By Talton H.B. No. 3683 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the Pasadena Improvement District. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 376, Local Government Code, is amended by 1-5 adding Subchapter G to read as follows: 1-6 Sec. 376.251. CREATION OF DISTRICT. (a) A special 1-7 district, to be known as the "Pasadena Improvement District," is 1-8 created as a governmental agency, body politic and corporate, and 1-9 political subdivision of the state. 1-10 (b) The name of the district may be changed by resolution of 1-11 the board. 1-12 (c) The creation of the district is essential to accomplish 1-13 the purposes of Section 52, Article III, Section 59, Article XVI, 1-14 and Section 52-a, Article III, Texas Constitution, and other public 1-15 purposes. 1-16 Sec. 376.252. 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, and the 1-20 public welfare in the district. 1-21 (b) The creation of the district does not relieve the county 2-1 or the municipality from the obligations each entity has to provide 2-2 services to that area. The district is created to supplement and 2-3 not to supplant the municipal or county services provided in the 2-4 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. 376.253. 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, Texas. 2-14 (3) "District" means the Pasadena Improvement 2-15 District. 2-16 (4) "Municipality" means the City of Pasadena, Texas. 2-17 Sec. 376.254. BOUNDARIES. The district includes all of the 2-18 territory contained in the following described area in the 2-19 municipality: 2-20 BEGINNING at the northeast corner of Richey Street where it 2-21 intersects Southmore; 2-22 Thence north along the east right-of-way line of Richey 2-23 Street to the southern right-of-way line of State Highway 225; 2-24 Thence west along the southern right-of-way line of State 2-25 Highway 225 to the municipal boundary until it intersects the 3-1 southern right-of-way line of State Highway 225 and Red Bluff; 3-2 Thence west along that right-of-way line until it intersects 3-3 the eastern right-of-way line of Pasadena Boulevard; 3-4 Thence south along the eastern right-of-way line of Pasadena 3-5 Boulevard until it intersects the northern right-of-way line of 3-6 Southmore; 3-7 Thence west along the northern right-of-way line of Southmore 3-8 to the Point of Beginning. 3-9 Sec. 376.255. FINDINGS RELATING TO BOUNDARIES. The 3-10 boundaries of the district form a closure. If a mistake is made in 3-11 the field notes or in copying the field notes in the legislative 3-12 process, the mistake does not in any way affect the: 3-13 (1) organization, existence, and validity of the 3-14 district; 3-15 (2) right of the district to issue any type of bonds 3-16 or refunding bonds for the purposes for which the district is 3-17 created or to pay the principal of and interest on the bonds; 3-18 (3) right of the district to receive distributions of 3-19 taxes under Section 376.270; or 3-20 (4) legality or operation of the district or its 3-21 governing body. 3-22 Sec. 376.256. AMENDING BOUNDARIES. (a) The board by 3-23 resolution adopted after a public hearing on the issue may amend 3-24 the boundary of the district to add or exclude territory. 3-25 (b) The addition of territory to the district must be 4-1 approved by the voters of that territory in an election held in 4-2 accordance with Section 376.268. 4-3 (c) Territory may not be added to the district unless it is 4-4 contiguous to the district. 4-5 Sec. 376.257. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 4-6 All the land and other property included in the district will be 4-7 benefited by the improvements and services to be provided by the 4-8 district under powers conferred by Section 52, Article III, Section 4-9 59, Article XVI, and Section 52-a, Article III, Texas Constitution, 4-10 and other powers granted under this subchapter, and the district is 4-11 created to serve a public use and benefit. 4-12 (b) The creation of the district is in the public interest 4-13 and is essential to: 4-14 (1) further the public purposes of the development and 4-15 diversification of the economy of the state; and 4-16 (2) eliminate unemployment and underemployment and 4-17 develop or expand transportation and commerce. 4-18 (c) The district will: 4-19 (1) promote the health, safety, and general welfare of 4-20 residents, employers, employees, visitors, consumers in the 4-21 district, and the general public; 4-22 (2) provide needed funding for the area included in 4-23 the district to preserve, maintain, and enhance the economic health 4-24 and vitality of the area as a community and business center; and 4-25 (3) further promote the health, safety, welfare, and 5-1 enjoyment of the public by providing pedestrian ways and by 5-2 landscaping and developing certain areas in the district, which are 5-3 necessary for the restoration, preservation, and enhancement of 5-4 scenic and aesthetic beauty. 5-5 (d) Pedestrian ways along or across a street, whether at 5-6 grade or above or below the surface, and street lighting, street 5-7 landscaping, and street art objects are parts of and necessary 5-8 components of a street and are considered to be a street or road 5-9 improvement. 5-10 (e) The district will not act as the agent or 5-11 instrumentality of any private interest even though many private 5-12 interests will be benefited by the district, as will the general 5-13 public. 5-14 Sec. 376.258. APPLICABILITY OF OTHER LAW. Except as 5-15 otherwise provided by this subchapter, Chapter 375 applies to the 5-16 district. 5-17 Sec. 376.259. CONSTRUCTION OF SUBCHAPTER. This subchapter 5-18 shall be liberally construed in conformity with the findings and 5-19 purposes stated in this subchapter. 5-20 Sec. 376.260. BOARD OF DIRECTORS. (a) The district is 5-21 governed by a board of nine directors. 5-22 (b) Directors serve staggered terms of two years, with four 5-23 directors' terms expiring June 1 of even-numbered year and five 5-24 directors' terms expiring June 1 of each odd-numbered year. 5-25 (c) A director must reside in the district. 6-1 (d) The governing body of the municipality shall appoint one 6-2 director, the governing body of the Pasadena Independent School 6-3 District shall appoint one director, and the Harris County judge, 6-4 with the approval of the Harris County commissioners court, shall 6-5 appoint seven directors. The directors appointed by the Harris 6-6 County judge must represent business. 6-7 (e) The directors shall select a presiding officer. 6-8 (f) A vacancy in the office of director shall be filled by 6-9 the remaining members of the board by appointing a qualified person 6-10 for the unexpired term. 6-11 Sec. 376.261. POWERS OF DISTRICT. (a) The district has: 6-12 (1) all powers necessary or required to accomplish the 6-13 purposes for which the district was created; 6-14 (2) the rights, powers, privileges, authority, and 6-15 functions of a district created under Chapter 375; 6-16 (3) the powers given to a corporation under Section 6-17 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's 6-18 Texas Civil Statutes), and the power to own, operate, acquire, 6-19 construct, lease, improve, and maintain projects, other than a 6-20 domed football stadium, described by that section; and 6-21 (4) the power of a housing finance corporation created 6-22 under Chapter 394 to provide housing or residential development 6-23 projects in the district. 6-24 (b) The district may not impose a sales and use or ad 6-25 valorem tax and may not acquire property through eminent domain. 7-1 Sec. 376.262. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS 7-2 AFFECTING PROPERTY. (a) If the district, in exercising a power 7-3 conferred by this subchapter, requires a relocation, adjustment, 7-4 raising, lowering, rerouting, or changing of the grade or the 7-5 construction of any of the following items, the district must take 7-6 that required action at the sole expense of the district: 7-7 (1) a street, alley, highway, overpass, underpass, 7-8 road, railroad track, bridge, facility, or other property; 7-9 (2) an electric line, conduit, facility, or other 7-10 property; 7-11 (3) a telephone or telegraph line, conduit, facility, 7-12 or other property; 7-13 (4) a gas transmission or distribution pipe, pipeline, 7-14 main, facility, or other property; 7-15 (5) a water, sanitary sewer, or storm sewer pipe, 7-16 pipeline, main, facility, or other property; 7-17 (6) a cable television line, cable, conduit, facility, 7-18 or other property; or 7-19 (7) another pipeline, facility, or other property 7-20 relating to the pipeline. 7-21 (b) The district shall bear damages that are suffered by 7-22 owners of the facility or other property. 7-23 Sec. 376.263. REQUIREMENTS FOR FINANCING SERVICES AND 7-24 IMPROVEMENTS. The board may not finance services and improvement 7-25 projects under this subchapter unless a written petition requesting 8-1 those services or improvements has been filed with the board. The 8-2 petition must be signed by: 8-3 (1) the owners of a majority of the assessed value of 8-4 real property in the district as determined by the most recent 8-5 certified county property tax rolls; or 8-6 (2) at least 50 persons who own land in the district, 8-7 if there are more than 50 persons who own property in the district 8-8 as determined by the most recent certified county property tax 8-9 rolls. 