Texas 2011 82nd Regular

Texas Senate Bill SB1922 Comm Sub / Bill

                    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.