87R7595 JXC-D
 
  By: Taylor S.B. No. 1160
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Gulf Coast Protection District;
  providing authority to issue bonds; providing authority to impose
  fees; providing authority to impose a tax; granting the power of
  eminent domain.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle K, Title 6, Special District Local Laws
  Code, is amended by adding Chapter 9502 to read as follows:
  CHAPTER 9502. GULF COAST PROTECTION DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 9502.0101.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "Director" means a board member.
               (3)  "District" means the Gulf Coast Protection
  District.
               (4)  "Ecosystem restoration report" means the Sabine
  Pass to Galveston Bay, Texas Coastal Storm Risk Management and
  Ecosystem Restoration Final Integrated Feasibility
  Report—Environmental Impact Statement issued by the Galveston
  District, Southwestern Division, of the United States Army Corps of
  Engineers in May 2017.
               (5)  "Protection and restoration study" means the
  Coastal Texas Protection and Restoration Feasibility Study Final
  Integrated Feasibility Report and Environmental Impact Statement
  to be issued by the Galveston District, Southwestern Division, of
  the United States Army Corps of Engineers, the draft version of
  which was issued in October 2020.
         Sec. 9502.0102.  NATURE OF DISTRICT. The district is a
  special district created under Section 59, Article XVI, Texas
  Constitution.
         Sec. 9502.0103.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a) The creation of the district is essential to accomplish the
  purposes of Section 59, Article XVI, Texas Constitution, and other
  public purposes stated in this chapter.
         (b)  The creation of the district is necessary to establish
  an instrumentality for protecting the coast in Brazoria, Chambers,
  Galveston, Harris, Jefferson, and Orange Counties in the manner
  provided by this chapter.
         (c)  The district is created to serve a public use and
  benefit.
         (d)  All land and other property included in the boundaries
  of the district will benefit from the works and projects
  accomplished by the district.
         Sec. 9502.0104.  DISTRICT TERRITORY. (a)  The district is
  composed of the territory in Brazoria, Chambers, Galveston, Harris,
  Jefferson, and Orange Counties and territory annexed to the
  district as described by Subsection (b).
         (b)  The governing body of the district by order shall annex
  to the district the territory of a county included in the protection
  and restoration study at the request of the commissioners court of
  that county.
         Sec. 9502.0105.  APPLICATION OF SUNSET ACT. (a) The
  district is subject to review under Chapter 325, Government Code
  (Texas Sunset Act), but may not be abolished under that chapter.
  The review shall be conducted under Section 325.025, Government
  Code, as if the authority were a state agency scheduled to be
  abolished September 1, 2033, and every 12th year after that year.
         (b)  The limited review under this section must assess the
  district's:
               (1)  governance;
               (2)  management;
               (3)  operating structure; and
               (4)  compliance with legislative requirements.
         (c)  The district shall pay the cost incurred by the Sunset
  Advisory Commission in performing the review. The Sunset Advisory
  Commission shall determine the cost, and the district shall pay the
  amount promptly on receipt of a statement from the Sunset Advisory
  Commission detailing the cost.
         (d)  The district may not be required to conduct a management
  audit under Chapter 292, Title 30, Texas Administrative Code.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 9502.0151.  GOVERNING BODY; TERMS.  (a)  The district is
  governed by a board of 11 directors appointed by the governor.  The
  governor shall consult with the commissioners courts of Brazoria
  County, Chambers County, Galveston County, Harris County,
  Jefferson County, and Orange County before appointing the board
  members.
         (b)  Directors serve staggered four-year terms.
         (c)  When a director's term expires, the governor shall
  appoint a successor.
         (d)  If a director's office becomes vacant by death,
  resignation, or removal, the governor shall appoint a director to
  serve for the remainder of the unexpired term.
         (e)  Notwithstanding Subsection (b), the governor shall
  designate five initial directors to serve a first term of two years.  
  This subsection expires September 1, 2025.
         Sec. 9502.0152.  REMOVAL. The governor may remove a
  director at any time and appoint a replacement director to serve the
  remainder of the unexpired term.
         Sec. 9502.0153.  QUALIFICATION. To qualify for office, a
  director must be a registered voter who resides in the district.
         Sec. 9502.0154.  CERTAIN CONFLICTS PROHIBITED. (a)  An
  individual is not eligible to serve as a director if, in the
  preceding 24 months, the individual had an interest in or was
  employed by or affiliated with a person who has submitted a bid or
  entered into a contract for a district project.
         (b)  The board may not employ or appoint an individual
  described by Subsection (a) to work for the district.
         (c)  A director may not be employed professionally for
  remuneration in a profession related to the operation of the
  district during the director's term of office.
