By Bailey                                             H.B. No. 2891
         76R4437 CMR-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Aldine Community Improvement
 1-3     District; authorizing the issuance of bonds and the imposition of
 1-4     taxes.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Chapter 376, Local Government Code, is amended by
 1-7     adding Subchapter G to read as follows:
 1-8            SUBCHAPTER G.  ALDINE COMMUNITY IMPROVEMENT DISTRICT
 1-9           Sec. 376.261.  CREATION OF A DISTRICT.  (a)  A special
1-10     district to be known as the "Aldine Community Improvement 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. 376.262.  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 Aldine Community area of Harris County.
1-24           (b)  The creation of the district and this legislation are
 2-1     not to be interpreted to relieve the county from providing the
 2-2     level of services, as of September 1, 1999, to the area in the
 2-3     district or to release the county from the obligations the entity
 2-4     has to provide services to that area.  The district is created to
 2-5     supplement and not supplant the county services provided in the
 2-6     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. 376.263.  DEFINITIONS.  In this subchapter:
2-13                 (1)  "Board" means the board of directors of the
2-14     district.
2-15                 (2)  "County" means Harris County, Texas.
2-16                 (3)  "District" means the Aldine Community Improvement
2-17     District.
2-18                 (4)  "Municipality" means the City of Houston, Texas.
2-19           Sec. 376.264.  BOUNDARIES.  The district includes all the
2-20     territory contained in the following described area:
2-21     Being 14.79 square miles, more or less,
2-22     Beginning at the northeast corner of Aldine Mail Road and the Hardy
2-23     Toll Road
2-24     Thence north along the east right-of-way line of Hardy Toll Road a
2-25     distance of approximately two (2) miles to the north right-of-way
2-26     line of State Highway 525
2-27     Thence along the north right-of-way line of State Highway 525
 3-1     approximately 2.75 miles to the west right-of-way line of John F.
 3-2     Kennedy Boulevard
 3-3     Thence south along the west right-of-way line of John F. Kennedy
 3-4     Boulevard a distance of approximately one (1) mile to the City of
 3-5     Houston City limits
 3-6     Thence east a distance of approximately one-quarter mile (1/4) mile
 3-7     to the east right-of-way line of Heathrow Forest Parkway
 3-8     Thence north along the east right-of-way line of Heathrow Forest
 3-9     Parkway a distance of approximately one-quarter mile (1/4) mile to
3-10     the City of Houston City limits
3-11     Thence east along the south side of the City of Houston City limits
3-12     a distance of approximately one-half (1/2) mile
3-13     Thence south a distance of approximately one-quarter mile (1/4)
3-14     mile
3-15     Thence east a distance of approximately one-eighth (1/8) mile to
3-16     the east right-of-way line of Sequoia Bend Boulevard
3-17     Thence north along the east right-of-way line of Sequoia Bend
3-18     Boulevard a distance of approximately one-half (1/2) mile to the
3-19     north right-of-way line of State Highway 525
3-20     Thence east along the north right-of-way line of State Highway 525
3-21     a distance of approximately three-quarters (3/4) of one mile to the
3-22     east right-of-way line of Lee Road
3-23     Thence south along the east right-of-way line of Lee Road becoming
3-24     Homestead Road a distance of approximately two and one-half miles
3-25     to the north right-of-way line of Mount Houston Road
3-26     Thence west along the north right-of-way line of Mount Houston Road
3-27     a distance of approximately one-quarter mile to the west line of
 4-1     the Southern Pacific Railroad property
 4-2     Thence southwest along the Southern Pacific Railroad property a
 4-3     distance of approximately one and three-quarters mile to the north
 4-4     right-of-way line of Langley Road
 4-5     Thence west along the north right-of-way line of Langley Road a
 4-6     distance of approximately one mile to the east right-of-way line of
 4-7     U.S. Highway 59
 4-8     Thence northeast along the east right-of-way line of U.S. Highway
 4-9     59 a distance of approximately one-quarter mile to the north
4-10     right-of-way line of Little York Road
4-11     Thence west along the north right-of-way line of Little York Road a
4-12     distance of approximately one-quarter mile to the east right-of-way
