78R12563 DRH-F
By: West H.B. No. 3592
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Downtown Midland Management
District; providing authority to impose taxes and issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. CREATION OF DISTRICT. (a) The Downtown Midland
Management District is a special district created under Section 59,
Article XVI, Texas Constitution.
(b) The board by resolution may change the name of the
district.
SECTION 2. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Downtown Midland Management
District.
SECTION 3. DECLARATION OF INTENT. (a) The creation of the
district is essential to accomplish the purposes of Sections 52 and
52-a, Article III, and Section 59, Article XVI, Texas Constitution,
and other public purposes stated in this Act.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the area of the district.
(c) The creation of the district and this legislation may
not be interpreted to relieve Midland County or the City of Midland
from providing the level of services provided, as of the effective
date of this Act, to the area in the district. The district is
created to supplement and not to supplant the county or city
services provided in the area in the district.
(d) By creating the district and in authorizing the City of
Midland, Midland County, and other political subdivisions to
contract with the district, the legislature has established a
program to accomplish the public purposes set out in Section 52-a,
Article III, Texas Constitution.
SECTION 4. BOUNDARIES. The district includes all the
territory contained in the following described area in the City of
Midland:
BEGINNING at the intersection of the Westerly right-of-way line of
Pecos Street and the Northerly right-of-way line of Louisiana
Avenue;
THENCE proceeding in an Easterly direction from said POINT OF
BEGINNING along the Northerly right-of-way line of Louisiana Avenue
to the Westerly right-of-way line of Lorraine Street;
THENCE in a Northerly direction along the Westerly right-of-way
line of Lorraine Street to the Northerly right-of-way line of
Kansas Avenue;
THENCE in an Easterly direction along the Northerly right-of-way
line of Kansas Avenue to the Easterly right-of-way line of Main
Street;
THENCE in a Southerly direction along the Easterly right-of-way
line of Main Street to the Northerly right-of-way line of Louisiana
Avenue;
THENCE in an Easterly direction along the Northerly right-of-way
line of Louisiana Avenue to the Easterly right-of-way line of
Weatherford Street;
THENCE in a Southerly direction along the Easterly right-of-way
line of Weatherford Street to the Southerly right-of-way line of
Wall Street;
THENCE in a Westerly direction along the Southerly right-of-way
line of Wall Street to the Easterly right-of-way line of Main
Street;
THENCE in a Southerly direction along the Easterly right-of-way
line of Main Street to the Southerly right-of-way line of Front
Avenue;
THENCE in a Southwesterly direction along the Southerly
right-of-way line of Front Avenue to the Westerly right-of-way line
of Big Spring Street;
THENCE in a Northerly direction along the Westerly right-of-way
line of Big Spring Street to the Southerly right-of-way line of
Missouri Avenue;
THENCE in a Westerly direction along the Southerly right-of-way
line of Missouri Avenue to the Westerly right-of-way line of
Carrizo Street;
THENCE in a Northerly direction along the Westerly right-of-way
line of Carrizo Street to the Northerly right-of-way line of
Michigan Avenue;
THENCE in an Easterly direction along the Northerly right-of-way
line of Michigan Avenue to the Westerly right-of-way line of Pecos
Street;
THENCE in a Northerly direction along the Westerly right-of-way
line of Pecos Street to the Northerly right-of-way line of
Louisiana Avenue, the POINT OF BEGINNING.
SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries
and field notes of the district form a closure. If a mistake is made
in the field notes or in copying the field notes in the legislative
process, the mistake does not in any way affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for a purpose for
which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
SECTION 6. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit. All the land
and other property included in the district will benefit from the
improvements and services to be provided by the district under
powers conferred by Sections 52 and 52-a, Article III, and Section
59, Article XVI, Texas Constitution, and other powers granted under
this chapter.
(b) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of development and
diversification of the economy of the state; and
(2) eliminate unemployment and underemployment and
develop or expand transportation and commerce.
(c) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and the public;
(2) provide needed funding to preserve, maintain, and
enhance the economic health and vitality of the district as a
community and business center; and
(3) further promote the health, safety, welfare, and
enjoyment of the public by providing pedestrian ways and by
landscaping and developing certain areas in the district, which are
necessary for the restoration, preservation, and enhancement of
scenic beauty.
(d) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(e) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests, as well as the public.
SECTION 7. APPLICATION OF OTHER LAW. (a) Except as
otherwise provided by this Act, Chapter 375, Local Government Code,
applies to the district.
