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.