By: Taylor  S.B. No. 1160          (In the Senate - Filed March 8, 2021; March 18, 2021, read   first time and referred to Committee on Water, Agriculture & Rural   Affairs; March 30, 2021, reported adversely, with favorable   Committee Substitute by the following vote:  Yeas 9, Nays 0;   March 30, 2021, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1160 By:  Taylor     A BILL TO BE ENTITLED   AN ACT     relating to the creation of the Gulf Coast Protection District;   providing authority to issue bonds; providing authority to impose   fees; providing authority to impose a tax; granting the power of   eminent domain.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle K, Title 6, Special District Local Laws   Code, is amended by adding Chapter 9502 to read as follows:   CHAPTER 9502. GULF COAST PROTECTION DISTRICT   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 9502.0101.  DEFINITIONS. In this chapter:                (1)  "Board" means the district's board of directors.                (2)  "Director" means a board member.                (3)  "District" means the Gulf Coast Protection   District.                (4)  "Ecosystem restoration report" means the Sabine   Pass to Galveston Bay, Texas Coastal Storm Risk Management and   Ecosystem Restoration Final Integrated Feasibility   Report—Environmental Impact Statement issued by the Galveston   District, Southwestern Division, of the United States Army Corps of   Engineers in May 2017.                (5)  "Protection and restoration study" means the   Coastal Texas Protection and Restoration Feasibility Study Final   Integrated Feasibility Report and Environmental Impact Statement   to be issued by the Galveston District, Southwestern Division, of   the United States Army Corps of Engineers, the draft version of   which was issued in October 2020.          Sec. 9502.0102.  NATURE OF DISTRICT. The district is a   special district created under Section 59, Article XVI, Texas   Constitution.          Sec. 9502.0103.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.   (a) The creation of the district is essential to accomplish the   purposes of Section 59, Article XVI, Texas Constitution, and other   public purposes stated in this chapter.          (b)  The creation of the district is necessary to establish   an instrumentality for protecting the coast in Chambers, Galveston,   Harris, Jefferson, and Orange Counties in the manner provided by   this chapter.          (c)  The district is created to serve a public use and   benefit.          (d)  All land and other property included in the boundaries   of the district will benefit from the works and projects   accomplished by the district.          Sec. 9502.0104.  DISTRICT TERRITORY. (a) The district is   composed of the territory in Chambers, Galveston, Harris,   Jefferson, and Orange Counties and territory annexed to the   district as described by Subsection (b).          (b)  The governing body of the district by order shall annex   to the district the territory of a county included in the protection   and restoration study at the request of the commissioners court of   that county.          Sec. 9502.0105.  APPLICATION OF SUNSET ACT. (a) The   district is subject to review under Chapter 325, Government Code   (Texas Sunset Act), but may not be abolished under that chapter.   The review shall be conducted under Section 325.025, Government   Code, as if the authority were a state agency scheduled to be   abolished September 1, 2033, and every 12th year after that year.          (b)  The limited review under this section must assess the   district's:                (1)  governance;                (2)  management;                (3)  operating structure; and                (4)  compliance with legislative requirements.          (c)  The district shall pay the cost incurred by the Sunset   Advisory Commission in performing the review. The Sunset Advisory   Commission shall determine the cost, and the district shall pay the   amount promptly on receipt of a statement from the Sunset Advisory   Commission detailing the cost.          (d)  The district may not be required to conduct a management   audit under 30 T.A.C. Chapter 292.   SUBCHAPTER B. BOARD OF DIRECTORS          Sec. 9502.0201.  GOVERNING BODY; TERMS. (a) The district is   governed by a board of 11 directors.          (b)  The commissioners courts of Chambers County, Galveston   County, Harris County, Jefferson County, and Orange County each   shall appoint one director.          (c)  The governor, with the advice and consent of the senate,   shall appoint six directors as follows:                (1)  two directors to represent Harris County, in   addition to the member appointed by the commissioners court under   Subsection (b);                (2)  one director to represent a municipality in the   district;                (3)  one director to represent ports;                (4)  one director to represent industry; and                (5)  one director to represent environmental concerns.          (d)  In making the appointments required by Subsection (c),   the governor shall ensure that residents of a single county do not   make up a majority of the directors.          (e)  The governor shall consult with:                (1)  the commissioners court of Harris County in making   the appointments required by Subsection (c)(1); and                (2)  municipalities in the district in making the   appointment required by Subsection (c)(2).          (f)  Directors serve staggered four-year terms.          (g)  When a director's term expires, the appointing entity   shall appoint a successor.          (h)  If a director's office becomes vacant by death,   resignation, or removal, the appointing entity shall appoint a   director to serve for the remainder of the unexpired term.          (i)  The board shall elect a presiding officer from among the   directors to serve in that position for two years. A director may   serve as the presiding officer for not more than two consecutive   terms.          (j)  Notwithstanding Subsection (f), the governor shall   designate from the 11 initial directors 5 directors to serve a first   term of two years. This subsection expires September 1, 2025.          Sec. 9502.0202.  QUALIFICATION. (a) To qualify for office,   a director must be a registered voter who resides in the district.          (b)  To qualify for office, a director described by Section   9502.0201(b) or (c)(1) or (2) must be a resident of the county or   municipality the person is appointed to represent.          Sec. 9502.0203.  CERTAIN CONFLICTS PROHIBITED. (a) An   individual is not eligible to serve as a director if, in the   preceding 24 months, the individual had an interest in or was   employed by or affiliated with a person who has submitted a bid or   entered into a contract for a district project.          (b)  The board may not employ or appoint an individual   described by Subsection (a) to work for the district.          (c)  A director may not acquire a direct or indirect interest   in a district project.          Sec. 9502.0204.  REIMBURSEMENT. A director is not entitled   to compensation but is entitled to reimbursement for necessary   expenses incurred in carrying out the duties and responsibilities   of the board.          Sec. 9502.0205.  VOTING. A concurrence of a majority of the   directors is required for transacting any business of the district.          Sec. 9502.0206.  TEMPORARY EXECUTIVE DIRECTOR. The governor   shall appoint a temporary executive director for the district to   serve until the initial board members hire an executive director   for the district.   SUBCHAPTER C. POWERS AND DUTIES          Sec. 9502.0301.  GENERAL DISTRICT POWERS. (a) Except as   otherwise provided by this section, the district may:                (1)  establish, construct, extend, maintain, operate,   or improve a coastal barrier or storm surge gate in the manner   provided by Chapter 571, Local Government Code, for a county to   establish, construct, extend, maintain, or improve a seawall;                (2)  exercise the authority granted to counties to   conduct any project described by Chapter 571, Local Government   Code;                (3)  establish, construct, and maintain recreational   facilities for public use and environmental mitigation facilities   related to a project described by Subdivision (1) or (2); and                (4)  establish, construct, maintain, or operate a   project recommended in the ecosystem restoration report or the   protection and restoration study.          (b)  Sections 571.006, 571.007, 571.008, 571.009, and   571.010, Local Government Code, do not apply to the district.          (c)  Before implementing a project described by Subsection   (a), the district shall consult with local, state, and federal   entities to determine whether an environmental remediation   response action is anticipated or located near or at the proposed   location of the project.          (d)  If implementation of a project described by Subsection   (a) disrupts, wholly or partly, an ongoing or planned environmental   remediation response action, the district shall:                (1)  consult with the responsible party of the   environmental remediation response action; and                (2)  coordinate implementation of the project in a   manner that does not disrupt the environmental remediation response   action.          Sec. 9502.0302.  TAXES AND BONDS. (a) The district must   hold an election in the manner provided by Chapter 49, Water Code,   to obtain voter approval before the district may impose an ad   valorem tax or issue bonds payable from ad valorem taxes.          (b)  The board may impose the tax at a rate not to exceed 5   cents on each $100 valuation.          (c)  The district, without an election, may issue bonds,   notes, or other obligations secured by revenue other than ad   valorem taxes.          Sec. 9502.0303.  REQUIREMENTS FOR CERTAIN PROJECTS. If the   district enters into an agreement with another entity to implement   a project recommended in the ecosystem restoration report or the   protection and restoration study, the district:                (1)  shall develop a maintenance and operation plan for   the project;                (2)  may enter into a partnership with a private entity   to fund a local share of the cost of the project; and                (3)  may use any available money to provide matching   funds to the United States Army Corps of Engineers to implement the   project.          Sec. 9502.0304.  ACQUISITION AND DISPOSITION OF PROPERTY AND   RIGHTS. (a) The district may purchase, lease, acquire by gift,   maintain, use, and operate property of any kind appropriate for the   exercise of the district's functions.          (b)  The district may acquire permits, licenses, and rights   related to the exercise of the district's functions.          Sec. 9502.0305.  AGREEMENTS. (a) The district may enter   into a cooperative agreement with a political subdivision, a state   agency, the United States Army Corps of Engineers, or another   federal agency for a purpose related to the study, design,   construction, operation, or maintenance of a district project.          (b)  The district may enter into an interlocal agreement with   a political subdivision for a purpose related to the study, design,   construction, operation, or maintenance of a district project to   include the acceptance of the assignment of rights or obligations   in an existing design agreement or a project partnership agreement   between the political subdivision and the United States Army Corps   of Engineers.          Sec. 9502.0306.  CONTRACTS GENERALLY. (a) The district may   enter into contracts and execute instruments that are necessary or   convenient to the exercise of the district's powers, rights,   duties, and functions. A contract may be for any term, including   for the life of any facility or structure in the territory of the   district.          (b)  The district and another governmental entity may enter   into a contract for the operation or maintenance of an authorized   project in the same way that a political subdivision may contract   with another governmental entity under Chapter 472, Transportation   Code, to construct or maintain a road or highway.          (c)  The district may enter into a project partnership   agreement with the United States Army Corps of Engineers for the   study, design, construction, operation, and maintenance of a   project recommended in the ecosystem restoration report or the   protection and restoration study.          (d)  A public agency or political subdivision is authorized   to:                (1)  enter into a contract with the district;                (2)  determine, agree, and pledge that all or any part   of its payments under a contract with the district shall be payable   from any source, subject only to the authorization by a majority   vote of the governing body of such public agency or political   subdivision of the contract, pledge, and payments;                (3)  use and pledge any available revenues or resources   for and to the payment of amounts due under a contract with the   district as an additional source of payment or as the sole source of   payment and agree with the district to assure the availability of   revenue and resources when required; and                (4)  fix, charge, and collect impact fees and utility   charges, if the public agency or political subdivision is otherwise   authorized to impose the fees and charges, and to use and pledge   revenue from the fees or charges to make payments to the district   required under a contract with the district.          Sec. 9502.0307.  CERTAIN CONTRACTS. The district may enter   into contracts in the manner provided by Chapter 49, Water Code, for   construction or repair projects and the purchase of equipment,   materials, or supplies.          Sec. 9502.0308.  CONFLICT WITH ORDER OR ACTION OF ANOTHER   POLITICAL SUBDIVISION.  An order or action of a navigation   district, port authority, river authority, or drainage district   relating to the operation or maintenance of a district project   supersedes an order or action of the district to the extent of any   conflict.          Sec. 9502.0309.  AUTHORITY TO DEVELOP BARRIER CLOSURE   PROCEDURES.  If the district implements a project to create a   coastal barrier, the district shall develop closure procedures in   conjunction with each board of trustees established under Chapter   54, Transportation Code, navigation district, drainage district,   and port authority affected by the barrier or closure.          Sec. 9502.0310.  ANNUAL REPORT REQUIRED. The district shall   annually submit a report to the legislature, the Legislative Budget   Board, the General Land Office, and the commissioners court of each   county in which the district is located. The report must:                (1)  describe the district's financial condition and   operations during the preceding year;                (2)  propose a budget for the following year; and                (3)  describe generally the work proposed for the   following year.          Sec. 9502.0311.  EMINENT DOMAIN. The district may exercise   the power of eminent domain to acquire a fee simple or other   interest in any type of property if the interest is necessary or   convenient for the exercise of the district's functions. The   district must exercise the power of eminent domain in the manner   provided by Chapter 21, Property Code.          SECTION 2.  (a) The 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   under Section 59, Article XVI, Texas Constitution, and Chapter 313,   Government Code.          (b)  The governor, one of the required recipients, has   submitted the notice and Act to the Texas Commission on   Environmental Quality.          (c)  The Texas Commission on Environmental Quality has filed   its recommendations relating to this Act with the governor, the   lieutenant governor, and the speaker of the house of   representatives within the required time.          (d)  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 are fulfilled   and accomplished.          SECTION 3.  (a) Section 9502.0311, Special District Local   Laws Code, as added by Section 1 of this Act, takes effect only if   this Act receives a two-thirds vote of all the members elected to   each house.          (b)  If this Act does not receive a two-thirds vote of all the   members elected to each house, Subchapter C, Chapter 9502, Special   District Local Laws Code, as added by Section 1 of this Act, is   amended by adding Section 9502.0311 to read as follows:          Sec. 9502.0311.  NO EMINENT DOMAIN POWER. The district may   not exercise the power of eminent domain.          (c)  This section is not intended to be an expression of a   legislative interpretation of the requirements of Section 17(c),   Article I, Texas Constitution.          SECTION 4.  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, 2021.     * * * * *