TX
Texas House Bill HB4286

Texas 2017 - 85th Regular

Texas House Bill HB4286 Compare Versions

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1-85R23117 JCG-F
1+85R17991 JCG-F
22 By: Faircloth H.B. No. 4286
3- Substitute the following for H.B. No. 4286:
4- By: Bell C.S.H.B. No. 4286
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
97 relating to creation of the Bolivar Management District; providing
108 authority to issue bonds; providing authority to impose
119 assessments, fees, and taxes.
1210 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1311 SECTION 1. Subtitle C, Title 4, Special District Local Laws
14- Code, is amended by adding Chapter 3796 to read as follows:
15- CHAPTER 3796. BOLIVAR MANAGEMENT DISTRICT
12+ Code, is amended by adding Chapter 3942 to read as follows:
13+ CHAPTER 3942. BOLIVAR MANAGEMENT DISTRICT
1614 SUBCHAPTER A. GENERAL PROVISIONS
17- Sec. 3796.001. DEFINITIONS. In this chapter:
15+ Sec. 3942.001. DEFINITIONS. In this chapter:
1816 (1) "Board" means the board of directors of the
1917 district.
2018 (2) "City" means the City of Galveston.
2119 (3) "County" means Galveston County.
2220 (4) "District" means the Bolivar Management District.
23- Sec. 3796.002. BOLIVAR MANAGEMENT DISTRICT. The Bolivar
21+ Sec. 3942.002. BOLIVAR MANAGEMENT DISTRICT. The Bolivar
2422 Management District is a special district created under Section 59,
2523 Article XVI, Texas Constitution.
26- Sec. 3796.003. PURPOSE; DECLARATION OF INTENT. (a) The
24+ Sec. 3942.003. PURPOSE; DECLARATION OF INTENT. (a) The
2725 creation of the district is essential to accomplish the purposes of
2826 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
2927 Texas Constitution, and other public purposes stated in this
3028 chapter. By creating the district and in authorizing the county and
3129 other political subdivisions to contract with the district, the
3230 legislature has established a program to accomplish the public
3331 purposes set out in Section 52-a, Article III, Texas Constitution.
3432 (b) The creation of the district is necessary to promote,
3533 develop, encourage, and maintain employment, commerce,
3634 transportation, housing, tourism, recreation, the arts,
3735 entertainment, economic development, safety, and the public
3836 welfare in the area of the district.
3937 (c) This chapter and the creation of the district may not be
4038 interpreted to relieve the county from providing the level of
4139 services provided, as of the effective date of the Act enacting this
4240 chapter, to the area in the district. The district is created to
4341 supplement and not to supplant the county services provided in the
4442 area in the district.
45- Sec. 3796.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
43+ Sec. 3942.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
4644 The district is created to serve a public use and benefit.
4745 (b) All land and other property included in the district
4846 will benefit from the improvements and services to be provided by
4947 the district under powers conferred by Sections 52 and 52-a,
5048 Article III, and Section 59, Article XVI, Texas Constitution, and
5149 other powers granted under this chapter.
5250 (c) The creation of the district is in the public interest
5351 and is essential to:
5452 (1) further the public purposes of development and
5553 diversification of the economy of the state;
5654 (2) eliminate unemployment and underemployment; and
5755 (3) develop or expand transportation and commerce.
5856 (d) The district will:
5957 (1) promote the health, safety, and general welfare of
6058 residents, employers, employees, visitors, and consumers in the
6159 district, and of the public;
6260 (2) provide needed funding to preserve, maintain, and
6361 enhance the economic health and vitality of the district as a
6462 community and business center; and
6563 (3) promote the health, safety, welfare, and enjoyment
6664 of the public by providing pedestrian ways and by landscaping and
6765 developing certain areas in the district, which are necessary for
6866 the restoration, preservation, and enhancement of scenic beauty.
6967 (e) Pedestrian ways along or across a street, whether at
7068 grade or above or below the surface, and street lighting, street
7169 landscaping, and street art objects are parts of and necessary
7270 components of a street and are considered to be a street or road
7371 improvement.
