85(R) HB 4297 - Introduced version

	85R15279 JXC-F

	By: Miller	H.B. No. 4297

A BILL TO BE ENTITLED

AN ACT

relating to the creation of Telfair Tract 5 Commercial Management

District; providing authority to issue bonds; providing authority

to impose assessments, fees, or taxes.

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 3953 to read as follows:

CHAPTER 3953. TELFAIR TRACT 5 COMMERCIAL MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3953.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "City" means the City of Sugar Land.

(3) "Director" means a board member.

(4) "District" means the Telfair Tract 5 Commercial

Management District.

Sec. 3953.002. NATURE OF DISTRICT. The district is a

special district created under Section 59, Article XVI, Texas

Constitution.

Sec. 3953.003. PURPOSE; LEGISLATIVE FINDINGS. (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 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 district.

interpreted to relieve the city from providing the level of

services provided as of the effective date of the Act enacting this

chapter. The district is created to supplement and not to supplant

city services provided in the district.

Sec. 3953.004. 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 further the public purposes of:

(1) developing and diversifying the economy of the

state;

(2) eliminating unemployment and underemployment; and

(3) developing or expanding 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. 3953.005. INITIAL DISTRICT TERRITORY. (a) The

district is initially composed of the territory described by

Section 2 of the Act enacting this chapter.

(b) The boundaries and field notes 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 affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bonds for the purposes

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. 3953.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.

(a) 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;

(3) an enterprise zone created under Chapter 2303,

Government Code; or

(4) an industrial district created under Chapter 42,

Local Government Code.

(b) If the city creates a tax increment reinvestment zone

described by Subsection (a), the city and the board of directors of

the zone, by contract with the district, may grant money deposited

in the tax increment fund to the district to be used by the district

for the purposes permitted for money granted to a corporation under

Section 380.002(b), Local Government Code, including the right to

pledge the money as security for any bonds issued by the district

for an improvement project. A project may not receive public funds

under Section 380.002(b), Local Government Code, unless the project

has been approved by the governing body of the city.

Sec. 3953.007. APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

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

Sec. 3953.008. CONSTRUCTION OF CHAPTER. This chapter shall

be liberally construed in conformity with the findings and purposes

stated in this chapter.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3953.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of nine voting directors appointed by the

governing body of the city under Section 3953.052 who serve

staggered terms of four years with four or five directors' terms

expiring June 1 of each odd-numbered year.

(b) The board by resolution may increase or decrease the

number of voting directors on the board if the board determines the

change is in the best interest of the district. The board may not:

(1) increase the number of voting directors to more

than 20; or

(2) decrease the number of voting directors to fewer

than nine.

Sec. 3953.052. APPOINTMENT OF VOTING DIRECTORS;

QUALIFICATIONS. (a) In this section, "city stakeholder" means:

(1) a person who owns property in the city;

(2) an owner of stock or of a partnership interest or

membership interest, whether beneficial or otherwise, of a

corporation, corporate partnership, limited liability company, or

other entity that owns a direct or indirect interest in property in

the city;

(3) an owner of a beneficial interest in a trust that

owns a direct or indirect interest in property in the city; or

(4) an agent, employee, or tenant of a person

described by Subdivision (1), (2), or (3).

(b) The governing body of the city shall appoint to serve as

voting directors the appropriate number of qualified persons. In

appointing voting directors, the governing body shall ensure that

the resulting board has city stakeholders serving in at least

two-thirds of the voting director positions.

governing body shall consider for appointment:

(1) persons recommended by the board; and

(2) a number of persons recommended by any city

stakeholder who makes a recommendation and who owns at least seven

acres of land inside the district's boundaries, except that the

number of persons recommended for consideration by the city

stakeholder may not exceed a total of one person for the first seven

acres of land the city stakeholder owns and not more than one

additional person for each additional 15 acres the city stakeholder

owns.

(d) The governing body is not bound by the recommendations

of the board or a city stakeholder and may appoint as a voting

director any qualified person.

Sec. 3953.053. NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve on the board.

