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.