Texas 2017 - 85th Regular

Texas Senate Bill SB2269 Compare Versions

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1+85R17991 JCG-F
12 By: Creighton S.B. No. 2269
2- (In the Senate - Filed April 7, 2017; April 10, 2017, read
3- first time and referred to Committee on Intergovernmental
4- Relations; May 3, 2017, reported adversely, with favorable
5- Committee Substitute by the following vote: Yeas 6, Nays 0;
6- May 3, 2017, sent to printer.)
7-Click here to see the committee vote
8- COMMITTEE SUBSTITUTE FOR S.B. No. 2269 By: Garcia
93
104
115 A BILL TO BE ENTITLED
126 AN ACT
137 relating to creation of the Bolivar Management District; providing
148 authority to issue bonds; providing authority to impose
159 assessments, fees, and taxes.
1610 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1711 SECTION 1. Subtitle C, Title 4, Special District Local Laws
18- Code, is amended by adding Chapter 3796 to read as follows:
19- CHAPTER 3796. BOLIVAR MANAGEMENT DISTRICT
12+ Code, is amended by adding Chapter 3942 to read as follows:
13+ CHAPTER 3942. BOLIVAR MANAGEMENT DISTRICT
2014 SUBCHAPTER A. GENERAL PROVISIONS
21- Sec. 3796.001. DEFINITIONS. In this chapter:
15+ Sec. 3942.001. DEFINITIONS. In this chapter:
2216 (1) "Board" means the board of directors of the
2317 district.
2418 (2) "City" means the City of Galveston.
2519 (3) "County" means Galveston County.
2620 (4) "District" means the Bolivar Management District.
27- Sec. 3796.002. BOLIVAR MANAGEMENT DISTRICT. The Bolivar
21+ Sec. 3942.002. BOLIVAR MANAGEMENT DISTRICT. The Bolivar
2822 Management District is a special district created under Section 59,
2923 Article XVI, Texas Constitution.
30- Sec. 3796.003. PURPOSE; DECLARATION OF INTENT. (a) The
24+ Sec. 3942.003. PURPOSE; DECLARATION OF INTENT. (a) The
3125 creation of the district is essential to accomplish the purposes of
3226 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
3327 Texas Constitution, and other public purposes stated in this
3428 chapter. By creating the district and in authorizing the county and
3529 other political subdivisions to contract with the district, the
3630 legislature has established a program to accomplish the public
3731 purposes set out in Section 52-a, Article III, Texas Constitution.
3832 (b) The creation of the district is necessary to promote,
3933 develop, encourage, and maintain employment, commerce,
4034 transportation, housing, tourism, recreation, the arts,
4135 entertainment, economic development, safety, and the public
4236 welfare in the area of the district.
4337 (c) This chapter and the creation of the district may not be
4438 interpreted to relieve the county from providing the level of
4539 services provided, as of the effective date of the Act enacting this
4640 chapter, to the area in the district. The district is created to
4741 supplement and not to supplant the county services provided in the
4842 area in the district.
49- Sec. 3796.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
50- (a) The district is created to serve a public use and benefit.
43+ Sec. 3942.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
44+ The district is created to serve a public use and benefit.
5145 (b) All land and other property included in the district
5246 will benefit from the improvements and services to be provided by
5347 the district under powers conferred by Sections 52 and 52-a,
5448 Article III, and Section 59, Article XVI, Texas Constitution, and
5549 other powers granted under this chapter.
5650 (c) The creation of the district is in the public interest
5751 and is essential to:
5852 (1) further the public purposes of development and
5953 diversification of the economy of the state;
6054 (2) eliminate unemployment and underemployment; and
6155 (3) develop or expand transportation and commerce.
6256 (d) The district will:
6357 (1) promote the health, safety, and general welfare of
6458 residents, employers, employees, visitors, and consumers in the
6559 district, and of the public;
6660 (2) provide needed funding to preserve, maintain, and
6761 enhance the economic health and vitality of the district as a
6862 community and business center; and
6963 (3) promote the health, safety, welfare, and enjoyment
7064 of the public by providing pedestrian ways and by landscaping and
7165 developing certain areas in the district, which are necessary for
7266 the restoration, preservation, and enhancement of scenic beauty.
