1-1 AN ACT 1-2 relating to the creation of the Aldine Community Improvement 1-3 District; providing authority to impose a tax and issue 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 K to read as follows: 1-7 SUBCHAPTER K. ALDINE COMMUNITY IMPROVEMENT DISTRICT 1-8 Sec. 376.451. CREATION OF DISTRICT. (a) The Aldine 1-9 Community Improvement District is created as a special district 1-10 under Section 59, Article XVI, Texas Constitution. 1-11 (b) The board by resolution may change the district's name. 1-12 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of 1-13 the district is necessary to promote, develop, encourage, and 1-14 maintain employment, commerce, transportation, housing, tourism, 1-15 recreation, arts, entertainment, economic development, safety, and 1-16 the public welfare in the Aldine Community area of Harris County. 1-17 (b) The creation of the district and this legislation are 1-18 not to be interpreted to relieve the county from providing the 1-19 level of services, as of the effective date of this subchapter, to 1-20 the area in the district or to release the county from the 1-21 obligations the entity has to provide services to that area. The 1-22 district is created to supplement and not supplant the county 1-23 services provided in the area in the district. 1-24 (c) The creation of the district is essential to accomplish 2-1 the purposes of Section 52, Article III, Section 59, Article XVI, 2-2 and Section 52-a, Article III, Texas Constitution, and other public 2-3 purposes stated in this subchapter. 2-4 Sec. 376.453. DEFINITIONS. In this subchapter: 2-5 (1) "Board" means the board of directors of the 2-6 district. 2-7 (2) "County" means Harris County, Texas. 2-8 (3) "District" means the Aldine Community Improvement 2-9 District. 2-10 (4) "Municipality" means the City of Houston, Texas. 2-11 Sec. 376.454. BOUNDARIES. The district includes all the 2-12 territory contained in the following described area: 2-13 Being 14.79 square miles, more or less, 2-14 Beginning at the northeast corner of Aldine Mail Road and the Hardy 2-15 Toll Road 2-16 Thence north along the east right-of-way line of Hardy Toll Road a 2-17 distance of approximately two (2) miles to the north right-of-way 2-18 line of State Highway 525 2-19 Thence along the north right-of-way line of State Highway 525 2-20 approximately 2.75 miles to the west right-of-way line of John F. 2-21 Kennedy Boulevard 2-22 Thence south along the west right-of-way line of John F. Kennedy 2-23 Boulevard a distance of approximately one (1) mile to the City of 2-24 Houston City limits 2-25 Thence east a distance of approximately one-quarter mile (1/4) mile 2-26 to the east right-of-way line of Heathrow Forest Parkway 2-27 Thence north along the east right-of-way line of Heathrow Forest 3-1 Parkway a distance of approximately one-quarter mile (1/4) mile to 3-2 the City of Houston City limits 3-3 Thence east along the south side of the City of Houston City limits 3-4 a distance of approximately one-half (1/2) mile 3-5 Thence south a distance of approximately one-quarter mile (1/4) 3-6 mile 3-7 Thence east a distance of approximately one-eighth (1/8) mile to 3-8 the east right-of-way line of Sequoia Bend Boulevard 3-9 Thence north along the east right-of-way line of Sequoia Bend 3-10 Boulevard a distance of approximately one-half (1/2) mile to the 3-11 north right-of-way line of State Highway 525 3-12 Thence east along the north right-of-way line of State Highway 525 3-13 a distance of approximately three-quarters (3/4) of one mile to the 3-14 east right-of-way line of Lee Road 3-15 Thence south along the east right-of-way line of Lee Road becoming 3-16 Homestead Road a distance of approximately two and one-half miles 3-17 to the north right-of-way line of Mount Houston Road 3-18 Thence west along the north right-of-way line of Mount Houston Road 3-19 a distance of approximately one-quarter mile to the west line of 3-20 the Southern Pacific Railroad property 3-21 Thence southwest along the Southern Pacific Railroad property a 3-22 distance of approximately one and three-quarters mile to the north 3-23 right-of-way line of Langley Road 3-24 Thence west along the north right-of-way line of Langley Road a 3-25 distance of approximately one mile to the east right-of-way line of 3-26 U.S. Highway 59 3-27 Thence northeast along the east right-of-way line of U.S. Highway 4-1 59 a distance of approximately one-quarter mile to the north 4-2 right-of-way line of Little York Road 4-3 Thence west along the north right-of-way line of Little York Road a 4-4 distance of approximately one-quarter mile to the east right-of-way 4-5 line of Bentley Road 4-6 Thence north along the east right-of-way line of Bentley Road a 4-7 distance of approximately one-quarter mile to the north 4-8 right-of-way line of Sagebrush Road 4-9 Thence west along the north right-of-way line of Sagebrush Road a 4-10 distance of approximately one-third (1/3) mile to the west line of 4-11 Halls Bayou 4-12 Thence south along the west line of Halls Bayou a distance of 4-13 approximately one-quarter mile to the north right-of-way line of 4-14 Little York Road 4-15 Thence west along the north right-of-way line of Little York Road a 4-16 distance of approximately one-half mile to the City of Houston City 4-17 limits line adjacent to and east of Aldine Westfield Road 4-18 Thence north along the City of Houston City limits line adjacent to 4-19 and east of Aldine Westfield Road a distance of approximately 4-20 one-eighth mile along the east line of the City of Houston City 4-21 limits line 4-22 Thence west along the north line of the City of Houston City limits 4-23 line a distance of approximately three-quarter mile to the east 4-24 right-of-way line of Hardy Toll Road 4-25 Thence north along the east right-of-way line of Hardy Toll Road a 4-26 distance of approximately two miles to the north right-of-way line 4-27 of Aldine Mail Road and the Point of Beginning 5-1 Save and Except the Following Parcels: 5-2 Parcel Number One: City of Houston Keith-Weiss Park 5-3 Parcel Number Two: That portion of City of Houston Melrose Park 5-4 east of the right-of-way line of Hardy Toll 5-5 Road 5-6 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, 5-7 facilities, and improvements owned by an electric utility or a 5-8 power generation company as defined by Section 31.002, Utilities 5-9 Code, a telecommunications provider as defined by Section 51.002, 5-10 Utilities Code, or a gas utility as defined by Sections 101.003 and 5-11 121.001, Utilities Code. 5-12 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 5-13 boundaries and field notes of the district form a closure. If a 5-14 mistake is made in the field notes or in copying the field notes in 5-15 the legislative process, the mistake does not in any way affect the 5-16 district's: 5-17 (1) organization, existence, or validity; 5-18 (2) right to issue any type of bond for the purposes 5-19 for which the district is created or to pay the principal of and 5-20 interest on a bond; 5-21 (3) right to impose or collect an assessment or tax; 5-22 or 5-23 (4) legality or operation. 5-24 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 5-25 The district is created to serve a public use and benefit. All the 5-26 land and other property included in the district will be benefited 5-27 by the improvements and services to be provided by the district 6-1 under powers conferred by Section 52, Article III, Section 59, 6-2 Article XVI, and Section 52-a, Article III, Texas Constitution, and 6-3 other powers granted under this subchapter. 6-4 (b) The creation of the district is in the public interest 6-5 and is essential to: 6-6 (1) further the public purposes of the development and 6-7 diversification of the economy of the state; and 6-8 (2) eliminate unemployment and underemployment and 6-9 develop or expand transportation and commerce. 6-10 (c) The district will: 6-11 (1) promote the health, safety, and general welfare of 6-12 residents, employers, potential employees, employees, visitors, 6-13 consumers in the district, and the general public; 6-14 (2) provide needed funding for the Aldine Community 6-15 area to preserve, maintain, and enhance the economic health and 6-16 vitality of the area as a community and business center; and 6-17 (3) further promote the health, safety, welfare, and 6-18 enjoyment of the public by providing pedestrian ways and by 6-19 landscaping and developing certain areas in the district, which are 6-20 necessary for the restoration, preservation, and enhancement of 6-21 scenic beauty. 6-22 (d) Pedestrian ways along or across a street, whether at 6-23 grade or above or below the surface, and street lighting, street 6-24 landscaping, and street art objects are parts of and necessary 6-25 components of a street and are considered to be a street or road 6-26 improvement. 6-27 (e) The district will not act as the agent or 7-1 instrumentality of any private interest even though many private 7-2 interests will be benefited by the district, as will the general 7-3 public. 7-4 Sec. 376.457. APPLICATION OF OTHER LAW. Except as otherwise 7-5 provided by this subchapter, Chapter 375 applies to the district. 7-6 Sec. 376.458. CONSTRUCTION OF SUBCHAPTER. This subchapter 7-7 shall be liberally construed in conformity with the findings and 7-8 purposes stated in this subchapter. 7-9 Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The 7-10 district is governed by a board of nine directors who serve 7-11 staggered terms of four years with four or five members' terms 7-12 expiring June 1 of each odd-numbered year. 7-13 (b) One director must be a resident of the district. 7-14 (c) The board by resolution may change the number of 7-15 directors on the board if the board finds that the change is in the 7-16 best interest of the district, subject to Section 375.061. 7-17 Sec. 376.460. APPOINTMENT AND REMOVAL OF DIRECTORS. Board 7-18 members are appointed and may be removed as provided by Sections 7-19 375.064 and 375.065, except that for purposes of this subchapter 7-20 references in those sections to the governing body of the 7-21 municipality mean the commissioners court of the county. 7-22 Sec. 376.461. QUORUM. (a) Section 375.071 does not apply to 7-23 the district. 7-24 (b) One-half of the board constitutes a quorum. 7-25 (c) Except as provided in Section 376.462, a concurrence of 7-26 a majority of a quorum is required for any official district 7-27 action. 8-1 Sec. 376.462. VOTE REQUIRED FOR AUTHORIZATION OF 8-2 ASSESSMENTS, BONDS, IMPACT FEES, AND TAXES. (a) A majority vote of 8-3 the directors serving is required to authorize the imposition of an 8-4 assessment, impact fee, or tax. 8-5 (b) The written consent of at least two-thirds of the full 8-6 membership of the board is required to authorize the issuance of 8-7 bonds. 8-8 Sec. 376.463. EXERCISE OF POWERS OF DEVELOPMENT CORPORATION. 8-9 The district may exercise the powers of a corporation created under 8-10 Section 4B, Development Corporation Act of 1979 (Article 5190.6, 8-11 Vernon's Texas Civil Statutes). 8-12 Sec. 376.464. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To 8-13 protect the public interest, the district may contract with the 8-14 municipality or the county for the municipality or county to 8-15 provide law enforcement services in the district for a fee. 8-16 Sec. 376.465. CONTRACT WITH POLITICAL SUBDIVISION. The 8-17 municipality, county, or another political subdivision of the 8-18 state, without further authorization, may contract with the 8-19 district to implement a project of the district or assist the 8-20 district in providing the services authorized under this 8-21 subchapter. A contract under this subsection may: 8-22 (1) be for a period on which the parties agree; 8-23 (2) include terms on which the parties agree; 8-24 (3) be payable from taxes or any other sources of 8-25 revenue that may be available for such purpose; or 8-26 (4) provide that taxes or other revenue collected at a 8-27 district project or from a person using or purchasing a commodity 9-1 or service at a district project may be paid or rebated to the 9-2 district under the terms of the contract. 9-3 Sec. 376.466. NONPROFIT CORPORATION. (a) The board by 9-4 resolution may authorize the creation of a nonprofit corporation to 9-5 assist and act on behalf of the district in implementing a project 9-6 or providing a service authorized by this subchapter. 9-7 (b) The board shall appoint the board of directors of a 9-8 nonprofit corporation created under this section. The board of 9-9 directors of the nonprofit corporation shall serve in the same 9-10 manner, term, and conditions as a board of directors of a local 9-11 government corporation created under Chapter 431, Transportation 9-12 Code. 9-13 (c) A nonprofit corporation created under this section has 9-14 the powers of and is considered for purposes of this subchapter to 9-15 be a local government corporation created under Chapter 431, 9-16 Transportation Code. 9-17 (d) A nonprofit corporation created under this section may 9-18 implement any project and provide any service this subchapter 9-19 authorizes. 9-20 Sec. 376.467. DISBURSEMENTS OR TRANSFERS OF FUNDS. The board 9-21 by resolution shall establish the number of directors' signatures 9-22 and the procedure required for a disbursement or transfer of the 9-23 district's money. 9-24 Sec. 376.468. MUNICIPAL APPROVAL. (a) Except as provided by 9-25 Subsection (b), the district must obtain approval from the 9-26 municipality's governing body of: 9-27 (1) the issuance of bonds for an improvement project; 10-1 and 10-2 (2) the plans and specifications of an improvement 10-3 project financed by the bonds. 10-4 (b) If the district obtains approval from the municipality's 10-5 governing body of a capital improvements budget for a period not to 10-6 exceed five years, the district may finance the capital 10-7 improvements and issue bonds specified in the budget without 10-8 further approval from the municipality. 10-9 (c) The district must obtain approval from the 10-10 municipality's governing body of the plans and specifications of 10-11 any district improvement project related to the use of land owned 10-12 by the county, an easement granted by the county, or a right-of-way 10-13 of a street, road, or highway. 10-14 (d) Except as provided by Section 375.263, a municipality is 10-15 not obligated to pay any bonds, notes, or other obligations of the 10-16 district. 10-17 Sec. 376.469. ASSESSMENTS. (a) The board may impose and 10-18 collect an assessment for any purpose authorized by this 10-19 subchapter. 10-20 (b) Assessments, reassessments, or assessments resulting 10-21 from an addition to or correction of the assessment roll by the 10-22 district, penalties and interest on an assessment or reassessment, 10-23 expenses of collection, and reasonable attorney's fees incurred by 10-24 the district: 10-25 (1) are a first and prior lien against the property 10-26 assessed; 10-27 (2) are superior to any other lien or claim other than 11-1 a lien or claim for county, school district, or municipal ad 11-2 valorem taxes; and 11-3 (3) are the personal liability of and charge against 11-4 the owners of the property even if the owners are not named in the 11-5 assessment proceedings. 11-6 (c) The lien is effective from the date of the resolution of 11-7 the board levying the assessment until the assessment is paid. The 11-8 board may enforce the lien in the same manner that the board may 11-9 enforce an ad valorem tax lien against real property. 11-10 Sec. 376.470. SALES AND USE TAX. (a) The district may 11-11 impose a sales and use tax if authorized by a majority of the 11-12 qualified voters of the district voting at an election called for 11-13 that purpose. Revenue from the tax may be used for any purpose for 11-14 which ad valorem tax revenue of the district may be used. 11-15 (b) The district may not adopt a tax under this subchapter 11-16 if as a result of the adoption of the tax the combined rate of all 11-17 sales and use taxes imposed by the county and other political 11-18 subdivisions of this state having territory in the county would 11-19 exceed two percent at any location in the district. 11-20 (c) If the voters of the county approve the adoption of the 11-21 tax at an election held on the same election date on which another 11-22 political subdivision adopts a sales and use tax or approves the 11-23 increase in the rate of its sales and use tax and as a result the 11-24 combined rate of all sales and use taxes imposed by the district 11-25 and other political subdivisions of this state having territory in 11-26 the district would exceed two percent at any location in the 11-27 county, the election to adopt a sales and use tax under this 12-1 subchapter has no effect. 12-2 Sec. 376.471. MAINTENANCE TAX. (a) If authorized at an 12-3 election held in accordance with Section 376.472, the district may 12-4 impose and collect an annual ad valorem tax on taxable property in 12-5 the district for: 12-6 (1) the maintenance and operation of the district; 12-7 (2) improvements constructed or acquired by the 12-8 district; or 12-9 (3) the provision of services. 12-10 (b) The board shall determine the tax rate. 12-11 Sec. 376.472. ELECTIONS. (a) In addition to the elections 12-12 the district must hold under Subchapter L, Chapter 375, the 12-13 district shall hold an election in the manner provided by that 12-14 subchapter to obtain voter approval before the district imposes a 12-15 maintenance tax or issues bonds payable from ad valorem taxes or 12-16 assessments. 12-17 (b) The board may include more than one purpose in a single 12-18 proposition at an election. 12-19 Sec. 376.473. PROPERTY EXEMPTED FROM TAX, FEE, OR 12-20 ASSESSMENT. (a) The district may not impose an impact fee or 12-21 assessment under Chapter 375 on a residential property, multiunit 12-22 residential property, or condominium. 