Bill Text: TX SB605 | 2013-2014 | 83rd Legislature | Enrolled

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Bill Title: Relating to the creation of the Fort Bend County Improvement District No. 24; providing authority to impose an assessment, impose a tax, and issue bonds.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2013-06-14 - Effective immediately [SB605 Detail]

Download: Texas-2013-SB605-Enrolled.html

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S.B. No. 605

AN ACT
relating to the creation of the Fort Bend County Improvement
District No. 24; providing authority to impose an assessment,
impose a tax, and issue bonds.
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 3898 to read as follows:
CHAPTER 3898. FORT BEND COUNTY IMPROVEMENT DISTRICT NO. 24
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3898.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Houston.
(3) "County" means Fort Bend County.
(4) "Director" means a board member.
(5) "District" means the Fort Bend County Improvement
District No. 24.
Sec. 3898.002. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Section 59, Article
XVI, Texas Constitution.
Sec. 3898.003. 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. 3898.004. 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) developing or expanding transportation and
commerce; and
(4) providing quality residential housing.
(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 business
center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping,
removing graffiti from, 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. 3898.005. 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 bond for the purposes
for which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3898.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
(a) 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.
(b) If the city creates a tax increment reinvestment zone
described by Subsection (a), the city and the board of directors of
the zone, by contract with 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. A project may not receive public funds
under Section 380.002(b), Local Government Code, unless the project
has been approved by the governing body of the city.
(c) A tax increment reinvestment zone created by the city in
the district is not subject to the limitations provided by Section
311.006(b), Tax Code.
Sec. 3898.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3898.008. 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. 3898.051. 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. 3898.052. QUALIFICATIONS OF DIRECTORS APPOINTED BY
CITY. (a) To be qualified to serve as a director appointed by the
governing body of the city, a person must be:
(1) a resident of the district who is also a registered
voter of the district;
(2) an owner of property in the district;
(3) an owner of stock or a partnership or membership
interest, whether beneficial or otherwise, of a corporate
partnership, limited liability company, or other entity owner of a
direct or indirect interest in property in the district;
(4) an owner of a beneficial interest in a trust, or a
trustee in a trust, that directly or indirectly owns property in the
district;
(5) an agent, employee, or tenant of a person
described by Subdivision (2), (3), or (4); or
(6) an initial director under Section 3898.062.
(b) Section 49.052, Water Code, does not apply to the
district.
Sec. 3898.053. APPOINTMENT OF DIRECTORS. The governing
body of the city shall appoint directors from persons recommended
by the board.
Sec. 3898.054. VACANCY. If a vacancy occurs on the board,
the remaining directors shall appoint a director for the remainder
of the unexpired term.
Sec. 3898.055. DIRECTOR'S OATH OR AFFIRMATION. (a) 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.
(b) A director shall file a copy of the director's oath or
affirmation with the secretary of the city.
Sec. 3898.056. QUORUM. A vacant director position is not
counted for purposes of establishing a quorum.
Sec. 3898.057. 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. 3898.058. 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 the board.
Sec. 3898.059. LIABILITY INSURANCE. 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. 3898.060. NO EXECUTIVE COMMITTEE. The board may not
create an executive committee to exercise the powers of the board.
Sec. 3898.061. BOARD MEETINGS. The board shall hold
meetings at a place accessible to the public.
Sec. 3898.062. INITIAL DIRECTORS. (a) The initial board
consists of:
Pos. No. Name of Director
1 Jim Foreman
2 Erin Dyer
3 Scott Leafe
4 Belinda Meller
5 David Foor
(b) The terms of the initial directors expire June 1, 2015.
(c) Of the directors who replace an initial director, the
terms of directors serving in positions 1, 2, and 3 expire June 1,
2017, and the terms of directors serving in positions 4 and 5 expire
June 1, 2019.
(d) Section 3898.052 does not apply to this section.
(e) This section expires September 1, 2019.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3898.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3898.102. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service using 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. 3898.103. LOCATION OF IMPROVEMENT PROJECT. An
improvement project described by Section 3898.102 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. 3898.104. 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. 3898.105. 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. 3898.106. 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. 3898.107. 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. 3898.108. 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. 3898.109. 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. 3898.110. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3898.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of signatures and
the procedure required for a disbursement or transfer of the
district's money.
Sec. 3898.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
an improvement project or service authorized under this chapter or
Chapter 375, Local Government Code, using any money available to
the district.
Sec. 3898.153. 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 sales and
use tax or an assessment, user fee, concession fee, or rental
charge; or
(2) any other revenue or resources of the district, or
other revenue authorized by the city, including revenues from a tax
increment reinvestment zone created by the city under applicable
law.
Sec. 3898.154. 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) The petition must be signed by:
