By: Lindsay S.B. No. 1866
99S1186/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the creation of the Harris County Municipal Management
1-2 District No. 1; providing authority to impose a tax and issue
1-3 bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 376, Local Government Code, is amended by
1-6 adding Subchapter H to read as follows:
1-7 SUBCHAPTER H. HARRIS COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1
1-8 Sec. 376.301. CREATION OF DISTRICT. (a) The Harris County
1-9 Municipal Management District No. 1 is created as a special
1-10 district under Section 59, Article XVI, Texas Constitution.
1-11 (b) The board by resolution may change the district's name.
1-12 (c) The creation of the district is essential to accomplish
1-13 the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-14 Article XVI, Texas Constitution, and other public purposes stated
1-15 in this subchapter.
1-16 Sec. 376.302. DECLARATION OF INTENT. (a) The creation of
1-17 the district is necessary to promote, develop, encourage, and
1-18 maintain employment, commerce, transportation, housing, tourism,
1-19 recreation, arts, entertainment, economic development, safety, and
1-20 public welfare in the area within the district.
1-21 (b) The creation of the district and the enactment of this
1-22 subchapter are not to be interpreted to relieve the county or the
1-23 municipality from providing the level of services those entities
1-24 are providing, as of the effective date of this subchapter, to the
2-1 area in the district or to release the county or the municipality
2-2 from the obligations each entity has to provide services to that
2-3 area. The district is created to supplement and not supplant the
2-4 municipal or county services provided in the area in the district.
2-5 (c) By creating the district and in authorizing the
2-6 municipality, the county, and other political subdivisions to
2-7 contract with the district, the legislature has established a
2-8 program to accomplish the public purposes set out in Section 52-a,
2-9 Article III, Texas Constitution.
2-10 Sec. 376.303. DEFINITIONS. In this subchapter:
2-11 (1) "Board" means the board of directors of the
2-12 district.
2-13 (2) "County" means Harris County.
2-14 (3) "District" means the Harris County Municipal
2-15 Management District No. 1.
2-16 (4) "Municipality" means the City of Houston.
2-17 (5) "Utility" means a person that provides to the
2-18 public gas, electricity, telephone, sewage, or water service.
2-19 Sec. 376.304. BOUNDARIES. The district includes all the
2-20 territory contained within the following described area:
2-21 BEGINNING AT A POINT located at the intersection of the east
2-22 right-of-way line of Bunker Hill Road and the north right-of-way
2-23 line of Interstate Highway 10 frontage road, in the City of
2-24 Houston, Harris County, Texas;
2-25 THENCE, in a southerly direction crossing Interstate highway
2-26 10 along the east right-of-way line of Bunker Hill Road to the
3-1 extension of the south right-of-way line of Barryknoll Lane;
3-2 THENCE, in a westerly direction following the south
3-3 right-of-way line of Barryknoll Lane to the northwest corner of the
3-4 Riedel Estates;
3-5 THENCE, in a southerly direction approximately 1,050 feet
3-6 following the west property line of Riedel Estates to the northeast
3-7 corner of Memorial City Section 3;
3-8 THENCE, in a westerly direction approximately 700 feet
3-9 following the north property line of Memorial City Section 3 to the
3-10 west line of a H.C.F.C.D. easement;
3-11 THENCE, in a northerly direction approximately 840 feet
3-12 following the west line of H.C.F.C.D. easement to a point in the
3-13 north line of Memorial Hollow Section 8;
3-14 THENCE, in a west northwesterly direction approximately 625
3-15 feet following the north line of Memorial Hollow Section 8, to a
3-16 point in the south right-of-way line of Barryknoll Lane;
3-17 THENCE, in a westerly direction to the intersection of the
3-18 south right-of-way line of Barryknoll Lane and the east
3-19 right-of-way line of Plantation Road;
3-20 THENCE, in a southerly direction approximately 620 feet
3-21 following the east right-of-way line of Plantation Road to a point;
3-22 THENCE, in a west northwesterly direction approximately 820
3-23 feet, along the north property line of Memorial Hollow Section 7,
3-24 to a point on the west right-of-way line of Gessner Road;
3-25 THENCE, in a northerly direction approximately 600 feet
3-26 following the west right-of-way line of Gessner Road, to the
4-1 northeast corner of Memorial Hollow Section 6 Replat;
4-2 THENCE, in a westerly direction along the north property line
4-3 of Memorial Hollow Section 6 Replat to the east right-of-way line
4-4 Frostwood Drive;
4-5 THENCE, in a southerly direction approximately 60 feet along
4-6 a curve to the left, being the east right-of-way line of Frostwood
4-7 Drive;
4-8 THENCE, in a westerly direction approximately 450 feet along
4-9 the north subdivision line to the northwest corner of Memorial
4-10 Hollow Section 5 Replat;
4-11 THENCE, in a northerly direction approximately 2,400 feet to
4-12 a point in the north right-of-way line of the Interstate Highway 10
4-13 frontage road;
4-14 THENCE, in an easterly direction along the north right-of-way
4-15 of Interstate Highway 10 frontage road approximately 5,400 feet to
4-16 the POINT OF BEGINNING.
