1-1 By: Bailey (Senate Sponsor - Gallegos) H.B. No. 2891 1-2 (In the Senate - Received from the House May 3, 1999; 1-3 May 3, 1999, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 14, 1999, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 5, Nays 1-6 0; May 14, 1999, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2891 By: Ellis 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation of the Aldine Community Improvement 1-11 District; authorizing the issuance of bonds and the imposition of 1-12 taxes. 1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Chapter 376, Local Government Code, is amended by 1-15 adding Subchapter G to read as follows: 1-16 SUBCHAPTER G. ALDINE COMMUNITY IMPROVEMENT DISTRICT 1-17 Sec. 376.261. CREATION OF DISTRICT. (a) A special district 1-18 to be known as the "Aldine Community Improvement District" exists 1-19 as a governmental agency, body politic and corporate, and political 1-20 subdivision of the state. 1-21 (b) The name of the district may be changed by resolution of 1-22 the board. 1-23 (c) The creation of the district is essential to accomplish 1-24 the purposes of Section 52, Article III, Section 59, Article XVI, 1-25 and Section 52-a, Article III, Texas Constitution, and other public 1-26 purposes stated in this subchapter. 1-27 Sec. 376.262. DECLARATION OF INTENT. (a) The creation of 1-28 the district is necessary to promote, develop, encourage, and 1-29 maintain employment, commerce, transportation, housing, tourism, 1-30 recreation, arts, entertainment, economic development, safety, and 1-31 the public welfare in the Aldine Community area of Harris County. 1-32 (b) The creation of the district and this legislation are 1-33 not to be interpreted to relieve the county from providing the 1-34 level of services, as of September 1, 1999, to the area in the 1-35 district or to release the county from the obligations the entity 1-36 has to provide services to that area. The district is created to 1-37 supplement and not supplant the county services provided in the 1-38 area in the district. 1-39 (c) By creating the district and in authorizing the 1-40 municipality, county, and other political subdivisions to contract 1-41 with the district, the legislature has established a program to 1-42 accomplish the public purposes set out in Section 52-a, Article 1-43 III, Texas Constitution. 1-44 Sec. 376.263. DEFINITIONS. In this subchapter: 1-45 (1) "Board" means the board of directors of the 1-46 district. 1-47 (2) "County" means Harris County. 1-48 (3) "District" means the Aldine Community Improvement 1-49 District. 1-50 (4) "Municipality" means the City of Houston. 1-51 Sec. 376.264. BOUNDARIES. The district includes all the 1-52 territory contained in the following described area: 1-53 Being 14.79 square miles, more or less, 1-54 Beginning at the northeast corner of Aldine Mail Road and the Hardy 1-55 Toll Road 1-56 Thence north along the east right-of-way line of Hardy Toll Road a 1-57 distance of approximately two (2) miles to the north right-of-way 1-58 line of State Highway 525 1-59 Thence along the north right-of-way line of State Highway 525 1-60 approximately 2.75 miles to the west right-of-way line of John F. 1-61 Kennedy Boulevard 1-62 Thence south along the west right-of-way line of John F. Kennedy 1-63 Boulevard a distance of approximately one (1) mile to the City of 1-64 Houston City limits 2-1 Thence east a distance of approximately one-quarter mile (1/4) mile 2-2 to the east right-of-way line of Heathrow Forest Parkway 2-3 Thence north along the east right-of-way line of Heathrow Forest 2-4 Parkway a distance of approximately one-quarter mile (1/4) mile to 2-5 the City of Houston City limits 2-6 Thence east along the south side of the City of Houston City limits 2-7 a distance of approximately one-half (1/2) mile 2-8 Thence south a distance of approximately one-quarter mile (1/4) 2-9 mile 2-10 Thence east a distance of approximately one-eighth (1/8) mile to 2-11 the east right-of-way line of Sequoia Bend Boulevard 2-12 Thence north along the east right-of-way line of Sequoia Bend 2-13 Boulevard a distance of approximately one-half (1/2) mile to the 2-14 north right-of-way line of State Highway 525 2-15 Thence east along the north right-of-way line of State Highway 525 2-16 a distance of approximately three-quarters (3/4) of one mile to the 2-17 east right-of-way line