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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of Port Neches Improvement District; |
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providing authority to issue bonds; providing authority to impose |
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assessments, fees, or taxes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle C, Title 4, Special District Local Laws |
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Code, is amended by adding Chapter 3956 to read as follows: |
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CHAPTER 3956. PORT NECHES IMPROVEMENT DISTRICT |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 3956.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the district's board of directors. |
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(2) "City" means the City of Port Neches. |
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(3) "County" means Jefferson County. |
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(4) "Director" means a board member. |
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(5) "District" means the Port Neches Improvement |
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District. |
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Sec. 3956.002. NATURE OF DISTRICT. The Port Neches |
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Improvement District is a special district created under Section |
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59, Article XVI, Texas Constitution. |
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Sec. 3956.003. PURPOSE; DECLARATION OF INTENT. (a) The |
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creation of the district is essential to accomplish the purposes of |
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Sections 52 and 52-a, Article III, and Section 59, Article XVI, |
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Texas Constitution, and other public purposes stated in this |
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chapter. By creating the district and in authorizing the city, the |
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county, and other political subdivisions to contract with the |
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district, the legislature has established a program to accomplish |
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the public purposes set out in Section 52-a, Article III, Texas |
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Constitution. |
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(b) The creation of the district is necessary to promote, |
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develop, encourage, and maintain employment, commerce, |
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transportation, housing, tourism, recreation, the arts, |
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entertainment, economic development, safety, and the public |
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welfare in the district. |
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(c) This chapter and the creation of the district may not be |
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interpreted to relieve the city or the county from providing the |
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level of services provided as of the effective date of the Act |
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enacting this chapter to the area in the district. The district is |
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created to supplement and not to supplant city or county services |
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provided in the district. |
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Sec. 3956.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) |
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The district is created to serve a public use and benefit. |
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(b) All land and other property included in the district |
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will benefit from the improvements and services to be provided by |
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the district under powers conferred by Sections 52 and 52-a, |
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Article III, and Section 59, Article XVI, Texas Constitution, and |
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other powers granted under this chapter. |
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(c) The creation of the district is in the public interest |
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and is essential to further the public purposes of: |
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(1) developing and diversifying the economy of the |
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state; |
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(2) eliminating unemployment and underemployment; and |
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(3) developing or expanding transportation and |
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commerce. |
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(d) The district will: |
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(1) promote the health, safety, and general welfare of |
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residents, employers, potential employees, employees, visitors, |
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and consumers in the district, and of the public; |
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(2) provide needed funding for the district to |
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preserve, maintain, and enhance the economic health and vitality of |
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the district territory as a community and business center; |
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(3) promote the health, safety, welfare, and enjoyment |
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of the public by providing pedestrian ways and by landscaping and |
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developing certain areas in the district, which are necessary for |
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the restoration, preservation, and enhancement of scenic beauty; |
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(4) provide for road and recreational facilities for |
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the district; and |
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(5) provide for water, wastewater, drainage, canals, |
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waterways, bulkheads, docks, and other similar improvement |
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facilities for the district. |
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(e) Pedestrian ways along or across a street, whether at |
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grade or above or below the surface, and street lighting, street |
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landscaping, parking, and street art objects are parts of and |
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necessary components of a street and are considered to be a street |
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or road improvement. |
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(f) The district will not act as the agent or |
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instrumentality of any private interest even though the district |
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will benefit many private interests as well as the public. |
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Sec. 3956.005. DISTRICT TERRITORY. (a) The district is |
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initially composed of the territory described by Section 2 of the |
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Act enacting this chapter. |
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(b) The boundaries and field notes contained in Section 2 of |
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the Act enacting this chapter form a closure. A mistake in the |
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field notes or in copying the field notes in the legislative process |
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does not affect the district's: |
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(1) organization, existence, or validity; |
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(2) right to issue any type of bonds for the purposes |
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for which the district is created or to pay the principal of and |
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interest on the bonds; |
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(3) right to impose or collect an assessment or tax; or |
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(4) legality or operation. |
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Sec. 3956.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. |
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All or any part of the area of the district is eligible to be |
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included in: |
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(1) a tax increment reinvestment zone created under |
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Chapter 311, Tax Code; |
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(2) a tax abatement reinvestment zone created under |
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Chapter 312, Tax Code; |
