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.