         Sec. 9502.0155.  REIMBURSEMENT. A director is not entitled
  to compensation but is entitled to reimbursement for necessary
  expenses incurred in carrying out the duties and responsibilities
  of the board.
         Sec. 9502.0156.  VOTING. A concurrence of a majority of the
  directors is required for transacting any business of the district.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 9502.0201.  GENERAL DISTRICT POWERS. (a) Except as
  provided by Subsection (b), the district may:
               (1)  establish, construct, extend, maintain, operate,
  or improve a coastal barrier or storm surge gate in the manner
  provided by Chapter 571, Local Government Code, for a county to
  establish, construct, extend, maintain, or improve a seawall;
               (2)  exercise the authority granted to counties to
  conduct any project described by Chapter 571, Local Government
  Code;
               (3)  establish, construct, and maintain recreational
  facilities for public use and environmental mitigation facilities
  related to a project described by Subdivision (1) or (2); and
               (4)  establish, construct, maintain, or operate a
  project recommended in the ecosystem restoration report or the
  protection and restoration study.
         (b)  Sections 571.006, 571.007, 571.008, 571.009, and
  571.010, Local Government Code, do not apply to the district.
         Sec. 9502.0202.  ELECTIONS REGARDING TAXES AND BONDS. (a)  
  The district must hold an election in the manner provided by Chapter
  49, Water Code, to obtain voter approval before the district may
  impose an ad valorem tax or issue bonds payable from ad valorem
  taxes.
         (b)  The district, without an election, may issue bonds,
  notes, or other obligations secured by revenue other than ad
  valorem taxes.
         Sec. 9502.0203.  REQUIREMENTS FOR CERTAIN PROJECTS. If the
  district enters into an agreement with another entity to implement
  a project recommended in the ecosystem restoration report or the
  protection and restoration study, the district:
               (1)  shall develop a maintenance and operation plan for
  the project;
               (2)  may enter into a partnership with a private entity
  to fund a local share of the cost of the project; and
               (3)  may use any available money to provide matching
  funds to the United States Army Corps of Engineers to implement the
  project.
         Sec. 9502.0204.  ACQUISITION AND DISPOSITION OF PROPERTY AND
  RIGHTS. (a) The district may purchase, lease, acquire by gift,
  maintain, use, and operate property of any kind appropriate for the
  exercise of the district's functions.
         (b)  The district may acquire permits, licenses, and rights
  related to the exercise of the district's functions.
         Sec. 9502.0205.  AGREEMENTS. (a) The district may enter
  into a cooperative agreement with a political subdivision, state
  agency, or federal agency for a purpose related to the operation or
  maintenance of a district project.
         (b)  The district may enter into an interlocal agreement with
  a political subdivision for a purpose related to the construction,
  operation, or maintenance of a district project.
         Sec. 9502.0206.  CONTRACTS GENERALLY. (a) The district may
  enter into contracts and execute instruments that are necessary or
  convenient to the exercise of the district's powers, rights,
  duties, and functions. A contract may be for any term, including
  for the life of any facility or structure in the territory of the
  district.
         (b)  The district and another governmental entity may enter
  into a contract for the operation or maintenance of an authorized
  project in the same way that a political subdivision may contract
  with another governmental entity under Chapter 472, Transportation
  Code, to construct or maintain a road or highway.
         (c)  A public agency or political subdivision is authorized
  to:
               (1)  enter into a contract with the district;
               (2)  determine, agree, and pledge that all or any part
  of its payments under a contract with the district shall be payable
  from any source, subject only to the authorization by a majority
  vote of the governing body of such public agency or political
  subdivision of the contract, pledge, and payments;
               (3)  use and pledge any available revenues or resources
  for and to the payment of amounts due under a contract with the
  district as an additional source of payment or as the sole source of
  payment and agree with the district to assure the availability of
  revenue and resources when required; and
               (4)  fix, charge, and collect impact fees and utility
  charges, if the public agency or political subdivision is otherwise
  authorized to impose the fees and charges, and to use and pledge
  revenue from the fees or charges to make payments to the district
  required under a contract with the district.
         Sec. 9502.0207.  CERTAIN CONTRACTS. (a) This section
  applies only to a contract for:
               (1)  construction or repair;
               (2)  purchase of material, equipment, or supplies; or
               (3)  services other than technical, scientific, legal,
  fiscal, or other professional services.
         (b)  If a contract will require an estimated expenditure of
  more than $25,000, or if a contract is for a term of more than five
  years, the district shall:
               (1)  publish a notice to bidders once each week for
  three consecutive weeks before the date set for awarding the
  contract; and
               (2)  award the contract to the lowest and best bidder.
