1-1     By:  Zbranek (Senate Sponsor - Galloway)              H.B. No. 3579

 1-2           (In the Senate - Received from the House May 12, 1997;

 1-3     May 13, 1997, read first time and referred to Committee on Natural

 1-4     Resources; May 16, 1997, reported favorably by the following vote:

 1-5     Yeas 11, Nays 0; May 16, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the creation, administration, powers, and authority of

 1-9     the Chambers County-Cedar Bayou Navigation District.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  CREATION; LEGISLATIVE DECLARATION.  (a)  There is

1-12     created and established a special district to be known as the

1-13     "Chambers County-Cedar Bayou Navigation District" that is a

1-14     governmental agency, a body politic and corporate, and a political

1-15     subdivision of the state.

1-16           (b)  The name of the district may be changed by resolution of

1-17     the board of directors of the district at any time so long as the

1-18     name is descriptive of the location and the principal powers of the

1-19     district.

1-20           (c)  The creation of the district is declared to be essential

1-21     to the accomplishment of the purposes of Section 59, Article XVI,

1-22     Texas Constitution and to the accomplishment of the other purposes

1-23     stated in this Act.

1-24           (d)  The legislature finds, determines, and declares that the

1-25     creation of the district is necessary to diversify the economy of

1-26     the state, promote, develop, expand, encourage, and maintain

1-27     employment, commerce, economic development, and the public welfare,

1-28     to promote the transportation of agricultural, industrial and

1-29     commercial products, to promote the health, safety, and general

1-30     welfare of property owners, residents, employers, and employees, in

1-31     the district, and the general public, and to promote the

1-32     improvement of rivers, bays, creeks, streams, and canals to permit

1-33     or to aid navigation and commerce.

1-34           The district will provide needed funding in the greater Cedar

1-35     Bayou area to preserve, maintain, and enhance the economic health

1-36     and vitality of the area as a community and a business and

1-37     industrial center.  The district will not act as the agent or

1-38     instrumentality of any private interests even though many private

1-39     interests will be benefited by the district, as will the general

1-40     public.  The legislature further finds and determines and intends

1-41     that by creating the district it has established a program to

1-42     accomplish the public purposes set out in Section 59, Article XVI,

1-43     Texas Constitution.

1-44           (e)  The legislature finds that all of the land and other

1-45     property included within the boundaries of the district will be

1-46     benefited by the improvements and services to be provided by the

1-47     district under powers conferred by Section 59, Article XVI, Texas

1-48     Constitution, and other powers granted under this Act and that the

1-49     district is created to serve a public use and benefit.

1-50           (f)  This Act shall be liberally construed in conformance

1-51     with the legislative findings and purposes stated in this Act.

1-52           SECTION 2.  DEFINITION.  In this Act, "district" means

1-53     Chambers County-Cedar Bayou Navigation District.

1-54           SECTION 3.  BOUNDARIES.  The district shall include all of

1-55     the territory contained within the following described area:

1-56     BEING approximately 8640 acres of land situated wholly in Chambers

1-57     County, Texas, and being more particularly described by metes and

1-58     bounds as follows, to-wit:

1-59     BEGINNING at the most Western Northwest corner of the existing

1-60     Chambers-Liberty Counties Navigation District boundary on the East

1-61     Bank of Cedar Bayou for the Southwest corner of this tract of land

1-62     and being the Northwest corner of the John Ijams League, Abstract

1-63     No. 15 and the Southwest corner of the John Steele Survey, Abstract

1-64     No. 227;

 2-1     THENCE in a Northerly direction with the West line of this tract,

 2-2     the West line of the Steele Survey, and the East Bank of Cedar

 2-3     Bayou to a point in the North right of way line of Spur 55 for a

 2-4     corner of this tract and the Southwest corner of a 6.35 acre tract

 2-5     of land belonging to Johnnie G.  Jennings;

 2-6     THENCE in an Easterly direction with the North line of this tract

 2-7     of land, the North right of way line of Spur 55 and the South line

 2-8     of the Johnnie G.  Jennings 6.35 acre tract of land to the East

 2-9     corner of said 6.35 acre tract of land in the South line of the

2-10     Rosemary Jennings 61.56 acre tract of land;

2-11     THENCE in an Easterly direction with the North line of this tract

2-12     of land, the South line of said 61.56 acre tract of land, the South

2-13     line of the Rosemary Jennings, et al., 29.47 acre tract of land and

2-14     the North line of the Cedar Crossing Business Park Subdivision

2-15     crossing Spur 55 to the Southeast corner of the Rosemary Jennings,

2-16     et al., 29.47 acre tract of land for a corner of this tract of

2-17     land.  This corner being an interior corner of the Cedar Crossing

2-18     Business Park Subdivision;

2-19     THENCE in a Northerly direction with the West line of this tract of

2-20     land, the West line of the Business Park and the East line of said

2-21     29.47 acre tract of land to a point for the most Western Northwest

2-22     corner of the Business Park, the Southwest corner of the Rosemary

2-23     Jennings, et al., 22.50 acre tract of land and a corner of this

2-24     tract of land;

2-25     THENCE in an Easterly direction with the North line of this tract,

2-26     the North line of the Business Park and the South line of said

2-27     22.50 acre tract of land to a point for a corner of this tract of

2-28     land in the West right of way line of West Bay Road;

2-29     THENCE in a Northerly direction with the West line of this tract of

2-30     land and the West right of way line of West Bay Road crossing Spur

2-31     55 to a point for a corner of this tract of land and the Northeast

2-32     corner of the Rosemary Jennings, et al., 10.00 acre tract of land;

2-33     THENCE in a Westerly direction with the South line of this tract of

2-34     land and the North line of said 10 acre tract of land to a point

2-35     for a corner of this tract of land and the Northwest corner of said

2-36     10 acre tract of land;

2-37     THENCE in a Southerly direction with the East line of this tract of

2-38     land and the West line of said 10 acre tract of land crossing Spur

2-39     55 to a point for a corner of this tract of land and the Northeast

2-40     corner of the Rosemary Jennings, et al., 29.47 acre tract of land;

2-41     THENCE in a Westerly direction with the South line of this tract of

2-42     land, the North line of the said 29.47 acre tract and the North

2-43     line of the Rosemary Jennings 61.56 acre tract of land to a point

2-44     for a corner of this tract of land and the North right of way of

2-45     Spur 55;

2-46     THENCE in a Westerly direction with the South line of this tract,

2-47     the North right of way line of Spur 55 and the South line of the

2-48     Johnnie Jennings 6.35 acre tract of land to a point for a corner of

2-49     this tract of land and the Southwest corner of said 6.35 acre tract

2-50     of land.  This corner is on the West line of the Steele Survey and

2-51     the East Bank of Cedar Bayou;

2-52     THENCE in a Northerly direction with the West line of this tract,

2-53     the West line of the Steele Survey, the West line of the Christian

2-54     Smith League, Abstract No.  22, and the East Bank of Cedar Bayou to

2-55     a point where the East Bank of Cedar Bayou intersects the West

2-56     right of way line of West Bay Road for a corner of this tract of

2-57     land;

2-58     THENCE in a Northerly direction with the West line of this tract

2-59     and the West right of way line of West Bay Road to the South right

2-60     of way line of F.M. Highway No. 565 for the Northwest Corner of

2-61     this tract of land;

2-62     THENCE in an Easterly direction with the North line of this tract

2-63     and the South right of Way line of F.M. Highway No. 565 to a point

2-64     for the Northeast corner of this tract of land in the West boundary

2-65     of the Chambers-Liberty Counties Navigation District, the East

2-66     boundary of the Jacob Townsend Survey, Abstract No. 25 and the West

2-67     boundary of the Benjamin Winfree Survey, Abstract No. 28;

2-68     THENCE in a Southerly direction with the East line of this tract of

2-69     land, the West line of the Chambers-Liberty Counties Navigation

 3-1     District existing boundary, the East line of the Townsend Survey,

 3-2     the West line of the Winfree Survey and the East line of Chambers

 3-3     County School Land Survey, Abstract No. 321, to the Southwest

 3-4     corner of the Winfree Survey, a corner of the School Land Survey

 3-5     and a corner of this tract of land;

 3-6     THENCE in an Easterly direction with the North line of this tract,

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

 3-8     existing boundary to a point for the Northwest corner of the

 3-9     Solomon Barrow Survey, Abstract No. 3, a Northeast corner of the

3-10     School Land Survey and a corner of this tract of land;

3-11     THENCE in a Southerly direction with the East line of this tract,

3-12     the West line of Chambers-Liberty Counties Navigation District

3-13     existing boundary, the East line of the said School Land Survey and

3-14     the West line of the Barrow Survey to a point for a corner of this

3-15     tract of land, the Southwest corner of the Barrow Survey and a

3-16     corner of said School Land Survey.  This corner is in the North

3-17     line of the J.L. Hill Survey, Abstract No. 106;

3-18     THENCE in a Westerly direction with the South line of this tract,

3-19     the North line of Chambers-Liberty Counties Navigation District

3-20     existing boundary, the South line of said School Land Survey and

3-21     the North line of the Hill Survey to a point for the Northwest

3-22     corner of the Hill Survey, a corner of this tract of land, a corner

3-23     of the existing District boundary and a corner of said School Land

3-24     Survey;

3-25     THENCE in a Southerly direction with the East line of this tract,

3-26     the East line of said School Land Survey, the West line of the Hill

3-27     Survey, the West line of Chambers-Liberty Counties Navigation

3-28     District existing boundary and the West line of the J.K. Allen

3-29     Survey, Abstract No. 31 to a point for the Southeast corner of this

3-30     tract of land, a corner of the Chambers-Liberty Counties Navigation

3-31     District boundary, the Southeast corner of said School Land Survey

3-32     and the Northeast corner of the Chambers County School Land Survey,

3-33     Abstract No. 320;

3-34     THENCE in a Westerly direction with the South line of this tract,

3-35     the North line of the Chambers-Liberty Counties Navigation District

3-36     existing boundary, the South boundary of the School Land Survey,

3-37     Abstract No. 321 and the North boundary of the School Land Survey,

3-38     Abstract 320 to a point for a corner of this tract of land, the

3-39     Southwest corner of the School Land Survey Abstract No.  321 and

3-40     the Northwest corner of the School Land Survey Abstract No. 320.

3-41     This corner is in the East line of the Andrew Beard Survey,

3-42     Abstract No. 44;

3-43     THENCE in a Northerly direction with the West line of this tract,

3-44     the East line of the Chambers-Liberty Counties Navigation District

3-45     existing boundary, the West line of the School Land Survey Abstract

3-46     No. 321 and the East line of the Beard Survey to a point for a

3-47     corner of this tract of land, a corner of the Chambers-Liberty

3-48     Counties Navigation District existing boundary, the Northeast

3-49     corner of the Beard Survey and the Southeast corner of the John

3-50     Steele Survey;

3-51     THENCE in a Westerly direction with the South line of this tract,

3-52     the North line of the Chambers-Liberty Counties Navigation District

3-53     existing boundary, the South line of the Steele Survey and the

3-54     North line of the Beard Survey to a point for a corner of this

3-55     tract of land, the Northwest corner of the Beard Survey and the

3-56     Northeast corner of  the Ijams League;

3-57     THENCE in a Westerly direction with the South line of this tract,

3-58     the North line of the Chambers-Liberty Counties Navigation District

3-59     existing boundary, the South line of the Steele Survey and the

3-60     North line of the Ijams League to the PLACE OF BEGINNING,

3-61     containing within said boundaries approximately 8640 acres of land.

3-62           SECTION 4.  FINDINGS RELATING TO BOUNDARIES.  The legislature

3-63     finds that the boundaries and field notes of the district form a

3-64     closure.  If a mistake is made in the field notes or in copying the

3-65     field notes in the legislative process, it in no way affects the

3-66     organization, existence, and validity of the district, the right of

3-67     the district to issue any type of bonds or to issue or enter into

3-68     other types of obligations for the purposes for which the district

3-69     is created or the right of the district to levy and collect

 4-1     assessments or taxes, or in any other manner affects the legality

 4-2     or operation of the district or its governing body.

 4-3           SECTION 5.  BOARD OF DIRECTORS.  (a)  The district is to be

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

 4-5           (b)  Except for the initial directors, each director shall be

 4-6     appointed by the Commissioners Court of Chambers County from a list

 4-7     of candidates recommended by the board in the manner provided in

 4-8     Section 375.064, Government Code.  Said directors shall serve

 4-9     staggered six (6) year terms with the terms of either 2 directors

4-10     or 1 director expiring on May 1 of each odd-numbered year as

4-11     provided below.  Each director so appointed shall serve a term of

4-12     office of six (6) years, and until his or her successor is

4-13     appointed and has qualified.  Appointments to fill an unexpired

4-14     term shall be made by the remaining directors.

4-15           (c)  At the time this Act takes effect, the following persons

4-16     shall constitute the initial board of directors of the district and

4-17     are hereby appointed for the terms prescribed by Subsection (d) of

4-18     this section:

4-19               Director Position                  Name of Director

4-20                      1                           Jim Molnar

4-21                      2                           David Baker

4-22                      3                           Johnnie Jennings

4-23                      4                           Joseph S. Antoline

4-24                      5                           Gordon Christman

4-25           (d)  Of the initial directors, the directors appointed for

4-26     director positions 1 and 3 shall serve until May 1, 1999; the

4-27     directors appointed for director positions 2 and 4 shall serve

4-28     until May 1, 2001; and the director appointed for director position

4-29     5 shall serve until May 1, 2003.

4-30           (e)  Each initial director and each subsequent director

4-31     appointed for either a full or partial term shall meet the

4-32     following qualifications:

4-33                 (i)  be at least eighteen (18) years of age; and

4-34                 (ii)  be an owner of property in the district; or

4-35                 (iii)  be an owner of stock, whether beneficial or

4-36     otherwise, of a corporate owner of property in the district; or

4-37                 (iv)  be an owner of a beneficial interest in a trust

4-38     that owns property in the district; or

4-39                 (v)  be an agent, employee or tenant of a person

4-40     described in the foregoing Subdivisions (ii), (iii), or (iv).

4-41     No person may be appointed as a director or continue to serve as a

4-42     director unless they satisfy these requirements.  Each director

4-43     shall qualify for office as provided in Subchapter D, Chapter 375,

4-44     Local Government Code.

4-45           (f)  The board shall be governed by the terms and conditions

4-46     set forth in Subchapter C, Chapter 63, Water Code, to the extent

4-47     such provisions do not conflict with the provisions of this Act.

4-48           (g)  Directors shall be compensated in the manner provided by

4-49     Section 63.098, Water Code.

4-50           SECTION 6.  GENERAL POWERS.  (a)  The district shall have all

4-51     the rights, powers, privileges, and authority conferred by the

4-52     general law of this state applicable to districts created under

4-53     Chapters 60, 62, and 63, Water Code.  The district shall also have

4-54     the rights, powers, privileges, and authority granted to districts

4-55     by Subchapters E and M, Chapter 63, Water Code, and Section 61.116,

4-56     Water Code; provided, however, bonds or other obligations issued

4-57     pursuant to any of the foregoing may be secured by revenues,

4-58     assessments, impact fees, grants or other funds of the district, or

4-59     any combination thereof.  The district may acquire any interest in

4-60     land in accordance with Chapter 63, Water Code.  If any provision

4-61     of the referenced laws is in conflict with or is inconsistent with

4-62     the provisions of this Act, this Act prevails.  All laws or

4-63     provisions of a law referenced herein are adopted and incorporated

4-64     into this Act for all purposes and may be used by the district

4-65     independently of each other.  Each law and provision of law

4-66     referenced herein is adopted and incorporated into this Act as it

4-67     is amended from time to time by the legislature.

4-68           (b)  The district may finance the cost of any authorized

4-69     improvement project or services in the manner set forth in any of

 5-1     the laws made applicable to the district, including Subchapter H,

 5-2     Chapter 63, Water Code.  No petition shall be required for the

 5-3     board to be authorized to levy assessments or impact fees to

 5-4     finance services and improvement projects pursuant to this Act.

 5-5           (c)  The district shall not have the power to levy ad valorem

 5-6     taxes unless the same shall have been approved by a majority of the

 5-7     district's qualified electors.

 5-8           (d)  The district, in exercising any of the powers conferred

 5-9     by this Act, requires a relocation, adjustment, raising, lowering,

5-10     rerouting, or changing the grade of or altering the construction of

5-11     any street, alley, highway, overpass, underpass, or road, any

5-12     railroad track, bridge, or other facilities or property, any

5-13     electric lines, conduits, or other facilities or property, any

5-14     telephone or telegraph lines, conduits, or other facilities or

5-15     property, any gas transmission or distribution pipes, pipelines,

5-16     mains, or other facilities or property, any cable television lines,

5-17     cable conduits, or other facilities or property or any other

5-18     pipelines and any facilities or properties relating to those

5-19     pipelines, those relocations, adjustments, raising, lowering,

5-20     rerouting, or changing of grade, or altering of construction must

5-21     be accomplished at the sole cost and expense of the district, and

5-22     damages that are suffered by the owners of the property or

5-23     facilities shall be borne by the district.

5-24           SECTION 7.  TORT CLAIMS.  The district is a unit of

5-25     government for purposes of Chapter 101, Civil Practice and Remedies

5-26     Code (Texas Tort Claims Act).

5-27           SECTION 8.  ANNEXATION AND EXCLUSION OF TERRITORY BY THE

5-28     DISTRICT.  The district may annex land to and exclude land from the

5-29     district in the manner provided by Chapter 63, Water Code.  Land

5-30     may not be annexed to the district unless the municipality in whose

5-31     extraterritorial jurisdiction (as defined in Section 42.021, Local

5-32     Government Code) the land lies consents to the annexation.

5-33           SECTION 9.  MUNICIPAL ANNEXATION OF THE DISTRICT.  A

5-34     municipality in whose extraterritorial jurisdiction the district

5-35     lies may annex the district in whole or in part, notwithstanding

5-36     any provision of Chapter 43, Local Government Code, and such

5-37     annexation shall not result in total or partial dissolution of the

5-38     district or an assumption by the annexing municipality of any of

5-39     the district's obligations or indebtedness.  Creation of the

5-40     district shall not affect the power of any municipality, in whose

5-41     extraterritorial jurisdiction the district or part of the district

5-42     lies, to designate all or part of the district or in any way limit

5-43     the powers of said municipality conferred by virtue of Chapter 42,

5-44     Local Government Code.  Creation of the district shall not affect

5-45     the power of any municipality to provide municipal services to any

5-46     area within the municipality or its extraterritorial jurisdiction

5-47     which is within the district and such municipality shall have the

5-48     same power to extend or provide municipal services after the

5-49     creation of the district as it had before its creation.  Any

5-50     municipal annexation of the district, in whole or in part, shall

5-51     have no effect on the validity of the district and the district

5-52     shall continue to exist and exercise the powers granted in this

5-53     Act.

5-54           SECTION 10.  BONDS AND ASSESSMENTS.  (a)  The district may

5-55     issue bonds payable in whole or in part from assessments, impact

5-56     fees, revenues, grants, or other funds of the district, or any

5-57     combination thereof, to pay for any purpose of the district

5-58     authorized by this Act.  The board may levy and collect assessments

5-59     pursuant to the terms and conditions of Subchapter F, Chapter 375,

5-60     Local Government Code, for any authorized purpose to the extent

5-61     they do not conflict with other provisions of this Act.

5-62           (b)  No approval of bonds issued by the district shall be

5-63     required other than that of the Attorney General in accordance with

5-64     the provisions of Section 375.205, Local Government Code, and that

5-65     of the Texas Natural Resource Conservation Commission if the bonds

5-66     are issued for a purpose which requires such approval by Section

5-67     375.208, Local Government Code.

5-68           (c)  Assessments or reassessments by the district, penalties

5-69     and interest thereon, expenses of collection, and reasonable

 6-1     attorneys fees, if incurred, are a first and prior lien against the

 6-2     property assessed, superior to all other liens and claims except

 6-3     liens or claims for state, county, school district or municipality

 6-4     ad valorem taxes, and are a personal liability of and charge

 6-5     against the owners of the property regardless of whether the owners

 6-6     are named in the assessment proceedings.  The lien is effective

 6-7     from the date of the resolution of the board levying the assessment

 6-8     until the assessment is paid and may be enforced by the board in

 6-9     the same manner that an ad valorem tax lien against real property

6-10     may be enforced by the board.

6-11           SECTION 11.  IMPACT FEES.  The district may impose impact

6-12     fees as provided by Subchapter G, Chapter 375, Local Government

6-13     Code, for any authorized purpose.  Because the district is created

6-14     in an area that is devoted primarily to industrial, commercial and

6-15     business activity, the district may not impose an impact fee or

6-16     assessment on a single family residential property, or any

6-17     residential duplex, triplex, quadruplex, or condominium.

6-18           SECTION 12.  DISSOLUTION OF THE DISTRICT.  The district may

6-19     be dissolved as provided in either Section 375.261 or Section

6-20     375.262, Local Government Code.  If the district is dissolved as

6-21     set forth in this Act, the district shall remain in existence

6-22     solely for the limited purpose of discharging its bonds or other

6-23     obligations in accordance with their terms.

6-24           SECTION 13.  COMPETITIVE BIDDING.  The district shall

6-25     contract for services, improvements or the purchase of materials,

6-26     machinery, equipment, supplies, and other property as provided by

6-27     Section 375.221, Local Government Code.

6-28           SECTION 14.  NOTICE AND CONSENT.  The legislature finds that

6-29     proper and legal notice of the intention to introduce this Act,

6-30     setting forth the general substance of this Act, has been published

6-31     as provided by law, and the notice and a copy of this Act have been

6-32     furnished to all persons, agencies, officials, or entities to which

6-33     they are required to be furnished by the constitution and laws of

6-34     this state, including the governor of Texas, who has submitted the

6-35     notice and Act to the Texas Natural Resource Conservation

6-36     Commission.  The legislature also finds that the Texas Natural

6-37     Resource Conservation Commission has filed its recommendations

6-38     relating to this Act with the governor, lieutenant governor, and

6-39     speaker of the house of representatives within the required time.

6-40     The general law relating to consent by political subdivisions to

6-41     the creation of districts with conservation, reclamation, and road

6-42     powers and the inclusion of land in those districts has been

6-43     complied with, and all requirements of the constitution and laws of

6-44     this state and the rules and procedures of the legislature with

6-45     respect to the notice, introduction and passage of this Act have

6-46     been fulfilled and accomplished.

6-47           SECTION 15.  SEVERABILITY CLAUSE.  The provisions of this Act

6-48     are severable, and if any provision or part of this Act or the

6-49     application thereof to any person or circumstance shall ever be

6-50     held by any court of competent jurisdiction to be invalid or

6-51     unconstitutional for any reason, the remainder of this Act and the

6-52     application of such provision or part of this Act to other persons

6-53     or circumstances shall not be affected thereby.

6-54           SECTION 16.  EMERGENCY CLAUSE.  The importance of this

6-55     legislation and the crowded condition of the calendars in both

6-56     houses create an emergency and an imperative public necessity that

6-57     the constitutional rule requiring bills to be read on three several

6-58     days in each house be suspended, and this rule is hereby suspended,

6-59     and that this Act take effect and be in force from and after its

6-60     passage, and it is so enacted.

6-61                                  * * * * *