7472 (f) The district will not act as the agent or
7573 instrumentality of any private interest even though the district
7674 will benefit many private interests, as well as the public.
77- Sec. 3796.005. DISTRICT TERRITORY. (a) The district is
78- initially composed of the territory described by Section 2 of the
79- Act enacting this chapter.
75+ Sec. 3942.005. DISTRICT TERRITORY. (a) The district is
76+ composed of the territory described by Section 2 of the Act enacting
77+ this chapter as that territory may have been modified under:
78+ (1) Subchapter J, Chapter 49, Water Code; or
79+ (2) other law.
8080 (b) The boundaries and field notes of the district contained
8181 in Section 2 of the Act enacting this chapter form a closure. A
8282 mistake made in the field notes or in copying the field notes in the
8383 legislative process does not in any way affect the district's:
8484 (1) organization, existence, or validity;
85- (2) right to issue any type of bonds, notes, or other
86- obligations for a purpose for which the district is created or
87- to pay the principal of and interest on the bonds, notes, or other
88- obligations;
85+ (2) authority to issue any type of bond for a purpose
86+ for which the district is created or to pay the principal of and
87+ interest on a bond;
8988 (3) right to impose or collect an assessment or tax; or
9089 (4) legality or operation.
91- Sec. 3796.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
90+ Sec. 3942.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
9291 All or any part of the area of the district is eligible to be
9392 included in:
9493 (1) a tax increment reinvestment zone created under
9594 Chapter 311, Tax Code;
9695 (2) a tax abatement reinvestment zone created under
9796 Chapter 312, Tax Code; or
9897 (3) an enterprise zone created under Chapter 2303,
9998 Government Code.
100- Sec. 3796.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
99+ Sec. 3942.007. APPLICABILITY OF COUNTY DEVELOPMENT
101100 DISTRICTS LAW. Except as otherwise provided by this chapter,
102- Chapter 375, Local Government Code, applies to the district.
103- Sec. 3796.008. LIBERAL CONSTRUCTION OF CHAPTER. This
101+ Chapter 383, Local Government Code, applies to the district.
102+ Sec. 3942.008. LIBERAL CONSTRUCTION OF CHAPTER. This
104103 chapter shall be construed liberally in conformity with the
105104 findings and purposes stated in this chapter.
106105 SUBCHAPTER B. BOARD OF DIRECTORS
107- Sec. 3796.051. GOVERNING BODY; TERMS. (a) Except as
106+ Sec. 3942.051. GOVERNING BODY; TERMS. (a) Except as
108107 provided by Subsection (c), the district is governed by a board of
109- five directors appointed under Section 3796.052.
108+ five directors appointed under Section 3942.052.
110109 (b) Voting directors serve staggered terms of four years,
111110 with two or three directors' terms expiring June 1 of each
112111 odd-numbered year.
113112 (c) The board by resolution may increase or decrease the
114113 number of directors on the board if the board finds it is in the best
115114 interest of the district. The board may not consist of fewer than 5
116115 or more than 15 directors.
117- Sec. 3796.052. APPOINTMENT OF DIRECTORS. The governing
116+ Sec. 3942.052. APPOINTMENT OF DIRECTORS. The governing
118117 body of the county shall appoint the directors.
119- Sec. 3796.053. CONFLICTS OF INTEREST. (a) Except as
120- provided by this section:
118+ Sec. 3942.053. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
119+ (a) Except as provided by this section:
121120 (1) a director may participate in all board votes and
122121 decisions; and
123122 (2) Chapter 171, Local Government Code, governs
124123 conflicts of interest for directors.
