S.B. No. 1805




AN ACT
relating to the creation of the Galveston County Management District No. 1; providing authority to levy an assessment, impose a tax, and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. GALVESTON COUNTY MANAGEMENT DISTRICT NO. 1. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3841 to read as follows:
CHAPTER 3841. GALVESTON COUNTY MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3841.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "District" means the Galveston County Management District No. 1. Sec. 3841.002. GALVESTON COUNTY MANAGEMENT DISTRICT NO. 1. The Galveston County Management District No. 1 is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 3841.003. 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 of League City, Galveston 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 area of the district. (c) This chapter and the creation of the district may not be interpreted to relieve Galveston County or the City of League 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 the county or city services provided in the area in the district. Sec. 3841.004. 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. (c) The creation of the district is in the public interest and is essential to: (1) further the public purposes of developing and diversifying the economy of the state; (2) eliminate unemployment and underemployment; and (3) develop or expand 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. 3841.005. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2 of the Act enacting this chapter, as that territory may have been modified under: (1) Subchapter J, Chapter 49, Water Code; or (2) other law. (b) The boundaries and field notes of the district 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 in any way affect the district's: (1) organization, existence, or validity; (2) right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond; (3) right to impose or collect an assessment or tax; or (4) legality or operation. Sec. 3841.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in: (1) a tax increment reinvestment zone created by the City of League City under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone created by the City of League City under Chapter 312, Tax Code; or (3) an enterprise zone created by the City of League City under Chapter 2303, Government Code. Sec. 3841.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 3841.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.
[Sections 3841.009-3841.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3841.051. BOARD OF DIRECTORS; TERMS. (a) The district is governed by a board of five voting 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 may change the number of voting directors on the board, but only 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 15 voting directors. Sec. 3841.052. APPOINTMENT OF DIRECTORS. The Texas Commission on Environmental Quality shall appoint voting directors from persons recommended by the board. Sec. 3841.053. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve at the pleasure of the voting directors. Sec. 3841.054. 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. 3841.055. INITIAL VOTING DIRECTORS. (a) The initial board consists of the following voting directors: Pos. No. Name of Director 1 Brian K. Yates 2 E. John Justema 3 Tod A. Ruble 4 Steve Whynott 5 David R. Hearne (b) Of the initial directors, the terms of directors appointed for positions 1 through 3 expire June 1, 2007, and the terms of directors appointed for positions 4 and 5 expire June 1, 2009. (c) Section 3841.052 does not apply to this section. (d) This section expires September 1, 2010.
[Sections 3841.056-3841.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3841.101. ADDITIONAL POWERS OF DISTRICT. The district may exercise the powers given to: (1) an economic development corporation under Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), including the power to own, operate, acquire, construct, lease, improve, or maintain a project described by that section; and (2) a housing finance corporation under Chapter 394, Local Government Code, to provide housing or residential development projects in the district. Sec. 3841.102. 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 for purposes of this chapter to be a local government corporation created under 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 Chapter 431, Transportation Code, except that a board member is not required to reside in the district. Sec. 3841.103. AGREEMENTS; GRANTS. (a) 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. 3841.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To protect the public interest, the district may contract with a qualified party, including Galveston County or the City of League City, for the county or the city to provide law enforcement services in the district for a fee. Sec. 3841.105. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to an organization that: (1) enjoys tax-exempt status under Section 501(c)(3), (4), or (6), Internal Revenue Code of 1986; and (2) performs a service or provides an activity consistent with the furtherance of a district purpose. Sec. 3841.106. ECONOMIC DEVELOPMENT PROGRAMS. (a) 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. (b) For purposes of this section, the district has all of the powers of a municipality under Chapter 380, Local Government Code. Sec. 3841.107. NO EMINENT DOMAIN. The district may not exercise the power of eminent domain.
[Sections 3841.108-3841.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3841.151. 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 the district's money. Sec. 3841.152. 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. 3841.153. 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) A petition filed under Subsection (a) must be signed by: (1) 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 Galveston County; or (2) at least 50 persons who own real property in the district, if more than 50 persons own real property in the district as determined by the most recent certified tax appraisal roll for Galveston County. Sec. 3841.154. METHOD OF NOTICE FOR HEARING. The district may mail the notice required by Section 375.115(c), Local Government Code, by certified United States mail or an equivalent service that can provide a record of mailing or other delivery. Sec. 3841.155. 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 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. 3841.156. AD VALOREM TAX. (a) If authorized at an election held in accordance with Section 3841.160, the district may impose an annual ad valorem tax on taxable property in the district 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. Sec. 3841.157. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND ASSESSMENTS. The district may not impose an impact fee or assessment on the property, including the equipment, rights-of-way, 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; (3) a telecommunications provider as defined by Section 51.002, Utilities Code; or (4) a person who provides to the public cable television or advanced telecommunications services. Sec. 3841.158. BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds or other obligations, by competitive bid or negotiated sale, payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, grants, or other money of the district, or any combination of those sources of money, to pay for any authorized purpose of the district. (b) The district may issue a bond or other obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or other type of obligation. Sec. 3841.159. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued: (1) the board shall impose 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; and (2) the district annually shall impose the continuing direct ad valorem tax on all taxable property in the district in an amount sufficient to: (A) pay the interest on the bonds or other obligations as the interest becomes due; (B) create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date; and (C) pay the expenses of imposing the taxes. Sec. 3841.160. TAX AND BOND ELECTIONS. (a) The district shall hold an election in the manner provided by Subchapter L, Chapter 375, Local Government Code, to obtain voter approval before the district imposes an ad valorem tax or issues bonds payable from ad valorem taxes. (b) Section 375.243, Local Government Code, does not apply to the district. Sec. 3841.161. CITIES NOT REQUIRED TO PAY DISTRICT OBLIGATIONS. Except as provided by Section 375.263, Local Government Code, the City of League City is not required to pay a bond, note, or other obligation of the district. Sec. 3841.162. COMPETITIVE BIDDING. Section 375.221, Local Government Code, applies to the district only for a contract that has a value greater than $25,000. Sec. 3841.163. TAX AND ASSESSMENT ABATEMENTS. The district may grant in the manner authorized by Chapter 312, Tax Code, an abatement for a tax or assessment owed to the district.
[Sections 3841.164-3841.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3841.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT. (a) The board may dissolve the district regardless of whether the district has debt. Section 375.264, Local Government Code, does not apply to the district. (b) 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. BOUNDARIES. As of the effective date of this Act, the Galveston County Management District No. 1 includes all territory contained in the following described area: All that certain 98.86 acre tract of land located in the STEPHEN F. AUSTIN SURVEY, ABSTRACT 3, Galveston County, Texas, being the remainder of a 76.3820 acre tract called Tract A (a portion of which is out of Lot 11, Block B, CLEAR CREEK SUBDIVISION, a subdivision in Galveston County, according to the map or plat recorded in Volume 119, Page 67), a 0.515 acre tract called Tract B (out of said Lot 11) and a 3.00 acre tract called Tract C all described in a deed recorded under Film Code No. 006-07-1921, a 44.2763 acre tract described in a deed recorded under Film Code No. 017-24-1293, and a 2.36 acre tract out of BIG LEAGUE DREAMS, recorded in Plat No. 2005A, Map No. 72 all deeds and maps recorded in the Office of the County Clerk of Galveston County and being more particularly described by metes and bounds as follows: BEGINNING at