By: Lucio S.B. No. 1922 (Oliveira) A BILL TO BE ENTITLED AN ACT relating to the creation of the Port Isabel Improvement District No. 1; providing authority to impose a tax and issue bonds; granting a limited power of eminent domain. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3906 to read as follows: CHAPTER 3906. PORT ISABEL IMPROVEMENT DISTRICT NO. 1 SUBCHAPTER A. GENERAL PROVISIONS Sec. 3906.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means the City of Port Isabel. (3) "Director" means a board member. (4) "District" means the Port Isabel Improvement District No. 1. Sec. 3906.002. CREATION AND NATURE OF DISTRICT. The district is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 3906.003. PURPOSE; LEGISLATIVE FINDINGS. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter. By creating the district and in authorizing the city and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution. (b) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district. (c) The district is created to supplement and not to supplant city services provided in the district. Sec. 3906.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. (b) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter. (c) The creation of the district is in the public interest and is essential to further the public purposes of: (1) developing and diversifying the economy of the state; (2) eliminating unemployment and underemployment; (3) providing quality residential housing; and (4) developing or expanding transportation and commerce. (d) The district will: (1) promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public; (2) provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a residential community; and (3) promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty. (e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, vehicle parking, and street art objects are parts of and necessary components of a street and are considered to be an improvement project that includes a street or road improvement. (f) The district will not act as the agent or instrumentality of any private interest even though the district will benefit many private interests as well as the public. Sec. 3906.005. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2 of the Act enacting this chapter, as that territory may have been modified under Section 3906.113 or other law. (b) A mistake in the field notes of the district contained in Section 2 of the Act enacting this chapter or in copying the field notes in the legislative process does not in any way affect: (1) the district's organization, existence, or validity; (2) the district's right to contract, including the right to issue any type of bond or other obligation for a purpose for which the district is created; (3) the district's right to impose or collect an assessment, tax, or any other revenue; or (4) the legality or operation of the board. Sec. 3906.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in: (1) a tax increment reinvestment zone created by the city under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone created by the city under Chapter 312, Tax Code; (3) an enterprise zone created by the city under Chapter 2303, Government Code; or (4) an industrial district created by the city under Chapter 42, Local Government Code. [Sections 3906.007-3906.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 3906.051. GOVERNING BODY; TERMS. The district is governed by a board of five directors who serve staggered terms of four years, with two or three directors' terms expiring June 1 of each odd-numbered year. Sec. 3906.052. APPOINTMENT OF DIRECTORS. The governing body of the city shall appoint directors. Four directors must be appointed from persons recommended by the board as provided by Section 375.064, Local Government Code. Sec. 3906.053. QUALIFICATIONS. (a) The four directors recommended by the board must meet the qualifications described by Section 54.102, Water Code, and by Section 375.064, Local Government Code. (b) Section 49.052, Water Code, does not apply to the district. Sec. 3906.054. AFFIDAVIT AND ABSTENTION FROM VOTING REQUIRED. A director shall comply with Section 171.004, Local Government Code, including the disclosure and abstention requirements of that section. Sec. 3906.055. REMOVAL OF DIRECTORS. Section 375.065, Local Government Code, governs the removal of directors. Sec. 3906.056. DIRECTOR'S OATH OR AFFIRMATION. A director shall file the director's oath or affirmation of office with the district, and the