12-23 (b) The district may not impose an assessment or impact fee 12-24 on the property of an electric utility, gas utility, power 12-25 generation company, or telecommunications provider. In this 12-26 subsection, "electric utility" and "power generation company" have 12-27 the meanings assigned by Section 31.002, Utilities Code, "gas 13-1 utility" has the meaning assigned by Sections 101.003 and 121.001, 13-2 Utilities Code, and "telecommunications provider" has the meaning 13-3 assigned by Section 51.002(10), Utilities Code. 13-4 Sec. 376.474. NO EMINENT DOMAIN POWER. The district may not 13-5 exercise the power of eminent domain. 13-6 Sec. 376.475. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH 13-7 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district 13-8 that has debt. If the vote is in favor of dissolution, the 13-9 district shall remain in existence solely for the limited purpose 13-10 of discharging its debts. The dissolution is effective when all 13-11 debts have been discharged. 13-12 (b) Section 375.264 does not apply to the district. 13-13 Sec. 376.476. ANNEXATION OF CERTAIN TERRITORY BY GOVERNING 13-14 BODY OF MUNICIPALITY. (a) If territory in the municipality's limit 13-15 or extraterritorial jurisdiction is included in the district, the 13-16 municipality's governing body may remove that territory from the 13-17 district if the district does not have bonded indebtedness. 13-18 (b) To remove territory under Subsection (a), the governing 13-19 body of the municipality must notify the secretary of the board of 13-20 the district in writing that the territory is excluded from the 13-21 district's territory. 13-22 (c) If a municipality annexes territory that is in its 13-23 extraterritorial jurisdiction and included in the district, the 13-24 governing body of the municipality shall notify the secretary of 13-25 the board of the district in writing that the annexed territory is 13-26 excluded from the district's territory. 13-27 SECTION 2. The legislature finds that: 14-1 (1) proper and legal notice of the intention to 14-2 introduce this Act, setting forth the general substance of this 14-3 Act, has been published as provided by law, and the notice and a 14-4 copy of this Act have been furnished to all persons, agencies, 14-5 officials, or entities to which they are required to be furnished 14-6 by the constitution and laws of this state, including the 14-7 governor, who has submitted the notice and Act to the Texas Natural 14-8 Resource Conservation Commission; 14-9 (2) the Texas Natural Resource Conservation Commission 14-10 has filed its recommendations relating to this Act with the 14-11 governor, lieutenant governor, and speaker of the house of 14-12 representatives within the required time; 14-13 (3) the general law relating to consent by political 14-14 subdivisions to the creation of districts with conservation, 14-15 reclamation, and road powers and the inclusion of land in those 14-16 districts has been complied with; and 14-17 (4) all requirements of the constitution and laws of 14-18 this state and the rules and procedures of the legislature with 14-19 respect to the notice, introduction, and passage of this Act have 14-20 been fulfilled and accomplished. 14-21 SECTION 3. (a) Section 375.062, Local Government Code, and 14-22 Section 376.460, Local Government Code, as added by this Act, do 14-23 not apply to the initial board of directors of the Aldine Community 14-24 Improvement District. 14-25 (b) The initial board of directors consists of the following 14-26 persons: 14-27 Pos. No. Name of Director 15-1 1 Clyde Baily 15-2 2 Sylvia Bolling 15-3 3 Reyes Garcia 15-4 4 Leland Jauer 15-5 5 V. E. (Vic) Mauldin 15-6 6 W. Steve Mead 15-7 7 Art Murillo 15-8 8 Ray Shotwell 15-9 9 Maria Espinoza 15-10 (c) Of the initial directors, the directors appointed for 15-11 positions 1 through 4 serve until June 1, 2003, and the directors 15-12 appointed for positions 5 through 9 serve until June 1, 2005. 15-13 SECTION 4. This Act takes effect immediately if it receives 15-14 a vote of two-thirds of all the members elected to each house, as 15-15 provided by Section 39, Article III, Texas Constitution. If this 15-16 Act does not receive the vote necessary for immediate effect, this 15-17 Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 741 was passed by the House on March 29, 2001, by the following vote: Yeas 146, Nays 0, 2 present, not voting; and that the House concurred in Senate amendments to H.B. No. 741 on May 17, 2001, by the following vote: Yeas 145, Nays 0, 1 present, not voting. _______________________________ Chief Clerk of the House I certify that H.B. No. 741 was passed by the Senate, with amendments, on May 15, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not voting. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor