas)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the conversion of the Harris-Fort Bend Counties
8	8	Municipal Utility District No. 4 to the Katy Management District
9	9	No. 1; providing authority to issue bonds; providing authority to
10	10	impose assessments, fees, or taxes.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The Harris-Fort Bend Counties Municipal Utility
13	13	District No. 4 is converted to the Katy Management District No. 1
14	14	and is governed by Chapter 3935, Special District Local Laws Code,
15	15	as added by this Act.
16	16	SECTION 2. Subtitle C, Title 4, Special District Local Laws
17	17	Code, is amended by adding Chapter 3935 to read as follows:
18	18	CHAPTER 3935. KATY MANAGEMENT DISTRICT NO. 1
19	19	SUBCHAPTER A. GENERAL PROVISIONS
20	20	Sec. 3935.001. DEFINITIONS. In this chapter:
21	21	(1) "Board" means the district's board of directors.
22	22	(2) "City" means the City of Katy.
23	23	(3) "County" means Harris County or Fort Bend County.
24	24	(4) "Director" means a board member.
25	25	(5) "District" means the Katy Management District No.
26	26	1.
27	27	Sec. 3935.002. NATURE OF DISTRICT; CONVERSION. The Katy
28	28	Management District No. 1 is a special district created under
29	29	Section 59, Article XVI, Texas Constitution, as the Harris-Fort
30	30	Bend Counties Municipal Utility District No. 4. The district is
31	31	converted to a municipal management district known as the Katy
32	32	Management District No. 1 under the same constitutional authority.
33	33	Sec. 3935.003. PURPOSE; DECLARATION OF INTENT. (a) The
34	34	conversion and operation of the district are essential to
35	35	accomplish the purposes of Sections 52 and 52-a, Article III, and
36	36	Section 59, Article XVI, Texas Constitution, and other public
37	37	purposes stated in this chapter. By converting the district to a
38	38	municipal management district and in authorizing the city, the
39	39	county, and other political subdivisions to contract with the
40	40	district, the legislature has established a program to accomplish
41	41	the public purposes set out in Section 52-a, Article III, Texas
42	42	Constitution.
43	43	(b) The conversion and operation of the district are
44	44	necessary to promote, develop, encourage, and maintain employment,
45	45	commerce, transportation, housing, tourism, recreation, the arts,
46	46	entertainment, economic development, safety, and the public
47	47	welfare in the district.
48	48	(c) This chapter and the conversion or operation of the
49	49	district may not be interpreted to relieve the city or the county
50	50	from providing the level of services provided as of the effective
51	51	date of the Act enacting this chapter to the area in the district.
52	52	The district is created to supplement and not to supplant city or
53	53	county services provided in the district.
54	54	Sec. 3935.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
55	55	(a) The district is converted to a municipal management district
56	56	to serve a public use and benefit.
57	57	(b) All land and other property included in the district
58	58	will benefit from the improvements and services to be provided by
59	59	the district under powers conferred by Sections 52 and 52-a,
60	60	Article III, and Section 59, Article XVI, Texas Constitution, and
61	61	other powers granted under this chapter.
62	62	(c) The operation of the district is in the public interest
63	63	and is essential to further the public purposes of:
64	64	(1) developing and diversifying the economy of the
65	65	state;
66	66	(2) eliminating unemployment and underemployment; and
67	67	(3) developing or expanding transportation and
68	68	commerce.
69	69	(d) The district will:
70	70	(1) promote the health, safety, and general welfare of
71	71	residents, employers, potential employees, employees, visitors,
72	72	and consumers in the district, and of the public;
73	73	(2) provide needed funding for the district to
74	74	preserve, maintain, and enhance the economic health and vitality of
75	75	the district territory as a community and business center;
76	76	(3) promote the health, safety, welfare, and enjoyment
77	77	of the public by providing pedestrian ways and by landscaping and
78	78	developing certain areas in the district, which are necessary for
79	79	the restoration, preservation, and enhancement of scenic beauty;
80	80	and
81	81	(4) provide for water, wastewater, drainage, road, and
82	82	recreational facilities for the district.
83	83	(e) Pedestrian ways along or across a street, whether at
84	84	grade or above or below the surface, and street lighting, street
85	85	landscaping, parking, and street art objects are parts of and
86	86	necessary components of a street and are considered to be a street
87	87	or road improvement.
88	88	(f) The district will not act as the agent or
89	89	instrumentality of any private interest even though the district
90	90	will benefit many private interests as well as the public.