Sec. 3953.054. REMOVAL OF DIRECTORS. (a) The board shall

remove a director if the director has missed at least half the

meetings scheduled during the preceding 12 months.

(b) A director removed under this section may file a written

appeal with the governing body of the city. The governing body may

reinstate the director if the body finds that the removal was

unwarranted under the circumstances after considering the reasons

for the absences.

Sec. 3953.055. QUORUM. For 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. 3953.056. INITIAL VOTING DIRECTORS. (a) The initial

board consists of the following voting directors:

Pos. No.

Name of Director

_______________

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

appointed for positions one through five expire June 1, 2019, and

the terms of directors appointed for positions six through nine

expire June 1, 2021.

(d) This section expires September 1, 2021.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3953.101. GENERAL POWERS AND DUTIES. The district has

the powers and duties necessary to accomplish the purposes for

which the district is created.

Sec. 3953.102. IMPROVEMENT PROJECTS AND SERVICES. The

district may provide, design, construct, acquire, improve,

relocate, operate, maintain, or finance an improvement project or

service using any money available to the district, or contract with

a governmental or private entity to provide, design, construct,

acquire, improve, relocate, operate, maintain, or finance an

improvement project or service authorized under this chapter or

Chapter 372 or 375, Local Government Code.

Sec. 3953.103. LOCATION OF IMPROVEMENT PROJECT. An

improvement project described by Section 3953.102 may be located:

(1) in the district; or

(2) in an area outside the district if the project is

for the purpose of extending a public infrastructure improvement

beyond the district's boundaries to a logical terminus.

Sec. 3953.104. PUBLIC IMPROVEMENT DISTRICT POWERS. The

district has the powers provided by Chapter 372, Local Government

Code, to a municipality or county.

Sec. 3953.105. MUNICIPAL MANAGEMENT DISTRICT POWERS. The

district has the powers provided by Chapter 375, Local Government

Code.

Sec. 3953.106. DEVELOPMENT CORPORATION POWERS. The

district, using money available to the district, may exercise the

powers given to a development corporation under Chapter 505, Local

Government Code, including the power to own, operate, acquire,

construct, lease, improve, or maintain a project under that

chapter.

Sec. 3953.107. 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 to be a local

government corporation created under Subchapter D, Chapter 431,

Transportation Code; and

(2) may implement any project and provide any service

authorized by this chapter.

nonprofit corporation. 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 Subchapter D,

Chapter 431, Transportation Code, except that a board member is not

required to reside in the district.

Sec. 3953.108. AGREEMENTS; GRANTS. (a) As provided by

Chapter 375, Local Government Code, 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. 3953.109. LAW ENFORCEMENT SERVICES. To protect the

public interest, the district may contract with a qualified party

to provide law enforcement services for a fee.

Sec. 3953.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Sec. 3953.111. ECONOMIC DEVELOPMENT. (a) The district may

engage in activities that accomplish the economic development

purposes of the district.

(b) 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, including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services,

including for the management of recreational facilities.

and exercise the economic development powers provided to

municipalities by:

(1) Chapter 380, Local Government Code; and

(2) Subchapter A, Chapter 1509, Government Code.

Sec. 3953.112. PARKING FACILITIES. (a) The district may

acquire, lease as lessor or lessee, construct, develop, own,

operate, and maintain parking facilities or a system of parking

facilities, including lots, garages, parking terminals, or other

structures or accommodations for parking motor vehicles off the

streets and related appurtenances.

(b) The district's parking facilities serve the public

purposes of the district and are owned, used, and held for a public

purpose even if leased or operated by a private entity for a term of

years.

necessary components of a street and are considered to be a street

or road improvement.

(d) The development and operation of the district's parking

facilities may be considered an economic development program.

Sec. 3953.113. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) The district may exclude land as provided by Subchapter

J, Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

Sec. 3953.114. APPROVAL BY CITY. (a) Except as provided by

Subsection (b), the district must obtain the approval of the city

for:

(1) the issuance of bonds for an improvement project

financed by the bonds if any part of the project is carried out in

the corporate limits of the city; and

(2) the plans and specifications of the improvement

project financed by the bonds.

