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 1-8 DISTRICT NO. 1 1-9 Sec. 376.301. CREATION OF DISTRICT. (a) The Harris County 1-10 Municipal Management District No. 1 is created as a special 1-11 district under Section 59, Article XVI, Texas Constitution. 1-12 (b) The board by resolution may change the district's name. 1-13 (c) The creation of the district is essential to accomplish 1-14 the purposes of Sections 52 and 52-a, Article III, and Section 59, 1-15 Article XVI, Texas Constitution, and other public purposes stated 1-16 in this subchapter. 1-17 Sec. 376.302. DECLARATION OF INTENT. (a) The creation of 1-18 the district is necessary to promote, develop, encourage, and 1-19 maintain employment, commerce, transportation, housing, tourism, 1-20 recreation, arts, entertainment, economic development, safety, and 1-21 the public welfare in the district. 1-22 (b) The creation of the district and this legislation are 1-23 not to be interpreted to relieve the county or the municipality 1-24 from providing the level of services, as of the effective date of 2-1 this subchapter, to the area in the district or to release the 2-2 county or the municipality from the obligations each entity has to 2-3 provide services to that area. The district is created to 2-4 supplement and not supplant the municipal or county services 2-5 provided in the area in the district. 2-6 (c) By creating the district and in authorizing the 2-7 municipality, county, and other political subdivisions to contract 2-8 with the district, the legislature has established a program to 2-9 accomplish the public purposes set out in Section 52-a, Article 2-10 III, Texas Constitution. 2-11 Sec. 376.303. DEFINITIONS. In this subchapter: 2-12 (1) "Board" means the board of directors of the 2-13 district. 2-14 (2) "County" means Harris County. 2-15 (3) "District" means the Harris County Municipal 2-16 Management District No. 1. 2-17 (4) "Municipality" means the City of Houston. 2-18 (5) "Utility" means a person that provides to the 2-19 public gas, electricity, telephone, sewage, or water service. 2-20 Sec. 376.304. BOUNDARIES. The district includes all the 2-21 territory contained within the following described area: 2-22 BEGINNING AT A POINT located at the intersection of the east 2-23 right-of-way line of Bunker Hill Road and the north right-of-way 2-24 line of Interstate Highway 10 frontage road, in the City of 2-25 Houston, Harris County, Texas; 2-26 THENCE, in a southerly direction crossing Interstate Highway 3-1 10 along the east right-of-way line of Bunker Hill Road to the 3-2 extension of the south right-of-way line of Barryknoll Lane; 3-3 THENCE, in a westerly direction following the south 3-4 right-of-way line of Barryknoll Lane to the northwest corner of the 3-5 Riedel Estates; 3-6 THENCE, in a southerly direction approximately 930 feet 3-7 following the west property line of Riedel Estates; 3-8 THENCE, in a westerly direction approximately 625 feet 3-9 following the north right-of-way line of Kimberly Lane to the east 3-10 boundary of a H.C.F.C.D. easement; 3-11 THENCE, in a northerly direction approximately 690 feet 3-12 following the east boundary line of a H.C.F.C.D. easement to a 3-13 point being an intersection of the east line of said ditch with the 3-14 southeasterly projection of the north line of Memorial Hollow 3-15 Section 8; 3-16 THENCE, in a west northwesterly direction approximately 625 3-17 feet following the north line of Memorial Hollow Section 8, to a 3-18 point in the south right-of-way line of Barryknoll Lane; 3-19 THENCE, in a westerly direction to the intersection of the 3-20 south right-of-way line of Barryknoll Lane and the east 3-21 right-of-way line of Plantation Road; 3-22 THENCE, in a southerly direction approximately 620 feet 3-23 following the east right-of-way line of Plantation Road to a point; 3-24 THENCE, in a west northwesterly direction approximately 820 3-25 feet, along the north property line of Memorial Hollow Section 7, 3-26 to a point on the west right-of-way line of Gessner Road; 4-1 THENCE, in a northerly direction approximately 600 feet 4-2 following the west right-of-way line of Gessner Road, to the 4-3 northeast corner of Memorial Hollow Section 6 Replat; 4-4 THENCE, in a westerly direction along the north property line 4-5 of Memorial Hollow Section 6 Replat to the east right-of-way line 4-6 Frostwood Drive; 4-7 THENCE, in a southerly direction approximately 60 feet along 4-8 a curve to the left, being the east right-of-way line of Frostwood 4-9 Drive; 4-10 THENCE, in a westerly direction approximately 450 feet along 4-11 the north subdivision line to the northwest corner of Memorial 4-12 Hollow Section 5 Replat; 4-13 THENCE, in a northerly direction approximately 2,400 feet to 4-14 a point in the north right-of-way line of the Interstate Highway 10 4-15 frontage road; 4-16 THENCE, in an easterly direction along the north right-of-way 4-17 of Interstate Highway 10 frontage road approximately 5,400 feet to 4-18 the POINT OF BEGINNING. 4-19 SAVE AND EXCEPT the subdivision known as Memorial Village 4-20 Townhouses Section 1 and Memorial Village Townhouses Section 2, 4-21 more particularly described by metes and bounds as follows; 4-22 BEGINNING at a point approximately 190 feet west along the 4-23 north right-of-way of Barryknoll Lane from the intersection of 4-24 Barryknoll Lane and the west right-of-way line of Bunker Hill Road; 4-25 THENCE, in a westerly direction approximately 570 feet along 4-26 the north right-of-way of Barryknoll Lane to the southwest corner 5-1 of Memorial Village Townhouses Section 2; 5-2 THENCE, in a northerly direction approximately 435 feet to a 5-3 point for corner; 5-4 THENCE, in an easterly direction approximately 180 feet to a 5-5 point for corner; 5-6 THENCE, in a northerly direction approximately 136 feet to a 5-7 point for corner; 5-8 THENCE, in a westerly direction approximately 183 feet to a 5-9 point for corner; 5-10 THENCE, in a northerly direction approximately 405 feet to 5-11 the northeast corner of Memorial City Terrace Replat to a point for 5-12 corner; 5-13 THENCE, in an easterly direction approximately 770 feet to a 5-14 point in the west right-of-way line of Bunker Hill Road; 5-15 THENCE, in a southerly direction approximately 60 feet along 5-16 the west right-of-way of Bunker Hill Road to a point for corner; 5-17 THENCE, in a westerly direction approximately 200 feet to a 5-18 point for corner; 5-19 THENCE, in a southerly direction approximately 920 feet to 5-20 the north right-of-way line on Barryknoll Lane and being the POINT 5-21 OF BEGINNING. 5-22 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, 5-23 facilities, and improvements owned by a utility. 5-24 Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. The 5-25 boundaries and field notes of the district form a closure. If a 5-26 mistake is made in the field notes or in copying the field notes in 6-1 the legislative process, it does not affect the district's: 6-2 (1) organization, existence, or validity; 6-3 (2) right to issue any type of bond for the purposes 6-4 for which the district is created or to pay the principal of and 6-5 interest on a bond; 6-6 (3) right to impose or collect an assessment or taxes; 6-7 or 6-8 (4) legality or operation. 6-9 Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. 6-10 (a) All the land and other property included in the district will 6-11 be benefited by the improvements and services to be provided by the 6-12 district under powers conferred by Sections 52 and 52-a, Article 6-13 III, and Section 59, Article XVI, Texas Constitution, and other 6-14 powers granted under this subchapter, and the district is created 6-15 to serve a public use and benefit. 6-16 (b) The creation of the district is in the public interest 6-17 and is essential to: 6-18 (1) further the public purposes of the development and 6-19 diversification of the economy of the state; and 6-20 (2) eliminate unemployment and underemployment and 6-21 develop or expand transportation and commerce. 6-22 (c) The district will: 6-23 (1) promote the health, safety, and general welfare of 6-24 residents, employers, employees, visitors, consumers in the 6-25 district, and the general public; 6-26 (2) provide needed funding to preserve, maintain, and 7-1 enhance the economic health and vitality of the area as a community 7-2 and business center; and 7-3 (3) further promote the health, safety, welfare, and 7-4 enjoyment of the public by providing pedestrian ways and by 7-5 landscaping and developing certain areas in the district, which are 7-6 necessary for the restoration, preservation, and enhancement of 7-7 scenic and aesthetic beauty. 7-8 (d) Pedestrian ways along or across a street, whether at 7-9 grade or above or below the surface, and street lighting, street 7-10 landscaping, and street art objects are parts of and necessary 7-11 components of a street and are considered to be a street or road 7-12 improvement. 7-13 (e) The district may not act as the agent or instrumentality 7-14 of any private interest even though many private interests will be 7-15 benefited by the district, as will the general public. 7-16 Sec. 376.307. APPLICATION OF OTHER LAW. Except as otherwise 7-17 provided by this subchapter, Chapter 375 applies to the district. 7-18 Sec. 376.308. LIBERAL CONSTRUCTION OF SUBCHAPTER. This 7-19 subchapter shall be liberally construed in conformity with the 7-20 findings and purposes stated in this subchapter. 7-21 Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. (a) The 7-22 district is governed by a board of 11 directors who serve staggered 7-23 terms of four years. 7-24 (b) A director shall receive compensation as provided by 7-25 Section 49.060, Water Code. 7-26 Sec. 376.310. APPOINTMENT OF DIRECTORS. (a) The mayor and 8-1 members of the governing body of the municipality shall appoint 8-2 directors from persons recommended by the board. A person is 8-3 appointed if a majority of the members and the mayor vote to 8-4 appoint that person. 8-5 (b) A person may not be appointed to the board if the 8-6 appointment of that person would result in less than two-thirds of 8-7 the directors residing in the municipality. 8-8 Sec. 376.311. EX OFFICIO BOARD MEMBERS. (a) The following 8-9 persons shall serve as a nonvoting ex officio director: 8-10 (1) the director of the following departments of the 8-11 municipality: 8-12 (A) parks and recreation; 8-13 (B) planning and development; 8-14 (C) public works; and 8-15 (D) civic center; 8-16 (2) the municipality's chief of police; 8-17 (3) the county's general manager of the Metropolitan 8-18 Transit Authority; and 8-19 (4) the presidents of any institutions of higher 8-20 learning located in the district. 8-21 (b) If a department described by Subsection (a) is 8-22 consolidated, renamed, or changed, the board may appoint a director 8-23 of the consolidated, renamed, or changed department as a nonvoting 8-24 ex officio board member. If a department described by Subsection 8-25 (a) is abolished, the board may appoint a representative of another 8-26 department of the municipality that performs duties comparable to 9-1 those performed by the abolished department. 9-2 (c) The board may appoint the presiding officer of a 9-3 nonprofit corporation that is actively involved in activities in 9-4 the municipality's midtown area to serve as a nonvoting ex officio 9-5 director. 9-6 Sec. 376.312. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. 9-7 (a) Except as provided in this section: 9-8 (1) a director may participate in all board votes and 9-9 decisions; and 9-10 (2) Chapter 171 governs conflict of interest for board 9-11 members. 9-12 (b) Section 171.004 does not apply to the district. A 9-13 director who has a substantial interest in a business or charitable 9-14 entity that will receive a pecuniary benefit from a board action 9-15 shall file a one-time affidavit declaring the interest. An 9-16 additional affidavit is not required if the director's interest 9-17 changes. After the affidavit is filed with the board secretary, 9-18 the director may participate in a discussion or vote on that action 9-19 if: 9-20 (1) a majority of the directors have a similar 9-21 interest in the same entity; or 9-22 (2) all other similar business or charitable entities 9-23 in the district will receive a similar pecuniary benefit. 9-24 (c) A director who is also an officer or employee of a 9-25 public entity may not participate in the discussion of or vote on a 9-26 matter regarding a contract with that same public entity. 10-1 (d) For purposes of this section, a director has a 10-2 substantial interest in a charitable entity in the same manner that 10-3 a person would have a substantial interest in a business entity 10-4 under Section 171.002. 10-5 Sec. 376.313. ADDITIONAL POWERS OF DISTRICT. (a) The 10-6 district may exercise the powers given to a corporation created 10-7 under Section 4B, Development Corporation Act of 1979 (Article 10-8 5190.6, Vernon's Texas Civil Statutes). 10-9 (b) The district may exercise the powers given to a housing 10-10 finance corporation created under Chapter 394 to provide housing or 10-11 residential development projects in the district. 10-12 (c) The district may exercise the powers granted to an 10-13 eligible political subdivision under Chapter 221, Natural Resources 10-14 Code. 10-15 (d) The district may exercise its powers in areas outside 10-16 the boundaries of the district if the board determines that there 10-17 is a benefit to the district in exercising that power. 10-18 Sec. 376.314. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL 10-19 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may 10-20 make an agreement with or accept a donation, grant, or loan from 10-21 any person. 10-22 (b) The implementation of a project is a governmental 10-23 function or service for the purposes of Chapter 791, Government 10-24 Code. 10-25 (c) To protect the public interest, the district may 10-26 contract with the municipality or the county for the municipality 11-1 or county to provide law enforcement services in the district for a 11-2 fee. 11-3 Sec. 376.315. NONPROFIT CORPORATION. (a) The board by 11-4 resolution may authorize the creation of a nonprofit corporation to 11-5 assist and act on behalf of the district in implementing a project 11-6 or providing a service authorized by this subchapter. 11-7 (b) The board shall appoint the board of directors of a 11-8 nonprofit corporation created under this section. The board of 11-9 directors of the nonprofit corporation shall serve in the same 11-10 manner, term, and conditions as a board of directors of a local 11-11 government corporation created under Chapter 431, Transportation 11-12 Code. 11-13 (c) A nonprofit corporation created under this section has 11-14 the powers of and is considered for purposes of this subchapter to 11-15 be a local government corporation created under Chapter 431, 11-16 Transportation Code. 11-17 (d) A nonprofit corporation created under this section may 11-18 implement any project and provide any service authorized by this 11-19 subchapter. 11-20 Sec. 376.316. ANNEXATION. The district may: 11-21 (1) annex territory as provided by Subchapter C, 11-22 Chapter 375; and 11-23 (2) annex territory located inside the boundaries of a 11-24 reinvestment zone created by the municipality under Chapter 311, 11-25 Tax Code, if the governing body of the municipality consents to the 11-26 annexation. 12-1 Sec. 376.317. ASSESSMENTS. (a) The board may impose and 12-2 collect an assessment for any purpose authorized by this 12-3 subchapter. The imposition of an assessment requires that 12-4 two-thirds of the board members vote in favor of the imposition. 12-5 (b) Assessments, reassessments, or assessments resulting 12-6 from an addition to or correction of the assessment roll by the 12-7 district, penalties and interest on an assessment or reassessment, 12-8 expenses of collection, and reasonable attorney's fees incurred by 12-9 the district: 12-10 (1) are a first and prior lien against the property 12-11 assessed; 12-12 (2) are superior to any other lien or claim other than 12-13 a lien or claim for county, school district, or municipal ad 12-14 valorem taxes; and 12-15 (3) are the personal liability of and charge against 12-16 the owners of the property even if the owners are not named in the 12-17 assessment proceedings. 12-18 (c) The lien is effective from the date of the resolution of 12-19 the board levying the assessment until the assessment is paid. The 12-20 board may enforce the lien in the same manner that the board may 12-21 enforce an ad valorem tax lien against real property. 12-22 Sec. 376.318. PETITION REQUIRED FOR FINANCING SERVICES AND 12-23 IMPROVEMENTS. The board may not finance a service or improvement 12-24 project under this subchapter unless a written petition requesting 12-25 the improvement or service has been filed with the board. The 12-26 petition must be signed by the owners of a majority of the assessed 13-1 value of real property in the district as determined by the most 13-2 recent certified county property tax rolls. 13-3 Sec. 376.319. ELECTIONS. (a) In addition to the elections 13-4 the district must hold under Subchapter L, Chapter 375, the 13-5 district shall hold an election in the manner provided by that 13-6 subchapter to obtain voter approval before the district imposes a 13-7 maintenance tax or issues bonds payable from ad valorem taxes or 13-8 assessments. 13-9 (b) The board may include more than one purpose in a single 13-10 proposition at an election. 13-11 Sec. 376.320. MAINTENANCE TAX. (a) The district may impose 13-12 and collect an annual ad valorem tax on taxable property in the 13-13 district for the maintenance and operation of the district and the 13-14 improvements constructed or acquired by the district or for the 13-15 provision of services only if: 13-16 (1) two-thirds of the board members vote in favor of 13-17 imposing the tax; and 13-18 (2) the tax is authorized at an election held in 13-19 accordance with Section 376.319. 13-20 (b) The board shall determine the tax rate. 13-21 Sec. 376.321. UTILITIES. The district may not impose an 13-22 assessment or impact fee on a utility's property. 13-23 Sec. 376.322. MUNICIPAL APPROVAL. (a) Except as provided 13-24 by Subsection (b), the district must obtain approval from the 13-25 municipality's governing body of: 13-26 (1) the issuance of bonds for an improvement project; 14-1 and 14-2 (2) the plans and specifications of an improvement 14-3 project financed by the bonds. 14-4 (b) If the district obtains approval from the municipality's 14-5 governing body of a capital improvements budget for a period not to 14-6 exceed five years, the district may finance the capital 14-7 improvements and issue bonds specified in the budget without 14-8 further approval from the municipality. 14-9 (c) The district must obtain approval from the 14-10 municipality's governing body of the plans and specifications of 14-11 any district improvement project related to the use of land owned 14-12 by the municipality, an easement granted by the municipality, or a 14-13 right-of-way of a street, road, or highway. 14-14 (d) Except as provided by Section 375.263, a municipality is 14-15 not obligated to pay any bonds, notes, or other obligations of the 14-16 district. 14-17 Sec. 376.323. DISBURSEMENTS OR TRANSFERS OF FUNDS. The 14-18 board by resolution shall establish the number of directors' 14-19 signatures and the procedure required for a disbursement or 14-20 transfer of the district's money. 14-21 Sec. 376.324. COMPETITIVE BIDDING LIMIT. Section 375.221 14-22 does not apply to the district unless the contract is for more than 14-23 $25,000. 14-24 Sec. 376.325. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH 14-25 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district 14-26 that has debt. If the vote is in favor of dissolution, the 15-1 district shall remain in existence solely for the limited purpose 15-2 of discharging its debts. The dissolution is effective when all 15-3 debts have been discharged. 15-4 (b) Section 375.264 does not apply to the district. 15-5 SECTION 2. The legislature finds that: 15-6 (1) proper and legal notice of the intention to 15-7 introduce this Act, setting forth the general substance of this 15-8 Act, has been published as provided by law, and the notice and a 15-9 copy of this Act have been furnished to all persons, agencies, 15-10 officials, or entities to which they are required to be furnished 15-11 by the constitution and laws of this state, including the governor, 15-12 who has submitted the notice and Act to the Texas Natural Resource 15-13 Conservation Commission; 15-14 (2) the Texas Natural Resource Conservation Commission 15-15 has filed its recommendations relating to this Act with the 15-16 governor, lieutenant governor, and speaker of the house of 15-17 representatives within the required time; 15-18 (3) the general law relating to consent by political 15-19 subdivisions to the creation of districts with conservation, 15-20 reclamation, and road powers and the inclusion of land in those 15-21 districts has been complied with; and 15-22 (4) all requirements of the constitution and laws of 15-23 this state and the rules and procedures of the legislature with 15-24 respect to the notice, introduction, and passage of this Act have 15-25 been fulfilled and accomplished. 15-26 SECTION 3. Notwithstanding Section 376.310, Local Government 16-1 Code, as added by this Act: 16-2 (1) the initial board of directors of the Harris 16-3 County Municipal Management District No. 1 consists of: 16-4 Pos. No. Name of Board Member 16-5 1. Bill Huntsinger 16-6 2. Jana Lee 16-7 3. Kathy Miller 16-8 4. Randy Nerren 16-9 5. Lisa Zinis 16-10 6. Marshall Heins 16-11 7. Larry Beerman 16-12 8. John Chang 16-13 9. Gracie Saenz 16-14 10. Billy Reed 16-15 11. Bill Mosley; and 16-16 (2) of the initial board members, the members 16-17 appointed for positions 1 through 6 serve until June 1, 2003, and 16-18 the members appointed for positions 7 through 11 serve until June 16-19 1, 2001. 16-20 SECTION 4. The importance of this legislation and the 16-21 crowded condition of the calendars in both houses create an 16-22 emergency and an imperative public necessity that the 16-23 constitutional rule requiring bills to be read on three several 16-24 days in each house be suspended, and this rule is hereby suspended, 16-25 and that this Act take effect and be in force from and after its 16-26 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1866 passed the Senate on May 3, 1999, by the following vote: Yeas 30, Nays 0; and that the Senate concurred in House amendment on May 29, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1866 passed the House, with amendment, on May 26, 1999, by the following vote: Yeas 144, Nays 0, two present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor