Texas 2023 - 88th Regular

Texas House Bill HB5399 Compare Versions

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Version 2 (New)

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1	1	H.B. No. 5399
2	2
3	3
4	4	relating to the creation of the Jones Avenue Municipal Management
5	5	District; providing authority to issue bonds; providing authority
6	6	to impose assessments, fees, and taxes.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Subtitle C, Title 4, Special District Local Laws
9	9	Code, is amended by adding Chapter 4007 to read as follows:
10	10	CHAPTER 4007. JONES AVENUE MUNICIPAL MANAGEMENT DISTRICT
11	11	SUBCHAPTER A. GENERAL PROVISIONS
12	12	Sec. 4007.0101. DEFINITIONS. In this chapter:
13	13	(1) "Board" means the district's board of directors.
14	14	(2) "City" means the City of San Antonio.
15	15	(3) "County" means Bexar County.
16	16	(4) "Director" means a board member.
17	17	(5) "District" means the Jones Avenue Municipal
18	18	Management District.
19	19	Sec. 4007.0102. NATURE OF DISTRICT. The Jones Avenue
20	20	Municipal Management District is a special district created under
21	21	Section 59, Article XVI, Texas Constitution.
22	22	Sec. 4007.0103. PURPOSE; DECLARATION OF INTENT. (a) The
23	23	creation of the district is essential to accomplish the purposes of
24	24	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
25	25	Texas Constitution, and other public purposes stated in this
26	26	chapter.
27	27	(b) By creating the district and in authorizing the county,
28	28	the city, and other political subdivisions to contract with the
29	29	district, the legislature has established a program to accomplish
30	30	the public purposes set out in Section 52-a, Article III, Texas
31	31	Constitution.
32	32	(c) The creation of the district is necessary to promote,
33	33	develop, encourage, and maintain employment, commerce,
34	34	transportation, housing, tourism, recreation, the arts,
35	35	entertainment, economic development, safety, and the public
36	36	welfare in the district.
37	37	(d) This chapter and the creation of the district may not be
38	38	interpreted to relieve the county or the city from providing the
39	39	level of services provided as of the effective date of the Act
40	40	enacting this chapter to the area in the district. The district is
41	41	created to supplement and not to supplant county or city services
42	42	provided in the district.
43	43	Sec. 4007.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
44	44	(a) All land and other property included in the district will
45	45	benefit from the improvements and services to be provided by the
46	46	district under powers conferred by Sections 52 and 52-a, Article
47	47	III, and Section 59, Article XVI, Texas Constitution, and other
48	48	powers granted under this chapter.
49	49	(b) The district is created to serve a public use and
50	50	benefit.
51	51	(c) The creation of the district is in the public interest
52	52	and is essential to further the public purposes of:
53	53	(1) developing and diversifying the economy of the
54	54	state;
55	55	(2) eliminating unemployment and underemployment; and
56	56	(3) developing or expanding transportation and
57	57	commerce.
58	58	(d) The district will:
59	59	(1) promote the health, safety, and general welfare of
60	60	residents, employers, potential employees, employees, visitors,
61	61	and consumers in the district, and of the public;
62	62	(2) provide needed funding for the district to
63	63	preserve, maintain, and enhance the economic health and vitality of
64	64	the district territory as a community and business center;
65	65	(3) promote the health, safety, welfare, and enjoyment
66	66	of the public by providing pedestrian ways and by landscaping and
67	67	developing certain areas in the district, which are necessary for
68	68	the restoration, preservation, and enhancement of scenic beauty;
69	69	and
70	70	(4) provide for water, wastewater, drainage, road, and
71	71	recreational facilities for the district.
72	72	(e) Pedestrian ways along or across a street, whether at
73	73	grade or above or below the surface, and street lighting, street
74	74	landscaping, parking, and street art objects are parts of and
75	75	necessary components of a street and are considered to be a street
76	76	or road improvement.
77	77	(f) The district will not act as the agent or
78	78	instrumentality of any private interest even though the district
79	79	will benefit many private interests as well as the public.
80	80	Sec. 4007.0105. INITIAL DISTRICT TERRITORY. (a) The
81	81	district is initially composed of the territory described by
82	82	Section 2 of the Act enacting this chapter.
83	83	(b) The boundaries and field notes contained in Section 2 of
84	84	the Act enacting this chapter form a closure. A mistake in the
85	85	field notes or in copying the field notes in the legislative process
86	86	does not affect the district's:
87	87	(1) organization, existence, or validity;
88	88	(2) right to issue any type of bonds for the purposes
89	89	for which the district is created or to pay the principal of and
90	90	interest on the bonds;
91	91	(3) right to impose or collect an assessment or tax; or
92	92	(4) legality or operation.
93	93	Sec. 4007.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
94	94	All or any part of the area of the district is eligible to be
95	95	included in:
96	96	(1) a tax increment reinvestment zone created under
97	97	Chapter 311, Tax Code; or
98	98	(2) a tax abatement reinvestment zone created under
99	99	Chapter 312, Tax Code.
100	100	Sec. 4007.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
101	101	DISTRICTS LAW. Except as otherwise provided by this chapter,
102	102	Chapter 375, Local Government Code, applies to the district.
103	103	Sec. 4007.0108. CONSTRUCTION OF CHAPTER. This chapter
104	104	shall be liberally construed in conformity with the findings and
105	105	purposes stated in this chapter.
106	106	SUBCHAPTER B. BOARD OF DIRECTORS
107	107	Sec. 4007.0201. GOVERNING BODY; TERMS. (a) The district is
108	108	governed by a board of five voting directors who serve staggered
109	109	terms of four years, with two or three directors' terms expiring
110	110	June 1 of each odd-numbered year.
111	111	(b) The board by resolution may change the number of voting
112	112	directors on the board only if the board determines that the change
113	113	is in the best interest of the district. The board may not consist
114	114	of fewer than five or more than nine voting directors.
115	115	Sec. 4007.0202. APPOINTMENT OF VOTING DIRECTORS. The mayor
116	116	and members of the governing body of the city shall appoint voting
117	117	directors from persons recommended by the board. A person is
118	118	appointed if a majority of the members of the governing body,
119	119	including the mayor, vote to appoint that person.
120	120	Sec. 4007.0203. NONVOTING DIRECTORS. The board may appoint
121	121	nonvoting directors to serve at the pleasure of the voting
122	122	directors.
123	123	Sec. 4007.0204. QUORUM. For purposes of determining the
124	124	requirements for a quorum of the board, the following are not
125	125	counted:
126	126	(1) a board position vacant for any reason, including
127	127	death, resignation, or disqualification;
128	128	(2) a director who is abstaining from participation in
129	129	a vote because of a conflict of interest; or
130	130	(3) a nonvoting director.
131	131	Sec. 4007.0205. COMPENSATION. A director is entitled to
132	132	receive fees of office and reimbursement for actual expenses as
133	133	provided by Section 49.060, Water Code. Sections 375.069 and
134	134	375.070, Local Government Code, do not apply to the board.
135	135	SUBCHAPTER C. POWERS AND DUTIES
136	136	Sec. 4007.0301. GENERAL POWERS AND DUTIES. The district
137	137	has the powers and duties necessary to accomplish the purposes for
138	138	which the district is created.
139	139	Sec. 4007.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
140	140	The district, using any money available to the district for the
141	141	purpose, may provide, design, construct, acquire, improve,
142	142	relocate, operate, maintain, or finance an improvement project or
143	143	service authorized under this chapter or Chapter 375, Local
144	144	Government Code.
145	145	(b) The district may contract with a governmental or private
146	146	entity to carry out an action under Subsection (a).
147	147	(c) The implementation of a district project or service is a
148	148	governmental function or service for the purposes of Chapter 791,
149	149	Government Code.
150	150	Sec. 4007.0303. LAW ENFORCEMENT SERVICES. To protect the
151	151	public interest, the district may contract with a qualified party,
152	152	including the county or the city, to provide law enforcement
153	153	services in the district for a fee.
154	154	Sec. 4007.0304. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
155	155	The district may join and pay dues to a charitable or nonprofit
156	156	organization that performs a service or provides an activity
157	157	consistent with the furtherance of a district purpose.
158	158	Sec. 4007.0305. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
159	159	district may engage in activities that accomplish the economic
160	160	development purposes of the district.
161	161	(b) The district may establish and provide for the
162	162	administration of one or more programs to promote state or local
163	163	economic development and to stimulate business and commercial
164	164	activity in the district, including programs to:
165	165	(1) make loans and grants of public money; and
166	166	(2) provide district personnel and services.
167	167	(c) The district may create economic development programs
168	168	and exercise the economic development powers provided to
169	169	municipalities by:
170	170	(1) Chapter 380, Local Government Code; and
171	171	(2) Subchapter A, Chapter 1509, Government Code.
172	172	Sec. 4007.0306. PARKING FACILITIES. (a) The district may
173	173	acquire, lease as lessor or lessee, construct, develop, own,
174	174	operate, and maintain parking facilities or a system of parking
175	175	facilities, including lots, garages, parking terminals, or other
176	176	structures or accommodations for parking motor vehicles off the
177	177	streets and related appurtenances.
178	178	(b) The district's parking facilities serve the public
179	179	purposes of the district and are owned, used, and held for a public
180	180	purpose even if leased or operated by a private entity for a term of
181	181	years.
182	182	(c) The district's parking facilities are parts of and
183	183	necessary components of a street and are considered to be a street
184	184	or road improvement.
185	185	(d) The development and operation of the district's parking
186	186	facilities may be considered an economic development program.
187	187	Sec. 4007.0307. ADDING OR EXCLUDING LAND. The district may
188	188	add or exclude land in the manner provided by Subchapter J, Chapter
189	189	49, Water Code, or by Subchapter H, Chapter 54, Water Code.
190	190	Sec. 4007.0308. DISBURSEMENTS AND TRANSFERS OF MONEY. The
191	191	board by resolution shall establish the number of directors'
192	192	signatures and the procedure required for a disbursement or
193	193	transfer of district money.
194	194	Sec. 4007.0309. NO EMINENT DOMAIN POWER. The district may
195	195	not exercise the power of eminent domain.
196	196	SUBCHAPTER D. ASSESSMENTS
197	197	Sec. 4007.0401. PETITION REQUIRED FOR FINANCING SERVICES
198	198	AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
199	199	service or improvement project with assessments under this chapter
200	200	unless a written petition requesting that service or improvement
201	201	has been filed with the board.
202	202	(b) A petition filed under Subsection (a) must be signed by
203	203	the owners of a majority of the assessed value of real property in
204	204	the district subject to assessment according to the most recent
205	205	certified tax appraisal roll for the county.
206	206	Sec. 4007.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
207	207	The board by resolution may impose and collect an assessment for any
208	208	purpose authorized by this chapter in all or any part of the
209	209	district.
210	210	(b) An assessment, a reassessment, or an assessment
211	211	resulting from an addition to or correction of the assessment roll
212	212	by the district, penalties and interest on an assessment or
213	213	reassessment, an expense of collection, and reasonable attorney's
214	214	fees incurred by the district:
215	215	(1) are a first and prior lien against the property
216	216	assessed;
217	217	(2) are superior to any other lien or claim other than
218	218	a lien or claim for county, school district, or municipal ad valorem
219	219	taxes; and
220	220	(3) are the personal liability of and a charge against
221	221	the owners of the property even if the owners are not named in the
222	222	assessment proceedings.
223	223	(c) The lien is effective from the date of the board's
224	224	resolution imposing the assessment until the date the assessment is
225	225	paid. The board may enforce the lien in the same manner that the
226	226	board may enforce an ad valorem tax lien against real property.
227	227	(d) The board may make a correction to or deletion from the
228	228	assessment roll that does not increase the amount of assessment of
229	229	any parcel of land without providing notice and holding a hearing in
230	230	the manner required for additional assessments.
231	231	SUBCHAPTER E. TAXES AND BONDS
232	232	Sec. 4007.0501. TAX ELECTION REQUIRED. (a) The district
233	233	must hold an election in the manner provided by Chapter 49, Water
234	234	Code, or, if applicable, Chapter 375, Local Government Code, to
235	235	obtain voter approval before the district may impose an ad valorem
236	236	tax.
237	237	(b) Section 375.243, Local Government Code, does not apply
238	238	to the district.
239	239	Sec. 4007.0502. OPERATION AND MAINTENANCE TAX. (a) If
240	240	authorized by a majority of the district voters voting at an
241	241	election under Section 4007.0501, the district may impose an
242	242	operation and maintenance tax on taxable property in the district
243	243	in the manner provided by Section 49.107, Water Code, for any
244	244	district purpose, including to:
245	245	(1) maintain and operate the district;
246	246	(2) construct or acquire improvements; or
247	247	(3) provide a service.
248	248	(b) The board shall determine the operation and maintenance
249	249	tax rate. The rate may not exceed the rate approved at the
250	250	election.
251	251	Sec. 4007.0503. AUTHORITY TO BORROW MONEY AND TO ISSUE
252	252	BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
253	253	terms determined by the board.
254	254	(b) The district may issue bonds, notes, or other
255	255	obligations payable wholly or partly from ad valorem taxes,
256	256	assessments, impact fees, revenue, contract payments, grants, or
257	257	other district money, or any combination of those sources of money,
258	258	to pay for any authorized district purpose.
259	259	(c) The limitation on the outstanding principal amount of
260	260	bonds, notes, or other obligations provided by Section 49.4645,
261	261	Water Code, does not apply to the district.
262	262	Sec. 4007.0504. BONDS SECURED BY REVENUE OR CONTRACT
263	263	PAYMENTS. The district may issue, without an election, bonds
264	264	secured by:
265	265	(1) revenue other than ad valorem taxes, including
266	266	contract revenues; or
267	267	(2) contract payments, provided that the requirements
268	268	of Section 49.108, Water Code, have been met.
269	269	Sec. 4007.0505. BONDS SECURED BY AD VALOREM TAXES;
270	270	ELECTIONS. (a) If authorized at an election under Section
271	271	4007.0501, the district may issue bonds payable from ad valorem
272	272	taxes.
273	273	(b) At the time the district issues bonds payable wholly or
274	274	partly from ad valorem taxes, the board shall provide for the annual
275	275	imposition of a continuing direct annual ad valorem tax, without
276	276	limit as to rate or amount, for each year that all or part of the
277	277	bonds are outstanding as required and in the manner provided by
278	278	Sections 54.601 and 54.602, Water Code.
279	279	(c) All or any part of any facilities or improvements that
280	280	may be acquired by a district by the issuance of its bonds may be
281	281	submitted as a single proposition or as several propositions to be
282	282	voted on at the election.
283	283	Sec. 4007.0506. CONSENT OF MUNICIPALITY REQUIRED. (a) The
284	284	board may not issue bonds until each municipality in whose
285	285	corporate limits or extraterritorial jurisdiction the district is
286	286	located has consented by ordinance or resolution to the creation of
287	287	the district and to the inclusion of land in the district.
288	288	(b) This section applies only to the district's first
289	289	issuance of bonds payable from ad valorem taxes.
290	290	SUBCHAPTER I. DISSOLUTION
291	291	Sec. 4007.0901. DISSOLUTION. (a) The board shall dissolve
292	292	the district on written petition filed with the board by the owners
293	293	of a simple majority of the assessed value of the property subject
294	294	to assessment or taxation by the district based on the most recent
295	295	certified county property tax rolls.
296	296	(b) The board by majority vote may dissolve the district at
297	297	any time.
298	298	(c) The district may not be dissolved by its board under
299	299	Subsection (a) or (b) if the district:
300	300	(1) has any outstanding bonded indebtedness until that
301	301	bonded indebtedness has been repaid or defeased in accordance with
302	302	the order or resolution authorizing the issuance of the bonds;
303	303	(2) has a contractual obligation to pay money until
304	304	that obligation has been fully paid in accordance with the
305	305	contract; or
306	306	(3) owns, operates, or maintains public works,
307	307	facilities, or improvements unless the district contracts with
308	308	another person for the ownership, operation, or maintenance of the
309	309	public works, facilities, or improvements.
310	310	(d) Sections 375.261, 375.262, and 375.264, Local
311	311	Government Code, do not apply to the district.
312	312	SECTION 2. The Jones Avenue Municipal Management District
313	313	initially includes all territory contained in the following area:
314	314	Lots 6 and 7, Block 1, New City Block 1036, Replat Jones
315	315	Avenue Service Center Subdivision, City of San Antonio, Bexar
316	316	County, Texas, according to plat number 22-11800219 recorded in
317	317	Volume 20003, Page 11, Deed and Plat Records, Bexar County, Texas.
318	318	SECTION 3. (a) The legal notice of the intention to
319	319	introduce this Act, setting forth the general substance of this
320	320	Act, has been published as provided by law, and the notice and a
321	321	copy of this Act have been furnished to all persons, agencies,
322	322	officials, or entities to which they are required to be furnished
323	323	under Section 59, Article XVI, Texas Constitution, and Chapter 313,
324	324	Government Code.
325	325	(b) The governor, one of the required recipients, has
326	326	submitted the notice and Act to the Texas Commission on
327	327	Environmental Quality.
328	328	(c) The Texas Commission on Environmental Quality has filed
329	329	its recommendations relating to this Act with the governor,
330	330	lieutenant governor, and speaker of the house of representatives
331	331	within the required time.
332	332	(d) All requirements of the constitution and laws of this
333	333	state and the rules and procedures of the legislature with respect
334	334	to the notice, introduction, and passage of this Act have been
335	335	fulfilled and accomplished.
336	336	SECTION 4. This Act takes effect immediately if it receives
337	337	a vote of two-thirds of all the members elected to each house, as
338	338	provided by Section 39, Article III, Texas Constitution. If this
339	339	Act does not receive the vote necessary for immediate effect, this
340	340	Act takes effect September 1, 2023.
341	341	______________________________ ______________________________
342	342	President of the Senate Speaker of the House
343	343	I certify that H.B. No. 5399 was passed by the House on May 9,
344	344	2023, by the following vote: Yeas 108, Nays 34, 2 present, not
345	345	voting.
346	346	______________________________
347	347	Chief Clerk of the House
348	348	I certify that H.B. No. 5399 was passed by the Senate on May
349	349	16, 2023, by the following vote: Yeas 26, Nays 4, 1 present, not
350	350	voting.
351	351	______________________________
352	352	Secretary of the Senate
353	353	APPROVED: _____________________
354	354	Date
355	355	_____________________
356	356	Governor