CHAPTER 321. PARKS BOARD AND PARK BONDS: ISLAND PARKS OF COASTAL COUNTIES
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
SUBTITLE B. COUNTY PARKS AND OTHER RECREATIONAL AND CULTURAL
RESOURCES
CHAPTER 321. PARKS BOARD AND PARK BONDS: ISLAND PARKS OF COASTAL
COUNTIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 321.001. ELIGIBLE COUNTIES. (a) A county that borders on
the Gulf of Mexico and that has within its boundaries one or more
islands or parts of islands suitable for park purposes may act
under this chapter for the purpose of improving, equipping,
maintaining, financing, and operating one or more parks on those
islands.
(b) The suitability of an island or part of an island for park
purposes is conclusively established when the commissioners court
of the county by order makes a finding that the island or part of
an island is suitable for park purposes.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.002. DEFINITION. In this chapter, "board" means the
board of park commissioners.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.003. CREATION OF PARKS BOARD. The commissioners court
by order may create a board to be known as the Board of Park
Commissioners.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.004. EXERCISE OF POWERS BY COMMISSIONERS COURT. (a)
If the commissioners court has not attempted to create a board,
or if the creation of a board is declared by a court to be
invalid, the commissioners court may exercise the powers and
perform the duties of the board under this chapter. The
commissioners court may ratify the actions taken by a board
before the declaration of the board's invalidity.
(b) This section does not authorize the commissioners court to
limit or restrict the board from exercising the powers conferred
on the board by law.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER B. BOARD OF PARK COMMISSIONERS
Sec. 321.021. COMPOSITION; TERM; QUALIFICATIONS. (a) The board
must be composed of seven commissioners appointed by the county
judge with the approval of the commissioners court.
(b) A commissioner serves for a term of two years from the date
of appointment.
(c) A park commissioner may not be an officer or employee of the
county or of a municipality in the county.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.022. VACANCY. A vacancy on the board shall be filled
by appointment of the county judge for the unexpired term.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.023. OATH; BOND. (a) Within 15 days after the date a
park commissioner is appointed, the commissioner must qualify by
taking the official oath and by filing a good and sufficient bond
with the county clerk.
(b) The bond must be:
(1) payable to the order of the county judge;
(2) approved by the commissioners court;
(3) in an amount prescribed by the commissioners court of $5,000
or more; and
(4) conditioned that the commissioner will faithfully perform
the duties of park commissioner, including the proper handling of
money that comes into the hands of the commissioner in the
commissioner's capacity as park commissioner.
(c) The board shall pay the cost of the bond.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.024. CERTIFICATE OF APPOINTMENT. A certificate of
appointment executed by the county judge and attested by the
county clerk shall be filed with the county clerk. The
certificate is conclusive evidence of the proper appointment of
the commissioner.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.025. ORGANIZATION; MEETINGS. (a) The board shall
elect from its membership a chairman, vice-chairman, secretary,
and treasurer, except that the first chairman shall be designated
by the county judge at the time of appointment of the first
board. The member designated as the first chairman serves in that
capacity until the expiration of the term to which the member was
appointed or until the member vacates office during that term.
(b) The offices of secretary and treasurer may be held by the
same person. If either the secretary or treasurer is absent or
unavailable, the other may act for and perform the duties of the
absent or unavailable officer.
(c) The board shall hold regular meetings at times to be fixed
by the board and may hold special meetings as necessary.
(d) The board may act on the majority vote of a quorum.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.026. EXPENSES. A park commissioner's approved
compensation and expenses shall be paid in due time by the
board's check or warrant.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.027. CONFLICT OF INTEREST. (a) A park commissioner or
employee of the board may not acquire a direct or indirect
pecuniary interest in any improvements, concessions, equipment,
or business located in a park administered by the board.
(b) A park commissioner or employee of the board may not have a
direct or indirect interest in any contract or proposed contract
for construction, materials, or services in connection with or
related to a park administered by the board.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.028. SEAL. The board shall adopt a seal, and the seal
shall be placed on each lease, deed, or other instrument usually
executed under seal and on other instruments as required by the
board.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 321.041. PERSONNEL. (a) The board may employ permanent or
temporary personnel, including secretaries, stenographers,
bookkeepers, accountants, technical experts, and other agents.
(b) The board shall determine the qualifications, duties, and
compensation of employees.
(c) The board may employ a manager for one or more parks and
give the manager full authority for the management and operation
of the parks subject only to the direction and orders of the
board.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.042. DEPOSITORIES AND DISBURSEMENTS. (a) Money
belonging to or under control of the board shall be deposited and
secured in substantially the manner prescribed by law for county
funds.
(b) The board shall select one or more depositories.
(c) A warrant or check for the withdrawal of money must be
signed by an officer of the board and one other commissioner or
by two bonded employees of the board. The board by resolution
entered in its minutes shall designate any employees authorized
to sign a check or warrant.
(d) The board may disburse funds under its control for any
lawful purpose for the benefit of a park under its control.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.043. CONTRACTS. (a) The board may without
advertisement enter into a contract, including a lease or other
agreement, with any person as the board considers necessary or
convenient to carry out the purposes and powers granted by this
chapter, including a contract connected with, incident to, or
affecting the acquisition, financing, construction, equipment,
maintenance, or operation of a facility located or to be located
in or pertaining to a park under its control.
(b) To be effective, a contract must be:
(1) approved by resolution of the board;
(2) executed by the chairman or vice-chairman; and
(3) attested by the secretary or treasurer.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.044. LEASES AND OPERATING AGREEMENTS. (a) Concurrent
with or at any time before the authorization for issuance of
bonds secured by a pledge of the revenues of a designated
facility of a park, the board may enter into a contract,
including a lease, with any person for the operation of the
facility. The contract must specify the consideration or specify
the method of determining the consideration. The contract may be
for a period determined by the board.
(b) The revenues from the contract may be pledged in the
resolution or indenture as security or additional security for
the revenue bonds. If the contract is concurrent with the
authorization for issuance of the bonds, the revenues constitute
the sole or substantially all the security for the bonds.
(c) The contract must require that the rentals, tolls, and
charges to be enforced by the lessee for the use or services
provided by the facility be sufficient to yield at least in the
aggregate money necessary to pay the reasonable operation and
maintenance expenses to assure proper operation and maintenance
of the facility, plus an amount that will assure income to the
board to permit and assure payments into the funds and accounts
in the manner, at the times, and in the amounts specified in the
resolution.
(d) The contract may provide that the rentals, tolls, and
charges may be sufficient to yield a reasonable profit to the
other party to the contract, but to be realized only after
payment in full of the obligation to the board.
(e) The contract may provide for payment of the annual
consideration or rental in approximately equal monthly
installments, and that failure to pay any required payment when
due may be declared to be a breach of contract entitling the
board under rules prescribed in the contract to declare the
contract forfeited and to take over the operation and maintenance
of the facility. That remedy is cumulative of all others.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.045. RULES. The board may adopt reasonable rules
applicable to tenants, concessioners, residents, and users of
park facilities regulating hunting, fishing, boating, camping,
and all other recreational and business privileges in the parks
under the control of the board.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.046. GRANTS. The board may accept grants and
gratuities in any form from any source approved by the board,
including the government of the United States, this state, a
public or private corporation, or any other person, for the
purpose of promoting, establishing, or accomplishing the
objectives, purposes, and powers provided by this chapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.047. FINANCIAL STATEMENT; BUDGET. (a) On or before
July 1 of each year, the board shall prepare and file with the
county judge a complete financial statement showing the financial
status of the board and the board's properties, funds, and
indebtedness.
(b) The financial statement must be in two parts or prepared to
show separately all information concerning:
(1) revenue bonds, the pledged income from facilities, and
expenditures of that revenue; and
(2) money appropriated to the board by the commissioners court
and realized from taxation and money realized from the sale of
tax-supported bonds previously issued by the commissioners court.
(c) At the same time the financial statement is filed, the board
shall file with the county judge a proposed budget of its needs
for the next calendar year. To the extent that the board is able
to finance its operations and to maintain its property from the
revenues of facilities the income of which is pledged to the
revenue bonds, no approval or authorization of the commissioners
court is necessary. However, the budget may involve only
anticipated supplemental expenditures.
(d) The county judge shall incorporate the requested budget in
the county budget to be prepared each year. As part of the
county's tentative budget, the items certified by the board are
subject to the procedure for county budget prescribed by Chapter
111.
(e) The board shall operate the parks under its control the
revenues of which are pledged to the payment of bonds in a manner
that will produce gross revenues sufficient to pay the operation
and maintenance expenses of the facilities without seeking from
the commissioners court the appropriation of additional money for
those expenses.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.048. SUITS; LEGAL SERVICES. (a) The board may sue and
be sued in its own name.
(b) The board may request from the county attorney the legal
services it requires. In addition or in the alternative, the
board may employ and compensate its own legal staff.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.049. RECORDS. The board shall keep a complete account
of each board meeting and proceeding and shall maintain the
records of the board in a secure manner. Those records are the
property of the board and are subject to inspection by the
commissioners court at all reasonable times during office hours
on business days. The preservation, microfilming, destruction, or
other disposition of the records of the board is subject to the
requirements of Subtitle C, Title 6, Local Government Code, and
rules adopted under that subtitle.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 1989, 71st Leg., ch. 1248, Sec. 62, eff. Sept. 1,
1989.
SUBCHAPTER D. REVENUE BONDS
Sec. 321.071. ISSUANCE; PURPOSE. (a) For the purpose of
providing funds for the acquisition of permanent improvements to
the island parks, or for the acquisition or construction of
facilities to be used in or connected with or incident to the
parks, the county may issue revenue bonds from time to time.
(b) The bonds are fully negotiable instruments under Chapter 3,
Business & Commerce Code, and other laws of this state.
(c) Included among the permanent improvements and facilities
that may be acquired through the issuance of bonds are bath
houses; bathing beaches; swimming pools; athletic fields; golf
courses; stadiums; coliseums; auditoriums; pavilions; buildings
and grounds for assembly, entertainment, health, and recreation;
restaurants and refreshment places; yacht basins; and landing
strips and airports.
(d) The bonds must be authorized by order of the commissioners
court passed on its own motion. The order of the commissioners
court may make covenants on behalf of the county as the court
considers necessary and advisable, and the court shall perform or
cause to be performed any covenants so made.
(e) The bonds must be issued in the name of the county, signed
by the county judge, attested by the county clerk, and impressed
with the seal of the commissioners court.
(f) The bonds must mature serially or otherwise in not more than
40 years and may be sold at a price and under terms determined by
the county to be the most advantageous reasonably obtainable. The
net effective interest rate may not exceed the maximum rate
provided by Chapter 1204, Government Code.
(g) The order authorizing the issuance of the bonds shall
prescribe the details as to the bonds. It may contain provisions
for the calling of the bonds for redemption before their
respective maturity dates at particular prices and times. Except
for rights of redemption expressly reserved in the order and the
bonds, the bonds are not subject to redemption before their
scheduled maturity dates.
(h) The bonds may be made payable at times and places inside or
outside this state as prescribed in the order.
(i) The bonds may be made registrable as to principal or both
principal and interest.
(j) The bonds may be issued in one or more series.
(k) An election is not required for issuance of the bonds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.319, eff. Sept.
1, 2001.
Sec. 321.072. PLEDGE OF REVENUES. (a) Revenue bonds may be
secured by a pledge of all or part of the net revenues from the
operation of one or more parks under control of the board, from
the facilities of or incident to the parks, or from the parks and
the facilities.
(b) The net revenues of one or more contracts, operating
contracts, leases, or agreements may be pledged as the sole
security or as additional security for the support of the bonds.
(c) Any revenue other than that described by Subsection (a) or
(b) may be pledged as the principal or as additional security for
the bonds, as specified in the order.
(d) The order authorizing issuance of bonds may reserve the
right, under conditions specified in the order, to issue
additional bonds that will be on a parity with or subordinate to
the bonds then being issued.
(e) While any bonds are outstanding, no additional bonds of
equal dignity may be issued against the pledged revenues except
to the extent and in the manner expressly permitted in the order.
(f) In this chapter, "net revenues" means the gross revenues
from the operation of the park or parks and the facilities,
leases, agreements, or contracts incident to the park or parks,
the revenues of which have been pledged, after deduction of the
necessary expenses as provided by Section 321.075.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.073. PROCEEDS. (a) The proceeds of the bonds shall be
used under the restrictions provided in the order. The holders of
the bonds and any trustee provided for in respect to the bonds
have a lien on the proceeds until so applied, but neither the
depository of those funds nor the trustee is obligated to see to
the proper application of the funds except as expressly provided
in the order or the indenture securing the bonds.
(b) From the bond proceeds there may be set aside:
(1) an amount for payment of interest on the bonds estimated to
accrue during the construction period and any additional period
prescribed in the order; and
(2) an amount for the interest and sinking fund or another
reserve fund provided for in the order.
(c) Proceeds remaining after the amounts are set aside under
Subsection (b) shall be used for the payment of all expenses
necessarily incurred in the issuance and sale of the bonds and
then for the purposes specified in the bond order and in this
chapter.
(d) Any surplus remaining after accomplishment of the bond
purposes shall be used for retiring the bonds to the extent that
they can be purchased at prevailing market prices, with any
remainder being deposited to the credit of the fund established
in the order for debt service.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.074. APPROVAL AND REGISTRATION. (a) Before the bonds
are delivered to the purchaser, the bonds and the records
pertaining to the bonds must be submitted to the attorney general
for examination and approval. The attorney general shall approve
the bonds if issued in accordance with this subchapter.
(b) Bonds approved by the attorney general and registered with
the comptroller of public accounts are incontestable.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.075. FEES AND REVENUE. (a) In this section, "fee"
includes any fee, charge, or toll.
(b) The expense of operation and maintenance of facilities the
revenues of which are pledged to the payment of bonds are a first
lien on and charge against the income of the facilities. While
any of the bonds or interest remains outstanding, the board shall
charge or require the payment of fees for the use of the
facilities. The board shall determine the rate of fees charged by
it for the use, operation, or lease of the facilities. Fees must
be equal and uniform within the classes defined by the board and
must be in amounts that will yield revenues at least sufficient
to pay the expenses of operation and maintenance and to make the
payment prescribed in the order for debt service. "Debt service,"
as defined in the order, may include the payment of principal and
interest as each matures, the establishment and maintenance of
funds for extensions and improvements, an operating reserve, and
an interest and sinking fund reserve.
(c) The board shall fix the fees in amounts that are sufficient
to comply with the covenants in the order and with this chapter.
(d) If part of the security for the bonds consists of money to
be received by the board as consideration for facilities
belonging to the board but operated by a person other than the
board under a lease or operating contract, the board shall fix
the fees to be charged by the person for use of and services
rendered by the facilities. The fees must be in amounts at least
sufficient to assure receipt by the board of money that the board
is committed to pay from that source for debt service under the
terms of the order.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.076. REFUNDING BONDS. (a) Fully negotiable bonds may
be issued by the commissioners court for the purpose of refunding
original bonds issued under this subchapter.
(b) The refunding bonds must be authorized and may be secured in
the manner provided by this subchapter for original bonds.
(c) Refunding bonds may be sold and the proceeds used to retire
the original bonds, or may be used in exchange for the original
bonds, as provided in the order authorizing their issuance.
(d) An election is not required for issuance of the refunding
bonds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.077. BONDS NOT STATE OR COUNTY DEBT. (a) The bonds
are not a debt of the county or this state within the meaning of
any constitutional or statutory provision, but are payable solely
from the revenues pledged to their payment as provided by this
subchapter.
(b) Each bond must contain on its face substantially the
following provision: "The holder hereof shall never have the
right to demand payment of this obligation out of any funds
raised or to be raised by taxation."
(c) The bonds may not be considered in determining the power of
the county to incur obligations payable from taxation.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 321.078. MISCELLANEOUS PROVISIONS. (a) In this section,
"fee" includes a fee, charge, or toll.
(b) This section applies to revenue bonds issued under this
subchapter.
(c) The bond order may require that the bonds contain a recital
that they are issued pursuant to and in strict conformity with
this subchapter. If made, that recital is conclusive evidence of
the validity of the bonds and the regularity of their issuance.
