Bill Text: TX HB4726 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the creation of the Cameron County Flood Control District; granting a limited power of eminent domain; providing authority to impose assessments, fees, and taxes and to issue bonds.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2019-06-10 - Effective immediately [HB4726 Detail]
Download: Texas-2019-HB4726-Introduced.html
Bill Title: Relating to the creation of the Cameron County Flood Control District; granting a limited power of eminent domain; providing authority to impose assessments, fees, and taxes and to issue bonds.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2019-06-10 - Effective immediately [HB4726 Detail]
Download: Texas-2019-HB4726-Introduced.html
86R11510 SLB-D | ||
By: Dominguez | H.B. No. 4726 |
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relating to the creation of the Cameron County Flood Control | ||
District; granting a limited power of eminent domain; providing | ||
authority to impose assessments, fees, and taxes and to issue | ||
bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle E, Title 6, Special District Local Laws | ||
Code, is amended by adding Chapter 7816 to read as follows: | ||
CHAPTER 7816. CAMERON COUNTY FLOOD CONTROL DISTRICT | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 7816.0101. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "Director" means a member of the board. | ||
(3) "District" means the Cameron County Flood Control | ||
District. | ||
Sec. 7816.0102. NATURE OF DISTRICT. The district is a | ||
conservation and reclamation district established under Section | ||
59, Article XVI, Texas Constitution. | ||
Sec. 7816.0103. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. | ||
(a) The district is created to serve a public use and benefit. | ||
(b) The land and other property included in the district | ||
will benefit from the works and projects accomplished by the | ||
district and by the powers conferred by Section 59, Article XVI, | ||
Texas Constitution. | ||
(c) The creation and operation of the district is essential | ||
to accomplish the purpose of Section 59, Article XVI, Texas | ||
Constitution. | ||
Sec. 7816.0104. DISTRICT TERRITORY. The boundaries of the | ||
district are coextensive with the boundaries of Cameron County. | ||
Sec. 7816.0105. ANNEXATION OF LAND. Before the annexation | ||
of land inside the corporate limits of a municipality, the district | ||
must obtain the approval of the municipality. | ||
SUBCHAPTER B. BOARD OF DIRECTORS | ||
Sec. 7816.0201. COMPOSITION OF BOARD; TERMS. (a) The | ||
district is governed by a board consisting of five elected | ||
directors. One director is elected from each commissioners court | ||
precinct and one director is elected at large. | ||
(b) Directors serve two-year terms. | ||
Sec. 7816.0202. ELIGIBILITY FOR OFFICE. A director must | ||
own land in the district subject to taxation at the time the | ||
director qualifies for office. | ||
Sec. 7816.0203. DIRECTOR'S BOND. (a) A director shall | ||
execute a bond in the amount of $5,000 for the faithful performance | ||
of the director's duties. | ||
(b) The bond must be filed in the office of the county clerk | ||
of Cameron County. | ||
Sec. 7816.0204. BOARD VACANCY. (a) If a director dies, | ||
resigns, or ceases to possess the qualifications required for | ||
office, the board shall declare the person's office vacant. | ||
(b) The board shall appoint a successor to fill the | ||
unexpired term. | ||
Sec. 7816.0205. BOARD PRESIDENT; ABSENCE OF BOARD | ||
PRESIDENT. (a) The board may authorize the board's president to | ||
sign all orders or take other action. | ||
(b) Any order adopted or action taken at a board meeting at | ||
which the board's president is absent may be signed by the board's | ||
vice president, or the board may authorize the president to sign the | ||
order or action at a later time. | ||
Sec. 7816.0206. SECRETARY'S DUTIES. The board secretary | ||
shall keep accurate minutes and shall certify any action taken by | ||
the board. | ||
Sec. 7816.0207. TREASURER. (a) The board may appoint a | ||
district treasurer. | ||
(b) The district treasurer shall execute a bond in an amount | ||
determined by the board payable to the district and conditioned on | ||
the faithful performance of the treasurer's duties. | ||
Sec. 7816.0208. COMPENSATION OF DIRECTORS. (a) A director | ||
is entitled to receive $25 for each day spent performing district | ||
work, not to exceed $200 per month. | ||
(b) In all areas of conflict with Subsection (a) of this | ||
section, Section 49.060, Water Code, takes precedence. | ||
(c) A director's compensation may be increased as | ||
