By Bernsen S.B. No. 1773
77R2331 MXM-D
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
2-1 purposes stated in this subchapter.
2-2 Sec. 376.453. DEFINITIONS. In this subchapter:
2-3 (1) "Board" means the board of directors of the
2-4 district.
2-5 (2) "County" means Galveston County, Texas.
2-6 (3) "District" means the Port Bolivar Improvement
2-7 District.
2-8 Sec. 376.454. BOUNDARIES. The district includes all the
2-9 territory contained in the following Galveston County election
2-10 precincts as of February 1, 2001:
2-11 (1) 101;
2-12 (2) 102;
2-13 (3) 103; and
2-14 (4) 104.
2-15 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The
2-16 boundaries and field notes of the district form a closure. If a
2-17 mistake is made in the field notes or in copying the field notes in
2-18 the legislative process, the mistake does not in any way affect the
2-19 district's:
2-20 (1) organization, existence, or validity;
2-21 (2) right to issue any type of bond for the purposes
2-22 for which the district is created or to pay the principal of and
2-23 interest on a bond;
2-24 (3) right to impose or collect an assessment or tax;
2-25 or
2-26 (4) legality or operation.
2-27 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
3-1 The district is created to serve a public use and benefit. All the
3-2 land and other property included in the district will be benefited
3-3 by the improvements and services to be provided by the district
3-4 under powers conferred by Section 52, Article III, Section 59,
3-5 Article XVI, and Section 52-a, Article III, Texas Constitution, and
3-6 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 will not act as the agent or
3-26 instrumentality of any private interest even though many private
3-27 interests will be benefited by the district, as will the general
4-1 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.
4-27 Sec. 376.459. ELECTION OF DIRECTORS. (a) As soon as
5-1 practicable after the first anniversary of the date on which the
5-2 creation of the district is confirmed, the board shall call and
5-3 hold an election to elect the initial permanent directors.
5-4 (b) The election shall be held in the manner provided by
5-5 Section 49.102, Water Code.
5-6 (c) The election must be held on the first uniform election
5-7 date provided by Section 41.001, Election Code, that falls on or
5-8 after the 45th day after the date of the order calling the
5-9 election. The directors elected at the first election shall draw
5-10 lots to determine their terms so that two serve terms expiring on
5-11 the first July 1 of an even-numbered year after the election and
5-12 three serve terms expiring July 1 of the second year after the year
5-13 in which the first terms expire.
5-14 (d) An election to elect the appropriate number of successor
5-15 directors shall be held on the uniform election date, established
5-16 by the Election Code, in May of each even-numbered year.
5-17 Sec. 376.460. BOARD OF DIRECTORS; TERMS. The district is
5-18 governed by a board of five directors who serve staggered four-year
5-19 terms, with two or three members' terms expiring July 1 of each
5-20 even-numbered year.
5-21 Sec. 376.461. ADMINISTRATION OF BOARD. Sections
5-22 375.066-375.070 apply to the board as if it were established under
5-23 Chapter 375.
5-24 Sec. 376.462. QUALIFICATIONS OF DIRECTOR. (a) To be
5-25 qualified to serve as a director, a person must be at least 18
5-26 years of age and:
5-27 (1) reside in the district;
6-1 (2) own real property in the district;
6-2 (3) own stock in a corporation that owns real property
6-3 in the district;
6-4 (4) own a beneficial interest in a trust that owns
6-5 real property in the district; or
6-6 (5) be an agent, employee, or tenant of a person
6-7 covered by Subdivision (2), (3), or (4).
6-8 (b) A person or entity that owns an interest in a general or
6-9 limited partnership owning real property in the district or that
6-10 has a lease of real property in the district with a remaining term
6-11 of 10 years or more, excluding options, is considered to be an
6-12 owner of real property for purposes of this section.
6-13 Sec. 376.463. GENERAL POWERS. The district has:
6-14 (1) all powers necessary or required to accomplish the
6-15 purposes for which the district was created;
6-16 (2) the powers and duties of a municipal management
6-17 district under Subchapter E, Chapter 375; and
6-18 (3) the powers given to an industrial development
6-19 corporation organized under the Development Corporation Act of 1979
6-20 (Article 5190.6, Vernon's Texas Civil Statutes).
6-21 Sec. 376.464. SPECIFIC POWERS AND LIMITATIONS. (a) The
6-22 district may:
6-23 (1) impose and collect, and apply the proceeds from, a
6-24 limited sales and use tax for the district's purposes;
6-25 (2) borrow money for the corporate purposes of the
6-26 district;
6-27 (3) add or exclude territory in the manner provided by
7-1 Subchapter J, Chapter 49, Water Code;
7-2 (4) contract with a person to accomplish the
7-3 district's purposes, including entering into a contract for the
7-4 payment of costs incurred by the person on behalf of the district,
7-5 including all or part of the costs of an improvement project, from
7-6 tax proceeds or any other specified source of money;
7-7 (5) contract with a person to receive, administer, and
7-8 perform the district's duties under a gift, grant, loan,
7-9 conveyance, transfer, bequest, donation, or other financial
7-10 arrangement relating to the investigation, planning, analysis,
7-11 acquisition, construction, completion, implementation, or operation
7-12 of a proposed or existing improvement project;
7-13 (6) establish and collect user fees, concession fees,
7-14 admission fees, rental fees, or other similar fees or charges and
7-15 apply the proceeds from those fees or charges for the enjoyment,
7-16 sale, rental, or other use of the district's facilities, services,
7-17 or improvement projects;
7-18 (7) adopt rules for:
7-19 (A) the administration and operation of the
7-20 district;
7-21 (B) the use, enjoyment, availability,
7-22 protection, security, and maintenance of the district's
7-23 facilities; and
7-24 (C) the provision of public safety and security
7-25 in the district;
7-26 (8) provide or secure the payment or repayment of any
7-27 district expense, including:
8-1 (A) a district cost relating to an improvement
8-2 project;
8-3 (B) a district contractual obligation or
8-4 indebtedness, because of a lease, installment purchase contract, or
8-5 other agreement; or
8-6 (C) a tax, user fee, concession fee, rental fee,
8-7 or other revenue or resources of the district; and
8-8 (9) undertake improvement projects separately or
8-9 jointly with other persons or entities and pay all or part of the
8-10 costs of improvement projects, including improvement projects that:
8-11 (A) improve, enhance, or support public safety
8-12 and security, fire protection, emergency medical services, or law
8-13 enforcement in the district;
8-14 (B) confer a general benefit on the entire
8-15 district and the areas adjacent to the district; or
8-16 (C) confer a special benefit on all or part of
8-17 the district.
8-18 (b) The district may not employ peace officers.
8-19 (c) The district may not impose an ad valorem tax on
8-20 property in the district.
8-21 (d) The district may, as if the district was a home-rule
8-22 municipality with a population of more than 100,000:
8-23 (1) issue bonds and lease, acquire, or construct a
8-24 building or facility as provided by Section 380.002; and
8-25 (2) establish and administer a program as provided by
8-26 Subchapter A, Chapter 1509, Government Code.
8-27 Sec. 376.465. SPECIFIC POWERS RELATING TO IMPROVEMENTS. An
9-1 improvement project or service provided by the district may
9-2 include:
9-3 (1) the construction, acquisition, lease, rental,
9-4 installment purchase, improvement, rehabilitation, repair,
9-5 relocation, and operation of:
9-6 (A) landscaping; lighting, banners, or signs;
9-7 streets or sidewalks; pedestrian or bicycle paths and trails;
9-8 pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
9-9 right-of-way or transit corridor beautification and improvements;
9-10 (B) drainage or storm water detention
9-11 improvements and solid waste, water, sewer, or power facilities and
9-12 services, including electrical, gas, steam, and chilled water
9-13 facilities and services;
9-14 (C) parks, lakes, gardens, recreational
9-15 facilities, open space, scenic areas, and related exhibits and
9-16 preserves; fountains, plazas, or pedestrian malls; public art or
9-17 sculpture and related exhibits and facilities; educational or
9-18 cultural exhibits and facilities, including exhibits, displays,
9-19 attractions, or facilities for special events, holidays, or
9-20 seasonal or cultural celebrations;
9-21 (D) off-street parking facilities, bus
9-22 terminals, heliports, mass-transit, and roadway or water
9-23 transportation systems; and
9-24 (E) other public improvements, facilities, or
9-25 services similar to the improvements, facilities, or services
9-26 described by Paragraphs (A) through (D);
9-27 (2) the cost of removal, razing, demolition, or
10-1 clearing of land or improvements in connection with providing an
10-2 improvement project;
10-3 (3) the acquisition of property or an interest in the
10-4 property that is made in connection with an authorized improvement
10-5 project; and
10-6 (4) the provision of special or supplemental services
10-7 to improve or promote the area in the district or to protect the
10-8 public health and safety in the district, including advertising,
10-9 promotion, tourism, health and sanitation, public safety, security,
10-10 fire protection or emergency medical services, business
10-11 recruitment, development, elimination of traffic congestion, and
10-12 recreational, educational, or cultural improvements, enhancements,
10-13 or services.