district shall retain the oath or affirmation in the district records. Sec. 3906.057. OFFICERS. The board shall elect from among the directors a chair, a vice chair, and a secretary. The offices of chair and secretary may not be held by the same person. Sec. 3906.058. COMPENSATION; EXPENSES. (a) The district may compensate each director in an amount not to exceed $50 for each board meeting. The total amount of compensation a director may receive each year may not exceed $2,000. (b) A director is entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of a director. Sec. 3906.059. LIABILITY INSURANCE FOR DIRECTORS. The district may obtain and pay for comprehensive general liability insurance coverage from a commercial insurance company or other source that protects and insures a director against personal liability and from all claims relating to: (1) actions taken by the director in the director's capacity as a member of the board; (2) actions and activities taken by the district; or (3) the actions of others acting on behalf of the district. Sec. 3906.060. INITIAL DIRECTORS. (a) Not later than the 60th day after the effective date of the Act enacting this chapter, the governing body of the city shall appoint an initial board of five directors. (b) At least three of the initial directors must: (1) reside in the district; (2) own land in the district; or (3) be an agent of a person who owns land in the district. (c) The terms of two initial directors expire June 1, 2013, and the terms of three initial directors expire June 1, 2015. (d) This section expires September 1, 2015. [Sections 3906.061-3906.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 3906.101. IMPROVEMENT PROJECTS. The district may provide, or it may enter into contracts with a governmental or private entity to provide, the improvement projects described by Subchapter C-1 or activities in support of or incidental to those projects. Sec. 3906.102. WATER DISTRICT POWERS. The district has the powers provided by the general laws relating to conservation and reclamation districts created under Section 59, Article XVI, Texas Constitution, including Chapters 49, 51, and 54, Water Code. Sec. 3906.103. ROAD DISTRICT POWERS; EXCEPTION. (a) Except as provided by Subsection (b), the district has the powers provided by the general laws relating to road districts and road utility districts created under Section 52(b), Article III, Texas Constitution, including Chapter 441, Transportation Code. (b) The district may exercise any power granted by this chapter and by Chapter 441, Transportation Code, without regard to any provision or requirement of, or procedure prescribed by, Chapter 441, Transportation Code. Sec. 3906.104. PUBLIC IMPROVEMENT DISTRICT POWERS. The district has the powers provided by Subchapter A, Chapter 372, Local Government Code, to a municipality or county. Sec. 3906.105. MUNICIPAL MANAGEMENT DISTRICT POWERS. The district has the powers provided by Chapter 375, Local Government Code. Sec. 3906.106. DEVELOPMENT CORPORATION POWERS. The district, using money available to the district, may exercise the powers given to a development corporation under Chapter 505, Local Government Code, including the power to own, operate, acquire, construct, lease, improve, or maintain a project under that chapter. Sec. 3906.107. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in implementing a project or providing a service authorized by this chapter. (b) The nonprofit corporation: (1) has each power of and is considered to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code; and (2) may implement any project and provide any service authorized by this chapter. (c) The board shall appoint the board of directors of the nonprofit corporation. The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code, except that a board member is not required to reside in the district. Sec. 3906.108. AGREEMENTS; GRANTS. (a) As provided by Chapter 375, Local Government Code, the district may make an agreement with or accept a gift, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code. Sec. 3906.109. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified party, including the county or the city, to provide law enforcement services in the district for a fee. Sec. 3906.