1-1     By:  Bernsen                                          S.B. No. 1773
 1-2           (In the Senate - Filed March 21, 2001; March 22, 2001, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 17, 2001, reported favorably by the following
 1-5     vote:  Yeas 7, Nays 0; April 17, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation of the Port Bolivar Improvement District;
 1-9     providing authority to impose a tax and issue bonds.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-12     adding Subchapter K to read as follows:
1-13              SUBCHAPTER K.  PORT BOLIVAR IMPROVEMENT DISTRICT
1-14           Sec. 376.451.  CREATION AND NAME OF DISTRICT.  (a)  The Port
1-15     Bolivar Improvement District is created as a special district under
1-16     Section 59, Article XVI, Texas Constitution.
1-17           (b)  The board by resolution may change the district's name.
1-18           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-19     the district is necessary to promote and expand business
1-20     opportunities and to create jobs in the Port Bolivar area of
1-21     Galveston County.
1-22           (b)  The creation of the district and this legislation do not
1-23     relieve the county from providing the level of services, as of the
1-24     effective date of this subchapter, to the area in the district or
1-25     release the county from the obligations it has to provide services
1-26     to that area.  The district is created to supplement and not
1-27     supplant the county services provided in the area in the district.
1-28           (c)  The creation of the district is essential to accomplish
1-29     the purposes of Section 52, Article III, Section 59, Article XVI,
1-30     and Section 52-a, Article III, Texas Constitution, and other public
1-31     purposes stated in this subchapter.
1-32           Sec. 376.453.  DEFINITIONS.  In this subchapter:
1-33                 (1)  "Board" means the board of directors of the
1-34     district.
1-35                 (2)  "County" means Galveston County, Texas.
1-36                 (3)  "District" means the Port Bolivar Improvement
1-37     District.
1-38           Sec. 376.454.  BOUNDARIES.  The district includes all the
1-39     territory contained in the following Galveston County election
1-40     precincts as of February 1, 2001:
1-41                 (1)  101;
1-42                 (2)  102;
1-43                 (3)  103; and
1-44                 (4)  104.
1-45           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
1-46     boundaries and field notes of the district form a closure.  If a
1-47     mistake is made in the field notes or in copying the field notes in
1-48     the legislative process, the mistake does not in any way affect the
1-49     district's:
1-50                 (1)  organization, existence, or validity;
1-51                 (2)  right to issue any type of bond for the purposes
1-52     for which the district is created or to pay the principal of and
1-53     interest on a bond;
1-54                 (3)  right to impose or collect an assessment or tax;
1-55     or
1-56                 (4)  legality or operation.
1-57           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
1-58     (a)  The district is created to serve a public use and benefit.
1-59     All the land and other property included in the district will be
1-60     benefited by the improvements and services to be provided by the
1-61     district under powers conferred by Section 52, Article III, Section
1-62     59, Article XVI, and Section 52-a, Article III, Texas Constitution,
1-63     and other powers granted under this subchapter.
1-64           (b)  The creation of the district is in the public interest
 2-1     and is essential to:
 2-2                 (1)  further the public purposes of the development and
 2-3     diversification of the economy of the state; and
 2-4                 (2)  eliminate unemployment and underemployment and
 2-5     develop or expand transportation and commerce.
 2-6           (c)  The district will:
 2-7                 (1)  promote the health, safety, and general welfare of
 2-8     residents, employers, potential employees, employees, visitors,
 2-9     consumers in the district, and the general public;
2-10                 (2)  provide needed funding for the Port Bolivar area
2-11     to preserve, maintain, and enhance the economic health and vitality
2-12     of the area as a community and business center; and
2-13                 (3)  further promote the health, safety, welfare, and
2-14     enjoyment of the public by providing pedestrian ways and by
2-15     landscaping and developing certain areas in the district, which are
2-16     necessary for the restoration, preservation, and enhancement of
2-17     scenic beauty.
