By: Hegar S.B. No. 605
 
  (Zerwas)
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Fort Bend County Improvement
  District No. 24; providing authority to impose an assessment,
  impose a tax, and issue bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle C, Title 4, Special District Local Laws
  Code, is amended by adding Chapter 3898 to read as follows:
  CHAPTER 3898.  FORT BEND COUNTY IMPROVEMENT DISTRICT NO. 24
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 3898.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Houston.
               (3)  "County" means Fort Bend County.
               (4)  "Director" means a board member.
               (5)  "District" means the Fort Bend County Improvement
  District No. 24.
         Sec. 3898.002.  CREATION AND NATURE OF DISTRICT. The
  district is a special district created under Section 59, Article
  XVI, Texas Constitution.
         Sec. 3898.003.  PURPOSE; LEGISLATIVE FINDINGS. (a)  The
  creation of the district is essential to accomplish the purposes of
  Sections 52 and 52-a, Article III, and Section 59, Article XVI,
  Texas Constitution, and other public purposes stated in this
  chapter. By creating the district and in authorizing the city and
  other political subdivisions to contract with the district, the
  legislature has established a program to accomplish the public
  purposes set out in Section 52-a, Article III, Texas Constitution.
         (b)  The creation of the district is necessary to promote,
  develop, encourage, and maintain employment, commerce,
  transportation, housing, tourism, recreation, the arts,
  entertainment, economic development, safety, and the public
  welfare in the district.
         (c)  The district is created to supplement and not to
  supplant city services provided in the district.
         Sec. 3898.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a)  The district is created to serve a public use and benefit.
         (b)  All land and other property included in the district
  will benefit from the improvements and services to be provided by
  the district under powers conferred by Sections 52 and 52-a,
  Article III, and Section 59, Article XVI, Texas Constitution, and
  other powers granted under this chapter.
         (c)  The creation of the district is in the public interest
  and is essential to further the public purposes of:
               (1)  developing and diversifying the economy of the
  state;
               (2)  eliminating unemployment and underemployment;
               (3)  developing or expanding transportation and
  commerce; and
               (4)  providing quality residential housing.
         (d)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, potential employees, employees, visitors,
  and consumers in the district, and of the public;
               (2)  provide needed funding for the district to
  preserve, maintain, and enhance the economic health and vitality of
  the district territory as a residential community and business
  center; and
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing pedestrian ways and by landscaping,
  removing graffiti from, and developing certain areas in the
  district, which are necessary for the restoration, preservation,
  and enhancement of scenic beauty.
         (e)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, vehicle parking, and street art objects are parts of
  and necessary components of a street and are considered to be an
  improvement project that includes a street or road improvement.
         (f)  The district will not act as the agent or
  instrumentality of any private interest even though the district
  will benefit many private interests as well as the public.
         Sec. 3898.005.  DISTRICT TERRITORY. (a)  The district is
  initially composed of the territory described by Section 2 of the
  Act enacting this chapter.
         (b)  The boundaries and field notes contained in Section 2 of
  the Act enacting this chapter form a closure. A mistake in the
  field notes or in copying the field notes in the legislative process
  does not affect the district's:
               (1)  organization, existence, or validity;
               (2)  right to issue any type of bond for the purposes
  for which the district is created or to pay the principal of and
  interest on a bond;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3898.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
  (a)  All or any part of the area of the district is eligible to be
  included in:
               (1)  a tax increment reinvestment zone created under
  Chapter 311, Tax Code;
               (2)  a tax abatement reinvestment zone created under
  Chapter 312, Tax Code;
               (3)  an enterprise zone created under Chapter 2303,
  Government Code; or
               (4)  an industrial district created under Chapter 42,
  Local Government Code.
         (b)  If the city creates a tax increment reinvestment zone
  described by Subsection (a), the city and the board of directors of
  the zone, by contract with the district, may grant money deposited
  in the tax increment fund to the district to be used by the district
  for the purposes permitted for money granted to a corporation under
  Section 380.002(b), Local Government Code, including the right to
  pledge the money as security for any bonds issued by the district
  for an improvement project.  A project may not receive public funds
  under Section 380.002(b), Local Government Code, unless the project
  has been approved by the governing body of the city.
         (c)  A tax increment reinvestment zone created by the city in
  the district is not subject to the limitations provided by Section
  311.006(b), Tax Code.
         Sec. 3898.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3898.008.  LIBERAL CONSTRUCTION OF CHAPTER. This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3898.051.  GOVERNING BODY; TERMS. The district is
  governed by a board of five directors who serve staggered terms of
  four years, with two or three directors' terms expiring June 1 of
  each odd-numbered year.
         Sec. 3898.052.  QUALIFICATIONS OF DIRECTORS APPOINTED BY
  CITY. (a)  To be qualified to serve as a director appointed by the
  governing body of the city, a person must be:
               (1)  a resident of the district who is also a registered
  voter of the district;
               (2)  an owner of property in the district;
               (3)  an owner of stock or a partnership or membership
  interest, whether beneficial or otherwise, of a corporate
  partnership, limited liability company, or other entity owner of a
  direct or indirect interest in property in the district;
               (4)  an owner of a beneficial interest in a trust, or a
  trustee in a trust, that directly or indirectly owns property in the
  district;
               (5)  an agent, employee, or tenant of a person
  described by Subdivision (2), (3), or (4); or
               (6)  an initial director under Section 3898.062.
         (b)  Section 49.052, Water Code, does not apply to the
  district.
         Sec. 3898.053.  APPOINTMENT OF DIRECTORS. The governing
  body of the city shall appoint directors from persons recommended
  by the board.
         Sec. 3898.054.  VACANCY. If a vacancy occurs on the board,
  the remaining directors shall appoint a director for the remainder
  of the unexpired term.
         Sec. 3898.055.  DIRECTOR'S OATH OR AFFIRMATION. (a)  A
  director shall file the director's oath or affirmation of office
  with the district, and the district shall retain the oath or
  affirmation in the district records.
         (b)  A director shall file a copy of the director's oath or
  affirmation with the secretary of the city.
         Sec. 3898.056.  QUORUM.  A vacant director position is not
  counted for purposes of establishing a quorum.
         Sec. 3898.057.  OFFICERS. The board shall elect from among
  the directors a chair, a vice chair, and a secretary. The offices
  of chair and secretary may not be held by the same person.
         Sec. 3898.058.  COMPENSATION; EXPENSES. (a)  The district
  may compensate each director in an amount not to exceed $50 for each
  board meeting. The total amount of compensation a director may
  receive each year may not exceed $2,000.
         (b)  A director is entitled to reimbursement for necessary
  and reasonable expenses incurred in carrying out the duties and
  responsibilities of the board.
         Sec. 3898.059.  LIABILITY INSURANCE.  The district may
  obtain and pay for comprehensive general liability insurance
  coverage from a commercial insurance company or other source that
  protects and insures a director against personal liability and from
  all claims relating to:
               (1)  actions taken by the director in the director's
  capacity as a member of the board;
               (2)  actions and activities taken by the district; or
               (3)  the actions of others acting on behalf of the
  district.
         Sec. 3898.060.  NO EXECUTIVE COMMITTEE. The board may not
  create an executive committee to exercise the powers of the board.
         Sec. 3898.061.  BOARD MEETINGS. The board shall hold
  meetings at a place accessible to the public.
         Sec. 3898.062.  INITIAL DIRECTORS. (a)  The initial board
  consists of:
                         Pos. No.   Name of Director
                         1         Jim Foreman
                         2         Erin Dyer
                         3         Scott Leafe
                         4         Belinda Meller
                         5         David Foor
         (b)  The terms of the initial directors expire June 1, 2015.
         (c)  Of the directors who replace an initial director, the
  terms of directors serving in positions 1, 2, and 3 expire June 1,
  2017, and the terms of directors serving in positions 4 and 5 expire
  June 1, 2019.
         (d)  Section 3898.052 does not apply to this section.
         (e)  This section expires September 1, 2019.
  SUBCHAPTER C.  POWERS AND DUTIES
         Sec. 3898.101.  GENERAL POWERS AND DUTIES.  The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3898.102.  IMPROVEMENT PROJECTS AND SERVICES.  The
  district may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service using money available to the district, or contract with a
  governmental or private entity to provide, design, construct,
  acquire, improve, relocate, operate, maintain, or finance an
  improvement project or service authorized under this chapter or
  Chapter 375, Local Government Code.
         Sec. 3898.103.  LOCATION OF IMPROVEMENT PROJECT.  An
  improvement project described by Section 3898.102 may be located:
               (1)  in the district; or
               (2)  in an area outside but adjacent to the district if
  the project is for the purpose of extending a public infrastructure
  improvement beyond the district's boundaries to a logical terminus.
         Sec. 3898.104.  DEVELOPMENT CORPORATION POWERS. The
  district, using money available to the district, may exercise the
  powers given to a development corporation under Chapter 505, Local
  Government Code, including the power to own, operate, acquire,
  construct, lease, improve, or maintain a project under that
  chapter.
         Sec. 3898.105.  NONPROFIT CORPORATION. (a)  The board by
  resolution may authorize the creation of a nonprofit corporation to
  assist and act for the district in implementing a project or
  providing a service authorized by this chapter.
         (b)  The nonprofit corporation:
               (1)  has each power of and is considered to be a local
  government corporation created under Subchapter D, Chapter 431,
  Transportation Code; and
               (2)  may implement any project and provide any service
  authorized by this chapter.
         (c)  The board shall appoint the board of directors of the
  nonprofit corporation. The board of directors of the nonprofit
  corporation shall serve in the same manner as the board of directors
  of a local government corporation created under Subchapter D,
  Chapter 431, Transportation Code, except that a board member is not
  required to reside in the district.
         Sec. 3898.106.  AGREEMENTS; GRANTS. (a)  As provided by
  Chapter 375, Local Government Code, the district may make an
  agreement with or accept a gift, grant, or loan from any person.
         (b)  The implementation of a project is a governmental
  function or service for the purposes of Chapter 791, Government
  Code.
         Sec. 3898.107.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with a qualified party,
  including the county or the city, to provide law enforcement
  services in the district for a fee.
         Sec. 3898.108.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
  district may join and pay dues to a charitable or nonprofit
  organization that performs a service or provides an activity
  consistent with the furtherance of a district purpose.
         Sec. 3898.109.  ECONOMIC DEVELOPMENT. (a)  The district may
  engage in activities that accomplish the economic development
  purposes of the district.
         (b)  The district may establish and provide for the
  administration of one or more programs to promote state or local
  economic development and to stimulate business and commercial
  activity in the district, including programs to:
               (1)  make loans and grants of public money; and
               (2)  provide district personnel and services.
         (c)  The district may create economic development programs
  and exercise the economic development powers that:
               (1)  Chapter 380, Local Government Code, provides to a
  municipality; and
               (2)  Subchapter A, Chapter 1509, Government Code,
  provides to a municipality.
         Sec. 3898.110.  NO EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
         Sec. 3898.151.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
  board by resolution shall establish the number of signatures and
  the procedure required for a disbursement or transfer of the
  district's money.
         Sec. 3898.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
  The district may acquire, construct, finance, operate, or maintain
  an improvement project or service authorized under this chapter or
  Chapter 375, Local Government Code, using any money available to
  the district.
         Sec. 3898.153.  GENERAL POWERS REGARDING PAYMENT OF DISTRICT
  BONDS, OBLIGATIONS, OR OTHER COSTS.  The district may provide or
  secure the payment or repayment of any bond, note, or other
  temporary or permanent obligation or reimbursement or other
  contract with any person and the costs and expenses of the
  establishment, administration, and operation of the district and
  the district's costs or share of the costs or revenue of an
  improvement project or district contractual obligation or
  indebtedness by:
               (1)  the imposition of an ad valorem tax or sales and
  use tax or an assessment, user fee, concession fee, or rental
  charge; or
               (2)  any other revenue or resources of the district, or
  other revenue authorized by the city, including revenues from a tax
  increment reinvestment zone created by the city under applicable
  law.
         Sec. 3898.154.  PETITION REQUIRED FOR FINANCING SERVICES AND
  IMPROVEMENTS WITH ASSESSMENTS. (a)  The board may not finance a
  service or improvement project with assessments under this chapter
  unless a written petition requesting that service or improvement
  has been filed with the board.
         (b)  The petition must be signed by:
               (1)  the owners of a majority of the assessed value of
  real property in the district subject to assessment according to
  the most recent certified tax appraisal roll for the county; or
               (2)  at least 25 persons who own real property in the
  district subject to assessment, if more than 25 persons own real
  property in the district subject to assessment as determined by the
  most recent certified tax appraisal roll for the county.
         Sec. 3898.155.  METHOD OF NOTICE FOR HEARING. The district
  may mail the notice required by Section 375.115(c), Local
  Government Code, by certified or first class United States mail.
  The board shall determine the method of notice.
         Sec. 3898.156.  ASSESSMENTS; LIENS FOR ASSESSMENTS.
  (a)  The board by resolution may impose and collect an assessment
  for any purpose authorized by this chapter in all or any part of the
  district.
         (b)  An assessment, a reassessment, or an assessment
  resulting from an addition to or correction of the assessment roll
  by the district, penalties and interest on an assessment or
  reassessment, an expense of collection, and reasonable attorney's
  fees incurred by the district:
               (1)  are a first and prior lien against the property
  assessed;
               (2)  are superior to any other lien or claim other than
  a lien or claim for county, school district, or municipal ad valorem
  taxes; and
               (3)  are the personal liability of and a charge against
  the owners of the property even if the owners are not named in the
  assessment proceedings.
         (c)  The lien is effective from the date of the board's
  resolution imposing the assessment until the date the assessment is
  paid. The board may enforce the lien in the same manner that the
  board may enforce an ad valorem tax lien against real property.
         (d)  The board may make a correction to or deletion from the
  assessment roll that does not increase the amount of assessment of
  any parcel of land without providing notice and holding a hearing in
  the manner required for additional assessments.
         Sec. 3898.157.  STORM WATER USER CHARGES.  The district may
  establish user charges related to the operation of storm water
  facilities, including the regulation of storm water for the
  protection of water quality in the district.
         Sec. 3898.158.  NONPOTABLE WATER USER CHARGES.  The district
  may establish user charges for the use of nonpotable water for
  irrigation purposes, subject to approval of the governing body of
  the city.
         Sec. 3898.159.  COSTS FOR IMPROVEMENT PROJECTS.  The
  district may undertake separately or jointly with other persons,
  including the city or county, all or part of the cost of an
  improvement project, including an improvement project:
               (1)  for improving, enhancing, and supporting public
  safety and security, fire protection and emergency medical
  services, and law enforcement in or adjacent to the district; or
               (2)  that confers a general benefit on the entire
  district or a special benefit on a definable part of the district.
         Sec. 3898.160.  TAX AND ASSESSMENT ABATEMENTS.  The district
  may designate reinvestment zones and may grant abatements of a tax
  or assessment on property in the zones.
  SUBCHAPTER E.  TAXES AND BONDS
         Sec. 3898.201.  TAX ABATEMENT.  The district may enter into a
  tax abatement agreement in accordance with the general laws of this
  state authorizing and applicable to a tax abatement agreement by a
  municipality.
         Sec. 3898.202.  PROPERTY TAX AUTHORIZED.  (a)  The district
  may impose an ad valorem tax on all taxable property in the district
  to:
               (1)  pay for an improvement project of the types
  authorized by Section 52(b), Article III, and Section 59, Article
  XVI, Texas Constitution; or
               (2)  secure the payment of bonds issued for a purpose
  described by Subdivision (1).
         (b)  The district may not impose an ad valorem tax to pay for
  an improvement project under this chapter unless the imposition is
  approved by the voters of the district voting at an election held
  for that purpose. The board may call an election to approve the
  imposition of an ad valorem tax to pay for an improvement project
  under this chapter only if the board receives a petition requesting
  the election signed by:
               (1)  more than 51 percent of the record owners of real
  property in the district subject to taxation; or
               (2)  owners representing more than 51 percent of the
  appraised value of real property in the district subject to
  taxation, as determined by the tax rolls of the appraisal district.
         Sec. 3898.203.  SALES AND USE TAX.  (a)  The district may
  impose a sales and use tax if authorized by a majority of the voters
  of the district voting at an election called for that purpose.
  Revenue from the tax may be used for any purpose for which ad
  valorem tax revenue of the district may be used.
         (b)  The district may not adopt a sales and use tax if as a
  result of the adoption of the tax the combined rate of all sales and
  use taxes imposed by the district and other political subdivisions
  of this state having territory in the district would exceed two
  percent at any location in the district.
         (c)  If the voters of the district approve the adoption of
  the tax at an election held on the same election date on which
  another political subdivision adopts a sales and use tax or
  approves an increase in the rate of its sales and use tax and as a
  result the combined rate of all sales and use taxes imposed by the
  district and other political subdivisions of this state having
  territory in the district would exceed two percent at any location
  in the district, the election to adopt a sales and use tax under
  this chapter has no effect.
         Sec. 3898.204.  BONDS AND OTHER OBLIGATIONS. (a)  The
  district may issue, by public or private sale, bonds, notes, or
  other obligations payable wholly or partly from ad valorem taxes,
  sales and use taxes, or assessments in the manner provided by
  Subchapter A, Chapter 372, or Subchapter J, Chapter 375, Local
  Government Code.
         (b)  In exercising the district's borrowing power, the
  district may issue a bond or other obligation in the form of a bond,
  note, certificate of participation or other instrument evidencing a
  proportionate interest in payments to be made by the district, or
  other type of obligation.
         (c)  In addition to the sources of money described by
  Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
  Government Code, district bonds may be secured and made payable
  wholly or partly by a pledge of any part of the money the district
  receives from improvement revenue or from any other source.
         Sec. 3898.205.  BOND MATURITY. Bonds may mature not more
  than 40 years from their date of issue.
         Sec. 3898.206.  TAXES FOR BONDS AND OTHER OBLIGATIONS. At
  the time bonds or other obligations payable wholly or partly from ad
  valorem taxes are issued:
               (1)  the board shall impose a continuing direct annual
  ad valorem tax for each year that all or part of the bonds are
  outstanding; and
               (2)  the district annually shall impose an ad valorem
  tax on all taxable property in the district in an amount sufficient
  to:
                     (A)  pay the interest on the bonds or other
  obligations as the interest becomes due; and
                     (B)  create a sinking fund for the payment of the
  principal of the bonds or other obligations when due or the
  redemption price at any earlier required redemption date.
  SUBCHAPTER F.  DISSOLUTION
         Sec. 3898.251.  DISSOLUTION BY CITY ORDINANCE. (a)  The
  city by ordinance may dissolve the district.
         (b)  The city may not dissolve the district until the
  district's outstanding debt or contractual obligations that are
  payable from ad valorem taxes have been repaid or discharged, or the
  city has affirmatively assumed the obligation to pay the
  outstanding debt from city revenue.
         Sec. 3898.252.  COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
  (a)  If the dissolved district has bonds or other obligations
  outstanding secured by and payable from assessments or other
  revenue, other than ad valorem taxes, the city shall succeed to the
  rights and obligations of the district regarding enforcement and
  collection of the assessments or other revenue.
         (b)  The city shall have and exercise all district powers to
  enforce and collect the assessments or other revenue to pay:
               (1)  the bonds or other obligations when due and
  payable according to their terms; or
               (2)  special revenue or assessment bonds or other
  obligations issued by the city to refund the outstanding bonds or
  obligations.
         Sec. 3898.253.  CONCURRENCE ON ADDITIONAL POWERS. If the
  legislature grants the district a power that is in addition to the
  powers approved by the initial resolution of the governing body of
  the city consenting to the creation of the district, the district
  may not exercise that power unless the governing body of the city
  consents to that change by resolution.
         Sec. 3898.254.  ASSUMPTION OF ASSETS AND LIABILITIES.
  (a)  After the city dissolves the district, the city assumes,
  subject to the appropriation and availability of funds, the
  obligations of the district, including any bonds or other debt
  payable from assessments or other district revenue.
         (b)  If the city dissolves the district, the board shall
  transfer ownership of all district property to the city.
         SECTION 2.  The Fort Bend County Improvement District No. 24
  initially includes all the territory contained in the following
  area:
  The Fort Bend County Improvement District is comprised of 93.243
  acres located at the northeast corner of Farm-to-Market (FM) Road
  1093 and FM Road 1463 with the beginning point at the north
  right-of-way (ROW) of FM 1093 and east ROW of FM 1463 and the
  southwest corner of 8.81 ac. parcel (0274 R H KUYKENDALL, ACRES
  8.81); Then north along east ROW of FM 1463 and coincident west
  boundary of 8.81 ac. parcel (0274 R H KUYKENDALL, ACRES 8.81), and
  84.013 ac. parcel (0421 T W SOUTHERLAND, ACRES 84.013) to northwest
  corner of said 84.013 ac. parcel; Then east along north boundary of
  said 84.013 ac. parcel to northeast corner of said parcel; Then
  south along east boundary of said 84.013 ac. parcel, and 0.42 ac.
  parcel (0574 JOHN FOSTER, ACRES .42) to southeast corner of said
  0.42 ac. parcel and north ROW of FM 1093; Then west southwest along
  south boundary of said 0.42 acre parcel, and 8.81 ac. parcel (0274 R
  H KUYKENDALL, ACRES 8.81) to southwest corner of said 8.81 ac.
  parcel and beginning point of 93.243 acre tract.
         SECTION 3.  (a)  The legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished
  under Section 59, Article XVI, Texas Constitution, and Chapter 313,
  Government Code.
         (b)  The governor, one of the required recipients, has
  submitted the notice and Act to the Texas Commission on
  Environmental Quality.
         (c)  The Texas Commission on Environmental Quality has filed
  its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time.
         (d)  The general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with.
         (e)  All requirements of the constitution and laws of this
  state and the rules and procedures of the legislature with respect
  to the notice, introduction, and passage of this Act have been
  fulfilled and accomplished.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.