7367 (e) Pedestrian ways along or across a street, whether at
7468 grade or above or below the surface, and street lighting, street
7569 landscaping, and street art objects are parts of and necessary
7670 components of a street and are considered to be a street or road
7771 improvement.
7872 (f) The district will not act as the agent or
7973 instrumentality of any private interest even though the district
8074 will benefit many private interests, as well as the public.
81- Sec. 3796.005. DISTRICT TERRITORY. (a) The district is
82- initially composed of the territory described by Section 2 of the
83- 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.
8480 (b) The boundaries and field notes of the district contained
8581 in Section 2 of the Act enacting this chapter form a closure. A
8682 mistake made in the field notes or in copying the field notes in the
8783 legislative process does not in any way affect the district's:
8884 (1) organization, existence, or validity;
89- (2) right to issue any type of bonds, notes, or other
90- obligations for a purpose for which the district is created or to
91- pay the principal of and interest on the bonds, notes, or other
92- 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;
9388 (3) right to impose or collect an assessment or tax; or
9489 (4) legality or operation.
95- Sec. 3796.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
90+ Sec. 3942.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
9691 All or any part of the area of the district is eligible to be
9792 included in:
9893 (1) a tax increment reinvestment zone created under
9994 Chapter 311, Tax Code;
10095 (2) a tax abatement reinvestment zone created under
10196 Chapter 312, Tax Code; or
10297 (3) an enterprise zone created under Chapter 2303,
10398 Government Code.
104- Sec. 3796.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
99+ Sec. 3942.007. APPLICABILITY OF COUNTY DEVELOPMENT
105100 DISTRICTS LAW. Except as otherwise provided by this chapter,
106- Chapter 375, Local Government Code, applies to the district.
107- 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
108103 chapter shall be construed liberally in conformity with the
109104 findings and purposes stated in this chapter.
110105 SUBCHAPTER B. BOARD OF DIRECTORS
111- Sec. 3796.051. GOVERNING BODY; TERMS. (a) Except as
106+ Sec. 3942.051. GOVERNING BODY; TERMS. (a) Except as
112107 provided by Subsection (c), the district is governed by a board of
113- five directors appointed under Section 3796.052.
108+ five directors appointed under Section 3942.052.
114109 (b) Voting directors serve staggered terms of four years,
115110 with two or three directors' terms expiring June 1 of each
116111 odd-numbered year.
117112 (c) The board by resolution may increase or decrease the
118113 number of directors on the board if the board finds it is in the best
119114 interest of the district. The board may not consist of fewer than 5
120115 or more than 15 directors.
121- Sec. 3796.052. APPOINTMENT OF DIRECTORS. The governing
122- body of the county shall appoint the directors from a list of
123- persons recommended by the board.
124- Sec. 3796.053. CONFLICTS OF INTEREST. (a) Except as
125- provided by this section:
116+ Sec. 3942.052. APPOINTMENT OF DIRECTORS. The governing
117+ body of the county shall appoint the directors.
118+ Sec. 3942.053. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
119+ (a) Except as provided by this section:
126120 (1) a director may participate in all board votes and
127121 decisions; and
128122 (2) Chapter 171, Local Government Code, governs
129123 conflicts of interest for directors.
130- (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
131137 entity may not participate in the discussion of or vote on a matter
132138 regarding a contract with that public entity.
133- 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
134144 consists of the following directors:
135145 Pos. No. Name of Director Pos. No. Name of Director
136146 Pos. No. Name of Director
137147 1 Robert Morgan 1 Robert Morgan
138148 1 Robert Morgan
139149 2 Justin Thompson 2 Justin Thompson
140150 2 Justin Thompson
141151 3 Tom Harrison 3 Tom Harrison
142152 3 Tom Harrison
143153 4 Brad Ballard 4 Brad Ballard
144154 4 Brad Ballard
145155 5 Ross Harrison 5 Ross Harrison
146156 5 Ross Harrison
147157 (b) Of the initial directors, the terms of directors
148158 appointed for positions one and two expire June 1, 2019, and the
149159 terms of directors appointed for positions three through five
150160 expire June 1, 2021.
