Texas 2023 - 88th Regular

Texas House Bill HB5282 Compare Versions

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1	1	By: Anchía H.B. No. 5282
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the creation of the Dallas Municipal Management
7	7	District; providing authority to issue bonds; providing authority
8	8	to impose assessments and fees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle C, Title 4, Special District Local Laws
11	11	Code, is amended by adding a new Chapter 3925 to read as follows:
12	12	CHAPTER . DALLAS MUNICIPAL MANAGEMENT DISTRICT
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 3989.0101. DEFINITIONS. In this chapter:
15	15	(1) "Board" means the district's board of directors.
16	16	(2) "City" means the City of Dallas.
17	17	(3) "Commission" means the Texas Commission on
18	18	Environmental Quality.
19	19	(4) "County" means Dallas County.
20	20	(5) "Director" means a board member.
21	21	(6) "District" means the Dallas Municipal Management
22	22	District.
23	23	Sec. 3989.0102. NATURE OF DISTRICT. The Dallas Municipal
24	24	Management District is a special district created under Section 59,
25	25	Article XVI, Texas Constitution.
26	26	Sec. 3989.0103. PURPOSE; DECLARATION OF INTENT. (a) The
27	27	creation of the district is essential to accomplish the purposes of
28	28	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
29	29	Texas Constitution, and other public purposes stated in this
30	30	chapter.
31	31	(b) By creating the district and in authorizing the city and
32	32	other political subdivisions to contract with the district, the
33	33	legislature has established a program to accomplish the public
34	34	purposes set out in Section 52-a, Article III, Texas Constitution.
35	35	(c) The creation of the district is necessary to promote,
36	36	develop, encourage, and maintain employment, commerce,
37	37	transportation, housing, tourism, recreation, the arts,
38	38	entertainment, economic development, safety, and the public
39	39	welfare in the district.
40	40	(d) This chapter and the creation of the district may not be
41	41	interpreted to relieve the county or the city from providing the
42	42	level of services provided as of the effective date of the Act
43	43	enacting this chapter to the area in the district. The district is
44	44	created to supplement and not to supplant county or city services
45	45	provided in the district.
46	46	Sec. 3989.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
47	47	(a) All land and other property included in the district will
48	48	benefit from the improvements and services to be provided by the
49	49	district under powers conferred by Sections 52 and 52-a, Article
50	50	III, and Section 59, Article XVI, Texas Constitution, and other
51	51	powers granted under this chapter.
52	52	(b) The district is created to serve a public use and
53	53	benefit.
54	54	(c) The creation of the district is in the public interest
55	55	and is essential to further the public purposes of:
56	56	(1) developing and diversifying the economy of the
57	57	state;
58	58	(2) eliminating unemployment and underemployment;
59	59	(3) developing or expanding transportation and
60	60	commerce;
61	61	(4) eliminating homelessness and establishing a means
62	62	to address related social, medical, or mental health needs; and
63	63	(5) preventing dislocation of residents and providing
64	64	affordable housing.
65	65	(d) The district will:
66	66	(1) promote the health, safety, and general welfare of
67	67	residents, employers, potential employees, employees, visitors,
68	68	and consumers in the district, and of the public;
69	69	(2) provide needed funding for the district to
70	70	preserve, maintain, and enhance the economic health and vitality of
71	71	the district territory as a community and business center; and
72	72	(3) promote the health, safety, welfare, and enjoyment
73	73	of the public by providing pedestrian ways and by landscaping and
74	74	developing certain areas in the district, which are necessary for
75	75	the restoration, preservation, and enhancement of scenic beauty.
76	76	(e) Pedestrian ways along or across a street, whether at
77	77	grade or above or below the surface, and street lighting, street
78	78	landscaping, parking, and street art objects are parts of and
79	79	necessary components of a street and are considered to be a street
80	80	or road improvement.
81	81	(f) The district will not act as the agent or
82	82	instrumentality of any private interest even though the district
83	83	will benefit many private interests as well as the public.
84	84	Sec. 3989.0105. INITIAL DISTRICT TERRITORY. The district
85	85	is initially composed of the territory described by Section 2 of the
86	86	Act enacting this chapter.
