86R24330 SMT-F
  By: Davis of Dallas H.B. No. 4750
  relating to the creation of the Trinity Municipal Management
  District; providing authority to issue bonds; providing authority
  to impose assessments and fees.
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 3989 to read as follows:
         Sec. 3989.0101.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Dallas.
               (3)  "Commission" means the Texas Commission on
  Environmental Quality.
               (4)  "County" means Dallas County.
               (5)  "Director" means a board member.
               (6)  "District" means the Trinity Municipal Management
         Sec. 3989.0102.  NATURE OF DISTRICT. The Trinity Municipal
  Management District is a special district created under Section 59,
  Article XVI, Texas Constitution.
         Sec. 3989.0103.  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
         (b)  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.
         (c)  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.
         (d)  This chapter and the creation of the district may not be
  interpreted to relieve the county or the city 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 county or city services
  provided in the district.
  (a) 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.
         (b)  The district is created to serve a public use and
         (c)  The creation of the district is in the public interest
  and is essential to further the public purposes of:
               (1)  developing and diversifying the economy of the
               (2)  eliminating unemployment and underemployment;
               (3)  developing or expanding transportation and
               (4)  eliminating homelessness and establishing a means
  to address related social, medical, or mental health needs; and
               (5)  preventing dislocation of residents and providing
  affordable housing.
         (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. 3989.0105.  INITIAL DISTRICT TERRITORY. The district
  is initially composed of the territory described by Section 2 of the
  Act enacting this chapter.
  (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; or
               (3)  an enterprise zone created under Chapter 2303,
  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.
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3989.0108.  CONSTRUCTION OF CHAPTER. This chapter
  shall be liberally construed in conformity with the findings and
  purposes stated in this chapter.
         Sec. 3989.0201.  BOARD OF DIRECTORS; TERMS. The district is
  governed by a board of five directors who serve staggered terms of
  four years, with two or three directors' terms expiring on June 1st
  of each even-numbered year.
         Sec. 3989.0202.  APPOINTMENT OF BOARD. Directors are
  appointed by the mayor of the city.
         Sec. 3989.0203.  INITIAL DIRECTORS. (a)  Notwithstanding
  Sections 3989.0201 and 3989.0202, the initial board consists of the
  14 elected representatives serving on the city council of the city
  on the effective date of the Act enacting this chapter.  The initial
  directors serve until the earlier of:
               (1)  June 1, 2020; or
               (2)  the date directors are appointed for new districts
  created by a division of the district under Subchapter F.
         (b)  Notwithstanding Section 3989.0201, the mayor shall
  designate two directors who succeed initial directors under
  Subsection (a)(1) to serve two-year terms.
         Sec. 3989.0301.  GENERAL POWERS AND DUTIES. (a)  The
  district has the powers and duties necessary to accomplish the
  purposes for which the district is created.
         (b)  The district shall adopt a comprehensive plan for
  accomplishing the purposes of the district.
         Sec. 3989.0302.  IMPROVEMENT PROJECTS AND SERVICES. (a) The
  district, using any money available to the district for the
  purpose, may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service authorized under this chapter or Chapter 375, Local
  Government Code.
         (b)  The district may contract with a governmental or private
  entity to carry out an action under Subsection (a).
         (c)  The implementation of a district project or service is a
  governmental function or service for the purposes of Chapter 791,
  Government Code.
         Sec. 3989.0303.  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.
         (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 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. 3989.0304.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with a qualified party,
  including the county or the city, to provide law enforcement
  services in the district for a fee.
  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. 3989.0306.  ECONOMIC DEVELOPMENT PROGRAMS. (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 in the district, including programs to:
               (1)  make loans and grants of public money; and
               (2)  provide district personnel and services.
         (c)  The district may create economic development programs
  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. 3989.0307.  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
         (c)  The district's parking facilities are parts of and
  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. 3989.0308.  ADDING OR EXCLUDING LAND. The district may
  add or exclude land in the manner provided by Subchapter J, Chapter
  49, Water Code, or by Subchapter H, Chapter 54, Water Code.
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of district money.
  district has the powers provided by Chapter 372, Local Government
  Code, to a municipality or county.
         Sec. 3989.0311.  RATES, FEES, AND CHARGES. The district may
  establish, revise, repeal, enforce, and collect rates, fees, and
  charges for the enjoyment, sale, rental, or other use of:
               (1)  an improvement project;
               (2)  a product resulting from an improvement project;
               (3)  another district facility, service, or property.
         Sec. 3989.0312.  BOARD DETERMINATION REQUIRED.  The district
  may not undertake an improvement project unless the board
  determines the project is necessary to accomplish a public purpose
  of the district.
         Sec. 3989.0313.  LOCATION OF IMPROVEMENT PROJECT. An
  improvement project may be located or provide service inside or
  outside the district.
         Sec. 3989.0314.  CITY REQUIREMENTS.  An improvement project
  in the district must comply with any applicable requirements of the
  city, including codes and ordinances, unless specifically waived or
  superseded by agreement with the city.
         Sec. 3989.0315.  RULES AND REGULATIONS. Notwithstanding any
  other law, with the approval of the city as provided by a resolution
  or ordinance, the district may:
               (1)  establish rules and regulations governing zoning
  and land use in the district; and
               (2)  establish rules and regulations to promote the use
  of historically underutilized businesses for the provision of goods
  and services in the district.