125- (b) A director who is also an officer or employee of a public
124+ (b) Section 171.004, Local Government Code, does not apply
125+ to the district. A director who has a substantial interest in a
126+ business or charitable entity that will receive a pecuniary benefit
127+ from a board action shall file a one-time affidavit declaring the
128+ interest. An additional affidavit is not required if the
129+ director's interest changes. After the affidavit is filed with the
130+ board secretary, the director may participate in a discussion or
131+ vote on that action if:
132+ (1) a majority of the directors have a similar
133+ interest in the same entity; or
134+ (2) all other similar business or charitable entities
135+ in the district will receive a similar pecuniary benefit.
136+ (c) A director who is also an officer or employee of a public
126137 entity may not participate in the discussion of or vote on a matter
127138 regarding a contract with that public entity.
128- Sec. 3796.054. INITIAL DIRECTORS. (a) The initial board
139+ (d) For purposes of this section, a director has a
140+ substantial interest in a charitable entity in the same manner that
141+ a person would have a substantial interest in a business entity
142+ under Section 171.002, Local Government Code.
143+ Sec. 3942.054. INITIAL DIRECTORS. (a) The initial board
129144 consists of the following directors:
130145 Pos. No. Name of Director Pos. No. Name of Director
131146 Pos. No. Name of Director
132147 1 Robert Morgan 1 Robert Morgan
133148 1 Robert Morgan
134149 2 Justin Thompson 2 Justin Thompson
135150 2 Justin Thompson
136151 3 Tom Harrison 3 Tom Harrison
137152 3 Tom Harrison
138153 4 Brad Ballard 4 Brad Ballard
139154 4 Brad Ballard
140155 5 Ross Harrison 5 Ross Harrison
141156 5 Ross Harrison
142157 (b) Of the initial directors, the terms of directors
143158 appointed for positions one and two expire June 1, 2019, and the
144159 terms of directors appointed for positions three through five
145160 expire June 1, 2021.
146- (c) Section 3796.052 does not apply to this section.
161+ (c) Section 3942.052 does not apply to this section.
147162 SUBCHAPTER C. POWERS AND DUTIES
148- Sec. 3796.101. GENERAL POWERS AND DUTIES. The district has
149- the powers and duties necessary to accomplish the purposes for
150- which the district is created.
151- Sec. 3796.102. IMPROVEMENT PROJECTS AND SERVICES. (a) The
152- district may provide, design, construct, acquire, improve,
153- relocate, operate, maintain, or finance an improvement project or
154- service using money available to the district, or contract with a
155- governmental or private entity to provide, design, construct,
156- acquire, improve, relocate, operate, maintain, or finance an
157- improvement project or service authorized under this chapter or
158- under Chapter 375, Local Government Code.
159- (b) An improvement project described by Subsection (a) may
160- be located inside or outside the district.
161- Sec. 3796.103. AUTHORITY FOR ROAD PROJECTS. Under Section
162- 52, Article III, Texas Constitution, the district may own, operate,
163- maintain, design, acquire, construct, finance, issue bonds, notes,
164- or other obligations for, improve, and convey to this state, a
165- county, or a municipality for ownership, operation, and maintenance
166- macadamized, graveled, or paved roads or improvements, including
167- storm drainage, in aid of those roads.
168- Sec. 3796.104. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
169- (a) The district may convey a road project authorized by Section
170- 3796.103 to:
171- (1) a municipality or county that will operate and
172- maintain the road if the municipality or county has approved the
173- plans and specifications of the road project; or
174- (2) the state if the state will operate and maintain
175- the road and the Texas Transportation Commission has approved the
176- plans and specifications of the road project.
177- (b) Except as provided by Subsection (c), the district shall
178- operate and maintain a road project authorized by Section 3796.103
179- that the district implements and does not convey to a municipality,
180- a county, or this state under Subsection (a).
181- (c) The district may agree in writing with a municipality, a
182- county, or this state to assign operation and maintenance duties to
183- the district, the municipality, the county, or this state in a
184- manner other than the manner described in Subsections (a) and (b).
185- Sec. 3796.105. DEVELOPMENT CORPORATION POWERS. The
186- district, using money available to the district, may exercise the
187- powers given to a development corporation under Chapter 505, Local
188- Government Code, including the power to own, operate, acquire,
189- construct, lease, improve, or maintain a project under that
190- chapter.