authorized by Section 49.060, Water Code, by resolution adopted by | ||
the board in accordance with Subsection (e) of that section. | ||
Sec. 7816.0209. VOTE REQUIRED FOR OFFICIAL BOARD ACTION. | ||
An official action of the board is not valid without the affirmative | ||
vote of a majority of the directors. | ||
Sec. 7816.0210. DESIGNATION OF DIRECTOR TO ACT ON | ||
DISTRICT'S BEHALF. The board may designate one or more directors to | ||
execute on behalf of the district all contracts, including a | ||
construction contract, sign checks, or handle any other matter | ||
entered into by the board as shown in the district's official | ||
minutes. | ||
Sec. 7816.0211. DISTRICT OFFICE. (a) The board shall | ||
establish and maintain a district office inside the district. | ||
(b) The board may establish a second district office outside | ||
the district. | ||
(c) A district office may be a private residence or office | ||
and that residence or office is a public place for matters relating | ||
to the district's business. | ||
Sec. 7816.0212. RECORDS. The board shall keep the | ||
district's records open to public inspection at reasonable times at | ||
the district's principal office. | ||
SUBCHAPTER C. POWERS AND DUTIES | ||
Sec. 7816.0301. GENERAL POWERS AND DUTIES. (a) The | ||
district may exercise the rights, powers, privileges, and functions | ||
provided by Section 59, Article XVI, Texas Constitution, Chapters | ||
49 and 57, Water Code, and this chapter. | ||
(b) The district may construct and maintain levees and other | ||
improvements on, along, and contiguous to rivers, creeks, streams, | ||
and drainage courses for the purposes of: | ||
(1) reclaiming land from overflow from that water; | ||
(2) controlling and distributing the water of rivers | ||
and streams by straightening and improving the rivers and streams; | ||
(3) draining and improving the land; and | ||
(4) preventing the pollution of the water. | ||
Sec. 7816.0302. EMINENT DOMAIN. (a) The district may | ||
exercise the power of eminent domain in Cameron County to acquire | ||
the fee simple title to or an easement or right-of-way to, over, or | ||
through any land, water, or land under water inside or outside the | ||
district that has a direct effect on the accomplishment of the | ||
purposes for which the district is created and is necessary for | ||
constructing and maintaining all levees and other improvements for | ||
the improvement of rivers, creeks, streams, or drainage courses in | ||
the district or bordering the district and to prevent overflows. | ||
(b) The district may not exercise the power of eminent | ||
domain under Subsection (a) to acquire land or other property that | ||
is used for cemetery purposes. | ||
(c) The district must exercise the power of eminent domain | ||
in the manner provided by Chapter 21, Property Code. | ||
(d) The district may not exercise the power of eminent | ||
domain within the corporate limits of a municipality without the | ||
prior approval by resolution of the governing body of the | ||
municipality. | ||
Sec. 7816.0303. COST OF RELOCATING OR ALTERING PROPERTY. | ||
(a) In this section, "sole expense" means the actual cost of | ||
relocating, raising, lowering, rerouting, changing the grade of, or | ||
altering the construction of a facility described by Subsection (b) | ||
to provide comparable replacement without enhancement of the | ||
facility, after deducting the net salvage value of the old | ||
facility. | ||
(b) If the district's exercise of its power of eminent | ||
domain makes necessary relocating, raising, lowering, rerouting, | ||
changing the grade of, or altering the construction of a highway, | ||
railroad, electric transmission or distribution line, telephone or | ||
telegraph property or facility, or pipeline, the necessary action | ||
shall be accomplished at the sole expense of the district unless the | ||
owner of the relocated or altered facility has a legal obligation to | ||
pay those expenses. | ||
Sec. 7816.0304. CONTRACTS FOR FACILITIES AND IMPROVEMENTS; | ||
ELECTION NOT REQUIRED. (a) The district may enter into a contract | ||
with a person for the maintenance or construction of any facility or | ||
improvement authorized by this chapter. | ||
(b) The district may enter into a contract under Subsection | ||
(a) without: | ||
(1) voting for the issuance of bonds; or | ||
(2) holding an election to approve the contract. | ||
Sec. 7816.0305. PROHIBITED FUNCTIONS. The district may | ||
not: | ||
(1) engage in any park, water service, wastewater | ||
service, police, or firefighting function; or | ||
(2) spend any district money or issue bonds for any | ||
function described by Subdivision (1). | ||
Sec. 7816.0306. STANDARDS FOR ROAD, STREET, OR UTILITY | ||
CONSTRUCTION. Any road, street, or utility construction by the | ||
district within the corporate limits of a municipality must comply | ||
with the standards for construction adopted by the municipality. | ||
Sec. 7816.0307. APPROVAL OF RECLAMATION PLAN, AMENDMENT, OR | ||
PROJECT. In addition to any other requirements in this chapter, a | ||
reclamation plan adopted by the district, an amendment to a | ||
reclamation plan, or a project of the district that is not included | ||
in a reclamation plan must be approved by any appropriate | ||
municipalities before the plan, amendment, or project takes effect. | ||
SUBCHAPTER D. TAX ABATEMENT IN REINVESTMENT ZONE | ||
Sec. 7816.0401. DESIGNATION OF REINVESTMENT ZONE. (a) The | ||
district by resolution may designate as a reinvestment zone an area | ||
or real or personal property in the taxing jurisdiction of the | ||
district that the board finds satisfies the requirements of Section | ||
7816.0402. The board must find that the proposed | ||
commercial-industrial or residential project or projects meet the | ||
criteria prescribed by Section 7816.0402. | ||
(b) The resolution must describe the boundaries of the zone | ||
and the eligibility of the zone for commercial-industrial or | ||
residential tax abatement. | ||
(c) The area of a reinvestment zone designated for | ||
commercial-industrial or residential tax abatement may be included | ||
in an overlapping or coincidental commercial-industrial or | ||
residential zone established under Chapter 312, Tax Code. | ||
(d) The district may not adopt a resolution designating an | ||
area as a reinvestment zone until the district has held a public | ||
hearing on the designation and has found that the improvements | ||
sought are feasible and practical and would be a benefit to the land | ||
to be included in the zone and to the district after the expiration | ||
of an agreement entered into under Section 7816.0404 or 7816.0405. | ||
At the hearing, interested persons are entitled to speak and | ||
present evidence for or against the designation. Not later than the | ||
seventh day before the date of the hearing, notice of the hearing | ||
must be: | ||
(1) published in a newspaper having general | ||
circulation in the district; and | ||
(2) delivered in writing to the presiding officer of | ||
the governing body of each taxing unit that includes in its | ||
boundaries real property that is to be included in the proposed | ||
reinvestment zone. | ||
(e) A notice made under Subsection (d)(2) is presumed | ||
delivered when placed in the mail postage paid and properly | ||
addressed to the appropriate presiding officer. A notice properly | ||
addressed and sent by registered or certified mail for which a | ||
return receipt is received by the sender is considered to have been | ||
delivered to the addressee. | ||
Sec. 7816.0402. CRITERIA FOR REINVESTMENT ZONE. To be | ||
designated as a reinvestment zone under this subchapter, an area | ||
must be reasonably likely as a result of the designation to | ||
contribute to the retention or expansion of primary employment or | ||
to attract major investment in the zone that would be a benefit to | ||
the property and that would contribute to the economic development | ||
of the district. | ||
Sec. 7816.0403. EXPIRATION OF REINVESTMENT ZONE. The | ||
designation of a reinvestment zone for commercial-industrial or | ||
residential tax abatement expires five years after the date of the | ||
designation and may be renewed for periods not to exceed five years. | ||
The expiration of the designation does not affect an existing tax | ||
abatement agreement governed by this subchapter. | ||
Sec. 7816.0404. TAX ABATEMENT AGREEMENT. (a) The district | ||
may enter into a tax abatement agreement by agreeing, in writing, | ||
with the owner of taxable real property that is located in a | ||
reinvestment zone to exempt from taxation a portion of the value of | ||
the real property or of tangible personal property located on the | ||
real property, or both, for a period not to exceed 30 years, on the | ||
condition that the owner of the property make specific improvements | ||
or repairs to the property. | ||
(b) The real property covered by the agreement may not be | ||
located in an improvement project financed by tax increment bonds. | ||
(c) The agreement is subject to the rights of holders of | ||
outstanding bonds of the district. | ||
(d) The agreement may: | ||
(1) provide for the exemption of the real property in | ||
each year covered by the agreement only to the extent its value for | ||
that year exceeds its value for the year in which the agreement is | ||
executed; | ||
(2) provide for the exemption of tangible personal | ||
property located on the real property in each year covered by the | ||
agreement other than tangible personal property that was located on | ||
the real property at any time before the period covered by the | ||
agreement with the district; and | ||
(3) cover more than one commercial-industrial or | ||
residential project. | ||
Sec. 7816.0405. TAX ABATEMENT AGREEMENT: CERTIFICATED AIR | ||
CARRIER. (a) The district may enter into a tax abatement | ||
agreement by agreeing, in writing, with the owner or lessee of real | ||
property that is located in a reinvestment zone to exempt from | ||
taxation for a period not to exceed 30 years a portion of the value | ||
of the real property or of personal property, or both, located in | ||
the zone and owned or leased by a certificated air carrier on the | ||
condition that the certificated air carrier: | ||
(1) make specific real property improvements; or | ||
(2) lease, for a term of 30 years or more, real | ||
property improvements located in the reinvestment zone. | ||
(b) The agreement may provide for the exemption of the: | ||
(1) real property in each year covered by the | ||
agreement to the extent its value for that year exceeds its value | ||
for the year in which the agreement is executed; and | ||
(2) personal property owned or leased by a | ||
certificated air carrier located in the reinvestment zone in each | ||
year covered by the agreement other than specific personal property | ||
that was located in the reinvestment zone at any time before the | ||
period covered by the agreement with the district. | ||
Sec. 7816.0406. TAX ABATEMENT AGREEMENT REQUIREMENTS. (a) | ||
This section applies to an agreement made under Section 7816.0404 | ||
or 7816.0405. | ||
(b) The agreement must: | ||
(1) list the kind, number, and location of all | ||
proposed improvements of the property; and | ||
(2) provide for: | ||
(A) the availability of tax abatement for both | ||
new facilities and structures and for the expansion or | ||
modernization of existing facilities and structures; and | ||
(B) recapturing property tax revenue lost as a | ||
result of the agreement if the owner of the property fails to make | ||
the improvements or repairs as provided by the agreement. | ||
(c) A tax abatement agreement is not required to contain | ||
terms identical to another tax abatement agreement that covers the | ||
same exempted property or a portion of that property. | ||
(d) Property that is in a reinvestment zone and that is | ||
owned or leased by a director is excluded from property tax | ||
abatement. | ||
(e) The agreement may include, at the option of the | ||
district, provisions for maps showing existing uses and conditions | ||
and proposed improvements and uses of real property in the | ||
reinvestment zone. | ||
(f) On approval by the district, the agreement may be | ||
executed in the same manner as other contracts made by the district. | ||
(g) The agreement applies only to taxes levied by the | ||
district and does not affect other taxing units that levy taxes on | ||
property in the district. | ||
Sec. 7816.0407. NOTICE OF TAX ABATEMENT AGREEMENT TO OTHER | ||
TAXING UNITS. (a) Not later than the seventh day before the date on | ||
which the district enters into an agreement under Section 7816.0404 | ||
or 7816.0405, the board or a designated officer or employee of the | ||
district shall deliver a written notice that the district intends | ||
to enter into the agreement to the Texas Commission on | ||
Environmental Quality and to the presiding officer of the governing | ||
body of each other taxing unit in which the property to be subject | ||
to the agreement is located. The notice must include a copy of the | ||
proposed agreement. | ||
(b) A notice is presumed delivered when placed in the mail | ||
postage paid and properly addressed to the appropriate presiding | ||
officer. A notice properly addressed and sent by registered or | ||
certified mail for which a return receipt is received by the sender | ||
is considered to have been delivered to the addressee. | ||
(c) Failure to deliver the notice does not affect the | ||
validity of the agreement. | ||
Sec. 7816.0408. MODIFICATION OR TERMINATION OF TAX | ||
ABATEMENT AGREEMENT. (a) At any time before the expiration of an | ||
agreement governed by this subchapter, the agreement may be | ||
modified by the parties to the agreement to include other | ||
provisions that could have been included in the original agreement | ||
or to delete provisions that were not necessary to the original | ||
agreement. The modification must be made by the same procedure by | ||
which the original agreement was approved and executed. The | ||
original agreement may not be modified to extend beyond 30 years | ||
from the date of the original agreement. | ||
(b) An agreement governed by this subchapter may be | ||
terminated by the mutual consent of the parties in the same manner | ||
that the agreement was approved and executed. | ||
Sec. 7816.0409. REGISTRY OF REINVESTMENT ZONES AND TAX | ||
ABATEMENT AGREEMENTS; ASSISTANCE TO DISTRICT. (a) The Texas | ||
Economic Development and Tourism Office shall maintain a central | ||
registry of reinvestment zones governed by this subchapter and of | ||
ad valorem tax abatement agreements executed under this subchapter. | ||
Before April 1 of the year following the year in which the zone is | ||
designated or the agreement is executed, the district shall deliver | ||
to the office, the comptroller, and the Texas Commission on | ||
Environmental Quality a report that provides: | ||
(1) for a reinvestment zone, a general description of | ||
the zone, including its size, the types of property located in it, | ||
and its duration; and | ||
(2) for a tax abatement agreement, the parties to the | ||
agreement, a general description of the property and the | ||
improvements or repairs to be made under the agreement, the portion | ||
of the property to be exempted, and the duration of the agreement. | ||
(b) On the request of the board or the board's president, | ||
the office may provide assistance to the district relating to the | ||
administration of this subchapter, including the designation of | ||
reinvestment zones and the adoption of tax abatement agreements. | ||
Sec. 7816.0410. PROPERTIES THAT MAY BE INCLUDED IN TAX | ||
ABATEMENT AGREEMENT. (a) The district may include in a tax | ||
abatement agreement: | ||
(1) facilities and structures; and | ||
(2) tangible personal property located on property | ||
covered by the agreement. | ||
(b) A tax abatement agreement made under this section may be | ||
based on the value of the property on January 1 of the year in which | ||
the construction, expansion, or modernization of the property | ||
began. | ||
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS | ||
Sec. 7816.0501. DEPOSITORY. (a) The board shall designate | ||
one or more banks to serve as the depository for district money. | ||
(b) District money shall be deposited as received in a | ||
depository bank, other than money transmitted to a bank for payment | ||
of bonds issued by the district. | ||
(c) If district money is deposited in a depository that is | ||
not insured by the Federal Deposit Insurance Corporation, the money | ||
must be secured in the manner provided by law for the security of | ||
county funds. | ||
Sec. 7816.0502. AUTHORITY TO ISSUE BONDS AND INCUR | ||
INDEBTEDNESS. The district may issue bonds and incur other | ||
indebtedness in the manner provided by Subchapter E, Chapter 7803. | ||
Sec. 7816.0503. BOND ANTICIPATION NOTES. (a) In addition | ||
to all other methods of acquiring money for district purposes, the | ||
district may issue bond anticipation notes for any purpose for | ||
which district bonds have been voted or may be issued to refund | ||
outstanding bond anticipation notes and the interest on the notes | ||
being refunded. | ||
(b) The notes may bear interest at any rate not to exceed the | ||
maximum interest rate applicable to the district's authorized | ||
bonds. | ||
(c) The district shall pay the notes only from the proceeds | ||
of the sale of bonds by the district. | ||
Sec. 7816.0504. AUTHORIZED MAINTENANCE TAXES. The district | ||
may impose a maintenance tax that has been authorized at an election | ||
held in the district. | ||
SECTION 2. (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, the | ||
lieutenant governor, and the speaker of the house of | ||
representatives within the required time. | ||
(d) 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 are fulfilled | ||
and accomplished. | ||
SECTION 3. (a) Sections 7816.0302 and 7816.0303, Special | ||
District Local Laws Code, as added by Section 1 of this Act, take | ||
effect only if this Act receives a two-thirds vote of all the | ||
members elected to each house. | ||
(b) If this Act does not receive a two-thirds vote of all the | ||
members elected to each house, Subchapter C, Chapter 7816, Special | ||
District Local Laws Code, as added by Section 1 of this Act, is | ||
amended by adding Section 7816.0302 to read as follows: | ||
Sec. 7816.0302. NO EMINENT DOMAIN POWER. The district may | ||
not exercise the power of eminent domain. | ||
(c) This section is not intended to be an expression of a | ||
legislative interpretation of the requirements of Section 17(c), | ||
Article I, Texas Constitution. | ||
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, 2019. |