JBM H.B. 3571 75(R)BILL ANALYSIS


NATURAL RESOURCES
H.B. 3571
By: Zbranek
5-7-97
Committee Report (Amended)



BACKGROUND 

Mont Belvieu is a city located in northwestern Chambers County,
approximately 40 miles east of Houston.  The city has a population of
approximately 2,000 residents.  The corporate limits of the city encompass
approximately 13 miles.  Part of the city rests atop a geological
formation known as the "hill" which  is a salt dome.  The salt dome has
developed into a petrochemical industrial complex of great value to the
City of Mont Belvieu and Chambers County.   

Some residents of the city live near production facilities, storage tanks,
and transmission lines of dangerous petrochemicals.  While the industrial
entities of the area have taken measures to ensure safety, a risk still
exists to residents and property owners due to the volatile nature of the
materials produced in the area.  An industrial district would allow for
zoning powers which could help purchase and relocate residents and
businesses to create a safer environment for the citizens of Mont Belvieu. 

PURPOSE

To create the Chambers County Improvement District No. 2 and establish its
powers. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Creates the Chambers County Improvement District No. 2 ("the
district") to accomplish the purposes of Article XVI, Section 59 and
Article III, Section 52-a, Texas Constitution, and other purposes;
provides the name of the name of the district may be changed by resolution
of the board with certain restrictions; states that creation of the
district is essential to accomplish certain purposes; makes certain
findings with respect to creation of the district; provides that the
district will not act as an agent or instrumentality of a private
interest; states legislative findings related to the creation of the
district; provides that this Act shall be liberally construed in
conformance with the legislative findings and purposes of this Act. 

SECTION 2.  Definitions.

SECTION 3.  Establishes the boundaries of the district.

SECTION 4.  States that the boundaries and field notes of the district
form a closure.  States that if a mistake is made in the field notes or in
copying the field notes, it does not affect the organization, existence,
or validity of the district, the right of the district to issue bonds or
to issue any other type of obligations for the purposes for which the
district is created or to pay the principal of and interest on the bonds
or obligations, or the right of the district to levy and collect taxes, or
affect in any other manner the legality or operation of the district or
its governing body. 

SECTION 5.  (a) Provides that the district is governed by a board of seven
directors who shall serve staggered four-year terms.   
  (b) Names the members of the initial board of directors.  
 (c) Provides for terms of certain initial directors, and nominations and
recommendations of subsequent directors;  
 (d)  Provides for the resignation of certain initial directors and an
increase in the number of directors from seven to eleven within a certain
time of completion of the purchase program in the district.   
 (e)  Provides director qualifications.  
 (e)  Authorizes and prescribes manner for appointments in the event of a
vacancy.   
 (f)   Provides for the removal of directors under certain conditions.  
 (g)  Requires and prescribes procedures for directors to execute bonds.  
 (h)  Provides for elections of officers.  
 (i)   Provides quorum requirements.  
 (j)  Provides that the board is governed by Chapter 375, Local Government
Code, to the extent that such chapter does not conflict with this Act, and
specifically excluding Section 375.169 of such chapter.  States provisions
related to circumstances under which qualified directors can participate
in discussions and decisions of the district.   
 (k)  Provides that directors may be compensated in the manner provided by
Section 49.060, Water Code.   

SECTION 6.  Establishes purposes for which the district is created.

SECTION 7.  POWERS.  Establishes general powers for the district,
including all of the rights, powers, privileges, authority, and functions
conferred by the general laws of this state applicable to districts
created under Chapter 375, Local Government code, which are necessary and
convenient to accomplish the purposes for which the district is created as
set forth in Section 6. 

SECTION 8.  (a)  Establishes additional specific powers and duties of the
district.   
 (b)  Provides zoning powers, as granted by Chapter 211, Local Government
Code; also provides certain restrictions and provisions concerning use of
such zoning powers.     
 (c)  Authorizes the district to purchase property the use of which does
not conform to zoning regulations and provides for other requirements and
formulas when obtaining property, including relocation requirements.   
 (d)  Gives the district eminent domain authority for property inside the
district, and provides for certain requirements, restrictions, and
governing law concerning eminent domain and damage costs.  
 (e)  Provides that the district may adopt regulations governing
businesses within the boundaries of the district and rules to enforce such
regulations, and places certain restrictions on such regulations;
provides that the district may adopt regulations concerning the health,
safety, and general welfare of residents and property owners in the
district, and prohibits the city from adopting overlapping regulations.  
 (f) Provides that the district will pay the cost of altering certain
facilities if the facilities are required to be altered by the district.   
 (g) Prohibits the district from closing or impeding public access to
roads.   
 (h) Limits all the district's exercise of authority to the area within
the district. 

SECTION 9.  Provides that the district is a unit of government for
purposes of Chapter 101, Civil Practice and Remedies Code; provides that
the district's operations are essential governmental functions.  

SECTION 10.  Authorizes the district to exclude territory from its
boundaries as provided in Chapters 49 and 54 of the Water Code.  This
section also requires a hearing on the exclusion of land on the written
petition of property or landowners in the district. 

SECTION 11.  Authorizes the District to levy an ad valorem tax for payment
of bonds, maintenance, and operation purposes;  provides that Chapter 375,
Local Government Code, and the Tax Code shall govern the district with
respect to its power to levy and collect ad valorem taxes; provides that
the board may not levy or collect assessments. 

SECTION 12.  Authorizes the issuance of district bonds or other
obligations and provides certain  requirements concerning bonds, including
requirements in accordance with the provisions of Chapter 375, Local
Government Code. 

SECTION 13.  Provides for confirmation, bond, maintenance tax, and other
elections, as provided by Chapters 49 and 54 of the Water Code.  Also,
provides for certain requirements concerning bond elections, including
holding an election in the manner provided by Chapter 375, Subchapter L,
Local Government Code. 

SECTION 14.  (a)  Requires that the district obtain the approval of the
City of Mont Belvieu prior to anyone or more of the following: 
 (1)  issuance of bonds for any improvement project comprised of the
purchase or construction of facilities; or 
 (2) plans and specifications of any improvement project that involves the
use of the rightof-ways of streets, roads, or highways or the use of
municipal land. 

 (b) States that the city shall never be obligated to pay any bonds,
notes, or other obligations of the district, except as provided by this
Act. 

SECTION 15.  Provides that the district may annex land upon a petition of
the owners thereof in accordance with Chapter 49 and 54 of the Water Code,
subject to the approval of the governing body of the city. 

SECTION 16.  Authorizes the district to enter contracts to carry out the
purposes of the bill. 

SECTION 17.  Provides for the dissolution of the district, including bond
indebtedness exceptions and dissolution requirements and procedures. 

SECTION 18.  Provides that the creation of the district and the exercise
of its authority will have no effect on the powers of the City of Mont
Belvieu within its boundaries. 

SECTION 19.  Makes findings relating to the notice and procedural
requirements for the bill. 

SECTION 20.  Severability clause.

SECTION 21.  Emergency clause. 

EXPLANATION OF AMENDMENTS

Committee Amendment #1:  Replaces Section 5 of the bill with a new Section
5.  The new section alters the Board of Directors from a seven member
board to a fifteen member board.  The appointments to the initial board
allow each of the nine participating industries a position on the board,
four residents a position, two members to be appointed by the City of Mont
Belvieu, and the Mayor of the city in a non-voting advisory capacity.  The
amendment also outlines the dissolution of the board if needed. 
     
Committee Amendment #2:  This amendment redefines the meets and bounds,
adds some properties, and eliminates some properties.  It further
clarifies the boundaries of the district.