76R15955 E
By Lindsay S.B. No. 1866
Substitute the following for S.B. No. 1866:
By Swinford C.S.S.B. No. 1866
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Harris County Municipal Management
1-3 District No. 1; providing authority to impose a tax and issue
1-4 bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 376, Local Government Code, is amended by
1-7 adding Subchapter H to read as follows:
1-8 SUBCHAPTER H. HARRIS COUNTY MUNICIPAL MANAGEMENT
1-9 DISTRICT NO. 1
1-10 Sec. 376.301. CREATION OF DISTRICT. (a) The Harris County
1-11 Municipal Management District No. 1 is created as a special
1-12 district under Section 59, Article XVI, Texas Constitution.
1-13 (b) The board by resolution may change the district's name.
1-14 (c) The creation of the district is essential to accomplish
1-15 the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-16 Article XVI, Texas Constitution, and other public purposes stated
1-17 in this subchapter.
1-18 Sec. 376.302. DECLARATION OF INTENT. (a) The creation of
1-19 the district is necessary to promote, develop, encourage, and
1-20 maintain employment, commerce, transportation, housing, tourism,
1-21 recreation, arts, entertainment, economic development, safety, and
1-22 the public welfare in the district.
1-23 (b) The creation of the district and this legislation are
2-1 not to be interpreted to relieve the county or the municipality
2-2 from providing the level of services, as of the effective date of
2-3 this subchapter, to the area in the district or to release the
2-4 county or the municipality from the obligations each entity has to
2-5 provide services to that area. The district is created to
2-6 supplement and not supplant the municipal or county services
2-7 provided in the area in the district.
2-8 (c) By creating the district and in authorizing the
2-9 municipality, county, and other political subdivisions to contract
2-10 with the district, the legislature has established a program to
2-11 accomplish the public purposes set out in Section 52-a, Article
2-12 III, Texas Constitution.
2-13 Sec. 376.303. DEFINITIONS. In this subchapter:
2-14 (1) "Board" means the board of directors of the
2-15 district.
2-16 (2) "County" means Harris County.
2-17 (3) "District" means the Harris County Municipal
2-18 Management District No. 1.
2-19 (4) "Municipality" means the City of Houston.
2-20 (5) "Utility" means a person that provides to the
2-21 public gas, electricity, telephone, sewage, or water service.
2-22 Sec. 376.304. BOUNDARIES. The district includes all the
2-23 territory contained within the following described area:
2-24 BEGINNING AT A POINT located at the intersection of the east
2-25 right-of-way line of Bunker Hill Road and the north right-of-way
2-26 line of Interstate Highway 10 frontage road, in the City of
2-27 Houston, Harris County, Texas;
3-1 THENCE, in a southerly direction crossing Interstate Highway
3-2 10 along the east right-of-way line of Bunker Hill Road to the
3-3 extension of the south right-of-way line of Barryknoll Lane;
3-4 THENCE, in a westerly direction following the south
3-5 right-of-way line of Barryknoll Lane to the northwest corner of the
3-6 Riedel Estates;
3-7 THENCE, in a southerly direction approximately 930 feet
3-8 following the west property line of Riedel Estates;
3-9 THENCE, in a westerly direction approximately 625 feet
3-10 following the north right-of-way line of Kimberly Lane to the east
3-11 boundary of a H.C.F.C.D. easement;
3-12 THENCE, in a northerly direction approximately 690 feet
3-13 following the east boundary line of a H.C.F.C.D. easement to a
3-14 point being an intersection of the east line of said ditch with the
3-15 southeasterly projection of the north line of Memorial Hollow
3-16 Section 8;
3-17 THENCE, in a west northwesterly direction approximately 625
3-18 feet following the north line of Memorial Hollow Section 8, to a
3-19 point in the south right-of-way line of Barryknoll Lane;
3-20 THENCE, in a westerly direction to the intersection of the
3-21 south right-of-way line of Barryknoll Lane and the east
3-22 right-of-way line of Plantation Road;
3-23 THENCE, in a southerly direction approximately 620 feet
3-24 following the east right-of-way line of Plantation Road to a point;
3-25 THENCE, in a west northwesterly direction approximately 820
3-26 feet, along the north property line of Memorial Hollow Section 7,
3-27 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
4-27 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:
5-27 (1) organization, existence, or validity;
6-1 (2) right to issue any type of bond for the purposes
6-2 for which the district is created or to pay the principal of and
6-3 interest on a bond;
6-4 (3) right to impose or collect an assessment or taxes;
6-5 or
6-6 (4) legality or operation.
6-7 Sec. 376.306. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
6-8 All the land and other property included in the district will be
6-9 benefited by the improvements and services to be provided by the
6-10 district under powers conferred by Sections 52 and 52-a, Article
6-11 III, and Section 59, Article XVI, Texas Constitution, and other
6-12 powers granted under this subchapter, and the district is created
6-13 to serve a public use and benefit.
6-14 (b) The creation of the district is in the public interest
6-15 and is essential to:
6-16 (1) further the public purposes of the development and
6-17 diversification of the economy of the state; and
6-18 (2) eliminate unemployment and underemployment and
6-19 develop or expand transportation and commerce.
6-20 (c) The district will:
6-21 (1) promote the health, safety, and general welfare of
6-22 residents, employers, employees, visitors, consumers in the
6-23 district, and the general public;
6-24 (2) provide needed funding to preserve, maintain, and
6-25 enhance the economic health and vitality of the area as a community
6-26 and business center; and
6-27 (3) further promote the health, safety, welfare, and
7-1 enjoyment of the public by providing pedestrian ways and by
7-2 landscaping and developing certain areas in the district, which are
7-3 necessary for the restoration, preservation, and enhancement of
7-4 scenic and aesthetic beauty.
7-5 (d) Pedestrian ways along or across a street, whether at
7-6 grade or above or below the surface, and street lighting, street
7-7 landscaping, and street art objects are parts of and necessary
7-8 components of a street and are considered to be a street or road
7-9 improvement.
7-10 (e) The district may not act as the agent or instrumentality
7-11 of any private interest even though many private interests will be
7-12 benefited by the district, as will the general public.
7-13 Sec. 376.307. APPLICATION OF OTHER LAW. Except as otherwise
7-14 provided by this subchapter, Chapter 375 applies to the district.
7-15 Sec. 376.308. LIBERAL CONSTRUCTION OF SUBCHAPTER. This
7-16 subchapter shall be liberally construed in conformity with the
7-17 findings and purposes stated in this subchapter.
7-18 Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. (a) The
7-19 district is governed by a board of 11 directors who serve staggered
7-20 terms of four years.
7-21 (b) A director shall receive compensation as provided by
7-22 Section 49.060, Water Code.
7-23 Sec. 376.310. APPOINTMENT OF DIRECTORS. (a) The mayor and
7-24 members of the governing body of the municipality shall appoint
7-25 directors from persons recommended by the board. A person is
7-26 appointed if a majority of the members and the mayor vote to
7-27 appoint that person.
8-1 (b) A person may not be appointed to the board if the
8-2 appointment of that person would result in less than two-thirds of
8-3 the directors residing in the municipality.
8-4 Sec. 376.311. EX OFFICIO BOARD MEMBERS. (a) The following
8-5 persons shall serve as a nonvoting ex officio director:
8-6 (1) the director of the following departments of the
8-7 municipality:
8-8 (A) parks and recreation;
8-9 (B) planning and development;
8-10 (C) public works; and
8-11 (D) civic center;
8-12 (2) the municipality's chief of police;
8-13 (3) the county's general manager of the Metropolitan
8-14 Transit Authority; and
8-15 (4) the presidents of any institutions of higher
8-16 learning located in the district.
8-17 (b) If a department described by Subsection (a) is
8-18 consolidated, renamed, or changed, the board may appoint a director
8-19 of the consolidated, renamed, or changed department as a nonvoting
8-20 ex officio board member. If a department described by Subsection
8-21 (a) is abolished, the board may appoint a representative of another
8-22 department of the municipality that performs duties comparable to
8-23 those performed by the abolished department.
8-24 (c) The board may appoint the presiding officer of a
8-25 nonprofit corporation that is actively involved in activities in
8-26 the municipality's midtown area to serve as a nonvoting ex officio
8-27 director.
9-1 Sec. 376.312. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
9-2 (a) Except as provided in this section:
9-3 (1) a director may participate in all board votes and
9-4 decisions; and
9-5 (2) Chapter 171 governs conflict of interest for board
9-6 members.
9-7 (b) Section 171.004 does not apply to the district. A
9-8 director who has a substantial interest in a business or charitable
9-9 entity that will receive a pecuniary benefit from a board action
9-10 shall file a one-time affidavit declaring the interest. An
9-11 additional affidavit is not required if the director's interest
9-12 changes. After the affidavit is filed with the board secretary,
9-13 the director may participate in a discussion or vote on that action
9-14 if:
9-15 (1) a majority of the directors have a similar
9-16 interest in the same entity; or
9-17 (2) all other similar business or charitable entities
9-18 in the district will receive a similar pecuniary benefit.
9-19 (c) A director who is also an officer or employee of a
9-20 public entity may not participate in the discussion of or vote on a
9-21 matter regarding a contract with that same public entity.
9-22 (d) For purposes of this section, a director has a
9-23 substantial interest in a charitable entity in the same manner that
9-24 a person would have a substantial interest in a business entity
9-25 under Section 171.002.
9-26 Sec. 376.313. ADDITIONAL POWERS OF DISTRICT. (a) The
9-27 district may exercise the powers given to a corporation created
10-1 under Section 4B, Development Corporation Act of 1979 (Article
10-2 5190.6, Vernon's Texas Civil Statutes).
10-3 (b) The district may exercise the powers given to a housing
10-4 finance corporation created under Chapter 394 to provide housing or
10-5 residential development projects in the district.
10-6 (c) The district may exercise the powers granted to an
10-7 eligible political subdivision under Chapter 221, Natural Resources
10-8 Code.
10-9 (d) The district may exercise its powers in areas outside
10-10 the boundaries of the district if the board determines that there
10-11 is a benefit to the district in exercising that power.
10-12 Sec. 376.314. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL
10-13 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may
10-14 make an agreement with or accept a donation, grant, or loan from
10-15 any person.
10-16 (b) The implementation of a project is a governmental
10-17 function or service for the purposes of Chapter 791, Government
10-18 Code.
10-19 (c) To protect the public interest, the district may
10-20 contract with the municipality or the county for the municipality
10-21 or county to provide law enforcement services in the district for a
10-22 fee.
10-23 Sec. 376.315. NONPROFIT CORPORATION. (a) The board by
10-24 resolution may authorize the creation of a nonprofit corporation to
10-25 assist and act on behalf of the district in implementing a project
10-26 or providing a service authorized by this subchapter.
10-27 (b) The board shall appoint the board of directors of a
11-1 nonprofit corporation created under this section. The board of
11-2 directors of the nonprofit corporation shall serve in the same
11-3 manner, term, and conditions as a board of directors of a local
11-4 government corporation created under Chapter 431, Transportation
11-5 Code.
11-6 (c) A nonprofit corporation created under this section has
11-7 the powers of and is considered for purposes of this subchapter to
11-8 be a local government corporation created under Chapter 431,
11-9 Transportation Code.
11-10 (d) A nonprofit corporation created under this section may
11-11 implement any project and provide any service authorized by this
11-12 subchapter.
11-13 Sec. 376.316. ANNEXATION. The district may:
11-14 (1) annex territory as provided by Subchapter C,
11-15 Chapter 375; and
11-16 (2) annex territory located inside the boundaries of a
11-17 reinvestment zone created by the municipality under Chapter 311,
11-18 Tax Code, if the governing body of the municipality consents to the
11-19 annexation.
11-20 Sec. 376.317. ASSESSMENTS. (a) The board may impose and
11-21 collect an assessment for any purpose authorized by this
11-22 subchapter. The imposition of an assessment requires that
11-23 two-thirds of the board members vote in favor of the imposition.
11-24 (b) Assessments, reassessments, or assessments resulting
11-25 from an addition to or correction of the assessment roll by the
11-26 district, penalties and interest on an assessment or reassessment,
11-27 expenses of collection, and reasonable attorney's fees incurred by
12-1 the district:
12-2 (1) are a first and prior lien against the property
12-3 assessed;
12-4 (2) are superior to any other lien or claim other than
12-5 a lien or claim for county, school district, or municipal ad
12-6 valorem taxes; and
12-7 (3) are the personal liability of and charge against
12-8 the owners of the property even if the owners are not named in the
12-9 assessment proceedings.
12-10 (c) The lien is effective from the date of the resolution of
12-11 the board levying the assessment until the assessment is paid. The
12-12 board may enforce the lien in the same manner that the board may
12-13 enforce an ad valorem tax lien against real property.
12-14 Sec. 376.318. PETITION REQUIRED FOR FINANCING SERVICES AND
12-15 IMPROVEMENTS. The board may not finance a service or improvement
12-16 project under this subchapter unless a written petition requesting
12-17 the improvement or service has been filed with the board. The
12-18 petition must be signed by the owners of a majority of the assessed
12-19 value of real property in the district as determined by the most
12-20 recent certified county property tax rolls.
12-21 Sec. 376.319. ELECTIONS. (a) In addition to the elections
12-22 the district must hold under Subchapter L, Chapter 375, the
12-23 district shall hold an election in the manner provided by that
12-24 subchapter to obtain voter approval before the district imposes a
12-25 maintenance tax or issues bonds payable from ad valorem taxes or
12-26 assessments.
12-27 (b) The board may include more than one purpose in a single
13-1 proposition at an election.
13-2 Sec. 376.320. MAINTENANCE TAX. (a) The district may impose
13-3 and collect an annual ad valorem tax on taxable property in the
13-4 district for the maintenance and operation of the district and the
13-5 improvements constructed or acquired by the district or for the
13-6 provision of services only if:
13-7 (1) two-thirds of the board members vote in favor of
13-8 imposing the tax; and
13-9 (2) the tax is authorized at an election held in
13-10 accordance with Section 376.319.
13-11 (b) The board shall determine the tax rate.
13-12 Sec. 376.321. UTILITIES. The district may not impose an
13-13 assessment or impact fee on a utility's property.
13-14 Sec. 376.322. MUNICIPAL APPROVAL. (a) Except as provided
13-15 by Subsection (b), the district must obtain approval from the
13-16 municipality's governing body of:
13-17 (1) the issuance of bonds for an improvement project;
13-18 and
13-19 (2) the plans and specifications of an improvement
13-20 project financed by the bonds.
13-21 (b) If the district obtains approval from the municipality's
13-22 governing body of a capital improvements budget for a period not to
13-23 exceed five years, the district may finance the capital
13-24 improvements and issue bonds specified in the budget without
13-25 further approval from the municipality.
13-26 (c) The district must obtain approval from the
13-27 municipality's governing body of the plans and specifications of
14-1 any district improvement project related to the use of land owned
14-2 by the municipality, an easement granted by the municipality, or a
14-3 right-of-way of a street, road, or highway.
14-4 (d) Except as provided by Section 375.263, a municipality is
14-5 not obligated to pay any bonds, notes, or other obligations of the
14-6 district.
14-7 Sec. 376.323. DISBURSEMENTS OR TRANSFERS OF FUNDS. The
14-8 board by resolution shall establish the number of directors'
14-9 signatures and the procedure required for a disbursement or
14-10 transfer of the district's money.
14-11 Sec. 376.324. COMPETITIVE BIDDING LIMIT. Section 375.221
14-12 does not apply to the district unless the contract is for more than
14-13 $25,000.
14-14 Sec. 376.325. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
14-15 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district
14-16 that has debt. If the vote is in favor of dissolution, the
14-17 district shall remain in existence solely for the limited purpose
14-18 of discharging its debts. The dissolution is effective when all
14-19 debts have been discharged.
14-20 (b) Section 375.264 does not apply to the district.
14-21 SECTION 2. The legislature finds that:
14-22 (1) proper and legal notice of the intention to
14-23 introduce this Act, setting forth the general substance of this
14-24 Act, has been published as provided by law, and the notice and a
14-25 copy of this Act have been furnished to all persons, agencies,
14-26 officials, or entities to which they are required to be furnished
14-27 by the constitution and laws of this state, including the governor,
15-1 who has submitted the notice and Act to the Texas Natural Resource
15-2 Conservation Commission;
15-3 (2) the Texas Natural Resource Conservation Commission
15-4 has filed its recommendations relating to this Act with the
15-5 governor, lieutenant governor, and speaker of the house of
15-6 representatives within the required time;
15-7 (3) the general law relating to consent by political
15-8 subdivisions to the creation of districts with conservation,
15-9 reclamation, and road powers and the inclusion of land in those
15-10 districts has been complied with; and
15-11 (4) all requirements of the constitution and laws of
15-12 this state and the rules and procedures of the legislature with
15-13 respect to the notice, introduction, and passage of this Act have
15-14 been fulfilled and accomplished.
15-15 SECTION 3. Notwithstanding Section 376.310, Local
15-16 Governmental Code, as added by this Act:
15-17 (1) the initial board of directors of the Harris
15-18 County Municipal Management District No. 1 consists of:
15-19 Pos. No. Name of Board Member
15-20 1. Bill Huntsinger
15-21 2. Jana Lee
15-22 3. Kathy Miller
15-23 4. Randy Nerren
15-24 5. Lisa Zinis
15-25 6. Marshall Heins
15-26 7. Larry Beerman
15-27 8. John Chang
16-1 9. Gracie Saenz
16-2 10. Billy Reed
16-3 11. Bill Mosley; and
16-4 (2) of the initial board members, the members
16-5 appointed for positions 1 through 6 serve until June 1, 2003, and
16-6 the members appointed for positions 7 through 11 serve until June
16-7 1, 2001.
16-8 SECTION 4. The importance of this legislation and the
16-9 crowded condition of the calendars in both houses create an
16-10 emergency and an imperative public necessity that the
16-11 constitutional rule requiring bills to be read on three several
16-12 days in each house be suspended, and this rule is hereby suspended,
16-13 and that this Act take effect and be in force from and after its
16-14 passage, and it is so enacted.