(b) Chapter 311, Government Code (Code Construction Act),
applies to this Act.
SECTION 8. CONSTRUCTION OF ACT. This Act shall be liberally
construed in conformity with the findings and purposes stated in
this Act.
SECTION 9. BOARD OF DIRECTORS IN GENERAL. (a) The district
is governed by a board of nine voting directors appointed under
Section 10 of this Act and nonvoting directors as provided by
Section 11 of this Act.
(b) Voting directors serve staggered terms of four years,
with four directors' terms expiring June 1 of an odd-numbered year
and five directors' terms expiring June 1 of the following
odd-numbered year.
(c) The board may increase or decrease the number of
directors on the board by resolution if the board finds that it is
in the best interest of the district. The board may not consist of
fewer than seven or more than 13 directors.
SECTION 10. APPOINTMENT OF DIRECTORS. The board shall
nominate a slate of persons to serve on the succeeding board as
voting directors. The members of the governing body of the City of
Midland shall appoint as voting directors the slate of persons
nominated by the board.
SECTION 11. NONVOTING DIRECTORS. (a) The following
persons serve as nonvoting directors:
(1) the directors of the following departments of the
City of Midland or their designees:
(A) parks and recreation;
(B) planning and zoning; and
(C) public works; and
(2) the city manager of the City of Midland or the city
manager's designee.
(b) If an agency, department, or division described by
Subsection (a) of this section is consolidated, renamed, or
changed, the board may appoint a director of the consolidated,
renamed, or changed agency, department, or division as a nonvoting
director. If an agency, department, or division described by
Subsection (a) of this section is abolished, the board may appoint a
representative of another agency, department, or division that
performs duties comparable to those performed by the abolished
entity.
(c) Nonvoting directors are not counted for the purposes of
establishing a quorum of the board.
SECTION 12. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)
Except as provided by this section:
(1) a director may participate in all board votes and
decisions; and
(2) Chapter 171, Local Government Code, governs
conflicts of interest for directors.
(b) Section 171.004, Local Government Code, does not apply
to the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary benefit
from a board action shall file a one-time affidavit declaring the
interest. An additional affidavit is not required if the director's
interest changes. After the affidavit is filed with the board
secretary, the director may participate in a discussion or vote on
that action if:
(1) a majority of the directors have a similar
interest in the same entity; or
(2) all other similar business or charitable entities
in the district will receive a similar pecuniary benefit.
(c) A director who is also an officer or employee of a public
entity may not participate in the discussion of or vote on a matter
regarding a contract with that same public entity.
(d) For purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that
a person would have a substantial interest in a business entity
under Section 171.002, Local Government Code.
SECTION 13. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to:
(1) a corporation created under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes), including the power to own, operate, acquire,
construct, lease, improve, and maintain projects described by that
section; and
(2) a housing finance corporation created under
Chapter 394, Local Government Code, to provide housing or
residential development projects in the district.
SECTION 14. AGREEMENTS; GRANTS. (a) The district may make
an agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
SECTION 15. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with Midland County or
the City of Midland to provide law enforcement services in the
district for a fee.
SECTION 16. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act on behalf of the district in implementing a project
or providing a service authorized by this Act.
(b) The board shall appoint the board of directors of a
nonprofit corporation created under this section. The board of
directors of the nonprofit corporation shall serve in the same
manner as the board of directors of a local government corporation
created under Chapter 431, Transportation Code.
(c) A nonprofit corporation created under this section has
the powers of and is considered for purposes of this Act to be a
local government corporation created under Chapter 431,
Transportation Code.
(d) A nonprofit corporation created under this section may
implement any project and provide any service authorized by this
Act.
SECTION 17. REQUIREMENTS FOR FINANCING SERVICES AND
IMPROVEMENTS. The board may not finance a service or improvement
project with assessments under this Act unless a written petition
requesting that improvement or service has been filed with the
board. The petition must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district subject to assessment as determined
by the most recent certified tax appraisal roll for Midland County;
or
(2) at least 25 persons who own real property in the
district, if more than 25 persons own real property in the district
as determined by the most recent certified tax appraisal roll for
Midland County.
SECTION 18. ELECTIONS. (a) The district shall hold an
election in the manner provided by Subchapter L, Chapter 375, Local
Government Code, to obtain voter approval before the district
imposes a maintenance tax or issues a bond payable from ad valorem
taxes.