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to a charitable or nonprofit organization that performs a service or provides an activity consistent with the furtherance of a district purpose. Sec. 3906.111. ECONOMIC DEVELOPMENT. (a) The district may engage in activities that accomplish the economic development purposes of the district. (b) The district may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the district, including programs to: (1) make loans and grants of public money; and (2) provide district personnel and services. (c) The district may create economic development programs and exercise the economic development powers that: (1) Chapter 380, Local Government Code, provides to a municipality; and (2) Subchapter A, Chapter 1509, Government Code, provides to a municipality. Sec. 3906.112. PARKING FACILITIES. (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities, including lots, garages, parking terminals, or other structures or accommodations for parking motor vehicles off the streets and related appurtenances. (b) The district's parking facilities serve the public purposes of the district and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years. (c) The district's parking facilities are parts of and necessary components of a street and are considered to be a street or road improvement. (d) The development and operation of the district's parking facilities may be considered an economic development program. Sec. 3906.113. ANNEXATION OR EXCLUSION OF LAND. (a) The district may annex land as provided by Subchapter J, Chapter 49, Water Code. (b) The district may exclude land as provided by Subchapter J, Chapter 49, Water Code. Section 375.044(b), Local Government Code, does not apply to the district. Sec. 3906.114. LIMITED EMINENT DOMAIN POWER TO ACQUIRE SEAWALL. (a) The district may acquire by condemnation any land, easements, or other property inside the district boundaries only as necessary for the construction of a seawall. The district may elect to condemn either the fee simple title or a lesser property interest. (b) The district may not acquire by condemnation: (1) any land, easements, or other property inside the district boundaries for a purpose other than constructing a seawall; (2) any land, easements, or other property outside the district; or (3) water or water rights. (c) The district shall exercise the right of eminent domain in the manner provided by Chapter 21, Property Code. The district is not required to: (1) give bond for appeal or bond for costs in a condemnation suit or other suit to which it is a party; or (2) deposit more than the amount of an award in a suit. (d) Section 375.094, Local Government Code, does not apply to the district. [Sections 3906.115-3906.150 reserved for expansion] SUBCHAPTER C-1. IMPROVEMENT PROJECTS Sec. 3906.151. BOARD DETERMINATION REQUIRED. The district may not undertake an improvement project unless the board determines the project to be necessary to accomplish a public purpose of the district. Sec. 3906.152. LOCATION OF IMPROVEMENT PROJECT. An improvement project may be located: (1) in the district; or (2) in an area outside but adjacent to the district if the project is for the purpose of extending a public infrastructure improvement beyond the district's boundaries to a logical terminus. Sec. 3906.153. MUNICIPAL REQUIREMENTS. An improvement project in a municipality must comply with any applicable municipal requirements, including codes and ordinances. Sec. 3906.154. LAKE OR OTHER BODY OF WATER. For the purposes of this subchapter, planning, design, construction, improvement, or maintenance of a lake or other body of water includes dredging, cleaning, widening, deepening, or other drainage, reclamation, or recreation work done to make the lake or other body of water navigable, clean, or safe for recreational use. Sec. 3906.155. WATER. (a) An improvement project may include a supply and distribution facility or system to provide potable and nonpotable water to the residents and businesses of the district, including a wastewater collection facility. (b) The district may plan, design, construct, improve, maintain, or operate a water or sewer facility under this section. Sec. 3906.156. ROADS. An improvement project may include a paved, macadamized, or graveled road or street to the full extent authorized by Section 52, Article III, Texas Constitution. Sec. 3906.157. STORM WATER. An improvement project may include protection and improvement of the quality of storm water that flows through the district. Sec. 3906.158. EDUCATION AND CULTURE. An improvement project may include the planning and acquisition of: (1) public art and sculpture and related exhibits and facilities; or (2) an educational facility and a cultural exhibit or facility. Sec. 