91	91	Sec. 3935.005. INITIAL DISTRICT TERRITORY. The district is
92	92	initially composed of the territory of the former Harris-Fort Bend
93	93	Counties Municipal Utility District No. 4 as that territory existed
94	94	on March 1, 2015.
95	95	Sec. 3935.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
96	96	DISTRICTS LAW. Except as otherwise provided by this chapter,
97	97	Chapter 375, Local Government Code, applies to the district.
98	98	Sec. 3935.007. CONSTRUCTION OF CHAPTER. This chapter shall
99	99	be liberally construed in conformity with the findings and purposes
100	100	stated in this chapter.
101	101	SUBCHAPTER B. BOARD OF DIRECTORS
102	102	Sec. 3935.051. GOVERNING BODY; TERMS. (a) The district is
103	103	governed by a board of five voting directors who serve staggered
104	104	terms of four years, with two or three directors' terms expiring May
105	105	1 of each even-numbered year.
106	106	(b) The board by resolution may change the number of voting
107	107	directors on the board if the board determines that the change is in
108	108	the best interest of the district. The board may not consist of
109	109	fewer than 5 or more than 11 voting directors.
110	110	Sec. 3935.052. APPOINTMENT OF VOTING DIRECTORS. (a) The
111	111	mayor and members of the governing body of the city shall appoint
112	112	voting directors from persons recommended by the board. A person is
113	113	appointed if a majority of the members of the governing body,
114	114	including the mayor, vote to appoint that person.
115	115	(b) Section 375.063, Local Government Code, does not apply
116	116	to the district.
117	117	Sec. 3935.053. NONVOTING DIRECTORS. The board may appoint
118	118	nonvoting directors to serve at the pleasure of the voting
119	119	directors.
120	120	Sec. 3935.054. QUORUM. For purposes of determining the
121	121	requirements for a quorum of the board, the following are not
122	122	counted:
123	123	(1) a board position vacant for any reason, including
124	124	death, resignation, or disqualification;
125	125	(2) a director who is abstaining from participation in
126	126	a vote because of a conflict of interest; or
127	127	(3) a nonvoting director.
128	128	Sec. 3935.055. COMPENSATION. A director is entitled to
129	129	receive fees of office and reimbursement for actual expenses as
130	130	provided by Section 49.060, Water Code. Sections 375.069 and
131	131	375.070, Local Government Code, do not apply to the board.
132	132	Sec. 3935.056. INITIAL VOTING DIRECTORS ON CONVERSION TO
133	133	MANAGEMENT DISTRICT. (a) On the conversion of the district to a
134	134	management district, the initial board consists of the following
135	135	directors:
136	136	Pos. No. Name of Director Pos. No. Name of Director
137	137	Pos. No. Name of Director
138	138	1. Kenneth Berger 1. Kenneth Berger
139	139	1. Kenneth Berger
140	140	2. Orville Wient 2. Orville Wient
141	141	2. Orville Wient
142	142	3. Robert C. Hargarther 3. Robert C. Hargarther
143	143	3. Robert C. Hargarther
144	144	4. Donald P. Cox 4. Donald P. Cox
145	145	4. Donald P. Cox
146	146	5. Nick Alexander Jr. 5. Nick Alexander Jr.
147	147	5. Nick Alexander Jr.
148	148	(b) Of the initial directors, the terms of directors
149	149	appointed for positions one through three expire May 14, 2016, and
150	150	the terms of directors appointed for positions four and five expire
151	151	May 12, 2018.
152	152	(c) Sections 3935.051 and 3935.052 do not apply to the
153	153	appointment or terms of directors appointed under Subsection (a).
154	154	A director appointed to succeed a director appointed under
155	155	Subsection (a) serves until May 1 of the appropriate year.
156	156	SUBCHAPTER C. POWERS AND DUTIES
157	157	Sec. 3935.101. GENERAL POWERS AND DUTIES. The district has
158	158	the powers and duties necessary to accomplish the purposes
159	159	described by this chapter.
160	160	Sec. 3935.102. IMPROVEMENT PROJECTS AND SERVICES. The
161	161	district may provide, design, construct, acquire, improve,
162	162	relocate, operate, maintain, or finance an improvement project or
163	163	service using any money available to the district, or contract with
164	164	a governmental or private entity to provide, design, construct,
165	165	acquire, improve, relocate, operate, maintain, or finance an
166	166	improvement project or service authorized under this chapter or
167	167	Chapter 375, Local Government Code.
168	168	Sec. 3935.103. MUNICIPAL UTILITY DISTRICT POWERS AND
169	169	DUTIES. The district has the powers and duties provided by the
170	170	general law of this state, including Chapters 49 and 54, Water Code,
171	171	applicable to municipal utility districts created under Section 59,
172	172	Article XVI, Texas Constitution.
173	173	Sec. 3935.104. DEVELOPMENT CORPORATION POWERS. The
174	174	district, using money available to the district, may exercise the
175	175	powers given to a development corporation under Chapter 505, Local
176	176	Government Code, including the power to own, operate, acquire,
177	177	construct, lease, improve, or maintain a project under that
178	178	chapter.
179	179	Sec. 3935.105. NONPROFIT CORPORATION. (a) The board by
180	180	resolution may authorize the creation of a nonprofit corporation to
181	181	assist and act for the district in implementing a project or
182	182	providing a service authorized by this chapter.
183	183	(b) The nonprofit corporation:
184	184	(1) has each power of and is considered to be a local
185	185	government corporation created under Subchapter D, Chapter 431,
186	186	Transportation Code; and
187	187	(2) may implement any project and provide any service
188	188	authorized by this chapter.
189	189	(c) The board shall appoint the board of directors of the
190	190	nonprofit corporation. The board of directors of the nonprofit
191	191	corporation shall serve in the same manner as the board of directors
192	192	of a local government corporation created under Subchapter D,
193	193	Chapter 431, Transportation Code, except that a board member is not
194	194	required to reside in the district.
195	195	Sec. 3935.106. AGREEMENTS; GRANTS. (a) As provided by
196	196	Chapter 375, Local Government Code, the district may make an
197	197	agreement with or accept a gift, grant, or loan from any person.
198	198	(b) The implementation of a project is a governmental
199	199	function or service for the purposes of Chapter 791, Government
200	200	Code.
201	201	Sec. 3935.107. LAW ENFORCEMENT SERVICES. To protect the
202	202	public interest, the district may contract with a qualified party,
203	203	including the county or the city, to provide law enforcement
204	204	services in the district for a fee.
205	205	Sec. 3935.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
206	206	district may join and pay dues to a charitable or nonprofit
207	207	organization that performs a service or provides an activity
208	208	consistent with the furtherance of a district purpose.
209	209	Sec. 3935.109. ECONOMIC DEVELOPMENT. (a) The district may
210	210	engage in activities that accomplish the economic development
211	211	purposes of the district.
212	212	(b) The district may establish and provide for the
213	213	administration of one or more programs to promote state or local
214	214	economic development and to stimulate business and commercial
215	215	activity in the district, including programs to:
216	216	(1) make loans and grants of public money; and
217	217	(2) provide district personnel and services.
218	218	(c) The district may create economic development programs
219	219	and exercise the economic development powers provided to
220	220	municipalities by:
221	221	(1) Chapter 380, Local Government Code; and
222	222	(2) Subchapter A, Chapter 1509, Government Code.
223	223	Sec. 3935.110. PARKING FACILITIES. (a) The district may
224	224	acquire, lease as lessor or lessee, construct, develop, own,
225	225	operate, and maintain parking facilities or a system of parking
226	226	facilities, including lots, garages, parking terminals, or other
227	227	structures or accommodations for parking motor vehicles off the
228	228	streets and related appurtenances.
229	229	(b) The district's parking facilities serve the public
230	230	purposes of the district and are owned, used, and held for a public
231	231	purpose even if leased or operated by a private entity for a term of
232	232	years.
233	233	(c) The district's parking facilities are parts of and
234	234	necessary components of a street and are considered to be a street
235	235	or road improvement.
236	236	(d) The development and operation of the district's parking
237	237	facilities may be considered an economic development program.
238	238	Sec. 3935.111. ANNEXATION OF LAND. The district may annex
239	239	land as provided by Subchapter J, Chapter 49, Water Code.
240	240	Sec. 3935.112. APPROVAL BY CITY. (a) Except as provided
241	241	by Subsection (c), the district must obtain the approval of the city
242	242	for:
243	243	(1) the issuance of bonds;
244	244	(2) the plans and specifications of an improvement
245	245	project financed by bonds; and
246	246	(3) the plans and specifications of an improvement
247	247	project related to the use of land owned by the city, an easement
248	248	granted by the city, or a right-of-way of a street, road, or
249	249	highway.
250	250	(b) The district may not issue bonds until the governing
251	251	body of the city adopts a resolution or ordinance authorizing the
252	252	issuance of the bonds.