151- (c) Section 3796.052 does not apply to this section.
161+ (c) Section 3942.052 does not apply to this section.
152162 SUBCHAPTER C. POWERS AND DUTIES
153- Sec. 3796.101. GENERAL POWERS AND DUTIES. The district has
154- the powers and duties necessary to accomplish the purposes for
155- which the district is created.
156- Sec. 3796.102. IMPROVEMENT PROJECTS AND SERVICES. (a) The
157- district may provide, design, construct, acquire, improve,
158- relocate, operate, maintain, or finance an improvement project or
159- service using money available to the district, or contract with a
160- governmental or private entity to provide, design, construct,
161- acquire, improve, relocate, operate, maintain, or finance an
162- improvement project or service authorized under this chapter or
163- under Chapter 375, Local Government Code.
164- (b) An improvement project described by Subsection (a) may
165- be located inside or outside the district.
166- Sec. 3796.103. AUTHORITY FOR ROAD PROJECTS. Under Section
167- 52, Article III, Texas Constitution, the district may own, operate,
168- maintain, design, acquire, construct, finance, issue bonds, notes,
169- or other obligations for, improve, and convey to this state, a
170- county, or a municipality for ownership, operation, and maintenance
171- macadamized, graveled, or paved roads or improvements, including
172- storm drainage, in aid of those roads.
173- Sec. 3796.104. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
174- (a) The district may convey a road project authorized by Section
175- 3796.103 to:
176- (1) a municipality or county that will operate and
177- maintain the road if the municipality or county has approved the
178- plans and specifications of the road project; or
179- (2) the state if the state will operate and maintain
180- the road and the Texas Transportation Commission has approved the
181- plans and specifications of the road project.
182- (b) Except as provided by Subsection (c), the district shall
183- operate and maintain a road project authorized by Section 3796.103
184- that the district implements and does not convey to a municipality,
185- a county, or this state under Subsection (a).
186- (c) The district may agree in writing with a municipality, a
187- county, or this state to assign operation and maintenance duties to
188- the district, the municipality, the county, or this state in a
189- manner other than the manner described in Subsections (a) and (b).
190- Sec. 3796.105. DEVELOPMENT CORPORATION POWERS. The
191- district, using money available to the district, may exercise the
192- powers given to a development corporation under Chapter 505, Local
193- Government Code, including the power to own, operate, acquire,
194- construct, lease, improve, or maintain a project under that
195- chapter.
196- Sec. 3796.106. ADDITIONAL POWERS OF DISTRICT. The district
197- may exercise the powers given to a district governed by Subchapters
198- E and M, Chapter 60, Water Code, and Section 61.116, Water Code.
199- 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
200177 resolution may authorize the creation of a nonprofit corporation to
201178 assist and act for the district in implementing a project or
202179 providing a service authorized by this chapter.
203180 (b) The nonprofit corporation:
204181 (1) has each power of and is considered for purposes of
205182 this chapter to be a local government corporation created under
206- Subchapter D, Chapter 431, Transportation Code; and
183+ Chapter 431, Transportation Code; and
207184 (2) may implement any project and provide any service
208185 authorized by this chapter.
209186 (c) The board shall appoint the board of directors of the
210187 nonprofit corporation. The board of directors of the nonprofit
211188 corporation shall serve in the same manner as the board of directors
212- of a local government corporation created under Subchapter D,
213- Chapter 431, Transportation Code, except that a board member is not
214- required to reside in the district.
215- 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
216192 make an agreement with or accept a gift, grant, or loan from any
217193 person.
218194 (b) The implementation of a project is a governmental
219195 function or service for the purposes of Chapter 791, Government
220196 Code.
221- Sec. 3796.109. LAW ENFORCEMENT SERVICES. To protect the
197+ Sec. 3942.104. LAW ENFORCEMENT SERVICES. To protect the
222198 public interest, the district may contract with the county or the
223199 city to provide law enforcement services in the district for a fee.
224- Sec. 3796.110. COMPETITIVE BIDDING. Section 375.221, Local
200+ Sec. 3942.105. COMPETITIVE BIDDING. Section 375.221, Local
225201 Government Code, applies to the district, but only for a contract
226202 that has a value greater than $15,000.
227- Sec. 3796.111. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
228- district may join and pay dues to a charitable or nonprofit
229- organization that performs a service or provides an activity
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
230208 consistent with the furtherance of a district purpose.
231- Sec. 3796.112. ECONOMIC DEVELOPMENT PROGRAMS. The district
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
232213 may establish and provide for the administration of one or more
233214 programs to promote state or local economic development and to
234215 stimulate business and commercial activity in the district,
235216 including programs to:
236217 (1) make loans and grants of public money; and
237218 (2) provide district personnel and services.
238219 SUBCHAPTER D. FINANCIAL PROVISIONS
239- Sec. 3796.151. DISBURSEMENTS OR TRANSFERS OF MONEY. The
220+ Sec. 3942.151. DISBURSEMENTS OR TRANSFERS OF MONEY. The
240221 board by resolution shall establish the number of directors'
241222 signatures and the procedure required for a disbursement or
242223 transfer of the district's money.
243- Sec. 3796.152. TAX AND BOND ELECTIONS. (a) The district
224+ Sec. 3942.152. TAX AND BOND ELECTIONS. (a) The district
244225 shall hold an election in the manner provided by Subchapter L,
245226 Chapter 375, Local Government Code, to obtain voter approval before
246227 the district imposes a maintenance tax or issues bonds payable from
247228 ad valorem taxes.
248229 (b) The board may not include more than one purpose in a
249230 single proposition at an election.
250231 (c) Section 375.243, Local Government Code, does not apply
251232 to the district.
252- Sec. 3796.153. MAINTENANCE AND OPERATION TAX. (a) If
253- 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,
254235 the district may impose an annual ad valorem tax on taxable property
255236 in the district for the:
256237 (1) maintenance and operation of the district and the
257238 improvements constructed or acquired by the district; or
258239 (2) provision of a service.
259- (b) The board shall determine the tax rate. The rate may not
260- exceed the rate approved at the election.
261- Sec. 3796.154. ASSESSMENTS; LIENS FOR ASSESSMENTS.
262- (a) The board by resolution may impose an assessment for any
263- purpose authorized by this chapter.
240+ (b) The board shall determine the tax rate.
241+ Sec. 3942.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
242+ The board by resolution may impose an assessment for any purpose
243+ authorized by this chapter.
264244 (b) An assessment, a reassessment, or an assessment
265245 resulting from an addition to or correction of the assessment roll
266246 by the district, penalties and interest on an assessment or
267247 reassessment, an expense of collection, and reasonable attorney's
268248 fees incurred by the district:
269249 (1) are a first and prior lien against the property
270250 assessed;
271251 (2) are superior to any other lien or claim other than
272252 a lien or claim for county, school district, or municipal ad valorem
273253 taxes; and
274254 (3) are the personal liability of and a charge against
275255 the owners of the property even if the owners are not named in the
276256 assessment proceedings.
277257 (c) The lien is effective from the date of the board's
278258 resolution imposing the assessment until the date the assessment is
279259 paid. The board may enforce the lien in the same manner that the
280260 board may enforce an ad valorem tax lien against real property.
281261 (d) The board may make a correction to or deletion from the
282262 assessment roll that does not increase the amount of assessment of
283263 any parcel of land without providing notice and holding a hearing in
284264 the manner required for additional assessments.
285- Sec. 3796.155. PETITION REQUIRED FOR FINANCING SERVICES AND
265+ Sec. 3942.155. PETITION REQUIRED FOR FINANCING SERVICES AND
286266 IMPROVEMENTS. (a) The board may not finance a service or
287267 improvement project with assessments under this chapter unless a
288268 written petition requesting that service or improvement has been
289269 filed with the board.
290270 (b) The petition must be signed by the owners of a majority
291271 of the assessed value of real property in the district subject to
292272 assessment according to the most recent certified tax appraisal
293273 roll for the county.
294- Sec. 3796.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
274+ Sec. 3942.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
295275 ASSESSMENTS. The district may not impose an impact fee or
296276 assessment on the property, including the equipment,
297277 rights-of-way, facilities, or improvements, of:
298278 (1) an electric utility or a power generation company
299279 as defined by Section 31.002, Utilities Code;
300280 (2) a gas utility as defined by Section 101.003 or
301281 121.001, Utilities Code;
302282 (3) a telecommunications provider as defined by
303283 Section 51.002, Utilities Code; or
304284 (4) a person who provides to the public cable
305285 television or advanced telecommunications services.
306- Sec. 3796.157. BONDS AND OTHER OBLIGATIONS. (a) The
286+ Sec. 3942.157. BONDS AND OTHER OBLIGATIONS. (a) The
307287 district may issue bonds or other obligations payable wholly or
308288 partly from ad valorem taxes, assessments, impact fees, revenue,
309289 grants, or other money of the district, or any combination of those
310290 sources of money, to pay for any authorized purpose of the district.
311291 (b) In exercising the district's power to borrow, the
312292 district may issue a bond or other obligation in the form of a bond,
313293 note, certificate of participation or other instrument evidencing a
314294 proportionate interest in payments to be made by the district, or
315295 other type of obligation.
316- Sec. 3796.158. COUNTY NOT REQUIRED TO PAY DISTRICT
296+ Sec. 3942.158. COUNTY NOT REQUIRED TO PAY DISTRICT
317297 OBLIGATIONS. The county is not required to pay a bond, note, or
318298 other obligation of the district.
319- Sec. 3796.159. TAX AND ASSESSMENT ABATEMENTS. Without
299+ Sec. 3942.159. TAX AND ASSESSMENT ABATEMENTS. Without
320300 further authorization or other procedural requirement, the
321301 district may grant, consistent with Chapter 312, Tax Code, an
322302 abatement for a tax or assessment owed to the district.
323303 SUBCHAPTER E. DISSOLUTION
324- Sec. 3796.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
304+ Sec. 3942.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
325305 DEBT. (a) The board may vote to dissolve a district that has debt.
326306 If the vote is in favor of dissolution, the district shall remain in
327307 existence solely for the limited purpose of discharging its debts.
328308 The dissolution is effective when all debts have been discharged.
329- (b) Section 375.264, Local Government Code, does not apply
309+ (b) Section 383.121, Local Government Code, does not apply
330310 to the district.
331311 SECTION 2. The Bolivar Management District initially
332312 includes all the territory contained in the following area:
333313 Land lying and being situated in Galveston County, Texas, out
334314 of the Port Bolivar Townsite, Samuel Parr Survey, Abstract No. 162,
335315 Galveston County, Texas as follows:
336316 Block Lot(s)
337317 320 1-33
338318 345 13-24
339319 346 1-34
340320 Water Lots # 33 - 55 Lying North of Intracoastal Waterway.
341321 SECTION 3. (a) The legal notice of the intention to
342322 introduce this Act, setting forth the general substance of this
343323 Act, has been published as provided by law, and the notice and a
344324 copy of this Act have been furnished to all persons, agencies,
345325 officials, or entities to which they are required to be furnished
346326 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
347327 Government Code.
348328 (b) The governor, one of the required recipients, has
349329 submitted the notice and Act to the Texas Commission on
350330 Environmental Quality.
351331 (c) The Texas Commission on Environmental Quality has filed
352332 its recommendations relating to this Act with the governor,
353333 lieutenant governor, and speaker of the house of representatives
354334 within the required time.
355335 (d) The general law relating to consent by political
356336 subdivisions to the creation of districts with conservation,
357337 reclamation, and road powers and the inclusion of land in those
358338 districts has been complied with.
359339 (e) All requirements of the constitution and laws of this
360340 state and the rules and procedures of the legislature with respect
361341 to the notice, introduction, and passage of this Act have been
362342 fulfilled and accomplished.
363343 SECTION 4. This Act takes effect immediately if it receives
364344 a vote of two-thirds of all the members elected to each house, as
365345 provided by Section 39, Article III, Texas Constitution. If this
366346 Act does not receive the vote necessary for immediate effect, this
367347 Act takes effect September 1, 2017.
368- * * * * *
369348
370349 Pos. No. Name of Director
371350
372351 1 Robert Morgan
373352
374353 2 Justin Thompson
375354
376355 3 Tom Harrison
377356
378357 4 Brad Ballard
379358
380359 5 Ross Harrison