By: Jackson S.B. No. 1866
A BILL TO BE ENTITLED
AN ACT
relating to the creation of Dickinson Management District No. 1;
providing authority to levy assessments, impose taxes and issue
bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DICKINSON MANAGEMENT DISTRICT NO. 1. Subtitle
C, Title 4, Special District Local Laws Code, is amended by adding
Chapter ____ to read as follows:
CHAPTER _____. DICKINSON MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. ____.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means Dickinson Management District
No. 1.
Sec. ____.002. DICKINSON MANAGEMENT DISTRICT NO. 1.
(a) Dickinson Management District No. 1 is a special district
created under Section 59, Article XVI, Texas Constitution.
Sec. ____.003. PURPOSE; 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.
By creating the district and in authorizing the City of Dickinson,
Galveston 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.
(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) This chapter and the creation of the district may not be
interpreted to relieve Galveston County or the City of Dickinson
from providing the level of services provided as of the effective
date of the Act enacting this chapter 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.
Sec. ____.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) The district is created to serve a public use and benefit.
(b) All 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.
(c) 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
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(3) 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.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(f) 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.
Sec. ____.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act enacting
this chapter, as that territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code;
(2) Section _____.108; or
(3) other law.
(b) The boundaries and field notes of the district contained
in Section 2 of the Act enacting this chapter form a closure. A
mistake in the field notes or in copying the field notes in the
legislative process, does not in any way affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bonds for a purpose for
which the district is created or to pay the principal of and
interest on the bonds;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. ____.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible,
notwithstanding other statutory criteria, to be included in:
(1) a tax increment reinvestment zone created by a
municipality under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by a
municipality under Chapter 312, Tax Code; or
(3) an enterprise zone created by a municipality under
Chapter 2303, Government Code.
Sec. ____.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. ____.008. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections ____.009-____.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. ____.051. BOARD OF DIRECTORS; TERMS. (a) The
district is governed by a board of five voting directors who serve
staggered terms of four years, with two or three directors' terms
expiring June 1 of each odd-numbered year.
(b) The governing body of the City of Dickinson may change
the number of voting directors on the board. The board may not
consist of fewer than five or more than 15 voting directors.
Sec. ____.052. APPOINTMENT OF DIRECTORS. (a) The mayor
and members of the governing body of the City of Dickinson shall
appoint voting directors. A person is appointed if a majority of
the council and the mayor vote to appoint that person.
(b) Section 375.063, Local Government Code, does not apply
to the district.
Sec. ____.053. NONVOTING DIRECTORS. The board may appoint
non-voting directors.
Sec. ____.054. QUORUM. For the purposes of determining the
requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including
death, resignation, or disqualification;
(2) a director who is abstaining from participation in
a vote because of a conflict of interest; or
(3) a nonvoting director.
Sec. ____.055. INITIAL VOTING DIRECTORS. (a) The mayor
and members of the governing body of the City of Dickinson shall
appoint the five initial directors by position.
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 3 expire June 1, 2007, and the
terms of directors appointed for positions 4 and 5 expire June 1,
2009.
(c) This section expires September 1, 2010.
[Sections ____.056-____.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. ____.101. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to:
(1) a corporation 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, or maintain projects described by that section; and
(2) a housing finance corporation under Chapter 394,
Local Government Code, to provide housing or residential
development projects in the district.
Sec. ____.102. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of
this chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. A director of the corporation is not
required to reside in the district.
(d) 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.
Sec. ____.103. 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.
Sec. ____.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.
To protect the public interest, the district may contract with a
qualified party, including Galveston County or the City of
Dickinson to provide law enforcement services in the district for a
fee.
Sec. ____.105. APPROVAL BY CITY OF DICKINSON. (a) Except
as provided by Subsection (b), the district must obtain the
approval of the City of Dickinson's governing body for:
(1) the issuance of bonds for each improvement
project;
(2) the imposition of a sales and use tax;
(3) the plans and specifications of the improvement
project financed by bonds; and
(4) the plans and specifications of any district
improvement project related to the use of land owned by the City of
Dickinson, an easement granted by the City of Dickinson, or a
right-of-way of a street, road, or highway.
(b) The approval obtained for the issuance of bonds and the
imposition of a sales and use tax must be a resolution by the City of
Dickinson. The approval obtained for plans and specifications must
be a permit issued by the City of Dickinson.
(c) If the district obtains approval from the governing body
of the City of Dickinson for a capital improvements budget for a
period not to exceed five years, the district may finance the
capital improvements and issue bonds specified in the budget
without further approval from the City of Dickinson.
(d) The City of Dickinson and the district may agree on
conditions for obtaining the approval of the city under this
section, including an agreement for the approval of a sales and use
tax that requires the district to abolish or decrease the rate of
the tax if the rate, when combined with other local sales and use
taxes, results in a combined tax rate of more than two percent in
any location in the district.
