By Zbranek                                            H.B. No. 3579

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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,

 2-1     to promote the transportation of agricultural, industrial and

 2-2     commercial products, to promote the health, safety, and general

 2-3     welfare of property owners, residents, employers, and employees, in

 2-4     the district, and the general public, to promote the improvement of

 2-5     rivers, bays, creeks, streams, and canals to permit or to aid

 2-6     navigation and commerce.

 2-7           The district will provide needed funding in the greater Cedar

 2-8     Bayou area to preserve, maintain, and enhance the economic health

 2-9     and vitality of the area as a community and a business and

2-10     industrial center.  The district will not act as the agent or

2-11     instrumentality of any private interests even though many private

2-12     interests will be benefited by the district, as will the general

2-13     public.  The legislature further finds and determines and intends

2-14     that by creating the district it has established a program to

2-15     accomplish the public purposes set out in Article XVI, Section 59,

2-16     Texas Constitution.

2-17           (e)  The legislature finds that all of the land and other

2-18     property included within the boundaries of the district will be

2-19     benefited by the improvements and services to be provided by the

2-20     district under powers conferred by Article XVI, Section 59 of the

2-21     Texas Constitution, and other powers granted under this Act, and

2-22     that the district is created to serve a public use and benefit.

2-23           (f)  This Act shall be liberally construed in conformance

2-24     with the legislative findings and purposes stated in this Act.

2-25           SECTION 2.  DEFINITION.  In this Act, "district" means

 3-1     Chambers County-Cedar Bayou Navigation District.

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

 3-3     the territory contained within the following described area:

 3-4     BEING approximately 8640 acres of land situated wholly in Chambers

 3-5     County, Texas, and being more particularly described by metes and

 3-6     bounds as follows, to-wit:

 3-7     BEGINNING at the most Western Northwest corner of the existing

 3-8     Chambers-Liberty Counties Navigation District boundary on the East

 3-9     Bank of Cedar Bayou for the Southwest corner of this tract of land

3-10     and being the Northwest corner of the John Ijams League, Abstract

3-11     No. 15 and the Southwest corner of the John Steele Survey, Abstract

3-12     No. 227;

3-13     THENCE in a Northerly direction with the West line of this tract,

3-14     the West line of the Steele Survey, and the East Bank of Cedar

3-15     Bayou to a point in the North right of way line of Spur 55 for a

3-16     corner of this tract and the Southwest corner of a 6.35 acre tract

3-17     of land belonging to Johnnie G.  Jennings;

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

3-19     of land, the North right of way line of Spur 55 and the South line

3-20     of the Johnnie G.  Jennings 6.35 acre tract of land to the East

3-21     corner of said 6.35 acre tract of land in the South line of the

3-22     Rosemary Jennings 61.56 acre tract of land;

3-23     THENCE in an Easterly direction with the North line of this tract

3-24     of land, the South line of said 61.56 acre tract of land, the South

3-25     line of the Rosemary Jennings, et al., 29.47 acre tract of land and

 4-1     the North line of the Cedar Crossing Business Park Subdivision

 4-2     crossing Spur 55 to the Southeast corner of the Rosemary Jennings,

 4-3     et al., 29.47 acre tract of land for a corner of this tract of

 4-4     land.  This corner being an interior corner of the Cedar Crossing

 4-5     Business Park Subdivision;

 4-6     THENCE in a Northerly direction with the West line of this tract of

 4-7     land, the West line of the Business Park and the East line of said

 4-8     29.47 acre tract of land to a point for the most Western Northwest

 4-9     corner of the Business Park, the Southwest corner of the Rosemary

4-10     Jennings, et al., 22.50 acre tract of land and a corner of this

4-11     tract of land;

4-12     THENCE in an Easterly direction with the North line of this tract,

4-13     the North line of the Business Park and the South line of said

4-14     22.50 acre tract of land to a point for a corner of this tract of

4-15     land in the West right of way line of West Bay Road;

4-16     THENCE in a Northerly direction with the West line of this tract of

4-17     land and the West right of way line of West Bay Road crossing Spur

4-18     55 to a point for a corner of this tract of land and the Northeast

4-19     corner of the Rosemary Jennings, et al., 10.00 acre tract of land;

4-20     THENCE in a Westerly direction with the South line of this tract of

4-21     land and the North line of said 10 acre tract of land to a point

4-22     for a corner of this tract of land and the Northwest corner of said

4-23     10 acre tract of land;

4-24     THENCE in a Southerly direction with the East line of this tract of

4-25     land and the West line of said 10 acre tract of land crossing Spur

 5-1     55 to a point for a corner of this tract of land and the Northeast

 5-2     corner of the Rosemary Jennings, et al., 29.47 acre tract of land;

 5-3     THENCE in a Westerly direction with the South line of this tract of

 5-4     land, the North line of the said 29.47 acre tract and the North

 5-5     line of the Rosemary Jennings 61.56 acre tract of land to a point

 5-6     for a corner of this tract of land and the North right of way of

 5-7     Spur 55;

 5-8     THENCE in a Westerly direction with the South line of this tract,

 5-9     the North right of way line of Spur 55 and the South line of the

5-10     Johnnie Jennings 6.35 acre tract of land to a point for a corner of

5-11     this tract of land and the Southwest corner of said 6.35 acre tract

5-12     of land.  This corner is on the West line of the Steele Survey and

5-13     the East Bank of Cedar Bayou;

5-14     THENCE in a Northerly direction with the West line of this tract,

5-15     the West line of the Steele Survey, the West line of the Christian

5-16     Smith League, Abstract No.  22, and the East Bank of Cedar Bayou to

5-17     a point where the East Bank of Cedar Bayou intersects the West

5-18     right of way line of West Bay Road for a corner of this tract of

5-19     land;

5-20     THENCE in a Northerly direction with the West line of this tract

5-21     and the West right of way line of West Bay Road to the South right

5-22     of way line of F.M. Highway No. 565 for the Northwest Corner of

5-23     this tract of land;

5-24     THENCE in an Easterly direction with the North line of this tract

5-25     and the South right of Way line of F.M. Highway No. 565 to a point

 6-1     for the Northeast corner of this tract of land in the West boundary

 6-2     of the Chambers-Liberty Counties Navigation District, the East

 6-3     boundary of the Jacob Townsend Survey, Abstract No. 25 and the West

 6-4     boundary of the Benjamin Winfree Survey, Abstract No. 28;

 6-5     THENCE in a Southerly direction with the East line of this tract of

 6-6     land, the West line of the Chambers-Liberty Counties Navigation

 6-7     District existing boundary, the East line of the Townsend Survey,

 6-8     the West line of the Winfree Survey and the East line of Chambers

 6-9     County School Land Survey, Abstract No. 321, to the Southwest

6-10     corner of the Winfree Survey, a corner of the School Land Survey

6-11     and a corner of this tract of land;

6-12     THENCE in an Easterly direction with the North line of this tract,

6-13     the South line of the Chambers-Liberty Counties Navigation District

6-14     existing boundary to a point for the Northwest corner of the

6-15     Solomon Barrow Survey, Abstract No. 3, a Northeast corner of the

6-16     School Land Survey and a corner of this tract of land;

6-17     THENCE in a Southerly direction with the East line of this tract,

6-18     the West line of Chambers-Liberty Counties Navigation District

6-19     existing boundary, the East line of the said School Land Survey and

6-20     the West line of the Barrow Survey to a point for a corner of this

6-21     tract of land, the Southwest corner of the Barrow Survey and a

6-22     corner of said School Land Survey.  This corner is in the North

6-23     line of the J.L. Hill Survey, Abstract No. 106;

6-24     THENCE in a Westerly direction with the South line of this tract,

6-25     the North line of Chambers-Liberty Counties Navigation District

 7-1     existing boundary, the South line of said School Land Survey and

 7-2     the North line of the Hill Survey to a point for the Northwest

 7-3     corner of the Hill Survey, a corner of this tract of land, a corner

 7-4     of the existing District boundary and a corner of said School Land

 7-5     Survey;

 7-6     THENCE in a Southerly direction with the East line of this tract,

 7-7     the East line of said School Land Survey, the West line of the Hill

 7-8     Survey, the West line of Chambers-Liberty Counties Navigation

 7-9     District existing boundary and the West line of the J.K. Allen

7-10     Survey, Abstract No. 31 to a point for the Southeast corner of this

7-11     tract of land, a corner of the Chambers-Liberty Counties Navigation

7-12     District boundary, the Southeast corner of said School Land Survey

7-13     and the Northeast corner of the Chambers County School Land Survey,

7-14     Abstract No. 320;

7-15     THENCE in a Westerly direction with the South line of this tract,

7-16     the North line of the Chambers-Liberty Counties Navigation District

7-17     existing boundary, the South boundary of the School Land Survey,

7-18     Abstract No. 321 and the North boundary of the School Land Survey,

7-19     Abstract 320 to a point for a corner of this tract of land, the

7-20     Southwest corner of the School Land Survey Abstract No.  321 and

7-21     the Northwest corner of the School Land Survey Abstract No. 320.

7-22     This corner is in the East line of the Andrew Beard Survey,

7-23     Abstract No. 44;

7-24     THENCE in a Northerly direction with the West line of this tract,

7-25     the East line of the Chambers-Liberty Counties Navigation District

 8-1     existing boundary, the West line of the School Land Survey Abstract

 8-2     No. 321 and the East line of the Beard Survey to a point for a

 8-3     corner of this tract of land, a corner of the Chambers-Liberty

 8-4     Counties Navigation District existing boundary, the Northeast

 8-5     corner of the Beard Survey and the Southeast corner of the John

 8-6     Steele Survey;

 8-7     THENCE in a Westerly direction with the South line of this tract,

 8-8     the North line of the Chambers-Liberty Counties Navigation District

 8-9     existing boundary, the South line of the Steele Survey and the

8-10     North line of the Beard Survey to a point for a corner of this

8-11     tract of land, the Northwest corner of the Beard Survey and the

8-12     Northeast corner of  the Ijams League;

8-13     THENCE in a Westerly direction with the South line of this tract,

8-14     the North line of the Chambers-Liberty Counties Navigation District

8-15     existing boundary, the South line of the Steele Survey and the

8-16     North line of the Ijams League to the PLACE OF BEGINNING,

8-17     containing within said boundaries approximately 8640 acres of land.

8-18           SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The legislature

8-19     finds that the boundaries and field notes of the district form a

8-20     closure.  If a mistake is made in the field notes or in copying the

8-21     field notes in the legislative process, it in no way affects the

8-22     organization, existence, and validity of the district, the right of

8-23     the district to issue any type of bonds or to issue or enter into

8-24     other types of obligations for the purposes for which the district

8-25     is created or the right of the district to levy and collect

 9-1     assessments or taxes, or in any other manner affects the legality

 9-2     or operation of the district or its governing body.

 9-3           SECTION 5.  BOARD OF DIRECTORS.  (a)  The district is to be

 9-4     governed by a board of five (5) directors.

 9-5           (b)  Except for the initial directors, each director shall be

 9-6     appointed by the Commissioners Court of Chambers County from a list

 9-7     of candidates recommended by the board in the manner provided in

 9-8     Section 375.064, Government Code.  Said directors shall serve

 9-9     staggered six (6) year terms with the terms of either 2 directors

9-10     or 1 director expiring on May 1st of each odd numbered year as

9-11     provided below.  Each director so appointed shall serve a term of

9-12     office six (6) years, and until his or her successor is appointed

9-13     and has qualified.  Appointments to fill an unexpired term shall be

9-14     made by the remaining directors.

9-15           (c)  At the time this Act takes effect, the following persons

9-16     shall constitute the initial board of directors of the district and

9-17     are hereby appointed for the terms prescribed by subsection (d) of

9-18     this section.

9-19               Director Position                  Name of Director

9-20                      1                           Jim Molnar

9-21                      2                           David Baker

9-22                      3                           Johnnie Jennings

9-23                      4                           Joseph S. Antoline

9-24                      5                           Gordon Christman

9-25           (d)  Of the initial directors, the directors appointed for

 10-1    director positions 1 and 3 shall serve until May 1, 1999; the

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

 10-3    until May 1, 2001; and the director appointed for director position

 10-4    5 shall serve until May 1, 2003.

 10-5          (e)  Each initial director and each subsequent director

 10-6    appointed for either a full or partial term shall meet the

 10-7    following qualifications:

 10-8                (i)  be at least eighteen (18) years of age; and

 10-9                (ii)  be an owner of property in the district; or

10-10                (iii)  be an owner of stock, whether beneficial or

10-11    otherwise, of a corporate owner of property in the district; or

10-12                (iv)  be an owner of a beneficial interest in a trust

10-13    that owns property in the district; or

10-14                (v)  be an agent, employee or tenant of a person

10-15    described in the foregoing subsections (ii), (iii), or (iv).

10-16    No person may be appointed as a director or continue to serve as a

10-17    director unless they satisfy these requirements.  Each director

10-18    shall qualify for office as provided in Subchapter D, Chapter 375,

10-19    Local Government Code.

10-20          (f)  The board shall be governed by the terms and conditions

10-21    set forth in Chapter 63, Subchapter C, Water Code, to the extent

10-22    such provisions do not conflict with the provisions of this Act.

10-23          (g)  Directors shall be compensated in the manner provided by

10-24    Section 63.098, Water Code.

10-25          SECTION 6.  GENERAL POWERS.  (a)  The district shall have all

 11-1    the rights, powers, privileges, and authority conferred by the

 11-2    general law of this state applicable to districts created under

 11-3    Chapters 60, 62, and 63, Water Code.  The district shall also have

 11-4    the rights, powers, privileges, and authority granted to districts

 11-5    by Chapter 63, Subchapters E and M, Water Code, and Section 61.116,

 11-6    Water Code; provided, however, bonds or other obligations issued

 11-7    pursuant to any of the foregoing may be secured by revenues,

 11-8    assessments, impact fees, grants or other funds of the district, or

 11-9    any combination thereof.  The district may acquire any interest in

11-10    land in accordance with Chapter 63, Water Code.  If any provision

11-11    of the referenced laws is in conflict with or is inconsistent with

11-12    the provisions of this Act, this Act prevails.  All laws or

11-13    provisions of a law referenced herein are adopted and incorporated

11-14    into this act for all purposes and may be used by the district

11-15    independently of each other.  Each law and provision of law

11-16    referenced herein is adopted and incorporated into this Act as it

11-17    is amended from time to time by the legislature.

11-18          (b)  The district may finance the cost of any authorized

11-19    improvement project or services in the manner set forth in any of

11-20    the laws made applicable to the district, including Chapter 63,

11-21    Subchapter H, Water Code.  No petition shall be required for the

11-22    board to be authorized to levy assessments or impact fees to

11-23    finance services and improvement projects pursuant to this act.

11-24          (c)  The district shall not have the power to levy ad valorem

11-25    taxes unless the same shall have been approved by a majority of the

 12-1    district's qualified electors.

 12-2          (d)  The district, in exercising any of the powers conferred

 12-3    by this Act, requires a relocation, adjustment, raising, lowering,

 12-4    rerouting, or changing the grade of or altering the construction of

 12-5    any street, alley, highway, overpass, underpass, or road, any

 12-6    railroad track, bridge, or other facilities or property, any

 12-7    electric lines, conduits, or other facilities or property, any

 12-8    telephone or telegraph lines, conduits, or other facilities or

 12-9    property, any gas transmission or distribution pipes, pipelines,

12-10    mains, or other facilities or property, any cable television lines,

12-11    cables conduits, or other facilities or property or any other

12-12    pipelines and any facilities or properties relating to those

12-13    pipelines, those relocations, adjustments, raising, lowering,

12-14    rerouting, or changing of grade, or altering of construction must

12-15    be accomplished at the sole cost and expense of the district, and

12-16    damages that are suffered by the owners of the property or

12-17    facilities shall be borne by the district.

12-18          SECTION 7.  TORT CLAIMS.  The district is a unit of

12-19    government for purposes of Chapter 101, Civil Practice and Remedies

12-20    Code (Texas Tort Claims Act) and the operations of the district are

12-21    considered essential governmental functions and not proprietary

12-22    functions for all purposes, including the application of the Texas

12-23    Tort Claim Act.

12-24          SECTION 8.  ANNEXATION AND EXCLUSION OF TERRITORY BY THE

12-25    DISTRICT.  The district may annex land to and exclude land from the

 13-1    district in the manner provided by Chapter 63, Water Code.  Land

 13-2    may not be annexed to the district unless the municipality in whose

 13-3    extraterritorial jurisdiction (as defined in Section 42.021, Local

 13-4    Government Code) the land lies consents of the annexation.

 13-5          SECTION 9.  MUNICIPAL ANNEXATION OF THE DISTRICT.  A

 13-6    municipality in whose extraterritorial jurisdiction the district

 13-7    lies may annex the district in whole or in part, notwithstanding

 13-8    any provision of Chapter 43, Local Government Code, and such

 13-9    annexation shall not result in total or partial dissolution of the

13-10    district or an assumption by the annexing municipality of any of

13-11    the district's obligations or indebtedness.  Creation of the

13-12    district shall not affect the power of any municipality, in whose

13-13    extraterritorial jurisdiction the district or part of the district

13-14    lies, to designate all or part of the district or in any way limit

13-15    the powers of said municipality conferred by virtue of Chapter 42

13-16    of the Local Government Code.  Creation of the district shall not

13-17    affect the power of any municipality to provide municipal services

13-18    to any area within the municipality or its extraterritorial

13-19    jurisdiction which is within the district and such municipality

13-20    shall have the same power to extend or provide municipal services

13-21    after the creation of the district as it had before its creation.

13-22    Any municipal annexation of the district, in whole or in part,

13-23    shall have no effect on the validity of the district and the

13-24    district shall continue to exist and exercise the powers granted in

13-25    this Act.

 14-1          SECTION 10.  BONDS AND ASSESSMENTS.  (a)  The district may

 14-2    issue bonds payable in whole or in part from assessments, impact

 14-3    fees, revenues, grants, or other funds of the district, or any

 14-4    combination thereof, to pay for any purpose of the district

 14-5    authorized by this Act.  The board may levy and collect assessments

 14-6    pursuant to the terms and conditions of Chapter 375, Subchapter F,

 14-7    Local Government Code, for any authorized purpose to the extent

 14-8    they do not conflict with other provisions of this Act.

 14-9          (b)  No approval of bonds issued by the District shall be

14-10    required other than that of the Attorney General in accordance with

14-11    the provisions of 375.205, Local Government Code, and that of the

14-12    Texas Water Commission if the bonds are issued for a purpose which

14-13    requires such approval by Section 375.208, Local Government Code.

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

14-15    and interest thereon, expenses of collection, and reasonable

14-16    attorneys fees, if incurred, are a first and prior lien against the

14-17    property assessed, superior to all other liens and claims except

14-18    liens or claims for state, county, school district or municipality

14-19    ad valorem taxes, and are a personal liability of and charge

14-20    against the owners of the property regardless of whether the owners

14-21    are named in the assessment proceedings.  The lien is effective

14-22    from the date of the resolution of the board levying the assessment

14-23    until the assessment is paid and may be enforced by the board in

14-24    the same manner that an ad valorem tax lien against real property

14-25    may be enforced by the board.

 15-1          SECTION 11.  IMPACT FEES.  The district may impose impact

 15-2    fees as provided by Chapter 375, Subchapter G, Local Government

 15-3    Code for any authorized purpose.  Because the district is created

 15-4    in an area that is devoted primarily to industrial, commercial and

 15-5    business activity, the district may not impose an impact fee or

 15-6    assessment on a single family residential property, or any

 15-7    residential duplex, triplex, quadruplex, or condominium.

 15-8          SECTION 12.  DISSOLUTION OF THE DISTRICT.  The district may

 15-9    be dissolved as provided in either Section 375.261 or Section

15-10    375.362, Local Government Code.  If the district is dissolved as

15-11    set forth in this Act, the district shall remain in existence

15-12    solely for the limited purpose of discharging its bonds or other

15-13    obligations in accordance with their terms.

15-14          SECTION 13.  COMPETITIVE BIDDING.  The district shall

15-15    contract for services, improvements or the purchase of materials,

15-16    machinery, equipment, supplies, and other property as provided by

15-17    Section 375.221, Local Government Code.

15-18          SECTION 14.  NOTICE AND CONSENT.  The legislature finds that

15-19    proper and legal notice of the intention to introduce this Act,

15-20    setting forth the general substance of this Act, has been published

15-21    as provided by law, and the notice and a copy of this Act have been

15-22    furnished to all persons, agencies, officials, or entities to which

15-23    they are required to be furnished by the constitution and laws of

15-24    this state, including the governor of Texas, who has submitted the

15-25    notice and Act to the Texas Water Commission.  The legislature also

 16-1    finds that the Texas Water Commission has filed its recommendations

 16-2    relating to this Act with the governor, lieutenant governor, and

 16-3    speaker of the house of representatives within the required time.

 16-4    The general law relating to consent by political subdivisions to

 16-5    the creation of districts with conservation, reclamation, and road

 16-6    powers and the inclusion of land in those districts has been

 16-7    compiled with, and all requirements of the constitution and laws of

 16-8    this state and the rules and procedures of the legislature with

 16-9    respect to the notice, introduction and passage of this Act have

16-10    been fulfilled and accomplished.

16-11          SECTION 15.  SEVERABILITY CLAUSE.  The provisions of this Act

16-12    are severable, and if any provision or part of this Act or the

16-13    application thereof to any person or circumstance shall ever be

16-14    held by any court of competent jurisdiction to be invalid or

16-15    unconstitutional for any reason, the remainder of this Act and the

16-16    application of such provision or part of this Act to other persons

16-17    or circumstances shall not be affected thereby.

16-18          SECTION 16.  EMERGENCY CLAUSE.  The importance of this

16-19    legislation and the crowded condition of the calendars in both

16-20    houses create an emergency and an imperative public necessity that

16-21    the constitutional rule requiring bills to be read on three several

16-22    days in each house be suspended, and this rule is hereby suspended,

16-23    and that this Act take effect and be in force from and after its

16-24    passage, and it is so enacted.