86R25742 SMT-D
By: Hernandez H.B. No. 2712
Substitute the following for H.B. No. 2712:
By: Huberty C.S.H.B. No. 2712
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. 3943.0101. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "County" means Harris County.
(4) "District" means the Channelview Improvement
District.
Sec. 3943.0102. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Section 59, Article
XVI, Texas Constitution.
Sec. 3943.0103. 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. 3943.0104. 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. 3943.0105. 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. 3943.0106. CONFIRMATION AND DIRECTORS' ELECTION
REQUIRED. The temporary 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.
Sec. 3943.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Chapter 375, Local Government Code, does not apply
to the district unless specifically provided otherwise by this
chapter.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3943.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five elected directors.
(b) Except as provided by Section 3943.0204, directors
serve staggered terms of four years.
(c) Directors are elected in the manner provided by
Subchapter D, Chapter 49, Water Code.
(d) To be qualified to serve as a director, a person must be
a resident of the district.
Sec. 3943.0202. 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. 3943.0203. VOTING BY BOARD PRESIDENT RESTRICTED. The
board president may not vote except to break a tie vote.
Sec. 3943.0204. TEMPORARY DIRECTORS. (a) On or after the
effective date of the Act enacting this chapter, the owner or owners
of a majority of the assessed value of the real property in the
district may submit a petition to the commission requesting that
the commission appoint as temporary directors the five persons
named in the petition. The commission shall appoint as temporary
directors the five persons named in the petition.
(b) The temporary directors shall hold an election to elect
five permanent directors as provided by Section 3943.0106.
(c) Temporary directors serve until the earlier of:
(1) the date permanent directors are elected under
Section 3943.0106; or
(2) the fourth anniversary of the effective date of
the Act enacting this chapter.
(d) If permanent directors have not been elected under
Section 3943.0106 and the terms of the temporary directors have
expired, successor temporary directors shall be appointed or
reappointed as provided by Subsection (e) to serve terms that
expire on the earlier of:
(1) the date permanent directors are elected under
Section 3943.0106; or
(2) the fourth anniversary of the date of the
appointment or reappointment.
(e) If Subsection (d) applies, the owner or owners of a
majority of the assessed value of the real property in the district
may submit a petition to the commission requesting that the
commission appoint as successor temporary directors the five
persons named in the petition. The commission shall appoint as
successor temporary directors the five persons named in the
petition.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3943.0301. 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. 3943.0302. 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. 3943.0303. FIREFIGHTING AND MEDICAL EMERGENCY
SERVICES PROHIBITED. (a) The district may not engage in
firefighting activities or provide medical emergency services.
(b) Subchapter L, Chapter 49, Water Code, does not apply to
the district.
Sec. 3943.0304. 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. 3943.0305. 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. 3943.0306. 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. 3943.0307. ANNEXATION OR EXCLUSION OF TERRITORY. The
district may add or exclude territory in the manner provided by
Chapter 375, Local Government Code.
Sec. 3943.0308. NO PEACE OFFICERS. The district may not
employ peace officers.
Sec. 3943.0309. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
SUBCHAPTER D. IMPROVEMENT PROJECTS
Sec. 3943.0401. 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. 3943.0402. 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. 3943.0403. PARKING AND TRANSPORTATION. An improvement
project may include the planning, design, construction,
improvement, maintenance, and operation of an off-street parking
facility, a heliport, a bus terminal, mass transit, and a roadway or
water transportation system.
Sec. 3943.0404. DEMOLITION. An improvement project may
include the removal, razing, demolition, or clearing of land or
improvements in connection with an improvement project.
Sec. 3943.0405. ACQUISITION OF PROPERTY. An improvement
project may include the acquisition of property or an interest in
property in connection with an improvement project.
Sec. 3943.0406. 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, and security;
(4) recreational, educational, or cultural
improvements, enhancements, and services; and
(5) advertising, promotion, and business recruitment.
Sec. 3943.0407. 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. 3943.0501. NO AD VALOREM TAX. The district may not
impose an ad valorem tax.
Sec. 3943.0502. 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. 3943.0503. BORROWING MONEY. The district may borrow
money for a district purpose.
Sec. 3943.0504. 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. 3943.0505. 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 at an election held under Section
3943.0602.
(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. 3943.0601. SALES AND USE 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) a use 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 use 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.
(e) The district may not adopt a sales and use tax if as a
result of the adoption of the tax the combined rate of all sales and
use taxes imposed by the district and other political subdivisions
of this state having territory in the district would exceed two
percent at any location in the district.
Sec. 3943.0602. 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 first uniform election
date that occurs after the time required by Section 3.005, Election
Code.
(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. 3943.0603. 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 by 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 by 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 imposed
by the Channelview Improvement District."
Sec. 3943.0604. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Chapter 323, 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 323, Tax Code, is inconsistent with this chapter.
(b) A reference in Chapter 323, Tax Code, to a county or the
commissioners court of a county is a reference to the district or
the board, respectively, for the purposes of this chapter.
(c) Nothing in this chapter alters, increases, decreases,
or affects a sales and use tax imposed by a political subdivision
other than the district.
Sec. 3943.0605. TAX RATES. The district may impose the
sales and use 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. 3943.0606. ABOLITION OF TAX. The board by order and
without an election may abolish the sales and use tax imposed by the
district.
Sec. 3943.0607. USE OF TAXES. The district may use the
proceeds from the sales and use tax only for the purposes for which
the district was created.
Sec. 3943.0608. 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 I. DISSOLUTION
Sec. 3943.0901. DISSOLUTION BY BOARD ORDER. The board by
order may dissolve the district at any time unless the district has
outstanding indebtedness or contractual obligations, as provided
by Section 375.264, Local Government Code.
Sec. 3943.0902. DISSOLUTION BY ELECTION. (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 under this
section, 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).
(f) Section 375.264, Local Government Code, does not apply
to the dissolution of the district if the voters of the district
vote to dissolve the district under this section.
Sec. 3943.0903. DISSOLUTION BY PETITION. Except as limited
by Section 375.264, Local Government Code, the board shall dissolve
the district on written petition filed with the board by the owners
of:
(1) 66 percent or more of the assessed value of the
property subject to assessment by the district based on the most
recent certified county property tax rolls; or
(2) 66 percent or more of the surface area of the
district, excluding roads, streets, highways, utility
rights-of-way, other public areas, and other property exempt from
assessment by the district according to the most recent certified
county property tax rolls.
Sec. 3943.0904. 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.
Sec. 3943.0905. APPLICABILITY OF OTHER LAW. Sections
375.261 and 375.262, Local Government Code, do not apply to the
district.
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. If the creation of the district is not confirmed
at a confirmation election held under Section 1 of this Act before
September 1, 2023, this Act and Chapter 3943, Special District
Local Laws Code, as added by this Act, expire on that date.
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, 2019.