76R11628 JJT-D
By Coleman H.B. No. 3799
Substitute the following for H.B. No. 3799:
By Swinford C.S.H.B. No. 3799
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the East Downtown 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. EAST DOWNTOWN MANAGEMENT DISTRICT
1-8 Sec. 376.301. CREATION OF DISTRICT. (a) A special district
1-9 to be known as the "East Downtown Management District" exists as a
1-10 governmental agency, body politic and corporate, and political
1-11 subdivision of the state.
1-12 (b) The name of the district may be changed by resolution of
1-13 the board.
1-14 (c) The creation of the district is essential to accomplish
1-15 the purposes of Section 52, Article III, Section 59, Article XVI,
1-16 and Section 52-a, Article III, Texas Constitution, and other public
1-17 purposes stated in this subchapter.
1-18 Sec. 376.302. DECLARATION OF INTENT. (a) The creation of
1-19 the district is necessary to promote, develop, encourage, and
1-20 maintain employment, commerce, transportation, housing, tourism,
1-21 recreation, arts, entertainment, economic development, safety, and
1-22 the public welfare in the east downtown area of the city of
1-23 Houston.
1-24 (b) The creation of the district and this legislation are
2-1 not to be interpreted to relieve the county or the municipality
2-2 from providing the level of services, as of the effective date of
2-3 this subchapter, to the area in the district or to release the
2-4 county or the municipality from the obligations each entity has to
2-5 provide services to that area. The district is created to
2-6 supplement and not supplant the municipal or county services
2-7 provided in the area in the district.
2-8 (c) By creating the district and in authorizing the
2-9 municipality, county, and other political subdivisions to contract
2-10 with the district, the legislature has established a program to
2-11 accomplish the public purposes set out in Section 52-a, Article
2-12 III, Texas Constitution.
2-13 Sec. 376.303. DEFINITIONS. In this subchapter:
2-14 (1) "Board" means the board of directors of the
2-15 district.
2-16 (2) "County" means Harris County, Texas.
2-17 (3) "District" means the East Downtown Management
2-18 District.
2-19 (4) "Municipality" means the City of Houston, Texas.
2-20 (5) "Utility" means a person that provides to the
2-21 public cable television, gas, light, power, telephone, sewage, or
2-22 water service.
2-23 Sec. 376.304. BOUNDARIES. The district includes all the
2-24 territory contained in the following described area:
2-25 Being all of the following described property in the J. Wells
2-26 Survey, Abstract 832, the S.M. Williams Survey, Abstract 87, the H.
2-27 Tierwester Survey, Abstract 76, the L. Moore Survey, Abstract 51
3-1 and the J. Holman Survey, Abstract 323, Harris County, Texas, being
3-2 more particularly described by metes and bounds as follows:
3-3 BEGINNING AT A POINT at the intersection of the centerline of
3-4 the right of way of the HB&T Railway and the centerline of the
3-5 right of way of Interstate 45 South,
3-6 Thence in a northwesterly direction with the centerline of
3-7 the right of way of Interstate 45 South to the point of
3-8 intersection with the centerline of the right of way of U.S.
3-9 Highway 59,
3-10 Thence in a northeasterly direction with the centerline of
3-11 the right of way of U.S. Highway 59 to the point of intersection
3-12 with the centerline of the right of way of Clay Street,
3-13 Thence in a southeasterly direction with the centerline of
3-14 the right of way of Clay Street to the point of intersection with
3-15 the centerline of the right of way of Chartres Street,
3-16 Thence in a northeasterly direction with the centerline of
3-17 the right of way of Chartres Street to the point of intersection
3-18 with the centerline of the right of way of Commerce Street,
3-19 Thence in a southeasterly direction with the centerline of
3-20 the right of way of Commerce Street to the point of intersection
3-21 with the centerline of the HB&T Railway, that also being the
3-22 boundary of Texas House District 147,
3-23 Thence in a southeasterly direction with the centerline of
3-24 the right of way of the HB&T Railway to the point of intersection
3-25 with the centerline of the right of way of Harrisburg Boulevard,
3-26 that also being the boundary of Texas House District 147,
3-27 Thence in a southeasterly direction with the centerline of
4-1 the right of way of Harrisburg Boulevard to the point of
4-2 intersection with the centerline of the right of way of Velasco
4-3 Street, that also being the boundary of Texas House District 147,
4-4 Thence in a southerly direction with the centerline of the
4-5 right of way of Velasco Street to the point of intersection with
4-6 the centerline of the right of way of Texas Avenue, that also being
4-7 the boundary of Texas House District 147,
4-8 Thence in a southeasterly direction with the centerline of
4-9 the right of way of Texas Avenue to the point of intersection with
4-10 the centerline of the right of way of Sampson Street, that also
4-11 being the boundary of Texas House District 147,
4-12 Thence in a southerly direction with the centerline of the
4-13 right of way of Sampson Street to the point of intersection with
4-14 the centerline of the right of way of the HB&T Railway, that also
4-15 being the boundary of Texas House District 147,
4-16 Thence in a southeasterly direction with the centerline of
4-17 the right of way of the HB&T Railway to the Point of Beginning.
4-18 Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. The
4-19 boundaries and field notes of the district form a closure. If a
4-20 mistake is made in the field notes or in copying the field notes in
4-21 the legislative process, the mistake does not in any way affect
4-22 the:
4-23 (1) organization, existence, and validity of the
4-24 district;
4-25 (2) right of the district to issue any type of bonds
4-26 or refunding bonds for the purposes for which the district is
4-27 created or to pay the principal of and interest on the bonds;
5-1 (3) right of the district to impose and collect
5-2 assessments or taxes; or
5-3 (4) legality or operation of the district or its
5-4 governing body.
5-5 Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
5-6 All the land and other property included in the district will be
5-7 benefited by the improvements and services to be provided by the
5-8 district under powers conferred by Section 52, Article III, Section
5-9 59, Article XVI, and Section 52-a, Article III, Texas Constitution,
5-10 and other powers granted under this subchapter, and the district is
5-11 created to serve a public use and benefit.
5-12 (b) The creation of the district is in the public interest
5-13 and is essential to:
5-14 (1) further the public purposes of the development and
5-15 diversification of the economy of the state; and
5-16 (2) eliminate unemployment and underemployment and
5-17 develop or expand transportation and commerce.
5-18 (c) The district will:
5-19 (1) promote the health, safety, and general welfare of
5-20 residents, employers, employees, visitors, consumers in the
5-21 district, and the general public;
5-22 (2) provide needed funding for the east downtown area
5-23 of the city of Houston to preserve, maintain, and enhance the
5-24 economic health and vitality of the area as a community and
5-25 business center;
5-26 (3) further promote the health, safety, welfare, and
5-27 enjoyment of the public by providing pedestrian ways and by
6-1 landscaping and developing certain areas in the district, which are
6-2 necessary for the restoration, preservation, and enhancement of
6-3 scenic and aesthetic beauty; and
6-4 (4) further eliminate unemployment and underemployment
6-5 and develop or expand transportation and commerce by providing or
6-6 by participating with other entities and educational institutions
6-7 in the establishment, equipping, financing, and operation of
6-8 workforce development, workforce education, and job training
6-9 opportunities.
6-10 (d) Pedestrian ways along or across a street, whether at
6-11 grade or above or below the surface, and street lighting, street
6-12 landscaping, and street art objects are parts of and necessary
6-13 components of a street and are considered to be a street or road
6-14 improvement.
6-15 (e) The district will not act as the agent or
6-16 instrumentality of any private interest even though many private
6-17 interests will be benefited by the district, as will the general
6-18 public.
6-19 Sec. 376.307. APPLICATION OF OTHER LAW. Except as otherwise
6-20 provided by this subchapter, Chapter 375 applies to the district.
6-21 Sec. 376.308. CONSTRUCTION OF SUBCHAPTER. This subchapter
6-22 shall be liberally construed in conformity with the findings and
6-23 purposes stated in this subchapter.
6-24 Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. (a) The
6-25 district is governed by a board of 17 directors who serve staggered
6-26 terms of four years, with nine members' terms expiring June 1 of an
6-27 odd-numbered year and eight members' terms expiring June 1 of the
7-1 following odd-numbered year. The board may increase or decrease
7-2 the number of directors on the board by resolution, provided that
7-3 it is in the best interest of the district to do so and that the
7-4 board consists of not fewer than 9 and not more than 30 directors.
7-5 (b) Subchapter D, Chapter 375, applies to the board to the
7-6 extent that subchapter does not conflict with this subchapter. The
7-7 imposition of a tax, assessment, or impact fee requires a vote of a
7-8 majority of the directors serving. Directors may vote on any
7-9 matter authorized by Subchapter D, Chapter 375, and action may be
7-10 taken by the board only if it is approved in the manner prescribed
7-11 by Subchapter D, Chapter 375.
7-12 Sec. 376.310. APPOINTMENT OF DIRECTORS; VACANCY. The mayor
7-13 and members of the governing body of the municipality shall appoint
7-14 directors from persons recommended by the board who meet the
7-15 qualifications of Subchapter D, Chapter 375. A vacancy in the
7-16 office of director because of the death, resignation, or removal of
7-17 a director shall be filled by the remaining members of the board by
7-18 appointing a qualified person for the unexpired term.
7-19 Sec. 376.311. POWERS OF DISTRICT. The district has:
7-20 (1) all powers necessary or required to accomplish the
7-21 purposes for which the district was created;
7-22 (2) the rights, powers, privileges, authority, and
7-23 functions of a district created under Chapter 375;
7-24 (3) the powers given to a corporation under Section
7-25 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
7-26 Texas Civil Statutes), and the power to own, operate, acquire,
7-27 construct, lease, improve, and maintain projects;
8-1 (4) the power to impose ad valorem taxes, assessments,
8-2 or impact fees in accordance with Chapter 375 to provide
8-3 improvements and services for a project or activity the district is
8-4 authorized to acquire, construct, improve, or provide under this
8-5 subchapter; and
8-6 (5) the power to correct, add to, or delete
8-7 assessments from its assessment rolls after notice and hearing as
8-8 provided by Subchapter F, Chapter 375.
8-9 Sec. 376.312. EMINENT DOMAIN. The district may not
8-10 exercise the power of eminent domain.
8-11 Sec. 376.313. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
8-12 AFFECTING PROPERTY. (a) If the district, in exercising a power
8-13 conferred by this subchapter, requires a relocation, adjustment,
8-14 raising, lowering, rerouting, or changing of the grade or the
8-15 construction of any of the following items, the district must take
8-16 that required action at the sole expense of the district:
8-17 (1) a street, alley, highway, overpass, underpass,
8-18 road, railroad track, bridge, facility, or other property;
8-19 (2) an electric line, conduit, facility, or other
8-20 property;
8-21 (3) a telephone or telegraph line, conduit, facility,
8-22 or other property;
8-23 (4) a gas transmission or distribution pipe, pipeline,
8-24 main, facility, or other property;
8-25 (5) a water, sanitary sewer, or storm sewer pipe,
8-26 pipeline, main, facility, or other property;
8-27 (6) a cable television line, cable, conduit, facility,
9-1 or other property; or
9-2 (7) another pipeline, facility, or other property
9-3 relating to the pipeline.
9-4 (b) The district shall bear damages that are suffered by
9-5 owners of the facility or other property.
9-6 Sec. 376.314. RELATION TO OTHER LAW. If any provision of
9-7 general law, including a law referenced in this subchapter, is in
9-8 conflict with or is inconsistent with this subchapter, this
9-9 subchapter prevails. Any law referenced in this subchapter that is
9-10 not in conflict or inconsistent with this subchapter is adopted and
9-11 incorporated by reference.
9-12 Sec. 376.315. REQUIREMENTS FOR FINANCING SERVICES AND
9-13 IMPROVEMENTS. The board may not finance services and improvement
9-14 projects under this subchapter unless a written petition requesting
9-15 those improvements or services has been filed with the board. The
9-16 petition must be signed by:
9-17 (1) the owners of a majority of the assessed value of
9-18 real property in the district as determined by the most recent
9-19 certified county property tax rolls; or
9-20 (2) at least 50 persons who own land in the district,
9-21 if there are more than 50 persons who own property in the district
9-22 as determined by the most recent certified county property tax
9-23 rolls.
9-24 Sec. 376.316. NONPROFIT CORPORATION. (a) The board by
9-25 resolution may authorize the creation of a nonprofit corporation to
9-26 assist and act on behalf of the district in implementing a project
9-27 or providing a service authorized by this subchapter.
10-1 (b) The board shall appoint the board of directors of a
10-2 nonprofit corporation created under this section. The board of
10-3 directors of the nonprofit corporation shall serve in the same
10-4 manner as, for the same term as, and on the conditions of the board
10-5 of directors of a local government corporation created under
10-6 Chapter 431, Transportation Code.
10-7 (c) A nonprofit corporation created under this section has
10-8 the powers of and is considered for purposes of this subchapter to
10-9 be a local government corporation created under Chapter 431,
10-10 Transportation Code.
10-11 (d) A nonprofit corporation created under this section may
10-12 implement any project and provide any services authorized by this
10-13 subchapter.
10-14 Sec. 376.317. DISBURSEMENTS OR TRANSFERS OF FUNDS. The
10-15 board by resolution shall establish the number of directors'
10-16 signatures and the procedure required for a disbursement or
10-17 transfer of the district's money.
10-18 Sec. 376.318. BONDS. (a) The district may issue bonds or
10-19 other obligations payable in whole or in part from ad valorem
10-20 taxes, assessments, impact fees, revenues, grants, or other money
10-21 of the district, or any combination of those sources of money, to
10-22 pay for any authorized purpose of the district.
10-23 (b) Bonds or other obligations of the district may be issued
10-24 in the form of bonds, notes, certificates of participation,
10-25 including other instruments evidencing a proportionate interest in
10-26 payments to be made by the district, or other obligations that are
10-27 issued in the exercise of the district's borrowing power and may be
11-1 issued in bearer or registered form or not represented by an
11-2 instrument but the transfer of which is registered on books
11-3 maintained by or on behalf of the district. The board may impose
11-4 and collect an assessment under Subchapter F, Chapter 375, for any
11-5 purpose authorized by this subchapter or by Chapter 375.
11-6 (c) Except as provided by Subsection (d), the district must
11-7 obtain the municipality's approval of:
11-8 (1) the issuance of bonds for an improvement project;
11-9 (2) the plans and specifications of the improvement
11-10 project to be financed by the bonds; and
11-11 (3) the plans and specifications of a district
11-12 improvement project related to:
11-13 (A) the use of land owned by the municipality;
11-14 (B) an easement granted by the municipality; or
11-15 (C) a right-of-way of a street, road, or
11-16 highway.
11-17 (d) If the district obtains the municipality's approval of a
11-18 capital improvements budget for a specified period not to exceed
11-19 five years, the district may finance the capital improvements and
11-20 issue bonds specified in the budget without further municipal
11-21 approval.
11-22 (e) Before the district issues bonds, the district shall
11-23 submit the bonds and the record of proceedings of the district
11-24 relating to authorization of the bonds to the attorney general for
11-25 approval as provided by Chapter 53, Acts of the 70th Legislature,
11-26 2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil
11-27 Statutes).
12-1 Sec. 376.319. ASSESSMENTS. (a) The board may impose and
12-2 collect an assessment for any purpose authorized by this
12-3 subchapter.
12-4 (b) Assessments, reassessments, or assessments resulting
12-5 from an addition to or correction of the assessment roll by the
12-6 district, penalties and interest on an assessment or reassessment,
12-7 expenses of collection, and reasonable attorney's fees incurred by
12-8 the district:
12-9 (1) are a first and prior lien against the property
12-10 assessed;
12-11 (2) are superior to any other lien or claim other than
12-12 a lien or claim for county, school district, or municipal ad
12-13 valorem taxes; and
12-14 (3) are the personal liability of and charge against
12-15 the owners of the property even if the owners are not named in the
12-16 assessment proceedings.
12-17 (c) The lien is effective from the date of the resolution of
12-18 the board levying the assessment until the assessment is paid. The
12-19 board may enforce the lien in the same manner that the board may
12-20 enforce an ad valorem tax lien against real property.
12-21 Sec. 376.320. PROPERTY EXEMPTED FROM TAX, FEE, OR
12-22 ASSESSMENT. (a) The district may not impose a tax, impact fee, or
12-23 assessment on a residential property, multiunit residential
12-24 property, or condominium.
12-25 (b) The district may not impose an impact fee or assessment
12-26 on the property, equipment, or facilities of a utility.
12-27 Sec. 376.321. ELECTIONS. (a) In addition to the elections
13-1 the district must hold under Subchapter L, Chapter 375, the
13-2 district shall hold an election in the manner provided by that
13-3 subchapter to obtain voter approval before the district imposes a
13-4 maintenance tax or issues bonds payable from ad valorem taxes or
13-5 assessments.
13-6 (b) The board may submit multiple purposes in a single
13-7 proposition at an election.
13-8 Sec. 376.322. IMPACT FEES. The district may impose an
13-9 impact fee for an authorized purpose as provided by Subchapter G,
13-10 Chapter 375.
13-11 Sec. 376.323. MAINTENANCE TAX. (a) If authorized at an
13-12 election held in accordance with Section 376.321, the district may
13-13 impose and collect an annual ad valorem tax on taxable property in
13-14 the district for the maintenance and operation of the district and
13-15 the improvements constructed or acquired by the district or for the
13-16 provision of services.
13-17 (b) The board shall determine the tax rate.
13-18 Sec. 376.324. WORKFORCE DEVELOPMENT SERVICES AND PROJECTS.
13-19 (a) As soon as possible after its creation, the district shall
13-20 develop and implement a plan for workforce development services.
13-21 The services may include:
13-22 (1) job training;
13-23 (2) workforce education;
13-24 (3) financing of special educational opportunities;
13-25 (4) student summer work programs; or
13-26 (5) other projects that promote workforce development.
13-27 (b) The district's initial plan under Subsection (a) must
14-1 be for a period of at least five years. For the first five years
14-2 of the plan, the district shall allocate to the services listed in
14-3 Subsection (a) not less than three percent of its assessment
14-4 revenues.
14-5 (c) The district may develop and implement additional plans
14-6 under Subsection (a).
14-7 (d) To assist in implementing this section, the district
14-8 may:
14-9 (1) accept a donation, grant, or loan from any person;
14-10 (2) work with schools of all levels;
14-11 (3) work with any person that provides workforce
14-12 development funds or projects; or
14-13 (4) participate with other entities.
14-14 Sec. 376.325. DISSOLUTION OF DISTRICT. The district may be
14-15 dissolved as provided by Subchapter M, Chapter 375. If the
14-16 district has debt and is dissolved, the district shall remain in
14-17 existence solely for the limited purpose of discharging its bonds
14-18 or other obligations according to their terms.
14-19 Sec. 376.326. CONTRACTS. (a) To protect the public
14-20 interest, the district may contract with the municipality or the
14-21 county for the municipality or county to provide law enforcement
14-22 services in the district for a fee.
14-23 (b) The municipality, the county, or another political
14-24 subdivision of the state, without further authorization, may
14-25 contract with the district to implement a project of the district
14-26 or assist the district in providing the services authorized under
14-27 this subchapter. A contract under this subsection may:
15-1 (1) be for a period on which the parties agree;
15-2 (2) include terms on which the parties agree;
15-3 (3) be payable from taxes or any other sources of
15-4 revenue that may be available for that purpose; or
15-5 (4) provide that taxes or other revenue collected at a
15-6 district project or from a person using or purchasing a commodity
15-7 or service at a district project may be paid or rebated to the
15-8 district under the terms of the contract.
15-9 (c) The district may enter into a contract, lease, or other
15-10 agreement with or make or accept grants and loans to or from:
15-11 (1) the United States;
15-12 (2) the state or a state agency;
15-13 (3) a county, a municipality, or another political
15-14 subdivision of the state;
15-15 (4) a public or private corporation, including a
15-16 nonprofit corporation created by the board under this subchapter;
15-17 or
15-18 (5) any other person.
15-19 (d) The district may perform all acts necessary for the full
15-20 exercise of the powers vested in the district on terms and for the
15-21 period the board determines advisable.
15-22 SECTION 2. The legislature finds that:
15-23 (1) proper and legal notice of the intention to
15-24 introduce this Act, setting forth the general substance of this
15-25 Act, has been published as provided by law, and the notice and a
15-26 copy of this Act have been furnished to all persons, agencies,
15-27 officials, or entities to which they are required to be furnished
16-1 by the constitution and laws of this state, including the governor,
16-2 who has submitted the notice and Act to the Texas Natural Resource
16-3 Conservation Commission;
16-4 (2) the Texas Natural Resource Conservation Commission
16-5 has filed its recommendations relating to this Act with the
16-6 governor, lieutenant governor, and speaker of the house of
16-7 representatives within the required time;
16-8 (3) the general law relating to consent by political
16-9 subdivisions to the creation of districts with conservation,
16-10 reclamation, and road powers and the inclusion of land in those
16-11 districts has been complied with; and
16-12 (4) all requirements of the constitution and laws of
16-13 this state and the rules and procedures of the legislature with
16-14 respect to the notice, introduction, and passage of this Act have
16-15 been fulfilled and accomplished.
16-16 SECTION 3. Notwithstanding Section 376.309, Local Government
16-17 Code, as added by this Act:
16-18 (1) the initial board of directors of the East
16-19 Downtown Management District consists of:
16-20 Pos. No. Name of Director
16-21 1 Alfred Bennet
16-22 2 Charlie Chea
16-23 3 Peggy Foreman
16-24 4 Sean Gorman
16-25 5 Alan Gover
16-26 6 Tri La
16-27 7 Dan Nip
17-1 8 Grant Martin
17-2 9 Andy Moran
17-3 10 Bill Chu
17-4 11 Bob Eury
17-5 12 Wayne Galt
17-6 13 Dennis Greer
17-7 14 Ringo Kwan
17-8 15 Mark Lay
17-9 16 Al Odam
17-10 17 Roger Russel; and
17-11 (2) of the initial board, members in positions 1-9
17-12 serve terms that expire June 1, 2003, and members in positions
17-13 10-17 serve terms that expire June 1, 2001.
17-14 SECTION 4. The importance of this legislation and the
17-15 crowded condition of the calendars in both houses create an
17-16 emergency and an imperative public necessity that the
17-17 constitutional rule requiring bills to be read on three several
17-18 days in each house be suspended, and this rule is hereby suspended,
17-19 and that this Act take effect and be in force from and after its
17-20 passage, and it is so enacted.