Bill Text: TX HB4299 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to the creation of Port Neches Improvement District; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-05-19 - Laid on the table subject to call [HB4299 Detail]

Download: Texas-2017-HB4299-Introduced.html
  85R10736 SMT-F
 
  By: Phelan H.B. No. 4299
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of Port Neches Improvement District;
  providing authority to issue bonds; providing authority to impose
  assessments, fees, or taxes.
         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 3956 to read as follows:
  CHAPTER 3956.  PORT NECHES IMPROVEMENT DISTRICT
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 3956.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Port Neches.
               (3)  "County" means Jefferson County.
               (4)  "Director" means a board member.
               (5)  "District" means the Port Neches Improvement
  District.
         Sec. 3956.002.  NATURE OF DISTRICT. The Port Neches
  Improvement District is a special district created under Section
  59, Article XVI, Texas Constitution.
         Sec. 3956.003.  PURPOSE; DECLARATION OF INTENT. (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, the
  county, 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)  This chapter and the creation of the district may not be
  interpreted to relieve the city or the county from providing the
  level of services provided as of the effective date of the Act
  enacting this chapter to the area in the district. The district is
  created to supplement and not to supplant city or county services
  provided in the district.
         Sec. 3956.004.  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; and
               (3)  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 community and business center;
               (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;
               (4)  provide for road and recreational facilities for
  the district; and
               (5)  provide for water, wastewater, drainage, canals,
  waterways, bulkheads, docks, and other similar improvement
  facilities for the district.
         (e)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, parking, and street art objects are parts of and
  necessary components of a street and are considered to be 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. 3956.005.  DISTRICT TERRITORY. (a) The district is
  initially composed of the territory described by Section 2 of the
  Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure. A mistake in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bonds for the purposes
  for which the district is created or to pay the principal of and
  interest on the bonds;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3956.006.  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 under
  Chapter 311, Tax Code;
               (2)  a tax abatement reinvestment zone created under
  Chapter 312, Tax Code;
               (3)  an enterprise zone created under Chapter 2303,
  Government Code; or
               (4)  an industrial district created under Chapter 42,
  Local Government Code.
         Sec. 3956.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3956.008.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3956.051.  GOVERNING BODY; TERMS. The district is
  governed by a board of seven voting directors who serve staggered
  terms of two years, with three or four directors' terms expiring
  June 1 of each year.
         Sec. 3956.052.  ELIGIBILITY OF DIRECTORS. A person is
  eligible to serve as a voting or nonvoting director only if the
  person is eligible to register to vote under Section 13.001,
  Election Code.
         Sec. 3956.053.  APPOINTMENT OF VOTING DIRECTORS. The
  governing body of the city, including the mayor, shall appoint the
  voting directors. A person is appointed if a majority of the
  members of the governing body vote to appoint that person.
         Sec. 3956.054.  NONVOTING DIRECTORS. The board may appoint
  nonvoting directors to serve at the pleasure of the voting
  directors.
         Sec. 3956.055.  QUORUM. For purposes of determining the
  requirements for a quorum of the board, the following are not
  counted:
               (1)  a board position vacant for any reason, including
  death, resignation, or disqualification;
               (2)  a director who is abstaining from participation in
  a vote because of a conflict of interest; or
               (3)  a nonvoting director.
         Sec. 3956.056.  COMPENSATION. A director is entitled to
  receive fees of office and reimbursement for actual expenses as
  provided by Section 49.060, Water Code. Sections 375.069 and
  375.070, Local Government Code, do not apply to the board.
         Sec. 3956.057.  INITIAL VOTING DIRECTORS.  (a) The initial
  board consists of the following directors:
 
Pos. No. Name of Director
 
1. David LeJeune
 
2. Leslie Symmonds
 
3. Olin Clotiaux
 
4. Doug Savant
 
5. Lance Bradley
 
6. Kathy Levingston
 
7. Aspen Hebert
         (b)  Of the initial directors, the terms of directors
  appointed for positions one through four expire June 1, 2018, and
  the terms of directors appointed for positions five through seven
  expire June 1, 2019.
         (c)  Section 3956.053 does not apply to this section.
         (d)  This section expires September 1, 2019.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3956.101.  GENERAL POWERS AND DUTIES. The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3956.102.  IMPROVEMENT PROJECTS AND SERVICES. The
  district may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service using any money available to the district, or contract with
  a governmental or private entity to provide, design, construct,
  acquire, improve, relocate, operate, maintain, or finance an
  improvement project or service authorized under this chapter or
  Chapter 375, Local Government Code.
         Sec. 3956.103.  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. 3956.104.  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. 3956.105.  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.
  The district shall promptly notify the city of any gift or grant
  accepted by the district.
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  Code.
         Sec. 3956.106.  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. 3956.107.  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. 3956.108.  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. 3956.109.  ANNEXATION OF LAND. The district may annex
  land as provided by Subchapter J, Chapter 49, Water Code.
         Sec. 3956.110.  NAVIGATION DISTRICT POWERS. The district
  has the powers provided by the general law of this state applicable
  to navigation districts created under Section 59, Article XVI,
  Texas Constitution, including Chapters 60 and 62, Water Code.
         Sec. 3956.111.  APPROVAL BY CITY.  (a)  Except as provided
  by Subsection (c), the district must obtain the approval of the city
  for:
               (1)  the issuance of bonds or any other obligations,
  subject to Section 3956.201 or 3956.203;
               (2)  the plans and specifications of an improvement
  project financed by bonds; and
               (3)  the plans and specifications of an improvement
  project related to the use of land owned by the city, an easement
  granted to or by the city, or a right-of-way of a street, road, or
  highway.
         (b)  The district may not issue bonds until the governing
  body of the city adopts a resolution or ordinance authorizing the
  issuance of the bonds.
         (c)  If the district obtains the approval of the city's
  governing body of a capital improvements budget for a period not to
  exceed five years, the district may finance the capital
  improvements and issue bonds specified in the budget without
  further approval from the city.
         (d)  The governing body of the city:
               (1)  is not required to adopt a resolution or ordinance
  to approve plans and specifications described by Subsection (a);
  and
               (2)  may establish an administrative process to approve
  plans and specifications described by Subsection (a) without the
  involvement of the governing body.
         Sec. 3956.112.  CONSENT OF CITY REQUIRED. The district may
  not take any of the following actions until the city has consented
  by ordinance or resolution to the creation of the district and to
  the inclusion of land in the district:
               (1)  hold an election under Subchapter L, Chapter 375,
  Local Government Code;
               (2)  impose an ad valorem tax;
               (3)  impose an assessment;
               (4)  issue bonds; or
               (5)  enter into an agreement to reimburse the costs of
  facilities.
         Sec. 3956.113.  NO EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
         Sec. 3956.151.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of district money.
         Sec. 3956.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
  The district may acquire, construct, finance, operate, or maintain
  any improvement or service authorized under this chapter or Chapter
  375, Local Government Code, using any money available to the
  district.
         Sec. 3956.153.  PETITION REQUIRED FOR FINANCING SERVICES AND
  IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
  service or improvement project with assessments under this chapter
  unless a written petition requesting that service or improvement
  has been filed with the board.
         (b)  A petition filed under Subsection (a) must be signed by
  the owners of a majority of the assessed value of real property in
  the district subject to assessment according to the most recent
  certified tax appraisal roll for the county.
         Sec. 3956.154.  ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
  The board by resolution may impose and collect an assessment for any
  purpose authorized by this chapter in all or any part of the
  district.
         (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;
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  are the personal liability of and a charge against
  the owners of the property even if the owners are not named in the
  assessment proceedings.
         (c)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         (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.
  SUBCHAPTER E. TAXES AND BONDS
         Sec. 3956.201.  ELECTIONS REGARDING TAXES AND BONDS. (a)
  The district may issue, without an election, bonds, notes, and
  other obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 3956.203.
         (b)  The district must hold an election in the manner
  provided by Subchapter L, Chapter 375, Local Government Code, to
  obtain voter approval before the district may impose an ad valorem
  tax or issue bonds payable from ad valorem taxes.
         (c)  Section 375.243, Local Government Code, does not apply
  to the district.
         (d)  All or any part of any facilities or improvements that
  may be acquired by a district by the issuance of its bonds may be
  submitted as a single proposition or as several propositions to be
  voted on at the election.
         Sec. 3956.202.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized by a majority of the district voters voting at an
  election held in accordance with Section 3956.201, the district may
  impose an operation and maintenance tax on taxable property in the
  district in accordance with Section 49.107, Water Code, for any
  district purpose, including to:
               (1)  maintain and operate the district;
               (2)  construct or acquire improvements; or
               (3)  provide a service.
         (b)  The board shall determine the tax rate. The rate may not
  exceed the rate approved at the election.
         Sec. 3956.203.  CONTRACT TAXES. (a) In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
         Sec. 3956.204.  AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
  AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
  determined by the board. Section 375.205, Local Government Code,
  does not apply to a loan, line of credit, or other borrowing from a
  bank or financial institution secured by revenue other than ad
  valorem taxes.
         (b)  The district may issue bonds, notes, or other
  obligations payable wholly or partly from ad valorem taxes,
  assessments, impact fees, revenue, contract payments, grants, or
  other district money, or any combination of those sources of money,
  to pay for any authorized district purpose.
         Sec. 3956.205.  TAXES FOR BONDS. At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct annual ad valorem tax, without limit as to rate or amount,
  for each year that all or part of the bonds are outstanding as
  required and in the manner provided by Sections 54.601 and 54.602,
  Water Code.
         Sec. 3956.206.  MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
  OBLIGATIONS. Except as provided by Section 375.263, Local
  Government Code, a municipality is not required to pay bonds,
  notes, or other obligations of the district.
         SECTION 2.  The Port Neches Improvement District initially
  includes all territory contained in the following area:
  Lots one through eighteen (1-18), Block One (1), Oaks Subdivision
  of the City of Port Neches, Jefferson County, Texas as per the plat
  of said subdivision recorded in Volume 1, page 100, map records of
  said county.
  Lots three through thirty-three (3-33), Block Two (2), Oaks
  Subdivision of the City of Port Neches, Jefferson County, Texas as
  per the plat of said subdivision recorded in Volume 1, page 100, map
  records of said county.
  Lots one through five (1-5), Block Eighteen (18), of Oaks Addition,
  an Addition to the City of Port Neches, Jefferson County, Texas,
  according to the map or plat thereof, of record in Volume 1, page
  100, Map Records of Jefferson County, Texas.
         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, the
  lieutenant governor, and the speaker of the house of
  representatives within the required time.
         (d)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act are fulfilled
  and accomplished.
         SECTION 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, 2017.
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