2-18           (d)  The district may not act as the agent or instrumentality
2-19     of any private interest even though many private interests will be
2-20     benefited by the district, as will the general public.
2-21           Sec. 376.457.  INITIAL DIRECTORS.  (a)  The Commissioners
2-22     Court of Galveston County shall appoint five initial directors.  To
2-23     be eligible for appointment, a director must have the
2-24     qualifications specified in Section 376.462.
2-25           (b)  In making appointments, the commissioners court shall
2-26     attempt to appoint directors who reflect the residents in the area
2-27     of the district.
2-28           Sec. 376.458.  CONFIRMATION ELECTION.  (a)  The initial
2-29     directors shall meet as soon as practicable after all initial
2-30     directors have qualified for office.  The board shall call an
2-31     election to confirm the creation of the district.  The board shall
2-32     call the confirmation election at the first meeting unless the
2-33     board calls a hearing to exclude territory from the district.
2-34           (b)  The confirmation election shall be held in the manner
2-35     provided by Section 49.102, Water Code.  The election must be held
2-36     on the first uniform election date provided by Section 41.001,
2-37     Election Code, that falls on or after the 45th day after the date
2-38     of the order calling the election.
2-39           (c)  If a majority of the votes cast in the election are
2-40     against confirmation, the board may not call or hold another
2-41     confirmation election until the expiration of six months after the
2-42     date of the most recent confirmation election.
2-43           (d)  Before the creation of the district is confirmed, the
2-44     district may not borrow money or impose taxes.  The district may
2-45     carry on other business as the board determines.
2-46           Sec. 376.459.  ELECTION OF DIRECTORS.  (a)  As soon as
2-47     practicable after the first anniversary of the date on which the
2-48     creation of the district is confirmed, the board shall call and
2-49     hold an election to elect the initial permanent directors.
2-50           (b)  The election shall be held in the manner provided by
2-51     Section 49.102, Water Code.
2-52           (c)  The election must be held on the first uniform election
2-53     date provided by Section 41.001, Election Code, that falls on or
2-54     after the 45th day after the date of the order calling the
2-55     election.  The directors elected at the first election shall draw
2-56     lots to determine their terms so that two serve terms expiring on
2-57     the first July 1 of an even-numbered year after the election and
2-58     three serve terms expiring July 1 of the second year after the year
2-59     in which the first terms expire.
2-60           (d)  An election to elect the appropriate number of successor
2-61     directors shall be held on the uniform election date, established
2-62     by the Election Code, in May of each even-numbered year.
2-63           Sec. 376.460.  BOARD OF DIRECTORS; TERMS.  The district is
2-64     governed by a board of five directors who serve staggered four-year
2-65     terms, with two or three members' terms expiring July 1 of each
2-66     even-numbered year.
2-67           Sec. 376.461.  ADMINISTRATION OF BOARD.  Sections
2-68     375.066-375.070 apply to the board as if it were established under
2-69     Chapter 375.
 3-1           Sec. 376.462.  QUALIFICATIONS OF DIRECTOR.  (a)  To be
 3-2     qualified to serve as a director, a person must be at least 18
 3-3     years of age and:
 3-4                 (1)  reside in the district;
 3-5                 (2)  own real property in the district;
 3-6                 (3)  own stock in a corporation that owns real property
 3-7     in the district;
 3-8                 (4)  own a beneficial interest in a trust that owns
 3-9     real property in the district; or
3-10                 (5)  be an agent, employee, or tenant of a person
3-11     covered by Subdivision (2), (3), or (4).
3-12           (b)  A person or entity that owns an interest in a general or
3-13     limited partnership owning real property in the district or that
3-14     has a lease of real property in the district with a remaining term
3-15     of 10 years or more, excluding options, is considered to be an
3-16     owner of real property for purposes of this section.
3-17           Sec. 376.463.  GENERAL POWERS.  The district has:
3-18                 (1)  all powers necessary or required to accomplish the
3-19     purposes for which the district was created;
3-20                 (2)  the powers and duties of a municipal management
3-21     district under Subchapter E, Chapter 375; and
3-22                 (3)  the powers given to an industrial development
3-23     corporation organized under the Development Corporation Act of 1979
3-24     (Article 5190.6, Vernon's Texas Civil Statutes).
3-25           Sec. 376.464.  SPECIFIC POWERS AND LIMITATIONS.  (a)  The
3-26     district may:
3-27                 (1)  impose and collect, and apply the proceeds from, a
3-28     limited sales and use tax for the district's purposes;
3-29                 (2)  borrow money for the corporate purposes of the
3-30     district;
3-31                 (3)  add or exclude territory in the manner provided by
3-32     Subchapter J, Chapter 49, Water Code;
3-33                 (4)  contract with a person to accomplish the
3-34     district's purposes, including entering into a contract for the
3-35     payment of costs incurred by the person on behalf of the district,
3-36     including all or part of the costs of an improvement project, from
3-37     tax proceeds or any other specified source of money;
3-38                 (5)  contract with a person to receive, administer, and
3-39     perform the district's duties under a gift, grant, loan,
3-40     conveyance, transfer, bequest, donation, or other financial
3-41     arrangement relating to the investigation, planning, analysis,
3-42     acquisition, construction, completion, implementation, or operation
3-43     of a proposed or existing improvement project;
3-44                 (6)  establish and collect user fees, concession fees,
3-45     admission fees, rental fees, or other similar fees or charges and
3-46     apply the proceeds from those fees or charges for the enjoyment,
3-47     sale, rental, or other use of the district's facilities, services,
3-48     or improvement projects;
3-49                 (7)  adopt rules for:
3-50                       (A)  the administration and operation of the
3-51     district;
3-52                       (B)  the use, enjoyment, availability,
3-53     protection, security, and maintenance of the district's
3-54     facilities; and
3-55                       (C)  the provision of public safety and security
3-56     in the district;
3-57                 (8)  provide or secure the payment or repayment of any
3-58     district expense, including:
3-59                       (A)  a district cost relating to an improvement
3-60     project;
3-61                       (B)  a district contractual obligation or
3-62     indebtedness, because of a lease, installment purchase contract, or
3-63     other agreement; or
3-64                       (C)  a tax, user fee, concession fee, rental fee,
3-65     or other revenue or resources of the district; and
3-66                 (9)  undertake improvement projects separately or
3-67     jointly with other persons or entities and pay all or part of the
3-68     costs of improvement projects, including improvement projects that:
3-69                       (A)  improve, enhance, or support public safety
 4-1     and security, fire protection, emergency medical services, or law
 4-2     enforcement in the district;
 4-3                       (B)  confer a general benefit on the entire
 4-4     district and the areas adjacent to the district; or
 4-5                       (C)  confer a special benefit on all or part of
 4-6     the district.
 4-7           (b)  The district may not employ peace officers.
 4-8           (c)  The district may not impose an ad valorem tax on
 4-9     property in the district.
4-10           (d)  The district may, as if the district were a home-rule
4-11     municipality with a population of more than 100,000:
4-12                 (1)  issue bonds and lease, acquire, or construct a
4-13     building or facility as provided by Subchapter A, Chapter 1509,
4-14     Government Code; and
4-15                 (2)  establish and administer a program as provided by
4-16     Section 380.002.
4-17           Sec. 376.465.  SPECIFIC POWERS RELATING TO IMPROVEMENTS.  An
4-18     improvement project or service provided by the district may
4-19     include:
4-20                 (1)  the construction, acquisition, lease, rental,
4-21     installment purchase, improvement, rehabilitation, repair,
4-22     relocation, and operation of:
4-23                       (A)  landscaping; lighting, banners, or signs;
4-24     streets or sidewalks; pedestrian or bicycle paths and trails;
4-25     pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
4-26     right-of-way or transit corridor beautification and improvements;
4-27                       (B)  drainage or storm water detention
4-28     improvements and solid waste, water, sewer, or power facilities and
4-29     services, including electrical, gas, steam, and chilled-water
4-30     facilities and services;
4-31                       (C)  parks, lakes, gardens, recreational
4-32     facilities, open space, scenic areas, and related exhibits and
4-33     preserves; fountains, plazas, or pedestrian malls; public art or
4-34     sculpture and related exhibits and facilities; educational or
4-35     cultural exhibits and facilities, including exhibits, displays,
4-36     attractions, or facilities for special events, holidays, or
4-37     seasonal or cultural celebrations;
4-38                       (D)  off-street parking facilities, bus
4-39     terminals, heliports, mass transit, and roadway or water
4-40     transportation systems; and
4-41                       (E)  other public improvements, facilities, or
4-42     services similar to the improvements, facilities, or services
4-43     described by Paragraphs (A)-(D);
4-44                 (2)  the cost of removal, razing, demolition, or
4-45     clearing of land or improvements in connection with providing an
4-46     improvement project;
4-47                 (3)  the acquisition of property or an interest in the
4-48     property that is made in connection with an authorized improvement
4-49     project; and
4-50                 (4)  the provision of special or supplemental services
4-51     to improve or promote the area in the district or to protect the
4-52     public health and safety in the district, including advertising,
4-53     promotion, tourism, health and sanitation, public safety, security,
4-54     fire protection or emergency medical services, business
4-55     recruitment, development, elimination of traffic congestion, and
4-56     recreational, educational, or cultural improvements, enhancements,
4-57     or services.
4-58           Sec. 376.466.  RELATION TO OTHER LAW.  If a law referenced in
4-59     Section 376.463 or referenced in Subchapter E, Chapter 375, is in
4-60     conflict with or inconsistent with this subchapter, this subchapter
4-61     prevails.  A law referenced in Section 376.463 or Subchapter E,
4-62     Chapter 375, that is not in conflict with or inconsistent with this
4-63     subchapter is adopted and incorporated by reference and may be used
4-64     by the district independently of each other.
4-65           Sec. 376.467.  NO EMINENT DOMAIN POWER.  The district may not
4-66     exercise the power of eminent domain.
4-67           Sec. 376.468.  CERTAIN RESIDENTIAL PROPERTY EXEMPT.  The
4-68     district may not impose an impact fee or assessment on a
4-69     single-family residential property or a residential duplex,
 5-1     triplex, fourplex, or condominium.
 5-2           Sec. 376.469.  SALES AND USE TAX; EXCISE TAX.  (a)  For
 5-3     purposes of this section:
 5-4                 (1)  "Taxable items" includes all items subject to any
 5-5     sales and use tax that is imposed by the county if the county has
 5-6     imposed a sales and use tax.
 5-7                 (2)  "Use," with respect to a taxable service, means
 5-8     the derivation in the district of a direct or indirect benefit from
 5-9     the service.
5-10           (b)  The district may impose a sales and use tax for the
5-11     benefit of the district if authorized by a majority of the
5-12     qualified voters of the district voting at an election called for
5-13     that purpose.
5-14           (c)  If the district adopts the tax:
5-15                 (1)  a tax is imposed on the receipts from the sale at
5-16     retail of taxable items in the district; and
5-17                 (2)  an excise tax is imposed on the use, storage, or
5-18     other consumption in the district of taxable items purchased or
5-19     rented from a retailer during the period that the tax is effective
5-20     in the district.
5-21           (d)  The rate of the excise tax is the same as the rate of
5-22     the sales tax portion of the tax applied to the sales price of the
5-23     taxable items and is included in the sales tax.
5-24           Sec. 376.470.  TAX ELECTION PROCEDURES.  (a)  The board by
5-25     order may call an election to adopt, change the rate of, or abolish
5-26     a sales and use tax.  The election may be held at the same time and
5-27     in conjunction with a confirmation or directors election.
