By Turner of Harris H.B. No. 1105
76R5001 CMR-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Houston Near Northwest Management
1-3 District; providing authority to impose a tax and issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 376, Local Government Code, is amended by
1-6 adding Subchapter H to read as follows:
1-7 SUBCHAPTER H. HOUSTON NEAR
1-8 NORTHWEST MANAGEMENT DISTRICT
1-9 Sec. 376.311. CREATION OF DISTRICT. (a) A special district
1-10 to be known as the "Houston Near Northwest Management District"
1-11 exists as a governmental agency, body politic and corporate, and
1-12 political subdivision of the state.
1-13 (b) The name of the district may be changed by resolution of
1-14 the board.
1-15 (c) The creation of the district is essential to accomplish
1-16 the purposes of Section 52, Article III, Section 59, Article XVI,
1-17 and Section 52-a, Article III, Texas Constitution, and other public
1-18 purposes stated in this subchapter.
1-19 Sec. 376.312. DECLARATION OF INTENT. (a) The creation of
1-20 the district is necessary to promote, develop, encourage, and
1-21 maintain employment, commerce, transportation, housing, tourism,
1-22 recreation, arts, entertainment, economic development, safety, and
1-23 the public welfare in the near northwest area of the municipality.
1-24 (b) The creation of the district and this legislation is not
2-1 to be interpreted to relieve the county or the municipality from
2-2 providing the level of services, as of September 1, 1999, to the
2-3 area in the district or to release the county or the municipality
2-4 from the obligations each entity has to provide services to that
2-5 area. The district is created to supplement and not supplant the
2-6 municipal or county services provided in the area in the district.
2-7 (c) By creating the district and in authorizing the
2-8 municipality, county, and other political subdivisions to contract
2-9 with the district, the legislature has established a program to
2-10 accomplish the public purposes set out in Section 52-a, Article
2-11 III, Texas Constitution.
2-12 Sec. 376.313. DEFINITIONS. In this subchapter:
2-13 (1) "Board" means the board of directors of the
2-14 district.
2-15 (2) "District" means the Houston Near Northwest
2-16 Management District.
2-17 (3) "Municipality" means the City of Houston, Texas.
2-18 (4) "County" means Harris County, Texas.
2-19 Sec. 376.314. BOUNDARIES. The district includes all the
2-20 territory contained in the area bounded by T. C. Jester Boulevard
2-21 on the east, Pinemont Drive on the south, Hollister Drive projected
2-22 to State Road 249 on the west, and State Road 249 on the north.
2-23 Sec. 376.315. FINDINGS RELATING TO BOUNDARIES. The
2-24 boundaries and field notes of the district form a closure. If a
2-25 mistake is made in the field notes or in copying the field notes in
2-26 the legislative process, the mistake does not in any way affect
2-27 the:
3-1 (1) organization, existence, and validity of the
3-2 district;
3-3 (2) right of the district to issue any type of bonds
3-4 or refunding bonds for the purposes for which the district is
3-5 created or to pay the principal of and interest on the bonds;
3-6 (3) right of the district to impose and collect
3-7 assessments or taxes; or
3-8 (4) legality or operation of the district or its
3-9 governing body.
3-10 Sec. 376.316. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
3-11 All the land and other property included in the district will be
3-12 benefited by the improvements and services to be provided by the
3-13 district under powers conferred by Section 52, Article III, Section
3-14 59, Article XVI, and Section 52-a, Article III, Texas Constitution,
3-15 and other powers granted under this subchapter, and the district is
3-16 created to serve a public use and benefit.
3-17 (b) The creation of the district is in the public interest
3-18 and is essential to:
3-19 (1) further the public purposes of the development and
3-20 diversification of the economy of the state; and
3-21 (2) eliminate unemployment and underemployment and
3-22 develop or expand transportation and commerce.
3-23 (c) The district will:
3-24 (1) promote the health, safety, and general welfare of
3-25 residents, employers, employees, visitors, consumers in the
3-26 district, and the general public;
3-27 (2) provide needed funding for the municipal near
4-1 northwest area to preserve, maintain, and enhance the economic
4-2 health and vitality of the area as a community and business center;
4-3 and
4-4 (3) further promote the health, safety, welfare, and
4-5 enjoyment of the public by providing pedestrian ways and by
4-6 landscaping and developing certain areas in the district, which are
4-7 necessary for the restoration, preservation, and enhancement of
4-8 scenic and aesthetic beauty.