Sec. ____.106. 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),
(4), or (6), Internal Revenue Code of 1986; and
(2) performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. ____.107. ECONOMIC DEVELOPMENT PROGRAMS AND OTHER
POWERS RELATED TO PLANNING AND DEVELOPMENT. The district may
establish and provide for the administration of one or more
programs to promote state or local economic development and to
stimulate business and commercial activity in the district,
including programs to:
(1) make loans and grants of public money; and
(2) provide district personnel and services.
(b) The district has all of the powers and authority of a
municipality under Chapter 380, Local Government Code.
Sec. ____.007. ANNEXATION. In addition to the authority to
annex territory under Subchapter C, Chapter 375, Local Government
Code, the district has the authority to annex territory if the
governing body of the City of Dickinson consents by resolution or
ordinance to the annexation.
Sec. ____.109. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
[Sections ____.110-____.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. ____.151. DISBURSEMENTS AND 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.
Sec. ____.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or Chapter
375, Local Government Code, using any money available to the
district.
Sec. _____.153. PETITION REQUIRED FOR FINANCING SERVICES
AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance
a service or improvement project with assessments under this
chapter unless a written petition requesting that service or
improvement has been filed with the board.
(b) A petition filed under Subsection (a) 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 Galveston
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
Galveston County.
Sec. ____.154. METHOD OF NOTICE FOR HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified United States mail or an equivalent
service that can provide a record of mailing or other delivery.
Sec. ____.155. ASSESSMENTS; LIENS FOR ASSESSMENTS.
(a) The board by resolution may impose and collect an assessment
in all or part of the district for any purpose authorized by this
chapter.
(b) An assessment, reassessment, or an assessment resulting
from an addition to or correction of the assessment roll by the
district, penalties and interest on an assessment or reassessment,
an 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.
(c) The lien is effective from the date of the board's
resolution 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.
(d) The board may make a correction to or a deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
Sec. ____.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. (a) The district may not impose an impact fee or
assessment on the property, including the equipment, rights of way,
facilities, or improvements of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or
121.001, Utilities Code;
(3) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(4) a person who provides to the public cable
television or advanced telecommunications services.
Sec. ____.157. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations, by competitive bid
or negotiated sale, payable wholly or partly from sales and use
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 power to borrow, 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.
(c) Section 375.243, Local Government Code, does not apply
to the district.
Sec. ____.158. CITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the City of Dickinson is not required to pay a
bond, note, or other obligation of the district.
Sec. ____.159. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $25,000.
Sec. ____.160. 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.
[Sections ____.161-____.200 reserved for expansion]
SUBCHAPTER E. SALES AND USE TAX
Sec. ____.201. MEANINGS OF WORDS AND PHRASES. Words and
phrases used in this subchapter that are defined by Chapters 151 an
321, Tax Code, have the meanings assigned by Chapters 151 and 321,
Tax Code.
Sec. ____.202. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Except as otherwise provided by this subchapter,
Subtitles A and B, Title 2, Tax Code, and Chapter 151, Tax Code,
apply to taxes imposed under this subchapter and to the
administration and enforcement of those taxes in the same manner
that those laws apply to state taxes.
(b) The provisions of Subchapters B, C, and D, Chapter 321,
Tax Code, relating to municipal sales and use taxes apply to the
application, collection, change, and administration of a sales and
use tax imposed under this subchapter to the extent consistent with
this chapter, as if references in Chapter 321, Tax Code, to a
municipality referred to the district and references to a governing
body referred to the board.
(c) Sections 321.401-321.406 and Subchapter F, Chapter 321,
Tax Code, do not apply to a tax imposed under this subchapter.
(d) Section 321.203(l), Tax Code, added by Acts 2003,
Chapter 1152, Section 2, does not apply to any sales and use tax or
excise tax imposed within the boundaries of the district.
Sec. ____.203. AUTHORIZATION. The district may adopt a
sales and use tax for the benefit of the district. The board is not
required to call an election to adopt the tax.
Sec. ____.204. ABOLISHING SALES AND USE TAX. (a) Except
as provided in subsection (b), the board, with the consent of the
governing body of the City of Dickinson, may abolish the sales and
use tax without an election.
(b) The board may not abolish the sales and use tax if the
district has outstanding debt secured by the tax.
Sec. ____.205. SALES AND USE TAX RATE. (a) On adoption of
the tax authorized by this subchapter, there is imposed a tax at the
rate authorized by the district on the receipts from the sale at
retail of taxable items within the district, and an excise tax on
the use, storage, or other consumption within the district of
taxable items purchased, leased, or rented from a retailer within
the district during the period that the tax is in effect.
(b) The rate of the excise tax is the same as the rate of the
sales tax portion of the tax and is applied to the sales price of the
taxable item.
[Sections ____.206-____.050 reserved for expansion]
SUBCHAPTER F. DISSOLUTION
Sec. ____.251. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The board may dissolve the district regardless of
whether the district has debt. Section 375.264, Local Government
Code, does not apply to the district.
(b) If the district has debt when it is dissolved, the
district shall remain in existence solely for the purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
SECTION 2. BOUNDARIES. As of the effective date of this
Act, Dickinson Management District No. 1 includes all territory
contained in the corporate limits of the City of Dickinson.
SECTION 3. 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 4. 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, 2005.