By: Brown S.B. No. 1601 A BILL TO BE ENTITLED AN ACT 1-1 relating to the creation, administration, powers, and duties of the 1-2 Westchase Area Management District. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. CREATION; LEGISLATIVE DECLARATION. (a) There is 1-5 created and established a special district in Harris County to be 1-6 known as the "Westchase Area Management District" that is a 1-7 governmental agency, a body politic and corporate, and a political 1-8 subdivision of the state. 1-9 (b) The name of the district may be changed by resolution of 1-10 the board of directors at any time. 1-11 (c) The creation of the district is declared to be essential 1-12 to the accomplishment of the purposes of Article III, Section 52, 1-13 Article XVI, Section 59, and Article III, Section 52-a, of the 1-14 Texas Constitution and to the accomplishment of the other public 1-15 purposes stated in this Act. 1-16 (d) The legislature finds, determines, and declares that the 1-17 creation of the district is necessary to promote, develop, 1-18 encourage, and maintain employment, commerce, transportation, 1-19 housing, tourism, recreation, arts, entertainment, economic 1-20 development, safety, and the public welfare in the downtown Houston 1-21 area of Harris County. It is the legislature's intent that the 1-22 creation of the district and this legislation not be interpreted to 1-23 relieve Harris County or the City of Houston from providing the 2-1 present level of services to the area included within the district 2-2 or to release the county or the city from the obligations each 2-3 entity has to provide services to that area. The district is 2-4 created to supplement and not supplant the city or county services 2-5 in the area included within the district. 2-6 (e) The legislature finds, determines, and intends that by 2-7 creating the district and in authorizing the City, County and other 2-8 political subdivisions to contract with the district it has 2-9 established a program to accomplish the public purposes set out in 2-10 Article III, Section 52-a, of the Texas Constitution. 2-11 SECTION 2. DEFINITIONS. In this Act: 2-12 (1) "Board" means the board of directors of the 2-13 district. 2-14 (2) "District" means the Westchase Area Management 2-15 District. 2-16 (3) "City" means the City of Houston, Texas. 2-17 (4) "County" means Harris County, Texas. 2-18 SECTION 3. BOUNDARIES. (TO COME) 2-19 SECTION 4. FINDINGS RELATING TO BOUNDARIES. The legislature 2-20 finds that the boundaries and field notes of the District form a 2-21 closure. If a mistake is made in the field notes or in copying the 2-22 field notes in the legislative process, it in no way affects the 2-23 organization, existence, and validity of the District, the right of 2-24 the District to issue any type of bonds or refunding bonds for the 2-25 purposes for which the District is created or to pay the principal 3-1 of and interest on the bonds, or the right of the District to levy 3-2 and collect assessments or taxes, or in any other manner affects 3-3 the legality or operation of the District or its governing body. 3-4 SECTION 5. FINDING OF BENEFIT AND PUBLIC PURPOSE. (a) The 3-5 legislature finds that all of the land and other property included 3-6 within the boundaries of the District will be benefited by the 3-7 improvements and services to be provided by the District under 3-8 powers conferred by Article III, Section 52, Article XVI, Section 3-9 59, and Article III, Section 52-a, of the Texas constitution, and 3-10 other powers granted under this Act, and that the District is 3-11 created to serve a public use and benefit. 3-12 (b) The legislature finds that the creation of the District 3-13 is essential to further the public purposes of the development and 3-14 diversification of the economy of the state, the elimination of 3-15 unemployment and underemployment and the development or expansion 3-16 of transportation and commerce, and is in the public interest. The 3-17 legislature further finds that the District will promote the 3-18 health, safety, and general welfare of residents, employers, 3-19 employees, visitors, consumers in the District, and the general 3-20 public. The District will provide needed funding for the Westchase 3-21 area to preserve, maintain, and enhance the economic health and 3-22 vitality of the area as a community and business center. The 3-23 District will further promote the health, safety, welfare, and 3-24 enjoyment of the public by providing pedestrian ways and by 3-25 landscaping and developing certain areas within the District, which 4-1 are necessary for the restoration, preservation, and enhancement of 4-2 scenic and aesthetic beauty. The legislature finds and determines 4-3 that pedestrian ways along or across a street (whether at grade or 4-4 above or below the surface), and street lighting, street 4-5 landscaping, and street art objects are parts of and necessary 4-6 components of a street and shall be deemed to be a street or road 4-7 improvement. The District will not act as the agent or 4-8 instrumentality of any private interest even though many private 4-9 interests will be benefited by the District, as will the general 4-10 public. 