5-28           (b)  The election must be held on the next uniform election
5-29     date that falls on or after the 45th day after the date the order
5-30     calling the election is adopted.
5-31           (c)  Notice of the election shall be given and the election
5-32     shall be held and conducted in the manner prescribed for bond
5-33     elections under Subchapter D, Chapter 49, Water Code.
5-34           (d)  In an election to adopt the tax, the ballot shall be
5-35     prepared to permit voting for or against the proposition:  "The
5-36     adoption of a local sales and use tax in the Port Bolivar
5-37     Improvement District at the rate of (proposed tax rate)."
5-38           (e)  In an election to change the rate of the tax, the ballot
5-39     shall be prepared to permit voting for or against the proposition:
5-40     "The (increase or decrease, as applicable) in the rate of the local
5-41     sales and use tax imposed in the Port Bolivar Improvement District
5-42     from (tax rate on election date) percent to (proposed tax rate)
5-43     percent."
5-44           (f)  In an election to abolish the tax, the ballot shall be
5-45     prepared to permit voting for or against the proposition:  "The
5-46     abolition of the local sales and use tax in the Port Bolivar
5-47     Improvement District."
5-48           Sec. 376.471.  IMPOSITION, COMPUTATION, ADMINISTRATION, AND
5-49     GOVERNANCE OF TAX.  (a)  Chapter 323, Tax Code, to the extent not
5-50     inconsistent with this subchapter, governs the application,
5-51     collection, and administration of the tax under this subchapter,
5-52     except that Sections 323.401 through 323.406 and 323.505, Tax Code,
5-53     do not apply.  Subtitles A and B, Title 2, and Chapter 151, Tax
5-54     Code, govern the administration and enforcement of the taxes under
5-55     this subchapter.
5-56           (b)  Chapter 323, Tax Code, does not apply to the use and
5-57     allocation of revenues under this subchapter.
5-58           (c)  In applying Chapter 323, Tax Code, the district's name
5-59     shall be substituted for references in that chapter to "the county"
5-60     and the board is substituted for references in that chapter to
5-61     "commissioners court."
5-62           Sec. 376.472.  EFFECTIVE DATE OF TAX OR TAX CHANGE.  The
5-63     adoption of a tax rate or change in the tax rate takes effect after
5-64     the expiration of the first complete calendar quarter occurring
5-65     after the date on which the comptroller receives a notice of the
5-66     results of the election.
5-67           Sec. 376.473.  TAX RATES.  The district may impose the sales
5-68     and use tax under this subchapter in increments of one-eighth of
5-69     one percent, with a minimum tax of one-half percent and a maximum
 6-1     tax of one percent.
 6-2           Sec. 376.474.  ABOLITION OF TAX RATE.  The board by order may
 6-3     abolish the local sales and use tax rate without an election.
 6-4           Sec. 376.475.  USE OF TAX.  Taxes collected under this
 6-5     subchapter may be used only for the purposes for which the district
 6-6     was created.
 6-7           Sec. 376.476.  SUBMISSION OF ANNEXATION INFORMATION.  Not
 6-8     later than the 10th day after the date on which the district
 6-9     annexes or excludes territory, the board shall send to the
6-10     comptroller a certified copy of any resolution, order, or ordinance
6-11     relating to the annexation or exclusion.
6-12           Sec. 376.477.  BONDS.  (a)  The board may issue bonds as
6-13     provided by Subchapter J, Chapter 375.
6-14           (b)  In addition to the sources described in Subchapter J,
6-15     Chapter 375, the bonds issued by the district may be secured and
6-16     made payable, wholly or partly, by a pledge of any part of the net
6-17     proceeds the district receives from a specified portion of not more
6-18     than one-half of the maximum sales and use tax amount authorized
6-19     and approved by voters of the district under Section 376.470.
6-20           (c)  Sections 375.207 and 375.208 do not apply to bonds
6-21     issued under this section.