a 2 inch iron pipe found marking the Southeast corner of said Lot 11 of CLEAR CREEK SUBDIVISION; THENCE N 00°53'20" W, along the East line of said Lot 11 a distance of 565.90 feet to a point for corner, from which a fence corner bears S 72°22'01" W, 2.63 feet; THENCE S 89°07'15" W, a distance of 746.38 feet (called 747.94 feet) to a point for corner on the East line of Calder Road (50 foot right-of-way), from which a 1/2 inch iron rod bears S 17°07'25" W, 0.86 feet; THENCE N 00°53'20" W, along the East line of Calder Road a distance of 30.00 feet to a point for corner, from which a 60D nail bears S 56°56'32" E, 1.41 feet; THENCE N 89°07'15" E, a distance of 746.38 feet (called 748.95 feet) p to a point for corner on the East line of said Lot 11, from which a 1/2 inch iron rod bears S 53°59'49" E, 0.81 feet; THENCE N 00°53'20" W, along the East line of said Lot 11 a distance of 60.00 feet to a point for corner, from which a 60D nail bears S 47°39'50" E, 1.64 feet; THENCE S 89°07'15" W, a distance of 746.38 feet (called 747.79 feet) to a point for corner on the East line of said Calder Road; THENCE N 00°53'20" W, along the East line of said Calder Road a distance of 192.11 feet to a point for corner, from which a 1/2 inch iron rod bears S 62°02'39" W, 1.60 feet; THENCE N 89°07'15" E, a distance of 746.38 feet (called 748.10 feet) to a 1/2 inch iron rod with cap stamped "GeoSurv" found for corner; THENCE N 00°53'20" W, along the East line of said Lot 11 a distance of 282.36 feet to a point for corner, being the Northeast corner of Lot 11, the same being the Southeast corner of said Lot 10, from which a 3/4 inch iron pipe bears S 43°48'04" W, 1.61 feet; THENCE S 89°06'40" W, along the common line of Lots 10 and 11, the same being the South line of Big League Parkway (70 foot right-of-way) as shown on said plat of BIG LEAGUE DREAMS a distance of 746.38 feet to an iron rod with cap stamped "GeoSurv" found for corner on the East line of said Calder Road; THENCE N 00°53'20" W, along the East line of Calder Road, the same being the West line of Lot 10 a distance of 70.00 feet to a point for corner; THENCE N 89°06'40" E, along the North line of said Big League Parkway, the same being the South line of Reserve 'A' of said BIG LEAGUE DREAMS a distance of 1236.18 feet to the Point of Curve of a curve to the left having a central angle of 11°28'42" and a radius of 1065.00 feet; THENCE continuing along the North line of Big League Parkway and the South line of said Reserve 'A', curving to the left, an arc distance of 213.36 feet (chord bears N 83°22'19" E, 213.00 feet) to an iron rod with cap stamped "GeoSurv" found for corner; THENCE N 00°53'20" W, along the East line of said Reserve 'A' a distance of 1194.49 feet to an iron rod with cap stamped "GeoSurv" found for corner; THENCE N 88°26'53" E, a distance of 706.40 feet to an iron rod with cap stamped "GeoSurv" found for corner on the Westerly line of Interstate Highway 45 (300 foot right-of-way); THENCE S 27°32'00" E, along the Westerly line of Interstate Highway 45 a distance of 1418.63 feet to an iron rod with cap stamped "GeoSurv" found for the Point of Curve of a curve to the left having a central angle of 07°42'21" and a radius of 5877.65 feet; THENCE continuing along the Westerly line of Interstate Highway 45 curving to the left an arc distance of 790.49 feet (chord bears S 31°17'56" E, 789.89 feet) to an iron rod with cap stamped "GeoSurv" set for Point of Tangent; THENCE S 35°09'41" E, continuing along the Westerly line of Interstate Highway 45 a distance of 483.31 feet to an angle point, from which a 1 inch iron pipe bears S 87°42'43" E, 0.61 feet; THENCE S 00°32'16" W, continuing along the Westerly line of Interstate Highway 45 a distance of 77.21 feet to a point for corner, from which a 1 inch iron pipe bears N 89°08'30" E, 1.20 feet; THENCE S 89°08'30" W, a distance of 2714.35 feet to the POINT OF BEGINNING and containing 98.86 acres of land. SECTION 3. LEGISLATIVE FINDINGS. The legislature finds that: (1) proper and 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 by the constitution and laws of this state, including the governor, who has submitted the notice and Act to the Texas Commission on Environmental Quality; (2) 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; (3) 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; and (4) 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. EFFECTIVE DATE. 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, 2005.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 1805 passed the Senate on May 10, 2005, by the following vote: Yeas 31, Nays 0; and that the Senate concurred in House amendment on May 24, 2005, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1805 passed the House, with amendment, on May 20, 2005, by the following vote: Yeas 139, Nays 0, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor