By Coleman H.B. No. 3799 76R9698 MXM-D 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 13 directors who serve staggered 6-26 terms of four years, with six members' terms expiring June 1 of an 6-27 odd-numbered year and seven 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. Not later than October 1, 1999, the mayor and 16-17 governing body of Houston shall appoint the initial members of the 16-18 board of directors of the East Downtown Management District. 16-19 Directors must meet the qualifications of Subchapter D, Chapter 16-20 375, Local Government Code. The initial terms shall be staggered 16-21 so that six expire on June 1, 2001, and seven expire on June 1, 16-22 2003. 16-23 SECTION 4. The importance of this legislation and the 16-24 crowded condition of the calendars in both houses create an 16-25 emergency and an imperative public necessity that the 16-26 constitutional rule requiring bills to be read on three several 16-27 days in each house be suspended, and this rule is hereby suspended, 17-1 and that this Act take effect and be in force from and after its 17-2 passage, and it is so enacted.