3906.159. CONVENTION CENTER. An improvement project may include the planning, design, construction, acquisition, lease, rental, improvement, maintenance, installation, and management of and provision of furnishings for a facility for: (1) a conference, convention, or exhibition; (2) a manufacturer, consumer, or trade show; (3) a civic, community, or institutional event; or (4) an exhibit, display, attraction, special event, or seasonal or cultural celebration or holiday. Sec. 3906.160. DEMOLITION. An improvement project may include the removal, razing, demolition, or clearing of land or improvements in connection with an improvement project. Sec. 3906.161. MITIGATION OF ENVIRONMENTAL EFFECTS; DEVELOPMENT AGREEMENT; TRANSIT PROJECT. An improvement project may include the acquisition and improvement of land or other property for the mitigation of the environmental effects of an improvement project if the acquisition: (1) complies with a development agreement between the district and another person and the agreement conditions reimbursement of costs associated with the acquisition on the completion of substantial vertical development; or (2) relates to a transit project. Sec. 3906.162. ACQUISITION OF PROPERTY. An improvement project may include the acquisition of property or an interest in property in connection with an improvement project, including a project authorized by Subchapter A, Chapter 372, Local Government Code. Sec. 3906.163. SPECIAL OR SUPPLEMENTAL SERVICES. An improvement project may include a special or supplemental service for the improvement and promotion of the district or an area adjacent to the district or for the protection of public health and safety in or adjacent to the district, including: (1) a service listed in Section 375.112(a)(4), Local Government Code; (2) tourism; (3) fire protection or emergency medical services; or (4) educational improvements, enhancements, and services. Sec. 3906.164. MISCELLANEOUS DESIGN, CONSTRUCTION, AND MAINTENANCE. An improvement project may include the planning, design, construction, improvement, and maintenance of: (1) a project or service listed in Section 375.112(a)(1), Local Government Code; (2) highway right-of-way or transit corridor beautification and improvement; (3) a hiking and cycling path or trail; (4) a pedestrian walkway; (5) a garden, community activities center, dock, wharf, sports facility, open space, or related exhibit or preserve; or (6) a bulkhead or other improvement designed to prevent erosion. Sec. 3906.165. SIMILAR IMPROVEMENT PROJECTS. An improvement project may include a public improvement, facility, or service similar to a project described by this subchapter. [Sections 3906.166-3906.200 reserved for expansion] SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS Sec. 3906.201. BORROWING MONEY. The district may borrow money for a district purpose by issuing or executing bonds, negotiable or nonnegotiable notes, credit agreements, or other obligations of any kind found by the board to be necessary or appropriate for a district purpose. The bond, note, credit agreement, or other obligation must be secured by and payable from any combination of ad valorem taxes, assessments, or any other district revenue or sources of money. Sec. 3906.202. GENERAL POWERS REGARDING PAYMENT OF DISTRICT BONDS, OBLIGATIONS, OR OTHER COSTS. The district may provide or secure the payment or repayment of any bond, note, or other temporary or permanent obligation or reimbursement or other contract with any person and the costs and expenses of the establishment, administration, and operation of the district and the district's costs or share of the costs or revenue of an improvement project or district contractual obligation or indebtedness by: (1) the imposition of an ad valorem tax or an assessment, user fee, concession fee, or rental charge; or (2) any other revenue or resources of the district, including tax increment revenue. Sec. 3906.203. ASSESSMENTS. (a) The district may impose an assessment on property in the district to pay the cost or the cost of maintenance of any authorized district improvement in the manner provided for: (1) a district under Subchapters A, E, and F, Chapter 375, Local Government Code; or (2) a municipality or county under Subchapter A, Chapter 372, Local Government Code. (b) An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district: (1) are a first and prior lien against the property assessed; and (2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes. (c) The