4-13     line of Bentley Road
4-14     Thence north along the east right-of-way line of Bentley Road a
4-15     distance of approximately one-quarter mile to the north
4-16     right-of-way line of Sagebrush Road
4-17     Thence west along the north right-of-way line of Sagebrush Road a
4-18     distance of approximately one-third (1/3) mile to the west line of
4-19     Halls Bayou
4-20     Thence south along the west line of Halls Bayou a distance of
4-21     approximately one-quarter mile to the north right-of-way line of
4-22     Little York Road
4-23     Thence west along the north right-of-way line of Little York Road a
4-24     distance of approximately one-half mile to the City of Houston City
4-25     limits line adjacent to and east of Aldine Westfield Road
4-26     Thence north along the City of Houston City limits line adjacent to
4-27     and east of Aldine Westfield Road a distance of approximately
 5-1     one-eighth mile along the east line of the City of Houston City
 5-2     limits line
 5-3     Thence west along the north line of the City of Houston City limits
 5-4     line a distance of approximately three-quarter mile to the east
 5-5     right-of-way line of Hardy Toll Road
 5-6     Thence north along the east right-of-way line of Hardy Toll Road a
 5-7     distance of approximately two miles to the north right-of-way line
 5-8     of Aldine Mail Road and the Point of Beginning
 5-9                   Save and Except the Following Parcels:
5-10     Parcel Number One:  City of Houston Keith-Weiss Park
5-11     Parcel Number Two:  That portion of City of Houston Melrose Park
5-12                         east of the right-of-way line of Hardy Toll
5-13                         Road
5-14     SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
5-15     facilities, and improvements owned by an electric utility as
5-16     defined by Section 32.002, Utilities Code.
5-17           Sec. 376.265.  FINDINGS RELATING TO BOUNDARIES. The
5-18     boundaries and field notes of the district form a closure. If a
5-19     mistake is made in the field notes or in copying the field notes in
5-20     the legislative process, the mistake does not in any way affect
5-21     the:
5-22                 (1)  organization, existence, and validity of the
5-23     district;
5-24                 (2)  right of the district to issue any types of bonds
5-25     or refunding bonds for the purposes for which the district is
5-26     created or to pay the principal of and interest on the bonds;
5-27                 (3)  right of the district to impose and collect
 6-1     assessments or taxes; or
 6-2                 (4)  legality or operation of the district or its
 6-3     governing body.
 6-4           Sec. 376.266.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
 6-5     All the land and other property included in the district will be
 6-6     benefited by the improvements and services to be provided by the
 6-7     district under powers conferred by Section 52, Article III, Section
 6-8     59, Article XVI, and Section 52-a, Article III, Texas Constitution,
 6-9     and other powers granted under this subchapter, and the district is
6-10     created to serve a public use and benefit.
6-11           (b)  The creation of the district is in the public interest
6-12     and is essential to:
6-13                 (1)  further the public purposes of the development and
6-14     diversification of the economy of the state; and
6-15                 (2)  eliminate unemployment and underemployment and
6-16     develop or expand transportation and commerce.
6-17           (c)  The district will:
6-18                 (1)  promote the health, safety, and general welfare of
6-19     residents, employers, potential employees, employees, visitors,
6-20     consumers in the district, and the general public;
6-21                 (2)  provide needed funding for the Aldine Community
6-22     area to preserve, maintain, and enhance the economic health and
6-23     vitality of the area as a community and business center; and
6-24                 (3)  further promote the health, safety, welfare, and
6-25     enjoyment of the public by providing pedestrian ways and by
6-26     landscaping and developing certain areas in the district, which are
6-27     necessary for the restoration, preservation, and enhancement of
 7-1     scenic beauty.
 7-2           (d)  Pedestrian ways along or across a street, whether at
 7-3     grade or above or below the surface, and street lighting, street
 7-4     landscaping, and street art objects are parts of and necessary
 7-5     components of a street and are considered to be a street or road
 7-6     improvement.
 7-7           (e)  The district will not act as the agent or
 7-8     instrumentality of any private interest even though many private
 7-9     interests will be benefited by the district, as will the general
7-10     public.
7-11           Sec. 376.267.  APPLICATION OF OTHER LAW.  Except as otherwise
7-12     provided by this subchapter, Chapter 375 applies to the district.
7-13           Sec. 376.268.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
7-14     shall be liberally construed in conformity with the findings and
7-15     purposes stated in this subchapter.
7-16           Sec. 376.269.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
7-17     district is governed by a board of nine directors who serve
7-18     staggered terms of four years with four or five members' terms
7-19     expiring June 1 of each odd-numbered year.  At least one director
7-20     must be a resident of the district. The board by resolution may
7-21     increase or decrease the number of directors on the board if the
7-22     board finds that the change is in the best interest of the
7-23     district. The board must consist of not fewer than nine and not
7-24     more than 30 directors.
7-25           (b)  Subchapter D, Chapter 375, applies to the board to the
7-26     extent that subchapter does not conflict with this subchapter.
7-27           (c)  Notwithstanding Section 375.071, the imposition of a
 8-1     tax, assessment, or impact fee requires a vote of a majority of the
 8-2     directors serving.
 8-3           Sec. 376.270.  APPOINTMENT OF DIRECTORS; VACANCY.  The county
 8-4     judge and members of the governing body of the county shall appoint
 8-5     directors from persons recommended by the board who meet the
 8-6     qualifications of Subchapter D, Chapter 375.  A vacancy in the
 8-7     office of director because of the death, resignation, or removal of
 8-8     a director shall be filled by the remaining members of the board by
 8-9     appointing a qualified person for the unexpired term.
8-10           Sec. 376.271.  POWERS OF DISTRICT.  The district has:
8-11                 (1)  all powers necessary or required to accomplish the
8-12     purposes for which the district was created;
8-13                 (2)  the rights, powers, privileges, authority, and
8-14     functions of a district created under Chapter 375;
8-15                 (3)  the powers given to a corporation under Section
8-16     4B, the Development Corporation Act of 1979 (Article 5190.6,
8-17     Vernon's Texas Civil Statutes), and the power to own, operate,
8-18     acquire, construct, lease, improve, and maintain projects;
8-19                 (4)  the power to impose ad valorem taxes, assessments,
8-20     or impact fees in accordance with Chapter 375 to provide
8-21     improvements and services for a project or activity the district is
8-22     authorized to acquire, construct, improve, or provide under this
8-23     subchapter; and
8-24                 (5)  the power to correct, add to, or delete
8-25     assessments from its assessment rolls after notice and hearing as
8-26     provided by Subchapter F, Chapter 375.
8-27           Sec. 376.272.  SALES AND USE TAX.  (a)  The district may
 9-1     impose a sales and use tax if authorized by a majority of the
 9-2     qualified voters of the district voting at an election called for
 9-3     that purpose. Revenue from the tax may be used for any purpose for
 9-4     which ad valorem tax revenue of the district may be used.
 9-5           (b)  The district may not adopt a tax under this subchapter
 9-6     if as a result of the adoption of the tax the combined rate of all
 9-7     sales and use taxes imposed by the county and other political
 9-8     subdivisions of this state having territory in the county would
 9-9     exceed two percent at any location in the district.
9-10           (c)  If the voters of the county approve the adoption of the
9-11     tax at an election held on the same election date on which another
9-12     political subdivision adopts a sales and use tax or approves the
9-13     increase in the rate of its sales and use tax and as a result the
9-14     combined rate of all sales and use taxes imposed by the district
9-15     and other political subdivisions of this state having territory in
9-16     the district would exceed two percent at any location in the
9-17     county, the election to adopt a sales and use tax under this
9-18     subchapter has no effect.
9-19           Sec. 376.273.  EMINENT DOMAIN.  The district may not exercise
9-20     the power of eminent domain.
9-21           Sec. 376.274.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
9-22     AFFECTING PROPERTY.  (a)  If the district, in exercising a power
9-23     conferred by this subchapter, requires a relocation, adjustment,
9-24     raising, lowering, rerouting, or changing the grade or the
9-25     construction of any of the following items, the district must take
9-26     that required action at the sole expense of the district:
9-27                 (1)  a street, alley, highway, overpass, underpass,
 10-1    road, railroad track, bridge, facility, or other property;
 10-2                (2)  an electric line, conduit, facility, or other
 10-3    property;
 10-4                (3)  a telephone or telegraph line, conduit, facility,
 10-5    or other property;
 10-6                (4)  a gas transmission or distribution pipe, pipeline,
 10-7    main, facility, or other property;
 10-8                (5)  a water, sanitary sewer, or storm sewer pipe,
 10-9    pipeline, main, facility, or other property;
10-10                (6)  a cable television line, cable, conduit, facility,
10-11    or other property; or
10-12                (7)  another pipeline, facility, or other property
10-13    relating to the pipeline.
10-14          (b)  The district shall bear damages that are suffered by
10-15    owners of the facility or other property.
10-16          Sec. 376.275.  RELATION TO OTHER LAW.  If any provision of a
10-17    law referenced in Section 376.271 is in conflict with or is
10-18    inconsistent with this subchapter, this subchapter prevails.  Any
10-19    law referenced in this subchapter that is not in conflict or
10-20    inconsistent with this subchapter is adopted and incorporated by
10-21    reference.
10-22          Sec. 376.276.  REQUIREMENTS FOR FINANCING SERVICES AND
10-23    IMPROVEMENTS.  The board may not finance services and improvement
10-24    projects under this subchapter unless a written petition requesting
10-25    those improvements or services has been filed with the board.  The
10-26    petition must be signed by:
10-27                (1)  the owners of a majority of the assessed value of
 11-1    real property in the district as determined by the most recent
 11-2    certified county property tax rolls; or
 11-3                (2)  at least 50 persons who own land in the district,
 11-4    if there are more than 50 persons who own property in the district
 11-5    as determined by the most recent certified county property tax
 11-6    rolls.
 11-7          Sec. 376.277.  NONPROFIT CORPORATION.  (a)  The board by
 11-8    resolution may authorize the creation of a nonprofit corporation to
 11-9    assist and act on behalf of the district in implementing a project
11-10    or providing a service this subchapter authorizes.
11-11          (b)  A nonprofit corporation created under this section:
11-12                (1)  has the powers of and is considered for purposes
11-13    of this subchapter to be a local government corporation created
11-14    under Chapter 431, Transportation Code; and
11-15                (2)  may implement any project or provide any services
11-16    this subchapter authorizes.
11-17          (c)  The board shall appoint the board of directors of a
11-18    nonprofit corporation created under this section.  The board of
11-19    directors of the nonprofit corporation shall serve in the same
11-20    manner as, for the same term as, and on the conditions of the board
11-21    of directors of a local government corporation created under
11-22    Chapter 431, Transportation Code.
11-23          Sec. 376.278.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
11-24    board by resolution shall establish the number of directors'
11-25    signatures and the procedure required for a disbursement or
11-26    transfer of the district's money.
11-27          Sec. 376.279.  BONDS.  (a)  The district may issue bonds or
 12-1    other obligations payable in whole or in part from ad valorem
 12-2    taxes, assessments, impact fees, revenues, grants, or other money
 12-3    of the district, or any combination of those sources of money, to
 12-4    pay for any authorized purpose of the district.
 12-5          (b)  Bonds or other obligations of the district may be issued
 12-6    in the form of bonds, notes, certificates of participation,
 12-7    including other instruments evidencing a proportionate interest in
 12-8    payments to be made by the district, or other obligations that are
 12-9    issued in the exercise of the district's borrowing power and may be
12-10    issued in bearer or registered form or not represented by an
12-11    instrument but the transfer of which is registered on books
12-12    maintained by or on behalf of the district.
12-13          (c)  Except as provided by Subsection (d), the district must
12-14    obtain the municipality's approval of:
12-15                (1)  the issuance of bonds for an improvement project;
12-16                (2)  the plans and specifications of the improvement
12-17    project to be financed by the bonds; and
12-18                (3)  the plans and specifications of a district
12-19    improvement project related to:
12-20                      (A)  the use of land owned by the county;
12-21                      (B)  an easement granted by the county; or
12-22                      (C)  a right-of-way of a street, road, or
12-23    highway.
12-24          (d)  If the district obtains the municipality's approval of a
12-25    capital improvements budget for a specified period not to exceed
12-26    five years, the district may finance the capital improvements and
12-27    issue bonds specified in the budget without further municipal
 13-1    approval.
 13-2          (e)  Before the district issues bonds, the district shall
 13-3    submit the bonds and the record of proceedings of the district
 13-4    relating to authorization of the bonds to the attorney general for
 13-5    approval as provided by Chapter 53, Acts of the 70th Legislature,
 13-6    2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil
 13-7    Statutes).
 13-8          Sec. 376.280.  ASSESSMENTS.  (a)  The board may impose and
 13-9    collect an assessment for any purpose authorized by this
13-10    subchapter.
13-11          (b)  Assessments, reassessments, or assessments resulting
13-12    from an addition to or correction of the assessment roll by the
13-13    district, penalties and interest on an assessment or reassessment,
13-14    expenses of collection, and reasonable attorney's fees incurred by
13-15    the district:
13-16                (1)  are a first and prior lien against the property
13-17    assessed;
13-18                (2)  are superior to any other lien or claim other than
13-19    a lien or claim for county, school district, or municipal ad
13-20    valorem taxes; and
13-21                (3)  are the personal liability of and charge against
13-22    the owners of the property even if the owners are not named in the
13-23    assessment proceedings.
13-24          (c)  The lien is effective from the date of the resolution of
13-25    the board levying the assessment until the assessment is paid.  The
13-26    board may enforce the lien in the same manner that the board may
13-27    enforce an ad valorem tax lien against real property.
 14-1          Sec. 376.281.  PROPERTY EXEMPTED FROM TAX, FEE, OR
 14-2    ASSESSMENT.  (a)  The district may not impose an impact fee or
 14-3    assessment under Chapter 375 on a residential property, multi-unit
 14-4    residential property, or condominium.
 14-5          (b)  The district may not impose an impact fee or assessment
 14-6    on the property, equipment, or facilities of an electric utility as
 14-7    defined by Section 31.002, Utilities Code.
 14-8          Sec. 376.282.  ELECTIONS.  (a)  In addition to the elections
 14-9    the district must hold under Subchapter L, Chapter 375, the
14-10    district shall hold an election in the manner provided by that
14-11    subchapter to obtain voter approval before the district imposes a
14-12    maintenance tax or issues bonds payable from ad valorem taxes or
14-13    assessments.
14-14          (b)  The board may submit multiple purposes in a single
14-15    proposition at an election.
14-16          Sec. 376.283.  IMPACT FEES. The district may impose an impact
14-17    fee for an authorized purpose as provided by Subchapter G, Chapter
14-18    375.
14-19          Sec. 376.284.  MAINTENANCE TAX.  (a)  If authorized at an
14-20    election held in accordance with Section 376.282, the district may
14-21    impose and collect an annual ad valorem tax on taxable property in
14-22    the district for the maintenance and operation of the district and
14-23    the improvements constructed or acquired by the district or for the
14-24    provision of services.
14-25          (b)  The board shall determine the tax rate.
14-26          Sec. 376.285.  DISSOLUTION OF DISTRICT.  (a)  The district
14-27    may be dissolved as  provided in Subchapter M, Chapter 375.
 15-1          (b)  Notwithstanding Section 375.264, the district may be
 15-2    dissolved if the district has debt. If the district has debt and is
 15-3    dissolved, the district shall remain in existence solely for the
 15-4    limited purpose of discharging its bonds or other obligations
 15-5    according to their terms.
 15-6          Sec. 376.286.  CONTRACTS.  (a)  To protect the public
 15-7    interest, the district may contract with the municipality or county
 15-8    for the provision of law enforcement services by the county or
 15-9    municipality in the district on a fee basis.
15-10          (b)  The municipality, county, or another political
15-11    subdivision of the state, without further authorization, may
15-12    contract with the district to implement a project of the district
15-13    or assist the district in providing the services authorized under
15-14    this subchapter.  A contract under this subsection may:
15-15                (1)  be for a period on which the parties agree;
15-16                (2)  include terms on which the parties agree;
15-17                (3)  be payable from taxes or any other sources of
15-18    revenue that may be available for such purpose; or
15-19                (4)  provide that taxes or other revenue collected at a
15-20    district project or from a person using or purchasing a commodity
15-21    or service at a district project may be paid or rebated to the
15-22    district under the terms of the contract.
15-23          (c)  The district may enter into a contract, lease, or other
15-24    agreement with or make or accept grants and loans to or from:
15-25                (1)  the United States;
15-26                (2)  the state or a state agency;
15-27                (3)  any county, any municipality, or another political
 16-1    subdivision of the state;
 16-2                (4)  a public or private corporation, including a
 16-3    nonprofit corporation created by the board under this subchapter;
 16-4    or
 16-5                (5)  any other person.
 16-6          (d)  The district may perform all acts necessary for the full
 16-7    exercise of the powers vested in the district on terms and for the
 16-8    period the board determines advisable.
 16-9          Sec. 376.287.  INITIAL DIRECTORS.  (a)  The initial board
16-10    consists of the following persons:
16-11                Pos. No.              Name of Director
16-12                1                     Clyde Baily
16-13                2                     Sylvia Bolling
16-14                3                     Reyes Garcia
16-15                4                     Leland Jauer
16-16                5                     V. E. (Vic) Mauldin
16-17                6                     W. Steve Mead
16-18                7                     Art Murillo
16-19                8                     Ray Shotwell
16-20                9                     Richard Villanueva
16-21          (b)  Of the initial directors, the directors appointed for
16-22    positions 1 through 4 serve until June 1, 2001, and the directors
16-23    appointed for positions 5 through 9 serve until June 1, 2003.
16-24          (c)  This section expires September 1, 2004.
16-25          SECTION 2.  The legislature finds that:
16-26                (1)  proper and legal notice of the intention to
16-27    introduce this Act, setting forth the general substance of this
 17-1    Act, has been published as provided by law, and the notice and a
 17-2    copy of this Act have been furnished to all persons, agencies,
 17-3    officials, or entities to which they are required to be furnished
 17-4    by the constitution and laws of this state,  including the
 17-5    governor, who has submitted the notice and Act to the Texas Natural
 17-6    Resource Conservation Commission;
 17-7                (2)  the Texas Natural Resource Conservation Commission
 17-8    has filed its recommendations relating to this Act with the
 17-9    governor, lieutenant governor, and speaker of the house of
17-10    representatives within the required time;
17-11                (3)  the general law relating to consent by political
17-12    subdivisions to the creation of districts with conservation,
17-13    reclamation, and road powers and the inclusion of land in those
17-14    districts has been complied with; and
17-15                (4)  all requirements of the constitution and laws of
17-16    this state and the rules and procedures of the legislature with
17-17    respect to the notice, introduction, and passage of this Act have
17-18    been fulfilled and accomplished.
17-19          SECTION 3.  The importance of this legislation and the
17-20    crowded condition of the calendars in both houses create an
17-21    emergency and an imperative public necessity that the
17-22    constitutional rule requiring bills to be read on three several
17-23    days in each house be suspended, and this rule is hereby suspended,
17-24    and that this Act take effect and be in force from and after its
17-25    passage, and it is so enacted.