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(3) an enterprise zone created under Chapter 2303, |
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Government Code; or |
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(4) an industrial district created under Chapter 42, |
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Local Government Code. |
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Sec. 3956.007. APPLICABILITY OF MUNICIPAL MANAGEMENT |
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DISTRICTS LAW. Except as otherwise provided by this chapter, |
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Chapter 375, Local Government Code, applies to the district. |
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Sec. 3956.008. LIBERAL CONSTRUCTION OF CHAPTER. This |
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chapter shall be liberally construed in conformity with the |
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findings and purposes stated in this chapter. |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 3956.051. GOVERNING BODY; TERMS. The district is |
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governed by a board of seven voting directors who serve staggered |
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terms of two years, with three or four directors' terms expiring |
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June 1 of each year. |
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Sec. 3956.052. ELIGIBILITY OF DIRECTORS. A person is |
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eligible to serve as a voting or nonvoting director only if the |
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person is eligible to register to vote under Section 13.001, |
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Election Code. |
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Sec. 3956.053. APPOINTMENT OF VOTING DIRECTORS. The |
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governing body of the city, including the mayor, shall appoint the |
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voting directors. A person is appointed if a majority of the |
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members of the governing body vote to appoint that person. |
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Sec. 3956.054. NONVOTING DIRECTORS. The board may appoint |
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nonvoting directors to serve at the pleasure of the voting |
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directors. |
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Sec. 3956.055. QUORUM. For purposes of determining the |
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requirements for a quorum of the board, the following are not |
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counted: |
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(1) a board position vacant for any reason, including |
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death, resignation, or disqualification; |
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(2) a director who is abstaining from participation in |
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a vote because of a conflict of interest; or |
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(3) a nonvoting director. |
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Sec. 3956.056. COMPENSATION. A director is entitled to |
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receive fees of office and reimbursement for actual expenses as |
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provided by Section 49.060, Water Code. Sections 375.069 and |
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375.070, Local Government Code, do not apply to the board. |
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Sec. 3956.057. INITIAL VOTING DIRECTORS. (a) The initial |
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board consists of the following directors: |
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Pos. No. |
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Name of Director |
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(b) Of the initial directors, the terms of directors |
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appointed for positions one through four expire June 1, 2018, and |
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the terms of directors appointed for positions five through seven |
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expire June 1, 2019. |
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(c) Section 3956.053 does not apply to this section. |
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(d) This section expires September 1, 2019. |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 3956.101. GENERAL POWERS AND DUTIES. The district has |
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the powers and duties necessary to accomplish the purposes for |
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which the district is created. |
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Sec. 3956.102. IMPROVEMENT PROJECTS AND SERVICES. The |
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district may provide, design, construct, acquire, improve, |
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relocate, operate, maintain, or finance an improvement project or |
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service using any money available to the district, or contract with |
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a governmental or private entity to provide, design, construct, |
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acquire, improve, relocate, operate, maintain, or finance an |
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improvement project or service authorized under this chapter or |
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Chapter 375, Local Government Code. |
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Sec. 3956.103. DEVELOPMENT CORPORATION POWERS. The |
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district, using money available to the district, may exercise the |
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powers given to a development corporation under Chapter 505, Local |
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Government Code, including the power to own, operate, acquire, |
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construct, lease, improve, or maintain a project under that |
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chapter. |
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Sec. 3956.104. NONPROFIT CORPORATION. (a) The board by |
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resolution may authorize the creation of a nonprofit corporation to |
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assist and act for the district in implementing a project or |
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providing a service authorized by this chapter. |
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(b) The nonprofit corporation: |
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(1) has each power of and is considered to be a local |
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government corporation created under Subchapter D, Chapter 431, |
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Transportation Code; and |
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(2) may implement any project and provide any service |
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authorized by this chapter. |
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(c) The board shall appoint the board of directors of the |
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nonprofit corporation. The board of directors of the nonprofit |
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corporation shall serve in the same manner as the board of directors |
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of a local government corporation created under Subchapter D, |
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Chapter 431, Transportation Code, except that a board member is not |
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required to reside in the district. |
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Sec. 3956.105. AGREEMENTS; GRANTS. (a) As provided by |
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Chapter 375, Local Government Code, the district may make an |
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agreement with or accept a gift, grant, or loan from any person. |
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The district shall promptly notify the city of any gift or grant |
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accepted by the district. |
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(b) The implementation of a project is a governmental |
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function or service for the purposes of Chapter 791, Government |
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Code. |
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Sec. 3956.106. LAW ENFORCEMENT SERVICES. To protect the |
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public interest, the district may contract with a qualified party, |
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including the county or the city, to provide law enforcement |
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services in the district for a fee. |
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Sec. 3956.107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The |
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district may join and pay dues to a charitable or nonprofit |
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organization that performs a service or provides an activity |
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consistent with the furtherance of a district purpose. |
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Sec. 3956.108. PARKING FACILITIES. (a) The district may |
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acquire, lease as lessor or lessee, construct, develop, own, |
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operate, and maintain parking facilities or a system of parking |
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facilities, including lots, garages, parking terminals, or other |
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structures or accommodations for parking motor vehicles off the |
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streets and related appurtenances. |
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(b) The district's parking facilities serve the public |
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purposes of the district and are owned, used, and held for a public |
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purpose even if leased or operated by a private entity for a term of |
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years. |
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(c) The district's parking facilities are parts of and |
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necessary components of a street and are considered to be a street |
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or road improvement. |
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(d) The development and operation of the district's parking |
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facilities may be considered an economic development program. |
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Sec. 3956.109. ANNEXATION OF LAND. The district may annex |
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land as provided by Subchapter J, Chapter 49, Water Code. |
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Sec. 3956.110. NAVIGATION DISTRICT POWERS. The district |
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has the powers provided by the general law of this state applicable |
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to navigation districts created under Section 59, Article XVI, |
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Texas Constitution, including Chapters 60 and 62, Water Code. |
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Sec. 3956.111. APPROVAL BY CITY. (a) Except as provided |
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by Subsection (c), the district must obtain the approval of the city |
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for: |
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(1) the issuance of bonds or any other obligations, |
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subject to Section 3956.201 or 3956.203; |
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(2) the plans and specifications of an improvement |
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project financed by bonds; and |
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(3) the plans and specifications of an improvement |
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project related to the use of land owned by the city, an easement |
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granted to or by the city, or a right-of-way of a street, road, or |
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highway. |
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(b) The district may not issue bonds until the governing |
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body of the city adopts a resolution or ordinance authorizing the |
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issuance of the bonds. |
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(c) If the district obtains the approval of the city's |
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governing body of a capital improvements budget for a period not to |
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exceed five years, the district may finance the capital |
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improvements and issue bonds specified in the budget without |
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further approval from the city. |
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(d) The governing body of the city: |
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(1) is not required to adopt a resolution or ordinance |
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to approve plans and specifications described by Subsection (a); |
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and |
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(2) may establish an administrative process to approve |
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plans and specifications described by Subsection (a) without the |
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involvement of the governing body. |
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Sec. 3956.112. CONSENT OF CITY REQUIRED. The district may |
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not take any of the following actions until the city has consented |
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by ordinance or resolution to the creation of the district and to |
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the inclusion of land in the district: |
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(1) hold an election under Subchapter L, Chapter 375, |
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Local Government Code; |
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(2) impose an ad valorem tax; |
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(3) impose an assessment; |
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(4) issue bonds; or |
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(5) enter into an agreement to reimburse the costs of |
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facilities. |
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Sec. 3956.113. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS |
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Sec. 3956.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The |
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board by resolution shall establish the number of directors' |
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signatures and the procedure required for a disbursement or |
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transfer of district money. |
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Sec. 3956.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. |
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The district may acquire, construct, finance, operate, or maintain |
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any improvement or service authorized under this chapter or Chapter |
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375, Local Government Code, using any money available to the |
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district. |
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Sec. 3956.153. PETITION REQUIRED FOR FINANCING SERVICES AND |
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IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a |
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service or improvement project with assessments under this chapter |
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unless a written petition requesting that service or improvement |
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has been filed with the board. |
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(b) A petition filed under Subsection (a) must be signed by |
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the owners of a majority of the assessed value of real property in |
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the district subject to assessment according to the most recent |
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certified tax appraisal roll for the county. |
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Sec. 3956.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) |
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The board by resolution may impose and collect an assessment for any |
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purpose authorized by this chapter in all or any part of the |
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district. |
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(b) An assessment, a reassessment, or an assessment |
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resulting from an addition to or correction of the assessment roll |
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by the district, penalties and interest on an assessment or |
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reassessment, an expense of collection, and reasonable attorney's |
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fees incurred by the district: |
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(1) are a first and prior lien against the property |
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assessed; |
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(2) are superior to any other lien or claim other than |
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a lien or claim for county, school district, or municipal ad valorem |
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taxes; and |
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(3) are the personal liability of and a charge against |
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the owners of the property even if the owners are not named in the |
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assessment proceedings. |
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(c) The lien is effective from the date of the board's |
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resolution imposing the assessment until the date the assessment is |
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paid. The board may enforce the lien in the same manner that the |
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board may enforce an ad valorem tax lien against real property. |
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(d) The board may make a correction to or deletion from the |
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assessment roll that does not increase the amount of assessment of |
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any parcel of land without providing notice and holding a hearing in |
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the manner required for additional assessments. |
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SUBCHAPTER E. TAXES AND BONDS |
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Sec. 3956.201. ELECTIONS REGARDING TAXES AND BONDS. (a) |
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The district may issue, without an election, bonds, notes, and |
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other obligations secured by: |
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(1) revenue other than ad valorem taxes; or |
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(2) contract payments described by Section 3956.203. |
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(b) The district must hold an election in the manner |
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provided by Subchapter L, Chapter 375, Local Government Code, to |
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obtain voter approval before the district may impose an ad valorem |
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tax or issue bonds payable from ad valorem taxes. |
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(c) Section 375.243, Local Government Code, does not apply |
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to the district. |
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(d) All or any part of any facilities or improvements that |
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may be acquired by a district by the issuance of its bonds may be |
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submitted as a single proposition or as several propositions to be |
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voted on at the election. |
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Sec. 3956.202. OPERATION AND MAINTENANCE TAX. (a) If |
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authorized by a majority of the district voters voting at an |
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election held in accordance with Section 3956.201, the district may |
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impose an operation and maintenance tax on taxable property in the |
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district in accordance with Section 49.107, Water Code, for any |
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district purpose, including to: |
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(1) maintain and operate the district; |
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(2) construct or acquire improvements; or |
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(3) provide a service. |
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(b) The board shall determine the tax rate. The rate may not |
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exceed the rate approved at the election. |
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Sec. 3956.203. CONTRACT TAXES. (a) In accordance with |
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Section 49.108, Water Code, the district may impose a tax other than |
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an operation and maintenance tax and use the revenue derived from |
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the tax to make payments under a contract after the provisions of |
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the contract have been approved by a majority of the district voters |
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voting at an election held for that purpose. |
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(b) A contract approved by the district voters may contain a |
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provision stating that the contract may be modified or amended by |
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the board without further voter approval. |
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Sec. 3956.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS |
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AND OTHER OBLIGATIONS. (a) The district may borrow money on terms |
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determined by the board. Section 375.205, Local Government Code, |
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does not apply to a loan, line of credit, or other borrowing from a |
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bank or financial institution secured by revenue other than ad |
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valorem taxes. |
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(b) The district may issue bonds, notes, or other |
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obligations payable wholly or partly from ad valorem taxes, |
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assessments, impact fees, revenue, contract payments, grants, or |
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other district money, or any combination of those sources of money, |
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to pay for any authorized district purpose. |
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Sec. 3956.205. TAXES FOR BONDS. At the time the district |
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issues bonds payable wholly or partly from ad valorem taxes, the |
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board shall provide for the annual imposition of a continuing |
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direct annual ad valorem tax, without limit as to rate or amount, |
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for each year that all or part of the bonds are outstanding as |
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required and in the manner provided by Sections 54.601 and 54.602, |
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Water Code. |
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Sec. 3956.206. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT |
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OBLIGATIONS. Except as provided by Section 375.263, Local |
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Government Code, a municipality is not required to pay bonds, |
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notes, or other obligations of the district. |
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|
SECTION 2. The Port Neches Improvement District initially |
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includes all territory contained in the following area: |
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Lots one through eighteen (1-18), Block One (1), Oaks Subdivision |
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of the City of Port Neches, Jefferson County, Texas as per the plat |
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of said subdivision recorded in Volume 1, page 100, map records of |
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said county. |
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Lots three through thirty-three (3-33), Block Two (2), Oaks |
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Subdivision of the City of Port Neches, Jefferson County, Texas as |
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per the plat of said subdivision recorded in Volume 1, page 100, map |
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records of said county. |
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Lots one through five (1-5), Block Eighteen (18), of Oaks Addition, |
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an Addition to the City of Port Neches, Jefferson County, Texas, |
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according to the map or plat thereof, of record in Volume 1, page |
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100, Map Records of Jefferson County, Texas. |
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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. |
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|
(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. |
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|
(d) All requirements of the constitution and laws of this |
|
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state and the rules and procedures of the legislature with respect |
|
|
to the notice, introduction, and passage of this Act are fulfilled |
|
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and accomplished. |
|
|
SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |
