85R24163 SMT-D
By: Hernandez H.B. No. 2744
Substitute the following for H.B. No. 2744:
By: Perez C.S.H.B. No. 2744
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Channelview Improvement District;
providing authority to issue bonds; providing authority to impose
fees and taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3943 to read as follows:
CHAPTER 3943. CHANNELVIEW IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3943.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "County" means Harris County.
(3) "District" means the Channelview Improvement
District.
Sec. 3943.002. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Section 59, Article
XVI, Texas Constitution.
Sec. 3943.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing 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, scenic beauty, and
the public welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve the county from providing the level of
services provided as of the effective date of the Act enacting this
chapter to the area in the district. The district is created to
supplement and not to supplant county services provided in the
district.
Sec. 3943.004. 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:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district shall:
(1) promote the health, safety, and general welfare of
residents, merchants, landowners, employers, potential employees,
employees, visitors, and consumers in the district, and of the
public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center;
(3) provide and maintain common areas and facilities
in the district to ensure scenic beauty;
(4) provide improvements in the district to promote
the welfare of the public in the district; and
(5) 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) The district may 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. 3943.005. INITIAL DISTRICT TERRITORY. (a) The
district is composed of the territory described by Section 2 of the
Act enacting this chapter.
(b) The boundaries and field notes of the district 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 in any way affect the district's:
(1) organization, existence, or validity;
(2) right to contract;
(3) authority to issue any type of bond for a purpose
for which the district is created or to pay the principal of and
interest on the bond;
(4) right to impose or collect a fee or tax or collect
other revenue; or
(5) legality or operation.
Sec. 3943.006. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The initial directors shall hold an election to confirm
the creation of the district and to elect five permanent directors
as provided by Section 49.102, Water Code.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3943.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five directors who occupy numbered
positions. The directors who occupy positions one, two, and three
are appointed under this section, and the directors who occupy
positions four and five are elected as provided by this section and
Section 3943.052.
(b) The commissioners court of the county shall appoint:
(1) one person who leases a retail store or who owns
real property in the district to serve in position one for a
three-year term;
(2) one person who leases a retail store but does not
own real property in the district to serve in position two for a
two-year term; and
(3) one person who owns real property in the district
to serve in position three for a three-year term.
(c) A director elected under Section 3943.052 serves a
two-year term. To qualify as a candidate for position four, a
person must reside in the district. To qualify as a candidate for
position five, a person must lease a retail store or own real
property in the district.
(d) In appointing directors under Subsection (b), the
commissioners court shall consider any recommendation received by
an organization dedicated to the economic development of the
district.
(e) A term expires on December 31 of the appropriate year.
Sec. 3943.052. ELECTION OF DIRECTORS. (a) The board shall
hold an election of directors for positions four and five in each
odd-numbered year on the uniform election date in November
established by Section 41.001, Election Code.
(b) In addition to the contents required by the Election
Code, notice of a directors' election must:
(1) state the number of directors to be voted on; and
(2) describe the qualifications for each position for
which a candidate is running.
(c) In addition to requirements prescribed by the Election
Code, the ballots for a directors' election shall describe the
qualifications of the position for which each candidate is running.
(d) The board shall certify that the person receiving the
highest number of votes for each position is elected as the director
for that position.
Sec. 3943.053. LAW GOVERNING ADMINISTRATION OF BOARD.
Sections 375.066-375.070, Local Government Code, apply to the board
as if it were established under Chapter 375 of that code.
Sec. 3943.054. VOTING BY BOARD PRESIDENT RESTRICTED. The
board president may not vote except to break a tie vote.
Sec. 3943.055. INITIAL DIRECTORS. (a) The initial
directors elected under Section 3943.052 shall be elected at an
election to be held on November 7, 2017.
(b) The initial directors appointed under Section 3943.051
shall be appointed for terms to start on January 1, 2018.
(c) This section expires September 1, 2022.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3943.101. GENERAL POWERS. The district has all of the
powers and duties necessary to accomplish the purposes for which
the district was created, including the powers and duties provided
by:
(1) Subchapter E, Chapter 375, Local Government Code;
and
(2) the general laws of this state on conservation and
reclamation districts created under Section 59, Article XVI, Texas
Constitution, including Chapter 49, Water Code.
Sec. 3943.102. IMPROVEMENT PROJECTS. The district may
provide, or it may enter into contracts with a governmental or
private entity to provide, and pay all or part of the costs of the
improvement projects described by Subchapter D or activities in
support of or incidental to those projects.
Sec. 3943.103. DEVELOPMENT CORPORATION POWERS. The
district, using money available to the district, may exercise the
powers given to a development corporation under Chapter 505, Local
Government Code, including the power to own, operate, acquire,
construct, lease, improve, or maintain a project under that
chapter.
Sec. 3943.104. RULES. The district may adopt rules:
(1) to administer and operate the district;
(2) for the use, enjoyment, availability, protection,
security, and maintenance of the district's facilities; and
(3) for the provision of public safety and security in
the district.
Sec. 3943.105. LEASE, ACQUISITION, OR CONSTRUCTION OF
BUILDING OR FACILITY; ECONOMIC DEVELOPMENT PROGRAMS. The district
may, as if the district were a home-rule municipality with a
population of more than 100,000:
(1) issue bonds and lease, acquire, or construct a
building or facility as provided by Subchapter A, Chapter 1509,
Government Code; and
(2) establish and administer a program as provided by
Section 380.002, Local Government Code.
Sec. 3943.106. CONTRACTS; GRANTS; DONATIONS. (a) The
district may contract with any person to accomplish the purposes of
this chapter on terms and for the period the board determines,
including contracting for the payment of costs incurred by the
person on behalf of the district, including all or part of the costs
of an improvement project, from tax proceeds or any other specified
source of money.
(b) The district may contract with a person to receive,
administer, and perform the district's duties under a gift, grant,
loan, conveyance, transfer, bequest, donation, or other financial
arrangement relating to the investigation, planning, analysis,
acquisition, construction, completion, implementation, or
operation of a proposed or existing improvement project.
(c) Any person, including any type of governmental entity,
may contract with the district to carry out the purposes of this
chapter.
Sec. 3943.107. ANNEXATION OR EXCLUSION OF TERRITORY. The
district may add or exclude territory in the manner provided by
Chapter 375, Local Government Code.
Sec. 3943.108. NO PEACE OFFICERS. The district may not
employ peace officers.
Sec. 3943.109. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
SUBCHAPTER D. IMPROVEMENT PROJECTS
Sec. 3943.151. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve, lease,
relocate, repair, 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, lease, relocate, repair, operate,
maintain, or finance an improvement project or service authorized
under this chapter.
Sec. 3943.152. MISCELLANEOUS DESIGN, CONSTRUCTION, AND
MAINTENANCE. An improvement project may include the planning,
design, construction, improvement, and maintenance of:
(1) landscaping;
(2) highway right-of-way or transit corridor
beautification and improvement;
(3) lighting, banners, and signs;
(4) a street or sidewalk;
(5) a hiking and cycling path or trail;
(6) a pedestrian walkway, skywalk, crosswalk, or
tunnel;
(7) a park, lake, garden, recreational facility, open
space, scenic area, or related exhibit or preserve;
(8) a fountain, plaza, or pedestrian mall; or
(9) public art or sculpture and related exhibits and
facilities and educational or cultural exhibits and facilities,
including exhibits, displays, attractions, or facilities for
special events, holidays, or seasonal or cultural celebrations.
Sec. 3943.153. PARKING AND TRANSPORTATION. An improvement
project may include the planning, design, construction,
improvement, maintenance, and operation of an off-street parking
facility, heliport, bus terminal, mass transit, and roadway or
water transportation system.
Sec. 3943.154. DEMOLITION. An improvement project may
include the removal, razing, demolition, or clearing of land or
improvements in connection with an improvement project.
Sec. 3943.155. ACQUISITION OF PROPERTY. An improvement
project may include the acquisition of property or an interest in
property in connection with an improvement project.
Sec. 3943.156. SPECIAL OR SUPPLEMENTAL SERVICES. An
improvement project may include a special or supplemental service
for the improvement and promotion of the district or for the
protection of public health and safety in the district, including:
(1) tourism;
(2) elimination of traffic congestion;
(3) health, sanitation, public safety, security, fire
protection, or emergency medical services;
(4) recreational, educational, or cultural
improvements, enhancements, and services; and
(5) advertising, promotion, and business recruitment.
Sec. 3943.157. SIMILAR IMPROVEMENT PROJECTS. An
improvement project may include a public improvement, facility, or
service similar to a project described by this subchapter.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 3943.201. NO AD VALOREM TAX. The district may not
impose an ad valorem tax.
Sec. 3943.202. FEES; CHARGES. The district may:
(1) establish and collect user fees, concession fees,
admission fees, rental fees, or other similar fees or charges; and
(2) apply the proceeds from those fees or charges for
the enjoyment, sale, rental, or other use of the district's
facilities, services, or improvement projects.
Sec. 3943.203. BORROWING MONEY. The district may borrow
money for a district purpose.
Sec. 3943.204. PAYMENT OF EXPENSES. The district may
provide or secure the payment or repayment of any district expense,
including:
(1) a district cost relating to an improvement
project;
(2) a district contractual obligation or
indebtedness, because of a lease, installment purchase contract, or
other agreement; or
(3) a tax, user fee, concession fee, rental fee, or
other revenue or resources of the district.
Sec. 3943.205. BONDS. (a) The board may issue bonds as
provided by Subchapter J, Chapter 375, Local Government Code.
(b) In addition to the sources described in Subchapter J,
Chapter 375, Local Government Code, bonds issued by the district
may be secured and made payable, in whole or in part, by a pledge of
any part of the net proceeds the district receives from a specified
portion of not more than one-half of the district's maximum sales
and use tax amount authorized under Section 3943.252.
(c) Sections 375.207 and 375.208, Local Government Code, do
not apply to bonds issued under this section.
SUBCHAPTER F. SALES AND USE TAX
Sec. 3943.251. SALES AND USE TAX; EXCISE TAX. (a) For
purposes of this section:
(1) "Taxable items" includes all items subject to a
sales and use tax that is imposed by the county.
(2) "Use," with respect to a taxable service, means
the derivation in the district of a direct or indirect benefit from
the service.
(b) The district may impose a sales and use tax if
authorized by a majority vote at an election held for that purpose.
(c) If the district adopts a sales and use tax:
(1) the tax is imposed on the receipts from the sale at
retail of taxable items in the district; and
(2) an excise tax is imposed on the use, storage, or
other consumption in the district of taxable items purchased or
rented from a retailer during the period in which the sales and use
tax is effective in the district.
(d) The rate of the excise tax is the same as the rate of the
sales tax portion of the tax applied to the sales price of the
taxable items and is included in the sales tax.
Sec. 3943.252. TAX ELECTION PROCEDURES. (a) The board may
order an election to adopt, change the rate of, or abolish a sales
and use tax. The election may be held at the same time and in
conjunction with a directors' election.
(b) The election must be held on the next uniform election
date that falls on or after the 45th day after the date the election
order is adopted.
(c) Notice of the election shall be given and the election
shall be held in the manner prescribed for a bond election by
Subchapter D, Chapter 49, Water Code.
Sec. 3943.253. BALLOT WORDING. (a) In an election to adopt
a sales and use tax, the ballot shall be prepared to permit voting
for or against the proposition: "The adoption of a local sales and
use tax in the Channelview Improvement District at the rate of
(proposed tax rate)."
(b) In an election to change the rate of the sales and use
tax, the ballot shall be prepared to permit voting for or against
the proposition: "The (increase or decrease, as applicable) in the
rate of the local sales and use tax imposed in the Channelview
Improvement District from (tax rate on election date) percent to
(proposed tax rate) percent."
(c) In an election to abolish the sales and use tax, the
ballot shall be prepared to permit voting for or against the
proposition: "The abolition of the local sales and use tax in the
Channelview Improvement District."
Sec. 3943.254. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition,
computation, administration, enforcement, and collection of the
sales and use tax authorized by this subchapter except to the extent
Chapter 321, Tax Code, is inconsistent with this chapter.
(b) A reference in Chapter 321, Tax Code, to a municipality
or the governing body of a municipality is a reference to the
district or the board, respectively.
Sec. 3943.255. TAX RATES. The district may impose the sales
and use tax and the excise tax in increments of one-eighth of one
percent, with a minimum tax of one-half percent and a maximum tax of
one percent.
Sec. 3943.256. ABOLITION OF TAX. The board by order and
without an election may abolish the sales and use tax and the excise
tax.
Sec. 3943.257. USE OF TAXES. The district may use the
proceeds from the sales and use tax and the excise tax only for the
purposes for which the district was created.
Sec. 3943.258. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
adoption of a tax rate or a change in the tax rate takes effect after
the expiration of the first complete calendar quarter occurring
after the date on which the comptroller receives a notice of the
results of the election.
SUBCHAPTER G. DISSOLUTION
Sec. 3943.301. DISSOLUTION BY BOARD ORDER. The board by
order may dissolve the district at any time unless the district has
outstanding indebtedness or contractual obligations.
Sec. 3943.302. DISSOLUTION BY PETITION OF OWNERS. (a) The
board by order shall dissolve the district if a majority of the
voters of the district voting at an election called for that purpose
vote to dissolve the district.
(b) After the date the district is dissolved, the district
may not impose taxes.
(c) If on the date the district is dissolved the district
has outstanding liabilities, the board shall, not later than the
30th day after the date of dissolution, adopt a resolution
certifying each outstanding liability. The county shall assume the
outstanding liabilities and shall collect the sales and use tax for
the district for the remainder of the calendar year. The county may
continue to collect the tax for an additional calendar year if the
commissioners court of the county finds that the tax revenue is
needed to retire the district liabilities that were assumed by the
county.
(d) The district may continue to operate for a period not to
exceed two months after performing its duties under Subsection (c).
The district is continued in effect for the purpose of performing
those duties.
(e) If the district is continued in effect under Subsection
(d), the district is dissolved entirely on the first day of the
month following the month in which the board certifies to the
secretary of state that the district has fully performed its duties
under Subsection (c).
Sec. 3943.303. ADMINISTRATION OF DISTRICT PROPERTY
FOLLOWING DISSOLUTION. (a) After the date the board orders the
dissolution of the district, the board shall transfer ownership of
all district property to the county, except as provided by
Subsection (b).
(b) If, on the date on which the board orders the
dissolution, more than 50 percent of the district territory is in a
municipality, the board shall transfer ownership of the district's
property to the municipality.
SECTION 2. The Channelview Improvement District initially
includes all the territory contained in the following area:
BEGINNING at the centerline intersection of the East Sam
Houston Parkway ("Beltway 8") with the centerline of Wallisville
Road, approximately 2 1/2 miles north of Interstate 10 ("East
Freeway"), along said "Beltway 8";
THENCE, in a Northeasterly direction, along the centerline of
said Wallisville Road, to the intersection of said Wallisville Road
with the west bank of the San Jacinto River;
THENCE, in a Southerly direction, along the westerly bank of
the said San Jacinto River; inclusive of the body of water known as
Bear Lake, to the intersection of the U.P.S. Railroad and the
southerly bank of a body of water known as Whites Lake;
THENCE, in an Easterly direction, along the southerly bank of
said Whites Lake, to the intersection of said Whites Lake, also
being the northerly Right-of-Way line of said Interstate 10 with
the westerly bank of the said San Jacinto River;
THENCE, in a Southwesterly direction, along the westerly bank
of the said San Jacinto River, crossing the northerly outlet of Old
River to the intersection of the northerly City of Houston, City
Limit Line;
THENCE, in a Southwesterly direction, with a curve to the
left, along said northerly City Limit Line crossing the southerly
outlet of Old River to the southerly bank of said Old River;
THENCE, in an Easterly direction with the southerly bank of
said Old River and with the said northerly City Limit Line to the
west bank of the Houston Ship Channel;
THENCE, in a Southwesterly direction with the northwesterly
bank of said Houston Ship Channel and with the northwesterly City
Limit Line to an angle point in said City Limit Line northeasterly
of the outlet of Carpenters Bayou/Barge Channel;
THENCE, in a Northwesterly direction leaving said Houston
Ship Channel with the northeasterly City Limit Line to an angle
point of said City Limit Line;
THENCE, in a Southwesterly direction with the northwesterly
City Limit Line, being a line parallel to and located approximately
2,500 feet from the centerline of the said Houston Ship Channel,
crossing said Carpenters Bayou/Barge Channel to an angle point in
said City Limit Line;
THENCE, in a Southeasterly direction with the southwesterly
City Limit Line to the westerly bank of the said Houston Ship
Channel;
THENCE, in a Southwesterly direction with the northwesterly
bank of said Houston Ship Channel with the northwesterly City Limit
Line to an angle point of said City Limit Line located near the
outlet of the Jacinto Port Slip;
THENCE, in a Northwesterly direction leaving said Houston
Ship Channel with the northeasterly City Limit Line to an angle
point of said City Limit Line;
THENCE, in a Southwesterly direction with northwesterly City
Limit Line, being a line parallel to and located approximately
2,500 feet from the centerline of said Houston Ship Channel,
crossing said Jacinto Port Slip to an angle point in said City Limit
Line;
THENCE, in a Southeasterly direction with southwesterly City
Limit Line to the westerly bank of the said Houston Ship Channel;
THENCE, in a Southeasterly direction with the northerly City
Limit Line and generally with the Northerly bank of said Houston
Ship Channel, crossing said "Beltway 8" to the intersection of the
northerly bank of the said Houston Ship Channel with the extension
of the centerline of Penn City Road;
THENCE, in a Northerly direction, along the said centerline
extension of said Penn City Road, to the common intersection of Penn
City Road, "Beltway 8" and Interstate 10 for corner;
THENCE, in a Northerly direction, along the centerline of
said "Beltway 8", approximately 2 1/2 miles to the POINT OF
BEGINNING. Save and except for any portion hereof that is included
in the municipal or corporate boundaries of the City of Houston.
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
and accomplished.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.