191- Sec. 3796.106. ADDITIONAL POWERS OF DISTRICT. The district
192- may exercise the powers given to a district governed by Subchapters
193- E and M, Chapter 60, Water Code, and Section 61.116, Water Code.
194- Sec. 3796.107. NONPROFIT CORPORATION. (a) The board by
163+ Sec. 3942.101. ADDITIONAL POWERS OF DISTRICT. The district
164+ may exercise the powers given to:
165+ (1) a corporation under Chapter 505, Local Government
166+ Code, including the power to own, operate, acquire, construct,
167+ lease, improve, and maintain projects described by that chapter;
168+ (2) a housing finance corporation under Chapter 394,
169+ Local Government Code, to provide housing or residential
170+ development projects in the district;
171+ (3) a county under Chapter 383, Local Government Code;
172+ (4) an entity described in Chapters 284 and 441,
173+ Transportation Code; and
174+ (5) a district governed by Subchapters E and M,
175+ Chapter 60, Water Code, and Section 61.116, Water Code.
176+ Sec. 3942.102. NONPROFIT CORPORATION. (a) The board by
195177 resolution may authorize the creation of a nonprofit corporation to
196178 assist and act for the district in implementing a project or
197179 providing a service authorized by this chapter.
198180 (b) The nonprofit corporation:
199181 (1) has each power of and is considered for purposes of
200182 this chapter to be a local government corporation created under
201183 Chapter 431, Transportation Code; and
202184 (2) may implement any project and provide any service
203185 authorized by this chapter.
204186 (c) The board shall appoint the board of directors of the
205187 nonprofit corporation. The board of directors of the nonprofit
206188 corporation shall serve in the same manner as the board of directors
207- of a local government corporation created under Subchapter D,
208- Chapter 431, Transportation Code, except that a board member is not
209- required to reside in the district.
210- Sec. 3796.108. AGREEMENTS; GRANTS. (a) The district may
189+ of a local government corporation created under Chapter 431,
190+ Transportation Code.
191+ Sec. 3942.103. AGREEMENTS; GRANTS. (a) The district may
211192 make an agreement with or accept a gift, grant, or loan from any
212193 person.
213194 (b) The implementation of a project is a governmental
214195 function or service for the purposes of Chapter 791, Government
215196 Code.
216- Sec. 3796.109. LAW ENFORCEMENT SERVICES. To protect the
197+ Sec. 3942.104. LAW ENFORCEMENT SERVICES. To protect the
217198 public interest, the district may contract with the county or the
218199 city to provide law enforcement services in the district for a fee.
219- Sec. 3796.110. COMPETITIVE BIDDING. Section 375.221, Local
200+ Sec. 3942.105. COMPETITIVE BIDDING. Section 375.221, Local
220201 Government Code, applies to the district, but only for a contract
221202 that has a value greater than $15,000.
222- Sec. 3796.111. MEMBERSHIP IN CHARITABLE
223- ORGANIZATIONS. The district may join and pay dues to a charitable
224- or nonprofit organization that performs a service or provides an
225- activity consistent with the furtherance of a district purpose.
226- Sec. 3796.112. ECONOMIC DEVELOPMENT PROGRAMS. The district
203+ Sec. 3942.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. (a)
204+ The district may join and pay dues to an organization that:
205+ (1) enjoys tax-exempt status under Section 501(c)(3),
206+ (4), or (6), Internal Revenue Code of 1986, as amended; and
207+ (2) performs a service or provides an activity
208+ consistent with the furtherance of a district purpose.
209+ (b) An expenditure of public money for membership in the
210+ organization is considered to further a district purpose and to be
211+ for a public purpose.
212+ Sec. 3942.107. ECONOMIC DEVELOPMENT PROGRAMS. The district
227213 may establish and provide for the administration of one or more
228214 programs to promote state or local economic development and to
229215 stimulate business and commercial activity in the district,
230216 including programs to:
231217 (1) make loans and grants of public money; and
232218 (2) provide district personnel and services.
