Bill Text: TX HB3928 | 2013-2014 | 83rd Legislature | Introduced

---

Bill Title: Relating to the creation of the Westwood Management District; providing authority to issue bonds; providing authority to impose fees or taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-05-02 - Recommendations filed with the Speaker [HB3928 Detail]

Download: Texas-2013-HB3928-Introduced.html

---

83R9681 JSL-F
By: Bonnen of Galveston H.B. No. 3928

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Westwood Management District;
providing authority to issue bonds; providing authority to impose
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 3917 to read as follows:
CHAPTER 3917. WESTWOOD MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3917.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of League City.
(3) "County" means Galveston County.
(4) "Director" means a board member.
(5) "District" means the Westwood Management
District.
Sec. 3917.002. PRECONDITION; EXPIRATION. (a) The district
may not exercise any powers under this chapter until each
municipality in whose corporate limits or extraterritorial
jurisdiction the district is located has consented by ordinance or
resolution to the creation of the district and to the inclusion of
land in the district.
(b) This chapter, including Section 3917.055, expires
September 1, 2015, if any municipality described by Subsection (a)
has not consented to the creation of the district and the inclusion
of land in the district by that date.
Sec. 3917.003. NATURE OF DISTRICT. The Westwood Management
District is a special district created under Section 59, Article
XVI, Texas Constitution.
Sec. 3917.004. 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 the city, the
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,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or the 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 city or county services
provided in the district.
Sec. 3917.005. 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.
(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; 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;
(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;
and
(4) provide for water, wastewater, drainage, road, and
recreational facilities for the district.
(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. 3917.006. 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 bonds;
(3) right to impose or collect a tax; or
(4) legality or operation.
Sec. 3917.007. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES;
AGREEMENTS. (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) a district created under Chapter 42, Local
Government Code, that has the same or similar powers, duties, and
authority as the district created under this chapter.
(b) The district may enter into an agreement with a district
described by Subsection (a)(4) to coordinate services and
improvement projects.
Sec. 3917.008. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3917.009. 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. 3917.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five 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 or the governing body of the
city by resolution or ordinance may change the number of directors
on the board 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 seven directors.
Sec. 3917.052. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the city shall appoint directors
from persons recommended by the board. A person is appointed if a
majority of those members and the mayor vote to appoint that person.
Sec. 3917.053. 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; or
(2) a director who is abstaining from participation in
a vote because of a conflict of interest.
Sec. 3917.054. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses as
provided by Section 49.060, Water Code. Sections 375.069 and
375.070, Local Government Code, do not apply to the board.
Sec. 3917.055. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No. Name of Director
1
2
3
4
5
(b) Of the initial directors, the terms of directors
appointed for positions one and two expire June 1, 2015, and the
terms of directors appointed for positions three through five
expire June 1, 2017.
(c) Section 3917.052 does not apply to this section.
(d) This section expires September 1, 2019.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3917.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3917.102. 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 375, Local Government Code.
Sec. 3917.103. DEVELOPMENT CORPORATION AND DISTRICT
POWERS. The district, using money available to the district, may
exercise the powers given to a development corporation under
Chapter 505, Local Government Code, and a municipal development
district under Chapter 377, Local Government Code, including the
power to own, operate, acquire, construct, lease, improve, or
maintain a project under those chapters.
Sec. 3917.104. 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.
(c) The board may enter into a contract with the board of
directors of a tax increment reinvestment zone created under
Chapter 311, Tax Code, that has territory within or bordering the
district and the governing body of the municipality or county that
created the zone to manage the zone or implement the project plan
and reinvestment zone financing plan.
Sec. 3917.105. 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. 3917.106. 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. 3917.107. 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 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 that:
(1) Chapter 380, Local Government Code, provides to a
municipality; and
(2) Subchapter A, Chapter 1509, Government Code,
provides to a municipality.
Sec. 3917.108. 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. 3917.109. APPROVAL BY CITY. (a) The district must
obtain the approval of the city for:
(1) the issuance of bonds; and
(2) the plans and specifications of an improvement
project related to the use of land owned by the city, an easement
granted to the city, or a right-of-way of a street, road, or
highway.
(b) The district may not issue bonds until the governing
body of the city adopts a resolution or ordinance authorizing the
issuance of the bonds.
(c) The governing body of the city:
(1) is not required to adopt a resolution or ordinance
to approve plans and specifications described by Subsection (a);
and
(2) may establish an administrative process to approve
plans and specifications described by Subsection (a) without the
involvement of the governing body.
Sec. 3917.110. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3917.151. 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. 3917.152. MONEY USED FOR IMPROVEMENT PROJECTS OR
SERVICES. The district may acquire, construct, finance, operate,
or maintain an improvement project or service authorized under this
chapter or Chapter 375, Local Government Code, using any money
available to the district.
Sec. 3917.153. ASSESSMENTS NOT AUTHORIZED. (a) The
district may not impose an assessment.
(b) Subchapter F, Chapter 375, Local Government Code, does
not apply to the district.
Sec. 3917.154. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to a tax approved by
the district voters or a required payment for service provided by
the district, including water and sewer services.
Sec. 3917.155. COMPETITIVE BIDDING. Subchapter I, Chapter
49, Water Code, applies to the district. Sections 375.221 and
375.223, Local Government Code, do not apply to the district.
Sec. 3917.156. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO
IMPOSE TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district
may issue bonds, impose taxes, or borrow money, the district and the
city must negotiate and execute a mutually approved and accepted
interlocal project development agreement regarding the development
plans and rules for:
(1) the development and operation of the district; and
(2) the financing of improvement projects.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3917.201. 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 3917.253.
(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.
(c) Section 375.243, Local Government Code, does not apply
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. 3917.202. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election held in accordance with Section 3917.201, 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.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Sec. 3917.203. 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. 3917.204. AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS. (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, 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.
Sec. 3917.205. 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.
Sec. 3917.206. BONDS FOR RECREATIONAL FACILITIES. The
limitation on the outstanding principal amount of bonds, notes, and
other obligations provided by Section 49.4645, Water Code, does not
apply to the district.
Sec. 3917.207. CITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the city is not required to pay a bond, note, or
other obligation of the district.
SUBCHAPTER F. DISSOLUTION
Sec. 3917.251. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The district may be dissolved as provided by Subchapter
M, Chapter 375, Local Government Code, except that Section 375.264,
Local Government Code, does not apply to the district.
(b) The board may dissolve the district regardless of
whether the district has debt.
(c) 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. The Westwood Management District initially
includes all territory contained in the following area:
[[[Boundaries to be determined]]]
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) 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, 2013.