1-1     By:  Lindsay                                          S.B. No. 1866
 1-2           (In the Senate - Filed April 15, 1999; April 16, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 23, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-6     April 23, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1866                 By:  Lindsay
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the creation of the Harris County Municipal Management
1-11     District No. 1; providing authority to impose a tax and issue
1-12     bonds.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-15     adding Subchapter H to read as follows:
1-16      SUBCHAPTER H.  HARRIS COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1
1-17           Sec. 376.301.  CREATION OF DISTRICT.  (a)  The Harris County
1-18     Municipal Management District No. 1 is created as a special
1-19     district under Section 59, Article XVI, Texas Constitution.
1-20           (b)  The board by resolution may change the district's name.
1-21           (c)  The creation of the district is essential to accomplish
1-22     the purposes of Sections 52 and 52-a, Article III, and Section 59,
1-23     Article XVI, Texas Constitution, and other public purposes stated
1-24     in this subchapter.
1-25           Sec. 376.302.  DECLARATION OF INTENT.  (a)  The creation of
1-26     the district is necessary to promote, develop, encourage, and
1-27     maintain employment, commerce, transportation, housing, tourism,
1-28     recreation, arts, entertainment, economic development, safety, and
1-29     the public welfare in the district.
1-30           (b)  The creation of the district and this legislation are
1-31     not to be interpreted to relieve the county or the municipality
1-32     from providing the level of services, as of the effective date of
1-33     this subchapter, to the area in the district or to release the
1-34     county or the municipality from the obligations each entity has to
1-35     provide services to that area.  The district is created to
1-36     supplement and not supplant the municipal or county services
1-37     provided in the area in the district.
1-38           (c)  By creating the district and in authorizing the
1-39     municipality, county, and other political subdivisions to contract
1-40     with the district, the legislature has established a program to
1-41     accomplish the public purposes set out in Section 52-a, Article
1-42     III, Texas Constitution.
1-43           Sec. 376.303.  DEFINITIONS.  In this subchapter:
1-44                 (1)  "Board" means the board of directors of the
1-45     district.
1-46                 (2)  "County" means Harris County.
1-47                 (3)  "District" means the Harris County Municipal
1-48     Management District No. 1.
1-49                 (4)  "Municipality" means the City of Houston.
1-50                 (5)  "Utility" means a person that provides to the
1-51     public gas, electricity, telephone, sewage, or water service.
1-52           Sec. 376.304.  BOUNDARIES.  The district includes all the
1-53     territory contained within the following described area:
1-54           BEGINNING AT A POINT located at the intersection of the east
1-55     right-of-way line of Bunker Hill Road and the north right-of-way
1-56     line of Interstate Highway 10 frontage road, in the City of
1-57     Houston, Harris County, Texas;
1-58           THENCE, in a southerly direction crossing Interstate Highway
1-59     10 along the east right-of-way line of Bunker Hill Road to the
1-60     extension of the south right-of-way line of Barryknoll Lane;
1-61           THENCE, in a westerly direction following the south
1-62     right-of-way line of Barryknoll Lane to the northwest corner of the
1-63     Riedel Estates;
1-64           THENCE, in a southerly direction approximately 1,050 feet
 2-1     following the west property line of Riedel Estates to the northeast
 2-2     corner of Memorial City Section 3;
 2-3           THENCE, in a westerly direction approximately 700 feet
 2-4     following the north property line of Memorial City Section 3 to the
 2-5     west line of a H.C.F.C.D. easement;
 2-6           THENCE, in a northerly direction approximately 840 feet
 2-7     following the west line of H.C.F.C.D. easement to a point in the
 2-8     north line of Memorial Hollow Section 8;
 2-9           THENCE, in a west northwesterly direction approximately 625
2-10     feet following the north line of Memorial Hollow Section 8, to a
2-11     point in the south right-of-way line of Barryknoll Lane;
2-12           THENCE, in a westerly direction to the intersection of the
2-13     south right-of-way line of Barryknoll Lane and the east
2-14     right-of-way line of Plantation Road;
2-15           THENCE, in a southerly direction approximately 620 feet
2-16     following the east right-of-way line of Plantation Road to a point;
2-17           THENCE, in a west northwesterly direction approximately 820
2-18     feet, along the north property line of Memorial Hollow Section 7,
2-19     to a point on the west right-of-way line of Gessner Road;
2-20           THENCE, in a northerly direction approximately 600 feet
2-21     following the west right-of-way line of Gessner Road, to the
2-22     northeast corner of Memorial Hollow Section 6 Replat;
2-23           THENCE, in a westerly direction along the north property line
2-24     of Memorial Hollow Section 6 Replat to the east right-of-way line
2-25     Frostwood Drive;
2-26           THENCE, in a southerly direction approximately 60 feet along
2-27     a curve to the left, being the east right-of-way line of Frostwood
2-28     Drive;
2-29           THENCE, in a westerly direction approximately 450 feet along
2-30     the north subdivision line to the northwest corner of Memorial
2-31     Hollow Section 5 Replat;
2-32           THENCE, in a northerly direction approximately 2,400 feet to
2-33     a point in the north right-of-way line of the Interstate Highway 10
2-34     frontage road;
2-35           THENCE, in an easterly direction along the north right-of-way
2-36     of Interstate Highway 10 frontage road approximately 5,400 feet to
2-37     the POINT OF BEGINNING.
2-38           AND FURTHER SAVE AND EXCEPT the subdivision known as Memorial
2-39     Village Townhouses Section 1 and Memorial Village Townhouses
2-40     Section 2, more particularly described by metes and bounds as
2-41     follows;
2-42           BEGINNING at a point approximately 190 feet west along the
2-43     north right-of-way of Barryknoll Lane from the intersection of
2-44     Barryknoll Lane and the west right-of-way line of Bunker Hill Road;
2-45           THENCE, in a westerly direction approximately 570 feet along
2-46     the north right-of-way of Barryknoll Lane to the southwest corner
2-47     of Memorial Village Townhouses Section 2;
2-48           THENCE, in a northerly direction approximately 435 feet to a
2-49     point for corner;
2-50           THENCE, in an easterly direction approximately 180 feet to a
2-51     point for corner;
2-52           THENCE, in a northerly direction approximately 136 feet to a
2-53     point for corner;
2-54           THENCE, in a westerly direction approximately 183 feet to a
2-55     point for corner;
2-56           THENCE, in a northerly direction approximately 405 feet to
2-57     the northeast corner of Memorial City Terrace Replat to a point for
2-58     corner;
2-59           THENCE, in an easterly direction approximately 770 feet to a
2-60     point in the west right-of-way line of Bunker Hill Road;
2-61           THENCE, in a southerly direction approximately 60 feet along
2-62     the west right-of-way of Bunker Hill Road to a point for corner;
2-63           THENCE, in a westerly direction approximately 200 feet to a
2-64     point for corner;
2-65           THENCE, in a southerly direction approximately 920 feet to
2-66     the north right-of-way line on Barryknoll Lane and being the POINT
2-67     OF BEGINNING.
2-68           SAVE AND EXCEPT all tracts or parcels of land, rights-of-way,
2-69     facilities, and improvements owned by a utility.
 3-1           Sec. 376.305.  FINDINGS RELATING TO BOUNDARIES.  The
 3-2     boundaries and field notes of the district form a closure.  If a
 3-3     mistake is made in the field notes or in copying the field notes in
 3-4     the legislative process, it does not affect the district's:
 3-5                 (1)  organization, existence, or validity;
 3-6                 (2)  right to issue any type of bond for the purposes
 3-7     for which the district is created or to pay the principal of and
 3-8     interest on a bond;
 3-9                 (3)  right to impose or collect an assessment or taxes;
3-10     or
3-11                 (4)  legality or operation.
3-12           Sec. 376.306.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
3-13     (a)  All the land and other property included in the district will
3-14     be benefited by the improvements and services to be provided by the
3-15     district under powers conferred by Sections 52 and 52-a, Article
3-16     III, and Section 59, Article XVI, Texas Constitution, and other
3-17     powers granted under this subchapter, and the district is created
3-18     to serve a public use and benefit.
3-19           (b)  The creation of the district is in the public interest
3-20     and is essential to:
3-21                 (1)  further the public purposes of the development and
3-22     diversification of the economy of the state; and
3-23                 (2)  eliminate unemployment and underemployment and
3-24     develop or expand transportation and commerce.
