By Zbranek                                            H.B. No. 3579

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation, administration, powers, and authority of

 1-3     the Chambers County-Cedar Bayou Navigation District.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  CREATION; LEGISLATIVE DECLARATION.  (a)  There is

 1-6     created and established a special district to be known as the

 1-7     "Chambers County- Cedar Bayou Navigation District" that is a

 1-8     governmental agency, a body politic and corporate, and a political

 1-9     subdivision of the state.

1-10           (b)  The name of the district may be changed by resolution of

1-11     the board of directors of the district at any time so long as the

1-12     name is descriptive of the location and the principal powers of the

1-13     district.

1-14           (c)  The creation of the district is declared to be essential

1-15     to the accomplishment of the purposes of Article XVI, Section 59,

1-16     of the Texas Constitution and to the accomplishment of the other

1-17     purposes stated in this Act.

1-18           (d)  The legislature finds, determines, and declares that the

1-19     creation of the district is necessary to diversify the economy of

1-20     the state, promote, develop, expand, encourage, and maintain

1-21     employment, commerce, economic development, and the public welfare,

1-22     to promote the transportation of agricultural, industrial and

1-23     commercial products, to promote the health, safety, and general

1-24     welfare of property owners, residents, employers, and employees, in

 2-1     the district, and the general public, to promote the improvement of

 2-2     rivers, bays, creeks, streams, and canals to permit or to aid

 2-3     navigation and commerce.

 2-4           The district will provide needed funding in the greater Cedar

 2-5     Bayou area to preserve, maintain, and enhance the economic health

 2-6     and vitality of the area as a community and a business and

 2-7     industrial center.  The district will not act as the agent or

 2-8     instrumentality of any private interests even though many private

 2-9     interests will be benefited by the district, as will the general

2-10     public.  The legislature further finds and determines and intends

2-11     that by creating the district it has established a program to

2-12     accomplish the public purposes set out in Article XVI, Section 59,

2-13     Texas Constitution.

2-14           (e)  The legislature finds that all of the land and other

2-15     property included within the boundaries of the district will be

2-16     benefited by the improvements and services to be provided by the

2-17     district under powers conferred by Article XVI, Section 59 of the

2-18     Texas Constitution, and other powers granted under this Act, and

2-19     that the district is created to serve a public use and benefit.

2-20           (f)  This Act shall be liberally construed in conformance

2-21     with the legislative findings and purposes stated in this Act.

2-22           SECTION 2.  DEFINITION.  In this Act, "district" means

2-23     Chambers County-Cedar Bayou Navigation District.

2-24           SECTION 3.  BOUNDARIES.  The district shall include all of

2-25     the territory contained within the following described area:

2-26     BEING approximately 8640 acres of land situated wholly in Chambers

2-27     County, Texas, and being more particularly described by metes and

 3-1     bounds as follows, to-wit:

 3-2     BEGINNING at the most Western Northwest corner of the existing

 3-3     Chambers-Liberty Counties Navigation District boundary on the East

 3-4     Bank of Cedar Bayou for the Southwest corner of this tract of land

 3-5     and being the Northwest corner of the John Ijams League, Abstract

 3-6     No. 15 and the Southwest corner of the John Steele Survey, Abstract

 3-7     No. 227;

 3-8     THENCE in a Northerly direction with the West line of this tract,

 3-9     the West line of the Steele Survey, and the East Bank of Cedar

3-10     Bayou to a point in the North right of way line of Spur 55 for a

3-11     corner of this tract and the Southwest corner of a 6.35 acre tract

3-12     of land belonging to Johnnie G.  Jennings;

3-13     THENCE in an Easterly direction with the North line of this tract

3-14     of land, the North right of way line of Spur 55 and the South line

3-15     of the Johnnie G.  Jennings 6.35 acre tract of land to the East

3-16     corner of said 6.35 acre tract of land in the South line of the

3-17     Rosemary Jennings 61.56 acre tract of land;

3-18     THENCE in an Easterly direction with the North line of this tract

3-19     of land, the South line of said 61.56 acre tract of land, the South

3-20     line of the Rosemary Jennings, et al., 29.47 acre tract of land and

3-21     the North line of the Cedar Crossing Business Park Subdivision

3-22     crossing Spur 55 to the Southeast corner of the Rosemary Jennings,

3-23     et al., 29.47 acre tract of land for a corner of this tract of

3-24     land.  This corner being an interior corner of the Cedar Crossing

3-25     Business Park Subdivision;

3-26     THENCE in a Northerly direction with the West line of this tract of

3-27     land, the West line of the Business Park and the East line of said

 4-1     29.47 acre tract of land to a point for the most Western Northwest

 4-2     corner of the Business Park, the Southwest corner of the Rosemary

 4-3     Jennings, et al., 22.50 acre tract of land and a corner of this

 4-4     tract of land;

 4-5     THENCE in an Easterly direction with the North line of this tract,

 4-6     the North line of the Business Park and the South line of said

 4-7     22.50 acre tract of land to a point for a corner of this tract of

 4-8     land in the West right of way line of West Bay Road;

 4-9     THENCE in a Northerly direction with the West line of this tract of

4-10     land and the West right of way line of West Bay Road crossing Spur

4-11     55 to a point for a corner of this tract of land and the Northeast

4-12     corner of the Rosemary Jennings, et al., 10.00 acre tract of land;

4-13     THENCE in a Westerly direction with the South line of this tract of

4-14     land and the North line of said 10 acre tract of land to a point

4-15     for a corner of this tract of land and the Northwest corner of said

4-16     10 acre tract of land;

4-17     THENCE in a Southerly direction with the East line of this tract of

4-18     land and the West line of said 10 acre tract of land crossing Spur

4-19     55 to a point for a corner of this tract of land and the Northeast

4-20     corner of the Rosemary Jennings, et al., 29.47 acre tract of land;

4-21     THENCE in a Westerly direction with the South line of this tract of

4-22     land, the North line of the said 29.47 acre tract and the North

4-23     line of the Rosemary Jennings 61.56 acre tract of land to a point

4-24     for a corner of this tract of land and the North right of way of

4-25     Spur 55;

4-26     THENCE in a Westerly direction with the South line of this tract,

4-27     the North right of way line of Spur 55 and the South line of the

 5-1     Johnnie Jennings 6.35 acre tract of land to a point for a corner of

 5-2     this tract of land and the Southwest corner of said 6.35 acre tract

 5-3     of land.  This corner is on the West line of the Steele Survey and

 5-4     the East Bank of Cedar Bayou;

 5-5     THENCE in a Northerly direction with the West line of this tract,

 5-6     the West line of the Steele Survey, the West line of the Christian

 5-7     Smith League, Abstract No.  22, and the East Bank of Cedar Bayou to

 5-8     a point where the East Bank of Cedar Bayou intersects the West

 5-9     right of way line of West Bay Road for a corner of this tract of

5-10     land;

5-11     THENCE in a Northerly direction with the West line of this tract

5-12     and the West right of way line of West Bay Road to the South right

5-13     of way line of F.M. Highway No. 565 for the Northwest Corner of

5-14     this tract of land;

5-15     THENCE in an Easterly direction with the North line of this tract

5-16     and the South right of Way line of F.M. Highway No. 565 to a point

5-17     for the Northeast corner of this tract of land in the West boundary

5-18     of the Chambers-Liberty Counties Navigation District, the East

5-19     boundary of the Jacob Townsend Survey, Abstract No. 25 and the West

5-20     boundary of the Benjamin Winfree Survey, Abstract No. 28;

5-21     THENCE in a Southerly direction with the East line of this tract of

5-22     land, the West line of the Chambers-Liberty Counties Navigation

5-23     District existing boundary, the East line of the Townsend Survey,

5-24     the West line of the Winfree Survey and the East line of Chambers

5-25     County School Land Survey, Abstract No. 321, to the Southwest

5-26     corner of the Winfree Survey, a corner of the School Land Survey

5-27     and a corner of this tract of land;

 6-1     THENCE in an Easterly direction with the North line of this tract,

 6-2     the South line of the Chambers-Liberty Counties Navigation District

 6-3     existing boundary to a point for the Northwest corner of the

 6-4     Solomon Barrow Survey, Abstract No. 3, a Northeast corner of the

 6-5     School Land Survey and a corner of this tract of land;

 6-6     THENCE in a Southerly direction with the East line of this tract,

 6-7     the West line of Chambers-Liberty Counties Navigation District

 6-8     existing boundary, the East line of the said School Land Survey and

 6-9     the West line of the Barrow Survey to a point for a corner of this

6-10     tract of land, the Southwest corner of the Barrow Survey and a

6-11     corner of said School Land Survey.  This corner is in the North

6-12     line of the J.L. Hill Survey, Abstract No. 106;

6-13     THENCE in a Westerly direction with the South line of this tract,

6-14     the North line of Chambers-Liberty Counties Navigation District

6-15     existing boundary, the South line of said School Land Survey and

6-16     the North line of the Hill Survey to a point for the Northwest

6-17     corner of the Hill Survey, a corner of this tract of land, a corner

6-18     of the existing District boundary and a corner of said School Land

6-19     Survey;

6-20     THENCE in a Southerly direction with the East line of this tract,

6-21     the East line of said School Land Survey, the West line of the Hill

6-22     Survey, the West line of Chambers-Liberty Counties Navigation

6-23     District existing boundary and the West line of the J.K. Allen

6-24     Survey, Abstract No. 31 to a point for the Southeast corner of this

6-25     tract of land, a corner of the Chambers-Liberty Counties Navigation

6-26     District boundary, the Southeast corner of said School Land Survey

6-27     and the Northeast corner of the Chambers County School Land Survey,

 7-1     Abstract No. 320;

 7-2     THENCE in a Westerly direction with the South line of this tract,

 7-3     the North line of the Chambers-Liberty Counties Navigation District

 7-4     existing boundary, the South boundary of the School Land Survey,

 7-5     Abstract No. 321 and the North boundary of the School Land Survey,

 7-6     Abstract 320 to a point for a corner of this tract of land, the

 7-7     Southwest corner of the School Land Survey Abstract No.  321 and

 7-8     the Northwest corner of the School Land Survey Abstract No. 320.

 7-9     This corner is in the East line of the Andrew Beard Survey,

7-10     Abstract No. 44;

7-11     THENCE in a Northerly direction with the West line of this tract,

7-12     the East line of the Chambers-Liberty Counties Navigation District

7-13     existing boundary, the West line of the School Land Survey Abstract

7-14     No. 321 and the East line of the Beard Survey to a point for a

7-15     corner of this tract of land, a corner of the Chambers-Liberty

7-16     Counties Navigation District existing boundary, the Northeast

7-17     corner of the Beard Survey and the Southeast corner of the John

7-18     Steele Survey;

7-19     THENCE in a Westerly direction with the South line of this tract,

7-20     the North line of the Chambers-Liberty Counties Navigation District

7-21     existing boundary, the South line of the Steele Survey and the

7-22     North line of the Beard Survey to a point for a corner of this

7-23     tract of land, the Northwest corner of the Beard Survey and the

7-24     Northeast corner of  the Ijams League;

7-25     THENCE in a Westerly direction with the South line of this tract,

7-26     the North line of the Chambers-Liberty Counties Navigation District

7-27     existing boundary, the South line of the Steele Survey and the

 8-1     North line of the Ijams League to the PLACE OF BEGINNING,

 8-2     containing within said boundaries approximately 8640 acres of land.

 8-3           SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The legislature

 8-4     finds that the boundaries and field notes of the district form a

 8-5     closure.  If a mistake is made in the field notes or in copying the

 8-6     field notes in the legislative process, it in no way affects the

 8-7     organization, existence, and validity of the district, the right of

 8-8     the district to issue any type of bonds or to issue or enter into

 8-9     other types of obligations for the purposes for which the district

8-10     is created or the right of the district to levy and collect

8-11     assessments or taxes, or in any other manner affects the legality

8-12     or operation of the district or its governing body.

8-13           SECTION 5.  BOARD OF DIRECTORS.  (a)  The district is to be

8-14     governed by a board of five (5) directors.

8-15           (b)  Except for the initial directors, each director shall be

8-16     appointed by the Commissioners Court of Chambers County from a list

8-17     of candidates recommended by the board in the manner provided in

8-18     Section 375.064, Government Code.  Said directors shall serve

8-19     staggered six (6) year terms with the terms of either 2 directors

8-20     or 1 director expiring on May 1st of each odd numbered year as

8-21     provided below.  Each director so appointed shall serve a term of

8-22     office of six (6) years, and until his or her successor is

8-23     appointed and has qualified.  Appointments to fill an unexpired

8-24     term shall be made by the remaining directors.

8-25           (c)  At the time this Act takes effect, the following persons

8-26     shall constitute the initial board of directors of the district and

8-27     are hereby appointed for the terms prescribed by subsection (d) of

 9-1     this section.

 9-2               Director Position                  Name of Director

 9-3                      1                           Jim Molnar

 9-4                      2                           David Baker

 9-5                      3                           Johnnie Jennings

 9-6                      4                           Joseph S. Antoline

 9-7                      5                           Gordon Christman

 9-8           (d)  Of the initial directors, the directors appointed for

 9-9     director positions 1 and 3 shall serve until May 1, 1999; the

9-10     directors appointed for director positions 2 and 4 shall serve

9-11     until May 1, 2001; and the director appointed for director position

9-12     5 shall serve until May 1, 2003.

9-13           (e)  Each initial director and each subsequent director

9-14     appointed for either a full or partial term shall meet the

9-15     following qualifications:

9-16                 (i)  be at least eighteen (18) years of age; and

9-17                 (ii)  be an owner of property in the district; or

9-18                 (iii)  be an owner of stock, whether beneficial or

9-19     otherwise, of a corporate owner of property in the district; or

9-20                 (iv)  be an owner of a beneficial interest in a trust

9-21     that owns property in the district; or

9-22                 (v)  be an agent, employee or tenant of a person

9-23     described in the foregoing subsections (ii), (iii), or (iv).

9-24     No person may be appointed as a director or continue to serve as a

9-25     director unless they satisfy these requirements.  Each director

9-26     shall qualify for office as provided in Subchapter D, Chapter 375,

9-27     Local Government Code.

 10-1          (f)  The board shall be governed by the terms and conditions

 10-2    set forth in Chapter 63, Subchapter C, Water Code, to the extent

 10-3    such provisions do not conflict with the provisions of this Act.

 10-4          (g)  Directors shall be compensated in the manner provided by

 10-5    Section 63.098, Water Code.

 10-6          SECTION 6.  GENERAL POWERS.  (a)  The district shall have all

 10-7    the rights, powers, privileges, and authority conferred by the

 10-8    general law of this state applicable to districts created under

 10-9    Chapters 60, 62, and 63, Water Code.  The district shall also have

10-10    the rights, powers, privileges, and authority granted to districts

10-11    by Chapter 63, Subchapters E and M, Water Code, and Section 61.116,

10-12    Water Code; provided, however, bonds or other obligations issued

10-13    pursuant to any of the foregoing may be secured by revenues,

10-14    assessments, impact fees, grants or other funds of the district, or

10-15    any combination thereof.  The district may acquire any interest in

10-16    land in accordance with Chapter 63, Water Code.  If any provision

10-17    of the referenced laws is in conflict with or is inconsistent with

10-18    the provisions of this Act, this Act prevails.  All laws or

10-19    provisions of a law referenced herein are adopted and incorporated

10-20    into this act for all purposes and may be used by the district

10-21    independently of each other.  Each law and provision of law

10-22    referenced herein is adopted and incorporated into this Act as it

10-23    is amended from time to time by the legislature.

10-24          (b)  The district may finance the cost of any authorized

10-25    improvement project or services in the manner set forth in any of

10-26    the laws made applicable to the district, including Chapter 63,

10-27    Subchapter H, Water Code.  No petition shall be required for the

 11-1    board to be authorized to levy assessments or impact fees to

 11-2    finance services and improvement projects pursuant to this act.

 11-3          (c)  The district shall not have the power to levy ad valorem

 11-4    taxes unless the same shall have been approved by a majority of the

 11-5    district's qualified electors.

 11-6          (d)  The district, in exercising any of the powers conferred

 11-7    by this Act, requires a relocation, adjustment, raising, lowering,

 11-8    rerouting, or changing the grade of or altering the construction of

 11-9    any street, alley, highway, overpass, underpass, or road, any

11-10    railroad track, bridge, or other facilities or property, any

11-11    electric lines, conduits, or other facilities or property, any

11-12    telephone or telegraph lines, conduits or other facilities or

11-13    property, any gas transmission or distribution pipes, pipelines,

11-14    mains, or other facilities or property, any cable television lines,

11-15    cables conduits, or other facilities or property or any other

11-16    pipelines and any facilities or properties relating to those

11-17    pipelines, those relocations, adjustments, raising, lowering,

11-18    rerouting, or changing of grade, or altering of construction must

11-19    be accomplished at the sole cost and expense of the district, and

11-20    damages that are suffered by the owners of the property or

11-21    facilities shall be borne by the district.

11-22          SECTION 7.  TORT CLAIMS.  The district is a unit of

11-23    government for purposes of Chapter 101, Civil Practice and Remedies

11-24    Code (Texas Tort Claims Act) and the operations of the district are

11-25    considered essential governmental functions and not proprietary

11-26    functions for all purposes, including the application of the Texas

11-27    Tort Claim Act.

 12-1          SECTION 8.  ANNEXATION AND EXCLUSION OF TERRITORY BY THE

 12-2    DISTRICT.  The district may annex land to and exclude land from the

 12-3    district in the manner provided by Chapter 63, Water Code.  Land

 12-4    may not be annexed to the district unless the municipality in whose

 12-5    extraterritorial jurisdiction (as defined in Section 42.021, Local

 12-6    Government Code) the land lies consents of the annexation.

 12-7          SECTION 9.  MUNICIPAL ANNEXATION OF THE DISTRICT.  A

 12-8    municipality in whose extraterritorial jurisdiction the district

 12-9    lies may annex the district in whole or in part, notwithstanding

12-10    any provision of Chapter 43, Local Government Code, and such

12-11    annexation shall not result in total or partial dissolution of the

12-12    district or an assumption by the annexing municipality of any of

12-13    the district's obligations or indebtedness.  Creation of the

12-14    district shall not affect the power of any municipality, in whose

12-15    extraterritorial jurisdiction the district or part of the district

12-16    lies, to designate all or part of the district or in any way limit

12-17    the powers of said municipality conferred by virtue of Chapter 42

12-18    of the Local Government Code.  Creation of the district shall not

12-19    affect the power of any municipality to provide municipal services

12-20    to any area within the municipality or its extraterritorial

12-21    jurisdiction which is within the district and such municipality

12-22    shall have the same power to extend or provide municipal services

12-23    after the creation of the district as it had before its creation.

12-24    Any municipal annexation of the district, in whole or in part,

12-25    shall have no effect on the validity of the district and the

12-26    district shall continue to exist and exercise the powers granted in

12-27    this Act.

 13-1          SECTION 10.  BONDS AND ASSESSMENTS.  (a)  The district may

 13-2    issue bonds payable in whole or in part from assessments, impact

 13-3    fees, revenues, grants, or other funds of the district, or any

 13-4    combination thereof, to pay for any purpose of the district

 13-5    authorized by this Act.  The board may levy and collect assessments

 13-6    pursuant to the terms and conditions of Chapter 375, Subchapter F,

 13-7    Local Government Code, for any authorized purpose to the extent

 13-8    they do not conflict with other provisions of this Act.

 13-9          (b)  No approval of bonds issued by the District shall be

13-10    required other than that of the Attorney General in accordance with

13-11    the provisions of 375.205, Local Government Code, and that of the

13-12    Texas Water Commission if the bonds are issued for a purpose which

13-13    requires such approval by Section 375.208, Local Government Code.

13-14          (c)  Assessments or reassessments by the district, penalties

13-15    and interest thereon, expenses of collection, and reasonable

13-16    attorneys fees, if incurred, are a first and prior lien against the

13-17    property assessed, superior to all other liens and claims except

13-18    liens or claims for state, county, school district or municipality

13-19    ad valorem taxes, and are a personal liability of and charge

13-20    against the owners of the property regardless of whether the owners

13-21    are named in the assessment proceedings.  The lien is effective

13-22    from the date of the resolution of the board levying the assessment

13-23    until the assessment is paid and may be enforced by the board in

13-24    the same manner that an ad valorem tax lien against real property

13-25    may be enforced by the board.

13-26          SECTION 11.  IMPACT FEES.  The district may impose impact

13-27    fees as provided by Chapter 375, Subchapter G, Local Government

 14-1    Code for any authorized purpose.  Because the district is created

 14-2    in an area that is devoted primarily to industrial, commercial and

 14-3    business activity, the district may not impose an impact fee or

 14-4    assessment on a single family residential property, or any

 14-5    residential duplex, triplex, quadruplex, or condominium.

 14-6          SECTION 12.  DISSOLUTION OF THE DISTRICT.  The district may

 14-7    be dissolved as provided in either Section 375.261 or Section

 14-8    375.262, Local Government Code.  If the district is dissolved as

 14-9    set forth in this Act, the district shall remain in existence

14-10    solely for the limited purpose of discharging its bonds or other

14-11    obligations in accordance with their terms.

14-12          SECTION 13.  COMPETITIVE BIDDING.  The district shall

14-13    contract for services, improvements or the purchase of materials,

14-14    machinery, equipment, supplies, and other property as provided by

14-15    Section 375.221, Local Government Code.

14-16          SECTION 14.  NOTICE AND CONSENT.  The legislature finds that

14-17    proper and legal notice of the intention to introduce this Act,

14-18    setting forth the general substance of this Act, has been published

14-19    as provided by law, and the notice and a copy of this Act have been

14-20    furnished to all persons, agencies, officials, or entities to which

14-21    they are required to be furnished by the constitution and laws of

14-22    this state, including the governor of Texas, who has submitted the

14-23    notice and Act to the Texas Water Commission.  The legislature also

14-24    finds that the Texas Water Commission has filed its recommendations

14-25    relating to this Act with the governor, lieutenant governor, and

14-26    speaker of the house of representatives within the required time.

14-27    The general law relating to consent by political subdivisions to

 15-1    the creation of districts with conservation, reclamation, and road

 15-2    powers and the inclusion of land in those districts has been

 15-3    compiled with, and all requirements of the constitution and laws of

 15-4    this state and the rules and procedures of the legislature with

 15-5    respect to the notice, introduction and passage of this Act have

 15-6    been fulfilled and accomplished.

 15-7          SECTION 15.  SEVERABILITY CLAUSE.  The provisions of this Act

 15-8    are severable, and if any provision or part of this Act or the

 15-9    application thereof to any person or circumstance shall ever be

15-10    held by any court of competent jurisdiction to be invalid or

15-11    unconstitutional for any reason, the remainder of this Act and the

15-12    application of such provision or part of this Act to other persons

15-13    or circumstances shall not be affected thereby.

15-14          SECTION 16.  EMERGENCY CLAUSE.  The importance of this

15-15    legislation and the crowded condition of the calendars in both

15-16    houses create an emergency and an imperative public necessity that

15-17    the constitutional rule requiring bills to be read on three several

15-18    days in each house be suspended, and this rule is hereby suspended,

15-19    and that this Act take effect and be in force from and after its

15-20    passage, and it is so enacted.

15-21                         COMMITTEE AMENDMENT NO. 1

15-22          Amend H.B. 3579 as follows:

15-23          On page nine, line 17 strike the following between the

15-24    closing parentheses and the period,

15-25    "and the operations of the district are considered essential

15-26    governmental functions and not proprietary functions for all

15-27    purposes, including the application of the Texas Tort Claims Act".

 16-1                                                                 Walker