By Gallegos                                             S.B. No. 19

         75R11010 SKB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the creation of the Greater East End Management

 1-3     District.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subtitle A, Title 12, Local Government Code, is

 1-6     amended by adding Chapter 376 to read as follows:

 1-7            CHAPTER 376.  SPECIFIC MUNICIPAL MANAGEMENT DISTRICTS

 1-8                  (Subchapters A-D reserved for expansion

 1-9             SUBCHAPTER E.  GREATER EAST END MANAGEMENT DISTRICT

1-10           Sec. 376.161.  CREATION OF DISTRICT.  (a)  A special district

1-11     to be known as the "Greater East End Management District" exists as

1-12     a governmental agency, body politic and corporate, and political

1-13     subdivision of the state.

1-14           (b)  The name of the district may be changed by resolution of

1-15     the board.

1-16           (c)  The creation of the district is essential to accomplish

1-17     the purposes of Section 52, Article III, Section 59, Article XVI,

1-18     and Section 52-a, Article III, Texas Constitution, and other public

1-19     purposes stated in this subchapter.

1-20           Sec. 376.162.  DECLARATION OF INTENT.  (a)  The creation of

1-21     the district is necessary to promote, develop, encourage, and

1-22     maintain employment, commerce, transportation, housing, tourism,

1-23     recreation, arts, entertainment, economic development, safety, and

1-24     the public welfare in the Richmond Avenue area of the city of

 2-1     Houston.

 2-2           (b)  The creation of the district and this legislation are

 2-3     not to be interpreted to relieve the county or the municipality

 2-4     from providing the level of services, as of September 1, 1997, to

 2-5     the area in the district or to release the county or the

 2-6     municipality from the obligations each entity has to provide

 2-7     services to that area.  The district is created to supplement and

 2-8     not supplant the municipal or county services provided in the area

 2-9     in the district.

2-10           (c)  By creating the district and in authorizing the

2-11     municipality, county, and other political subdivisions to contract

2-12     with the district, the legislature has established a program to

2-13     accomplish the public purposes set out in Section 52-a, Article

2-14     III, Texas Constitution.

2-15           Sec. 376.163.  DEFINITIONS.  In this subchapter:

2-16                 (1)  "Board" means the board of directors of the

2-17     district.

2-18                 (2)  "District" means the Greater East End Management

2-19     District.

2-20                 (3)  "Municipality" means the City of Houston, Texas.

2-21                 (4)  "County" means Harris County, Texas.

2-22           Sec. 376.164.  BOUNDARIES.  The district includes all the

2-23     territory contained in the following described area:

2-24           Being 23 square miles acres, more or less, out of the D.

2-25     GREGG Abstract, Survey No. 238, the S.M. WILLIAMS Abstract, Survey

2-26     No. 87, the HARRIS & WILSON Abstract, Survey No.32, the L. MOORE

2-27     Abstract, Survey No. 51, the S.M. HARRIS Abstract, Survey No. 327,

 3-1     the J.  BROWN Abstract, Survey No. 8, the H. TIERWESTER Abstract,

 3-2     Survey No. 76, the J. WELLS Abstract, Survey No. 832, the J. THOMAS

 3-3     Abstract, Survey No. 74, the J. THOMAS Abstract, Survey No. 762,

 3-4     the H.B. PRENTISS Abstract, Survey No. 56, the CALLAHAN & VINCE

 3-5     Abstract, Survey No. 9, the J.R. HARRIS Abstract, Survey No. 27,

 3-6     the J. AUSTIN Abstract, Survey No. 1, and the J. HOLMAN Abstract,

 3-7     Survey No. 323, all located in Harris County, Texas, being more

 3-8     particularly described by metes and bounds as follows:

 3-9           BEGINNING AT A POINT being the point of intersection of the

3-10     centerline of Interstate Highway 10 East, a.k.a. "the East Freeway"

