By:  Lindsay                                          S.B. No. 1866
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the creation of the Harris County Municipal Management
 1-2     District No. 1; providing authority to impose a tax and issue
 1-3     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.  HARRIS COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1
 1-8           Sec. 376.301.  CREATION OF DISTRICT.  (a)  The Harris County
 1-9     Municipal Management District No. 1 is created as a special
1-10     district under Section 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 district.
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 Harris County Municipal
2-15     Management District No. 1.
2-16                 (4)  "Municipality" means the City of Houston.
2-17                 (5)  "Utility" means a person that provides to the
2-18     public gas, electricity, telephone, sewage, or water service.
2-19           Sec. 376.304.  BOUNDARIES.  The district includes all the
2-20     territory contained within the following described area:
2-21           BEGINNING AT A POINT located at the intersection of the east
2-22     right-of-way line of Bunker Hill Road and the north right-of-way
2-23     line of Interstate Highway 10 frontage road, in the City of
2-24     Houston, Harris County, Texas;
2-25           THENCE, in a southerly direction crossing Interstate Highway
2-26     10 along the east right-of-way line of Bunker Hill Road to the
 3-1     extension of the south right-of-way line of Barryknoll Lane;
 3-2           THENCE, in a westerly direction following the south
 3-3     right-of-way line of Barryknoll Lane to the northwest corner of the
 3-4     Riedel Estates;
 3-5           THENCE, in a southerly direction approximately 1,050 feet
 3-6     following the west property line of Riedel Estates to the northeast
 3-7     corner of Memorial City Section 3;
 3-8           THENCE, in a westerly direction approximately 700 feet
 3-9     following the north property line of Memorial City Section 3 to the
3-10     west line of a H.C.F.C.D. easement;
3-11           THENCE, in a northerly direction approximately 840 feet
3-12     following the west line of H.C.F.C.D. easement to a point in the
3-13     north line of Memorial Hollow Section 8;
3-14           THENCE, in a west northwesterly direction approximately 625
3-15     feet following the north line of Memorial Hollow Section 8, to a
3-16     point in the south right-of-way line of Barryknoll Lane;
3-17           THENCE, in a westerly direction to the intersection of the
3-18     south right-of-way line of Barryknoll Lane and the east
3-19     right-of-way line of Plantation Road;
3-20           THENCE, in a southerly direction approximately 620 feet
3-21     following the east right-of-way line of Plantation Road to a point;
3-22           THENCE, in a west northwesterly direction approximately 820
3-23     feet, along the north property line of Memorial Hollow Section 7,
3-24     to a point on the west right-of-way line of Gessner Road;
3-25           THENCE, in a northerly direction approximately 600 feet
3-26     following the west right-of-way line of Gessner Road, to the
 4-1     northeast corner of Memorial Hollow Section 6 Replat;
 4-2           THENCE, in a westerly direction along the north property line
 4-3     of Memorial Hollow Section 6 Replat to the east right-of-way line
 4-4     Frostwood Drive;
 4-5           THENCE, in a southerly direction approximately 60 feet along
 4-6     a curve to the left, being the east right-of-way line of Frostwood
 4-7     Drive;
 4-8           THENCE, in a westerly direction approximately 450 feet along
 4-9     the north subdivision line to the northwest corner of Memorial
4-10     Hollow Section 5 Replat;
4-11           THENCE, in a northerly direction approximately 2,400 feet to
4-12     a point in the north right-of-way line of the Interstate Highway 10
4-13     frontage road;
4-14           THENCE, in an easterly direction along the north right-of-way
4-15     of Interstate Highway 10 frontage road approximately 5,400 feet to
4-16     the POINT OF BEGINNING.
4-17           AND FURTHER SAVE AND EXCEPT the subdivision known as Memorial
4-18     Village Townhouses Section 1 and Memorial Village Townhouses
4-19     Section 2, more particularly described by metes and bounds as
4-20     follows;
4-21           BEGINNING at a point approximately 190 feet west along the
4-22     north right-of-way of Barryknoll Lane from the intersection of
4-23     Barryknoll Lane and the west right-of-way line of Bunker Hill Road;
4-24           THENCE, in a westerly direction approximately 570 feet along
4-25     the north right-of-way of Barryknoll Lane to the southwest corner
4-26     of Memorial Village Townhouses Section 2;
 5-1           THENCE, in a northerly direction approximately 435 feet to a
 5-2     point for corner;
 5-3           THENCE, in an easterly direction approximately 180 feet to a
 5-4     point for corner;
 5-5           THENCE, in a northerly direction approximately 136 feet to a
 5-6     point for corner;
 5-7           THENCE, in a westerly direction approximately 183 feet to a
 5-8     point for corner;
 5-9           THENCE, in a northerly direction approximately 405 feet to
5-10     the northeast corner of Memorial City Terrace Replat to a point for
5-11     corner;
5-12           THENCE, in an easterly direction approximately 770 feet to a
5-13     point in the west right-of-way line of Bunker Hill Road;
5-14           THENCE, in a southerly direction approximately 60 feet along
5-15     the west right-of-way of Bunker Hill Road to a point for corner;
5-16           THENCE, in a westerly direction approximately 200 feet to a
5-17     point for corner;
5-18           THENCE, in a southerly direction approximately 920 feet to
5-19     the north right-of-way line on Barryknoll Lane and being the POINT
5-20     OF BEGINNING.
5-21           SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
5-22     facilities, and improvements owned by a utility.
5-23           Sec. 376.305.  FINDINGS RELATING TO BOUNDARIES.  The
5-24     boundaries and field notes of the district form a closure.  If a
5-25     mistake is made in the field notes or in copying the field notes in
5-26     the legislative process, it does not affect the district's:
 6-1                 (1)  organization, existence, or validity;
 6-2                 (2)  right to issue any type of bond for the purposes
 6-3     for which the district is created or to pay the principal of and
 6-4     interest on a bond;
 6-5                 (3)  right to impose or collect an assessment or taxes;
 6-6     or
 6-7                 (4)  legality or operation.
 6-8           Sec. 376.306.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
 6-9     (a)  All the land and other property included in the district will
6-10     be benefited by the improvements and services to be provided by the
6-11     district under powers conferred by Sections 52 and 52-a, Article
6-12     III, and Section 59, Article XVI, Texas Constitution, and other
6-13     powers granted under this subchapter, and the district is created
6-14     to serve a public use and benefit.
6-15           (b)  The creation of the district is in the public interest
6-16     and is essential to:
6-17                 (1)  further the public purposes of the development and
6-18     diversification of the economy of the state; and
6-19                 (2)  eliminate unemployment and underemployment and
6-20     develop or expand transportation and commerce.
6-21           (c)  The district will:
6-22                 (1)  promote the health, safety, and general welfare of
6-23     residents, employers, employees, visitors, consumers in the
6-24     district, and the general public;
6-25                 (2)  provide needed funding to preserve, maintain, and
6-26     enhance the economic health and vitality of the area as a community
 7-1     and business center; and
 7-2                 (3)  further promote the health, safety, welfare, and
 7-3     enjoyment of the public by providing pedestrian ways and by
 7-4     landscaping and developing certain areas in the district, which are
 7-5     necessary for the restoration, preservation, and enhancement of
 7-6     scenic and aesthetic beauty.
 7-7           (d)  Pedestrian ways along or across a street, whether at
 7-8     grade or above or below the surface, and street lighting, street
 7-9     landscaping, and street art objects are parts of and necessary
7-10     components of a street and are considered to be a street or road
7-11     improvement.
7-12           (e)  The district may not act as the agent or instrumentality
7-13     of any private interest even though many private interests will be
7-14     benefited by the district, as will the general public.
7-15           Sec. 376.307.  APPLICATION OF OTHER LAW.  Except as otherwise
7-16     provided by this subchapter, Chapter 375 applies to the district.
7-17           Sec. 376.308.  LIBERAL CONSTRUCTION OF SUBCHAPTER.  This
7-18     subchapter shall be liberally construed in conformity with the
7-19     findings and purposes stated in this subchapter.
7-20           Sec. 376.309.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
7-21     district is governed by a board of 11 directors who serve staggered
7-22     terms of four years.
7-23           (b)  A director shall receive compensation as provided by
7-24     Section 49.060, Water Code.
7-25           Sec. 376.310.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and
7-26     members of the governing body of the municipality shall appoint
 8-1     directors from persons recommended by the board.  A person is
 8-2     appointed if a majority of the members and the mayor vote to
 8-3     appoint that person.
 8-4           (b)  A person may not be appointed to the board if the
 8-5     appointment of that person would result in less than two-thirds of
 8-6     the directors residing in the municipality.
 8-7           Sec. 376.311.  EX OFFICIO BOARD MEMBERS.  (a)  The following
 8-8     persons shall serve as a nonvoting ex officio director:
 8-9                 (1)  the director of the following departments of the
8-10     municipality:
8-11                       (A)  parks and recreation;
8-12                       (B)  planning and development;
8-13                       (C)  public works; and
8-14                       (D)  civic center;
8-15                 (2)  the municipality's chief of police;
8-16                 (3)  the county's general manager of the Metropolitan
8-17     Transit Authority; and
8-18                 (4)  the presidents of any institutions of higher
8-19     learning located in the district.
8-20           (b)  If a department described by Subsection (a) is
8-21     consolidated, renamed, or changed, the board may appoint a director
8-22     of the consolidated, renamed, or changed department as a nonvoting
8-23     ex officio board member.  If a department described by Subsection
8-24     (a) is abolished, the board may appoint a representative of another
8-25     department of the municipality that performs duties comparable to
8-26     those performed by the abolished department.
 9-1           (c)  The board may appoint the presiding officer of a
 9-2     nonprofit corporation that is actively involved in activities in
 9-3     the municipality's midtown area to serve as a nonvoting ex officio
 9-4     director.
 9-5           Sec. 376.312.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
 9-6     (a)  Except as provided in this section:
 9-7                 (1)  a director may participate in all board votes and
 9-8     decisions; and
 9-9                 (2)  Chapter 171 governs conflict of interest for board
9-10     members.
9-11           (b)  Section 171.004 does not apply to the district.  A
9-12     director who has a substantial interest in a business or charitable
9-13     entity that will receive a pecuniary benefit from a board action
9-14     shall file a one-time affidavit declaring the interest.  An
9-15     additional affidavit is not required if the director's interest
9-16     changes.  After the affidavit is filed with the board secretary,
9-17     the director may participate in a discussion or vote on that action
9-18     if:
9-19                 (1)  a majority of the directors have a similar
9-20     interest in the same entity; or
9-21                 (2)  all other similar business or charitable entities
9-22     in the district will receive a similar pecuniary benefit.
9-23           (c)  A director who is also an officer or employee of a
9-24     public entity may not participate in the discussion of or vote on a
9-25     matter regarding a contract with that same public entity.
9-26           (d)  For purposes of this section, a director has a
 10-1    substantial interest in a charitable entity in the same manner that
 10-2    a person would have a substantial interest in a business entity
 10-3    under Section 171.002.
 10-4          Sec. 376.313.  ADDITIONAL POWERS OF DISTRICT.  (a)  The
 10-5    district may exercise the powers given to a corporation created
 10-6    under Section 4B, Development Corporation Act of 1979 (Article
 10-7    5190.6, Vernon's Texas Civil Statutes).
 10-8          (b)  The district may exercise the powers given to a housing
 10-9    finance corporation created under Chapter 394 to provide housing or
10-10    residential development projects in the district.
10-11          (c)  The district may exercise the powers granted to an
10-12    eligible political subdivision under Chapter 221, Natural Resources
10-13    Code.
10-14          (d)  The district may exercise its powers in areas outside
10-15    the boundaries of the district if the board determines that there
10-16    is a benefit to the district in exercising that power.
10-17          Sec. 376.314.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
10-18    AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
10-19    make an agreement with or accept a donation, grant, or loan from
10-20    any person.
10-21          (b)  The implementation of a project is a governmental
10-22    function or service for the purposes of Chapter 791, Government
10-23    Code.
10-24          (c)  To protect the public interest, the district may
10-25    contract with the municipality or the county for the municipality
10-26    or county to provide law enforcement services in the district for a
 11-1    fee.
 11-2          Sec. 376.315.  NONPROFIT CORPORATION.  (a)  The board by
 11-3    resolution may authorize the creation of a nonprofit corporation to
 11-4    assist and act on behalf of the district in implementing a project
 11-5    or providing a service authorized by this subchapter.
 11-6          (b)  The board shall appoint the board of directors of a
 11-7    nonprofit corporation created under this section.  The board of
 11-8    directors of the nonprofit corporation shall serve in the same
 11-9    manner, term, and conditions as a board of directors of a local
11-10    government corporation created under Chapter 431, Transportation
11-11    Code.
11-12          (c)  A nonprofit corporation created under this section has
11-13    the powers of and is considered for purposes of this subchapter to
11-14    be a local government corporation created under Chapter 431,
11-15    Transportation Code.
11-16          (d)  A nonprofit corporation created under this section may
11-17    implement any project and provide any service authorized by this
11-18    subchapter.
11-19          Sec. 376.316.  ANNEXATION.  The district may:
11-20                (1)  annex territory as provided by Subchapter C,
11-21    Chapter 375; and
11-22                (2)  annex territory located inside the boundaries of a
11-23    reinvestment zone created by the municipality under Chapter 311,
11-24    Tax Code, if the governing body of the municipality consents to the
11-25    annexation.
11-26          Sec. 376.317.  ASSESSMENTS.  (a)  The board may impose and
 12-1    collect an assessment for any purpose authorized by this
 12-2    subchapter.  The imposition of an assessment requires that
 12-3    two-thirds of the board members vote in favor of the imposition.
 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 levied by a county, municipality, school district,
12-13    or other political subdivision; 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. 376.318.  PETITION REQUIRED FOR FINANCING SERVICES AND
12-22    IMPROVEMENTS.  The board may not finance a service or improvement
12-23    project under this subchapter unless a written petition requesting
12-24    the improvement or service has been filed with the board.  The
12-25    petition must be signed by the owners of a majority of the assessed
12-26    value of real property in the district as determined by the most
 13-1    recent certified county property tax rolls.
 13-2          Sec. 376.319.  ELECTIONS.  (a)  In addition to the elections
 13-3    the district must hold under Subchapter L, Chapter 375, the
 13-4    district shall hold an election in the manner provided by that
 13-5    subchapter to obtain voter approval before the district imposes a
 13-6    maintenance tax or issues bonds payable from ad valorem taxes or
 13-7    assessments.
 13-8          (b)  The board may include more than one purpose in a single
 13-9    proposition at an election.
13-10          Sec. 376.320.  MAINTENANCE TAX.  (a)  The district may impose
13-11    and collect an annual ad valorem tax on taxable property in the
13-12    district for the maintenance and operation of the district and the
13-13    improvements constructed or acquired by the district or for the
13-14    provision of services only if:
13-15                (1)  two-thirds of the board members vote in favor of
13-16    imposing the tax; and
13-17                (2)  the tax is authorized at an election held in
13-18    accordance with Section 376.319.
13-19          (b)  The board shall determine the tax rate.
13-20          Sec. 376.321.  CERTAIN RESIDENTIAL PROPERTY IS NOT EXEMPT.
13-21    (a)  The board may not exempt a single-family residential property
13-22    from an impact fee, assessment, or tax imposed under this
13-23    subchapter.
13-24          (b)  Sections 375.161 and 375.164 do not apply to the
13-25    district.
13-26          Sec. 376.322.  UTILITIES.  The district may not impose an
 14-1    assessment or impact fee on a utility's property.
 14-2          Sec. 376.323.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
 14-3    board by resolution shall establish the number of directors'
 14-4    signatures and the procedure required for a disbursement or
 14-5    transfer of the district's money.
 14-6          Sec. 376.324.  COMPETITIVE BIDDING LIMIT.  Section 375.221
 14-7    does not apply to the district unless the contract is for more than
 14-8    $25,000.
 14-9          Sec. 376.325.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
14-10    OUTSTANDING DEBTS.  (a)  The board may vote to dissolve a district
14-11    that has debt.  If the vote is in favor of dissolution, the
14-12    district shall remain in existence solely for the limited purpose
14-13    of discharging its debts.  The dissolution is effective when all
14-14    debts have been discharged.
14-15          (b)  Section 375.264 does not apply to the district.
14-16          SECTION 2.  The legislature finds that:
14-17                (1)  proper and legal notice of the intention to
14-18    introduce this Act, setting forth the general substance of this
14-19    Act, has been published as provided by law, and the notice and a
14-20    copy of this Act have been furnished to all persons, agencies,
14-21    officials, or entities to which they are required to be furnished
14-22    by the constitution and laws of this state, including the governor,
14-23    who has submitted the notice and Act to the Texas Natural Resource
14-24    Conservation Commission;
14-25                (2)  the Texas Natural Resource Conservation Commission
14-26    has filed its recommendations relating to this Act with the
 15-1    governor, lieutenant governor, and speaker of the house of
 15-2    representatives within the required time;
 15-3                (3)  the general law relating to consent by political
 15-4    subdivisions to the creation of districts with conservation,
 15-5    reclamation, and road powers and the inclusion of land in those
 15-6    districts has been complied with; and
 15-7                (4)  all requirements of the constitution and laws of
 15-8    this state and the rules and procedures of the legislature with
 15-9    respect to the notice, introduction, and passage of this Act have
15-10    been fulfilled and accomplished.
15-11          SECTION 3.  Notwithstanding Section 376.310, Local Government
15-12    Code, as added by this Act:
15-13                (1)  the initial board of directors of the Harris
15-14    County Municipal Management District No. 1 consists of:
15-15                Pos. No.    Name of Board Member
15-16                1.          Bill Huntsinger
15-17                2.          Jana Lee
15-18                3.          Kathy Miller
15-19                4.          Randy Nerren
15-20                5.          Lisa Zinis
15-21                6.          Marshall Heins
15-22                7.          Larry Beerman
15-23                8.          John Chang
15-24                9.          Gracie Saenz
15-25                10.         Billy Reed
15-26                11.         Bill Mosley; and
 16-1                (2)  of the initial board members, the members
 16-2    appointed for positions 1 through 6 serve until June 1, 2003, and
 16-3    the members appointed for positions 7 through 11 serve until June
 16-4    1, 2001.
 16-5          SECTION 4.  The importance of this legislation and the
 16-6    crowded condition of the calendars in both houses create an
 16-7    emergency and an imperative public necessity that the
 16-8    constitutional rule requiring bills to be read on three several
 16-9    days in each house be suspended, and this rule is hereby suspended,
16-10    and that this Act take effect and be in force from and after its
16-11    passage, and it is so enacted.