80(R) HB 4053 - Enrolled version

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	H.B. No. 4053

AN ACT

relating to the creation of the Galveston Grand Beach Management

District; 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 GRAND BEACH MANAGEMENT DISTRICT.

Subtitle C, Title 4, Special District Local Laws Code, is amended by

adding Chapter 3856 to read as follows:

CHAPTER 3856. GALVESTON GRAND BEACH MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3856.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "District" means the Galveston Grand Beach

Management District.

Sec. 3856.002. GALVESTON GRAND BEACH MANAGEMENT DISTRICT.

The district is a special district created under Section 59,

Article XVI, Texas Constitution.

Sec. 3856.003. 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

Galveston, 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 district.

interpreted to relieve the City of Galveston or Galveston 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 the county

or city services provided in the area in the district.

Sec. 3856.004. 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.

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 residential 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. 3856.005. 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) Section 3856.108;

(2) Subchapter J, Chapter 49, Water Code; or

(3) 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. 3856.006. 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 a

municipality under Chapter 311, Tax Code;

(2) a tax abatement reinvestment zone created by a

municipality under Chapter 312, Tax Code; or

(3) an enterprise zone created by a municipality under

Chapter 2303, Government Code.

Sec. 3856.007. APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

Chapter 375, Local Government Code, applies to the district.

Sec. 3856.008. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed in conformity with the

findings and purposes stated in this chapter.

[Sections 3856.009-3856.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3856.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of nine voting directors appointed under

Section 3856.052 and nonvoting directors as provided by Section

3856.053.

(b) Voting directors serve staggered terms of four years,

with four or five directors' terms expiring June 1 of each

odd-numbered year.

number of directors on the board if the board finds that it is in the

best interest of the district. The board may not consist of fewer

than seven or more than 13 directors.

Sec. 3856.052. APPOINTMENT OF DIRECTORS. The board shall

nominate a slate of persons to serve on the succeeding board as

voting directors. The members of the governing body of the City of

Galveston shall appoint as voting directors the slate of persons

nominated by the board.

Sec. 3856.053. NONVOTING DIRECTORS. (a) The following

persons serve as nonvoting directors:

(1) the directors of the following departments of the

City of Galveston or a person designated by that director:

(A) parks and recreation;

(B) planning and zoning; and

(2) the city manager of the City of Galveston or a

person designated by the city manager.

(b) If a department described by Subsection (a) is

consolidated, renamed, or changed, the board may appoint a director

of the consolidated, renamed, or changed department as a nonvoting

director. If a department described by Subsection (a) is abolished,

the board may appoint a representative of another department that

performs duties comparable to those performed by the abolished

entity.

establishing a quorum of the board.

Sec. 3856.054. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.

(a) Except as provided by this section:

(1) a director may participate in all board votes and

decisions; and

(2) Chapter 171, Local Government Code, governs

conflicts of interest for directors.

(b) Section 171.004, Local Government Code, does not apply

to the district. A director who has a substantial interest in a

business or charitable entity that will receive a pecuniary benefit

from a board action shall file a one-time affidavit declaring the

interest. An additional affidavit is not required if the director's

interest changes. After the affidavit is filed with the board

secretary, the director may participate in a discussion or vote on

that action if:

(1) a majority of the directors have a similar

interest in the same entity; or

(2) all other similar business or charitable entities

in the district will receive a similar pecuniary benefit.

entity may not participate in the discussion of or vote on a matter

regarding a contract with that same public entity.

(d) For purposes of this section, a director has a

substantial interest in a charitable entity in the same manner that

a person would have a substantial interest in a business entity

under Section 171.002, Local Government Code.

Sec. 3856.055. INITIAL VOTING DIRECTORS. (a) The initial

board consists of the following voting directors:

Pos. No.

Name of Director

Richard G. Anderson

Arnold C. Tauch

Tofigh Shirazi

Jim Carpenter

Frank Schaefer

Donna Coleman

Martha Wallace

Juan Pena

Chad Murphy

(b) Of the initial voting directors, the terms of directors

appointed for positions 1 through 5 expire June 1, 2009, and the

terms of directors appointed for positions 6 through 9 expire June

1, 2011.

(d) This section expires September 1, 2012.

[Sections 3856.056-3856.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3856.101. ADDITIONAL POWERS OF DISTRICT. The district

may exercise the powers given to:

(1) a corporation created 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, and maintain projects described by that

section;

(2) a housing finance corporation created under

Chapter 394, Local Government Code, to provide housing or

residential development projects in the district;

(3) a road utility district under Chapter 441,

Transportation Code;

(4) a navigation district under Subchapters E and M,

Chapter 60, Water Code; and

(5) a navigation district under Section 61.116, Water

Code.

Sec. 3856.102. 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.

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.

Sec. 3856.103. 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. 3856.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.

