By Bailey                                              H.B. No. 741
         77R2271 MXM-F                           
                                A BILL TO BE ENTITLED
 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 as
 5-8     defined by Section 31.002, Utilities Code.
 5-9           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES. The
5-10     boundaries and field notes of the district form a closure. If a
5-11     mistake is made in the field notes or in copying the field notes in
5-12     the legislative process, the mistake does not in any way affect the
5-13     district's:
5-14                 (1)  organization, existence, or validity;
5-15                 (2)  right to issue any type of bond for the purposes
5-16     for which the district is created or to pay the principal of and
5-17     interest on a bond;
5-18                 (3)  right to impose or collect an assessment or tax;
5-19     or
5-20                 (4)  legality or operation.
5-21           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
5-22     The district is created to serve a public use and benefit.  All the
5-23     land and other property included in the district will be benefited
5-24     by the improvements and services to be provided by the district
5-25     under powers conferred by Section 52, Article III, Section 59,
5-26     Article XVI, and Section 52-a, Article III, Texas Constitution, and
5-27     other powers granted under this subchapter.
 6-1           (b)  The creation of the district is in the public interest
 6-2     and is essential to:
 6-3                 (1)  further the public purposes of the development and
 6-4     diversification of the economy of the state; and
 6-5                 (2)  eliminate unemployment and underemployment and
 6-6     develop or expand transportation and commerce.
 6-7           (c)  The district will:
 6-8                 (1)  promote the health, safety, and general welfare of
 6-9     residents, employers, potential employees, employees, visitors,
6-10     consumers in the district, and the general public;
6-11                 (2)  provide needed funding for the Aldine Community
6-12     area to preserve, maintain, and enhance the economic health and
6-13     vitality of the area as a community and business center; and
6-14                 (3)  further promote the health, safety, welfare, and
6-15     enjoyment of the public by providing pedestrian ways and by
6-16     landscaping and developing certain areas in the district, which are
6-17     necessary for the restoration, preservation, and enhancement of
6-18     scenic beauty.
6-19           (d)  Pedestrian ways along or across a street, whether at
6-20     grade or above or below the surface, and street lighting, street
6-21     landscaping, and street art objects are parts of and necessary
6-22     components of a street and are considered to be a street or road
6-23     improvement.
6-24           (e)  The district will not act as the agent or
6-25     instrumentality of any private interest even though many private
6-26     interests will be benefited by the district, as will the general
6-27     public.
 7-1           Sec. 376.457.  APPLICATION OF OTHER LAW. Except as otherwise
 7-2     provided by this subchapter, Chapter 375 applies to the district.
 7-3           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER. This subchapter
 7-4     shall be liberally construed in conformity with the findings and
 7-5     purposes stated in this subchapter.
 7-6           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL. (a)  The
 7-7     district is governed by a board of nine directors who serve
 7-8     staggered terms of four years with four or five members' terms
 7-9     expiring June 1 of each odd-numbered year.
7-10           (b)  One director must be a resident of the district.
7-11           (c)  The board by resolution may change the number of
7-12     directors on the board if the board finds that the change is in the
7-13     best interest of the district, subject to Section 375.061.
7-14           Sec. 376.460.  APPOINTMENT AND REMOVAL OF DIRECTORS. Board
7-15     members are appointed and may be removed as provided by Sections
7-16     375.064 and 375.065, except that for purposes of this subchapter
7-17     references in those sections to the governing body of the
7-18     municipality mean the commissioners court of the county.
7-19           Sec. 376.461.  QUORUM. (a)  Section 375.071 does not apply to
7-20     the district.
7-21           (b)  One-half of the board constitutes a quorum.
7-22           (c)  Except as provided in Section 376.462, a concurrence of
7-23     a majority of a quorum is required for any official district
7-24     action.
7-25           Sec. 376.462.  VOTE REQUIRED FOR AUTHORIZATION OF
7-26     ASSESSMENTS, BONDS, IMPACT FEES, AND TAXES. (a)  A majority vote of
7-27     the directors serving is required to authorize the imposition of an
 8-1     assessment, impact fee, or tax.
 8-2           (b)  The written consent of at least two-thirds of the full
 8-3     membership of the board is required to authorize the issuance of
 8-4     bonds.
 8-5           Sec. 376.463.  EXERCISE OF POWERS OF DEVELOPMENT CORPORATION.
 8-6     The district may exercise the powers of a corporation created under
 8-7     Section 4B, Development Corporation Act of 1979 (Article 5190.6,
 8-8     Vernon's Texas Civil Statutes).
 8-9           Sec. 376.464.  AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To
8-10     protect the public interest, the district may contract with the
8-11     municipality or the county for the municipality or county to
8-12     provide law enforcement services in the district for a fee.
8-13           Sec. 376.465.  CONTRACT WITH POLITICAL SUBDIVISION. The
8-14     municipality, county, or another political subdivision of the
8-15     state, without further authorization, may contract with the
8-16     district to implement a project of the district or assist the
8-17     district in providing the services authorized under this
8-18     subchapter.  A contract under this subsection may:
8-19                 (1)  be for a period on which the parties agree;
8-20                 (2)  include terms on which the parties agree;
8-21                 (3)  be payable from taxes or any other sources of
8-22     revenue that may be available for such purpose; or
8-23                 (4)  provide that taxes or other revenue collected at a
8-24     district project or from a person using or purchasing a commodity
8-25     or service at a district project may be paid or rebated to the
8-26     district under the terms of the contract.
8-27           Sec. 376.466.  NONPROFIT CORPORATION. (a)  The board by
 9-1     resolution may authorize the creation of a nonprofit corporation to
 9-2     assist and act on behalf of the district in implementing a project
 9-3     or providing a service authorized by this subchapter.
 9-4           (b)  The board shall appoint the board of directors of a
 9-5     nonprofit corporation created under this section.  The board of
 9-6     directors of  the nonprofit corporation shall serve in the same
 9-7     manner, term, and conditions as a board of directors of a local
 9-8     government corporation created under Chapter 431, Transportation
 9-9     Code.
9-10           (c)  A nonprofit corporation created under this section has
9-11     the powers of and is considered for purposes of this subchapter to
9-12     be a local government corporation created under Chapter 431,
9-13     Transportation Code.
9-14           (d)  A nonprofit corporation created under this section may
9-15     implement any project and provide any service this subchapter
9-16     authorizes.
9-17           Sec. 376.467.  DISBURSEMENTS OR TRANSFERS OF FUNDS. The board
9-18     by resolution shall establish the number of directors' signatures
9-19     and the procedure required for a disbursement or transfer of the
9-20     district's money.
9-21           Sec. 376.468.  MUNICIPAL APPROVAL. (a)  Except as provided by
9-22     Subsection (b), the district must obtain approval from the
9-23     municipality's governing body of:
9-24                 (1)  the issuance of bonds for an improvement project;
9-25     and
9-26                 (2)  the plans and specifications of an improvement
9-27     project financed by the bonds.
 10-1          (b)  If the district obtains approval from the municipality's
 10-2    governing body of a capital improvements budget for a period not to
 10-3    exceed five years, the district may finance the capital
 10-4    improvements and issue bonds specified in the budget without
 10-5    further approval from the municipality.
 10-6          (c)  The district must obtain approval from the
 10-7    municipality's governing body of the plans and specifications of
 10-8    any district improvement project related to the use of land owned
 10-9    by the county, an easement granted by the county, or a right-of-way
10-10    of a street, road, or highway.
10-11          (d)  Except as provided by Section 375.263, a municipality is
10-12    not obligated to pay any bonds, notes, or other obligations of the
10-13    district.
10-14          Sec. 376.469.  ASSESSMENTS. (a)  The board may impose and
10-15    collect an assessment for any purpose authorized by this
10-16    subchapter.
10-17          (b)  Assessments, reassessments, or assessments resulting
10-18    from an addition to or correction of the assessment roll by the
10-19    district, penalties and interest on an assessment or reassessment,
10-20    expenses of collection, and reasonable attorney's fees incurred by
10-21    the district:
10-22                (1)  are a first and prior lien against the property
10-23    assessed;
10-24                (2)  are superior to any other lien or claim other than
10-25    a lien or claim for county, school district, or municipal ad
10-26    valorem taxes; and
10-27                (3)  are the personal liability of and charge against
 11-1    the owners of the property even if the owners are not named in the
 11-2    assessment proceedings.
 11-3          (c)  The lien is effective from the date of the resolution of
 11-4    the board levying the assessment until the assessment is paid.  The
 11-5    board may enforce the lien in the same manner that the board may
 11-6    enforce an ad valorem tax lien against real property.
 11-7          Sec. 376.470.  SALES AND USE TAX. (a)  The district may
 11-8    impose a sales and use tax if authorized by a majority of the
 11-9    qualified voters of the district voting at an election called for
11-10    that purpose. Revenue from the tax may be used for any purpose for
11-11    which ad valorem tax revenue of the district may be used.
11-12          (b)  The district may not adopt a tax under this subchapter
11-13    if as a result of the adoption of the tax the combined rate of all
11-14    sales and use taxes imposed by the county and other political
11-15    subdivisions of this state having territory in the county would
11-16    exceed two percent at any location in the district.
11-17          (c)  If the voters of the county approve the adoption of the
11-18    tax at an election held on the same election date on which another
11-19    political subdivision adopts a sales and use tax or approves the
11-20    increase in the rate of its sales and use tax and as a result the
11-21    combined rate of all sales and use taxes imposed by the district
11-22    and other political subdivisions of this state having territory in
11-23    the district would exceed two percent at any location in the
11-24    county, the election to adopt a sales and use tax under this
11-25    subchapter has no effect.
11-26          Sec. 376.471.  MAINTENANCE TAX. (a)  If authorized at an
11-27    election held in accordance with Section 376.472, the district may
 12-1    impose and collect an annual ad valorem tax on taxable property in
 12-2    the district for:
 12-3                (1)  the maintenance and operation of the district;
 12-4                (2)  improvements constructed or acquired by the
 12-5    district; or
 12-6                (3)  the provision of services.
 12-7          (b)  The board shall determine the tax rate.
 12-8          Sec. 376.472.  ELECTIONS. (a)  In addition to the elections
 12-9    the district must hold under Subchapter L, Chapter 375, the
12-10    district shall hold an election in the manner provided by that
12-11    subchapter to obtain voter approval before the district imposes a
12-12    maintenance tax or issues bonds payable from ad valorem taxes or
12-13    assessments.
12-14          (b)  The board may include more than one purpose in a single
12-15    proposition at an election.
12-16          Sec. 376.473.  PROPERTY EXEMPTED FROM TAX, FEE, OR
12-17    ASSESSMENT. (a)  The district may not impose an impact fee or
12-18    assessment under Chapter 375 on a residential property, multiunit
12-19    residential property, or condominium.
12-20          (b)  The district may not impose an assessment or impact fee
12-21    on an electric utility's property.  In this subsection, "electric
12-22    utility" has the meaning assigned by Section 31.002, Utilities
12-23    Code.
12-24          Sec. 376.474.  NO EMINENT DOMAIN POWER. The district may not
12-25    exercise the power of eminent domain.
12-26          Sec. 376.475.  EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
12-27    OUTSTANDING DEBTS. (a)  The board may vote to dissolve a district
 13-1    that has debt.  If the vote is in favor of dissolution, the
 13-2    district shall remain in existence solely for the limited purpose
 13-3    of discharging its debts.  The dissolution is effective when all
 13-4    debts have been discharged.
 13-5          (b)  Section 375.264 does not apply to the district.
 13-6          SECTION 2.  The legislature finds that:
 13-7                (1)  proper and legal notice of the intention to
 13-8    introduce this Act, setting forth the general substance of this
 13-9    Act, has been published as provided by law, and the notice and a
13-10    copy of this Act have been furnished to all persons, agencies,
13-11    officials, or entities to which they are required to be furnished
13-12    by the constitution and laws of this state,  including the
13-13    governor, who has submitted the notice and Act to the Texas Natural
13-14    Resource Conservation Commission;
13-15                (2)  the Texas Natural Resource Conservation Commission
13-16    has filed its recommendations relating to this Act with the
13-17    governor, lieutenant governor, and speaker of the house of
13-18    representatives within the required time;
13-19                (3)  the general law relating to consent by political
13-20    subdivisions to the creation of districts with conservation,
13-21    reclamation, and road powers and the inclusion of land in those
13-22    districts has been complied with; and
13-23                (4)  all requirements of the constitution and laws of
13-24    this state and the rules and procedures of the legislature with
13-25    respect to the notice, introduction, and passage of this Act have
13-26    been fulfilled and accomplished.
13-27          SECTION 3.  (a)  Section 375.062, Local Government Code, and
 14-1    Section 376.460, Local Government Code, as added by this Act, do
 14-2    not apply to the initial board of directors of the Aldine Community
 14-3    Improvement District.
 14-4          (b)  The initial board of directors consists of the following
 14-5    persons:
 14-6                Pos. No.                  Name of Director
 14-7                1                           Clyde Baily
 14-8                2                           Sylvia Bolling
 14-9                3                           Reyes Garcia
14-10                4                           Leland Jauer
14-11                5                           V. E. (Vic) Mauldin
14-12                6                           W. Steve Mead
14-13                7                           Art Murillo
14-14                8                           Ray Shotwell
14-15                9                           Maria Espinoza
14-16          (c)  Of the initial directors, the directors appointed for
14-17    positions 1 through 4 serve until June 1, 2003, and the directors
14-18    appointed for positions 5 through 9 serve until June 1, 2005.
14-19          SECTION 4.  This Act takes effect immediately if it receives
14-20    a vote of two-thirds of all the members elected to each house, as
14-21    provided by Section 39, Article III, Texas Constitution.  If this
14-22    Act does not receive the vote necessary for immediate effect, this
14-23    Act takes effect September 1, 2001.