Bill Text: TX HB3860 | 2011-2012 | 82nd Legislature | Introduced


Bill Title: Relating to the creation of the Port Isabel Improvement District No. 1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-05-20 - Recommendations filed with the Speaker [HB3860 Detail]

Download: Texas-2011-HB3860-Introduced.html
  82R24648 JXC-F
 
  By: Oliveira H.B. No. 3860
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Port Isabel Improvement District
  No. 1; providing authority to impose a tax and issue bonds; granting
  a limited power of eminent domain.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 3906 to read as follows:
  CHAPTER 3906.  PORT ISABEL IMPROVEMENT DISTRICT NO. 1
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 3906.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Port Isabel.
               (3)  "Director" means a board member.
               (4)  "District" means the Port Isabel Improvement
  District No. 1.
         Sec. 3906.002.  CREATION AND NATURE OF DISTRICT. The
  district is a special district created under Section 59, Article
  XVI, Texas Constitution.
         Sec. 3906.003.  PURPOSE; LEGISLATIVE FINDINGS. (a) The
  creation of the district is essential to accomplish the purposes of
  Sections 52 and 52-a, Article III, and Section 59, Article XVI,
  Texas Constitution, and other public purposes stated in this
  chapter. By creating the district and in authorizing the city and
  other political subdivisions to contract with the district, the
  legislature has established a program to accomplish the public
  purposes set out in Section 52-a, Article III, Texas Constitution.
         (b)  The creation of the district is necessary to promote,
  develop, encourage, and maintain employment, commerce,
  transportation, housing, tourism, recreation, the arts,
  entertainment, economic development, safety, and the public
  welfare in the district.
         (c)  The district is created to supplement and not to
  supplant city services provided in the district.
         Sec. 3906.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the improvements and services to be provided by
  the district under powers conferred by Sections 52 and 52-a,
  Article III, and Section 59, Article XVI, Texas Constitution, and
  other powers granted under this chapter.
         (c)  The creation of the district is in the public interest
  and is essential to further the public purposes of:
               (1)  developing and diversifying the economy of the
  state;
               (2)  eliminating unemployment and underemployment;
               (3)  providing quality residential housing; and
               (4)  developing or expanding transportation and
  commerce.
         (d)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, potential employees, employees, visitors,
  and consumers in the district, and of the public;
               (2)  provide needed funding for the district to
  preserve, maintain, and enhance the economic health and vitality of
  the district territory as a residential community; and
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing pedestrian ways and by landscaping and
  developing certain areas in the district, which are necessary for
  the restoration, preservation, and enhancement of scenic beauty.
         (e)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, vehicle parking, and street art objects are parts of
  and necessary components of a street and are considered to be an
  improvement project that includes a street or road improvement.
         (f)  The district will not act as the agent or
  instrumentality of any private interest even though the district
  will benefit many private interests as well as the public.
         Sec. 3906.005.  DISTRICT TERRITORY. (a) The district is
  composed of the territory described by Section 2 of the Act enacting
  this chapter, as that territory may have been modified under
  Section 3906.113 or other law.
         (b)  A mistake in the field notes of the district contained
  in Section 2 of the Act enacting this chapter or in copying the
  field notes in the legislative process does not in any way affect:
               (1)  the district's organization, existence, or
  validity;
               (2)  the district's right to contract, including the
  right to issue any type of bond or other obligation for a purpose
  for which the district is created;
               (3)  the district's right to impose or collect an
  assessment, tax, or any other revenue; or
               (4)  the legality or operation of the board.
         Sec. 3906.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
  All or any part of the area of the district is eligible to be
  included in:
               (1)  a tax increment reinvestment zone created by the
  city under Chapter 311, Tax Code;
               (2)  a tax abatement reinvestment zone created by the
  city under Chapter 312, Tax Code;
               (3)  an enterprise zone created by the city under
  Chapter 2303, Government Code; or
               (4)  an industrial district created by the city under
  Chapter 42, Local Government Code.
  [Sections 3906.007-3906.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3906.051.  GOVERNING BODY; TERMS. The district is
  governed by a board of five directors who serve staggered terms of
  four years, with two or three directors' terms expiring June 1 of
  each odd-numbered year.
         Sec. 3906.052.  APPOINTMENT OF DIRECTORS. The governing body
  of the city shall appoint directors. Four directors must be
  appointed from persons recommended by the board as provided by
  Section 375.064, Local Government Code.
         Sec. 3906.053.  QUALIFICATIONS. (a) The four directors
  recommended by the board must meet the qualifications described by
  Section 54.102, Water Code, and by Section 375.064, Local
  Government Code.
         (b)  Section 49.052, Water Code, does not apply to the
  district.
         Sec. 3906.054. AFFIDAVIT AND ABSTENTION FROM VOTING
  REQUIRED.  A director shall comply with Section 171.004, Local
  Government Code, including the disclosure and abstention
  requirements of that section.
