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.