10-14 Sec. 376.466. RELATION TO OTHER LAW. If a law referenced in
10-15 Section 376.463 or referenced in Subchapter E, Chapter 375, is in
10-16 conflict with or inconsistent with this subchapter, this subchapter
10-17 prevails. A law referenced in Section 376.463 or Subchapter E,
10-18 Chapter 375, that is not in conflict with or inconsistent with this
10-19 subchapter is adopted and incorporated by reference and may be used
10-20 by the district independently of each other.
10-21 Sec. 376.467. NO EMINENT DOMAIN POWER. The district may not
10-22 exercise the power of eminent domain.
10-23 Sec. 376.468. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The
10-24 district may not impose an impact fee or assessment on a single
10-25 family residential property or a residential duplex, triplex,
10-26 fourplex, or condominium.
10-27 Sec. 376.469. SALES AND USE TAX; EXCISE TAX. (a) For
11-1 purposes of this section:
11-2 (1) "Taxable items" includes all items subject to any
11-3 sales and use tax that is imposed by the county if the county has
11-4 imposed a sales and use tax.
11-5 (2) "Use," with respect to a taxable service, means
11-6 the derivation in the district of a direct or indirect benefit from
11-7 the service.
11-8 (b) The district may impose a sales and use tax for the
11-9 benefit of the district if authorized by a majority of the
11-10 qualified voters of the district voting at an election called for
11-11 that purpose.
11-12 (c) If the district adopts the tax:
11-13 (1) a tax is imposed on the receipts from the sale at
11-14 retail of taxable items in the district; and
11-15 (2) an excise tax is imposed on the use, storage, or
11-16 other consumption in the district of taxable items purchased or
11-17 rented from a retailer during the period that the tax is effective
11-18 in the district.
11-19 (d) The rate of the excise tax is the same as the rate of
11-20 the sales tax portion of the tax applied to the sales price of the
11-21 taxable items and is included in the sales tax.
11-22 Sec. 376.470. TAX ELECTION PROCEDURES. (a) The board by
11-23 order may call an election to adopt, change the rate of, or abolish
11-24 a sales and use tax. The election may be held at the same time and
11-25 in conjunction with a confirmation or directors election.
11-26 (b) The election must be held on the next uniform election
11-27 date that falls on or after the 45th day after the date the order
12-1 calling the election is adopted.
12-2 (c) Notice of the election shall be given and the election
12-3 shall be held and conducted in the manner prescribed for bond
12-4 elections under Subchapter D, Chapter 49, Water Code.
12-5 (d) In an election to adopt the tax, the ballot shall be
12-6 prepared to permit voting for or against the proposition: "The
12-7 adoption of a local sales and use tax in the Port Bolivar
12-8 Improvement District at the rate of (proposed tax rate)."
12-9 (e) In an election to change the rate of the tax, the ballot
12-10 shall be prepared to permit voting for or against the proposition:
12-11 "The (increase or decrease, as applicable) in the rate of the local
12-12 sales and use tax imposed in the Port Bolivar Improvement District
12-13 from (tax rate on election date) percent to (proposed tax rate)
12-14 percent."
12-15 (f) In an election to abolish the tax, the ballot shall be
12-16 prepared to permit voting for or against the proposition: "The
12-17 abolition of the local sales and use tax in the Port Bolivar
12-18 Improvement District."
12-19 Sec. 376.471. IMPOSITION, COMPUTATION, ADMINISTRATION, AND
12-20 GOVERNANCE OF TAX. (a) Chapter 323, Tax Code, to the extent not
12-21 inconsistent with this subchapter, governs the application,
12-22 collection, and administration of the tax under this subchapter,
12-23 except Sections 323.401 through 323.406, and 323.505, Tax Code, do
12-24 not apply. Subtitles A and B, Title 2, and Chapter 151, Tax Code,
12-25 govern the administration and enforcement of the taxes under this
12-26 subchapter.
12-27 (b) Chapter 323, Tax Code, does not apply to the use and
13-1 allocation of revenues under this subchapter.
13-2 (c) In applying Chapter 323, Tax Code, the district's name
13-3 shall be substituted for references in that chapter to "the county"
13-4 and the board is substituted for references in that chapter to
13-5 "commissioners court."
13-6 Sec. 376.472. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
13-7 adoption of a tax rate or change in the tax rate takes effect after
13-8 the expiration of the first complete calendar quarter occurring
13-9 after the date on which the comptroller receives a notice of the
13-10 results of the election.
13-11 Sec. 376.473. TAX RATES. The district may impose the sales
13-12 and use tax under this subchapter in increments of one-eighth of
13-13 one percent, with a minimum tax of one-half percent and a maximum
13-14 tax of one percent.
13-15 Sec. 376.474. ABOLITION OF TAX RATE. The board by order may
13-16 abolish the local sales and use tax rate without an election.
13-17 Sec. 376.475. USE OF TAX. Taxes collected under this
13-18 subchapter may be used only for the purposes for which the district
13-19 was created.
13-20 Sec. 376.476. SUBMISSION OF ANNEXATION INFORMATION. Not
13-21 later than the 10th day after the date on which the district
13-22 annexes or excludes territory, the board shall send to the
13-23 comptroller a certified copy of any resolution, order, or ordinance
13-24 relating to the annexation or exclusion.
13-25 Sec. 376.477. BONDS. (a) The board may issue bonds as
13-26 provided by Subchapter J, Chapter 375.
13-27 (b) In addition to the sources described in Subchapter J,
14-1 Chapter 375, the bonds issued by the district may be secured and
14-2 made payable, wholly or partly, by a pledge of any part of the net
14-3 proceeds the district receives from a specified portion of not more
14-4 than one-half of the maximum sales and use tax amount authorized
14-5 and approved by voters of the district under Section 376.470.
14-6 (c) Sections 375.207 and 375.208 do not apply to bonds
14-7 issued under this section.
14-8 Sec. 376.478. CONTRACTING AUTHORITY. (a) The district may
14-9 contract with any person to carry out the purposes of this
14-10 subchapter on terms and for the period the board determines.
14-11 (b) Any person, including any type of governmental entity,
14-12 may contract with the district to carry out the purposes of this
14-13 subchapter.
14-14 Sec. 376.479. DISSOLUTION BY BOARD ORDER. The board by
14-15 order may dissolve the district at any time unless the district has
14-16 outstanding indebtedness or contractual obligations.
14-17 Sec. 376.480. DISSOLUTION BY PETITION OF OWNERS. (a) The
14-18 board by order shall dissolve the district if the board receives a
14-19 written petition signed by the owners of 75 percent or more of the
14-20 real property acreage in the district.
14-21 (b) After the date the district is dissolved, the district
14-22 may not levy taxes.
14-23 (c) If on the date the district is dissolved the district
14-24 has outstanding liabilities, the board shall, not later than the
14-25 30th day after the dissolution, adopt a resolution certifying each
14-26 outstanding liability. The county in which the district is located
14-27 shall assume the outstanding liabilities. The county shall collect
15-1 the sales and use tax for the district for the remainder of the
15-2 calendar year. The county may continue to collect the tax for an
15-3 additional calendar year if the commissioners court finds that the
15-4 tax revenue is needed to retire the district liabilities that were
15-5 assumed by the county.
15-6 (d) The district may continue to operate for a period not to
15-7 exceed two months after carrying out the responsibilities required
15-8 by Subsection (c). The district is continued in effect for the
15-9 purpose of satisfying these responsibilities.
15-10 (e) If the district is continued in effect under Subsection
15-11 (d), the district is dissolved entirely on the first day of the
15-12 month following the month in which the board certifies to the
15-13 secretary of state that the district has satisfied the
15-14 responsibilities of Subsection (c).
15-15 Sec. 376.481. ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
15-16 DISSOLUTION. (a) After the board orders the dissolution of the
15-17 district, the board shall transfer ownership of all district
15-18 property to the county, except as provided by Subsection (b).
15-19 (b) If, on the date on which the board orders the
15-20 dissolution, more than 50 percent of the district territory is in a
15-21 municipality, the board shall transfer ownership of the district's
15-22 property to the municipality.
15-23 SECTION 2. The legislature finds that:
15-24 (1) the proper and legal notice of the intention to
15-25 introduce this Act, setting forth the general substance of this
15-26 Act, has been published as provided by law, and the notice and a
15-27 copy of this Act have been furnished to all persons, agencies,
16-1 officials, or entities to which they are required to be furnished
16-2 by the constitution and laws of this state, including the governor,
16-3 who has submitted the notice and a copy of this Act to the Texas
16-4 Natural Resource Conservation Commission;
16-5 (2) the Texas Natural Resource Conservation Commission
16-6 has filed its recommendations relating to this Act with the
16-7 governor, lieutenant governor, and speaker of the house of
16-8 representatives within the required time;
16-9 (3) the general law relating to consent by political
16-10 subdivisions to the creation of districts with conservation,
16-11 reclamation, and road powers and the inclusion of land in those
16-12 districts has been complied with; and
16-13 (4) all requirements of the constitution and laws of
16-14 this state and the rules and procedures of the legislature with
16-15 respect to the notice, introduction, and passage of this Act have
16-16 been fulfilled and accomplished.
16-17 SECTION 3. This Act takes effect immediately if it receives
16-18 a vote of two-thirds of all the members elected to each house, as
16-19 provided by Section 39, Article III, Texas Constitution. If this
16-20 Act does not receive the vote necessary for immediate effect, this
16-21 Act takes effect September 1, 2001.