Bill Text: TX SB2271 | 2017-2018 | 85th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [SB2271 Detail]
Download: Texas-2017-SB2271-Engrossed.html
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 2-0)
Status: (Enrolled - Dead) 2017-06-12 - Effective immediately [SB2271 Detail]
Download: Texas-2017-SB2271-Engrossed.html
By: Creighton | S.B. No. 2271 |
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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: | ||||||
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(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. |