8-10 Sec. 376.264. NONPROFIT CORPORATION. (a) The board by 8-11 resolution may authorize the creation of a nonprofit corporation to 8-12 assist and act on behalf of the district in implementing a project 8-13 or providing a service authorized by this subchapter. 8-14 (b) The board shall appoint the board of directors of a 8-15 nonprofit corporation created under this section. The board of 8-16 directors of the nonprofit corporation shall serve in the same 8-17 manner as, for the same term as, and on the same conditions as a 8-18 board of directors of a local government corporation created under 8-19 Chapter 431, Transportation Code. 8-20 (c) A nonprofit corporation created under this section has 8-21 the powers of and is considered for purposes of this subchapter to 8-22 be a local government corporation created under Chapter 431, 8-23 Transportation Code. 8-24 (d) A nonprofit corporation created under this section may 8-25 implement any project and provide any services authorized by this 9-1 subchapter. 9-2 Sec. 376.265. DISBURSEMENTS OR TRANSFERS OF FUNDS. The 9-3 board by resolution shall establish the number of directors' 9-4 signatures and the procedure required for a disbursement or 9-5 transfer of the district's money. 9-6 Sec. 376.266. BONDS. (a) The district may issue bonds or 9-7 other obligations payable in whole or in part from sales and use 9-8 taxes imposed by the municipality and distributed to the district, 9-9 revenue, grants, or other money of the district, or any combination 9-10 of those sources of money, to pay for any authorized purpose of the 9-11 district, other than to finance a domed football stadium. 9-12 (b) Bonds or other obligations of the district may be issued 9-13 in the form of bonds, notes, certificates of participation, 9-14 including other instruments evidencing a proportionate interest in 9-15 payments to be made by the district, or other obligations that are 9-16 issued in the exercise of the district's borrowing power and may be 9-17 issued in bearer or registered form or not represented by an 9-18 instrument but the transfer of which is registered on books 9-19 maintained by or on behalf of the district. 9-20 (c) Except as provided by Subsection (d), the district must 9-21 obtain the municipality's approval of: 9-22 (1) the issuance of bonds for an improvement project; 9-23 and 9-24 (2) the plans and specifications of the improvement 9-25 project to be financed by the bonds. 10-1 (d) If the district obtains the municipality's approval of a 10-2 capital improvements budget for a specified period not to exceed 10-3 five years, the district may finance the capital improvements and 10-4 issue bonds specified in the budget without further municipal 10-5 approval. 10-6 (e) Before the district issues bonds, the district shall 10-7 submit the bonds and the record of proceedings of the district 10-8 relating to authorization of the bonds to the attorney general for 10-9 approval as provided by Chapter 53, Acts of the 70th Legislature, 10-10 2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil 10-11 Statutes). 10-12 Sec. 376.267. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. The 10-13 district must obtain the municipality's approval of the plans and 10-14 specifications of any district improvement project related to the 10-15 use of land owned by the municipality, an easement granted by the 10-16 municipality, or a right-of-way of a street, road, or highway. 10-17 Sec. 376.268. CONFIRMATION ELECTION. (a) The district may 10-18 not exercise a power other than a power granted by this section 10-19 until the creation of the district is confirmed by the votes of a 10-20 majority of the qualified voters who reside in the district and 10-21 vote in a confirmation election called and held under this section. 10-22 (b) The board shall call and hold the confirmation election 10-23 in the manner provided for conducting a confirmation election under 10-24 Subchapter D, Chapter 49, Water Code. 10-25 Sec. 376.269. CONDITIONAL EXPIRATION OF SUBCHAPTER. (a) If 11-1 the creation of the district is not approved at a confirmation 11-2 election held in accordance with Section 376.268 before the last 11-3 uniform election date provided by section 41.001, Election Code, 11-4 that occurs in the year 2001, this subchapter expires December 31, 11-5 2001. 11-6 (b) This section expires on the earlier of: 11-7 (1) the date the district is approved at a 11-8 confirmation election held in accordance with Section 376.268; or 11-9 (2) December 31, 2001. 