6-22           Sec. 376.478.  CONTRACTING AUTHORITY.  (a)  The district may
6-23     contract with any person to carry out the purposes of this
6-24     subchapter on terms and for the period the board determines.
6-25           (b)  Any person, including any type of governmental entity,
6-26     may contract with the district to carry out the purposes of this
6-27     subchapter.
6-28           Sec. 376.479.  DISSOLUTION BY BOARD ORDER.  The board by
6-29     order may dissolve the district at any time unless the district has
6-30     outstanding indebtedness or contractual obligations.
6-31           Sec. 376.480.  DISSOLUTION BY PETITION OF OWNERS.  (a)  The
6-32     board by order shall dissolve the district if the board receives a
6-33     written petition signed by the owners of 75 percent or more of the
6-34     real property acreage in the district.
6-35           (b)  After the date the district is dissolved, the district
6-36     may not levy taxes.
6-37           (c)  If on the date the district is dissolved the district
6-38     has outstanding liabilities, the board shall, not later than the
6-39     30th day after the dissolution, adopt a resolution certifying each
6-40     outstanding liability.  The county in which the district is located
6-41     shall assume the outstanding liabilities.  The county shall collect
6-42     the sales and use tax for the district for the remainder of the
6-43     calendar year.  The county may continue to collect the tax for an
6-44     additional calendar year if the commissioners court finds that the
6-45     tax revenue is needed to retire the district liabilities that were
6-46     assumed by the county.
6-47           (d)  The district may continue to operate for a period not to
6-48     exceed two months after carrying out the responsibilities required
6-49     by Subsection (c).  The district is continued in effect for the
6-50     purpose of satisfying these responsibilities.
6-51           (e)  If the district is continued in effect under Subsection
6-52     (d), the district is dissolved entirely on the first day of the
6-53     month following the month in which the board certifies to the
6-54     secretary of state that the district has satisfied the
6-55     responsibilities of Subsection (c).
6-56           Sec. 376.481.  ADMINISTRATION OF DISTRICT PROPERTY FOLLOWING
6-57     DISSOLUTION.  (a)  After the board orders the dissolution of the
6-58     district, the board shall transfer ownership of all district
6-59     property to the county, except as provided by Subsection (b).
6-60           (b)  If, on the date on which the board orders the
6-61     dissolution, more than 50 percent of the district territory is in a
6-62     municipality, the board shall transfer ownership of the district's
6-63     property to the municipality.
6-64           SECTION 2.  The legislature finds that:
6-65                 (1)  the proper and legal notice of the intention to
6-66     introduce this Act, setting forth the general substance of this
6-67     Act, has been published as provided by law, and the notice and a
6-68     copy of this Act have been furnished to all persons, agencies,
6-69     officials, or entities to which they are required to be furnished
 7-1     by the constitution and laws of this state, including the governor,
 7-2     who has submitted the notice and a copy of this Act to the Texas
 7-3     Natural Resource Conservation Commission;
 7-4                 (2)  the Texas Natural Resource Conservation Commission
 7-5     has filed its recommendations relating to this Act with the
 7-6     governor, lieutenant governor, and speaker of the house of
 7-7     representatives within the required time;
 7-8                 (3)  the general law relating to consent by political
 7-9     subdivisions to the creation of districts with conservation,
7-10     reclamation, and road powers and the inclusion of land in those
7-11     districts has been complied with; and
7-12                 (4)  all requirements of the constitution and laws of
7-13     this state and the rules and procedures of the legislature with
7-14     respect to the notice, introduction, and passage of this Act have
7-15     been fulfilled and accomplished.
7-16           SECTION 3.  This Act takes effect immediately if it receives
7-17     a vote of two-thirds of all the members elected to each house, as
7-18     provided by Section 39, Article III, Texas Constitution.  If this
7-19     Act does not receive the vote necessary for immediate effect, this
7-20     Act takes effect September 1, 2001.
7-21                                  * * * * *