CHAPTER 1508. OBLIGATIONS FOR MUNICIPAL PARKS, RECREATIONAL FACILITIES, AND AIRPORTS

State Codes and Statutes

Statutes > Texas > Government-code > Title-9-public-securities > Chapter-1508-obligations-for-municipal-parks-recreational-facilities-and-airports

GOVERNMENT CODE

TITLE 9. PUBLIC SECURITIES

SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES TO ISSUE

SECURITIES

CHAPTER 1508. OBLIGATIONS FOR MUNICIPAL PARKS, RECREATIONAL

FACILITIES, AND AIRPORTS

SUBCHAPTER A. OBLIGATIONS FOR PARKS, RECREATIONAL FACILITIES, AND

AIRPORTS

Sec. 1508.001. AUTHORITY FOR PARKS, RECREATIONAL FACILITIES, AND

AIRPORTS. (a) A municipality may:

(1) construct, purchase, or encumber:

(A) a park, swimming pool, golf course, golf course clubhouse,

or ballpark;

(B) a fairground or an exposition building;

(D) land on which a facility described by Paragraphs (A)-(C) is

located; or

(2) encumber anything acquired or to be acquired that relates to

a facility or land constructed or purchased under Subdivision

(1).

(b) A municipality may secure the payment of funds to construct,

purchase, or equip a facility or land described by Subsection

(a)(1).

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.002. AUTHORITY TO ISSUE BONDS, NOTES, AND WARRANTS. A

municipality may issue bonds, notes, or warrants to provide the

money to construct or purchase a facility or land described by

Section 1508.001.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.003. PLEDGE OF INCOME. A municipality may pledge the

income from a facility or land described by Section 1508.001 to

the payment of obligations issued under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.004. AUTHORITY TO GRANT FRANCHISE. As additional

security for an obligation described by Section 1508.002, a

municipality may, under the terms of the encumbrance, grant to

the purchaser under sale or foreclosure a franchise to operate

the facility or land for a term not to exceed 20 years from the

date of purchase, subject to all laws regulating same then in

force.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.005. OBLIGATIONS NOT DEBT OF MUNICIPALITY. An

obligation issued under this subchapter:

(1) is not a debt of the municipality;

(2) may be a charge only on the facility or land pledged for the

payment of the obligation; and

(3) may not be included in determining the power of the

municipality to issue bonds for any purpose authorized by law.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.006. ELECTION. (a) Unless authorized at an election

by a majority vote of the qualified voters of the municipality, a

municipality may not:

(1) encumber a facility or land described by Section 1508.001

for more than $5,000 except:

(A) for purchase money;

(B) for funds to construct and equip the facility; or

(2) sell a facility or land described by Section 1508.001.

(b) The governing body of the municipality shall hold an

election under this section in the manner provided for other bond

elections in the municipality.

election held for that purpose before November 14, 1935, an

election is not required to encumber:

(1) a golf course or golf course clubhouse;

(2) a fairground or an exposition building;

(3) an airport; or

(4) land for a facility described by Subdivisions (1)-(3).

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.007. RECORDS. The mayor of a municipality that has a

facility or land described by Section 1508.001 shall establish

and maintain a complete system of records that:

(1) show each free service provided in connection with the

facility or land and the value of the service; and

(2) show separately the amounts spent and amounts set aside for

operation, salaries, labor, materials, repairs, maintenance,

depreciation, replacements, extensions, interest, and the

creation of a sinking fund to pay the bonds or debt.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.008. ANNUAL REPORT. (a) Not later than February 1 of

each year, the superintendent or manager of a facility or land

described by Section 1508.001 shall file with the mayor of the

municipality a detailed report of the operation of the facility

or land for the year ending the preceding January 1.

(b) The report must show the total amount of money collected and

the balance due, and the total disbursements made and the amounts

remaining unpaid, resulting from the operation of the facility or

land during that year.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.009. OFFENSE. (a) A mayor commits an offense if the

mayor fails to:

(1) establish the system of records required by Section 1508.007

before the 91st day after the date the construction or purchase

of the facility or land is completed; or

(2) maintain the system of records required by Section 1508.007.

