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Texas Senate Bill SB2271

Texas 2017 - 85th Regular

Texas Senate Bill SB2271 Compare Versions

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1-S.B. No. 2271
1+By: Creighton S.B. No. 2271
2+ (Phelan)
23
34
5+ A BILL TO BE ENTITLED
46 AN ACT
57 relating to the creation of Port Neches Improvement District;
68 providing authority to issue bonds; providing authority to impose
79 assessments, fees, or taxes.
810 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
911 SECTION 1. Subtitle C, Title 4, Special District Local Laws
1012 Code, is amended by adding Chapter 3956 to read as follows:
1113 CHAPTER 3956. PORT NECHES IMPROVEMENT DISTRICT
1214 SUBCHAPTER A. GENERAL PROVISIONS
1315 Sec. 3956.001. DEFINITIONS. In this chapter:
1416 (1) "Board" means the district's board of directors.
1517 (2) "City" means the City of Port Neches.
1618 (3) "County" means Jefferson County.
1719 (4) "Director" means a board member.
1820 (5) "District" means the Port Neches Improvement
1921 District.
2022 Sec. 3956.002. NATURE OF DISTRICT. The Port Neches
2123 Improvement District is a special district created under Section
2224 59, Article XVI, Texas Constitution.
2325 Sec. 3956.003. PURPOSE; DECLARATION OF INTENT. (a) The
2426 creation of the district is essential to accomplish the purposes of
2527 Sections 52 and 52-a, Article III, and Section 59, Article XVI,
2628 Texas Constitution, and other public purposes stated in this
2729 chapter. By creating the district and in authorizing the city, the
2830 county, and other political subdivisions to contract with the
2931 district, the legislature has established a program to accomplish
3032 the public purposes set out in Section 52-a, Article III, Texas
3133 Constitution.
3234 (b) The creation of the district is necessary to promote,
3335 develop, encourage, and maintain employment, commerce,
3436 transportation, housing, tourism, recreation, the arts,
3537 entertainment, economic development, safety, and the public
3638 welfare in the district.
3739 (c) This chapter and the creation of the district may not be
3840 interpreted to relieve the city or the county from providing the
3941 level of services provided as of the effective date of the Act
4042 enacting this chapter to the area in the district. The district is
4143 created to supplement and not to supplant city or county services
4244 provided in the district.
4345 Sec. 3956.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
4446 (a) The district is created to serve a public use and benefit.
4547 (b) All land and other property included in the district
4648 will benefit from the improvements and services to be provided by
4749 the district under powers conferred by Sections 52 and 52-a,
4850 Article III, and Section 59, Article XVI, Texas Constitution, and
4951 other powers granted under this chapter.
5052 (c) The creation of the district is in the public interest
5153 and is essential to further the public purposes of:
5254 (1) developing and diversifying the economy of the
5355 state;
5456 (2) eliminating unemployment and underemployment; and
5557 (3) developing or expanding transportation and
5658 commerce.
5759 (d) The district will:
5860 (1) promote the health, safety, and general welfare of
5961 residents, employers, potential employees, employees, visitors,
6062 and consumers in the district, and of the public;
6163 (2) provide needed funding for the district to
6264 preserve, maintain, and enhance the economic health and vitality of
6365 the district territory as a community and business center;
6466 (3) promote the health, safety, welfare, and enjoyment
6567 of the public by providing pedestrian ways and by landscaping and
6668 developing certain areas in the district, which are necessary for
6769 the restoration, preservation, and enhancement of scenic beauty;
6870 (4) provide for road and recreational facilities for
6971 the district; and
7072 (5) provide for water, wastewater, drainage, canals,
7173 waterways, bulkheads, docks, and other similar improvement
7274 facilities for the district.
7375 (e) Pedestrian ways along or across a street, whether at
7476 grade or above or below the surface, and street lighting, street
7577 landscaping, parking, and street art objects are parts of and
7678 necessary components of a street and are considered to be a street
7779 or road improvement.
7880 (f) The district will not act as the agent or
7981 instrumentality of any private interest even though the district
8082 will benefit many private interests as well as the public.
8183 Sec. 3956.005. DISTRICT TERRITORY. (a) The district is
8284 initially composed of the territory described by Section 2 of the
8385 Act enacting this chapter.
8486 (b) The boundaries and field notes contained in Section 2 of
8587 the Act enacting this chapter form a closure. A mistake in the
8688 field notes or in copying the field notes in the legislative process
8789 does not affect the district's:
8890 (1) organization, existence, or validity;
8991 (2) right to issue any type of bonds for the purposes
9092 for which the district is created or to pay the principal of and
9193 interest on the bonds;
9294 (3) right to impose or collect an assessment or tax; or
9395 (4) legality or operation.
9496 Sec. 3956.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
9597 All or any part of the area of the district is eligible to be
9698 included in:
9799 (1) a tax increment reinvestment zone created under
98100 Chapter 311, Tax Code;
99101 (2) a tax abatement reinvestment zone created under
100102 Chapter 312, Tax Code;
101103 (3) an enterprise zone created under Chapter 2303,
102104 Government Code; or
103105 (4) an industrial district created under Chapter 42,
104106 Local Government Code.
105107 Sec. 3956.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
106108 DISTRICTS LAW. Except as otherwise provided by this chapter,
107109 Chapter 375, Local Government Code, applies to the district.
108110 Sec. 3956.008. LIBERAL CONSTRUCTION OF CHAPTER. This
109111 chapter shall be liberally construed in conformity with the
110112 findings and purposes stated in this chapter.
111113 SUBCHAPTER B. BOARD OF DIRECTORS
112114 Sec. 3956.051. GOVERNING BODY; TERMS. The district is
113115 governed by a board of seven voting directors who serve staggered
114116 terms of two years, with three or four directors' terms expiring
115117 June 1 of each year.
116118 Sec. 3956.052. ELIGIBILITY OF DIRECTORS. A person is
117119 eligible to serve as a voting or nonvoting director only if the
118120 person is eligible to register to vote under Section 13.001,
119121 Election Code.
120122 Sec. 3956.053. APPOINTMENT OF VOTING DIRECTORS. The
121123 governing body of the city, including the mayor, shall appoint the
122124 voting directors. A person is appointed if a majority of the
123125 members of the governing body vote to appoint that person.
124126 Sec. 3956.054. NONVOTING DIRECTORS. The board may appoint
125127 nonvoting directors to serve at the pleasure of the voting
126128 directors.
127129 Sec. 3956.055. QUORUM. For purposes of determining the
128130 requirements for a quorum of the board, the following are not
129131 counted:
130132 (1) a board position vacant for any reason, including
131133 death, resignation, or disqualification;
132134 (2) a director who is abstaining from participation in
133135 a vote because of a conflict of interest; or
134136 (3) a nonvoting director.
135137 Sec. 3956.056. COMPENSATION. A director is entitled to
136138 receive fees of office and reimbursement for actual expenses as
137139 provided by Section 49.060, Water Code. Sections 375.069 and
138140 375.070, Local Government Code, do not apply to the board.
139141 Sec. 3956.057. INITIAL VOTING DIRECTORS. (a) The initial
140142 board consists of the following directors:
141143 Pos. No. Name of Director Pos. No. Name of Director
142144 Pos. No. Name of Director
143145 1. David LeJeune 1. David LeJeune
144146 1. David LeJeune
145147 2. Leslie Symmonds 2. Leslie Symmonds
146148 2. Leslie Symmonds
147149 3. Olin Clotiaux 3. Olin Clotiaux
148150 3. Olin Clotiaux
149151 4. Doug Savant 4. Doug Savant
150152 4. Doug Savant
151153 5. Lance Bradley 5. Lance Bradley
152154 5. Lance Bradley
153155 6. Kathy Levingston 6. Kathy Levingston
154156 6. Kathy Levingston
155157 7. Aspen Hebert 7. Aspen Hebert
156158 7. Aspen Hebert
157159 (b) Of the initial directors, the terms of directors
158160 appointed for positions one through four expire June 1, 2018, and
159161 the terms of directors appointed for positions five through seven
160162 expire June 1, 2019.
161163 (c) Section 3956.053 does not apply to this section.
162164 (d) This section expires September 1, 2019.
163165 SUBCHAPTER C. POWERS AND DUTIES
164166 Sec. 3956.101. GENERAL POWERS AND DUTIES. The district has
165167 the powers and duties necessary to accomplish the purposes for
166168 which the district is created.
167169 Sec. 3956.102. IMPROVEMENT PROJECTS AND SERVICES. The
168170 district may provide, design, construct, acquire, improve,
169171 relocate, operate, maintain, or finance an improvement project or
170172 service using any money available to the district, or contract with
171173 a governmental or private entity to provide, design, construct,
172174 acquire, improve, relocate, operate, maintain, or finance an
173175 improvement project or service authorized under this chapter or
174176 Chapter 375, Local Government Code.
175177 Sec. 3956.103. DEVELOPMENT CORPORATION POWERS. The
176178 district, using money available to the district, may exercise the
177179 powers given to a development corporation under Chapter 505, Local
178180 Government Code, including the power to own, operate, acquire,
179181 construct, lease, improve, or maintain a project under that
180182 chapter.
181183 Sec. 3956.104. NONPROFIT CORPORATION. (a) The board by
182184 resolution may authorize the creation of a nonprofit corporation to
183185 assist and act for the district in implementing a project or
184186 providing a service authorized by this chapter.
185187 (b) The nonprofit corporation:
186188 (1) has each power of and is considered to be a local
187189 government corporation created under Subchapter D, Chapter 431,
188190 Transportation Code; and
189191 (2) may implement any project and provide any service
190192 authorized by this chapter.
191193 (c) The board shall appoint the board of directors of the
192194 nonprofit corporation. The board of directors of the nonprofit
193195 corporation shall serve in the same manner as the board of directors
194196 of a local government corporation created under Subchapter D,
195197 Chapter 431, Transportation Code, except that a board member is not
196198 required to reside in the district.
197199 Sec. 3956.105. AGREEMENTS; GRANTS. (a) As provided by
198200 Chapter 375, Local Government Code, the district may make an
199201 agreement with or accept a gift, grant, or loan from any person.
200202 The district shall promptly notify the city of any gift or grant
201203 accepted by the district.
202204 (b) The implementation of a project is a governmental
203205 function or service for the purposes of Chapter 791, Government
204206 Code.
205207 Sec. 3956.106. LAW ENFORCEMENT SERVICES. To protect the
206208 public interest, the district may contract with a qualified party,
207209 including the county or the city, to provide law enforcement
208210 services in the district for a fee.
209211 Sec. 3956.107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
210212 district may join and pay dues to a charitable or nonprofit
211213 organization that performs a service or provides an activity
212214 consistent with the furtherance of a district purpose.
213215 Sec. 3956.108. PARKING FACILITIES. (a) The district may
214216 acquire, lease as lessor or lessee, construct, develop, own,
215217 operate, and maintain parking facilities or a system of parking
216218 facilities, including lots, garages, parking terminals, or other
217219 structures or accommodations for parking motor vehicles off the
218220 streets and related appurtenances.
219221 (b) The district's parking facilities serve the public
220222 purposes of the district and are owned, used, and held for a public
221223 purpose even if leased or operated by a private entity for a term of
222224 years.
223225 (c) The district's parking facilities are parts of and
224226 necessary components of a street and are considered to be a street
225227 or road improvement.
226228 (d) The development and operation of the district's parking
227229 facilities may be considered an economic development program.
228230 Sec. 3956.109. ANNEXATION OF LAND. The district may annex
229231 land as provided by Subchapter J, Chapter 49, Water Code.
230232 Sec. 3956.110. NAVIGATION DISTRICT POWERS. The district
231233 has the powers provided by the general law of this state applicable
232234 to navigation districts created under Section 59, Article XVI,
233235 Texas Constitution, including Chapters 60 and 62, Water Code.
234236 Sec. 3956.111. APPROVAL BY CITY. (a) Except as provided
235237 by Subsection (c), the district must obtain the approval of the city
236238 for:
237239 (1) the issuance of bonds or any other obligations,
238240 subject to Section 3956.201 or 3956.203;
239241 (2) the plans and specifications of an improvement
240242 project financed by bonds; and
241243 (3) the plans and specifications of an improvement
242244 project related to the use of land owned by the city, an easement
243245 granted to or by the city, or a right-of-way of a street, road, or
244246 highway.
245247 (b) The district may not issue bonds until the governing
246248 body of the city adopts a resolution or ordinance authorizing the
247249 issuance of the bonds.
248250 (c) If the district obtains the approval of the city's
249251 governing body of a capital improvements budget for a period not to
250252 exceed five years, the district may finance the capital
251253 improvements and issue bonds specified in the budget without
252254 further approval from the city.
253255 (d) The governing body of the city:
254256 (1) is not required to adopt a resolution or ordinance
255257 to approve plans and specifications described by Subsection (a);
256258 and
257259 (2) may establish an administrative process to approve
258260 plans and specifications described by Subsection (a) without the
259261 involvement of the governing body.
260262 Sec. 3956.112. CONSENT OF CITY REQUIRED. The district may
261263 not take any of the following actions until the city has consented
262264 by ordinance or resolution to the creation of the district and to
263265 the inclusion of land in the district:
264266 (1) hold an election under Subchapter L, Chapter 375,
265267 Local Government Code;
266268 (2) impose an ad valorem tax;
267269 (3) impose an assessment;
268270 (4) issue bonds; or
269271 (5) enter into an agreement to reimburse the costs of
270272 facilities.
271273 Sec. 3956.113. NO EMINENT DOMAIN POWER. The district may
272274 not exercise the power of eminent domain.
273275 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
274276 Sec. 3956.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The
275277 board by resolution shall establish the number of directors'
276278 signatures and the procedure required for a disbursement or
277279 transfer of district money.
278280 Sec. 3956.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
279281 The district may acquire, construct, finance, operate, or maintain
280282 any improvement or service authorized under this chapter or Chapter
281283 375, Local Government Code, using any money available to the
282284 district.
283285 Sec. 3956.153. PETITION REQUIRED FOR FINANCING SERVICES AND
284286 IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
285287 service or improvement project with assessments under this chapter
286288 unless a written petition requesting that service or improvement
287289 has been filed with the board.
288290 (b) A petition filed under Subsection (a) must be signed by
289291 the owners of a majority of the assessed value of real property in
290292 the district subject to assessment according to the most recent
291293 certified tax appraisal roll for the county.
292294 Sec. 3956.154. ASSESSMENTS; LIENS FOR ASSESSMENTS.
293295 (a) The board by resolution may impose and collect an assessment
294296 for any purpose authorized by this chapter in all or any part of the
295297 district.
296298 (b) An assessment, a reassessment, or an assessment
297299 resulting from an addition to or correction of the assessment roll
298300 by the district, penalties and interest on an assessment or
299301 reassessment, an expense of collection, and reasonable attorney's
300302 fees incurred by the district:
301303 (1) are a first and prior lien against the property
302304 assessed;
303305 (2) are superior to any other lien or claim other than
304306 a lien or claim for county, school district, or municipal ad valorem
305307 taxes; and
306308 (3) are the personal liability of and a charge against
307309 the owners of the property even if the owners are not named in the
308310 assessment proceedings.
309311 (c) The lien is effective from the date of the board's
310312 resolution imposing the assessment until the date the assessment is
311313 paid. The board may enforce the lien in the same manner that the
312314 board may enforce an ad valorem tax lien against real property.
313315 (d) The board may make a correction to or deletion from the
314316 assessment roll that does not increase the amount of assessment of
315317 any parcel of land without providing notice and holding a hearing in
316318 the manner required for additional assessments.
317319 SUBCHAPTER E. TAXES AND BONDS
318320 Sec. 3956.201. ELECTIONS REGARDING TAXES AND BONDS.
319321 (a) The district may issue, without an election, bonds, notes, and
320322 other obligations secured by:
321323 (1) revenue other than ad valorem taxes; or
322324 (2) contract payments described by Section 3956.203.
323325 (b) The district must hold an election in the manner
324326 provided by Subchapter L, Chapter 375, Local Government Code, to
325327 obtain voter approval before the district may impose an ad valorem
326328 tax or issue bonds payable from ad valorem taxes.
327329 (c) Section 375.243, Local Government Code, does not apply
328330 to the district.
329331 (d) All or any part of any facilities or improvements that
330332 may be acquired by a district by the issuance of its bonds may be
331333 submitted as a single proposition or as several propositions to be
332334 voted on at the election.
333335 Sec. 3956.202. OPERATION AND MAINTENANCE TAX. (a) If
334336 authorized by a majority of the district voters voting at an
335337 election held in accordance with Section 3956.201, the district may
336338 impose an operation and maintenance tax on taxable property in the
337339 district in accordance with Section 49.107, Water Code, for any
338340 district purpose, including to:
339341 (1) maintain and operate the district;
340342 (2) construct or acquire improvements; or
341343 (3) provide a service.
342344 (b) The board shall determine the tax rate. The rate may not
343345 exceed the rate approved at the election.
344346 Sec. 3956.203. CONTRACT TAXES. (a) In accordance with
345347 Section 49.108, Water Code, the district may impose a tax other than
346348 an operation and maintenance tax and use the revenue derived from
347349 the tax to make payments under a contract after the provisions of
348350 the contract have been approved by a majority of the district voters
349351 voting at an election held for that purpose.
350352 (b) A contract approved by the district voters may contain a
351353 provision stating that the contract may be modified or amended by
352354 the board without further voter approval.
353355 Sec. 3956.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
354356 AND OTHER OBLIGATIONS. (a) The district may borrow money on terms
355357 determined by the board. Section 375.205, Local Government Code,
356358 does not apply to a loan, line of credit, or other borrowing from a
357359 bank or financial institution secured by revenue other than ad
358360 valorem taxes.
359361 (b) The district may issue bonds, notes, or other
360362 obligations payable wholly or partly from ad valorem taxes,
361363 assessments, impact fees, revenue, contract payments, grants, or
362364 other district money, or any combination of those sources of money,
363365 to pay for any authorized district purpose.
364366 Sec. 3956.205. TAXES FOR BONDS. At the time the district
365367 issues bonds payable wholly or partly from ad valorem taxes, the
366368 board shall provide for the annual imposition of a continuing
367369 direct annual ad valorem tax, without limit as to rate or amount,
368370 for each year that all or part of the bonds are outstanding as
369371 required and in the manner provided by Sections 54.601 and 54.602,
370372 Water Code.
371373 Sec. 3956.206. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
372374 OBLIGATIONS. Except as provided by Section 375.263, Local
373375 Government Code, a municipality is not required to pay bonds,
374376 notes, or other obligations of the district.
375377 SECTION 2. The Port Neches Improvement District initially
376378 includes all territory contained in the following area:
377379 Lots one through eighteen (1-18), Block One (1), Oaks Subdivision
378380 of the City of Port Neches, Jefferson County, Texas as per the plat
379381 of said subdivision recorded in Volume 1, page 100, map records of
380382 said county.
381383 Lots three through thirty-three (3-33), Block Two (2), Oaks
382384 Subdivision of the City of Port Neches, Jefferson County, Texas as
383385 per the plat of said subdivision recorded in Volume 1, page 100, map
384386 records of said county.
385387 Lots one through five (1-5), Block Eighteen (18), of Oaks Addition,
386388 an Addition to the City of Port Neches, Jefferson County, Texas,
387389 according to the map or plat thereof, of record in Volume 1, page
388390 100, Map Records of Jefferson County, Texas.
389391 SECTION 3. (a) The legal notice of the intention to
390392 introduce this Act, setting forth the general substance of this
391393 Act, has been published as provided by law, and the notice and a
392394 copy of this Act have been furnished to all persons, agencies,
393395 officials, or entities to which they are required to be furnished
394396 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
395397 Government Code.
396398 (b) The governor, one of the required recipients, has
397399 submitted the notice and Act to the Texas Commission on
398400 Environmental Quality.
399401 (c) The Texas Commission on Environmental Quality has filed
400402 its recommendations relating to this Act with the governor, the
401403 lieutenant governor, and the speaker of the house of
402404 representatives within the required time.
403405 (d) All requirements of the constitution and laws of this
404406 state and the rules and procedures of the legislature with respect
405407 to the notice, introduction, and passage of this Act are fulfilled
406408 and accomplished.
407409 SECTION 4. This Act takes effect immediately if it receives
408410 a vote of two-thirds of all the members elected to each house, as
409411 provided by Section 39, Article III, Texas Constitution. If this
410412 Act does not receive the vote necessary for immediate effect, this
411413 Act takes effect September 1, 2017.
412- ______________________________ ______________________________
413- President of the Senate Speaker of the House
414- I hereby certify that S.B. No. 2271 passed the Senate on
415- May 11, 2017, by the following vote: Yeas 31, Nays 0.
416- ______________________________
417- Secretary of the Senate
418- I hereby certify that S.B. No. 2271 passed the House on
419- May 19, 2017, by the following vote: Yeas 137, Nays 7, two
420- present not voting.
421- ______________________________
422- Chief Clerk of the House
423- Approved:
424- ______________________________
425- Date
426- ______________________________
427- Governor
428414
429415 Pos. No. Name of Director
430416
431417 1. David LeJeune
432418
433419 2. Leslie Symmonds
434420
435421 3. Olin Clotiaux
436422
437423 4. Doug Savant
438424
439425 5. Lance Bradley
440426
441427 6. Kathy Levingston
442428
443429 7. Aspen Hebert