By: Anchía H.B. No. 5282
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Dallas Municipal Management
  District; providing authority to issue bonds; providing authority
  to impose assessments and fees.
         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 a new Chapter 3925 to read as follows:
  CHAPTER  .  DALLAS MUNICIPAL MANAGEMENT DISTRICT
  SUBCHAPTER A. GENERAL PROVISIONS
         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 Dallas Municipal Management
  District.
         Sec. 3989.0102.  NATURE OF DISTRICT. The Dallas 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
  chapter.
         (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.
         Sec. 3989.0104.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (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
  benefit.
         (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
  state;
               (2)  eliminating unemployment and underemployment;
               (3)  developing or expanding transportation and
  commerce;
               (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.
         Sec. 3989.0106.  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; 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.
         Sec. 3989.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  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.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3989.0201.  BOARD OF DIRECTORS; TERMS. The district is
  governed by a board consisting of the members of the Dallas City
  Council.
  SUBCHAPTER C. POWERS AND DUTIES
         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. 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.
         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.
         Sec. 3989.0305.  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. 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.  IMPROVEMENTS. (a) Notwithstanding any
  other law, including Chapter 26, Parks and Wildlife Code, the
  district may acquire, lease as lessor or lessee, construct,
  develop, own, operate, and maintain any improvement, structure, or
  facility for any use that accomplishes the purposes of this Act and
  that otherwise complies with the City's zoning and land use
  regulations.
         (b)  The sell or lease of any improvements or the sell or
  lease of any air rights, regardless of the terms or lengths of said
  conveyances are exempt from the provisions of Chapter 253, Local
  Government Code,
         Sec. 3989.0309.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
  board shall establish the procedure required for a disbursement or
  transfer of district money.
         Sec. 3989.0310.  PUBLIC IMPROVEMENT DISTRICT POWERS. The
  district has the powers provided by Chapter 372, Local Government
  Code, to a municipality or county.
         Sec. 3989.0311.  RATES, FEES, AND CHARGES. (a) 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;
  or
               (3)  another district facility, service, or property.
         (b)  Chapter 272, Local Government Code, does not apply to
  the sell, lease, rental or conveyance of district 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, REGULATIONS, AND POWERS.
  Notwithstanding any other law the district may:
               (1)  establish rules and regulations governing zoning
  and land use in the district;
               (2)  establish rules and regulations to promote the use
  of historically underutilized businesses for the provision of goods
  and services in the district;
               (3)  establish rules and regulations to minimize the
  effects of displacement and gentrification on nearby
  neighborhoods; and
               (4)  establish rules and regulations to assist the
  residents of nearby neighborhoods with home repair assistance and
  property tax relief.
         Sec. 3989.0316.  ENFORCEMENT OF REAL PROPERTY RESTRICTIONS.
  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
  necessary.
         Sec. 3989.0317.  PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
  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,
  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, 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 TOLL ROADS. The district may not
  construct, acquire, maintain, or operate a toll road.
  SUBCHAPTER D. ASSESSMENTS
         Sec. 3989.0401.  FINANCING SERVICES AND IMPROVEMENTS WITH
  ASSESSMENTS. (a) The board may finance a service or improvement
  project with assessments under this chapter.
         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
  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.
         (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
  district.
         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.
  SUBCHAPTER E. BONDS
         Sec. 3989.0501.  AUTHORITY TO BORROW MONEY AND TO ISSUE
  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.
  SUBCHAPTER F. REBATES, REFUNDS, AND PAYMENTS OF CERTAIN ELIGIBLE
  TAX PROCEEDS
         (a)  For a period that may not exceed 10 years, a
  governmental body, including a municipality, county, or political
  subdivision, may agree to rebate, refund, or pay eligible taxable
  proceeds to the district that were generated or received from
  taxable entities within the district.
         (b)  An agreement under this section must be in writing,
  contain an expiration date, and require the beneficiary to provide
  documentation necessary to support a claim.
         (c)  A governmental body that makes an agreement under this
  section shall make the rebate, refund, or payment directly to the
  beneficiary.
         (d)  In this section, "eligible taxable proceeds" means
  taxable proceeds generated, paid, or collected by any person or
  business located within the district, including hotel occupancy
  taxes, ad valorem taxes, sales and use taxes, and mixed beverage
  taxes.
         (e)  Notwithstanding any other law, the comptroller shall
  deposit eligible taxable proceeds that were collected by or
  forwarded to the comptroller, and to which the district is entitled
  according to an agreement under this section, in trust in a separate
  suspense account of the project. A suspense account is outside the
  state treasury, and the comptroller may make a rebate, refund, or
  payment authorized by this section without the necessity of an
  appropriation. The comptroller shall rebate, refund, or pay to
  each qualified hotel project eligible taxable proceeds to which the
  project is entitled under this section at least quarterly.
  SUBCHAPTER G. EXPANSION OF DISTRICT
         Sec. 3989.0601.  The board may at any time by resolution add
  land to the district that is contiguous to the district and owned by
  the City of Dallas.
  SUBCHAPTER H. DISSOLUTION
         Sec. 3989.0901.  DISSOLUTION. (a) The board by majority
  vote may dissolve the district at any time.
         (b)  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 ____.  Sec.    . INCREMENTAL STATE TAX REVENUE. (a)
  In this section:
  "Base year amount" means the amount of state tax revenue collected
  in the district during the calendar year in which the board
  designates a base year.
  "Incremental state tax revenue" means the amount in any calendar
  year by which state tax revenue generated within the district
  exceeds the base year amount.
  "State tax revenue" means the state sales and use taxes paid or
  collected within the district pursuant to Chapter 151, Tax Code;
  state hotel occupancy taxes paid or collected within the district
  pursuant to Chapter 156, Tax Code; and tax revenue collected from
  all permittees within the district under Chapter 183, Tax Code,
  excluding revenue disbursed by the comptroller under Section
  183.051(b), Tax Code.
         (b)  The board by resolution may designate a date to
  establish a base year. The district shall receive a rebate, refund,
  or payment of 100 percent of the incremental state tax revenue paid
  or collected within the district for the first 30 years after the
  year in which the board designates a base year. The comptroller
  shall deposit the taxes in trust in a separate suspense account of
  the district. A suspense account is outside the state treasury, and
  the comptroller may make a rebate, refund, or payment authorized by
  this section without the necessity of an appropriation. The
  comptroller shall rebate, refund, or pay to the district all
  eligible incremental state tax revenue to which the district is
  entitled under this section at least quarterly.
         (c)  The board may pledge the revenue received under this
  section for the payment of bonds or other obligations issued or
  incurred to acquire, lease, construct, and equip hotels and any
  facilities ancillary to the hotels, convention center
  entertainment-related facilities, restaurants, retail
  establishments, residential buildings, office buildings,
  educational and community facilities, infrastructure necessary for
  public transit, street and water and sewer infrastructure, sporting
  and entertainment venues, and parking facilities within the
  district.
         SECTION ____.  The Dallas Municipal Management District is a
  noncontiguous district that initially includes all the territory
  that, as of the effective date of this Act, is owned by the City of
  Dallas and lies within the boundaries of the Dallas Zoo and Fair
  Park.
         SECTION ____.  (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 ____.  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, 2023.