87	87	Sec. 3989.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
88	88	(a) All or any part of the area of the district is eligible to be
89	89	included in:
90	90	(1) a tax increment reinvestment zone created under
91	91	Chapter 311, Tax Code;
92	92	(2) a tax abatement reinvestment zone created under
93	93	Chapter 312, Tax Code; or
94	94	(3) an enterprise zone created under Chapter 2303,
95	95	Government Code.
96	96	(b) If the city creates a tax increment reinvestment zone
97	97	described by Subsection (a), the city and the board of directors of
98	98	the zone, by contract with the district, may grant money deposited
99	99	in the tax increment fund to the district to be used by the district
100	100	for the purposes permitted for money granted to a corporation under
101	101	Section 380.002(b), Local Government Code, including the right to
102	102	pledge the money as security for any bonds issued by the district
103	103	for an improvement project.
104	104	Sec. 3989.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
105	105	DISTRICTS LAW. Except as otherwise provided by this chapter,
106	106	Chapter 375, Local Government Code, applies to the district.
107	107	Sec. 3989.0108. CONSTRUCTION OF CHAPTER. This chapter
108	108	shall be liberally construed in conformity with the findings and
109	109	purposes stated in this chapter.
110	110	SUBCHAPTER B. BOARD OF DIRECTORS
111	111	Sec. 3989.0201. BOARD OF DIRECTORS; TERMS. The district is
112	112	governed by a board consisting of the members of the Dallas City
113	113	Council.
114	114	SUBCHAPTER C. POWERS AND DUTIES
115	115	Sec. 3989.0301. GENERAL POWERS AND DUTIES. (a) The
116	116	district has the powers and duties necessary to accomplish the
117	117	purposes for which the district is created.
118	118	(b) The district shall adopt a comprehensive plan for
119	119	accomplishing the purposes of the district.
120	120	Sec. 3989.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
121	121	The district, using any money available to the district for the
122	122	purpose, may provide, design, construct, acquire, improve,
123	123	relocate, operate, maintain, or finance an improvement project or
124	124	service authorized under this chapter or Chapter 375, Local
125	125	Government Code.
126	126	(b) The district may contract with a governmental or private
127	127	entity to carry out an action under Subsection (a).
128	128	(c) The implementation of a district project or service is a
129	129	governmental function or service for the purposes of Chapter 791,
130	130	Government Code.
131	131	Sec. 3989.0303. NONPROFIT CORPORATION. The board by
132	132	resolution may authorize the creation of a nonprofit corporation to
133	133	assist and act for the district in implementing a project or
134	134	providing a service authorized by this chapter.
135	135	Sec. 3989.0304. LAW ENFORCEMENT SERVICES. To protect the
136	136	public interest, the district may contract with a qualified party,
137	137	including the county or the city, to provide law enforcement
138	138	services in the district for a fee.
139	139	Sec. 3989.0305. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
140	140	The district may join and pay dues to a charitable or nonprofit
141	141	organization that performs a service or provides an activity
142	142	consistent with the furtherance of a district purpose.
143	143	Sec. 3989.0306. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
144	144	district may engage in activities that accomplish the economic
145	145	development purposes of the district.
146	146	(b) The district may establish and provide for the
147	147	administration of one or more programs to promote state or local
148	148	economic development and to stimulate business and commercial
149	149	activity in the district, including programs to:
150	150	(1) make loans and grants of public money; and
151	151	(2) provide district personnel and services.
152	152	(c) The district may create economic development programs
153	153	and exercise the economic development powers provided to
154	154	municipalities by:
155	155	(1) Chapter 380, Local Government Code; and
156	156	(2) Subchapter A, Chapter 1509, Government Code.
157	157	Sec. 3989.0307. IMPROVEMENTS. (a) Notwithstanding any
158	158	other law, including Chapter 26, Parks and Wildlife Code, the
159	159	district may acquire, lease as lessor or lessee, construct,
160	160	develop, own, operate, and maintain any improvement, structure, or
161	161	facility for any use that accomplishes the purposes of this Act and
162	162	that otherwise complies with the City's zoning and land use
163	163	regulations.
164	164	(b) The sell or lease of any improvements or the sell or
165	165	lease of any air rights, regardless of the terms or lengths of said
166	166	conveyances are exempt from the provisions of Chapter 253, Local
167	167	Government Code,
168	168	Sec. 3989.0309. DISBURSEMENTS AND TRANSFERS OF MONEY. The
169	169	board shall establish the procedure required for a disbursement or
170	170	transfer of district money.
