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.