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.