(d) Each bond is exempt from taxation by this state or by a
municipal corporation, county, or other political subdivision or
taxing district of the state.
(e) If provided for in the order, an indenture securing the
bonds may be executed between the county commissioners court and
a corporate trustee. The order may also provide for execution of
the indenture by a corporate or individual cotrustee. A corporate
trustee or corporate cotrustee must be a trust company or a bank
located inside or outside this state that has the powers of a
trust company.
(f) Either the order or an indenture may contain provisions for
protecting or enforcing the rights or remedies of the bondholders
as considered by the commissioners court to be reasonable,
proper, and not in violation of law. The provisions may include
covenants setting forth the duties of the board in reference to
the maintenance, operation or repair, and insurance of the
facility the revenues of which are pledged, including within the
discretion of the commissioners court insurance against loss of
use and occupancy. The provisions may also include covenants for
the custody, safeguarding, and application of money received from
the sale of the bonds and from the revenues received from the
operation of the project.
(g) Any bank or trust company in this state may act as
depository for the proceeds of the bonds, the revenues derived
for operation of the facilities the revenues of which are
pledged, or for the special funds created to assure payment of
the principal of and interest on the bonds, including reserve
funds and accounts. The depository may furnish indemnity bonds or
pledge securities as required by the board.
(h) The commissioners court may select the depository or
depositories without the necessity of seeking competitive bids.
The deposits must be secured in the manner required by law for
the security of county funds. The order or indenture may bind the
commissioners court to the use of direct obligations of the
United States or obligations unconditionally guaranteed by the
United States as security for the deposits.
(i) The bond order or indenture may set forth the rights and
remedies of the bondholders and of the trustee and may restrict
the individual rights of action of the bondholders. The order may
contain other suitable provisions the commissioners court
considers reasonable and proper for the security of the
bondholders, including:
(1) covenants prescribing occurrences that constitute events of
default and the terms and conditions on which any or all of the
bonds become due, or may be declared to be due, before maturity;
and
(2) covenants as to the rights, liabilities, powers, and duties
arising from the breach by the commissioners court of any of its
duties or obligations.
(j) Any bondholder or a trustee for a bondholder may by mandamus
or other proceeding in a court of competent jurisdiction enforce
the bondholder's rights against the commissioners court or its
agents and employees or against any lessee of any facility the
revenues of which are pledged to the bonds. These rights include
the right to require the board to impose, establish, and enforce
fees sufficient and effective to carry out the agreements
contained in the order or indenture, the right to perform all
agreements and covenants in the order and the duties arising from
the order or indenture, and the right in the event of default as
defined in the order or indenture to apply for and obtain the
appointment of a receiver for any of the properties involved. If
a receiver is appointed, the receiver shall enter and take
possession of the facilities the revenues of which have been
pledged. The receiver shall retain possession until the
commissioners court is no longer in default or until relieved by
a court, and shall collect and receive all revenues and fees
arising from the retained property in the same manner as the
commissioners court. The receiver shall dispose of and apply the
money in accordance with the obligations of the commissioners
court under the order or indenture and as the court may direct.
(k) This chapter does not authorize a bondholder to require the
commissioners court to use any funds in the payment of the
principal of or interest on the bonds except the revenues pledged
for that payment.
(l) The order or indenture may contain provisions to the effect
that while the revenues of the park facilities are pledged to the
payment of bonds, no free service may be rendered by any of those
facilities for which fees are to be effective under the order.
(m) The bonds are legally authorized investments for banks,
savings banks, trust companies, savings and loan associations,
insurance companies, fiduciaries, and trustees and for the
sinking funds and other funds of this state or of a municipal
corporation, county, political subdivision, public agency, or
taxing district in this state. The bonds are eligible to secure
the deposit of any public funds of this state and any public
funds of a municipal corporation, county, political subdivision,
public agency, or taxing district in this state, and the bonds
are lawful and sufficient security for those deposits to the
extent of their face value when accompanied by all unmatured
appurtenant coupons.
(n) The order, the indenture, and this chapter constitute an
irrevocable contract between the board and county and the
bondholders.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.