4-17 AND FURTHER SAVE AND EXCEPT the subdivision known as Memorial
4-18 Village Townhouses Section 1 and Memorial Village Townhouses
4-19 Section 2, more particularly described by metes and bounds as
4-20 follows;
4-21 BEGINNING at a point approximately 190 feet west along the
4-22 north right-of-way of Barryknoll Lane from the intersection of
4-23 Barryknoll Lane and the west right-of-way line of Bunker Hill Road;
4-24 THENCE, in a westerly direction approximately 570 feet along
4-25 the north right-of-way of Barryknoll Lane to the southwest corner
4-26 of Memorial Village Townhouses Section 2;
5-1 THENCE, in a northerly direction approximately 435 feet to a
5-2 point for corner;
5-3 THENCE, in an easterly direction approximately 180 feet to a
5-4 point for corner;
5-5 THENCE, in a northerly direction approximately 136 feet to a
5-6 point for corner;
5-7 THENCE, in a westerly direction approximately 183 feet to a
5-8 point for corner;
5-9 THENCE, in a northerly direction approximately 405 feet to
5-10 the northeast corner of Memorial City Terrace Replat to a point for
5-11 corner;
5-12 THENCE, in an easterly direction approximately 770 feet to a
5-13 point in the west right-of-way line of Bunker Hill Road;
5-14 THENCE, in a southerly direction approximately 60 feet along
5-15 the west right-of-way of Bunker Hill Road to a point for corner;
5-16 THENCE, in a westerly direction approximately 200 feet to a
5-17 point for corner;
5-18 THENCE, in a southerly direction approximately 920 feet to
5-19 the north right-of-way line on Barryknoll Lane and being the POINT
5-20 OF BEGINNING.
5-21 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
5-22 facilities, and improvements owned by a utility.
5-23 Sec. 376.305. FINDINGS RELATING TO BOUNDARIES. The
5-24 boundaries and field notes of the district form a closure. If a
5-25 mistake is made in the field notes or in copying the field notes in
5-26 the legislative process, the mistake does not affect the
6-1 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, and consumers in the
6-25 district and the general public;
6-26 (2) provide needed funding for the area within the
7-1 district to preserve, maintain, and enhance the economic health and
7-2 vitality of the area within the district as a community and
7-3 business center; and
7-4 (3) further promote the health, safety, welfare, and
7-5 enjoyment of the public by providing pedestrian ways and by
7-6 landscaping and developing certain areas in the district, which are
7-7 necessary for the restoration, preservation, and enhancement of
7-8 scenic and aesthetic beauty.
7-9 (d) Pedestrian ways along or across a street, whether at
7-10 grade or above or below the surface, and street lighting, street
7-11 landscaping, and street art objects are parts of and necessary
7-12 components of a street and are considered to be a street or road
7-13 improvement.
7-14 (e) The district will not act as the agent or instrumentally
7-15 of any private interest, though many private interests will be
7-16 benefited by the district, as will the general public.
7-17 Sec. 376.307. APPLICATION OF OTHER LAW. Except as otherwise
7-18 provided by this subchapter, Chapter 375 applies to the district
7-19 and to its governing body and employees.
7-20 Sec. 376.308. LIBERAL CONSTRUCTION OF SUBCHAPTER. This
7-21 subchapter shall be liberally construed in conformity with the
7-22 findings and purposes stated in this subchapter.
7-23 Sec. 376.309. BOARD OF DIRECTORS IN GENERAL. (a) The
7-24 district is governed by a board of 11 directors who serve staggered
7-25 terms of four years.
7-26 (b) A director shall receive compensation as provided by
8-1 Section 49.060, Water Code.
8-2 (c) Directors of the district are public officials and are
8-3 entitled to governmental immunity for their actions in their
8-4 capacity as directors and officers of the district.
8-5 Sec. 376.310. APPOINTMENT OF DIRECTORS. (a) The mayor and
8-6 members of the governing body of the municipality shall appoint
8-7 directors from persons recommended by the board. A person is
8-8 appointed if a majority of the members of the governing body and
8-9 the mayor vote to appoint that person.
8-10 (b) A person may not be appointed to the board if the
8-11 appointment of that person would result in less than two-thirds of
8-12 the directors residing in the municipality.
8-13 Sec. 376.311. EX OFFICIO BOARD MEMBERS. (a) The following
8-14 persons shall serve as nonvoting ex officio directors:
8-15 (1) the director of the following departments of the
8-16 municipality:
8-17 (A) parks and recreation;
8-18 (B) planning and development;
8-19 (C) public works; and
8-20 (D) civic center;
8-21 (2) the municipality's chief of police;
8-22 (3) the county's general manager of the Metropolitan
8-23 Transit Authority; and
8-24 (4) the presidents of any institutions of higher
8-25 education located in the district.
8-26 (b) If a department described by Subsection (a) is
9-1 consolidated, renamed, or changed, the board may appoint a director
9-2 of the consolidated, renamed, or changed department as a nonvoting
9-3 ex officio director. If a department described by Subsection (a)
9-4 is abolished, the board may appoint a representative of another
9-5 department of the municipality that performs duties comparable to
9-6 those performed by the abolished department.
9-7 (c) The board may appoint the presiding officer of a
9-8 nonprofit corporation that is actively involved in activities in
9-9 the area within the district to serve as a nonvoting ex officio
9-10 director.
9-11 Sec. 376.312. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
9-12 (a) Except as provided in this section:
9-13 (1) a director may participate in all board votes and
9-14 decisions; and
9-15 (2) Chapter 171 governs conflict of interests for
9-16 board members.
9-17 (b) Section 171.004 does not apply to the district. A
9-18 director who has a substantial interest in a business or charitable
9-19 entity that will receive a pecuniary benefit from a board action
9-20 shall file a one-time affidavit declaring the interest. An
9-21 additional affidavit is not required if the director's interest
9-22 changes. After the affidavit is filed with the board secretary,
9-23 the director may participate in a discussion or vote on that action
9-24 if:
9-25 (1) a majority of the directors have a similar
9-26 interest in the same entity; or
10-1 (2) all other similar business or charitable entities
10-2 in the district will receive a similar pecuniary benefit.
10-3 (c) A director who is also an officer or employee of a
10-4 public entity may not participate in the discussion of or vote on a
10-5 matter regarding a contract with that public entity.
10-6 (d) For purposes of this section, a director has a
10-7 substantial interest in a charitable entity in the same manner that
10-8 a person would have a substantial interest in a business entity
10-9 under Section 171.002.
10-10 Sec. 376.313. ADDITIONAL POWERS OF DISTRICT. (a) The
10-11 district may exercise the powers given to a corporation created
10-12 under Section 4B, Development Corporation Act of 1979 (Article
10-13 5190.6, Vernon's Texas Civil Statutes).
10-14 (b) The district may exercise the powers given to a housing
10-15 finance corporation created under Chapter 394 to provide housing or
10-16 residential development projects in the district.
10-17 (c) The district may exercise the powers granted to eligible
10-18 political subdivisions under Chapter 221, Natural Resources Code.
10-19 (d) The district may exercise any of its powers in areas
10-20 outside the boundaries of the district if the board determines that
10-21 such exercise of its powers will benefit the district.
10-22 (e) The district has the rights, powers, privileges,
10-23 authorities, and functions of a district created under Chapter 375.
10-24 (f) The district may levy ad valorem taxes, assessments, or
10-25 impact fees in accordance with Chapter 375 on all property in the
10-26 district, including industrial, commercial, and other properties,
11-1 to provide any improvements and services for a project or activity
11-2 the district is authorized to acquire, construct, improve, or
11-3 provide under this subchapter.
11-4 (g) If the district, in exercising a power conferred by this
11-5 subchapter, requires a relocation, adjustment, raising, lowering,
11-6 rerouting, or changing the grade of or altering the construction of
11-7 any street, alley, highway, overpass, underpass, road, railroad
11-8 track, bridge, facility, or property; electric line, conduit,
11-9 facility, or property; telephone or telegraph line, conduit,
11-10 facility, or property; gas transmission or distribution pipe,
11-11 pipeline, main, facility, or property; water, sanitary sewer, or
11-12 storm sewer pipe, pipeline, main, facility, or property; cable
11-13 television line, cable, conduit, facility, or property; or other
11-14 pipeline or facility or property relating to the pipeline, that
11-15 relocation, adjustment, raising, lowering, rerouting, changing of
11-16 grade, or altering of construction must be accomplished at the sole
11-17 cost and expense of the district, and the district shall bear
11-18 damages that are suffered by owners of the property or facilities.
11-19 Sec. 375.314. ASSESSMENTS. (a) The board may levy and
11-20 collect an assessment for any purpose authorized by this
11-21 subchapter.
11-22 (b) Assessments, reassessments or assessments resulting from
11-23 an addition to or correction of the assessment roll by the
11-24 district, penalties and interest on an assessment or reassessment,
11-25 expenses of collection, and reasonable attorney's fees incurred by
11-26 the district:
12-1 (1) are a first and prior lien against the property
12-2 assessed;
12-3 (2) are superior to any other lien or claim other than
12-4 a lien or claim for county, school district, or municipal ad
12-5 valorem taxes; and
12-6 (3) are the personal liability of and charge against
12-7 the owners of the property even if the owners are not named in the
12-8 assessment proceedings.
12-9 (c) The lien is effective from the date of the resolution of
12-10 the board levying the assessment until the assessment is paid. The
12-11 board may enforce the lien in the same manner that the board may
12-12 enforce an ad valorem tax lien against real property.
12-13 (d) A vote of two-thirds majority of the members of the
12-14 board is required to approve the levy of assessments under this
12-15 section.
12-16 Sec. 376.315. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL
12-17 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may
12-18 make an agreement with or accept a donation, grant, or loan from
12-19 any person.
12-20 (b) The implementation of a project is a governmental
12-21 function or service for the purposes of Chapter 791, Government
12-22 Code.
12-23 (c) To protect the public interest, the district may
12-24 contract with the municipality or the county for the municipality
12-25 or county to provide law enforcement services in the district for a
12-26 fee.
13-1 Sec. 376.316. NONPROFIT CORPORATION. (a) The board by
13-2 resolution may authorize the creation of a nonprofit corporation to
13-3 assist and act on behalf of the district in implementing a project
13-4 or providing a service authorized by this subchapter.
13-5 (b) The board shall appoint the board of directors of a
13-6 nonprofit corporation created under this section. The board of
13-7 directors of the nonprofit corporation shall serve in the same
13-8 manner, term, and conditions as a board of directors of a local
13-9 government corporation created under Chapter 431, Transportation
13-10 Code.
13-11 (c) A nonprofit corporation created under this section has
13-12 the powers of, and is considered for purposes of this subchapter to
13-13 be, a local government corporation created under Chapter 431,
13-14 Transportation Code.
13-15 (d) A nonprofit corporation created under this section may
13-16 implement any project and provide any service authorized by this
13-17 subchapter.
13-18 Sec. 376.317. ANNEXATION. The district may:
13-19 (1) annex territory as provided by Subchapter C,
13-20 Chapter 375; and
13-21 (2) annex territory located inside the boundaries of a
13-22 reinvestment zone created by the municipality under Chapter 311,
13-23 Tax Code, if the governing body of the municipality consents to the
13-24 annexation.
13-25 Sec. 376.318. REINVESTMENT ZONES. All or any part of the
13-26 area within the district is eligible to be included in a tax
14-1 increment reinvestment zone created by the municipality under
14-2 Chapter 311, Tax Code, or included in a tax abatement reinvestment
14-3 zone created by the municipality under Chapter 312, Tax Code.
14-4 Sec. 376.319. PETITION REQUIRED FOR FINANCING SERVICES AND
14-5 IMPROVEMENTS. The board may not finance a service or improvement
14-6 project under this subchapter unless a written petition requesting
14-7 the improvement or service has been filed with the board. The
14-8 petition must be signed by owners of a majority of the assessed
14-9 value of real property in the district as determined by the most
14-10 recent certified county property tax rolls.
14-11 Sec. 376.320. ELECTIONS. (a) In addition to the elections
14-12 the district must hold under Subchapter L, Chapter 375, the
14-13 district shall hold an election in the manner provided by that
14-14 subchapter to obtain voter approval before the district imposes a
14-15 maintenance tax or issues bonds payable from ad valorem taxes or
14-16 assessments.
14-17 (b) The board may include more than one purpose in a single
14-18 proposition at an election.
14-19 Sec. 376.321. MAINTENANCE TAX. (a) If authorized at an
14-20 election held in accordance with Section 376.320, the district may
14-21 impose and collect an annual ad valorem tax on taxable property in
14-22 the district for the maintenance and operation of the district and
14-23 the improvements constructed or acquired by the district or for the
14-24 provision of services.
14-25 (b) The board shall determine the tax rate.
14-26 (c) A vote of two-thirds majority of the members of the
15-1 board is required to approve the levy of taxes under this
15-2 subchapter.
15-3 Sec. 376.322. UTILITIES. The district may not impose an
15-4 assessment or impact fee on a utility's property.
15-5 Sec. 376.323. DISBURSEMENTS OR TRANSFERS OF FUNDS. The
15-6 board by resolution shall establish the number of directors'
15-7 signatures and the procedure required for a disbursement or
15-8 transfer of the district's funds.
15-9 Sec. 376.324. COMPETITIVE BIDDING LIMIT. Section 375.221
15-10 does not apply to the district unless the contract is for more than
15-11 $25,000.
15-12 Sec. 376.325. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
15-13 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district
15-14 that has debt. If the vote is in favor of dissolution, the
15-15 district shall remain in existence solely for the limited purpose
15-16 of discharging its debts. The dissolution is effective when all
15-17 debts have been discharged.
15-18 (b) Section 375.264 does not apply to the district.
15-19 SECTION 2. The legislature finds that:
15-20 (1) proper and legal notice of the intention to
15-21 introduce this Act, setting forth the general substance of this
15-22 Act, has been published as provided by law, and the notice and a
15-23 copy of this Act have been furnished to all persons, agencies,
15-24 officials, or entities to which they are required to be furnished
15-25 by the constitution and laws of this state, including the governor,
15-26 who has submitted the notice and Act to the Texas Natural Resource
16-1 Conservation Commission;
16-2 (2) the Texas Natural Resource Conservation Commission
16-3 has filed its recommendations relating to this Act with the
16-4 governor, lieutenant governor, and speaker of the house of
16-5 representatives within the required time;
16-6 (3) the general law relating to consent by political
16-7 subdivisions to the creation of districts with conservation,
16-8 reclamation, and road powers and the inclusion of land in those
16-9 districts has been complied with; and
16-10 (4) all requirements of the constitution and laws of
16-11 this state and the rules and procedures of the legislature with
16-12 respect to the notice, introduction, and passage of this Act have
16-13 been fulfilled and accomplished.
16-14 SECTION 3. Notwithstanding Section 376.310, Local Government
16-15 Code, as added by this Act:
16-16 (1) the initial board of directors of the Harris
16-17 County Municipal Management District No. 1 consists of the
16-18 following persons:
16-19 Pos. No. Name of Board Member
16-20 1. Bill Huntsinger
16-21 2. Jana Lee
16-22 3. Kathy Miller
16-23 4. Randy Nerren
16-24 5. Lisa Zinis
16-25 6. Marshall Heins
16-26 7. Larry Beerman
17-1 8. John Chang
17-2 9. Gracie Saenz
17-3 10. Billy Reed
17-4 11. Bill Mosley
17-5 (2) Of the initial board members, the members
17-6 appointed for positions 1 through 6 serve until June 1, 2003, and
17-7 the members appointed for positions 7 through 11 serve until June
17-8 1, 2001.
17-9 SECTION 4. The importance of this legislation and the
17-10 crowded condition of the calendars in both houses create an
17-11 emergency and an imperative public necessity that the
17-12 constitutional rule requiring bills to be read on three several
17-13 days in each house be suspended, and this rule is hereby suspended,
17-14 and that this Act take effect and be in force from and after its
17-15 passage, and it is so enacted.