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.