of Lee Road 2-18 Thence south along the east right-of-way line of Lee Road becoming 2-19 Homestead Road a distance of approximately two and one-half miles 2-20 to the north right-of-way line of Mount Houston Road 2-21 Thence west along the north right-of-way line of Mount Houston Road 2-22 a distance of approximately one-quarter mile to the west line of 2-23 the Southern Pacific Railroad property 2-24 Thence southwest along the Southern Pacific Railroad property a 2-25 distance of approximately one and three-quarters mile to the north 2-26 right-of-way line of Langley Road 2-27 Thence west along the north right-of-way line of Langley Road a 2-28 distance of approximately one mile to the east right-of-way line of 2-29 U.S. Highway 59 2-30 Thence northeast along the east right-of-way line of U.S. Highway 2-31 59 a distance of approximately one-quarter mile to the north 2-32 right-of-way line of Little York Road 2-33 Thence west along the north right-of-way line of Little York Road a 2-34 distance of approximately one-quarter mile to the east right-of-way 2-35 line of Bentley Road 2-36 Thence north along the east right-of-way line of Bentley Road a 2-37 distance of approximately one-quarter mile to the north 2-38 right-of-way line of Sagebrush Road 2-39 Thence west along the north right-of-way line of Sagebrush Road a 2-40 distance of approximately one-third (1/3) mile to the west line of 2-41 Halls Bayou 2-42 Thence south along the west line of Halls Bayou a distance of 2-43 approximately one-quarter mile to the north right-of-way line of 2-44 Little York Road 2-45 Thence west along the north right-of way line of Little York Road a 2-46 distance of approximately one-half mile to the City of Houston City 2-47 limits line adjacent to and east of Aldine Westfield Road 2-48 Thence north along the City of Houston City limits line adjacent to 2-49 and east of Aldine Westfield Road a distance of approximately 2-50 one-eighth mile along the east line of the City of Houston City 2-51 limits line 2-52 Thence west along the north line of the City of Houston City limits 2-53 line a distance of approximately three-quarter mile to the east 2-54 right-of-way line of Hardy Toll Road 2-55 Thence north along the east right-of-way line of Hardy Toll Road a 2-56 distance of approximately two miles to the north right-of-way line 2-57 of Aldine Mail Road and the Point of Beginning 2-58 Save and Except the Following Parcels: 2-59 Parcel Number One: City of Houston Keith-Weiss Park 2-60 Parcel Number Two: That portion of City of Houston Melrose Park 2-61 east of the right-of-way line of Hardy Toll 2-62 Road 2-63 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, 2-64 facilities, and improvements owned by an electric utility as 2-65 defined by Section 31.002, Utilities Code or gas utility as defined 2-66 by Section 101.003 or 121.001, Utilities Code. 2-67 Sec. 376.265. FINDINGS RELATING TO BOUNDARIES. The 2-68 boundaries and field notes of the district form a closure. If a 2-69 mistake is made in the field notes or in copying the field notes in 3-1 the legislative process, the mistake does not in any way affect 3-2 the: 3-3 (1) organization, existence, and validity of the 3-4 district; 3-5 (2) right of the district to issue any types of bonds 3-6 or refunding bonds for the purposes for which the district is 3-7 created or to pay the principal of and interest on the bonds; 3-8 (3) right of the district to impose and collect 3-9 assessments or taxes; or 3-10 (4) legality or operation of the district or its 3-11 governing body. 3-12 Sec. 376.266. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. 3-13 (a) All the land and other property included in the district will 3-14 be benefited by the improvements and services to be provided by the 3-15 district under powers conferred by Section 52, Article III, Section 3-16 59, Article XVI, and Section 52-a, Article III, Texas Constitution, 3-17 and other powers granted under this subchapter, and the district is 3-18 created to serve a public use and benefit. 3-19 (b) The creation of the district is in the public interest 3-20 and is essential to: 3-21 (1) further the public purposes of the development and 3-22 diversification of the economy of the state; and 3-23 (2) eliminate unemployment and underemployment and 3-24 develop or expand transportation and commerce. 3-25 (c) The district will: 3-26 (1) promote the health, safety, and general welfare of 3-27 residents, employers, potential employees, employees, visitors, 3-28 consumers in the district, and the general public; 3-29 (2) provide needed funding for the Aldine Community 3-30 area to preserve, maintain, and enhance the economic health and 3-31 vitality of the area as a community and business center; and 3-32 (3) further promote the health, safety, welfare, and 3-33 enjoyment of the public by providing pedestrian ways and by 3-34 landscaping and developing certain areas in the district, which are 3-35 necessary for the restoration, preservation, and enhancement of 3-36 scenic beauty. 3-37 (d) Pedestrian ways along or across a street, whether at 3-38 grade or above or below the surface, and street lighting, street 3-39 landscaping, and street art objects are parts of and necessary 3-40 components of a street and are considered to be a street or road 3-41 improvement. 3-42 (e) The district will not act as the agent or 3-43 instrumentality of any private interest even though many private 3-44 interests will be benefited by the district, as will the general 3-45 public. 3-46 Sec. 376.267. APPLICATION OF OTHER LAW. Except as otherwise 3-47 provided by this subchapter, Chapter 375 applies to the district. 3-48 Sec. 376.268. CONSTRUCTION OF SUBCHAPTER. This subchapter 3-49 shall be liberally construed in conformity with the findings and 3-50 purposes stated in this subchapter. 3-51 Sec. 376.269. BOARD OF DIRECTORS IN GENERAL. (a) The 3-52 district is governed by a board of nine directors who serve 3-53 staggered terms of four years with four or five members' terms 3-54 expiring June 1 of each odd-numbered year. At least one director 3-55 must be a resident of the district. The board by resolution may 3-56 increase or decrease the number of directors on the board if the 3-57 board finds that the change is in the best interest of the 3-58 district. The board must consist of not fewer than nine and not 3-59 more than 30 directors. 3-60 (b) Subchapter D, Chapter 375, applies to the board to the 3-61 extent that subchapter does not conflict with this subchapter. 3-62 (c) Notwithstanding Section 375.071, the imposition of a 3-63 tax, assessment, or impact fee requires a vote of a majority of the 3-64 directors serving. 3-65 Sec. 376.270. APPOINTMENT OF DIRECTORS; VACANCY. The county 3-66 judge and members of the governing body of the county shall appoint 3-67 directors from persons recommended by the board who meet the 3-68 qualifications of Subchapter D, Chapter 375. A vacancy in the 3-69 office of director because of the death, resignation, or removal of 4-1 a director shall be filled by the remaining members of the board by 4-2 appointing a qualified person for the unexpired term. 4-3 Sec. 376.271. POWERS OF DISTRICT. The district has: 4-4 (1) all powers necessary or required to accomplish the 4-5 purposes for which the district was created; 4-6 (2) the rights, powers, privileges, authority, and 4-7 functions of a district created under Chapter 375; 4-8 (3) the powers given to a corporation under Section 4-9 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's 4-10 Texas Civil Statutes), and the power to own, operate, acquire, 4-11 construct, lease, improve, and maintain projects; 4-12 (4) the power to impose ad valorem taxes, assessments, 4-13 or impact fees in accordance with Chapter 375 to provide 4-14 improvements and services for a project or activity the district is 4-15 authorized to acquire, construct, improve, or provide under this 4-16 subchapter; and 4-17 (5) the power to correct, add to, or delete 4-18 assessments from its assessment rolls after notice and hearing as 4-19 provided by Subchapter F, Chapter 375. 4-20 Sec. 376.272. SALES AND USE TAX. (a) The district may 4-21 impose a sales and use tax. Revenue from the tax may be used for 4-22 any purpose for which ad valorem tax revenue of the district may be 4-23 used. 4-24 (b) The district may not adopt a tax under this subchapter 4-25 if, as a result of the adoption of the tax, the combined rate of 4-26 all sales and use taxes imposed by the county and other political 4-27 subdivisions of this state that have territory in the county would 4-28 exceed two percent at any location in the district. 4-29 Sec. 376.273. EMINENT DOMAIN. The district may not exercise 4-30 the power of eminent domain. 4-31 Sec. 376.274. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS 4-32 AFFECTING PROPERTY. (a) If the district, in exercising a power 4-33 conferred by this subchapter, requires a relocation, adjustment, 4-34 raising, lowering, rerouting, or changing the grade or the 4-35 construction of any of the following items, the district must take 4-36 that required action at the sole expense of the district: 4-37 (1) a street, alley, highway, overpass, underpass, 4-38 road, railroad track, bridge, facility, or other property; 4-39 (2) an electric line, conduit, facility, or other 4-40 property; 4-41 (3) a telephone or telegraph line, conduit, facility, 4-42 or other property; 4-43 (4) a gas transmission or distribution pipe, pipeline, 4-44 main, facility, or other property; 4-45 (5) a water, sanitary sewer, or storm sewer pipe, 4-46 pipeline, main, facility, or other property; 4-47 (6) a cable television line, cable, conduit, facility, 4-48 or other property; or 4-49 (7) another pipeline, facility, or other property 4-50 relating to the pipeline. 4-51 (b) The district shall bear damages that are suffered by 4-52 owners of the facility or other property. 4-53 Sec. 376.275. RELATION TO OTHER LAW. If any provision of a 4-54 law referenced in Section 376.271 is in conflict with or is 4-55 inconsistent with this subchapter, this subchapter prevails. Any 4-56 law referenced in this subchapter that is not in conflict or 4-57 inconsistent with this subchapter is adopted and incorporated by 4-58 reference. 4-59 Sec. 376.276. REQUIREMENTS FOR FINANCING SERVICES AND 4-60 IMPROVEMENTS. The board may not finance services and improvement 4-61 projects under this subchapter unless a written petition requesting 4-62 those improvements or services has been filed with the board. The 4-63 petition must be signed by: 4-64 (1) the owners of a majority of the assessed value of 4-65 real property in the district as determined by the most recent 4-66 certified county property tax rolls; or 4-67 (2) at least 50 persons who own land in the district, 4-68 if there are more than 50 persons who own property in the district 4-69 as determined by the most recent certified county property tax 5-1 rolls. 5-2 Sec. 376.277. NONPROFIT CORPORATION. (a) The board by 5-3 resolution may authorize the creation of a nonprofit corporation to 5-4 assist and act on behalf of the district in implementing a project 5-5 or providing a service this subchapter authorizes. 5-6 (b) A nonprofit corporation created under this section: 5-7 (1) has the powers of and is considered for purposes 5-8 of this subchapter to be a local government corporation created 5-9 under Chapter 431, Transportation Code; and 5-10 (2) may implement any project or provide any services 5-11 this subchapter authorizes. 5-12 (c) The board shall appoint the board of directors of a 5-13 nonprofit corporation created under this section. The board of 5-14 directors of the nonprofit corporation shall serve in the same 5-15 manner as, for the same term as, and on the conditions of the board 5-16 of directors of a local government corporation created under 5-17 Chapter 431, Transportation Code. 5-18 Sec. 376.278. DISBURSEMENTS OR TRANSFERS OF FUNDS. The 5-19 board by resolution shall establish the number of directors' 5-20 signatures and the procedure required for a disbursement or 5-21 transfer of the district's money. 5-22 Sec. 376.279. BONDS. (a) The district may issue bonds or 5-23 other obligations payable in whole or in part from ad valorem 5-24 taxes, assessments, impact fees, revenues, grants, or other money 5-25 of the district, or any combination of those sources of money, to 5-26 pay for any authorized purpose of the district. 5-27 (b) Bonds or other obligations of the district may be issued 5-28 in the form of bonds, notes, certificates of participation, 5-29 including other instruments evidencing a proportionate interest in 5-30 payments to be made by the district, or other obligations that are 5-31 issued in the exercise of the district's borrowing power and may be 5-32 issued in bearer or registered form or not represented by an 5-33 instrument but the transfer of which is registered on books 5-34 maintained by or on behalf of the district. 5-35 (c) Except as provided by Subsection (d), the district must 5-36 obtain the municipality's approval of: 5-37 (1) the issuance of bonds for an improvement project; 5-38 (2) the plans and specifications of the improvement 5-39 project to be financed by the bonds; and 5-40 (3) the plans and specifications of a district 5-41 improvement project related to: 5-42 (A) the use of land owned by the county; 5-43 (B) an easement granted by the county; or 5-44 (C) a right-of-way of a street, road, or 5-45 highway. 5-46 (d) If the district obtains the municipality's approval of a 5-47 capital improvements budget for a specified period not to exceed 5-48 five years, the district may finance the capital improvements and 5-49 issue bonds specified in the budget without further municipal 5-50 approval. 5-51 (e) Before the district issues bonds, the district shall 5-52 submit the bonds and the record of proceedings of the district 5-53 relating to authorization of the bonds to the attorney general for 5-54 approval as provided by Chapter 53, Acts of the 70th Legislature, 5-55 2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil 5-56 Statutes). 5-57 Sec. 376.280. ASSESSMENTS. (a) The board may impose and 5-58 collect an assessment for any purpose authorized by this 5-59 subchapter. 5-60 (b) Assessments, reassessments, or assessments resulting 5-61 from an addition to or correction of the assessment roll by the 5-62 district, penalties and interest on an assessment or reassessment, 5-63 expenses of collection, and reasonable attorney's fees incurred by 5-64 the district: 5-65 (1) are a first and prior lien against the property 5-66 assessed; 5-67 (2) are superior to any other lien or claim other than 5-68 a lien or claim for county, school district, or municipal ad 5-69 valorem taxes; and 6-1 (3) are the personal liability of and charge against 6-2 the owners of the property even if the owners are not named in the 6-3 assessment proceedings. 6-4 (c) The lien is effective from the date of the resolution of 6-5 the board levying the assessment until the assessment is paid. The 6-6 board may enforce the lien in the same manner that the board may 6-7 enforce an ad valorem tax lien against real property. 6-8 Sec. 376.281. PROPERTY EXEMPTED FROM TAX, FEE, OR 6-9 ASSESSMENT. (a) The district may not impose an impact fee or 6-10 assessment under Chapter 375 on a residential property, multi-unit 6-11 residential property, or condominium. 6-12 (b) The district may not impose an impact fee or assessment 6-13 on the property, equipment, or facilities of an electric utility as 6-14 defined by Section 31.002, Utilities Code or a gas utility as 6-15 defined by Section 101.003 or 121.001, Utilities Code. 6-16 Sec. 376.282. ELECTIONS. (a) In addition to the elections 6-17 the district must hold under Subchapter L, Chapter 375, the 6-18 district shall hold an election in the manner provided by that 6-19 subchapter to obtain voter approval before the district imposes a 6-20 maintenance tax or issues bonds payable from ad valorem taxes or 6-21 assessments. 6-22 (b) The board may submit multiple purposes in a single 6-23 proposition at an election. 6-24 Sec. 376.283. IMPACT FEES. The district may impose an 6-25 impact fee for an authorized purpose as provided by Subchapter G, 6-26 Chapter 375. 6-27 Sec. 376.284. MAINTENANCE TAX. (a) If authorized at an 6-28 election held in accordance with Section 376.282, the district may 6-29 impose and collect an annual ad valorem tax on taxable property in 6-30 the district for the maintenance and operation of the district and 6-31 the improvements constructed or acquired by the district or for the 6-32 provision of services. 6-33 (b) the board shall determine the tax rate. 6-34 Sec. 376.285. DISSOLUTION OF DISTRICT. (a) The district 6-35 may be dissolved as provided in Subchapter M, Chapter 375. 6-36 (b) Notwithstanding Section 375.264, the district may be 6-37 dissolved if the district has debt. If the district has debt and 6-38 is dissolved, the district shall remain in existence solely for the 6-39 limited purpose of discharging its bonds or other obligations 6-40 according to their terms. 6-41 Sec. 376.286. CONTRACTS. (a) To protect the public 6-42 interest, the district may contract with the municipality or county 6-43 for the provision of law enforcement services by the county or 6-44 municipality in the district on a fee basis. 6-45 (b) The municipality, county, or another political 6-46 subdivision of the state, without further authorization, may 6-47 contract with the district to implement a project of the district 6-48 or assist the district in providing the services authorized under 6-49 this subchapter. A contract under this subsection may: 6-50 (1) be for a period on which the parties agree; 6-51 (2) include terms on which the parties agree; 6-52 (3) be payable from taxes or any other sources of 6-53 revenue that may be available for such purpose; or 6-54 (4) provide that taxes or other revenue collected at a 6-55 district project or from a person using or purchasing a commodity 6-56 or service at a district project may be paid or rebated to the 6-57 district under the terms of the contract. 6-58 (c) The district may enter into a contract, lease, or other 6-59 agreement with or make or accept grants and loans to or from: 6-60 (1) the United States; 6-61 (2) the state or a state agency; 6-62 (3) any county, any municipality, or another political 6-63 subdivision of the state; 6-64 (4) a public or private corporation, including a 6-65 nonprofit corporation created by the board under this subchapter; 6-66 or 6-67 (5) any other person. 6-68 (d) The district may perform all acts necessary for the full 6-69 exercise of the powers vested in the district on terms and for the 7-1 period the board determines advisable. 7-2 Sec. 376.287. INITIAL DIRECTORS. (a) The initial board 7-3 consists of the following persons: 7-4 Pos. No. Name of Director 7-5 1 Clyde Bailey 7-6 2 Sylvia Bolling 7-7 3 Reyes Garcia 7-8 4 Leland Jauer 7-9 5 V. E. (Vic) Mauldin 7-10 6 W. Steve Mead 7-11 7 Art Murillo 7-12 8 Ray Shotwell 7-13 9 Richard Villanueva 7-14 (b) Of the initial directors, the directors appointed for 7-15 positions 1 through 4 serve until June 1, 2001, and the directors 7-16 appointed for positions 5 through 9 serve until June 1, 2003. 7-17 (c) This section expires September 1, 2004. 7-18 Sec. 376.288. ANNEXATION OF CERTAIN TERRITORY BY GOVERNING 7-19 BODY OF MUNICIPALITY. (a) If territory in a municipality's limit 7-20 or extraterritorial jurisdiction is included in the district, the 7-21 municipality's governing body may remove that territory from the 7-22 district if the district does not have bonded indebtedness. 7-23 (b) To remove territory under Subsection (a), the governing 7-24 body of the municipality must notify the secretary of the board of 7-25 the district in writing that the territory is excluded from the 7-26 district's territory. 7-27 (c) If a municipality annexes territory that is in its 7-28 extraterritorial jurisdiction and included in the district, the 7-29 governing body of the municipality shall notify the secretary of 7-30 the board of the district in writing that the annexed territory is 7-31 excluded from the district's territory. 7-32 SECTION 2. The legislature finds that: 7-33 (1) proper and legal notice of the intention to 7-34 introduce this Act, setting forth the general substance of this 7-35 Act, has been published as provided by law, and the notice and a 7-36 copy of this Act have been furnished to all persons, agencies, 7-37 officials, or entities to which they are required to be furnished 7-38 by the constitution and laws of this state, including the governor, 7-39 who has submitted the notice and Act to the Texas Natural Resource 7-40 Conservation Commission; 7-41 (2) the Texas Natural Resource Conservation Commission 7-42 has filed its recommendations relating to this Act with the 7-43 governor, lieutenant governor, and speaker of the house of 7-44 representatives within the required time; 7-45 (3) the general law relating to consent by political 7-46 subdivisions to the creation of districts with conservation, 7-47 reclamation, and road powers and the inclusion of land in those 7-48 districts has been complied with; and 7-49 (4) all requirements of the constitution and laws of 7-50 this state and the rules and procedures of the legislature with 7-51 respect to the notice, introduction, and passage of this Act have 7-52 been fulfilled and accomplished. 7-53 SECTION 3. The importance of this legislation and the 7-54 crowded condition of the calendars in both houses create an 7-55 emergency and an imperative public necessity that the 7-56 constitutional rule requiring bills to be read on three several 7-57 days in each house be suspended, and this rule is hereby suspended, 7-58 and that this Act take effect and be in force from and after its 7-59 passage, and it is so enacted. 7-60 * * * * *