(b) The board may include more than one purpose in a single
proposition at an election.
(c) Section 375.243, Local Government Code, does not apply
to the district.
SECTION 19. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 18 of this Act, the
district may impose an annual ad valorem tax on taxable property in
the district for the maintenance and operation of the district and
the improvements constructed or acquired by the district or for the
provision of services.
(b) The board shall determine the tax rate.
SECTION 20. ASSESSMENTS. (a) The board by resolution may
impose and collect an assessment for any purpose authorized by this
Act.
(b) The board may not impose an assessment on a parcel of
real property that at the time of the assessment is appraised at
less than $200,000, according to the most recent certified tax
appraisal roll for Midland County, without the written consent of
the owner of the parcel.
(c) Assessments, including assessments resulting from an
addition to or correction of the assessment roll by the district,
reassessments, penalties and interest on an assessment or
reassessment, expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(d) The lien is effective from the date of the resolution of
the board imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(e) The board may make corrections to or deletions from the
assessment roll without notice and hearing in the manner required
for additional assessments if the corrections or deletions do not
increase the amount of assessment of any parcel of land.
SECTION 21. UTILITIES. The district may not impose an
impact fee or assessment on the property, equipment, rights-of-way,
facilities, or improvements of an electric utility or a power
generation company as defined by Section 31.002, Utilities Code, or
a gas utility as defined by Section 101.003 or 121.001, Utilities
Code, or of a person that provides to the public cable television or
advanced telecommunications services.
SECTION 22. BONDS. (a) The district may issue bonds or
other obligations payable in whole or in part from ad valorem taxes,
assessments, impact fees, revenue, grants, or other money of the
district, or any combination of those sources of money, to pay for
any authorized purpose of the district.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
SECTION 23. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the City of Midland is not required to pay a bond,
note, or other obligation of the district.
SECTION 24. DISBURSEMENTS OR TRANSFERS OF MONEY. The board
by resolution shall establish the number of directors' signatures
and the procedure required for a disbursement or transfer of the
district's money.
SECTION 25. COMPETITIVE BIDDING LIMIT. Section 375.221,
Local Government Code, applies to the district only for a contract
that has a value greater than $50,000.
SECTION 26. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
OUTSTANDING DEBT. (a) The board may vote to dissolve a district
that has debt. If the vote is in favor of dissolution, the district
shall remain in existence solely for the limited purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
(b) Section 375.264, Local Government Code, does not apply
to the district.
SECTION 27. ANNEXATION. The district may:
(1) annex territory as provided by Subchapter C,
Chapter 375, Local Government Code; and
(2) annex territory located inside the boundaries of a
reinvestment zone created by the City of Midland under Chapter 311,
Tax Code, if the governing body of the City of Midland consents to
the annexation.
SECTION 28. TAX AND ASSESSMENT ABATEMENTS. The district
may grant in the manner authorized by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
SECTION 29. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3),
501(c)(4), or 501(c)(6), Internal Revenue Code of 1986 (26 U.S.C.
Section 501), as amended; and
(2) performs services or provides activities
consistent with the furtherance of the purposes of the district.
SECTION 30. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created by the
municipality under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
municipality under Chapter 312, Tax Code; or
(3) an enterprise zone created by the municipality
under Chapter 2303, Government Code.
SECTION 31. ECONOMIC DEVELOPMENT PROGRAMS. (a) The
district may establish and provide for the administration of one or
more programs, including programs for making loans and grants of
public money and providing personnel and services of the district,
to promote state or local economic development and to stimulate
business and commercial activity in the district.
(b) For purposes of this section, the district has all of
the powers and authority of a municipality under Chapter 380, Local
Government Code.
SECTION 32. INITIAL DIRECTORS. (a) The initial board
consists of the following persons:
Pos. No. Name of Director
1 W. L. "Scooter" Brown
2 Wes Perry
3 Ted Jones
4 Jon Morgan
5 Gerald Borron
6 Dub House
7 Lois Trombley
8 Mike Black
9 Christi Newton
(b) Of the initial directors, the terms of directors
appointed for positions 1 through 5 expire June 1, 2007, and the
terms of directors appointed for positions 6 through 9 expire June
1, 2005.
(c) Section 10 of this Act does not apply to this section.
(d) This section expires September 1, 2007.
SECTION 33. LEGISLATIVE FINDINGS. The legislature finds
that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the Texas Commission on
Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 34. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.