(b) If the district obtains the approval of the city's

governing body 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.

Sec. 3953.115. CONCURRENCE ON ADDITIONAL POWERS. If the

legislature grants the district a power that is in addition to the

powers approved by the initial resolution of the governing body of

the city consenting to the creation of the district, the district

may not exercise that power unless the governing body of the city by

resolution consents to that change.

Sec. 3953.116. NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

Sec. 3953.151. 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 district money.

Sec. 3953.152. 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. 3953.153. 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) The petition must be signed by 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 the county.

Sec. 3953.154. 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 in the manner provided for:

(1) a district under Subchapters A, E, and F, Chapter

375, Local Government Code; or

(2) a municipality or county under Subchapter A,

Chapter 372, Local Government Code.

(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. 3953.155. RESIDENTIAL PROPERTY NOT EXEMPT. Section

375.161, Local Government Code, does not apply to a tax authorized

or approved by the voters of the district or a required payment for

a service provided by the district, including water and sewer

services.

Sec. 3953.156. TAX AND ASSESSMENT ABATEMENTS. The district

may designate reinvestment zones and may grant abatements of

district taxes or assessments on property in the zones.

SUBCHAPTER E. TAXES AND BONDS

Sec. 3953.201. TAX ABATEMENT. The district may enter into a

tax abatement agreement in accordance with the general laws of this

state authorizing and applicable to a tax abatement agreement by a

municipality.

Sec. 3953.202. ELECTIONS REGARDING TAXES AND BONDS. (a)

The district may issue, without an election, bonds, notes, and

other obligations secured by:

(1) revenue other than ad valorem taxes; or

(2) contract payments described by Section 3953.204.

(b) The district must hold an election in the manner

provided by Subchapter L, Chapter 375, Local Government Code, to

obtain voter approval before the district may impose an ad valorem

tax or issue bonds payable from ad valorem taxes.

to the district.

(d) All or any part of any facilities or improvements that

may be acquired by a district by the issuance of its bonds may be

submitted as a single proposition or as several propositions to be

voted on at the election.

Sec. 3953.203. OPERATION AND MAINTENANCE TAX. (a) If

authorized by a majority of the district voters voting at an

election held in accordance with Section 3953.202, the district may

impose an operation and maintenance tax on taxable property in the

district in accordance with Section 49.107, Water Code, 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. The rate may not

exceed the rate approved at the election.

district.

Sec. 3953.204. CONTRACT TAXES. (a) In accordance with

Section 49.108, Water Code, the district may impose a tax other than

an operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district voters

voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

Sec. 3953.205. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS

AND OTHER OBLIGATIONS. (a) The district may borrow money on terms

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from a

bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue bonds, notes, or other

obligations payable wholly or partly from ad valorem taxes,

assessments, impact fees, revenue, contract payments, grants, or

other district money, or any combination of those sources of money,

to pay for any authorized district purpose.

bonds, notes, and other obligations provided by Section 49.4645,

Water Code, does not apply to the district.

Sec. 3953.206. TAXES FOR BONDS. At the time the district

issues bonds payable wholly or partly from ad valorem taxes, the

board shall provide for the annual imposition of 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 as

required and in the manner provided by Sections 54.601 and 54.602,

Water Code.

SUBCHAPTER F. DISSOLUTION

Sec. 3953.251. DISSOLUTION BY CITY ORDINANCE. (a) The city

by ordinance may dissolve the district.

(b) The city may not dissolve the district until the

district's outstanding debt or contractual obligations that are

payable from ad valorem taxes have been repaid or discharged, or the

city has affirmatively assumed the obligation to pay the

outstanding debt from city revenue.

Sec. 3953.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE.

(a) If the dissolved district has bonds or other obligations

outstanding secured by and payable from assessments or other

revenue, other than ad valorem taxes, the city shall succeed to the

rights and obligations of the district regarding enforcement and

collection of the assessments or other revenue.