(b) A superintendent or manager of a facility or land described

by Section 1508.001 commits an offense if the superintendent or

manager fails to file a report required by Section 1508.008.

a fine of not less than $100 or more than $1,000.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.010. CIVIL ENFORCEMENT. A taxpayer who resides in the

municipality or a holder of an obligation issued under this

subchapter and secured by the encumbered revenue from a facility

or land described by Section 1508.001 is entitled to enforce this

subchapter by appropriate civil action in a district court in the

county in which the municipality is located.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER B. REVENUE BONDS FOR SWIMMING POOLS

Sec. 1508.051. AUTHORITY FOR SWIMMING POOLS. A municipality

may:

(1) purchase, construct, improve, enlarge, or repair a municipal

swimming pool; or

(2) encumber:

(A) a municipal swimming pool or anything acquired that relates

to the pool; or

(B) the gross income and revenue from a municipal pool.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.052. AUTHORITY TO ISSUE REVENUE BONDS. A municipality

may issue revenue bonds to purchase, construct, improve, enlarge,

or repair a municipal swimming pool.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.053. ISSUANCE OF BONDS. Except as provided by this

subchapter, a municipality shall issue bonds for a purpose

described by Section 1508.052, including additional bonds and

refunding bonds, in the manner provided by Subchapter B, Chapter

1502.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.054. BONDS NOT DEBT OF MUNICIPALITY. A bond issued

under this subchapter:

(1) is not a debt of the municipality;

(2) may be a charge only on the property or income pledged for

the payment of the bond; and

(3) may not be included in determining the power of the

municipality to issue bonds for any other purpose authorized by

law.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.055. EFFECT ON OTHER LAW. This subchapter does not

affect any other law relating to the issuance of revenue bonds by

a municipality, including Subchapter B, Chapter 1502.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER C. OBLIGATIONS FOR HEALTH AND RECREATIONAL FACILITIES

IN MUNICIPALITIES WITH POPULATION OF 5,000 OR MORE

Sec. 1508.101. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a municipality with a population of 5,000 or

more.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2003, 78th Leg., ch. 711, Sec. 1, eff. June

20, 2003.

Sec. 1508.102. AUTHORITY FOR CERTAIN HEALTH OR RECREATIONAL

FACILITIES. (a) A municipality may acquire, encumber,

construct, maintain, operate, repair, or remodel:

(1) a health and recreational facility, park, playground, hotel,

bathhouse, or swimming pool or facility; or

(2) an installation or establishment necessary or desirable as a

part of a facility described by Subdivision (1).

(b) A municipality may not encumber under this section a project

acquired on or before November 14, 1935.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.103. AUTHORITY TO ISSUE BONDS, NOTES, AND WARRANTS. A

municipality may issue bonds, notes, or warrants to provide money

for an acquisition or an activity authorized by Section 1508.102.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.104. PLEDGE OF INCOME. A municipality may pledge the

income from a project described by Section 1508.102 to the

payment of an obligation issued under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.105. MORTGAGE. A municipality may secure the payment

of funds for a purchase under this subchapter with an instrument

of pledge or mortgage as desired by the municipality.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.106. OBLIGATION NOT PAYABLE FROM TAXES. (a) An

obligation issued under this subchapter:

(1) is not a debt of the municipality;

(2) may be a charge only on the property and revenue encumbered;

and

(3) may not be included in determining the power of the

municipality to issue bonds for any purpose authorized by law.

(b) A contract, bond, warrant, or note issued or executed under

this subchapter must contain the following provision: "The holder

of this obligation is not entitled to demand payment of this

obligation out of any money raised by taxation."

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.107. APPLICATION OF OTHER LAW. The provisions of

Chapter 252, Local Government Code, regarding notice, competitive

bids, and the right to referendum do not apply to a municipality

issuing revenue bonds under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.108. OPERATING EXPENSES AS FIRST LIEN. If the income

from a project described by Section 1508.102 is encumbered under

this subchapter, each expense of operation and maintenance of the

project, including all salaries, labor, materials, interest,

repairs, and extensions necessary to maintain the project, and

each proper item of expense, is a first lien and charge against

the income.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.109. RENTS AND CONCESSION CHARGES. (a) The governing

body that manages and controls a project under Section 1508.111

shall impose and collect rents and concession charges for the use

of the project in an amount sufficient to pay:

(1) all operating and maintenance expenses, depreciation,

replacements, salaries, and interest charges;

(2) for an interest and sinking fund sufficient to pay any bonds

issued to purchase, construct, maintain, or improve the project;

and

(3) any outstanding debt against the project.

(b) The governing body may not allow any free use of or free

service in connection with the project.

the requirements of any governmental agency lending or providing

funds for the project.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.110. USE OF INCOME FOR OTHER PURPOSE PROHIBITED. A

municipality may not use the income from a project described by

Section 1508.102 to pay another debt, expense, or obligation of

the municipality until the debt secured by the income is fully

paid.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.111. MANAGEMENT AND CONTROL. (a) The contract under

which a project authorized by Section 1508.102 is encumbered must

provide for the placement of the management and control of the

project during the time the project is encumbered in:

(1) the governing body of the municipality; or

(2) another governing body established for that purpose by the

governing body of the municipality.

(b) The governing body that manages and controls a project under

Subsection (a) may:

(1) adopt rules governing the use and rental of the project and

for the payment of rents and concession charges; and

(2) provide penalties for:

(A) the violation of rules adopted under Subdivision (1);

(B) the use of the project without the consent or knowledge of

the authorities in charge of the project; or

or the property on which the project is located.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.112. APPOINTMENT OF TRUSTEE; ATTORNEY'S FEES. A

contract under which a project is encumbered under this

subchapter may provide for:

(1) the selection of a trustee to sell the project on:

(A) a default in the payment of principal or interest; or

(B) a violation of the terms of the encumbrance;

(2) the selection of a successor trustee if the original trustee

or a substitute trustee is disqualified or fails to act; and

(3) attorney's fees in an amount not to exceed 10 percent of the

unpaid principal.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.113. NOTICE TO GOVERNING BODY BEFORE FORECLOSURE OR

OTHER ACTION. (a) Unless written notice is given to the

governing body of the municipality in accordance with this

section that there is a default in payment of any installment of

principal of or interest on an obligation issued under this

subchapter or another violation of the terms of the pledge or

loan:

(1) a collection fee may not accrue;

(2) a foreclosure proceeding may not be initiated in a court or

through a trustee; and

(3) an option to mature any part of an obligation because of the

default may not be exercised.

(b) A notice under Subsection (a) must be sent by prepaid

registered mail to each member of the governing body of the

municipality, addressed to the member at the post office in the

municipality.

(1) before the 91st day after the date the notice is mailed; or

(2) if the default that gave rise to the action is cured within

the time described by Subdivision (1).

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER D. BONDS FOR PARKS AND RECREATIONAL FACILITIES IN

MUNICIPALITIES WITH POPULATION OF 1.9 MILLION OR MORE

Sec. 1508.151. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a municipality with a population of 1.9 million

or more.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 31, eff.

Sept. 1, 2001.

Sec. 1508.152. AUTHORITY FOR PARK FACILITIES. (a) A

municipality may acquire by any means or construct, improve, or

equip property for park purposes, including establishing,

acquiring, leasing or contracting for as lessee or lessor,

constructing, improving, enlarging, equipping, maintaining,

repairing, or operating:

(1) a golf course, clubhouse, or pro shop;

(2) a tennis court or facility;

(3) a swimming pool;

(4) a marina;

(5) a recreation center;

(6) a rugby field;

(7) a baseball field;

(8) a zoo;

(9) a clarification lake or pool;

(10) a park transportation system or equipment;

(11) a theater;

(12) a bicycle trail;

(13) a multipurpose shelter;

(14) a service facility;

(15) a recreational facility;

(16) a water, sewer, or drainage facility necessary for a

facility described by Subdivisions (1)-(15); or

(17) a structure, area, or facility to be used in connection

with a facility described by Subdivisions (1)-(15) for parking

and storage of motor vehicles or other conveyances.

(b) A municipality may enter into an agreement under which a

facility described by Subsection (a) is operated on behalf of the

municipality.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.153. AUTHORITY TO ISSUE REVENUE BONDS. The governing

body of a municipality by ordinance may issue revenue bonds for a

purpose authorized by Section 1508.152.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.154. PLEDGE OF REVENUE. A municipality may pledge all

or part of the revenue, income, or receipts from a facility

described by Section 1508.152(a) to the payment of bonds,

including principal, interest, and any other amounts required or

permitted in connection with the bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.155. ADDITIONAL SECURITY. (a) The bonds may be

additionally secured by:

(1) an encumbrance on any real property relating to a facility

described by Section 1508.152(a) owned or to be acquired by the

municipality; or

(2) an encumbrance on any personal property appurtenant to that

real property.

(b) The governing body of the municipality may authorize the

execution of a trust indenture, mortgage, deed of trust, or other

form of encumbrance as evidence of the debt.

all or part of any grant, donation, revenue, or income received

or to be received from the United States or any other public or

private source.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.156. MATURITY. A bond issued under this subchapter

must mature not later than 40 years after its date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.157. ADDITIONAL BONDS. The ordinance that authorizes

the issuance of bonds under this subchapter may provide for the

issuance of additional parity bonds or subordinate lien bonds

under the terms specified in the ordinance.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.158. SALE OF BONDS. A municipality may sell bonds

issued under this subchapter in the manner and under the terms

provided in the ordinance authorizing the issuance of the bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.159. REVIEW AND APPROVAL OF CONTRACTS BY ATTORNEY

GENERAL. (a) If the bonds state that they are secured by a

pledge of revenue or rents from a contract, including a lease

contract, a copy of the contract and the proceedings relating to

it must also be submitted to the attorney general.

(b) If the attorney general finds that the bonds have been

authorized and the contract has been made in accordance with law,

the attorney general shall approve the contract.

1202 and the contract is approved under Subsection (b), the

contract is incontestable for any reason and is a binding

obligation for all purposes in accordance with its terms.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.160. CHARGES. (a) The governing body of a

municipality may impose and collect charges for the use of a

facility described by Section 1508.152(a).

(b) A municipality shall impose and collect charges in an amount

that will be at least sufficient, with any other pledged

resources, to provide for the payment of:

(1) the principal of, interest on, and any other amounts

required in connection with the bonds; and

(2) to the extent required by the ordinance authorizing the

issuance of the bonds:

(A) expenses incurred in connection with the bonds; and

(B) operation, maintenance, and other expenses incurred in

connection with the facility.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.161. USE OF AD VALOREM TAXES. (a) In addition to or

instead of a pledge of revenue, a municipality may impose and

pledge to the payment of any portion of the operation and

maintenance costs of a facility described by Section 1508.152(a)

a continuing annual ad valorem tax imposed at a rate sufficient

for that purpose as provided in the ordinance authorizing the

issuance of bonds under this subchapter.

(b) A tax under this section:

(1) must be imposed at a rate within any limit contained in the

municipal charter; and

(2) may not be used for the payment of the principal of or

interest on the bonds.

used annually, to the extent required by or provided in the

ordinance authorizing the issuance of the bonds, for the

operation and maintenance of the facility.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.162. REFUNDING BONDS. (a) A municipality may refund

or otherwise refinance bonds issued under this subchapter by

issuing refunding bonds under any terms provided by the ordinance

authorizing the issuance of the bonds. All appropriate provisions

of this subchapter apply to the refunding bonds. The refunding

bonds shall be issued in the manner provided by this subchapter

for other bonds.

(b) The refunding bonds may be sold and delivered in amounts

necessary to pay the principal of and interest and any redemption

premium on the bonds to be refunded, at maturity or on any

redemption date.

bonds being refunded by them. In that case, the comptroller shall

the bonds being refunded as provided by the ordinance authorizing

the issuance of the bonds. The exchange may be made in one

delivery or in installment deliveries.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.163. PUBLIC PURPOSE. Each purpose authorized by

Section 1508.152 is a public purpose and a proper municipal

function.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.164. CONFLICT OR INCONSISTENCY WITH OTHER LAW. When

bonds are issued under this subchapter, to the extent of any

conflict or inconsistency between this subchapter and another law

or a charter provision of a home-rule municipality, this

subchapter controls.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER E. CERTIFICATES OF INDEBTEDNESS FOR SEA LIFE PARK AND

OCEANARIUM

Sec. 1508.201. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a municipality that owns a sea life park and

oceanarium for which any portion of the costs of construction,

equipment, or development is paid from the proceeds of general

obligation park bonds authorized by an election held in the

municipality.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.202. AUTHORITY TO ISSUE CERTIFICATES OF INDEBTEDNESS.

(a) The governing body of a municipality by ordinance may issue

certificates of indebtedness to obtain money to:

(1) operate, maintain, repair, develop, or expand the sea life

park and oceanarium;

(2) acquire equipment and inventories for the sea life park and

oceanarium;

(3) pay for services when performed, or for items when acquired,

for the benefit of the municipality under an agreement relating

to the development, operation, equipping, staffing, or

maintenance of the sea life park and oceanarium, including a

lease, use, purchase, concession, or operating agreement; or

(4) acquire a facility, asset, or right from an operator under

Section 1508.206.

(b) A municipality may issue certificates of indebtedness for a

purpose described by Subsections (a)(1)-(3) in connection with

another public facility:

(1) owned by the municipality in conjunction with the sea life

park and oceanarium; and

(2) authorized under Subchapter B, Chapter 305, Local Government

Code, or Subchapter A, Chapter 1504.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.203. SECURITY FOR CERTIFICATES. (a) Certificates of

indebtedness issued under this subchapter may be secured by and

made payable from:

(1) taxes;

(2) revenue; or

(3) both taxes and revenue.

(b) To secure the repayment of certificates of indebtedness

issued under this subchapter or bonds issued to refund

certificates of indebtedness issued under this subchapter, the

governing body of a municipality may:

(1) pledge any portion of the revenue from the ownership or

operation of any facility, asset, or right under this subchapter;

(2) execute a deed of trust or mortgage lien on any portion of a

facility described by Section 1508.202.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.204. SALE OR DELIVERY OF CERTIFICATES. The ordinance

authorizing the issuance of certificates of indebtedness under

this subchapter may include provisions for any manner of:

(1) sale of the certificates;

(2) exchange of the certificates for property or services; or

(3) delivery of the certificates.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.205. AUTHORITY TO ENTER INTO AGREEMENT REGARDING

PUBLIC FACILITIES. (a) The governing body of a municipality may

enter into an agreement relating to the operation, maintenance,

development, expansion, equipment, or supplying of a public

facility described by Section 1508.202.

(b) An agreement authorized by Subsection (a) may be entered

into only:

(1) on the issuance of certificates of indebtedness under this

subchapter; or

(2) in anticipation of:

(A) the issuance of certificates of indebtedness under this

subchapter; or

(B) the receipt of revenue from a public facility instead of the

issuance of certificates of indebtedness.

into under procedures that the governing body determines best,

necessary, and proper.

(d) The proceeds from the certificates of indebtedness, or the

revenue received instead of issuing certificates, may be used to

satisfy an agreement under this section.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.206. ACQUISITION OF PUBLIC FACILITY FROM OPERATOR.

(a) A municipality may acquire any portion of a public facility

described by Section 1508.202, or an asset or right related to

the facility, including broadcasting or similar rights, from a

person or corporation that operates any portion of the facility

on behalf of the municipality under an agreement, including a

lease, use, purchase, concession, or operating agreement, if:

(1) the governing body of the municipality determines that the

facility could be better and more efficiently operated directly

by the municipality or through another method; and

(2) the person or corporation consents to the acquisition.

(b) The method used by the municipality to operate the facility

may include the use of an operating board appointed by the

governing body, with the board's powers granted by ordinance or

another method.

be used or sold by the municipality. In conjunction with the use

or sale, the municipality may promote or advertise:

(1) the municipality;

(2) the facility; or

(3) an event conducted in or in connection with the facility.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.207. DISCONTINUATION OF SEA LIFE PARK AND OCEANARIUM;

SALE OR LEASE OF SURPLUS PROPERTY. (a) The governing body of a

municipality by ordinance may abandon the use of property for a

sea life park and oceanarium and sell or lease the property for

any purpose the governing body determines is appropriate and in

the interest of the residents of the municipality if:

(1) the property was partly or wholly financed under this

subchapter; and

(2) the governing body finds that use of the property as a sea

life park and oceanarium should be abandoned because:

(A) the sea life park and oceanarium is no longer economically

feasible; and

(B) the continued use of the property as a sea life park and

oceanarium would be unprofitable.

(b) The municipality must sell property under this section only

to the highest and best bidder as required for other property

sold by the municipality.

another purpose for a term and under such other provisions as

agreed to by the governing body.

(d) The municipality shall apply rent received under a lease

under Subsection (c) as required by any ordinance authorizing the

issuance of certificates of indebtedness secured in whole or in

part by revenue derived from the sea life park and oceanarium.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1508.208. CONFLICT OR INCONSISTENCY WITH OTHER LAW. When

any certificates of indebtedness are being issued or any act or

contract is undertaken under this subchapter, to the extent of

any conflict or inconsistency between this subchapter and another

law applicable to the municipality, this subchapter controls.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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