         (c)  The notice under Subsection (b) must:
               (1)  state the time and place the bids will be opened;
               (2)  describe:
                     (A)  the general nature of the work to be done;
                     (B)  the material, equipment, or supplies to be
  purchased; or
                     (C)  the nonprofessional services to be rendered;
  and
               (3)  state the terms on which copies of the plans,
  specifications, or other pertinent information may be obtained.
         (d)  The notice must be published in a newspaper of general
  circulation in the county or counties in which the contract is to be
  performed. In addition to publishing notice in a newspaper of
  general circulation, the notice may also be published in any other
  appropriate publication.
         (e)  A person desiring to bid on the construction of any work
  advertised as provided by this section shall, on written
  application to the board, be furnished with a copy of the detailed
  plans and specifications or other detailed engineering and
  architectural documents showing the work to be done. The district
  may charge a fee to cover the cost of providing the copy.
         (f)  All bids must be in writing, sealed and delivered to the
  board, and accompanied by a certified check on a bank located in
  this state, or a bid bond from a company approved by the board, in an
  amount equal to at least one percent of the total amount bid.
         (g)  The amount of the check or bond shall be forfeited to the
  district if the successful bidder fails or refuses to:
               (1)  enter into a proper contract; or
               (2)  furnish bond as required by law.
         (h)  The board may reject any or all bids.
         (i)  Bids shall be opened at the time and place specified in
  the notice and shall be announced by the board. The place where the
  bids are opened and announced must be open to the public.
         (j)  The contract price of all construction contracts of the
  district may be made in partial payment as the work progresses, but
  the payments may not exceed 90 percent of the amount due at the time
  of each payment. The board shall, during the progress of the work,
  inspect the work or cause the work to be inspected by a district
  employee. On the completion of any contract in accordance with the
  contract's terms, the board shall pay the balance due on the
  contract.
         (k)  The person to whom a contract is awarded shall provide
  the performance and payment bonds required by law.
         (l)  This section does not prohibit the district from
  purchasing surplus property from the United States by contract and
  without advertising for bids.
         (m)  An officer, agent, or employee of the district who has a
  financial interest in a contract of the types described by
  Subsection (a) shall disclose that fact to the board before the
  board votes on the acceptance of the contract.
         (n)  Notwithstanding any provision of any charter of any
  municipality, contracts between the authority and a municipality
  are not required to be approved by the voters of the municipality at
  an election.
         (o)  In an emergency, the district is not required to comply
  with the bidding procedures described by this section and may award
  a contract necessary to protect and preserve the public health and
  welfare or the properties of the district.
         Sec. 9502.0208.  NAVIGATION DISTRICT AUTHORITY. Except as
  provided by Section 9502.0209(b), an order or action of a
  navigation district relating to the operation or maintenance of a
  district project supersedes an order or action of the district to
  the extent of any conflict.
         Sec. 9502.0209.  AUTHORITY TO DEVELOP BARRIER CLOSURE
  PROCEDURES.  (a)  If the district implements a project to create a
  coastal barrier, the district shall develop closure procedures in
  conjunction with each navigation district affected by the barrier
  or closure.
         (b)  A navigation district may not unilaterally stop a
  closure that is proceeding in accordance with procedures developed
  under this section.
         Sec. 9502.0210.  ANNUAL REPORT REQUIRED. The district shall
  annually submit a report to the legislature, the Legislative Budget
  Board, the General Land Office, and the commissioners court of each
  county in which the district is located. The report must:
               (1)  describe the district's financial condition and
  operations during the preceding year;
               (2)  propose a budget for the following year; and
               (3)  describe generally the work proposed for the
  following year.
         Sec. 9502.0211.  EMINENT DOMAIN.  The district may exercise
  the power of eminent domain to acquire a fee simple or other
  interest in any type of property if the interest is necessary or
  convenient for the exercise of the district's functions. The
  district must exercise the power of eminent domain in the manner
  provided by Chapter 21, Property Code.
         SECTION 2.  (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, the
  lieutenant governor, and the 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 are fulfilled
  and accomplished.
         SECTION 3.  (a) Section 9502.0211, Special District Local
  Laws Code, as added by Section 1 of this Act, takes effect only if
  this Act receives a two-thirds vote of all the members elected to
  each house.
         (b)  If this Act does not receive a two-thirds vote of all the
  members elected to each house, Subchapter C, Chapter 9502, Special
  District Local Laws Code, as added by Section 1 of this Act, is
  amended by adding Section 9502.0211 to read as follows:
         Sec. 9502.0211.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
         (c)  This section is not intended to be an expression of a
  legislative interpretation of the requirements of Section 17(c),
  Article I, Texas Constitution.
         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, 2021.