253	253	(c) If the district obtains the approval of the city's
254	254	governing body of a capital improvements budget for a period not to
255	255	exceed 10 years, the district may finance the capital improvements
256	256	and issue bonds specified in the budget without further approval
257	257	from the city.
258	258	(d) The governing body of the city:
259	259	(1) is not required to adopt a resolution or ordinance
260	260	to approve plans and specifications described by Subsection (a);
261	261	and
262	262	(2) may establish an administrative process to approve
263	263	plans and specifications described by Subsection (a) without the
264	264	involvement of the governing body.
265	265	SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
266	266	Sec. 3935.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
267	267	board by resolution shall establish the number of directors'
268	268	signatures and the procedure required for a disbursement or
269	269	transfer of district money.
270	270	Sec. 3935.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
271	271	The district may acquire, construct, finance, operate, or maintain
272	272	any improvement or service authorized under this chapter or Chapter
273	273	375, Local Government Code, using any money available to the
274	274	district.
275	275	Sec. 3935.153. PETITION REQUIRED FOR FINANCING SERVICES AND
276	276	IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
277	277	service or improvement project with assessments under this chapter
278	278	unless a written petition requesting that service or improvement
279	279	has been filed with the board.
280	280	(b) A petition filed under Subsection (a) must be signed by
281	281	the owners of a majority of the assessed value of real property in
282	282	the district subject to assessment according to the most recent
283	283	certified tax appraisal roll for the county.
284	284	Sec. 3935.154. ASSESSMENTS; LIENS FOR ASSESSMENTS.
285	285	(a) The board by resolution may impose and collect an assessment
286	286	for any purpose authorized by this chapter in all or any part of the
287	287	district.
288	288	(b) An assessment, a reassessment, or an assessment
289	289	resulting from an addition to or correction of the assessment roll
290	290	by the district, penalties and interest on an assessment or
291	291	reassessment, an expense of collection, and reasonable attorney's
292	292	fees incurred by the district:
293	293	(1) are a first and prior lien against the property
294	294	assessed;
295	295	(2) are superior to any other lien or claim other than
296	296	a lien or claim for county, school district, or municipal ad valorem
297	297	taxes; and
298	298	(3) are the personal liability of and a charge against
299	299	the owners of the property even if the owners are not named in the
300	300	assessment proceedings.
301	301	(c) The lien is effective from the date of the board's
302	302	resolution imposing the assessment until the date the assessment is
303	303	paid. The board may enforce the lien in the same manner that the
304	304	board may enforce an ad valorem tax lien against real property.
305	305	(d) The board may make a correction to or deletion from the
306	306	assessment roll that does not increase the amount of assessment of
307	307	any parcel of land without providing notice and holding a hearing in
308	308	the manner required for additional assessments.
309	309	Sec. 3935.155. TAX AND ASSESSMENT ABATEMENT. The district
310	310	may designate reinvestment zones and may grant abatements of
311	311	district taxes or assessments on property in the zones.
312	312	SUBCHAPTER E. TAXES AND BONDS
313	313	Sec. 3935.201. ELECTIONS REGARDING TAXES AND BONDS.
314	314	(a) The district may issue, without an election, bonds, notes, and
315	315	other obligations secured by:
316	316	(1) revenue other than ad valorem taxes; or
317	317	(2) contract payments described by Section 3935.203.
318	318	(b) The district must hold an election in the manner
319	319	provided by Chapters 49 and 54, Water Code, to obtain voter approval
320	320	before the district may impose an ad valorem tax or issue bonds
321	321	payable from ad valorem taxes.
322	322	(c) All or any part of any facilities or improvements that
323	323	may be acquired by a district by the issuance of its bonds may be
324	324	submitted as a single proposition or as several propositions to be
325	325	voted on at the election.
326	326	Sec. 3935.202. OPERATION AND MAINTENANCE TAX. (a) If
327	327	authorized by a majority of the district voters voting at an
328	328	election held in accordance with Section 49.107, Water Code, the
329	329	district may impose an operation and maintenance tax on taxable
330	330	property in the district in accordance with that section for any
331	331	district purpose, including to:
332	332	(1) maintain and operate the district;
333	333	(2) construct or acquire improvements; or
334	334	(3) provide a service.
335	335	(b) The board shall determine the tax rate. The rate may not
336	336	exceed the rate approved at the election.
337	337	(c) Section 49.107(h), Water Code, does not apply to the
338	338	district.
