CHAPTER 3856. GALVESTON GRAND BEACH MANAGEMENT DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

Sec. 3856.002. GALVESTON GRAND BEACH MANAGEMENT DISTRICT. The

district is a special district created under Section 59, Article

XVI, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

(c) This chapter and the creation of the district may not be

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

(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 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

Sec. 3856.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

(c) The board by resolution may increase or decrease the 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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

(C) public works; 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.

(c) Nonvoting directors are not counted for the purposes of

establishing a quorum of the board.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

(c) A director who is also an officer or employee of a public

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

For expiration of this section, see Subsection (d).

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

consists of the following voting directors:

Pos. No.

Name of Director

1

Richard G. Anderson

2

Arnold C. Tauch

3

Tofigh Shirazi

4

Jim Carpenter

5

Frank Schaefer

6

Donna Coleman

7

Martha Wallace

8

Juan Pena

9

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.

(c) Section 3856.052 does not apply to this section.

(d) This section expires September 1, 2012.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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 Chapter 505, Local Government

Code, including the power to own, operate, acquire, construct,

lease, improve, and maintain projects described by that chapter;

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.045, eff. September 1, 2009.

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.

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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

the power of eminent domain.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

(c) Section 375.243, Local Government Code, does not apply to

the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

(c) 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.

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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; or

(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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1128, Sec. 1, eff. June 15, 2007.