76R10387 MXM-F                           
         By Coleman                                            H.B. No. 2894
         Substitute the following for H.B. No. 2894:
         By Swinford                                       C.S.H.B. No. 2894
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Midtown Management District;
 1-3     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.  MIDTOWN MANAGEMENT DISTRICT
 1-8           Sec. 376.301.  CREATION OF DISTRICT.  (a)  The Midtown
 1-9     Management District is created as a special district under Section
1-10     59, Article XVI, Texas Constitution.
1-11           (b)  The board by resolution may change the district's name.
1-12           (c)  The creation of the district is essential to accomplish
1-13     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-14     Article XVI, Texas Constitution, and other public purposes stated
1-15     in this subchapter.
1-16           Sec. 376.302.  DECLARATION OF INTENT.  (a)  The creation of
1-17     the district is necessary to promote, develop, encourage, and
1-18     maintain employment, commerce, transportation, housing, tourism,
1-19     recreation, arts, entertainment, economic development, safety, and
1-20     the public welfare in the municipality's midtown area.
1-21           (b)  The creation of the district and this legislation are
1-22     not to be interpreted to relieve the county or the municipality
1-23     from providing the level of services, as of the effective date of
1-24     this subchapter, to the area in the district or to release the
 2-1     county or the municipality from the obligations each entity has to
 2-2     provide services to that area.  The district is created to
 2-3     supplement and not supplant the municipal or county services
 2-4     provided in the area in the district.
 2-5           (c)  By creating the district and in authorizing the
 2-6     municipality, county, and other political subdivisions to contract
 2-7     with the district, the legislature has established a program to
 2-8     accomplish the public purposes set out in Section 52-a, Article
 2-9     III, Texas Constitution.
2-10           Sec. 376.303.  DEFINITIONS.  In this subchapter:
2-11                 (1)  "Board" means the board of directors of the
2-12     district.
2-13                 (2)  "County" means Harris County.
2-14                 (3)  "District" means the Midtown Management District.
2-15                 (4)  "Municipality" means the City of Houston.
2-16                 (5)  "Utility" means a person that provides to the
2-17     public gas, electricity, telephone, sewage, or water service.
2-18           Sec. 376.304.  BOUNDARIES.  The district includes all the
2-19     territory contained within the following described area:
2-20           Being all of the following described property in the
2-21     Obedience Smith Survey, Abstract No. 696, and the James S. Holman
2-22     Survey No. 323, City of Houston, Harris County, Texas and being
2-23     more particularly described as follows:
2-24           BEGINNING at the intersection of the westerly line of Bagby
2-25     Street with the southerly line of McGowen Avenue;
2-26           THENCE in a southwesterly direction along the westerly line
2-27     of Bagby Street to its intersection with the southerly line of Tuam
 3-1     Street;
 3-2           THENCE in a southeasterly direction along the southerly line
 3-3     of Tuam Avenue to its intersection with the westerly line of Brazos
 3-4     Street;
 3-5           THENCE in a southwesterly direction along the westerly line
 3-6     of Brazos Street to its intersection with the northerly line of
 3-7     Elgin Avenue;
 3-8           THENCE in a southeasterly direction along the northerly line
 3-9     of Elgin Avenue to its intersection with the easterly line of
3-10     Brazos Street which is also the easterly line of Spur 527, a
3-11     segment of the Southwest Freeway;
3-12           THENCE in a southerly direction along the easterly line of
3-13     said Spur 527 to its intersection with the easterly line of Milam
3-14     Street;
3-15           THENCE in a southwesterly direction along the easterly line
3-16     of Milam Street to its intersection with the easterly line of said
3-17     Spur 527;
3-18           THENCE in a southerly and southwesterly direction along said
3-19     Spur 527 to its intersection with northerly line of US 59 south;
3-20           THENCE easterly along the northerly line of said US 59 South
3-21     to its intersections with the southeasterly line of Austin Street;
3-22           THENCE northeasterly along the southeasterly line of Austin
3-23     Street to its intersection with the northeasterly line of Eagle
3-24     Avenue;
3-25           THENCE northwesterly along northeasterly line of Eagle Avenue
3-26     to the southeasterly line of San Jacinto Street;
3-27           THENCE northeasterly along the southeasterly line of San
 4-1     Jacinto Street to the southeasterly line of Alabama Avenue;
 4-2           THENCE in a southeasterly direction along the southerly line
 4-3     of Alabama Avenue to its intersection with the easterly line of La
 4-4     Branch Street;
 4-5           THENCE in a northeasterly direction along the easterly
 4-6     direction along the easterly line of La Branch Street to its
 4-7     intersection with the southerly line of Winbern Avenue;
 4-8           THENCE in a southeasterly direction along the southerly line
 4-9     of Winbern Avenue to its intersection with the easterly line of
4-10     Crawford Street;
4-11           THENCE in a northeasterly direction along the easterly line
4-12     of Crawford Street to its intersection with the southerly line of
4-13     Stuart Avenue;
4-14           THENCE in a southeasterly direction along the southerly line
4-15     of Stuart Avenue to the intersection with the Easterly line of
4-16     Hamilton Street which is adjacent to US Highway 59/State Highway
4-17     288;
4-18           THENCE in a northeasterly and northerly direction along the
4-19     easterly line of Hamilton Street and westerly line of said US
4-20     Highway 59/State Highway 288 to its intersection with the northerly
4-21     line of West Gray Avenue;
4-22           THENCE in a northwesterly direction along the northerly line
4-23     of West Gray Avenue to its intersection with the easterly line of
4-24     Smith Street;
4-25           THENCE in a northeasterly direction along the easterly line
4-26     of Smith Street to its intersection with the southerly line of
4-27     Interstate Highway No. 45;
 5-1           THENCE in a northwesterly and northerly direction along the
 5-2     southerly line of said Interstate Highway No. 45 to its
 5-3     intersection with the north line of Cleveland Street;
 5-4           THENCE in a westerly direction along the northerly line of
 5-5     Cleveland Street to its intersection with the westerly line of
 5-6     Arthur Street;
 5-7           THENCE in a southerly direction along the westerly line of
 5-8     Arthur Street to the southerly dead end thereof;
 5-9           THENCE in a southeasterly direction at right angles to the
5-10     northwesterly line of Baldwin Street to its intersection with said
5-11     line;
5-12           THENCE in a southwesterly direction along the northwesterly
5-13     line of Baldwin Street to its intersection with the southerly line
5-14     of West Gray Avenue;
5-15           THENCE in a northwesterly and westerly direction along the
5-16     southerly line of West Gray Avenue to its intersection with the
5-17     north line of Webster Avenue;
5-18           THENCE in a southeasterly direction along the northerly line
5-19     of Webster Avenue to its intersection with an easterly projection
5-20     of the north line of West Webster Avenue;
5-21           THENCE westerly along the northerly line of West Webster
5-22     Avenue to the westerly line of Bailey Street;
5-23           THENCE southerly along the westerly line of Bailey Street and
5-24     a southerly projection thereof to its intersection with the
5-25     southerly line of McGowen Avenue;
5-26           THENCE southeasterly along the southerly of McGowen Avenue to
5-27     its intersection with the westerly line of Bagby Street, which is
 6-1     the place of beginning of the tract herein described.  There is
 6-2     excepted from the boundaries of the district the following tract:
 6-3           BEGINNING at the intersection of the center line of Pierce
 6-4     Avenue and Bagby Street;
 6-5           THENCE in a northeasterly direction with a center line of
 6-6     Bagby Street to the westerly right-of-way of Interstate Highway 45;
 6-7           THENCE south and southeasterly along the right-of-way of
 6-8     Interstate Highway 45 to its intersection with the center line of
 6-9     Pierce Avenue;
6-10           THENCE westerly along the center line of Pierce Avenue to the
6-11     intersection with the center line of Bagby Street the point and
6-12     place of beginning;
6-13           SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
6-14     facilities, and improvements owned by a utility.
6-15           Sec. 376.305.  FINDINGS RELATING TO BOUNDARIES.  The
6-16     boundaries and field notes of the district form a closure.  If a
6-17     mistake is made in the field notes or in copying the field notes in
6-18     the legislative process, it does not affect the district's:
6-19                 (1)  organization, existence, or validity;
6-20                 (2)  right to issue any type of bond for the purposes
6-21     for which the district is created or to pay the principal of and
6-22     interest on a bond;
6-23                 (3)  right to impose or collect an assessment; or
6-24                 (4)  legality or operation.