4-9 (d) Pedestrian ways along or across a street, whether at
4-10 grade or above or below the surface, and street lighting, street
4-11 landscaping, and street art objects are parts of and necessary
4-12 components of a street and are considered to be a street or road
4-13 improvement.
4-14 (e) The district will not act as the agent or
4-15 instrumentality of any private interest even though many private
4-16 interests will be benefited by the district, as will the general
4-17 public.
4-18 Sec. 376.317. APPLICATION OF OTHER LAW. Except as otherwise
4-19 provided by this subchapter, Chapter 375 applies to the district.
4-20 Sec. 376.318. CONSTRUCTION OF SUBCHAPTER. This subchapter
4-21 shall be liberally construed in conformity with the findings and
4-22 purposes stated in this subchapter.
4-23 Sec. 376.319. BOARD OF DIRECTORS IN GENERAL. (a) The
4-24 district is governed by a board of 30 directors who serve staggered
4-25 terms of four years with seven or eight members' terms expiring
4-26 June 1 of each year.
4-27 (b) Subchapter D, Chapter 375, applies to the board to the
5-1 extent that subchapter does not conflict with this subchapter.
5-2 Sec. 376.320. APPOINTMENT OF DIRECTORS; VACANCY. (a) The
5-3 mayor and members of the governing body of the municipality shall
5-4 appoint directors from persons recommended by the board. A vacancy
5-5 in the office of director because of the death, resignation, or
5-6 removal of a director shall be filled by the remaining members of
5-7 the board by appointing a qualified person for the unexpired term.
5-8 (b) A person may not be appointed to the board if the
5-9 appointment of that person would result in less than two-thirds of
5-10 the board members being residents of the municipality.
5-11 Sec. 376.321. EX OFFICIO MEMBERS OF BOARD OF DIRECTORS. (a)
5-12 The directors of the parks and recreation, planning and
5-13 development, public works, and civic center departments of the
5-14 municipality, the chief of police of the municipality, and the
5-15 general manager of the metropolitan transit authority of the county
5-16 each shall serve as a nonvoting ex officio member of the board.
5-17 (b) If any of the departments described by Subsection (a)
5-18 are consolidated, renamed, changed, or abolished, the board may
5-19 appoint the directors of the consolidated, renamed, or changed
5-20 departments as nonvoting ex officio members of the board or the
5-21 board may appoint a representative of another department of the
5-22 municipality that performs duties comparable to those performed by
5-23 the abolished department.
5-24 (c) The board may appoint the presiding officers of other
5-25 nonprofit corporations actively involved in downtown activities in
5-26 the municipality to serve as nonvoting ex officio members of the
5-27 board.
6-1 Sec. 376.322. POWERS OF DISTRICT. (a) The district has:
6-2 (1) all powers necessary or required to accomplish the
6-3 purposes for which the district was created;
6-4 (2) the rights, powers, privileges, authority, and
6-5 functions of a district created under Chapter 375;
6-6 (3) the powers given to a corporation under Section
6-7 4B, the Development Corporation Act of 1979 (Article 5190.6,
6-8 Vernon's Texas Civil Statutes), and the power to own, operate,
6-9 acquire, construct, lease, improve, and maintain projects described
6-10 by that section;
6-11 (4) the power of a housing finance corporation created
6-12 under Chapter 394 to provide housing or residential development
6-13 projects in the district;
6-14 (5) the power to impose ad valorem taxes, assessments,
6-15 or impact fees in accordance with Chapter 375 to provide
6-16 improvements and services for a project or activity the district is
6-17 authorized to acquire, construct, improve, or provide under this
6-18 subchapter; and
6-19 (6) the power to correct, add to, or delete
6-20 assessments from its assessment rolls after notice and hearing as
6-21 provided by Subchapter F, Chapter 375.
6-22 (b) The district may not impose a sales and use tax and may
6-23 not acquire property through eminent domain.
6-24 Sec. 376.323. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
6-25 AFFECTING PROPERTY. (a) If the district, in exercising a power
6-26 conferred by this subchapter, requires a relocation, adjustment,
6-27 raising, lowering, rerouting, or changing of the grade or the
7-1 construction of any of the following items, the district must take
7-2 that required action at the sole expense of the district:
7-3 (1) a street, alley, highway, overpass, underpass,
7-4 road, railroad track, bridge, facility, or other property;
7-5 (2) an electric line, conduit, facility, or other
7-6 property;
7-7 (3) a telephone or telegraph line, conduit, facility,
7-8 or other property;
7-9 (4) a gas transmission or distribution pipe, pipeline,
7-10 main, facility, or other property;
7-11 (5) a water, sanitary sewer, or storm sewer pipe,
7-12 pipeline, main, facility, or other property;
7-13 (6) a cable television line, cable, conduit, facility,
7-14 or other property; or
7-15 (7) another pipeline, facility, or other property
7-16 relating to the pipeline.
7-17 (b) The district shall bear damages that are suffered by
7-18 owners of the facility or other property.
7-19 Sec. 376.324. RELATION TO OTHER LAW. If any provision of a
7-20 law referenced in Section 376.322 is in conflict with or is
7-21 inconsistent with this subchapter, this subchapter prevails. Any
7-22 law referenced in this subchapter that is not in conflict or
7-23 inconsistent with this subchapter is adopted and incorporated by
7-24 reference.
7-25 Sec. 376.325. REQUIREMENTS FOR FINANCING SERVICES AND
7-26 IMPROVEMENTS. The board may not finance services and improvement
7-27 projects under this subchapter unless a written petition requesting
8-1 those improvements or services has been filed with the board. The
8-2 petition must be signed by:
8-3 (1) the owners of a majority of the assessed value of
8-4 real property in the district as determined by the most recent
8-5 certified county property tax rolls; or
8-6 (2) at least 50 persons who own land in the district,
8-7 if there are more than 50 persons who own property in the district
8-8 as determined by the most recent certified county property tax
8-9 rolls.
8-10 Sec. 376.326. PROHIBITED EXEMPTIONS. A single family
8-11 residential property or a residential duplex, triplex, quadruplex,
8-12 or condominium may not be exempt from the imposition of a tax, an
8-13 impact fee, or an assessment if the tax, impact fee, or assessment
8-14 is imposed in accordance with this subchapter.
8-15 Sec. 376.327. NONPROFIT CORPORATION. (a) The board by
8-16 resolution may authorize the creation of a nonprofit corporation to
8-17 assist and act on behalf of the district in implementing a project
8-18 or providing a service authorized by this subchapter.
8-19 (b) The board shall appoint the board of directors of a
8-20 nonprofit corporation created under this section. The board of
8-21 directors of the nonprofit corporation shall serve in the same
8-22 manner as, for the same term as, and on the conditions of the board
8-23 of directors of a local government corporation created under
8-24 Chapter 431, Transportation Code.
8-25 (c) A nonprofit corporation created under this section has
8-26 the powers of and is considered for purposes of this subchapter to
8-27 be a local government corporation created under Chapter 431,
9-1 Transportation Code.
9-2 (d) A nonprofit corporation created under this section may
9-3 implement any project and provide any services authorized by this
9-4 subchapter.
9-5 Sec. 376.328. DISBURSEMENTS OR TRANSFERS OF FUNDS. The
9-6 board by resolution shall establish the number of directors'
9-7 signatures and the procedure required for a disbursement or
9-8 transfer of the district's money.
9-9 Sec. 376.329. BONDS. (a) The district may issue bonds or
9-10 other obligations payable in whole or in part from ad valorem
9-11 taxes, assessments, impact fees, revenues, grants, or other money
9-12 of the district, or any combination of those sources of money, to
9-13 pay for any authorized purpose of the district.
9-14 (b) Bonds or other obligations of the district may be issued
9-15 in the form of bonds, notes, certificates of participation,
9-16 including other instruments evidencing a proportionate interest in
9-17 payments to be made by the district, or other obligations that are
9-18 issued in the exercise of the district's borrowing power and may be
9-19 issued in bearer or registered form or not represented by an
9-20 instrument but the transfer of which is registered on books
9-21 maintained by or on behalf of the district.
9-22 (c) Except as provided by Subsection (d), the district must
9-23 obtain the municipality's approval of:
9-24 (1) the issuance of bonds for an improvement project;
9-25 and
9-26 (2) the plans and specifications of the improvement
9-27 project to be financed by the bonds.
10-1 (d) If the district obtains the municipality's approval of a
10-2 capital improvements budget for a specified period not to exceed
10-3 five years, the district may finance the capital improvements and
10-4 issue bonds specified in the budget without further municipal
10-5 approval.
10-6 (e) Before the district issues bonds, the district shall
10-7 submit the bonds and the record of proceedings of the district
10-8 relating to authorization of the bonds to the attorney general for
10-9 approval as provided by Chapter 53, Acts of the 70th Legislature,
10-10 2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil
10-11 Statutes).
10-12 Sec. 376.330. ASSESSMENTS. (a) The board may impose and
10-13 collect an assessment for any purpose authorized by this
10-14 subchapter.
10-15 (b) Assessments, reassessments, or assessments resulting
10-16 from an addition to or correction of the assessment roll by the
10-17 district, penalties and interest on an assessment or reassessment,
10-18 expenses of collection, and reasonable attorney's fees incurred by
10-19 the district:
10-20 (1) are a first and prior lien against the property
10-21 assessed;
10-22 (2) are superior to any other lien or claim other than
10-23 a lien or claim for county, school district, or municipal ad
10-24 valorem taxes; and
10-25 (3) are the personal liability of and charge against
10-26 the owners of the property even if the owners are not named in the
10-27 assessment proceedings.
11-1 (c) The lien is effective from the date of the resolution of
11-2 the board levying the assessment until the assessment is paid. The
11-3 board may enforce the lien in the same manner that the board may
11-4 enforce an ad valorem tax lien against real property.
11-5 Sec. 376.331. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. The
11-6 district must obtain the municipality's approval of the plans and
11-7 specifications of any district improvement project related to the
11-8 use of land owned by the municipality, an easement granted by the
11-9 municipality, or a right-of-way of a street, road, or highway.
11-10 Sec. 376.332. ELECTIONS. (a) In addition to the elections
11-11 the district must hold under Subchapter L, Chapter 375, the
11-12 district shall hold an election in the manner provided by that
11-13 subchapter to obtain voter approval before the district imposes a
11-14 maintenance tax or issues bonds payable from ad valorem taxes or
11-15 assessments.
11-16 (b) The board may submit multiple purposes in a single
11-17 proposition at an election.
11-18 (c) The board may not call an election under this subchapter
11-19 unless a written petition requesting an election has been filed
11-20 with the board. The petition must be signed by:
11-21 (1) the owners of a majority of the assessed value of
11-22 real property in the district as determined by the most recent
11-23 certified county property tax rolls; or
11-24 (2) at least 50 persons who own land in the district,
11-25 if there are more than 50 persons who own property in the district
11-26 as determined by the most recent certified county property tax
11-27 rolls.
12-1 Sec. 376.333. IMPACT FEES. The district may impose an
12-2 impact fee for an authorized purpose as provided by Subchapter G,
12-3 Chapter 375.
12-4 Sec. 376.334. MAINTENANCE TAX. (a) If authorized at an
12-5 election held in accordance with Section 376.332, the district may
12-6 impose and collect an annual ad valorem tax on taxable property in
12-7 the district for the maintenance and operation of the district and
12-8 the improvements constructed or acquired by the district or for the
12-9 provision of services to industrial or commercial businesses,
12-10 residents, or property owners.
12-11 (b) The board shall determine the tax rate.
12-12 Sec. 376.335. DISSOLUTION OF DISTRICT. (a) The district
12-13 may be dissolved as provided by Subchapter M, Chapter 375.
12-14 (b) Regardless of Section 375.264, a district that has debt
12-15 may be dissolved as provided by Subchapter M, Chapter 375. If the
12-16 district has debt and is dissolved, the district shall remain in
12-17 existence solely for the limited purpose of discharging its bonds
12-18 or other obligations according to their terms.
12-19 Sec. 376.336. CONTRACTS. (a) To protect the public
12-20 interest, the district may contract with the municipality or county
12-21 for the provision of law enforcement services by the county or
12-22 municipality in the district on a fee basis.
12-23 (b) The municipality, county, or another political
12-24 subdivision of the state, without further authorization, may
12-25 contract with the district to implement a project of the district
12-26 or assist the district in providing the services authorized under
12-27 this subchapter. A contract under this subsection may:
13-1 (1) be for a period on which the parties agree;
13-2 (2) include terms on which the parties agree;
13-3 (3) be payable from taxes or any other sources of
13-4 revenue that may be available for such purpose; or
13-5 (4) provide that taxes or other revenue collected at a
13-6 district project or from a person using or purchasing a commodity
13-7 or service at a district project may be paid or rebated to the
13-8 district under the terms of the contract.
13-9 (c) The district may enter into a contract, lease, or other
13-10 agreement with or make or accept grants and loans to or from:
13-11 (1) the United States;
13-12 (2) the state or a state agency;
13-13 (3) any county, any municipality, or another political
13-14 subdivision of the state;
13-15 (4) a public or private corporation, including a
13-16 nonprofit corporation created by the board under this subchapter;
13-17 or
13-18 (5) any other person.
13-19 (d) The district may perform all acts necessary for the full
13-20 exercise of the powers vested in the district on terms and for the
13-21 period the board determines advisable.
13-22 Sec. 376.337. COMPETITIVE BIDDING. The district may enter a
13-23 contract for more than $10,000 for services, improvements, or the
13-24 purchase of property, including materials, machinery, equipment, or
13-25 supplies, only as provided by Subchapter K, Chapter 375.
13-26 Sec. 376.338. REINVESTMENT ZONES. All or any part of the
13-27 area of the district is eligible to be included in a tax
14-1 incremental reinvestment zone created by the municipality under
14-2 Chapter 311, Tax Code, or included in a tax abatement reinvestment
14-3 zone created by the municipality under Chapter 312, Tax Code.
14-4 Sec. 376.339. RECREATIONAL, PARK, OR SCENIC USE PROPERTY.
14-5 (a) Property is exempt from district assessments if the property:
14-6 (1) comprises one or more acres, separated only by
14-7 streets or public rights-of-way;
14-8 (2) was used primarily for recreational, park, or
14-9 scenic use during the immediately preceding calendar year; and
14-10 (3) is property on which money has been spent for
14-11 landscaping at any time in an amount that is equal to the lesser
14-12 of:
14-13 (A) five years of proposed district assessments
14-14 on the property; or
14-15 (B) the proposed amount of the district's
14-16 assessments on the property pursuant to a plan of assessment
14-17 adopted by the board.
14-18 (b) The district may assess property described by Subsection
14-19 (a) with the owner's consent.
14-20 (c) Property is exempt from assessment by the district under
14-21 this section during the period that the property is used primarily
14-22 for recreational, park, or scenic use in accordance with this
14-23 section.
14-24 (d) The fact that property is exempt from assessment by the
14-25 district may not be construed to be an express or implied
14-26 dedication of the property to the public for recreational, park,
14-27 scenic, or other public use or constitute evidence of an intent by
15-1 the owner of the property to make or offer to make that type of
15-2 dedication and does not affect the status of the property as
15-3 private property.
15-4 (e) If the district levies ad valorem taxes, property that
15-5 qualifies for an exemption from assessment under this section must
15-6 be taxed by the district at its appraised value for recreational,
15-7 park, or scenic use determined in accordance with Subchapter F,
15-8 Chapter 23, Tax Code.
15-9 SECTION 2. This Act takes effect September 1, 1999.
15-10 SECTION 3. The importance of this legislation and the
15-11 crowded condition of the calendars in both houses create an
15-12 emergency and an imperative public necessity that the
15-13 constitutional rule requiring bills to be read on three several
15-14 days in each house be suspended, and this rule is hereby suspended.