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 * * * * *