4-11 (c) This Act shall be liberally construed in conformity with 4-12 the legislative findings and purposes stated in this Act. The 4-13 District shall have all powers necessary or required for the 4-14 District to be able to accomplish the legislative purposes for 4-15 which the District is created. 4-16 SECTION 6. BOARD OF DIRECTORS. (a) The District is 4-17 governed by a Board of 17 directors who shall serve for staggered 4-18 terms of four years. 4-19 (b) At the time this Act takes effect, the following persons 4-20 shall constitute the initial Board of the District and are 4-21 appointed for the terms prescribed by Subsection (c) of this 4-22 section: 4-23 Pos. No. Name of Director Position Term of Office 4-24 1 4-25 2 5-1 3 5-2 4 5-3 5 5-4 6 5-5 7 5-6 8 5-7 9 5-8 10 5-9 11 5-10 12 5-11 13 5-12 14 5-13 15 5-14 16 5-15 17 5-16 (c) Of the initial directors, the directors appointed for 5-17 positions 1 through 8 shall serve until June 1, 1997, and the 5-18 directors appointed for positions 9 through 17 shall serve until 5-19 June 1, 1999. 5-20 (d) Subsequent directors for full terms shall be appointed 5-21 by the mayor and City council of the City from persons recommended 5-22 by the Board and shall qualify as provided by Subchapter D, Chapter 5-23 375, Local Government Code, as added by S.B. No. 232, Acts of the 5-24 72nd Legislature, Regular Session, 1991. A vacancy on the Board 5-25 due to death, resignation, or removal shall be filled by the Board 6-1 by appointing a qualified person for the unexpired term. 6-2 (e) The Board may also appoint ex-officio, non-voting 6-3 members to the Board. 6-4 (f) The Board is governed by Subchapter D, Chapter 375, 6-5 Local Government Code, to the extent that subchapter does not 6-6 conflict with this Act. Directors may vote on any matter 6-7 authorized by Subchapter D, Chapter 375, Local Government Code; 6-8 however, action may only be taken by the Board if it is approved in 6-9 the manner prescribed by Subchapter D, Chapter 375, Local 6-10 Government Code. 6-11 SECTION 7. GENERAL POWERS. (a) The District shall have all 6-12 of the rights, powers, privileges, and authority conferred by the 6-13 general law of this state applicable to districts created under 6-14 Chapter 375, Local Government Code, as added by S.B. No. 232, Acts 6-15 of the 72nd Legislature, Regular Session, 1991. The District shall 6-16 have all of the powers of an industrial development corporation 6-17 created under the provisions of Section 4B of Article 5190.6, 6-18 Vernon's Texas Civil Statutes, and the District is authorized to 6-19 own, operate, acquire, construct, lease, improve, and maintain 6-20 those projects described in Article 5190.6, Section 4B, Vernon's 6-21 Texas Civil Statutes. The District shall have the power to levy ad 6-22 valorem taxes, assessments, or impact fees in accordance with 6-23 provisions of Chapter 375, Local Government Code, to provide any 6-24 improvements and services for any project or activity the District 6-25 is authorized to acquire, construct, improve, or provide under this 7-1 Act. In addition, the Board shall have the authority to correct, 7-2 add to or delete from its assessment roll after notice and hearing 7-3 in the manner required under Section 375.115. The District shall 7-4 not have the power to acquire property through the exercise of the 7-5 power of eminent domain. If any provision of the referenced laws 7-6 is in conflict with or inconsistent with this Act, this Act 7-7 prevails. All laws or provisions of laws referenced in this Act 7-8 and subsequent amendments to those laws are adopted and 7-9 incorporated into this Act for all purposes and may be used by the 7-10 District independently of each other. The District may not finance 7-11 services and improvement projects under this Act unless a written 7-12 petition has been filed with the Board requesting those 7-13 improvements or services signed by: 7-14 (1) the owners of a majority of the assessed value of 7-15 real property in the District as determined by the most recent 7-16 certified County property tax rolls; or 7-17 (2) if there are more than 50 persons who own property 7-18 in the District as determined by the most recent certified County 7-19 property tax rolls, by at least 50 persons who own land within the 7-20 District. 7-21 (b) If the District, in exercising a power conferred by this 7-22 Act, requires a relocation, adjustment, raising, lowering, 7-23 rerouting, or changing the grade of or altering the construction of 7-24 any street, alley, highway, overpass, underpass, road, railroad 7-25 track, bridge, facility or property, electric line, conduit, 8-1 facility or property, telephone or telegraph line, conduit, 8-2 facility or property, gas transmission or distribution pipe, 8-3 pipeline, main, facility or property, water, sanitary sewer or 8-4 storm sewer pipe, pipeline, main, facility or property, cable 8-5 television line, cable, conduit, facility or property, or other 8-6 pipeline or facility or property relating to the pipeline, that 8-7 relocation, adjustment, raising, lowering, rerouting, changing of 8-8 grade, or altering of construction must be accomplished at the sole 8-9 cost and expense of the District, and damages that are suffered by 8-10 owners of the property or facilities shall be borne by the 8-11 District. 8-12 (c) The Board shall establish by resolution the number of 8-13 director signatures or the procedure required for all disbursements 8-14 or transfers of the District's money. 8-15 SECTION 8. TORT CLAIMS. The District is a unit of 8-16 government for purposes of Chapter 101, Civil Practice and Remedies 8-17 Code. The operations of the District are essential governmental 8-18 functions for all purposes and not proprietary functions. 8-19 SECTION 9. BONDS AND ASSESSMENTS. (a) The District may 8-20 issue bonds or other obligations payable in whole or in part from 8-21 ad valorem taxes, assessments, impact fees, revenues, grants, or 8-22 other funds of the District, or any combination of those funds, to 8-23 pay for any authorized purpose of the District. Bonds or other 8-24 obligations of the District may be issued in the form of bonds, 8-25 notes, certificates of participation, including other instruments 9-1 evidencing a proportionate interest in payments to be made by the 9-2 District, or other obligations that are issued in the exercise of 9-3 the District's borrowing power and may be issued in bearer or 9-4 registered form or not represented by an instrument but the 9-5 transfer of which is registered on books maintained by or on behalf 9-6 of the District. The Board may levy and collect an assessment 9-7 under Subchapter F, Chapter 375, Local Government Code, for any 9-8 authorized purpose by this Act or Chapter 375, Local Government 9-9 Code. 9-10 (b) The District must obtain the approval of the City for 9-11 bond issues for an improvement project and the plans and 9-12 specifications of an improvement project financed by the bond issue 9-13 before those bonds may be issued. Instead of approval of bonds by 9-14 the City, the District before finally approving a capital 9-15 improvements budget may obtain approval from the City of a capital 9-16 improvements budget for a period not to exceed five years. If the 9-17 District obtains approval of a capital improvements budget, it may 9-18 finance the capital improvements and issue bonds specified in the 9-19 budget without further approval from the City. The District must 9-20 obtain approval from the City of the plans and specifications of 9-21 any improvement project that involves the use of the rights-of-way 9-22 of streets, roads, or highways or the use of City land or any 9-23 easements granted by the City. 9-24 (c) Except as provided above in Paragraph (b), no approval 9-25 of bonds issued by the District is required other than the approval 10-1 of the attorney general as provided by Article 717-8, Vernon's 10-2 Texas Civil Statutes. 10-3 (d) Assessments, reassessments or assessments resulting from 10-4 an addition to or correction of the assessment roll by the 10-5 District, penalties and interest on an assessment or reassessment, 10-6 expenses of collection, and reasonable attorney's fees incurred by 10-7 the District are a first and prior lien against the property 10-8 assessed, are superior to any other lien or claim other than a lien 10-9 or claim for County, school District, or municipal ad valorem 10-10 taxes, and are the personal liability of and charge against the 10-11 owners of the property even if the owners are not named in the 10-12 assessment proceedings. The lien is effective from the date of the 10-13 resolution of the Board levying the assessment until the assessment 10-14 is paid. The Board may enforce the lien in the same manner that 10-15 the Board may enforce an ad valorem tax lien against real property. 10-16 SECTION 10. ELECTIONS. The District shall hold elections as 10-17 provided by Subchapter L, Chapter 375, Local Government Code. The 10-18 District shall also hold an election in the manner provided by that 10-19 subchapter for the purpose of obtaining voter approval for the 10-20 District to levy a maintenance tax or to issue bonds payable from 10-21 ad valorem taxes or assessments. The Board may submit multiple 10-22 purposes in a single proposition at an election. 10-23 SECTION 11. IMPACT FEES. The District may impose an impact 10-24 fee for an authorized purpose as provided by Subchapter G, Chapter 10-25 375, Local Government Code. 11-1 SECTION 12. MAINTENANCE TAX. If authorized at an election 11-2 held in accordance with Section 10 of this Act, the District may 11-3 levy and collect an annual ad valorem tax on taxable property in 11-4 the District for maintenance, operation, and upkeep of the District 11-5 and the improvements constructed or acquired by the District and 11-6 the provision of services to industrial and commercial businesses 11-7 and residents and property owners. The Board shall determine the 11-8 tax rate. 11-9 SECTION 13. DISSOLUTION OF THE DISTRICT. The District may 11-10 be dissolved as provided in Subchapter of Chapter 375, Local 11-11 Government Code. If the District is dissolved, the District shall 11-12 remain in existence solely for the limited purpose of discharging 11-13 its bonds or other obligations according to their terms. 11-14 SECTION 14. CONTRACTS. (a) To protect the public interest, 11-15 the District may contract with the City or County for the provision 11-16 of law enforcement services by the County or the City on a fee 11-17 basis in the District. 11-18 (b) The City, the County, or any other political 11-19 subdivision, without further authorization, may contract with the 11-20 District to implement a project of the District or to aid and 11-21 assist the District in providing the services authorized under this 11-22 Act. Any such contract may be for such duration and on such terms 11-23 and conditions as the parties determine. The contract may be 11-24 payable from taxes or any other sources of revenues which may be 11-25 available for such purpose. Any such contract may provide that 12-1 taxes or other revenues collected at a project of the District or 12-2 from persons using or purchasing commodities or services at the 12-3 project may be paid or rebated to the District under the terms 12-4 specified in the contract. 12-5 (c) The District may enter into contracts, leases, and 12-6 agreements with and accept or make grants and loans to or from the 12-7 United States and its departments and agencies, the state and its 12-8 agencies, counties, municipalities, and political subdivisions, 12-9 public or private corporations, including a nonprofit corporation 12-10 created under a resolution of the Board, and other persons and may 12-11 perform all acts necessary for the full exercise of the powers 12-12 vested in it on terms and conditions and for the term the Board may 12-13 determine to be advisable. 12-14 SECTION 15. COMPETITIVE BIDDING. The District shall 12-15 contract for services, improvements, or the purchase of materials, 12-16 machinery, equipment, supplies, or other property in excess of 12-17 $25,000 as provided by Subchapter k of Chapter 375, Local 12-18 Government Code. 12-19 SECTION 16. NOTICE AND CONSENT. The legislature finds that: 12-20 (1) proper and legal notice of the intention to 12-21 introduce this Act, setting forth the general substance of this 12-22 Act, has been published as provided by law, and the notice and a 12-23 copy of this Act have been furnished to all persons, agencies, 12-24 officials, or entities to which they are required to be furnished 12-25 by the constitution and laws of this state, including the governor 13-1 of Texas, who has submitted the notice and Act to the Texas Water 13-2 Commission; 13-3 (2) the Texas Water Commission has filed its 13-4 recommendations relating to this Act with the governor, lieutenant 13-5 governor, and speaker of the house of representatives within the 13-6 required time; 13-7 (3) the general law relating to consent by political 13-8 subdivisions to the creation of districts with conservation, 13-9 reclamation, and road powers and the inclusion of land in those 13-10 districts has been complied with; and 13-11 (4) all requirements of the constitution and laws of 13-12 this state and the rules and procedures of the legislature with 13-13 respect to the notice, introduction and passage of this Act have 13-14 been fulfilled and accomplished. 13-15 SECTION 17. SEVERABILITY CLAUSE. The provisions of this Act 13-16 are severable, and if any provision or part of this Act or the 13-17 application thereof to any person or circumstance is held by a 13-18 court of competent jurisdiction to be invalid or unconstitutional 13-19 for any reason, the remainder of this Act and the application of 13-20 that provision or part of this Act to other persons or 13-21 circumstances is not affected. 13-22 SECTION 18. EMERGENCY. The importance of this legislation 13-23 and the crowded condition of the calendars in both houses create an 13-24 emergency and an imperative public necessity that the 13-25 constitutional rule requiring bills to be read on three several 14-1 days in each house be suspended, and this rule is hereby suspended.