         Sec. 3906.055.  REMOVAL OF DIRECTORS. Section 375.065,
  Local Government Code, governs the removal of directors.
         Sec. 3906.056.  DIRECTOR'S OATH OR AFFIRMATION. A director
  shall file the director's oath or affirmation of office with the
  district, and the district shall retain the oath or affirmation in
  the district records.
         Sec. 3906.057.  OFFICERS. The board shall elect from among
  the directors a chair, a vice chair, and a secretary. The offices of
  chair and secretary may not be held by the same person.
         Sec. 3906.058.  COMPENSATION; EXPENSES. (a) The district
  may compensate each director in an amount not to exceed $50 for each
  board meeting. The total amount of compensation a director may
  receive each year may not exceed $2,000.
         (b)  A director is entitled to reimbursement for necessary
  and reasonable expenses incurred in carrying out the duties and
  responsibilities of a director.
         Sec. 3906.059.  LIABILITY INSURANCE FOR DIRECTORS. The
  district may obtain and pay for comprehensive general liability
  insurance coverage from a commercial insurance company or other
  source that protects and insures a director against personal
  liability and from all claims relating to:
               (1)  actions taken by the director in the director's
  capacity as a member of the board;
               (2)  actions and activities taken by the district; or
               (3)  the actions of others acting on behalf of the
  district.
         Sec. 3906.060.  INITIAL DIRECTORS. (a) Not later than the
  60th day after the effective date of the Act enacting this chapter,
  the governing body of the city shall appoint an initial board of
  five directors.
         (b)  At least three of the initial directors must:
               (1)  reside in the district;
               (2)  own land in the district; or
               (3)  be an agent of a person who owns land in the
  district.
         (c)  The terms of two initial directors expire June 1, 2013,
  and the terms of three initial directors expire June 1, 2015.
         (d)  This section expires September 1, 2015.
  [Sections 3906.061-3906.100 reserved for expansion]
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 3906.101.  IMPROVEMENT PROJECTS. The district may
  provide, or it may enter into contracts with a governmental or
  private entity to provide, the improvement projects described by
  Subchapter C-1 or activities in support of or incidental to those
  projects.
         Sec. 3906.102.  WATER DISTRICT POWERS. The district has the
  powers provided by the general laws relating to conservation and
  reclamation districts created under Section 59, Article XVI, Texas
  Constitution, including Chapters 49, 51, and 54, Water Code.
         Sec. 3906.103.  ROAD DISTRICT POWERS; EXCEPTION.  (a)  
  Except as provided by Subsection (b), the district has the powers
  provided by the general laws relating to road districts and road
  utility districts created under Section 52(b), Article III, Texas
  Constitution, including Chapter 441, Transportation Code.
         (b)  The district may exercise any power granted by this
  chapter and by Chapter 441, Transportation Code, without regard to
  any provision or requirement of, or procedure prescribed by,
  Chapter 441, Transportation Code.
         Sec. 3906.104.  PUBLIC IMPROVEMENT DISTRICT POWERS. The
  district has the powers provided by Subchapter A, Chapter 372,
  Local Government Code, to a municipality or county.
         Sec. 3906.105.  MUNICIPAL MANAGEMENT DISTRICT POWERS.  The
  district has the powers provided by Chapter 375, Local Government
  Code.
         Sec. 3906.106.  DEVELOPMENT CORPORATION POWERS. The
  district, using money available to the district, may exercise the
  powers given to a development corporation under Chapter 505, Local
  Government Code, including the power to own, operate, acquire,
  construct, lease, improve, or maintain a project under that
  chapter.
         Sec. 3906.107.  NONPROFIT CORPORATION. (a) The board by
  resolution may authorize the creation of a nonprofit corporation to
  assist and act for the district in implementing a project or
  providing a service authorized by this chapter.
         (b)  The nonprofit corporation:
               (1)  has each power of and is considered to be a local
  government corporation created under Subchapter D, Chapter 431,
  Transportation Code; and
               (2)  may implement any project and provide any service
  authorized by this chapter.
         (c)  The board shall appoint the board of directors of the
  nonprofit corporation. The board of directors of the nonprofit
  corporation shall serve in the same manner as the board of directors
  of a local government corporation created under Subchapter D,
  Chapter 431, Transportation Code, except that a board member is not
  required to reside in the district.
         Sec. 3906.108.  AGREEMENTS; GRANTS. (a) As provided by
  Chapter 375, Local Government Code, the district may make an
  agreement with or accept a gift, grant, or loan from any person.
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  Code.
         Sec. 3906.109.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with a qualified party,
  including the county or the city, to provide law enforcement
  services in the district for a fee.
         Sec. 3906.110.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
  district may join and pay dues to a charitable or nonprofit
  organization that performs a service or provides an activity
  consistent with the furtherance of a district purpose.