(b) The city shall have and exercise all district powers to

enforce and collect the assessments or other revenue to pay:

(1) the bonds or other obligations when due and

payable according to their terms; or

(2) special revenue or assessment bonds or other

obligations issued by the city to refund the outstanding bonds or

obligations.

Sec. 3953.253. ASSUMPTION OF ASSETS AND LIABILITIES. (a)

After the city dissolves the district, the city assumes, subject to

the appropriation and availability of funds, the obligations of the

district, including any bonds or other debt payable from

assessments or other district revenue.

(b) After the district is dissolved, the board shall

transfer ownership of all district property to the city.

SECTION 2. The Telfair Tract 5 Commercial Management

District initially includes all the territory contained in the

following area:

Telfair Tract 5 Commercial Management District - Metes and Bounds

The Point of Beginning is 29°34'35.280" N and 95°38'51.525" W. It

describes the intersection of University Boulevard E ROW boundary

and Lexington Boulevard S ROW boundary.

1. Proceeding from Point of Beginning to SE ROW line 1555.17

feet to limits of Lexington Boulevard ROW adjacent to 21-acre city

property boundary.

2. Heading SE 907.67 feet adjacent to the boundary of city

property terminating at the limits of the Fort Bend Levee

Improvement District No. 17 ROW. (F.N. 2014126419 F.B.C.C.F.)

3. Heading NW 2076.70 feet adjacent to the SW boundary of

Fort Bend County Levee Improvement District No. 17 property,

joining the S Lexington Boulevard ROW boundary.

4. Heading E 112.05 feet adjacent to the SE Lexington

Boulevard ROW line terminating within Fort Bend County Levee

Improvement District Property at 29°34'55.646"N and 95°38'26.975'W

5. Heading N 964.73 feet adjacent to the Fort Bend County

Levee Improvement District No. 17 Drainage Ditch to the

intersection of US59 Frontage Texas Department of Transportation S

ROW.

6. Heading SW 2164.11 feet adjacent to US59 Frontage Texas

Department of Transportation S ROW to intersection of Texas

Department of Transportation Tract 121, Part 3, bounded by US59 to

the N and University Boulevard to the W.

7. Heading SW 615.96 feet adjacent to US59 Frontage Road ROW

to intersection of NE ROW boundary of University Boulevard.

8. Heading SW 517.90 feet adjacent to the E ROW boundary of

University Boulevard terminating at the property boundary of Tract

121, Part 3 as recorded in the Alexander Hodge Survey Abstract

Number 32, Fort Bend County, Texas.

9. Heading S 328.33 feet adjacent to the University

Boulevard E ROW boundary, terminating at the S ROW boundary at

Aberfeldy Street.

10. Heading E 680.44 feet adjacent to Aberfeldy Street S

ROW, bounded by Texas Instruments Inc. (TxDot Tract 5, Block 1,

5.921 Ac. Reserve A) to the S, terminating at the intersection of

Aberfeldy Street and Tamarind Street at 29° 34'40.788" N and

95°38'43.515"W

11. Heading S 453.13 feet adjacent to Tamarind Street,

terminating at 29°34'36.228"N and 95°38'44.098"W bounded by

Lexington Boulevard N ROW boundary to the S and Texas Instruments

Inc. (TxDot Tract 5, Block 1, 5.921 Ac. Reserve A) to the N.

12. Heading W 663.20 feet adjacent to Lexington Boulevard N

ROW boundary terminating at the intersection of University

Boulevard E ROW boundary at 29°34'37.083"N and 95°38'51.151"W.

13. Heading S 201.19 feet adjacent to the University

Boulevard terminating at the Point of Beginning containing the

319.633 acres of land.

SECTION 3. (a) The 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

under Section 59, Article XVI, Texas Constitution, and Chapter 313,

Government Code.

(b) The governor, one of the required recipients, has

submitted the notice and Act to the Texas Commission on

Environmental Quality.

its recommendations relating to this Act with the governor,

lieutenant governor, and speaker of the house of representatives

within the required time.

(d) 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.

(e) 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. 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, 2017.