(1) 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; or
(2) at least 25 persons who own real property in the
district subject to assessment, if more than 25 persons own real
property in the district subject to assessment as determined by the
most recent certified tax appraisal roll for the county.
Sec. 3898.155. METHOD OF NOTICE FOR HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified or first class United States mail.
The board shall determine the method of notice.
Sec. 3898.156. 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.
Sec. 3898.157. 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. 3898.158. 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 city.
Sec. 3898.159. COSTS FOR IMPROVEMENT PROJECTS. The
district may undertake separately or jointly with other persons,
including the city or county, 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 in or adjacent to the district; or
(2) that confers a general benefit on the entire
district or a special benefit on a definable part of the district.
Sec. 3898.160. TAX AND ASSESSMENT ABATEMENTS. The district
may designate reinvestment zones and may grant abatements of a tax
or assessment on property in the zones.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3898.201. 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. 3898.202. PROPERTY TAX AUTHORIZED. (a) 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).
(b) The district may not impose an ad valorem tax to pay for
an improvement project under this chapter unless the imposition is
approved by the voters of the district voting at an election held
for that purpose. The board may call an election to approve the
imposition of an ad valorem tax to pay for an improvement project
under this chapter only if the board receives a petition requesting
the election signed by:
(1) more than 51 percent of the record owners of real
property in the district subject to taxation; or
(2) owners representing more than 51 percent of the
appraised value of real property in the district subject to
taxation, as determined by the tax rolls of the appraisal district.
Sec. 3898.203. SALES AND USE TAX. (a) The district may
impose a sales and use tax if authorized by a majority of the voters
of the district voting at an election called for that purpose.
Revenue from the tax may be used for any purpose for which ad
valorem tax revenue of the district may be used.
(b) The district may not adopt a sales and use tax if as a
result of the adoption of the tax the combined rate of all sales and
use taxes imposed by the district and other political subdivisions
of this state having territory in the district would exceed two
percent at any location in the district.
(c) If the voters of the district approve the adoption of
the tax at an election held on the same election date on which
another political subdivision adopts a sales and use tax or
approves an increase in the rate of its sales and use tax and as a
result the combined rate of all sales and use taxes imposed by the
district and other political subdivisions of this state having
territory in the district would exceed two percent at any location
in the district, the election to adopt a sales and use tax under
this chapter has no effect.
Sec. 3898.204. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue, by public or private sale, bonds, notes, or
other obligations payable wholly or partly from ad valorem taxes,
sales and use taxes, 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
other type of obligation.
(c) In addition to the sources of money described by
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 improvement revenue or from any other source.
Sec. 3898.205. BOND MATURITY. Bonds may mature not more
than 40 years from their date of issue.
Sec. 3898.206. 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.
SUBCHAPTER F. DISSOLUTION
Sec. 3898.251. DISSOLUTION BY CITY ORDINANCE. (a) The
city by ordinance may dissolve the district.
(b) The city may not dissolve the district until the
district's outstanding debt or contractual obligations that are
payable from ad valorem taxes have been repaid or discharged, or the
city has affirmatively assumed the obligation to pay the
outstanding debt from city revenue.
Sec. 3898.252. 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. 3898.253. CONCURRENCE ON ADDITIONAL POWERS. If the
legislature grants the district a power that is in addition to the
powers approved by the initial resolution of the governing body of
the city consenting to the creation of the district, the district
may not exercise that power unless the governing body of the city
consents to that change by resolution.
Sec. 3898.254. ASSUMPTION OF ASSETS AND LIABILITIES.
(a) After the city dissolves the district, the city assumes,
subject to the appropriation and availability of funds, the
obligations of the district, including any bonds or other debt
payable from assessments or other district revenue.
(b) If the city dissolves the district, the board shall
transfer ownership of all district property to the city.
SECTION 2. The Fort Bend County Improvement District No. 24
initially includes all the territory contained in the following
area:
The Fort Bend County Improvement District is comprised of 93.243
acres located at the northeast corner of Farm-to-Market (FM) Road
1093 and FM Road 1463 with the beginning point at the north
right-of-way (ROW) of FM 1093 and east ROW of FM 1463 and the
southwest corner of 8.81 ac. parcel (0274 R H KUYKENDALL, ACRES
8.81); Then north along east ROW of FM 1463 and coincident west
boundary of 8.81 ac. parcel (0274 R H KUYKENDALL, ACRES 8.81), and
84.013 ac. parcel (0421 T W SOUTHERLAND, ACRES 84.013) to northwest
corner of said 84.013 ac. parcel; Then east along north boundary of
said 84.013 ac. parcel to northeast corner of said parcel; Then
south along east boundary of said 84.013 ac. parcel, and 0.42 ac.
parcel (0574 JOHN FOSTER, ACRES .42) to southeast corner of said
0.42 ac. parcel and north ROW of FM 1093; Then west southwest along
south boundary of said 0.42 acre parcel, and 8.81 ac. parcel (0274 R
H KUYKENDALL, ACRES 8.81) to southwest corner of said 8.81 ac.
parcel and beginning point of 93.243 acre tract.
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) The general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with.
(e) 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, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 605 passed the Senate on
March 27, 2013, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 605 passed the House on
May 20, 2013, by the following vote: Yeas 147, Nays 0, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor