85R24163 SMT-D
	By: Hernandez	H.B. No. 2744

	A BILL TO BE ENTITLED
	AN ACT
	relating to the creation of the Channelview Improvement District;
	providing authority to issue bonds; providing authority to impose
	fees and taxes.
	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 3943 to read as follows:
	CHAPTER 3943. CHANNELVIEW IMPROVEMENT DISTRICT
	SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 3943.001.  DEFINITIONS.  In this chapter:
	(1)  "Board" means the board of directors of the
	district.
	(2)  "County" means Harris County.
	(3)  "District" means the Channelview Improvement
	District.
	Sec. 3943.002.  CREATION AND NATURE OF DISTRICT.  The
	district is a special district created under Section 59, Article
	XVI, Texas Constitution.
	Sec. 3943.003.  PURPOSE; DECLARATION OF INTENT. (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 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, scenic beauty, and
	the public welfare in the district.
	(c)  This chapter and the creation of the district may not be
	interpreted to relieve the county from providing the level of
	services provided as of the effective date of the Act enacting this
	chapter to the area in the district. The district is created to
	supplement and not to supplant county services provided in the
	district.
	Sec. 3943.004.  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:
	(1)  further the public purposes of developing and
	diversifying the economy of the state;
	(2)  eliminate unemployment and underemployment; and
	(3)  develop or expand transportation and commerce.
	(d)  The district shall:
	(1)  promote the health, safety, and general welfare of
	residents, merchants, landowners, 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 community and business center;
	(3)  provide and maintain common areas and facilities
	in the district to ensure scenic beauty;
	(4)  provide improvements in the district to promote
	the welfare of the public in the district; and
	(5)  promote the health, safety, welfare, and enjoyment
	of the public by providing pedestrian ways and by landscaping and
	developing certain areas in the district, which are necessary for
	the restoration, preservation, and enhancement of scenic beauty.
	(e)  The district may 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. 3943.005.  INITIAL DISTRICT TERRITORY. (a) The
	district is composed of the territory described by Section 2 of the
	Act enacting this chapter.
	(b)  The boundaries and field notes of the district 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 in any way affect the district's:
	(1)  organization, existence, or validity;
	(2)  right to contract;
	(3)  authority to issue any type of bond for a purpose
	for which the district is created or to pay the principal of and
	interest on the bond;
	(4)  right to impose or collect a fee or tax or collect
	other revenue; or
	(5)  legality or operation.
	Sec. 3943.006.  CONFIRMATION AND DIRECTORS' ELECTION
	REQUIRED. The initial directors shall hold an election to confirm
	the creation of the district and to elect five permanent directors
	as provided by Section 49.102, Water Code.
	SUBCHAPTER B. BOARD OF DIRECTORS
	Sec. 3943.051.  GOVERNING BODY; TERMS.  (a) The district is
	governed by a board of five directors who occupy numbered
	positions. The directors who occupy positions one, two, and three
	are appointed under this section, and the directors who occupy
	positions four and five are elected as provided by this section and
	Section 3943.052.
	(b)  The commissioners court of the county shall appoint:
	(1)  one person who leases a retail store or who owns
	real property in the district to serve in position one for a
	three-year term;
	(2)  one person who leases a retail store but does not
	own real property in the district to serve in position two for a
	two-year term; and
	(3)  one person who owns real property in the district
	to serve in position three for a three-year term.
	(c)  A director elected under Section 3943.052 serves a
	two-year term. To qualify as a candidate for position four, a
	person must reside in the district. To qualify as a candidate for
	position five, a person must lease a retail store or own real
	property in the district.
	(d)  In appointing directors under Subsection (b), the
	commissioners court shall consider any recommendation received by
	an organization dedicated to the economic development of the
	district.
	(e)  A term expires on December 31 of the appropriate year.
	Sec. 3943.052.  ELECTION OF DIRECTORS. (a) The board shall
	hold an election of directors for positions four and five in each
	odd-numbered year on the uniform election date in November
	established by Section 41.001, Election Code.
	(b)  In addition to the contents required by the Election
	Code, notice of a directors' election must:
	(1)  state the number of directors to be voted on; and
	(2)  describe the qualifications for each position for
	which a candidate is running.
	(c)  In addition to requirements prescribed by the Election
	Code, the ballots for a directors' election shall describe the
	qualifications of the position for which each candidate is running.
	(d)  The board shall certify that the person receiving the
	highest number of votes for each position is elected as the director
	for that position.
	Sec. 3943.053.  LAW GOVERNING ADMINISTRATION OF BOARD.
	Sections 375.066-375.070, Local Government Code, apply to the board
	as if it were established under Chapter 375 of that code.
	Sec. 3943.054.  VOTING BY BOARD PRESIDENT RESTRICTED.  The
	board president may not vote except to break a tie vote.
	Sec. 3943.055.  INITIAL DIRECTORS.  (a)  The initial
	directors elected under Section 3943.052 shall be elected at an
	election to be held on November 7, 2017.
	(b)  The initial directors appointed under Section 3943.051
	shall be appointed for terms to start on January 1, 2018.
	(c)  This section expires September 1, 2022.
	SUBCHAPTER C.  POWERS AND DUTIES
	Sec. 3943.101.  GENERAL POWERS. The district has all of the
	powers and duties necessary to accomplish the purposes for which
	the district was created, including the powers and duties provided
	by:
	(1)  Subchapter E, Chapter 375, Local Government Code;
	and
	(2)  the general laws of this state on conservation and
	reclamation districts created under Section 59, Article XVI, Texas
	Constitution, including Chapter 49, Water Code.
	Sec. 3943.102.  IMPROVEMENT PROJECTS. The district may
	provide, or it may enter into contracts with a governmental or
	private entity to provide, and pay all or part of the costs of the
	improvement projects described by Subchapter D or activities in
	support of or incidental to those projects.
	Sec. 3943.103.  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. 3943.104.  RULES.  The district may adopt rules:
	(1)  to administer and operate the district;
	(2)  for the use, enjoyment, availability, protection,
	security, and maintenance of the district's facilities; and
	(3)  for the provision of public safety and security in
	the district.
	Sec. 3943.105.  LEASE, ACQUISITION, OR CONSTRUCTION OF
	BUILDING OR FACILITY; ECONOMIC DEVELOPMENT PROGRAMS.  The district
	may, as if the district were a home-rule municipality with a
	population of more than 100,000:
	(1)  issue bonds and lease, acquire, or construct a
	building or facility as provided by Subchapter A, Chapter 1509,
	Government Code; and
	(2)  establish and administer a program as provided by
	Section 380.002, Local Government Code.
	Sec. 3943.106.  CONTRACTS; GRANTS; DONATIONS. (a) The
	district may contract with any person to accomplish the purposes of
	this chapter on terms and for the period the board determines,
	including contracting for the payment of costs incurred by the
	person on behalf of the district, including all or part of the costs
	of an improvement project, from tax proceeds or any other specified
	source of money.
	(b)  The district may contract with a person to receive,
	administer, and perform the district's duties under a gift, grant,
	loan, conveyance, transfer, bequest, donation, or other financial
	arrangement relating to the investigation, planning, analysis,
	acquisition, construction, completion, implementation, or
	operation of a proposed or existing improvement project.
	(c)  Any person, including any type of governmental entity,
	may contract with the district to carry out the purposes of this
	chapter.
	Sec. 3943.107.  ANNEXATION OR EXCLUSION OF TERRITORY.  The
	district may add or exclude territory in the manner provided by
	Chapter 375, Local Government Code.
	Sec. 3943.108.  NO PEACE OFFICERS.  The district may not
	employ peace officers.
	Sec. 3943.109.  NO EMINENT DOMAIN.  The district may not
	exercise the power of eminent domain.
	SUBCHAPTER D.  IMPROVEMENT PROJECTS
	Sec. 3943.151.  IMPROVEMENT PROJECTS AND SERVICES. The
	district may provide, design, construct, acquire, improve, lease,
	relocate, repair, 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, lease, relocate, repair, operate,
	maintain, or finance an improvement project or service authorized
	under this chapter.
	Sec. 3943.152.  MISCELLANEOUS DESIGN, CONSTRUCTION, AND
	MAINTENANCE. An improvement project may include the planning,
	design, construction, improvement, and maintenance of:
	(1)  landscaping;
	(2)  highway right-of-way or transit corridor
	beautification and improvement;
	(3)  lighting, banners, and signs;
	(4)  a street or sidewalk;
	(5)  a hiking and cycling path or trail;
	(6)  a pedestrian walkway, skywalk, crosswalk, or
	tunnel;
	(7)  a park, lake, garden, recreational facility, open
	space, scenic area, or related exhibit or preserve;
	(8)  a fountain, plaza, or pedestrian mall; or
	(9)  public art or sculpture and related exhibits and
	facilities and educational or cultural exhibits and facilities,
	including exhibits, displays, attractions, or facilities for
	special events, holidays, or seasonal or cultural celebrations.
	Sec. 3943.153.  PARKING AND TRANSPORTATION.  An improvement
	project may include the planning, design, construction,
	improvement, maintenance, and operation of an off-street parking
	facility, heliport, bus terminal, mass transit, and roadway or
	water transportation system.
	Sec. 3943.154.  DEMOLITION.  An improvement project may
	include the removal, razing, demolition, or clearing of land or
	improvements in connection with an improvement project.
	Sec. 3943.155.  ACQUISITION OF PROPERTY.  An improvement
	project may include the acquisition of property or an interest in
	property in connection with an improvement project.
	Sec. 3943.156.  SPECIAL OR SUPPLEMENTAL SERVICES.  An
	improvement project may include a special or supplemental service
	for the improvement and promotion of the district or for the
	protection of public health and safety in the district, including:
	(1)  tourism;
	(2)  elimination of traffic congestion;
	(3)  health, sanitation, public safety, security, fire
	protection, or emergency medical services;
	(4)  recreational, educational, or cultural
	improvements, enhancements, and services; and
	(5)  advertising, promotion, and business recruitment.
	Sec. 3943.157.  SIMILAR IMPROVEMENT PROJECTS.  An
	improvement project may include a public improvement, facility, or
	service similar to a project described by this subchapter.
	SUBCHAPTER E.  GENERAL FINANCIAL PROVISIONS
	Sec. 3943.201.  NO AD VALOREM TAX.  The district may not
	impose an ad valorem tax.
	Sec. 3943.202.  FEES; CHARGES.  The district may:
	(1)  establish and collect user fees, concession fees,
	admission fees, rental fees, or other similar fees or charges; and
	(2)  apply the proceeds from those fees or charges for
	the enjoyment, sale, rental, or other use of the district's
	facilities, services, or improvement projects.
	Sec. 3943.203.  BORROWING MONEY.  The district may borrow
	money for a district purpose.
	Sec. 3943.204.  PAYMENT OF EXPENSES.  The district may
	provide or secure the payment or repayment of any district expense,
	including:
	(1)  a district cost relating to an improvement
	project;
	(2)  a district contractual obligation or
	indebtedness, because of a lease, installment purchase contract, or
	other agreement; or
	(3)  a tax, user fee, concession fee, rental fee, or
	other revenue or resources of the district.
	Sec. 3943.205.  BONDS. (a) The board may issue bonds as
	provided by Subchapter J, Chapter 375, Local Government Code.
	(b)  In addition to the sources described in Subchapter J,
	Chapter 375, Local Government Code, bonds issued by the district
	may be secured and made payable, in whole or in part, by a pledge of
	any part of the net proceeds the district receives from a specified
	portion of not more than one-half of the district's maximum sales
	and use tax amount authorized under Section 3943.252.
	(c)  Sections 375.207 and 375.208, Local Government Code, do
	not apply to bonds issued under this section.
	SUBCHAPTER F.  SALES AND USE TAX
	Sec. 3943.251.  SALES AND USE TAX; EXCISE TAX. (a) For
	purposes of this section:
	(1)  "Taxable items" includes all items subject to a
	sales and use tax that is imposed by the county.
	(2)  "Use," with respect to a taxable service, means
	the derivation in the district of a direct or indirect benefit from
	the service.
	(b)  The district may impose a sales and use tax if
	authorized by a majority vote at an election held for that purpose.
	(c)  If the district adopts a sales and use tax:
	(1)  the tax is imposed on the receipts from the sale at
	retail of taxable items in the district; and
	(2)  an excise tax is imposed on the use, storage, or
	other consumption in the district of taxable items purchased or
	rented from a retailer during the period in which the sales and use
	tax is effective in the district.
	(d)  The rate of the excise tax is the same as the rate of the
	sales tax portion of the tax applied to the sales price of the
	taxable items and is included in the sales tax.
	Sec. 3943.252.  TAX ELECTION PROCEDURES. (a) The board may
	order an election to adopt, change the rate of, or abolish a sales
	and use tax. The election may be held at the same time and in
	conjunction with a directors' election.
	(b)  The election must be held on the next uniform election
	date that falls on or after the 45th day after the date the election
	order is adopted.
	(c)  Notice of the election shall be given and the election
	shall be held in the manner prescribed for a bond election by
	Subchapter D, Chapter 49, Water Code.
	Sec. 3943.253.  BALLOT WORDING. (a) In an election to adopt
	a sales and use tax, the ballot shall be prepared to permit voting
	for or against the proposition: "The adoption of a local sales and
	use tax in the Channelview Improvement District at the rate of
	(proposed tax rate)."
	(b)  In an election to change the rate of the sales and use
	tax, the ballot shall be prepared to permit voting for or against
	the proposition: "The (increase or decrease, as applicable) in the
	rate of the local sales and use tax imposed in the Channelview
	Improvement District from (tax rate on election date) percent to
	(proposed tax rate) percent."
	(c)  In an election to abolish the sales and use tax, the
	ballot shall be prepared to permit voting for or against the
	proposition: "The abolition of the local sales and use tax in the
	Channelview Improvement District."
	Sec. 3943.254.  APPLICABILITY OF CERTAIN TAX CODE
	PROVISIONS. (a)  Chapter 321, Tax Code, governs the imposition,
	computation, administration, enforcement, and collection of the
	sales and use tax authorized by this subchapter except to the extent
	Chapter 321, Tax Code, is inconsistent with this chapter.
	(b)  A reference in Chapter 321, Tax Code, to a municipality
	or the governing body of a municipality is a reference to the
	district or the board, respectively.
	Sec. 3943.255.  TAX RATES.  The district may impose the sales
	and use tax and the excise tax in increments of one-eighth of one
	percent, with a minimum tax of one-half percent and a maximum tax of
	one percent.
	Sec. 3943.256.  ABOLITION OF TAX.  The board by order and
	without an election may abolish the sales and use tax and the excise
	tax.
	Sec. 3943.257.  USE OF TAXES.  The district may use the
	proceeds from the sales and use tax and the excise tax only for the
	purposes for which the district was created.
	Sec. 3943.258.  EFFECTIVE DATE OF TAX OR TAX CHANGE.  The
	adoption of a tax rate or a change in the tax rate takes effect after
	the expiration of the first complete calendar quarter occurring
	after the date on which the comptroller receives a notice of the
	results of the election.
	SUBCHAPTER G. DISSOLUTION
	Sec. 3943.301.  DISSOLUTION BY BOARD ORDER.  The board by
	order may dissolve the district at any time unless the district has
	outstanding indebtedness or contractual obligations.
	Sec. 3943.302.  DISSOLUTION BY PETITION OF OWNERS.  (a)  The
	board by order shall dissolve the district if a majority of the
	voters of the district voting at an election called for that purpose
	vote to dissolve the district.
	(b)  After the date the district is dissolved, the district
	may not impose taxes.
	(c)  If on the date the district is dissolved the district
	has outstanding liabilities, the board shall, not later than the
	30th day after the date of dissolution, adopt a resolution
	certifying each outstanding liability. The county shall assume the
	outstanding liabilities and shall collect the sales and use tax for
	the district for the remainder of the calendar year. The county may
	continue to collect the tax for an additional calendar year if the
	commissioners court of the county finds that the tax revenue is
	needed to retire the district liabilities that were assumed by the
	county.
	(d)  The district may continue to operate for a period not to
	exceed two months after performing its duties under Subsection (c).
	The district is continued in effect for the purpose of performing
	those duties.
	(e)  If the district is continued in effect under Subsection
	(d), the district is dissolved entirely on the first day of the
	month following the month in which the board certifies to the
	secretary of state that the district has fully performed its duties
	under Subsection (c).
	Sec. 3943.303.  ADMINISTRATION OF DISTRICT PROPERTY
	FOLLOWING DISSOLUTION. (a) After the date the board orders the
	dissolution of the district, the board shall transfer ownership of
	all district property to the county, except as provided by
	Subsection (b).
	(b)  If, on the date on which the board orders the
	dissolution, more than 50 percent of the district territory is in a
	municipality, the board shall transfer ownership of the district's
	property to the municipality.
	SECTION 2.  The Channelview Improvement District initially
	includes all the territory contained in the following area:
	BEGINNING at the centerline intersection of the East Sam
	Houston Parkway ("Beltway 8") with the centerline of Wallisville
	Road, approximately 2 1/2 miles north of Interstate 10 ("East
	Freeway"), along said "Beltway 8";
	THENCE, in a Northeasterly direction, along the centerline of
	said Wallisville Road, to the intersection of said Wallisville Road
	with the west bank of the San Jacinto River;
	THENCE, in a Southerly direction, along the westerly bank of
	the said San Jacinto River; inclusive of the body of water known as
	Bear Lake, to the intersection of the U.P.S. Railroad and the
	southerly bank of a body of water known as Whites Lake;
	THENCE, in an Easterly direction, along the southerly bank of
	said Whites Lake, to the intersection of said Whites Lake, also
	being the northerly Right-of-Way line of said Interstate 10 with
	the westerly bank of the said San Jacinto River;
	THENCE, in a Southwesterly direction, along the westerly bank
	of the said San Jacinto River, crossing the northerly outlet of Old
	River to the intersection of the northerly City of Houston, City
	Limit Line;
	THENCE, in a Southwesterly direction, with a curve to the
	left, along said northerly City Limit Line crossing the southerly
	outlet of Old River to the southerly bank of said Old River;
	THENCE, in an Easterly direction with the southerly bank of
	said Old River and with the said northerly City Limit Line to the
	west bank of the Houston Ship Channel;
	THENCE, in a Southwesterly direction with the northwesterly
	bank of said Houston Ship Channel and with the northwesterly City
	Limit Line to an angle point in said City Limit Line northeasterly
	of the outlet of Carpenters Bayou/Barge Channel;
	THENCE, in a Northwesterly direction leaving said Houston
	Ship Channel with the northeasterly City Limit Line to an angle
	point of said City Limit Line;
	THENCE, in a Southwesterly direction with the northwesterly
	City Limit Line, being a line parallel to and located approximately
	2,500 feet from the centerline of the said Houston Ship Channel,
	crossing said Carpenters Bayou/Barge Channel to an angle point in
	said City Limit Line;
	THENCE, in a Southeasterly direction with the southwesterly
	City Limit Line to the westerly bank of the said Houston Ship
	Channel;
	THENCE, in a Southwesterly direction with the northwesterly
	bank of said Houston Ship Channel with the northwesterly City Limit
	Line to an angle point of said City Limit Line located near the
	outlet of the Jacinto Port Slip;
	THENCE, in a Northwesterly direction leaving said Houston
	Ship Channel with the northeasterly City Limit Line to an angle
	point of said City Limit Line;
	THENCE, in a Southwesterly direction with northwesterly City
	Limit Line, being a line parallel to and located approximately
	2,500 feet from the centerline of said Houston Ship Channel,
	crossing said Jacinto Port Slip to an angle point in said City Limit
	Line;
	THENCE, in a Southeasterly direction with southwesterly City
	Limit Line to the westerly bank of the said Houston Ship Channel;
	THENCE, in a Southeasterly direction with the northerly City
	Limit Line and generally with the Northerly bank of said Houston
	Ship Channel, crossing said "Beltway 8" to the intersection of the
	northerly bank of the said Houston Ship Channel with the extension
	of the centerline of Penn City Road;
	THENCE, in a Northerly direction, along the said centerline
	extension of said Penn City Road, to the common intersection of Penn
	City Road, "Beltway 8" and Interstate 10 for corner;
	THENCE, in a Northerly direction, along the centerline of
	said "Beltway 8", approximately 2 1/2 miles to the POINT OF
	BEGINNING. Save and except for any portion hereof that is included
	in the municipal or corporate boundaries of the City of Houston.
	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, 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 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, 2017.