By Lucio S.B. No. 1170
74R1550 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of a coastal municipality to undertake
1-3 projects affecting beaches, dunes, bays, and similar natural
1-4 resources, to issue bonds, and to impose an ad valorem tax.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle A, Title 10, Local Government Code, is
1-7 amended by adding Chapter 309 to read as follows:
1-8 CHAPTER 309. COASTAL MANAGEMENT BY MUNICIPALITIES
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 309.001. APPLICATION. This chapter applies only to a
1-11 municipality that borders the Gulf of Mexico or is located on a
1-12 channel, bay, or inlet connected to the Gulf of Mexico.
1-13 Sec. 309.002. ACQUISITION OF PROPERTY. (a) A
1-14 municipality may acquire an interest in real property, including
1-15 improvements, to create, maintain, or further develop:
1-16 (1) a public beach, sand dune, artificial reef, or
1-17 other natural or artificial feature used to preserve or enhance the
1-18 shoreline; or
1-19 (2) a channel, bay, harbor, boat basin, or other
1-20 natural or artificial coastal waterway used for navigation or
1-21 recreation.
1-22 (b) Real property acquired under Subsection (a) must be:
1-23 (1) in the municipality; or
1-24 (2) in a county in which the municipality is located,
2-1 but not more than five miles offshore.
2-2 Sec. 309.003. USE OF PROPERTY; LOCATION OF IMPROVEMENTS.
2-3 (a) A municipality may use any property acquired under Section
2-4 309.002 or undertake any project for any public purpose necessary
2-5 for coastal management.
2-6 (b) A municipality may construct an improvement on property
2-7 that is held in trust by the state for the public's right of access
2-8 to the Gulf of Mexico or any public waterway leading to the Gulf of
2-9 Mexico.
2-10 Sec. 309.004. FUNDING. A municipality may use any source of
2-11 available funds to carry out the purposes of this chapter including
2-12 revenue derived from:
2-13 (1) a sales and use tax under Chapter 321, Tax Code;
2-14 (2) a hotel occupancy tax under Chapter 351, Tax Code;
2-15 or
2-16 (3) an ad valorem tax on property.
2-17 Sec. 309.005. GIFTS. A municipality may accept gifts or
2-18 grants of money or property from any source to accomplish the
2-19 purposes of this chapter.
2-20 Sec. 309.006. CONTRACTS WITH OTHER GOVERNMENT ENTITIES. A
2-21 municipality may contract with the United States or an agency of
2-22 this state or a political subdivision of this state to accomplish
2-23 the purposes of this chapter.
2-24 Sec. 309.007. LOANS. A municipality may borrow money from
2-25 any person to accomplish the purposes of this chapter.
2-26 Sec. 309.008. EMINENT DOMAIN. A municipality may acquire
2-27 land, easements, or other property to carry out the purposes of
3-1 this chapter by condemnation under Chapter 21, Property Code. The
3-2 municipality may condemn the fee simple title.
3-3 Sec. 309.009. EXEMPTION FROM TAXATION. A municipality is
3-4 exempt from a tax imposed by this state or political subdivision of
3-5 this state on an activity or improvement authorized by this
3-6 chapter.
3-7 Sec. 309.010. COOPERATION WITH CORPORATION CREATED BY
3-8 MUNICIPALITY. A municipality may contract with a corporation
3-9 created under Section 4A, Development Corporation Act of 1979
3-10 (Article 5190.6, Vernon's Texas Civil Statutes), to perform any of
3-11 the activities authorized under this chapter. The corporation may
3-12 use a sales and use tax that the municipality collects for the
3-13 corporation's benefit to pay for any cost incurred under this
3-14 chapter, including the costs of paying off bonds issued under
3-15 Subchapter B.
3-16 (Sections 309.011-309.020 reserved for expansion
3-17 SUBCHAPTER B. BONDS AND TAXES
3-18 Sec. 309.021. APPLICATION TO BONDS ISSUED UNDER SUBCHAPTER;
3-19 DEFINITION. (a) This subchapter applies only to bonds issued by a
3-20 municipality under this chapter.
3-21 (b) In this subchapter, "bonds" includes other similar
3-22 evidences of indebtedness.
3-23 Sec. 309.022. ISSUANCE OF BONDS. (a) A municipality may
3-24 issue bonds that are secured by any source of revenue described by
3-25 Section 309.004. A source of revenue other than an ad valorem tax
3-26 may be used without calling an election. Bonds that do not require
3-27 an election for their issuance:
4-1 (1) are not a debt or obligation of the municipality
4-2 but are only a charge against the revenues or property pledged for
4-3 their payment; and
4-4 (2) are not included in any limitations imposed by law
4-5 on the power of a municipality to issue bonds.
4-6 (b) Bonds that are payable in whole or in part by the
4-7 proceeds of an ad valorem tax may not be issued unless the issuance
4-8 is approved at an election called by the municipality for that
4-9 purpose.
4-10 (c) An election under Subsection (b) is held in the same
4-11 manner as other bond elections in the municipality. The bonds may
4-12 be issued only if a majority of those voting at the election favor
4-13 the issuance of the bonds.
4-14 Sec. 309.023. TERMS OF BONDS. (a) Bonds may mature
4-15 serially or otherwise not more than 40 years from their date of
4-16 issuance.
4-17 (b) The municipality may:
4-18 (1) issue the bonds on any terms it finds desirable;
4-19 and
4-20 (2) provide in the ordinance, order, or resolution
4-21 authorizing the issuance of the bonds for:
4-22 (A) the deposit and accounting of funds;
4-23 (B) the establishment and maintenance of an
4-24 interest and sinking fund; and
4-25 (C) any additional covenants regarding the
4-26 bonds, or revenues or properties that are pledged to the bonds.
4-27 Sec. 309.024. AD VALOREM TAXES. A municipality may impose
5-1 an ad valorem tax in the same manner as other ad valorem taxes in
5-2 the municipality to pay for bonds the issuance of which is
5-3 authorized at an election.
5-4 Sec. 309.025. PROCEEDS OF BONDS. The proceeds of bonds may
5-5 be used to accomplish the purposes of this chapter, including the
5-6 payment of fees for professional services and costs related to
5-7 issuing the bonds.
5-8 Sec. 309.026. TAX STATUS OF BONDS. Bonds, any transaction
5-9 relating to the bonds, and profits made in the sale of the bonds
5-10 are free from taxation by this state or a political subdivision of
5-11 this state.
5-12 SECTION 2. (a) An election that is held before the
5-13 effective date of this Act to authorize the issuance of bonds as
5-14 required by Subchapter B, Chapter 309, as added by Section 1 of
5-15 this Act, is validated as of the date of the election. All actions
5-16 relating to the election are also validated.
5-17 (b) This section does not apply to any matter that on the
5-18 effective date of this Act:
5-19 (1) is involved in litigation if the litigation
5-20 ultimately results in the matter being held invalid by a final
5-21 judgment of a court of competent jurisdiction; or
5-22 (2) has been held invalid by a final judgment of a
5-23 court of competent jurisdiction.
5-24 SECTION 3. The importance of this legislation and the
5-25 crowded condition of the calendars in both houses create an
5-26 emergency and an imperative public necessity that the
5-27 constitutional rule requiring bills to be read on three several
6-1 days in each house be suspended, and this rule is hereby suspended,
6-2 and that this Act take effect and be in force from and after its
6-3 passage, and it is so enacted.