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.