79R13421 MXM-F
By: Jackson, Mike S.B. No. 1885
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Galveston Economic Development
District; providing authority to impose a tax and issue a bond or
similar obligation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3851 to read as follows:
CHAPTER 3851. GALVESTON ECONOMIC DEVELOPMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3851.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Galveston Economic
Development District.
Sec. 3851.002. GALVESTON ECONOMIC DEVELOPMENT
DISTRICT. The Galveston Economic Development District is a
special district created under Section 59, Article XVI, Texas
Constitution.
Sec. 3851.003. PETITION AND RESOLUTION REQUIRED. If the
City of Galveston does not adopt a resolution approving the
petition requesting the creation of the district under Section
3851.021 on or after the effective date of the Act creating this
chapter and before September 1, 2007, the district is dissolved and
this chapter expires September 1, 2007.
Sec. 3851.004. 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
chapter. By creating the district and in authorizing the City of
Galveston, 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 transportation, housing,
recreation, the arts, safety, scenic beauty, and the public welfare
in the district and adjacent areas.
(c) This chapter and the creation of the district may not be
interpreted to relieve Galveston County or the City of Galveston
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 city or county
services provided in the area in the district.
Sec. 3851.005. 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 district will:
(1) promote the health, safety, and general welfare of
residents 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 residential neighborhood and a
commercially viable area; 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.
(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.
Sec. 3851.006. DISTRICT TERRITORY. 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; or
(2) other law.
Sec. 3851.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3851.008. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections 3851.009-3851.020 reserved for expansion]
SUBCHAPTER A1. TEMPORARY PROVISIONS
Sec. 3851.021. PETITION TO CREATE DISTRICT; RESOLUTION.
(a) On or after the effective date of the Act creating this
chapter, the owners of a majority of the assessed value of real
property in the district, according to the most recent certified
tax appraisal roll for Galveston County, may petition the governing
body of the City of Galveston to create the district.
(b) If the governing body of the City of Galveston
determines that the petition meets the requirements of Subsection
(a), the governing body shall adopt a resolution approving the
petition and creating the district.
Sec. 3851.022. INITIAL DIRECTORS. After adopting a
resolution under this subchapter, the mayor and members of the
governing body of the City of Galveston shall appoint 11 initial
directors as provided by Section 3851.053. The mayor and members of
the governing body shall stagger the appointments so that five
directors' terms expire June 1, 2007, and six directors' terms
expire June 1, 2009.
Sec. 3851.023. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2009.
[Sections 3851.024-3851.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3851.051. BOARD OF DIRECTORS; TERMS. (a) The
district is governed by a board of 11 voting directors who serve
staggered terms of four years, with five or six directors' terms
expiring June 1 of each odd-numbered year.
(b) The board by resolution may change the number of voting
directors on the board, but only if the board determines that the
change is in the best interest of the district. The board may not
consist of fewer than five or more than 15 directors.
Sec. 3851.052. QUALIFICATIONS. Voting directors on the
board must:
(1) reside in the district;
(2) own property in the district; or
(3) be an officer, employee, or agent of a person who
owns property in the district.
Sec. 3851.053. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the City of Galveston shall appoint
directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
Sec. 3851.054. NONVOTING DIRECTORS. (a) The following
persons serve as nonvoting directors:
(1) the directors of the following departments of the
City of Galveston or a person designated by that director:
(A) parks and recreation;
(B) planning and development; and
(C) public works; and
(2) the City of Galveston's chief of police.
(b) If a department described by Subsection (a) is
consolidated, renamed, or changed, the board may appoint a director
of the consolidated, renamed, or changed department as a nonvoting
director. If a department described by Subsection (a) is
abolished, the board may appoint a representative of another
department that performs duties comparable to those performed by
the abolished department.
Sec. 3851.055. QUORUM. (a) Section 375.071, Local
Government Code, does not apply to the district.
(b) A majority of the board is a quorum.
(c) Nonvoting directors and vacant director positions are
not counted for the purposes of establishing a board quorum.
Sec. 3851.056. 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 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.
[Sections 3851.057-3851.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3851.101. 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, and 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. 3851.102. 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. The board of directors of the nonprofit
corporation shall serve in the same manner as, for the same term as,
and on the same conditions as the board of directors of a local
government corporation created under Chapter 431, Transportation
Code.
Sec. 3851.103. 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. 3851.104. AUTHORITY TO CONTRACT FOR LAW
ENFORCEMENT. To protect the public interest, the district may
contract with Galveston County or the City of Galveston for the
county or the city to provide law enforcement services in the
district for a fee.
Sec. 3851.105. APPROVAL BY CITY OF GALVESTON. (a) Except
as provided by Subsection (b), the district must obtain the
approval of the governing body of the City of Galveston for:
(1) the issuance of a bond for each improvement
project;
(2) the plans and specifications of the improvement
project financed by the bond; and
(3) the plans and specifications of any district
improvement project related to:
(A) the use of land owned by the City of
Galveston;
(B) an easement granted by the City of Galveston;
or
(C) a right-of-way of a street, road, or highway.
(b) If the district obtains the approval of the governing
body of the City of Galveston of 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 Galveston.
Sec. 3851.106. 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. 3851.107. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
[Sections 3851.108–3851.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3851.151. 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. 3851.152. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (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 requesting a project financed by assessment
must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district subject to assessment according to
the most recent certified tax appraisal roll for Galveston County;
or
(2) at least 50 owners of real property in the district
that will be subject to the assessment, if more than 50 persons own
real property subject to the assessment in the district according
to the most recent certified tax appraisal roll for Galveston
County.
Sec. 3851.153. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3851.157, the district may
impose an annual ad valorem tax on taxable property in the district
to:
(1) administer the district;
(2) maintain and operate the district;
(3) construct or acquire improvements; or
(4) provide a service.
(b) The board shall determine the tax rate.
Sec. 3851.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter.
(b) An assessment, a 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 a 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 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. 3851.155. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. 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. 3851.156. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations payable wholly or
partly from 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) 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.
Sec. 3851.157. TAX AND BOND 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 bonds payable from
ad valorem taxes.
(b) The board may not 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.
Sec. 3851.158. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, a municipality is not required to pay a bond, note,
or other obligation of the district.
Sec. 3851.159. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $25,000.
[Sections 3851.160-3851.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3851.201. 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. As of the effective date of this Act, the
Galveston Economic Development District includes all territory
contained in the following described area:
Beginning at a point, said point being the intersection of the south
right of way of Broadway and the west right of way line of 30th
Street; thence north along the west right of way line of 30th Street
to its intersection with the extension of the north right of way
line of Harborside Drive; thence east along the north right of way
line of Harborside Drive to its intersection with the extension of
the east right of way line of 4th Street (Holiday Drive); thence
south along the east right of way line of 4th Street (Holiday Drive)
to its intersection with the south right of way line of Seawall
Boulevard; thence westward along the south right of way of Seawall
Boulevard to its intersection with the extension of the south right
of way of Broadway; thence westerly along the south right of way of
Broadway to its intersection with the west right of way line of 30th
Street; said intersection point being the place of beginning of
this district.
SECTION 3. The Galveston Economic Development District may
reimburse the cost of creating the district from assessments or
other revenues collected by the district.
SECTION 4. 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 5. 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.