lien of an assessment against property runs with the land. The portion of an assessment payment obligation that has not yet come due is not eliminated by the foreclosure of an ad valorem tax lien, and any purchaser of property in a foreclosure of an ad valorem tax lien takes the property subject to the assessment payment obligations that have not yet come due and to the lien and terms of the lien's payment under the applicable assessment ordinance or order. (d) The board may make a correction to or deletion from the assessment roll that does not increase the amount of assessment of any parcel of land without providing notice and holding a hearing in the manner required for additional assessments. Sec. 3906.204. NOTICE OF ASSESSMENT. The board shall file notice of an assessment imposed with the county clerk of Cameron County and post the notice on the district's Internet website. Sec. 3906.205. STORM WATER USER CHARGES. The district may establish user charges related to the operation of storm water facilities, including the regulation of storm water for the protection of water quality in the district. Sec. 3906.206. NONPOTABLE WATER USER CHARGES. The district may establish user charges for the use of nonpotable water for irrigation purposes, subject to approval of the governing body of the municipality in which the user is located. Sec. 3906.207. COSTS FOR IMPROVEMENT PROJECTS. The district may undertake separately or jointly with other persons, including the city, all or part of the cost of an improvement project, including an improvement project: (1) for improving, enhancing, and supporting public safety and security, fire protection and emergency medical services, and law enforcement; or (2) that confers a general benefit on the entire district or a special benefit on a definable part of the district. Sec. 3906.208. RESIDENTIAL PROPERTY NOT EXEMPT. Section 375.161, Local Government Code, does not apply to the district. [Sections 3906.209-3906.250 reserved for expansion] SUBCHAPTER E. TAXES AND BONDS Sec. 3906.251. TAX ABATEMENT. The district may enter into a tax abatement agreement in accordance with the general laws of this state authorizing and applicable to a tax abatement agreement by a municipality. Sec. 3906.252. PROPERTY TAX AUTHORIZED. The district may impose an ad valorem tax on all taxable property in the district to: (1) pay for an improvement project of the types authorized by Section 52(b), Article III, and Section 59, Article XVI, Texas Constitution; or (2) secure the payment of bonds issued for a purpose described by Subdivision (1). Sec. 3906.253. MAINTENANCE AND OPERATION TAX; ELECTION. (a) The district may impose a tax for maintenance and operation purposes, including for: (1) planning, constructing, acquiring, maintaining, repairing, and operating all improvement projects, including land, plants, works, facilities, improvements, appliances, and equipment of the district; and (2) paying costs of services, engineering and legal fees, and organization and administrative expenses. (b) The district may not impose a maintenance and operation tax unless the tax is approved by a majority of the district voters voting at an election held for that purpose. (c) A maintenance and operation tax election may be held at the same time and in conjunction with any other district election. The election may be called by a separate election order or as part of any other election order. Sec. 3906.254. USE OF SURPLUS MAINTENANCE AND OPERATION MONEY. If the district has maintenance and operation tax money that is not needed for the purposes for which it was collected, the money may be used for any authorized purpose. Sec. 3906.255. BONDS AND OTHER OBLIGATIONS; MUNICIPAL APPROVAL. (a) The district may issue by public or private sale bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, tax increment financing, or assessments in the manner provided by Subchapter A, Chapter 372, or Subchapter J, Chapter 375, Local Government Code. (b) In exercising the district's borrowing power, the district may issue a bond or other obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or any other type of obligation. (c) In addition to the sources of money described by Chapter 311, Tax Code, Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local Government Code, district bonds may be secured and made payable, wholly or partly, by a pledge of any part of the money the district receives from system or improvement revenue or from any other source. Sec. 3906.256. ISSUANCE AND APPROVAL OF OBLIGATION POWERS. The district has the powers provided by Chapter 1371, Government Code. Sec. 3906.257. BOND MATURITY. Bonds may mature not more than 40 years from their date of issue. Sec. 3906.258. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued: (1) the board shall impose a continuing direct annual ad valorem tax for each year that all or part of the bonds are outstanding; and (2) the district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to: (A) pay the interest on the bonds or other obligations as the interest becomes due; and (B) create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date. Sec. 3906.259. AUTHORITY TO ESTABLISH DEFINED AREAS OR DESIGNATED PROPERTY. The district may define areas or designate certain property of the district in the manner provided by Subchapter J, Chapter 54, Water Code, regardless of the district's size, to pay for improvements, facilities, or services that primarily benefit that area or property and do not generally and directly benefit the district as a whole. Sec. 3906.260. NOTICE OF TAX. The district shall file notice of a tax imposed with the county clerk of Cameron County and post the notice on the district's Internet website. [Sections 3906.261-3906.300 reserved for expansion] SUBCHAPTER F. TAX INCREMENT REINVESTMENT ZONE Sec. 3906.301. DISTRICT AS TAX INCREMENT REINVESTMENT ZONE. Without further authorization or procedural requirement, the district is a tax increment reinvestment zone under Chapter 311, Tax Code. Sec. 3906.302. BOARD; POWERS. (a) The district's board is the board of directors of the tax increment reinvestment zone. (b) The district's board has the powers of the board of directors of a tax increment reinvestment zone granted under Chapter 311, Tax Code, including: (1) the powers granted to a municipality under Section 311.008, Tax Code, subject to the limitations in Section 311.010, Tax Code; and (2) the power under Section 311.010(c), Tax Code, to restrict the use of property in the zone under Chapter 211, Local Government Code. (c) Section 311.009, Tax Code, does not apply to the tax increment reinvestment zone board. Sec. 3906.303. BASE YEAR VALUE. The base year value of the district, for tax increment financing purposes, is the value as of January 1, 2011, of all taxable real property in the district as shown on the certified tax rolls of the central appraisal district. Sec. 3906.304. INTERLOCAL AGREEMENTS ALLOWED. The district and an overlapping taxing unit may enter into an interlocal agreement for the payment of all or a portion of the tax increment of the unit to the district. Sec. 3906.305. USE OF MONEY. The district may grant money deposited in the tax increment fund to the district to be used by the district for the purposes permitted for money granted to a corporation under Section 380.002(b), Local Government Code, including the right to pledge the money as security for any bonds issued by the district for an improvement project. Sec. 3906.306. CITY CONSENT; DURATION. The city may, in its consent to the creation of the district, determine the portion of tax increment to be paid to the district and the initial duration of the tax increment reinvestment zone. Sec. 3906.307. RESTRICTIONS ON AREA NOT APPLICABLE. The area of the district that is a tax increment reinvestment zone is not subject to the limitations provided by Section 311.006(b), Tax Code. [Sections 3906.308-3906.350 reserved for expansion] SUBCHAPTER G. DISSOLUTION Sec. 3906.351. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT. (a) The district may be dissolved as provided by Subchapter M, Chapter 375, Local Government Code, except that Section 375.264, Local Government Code, does not apply to the district. (b) The board may dissolve the district regardless of whether the district has debt. (c) If the district has debt when it is dissolved, the district shall remain in existence solely for the purpose of discharging its debts. The dissolution is effective when all debts have been discharged. Sec. 3906.352. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. (a) If the dissolved district has bonds or other obligations outstanding secured by and payable from assessments or other revenue, other than ad valorem taxes, the city shall succeed to the rights and obligations of the district regarding enforcement and collection of the assessments or other revenue. (b) The city shall have and exercise all district powers to enforce and collect the assessments or other revenue to pay: (1) the bonds or other obligations when due and payable according to their terms; or (2) special revenue or assessment bonds or other obligations issued by the city to refund the outstanding bonds or obligations. Sec. 3906.353. ASSUMPTION OF ASSETS AND LIABILITIES. If the city dissolves the district: (1) the city assumes the obligations of the district, including any bonds or other debt payable from assessments or other district revenue; and (2) the board shall transfer ownership of all district property to the city. SECTION 2. The Port Isabel Improvement District No. 1 initially includes all the territory contained in the following area: Being a 45.10 acre tract out of a 182.42 acre tract situated in the City of Port Isabel, Cameron County, Texas, said 182.42 acre tract being more particularly described by metes and bounds as follows; Beginning at the approximate intersection of W. State Hwy. 100 (W. Queen Isabella Blvd.) and N. 2nd St., said intersection being the POINT OF BEGINNING and also the southwestern most corner of this tract: Thence, continuing generally north along N. 2nd St. N00°00'38"W, 992.66 feet to a point approximately located at the intersection of 2nd St. and Illinois Ave. and a point of deflection to the right; Thence, continuing generally east along Illinois Ave. S90°00'00"E, 288.23 feet to a point approximately located at the intersection of Illinois Ave. and First St. and a point of deflection to the left; Thence, continuing generally in a northeasterly direction along First St., N30°19'02"E, 885.93 feet and then N27°42'48"E, 212.40 feet to a point approximately located at the intersection of First St. and W. North Shore Dr.; Thence, continuing generally in an easterly direction along W. North Shore Dr. with the following calls: Following along a curve to the right having a radius of 3481.45 feet and an arc length of 515.77 feet; Thence, N80°34'06"E, 688.86 feet passing through the W. North Shore Dr. Cul-de-Sac situated on the west side of the main canal and crossing said main canal to a point approximately located at the center of the W. North Shore Dr. Cul-de-Sac; Thence, N87°16'53"E, 262.60 feet to a point located at the intersection of N. Shore Dr. and N. Yturria St. and a point of deflection to the right; Thence, continuing generally in a southeasterly direction along N. Yturria St. with the following calls: S66°43'02"E, 1048.75 feet, Thence, S77°29'11"E, 834.75 feet, Thence, S77°20'18"E, 78.40 feet, Thence, S34°27'49"E, 706.34 feet to a point approximately located at the intersection with N. Yturria St. and W. State Hwy. 100 (W. Queen Isabella Blvd.) Thence, continuing generally along W. State Hwy. 100 (W. Queen Isabella Blvd.) with the following calls: S76°30'15"W, 237.92 feet, Thence, S55°32'11"W, 485.22 feet, Thence, S53°19'55"W, 1309.56 feet, Thence, following along a curve to the right having a radius of 1250.27 feet and an arc length of 928.59 feet, Thence, N84°02'49"W, 847.36 feet, Thence, following along a curve to the right having a radius of 2763.89 feet and an arc length of 887.31 feet, Thence, N68°12'13"W, 318.83 feet to the approximate POINT OF BEGINNING and containing 182.42 acres, Less the following three areas totaling 45.10 acres to be excluded; 97.01 Acre Tract: Excluding an area being 97.01 acres situated within the afore mentioned 182.42 acres and being more particularly described as follows: Beginning at a point situated approximately 380.0 feet southwest of the approximate intersection of N. Shore Dr. and N. Yturria St. said intersection being the POINT OF BEGINNING, Thence, N80°34'06"E, 116.18 feet, to a point of deflection to the right, Thence, N87°16'53"E, 262.60 feet to a point located at the intersection of N. Shore Dr. and N. Yturria St. and a point of deflection to the right; Thence, continuing generally in a southeasterly direction along N. Yturria St. with the following calls: S66°43'02"E, 1048.75 feet, Thence, S77°29'11"E, 834.75 feet, Thence, S77°20'18"E, 78.40 feet, Thence, S34°27'49"E, 706.34 feet to a point approximately located at the intersection with N. Yturria St. and W. State Hwy. 100 (W. Queen Isabella Blvd.) Thence, continuing generally along W. State Hwy. 100 (W. Queen Isabella Blvd.) with the following calls: S76°30'15"W, 237.92 feet, Thence, S55°32'11"W, 485.22 feet, Thence, S53°19'55"W, 1309.56 feet, Thence, following along a curve to the right having a radius of 1250.27 feet and an arc length of 922.59 feet, Thence, continuing generally north along Island Ave. N04°20'40"E, 222.19 feet, Thence, following along a curve to the left having a radius of 777.53 feet and an arc length of 437.02 feet, Thence, following along a curve to the right having a radius of 573.56 feet and an arc length of 289.72 feet, Thence, N00°00'00"W, 1320.52 feet, Thence, N67°19'01"E, 52.43 feet, Thence, N45°42'19"E, 51.62 feet, Thence, N07°16'44"E, 124.96 feet, Thence, N35°58'29"W, 55.40 feet, Thence, N02°09'44W, 23.47 feet, to the approximate POINT OF BEGINNING and containing 97.01 acres. 36.50 Acres: Excluding an area being 36.50 acres situated within the afore mentioned 182. 42 acres, and being more particularly described as follows: Beginning at a point situated approximately 700.00 feet east of the approximate intersection of N. Shore Dr. and Yturria St., said point being the POINT OF BEGINNING, Thence, continuing along a shoreline with the following calls: Following along a curve to the right having a radius of 146.44 feet and an arc length of 179.23 feet, Thence, N88°34'07"W, 59.23 feet, Thence, S81°35'31"W, 212.48 feet, Thence, S52°03'09"W, 170.82 feet, Thence, S60°00'52"W, 165.71 feet, Thence, S43°44'31"W, 94.20 feet, Thence, S51°21'18"W, 113.71 feet, Thence, S37°43'13"W, 346.57 feet, Thence, following along a curve to the left having a radius of 360.58 feet and an arc length of 220.18 feet, Thence, S01°45'48"E, 122.64 feet, Thence, following along a curve to the left having a radius of 1419.42 feet and an arc length of 277.22 feet, Thence, S17°12'41"E, 720.75 feet, Thence, N61°12'07"E, 42.91 feet, Thence, following along a curve to the right having a radius of 217.02 feet and an arc length of 170.89 feet, Thence, S74°43'17"E, 303.06 feet, Thence, S86°44'59"E, 82.86 feet, Thence, N72°02'59"E, 137.36 feet, Thence, N58°15'14"E, 165.73 feet, Thence, N01°30'30"E, 51.00 feet, Thence, N54°15'37"E, 124.02 feet, Thence, following along a curve to the left having a radius of 110.46 feet and an arc length of 95.48 feet, Thence, N04°42'37"E, 114.42 feet, Thence, S89°07'57"W, 88.60 feet, Thence, S29°33'06"W, 92.53 feet, Thence, S35°24'33"W, 125.10 feet, Thence, N61°53'20"W, 88.26 feet, Thence, N29°13'06"E, 247.48 feet, Thence, following along a curve to the left having a radius of 1357.61feet and an arc length of 147.15 feet, Thence, N09°00'46"E, 54.80 feet, Thence, N11°50'53"E, 94.86 feet, Thence, following along a curve to the right having a radius of 225.45feet and an arc length of 108.46 feet, Thence, N71°20'07"E, 70.18 feet, to a point on the western right-of-way of Island Ave. Thence, S00°00'00"W, 337.14 feet, Thence, following along a curve to the left having a radius of 734.06feet and an arc length of 282.24 feet, Thence, following along a curve to the right having a radius of 777.53feet and an arc length of 437.02 feet, Thence, S04°20'40"W, 222.19 feet, Thence, N84°02'49"W, 784,86 feet, Thence, following along a curve to the right having a radius of 2763.89 feet and an arc length of 887.31 feet, Thence, N68°12'13"W, 318.83 feet, Thence, N00°00'38"W, 992.66 feet, Thence, S90°00'00"E, 288.23 feet, Thence, N30°19'02"E, 885.93 feet, Thence, N27°42'48"E, 212.40 feet, Thence, Following along a curve to the right having a radius of 3481.45 feet and an arc length of 515.77 feet; Thence, continuing generally north along Island Ave. N80°34'06"E, 284.43 feet to the approximate POINT OF BEGINNING and containing 36.50 acres. Harbor Island Dr: Excluding an area being 3.81 acres situated within the afore mentioned 182.42 acres, said area partially encompassing Harbor Island Dr. and being more particularly described as follows: Beginning at a point situated approximately 93.0 feet northwest of the approximate intersection of Harbor Island Dr. and Island Ave., said intersection being the POINT OF BEGINNING, Thence, continuing in a southerly direction along with the west right-of-way of Island Ave. with the following calls: S00°22'36"E, 239.66 feet Thence, N51°07'58"W, 48.22 feet, Thence, S81°59'37"W 165.11 feet, Thence, S54°05'12"W, 472.53 feet, Thence, N46°24'16"E, 59.39 feet, Thence, S50°19'46"W, 91.11 feet, Thence, N47°03'38"W, 59.11 feet, Thence, N65°33'01"W, 52.83 feet, Thence, N26°31'28"E, 97.24 feet, Thence, N52°36'42"E, 388.69 feet, Thence, N64°30'00"W, 236.16 feet, Thence, N75°43'05"E, 132.47 feet, Thence, N85°31'47"E, 93.17 feet, to the approximate POINT OF BEGINNING and containing 3.81 acres. The total acreage for said 182.42 acre tract excluding said three areas totaling 137.32 acres described herein totals 45.10 acres. SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2011.