11-10 Sec. 376.270. SALES AND USE TAX. (a) After making the 11-11 deduction required by Section 321.503, Tax Code, from the sales and 11-12 use taxes collected within the municipality during the period for 11-13 which a distribution is made, the comptroller shall deduct from the 11-14 amount to be distributed to the municipality under Section 321.502, 11-15 Tax Code, that is attributable to sales and use taxes imposed by 11-16 the municipality within the district an amount equal to one-fourth 11-17 of that amount. 11-18 (b) The comptroller shall distribute to the district the 11-19 amount determined under Subsection (a) at the same time that the 11-20 comptroller makes a distribution to the municipality under Section 11-21 321.502, Tax Code. 11-22 Sec. 376.271. DISSOLUTION OF DISTRICT. (a) The district 11-23 may be dissolved as provided by Subchapter M, Chapter 375, except 11-24 that the district may not be dissolved by the governing body of the 11-25 municipality. 12-1 (b) Regardless of Section 375.264, a district that has debt 12-2 may be dissolved as provided by Subchapter M, Chapter 375. If the 12-3 district has debt and is dissolved, the district shall remain in 12-4 existence solely for the limited purpose of discharging its bonds 12-5 or other obligations according to their terms. 12-6 Sec. 376.272. CONTRACTS. (a) To protect the public 12-7 interest, the district may contract with the municipality or county 12-8 for the provision of law enforcement services by the county or 12-9 municipality in the district on a fee basis. 12-10 (b) The municipality, county, or another political 12-11 subdivision of the state, without further authorization, may 12-12 contract with the district to implement a project of the district 12-13 or assist the district in providing the services authorized under 12-14 this subchapter. A contract under this subsection may: 12-15 (1) be for a period on which the parties agree; 12-16 (2) include terms on which the parties agree; 12-17 (3) be payable from any source of revenue that may be 12-18 available for that purpose; or 12-19 (4) provide that revenue collected at a district 12-20 project or from a person using or purchasing a commodity or service 12-21 at a district project may be paid or rebated to the district under 12-22 the terms of the contract. 12-23 (c) The district may enter into a contract, lease, or other 12-24 agreement with or make or accept grants and loans to or from: 12-25 (1) the United States; 13-1 (2) the state or a state agency; 13-2 (3) any county, any municipality, or another political 13-3 subdivision of the state; 13-4 (4) a public or private corporation, including a 13-5 nonprofit corporation created by the board under this subchapter; 13-6 or 13-7 (5) any other person. 13-8 (d) The district may perform all acts necessary for the full 13-9 exercise of the powers vested in the district on terms and for the 13-10 period the board determines advisable. 13-11 Sec. 376.273. COMPETITIVE BIDDING. The district may enter a 13-12 contract for more than $10,000 for services, improvements, or the 13-13 purchase of property, including materials, machinery, equipment, or 13-14 supplies, only as provided by Subchapter K, Chapter 375. 13-15 SECTION 2. As soon as possible on or after the effective 13-16 date of this Act: 13-17 (1) the governing body of the City of Pasadena shall 13-18 appoint one director to serve a term that expires June 1 of the 13-19 first even-numbered year following the creation of the district: 13-20 (2) the governing body of the Pasadena Independent 13-21 School District shall appoint one director to serve a term that 13-22 expires June 1 of the first even-numbered year following the 13-23 creation of the district; and 13-24 (3) the Harris County judge, with the approval of the 13-25 Harris County commissioners court, shall appoint: 14-1 (A) two directors to serve terms that expire 14-2 June 1 of the first even-numbered year following the creation of 14-3 the district; and 14-4 (B) five directors to serve terms that expire 14-5 June 1 of the first odd-numbered year following the creation of the 14-6 district. 14-7 SECTION 3. The importance of this legislation and the 14-8 crowded condition of the calendars in both houses create an 14-9 emergency and an imperative public necessity that the 14-10 constitutional rule requiring bills to be read on three several 14-11 days in each house be suspended, and this rule is hereby suspended, 14-12 and that this Act take effect and be in force from and after its 14-13 passage, and it is so enacted.