CHAPTER 3855. LEAGUE CITY IMPROVEMENT DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3855. LEAGUE CITY IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3855.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the city of League City.
(3) "Director" means a board member.
(4) "District" means the League City Improvement District.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.002. NATURE OF DISTRICT. The League City Improvement
District is a special district created under Section 59, Article
XVI, Texas Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.003. 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,
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.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or Galveston County from
providing the level of services provided, as of the effective
date of the Act creating this chapter, to the area in the
district. The district is created to supplement and not to
supplant the city or county services provided in the area in the
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.004. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.005. INITIAL DISTRICT TERRITORY. (a) The district is
initially composed of the territory described by Section 2 of the
Act creating this chapter.
(b) The boundaries and field notes contained in Section 2 of the
Act creating 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 bond for the purposes 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 sales and use
tax; or
(4) legality or operation.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a)
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under Chapter 311,
Tax Code;
(2) a tax abatement reinvestment zone created under Chapter 312,
Tax Code;
(3) an enterprise zone created under Chapter 2303, Government
Code; or
(4) another district with the same or similar powers, duties,
and authority.
(b) The district may enter into agreements with other districts
described by Subsection (a)(4) to coordinate services and
improvements and to allocate assessments.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
LAW. Except as otherwise provided by this chapter, Chapter 375,
Local Government Code, applies to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3855.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of seven voting directors who serve staggered
terms of four years, with three or four 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 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.052. APPOINTMENT OF DIRECTORS. (a) The mayor and
members of the governing body of the city shall appoint voting
directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor in case of a tie, vote to appoint that
person.
(b) Section 375.063(3), Local Government Code, does not apply to
the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
For expiration of this section, see Subsection (d).
Sec. 3855.053. INITIAL VOTING DIRECTORS. (a) The initial board
consists of the following voting directors:
Pos. No.
Name of Director
1
Robert Mark
2
Mike Duckett
3
Dee Scott
4
Robert Kirchner
5
Marilyn Wier
6
Thomas Linklater
7
Dale Hardy
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 3 expire June 1, 2011, and the
terms of directors appointed for positions 4 through 7 expire
June 1, 2013.
(c) Section 3855.052 does not apply to this section.
(d) This section expires September 1, 2014.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.054. NONVOTING DIRECTORS. The governing body of the
city or the board may appoint nonvoting directors.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.055. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3855.101. ADDITIONAL POWERS. 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 described by those chapters.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.102. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.103. 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.
(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, 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.104. 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, for the
provision of law enforcement services in the district for a fee.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.105. APPROVAL BY CITY. (a) Except as provided by
Subsection (c), the district must obtain the approval of the city
for:
(1) the issuance of bonds;
(2) calling an election to authorize a sales and use tax; and
(3) 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 governing body of the city must provide the approval
required by Subsection (a)(1) or (2) by adoption of a resolution
or ordinance. The approval required by Subsection (a)(3) may be
provided by an administrative process that does not involve the
city's governing body.
(c) If the district obtains the approval of the city's governing
body of a capital improvements budget for a period not to exceed
10 years, the district may finance the capital improvements and
issue bonds specified in the budget without further approval from
the city.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.106. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.107. 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) The district has all of the powers of a municipality under
Chapter 380, Local Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.108. NO EMINENT DOMAIN. The district may not exercise
the power of eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.109. ANNEXATION OR EXCLUSION OF LAND. (a) The
district may annex land as provided by Subchapter J, Chapter 49,
Water Code.
(b) In addition to the authority to annex provided by Subsection
(a), the district by board resolution may annex territory if:
(1) the city's governing body by ordinance or resolution
consents to the annexation;
(2) the board holds a hearing to consider the annexation; and
(3) the board determines that the annexation is feasible,
practicable, and to the district's advantage.
(c) The district may not annex under Subsection (b)
single-family residential property described by Section 375.161,
Local Government Code.
(d) For an annexation authorized by Subsection (b) or Section
49.302, Water Code, an election is not required.
(e) 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
Sec. 3855.151. PUBLIC TRANSIT SYSTEM. The district may acquire,
lease as lessor or lessee, construct, develop, own, operate, and
maintain a public transit system to serve the area within the
boundaries of the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.152. PARKING FACILITIES AUTHORIZED; OPERATION BY
PRIVATE ENTITY. (a) The district may acquire, lease as lessor
or lessee, construct, develop, own, operate, and maintain parking
facilities or a system of parking facilities, including:
(1) lots, garages, parking terminals, or other structures or
accommodations for parking motor vehicles off the streets; and
(2) equipment, entrances, exits, fencing, and other accessories
necessary for safety and convenience in parking vehicles.
(b) A parking facility of the district may be leased to, or
operated for the district by, an entity other than the district.
(c) The district's parking facilities are a program authorized
by the legislature under Section 52-a, Article III, Texas
Constitution.
(d) The district's parking facilities serve the public purposes
of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term
of years.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.153. RULES. The district may adopt rules covering its
public transit system or its public parking system.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.154. FINANCING OF PUBLIC TRANSIT SYSTEM OR PARKING
FACILITIES. (a) The district may use any of its resources,
including revenue, assessments, sales and use taxes, or grant or
contract proceeds, to pay the cost of acquiring or operating a
public transit system or public parking facilities.
(b) The district may:
(1) set, charge, impose, and collect fees, charges, or tolls for
the use of the public transit system or the public parking
facilities; and
(2) issue bonds or notes to finance the cost of these
facilities.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 3855.201. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.202. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.203. 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 the
owners of a majority of the assessed value of real property
subject to assessment in the area to be assessed according to the
most recent certified tax appraisal roll for Galveston County.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.204. METHOD OF NOTICE FOR HEARING. The district may
mail the notice required by Section 375.115(c), Local Government
Code, by certified or first class United States mail. The board
shall determine the method of notice.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.205. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.206. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.207. NO AD VALOREM TAXES. The district may not impose
ad valorem taxes.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.208. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.
(a) The district may borrow money on terms and conditions as
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.
(b) The district may issue by competitive bid or negotiated sale
bonds, notes, or other obligations payable wholly or partly from
sales and use taxes, assessments, impact fees, revenue, contract
payments, grants, or other district money, or any combination of
those sources of money, to pay for any authorized district
purpose.
(c) The 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.209. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.210. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.211. ASSESSMENT ABATEMENTS. The district may grant in
the manner that Chapter 312, Tax Code, authorizes for taxes an
abatement for an assessment owed to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.212. ASSESSMENTS IN OTHER DISTRICTS. The board must
obtain approval of the governing body of another district created
under Section 59, Article XVI, Texas Constitution, before
imposing an assessment on property in the boundaries of that
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.213. AUTHORITY TO ESTABLISH DEFINED AREAS OR
DESIGNATED PROPERTY. The district may define areas or designate
certain property of the district to pay for improvements,
facilities, or services that primarily benefit that area or
property and do not generally and directly benefit the district
as a whole.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
SUBCHAPTER F. SALES AND USE TAX
Sec. 3855.251. MEANINGS OF WORDS AND PHRASES. Words and phrases
used in this subchapter that are defined by Chapters 151 and 321,
Tax Code, have the meanings assigned by Chapters 151 and 321, Tax
Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.252. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS.
(a) Except as otherwise provided by this subchapter, Subtitles A
and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to
taxes imposed under this subchapter and to the administration and
enforcement of those taxes in the same manner that those laws
apply to state taxes.
(b) Chapter 321, Tax Code, relating to municipal sales and use
taxes, applies to the application, collection, change, and
administration of a sales and use tax imposed under this
subchapter to the extent consistent with this chapter, as if
references in Chapter 321, Tax Code, to a municipality referred
to the district and references to a governing body referred to
the board.
(c) Sections 321.106, 321.401, 321.402, 321.403, 321.404,
321.406, 321.409, 321.506, 321.507, and 321.508, Tax Code, do not
apply to a tax imposed under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.253. AUTHORIZATION; ELECTION. (a) The district may
adopt a sales and use tax to serve the purposes of the district
after an election in which a majority of the voters of the city
voting in the election authorize the adoption of the tax.
(b) Notwithstanding any other law, the board by order may call
an election to authorize a sales and use tax. The election may
be held with any other district or city election.
(c) The district shall provide notice of the election and shall
hold the election in the manner prescribed by Subchapter L,
Chapter 375, Local Government Code, except that all qualified
voters of the city may vote in the election to authorize a sales
and use tax.
(d) Section 375.243, Local Government Code, does not apply to
the district.
(e) The ballots shall be printed to provide for voting for or
against the proposition: "Authorization of a sales and use tax
in the League City Improvement District at a rate not to exceed
_____ percent."
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.254. ABOLISHING SALES AND USE TAX. (a) Except as
provided by Subsection (b), the board may abolish the sales and
use tax without an election.
(b) The board may not abolish the sales and use tax if the
district has outstanding debt secured by the tax.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.
Sec. 3855.255. SALES AND USE TAX RATE. (a) On adoption of the
tax authorized by this subchapter, there is imposed a tax on the
receipts from the sale at retail of taxable items within the
district, and an excise tax on the use, storage, or other
consumption within the district of taxable items purchased,
leased, or rented from a retailer within the district during the
period that the tax is in effect.
(b) The board shall determine the rate of the tax, which may be
in one-eighth of one percent increments not to exceed the maximum
rate authorized by the district voters at the election. The
board may lower the tax rate to the extent it does not impair any
outstanding debt or obligations payable from the tax.
(c) The rate of the excise tax is the same as the rate of the
sales tax portion of the tax and is applied to the sales price of
the taxable item.
Added by Acts 2009, 81st Leg., R.S., Ch.
1092, Sec. 1, eff. June 19, 2009.