80(R) SB 1969 - House Committee Report version

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	By: Hegar	S.B. No. 1969

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Las Damas Management District;

providing authority to levy an assessment, impose a tax, and issue

bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. LAS DAMAS MANAGEMENT DISTRICT. Subtitle C,

Title 4, Special District Local Laws Code, is amended by adding

Chapter 3836 to read as follows:

CHAPTER 3836. LAS DAMAS MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3836.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "District" means the Las Damas Management

District.

Sec. 3836.002. LAS DAMAS MANAGEMENT DISTRICT. The Las

Damas Management District is a special district created under

Section 59, Article XVI, Texas Constitution.

Sec. 3836.003. 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

chapter. By creating the district and in authorizing Austin 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,

agriculture, viniculture, irrigation, transportation, housing,

tourism, recreation, the arts, entertainment, economic

development, safety, and the public welfare in the district.

interpreted to relieve Austin County 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 any city services

provided in the area in the district.

Sec. 3836.004. 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.

and is essential to:

(1) further the public purposes of developing and

diversifying the economy of the state;

(2) eliminate unemployment and underemployment;

(3) develop or expand transportation and commerce;

(4) develop and promote agriculture, irrigation, and

viniculture; and

(5) develop and promote tourism.

(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 residential community and business,

agricultural, and tourism center;

(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;

(4) promote, market, and advertise the district as a

tourist and visitor destination; and

(5) promote public awareness of the district's

agricultural resources and products, including the growing and

harvesting of grapes and the production and bottling of wine.

(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. 3836.005. 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; or

(2) 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 bond for a purpose for

which the district is created or to pay the principal of and

interest on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

Sec. 3836.006. 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 under

Chapter 311, Tax Code;

(2) a tax abatement reinvestment zone created under

Chapter 312, Tax Code; or

(3) an enterprise zone created under Chapter 2303,

Government Code.

Sec. 3836.007. APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

Chapter 375, Local Government Code, applies to the district.

Sec. 3836.008. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed in conformity with the

findings and purposes stated in this chapter.

[Sections 3836.009-3836.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3836.051. GOVERNING BODY; 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 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 voting directors.

not apply to the district.

Sec. 3836.052. APPOINTMENT OF DIRECTORS. The Texas

Commission on Environmental Quality shall appoint voting directors

from persons recommended by the board.

Sec. 3836.053. NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve at the pleasure of the voting

directors.

Sec. 3836.054. QUORUM. For purposes of determining the

requirements for a quorum, 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. 3836.055. INITIAL VOTING DIRECTORS. (a) The initial

board consists of the following voting directors:

Pos. No.

Name of Director

Scott E. Greene

Martin H. Miles

Robert Kelly

Patrick Magill

Stephen Laney

(b) Of the initial voting directors, the terms of directors

appointed for positions 1 through 3 expire June 1, 2009, and the

terms of directors appointed for positions 4 and 5 expire June 1,

2011.

(d) This section expires September 1, 2012.

[Sections 3836.056-3836.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3836.101. AGRICULTURAL DEVELOPMENT DISTRICT POWERS.

The district may exercise the powers given to an agricultural

development district created under Chapter 60, Agriculture Code.

Sec. 3836.102. 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. 3836.103. AUTHORITY TO CONTRACT FOR PUBLIC SAFETY

SERVICES. To protect the public interest, the district may

contract with a qualified party, including Austin County or any

municipality, to provide law enforcement, public safety, fire, or

emergency medical services in the district for a fee.

Sec. 3836.104. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a nonprofit or charitable

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Sec. 3836.105. ECONOMIC DEVELOPMENT PROGRAMS. (a) 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) For purposes of this section, the district has all of

the powers of a municipality under Chapter 380, Local Government

Code.

Sec. 3836.106. NO EMINENT DOMAIN. The district may not

exercise the power of eminent domain.

[Sections 3836.107-3836.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3836.151. 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. 3836.152. 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. 3836.153. 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 according to

the most recent certified tax appraisal roll for Austin 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

according to the most recent certified tax appraisal roll for

Austin County.

Sec. 3836.154. METHOD OF NOTICE FOR HEARING. The district

may mail the notice required by Section 375.115(c), Local

Government Code, by certified or first-class United States mail.

The board shall determine the method of notice.

Sec. 3836.155. ASSESSMENTS; LIENS FOR ASSESSMENTS.

(a) The board by resolution may impose and collect an assessment

for any purpose authorized by this chapter in all or any part of the

district.

(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.

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. 3836.156. AD VALOREM TAX. (a) If authorized at an

election held in accordance with Section 3836.160, the district may

impose an annual ad valorem tax on taxable property in the district

for any district purpose, including to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate.

Sec. 3836.157. UTILITY PROPERTY EXEMPT FROM IMPACT FEES OR

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. 3836.158. BONDS AND OTHER OBLIGATIONS. (a) The

district may issue by competitive bid or negotiated sale 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) In addition to any other terms authorized by the board

by bond order or resolution, the proceeds of the district's bonds

may be used for a reserve fund, credit enhancement, or capitalized

interest for the bonds.

Sec. 3836.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. At

the time bonds or other obligations payable wholly or partly from ad

valorem taxes are issued:

(1) the board shall 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

(2) the district annually shall impose an ad valorem

tax on all taxable property in the district in an amount sufficient

to:

(A) pay the interest on the bonds or other

obligations as the interest becomes due;

(B) create a sinking fund for the payment of the

principal of the bonds or other obligations when due or the

redemption price at any earlier required redemption date; and

Sec. 3836.160. 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 an ad valorem tax or issues bonds payable from

ad valorem taxes.

(b) Section 375.243, Local Government Code, does not apply

to the district.

Sec. 3836.161. BIDDING REQUIREMENTS. Section 375.221,

Local Government Code, and Sections 49.273(d), (e), (f), and (g),

Water Code, do not apply to the district.

Sec. 3836.162. 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 3836.163-3836.200 reserved for expansion]

SUBCHAPTER E. SALES AND USE TAX

Sec. 3836.201. MEANINGS OF WORDS AND PHRASES. Words and

phrases used in this subchapter that are defined by Chapters 151 and

321, Tax Code, have the meanings assigned by Chapters 151 and 321,

Tax Code.

Sec. 3836.202. 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) Chapter 321, Tax Code, relating to municipal sales and

use taxes applies 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.

321.406, 321.409, 321.506, 321.507, and 321.508, Tax Code, do not

apply to a tax imposed under this subchapter.

Sec. 3836.203. AUTHORIZATION; ELECTION. (a) The district

may adopt a sales and use tax to serve the purposes of the district

after an election in which a majority of the district voters voting

in the election authorize the adoption of the tax.

(b) The board by order may call an election to authorize a

sales and use tax. The election may be held with any other district

election.

shall hold the election in the manner prescribed by Section

3836.160.

(d) The ballots shall be printed to provide for voting for

or against the proposition: "Authorization of a sales and use tax

in the Las Damas Management District at a rate not to exceed ______

percent."

Sec. 3836.204. ABOLISHING SALES AND USE TAX. (a) Except

as provided in Subsection (b), the board 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 or other obligations secured by the

tax.

Sec. 3836.205. SALES AND USE TAX RATE. (a) On adoption of

the tax authorized by this subchapter, there is imposed a tax 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 board shall determine the rate of the tax, which may

be in increments of one-eighth of one percent and may not exceed the

maximum rate authorized by the voters.

sales tax portion of the tax and is applied to the sales price of the

taxable item.

[Sections 3836.206-3836.250 reserved for expansion]

SUBCHAPTER F. HOTEL OCCUPANCY TAXES

Sec. 3836.251. HOTEL OCCUPANCY TAX. (a) In this section,

"hotel" has the meaning assigned by Section 156.001, Tax Code.

(b) For purposes of this section, a reference in Subchapter

A, Chapter 352, Tax Code, to a county is a reference to the district

and a reference in Subchapter A, Chapter 352, Tax Code, to the

county's officers or governing body is a reference to the board.

Chapter 352, Tax Code, governs a hotel occupancy tax authorized by

this section, including the collection of the tax, subject to the

limitations prescribed by Sections 352.002(b) and (c), Tax Code.

(d) The district may impose a hotel occupancy tax for any

district purpose, including to:

(1) maintain and operate the district;

(2) construct or acquire improvements; and

(3) provide a service.

(e) The board by order may impose, repeal, increase, or

decrease the rate of a tax on a person who, under a lease,

concession, permit, right of access, license, contract, or

agreement, pays for the use or possession or for the right to the

use or possession of a room that:

(1) is in a hotel located in the district's boundaries;

(2) costs $2 or more each day; and

(3) is ordinarily used for sleeping.

(f) The amount of the tax may not exceed seven percent of the

price paid for a room in a hotel.

(g) The district may examine and receive information

related to the imposition of hotel occupancy taxes to the same

extent as if the district were a county.

[Sections 3836.252-3836.300 reserved for expansion]

SUBCHAPTER G. DISSOLUTION

Sec. 3836.301. 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, the Las Damas Management District includes all territory

located in Austin County that is contained in the following

described area:

All that certain tract or parcel of land, lying and being

situated in Austin County, Texas, and partly in Washington County,

Texas, being part of the Geo. Gaskins Survey, A-176 (Austin County)

and A-137 (Washington County) and part of the C. R. Perry Survey,

A-275 (Austin County) and A-174 (Washington County), being all of

the same land described as 316.670 acres in the deed from Estelle

Garrow Perlitz to Elsa Perlitz Hudson, et al, dated May 7, 1992, as

recorded in Volume 661, Page 351, in the Official Records of Austin

County, Texas; being all of the same land described as 88.840 acres

in the deed from Estelle Garrow Perlitz to Charles A. Perlitz, III,

et al, dated October 21, 1991, as recorded in Volume 650, Page 120,

in the Official Records of Austin County, Texas, and being a portion

of the same land described as 172.320 acres in the deed from Estelle

Garrow Perlitz to Charles A. Perlitz, III, et al, dated May 14,

1990, as recorded in Volume 626, Page 382, in the Official Records

of Washington County, Texas, and being more fully described by

metes and bounds as follows, To-Wit:

BEGINNING at a 1/2 inch iron rod found at the base of a 6 inch

Cedar fence corner post on the North margin of Sempronius Road for

the Southeast corner of said original 316.670 acres tract, Volume

661, Page 351, being on the division line of said Gaskins Survey and

the F. Grimes Survey, A-43 (Austin County), A-51 (Washington

County), also being on the occupied West line of the Arista Felker

Walters (Harry Dodd) tract called 152 1/2 acres as described in

Volume 60, Page 534, in the Deed Records of Austin County, Texas;

THENCE along a portion of the North margin of said Sempronius

Road for the South lines hereof, being along the South lines of said

original 316.670 acres and said original 88.840 acres tract, Volume

650, Page 120, being along or near an existing fence, as follows: S

79°36'24" W 1721.91 feet to a 1/2 inch iron rod set at the base of a 8

inch treated fence corner post on said road margin, S 79°04'19" W

1976.74 feet to a 1/2 inch iron rod found at the base of a railroad

tie fence corner post on said road margin on the division line of

said Gaskins Survey and said Perry Survey for the division corner of

said original 316.670 acres and said original 88.840 acres tract,

and S 79°12'28" W 1056.23 feet to a 1/2 inch iron rod set at the base

of a 12 inch treated fence corner post on said road margin for the

Southwest corner hereof and of said original 88.840 acres tract,

being the occupied Southeast corner of the George William Wehrung,

III, et ux, tract called 90.25 acres (Tract 3) as described in

Volume 160, Page 331, in said Austin County Deed Records;

THENCE along the East line of said Wehrung tract called 90.25

acres, and along the East line of the George William Wehrung, III,

et ux, tract called 90 1/4 acres (Tract 2) as described in Volume

160, Page 331, in said Austin County Deed Records, being along or

near an existing fence, N 10°46'35" W 3671.32 feet to a 1/2 inch iron

rod found at the base of a 6 inch treated fence corner post for the

Northwest corner hereof and of said original 88.840 acres tract,

Volume 650, Page 120, being the occupied Northeast corner of said

Wehrung, III, et ux tract called 90 1/4 acres and described as Tract

2, also being on the South line of the Charles A. Perlitz, III, et al

original 172.320 acres tract as described in Vol. 626, Page 382, in

said Official Records of Washington County, Texas;

THENCE along a North line hereof, N 76°32'58" E 1053.25 feet

to a 1/2 inch iron rod found for the Northwest corner of said

original 316.670 acres tract and being an interior ell corner of

said Perlitz original 172.320 acres tract, being on the South line

of the S. Woodward Survey, A-112 and being a division corner of said

Gaskins and Perry Surveys;

THENCE along a portion of the South line of said Perlitz

172.320 acres tract, along the South line of the Charles A. Perlitz,

III, et al, 23.856 acres (Tract One) in the deed recorded in Vol.

658, Page 19 in said Washington County Official Records, and along

the South line of the Mary Louise Schawe tract called 55.552 acres

as described in Vol. 349, Page 300, in said Washington County Deed

Records for North lines hereof, being along or near an existing

fence, as follows: N 79°02'51" E 1859.30 feet to a 1/2 inch iron rod

found in fence line for the Southeast corner of said Perlitz 172.320

acres tract and the Southwest corner of said Perlitz 23.856 acres

tract, N 79°01'06" E 523.08 feet to a 1/2 inch iron rod found near

the base of 6 inch treated fence corner post for the Southeast

corner of said Perlitz 23.856 acre tract and said Schawe 55.552

acres tract, and N 78°56'55" E 1312.86 feet to a 3/8 inch iron rod

found at the base of a 6 inch Cedar fence corner post in concrete for

the Northeast corner of said original 316.670 acres tract, being

the Southeast corner of said Schawe 55.552 acres tract, being the

Northeast corner of said Gaskins Survey common with the Southeast

corner of said Woodward Survey, being on the West line of said

Grimes Survey, also being on the West line of the William H. Schawe

tract called 57.431 acres as described in Vol. 349, Page 297, in

said Washington County Deed Records;

THENCE along the division line of said Gaskins Survey and

Grimes Survey for the East line hereof, being along the East line of

said original 316.670 acres tract, being along a portion of the

apparent West line of said Walters tract called 152 1/2 acres, being

partly along or near an existing fence, S 10°53'29" E at 824.0 feet

pass a 3/8 inch iron rod found at the base of a 6 inch treated fence

corner post 3.55 feet East of the East line of this tract for the

Southwest corner of said William H. Schawe tract called 57.431

acres, and at a total distance of 3740.34 feet to the place of

beginning and containing 405.595 acres of land.

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, 2007.