         Sec. 3906.111.  ECONOMIC DEVELOPMENT. (a) The district may
  engage in activities that accomplish the economic development
  purposes of the district.
         (b)  The district may establish and provide for the
  administration of one or more programs to promote state or local
  economic development and to stimulate business and commercial
  activity in the district, including programs to:
               (1)  make loans and grants of public money; and
               (2)  provide district personnel and services.
         (c)  The district may create economic development programs
  and exercise the economic development powers that:
               (1)  Chapter 380, Local Government Code, provides to a
  municipality; and
               (2)  Subchapter A, Chapter 1509, Government Code,
  provides to a municipality.
         Sec. 3906.112.  PARKING FACILITIES. (a) The district may
  acquire, lease as lessor or lessee, construct, develop, own,
  operate, and maintain parking facilities or a system of parking
  facilities, including lots, garages, parking terminals, or other
  structures or accommodations for parking motor vehicles off the
  streets and related appurtenances.
         (b)  The district's parking facilities serve the public
  purposes of the district and are owned, used, and held for a public
  purpose even if leased or operated by a private entity for a term of
  years.
         (c)  The district's parking facilities are parts of and
  necessary components of a street and are considered to be a street
  or road improvement.
         (d)  The development and operation of the district's parking
  facilities may be considered an economic development program.
         Sec. 3906.113.  ANNEXATION OR EXCLUSION OF LAND. (a) The
  district may annex land as provided by Subchapter J, Chapter 49,
  Water Code.
         (b)  The district may exclude land as provided by Subchapter
  J, Chapter 49, Water Code.  Section 375.044(b), Local Government
  Code, does not apply to the district.
         Sec. 3906.114.  LIMITED EMINENT DOMAIN POWER TO ACQUIRE
  SEAWALL.  (a)  The district may acquire by condemnation any land,
  easements, or other property inside the district boundaries only as
  necessary for the construction of a seawall. The district may elect
  to condemn either the fee simple title or a lesser property
  interest.
         (b)  The district may not acquire by condemnation:
               (1)  any land, easements, or other property inside the
  district boundaries for a purpose other than constructing a
  seawall;
               (2)  any land, easements, or other property outside the
  district; or
               (3)  water or water rights.
         (c)  The district shall exercise the right of eminent domain
  in the manner provided by Chapter 21, Property Code.  The district
  is not required to:
               (1)  give bond for appeal or bond for costs in a
  condemnation suit or other suit to which it is a party; or
               (2)  deposit more than the amount of an award in a suit.
         (d)  Section 375.094, Local Government Code, does not apply
  to the district.
  [Sections 3906.115-3906.150 reserved for expansion]
  SUBCHAPTER C-1.  IMPROVEMENT PROJECTS
         Sec. 3906.151.  BOARD DETERMINATION REQUIRED.  The district
  may not undertake an improvement project unless the board
  determines the project to be necessary to accomplish a public
  purpose of the district.
         Sec. 3906.152.  LOCATION OF IMPROVEMENT PROJECT. An
  improvement project may be located:
               (1)  in the district; or
               (2)  in an area outside but adjacent to the district if
  the project is for the purpose of extending a public infrastructure
  improvement beyond the district's boundaries to a logical terminus.
         Sec. 3906.153.  MUNICIPAL REQUIREMENTS.  An improvement
  project in a municipality must comply with any applicable municipal
  requirements, including codes and ordinances.
         Sec. 3906.154.  LAKE OR OTHER BODY OF WATER.  For the
  purposes of this subchapter, planning, design, construction,
  improvement, or maintenance of a lake or other body of water
  includes dredging, cleaning, widening, deepening, or other
  drainage, reclamation, or recreation work done to make the lake or
  other body of water navigable, clean, or safe for recreational use.
         Sec. 3906.155.  WATER.  (a)  An improvement project may
  include a supply and distribution facility or system to provide
  potable and nonpotable water to the residents and businesses of the
  district, including a wastewater collection facility.
         (b)  The district may plan, design, construct, improve,
  maintain, or operate a water or sewer facility under this section.
         Sec. 3906.156.  ROADS.  An improvement project may include a
  paved, macadamized, or graveled road or street to the full extent
  authorized by Section 52, Article III, Texas Constitution.
         Sec. 3906.157.  STORM WATER.  An improvement project may
  include protection and improvement of the quality of storm water
  that flows through the district.
         Sec. 3906.158.  EDUCATION AND CULTURE.  An improvement
  project may include the planning and acquisition of:
               (1)  public art and sculpture and related exhibits and
  facilities; or
               (2)  an educational facility and a cultural exhibit or
  facility.
         Sec. 3906.159.  CONVENTION CENTER.  An improvement project
  may include the planning, design, construction, acquisition,
  lease, rental, improvement, maintenance, installation, and
  management of and provision of furnishings for a facility for:
               (1)  a conference, convention, or exhibition;
               (2)  a manufacturer, consumer, or trade show;
               (3)  a civic, community, or institutional event; or
               (4)  an exhibit, display, attraction, special event, or
  seasonal or cultural celebration or holiday.
         Sec. 3906.160.  DEMOLITION.  An improvement project may
  include the removal, razing, demolition, or clearing of land or
  improvements in connection with an improvement project.
         Sec. 3906.161.  MITIGATION OF ENVIRONMENTAL EFFECTS;
  DEVELOPMENT AGREEMENT; TRANSIT PROJECT.  An improvement project may
  include the acquisition and improvement of land or other property
  for the mitigation of the environmental effects of an improvement
  project if the acquisition:
               (1)  complies with a development agreement between the
  district and another person and the agreement conditions
  reimbursement of costs associated with the acquisition on the
  completion of substantial vertical development; or
               (2)  relates to a transit project.
         Sec. 3906.162.  ACQUISITION OF PROPERTY.  An improvement
  project may include the acquisition of property or an interest in
  property in connection with an improvement project, including a
  project authorized by Subchapter A, Chapter 372, Local Government
  Code.
         Sec. 3906.163.  SPECIAL OR SUPPLEMENTAL SERVICES.  An
  improvement project may include a special or supplemental service
  for the improvement and promotion of the district or an area
  adjacent to the district or for the protection of public health and
  safety in or adjacent to the district, including:
               (1)  a service listed in Section 375.112(a)(4), Local
  Government Code;
               (2)  tourism;
               (3)  fire protection or emergency medical services; or
               (4)  educational improvements, enhancements, and
  services.
         Sec. 3906.164.  MISCELLANEOUS DESIGN, CONSTRUCTION, AND
  MAINTENANCE.  An improvement project may include the planning,
  design, construction, improvement, and maintenance of:
               (1)  a project or service listed in Section
  375.112(a)(1), Local Government Code;
               (2)  highway right-of-way or transit corridor
  beautification and improvement;
               (3)  a hiking and cycling path or trail;
               (4)  a pedestrian walkway;
               (5)  a garden, community activities center, dock,
  wharf, sports facility, open space, or related exhibit or preserve;
  or
               (6)  a bulkhead or other improvement designed to
  prevent erosion.
         Sec. 3906.165.  SIMILAR IMPROVEMENT PROJECTS.  An
  improvement project may include a public improvement, facility, or
  service similar to a project described by this subchapter.
  [Sections 3906.166-3906.200 reserved for expansion]
  SUBCHAPTER D.  GENERAL FINANCIAL PROVISIONS
         Sec. 3906.201.  BORROWING MONEY.  The district may borrow
  money for a district purpose by issuing or executing bonds,
  negotiable or nonnegotiable notes, credit agreements, or other
  obligations of any kind found by the board to be necessary or
  appropriate for a district purpose. The bond, note, credit
  agreement, or other obligation must be secured by and payable from
  any combination of ad valorem taxes, assessments, or any other
  district revenue or sources of money.
         Sec. 3906.202.  GENERAL POWERS REGARDING PAYMENT OF DISTRICT
  BONDS, OBLIGATIONS, OR OTHER COSTS.  The district may provide or
  secure the payment or repayment of any bond, note, or other
  temporary or permanent obligation or reimbursement or other
  contract with any person and the costs and expenses of the
  establishment, administration, and operation of the district and
  the district's costs or share of the costs or revenue of an
  improvement project or district contractual obligation or
  indebtedness by:
               (1)  the imposition of an ad valorem tax or an
  assessment, user fee, concession fee, or rental charge; or
               (2)  any other revenue or resources of the district,
  including tax increment revenue.
         Sec. 3906.203.  ASSESSMENTS.  (a)  The district may impose an
  assessment on property in the district to pay the cost or the cost
  of maintenance of any authorized district improvement in the manner
  provided for:
               (1)  a district under Subchapters A, E, and F, Chapter
  375, Local Government Code; or
               (2)  a municipality or county under Subchapter A,
  Chapter 372, Local Government Code.
         (b)  An assessment, a reassessment, or an assessment
  resulting from an addition to or correction of the assessment roll
  by the district, penalties and interest on an assessment or
  reassessment, an expense of collection, and reasonable attorney's
  fees incurred by the district:
               (1)  are a first and prior lien against the property
  assessed; and
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes.
         (c)  The lien of an assessment against property runs with the
  land.  The portion of an assessment payment obligation that has not
  yet come due is not eliminated by the foreclosure of an ad valorem
  tax lien, and any purchaser of property in a foreclosure of an ad
  valorem tax lien takes the property subject to the assessment
  payment obligations that have not yet come due and to the lien and
  terms of the lien's payment under the applicable assessment
  ordinance or order.
