85R12423 JCG-F
By: Lozano H.B. No. 4275
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Ingleside Improvement District;
providing authority to issue bonds; granting limited power of
eminent domain; providing authority to impose assessments, fees, or
taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3942 to read as follows:
CHAPTER 3942. INGLESIDE IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3942.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Ingleside.
(3) "County" means San Patricio County.
(4) "Director" means a board member.
(5) "District" means the Ingleside Improvement
District.
Sec. 3942.002. NATURE OF DISTRICT. The Ingleside
Improvement District is a special district created under Section
59, Article XVI, Texas Constitution.
Sec. 3942.003. PURPOSE; DECLARATION OF INTENT. (a) The
creation of the district is essential to accomplish the purposes of
Sections 52 and 52-a, Article III, and Section 59, Article XVI,
Texas Constitution, and other public purposes stated in this
chapter. By creating the district and in authorizing the city, the
county, and other political subdivisions to contract with the
district, the legislature has established a program to accomplish
the public purposes set out in Section 52-a, Article III, Texas
Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or the county from providing the
level of services provided as of the effective date of the Act
enacting this chapter to the area in the district. The district is
created to supplement and not to supplant city or county services
provided in the district.
Sec. 3942.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this chapter.
(c) The creation of the district is in the public interest
and is essential to further the public purposes of:
(1) developing and diversifying the economy of the
state;
(2) eliminating unemployment and underemployment; and
(3) developing or expanding transportation and
commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, potential employees, employees, visitors,
and consumers in the district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center;
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty;
(4) provide road, rail, and recreational facilities
for the district;
(5) provide for water facilities, wastewater
facilities, drainage facilities, canals, waterways, bulkheads,
docks, levees, and other similar improvements or facilities for the
district; and
(6) construct, operate, maintain, and improve
navigable waterways, including the dredging of waterways,
reclamation of land, and disposal of dredge materials.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, parking, and street art objects are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
(g) Rail facilities and improvements are:
(1) necessary and convenient for the use and
implementation of the district's navigation facilities and
improvements;
(2) necessary components of navigation facilities and
improvements;
(3) considered to be navigation facilities and
improvements; and
(4) necessary and convenient for the development and
expansion of transportation in this state.
(h) Levee facilities and improvements are:
(1) necessary and convenient for the use and
implementation of the district's navigation facilities and
improvements;
(2) necessary components of navigation facilities and
improvements;
(3) considered to be navigation facilities and
improvements; and
(4) necessary and convenient for the development and
expansion of transportation in this state.
Sec. 3942.005. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bonds for the purposes
for which the district is created or to pay the principal of and
interest on the bonds;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3942.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under
Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code;
(3) an enterprise zone created under Chapter 2303,
Government Code; or
(4) an industrial district created under Chapter 42,
Local Government Code.
Sec. 3942.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3942.008. CONSTRUCTION OF CHAPTER. This chapter shall
be liberally construed in conformity with the findings and purposes
stated in this chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3942.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five voting directors who serve staggered
terms of four years, with two or three directors' terms expiring
June 1 of each odd-numbered year.
(b) The board by resolution may change the number of voting
directors on the board if the board determines that the change is in
the best interest of the district. The board may not consist of
fewer than 5 or more than 11 voting directors.
Sec. 3942.052. DIRECTOR QUALIFICATIONS. A person is
eligible to serve as a director of the district only if the person
meets the eligibility requirements to register as a voter in this
state under Section 13.001, Election Code.
Sec. 3942.053. APPOINTMENT OF VOTING DIRECTORS. The mayor
and members of the governing body of the city shall appoint voting
directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
Sec. 3942.054. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Sec. 3942.055. QUORUM. For purposes of determining the
requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including
death, resignation, or disqualification;
(2) a director who is abstaining from participation in
a vote because of a conflict of interest; or
(3) a nonvoting director.
Sec. 3942.056. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses as
provided by Section 49.060, Water Code. Sections 375.069 and
375.070, Local Government Code, do not apply to the board.
Sec. 3942.057. INITIAL VOTING DIRECTORS. (a) The initial
board consists of the following voting directors:
Pos. No. Name of Director Pos. No. Name of Director
Pos. No. Name of Director
1 Joseph Wetegrove 1 Joseph Wetegrove
1 Joseph Wetegrove
2 Richard Dupriest 2 Richard Dupriest
2 Richard Dupriest
3 Jane Helm 3 Jane Helm
3 Jane Helm
4 Steve Ray 4 Steve Ray
4 Steve Ray
5 Raymond Wetegrove 5 Raymond Wetegrove
5 Raymond Wetegrove
(b) Of the initial directors, the terms of directors
appointed for positions one through three expire June 1, 2021, and
the terms of directors appointed for positions four and five expire
June 1, 2019.
(c) Section 3942.053 does not apply to this section.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3942.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3942.102. IMPROVEMENT PROJECTS AND SERVICES. The
district may provide, design, construct, acquire, improve,
relocate, operate, maintain, or finance an improvement project or
service using any money available to the district, or contract with
a governmental or private entity to provide, design, construct,
acquire, improve, relocate, operate, maintain, or finance an
improvement project or service authorized under this chapter or
Chapter 375, Local Government Code.
Sec. 3942.103. 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. 3942.104. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 3942.105. AGREEMENTS; GRANTS. (a) As provided by
Chapter 375, Local Government Code, the district may make an
agreement with or accept a gift or grant from any person. The
district shall promptly notify the city of any gift or grant
accepted by the district.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3942.106. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or the city, to provide law enforcement
services in the district for a fee.
Sec. 3942.107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3942.108. 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. 3942.109. 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. 3942.110. ANNEXATION OF LAND. The district may annex
land as provided by Subchapter J, Chapter 49, Water Code.
Sec. 3942.111. NAVIGATION DISTRICT POWERS. (a) The
district has the powers provided by the general law of this state
applicable to navigation districts created under Section 59,
Article XVI, Texas Constitution, including Chapters 60 and 62,
Water Code.
(b) The district may purchase, construct, acquire, own,
operate, maintain, improve, or extend, inside and outside the
district, a canal, waterway, bulkhead, dock, or other improvement
or facility necessary or convenient to accomplish the navigation
purposes of the district.
Sec. 3942.112. RAIL FACILITIES. The district may
construct, acquire, improve, maintain, and operate rail facilities
and improvements in aid of those facilities.
Sec. 3942.113. AUTHORITY FOR ROAD PROJECTS. Under Section
52, Article III, Texas Constitution, the district may design,
acquire, construct, finance, issue bonds for, improve, operate,
maintain, and convey to this state, a county, or a municipality for
operation and maintenance macadamized, graveled, or paved roads or
improvements, including storm drainage, in aid of those roads.
Sec. 3942.114. CONVEYANCE AND APPROVAL OF ROAD PROJECT.
(a) The district may convey a road project authorized by Section
3942.113 to:
(1) the municipality or county that will operate and
maintain the road if the municipality or county has approved the
plans and specifications of the road project; or
(2) the state if the state will operate and maintain
the road and the Texas Transportation Commission has approved the
plans and specifications of the road project.
(b) Except as provided by Subsection (c), the district shall
operate and maintain a road project authorized by Section 3942.113
that the district implements and does not convey to a municipality,
a county, or this state under Subsection (a).
(c) The district may agree in writing with a municipality, a
county, or this state to assign operation and maintenance duties to
the district, the municipality, the county, or this state in a
manner other than the manner described in Subsections (a) and (b).
Sec. 3942.115. CONSENT OF CITY REQUIRED. The district may
not take any of the following actions until the city has consented
by ordinance or resolution to the creation of the district and to
the inclusion of land in the district:
(1) hold an election under Subchapter L, Chapter 375,
Local Government Code;
(2) impose an ad valorem tax;
(3) impose an assessment;
(4) issue bonds; or
(5) enter into an agreement to reimburse the costs of
facilities.
Sec. 3942.116. LIMITATION ON USE OF EMINENT DOMAIN. The
district may not exercise the power of eminent domain outside the
district to acquire a site or easement for:
(1) a road project authorized by Section 3942.113; or
(2) a recreational facility as defined by Section
49.462, Water Code.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3942.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 3942.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or Chapter
375, Local Government Code, using any money available to the
district.
Sec. 3942.153. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by
the owners of a majority of the assessed value of real property in
the district subject to assessment according to the most recent
certified tax appraisal roll for the county.
Sec. 3942.154. ASSESSMENTS; LIENS FOR ASSESSMENTS.
(a) The board by resolution may impose and collect an assessment
for any purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3942.201. ELECTIONS REGARDING TAXES AND BONDS.
(a) The district may issue, without an election, bonds, notes, and
other obligations secured by:
(1) revenue other than ad valorem taxes; or
(2) contract payments described by Section 3942.203.
(b) The district must hold an election in the manner
provided by Subchapter L, Chapter 375, Local Government Code, to
obtain voter approval before the district may impose an ad valorem
tax or issue bonds payable from ad valorem taxes.
(c) Section 375.243, Local Government Code, does not apply
to the district.
(d) All or any part of any facilities or improvements that
may be acquired by a district by the issuance of its bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
Sec. 3942.202. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election held in accordance with Section 3942.201, the district may
impose an operation and maintenance tax on taxable property in the
district in accordance with Section 49.107, Water Code, for any
district purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Sec. 3942.203. CONTRACT TAXES. (a) In accordance with
Section 49.108, Water Code, the district may impose a tax other than
an operation and maintenance tax and use the revenue derived from
the tax to make payments under a contract after the provisions of
the contract have been approved by a majority of the district voters
voting at an election held for that purpose.
(b) A contract approved by the district voters may contain a
provision stating that the contract may be modified or amended by
the board without further voter approval.
Sec. 3942.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
determined by the board. Section 375.205, Local Government Code,
does not apply to a loan, line of credit, or other borrowing from a
bank or financial institution secured by revenue other than ad
valorem taxes.
(b) The district may issue bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
(c) The limitation on the outstanding principal amount of
bonds, notes, and other obligations provided by Section 49.4645,
Water Code, does not apply to the district.
Sec. 3942.205. TAXES FOR BONDS. At the time the district
issues bonds payable wholly or partly from ad valorem taxes, the
board shall provide for the annual imposition of a continuing
direct annual ad valorem tax, without limit as to rate or amount,
for each year that all or part of the bonds are outstanding as
required and in the manner provided by Sections 54.601 and 54.602,
Water Code.
Sec. 3942.206. CITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the city is not required to pay a bond, note, or
other obligation of the district.
SECTION 2. The Ingleside Improvement District initially
includes all territory contained in the following area:
Being 625 acres, more or less, out of the Wm McDonough Survey,
Abstract 184, the R.S. Williamson Survey, Abstract 283, the Edmond
St. John Survey, Abstract 250, the Louis Von Zacharias Survey,
Abstract 272, and the John Robinson Survey, Abstract 226, all
tracts located in the City of Ingleside, San Patricio County,
Texas.
SECTION 3. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor,
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. (a) Section 3942.116, Special District Local
Laws Code, as added by Section 1 of this Act, takes effect only if
this Act receives a two-thirds vote of all the members elected to
each house.
(b) If this Act does not receive a two-thirds vote of all the
members elected to each house, Subchapter C, Chapter 3942, Special
District Local Laws Code, as added by Section 1 of this Act, is
amended by adding Section 3942.116 to read as follows:
Sec. 3942.116. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
(c) This section is not intended to be an expression of a
legislative interpretation of the requirements of Section 17(c),
Article I, Texas Constitution.
SECTION 5. 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.
Pos. No. Name of Director
1 Joseph Wetegrove
2 Richard Dupriest
3 Jane Helm
4 Steve Ray
5 Raymond Wetegrove