Bill Text: TX HB5400 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the creation of the Presidio International Port Authority District; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2023-05-25 - Recommendations filed with the Speaker [HB5400 Detail]

Download: Texas-2023-HB5400-Comm_Sub.html

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88R12328 JTZ-F
By: Morales of Maverick H.B. No. 5400

A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Presidio International Port
Authority District; providing authority to issue bonds; providing
authority to impose assessments, 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 3797 to read as follows:
CHAPTER 3797. PRESIDIO INTERNATIONAL PORT AUTHORITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3797.0101. DEFINITIONS. In this chapter:
(1) "Board" means the authority's board of directors.
(2) "City" means the city of Presidio.
(3) "County" means Presidio County.
(4) "Director" means a board member.
(5) "District" means the Presidio International Port
Authority District.
(6) "School district" means Presidio Independent
School District.
Sec. 3797.0102. NATURE OF DISTRICT. The Presidio
International Port Authority District is a special district created
under Section 59, Article XVI, Texas Constitution.
Sec. 3797.0103. 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.
(b) By creating the district and in authorizing the county,
the city, the school district, 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.
(c) 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.
(d) The district is created to serve the interests of the
residents of the district and the general public by improving the
Presidio port of entry and encouraging international trade.
(e) This chapter and the creation of the district may not be
interpreted to relieve the county or the city 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 or city services
provided in the district.
Sec. 3797.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) 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.
(b) The district is created to serve a public use and
benefit.
(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) developing and expanding international trade.
(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 community and business center,
including by developing, constructing, owning, operating, and
improving industrial parks;
(3) 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;
(4) provide for water, wastewater, drainage, rail, and
road facilities for the district; and
(5) provide for international border facilities,
industrial parks, air transportation facilities, intermodal
facilities, and foreign trade zones in the district.
(e) 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. 3797.0105. INITIAL DISTRICT TERRITORY. The district
is initially composed of the territory in Presidio County.
Sec. 3797.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
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; or
(3) a foreign trade zone.
Sec. 3797.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3797.0108. 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. 3797.0201. GOVERNING BODY; TERMS. The district is
governed by a board of seven voting directors who serve staggered
terms of four years with three or four directors' terms expiring
June 1 of each odd-numbered year.
Sec. 3797.0202. QUALIFICATIONS AND APPOINTMENT OF VOTING
DIRECTORS. (a) Section 375.063, Local Government Code, does not
apply to the district.
(b) To be qualified to serve as a director, a person must be
at least 18 years of age.
(c) From persons recommended by the board in the manner
provided by Section 375.064, Local Government Code, the governing
body of the county shall appoint three directors and the governing
body of the city shall appoint two directors. Each of the appointed
directors must be:
(1) an owner of property in the district;
(2) an owner of a beneficial interest in a trust, or a
trustee in a trust, that directly or indirectly owns property in the
district;
(3) an agent, employee, or tenant of a person
described by Subdivision (1) or (2); or
(4) a person involved in international trade
activities in the district.
(d) In addition to the directors appointed under Subsection
(c), notwithstanding the common law doctrine of incompatibility,
the mayor of the city and the county judge of the county serve as
directors of the district, except as provided by Subsection (e).
Notwithstanding Section 3797.0201, the term of a director who is
also the mayor of the city or the county judge of the county expires
when the member's term as mayor or county judge, as applicable,
expires.
(e) The mayor of the city or the county judge of the county
may decline to serve as a director. If the mayor of the city
declines to serve, the governing body of the city shall appoint an
alternate director in the manner provided by Subsection (c). If the
county judge of the county declines to serve, the county shall
appoint an alternate director in the manner provided by Subsection
(c).
(f) A director described by Subsection (d) may not
participate in a discussion of or vote on a matter regarding a
contract with the political subdivision for which the person serves
as an officer.
Sec. 3797.0203. NONVOTING DIRECTORS. The board may appoint
representatives of taxing entities in the district to serve as
nonvoting directors.
Sec. 3797.0204. INITIAL DIRECTORS. (a) The initial board
consists of the following directors:
Pos. No. Name of Director
1 John Ferguson
2 Tom Davis
3 Scott Beasley
4 Cesar Baeza
5 Joe Portillo
6 Isela Nunez
7 Sergio Mendoza Vidal
(b) Of the initial directors, the terms of directors
appointed for positions one through four expire June 1, 2025, and
the terms of directors appointed for positions five through seven
expire June 1, 2027.
(c) Section 3797.0202 does not apply to initial directors
appointed by this section.
(d) This section expires September 1, 2027.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3797.0301. GENERAL POWERS AND DUTIES. (a) The
district has the powers and duties necessary to accomplish the
purposes for which the district is created.
(b) Section 375.092(e), Local Government Code, applies to
real property located inside or outside the district.
Sec. 3797.0302. IMPROVEMENT PROJECTS AND SERVICES. (a)
The district, using any money available to the district for the
purpose, may 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.
(b) The district may contract with a governmental or private
entity to carry out an action under Subsection (a).
(c) The implementation of a district project or service is a
governmental function or service for the purposes of Chapter 791,
Government Code.
(d) The county, the school district, the Big Bend Regional
Hospital District, and any other local government or political
subdivision may contract with the district to provide for
financing, construction, maintenance, and operation of public
infrastructure or to carry out a district purpose.
(e) The district may not undertake a project on land owned
by the city unless the city consents to the project.
Sec. 3797.0303. 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. 3797.0304. AUTHORITY TO CONTRACT FOR PUBLIC SAFETY
SERVICES. To protect the public interest, the district may
contract with a qualified party, including a municipality, the
county, or any other governmental entity to provide law
enforcement, public safety, fire protection, ambulance, emergency,
or code enforcement services in the district for a fee.
Sec. 3797.0305. 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. 3797.0306. ECONOMIC DEVELOPMENT PROGRAMS. (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 provided to
municipalities by:
(1) Chapter 380, Local Government Code; and
(2) Subchapter A, Chapter 1509, Government Code.
Sec. 3797.0307. PARKING FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain parking facilities or a system of parking
facilities, including lots, garages, parking terminals, or other
structures or accommodations for parking motor vehicles off the
streets and related appurtenances.
(b) The district's parking facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c) The district's parking facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(d) The development and operation of the district's parking
facilities may be considered an economic development program.
Sec. 3797.0308. INTERNATIONAL BORDER FACILITIES. (a) The
district may operate and maintain a port of entry in the district.
(b) The district may acquire, lease as lessor or lessee,
construct, develop, own, operate, and maintain bridge facilities, a
system of international border crossing points, or other structures
or accommodations facilitating international trade and related
appurtenances.
(c) The facilities described by this section serve the
public purposes of the district and are owned, used, and held for a
public purpose even if leased or operated by a private entity for a
term of years.
(d) The district's bridge facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(e) The development and operation of the facilities
described by this section may be considered an economic development
program.
Sec. 3797.0309. RAIL FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain rail facilities, and related appurtenances,
to facilitate international trade.
(b) The district's rail facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c) The development and operation of the district's rail
facilities may be considered an economic development program.
Sec. 3797.0310. TRANSPORTATION FACILITIES. (a) The
district may acquire, lease as lessor or lessee, construct,
develop, own, operate, and maintain facilities related to air
transportation and intermodal facilities.
(b) The district's air transportation and intermodal
facilities serve the public purposes of the district and are owned,
used, and held for a public purpose even if leased or operated by a
private entity for a term of years.
(c) The development and operation of the district's air
transportation and intermodal facilities may be considered an
economic development program.
Sec. 3797.0311. REGIONAL MOBILITY AUTHORITY POWERS. The
district may exercise the transportation project powers of a
regional mobility authority under Chapter 370, Transportation
Code, for a transportation project, as defined by Section 370.003,
Transportation Code.
Sec. 3797.0312. FEES. The district may establish and
maintain reasonable and nondiscriminatory rates, fares, charges,
rents, or other fees or compensation for the use of facilities
constructed, operated, or maintained by the district.
Sec. 3797.0313. FOREIGN TRADE ZONE. (a) In this section,
"foreign trade zone" has the meaning assigned by Section 681.001,
Business & Commerce Code.
(b) The district may apply for, accept a grant of authority
to, and establish, operate, and maintain a foreign trade zone,
including the selection and description of the foreign trade zone
and subzones.
(c) An authorization under this section is subject to the
requirements of federal law and regulations established to carry
out the provisions of the Foreign Trade Zones Act (19 U.S.C. Section
81a et seq.).
Sec. 3797.0314. ADDING OR EXCLUDING LAND. The district may
add or exclude land in the manner provided by Subchapter J, Chapter
49, Water Code, or by Subchapter H, Chapter 54, Water Code.
Sec. 3797.0315. DISBURSEMENTS AND TRANSFERS OF MONEY. The
board by resolution shall establish the number of directors'
signatures and the procedure required for a disbursement or
transfer of district money.
Sec. 3797.0316. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Sec. 3797.0317. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. ASSESSMENTS
Sec. 3797.0401. 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) A petition filed under Subsection (a) must be signed by
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.
Sec. 3797.0402. 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.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3797.0501. TAX ELECTION REQUIRED. The district must
hold an election in the manner provided by Chapter 49, Water Code,
or, if applicable, Chapter 375, Local Government Code, to obtain
voter approval before the district may impose an ad valorem tax.
Sec. 3797.0502. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election under Section 3797.0501, the district may impose an
operation and maintenance tax on taxable property in the district
in the manner provided by Section 49.107, Water Code, for any
district purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the operation and maintenance
tax rate. The rate may not exceed the rate approved at the
election.
Sec. 3797.0503. AUTHORITY TO BORROW MONEY AND TO ISSUE
BONDS. (a) The district may borrow money on terms determined by
the board.
(b) The district may issue bonds, notes, or other
obligations payable wholly or partly from ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
Sec. 3797.0504. BONDS SECURED BY REVENUE OR CONTRACT
PAYMENTS. The district may issue, without an election, bonds
secured by:
(1) revenue other than ad valorem taxes, including
contract revenues; or
(2) contract payments, provided that the requirements
of Section 49.108, Water Code, have been met.
Sec. 3797.0505. BONDS SECURED BY AD VALOREM TAXES;
ELECTIONS. (a) If authorized at an election under Section
3797.0501, the district may issue bonds payable from ad valorem
taxes.
(b) Section 375.243, Local Government Code, does not apply
to the district.
(c) At the time the district issues bonds payable wholly or
partly from ad valorem taxes, the board shall provide for the annual
imposition of a continuing direct annual ad valorem tax, without
limit as to rate or amount, for each year that all or part of the
bonds are outstanding as required and in the manner provided by
Sections 54.601 and 54.602, Water Code.
(d) All or any part of any facilities or improvements that
may be acquired by a district by the issuance of its bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
Sec. 3797.0506. CONSENT OF CITY REQUIRED. (a) The board
may not issue bonds until the city has consented by ordinance or
resolution to the creation of the district and to the inclusion of
municipal territory in the district.
(b) This section applies only to the district's first
issuance of bonds payable from ad valorem taxes.
SUBCHAPTER F. DEFINED AREAS
Sec. 3797.0601. AUTHORITY TO ESTABLISH DEFINED AREAS OR
DESIGNATED PROPERTY. The district may define areas or designate
certain property of the district to pay for improvements,
facilities, or services that primarily benefit that area or
property and do not generally and directly benefit the district as a
whole.
Sec. 3797.0602. PROCEDURE FOR ELECTION. (a) Before the
district may impose an ad valorem tax applicable only to the defined
area or designated property or issue bonds payable from ad valorem
taxes of the defined area or designated property, the board shall
hold an election in the defined area or designated property only.
(b) The board may submit the proposition to the voters on
the same ballot to be used in another election.
Sec. 3797.0603. DECLARING RESULT AND ISSUING ORDER. (a) If
a majority of the voters voting at an election held under Section
3797.0602 approve the proposition or propositions, the board shall
declare the results and, by order, shall establish the defined area
or designated property and describe it by metes and bounds or
designate the specific area or property.
(b) A court may not review the board's order except on the
ground of fraud, palpable error, or arbitrary and confiscatory
abuse of discretion.
Sec. 3797.0604. TAXES FOR SERVICES, IMPROVEMENTS, AND
FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
approval and adoption of an order described by Section 3797.0603,
the district may apply separately, differently, equitably, and
specifically its taxing power and lien authority to the defined
area or designated property to provide money to construct,
administer, maintain, and operate services, improvements, and
facilities that primarily benefit the defined area or designated
property.
Sec. 3797.0605. ISSUANCE OF BONDS FOR DEFINED AREA OR
DESIGNATED PROPERTY. After an order under Section 3797.0603 is
adopted, the district may issue bonds to provide for any land,
improvements, facilities, plants, equipment, and appliances for
the defined area or designated property.
SUBCHAPTER I. DISSOLUTION
Sec. 3797.0901. DISSOLUTION. (a) The board shall dissolve
the district on written petition filed with the board by the owners
of:
(1) 66 percent or more of the assessed value of the
property subject to assessment by the district based on the most
recent certified county property tax rolls; or
(2) 66 percent or more of the surface area of the
district, excluding roads, streets, highways, utility
rights-of-way, other public areas, and other property exempt from
assessment by the district according to the most recent certified
county property tax rolls.
(b) The board by majority vote may dissolve the district at
any time.
(c) The district may not be dissolved by its board under
Subsection (a) or (b) if the district:
(1) has any outstanding bonded indebtedness until that
bonded indebtedness has been repaid or defeased in accordance with
the order or resolution authorizing the issuance of the bonds;
(2) has a contractual obligation to pay money until
that obligation has been fully paid in accordance with the
contract; or
(3) owns, operates, or maintains public works,
facilities, or improvements unless the district contracts with
another person for the ownership, operation, or maintenance of the
public works, facilities, or improvements.
(d) Sections 375.261, 375.262, and 375.264, Local
Government Code, do not apply to 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,
lieutenant governor, and 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 have been
fulfilled and accomplished.
SECTION 3. This Act takes effect September 1, 2023.