3-25           (c)  The district will:
3-26                 (1)  promote the health, safety, and general welfare of
3-27     residents, employers, employees, visitors, consumers in the
3-28     district, and the general public;
3-29                 (2)  provide needed funding to preserve, maintain, and
3-30     enhance the economic health and vitality of the area as a community
3-31     and business center; and
3-32                 (3)  further promote the health, safety, welfare, and
3-33     enjoyment of the public by providing pedestrian ways and by
3-34     landscaping and developing certain areas in the district, which are
3-35     necessary for the restoration, preservation, and enhancement of
3-36     scenic and aesthetic beauty.
3-37           (d)  Pedestrian ways along or across a street, whether at
3-38     grade or above or below the surface, and street lighting, street
3-39     landscaping, and street art objects are parts of and necessary
3-40     components of a street and are considered to be a street or road
3-41     improvement.
3-42           (e)  The district may not act as the agent or instrumentality
3-43     of any private interest even though many private interests will be
3-44     benefited by the district, as will the general public.
3-45           Sec. 376.307.  APPLICATION OF OTHER LAW.  Except as otherwise
3-46     provided by this subchapter, Chapter 375 applies to the district.
3-47           Sec. 376.308.  LIBERAL CONSTRUCTION OF SUBCHAPTER.  This
3-48     subchapter shall be liberally construed in conformity with the
3-49     findings and purposes stated in this subchapter.
3-50           Sec. 376.309.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
3-51     district is governed by a board of 11 directors who serve staggered
3-52     terms of four years.
3-53           (b)  A director shall receive compensation as provided by
3-54     Section 49.060, Water Code.
3-55           Sec. 376.310.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and
3-56     members of the governing body of the municipality shall appoint
3-57     directors from persons recommended by the board.  A person is
3-58     appointed if a majority of the members and the mayor vote to
3-59     appoint that person.
3-60           (b)  A person may not be appointed to the board if the
3-61     appointment of that person would result in less than two-thirds of
3-62     the directors residing in the municipality.
3-63           Sec. 376.311.  EX OFFICIO BOARD MEMBERS.  (a)  The following
3-64     persons shall serve as a nonvoting ex officio director:
3-65                 (1)  the director of the following departments of the
3-66     municipality:
3-67                       (A)  parks and recreation;
3-68                       (B)  planning and development;
3-69                       (C)  public works; and
 4-1                       (D)  civic center;
 4-2                 (2)  the municipality's chief of police;
 4-3                 (3)  the county's general manager of the Metropolitan
 4-4     Transit Authority; and
 4-5                 (4)  the presidents of any institutions of higher
 4-6     learning located in the district.
 4-7           (b)  If a department described by Subsection (a) is
 4-8     consolidated, renamed, or changed, the board may appoint a director
 4-9     of the consolidated, renamed, or changed department as a nonvoting
4-10     ex officio board member.  If a department described by Subsection
4-11     (a) is abolished, the board may appoint a representative of another
4-12     department of the municipality that performs duties comparable to
4-13     those performed by the abolished department.
4-14           (c)  The board may appoint the presiding officer of a
4-15     nonprofit corporation that is actively involved in activities in
4-16     the municipality's midtown area to serve as a nonvoting ex officio
4-17     director.
4-18           Sec. 376.312.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
4-19     (a)  Except as provided in this section:
4-20                 (1)  a director may participate in all board votes and
4-21     decisions; and
4-22                 (2)  Chapter 171 governs conflict of interest for board
4-23     members.
4-24           (b)  Section 171.004 does not apply to the district.  A
4-25     director who has a substantial interest in a business or charitable
4-26     entity that will receive a pecuniary benefit from a board action
4-27     shall file a one-time affidavit declaring the interest.  An
4-28     additional affidavit is not required if the director's interest
4-29     changes.  After the affidavit is filed with the board secretary,
4-30     the director may participate in a discussion or vote on that action
4-31     if:
4-32                 (1)  a majority of the directors have a similar
4-33     interest in the same entity; or
4-34                 (2)  all other similar business or charitable entities
4-35     in the district will receive a similar pecuniary benefit.
4-36           (c)  A director who is also an officer or employee of a
4-37     public entity may not participate in the discussion of or vote on a
4-38     matter regarding a contract with that same public entity.
4-39           (d)  For purposes of this section, a director has a
4-40     substantial interest in a charitable entity in the same manner that
4-41     a person would have a substantial interest in a business entity
4-42     under Section 171.002.
4-43           Sec. 376.313.  ADDITIONAL POWERS OF DISTRICT.  (a)  The
4-44     district may exercise the powers given to a corporation created
4-45     under Section 4B, Development Corporation Act of 1979 (Article
4-46     5190.6, Vernon's Texas Civil Statutes).
4-47           (b)  The district may exercise the powers given to a housing
4-48     finance corporation created under Chapter 394 to provide housing or
4-49     residential development projects in the district.
4-50           (c)  The district may exercise the powers granted to an
4-51     eligible political subdivision under Chapter 221, Natural Resources
4-52     Code.
4-53           (d)  The district may exercise its powers in areas outside
4-54     the boundaries of the district if the board determines that there
4-55     is a benefit to the district in exercising that power.
4-56           Sec. 376.314.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
4-57     AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
4-58     make an agreement with or accept a donation, grant, or loan from
4-59     any person.
4-60           (b)  The implementation of a project is a governmental
4-61     function or service for the purposes of Chapter 791, Government
4-62     Code.
4-63           (c)  To protect the public interest, the district may
4-64     contract with the municipality or the county for the municipality
4-65     or county to provide law enforcement services in the district for a
4-66     fee.
4-67           Sec. 376.315.  NONPROFIT CORPORATION.  (a)  The board by
4-68     resolution may authorize the creation of a nonprofit corporation to
4-69     assist and act on behalf of the district in implementing a project
 5-1     or providing a service authorized by this subchapter.
 5-2           (b)  The board shall appoint the board of directors of a
 5-3     nonprofit corporation created under this section.  The board of
 5-4     directors of the nonprofit corporation shall serve in the same
 5-5     manner, term, and conditions as a board of directors of a local
 5-6     government corporation created under Chapter 431, Transportation
 5-7     Code.
 5-8           (c)  A nonprofit corporation created under this section has
 5-9     the powers of and is considered for purposes of this subchapter to
5-10     be a local government corporation created under Chapter 431,
5-11     Transportation Code.
5-12           (d)  A nonprofit corporation created under this section may
5-13     implement any project and provide any service authorized by this
5-14     subchapter.
5-15           Sec. 376.316.  ANNEXATION.  The district may:
5-16                 (1)  annex territory as provided by Subchapter C,
5-17     Chapter 375; and
5-18                 (2)  annex territory located inside the boundaries of a
5-19     reinvestment zone created by the municipality under Chapter 311,
5-20     Tax Code, if the governing body of the municipality consents to the
5-21     annexation.
5-22           Sec. 376.317.  ASSESSMENTS.  (a)  The board may impose and
5-23     collect an assessment for any purpose authorized by this
5-24     subchapter.  The imposition of an assessment requires that
5-25     two-thirds of the board members vote in favor of the imposition.
5-26           (b)  Assessments, reassessments, or assessments resulting
5-27     from an addition to or correction of the assessment roll by the
5-28     district, penalties and interest on an assessment or reassessment,
5-29     expenses of collection, and reasonable attorney's fees incurred by
5-30     the district:
5-31                 (1)  are a first and prior lien against the property
5-32     assessed;
5-33                 (2)  are superior to any other lien or claim other than
5-34     a lien or claim levied by a county, municipality, school district,
5-35     or other political subdivision; and
5-36                 (3)  are the personal liability of and charge against
5-37     the owners of the property even if the owners are not named in the
5-38     assessment proceedings.
5-39           (c)  The lien is effective from the date of the resolution of
5-40     the board levying the assessment until the assessment is paid.  The
5-41     board may enforce the lien in the same manner that the board may
5-42     enforce an ad valorem tax lien against real property.
5-43           Sec. 376.318.  PETITION REQUIRED FOR FINANCING SERVICES AND
5-44     IMPROVEMENTS.  The board may not finance a service or improvement
5-45     project under this subchapter unless a written petition requesting
5-46     the improvement or service has been filed with the board.  The
5-47     petition must be signed by the owners of a majority of the assessed
5-48     value of real property in the district as determined by the most
5-49     recent certified county property tax rolls.
5-50           Sec. 376.319.  ELECTIONS.  (a)  In addition to the elections
5-51     the district must hold under Subchapter L, Chapter 375, the
5-52     district shall hold an election in the manner provided by that
5-53     subchapter to obtain voter approval before the district imposes a
5-54     maintenance tax or issues bonds payable from ad valorem taxes or
5-55     assessments.
5-56           (b)  The board may include more than one purpose in a single
5-57     proposition at an election.
5-58           Sec. 376.320.  MAINTENANCE TAX.  (a)  The district may impose
5-59     and collect an annual ad valorem tax on taxable property in the
5-60     district for the maintenance and operation of the district and the
5-61     improvements constructed or acquired by the district or for the
5-62     provision of services only if:
5-63                 (1)  two-thirds of the board members vote in favor of
5-64     imposing the tax; and
5-65                 (2)  the tax is authorized at an election held in
5-66     accordance with Section 376.319.
5-67           (b)  The board shall determine the tax rate.
5-68           Sec. 376.321.  CERTAIN RESIDENTIAL PROPERTY IS NOT EXEMPT.
5-69     (a)  The board may not exempt a single-family residential property
 6-1     from an impact fee, assessment, or tax imposed under this
 6-2     subchapter.
 6-3           (b)  Sections 375.161 and 375.164 do not apply to the
 6-4     district.
 6-5           Sec. 376.322.  UTILITIES.  The district may not impose an
 6-6     assessment or impact fee on a utility's property.
 6-7           Sec. 376.323.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
 6-8     board by resolution shall establish the number of directors'
 6-9     signatures and the procedure required for a disbursement or
6-10     transfer of the district's money.
6-11           Sec. 376.324.  COMPETITIVE BIDDING LIMIT.  Section 375.221
6-12     does not apply to the district unless the contract is for more than
6-13     $25,000.
6-14           Sec. 376.325.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
6-15     OUTSTANDING DEBTS.  (a)  The board may vote to dissolve a district
6-16     that has debt.  If the vote is in favor of dissolution, the
6-17     district shall remain in existence solely for the limited purpose
6-18     of discharging its debts.  The dissolution is effective when all
6-19     debts have been discharged.
6-20           (b)  Section 375.264 does not apply to the district.
6-21           SECTION 2.  The legislature finds that:
6-22                 (1)  proper and legal notice of the intention to
6-23     introduce this Act, setting forth the general substance of this
6-24     Act, has been published as provided by law, and the notice and a
6-25     copy of this Act have been furnished to all persons, agencies,
6-26     officials, or entities to which they are required to be furnished
6-27     by the constitution and laws of this state, including the governor,
6-28     who has submitted the notice and Act to the Texas Natural Resource
6-29     Conservation Commission;
6-30                 (2)  the Texas Natural Resource Conservation Commission
6-31     has filed its recommendations relating to this Act with the
6-32     governor, lieutenant governor, and speaker of the house of
6-33     representatives within the required time;
6-34                 (3)  the general law relating to consent by political
6-35     subdivisions to the creation of districts with conservation,
6-36     reclamation, and road powers and the inclusion of land in those
6-37     districts has been complied with; and
6-38                 (4)  all requirements of the constitution and laws of
6-39     this state and the rules and procedures of the legislature with
6-40     respect to the notice, introduction, and passage of this Act have
6-41     been fulfilled and accomplished.
6-42           SECTION 3.  Notwithstanding Section 376.310, Local Government
6-43     Code, as added by this Act:
6-44                 (1)  the initial board of directors of the Harris
6-45     County Municipal Management District No. 1 consists of:
6-46                 Pos. No.    Name of Board Member
6-47                 1.          Bill Huntsinger
6-48                 2.          Jana Lee
6-49                 3.          Kathy Miller
6-50                 4.          Randy Nerren
6-51                 5.          Lisa Zinis
6-52                 6.          Marshall Heins
6-53                 7.          Larry Beerman
6-54                 8.          John Chang
6-55                 9.          Gracie Saenz
6-56                 10.         Billy Reed
6-57                 11.         Bill Mosley; and
6-58                 (2)  of the initial board members, the members
6-59     appointed for positions 1 through 6 serve until June 1, 2003, and
6-60     the members appointed for positions 7 through 11 serve until June
6-61     1, 2001.
6-62           SECTION 4.  The importance of this legislation and the
6-63     crowded condition of the calendars in both houses create an
6-64     emergency and an imperative public necessity that the
6-65     constitutional rule requiring bills to be read on three several
6-66     days in each house be suspended, and this rule is hereby suspended,
6-67     and that this Act take effect and be in force from and after its
6-68     passage, and it is so enacted.
6-69                                  * * * * *