To protect the public interest, the district may contract with

Galveston County or the City of Galveston to provide law

enforcement services in the district for a fee.

Sec. 3856.105. 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. 3856.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. (a)

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.

(b) An expenditure of public money for membership in the

organization is considered to further a district purpose and to be

for a public purpose.

Sec. 3856.107. 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. 3856.108. ANNEXATION. In addition to the authority to

annex territory under Subchapter C, Chapter 375, Local Government

Code, the district may annex territory in a reinvestment zone

created by the City of Galveston under Chapter 311, Tax Code, if the

city's governing body consents to the annexation.

Sec. 3856.109. NO EMINENT DOMAIN. The district may not

exercise the power of eminent domain.

[Sections 3856.110-3856.150 reserved for expansion]

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3856.151. 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. 3856.152. 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) The board may include more than one purpose in a single

proposition at an election.

to the district.

Sec. 3856.153. AD VALOREM TAX. (a) If authorized at an

election held in accordance with Section 3856.152, the district may

impose an annual ad valorem tax on taxable property in the district

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. 3856.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)

The board by resolution may impose and collect an assessment for any

purpose authorized by this chapter.

(b) The board may not impose an assessment on a parcel of

real property with a taxable value of less than $50,000 at the time

of the assessment, according to the most recent certified tax

appraisal roll for Galveston County, unless the owner of that

parcel agrees in writing to pay the 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.

(d) 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.

(e) 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. 3856.155. 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) The petition 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;

(2) at least 25 persons who own real property in the

district, if more than 25 persons own real property in the district

according to the most recent certified tax appraisal roll for

Galveston County.

Sec. 3856.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES OR

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; or

(3) a person who provides to the public cable

television or advanced telecommunications services.

Sec. 3856.157. BONDS AND OTHER OBLIGATIONS. (a) The

district may issue bonds or other obligations payable wholly or

partly from 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) In exercising the district's borrowing power, 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. 3856.158. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT

OBLIGATIONS. Except as provided by Section 375.263, Local

Government Code, a municipality is not required to pay a bond, note,

or other obligation of the district.

[Sections 3856.159-3856.200 reserved for expansion]

SUBCHAPTER E. DISSOLUTION

Sec. 3856.201. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH

OUTSTANDING DEBT. (a) The board may vote to dissolve a district

that has debt. If the vote is in favor of dissolution, the district

shall remain in existence solely for the limited purpose of

discharging its debts. The dissolution is effective when all debts

have been discharged.

(b) Section 375.264, Local Government Code, does not apply

to the district.

SECTION 2. BOUNDARIES. As of the effective date of this

Act, the Galveston Grand Beach Management District encompasses

approximately 456 acres and includes all territory contained in the

following described area:

BEGINNING at the intersection of the Northeasterly corner of the

Southerly right-of-way line of East Seawall Blvd. and the Northerly

right-of-way line of Apfell Park Dr.;

THENCE proceeding in a Northeasterly direction along the

Southeasterly right-of-way line of East Seawall Blvd. to a point

representing the Westerly projection of a certain 5.9620 acre shown

in the deed records as the West Part of Reserve C (3-2) Grand Beach;

THENCE in an Easterly direction along said projection to a point at

the intersection of the Westerly right-of-way line of Apffel Park

Dr.;

THENCE in an Northeasterly direction along said right-of-way to the

Northwesterly corner of a certain 33.5829 acre tract shown in the

deed records as Reserve F Grand Beach;

THENCE in an Easterly direction along the Northerly property line

of said tract to the intersection of the Westerly right-of-way line

of Apffel Park Dr.;

THENCE in an Easterly direction along the Northern right-of-way

line of Apffel Park Dr. to a point representing the Easterly

projection of said right-of-way and its intersection with the

Northeasterly projection of the property line of a certain 20 acre

tract shown in the deed records as Reserve G (7-2) Grand Beach;

THENCE in a Southwesterly direction to a point at the Southwesterly

corner of a certain 24.6649 acre tract shown in the deed records as

Part of Reserve I (9-1) Grand Beach;

THENCE in a Northwesterly direction to a point at the intersection

of Southerly right of way line of East Seawall Blvd.;

THENCE in a North Easterly direction along the Southerly

right-of-way line of East Seawall Blvd. to the POINT OF BEGINNING.

PROVIDED; HOWEVER, that such boundaries shall specifically exclude

those properties currently known as the Islander East Condominiums

and the Galvestonian unless such property is later annexed pursuant

to the provisions of this Act.

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, 2007.

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 4053 was passed by the House on May

11, 2007, by the following vote: Yeas 144, Nays 0, 2 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 4053 on May 25, 2007, by the following vote: Yeas 140, Nays 0,

1 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 4053 was passed by the Senate, with

amendments, on May 23, 2007, by the following vote: Yeas 30, Nays

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor