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