By: Bernsen S.B. No. 1773
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Port Bolivar Improvement District;
1-3 providing authority to impose a tax and issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 376, Local Government Code, is amended by
1-6 adding Subchapter K to read as follows:
1-7 SUBCHAPTER K. PORT BOLIVAR IMPROVEMENT DISTRICT
1-8 Sec. 376.451. CREATION AND NAME OF DISTRICT. (a) The Port
1-9 Bolivar Improvement District is created as a special district under
1-10 Section 59, Article XVI, Texas Constitution.
1-11 (b) The board by resolution may change the district's name.
1-12 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of
1-13 the district is necessary to promote and expand business
1-14 opportunities and to create jobs in the Port Bolivar area of
1-15 Galveston County.
1-16 (b) The creation of the district and this legislation do not
1-17 relieve the county from providing the level of services, as of the
1-18 effective date of this subchapter, to the area in the district or
1-19 release the county from the obligations it has to provide services
1-20 to that area. The district is created to supplement and not
1-21 supplant the county services provided in the area in the district.
1-22 (c) The creation of the district is essential to accomplish
1-23 the purposes of Section 52, Article III, Section 59, Article XVI,
1-24 and Section 52-a, Article III, Texas Constitution, and other public
1-25 purposes stated in this subchapter.
2-1 Sec. 376.453. DEFINITIONS. In this subchapter:
2-2 (1) "Board" means the board of directors of the
2-3 district.
2-4 (2) "County" means Galveston County, Texas.
2-5 (3) "District" means the Port Bolivar Improvement
2-6 District.
2-7 Sec. 376.454. BOUNDARIES. The district includes all the
2-8 territory contained in the following Galveston County election
2-9 precincts as of February 1, 2001:
2-10 (1) 101;
2-11 (2) 102;
2-12 (3) 103; and
2-13 (4) 104.
2-14 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The
2-15 boundaries and field notes of the district form a closure. If a
2-16 mistake is made in the field notes or in copying the field notes in
2-17 the legislative process, the mistake does not in any way affect the
2-18 district's:
2-19 (1) organization, existence, or validity;
2-20 (2) right to issue any type of bond for the purposes
2-21 for which the district is created or to pay the principal of and
2-22 interest on a bond;
2-23 (3) right to impose or collect an assessment or tax;
2-24 or
2-25 (4) legality or operation.
2-26 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
3-1 (a) The district is created to serve a public use and benefit.
3-2 All the land and other property included in the district will be
3-3 benefited by the improvements and services to be provided by the
3-4 district under powers conferred by Section 52, Article III, Section
3-5 59, Article XVI, and Section 52-a, Article III, Texas Constitution,
3-6 and other powers granted under this subchapter.
3-7 (b) The creation of the district is in the public interest
3-8 and is essential to:
3-9 (1) further the public purposes of the development and
3-10 diversification of the economy of the state; and
3-11 (2) eliminate unemployment and underemployment and
3-12 develop or expand transportation and commerce.
3-13 (c) The district will:
3-14 (1) promote the health, safety, and general welfare of
3-15 residents, employers, potential employees, employees, visitors,
3-16 consumers in the district, and the general public;
3-17 (2) provide needed funding for the Port Bolivar area
3-18 to preserve, maintain, and enhance the economic health and vitality
3-19 of the area as a community and business center; and
3-20 (3) further promote the health, safety, welfare, and
3-21 enjoyment of the public by providing pedestrian ways and by
3-22 landscaping and developing certain areas in the district, which are
3-23 necessary for the restoration, preservation, and enhancement of
3-24 scenic beauty.
3-25 (d) The district may not act as the agent or instrumentality
3-26 of any private interest even though many private interests will be
4-1 benefited by the district, as will the general public.
4-2 Sec. 376.457. INITIAL DIRECTORS. (a) The Commissioners
4-3 Court of Galveston County shall appoint five initial directors. To
4-4 be eligible for appointment, a director must have the
4-5 qualifications specified in Section 376.462.
4-6 (b) In making appointments, the commissioners court shall
4-7 attempt to appoint directors who reflect the residents in the area
4-8 of the district.
4-9 Sec. 376.458. CONFIRMATION ELECTION. (a) The initial
4-10 directors shall meet as soon as practicable after all initial
4-11 directors have qualified for office. The board shall call an
4-12 election to confirm the creation of the district. The board shall
4-13 call the confirmation election at the first meeting unless the
4-14 board calls a hearing to exclude territory from the district.
4-15 (b) The confirmation election shall be held in the manner
4-16 provided by Section 49.102, Water Code. The election must be held
4-17 on the first uniform election date provided by Section 41.001,
4-18 Election Code, that falls on or after the 45th day after the date
4-19 of the order calling the election.
4-20 (c) If a majority of the votes cast in the election are
4-21 against confirmation, the board may not call or hold another
4-22 confirmation election until the expiration of six months after the
4-23 date of the most recent confirmation election.
4-24 (d) Before the creation of the district is confirmed, the
4-25 district may not borrow money or impose taxes. The district may
4-26 carry on other business as the board determines.
5-1 Sec. 376.459. ELECTION OF DIRECTORS. (a) As soon as
5-2 practicable after the first anniversary of the date on which the
5-3 creation of the district is confirmed, the board shall call and
5-4 hold an election to elect the initial permanent directors.
5-5 (b) The election shall be held in the manner provided by
5-6 Section 49.102, Water Code.
5-7 (c) The election must be held on the first uniform election
5-8 date provided by Section 41.001, Election Code, that falls on or
5-9 after the 45th day after the date of the order calling the
5-10 election. The directors elected at the first election shall draw
5-11 lots to determine their terms so that two serve terms expiring on
5-12 the first July 1 of an even-numbered year after the election and
5-13 three serve terms expiring July 1 of the second year after the year
5-14 in which the first terms expire.
5-15 (d) An election to elect the appropriate number of successor
5-16 directors shall be held on the uniform election date, established
5-17 by the Election Code, in May of each even-numbered year.
5-18 Sec. 376.460. BOARD OF DIRECTORS; TERMS. The district is
5-19 governed by a board of five directors who serve staggered four-year
5-20 terms, with two or three members' terms expiring July 1 of each
5-21 even-numbered year.
5-22 Sec. 376.461. ADMINISTRATION OF BOARD. Sections
5-23 375.066-375.070 apply to the board as if it were established under
5-24 Chapter 375.
5-25 Sec. 376.462. QUALIFICATIONS OF DIRECTOR. (a) To be
5-26 qualified to serve as a director, a person must be at least 18
6-1 years of age and:
6-2 (1) reside in the district;
6-3 (2) own real property in the district;
6-4 (3) own stock in a corporation that owns real property
6-5 in the district;
6-6 (4) own a beneficial interest in a trust that owns
6-7 real property in the district; or
6-8 (5) be an agent, employee, or tenant of a person
6-9 covered by Subdivision (2), (3), or (4).
6-10 (b) A person or entity that owns an interest in a general or
6-11 limited partnership owning real property in the district or that
6-12 has a lease of real property in the district with a remaining term
6-13 of 10 years or more, excluding options, is considered to be an
6-14 owner of real property for purposes of this section.
6-15 Sec. 376.463. GENERAL POWERS. The district has:
6-16 (1) all powers necessary or required to accomplish the
6-17 purposes for which the district was created;
6-18 (2) the powers and duties of a municipal management
6-19 district under Subchapter E, Chapter 375; and
6-20 (3) the powers given to an industrial development
6-21 corporation organized under the Development Corporation Act of 1979
6-22 (Article 5190.6, Vernon's Texas Civil Statutes).
6-23 Sec. 376.464. SPECIFIC POWERS AND LIMITATIONS. (a) The
6-24 district may:
6-25 (1) impose and collect, and apply the proceeds from, a
6-26 limited sales and use tax for the district's purposes;
7-1 (2) borrow money for the corporate purposes of the
7-2 district;
7-3 (3) add or exclude territory in the manner provided by
7-4 Subchapter J, Chapter 49, Water Code;
7-5 (4) contract with a person to accomplish the
7-6 district's purposes, including entering into a contract for the
7-7 payment of costs incurred by the person on behalf of the district,
7-8 including all or part of the costs of an improvement project, from
7-9 tax proceeds or any other specified source of money;
7-10 (5) contract with a person to receive, administer, and
7-11 perform the district's duties under a gift, grant, loan,
7-12 conveyance, transfer, bequest, donation, or other financial
7-13 arrangement relating to the investigation, planning, analysis,
7-14 acquisition, construction, completion, implementation, or operation
7-15 of a proposed or existing improvement project;
7-16 (6) establish and collect user fees, concession fees,
7-17 admission fees, rental fees, or other similar fees or charges and
7-18 apply the proceeds from those fees or charges for the enjoyment,
7-19 sale, rental, or other use of the district's facilities, services,
7-20 or improvement projects;
7-21 (7) adopt rules for:
7-22 (A) the administration and operation of the
7-23 district;
7-24 (B) the use, enjoyment, availability,
7-25 protection, security, and maintenance of the district's
7-26 facilities; and
8-1 (C) the provision of public safety and security
8-2 in the district;
8-3 (8) provide or secure the payment or repayment of any
8-4 district expense, including:
8-5 (A) a district cost relating to an improvement
8-6 project;
8-7 (B) a district contractual obligation or
8-8 indebtedness, because of a lease, installment purchase contract, or
8-9 other agreement; or
8-10 (C) a tax, user fee, concession fee, rental fee,
8-11 or other revenue or resources of the district; and
8-12 (9) undertake improvement projects separately or
8-13 jointly with other persons or entities and pay all or part of the
8-14 costs of improvement projects, including improvement projects that:
8-15 (A) improve, enhance, or support public safety
8-16 and security, fire protection, emergency medical services, or law
8-17 enforcement in the district;
8-18 (B) confer a general benefit on the entire
8-19 district and the areas adjacent to the district; or
8-20 (C) confer a special benefit on all or part of
8-21 the district.
8-22 (b) The district may not employ peace officers.
8-23 (c) The district may not impose an ad valorem tax on
8-24 property in the district.
8-25 (d) The district may, as if the district were a home-rule
8-26 municipality with a population of more than 100,000:
9-1 (1) issue bonds and lease, acquire, or construct a
9-2 building or facility as provided by Subchapter A, Chapter 1509,
9-3 Government Code; and
9-4 (2) establish and administer a program as provided by
9-5 Section 380.002.
9-6 Sec. 376.465. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An
9-7 improvement project or service provided by the district may
9-8 include:
9-9 (1) the construction, acquisition, lease, rental,
9-10 installment purchase, improvement, rehabilitation, repair,
9-11 relocation, and operation of:
9-12 (A) landscaping; lighting, banners, or signs;
9-13 streets or sidewalks; pedestrian or bicycle paths and trails;
9-14 pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
9-15 right-of-way or transit corridor beautification and improvements;
9-16 (B) drainage or storm water detention
9-17 improvements and solid waste, water, sewer, or power facilities and
9-18 services, including electrical, gas, steam, and chilled-water
9-19 facilities and services;
9-20 (C) parks, lakes, gardens, recreational
9-21 facilities, open space, scenic areas, and related exhibits and
9-22 preserves; fountains, plazas, or pedestrian malls; public art or
9-23 sculpture and related exhibits and facilities; educational or
9-24 cultural exhibits and facilities, including exhibits, displays,
9-25 attractions, or facilities for special events, holidays, or
9-26 seasonal or cultural celebrations;
10-1 (D) off-street parking facilities, bus
10-2 terminals, heliports, mass transit, and roadway or water
10-3 transportation systems; and
10-4 (E) other public improvements, facilities, or
10-5 services similar to the improvements, facilities, or services
10-6 described by Paragraphs (A)-(D);
10-7 (2) the cost of removal, razing, demolition, or
10-8 clearing of land or improvements in connection with providing an
10-9 improvement project;
10-10 (3) the acquisition of property or an interest in the
10-11 property that is made in connection with an authorized improvement
10-12 project; and
10-13 (4) the provision of special or supplemental services
10-14 to improve or promote the area in the district or to protect the
10-15 public health and safety in the district, including advertising,
10-16 promotion, tourism, health and sanitation, public safety, security,
10-17 fire protection or emergency medical services, business
10-18 recruitment, development, elimination of traffic congestion, and
10-19 recreational, educational, or cultural improvements, enhancements,
10-20 or services.
10-21 Sec. 376.466. RELATION TO OTHER LAW. If a law referenced in
10-22 Section 376.463 or referenced in Subchapter E, Chapter 375, is in
10-23 conflict with or inconsistent with this subchapter, this subchapter
10-24 prevails. A law referenced in Section 376.463 or Subchapter E,
10-25 Chapter 375, that is not in conflict with or inconsistent with this
10-26 subchapter is adopted and incorporated by reference and may be used
11-1 by the district independently of each other.
11-2 Sec. 376.467. NO EMINENT DOMAIN POWER. The district may not
11-3 exercise the power of eminent domain.
11-4 Sec. 376.468. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The
11-5 district may not impose an impact fee or assessment on a
11-6 single-family residential property or a residential duplex,
11-7 triplex, fourplex, or condominium.
11-8 Sec. 376.469. SALES AND USE TAX; EXCISE TAX. (a) For
11-9 purposes of this section:
11-10 (1) "Taxable items" includes all items subject to any
11-11 sales and use tax that is imposed by the county if the county has
11-12 imposed a sales and use tax.
11-13 (2) "Use," with respect to a taxable service, means
11-14 the derivation in the district of a direct or indirect benefit from
11-15 the service.
11-16 (b) The district may impose a sales and use tax for the
11-17 benefit of the district if authorized by a majority of the
11-18 qualified voters of the district voting at an election called for
11-19 that purpose.
11-20 (c) If the district adopts the tax:
11-21 (1) a tax is imposed on the receipts from the sale at
11-22 retail of taxable items in the district; and
11-23 (2) an excise tax is imposed on the use, storage, or
11-24 other consumption in the district of taxable items purchased or
11-25 rented from a retailer during the period that the tax is effective
11-26 in the district.
12-1 (d) The rate of the excise tax is the same as the rate of
12-2 the sales tax portion of the tax applied to the sales price of the
12-3 taxable items and is included in the sales tax.
12-4 Sec. 376.470. TAX ELECTION PROCEDURES. (a) The board by
12-5 order may call an election to adopt, change the rate of, or abolish
12-6 a sales and use tax. The election may be held at the same time and
12-7 in conjunction with a confirmation or directors election.
12-8 (b) The election must be held on the next uniform election
12-9 date that falls on or after the 45th day after the date the order
12-10 calling the election is adopted.
12-11 (c) Notice of the election shall be given and the election
12-12 shall be held and conducted in the manner prescribed for bond
12-13 elections under Subchapter D, Chapter 49, Water Code.
12-14 (d) In an election to adopt the tax, the ballot shall be
12-15 prepared to permit voting for or against the proposition: "The
12-16 adoption of a local sales and use tax in the Port Bolivar
12-17 Improvement District at the rate of (proposed tax rate)."
12-18 (e) In an election to change the rate of the tax, the ballot
12-19 shall be prepared to permit voting for or against the proposition:
12-20 "The (increase or decrease, as applicable) in the rate of the local
12-21 sales and use tax imposed in the Port Bolivar Improvement District
12-22 from (tax rate on election date) percent to (proposed tax rate)
12-23 percent."
12-24 (f) In an election to abolish the tax, the ballot shall be
12-25 prepared to permit voting for or against the proposition: "The
12-26 abolition of the local sales and use tax in the Port Bolivar
13-1 Improvement District."
13-2 Sec. 376.471. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
13-3 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
13-4 inconsistent with this subchapter, governs the application,
13-5 collection, and administration of the tax under this subchapter,
13-6 except that Sections 323.401 through 323.406 and 323.505, Tax Code,
13-7 do not apply. Subtitles A and B, Title 2, and Chapter 151, Tax
13-8 Code, govern the administration and enforcement of the taxes under
13-9 this subchapter.
13-10 (b) Chapter 323, Tax Code, does not apply to the use and
13-11 allocation of revenues under this subchapter.
13-12 (c) In applying Chapter 323, Tax Code, the district's name
13-13 shall be substituted for references in that chapter to "the county"
13-14 and the board is substituted for references in that chapter to
13-15 "commissioners court."
13-16 Sec. 376.472. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
13-17 adoption of a tax rate or change in the tax rate takes effect after
13-18 the expiration of the first complete calendar quarter occurring
13-19 after the date on which the comptroller receives a notice of the
13-20 results of the election.
13-21 Sec. 376.473. TAX RATES. The district may impose the sales
13-22 and use tax under this subchapter in increments of one-eighth of
13-23 one percent, with a minimum tax of one-half percent and a maximum
13-24 tax of one percent.
13-25 Sec. 376.474. ABOLITION OF TAX RATE. The board by order may
13-26 abolish the local sales and use tax rate without an election.
14-1 Sec. 376.475. USE OF TAX. Taxes collected under this
14-2 subchapter may be used only for the purposes for which the district
14-3 was created.
14-4 Sec. 376.476. SUBMISSION OF ANNEXATION INFORMATION. Not
14-5 later than the 10th day after the date on which the district
14-6 annexes or excludes territory, the board shall send to the
14-7 comptroller a certified copy of any resolution, order, or ordinance
14-8 relating to the annexation or exclusion.
14-9 Sec. 376.477. BONDS. (a) The board may issue bonds as
14-10 provided by Subchapter J, Chapter 375.
14-11 (b) In addition to the sources described in Subchapter J,
14-12 Chapter 375, the bonds issued by the district may be secured and
14-13 made payable, wholly or partly, by a pledge of any part of the net
14-14 proceeds the district receives from a specified portion of not more
14-15 than one-half of the maximum sales and use tax amount authorized
14-16 and approved by voters of the district under Section 376.470.
14-17 (c) Sections 375.207 and 375.208 do not apply to bonds
14-18 issued under this section.
14-19 Sec. 376.478. CONTRACTING AUTHORITY. (a) The district may
14-20 contract with any person to carry out the purposes of this
14-21 subchapter on terms and for the period the board determines.
14-22 (b) Any person, including any type of governmental entity,
14-23 may contract with the district to carry out the purposes of this
14-24 subchapter.
14-25 Sec. 376.479. DISSOLUTION BY BOARD ORDER. The board by
14-26 order may dissolve the district at any time unless the district has
15-1 outstanding indebtedness or contractual obligations.
15-2 Sec. 376.480. DISSOLUTION BY PETITION OF OWNERS. (a) The
15-3 board by order shall dissolve the district if the board receives a
15-4 written petition signed by the owners of 75 percent or more of the
15-5 real property acreage in the district.
15-6 (b) After the date the district is dissolved, the district
15-7 may not levy taxes.
15-8 (c) If on the date the district is dissolved the district
15-9 has outstanding liabilities, the board shall, not later than the
15-10 30th day after the dissolution, adopt a resolution certifying each
15-11 outstanding liability. The county in which the district is located
15-12 shall assume the outstanding liabilities. The county shall collect
15-13 the sales and use tax for the district for the remainder of the
15-14 calendar year. The county may continue to collect the tax for an
15-15 additional calendar year if the commissioners court finds that the
15-16 tax revenue is needed to retire the district liabilities that were
15-17 assumed by the county.
15-18 (d) The district may continue to operate for a period not to
15-19 exceed two months after carrying out the responsibilities required
15-20 by Subsection (c). The district is continued in effect for the
15-21 purpose of satisfying these responsibilities.
15-22 (e) If the district is continued in effect under Subsection
15-23 (d), the district is dissolved entirely on the first day of the
15-24 month following the month in which the board certifies to the
15-25 secretary of state that the district has satisfied the
15-26 responsibilities of Subsection (c).
16-1 Sec. 376.481. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
16-2 DISSOLUTION. (a) After the board orders the dissolution of the
16-3 district, the board shall transfer ownership of all district
16-4 property to the county, except as provided by Subsection (b).
16-5 (b) If, on the date on which the board orders the
16-6 dissolution, more than 50 percent of the district territory is in a
16-7 municipality, the board shall transfer ownership of the district's
16-8 property to the municipality.
16-9 SECTION 2. The legislature finds that:
16-10 (1) the proper and legal notice of the intention to
16-11 introduce this Act, setting forth the general substance of this
16-12 Act, has been published as provided by law, and the notice and a
16-13 copy of this Act have been furnished to all persons, agencies,
16-14 officials, or entities to which they are required to be furnished
16-15 by the constitution and laws of this state, including the governor,
16-16 who has submitted the notice and a copy of this Act to the Texas
16-17 Natural Resource Conservation Commission;
16-18 (2) the Texas Natural Resource Conservation Commission
16-19 has filed its recommendations relating to this Act with the
16-20 governor, lieutenant governor, and speaker of the house of
16-21 representatives within the required time;
16-22 (3) the general law relating to consent by political
16-23 subdivisions to the creation of districts with conservation,
16-24 reclamation, and road powers and the inclusion of land in those
16-25 districts has been complied with; and
16-26 (4) all requirements of the constitution and laws of
17-1 this state and the rules and procedures of the legislature with
17-2 respect to the notice, introduction, and passage of this Act have
17-3 been fulfilled and accomplished.
17-4 SECTION 3. This Act takes effect immediately if it receives
17-5 a vote of two-thirds of all the members elected to each house, as
17-6 provided by Section 39, Article III, Texas Constitution. If this
17-7 Act does not receive the vote necessary for immediate effect, this
17-8 Act takes effect September 1, 2001.