2009 Texas Code
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
CHAPTER 322. JOINT PARKS BOARD AND PARK BONDS: ADJACENT COUNTIES WITH POPULATIONS OF 350,000 OR MORE
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
SUBTITLE B. COUNTY PARKS AND OTHER RECREATIONAL AND CULTURAL
RESOURCES
CHAPTER 322. JOINT PARKS BOARD AND PARK BONDS: ADJACENT COUNTIES
WITH POPULATIONS OF 350,000 OR MORE
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 322.001. ELIGIBLE COUNTIES. Two adjacent counties that
each have a population of one million or more may create a joint
park board in accordance with this chapter for the purpose of
providing one or more public parks for the two counties.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 2001, 77th Leg., ch. 669, Sec. 97, eff. Sept. 1,
2001.
Sec. 322.002. DEFINITION. In this chapter, "board" means the
Joint Board of Park Commissioners.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.003. CREATION OF JOINT PARKS BOARD. (a) To create a
joint parks board, the commissioners court of each county must
adopt an order creating the board.
(b) The commissioners court of each county by resolution may
transfer to the board jurisdiction and control of any county park
within either or both of the counties.
(c) Title to the parks under its jurisdiction and to the
properties and facilities related to the parks vests in the
board.
(d) The board shall be known as the Joint Board of Park
Commissioners, except that the board may change its name by
resolution.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.004. MUNICIPAL CONVEYANCE OF LAND TO BOARD. Any
municipality contained in either of the counties may sell land
owned by it to the board or to the counties if the governing body
of the municipality finds that the land is not required for
municipal purposes. The sale must be authorized by ordinance and
does not require an election.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.005. EXERCISE OF POWERS BY COMMISSIONERS COURT. If
establishment of the board is declared by a court to be invalid,
the commissioners court of the counties acting jointly may ratify
any prior action taken by the board and may exercise the powers
granted to the board by this chapter.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER B. JOINT BOARD OF PARK COMMISSIONERS
Sec. 322.021. COMPOSITION; TERM; QUALIFICATIONS. (a) The board
must be composed of 13 commissioners appointed by the governor
with the advice and consent of the senate. The governor shall
appoint the chairman from one county and six members from each
county.
(b) Members of the board serve staggered terms of two years,
with the terms of six or seven members expiring every other year.
In appointing the initial board, the governor shall designate
three of the members appointed from each county to serve for
terms of one year and three of the members appointed from each
county to serve for terms of two years.
(c) The term as chairman is two years, and the chairmanship of
the board alternates between the counties every two years. The
governor shall appoint the first chairman from the county having
the larger population.
(d) A park commissioner may not be an officer or employee of
either of the counties or an officer or employee of any
municipality in either of the counties.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.022. VACANCY. A vacancy on the board shall be filled
by appointment by the governor.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.023. 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 of the county the commissioner represents.
(b) The bond must be:
(1) payable to the order of the county judge of the county that
the commissioner represents;
(2) approved by the commissioners court of that county;
(3) in an amount prescribed by that 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
all money that comes into the hands of the park 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. 322.024. ORGANIZATION; MEETINGS. (a) Seven park
commissioners constitute a quorum, except that three of the
members comprising the quorum must be from each county. The board
may act on the majority vote of a quorum.
(b) The board shall elect from its membership a vice-chairman, a
secretary, and a treasurer. The vice-chairman and chairman must
be from different counties, and the secretary and treasurer must
be from different counties. Officers serve in that capacity for a
term of two years.
(c) If either the secretary or treasurer is absent or
unavailable, the other may act for the absent or unavailable
officer.
(d) The board shall hold regular meetings at times fixed by the
board and may hold special meetings as necessary.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.025. EXPENSES. The expenses of a commissioner must be
approved by the commissioners court of the county the
commissioner represents, and when approved must 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. 322.026. 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 or related to a public 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. 322.027. SEAL. The board shall adopt a seal, and the seal
shall be placed on each lease, deed, or other instrument required
to be executed under seal.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 322.041. 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. 322.042. DEPOSITORIES AND DISBURSEMENTS. (a) Money
belonging to or under the control of the board must be deposited
and secured substantially in 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 park commissioner
or by two bonded employees of the board. The board by resolution
entered in its minutes shall designate the officer and park
commissioner or the employees authorized to sign the warrants or
checks.
(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. 322.043. CONTRACTS. (a) The board may enter 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. 322.044. 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 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
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 at least yield 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.
(f) The board may in the resolution or trust indenture reserve
the right to enter such a contract after issuance of the bonds.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.045. RULES. The board may adopt reasonable rules
applicable to tenants, concessionaires, residents, and users of
park facilities, regulating hunting, fishing, boating, camping,
and other recreational and business privileges in parks under the
control of the board.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.046. 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, the
commissioners court of either county or an agency of either
county, 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. 322.047. FINANCIAL STATEMENT; BUDGET. (a) On or before
July 1 of each year, the board shall prepare and file with the
county clerk of each of the counties a complete financial
statement showing the financial status of the board and the
board's properties, funds, and indebtedness.
(b) The financial statement must show separately all information
concerning:
(1) revenue bonds;
(2) income from facilities the income of which is pledged to the
bonds, and the expenditures from that income; and
(3) money appropriated to the board by the commissioners courts
for operational and maintenance expenses.
(c) At the same time the financial statement is filed, the board
shall file with the county clerk of each of the counties a
proposed budget of its needs for the next calendar year.
