85R17991 JCG-F
By: Faircloth H.B. No. 4286
A BILL TO BE ENTITLED
AN ACT
relating to creation of the Bolivar Management District; providing
authority to issue bonds; providing authority to impose
assessments, fees, and 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 3942 to read as follows:
CHAPTER 3942. BOLIVAR MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3942.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "City" means the City of Galveston.
(3) "County" means Galveston County.
(4) "District" means the Bolivar Management District.
Sec. 3942.002. BOLIVAR MANAGEMENT DISTRICT. The Bolivar
Management District is a special district created under Section 59,
Article XVI, Texas Constitution.
Sec. 3942.003. 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. By creating the district and in authorizing the county and
other political subdivisions to contract with the district, the
legislature has established a program to accomplish the public
purposes set out in Section 52-a, Article III, Texas Constitution.
(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 area of the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve 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 the county services provided in the
area in the district.
Sec. 3942.004. 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 creation of the district is in the public interest
and is essential to:
(1) further the public purposes of development and
diversification of the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding to preserve, maintain, and
enhance the economic health and vitality of the district 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.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(f) 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. 3942.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act enacting
this chapter as that territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district contained
in Section 2 of the Act enacting this chapter form a closure. A
mistake made in the field notes or in copying the field notes in the
legislative process does not in any way affect the district's:
(1) organization, existence, or validity;
(2) authority to issue any type of bond for a purpose
for which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3942.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
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; or
(3) an enterprise zone created under Chapter 2303,
Government Code.
Sec. 3942.007. APPLICABILITY OF COUNTY DEVELOPMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 383, Local Government Code, applies to the district.
Sec. 3942.008. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be construed liberally in conformity with the
findings and purposes stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3942.051. GOVERNING BODY; TERMS. (a) Except as
provided by Subsection (c), the district is governed by a board of
five directors appointed under Section 3942.052.
(b) Voting directors serve staggered terms of four years,
with two or three directors' terms expiring June 1 of each
odd-numbered year.
(c) The board by resolution may increase or decrease the
number of directors on the board if the board finds it is in the best
interest of the district. The board may not consist of fewer than 5
or more than 15 directors.
Sec. 3942.052. APPOINTMENT OF DIRECTORS. The governing
body of the county shall appoint the directors.
Sec. 3942.053. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
(a) Except as provided by this section:
(1) a director may participate in all board votes and
decisions; and
(2) Chapter 171, Local Government Code, governs
conflicts of interest for directors.
(b) Section 171.004, Local Government Code, does not apply
to the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary benefit
from a board action shall file a one-time affidavit declaring the
interest. An additional affidavit is not required if the
director's interest changes. After the affidavit is filed with the
board secretary, the director may participate in a discussion or
vote on that action if:
(1) a majority of the directors have a similar
interest in the same entity; or
(2) all other similar business or charitable entities
in the district will receive a similar pecuniary benefit.
(c) A director who is also an officer or employee of a public
entity may not participate in the discussion of or vote on a matter
regarding a contract with that public entity.
(d) For purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that
a person would have a substantial interest in a business entity
under Section 171.002, Local Government Code.
Sec. 3942.054. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No. Name of Director Pos. No. Name of Director
Pos. No. Name of Director
1 Robert Morgan 1 Robert Morgan
1 Robert Morgan
2 Justin Thompson 2 Justin Thompson
2 Justin Thompson
3 Tom Harrison 3 Tom Harrison
3 Tom Harrison
4 Brad Ballard 4 Brad Ballard
4 Brad Ballard
5 Ross Harrison 5 Ross Harrison
5 Ross Harrison
(b) Of the initial directors, the terms of directors
appointed for positions one and two expire June 1, 2019, and the
terms of directors appointed for positions three through five
expire June 1, 2021.
(c) Section 3942.052 does not apply to this section.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3942.101. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to:
(1) a corporation under Chapter 505, Local Government
Code, including the power to own, operate, acquire, construct,
lease, improve, and maintain projects described by that chapter;
(2) a housing finance corporation under Chapter 394,
Local Government Code, to provide housing or residential
development projects in the district;
(3) a county under Chapter 383, Local Government Code;
(4) an entity described in Chapters 284 and 441,
Transportation Code; and
(5) a district governed by Subchapters E and M,
Chapter 60, Water Code, and Section 61.116, Water Code.
Sec. 3942.102. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of
this chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Chapter 431,
Transportation Code.
Sec. 3942.103. AGREEMENTS; GRANTS. (a) 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. 3942.104. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with the county or the
city to provide law enforcement services in the district for a fee.
Sec. 3942.105. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district, but only for a contract
that has a value greater than $15,000.
Sec. 3942.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. (a)
The district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3),
(4), or (6), Internal Revenue Code of 1986, as amended; and
(2) performs a service or provides an activity
consistent with the furtherance of a district purpose.
(b) An expenditure of public money for membership in the
organization is considered to further a district purpose and to be
for a public purpose.
Sec. 3942.107. ECONOMIC DEVELOPMENT PROGRAMS. 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.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3942.151. DISBURSEMENTS OR TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of the district's money.
Sec. 3942.152. TAX AND BOND ELECTIONS. (a) The district
shall hold an election in the manner provided by Subchapter L,
Chapter 375, Local Government Code, to obtain voter approval before
the district imposes a maintenance tax or issues bonds payable from
ad valorem taxes.
(b) The board may not include more than one purpose in a
single proposition at an election.
(c) Section 375.243, Local Government Code, does not apply
to the district.
Sec. 3942.153. MAINTENANCE AND OPERATION TAX. (a) If
authorized at an election held in accordance with Section 3942.152,
the district may impose an annual ad valorem tax on taxable property
in the district for the:
(1) maintenance and operation of the district and the
improvements constructed or acquired by the district; or
(2) provision of a service.
(b) The board shall determine the tax rate.
Sec. 3942.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose an assessment for any purpose
authorized by this chapter.
(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. 3942.155. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (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) The petition 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. 3942.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. The district may not impose an impact fee or
assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or
121.001, Utilities Code;
(3) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(4) a person who provides to the public cable
television or advanced telecommunications services.
Sec. 3942.157. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations payable wholly or
partly from ad valorem taxes, assessments, impact fees, revenue,
grants, or other money of the district, or any combination of those
sources of money, to pay for any authorized purpose of the district.
(b) In exercising the district's power to borrow, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
Sec. 3942.158. COUNTY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. The county is not required to pay a bond, note, or
other obligation of the district.
Sec. 3942.159. TAX AND ASSESSMENT ABATEMENTS. Without
further authorization or other procedural requirement, the
district may grant, consistent with Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
SUBCHAPTER E. DISSOLUTION
Sec. 3942.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The board may vote to dissolve a district that has debt.
If the vote is in favor of dissolution, the district shall remain in
existence solely for the limited purpose of discharging its debts.
The dissolution is effective when all debts have been discharged.
(b) Section 383.121, Local Government Code, does not apply
to the district.
SECTION 2. The Bolivar Management District initially
includes all the territory contained in the following area:
Land lying and being situated in Galveston County, Texas, out
of the Port Bolivar Townsite, Samuel Parr Survey, Abstract No. 162,
Galveston County, Texas as follows:
Block Lot(s)
320 1-33
345 13-24
346 1-34
Water Lots # 33 - 55 Lying North of Intracoastal Waterway.
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,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) The general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with.
(e) 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 have been
fulfilled and accomplished.
SECTION 4. 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, 2017.
Pos. No. Name of Director
1 Robert Morgan
2 Justin Thompson
3 Tom Harrison
4 Brad Ballard
5 Ross Harrison