By: AnchÃa H.B. No. 5282
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Dallas 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 a new Chapter 3925 to read as follows:
CHAPTER . DALLAS 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 Dallas Municipal Management
District.
Sec. 3989.0102. NATURE OF DISTRICT. The Dallas 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 consisting of the members of the Dallas City
Council.
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. 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.
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. IMPROVEMENTS. (a) Notwithstanding any
other law, including Chapter 26, Parks and Wildlife Code, the
district may acquire, lease as lessor or lessee, construct,
develop, own, operate, and maintain any improvement, structure, or
facility for any use that accomplishes the purposes of this Act and
that otherwise complies with the City's zoning and land use
regulations.
(b) The sell or lease of any improvements or the sell or
lease of any air rights, regardless of the terms or lengths of said
conveyances are exempt from the provisions of Chapter 253, Local
Government Code,
Sec. 3989.0309. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board shall establish 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. (a) 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.
(b) Chapter 272, Local Government Code, does not apply to
the sell, lease, rental or conveyance of district 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, REGULATIONS, AND POWERS.
Notwithstanding any other law the district may:
(1) establish rules and regulations governing zoning
and land use in the district;
(2) establish rules and regulations to promote the use
of historically underutilized businesses for the provision of goods
and services in the district;
(3) establish rules and regulations to minimize the
effects of displacement and gentrification on nearby
neighborhoods; and
(4) establish rules and regulations to assist the
residents of nearby neighborhoods with home repair assistance and
property tax relief.
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 TOLL ROADS. The district may not
construct, acquire, maintain, or operate a toll road.
SUBCHAPTER D. ASSESSMENTS
Sec. 3989.0401. FINANCING SERVICES AND IMPROVEMENTS WITH
ASSESSMENTS. (a) The board may finance a service or improvement
project with assessments under this chapter.
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. REBATES, REFUNDS, AND PAYMENTS OF CERTAIN ELIGIBLE
TAX PROCEEDS
(a) For a period that may not exceed 10 years, a
governmental body, including a municipality, county, or political
subdivision, may agree to rebate, refund, or pay eligible taxable
proceeds to the district that were generated or received from
taxable entities within the district.
(b) An agreement under this section must be in writing,
contain an expiration date, and require the beneficiary to provide
documentation necessary to support a claim.
(c) A governmental body that makes an agreement under this
section shall make the rebate, refund, or payment directly to the
beneficiary.
(d) In this section, "eligible taxable proceeds" means
taxable proceeds generated, paid, or collected by any person or
business located within the district, including hotel occupancy
taxes, ad valorem taxes, sales and use taxes, and mixed beverage
taxes.
(e) Notwithstanding any other law, the comptroller shall
deposit eligible taxable proceeds that were collected by or
forwarded to the comptroller, and to which the district is entitled
according to an agreement under this section, in trust in a separate
suspense account of the project. A suspense account is outside the
state treasury, and the comptroller may make a rebate, refund, or
payment authorized by this section without the necessity of an
appropriation. The comptroller shall rebate, refund, or pay to
each qualified hotel project eligible taxable proceeds to which the
project is entitled under this section at least quarterly.
SUBCHAPTER G. EXPANSION OF DISTRICT
Sec. 3989.0601. The board may at any time by resolution add
land to the district that is contiguous to the district and owned by
the City of Dallas.
SUBCHAPTER H. DISSOLUTION
Sec. 3989.0901. DISSOLUTION. (a) The board by majority
vote may dissolve the district at any time.
(b) 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 ____. Sec. . INCREMENTAL STATE TAX REVENUE. (a)
In this section:
"Base year amount" means the amount of state tax revenue collected
in the district during the calendar year in which the board
designates a base year.
"Incremental state tax revenue" means the amount in any calendar
year by which state tax revenue generated within the district
exceeds the base year amount.
"State tax revenue" means the state sales and use taxes paid or
collected within the district pursuant to Chapter 151, Tax Code;
state hotel occupancy taxes paid or collected within the district
pursuant to Chapter 156, Tax Code; and tax revenue collected from
all permittees within the district under Chapter 183, Tax Code,
excluding revenue disbursed by the comptroller under Section
183.051(b), Tax Code.
(b) The board by resolution may designate a date to
establish a base year. The district shall receive a rebate, refund,
or payment of 100 percent of the incremental state tax revenue paid
or collected within the district for the first 30 years after the
year in which the board designates a base year. The comptroller
shall deposit the taxes in trust in a separate suspense account of
the district. A suspense account is outside the state treasury, and
the comptroller may make a rebate, refund, or payment authorized by
this section without the necessity of an appropriation. The
comptroller shall rebate, refund, or pay to the district all
eligible incremental state tax revenue to which the district is
entitled under this section at least quarterly.
(c) The board may pledge the revenue received under this
section for the payment of bonds or other obligations issued or
incurred to acquire, lease, construct, and equip hotels and any
facilities ancillary to the hotels, convention center
entertainment-related facilities, restaurants, retail
establishments, residential buildings, office buildings,
educational and community facilities, infrastructure necessary for
public transit, street and water and sewer infrastructure, sporting
and entertainment venues, and parking facilities within the
district.
SECTION ____. The Dallas Municipal Management District is a
noncontiguous district that initially includes all the territory
that, as of the effective date of this Act, is owned by the City of
Dallas and lies within the boundaries of the Dallas Zoo and Fair
Park.
SECTION ____. (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 ____. 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, 2023.