171	171	Sec. 3989.0310. PUBLIC IMPROVEMENT DISTRICT POWERS. The
172	172	district has the powers provided by Chapter 372, Local Government
173	173	Code, to a municipality or county.
174	174	Sec. 3989.0311. RATES, FEES, AND CHARGES. (a) The district
175	175	may establish, revise, repeal, enforce, and collect rates, fees,
176	176	and charges for the enjoyment, sale, rental, or other use of:
177	177	(1) an improvement project;
178	178	(2) a product resulting from an improvement project;
179	179	or
180	180	(3) another district facility, service, or property.
181	181	(b) Chapter 272, Local Government Code, does not apply to
182	182	the sell, lease, rental or conveyance of district property.
183	183	Sec. 3989.0312. BOARD DETERMINATION REQUIRED. The district
184	184	may not undertake an improvement project unless the board
185	185	determines the project is necessary to accomplish a public purpose
186	186	of the district.
187	187	Sec. 3989.0313. LOCATION OF IMPROVEMENT PROJECT. An
188	188	improvement project may be located or provide service inside or
189	189	outside the district.
190	190	Sec. 3989.0314. CITY REQUIREMENTS. An improvement project
191	191	in the district must comply with any applicable requirements of the
192	192	city, including codes and ordinances, unless specifically waived or
193	193	superseded by agreement with the city.
194	194	Sec. 3989.0315. RULES, REGULATIONS, AND POWERS.
195	195	Notwithstanding any other law the district may:
196	196	(1) establish rules and regulations governing zoning
197	197	and land use in the district;
198	198	(2) establish rules and regulations to promote the use
199	199	of historically underutilized businesses for the provision of goods
200	200	and services in the district;
201	201	(3) establish rules and regulations to minimize the
202	202	effects of displacement and gentrification on nearby
203	203	neighborhoods; and
204	204	(4) establish rules and regulations to assist the
205	205	residents of nearby neighborhoods with home repair assistance and
206	206	property tax relief.
207	207	Sec. 3989.0316. ENFORCEMENT OF REAL PROPERTY RESTRICTIONS.
208	208	The district may enforce a real property restriction in the manner
209	209	provided by Section 54.237, Water Code, if, in the reasonable
210	210	judgment of the board, the enforcement of the restriction is
211	211	necessary.
212	212	Sec. 3989.0317. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
213	213	ASSESSMENTS AND FEES. The district may not impose an assessment,
214	214	impact fee, or standby fee on the property, including the
215	215	equipment, rights-of-way, easements, facilities, or improvements,
216	216	of:
217	217	(1) an electric utility or a power generation company
218	218	as defined by Section 31.002, Utilities Code;
219	219	(2) a gas utility, as defined by Section 101.003 or
220	220	121.001, Utilities Code, or a person who owns pipelines used for the
221	221	transportation or sale of oil or gas or a product or constituent of
222	222	oil or gas;
223	223	(3) a person who owns pipelines used for the
224	224	transportation or sale of carbon dioxide;
225	225	(4) a telecommunications provider as defined by
226	226	Section 51.002, Utilities Code; or
227	227	(5) a cable service provider or video service provider
228	228	as defined by Section 66.002, Utilities Code.
229	229	Sec. 3989.0318. NO TOLL ROADS. The district may not
230	230	construct, acquire, maintain, or operate a toll road.
231	231	SUBCHAPTER D. ASSESSMENTS
232	232	Sec. 3989.0401. FINANCING SERVICES AND IMPROVEMENTS WITH
233	233	ASSESSMENTS. (a) The board may finance a service or improvement
234	234	project with assessments under this chapter.
235	235	Sec. 3989.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
236	236	The board by resolution may impose and collect an assessment for any
237	237	purpose authorized by this chapter in all or any part of the
238	238	district.
239	239	(b) An assessment, a reassessment, or an assessment
240	240	resulting from an addition to or correction of the assessment roll
241	241	by the district, penalties and interest on an assessment or
242	242	reassessment, an expense of collection, and reasonable attorney's
243	243	fees incurred by the district:
244	244	(1) are a first and prior lien against the property
245	245	assessed;
246	246	(2) are superior to any other lien or claim other than
247	247	a lien or claim for county, school district, or municipal ad valorem
248	248	taxes; and
249	249	(3) are the personal liability of and a charge against
250	250	the owners of the property even if the owners are not named in the
251	251	assessment proceedings.
252	252	(c) The lien is effective from the date of the board's
253	253	resolution imposing the assessment until the date the assessment is
254	254	paid. The board may enforce the lien in the same manner that the
255	255	board would enforce an ad valorem tax lien against real property if
256	256	the board were authorized to impose an ad valorem tax.
257	257	(d) The board may make a correction to or deletion from the
258	258	assessment roll that does not increase the amount of assessment of
259	259	any parcel of land without providing notice and holding a hearing in
260	260	the manner required for additional assessments.
261	261	Sec. 3989.0403. RESIDENTIAL PROPERTY NOT EXEMPT. Sections
262	262	375.161 and 375.164, Local Government Code, do not apply to the
263	263	district.
264	264	Sec. 3989.0404. COLLECTION OF ASSESSMENTS. The district
265	265	may contract as provided by Chapter 791, Government Code, with the
266	266	commissioners court of the county for the assessment and collection
267	267	of assessments imposed under this subchapter.
268	268	SUBCHAPTER E. BONDS
269	269	Sec. 3989.0501. AUTHORITY TO BORROW MONEY AND TO ISSUE
270	270	BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
271	271	terms determined by the board.
272	272	(b) The district may issue, by public or private sale,
273	273	bonds, notes, or other obligations payable wholly or partly from
274	274	assessments, impact fees, revenue, contract payments, grants, or
275	275	other district money, or any combination of those sources of money,
276	276	to pay for any authorized district purpose.
277	277	(c) The district may issue, by public or private sale,
278	278	bonds, notes, or other obligations payable wholly or partly from
279	279	assessments in the manner provided by Subchapter A, Chapter 372,
280	280	Local Government Code, if the improvement financed by an obligation
281	281	issued under this section will be conveyed to or operated and
282	282	maintained by a municipality or other retail utility provider
283	283	pursuant to an agreement with the district entered into before the
284	284	issuance of the obligation.
285	285	SUBCHAPTER F. REBATES, REFUNDS, AND PAYMENTS OF CERTAIN ELIGIBLE
286	286	TAX PROCEEDS
287	287	(a) For a period that may not exceed 10 years, a
288	288	governmental body, including a municipality, county, or political
289	289	subdivision, may agree to rebate, refund, or pay eligible taxable
290	290	proceeds to the district that were generated or received from
291	291	taxable entities within the district.
292	292	(b) An agreement under this section must be in writing,
293	293	contain an expiration date, and require the beneficiary to provide
294	294	documentation necessary to support a claim.
295	295	(c) A governmental body that makes an agreement under this
296	296	section shall make the rebate, refund, or payment directly to the
297	297	beneficiary.
298	298	(d) In this section, "eligible taxable proceeds" means
299	299	taxable proceeds generated, paid, or collected by any person or
300	300	business located within the district, including hotel occupancy
301	301	taxes, ad valorem taxes, sales and use taxes, and mixed beverage
302	302	taxes.
303	303	(e) Notwithstanding any other law, the comptroller shall
304	304	deposit eligible taxable proceeds that were collected by or
305	305	forwarded to the comptroller, and to which the district is entitled
306	306	according to an agreement under this section, in trust in a separate
307	307	suspense account of the project. A suspense account is outside the
308	308	state treasury, and the comptroller may make a rebate, refund, or
309	309	payment authorized by this section without the necessity of an
310	310	appropriation. The comptroller shall rebate, refund, or pay to
311	311	each qualified hotel project eligible taxable proceeds to which the
312	312	project is entitled under this section at least quarterly.
313	313	SUBCHAPTER G. EXPANSION OF DISTRICT
314	314	Sec. 3989.0601. The board may at any time by resolution add
315	315	land to the district that is contiguous to the district and owned by
316	316	the City of Dallas.
317	317	SUBCHAPTER H. DISSOLUTION
318	318	Sec. 3989.0901. DISSOLUTION. (a) The board by majority
319	319	vote may dissolve the district at any time.
