BILL ANALYSIS
Senate Research Center C.S.S.B. 1800
79R13414 HLT-F By: Jackson, Mike
Committee Report (Substituted)
AUTHOR'S/SPONSOR'S STATEMENT OF INTENT
C.S.S.B. 1800 creates the Galveston County Municipal Utility District Number 60. Currently, the land located within the boundaries of the proposed District is undeveloped. The territory of the district will lie within the City of Texas City, or its extraterritorial jurisdiction, and Galveston County. The district will have all of the powers granted to municipal utility districts in Chapter 49 and 54, Water Code, navigation districts in Chapter 60 and 62, Water Code, and road utility districts in Chapter 441, Transportation Code, and will be eligible to be included in a tax increment reinvestment zone created pursuant to Chapter 311, Tax Code.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle F, Title 6, Special District Local Laws Code, by adding Chapter 8137, as follows:
CHAPTER 8137. GALVESTON COUNTY MUNICIPAL UTILITY DISTRICT
NO. 60
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8137.001. DEFINITIONS. Defines "board," "city," "director," and "district."
Sec. 8137.002. NATURE OF DISTRICT. Provides that the Galveston County Municipal Utility District No. 60 (district) is created as a municipal utility district created under and essential to accomplish the purposes of Section 52 (Counties, Cities, or Other Political Corporations or Subdivisions; Lending Credit; Grants; Bonds) and 52-a (Loan or Grant of Public Money for Economic Development), Article III, Section 1-g (Development or Redevelopment of Property; Ad Valorem Tax Relief and Issuance of Bonds and Notes), Article VIII, and Section 59 (Conservation and Redevelopment of Natural Resources and Parks and Recreational Facilities; Conservation and Reclamation Districts), Article XVI, Texas Constitution.
Sec. 8137.003. CONFIRMATION ELECTION REQUIRED. Requires the board of directors of the district (board) to hold a confirmation election to confirm the creation of the district as provided by Section 49.102 (Confirmation and Director Election), Water Code.
Sec. 8137.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) Provides that all land and other property included in the district will benefit from the improvements and services provided by the district under the powers conferred by Section 52 and 52-a, Article III, Section 1-g, Article VIII, and Section 59, Article XVI, Texas Constitution.
(b) Sets forth the purposes of the district.
Sec. 8137.005. INITIAL DISTRICT TERRITORY. (a) Provides that the district is initially composed of territory described by Section 2 of the Act creating this chapter.
(b) Provides that the boundaries and field notes of the district form a closure. Provides that a mistake in the field notes or in copying the field notes in the legislative process does not affect certain aspects of the district.
Sec. 8137.006. CONSTRUCTION OF ACT. (a) Requires this chapter to be liberally construed in conformity with the findings and purposes set forth in this chapter.
[Reserves Sections 8137.007-8137.050 for expansion.]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8137.051. DIRECTORS; TERMS. (a) Provides that the district is governed by a board of five directors.
(b) Provides that except as provided by Section 8137.053, directors serve staggered four-year terms.
Sec. 8137.052. ELECTION OF DIRECTORS. Requires the appropriate number of directors to be elected on the uniform election date in May of each even-numbered year.
Sec. Sec. 8137.053. INITIAL DIRECTORS. (a) Provides that the initial board consists of certain individuals.
(b) Provides that the terms of the first three directors named in Subsection (a) expire on the uniform election date in May 2006, and the terms of the last two directors named in Subsection (a) expire on the uniform election date in May 2008.
(c) Provides that this section expires September 1, 2009.
[Reserves Sections 8137.054-8137.100 for expansion.]
SUBCHAPTER C. GENERAL POWERS AND DUTIES
Sec. 8137.101. GENERAL POWERS AND DUTIES. Provides that the district has the powers and duties necessary to accomplish the purposes for which the district is created.
Sec. 8137.102. MUNICIPAL UTILITY DISTRICT POWERS AND DUTIES. Provides that the district has certain powers and duties applicable to municipal utility districts.