3-11     and the centerline of East Loop 610,

3-12           Thence in a southerly direction with the centerline of East

3-13     Loop 610, passing the centerline of Buffalo Bayou and continuing in

3-14     a southerly direction with the East Line of Loop 610 along a curve

3-15     to the right and proceeding in a southwesterly direction with the

3-16     centerline of Loop 610, passing the centerline of Interstate 45

3-17     South to the point of intersection with the centerline of Telephone

3-18     Road,

3-19           Thence in a northwesterly direction with the centerline of

3-20     Telephone Road to the point of intersection with the centerline of

3-21     Brays Bayou,

3-22           Thence in a westerly direction following the meanders of the

3-23     centerline of Brays Bayou to the point of intersection with the

3-24     centerline of Calhoun Street,

3-25           Thence in a northerly direction  with the centerline of

3-26     Calhoun Street, passing the intersection with the centerline of

3-27     Wheeler Street and continuing with the centerline of Calhoun Street

 4-1     (also known as Martin Luther King Boulevard along certain portions

 4-2     of that right of way) to the point of intersection with the

 4-3     centerline of Interstate 45 South,

 4-4           Thence in a northwesterly direction with the centerline of

 4-5     Interstate 45 South to the point of intersection with the

 4-6     centerline of U.S. Highway 59,

 4-7           Thence in a northerly direction with the centerline of U.S.

 4-8     Highway 59, passing the centerline of Buffalo Bayou and continuing

 4-9     to the point of intersection with the centerline of Interstate

4-10     Highway 10 East, a.k.a. "the East Freeway",

4-11           THENCE in an easterly direction wtih the centerline of

4-12     Interstate Highway 10 East, a.k.a. "the East Freeway" to the POINT

4-13     OF BEGINNING.

4-14           Sec. 376.165.  FINDINGS RELATING TO BOUNDARIES.  The

4-15     boundaries and field notes of the district form a closure.  If a

4-16     mistake is made in the field notes or in copying the field notes in

4-17     the legislative process, the mistake does not in any way affect

4-18     the:

4-19                 (1)  organization, existence, and validity of the

4-20     district;

4-21                 (2)  right of the district to issue any type of bonds

4-22     or refunding bonds for the purposes for which the district is

4-23     created or to pay the principal of and interest on the bonds;

4-24                 (3)  right of the district to impose and collect

4-25     assessments or taxes; or

4-26                 (4)  legality or operation of the district or its

4-27     governing body.

 5-1           Sec. 376.166.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)

 5-2     All the land and other property included in the district will be

 5-3     benefited by the improvements and services to be provided by the

 5-4     district under powers conferred by Section 52, Article III, Section

 5-5     59, Article XVI, and Section 52-a, Article III, Texas Constitution,

 5-6     and other powers granted under this subchapter, and the district is

 5-7     created to serve a public use and benefit.

 5-8           (b)  The creation of the district is in the public interest

 5-9     and is essential to:

5-10                 (1)  further the public purposes of the development and

5-11     diversification of the economy of the state; and

5-12                 (2)  eliminate unemployment and underemployment and

5-13     develop or expand transportation and commerce.

5-14           (c)  The district will:

5-15                 (1)  promote the health, safety, and general welfare of

5-16     residents, employers, employees, visitors, consumers in the

5-17     district, and the general public;

5-18                 (2)  provide needed funding for the Richmond Avenue

5-19     area to preserve, maintain, and enhance the economic health and

5-20     vitality of the area as a community and business center; and

5-21                 (3)  further promote the health, safety, welfare, and

5-22     enjoyment of the public by providing pedestrian ways and by

5-23     landscaping and developing certain areas in the district, which are

5-24     necessary for the restoration, preservation, and enhancement of

5-25     scenic and aesthetic beauty.

5-26           (d)  Pedestrian ways along or across a street, whether at

5-27     grade or above or below the surface, and street lighting, street

 6-1     landscaping, and street art objects are parts of and necessary

 6-2     components of a street and are considered to be a street or road

 6-3     improvement.

 6-4           (e)  The district will not act as the agent or

 6-5     instrumentality of any private interest even though many private

 6-6     interests will be benefited by the district, as will the general

 6-7     public.

 6-8           Sec. 376.167.  APPLICATION OF OTHER LAW.  Except as otherwise

 6-9     provided by this subchapter, Chapter 375 applies to the district.

6-10           Sec. 376.168.  CONSTRUCTION OF SUBCHAPTER.  This subchapter

6-11     shall be liberally construed in conformity with the findings and

6-12     purposes stated in this subchapter.

6-13           Sec. 376.169.  BOARD OF DIRECTORS IN GENERAL.  (a)  The

6-14     district is governed by a board of nine directors who serve

6-15     staggered terms of four years with four or five members' terms

6-16     expiring June 1 of each odd-numbered year.  The board may increase

6-17     or decrease the number of directors on the board by resolution,

6-18     provided that it is in the best interest of the district to do so

6-19     and that the board consists of not fewer than nine and not more

6-20     than 30 directors.

6-21           (b)  Subchapter D, Chapter 375, applies to the board to the

6-22     extent that subchapter does not conflict with this subchapter.  The

6-23     imposition of a tax, assessment, or impact fee requires a vote of a

6-24     majority of the directors serving.  Directors may vote on any

6-25     matter authorized by Subchapter D, Chapter 375, and action may be

6-26     taken by the board only if it is approved in the manner prescribed

6-27     by Subchapter D, Chapter 375.

 7-1           Sec. 376.170.  APPOINTMENT OF DIRECTORS; VACANCY.  The mayor

 7-2     and members of the governing body of the municipality shall appoint

 7-3     directors from persons recommended by the board who meet the

 7-4     qualifications of Subchapter D, Chapter 375.  A vacancy in the

 7-5     office of director because of the death, resignation, or removal of

 7-6     a director shall be filled by the remaining members of the board by

 7-7     appointing a qualified person for the unexpired term.

 7-8           Sec. 376.171.  POWERS OF DISTRICT.  The district has:

 7-9                 (1)  all powers necessary or required to accomplish the

7-10     purposes for which the district was created;

7-11                 (2)  the rights, powers, privileges, authority, and

7-12     functions of a district created under Chapter 375;

7-13                 (3)  the powers given to a corporation under Section

7-14     4B, the Development Corporation Act of 1979 (Article 5190.6,

7-15     Vernon's Texas Civil Statutes), and the power to own, operate,

7-16     acquire, construct, lease, improve, and maintain projects;

7-17                 (4)  the power to impose ad valorem taxes, assessments,

7-18     or impact fees in accordance with Chapter 375 to provide

7-19     improvements and services for a project or activity the district is

7-20     authorized to acquire, construct, improve, or provide under this

7-21     subchapter; and

7-22                 (5)  the power to correct, add to, or delete

7-23     assessments from its assessment rolls after notice and hearing as

7-24     provided by Subchapter F, Chapter 375.

7-25           Sec. 376.172.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS

7-26     AFFECTING PROPERTY.  (a)  If the district, in exercising a power

7-27     conferred by this subchapter, requires a relocation, adjustment,

 8-1     raising, lowering, rerouting, or changing of the grade or the

 8-2     construction of any of the following items, the district must take

 8-3     that required action at the sole expense of the district:

 8-4                 (1)  a street, alley, highway, overpass, underpass,

 8-5     road, railroad track, bridge, facility, or other property;

 8-6                 (2)  an electric line, conduit, facility, or other

 8-7     property;

 8-8                 (3)  a telephone or telegraph line, conduit, facility,

 8-9     or other property;

8-10                 (4)  a gas transmission or distribution pipe, pipeline,

8-11     main, facility, or other property;

8-12                 (5)  a water, sanitary sewer, or storm sewer pipe,

8-13     pipeline, main, facility, or other property;

8-14                 (6)  a cable television line, cable, conduit, facility,

8-15     or other property; or

8-16                 (7)  another pipeline, facility, or other property

8-17     relating to the pipeline.

8-18           (b)  The district shall bear damages that are suffered by

8-19     owners of the facility or other property.

8-20           Sec. 376.173.  RELATION TO OTHER LAW.  If any provision of a

8-21     law referenced in this subchapter is in conflict with or is

8-22     inconsistent with this subchapter, this subchapter prevails.  Any

8-23     law referenced in this subchapter that is not in conflict or

8-24     inconsistent with this subchapter is adopted and incorporated by

8-25     reference.

8-26           Sec. 376.174.  REQUIREMENTS FOR FINANCING SERVICES AND

8-27     IMPROVEMENTS.  The district may not finance services and

 9-1     improvement projects under this subchapter unless a written

 9-2     petition requesting those improvements or services has been filed

 9-3     with the board.  The petition must be signed by:

 9-4                 (1)  the owners of a majority of the assessed value of

 9-5     real property in the district as determined by the most recent

 9-6     certified county property tax rolls; or

 9-7                 (2)  at least 50 persons who own land in the district,

 9-8     if there are more than 50 persons who own property in the district

 9-9     as determined by the most recent certified county property tax

9-10     rolls.

9-11           Sec. 376.175.  NONPROFIT CORPORATION.  (a)  The board by

9-12     resolution may authorize the creation of a nonprofit corporation to

9-13     assist and act on behalf of the district in implementing a project

9-14     or providing a service authorized by this subchapter.

9-15           (b)  The board shall appoint the board of directors of a

9-16     nonprofit corporation created under this section.  The board of

9-17     directors of  the nonprofit corporation shall serve in the same

9-18     manner as, for the same term as, and on the conditions of the board

9-19     of directors of a local government corporation created under

9-20     Chapter 431, Transportation Code.

9-21           (c)  A nonprofit corporation created under this section has

9-22     the powers of and is considered for purposes of this subchapter to

9-23     be a local government corporation created under Chapter 431,

9-24     Transportation Code.

9-25           (d)  A nonprofit corporation created under this section may

9-26     implement any project and provide any services authorized by this

9-27     subchapter.

 10-1          Sec. 376.176.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The

 10-2    board by resolution shall establish the number of directors'

 10-3    signatures and the procedure required for a disbursement or

 10-4    transfer of the district's money.

 10-5          Sec. 376.177.  BONDS.  (a)  The district may issue bonds or

 10-6    other obligations payable in whole or in part from ad valorem

 10-7    taxes, assessments, impact fees, revenues, grants, or other money

 10-8    of the district, or any combination of those sources of money, to

 10-9    pay for any authorized purpose of the district.

10-10          (b)  Bonds or other obligations of the district may be issued

10-11    in the form of bonds, notes, certificates of participation,

10-12    including other instruments evidencing a proportionate interest in

10-13    payments to be made by the district, or other obligations that are

10-14    issued in the exercise of the district's borrowing power and may be

10-15    issued in bearer or registered form or not represented by an

10-16    instrument but the transfer of which is registered on books

10-17    maintained by or on behalf of the district.  The board may impose

10-18    and collect an assessment under Subchapter F, Chapter 375, for any

10-19    purpose authorized by this subchapter or by Chapter 375.

10-20          (c)  Except as provided by Subsection (d), the district must

10-21    obtain the municipality's approval of:

10-22                (1)  the issuance of bonds for an improvement project;

10-23                (2)  the plans and specifications of the improvement

10-24    project to be financed by the bonds; and

10-25                (3)  the plans and specifications of a district

10-26    improvement project related to:

10-27                      (A)  the use of land owned by the municipality;

 11-1                      (B)  an easement granted by the municipality; or

 11-2                      (C)  a right-of-way of a street, road, or

 11-3    highway.

 11-4          (d)  If the district obtains the municipality's approval of a

 11-5    capital improvements budget for a specified period not to exceed

 11-6    five years, the district may finance the capital improvements and

 11-7    issue bonds specified in the budget without further municipal

 11-8    approval.

 11-9          (e)  Before the district issues bonds, the district shall

11-10    submit the bonds and the record of proceedings of the district

11-11    relating to authorization of the bonds to the attorney general for

11-12    approval as provided by Chapter 53, Acts of the 70th Legislature,

11-13    2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil

11-14    Statutes).

11-15          Sec. 376.178.  ASSESSMENTS.  (a)  The board may impose and

11-16    collect an assessment for any purpose authorized by this

11-17    subchapter.

11-18          (b)  Assessments, reassessments, or  assessments resulting

11-19    from an addition to or correction of the assessment roll by the

11-20    district, penalties and interest on an assessment or reassessment,

11-21    expenses of collection, and reasonable attorney's fees incurred by

11-22    the district:

11-23                (1)  are a first and prior lien against the property

11-24    assessed;

11-25                (2)  are superior to any other lien or claim other than

11-26    a lien or claim for county, school district, or municipal ad

11-27    valorem taxes; and

 12-1                (3)  are the personal liability of and charge against

 12-2    the owners of the property even if the owners are not named in the

 12-3    assessment proceedings.

 12-4          (c)  The lien is effective from the date of the resolution of

 12-5    the board levying the assessment until the assessment is paid.  The

 12-6    board may enforce the lien in the same manner that the board may

 12-7    enforce an ad valorem tax lien against real property.

 12-8          Sec. 376.179.  ELECTIONS.  (a)  In addition to the elections

 12-9    the district must hold under Subchapter L, Chapter 375, the

12-10    district shall hold an election in the manner provided by that

12-11    subchapter to obtain voter approval before the district imposes a

12-12    maintenance tax or issues bonds payable from ad valorem taxes or

12-13    assessments.

12-14          (b)  The board may submit multiple purposes in a single

12-15    proposition at an election.

12-16          Sec. 376.180.  IMPACT FEES.  The district may impose an

12-17    impact fee for an authorized purpose as provided by Subchapter G,

12-18    Chapter 375.

12-19          Sec. 376.181.  MAINTENANCE TAX.  (a)  If authorized at an

12-20    election held in accordance with Section 376.179, the district may

12-21    impose and collect an annual ad valorem tax on taxable property in

12-22    the district for the maintenance and operation of the district and

12-23    the improvements constructed or acquired by the district or for the

12-24    provision of services.

12-25          (b)  The board shall determine the tax rate.

12-26          Sec. 376.182.  DISSOLUTION OF DISTRICT.  The district may be

12-27    dissolved as provided by Subchapter M, Chapter 375.  If the

 13-1    district has debt and is dissolved, the district shall remain in

 13-2    existence solely for the limited purpose of discharging its bonds

 13-3    or other obligations according to their terms.

 13-4          Sec. 376.183.  CONTRACTS.  (a)  To protect the public

 13-5    interest, the district may contract with the municipality or county

 13-6    for the provision of law enforcement services by the county or

 13-7    municipality in the district on a fee basis.

 13-8          (b)  The municipality, county, or another political

 13-9    subdivision of the state, without further authorization, may

13-10    contract with the district to implement a project of the district

13-11    or assist the district in providing the services authorized under

13-12    this subchapter.  A contract under this subsection may:

13-13                (1)  be for a period on which the parties agree;

13-14                (2)  include terms on which the parties agree;

13-15                (3)  be payable from taxes or any other sources of

13-16    revenue that may be available for such purpose; or

13-17                (4)  provide that taxes or other revenue collected at a

13-18    district project or from a person using or purchasing a commodity

13-19    or service at a district project may be paid or rebated to the

13-20    district under the terms of the contract.

13-21          (c)  The district may enter into a contract, lease, or other

13-22    agreement with or make or accept grants and loans to or from:

13-23                (1)  the United States;

13-24                (2)  the state or a state agency;

13-25                (3)  any county, any municipality, or another political

13-26    subdivision of the state;

13-27                (4)  a public or private corporation, including a

 14-1    nonprofit corporation created by the board under this subchapter;

 14-2    or

 14-3                (5)  any other person.

 14-4          (d)  The district may perform all acts necessary for the full

 14-5    exercise of the powers vested in the district on terms and for the

 14-6    period the board determines advisable.

 14-7          SECTION 2.  The legislature finds that:

 14-8                (1)  proper and legal notice of the intention to

 14-9    introduce this Act, setting forth the general substance of this

14-10    Act, has been published as provided by law, and the notice and a

14-11    copy of this Act have been furnished to all persons, agencies,

14-12    officials, or entities to which they are required to be furnished

14-13    by the constitution and laws of this state, including the governor,

14-14    who has submitted the notice and Act to the Texas Natural Resource

14-15    Conservation Commission;

14-16                (2)  the Texas Natural Resource Conservation Commission

14-17    has filed its recommendations relating to this Act with the

14-18    governor, lieutenant governor, and speaker of the house of

14-19    representatives within the required time;

14-20                (3)  the general law relating to consent by political

14-21    subdivisions to the creation of districts with conservation,

14-22    reclamation, and road powers and the inclusion of land in those

14-23    districts has been complied with; and

14-24                (4)  all requirements of the constitution and laws of

14-25    this state and the rules and procedures of the legislature with

14-26    respect to the notice, introduction, and passage of this Act have

14-27    been fulfilled and accomplished.

 15-1          SECTION 3.  This Act takes effect September 1, 1997.

 15-2          SECTION 4.  The importance of this legislation and the

 15-3    crowded condition of the calendars in both houses create an

 15-4    emergency and an imperative public necessity that the

 15-5    constitutional rule requiring bills to be read on three several

 15-6    days in each house be suspended, and this rule is hereby suspended.