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.