320	320	(b) The district may not be dissolved by its board under
321	321	Subsection (a) or (b) if the district:
322	322	(1) has any outstanding bonded indebtedness until that
323	323	bonded indebtedness has been repaid or defeased in accordance with
324	324	the order or resolution authorizing the issuance of the bonds;
325	325	(2) has a contractual obligation to pay money until
326	326	that obligation has been fully paid in accordance with the
327	327	contract; or
328	328	(3) owns, operates, or maintains public works,
329	329	facilities, or improvements unless the district contracts with
330	330	another person for the ownership, operation, or maintenance of the
331	331	public works, facilities, or improvements.
332	332	(d) Sections 375.261, 375.262, and 375.264, Local
333	333	Government Code, do not apply to the district.
334	334	(e) The city is not liable for district debts or obligations
335	335	following dissolution under this subchapter.
336	336	SECTION ____. Sec. . INCREMENTAL STATE TAX REVENUE. (a)
337	337	In this section:
338	338	"Base year amount" means the amount of state tax revenue collected
339	339	in the district during the calendar year in which the board
340	340	designates a base year.
341	341	"Incremental state tax revenue" means the amount in any calendar
342	342	year by which state tax revenue generated within the district
343	343	exceeds the base year amount.
344	344	"State tax revenue" means the state sales and use taxes paid or
345	345	collected within the district pursuant to Chapter 151, Tax Code;
346	346	state hotel occupancy taxes paid or collected within the district
347	347	pursuant to Chapter 156, Tax Code; and tax revenue collected from
348	348	all permittees within the district under Chapter 183, Tax Code,
349	349	excluding revenue disbursed by the comptroller under Section
350	350	183.051(b), Tax Code.
351	351	(b) The board by resolution may designate a date to
352	352	establish a base year. The district shall receive a rebate, refund,
353	353	or payment of 100 percent of the incremental state tax revenue paid
354	354	or collected within the district for the first 30 years after the
355	355	year in which the board designates a base year. The comptroller
356	356	shall deposit the taxes in trust in a separate suspense account of
357	357	the district. A suspense account is outside the state treasury, and
358	358	the comptroller may make a rebate, refund, or payment authorized by
359	359	this section without the necessity of an appropriation. The
360	360	comptroller shall rebate, refund, or pay to the district all
361	361	eligible incremental state tax revenue to which the district is
362	362	entitled under this section at least quarterly.
363	363	(c) The board may pledge the revenue received under this
364	364	section for the payment of bonds or other obligations issued or
365	365	incurred to acquire, lease, construct, and equip hotels and any
366	366	facilities ancillary to the hotels, convention center
367	367	entertainment-related facilities, restaurants, retail
368	368	establishments, residential buildings, office buildings,
369	369	educational and community facilities, infrastructure necessary for
370	370	public transit, street and water and sewer infrastructure, sporting
371	371	and entertainment venues, and parking facilities within the
372	372	district.
373	373	SECTION ____. The Dallas Municipal Management District is a
374	374	noncontiguous district that initially includes all the territory
375	375	that, as of the effective date of this Act, is owned by the City of
376	376	Dallas and lies within the boundaries of the Dallas Zoo and Fair
377	377	Park.
378	378	SECTION ____. (a) The legal notice of the intention to
379	379	introduce this Act, setting forth the general substance of this
380	380	Act, has been published as provided by law, and the notice and a
381	381	copy of this Act have been furnished to all persons, agencies,
382	382	officials, or entities to which they are required to be furnished
383	383	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
384	384	Government Code.
385	385	(b) The governor, one of the required recipients, has
386	386	submitted the notice and Act to the Texas Commission on
387	387	Environmental Quality.
388	388	(c) The Texas Commission on Environmental Quality has filed
389	389	its recommendations relating to this Act with the governor,
390	390	lieutenant governor, and speaker of the house of representatives
391	391	within the required time.
392	392	(d) All requirements of the constitution and laws of this
393	393	state and the rules and procedures of the legislature with respect
394	394	to the notice, introduction, and passage of this Act have been
395	395	fulfilled and accomplished.
396	396	SECTION ____. This Act takes effect immediately if it
397	397	receives a vote of two-thirds of all the members elected to each
398	398	house, as provided by Section 39, Article III, Texas Constitution.
399	399	If this Act does not receive the vote necessary for immediate
400	400	effect, this Act takes effect September 1, 2023.