         (d)  The board may make a correction to or deletion from the
  assessment roll that does not increase the amount of assessment of
  any parcel of land without providing notice and holding a hearing in
  the manner required for additional assessments.
         Sec. 3906.204.  NOTICE OF ASSESSMENT.  The board shall file
  notice of an assessment imposed with the county clerk of Cameron
  County and post the notice on the district's Internet website.
         Sec. 3906.205.  STORM WATER USER CHARGES.  The district may
  establish user charges related to the operation of storm water
  facilities, including the regulation of storm water for the
  protection of water quality in the district.
         Sec. 3906.206.  NONPOTABLE WATER USER CHARGES.  The district
  may establish user charges for the use of nonpotable water for
  irrigation purposes, subject to approval of the governing body of
  the municipality in which the user is located.
         Sec. 3906.207.  COSTS FOR IMPROVEMENT PROJECTS.  The
  district may undertake separately or jointly with other persons,
  including the city, all or part of the cost of an improvement
  project, including an improvement project:
               (1)  for improving, enhancing, and supporting public
  safety and security, fire protection and emergency medical
  services, and law enforcement; or
               (2)  that confers a general benefit on the entire
  district or a special benefit on a definable part of the district.
         Sec. 3906.208.  RESIDENTIAL PROPERTY NOT EXEMPT. Section
  375.161, Local Government Code, does not apply to the district.
  [Sections 3906.209-3906.250 reserved for expansion]
  SUBCHAPTER E.  TAXES AND BONDS
         Sec. 3906.251.  TAX ABATEMENT.  The district may enter into a
  tax abatement agreement in accordance with the general laws of this
  state authorizing and applicable to a tax abatement agreement by a
  municipality.
         Sec. 3906.252.  PROPERTY TAX AUTHORIZED.  The district may
  impose an ad valorem tax on all taxable property in the district to:
               (1)  pay for an improvement project of the types
  authorized by Section 52(b), Article III, and Section 59, Article
  XVI, Texas Constitution; or
               (2)  secure the payment of bonds issued for a purpose
  described by Subdivision (1).
         Sec. 3906.253.  MAINTENANCE AND OPERATION TAX; ELECTION.
  (a) The district may impose a tax for maintenance and operation
  purposes, including for:
               (1)  planning, constructing, acquiring, maintaining,
  repairing, and operating all improvement projects, including land,
  plants, works, facilities, improvements, appliances, and equipment
  of the district; and
               (2)  paying costs of services, engineering and legal
  fees, and organization and administrative expenses.
         (b)  The district may not impose a maintenance and operation
  tax unless the tax is approved by a majority of the district voters
  voting at an election held for that purpose.
         (c)  A maintenance and operation tax election may be held at
  the same time and in conjunction with any other district election.
  The election may be called by a separate election order or as part
  of any other election order.
         Sec. 3906.254.  USE OF SURPLUS MAINTENANCE AND OPERATION
  MONEY. If the district has maintenance and operation tax money that
  is not needed for the purposes for which it was collected, the money
  may be used for any authorized purpose.
         Sec. 3906.255.  BONDS AND OTHER OBLIGATIONS; MUNICIPAL
  APPROVAL. (a) The district may issue by public or private sale
  bonds, notes, or other obligations payable wholly or partly from ad
  valorem taxes, tax increment financing, or assessments in the
  manner provided by Subchapter A, Chapter 372, or Subchapter J,
  Chapter 375, Local Government Code.
         (b)  In exercising the district's borrowing power, the
  district may issue a bond or other obligation in the form of a bond,
  note, certificate of participation or other instrument evidencing a
  proportionate interest in payments to be made by the district, or
  any other type of obligation.
         (c)  In addition to the sources of money described by Chapter
  311, Tax Code, Subchapter A, Chapter 372, and Subchapter J, Chapter
  375, Local Government Code, district bonds may be secured and made
  payable, wholly or partly, by a pledge of any part of the money the
  district receives from system or improvement revenue or from any
  other source.
         Sec. 3906.256.  ISSUANCE AND APPROVAL OF OBLIGATION POWERS.  
  The district has the powers provided by Chapter 1371, Government
  Code.
         Sec. 3906.257.  BOND MATURITY. Bonds may mature not more
  than 40 years from their date of issue.
         Sec. 3906.258.  TAXES FOR BONDS AND OTHER OBLIGATIONS. At
  the time bonds or other obligations payable wholly or partly from ad
  valorem taxes are issued:
               (1)  the board shall impose a continuing direct annual
  ad valorem tax for each year that all or part of the bonds are
  outstanding; and
               (2)  the district annually shall impose an ad valorem
  tax on all taxable property in the district in an amount sufficient
  to:
                     (A)  pay the interest on the bonds or other
  obligations as the interest becomes due; and
                     (B)  create a sinking fund for the payment of the
  principal of the bonds or other obligations when due or the
  redemption price at any earlier required redemption date.
