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 * * * * *