Sec. 8137.103. NAVIGATION POWERS. Authorizes the district to purchase, construct, acquire, own, operate, maintain, improve or extend inside and outside its boundaries certain navigation related projects and facilities.
Sec. 8137.104. TAX INCREMENT REINVESTMENT ZONE. Provides that all or any part of the area of the district is eligible to be included in a tax increment reinvestment zone created under Chapter 311 (Tax Increment Financing Act), Tax Code.
(b) Authorizes the district to enter into a contract with the board of directors of a reinvestment zone and the governing body of the City of Texas City (city) that provides for the district to manage or assist in managing the reinvestment zone or to implement or assist in implementing the reinvestment zone's project plan and reinvestment zone financing plan. Authorizes the contract to set certain requirements for the district.
Sec. 8137.105. EMINENT DOMAIN. Authorizes the district to exercise the power of eminent domain as provided by Section 49.222 (Eminent Domain), Water Code, except that the district is required to obtain the written consent of the city prior to exercising the power of eminent domain.
[Reserves Sections 8137.106-8137.150 for expansion.]
SUBCHAPTER D. ADDITIONAL ROAD POWERS
Sec. 8137.151. ROAD PROJECTS. (a) Authorizes the district to purchase, construct, acquire, improve, maintain, or operate inside and outside the district certain roads and road projects.
(b) Authorizes the roads and road facilities authorized by Subsection (a) to include drainage, landscaping and pedestrian improvements and lights, signs, or signals that are incidental to the roads and their construction, maintenance, or operation.
(c) Requires the roads and road facilities authorized by this section to meet all applicable construction standards, zoning and subdivision requirements, and regulatory ordinances of the (city).
(d) Authorizes the district, with consent of the city, to convey that road or road facility to the city, on completion of a road or road facility authorizes by this section. Provides that if the city becomes the owner of a road or road facility, the city is responsible for all future maintenance and upkeep, and the district has no further responsibility for the road or road facility or its maintenance or upkeep, unless otherwise agreed to by the district and the city.
Sec. 8137.152. JOINT ROAD PROJECTS. (a) Authorizes a district to contract with a state agency, political subdivision, or corporation created under Chapter 431 (Texas Transportation Corporation Act), Transportation Code, for a joint road or road facility.
(b) Sets forth certain authorizations for the contract.
(c) Authorizes a contract to be a contract under Section 49.108 (Contract Elections), Water Code.
Sec. 8137.153. REIMBURSEMENT FOR ROAD PROJECT. (a) Authorizes the district to agree to certain reimbursements or purchases.
(b) Sets forth certain guidelines for the amount paid for the reimbursement or purchase of a road or road facility.
(c) Authorizes the reimbursement or purchase of a road or road facility to be paid for with proceeds from the sale of the district's bonds or from any other money available to the district.
(d) Authorizes the district to enter into an agreement to use the proceeds of a subsequent bond sale to reimburse a private person under this section. Authorizes the agreement to provide the terms and conditions under which the road or road facility is to be dedicated or transferred for the benefit of the public.
SUBCHAPTER E. GENERAL FINANCING PROVISIONS
[Reserves Sections 8137.154-8137.200 for expansion.]
Sec. 8137.201. ELECTIONS REGARDING TAXES OR BONDS. (a) Authorizes the district to issue, without an election, bonds and other obligations secured by revenue or contract payments from any lawful source other than ad valorem taxation.
(b) Requires the district to hold an election in the manner provided by Chapters 49 and 54, Water Code, to obtain voter approval before the district may impose a maintenance tax or issue bonds payable from ad valorem taxes.
(c) Authorizes the board to include more than one purpose in a single proposition.
(d) Authorizes the district to issue bonds, notes, and other obligations to finance roads and road projects under Section 52(b)(3) (Loan of State's Credit or Grant of Public money for Toll Road Purposes ), Article III, Texas Constitution, secured wholly or partly by ad valorem taxation, impose ad valorem taxes to pay the principal of and interest on the obligations, and provide a sinking fund for the redemption of the obligations only if the issuance is approved by a two-thirds majority of the voters of the district voting at an election called and held for that purpose. Prohibits the total amount of bonds issued under this subsection from exceeding one-fourth of the assessed market value of real property of the district as determined by the chief appraiser of the appraisal district that appraises property for the district.
Sec. 8137.202. AD VALOREM TAX. (a) Authorizes the district, if authorized at an election held under Section 8137.201, to impose an annual ad valorem tax on taxable property in the district for the provision of services or for the maintenance and operation of the district, including the construction, acquisition, maintenance, and operation of improvements.
(b) Requires the board to determine the tax rate. Prohibits the rate from exceeding the rate approved at the election.
[Reserves sections 8137.203-8137.250 for expansion.]
SUBCHAPTER F. BONDS AND OTHER OBLIGATIONS
Sec. 8137.251. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) Authorizes the district to issue bonds or other obligations payable wholly or partly from certain district funds or any combination of those sources, to pay for any authorized district purpose.
(b) Authorizes the district, in exercising the district's borrowing power, to 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.
Sec. 8137.252. TAXES FOR BONDS AND OTHER OBLIGATIONS. Provides that at the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued the board is required to impose a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year that all or part of the bonds are outstanding and requires the district to annually impose an ad valorem tax on all taxable property in the district in an amount sufficient to pay certain expenses and create a certain sinking fund.
Sec. 8137.253. BONDS FOR CONTRACT COSTS. Authorizes the district, if the district enters into a contract under Section 8137.152, to issue bonds to make any payments required under the contract.
Sec. 8137.254. BONDS PAYABLE FROM REVENUE FROM CERTAIN CONTRACTS. Authorizes the district to issue bonds payable wholly or partly from the revenue of a contract authorized by Section 8137.104(b) to pay for the implementation of the reinvestment zone's project plan or reinvestment zone financing plan.
Sec. 8137.255. AUTHORITY OF TEXAS COMMISSION ON ENVIRONMENTAL QUALITY OVER ISSUANCE OF DISTRICT BONDS. (a) Provides that Sections 49.181 and 49.182, Water Code, apply to all water, wastewater, drainage and recreational facility projects of the district and bonds issued for the purposes.
(b) Provides that Section 49.181, Water Code, applies to all road and road facility projects and navigation projects and bonds issued for those purposes, but the review of the Texas Commission on Environmental Quality (commission) of the projects is limited to the financial feasibility of the projects and bonds, and does not include the review or approval of the design and construction of the projects or the engineering feasibility of the projects. Requires the commission to adjust the requirements of written applications for investigation of feasibility in accordance with this subsection.
(c) Provides that Section 49.182, Water Code, does not apply to any road and road facility projects, and navigation projects, or bonds issued for those purposes.
(d) Provides that to the extent that the district issues bonds secured solely by revenues provided under a contract described in Section 8137.104(b), Sections 49.181 (Authority of Commission Over Issuance of District Bonds), 49.182 (Commission Supervision of Projects and Improvements), and 49.4645 (District in Certain Counties: Bonds for Recreational Facilities), Water Code, do not apply to the issuance of the bonds and do not restrict the types of facilities or improvements that may be financed with the bonds
(e) Provides that projects and bonds of the district are not subject to the review and approval of the Texas Transportation Commission or the rules promulgated by the Texas Transportation Commission.
Sec. 8137.256. APPLICABILITY OF OTHER BOND LAW. Provides that Chapter 1471 (Bonds for County Roads), Government Code, does not apply to the district.
SECTION 2. Sets forth the territory initially contained in the district.
SECTION 3. Provides that 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 are fulfilled and accomplished.
SECTION 4. Effective date: upon passage or September 1, 2005.