         Sec. 3906.259.  AUTHORITY TO ESTABLISH DEFINED AREAS OR
  DESIGNATED PROPERTY.  The district may define areas or designate
  certain property of the district in the manner provided by
  Subchapter J, Chapter 54, Water Code, regardless of the district's
  size, to pay for improvements, facilities, or services that
  primarily benefit that area or property and do not generally and
  directly benefit the district as a whole.
         Sec. 3906.260.  NOTICE OF TAX.  The district shall file
  notice of a tax imposed with the county clerk of Cameron County and
  post the notice on the district's Internet website.
  [Sections 3906.261-3906.300 reserved for expansion]
  SUBCHAPTER F. TAX INCREMENT REINVESTMENT ZONE
         Sec. 3906.301.  DISTRICT AS TAX INCREMENT REINVESTMENT ZONE.
  Without further authorization or procedural requirement, the
  district is a tax increment reinvestment zone under Chapter 311,
  Tax Code.
         Sec. 3906.302.  BOARD; POWERS. (a) The district's board is
  the board of directors of the tax increment reinvestment zone.
         (b)  The district's board has the powers of the board of
  directors of a tax increment reinvestment zone granted under
  Chapter 311, Tax Code, including:
               (1)  the powers granted to a municipality under Section
  311.008, Tax Code, subject to the limitations in Section 311.010,
  Tax Code; and
               (2)  the power under Section 311.010(c), Tax Code, to
  restrict the use of property in the zone under Chapter 211, Local
  Government Code.
         (c)  Section 311.009, Tax Code, does not apply to the tax
  increment reinvestment zone board.
         Sec. 3906.303.  BASE YEAR VALUE. The base year value of the
  district, for tax increment financing purposes, is the value as of
  January 1, 2011, of all taxable real property in the district as
  shown on the certified tax rolls of the central appraisal district.
         Sec. 3906.304.  INTERLOCAL AGREEMENTS ALLOWED.  The
  district and an overlapping taxing unit may enter into an
  interlocal agreement for the payment of all or a portion of the tax
  increment of the unit to the district.
         Sec. 3906.305.  USE OF MONEY. The district may grant money
  deposited in the tax increment fund to the district to be used by
  the district for the purposes permitted for money granted to a
  corporation under Section 380.002(b), Local Government Code,
  including the right to pledge the money as security for any bonds
  issued by the district for an improvement project.
         Sec. 3906.306.  CITY CONSENT; DURATION. The city may, in its
  consent to the creation of the district, determine the portion of
  tax increment to be paid to the district and the initial duration of
  the tax increment reinvestment zone.
         Sec. 3906.307.  RESTRICTIONS ON AREA NOT APPLICABLE.  The
  area of the district that is a tax increment reinvestment zone is
  not subject to the limitations provided by Section 311.006(b), Tax
  Code.
  [Sections 3906.308-3906.350 reserved for expansion]
  SUBCHAPTER G.  DISSOLUTION
         Sec. 3906.351.  DISSOLUTION OF DISTRICT WITH OUTSTANDING
  DEBT. (a) The district may be dissolved as provided by Subchapter
  M, Chapter 375, Local Government Code, except that Section 375.264,
  Local Government Code, does not apply to the district.
         (b)  The board may dissolve the district regardless of
  whether the district has debt.
         (c)  If the district has debt when it is dissolved, the
  district shall remain in existence solely for the purpose of
  discharging its debts.  The dissolution is effective when all debts
  have been discharged.
         Sec. 3906.352.  COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
  (a) If the dissolved district has bonds or other obligations
  outstanding secured by and payable from assessments or other
  revenue, other than ad valorem taxes, the city shall succeed to the
  rights and obligations of the district regarding enforcement and
  collection of the assessments or other revenue.
         (b)  The city shall have and exercise all district powers to
  enforce and collect the assessments or other revenue to pay:
               (1)  the bonds or other obligations when due and
  payable according to their terms; or
               (2)  special revenue or assessment bonds or other
  obligations issued by the city to refund the outstanding bonds or
  obligations.
         Sec. 3906.353.  ASSUMPTION OF ASSETS AND LIABILITIES. If
  the city dissolves the district:
               (1)  the city assumes the obligations of the district,
  including any bonds or other debt payable from assessments or other
  district revenue; and
               (2)  the board shall transfer ownership of all district
  property to the city.
         SECTION 2.  The Port Isabel Improvement District No. 1
  initially includes all the territory contained in the following
  area:
  Being a 45.10 acre tract out of a 182.42 acre tract situated in the
  City of Port Isabel, Cameron County, Texas, said 182.42 acre tract
  being more particularly described by metes and bounds as follows;
  Beginning at the approximate intersection of W. State Hwy. 100 (W.