6-25           Sec. 376.306.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
6-26     All the land and other property included in the district will be
6-27     benefited by the improvements and services to be provided by the
 7-1     district under powers conferred by Sections 52 and 52-a, Article
 7-2     III, and Section 59, Article XVI, Texas Constitution, and other
 7-3     powers granted under this subchapter, and the district is created
 7-4     to serve a public use and benefit.
 7-5           (b)  The creation of the district is in the public interest
 7-6     and is essential to:
 7-7                 (1)  further the public purposes of the development and
 7-8     diversification of the economy of the state; and
 7-9                 (2)  eliminate unemployment and underemployment and
7-10     develop or expand transportation and commerce.
7-11           (c)  The district will:
7-12                 (1)  promote the health, safety, and general welfare of
7-13     residents, employers, employees, visitors, consumers in the
7-14     district, and the general public;
7-15                 (2)  provide needed funding for the municipality's
7-16     midtown area to preserve, maintain, and enhance the economic health
7-17     and vitality of the area as a community and business center; and
7-18                 (3)  further promote the health, safety, welfare, and
7-19     enjoyment of the public by providing pedestrian ways and by
7-20     landscaping and developing certain areas in the district, which are
7-21     necessary for the restoration, preservation, and enhancement of
7-22     scenic and aesthetic beauty.
7-23           (d)  Pedestrian ways along or across a street, whether at
7-24     grade or above or below the surface, and street lighting, street
7-25     landscaping, and street art objects are parts of and necessary
7-26     components of a street and are considered to be a street or road
7-27     improvement.
 8-1           (e)  The district will not act as the agent or
 8-2     instrumentality of any private interest even though many private
 8-3     interests will be benefited by the district, as will the general
 8-4     public.
 8-5           Sec. 376.307.  APPLICATION OF OTHER LAW.  Except as otherwise
 8-6     provided by this subchapter, Chapter 375 applies to the district.
 8-7           Sec. 376.308.  LIBERAL CONSTRUCTION OF SUBCHAPTER.  This
 8-8     subchapter shall be liberally construed in conformity with the
 8-9     findings and purposes stated in this subchapter.
8-10           Sec. 376.309.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
8-11     district is governed by a board of 17 directors who serve staggered
8-12     terms of four years, with eight directors' terms expiring June 1 of
8-13     an odd-numbered year and nine directors' terms expiring June 1 of
8-14     the following odd-numbered year.
8-15           (b)  A director shall receive compensation as provided by
8-16     Section 49.060, Water Code.
8-17           Sec. 376.310.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and
8-18     members of the governing body of the municipality shall appoint
8-19     directors from persons recommended by the board.  A person is
8-20     appointed if a majority of the members and the mayor vote to
8-21     appoint that person.
8-22           (b)  A person may not be appointed to the board if the
8-23     appointment of that person would result in less than two-thirds of
8-24     the directors residing in the municipality.
8-25           Sec. 376.311. EX OFFICIO BOARD MEMBERS.  (a)  The following
8-26     persons shall serve as a nonvoting ex officio director:
8-27                 (1)  the director of the following departments of the
 9-1     municipality:
 9-2                       (A)  parks and recreation;
 9-3                       (B)  planning and development;
 9-4                       (C)  public works; and
 9-5                       (D)  civic center;
 9-6                 (2)  the municipality's chief of police;
 9-7                 (3)  the county's general manager of the Metropolitan
 9-8     Transit Authority; and
 9-9                 (4)  the presidents of any institutions of higher
9-10     learning located in the district.
9-11           (b)  If a department described by Subsection (a) is
9-12     consolidated, renamed, or changed, the board may appoint a director
9-13     of the consolidated, renamed, or changed department as a nonvoting
9-14     ex officio board member.  If a department described by Subsection
9-15     (a) is abolished, the board may appoint a representative of another
9-16     department of the municipality that performs duties comparable to
9-17     those performed by the abolished department.
9-18           (c)  The board may appoint the presiding officer of a
9-19     nonprofit corporation that is actively involved in activities in
9-20     the municipality's midtown area to serve as a nonvoting ex officio
9-21     director.
9-22           Sec. 376.312.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
9-23     (a)  Except as provided in this section:
9-24                 (1)  a director may participate in all board votes and
9-25     decisions; and
9-26                 (2)  Chapter 171 governs conflict of interests for
9-27     board members.
 10-1          (b)  Section 171.004 does not apply to the district.  A
 10-2    director who has a substantial interest in a business or charitable
 10-3    entity that will receive a pecuniary benefit from a board action
 10-4    shall file a one-time affidavit declaring the interest.  An
 10-5    additional affidavit is not required if the director's interest
 10-6    changes.  After the affidavit is filed with the board secretary,
 10-7    the director may participate in a discussion or vote on that action
 10-8    if:
 10-9                (1)  a majority of the directors have a similar
10-10    interest in the same entity; or
10-11                (2)  all other similar business or charitable entities
10-12    in the district will receive a similar pecuniary benefit.
10-13          (c)  A director who is also an officer or employee of a
10-14    public entity may not participate in the discussion of or vote on a
10-15    matter regarding a contract with that same public entity.
10-16          (d)  For purposes of this section, a director has a
10-17    substantial interest in a charitable entity in the same manner that
10-18    a person would have a substantial interest in a business entity
10-19    under Section 171.002.
10-20          Sec. 376.313.  ADDITIONAL POWERS OF DISTRICT.  (a)  The
10-21    district may exercise the powers given to a corporation created
10-22    under Section 4B, Development Corporation Act of 1979 (Article
10-23    5190.6, Vernon's Texas Civil Statutes).
10-24          (b)  The district may exercise the powers given to a housing
10-25    finance corporation created under Chapter 394 to provide housing or
10-26    residential development projects in the district.
10-27          Sec. 376.314.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
 11-1    AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
 11-2    make an agreement with or accept a donation, grant, or loan from
 11-3    any person.
 11-4          (b)  The implementation of a project is a governmental
 11-5    function or service for the purposes of Chapter 791, Government
 11-6    Code.
 11-7          (c)  To protect the public interest, the district may
 11-8    contract with the municipality or the county for the municipality
 11-9    or county to provide law enforcement services in the district for a
11-10    fee.
11-11          Sec. 376.315.  NONPROFIT CORPORATION.  (a)  The board by
11-12    resolution may authorize the creation of a nonprofit corporation to
11-13    assist and act on behalf of the district in implementing a project
11-14    or providing a service authorized by this subchapter.
11-15          (b)  The board shall appoint the board of directors of a
11-16    nonprofit corporation created under this section.  The board of
11-17    directors of  the nonprofit corporation shall serve in the same
11-18    manner, term, and conditions as a board of directors of a local
11-19    government corporation created under Chapter 431, Transportation
11-20    Code.
11-21          (c)  A nonprofit corporation created under this section has
11-22    the powers of and is considered for purposes of this subchapter to
11-23    be a local government corporation created under Chapter 431,
11-24    Transportation Code.
11-25          (d)  A nonprofit corporation created under this section may
11-26    implement any project and provide any service authorized by this
11-27    subchapter.
 12-1          Sec. 376.316.  ANNEXATION.  The district may:
 12-2                (1)  annex territory as provided by Subchapter C,
 12-3    Chapter 375; and
 12-4                (2)  annex territory located inside the boundaries of a
 12-5    reinvestment zone created by the municipality under Chapter 311,
 12-6    Tax Code, if the governing body of the municipality consents to the
 12-7    annexation.
 12-8          Sec. 376.317.  PETITION REQUIRED FOR FINANCING SERVICES AND
 12-9    IMPROVEMENTS.  The board may not finance a service or improvement
12-10    project under this subchapter unless a written petition requesting
12-11    the improvement or service has been filed with the board.  The
12-12    petition must be signed by:
12-13                (1)  the owners of a majority of the assessed value of
12-14    real property in the district as determined by the most recent
12-15    certified county property tax rolls; or
12-16                (2)  at least 25 persons who own land in the district,
12-17    if there are more than 25 persons who own property in the district
12-18    as determined by the most recent certified county property tax
12-19    rolls.
12-20          Sec. 376.318.  ELECTIONS.  (a)  In addition to the elections
12-21    the district must hold under Subchapter L, Chapter 375, the
12-22    district shall hold an election in the manner provided by that
12-23    subchapter to obtain voter approval before the district imposes a
12-24    maintenance tax or issues bonds payable from ad valorem taxes or
12-25    assessments.
12-26          (b)  The board may include more than one purpose in a single
12-27    proposition at an election.
 13-1          Sec. 376.319.  MAINTENANCE TAX.  (a)  If authorized at an
 13-2    election held in accordance with Section 376.318, the district may
 13-3    impose and collect an annual ad valorem tax on taxable property in
 13-4    the district for the maintenance and operation of the district and
 13-5    the improvements constructed or acquired by the district or for the
 13-6    provision of services.
 13-7          (b)  The board shall determine the tax rate.
 13-8          Sec. 376.320.  CERTAIN RESIDENTIAL PROPERTY IS NOT EXEMPT.
 13-9    (a)  A board may not exempt a single-family residential property
13-10    from an impact fee, assessment, or tax imposed under this
13-11    subchapter.
13-12          (b)  Sections 375.161 and 375.164 do not apply to the
13-13    district.
13-14          Sec. 376.321.  UTILITIES.  The district may not impose an
13-15    assessment or impact fee on a utility's property.
13-16          Sec. 376.322.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
13-17    board by resolution shall establish the number of directors'
13-18    signatures and the procedure required for a disbursement or
13-19    transfer of the district's money.
13-20          Sec. 376.323.  COMPETITIVE BIDDING LIMIT.  Section 375.221
13-21    does not apply to the district unless the contract is for more than
13-22    $25,000.
13-23          Sec. 376.324.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
13-24    OUTSTANDING DEBTS.  (a)  The board may vote to dissolve a district
13-25    that has debt.  If the vote is in favor of dissolution, the
13-26    district shall remain in existence solely for the limited purpose
13-27    of discharging its debts.  The dissolution is effective when all
 14-1    debts have been discharged.
 14-2          (b)  Section 375.264 does not apply to the district.
 14-3          SECTION 2.  The legislature finds that:
 14-4                (1)  proper and legal notice of the intention to
 14-5    introduce this Act, setting forth the general substance of this
 14-6    Act, has been published as provided by law, and the notice and a
 14-7    copy of this Act have been furnished to all persons, agencies,
 14-8    officials, or entities to which they are required to be furnished
 14-9    by the constitution and laws of this state, including the governor,
14-10    who has submitted the notice and Act to the Texas Natural Resource
14-11    Conservation Commission;
14-12                (2)  the Texas Natural Resource Conservation Commission
14-13    has filed its recommendations relating to this Act with the
14-14    governor, lieutenant governor, and speaker of the house of
14-15    representatives within the required time;
14-16                (3)  the general law relating to consent by political
14-17    subdivisions to the creation of districts with conservation,
14-18    reclamation, and road powers and the inclusion of land in those
14-19    districts has been complied with; and
14-20                (4)  all requirements of the constitution and laws of
14-21    this state and the rules and procedures of the legislature with
14-22    respect to the notice, introduction, and passage of this Act have
14-23    been fulfilled and accomplished.
14-24          SECTION 3.  Notwithstanding Section 376.310, Local
14-25    Governmental Code, as added by this Act:
14-26                (1)  the initial board of directors of the Midtown
14-27    Management District consists of:
 15-1                Pos. No.    Name of Board Member
 15-2                1.          Gregory Phillips
 15-3                2.          Andy Bynam
 15-4                3.          Blanchard Hollins
 15-5                4.          Suewan Johnson
 15-6                5.          John Gonzales
 15-7                6.          Doug Williams
 15-8                7.          Tran Tian
 15-9                8.          Al Luna
15-10                9.          Angela Lange
15-11                10.         John Kirksey
15-12                11.         Kathy Perry
15-13                12.         Dan Nip
15-14                13.         Allen Crosswell
15-15                14.         Steve Hefner
15-16                15.         Jim Lang
15-17                16.         Frank Liu
15-18                17.         Grant Martin; and
15-19                (2)  of the initial board members, the members
15-20    appointed for positions 1 through 9 serve until June 1, 2003, and
15-21    the members appointed for positions 10 through 17 serve until June
15-22    1, 2001.
15-23          SECTION 4.  The importance of this legislation and the
15-24    crowded condition of the calendars in both houses create an
15-25    emergency and an imperative public necessity that the
15-26    constitutional rule requiring bills to be read on three several
15-27    days in each house be suspended, and this rule is hereby suspended,
 16-1    and that this Act take effect and be in force from and after its
 16-2    passage, and it is so enacted.