(d) 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.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.048. SUITS. The board constitutes a body corporate and
politic and may sue and be sued in its own name.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.049. NO TAXING POWER. The board may not levy a tax for
any purpose.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.050. 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 either of
the commissioners courts 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. 63, eff. Sept. 1,
1989.
SUBCHAPTER D. REVENUE BONDS
Sec. 322.071. ISSUANCE; PURPOSE. (a) For the purpose of
providing funds to acquire, improve, equip, and repair parks
under its control, or for the acquisition or construction of
facilities to be used in or connected with or incident to one or
more of the parks, the board by resolution may issue 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 stadiums,
coliseums, auditoriums, athletic fields, pavilions, buildings and
grounds for assembly, and parking facilities or other incident
improvements.
(d) The bonds must be issued in the name of the board, signed by
the chairman, and attested by the secretary. The signatures may
be facsimile signatures printed on the bonds. The seal of the
board must be impressed, printed, or lithographed on the bonds.
(e) 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 board to be the most advantageous reasonably obtainable. The
net effective interest rate may not exceed the maximum rate
provided by Chapter 1204, Government Code.
(f) The resolution 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 resolution and
the bonds, the bonds are not subject to redemption before their
scheduled maturity dates.
(g) The bonds may be made payable at times and places inside or
outside this state as prescribed in the resolution.
(h) The bonds may be made registrable as to principal, or both
principal and interest.
(i) The bonds may be issued in one or more series.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.320, eff. Sept.
1, 2001.
Sec. 322.072. PLEDGE OF REVENUES. (a) The bonds may be secured
by a pledge of all or part of the net revenues from 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) The bonds may be additionally secured by a mortgage on all
or part of the real and personal property owned by the board.
(d) In the resolution authorizing issuance of bonds, the board
may reserve the right, under conditions specified in the
resolution, 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
resolution.
(f) In this chapter, "net revenues" means the gross revenues
from 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 322.075.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.073. PROCEEDS. (a) The proceeds of the bonds shall be
used under the restrictions provided in the resolution. 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 ensure the proper application of the funds except as
expressly provided in the resolution 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 resolution; and
(2) an amount for the interest and sinking fund or another
reserve fund provided for in the resolution.
(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 resolution.
(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 or be retained
for future expansion or improvements.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.074. 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. 322.075. FEES AND REVENUE. (a) In this section, "fee"
includes a 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. If 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 resolution for debt service. "Debt
service," as defined in the resolution, 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 resolution 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
and authorize fees to be charged by the person for 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 resolution.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.076. REFUNDING BONDS. (a) Fully negotiable bonds may
be issued by resolution of the board for the purpose of refunding
bonds issued under this chapter.
(b) The refunding bonds may be secured in the manner provided by
this chapter for securing 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 resolution authorizing their issuance.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.077. BONDS NOT STATE OR COUNTY DEBT. (a) The bonds
are not a debt of either of the counties, of this state, or of
the individual members of the board, but are payable solely from
the income and properties of the board.
(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."
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
Sec. 322.078. MISCELLANEOUS PROVISIONS. (a) In this section,
"fee" includes a fee, charge, or toll.
(b) The resolution authorizing the issuance of the bonds may
require that the bonds contain a recital that they are issued
pursuant to and in strict conformity with this chapter. If made,
that recital is conclusive evidence of the validity of the bonds
and the regularity of their issuance.
(c) 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.
(d) If provided for in the resolution, an indenture securing the
bonds may be executed between the board and a corporate trustee.
The resolution may also provide for execution of the indenture by
a corporate or individual cotrustee. In addition to the pledge of
revenues, the indenture may grant a mortgage or deed of trust
lien on all or any part of the real and personal property of the
board. A corporate trustee or corporate cotrustee must be a trust
company or a bank located inside or outside this state that has
trust powers.
(e) Either the resolution or an indenture may contain provisions
for protecting or enforcing the rights or remedies of the
bondholders as considered by the board 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 board, 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.
(f) 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
principal and interest on the bonds, including reserve funds and
accounts. The depository may furnish indemnity bonds or pledge
securities as required by the board.
(g) The board 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 board in the resolution or indenture may bind the
board to the use of direct obligations of the United States or
obligations unconditionally guaranteed by the United States as
security for the deposits.
(h) The resolution 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
resolution may contain other suitable provisions the board
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 board of any of its duties or
obligations.
(i) 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 board or its agents and
employees or against any lessee of any facility the revenues of
which are pledged to the bonds, including the right to require
the board to impose, establish, and enforce fees sufficient and
effective to carry out the agreements contained in the resolution
or indenture, the right to perform all agreements and covenants
in the resolution and the duties arising from the resolution or
indenture, and the right in the event of default as defined in
the resolution 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 mortgaged and the revenues of which
have been pledged. The receiver shall retain possession until the
board 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. The receiver may make and renew contracts or
leases with the approval of the court in the same manner as the
board. The receiver shall dispose of and apply the money in
accordance with the obligations of the board under the resolution
or indenture and as the court may direct.
(j) The resolution 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
resolution.
(k) The bonds are legally authorized investments for banks,
savings banks, trust companies, savings and loan associations,
insurance companies, fiduciaries, trustees, and for the sinking
funds and other funds of this state. The bonds are eligible to
secure the deposit of any 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.
(l) The resolution, the indenture, and this chapter constitute
an irrevocable contract between the board and the bondholders.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
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