86R24330 SMT-F
By: Davis of Dallas H.B. No. 4750
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Trinity Municipal Management
District; providing authority to issue bonds; providing authority
to impose assessments and fees.
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 3989 to read as follows:
CHAPTER 3989. TRINITY MUNICIPAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3989.0101. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Dallas.
(3) "Commission" means the Texas Commission on
Environmental Quality.
(4) "County" means Dallas County.
(5) "Director" means a board member.
(6) "District" means the Trinity Municipal Management
District.
Sec. 3989.0102. NATURE OF DISTRICT. The Trinity Municipal
Management District is a special district created under Section 59,
Article XVI, Texas Constitution.
Sec. 3989.0103. 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.
(b) By creating the district and in authorizing the city 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.
(c) 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 district.
(d) This chapter and the creation of the district may not be
interpreted to relieve the county or the city 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 county or city services
provided in the district.
Sec. 3989.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) 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.
(b) The district is created to serve a public use and
benefit.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment;
(3) developing or expanding transportation and
commerce;
(4) eliminating homelessness and establishing a means
to address related social, medical, or mental health needs; and
(5) preventing dislocation of residents and providing
affordable housing.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways 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, parking, 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. 3989.0105. INITIAL DISTRICT TERRITORY. The district
is initially composed of the territory described by Section 2 of the
Act enacting this chapter.
Sec. 3989.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
(a) 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.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city and the board of directors of
the zone, by contract with the district, may grant money deposited
in the tax increment fund to the district to be used by the district
for the purposes permitted for money granted to a corporation under
Section 380.002(b), Local Government Code, including the right to
pledge the money as security for any bonds issued by the district
for an improvement project.
Sec. 3989.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3989.0108. CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3989.0201. BOARD OF DIRECTORS; TERMS. The district is
governed by a board of five directors who serve staggered terms of
four years, with two or three directors' terms expiring on June 1st
of each even-numbered year.
Sec. 3989.0202. APPOINTMENT OF BOARD. Directors are
appointed by the mayor of the city.
Sec. 3989.0203. INITIAL DIRECTORS. (a) Notwithstanding
Sections 3989.0201 and 3989.0202, the initial board consists of the
14 elected representatives serving on the city council of the city
on the effective date of the Act enacting this chapter. The initial
directors serve until the earlier of:
(1) June 1, 2020; or
(2) the date directors are appointed for new districts
created by a division of the district under Subchapter F.
(b) Notwithstanding Section 3989.0201, the mayor shall
designate two directors who succeed initial directors under
Subsection (a)(1) to serve two-year terms.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3989.0301. GENERAL POWERS AND DUTIES. (a) The
district has the powers and duties necessary to accomplish the
purposes for which the district is created.
(b) The district shall adopt a comprehensive plan for
accomplishing the purposes of the district.
Sec. 3989.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) The
district, using any money available to the district for the
purpose, may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service authorized under this chapter or Chapter 375, Local
Government Code.
(b) The district may contract with a governmental or private
entity to carry out an action under Subsection (a).
(c) The implementation of a district project or service is a
governmental function or service for the purposes of Chapter 791,
Government Code.
Sec. 3989.0303. 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 to be a local
government corporation created under Subchapter D, 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 Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 3989.0304. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or the city, to provide law enforcement
services in the district for a fee.
Sec. 3989.0305. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
The district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3989.0306. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
district may engage in activities that accomplish the economic
development purposes of the district.
(b) 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.
(c) The district may create economic development programs
and exercise the economic development powers provided to
municipalities by:
(1) Chapter 380, Local Government Code; and
(2) Subchapter A, Chapter 1509, Government Code.
Sec. 3989.0307. PARKING FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain parking facilities or a system of parking
facilities, including lots, garages, parking terminals, or other
structures or accommodations for parking motor vehicles off the
streets and related appurtenances.
(b) The district's parking facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c) The district's parking facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(d) The development and operation of the district's parking
facilities may be considered an economic development program.
Sec. 3989.0308. ADDING OR EXCLUDING LAND. The district may
add or exclude land in the manner provided by Subchapter J, Chapter
49, Water Code, or by Subchapter H, Chapter 54, Water Code.
Sec. 3989.0309. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 3989.0310. PUBLIC IMPROVEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 372, Local Government
Code, to a municipality or county.
Sec. 3989.0311. RATES, FEES, AND CHARGES. The district may
establish, revise, repeal, enforce, and collect rates, fees, and
charges for the enjoyment, sale, rental, or other use of:
(1) an improvement project;
(2) a product resulting from an improvement project;
or
(3) another district facility, service, or property.
Sec. 3989.0312. BOARD DETERMINATION REQUIRED. The district
may not undertake an improvement project unless the board
determines the project is necessary to accomplish a public purpose
of the district.
Sec. 3989.0313. LOCATION OF IMPROVEMENT PROJECT. An
improvement project may be located or provide service inside or
outside the district.
Sec. 3989.0314. CITY REQUIREMENTS. An improvement project
in the district must comply with any applicable requirements of the
city, including codes and ordinances, unless specifically waived or
superseded by agreement with the city.
Sec. 3989.0315. RULES AND REGULATIONS. Notwithstanding any
other law, with the approval of the city as provided by a resolution
or ordinance, the district may:
(1) establish rules and regulations governing zoning
and land use in the district; and
(2) establish rules and regulations to promote the use
of historically underutilized businesses for the provision of goods
and services in the district.
Sec. 3989.0316. ENFORCEMENT OF REAL PROPERTY RESTRICTIONS.
The district may enforce a real property restriction in the manner
provided by Section 54.237, Water Code, if, in the reasonable
judgment of the board, the enforcement of the restriction is
necessary.
Sec. 3989.0317. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
ASSESSMENTS AND FEES. The district may not impose an assessment,
impact fee, or standby fee on the property, including the
equipment, rights-of-way, easements, 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, or a person who owns pipelines used for the
transportation or sale of oil or gas or a product or constituent of
oil or gas;
(3) a person who owns pipelines used for the
transportation or sale of carbon dioxide;
(4) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(5) a cable service provider or video service provider
as defined by Section 66.002, Utilities Code.
Sec. 3989.0318. NO AD VALOREM TAX. The district may not
impose an ad valorem tax.
Sec. 3989.0319. NO TOLL ROADS. The district may not
construct, acquire, maintain, or operate a toll road.
Sec. 3989.0320. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. ASSESSMENTS
Sec. 3989.0401. PETITION REQUIRED FOR FINANCING SERVICES
AND IMPROVEMENTS WITH ASSESSMENTS. (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) A petition filed under Subsection (a) 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. 3989.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(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 would enforce an ad valorem tax lien against real property if
the board were authorized to impose an ad valorem tax.
(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. 3989.0403. RESIDENTIAL PROPERTY NOT EXEMPT. Sections
375.161 and 375.164, Local Government Code, do not apply to the
district.
Sec. 3989.0404. COLLECTION OF ASSESSMENTS. The district
may contract as provided by Chapter 791, Government Code, with the
commissioners court of the county for the assessment and collection
of assessments imposed under this subchapter.
SUBCHAPTER E. BONDS
Sec. 3989.0501. AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
terms determined by the board.
(b) The district may issue, by public or private sale,
bonds, notes, or other obligations payable wholly or partly from
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
(c) The district may issue, by public or private sale,
bonds, notes, or other obligations payable wholly or partly from
assessments in the manner provided by Subchapter A, Chapter 372,
Local Government Code, if the improvement financed by an obligation
issued under this section will be conveyed to or operated and
maintained by a municipality or other retail utility provider
pursuant to an agreement with the district entered into before the
issuance of the obligation.
SUBCHAPTER F. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS
Sec. 3989.0601. DIVISION OF DISTRICT; PREREQUISITES. The
district may be divided into two or more new districts.
Sec. 3989.0602. LAW APPLICABLE TO NEW DISTRICT. This
chapter applies to any new district created by division of the
district, and a new district has all the powers and duties of the
district.
Sec. 3989.0603. LIMITATION ON AREA OF NEW DISTRICT. A new
district created by the division of the district may not, at the
time the new district is created, contain any land outside the area
described by Section 2 of the Act enacting this chapter.
Sec. 3989.0604. DIVISION PROCEDURES. (a) The board may
adopt an order dividing the district.
(b) An order dividing the district must:
(1) name each new district;
(2) include a description of the territory of each new
district;
(3) include the names of directors for each new
district appointed by the mayor of the city; and
(4) provide for the division of assets and liabilities
between the new districts.
(c) Not later than the 30th day after the date the board
adopts an order dividing the district into two or more new
districts, the mayor of the city shall appoint directors for each
new district. The mayor shall designate two directors appointed
under this subsection to serve two-year terms.
(d) On or before the 30th day after the date of adoption of
an order dividing the district, the district shall file the order
with the commission and record the order in the real property
records of each county in which the district is located.
SUBCHAPTER I. DISSOLUTION
Sec. 3989.0901. DISSOLUTION. (a) The board shall dissolve
the district on written petition filed with the board by the owners
of:
(1) 66 percent or more of the assessed value of the
property subject to assessment by the district based on the most
recent certified county property tax rolls; or
(2) 66 percent or more of the surface area of the
district, excluding roads, streets, highways, utility
rights-of-way, other public areas, and other property exempt from
assessment by the district according to the most recent certified
county property tax rolls.
(b) The board by majority vote may dissolve the district at
any time.
(c) The district may not be dissolved by its board under
Subsection (a) or (b) if the district:
(1) has any outstanding bonded indebtedness until that
bonded indebtedness has been repaid or defeased in accordance with
the order or resolution authorizing the issuance of the bonds;
(2) has a contractual obligation to pay money until
that obligation has been fully paid in accordance with the
contract; or
(3) owns, operates, or maintains public works,
facilities, or improvements unless the district contracts with
another person for the ownership, operation, or maintenance of the
public works, facilities, or improvements.
(d) Sections 375.261, 375.262, and 375.264, Local
Government Code, do not apply to the district.
(e) The city is not liable for district debts or obligations
following dissolution under this subchapter.
SECTION 2. The Trinity Municipal Management District
initially includes all the territory that, as of the effective date
of this Act, is:
(1) in the corporate limits of Dallas, Texas; and
(2) included in a population census tract that is:
(A) a qualified opportunity zone as defined by
Section 1400Z-1, Internal Revenue Code of 1986; and
(B) designated an opportunity zone by the
governor.
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) 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, 2019.