  Queen Isabella Blvd.) and N. 2nd St., said intersection being the
  POINT OF BEGINNING and also the southwestern most corner of this
  tract:
  Thence, continuing generally north along N. 2nd St. N00°00'38"W,
  992.66 feet to a point approximately located at the intersection of
  2nd St. and Illinois Ave. and a point of deflection to the right;
  Thence, continuing generally east along Illinois Ave. S90°00'00"E,
  288.23 feet to a point approximately located at the intersection of
  Illinois Ave. and First St. and a point of deflection to the left;
  Thence, continuing generally in a northeasterly direction along
  First St., N30°19'02"E, 885.93 feet and then N27°42'48"E, 212.40
  feet to a point approximately located at the intersection of First
  St. and W. North Shore Dr.;
  Thence, continuing generally in an easterly direction along W.
  North Shore Dr. with the following calls:
  Following along a curve to the right having a radius of 3481.45 feet
  and an arc length of 515.77 feet;
  Thence, N80°34'06"E, 688.86 feet passing through the W. North Shore
  Dr. Cul-de-Sac situated on the west side of the main canal and
  crossing said main canal to a point approximately located at the
  center of the W. North Shore Dr. Cul-de-Sac;
  Thence, N87°16'53"E, 262.60 feet to a point located at the
  intersection of N. Shore Dr. and N. Yturria St. and a point of
  deflection to the right;
  Thence, continuing generally in a southeasterly direction along N.
  Yturria St. with the following calls:
  S66°43'02"E, 1048.75 feet,
  Thence, S77°29'11"E, 834.75 feet,
  Thence, S77°20'18"E, 78.40 feet,
  Thence, S34°27'49"E, 706.34 feet to a point approximately located at
  the intersection with N. Yturria St. and W. State Hwy. 100 (W. Queen
  Isabella Blvd.)
  Thence, continuing generally along W. State Hwy. 100 (W. Queen
  Isabella Blvd.) with the following calls:
  S76°30'15"W, 237.92 feet,
  Thence, S55°32'11"W, 485.22 feet,
  Thence, S53°19'55"W, 1309.56 feet,
  Thence, following along a curve to the right having a radius of
  1250.27 feet and an arc length of 928.59 feet,
  Thence, N84°02'49"W, 847.36 feet,
  Thence, following along a curve to the right having a radius of
  2763.89 feet and an arc length of 887.31 feet,
  Thence, N68°12'13"W, 318.83 feet to the approximate POINT OF
  BEGINNING and containing 182.42 acres, Less the following three
  areas totaling 45.10 acres to be excluded;
  97.01 Acre Tract:
  Excluding an area being 97.01 acres situated within the afore
  mentioned 182.42 acres and being more particularly described as
  follows:
  Beginning at a point situated approximately 380.0 feet southwest of
  the approximate intersection of N. Shore Dr. and N. Yturria St. said
  intersection being the POINT OF BEGINNING,
  Thence, N80°34'06"E, 116.18 feet, to a point of deflection to the
  right,
  Thence, N87°16'53"E, 262.60 feet to a point located at the
  intersection of N. Shore Dr. and N. Yturria St. and a point of
  deflection to the right;
  Thence, continuing generally in a southeasterly direction along N.
  Yturria St. with the following calls:
  S66°43'02"E, 1048.75 feet,
  Thence, S77°29'11"E, 834.75 feet,
  Thence, S77°20'18"E, 78.40 feet,
  Thence, S34°27'49"E, 706.34 feet to a point approximately located at
  the intersection with N. Yturria St. and W. State Hwy. 100 (W. Queen
  Isabella Blvd.)
  Thence, continuing generally along W. State Hwy. 100 (W. Queen
  Isabella Blvd.) with the following calls:
  S76°30'15"W, 237.92 feet,
  Thence, S55°32'11"W, 485.22 feet,
  Thence, S53°19'55"W, 1309.56 feet,
  Thence, following along a curve to the right having a radius of
  1250.27 feet and an arc length of 922.59 feet,
  Thence, continuing generally north along Island Ave. N04°20'40"E,
  222.19 feet,
  Thence, following along a curve to the left having a radius of
  777.53 feet and an arc length of 437.02 feet,
  Thence, following along a curve to the right having a radius of
  573.56 feet and an arc length of 289.72 feet,
  Thence, N00°00'00"W, 1320.52 feet,
  Thence, N67°19'01"E, 52.43 feet,
  Thence, N45°42'19"E, 51.62 feet,
  Thence, N07°16'44"E, 124.96 feet,
  Thence, N35°58'29"W, 55.40 feet,
  Thence, N02°09'44W, 23.47 feet, to the approximate POINT OF
  BEGINNING and containing 97.01 acres.
  36.50 Acres:
  Excluding an area being 36.50 acres situated within the afore
  mentioned 182. 42 acres, and being more particularly described as
  follows:
  Beginning at a point situated approximately 700.00 feet east of the
  approximate intersection of N. Shore Dr. and Yturria St., said
  point being the POINT OF BEGINNING,
  Thence, continuing along a shoreline with the following calls:
  Following along a curve to the right having a radius of 146.44 feet
  and an arc length of 179.23 feet,
  Thence, N88°34'07"W, 59.23 feet,
  Thence, S81°35'31"W, 212.48 feet,
  Thence, S52°03'09"W, 170.82 feet,
  Thence, S60°00'52"W, 165.71 feet,
  Thence, S43°44'31"W, 94.20 feet,
  Thence, S51°21'18"W, 113.71 feet,
  Thence, S37°43'13"W, 346.57 feet,
  Thence, following along a curve to the left having a radius of
  360.58 feet and an arc length of 220.18 feet,
  Thence, S01°45'48"E, 122.64 feet,
  Thence, following along a curve to the left having a radius of
  1419.42 feet and an arc length of 277.22 feet,
  Thence, S17°12'41"E, 720.75 feet,
  Thence, N61°12'07"E, 42.91 feet,
  Thence, following along a curve to the right having a radius of
  217.02 feet and an arc length of 170.89 feet,
  Thence, S74°43'17"E, 303.06 feet,
  Thence, S86°44'59"E, 82.86 feet,
  Thence, N72°02'59"E, 137.36 feet,
  Thence, N58°15'14"E, 165.73 feet,
  Thence, N01°30'30"E, 51.00 feet,
  Thence, N54°15'37"E, 124.02 feet,
  Thence, following along a curve to the left having a radius of
  110.46 feet and an arc length of 95.48 feet,
  Thence, N04°42'37"E, 114.42 feet,
  Thence, S89°07'57"W, 88.60 feet,
  Thence, S29°33'06"W, 92.53 feet,
  Thence, S35°24'33"W, 125.10 feet,
  Thence, N61°53'20"W, 88.26 feet,
  Thence, N29°13'06"E, 247.48 feet,
  Thence, following along a curve to the left having a radius of
  1357.61feet and an arc length of 147.15 feet,
  Thence, N09°00'46"E, 54.80 feet,
  Thence, N11°50'53"E, 94.86 feet,
  Thence, following along a curve to the right having a radius of
  225.45feet and an arc length of 108.46 feet,
  Thence, N71°20'07"E, 70.18 feet, to a point on the western
  right-of-way of Island Ave.
  Thence, S00°00'00"W, 337.14 feet,
  Thence, following along a curve to the left having a radius of
  734.06feet and an arc length of 282.24 feet,
  Thence, following along a curve to the right having a radius of
  777.53feet and an arc length of 437.02 feet,
  Thence, S04°20'40"W, 222.19 feet,
  Thence, N84°02'49"W, 784,86 feet,
  Thence, following along a curve to the right having a radius of
  2763.89 feet and an arc length of 887.31 feet,
  Thence, N68°12'13"W, 318.83 feet,
  Thence, N00°00'38"W, 992.66 feet,
  Thence, S90°00'00"E, 288.23 feet,
  Thence, N30°19'02"E, 885.93 feet,
  Thence, N27°42'48"E, 212.40 feet,
  Thence, Following along a curve to the right having a radius of
  3481.45 feet and an arc length of 515.77 feet;
  Thence, continuing generally north along Island Ave. N80°34'06"E,
  284.43 feet to the approximate POINT OF BEGINNING and containing
  36.50 acres.
  Harbor Island Dr:
  Excluding an area being 3.81 acres situated within the afore
  mentioned 182.42 acres, said area partially encompassing Harbor
  Island Dr. and being more particularly described as follows:
  Beginning at a point situated approximately 93.0 feet northwest of
  the approximate intersection of Harbor Island Dr. and Island Ave.,
  said intersection being the POINT OF BEGINNING,
  Thence, continuing in a southerly direction along with the west
  right-of-way of Island Ave. with the following calls:
  S00°22'36"E, 239.66 feet
  Thence, N51°07'58"W, 48.22 feet,
  Thence, S81°59'37"W 165.11 feet,
  Thence, S54°05'12"W, 472.53 feet,
  Thence, N46°24'16"E, 59.39 feet,
  Thence, S50°19'46"W, 91.11 feet,
  Thence, N47°03'38"W, 59.11 feet,
  Thence, N65°33'01"W, 52.83 feet,
  Thence, N26°31'28"E, 97.24 feet,
  Thence, N52°36'42"E, 388.69 feet,
  Thence, N64°30'00"W, 236.16 feet,
  Thence, N75°43'05"E, 132.47 feet,
  Thence, N85°31'47"E, 93.17 feet, to the approximate POINT OF
  BEGINNING and containing 3.81 acres.
  The total acreage for said 182.42 acre tract excluding said three
  areas totaling 137.32 acres described herein totals 45.10 acres.
         SECTION 3.  (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,
  lieutenant governor, and 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 have been
  fulfilled and accomplished.
         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, 2011.
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