233219 SUBCHAPTER D. FINANCIAL PROVISIONS
234- Sec. 3796.151. DISBURSEMENTS OR TRANSFERS OF MONEY. The
220+ Sec. 3942.151. DISBURSEMENTS OR TRANSFERS OF MONEY. The
235221 board by resolution shall establish the number of directors'
236222 signatures and the procedure required for a disbursement or
237223 transfer of the district's money.
238- Sec. 3796.152. TAX AND BOND ELECTIONS. (a) The district
224+ Sec. 3942.152. TAX AND BOND ELECTIONS. (a) The district
239225 shall hold an election in the manner provided by Subchapter L,
240226 Chapter 375, Local Government Code, to obtain voter approval before
241227 the district imposes a maintenance tax or issues bonds payable from
242228 ad valorem taxes.
243229 (b) The board may not include more than one purpose in a
244230 single proposition at an election.
245231 (c) Section 375.243, Local Government Code, does not apply
246232 to the district.
247- Sec. 3796.153. MAINTENANCE AND OPERATION TAX. (a) If
248- authorized at an election held in accordance with Section 3796.152,
233+ Sec. 3942.153. MAINTENANCE AND OPERATION TAX. (a) If
234+ authorized at an election held in accordance with Section 3942.152,
249235 the district may impose an annual ad valorem tax on taxable property
250236 in the district for the:
251237 (1) maintenance and operation of the district and the
252238 improvements constructed or acquired by the district; or
253239 (2) provision of a service.
254- (b) The board shall determine the tax rate. The rate may not
255- exceed the rate approved at the election.
256- Sec. 3796.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
240+ (b) The board shall determine the tax rate.
241+ Sec. 3942.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
257242 The board by resolution may impose an assessment for any purpose
258243 authorized by this chapter.
259244 (b) An assessment, a reassessment, or an assessment
260245 resulting from an addition to or correction of the assessment roll
261246 by the district, penalties and interest on an assessment or
262247 reassessment, an expense of collection, and reasonable attorney's
263248 fees incurred by the district:
264249 (1) are a first and prior lien against the property
265250 assessed;
266251 (2) are superior to any other lien or claim other than
267252 a lien or claim for county, school district, or municipal ad valorem
268253 taxes; and
269254 (3) are the personal liability of and a charge against
270255 the owners of the property even if the owners are not named in the
271256 assessment proceedings.
272257 (c) The lien is effective from the date of the board's
273258 resolution imposing the assessment until the date the assessment is
274259 paid. The board may enforce the lien in the same manner that the
275260 board may enforce an ad valorem tax lien against real property.
276261 (d) The board may make a correction to or deletion from the
277262 assessment roll that does not increase the amount of assessment of
278263 any parcel of land without providing notice and holding a hearing in
279264 the manner required for additional assessments.
280- Sec. 3796.155. PETITION REQUIRED FOR FINANCING SERVICES AND
265+ Sec. 3942.155. PETITION REQUIRED FOR FINANCING SERVICES AND
281266 IMPROVEMENTS. (a) The board may not finance a service or
282267 improvement project with assessments under this chapter unless a
283268 written petition requesting that service or improvement has been
284269 filed with the board.
285270 (b) The petition must be signed by the owners of a majority
286271 of the assessed value of real property in the district subject to
287272 assessment according to the most recent certified tax appraisal
288273 roll for the county.
289- Sec. 3796.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
274+ Sec. 3942.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
290275 ASSESSMENTS. The district may not impose an impact fee or
291276 assessment on the property, including the equipment,
292277 rights-of-way, facilities, or improvements, of:
293278 (1) an electric utility or a power generation company
294279 as defined by Section 31.002, Utilities Code;
295280 (2) a gas utility as defined by Section 101.003 or
296281 121.001, Utilities Code;
297282 (3) a telecommunications provider as defined by
298283 Section 51.002, Utilities Code; or
299284 (4) a person who provides to the public cable
300285 television or advanced telecommunications services.
301- Sec. 3796.157. BONDS AND OTHER OBLIGATIONS. (a) The
286+ Sec. 3942.157. BONDS AND OTHER OBLIGATIONS. (a) The
302287 district may issue bonds or other obligations payable wholly or
303288 partly from ad valorem taxes, assessments, impact fees, revenue,
304289 grants, or other money of the district, or any combination of those
305290 sources of money, to pay for any authorized purpose of the district.
306291 (b) In exercising the district's power to borrow, the
307292 district may issue a bond or other obligation in the form of a bond,
308293 note, certificate of participation or other instrument evidencing a
309294 proportionate interest in payments to be made by the district, or
310295 other type of obligation.
311- Sec. 3796.158. COUNTY NOT REQUIRED TO PAY DISTRICT
296+ Sec. 3942.158. COUNTY NOT REQUIRED TO PAY DISTRICT
312297 OBLIGATIONS. The county is not required to pay a bond, note, or
313298 other obligation of the district.
314- Sec. 3796.159. TAX AND ASSESSMENT ABATEMENTS. Without
299+ Sec. 3942.159. TAX AND ASSESSMENT ABATEMENTS. Without
315300 further authorization or other procedural requirement, the
316301 district may grant, consistent with Chapter 312, Tax Code, an
317302 abatement for a tax or assessment owed to the district.
318303 SUBCHAPTER E. DISSOLUTION
319- Sec. 3796.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
304+ Sec. 3942.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
320305 DEBT. (a) The board may vote to dissolve a district that has debt.
321306 If the vote is in favor of dissolution, the district shall remain in
322307 existence solely for the limited purpose of discharging its debts.
323308 The dissolution is effective when all debts have been discharged.
324- (b) Section 375.264, Local Government Code, does not apply
309+ (b) Section 383.121, Local Government Code, does not apply
325310 to the district.
326311 SECTION 2. The Bolivar Management District initially
327312 includes all the territory contained in the following area:
328313 Land lying and being situated in Galveston County, Texas, out
329314 of the Port Bolivar Townsite, Samuel Parr Survey, Abstract No. 162,
330315 Galveston County, Texas as follows:
331316 Block Lot(s)
332317 320 1-33
333318 345 13-24
334319 346 1-34
335320 Water Lots # 33 - 55 Lying North of Intracoastal Waterway.
336321 SECTION 3. (a) The legal notice of the intention to
337322 introduce this Act, setting forth the general substance of this
338323 Act, has been published as provided by law, and the notice and a
339324 copy of this Act have been furnished to all persons, agencies,
340325 officials, or entities to which they are required to be furnished
341326 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
342327 Government Code.
343328 (b) The governor, one of the required recipients, has
344329 submitted the notice and Act to the Texas Commission on
345330 Environmental Quality.
346331 (c) The Texas Commission on Environmental Quality has filed
347332 its recommendations relating to this Act with the governor,
348333 lieutenant governor, and speaker of the house of representatives
349334 within the required time.
350335 (d) The general law relating to consent by political
351336 subdivisions to the creation of districts with conservation,
352337 reclamation, and road powers and the inclusion of land in those
353338 districts has been complied with.
354339 (e) All requirements of the constitution and laws of this
355340 state and the rules and procedures of the legislature with respect
356341 to the notice, introduction, and passage of this Act have been
357342 fulfilled and accomplished.
358343 SECTION 4. This Act takes effect immediately if it receives
359344 a vote of two-thirds of all the members elected to each house, as
360345 provided by Section 39, Article III, Texas Constitution. If this
361346 Act does not receive the vote necessary for immediate effect, this
362347 Act takes effect September 1, 2017.
363348
364349 Pos. No. Name of Director
365350
366351 1 Robert Morgan
367352
368353 2 Justin Thompson
369354
370355 3 Tom Harrison
371356
372357 4 Brad Ballard
373358
374359 5 Ross Harrison