339	339	Sec. 3935.203. CONTRACT TAXES. (a) In accordance with
340	340	Section 49.108, Water Code, the district may impose a tax other than
341	341	an operation and maintenance tax and use the revenue derived from
342	342	the tax to make payments under a contract after the provisions of
343	343	the contract have been approved by a majority of the district voters
344	344	voting at an election held for that purpose.
345	345	(b) A contract approved by the district voters may contain a
346	346	provision stating that the contract may be modified or amended by
347	347	the board without further voter approval.
348	348	Sec. 3935.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
349	349	AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
350	350	determined by the board. Section 375.205, Local Government Code,
351	351	does not apply to a loan, line of credit, or other borrowing from a
352	352	bank or financial institution secured by revenue other than ad
353	353	valorem taxes.
354	354	(b) The district may issue bonds, notes, or other
355	355	obligations payable wholly or partly from ad valorem taxes,
356	356	assessments, impact fees, revenue, contract payments, grants, or
357	357	other district money, or any combination of those sources of money,
358	358	to pay for any authorized district purpose.
359	359	(c) The limitation on the outstanding principal amount of
360	360	bonds, notes, and other obligations provided by Section 49.4645,
361	361	Water Code, does not apply to the district.
362	362	Sec. 3935.205. TAXES FOR BONDS. At the time the district
363	363	issues bonds payable wholly or partly from ad valorem taxes, the
364	364	board shall provide for the annual imposition of a continuing
365	365	direct annual ad valorem tax, without limit as to rate or amount,
366	366	for each year that all or part of the bonds are outstanding as
367	367	required and in the manner provided by Sections 54.601 and 54.602,
368	368	Water Code.
369	369	Sec. 3935.206. CITY NOT REQUIRED TO PAY DISTRICT
370	370	OBLIGATIONS. Except as provided by Section 375.263, Local
371	371	Government Code, the city is not required to pay a bond, note, or
372	372	other obligation of the district.
373	373	SECTION 3. The Katy Management District No. 1 retains all
374	374	rights, powers, privileges, authority, duties, and functions that
375	375	the Harris-Fort Bend Counties Municipal Utility District No. 4 had
376	376	before the effective date of this Act, except as otherwise
377	377	expressly provided by Chapter 3935, Special District Local Laws
378	378	Code, as added by this Act.
379	379	SECTION 4. (a) The legislature validates and confirms all
380	380	governmental acts and proceedings of the Harris-Fort Bend Counties
381	381	Municipal Utility District No. 4 that were taken before the
382	382	effective date of this Act.
383	383	(b) This section does not apply to any matter that on the
384	384	effective date of this Act:
385	385	(1) is involved in litigation if the litigation
386	386	ultimately results in the matter being held invalid by a final court
387	387	judgment; or
388	388	(2) has been held invalid by a final court judgment.
389	389	SECTION 5. (a) The legal notice of the intention to
390	390	introduce this Act, setting forth the general substance of this
391	391	Act, has been published as provided by law, and the notice and a
392	392	copy of this Act have been furnished to all persons, agencies,
393	393	officials, or entities to which they are required to be furnished
394	394	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
395	395	Government Code.
396	396	(b) The governor, one of the required recipients, has
397	397	submitted the notice and Act to the Texas Commission on
398	398	Environmental Quality.
399	399	(c) The Texas Commission on Environmental Quality has filed
400	400	its recommendations relating to this Act with the governor,
401	401	lieutenant governor, and speaker of the house of representatives
402	402	within the required time.
403	403	(d) The general law relating to consent by political
404	404	subdivisions to the creation of districts with conservation,
405	405	reclamation, and road powers and the inclusion of land in those
406	406	districts has been complied with.
407	407	(e) All requirements of the constitution and laws of this
408	408	state and the rules and procedures of the legislature with respect
409	409	to the notice, introduction, and passage of this Act have been
410	410	fulfilled and accomplished.
411	411	SECTION 6. This Act takes effect immediately if it receives
412	412	a vote of two-thirds of all the members elected to each house, as
413	413	provided by Section 39, Article III, Texas Constitution. If this
414	414	Act does not receive the vote necessary for immediate effect, this
415	415	Act takes effect September 1, 2015.
416	416
417	417	Pos. No. Name of Director
418	418
419	419	1. Kenneth Berger
420	420
421	421	2. Orville Wient
422	422
423	423	3. Robert C. Hargarther
424	424
425	425	4. Donald P. Cox
426	426
427	427	5. Nick Alexander Jr.