  The district may enforce a real property restriction in the manner
  provided by Section 54.237, Water Code, if, in the reasonable
  judgment of the board, the enforcement of the restriction is
  ASSESSMENTS AND FEES. The district may not impose an assessment,
  impact fee, or standby fee on the property, including the
  equipment, rights-of-way, easements, facilities, or improvements,
               (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, or a person who owns pipelines used for the
  transportation or sale of oil or gas or a product or constituent of
  oil or gas;
               (3)  a person who owns pipelines used for the
  transportation or sale of carbon dioxide;
               (4)  a telecommunications provider as defined by
  Section 51.002, Utilities Code; or
               (5)  a cable service provider or video service provider
  as defined by Section 66.002, Utilities Code.
         Sec. 3989.0318.  NO AD VALOREM TAX.  The district may not
  impose an ad valorem tax.
         Sec. 3989.0319.  NO TOLL ROADS. The district may not
  construct, acquire, maintain, or operate a toll road.
         Sec. 3989.0320.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  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
  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. 3989.0402.  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
         (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
               (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 would enforce an ad valorem tax lien against real property if
  the board were authorized to impose an ad valorem tax.
         (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. 3989.0403.  RESIDENTIAL PROPERTY NOT EXEMPT. Sections
  375.161 and 375.164, Local Government Code, do not apply to the
         Sec. 3989.0404.  COLLECTION OF ASSESSMENTS.  The district
  may contract as provided by Chapter 791, Government Code, with the
  commissioners court of the county for the assessment and collection
  of assessments imposed under this subchapter.
  BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
  terms determined by the board.
         (b)  The district may issue, by public or private sale,
  bonds, notes, or other obligations payable wholly or partly from
  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.
         (c)  The district may issue, by public or private sale,
  bonds, notes, or other obligations payable wholly or partly from
  assessments in the manner provided by Subchapter A, Chapter 372,
  Local Government Code, if the improvement financed by an obligation
  issued under this section will be conveyed to or operated and
  maintained by a municipality or other retail utility provider
  pursuant to an agreement with the district entered into before the
  issuance of the obligation.
         Sec. 3989.0601.  DIVISION OF DISTRICT; PREREQUISITES. The
  district may be divided into two or more new districts.
         Sec. 3989.0602.  LAW APPLICABLE TO NEW DISTRICT. This
  chapter applies to any new district created by division of the
  district, and a new district has all the powers and duties of the
         Sec. 3989.0603.  LIMITATION ON AREA OF NEW DISTRICT. A new
  district created by the division of the district may not, at the
  time the new district is created, contain any land outside the area
  described by Section 2 of the Act enacting this chapter.
         Sec. 3989.0604.  DIVISION PROCEDURES. (a) The board may
  adopt an order dividing the district.
         (b)  An order dividing the district must:
               (1)  name each new district;
               (2)  include a description of the territory of each new
               (3)  include the names of directors for each new
  district appointed by the mayor of the city; and
               (4)  provide for the division of assets and liabilities
  between the new districts.
         (c)  Not later than the 30th day after the date the board
  adopts an order dividing the district into two or more new
  districts, the mayor of the city shall appoint directors for each
  new district.  The mayor shall designate two directors appointed
  under this subsection to serve two-year terms.
         (d)  On or before the 30th day after the date of adoption of
  an order dividing the district, the district shall file the order
  with the commission and record the order in the real property
  records of each county in which the district is located.
         Sec. 3989.0901.  DISSOLUTION. (a) The board shall dissolve
  the district on written petition filed with the board by the owners
               (1)  66 percent or more of the assessed value of the
  property subject to assessment by the district based on the most
  recent certified county property tax rolls; or
               (2)  66 percent or more of the surface area of the
  district, excluding roads, streets, highways, utility
  rights-of-way, other public areas, and other property exempt from
  assessment by the district according to the most recent certified
  county property tax rolls.
         (b)  The board by majority vote may dissolve the district at
  any time.
         (c)  The district may not be dissolved by its board under
  Subsection (a) or (b) if the district:
               (1)  has any outstanding bonded indebtedness until that
  bonded indebtedness has been repaid or defeased in accordance with
  the order or resolution authorizing the issuance of the bonds;
               (2)  has a contractual obligation to pay money until
  that obligation has been fully paid in accordance with the
  contract; or
               (3)  owns, operates, or maintains public works,
  facilities, or improvements unless the district contracts with
  another person for the ownership, operation, or maintenance of the
  public works, facilities, or improvements.
         (d)  Sections 375.261, 375.262, and 375.264, Local
  Government Code, do not apply to the district.
         (e)  The city is not liable for district debts or obligations
  following dissolution under this subchapter.
         SECTION 2.  The Trinity Municipal Management District
  initially includes all the territory that, as of the effective date
  of this Act, is:
               (1)  in the corporate limits of Dallas, Texas; and
               (2)  included in a population census tract that is:
                     (A)  a qualified opportunity zone as defined by
  Section 1400Z-1, Internal Revenue Code of 1986; and
                     (B)  designated an opportunity zone by the
         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.
         (c)  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.
         (d)  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, 2019.