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.