2009 Texas Code
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
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.