1-1 By: Bailey (Senate Sponsor - Gallegos) H.B. No. 741 1-2 (In the Senate - Received from the House April 2, 2001; 1-3 April 3, 2001, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 7, 2001, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 6, Nays 1-6 0; May 7, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 741 By: Lindsay 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the creation of the Aldine Community Improvement 1-11 District; providing authority to impose a tax and issue bonds. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Chapter 376, Local Government Code, is amended by 1-14 adding Subchapter K to read as follows: 1-15 SUBCHAPTER K. ALDINE COMMUNITY IMPROVEMENT DISTRICT 1-16 Sec. 376.451. CREATION OF DISTRICT. (a) The Aldine 1-17 Community Improvement District is created as a special district 1-18 under Section 59, Article XVI, Texas Constitution. 1-19 (b) The board by resolution may change the district's name. 1-20 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of 1-21 the district is necessary to promote, develop, encourage, and 1-22 maintain employment, commerce, transportation, housing, tourism, 1-23 recreation, arts, entertainment, economic development, safety, and 1-24 the public welfare in the Aldine Community area of Harris County. 1-25 (b) The creation of the district and this legislation are 1-26 not to be interpreted to relieve the county from providing the 1-27 level of services, as of the effective date of this subchapter, to 1-28 the area in the district or to release the county from the 1-29 obligations the entity has to provide services to that area. The 1-30 district is created to supplement and not supplant the county 1-31 services provided in the area in the district. 1-32 (c) The creation of the district is essential to accomplish 1-33 the purposes of Section 52, Article III, Section 59, Article XVI, 1-34 and Section 52-a, Article III, Texas Constitution, and other public 1-35 purposes stated in this subchapter. 1-36 Sec. 376.453. DEFINITIONS. In this subchapter: 1-37 (1) "Board" means the board of directors of the 1-38 district. 1-39 (2) "County" means Harris County, Texas. 1-40 (3) "District" means the Aldine Community Improvement 1-41 District. 1-42 (4) "Municipality" means the City of Houston, Texas. 1-43 Sec. 376.454. BOUNDARIES. The district includes all the 1-44 territory contained in the following described area: 1-45 Being 14.79 square miles, more or less, 1-46 Beginning at the northeast corner of Aldine Mail Road and the Hardy 1-47 Toll Road 1-48 Thence north along the east right-of-way line of Hardy Toll Road a 1-49 distance of approximately two (2) miles to the north right-of-way 1-50 line of State Highway 525 1-51 Thence along the north right-of-way line of State Highway 525 1-52 approximately 2.75 miles to the west right-of-way line of John F. 1-53 Kennedy Boulevard 1-54 Thence south along the west right-of-way line of John F. Kennedy 1-55 Boulevard a distance of approximately one (1) mile to the City of 1-56 Houston City limits 1-57 Thence east a distance of approximately one-quarter mile (1/4) mile 1-58 to the east right-of-way line of Heathrow Forest Parkway 1-59 Thence north along the east right-of-way line of Heathrow Forest 1-60 Parkway a distance of approximately one-quarter mile (1/4) mile to 1-61 the City of Houston City limits 1-62 Thence east along the south side of the City of Houston City limits 1-63 a distance of approximately one-half (1/2) mile 1-64 Thence south a distance of approximately one-quarter mile (1/4) 2-1 mile 2-2 Thence east a distance of approximately one-eighth (1/8) mile to 2-3 the east right-of-way line of Sequoia Bend Boulevard 2-4 Thence north along the east right-of-way line of Sequoia Bend 2-5 Boulevard a distance of approximately one-half (1/2) mile to the 2-6 north right-of-way line of State Highway 525 2-7 Thence east along the north right-of-way line of State Highway 525 2-8 a distance of approximately three-quarters (3/4) of one mile to the 2-9 east right-of-way line of Lee Road 2-10 Thence south along the east right-of-way line of Lee Road becoming 2-11 Homestead Road a distance of approximately two and one-half miles 2-12 to the north right-of-way line of Mount Houston Road 2-13 Thence west along the north right-of-way line of Mount Houston Road 2-14 a distance of approximately one-quarter mile to the west line of 2-15 the Southern Pacific Railroad property 2-16 Thence southwest along the Southern Pacific Railroad property a 2-17 distance of approximately one and three-quarters mile to the north 2-18 right-of-way line of Langley Road 2-19 Thence west along the north right-of-way line of Langley Road a 2-20 distance of approximately one mile to the east right-of-way line of 2-21 U.S. Highway 59 2-22 Thence northeast along the east right-of-way line of U.S. Highway 2-23 59 a distance of approximately one-quarter mile to the north 2-24 right-of-way line of Little York Road 2-25 Thence west along the north right-of-way line of Little York Road a 2-26 distance of approximately one-quarter mile to the east right-of-way 2-27 line of Bentley Road 2-28 Thence north along the east right-of-way line of Bentley Road a 2-29 distance of approximately one-quarter mile to the north 2-30 right-of-way line of Sagebrush Road 2-31 Thence west along the north right-of-way line of Sagebrush Road a 2-32 distance of approximately one-third (1/3) mile to the west line of 2-33 Halls Bayou 2-34 Thence south along the west line of Halls Bayou a distance of 2-35 approximately one-quarter mile to the north right-of-way line of 2-36 Little York Road 2-37 Thence west along the north right-of-way line of Little York Road a 2-38 distance of approximately one-half mile to the City of Houston City 2-39 limits line adjacent to and east of Aldine Westfield Road 2-40 Thence north along the City of Houston City limits line adjacent to 2-41 and east of Aldine Westfield Road a distance of approximately 2-42 one-eighth mile along the east line of the City of Houston City 2-43 limits line 2-44 Thence west along the north line of the City of Houston City limits 2-45 line a distance of approximately three-quarter mile to the east 2-46 right-of-way line of Hardy Toll Road 2-47 Thence north along the east right-of-way line of Hardy Toll Road a 2-48 distance of approximately two miles to the north right-of-way line 2-49 of Aldine Mail Road and the Point of Beginning 2-50 Save and Except the Following Parcels: 2-51 Parcel Number One: City of Houston Keith-Weiss Park 2-52 Parcel Number Two: That portion of City of Houston Melrose Park 2-53 east of the right-of-way line of Hardy Toll 2-54 Road 2-55 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, 2-56 facilities, and improvements owned by an electric utility or a 2-57 power generation company as defined by Section 31.002, Utilities 2-58 Code, a telecommunications provider as defined by Section 51.002, 2-59 Utilities Code, or a gas utility as defined by Sections 101.003 and 2-60 121.001, Utilities Code. 2-61 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 2-62 boundaries and field notes of the district form a closure. If a 2-63 mistake is made in the field notes or in copying the field notes in 2-64 the legislative process, the mistake does not in any way affect the 2-65 district's: 2-66 (1) organization, existence, or validity; 2-67 (2) right to issue any type of bond for the purposes 2-68 for which the district is created or to pay the principal of and 2-69 interest on a bond; 3-1 (3) right to impose or collect an assessment or tax; 3-2 or 3-3 (4) legality or operation. 3-4 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 3-5 The district is created to serve a public use and benefit. All the 3-6 land and other property included in the district will be benefited 3-7 by the improvements and services to be provided by the district 3-8 under powers conferred by Section 52, Article III, Section 59, 3-9 Article XVI, and Section 52-a, Article III, Texas Constitution, and 3-10 other powers granted under this subchapter. 3-11 (b) The creation of the district is in the public interest 3-12 and is essential to: 3-13 (1) further the public purposes of the development and 3-14 diversification of the economy of the state; and 3-15 (2) eliminate unemployment and underemployment and 3-16 develop or expand transportation and commerce. 3-17 (c) The district will: 3-18 (1) promote the health, safety, and general welfare of 3-19 residents, employers, potential employees, employees, visitors, 3-20 consumers in the district, and the general public; 3-21 (2) provide needed funding for the Aldine Community 3-22 area to preserve, maintain, and enhance the economic health and 3-23 vitality of the area as a community and business center; and 3-24 (3) further promote the health, safety, welfare, and 3-25 enjoyment of the public by providing pedestrian ways and by 3-26 landscaping and developing certain areas in the district, which are 3-27 necessary for the restoration, preservation, and enhancement of 3-28 scenic beauty. 3-29 (d) Pedestrian ways along or across a street, whether at 3-30 grade or above or below the surface, and street lighting, street 3-31 landscaping, and street art objects are parts of and necessary 3-32 components of a street and are considered to be a street or road 3-33 improvement. 3-34 (e) The district will not act as the agent or 3-35 instrumentality of any private interest even though many private 3-36 interests will be benefited by the district, as will the general 3-37 public. 3-38 Sec. 376.457. APPLICATION OF OTHER LAW. Except as otherwise 3-39 provided by this subchapter, Chapter 375 applies to the district. 3-40 Sec. 376.458. CONSTRUCTION OF SUBCHAPTER. This subchapter 3-41 shall be liberally construed in conformity with the findings and 3-42 purposes stated in this subchapter. 3-43 Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The 3-44 district is governed by a board of nine directors who serve 3-45 staggered terms of four years with four or five members' terms 3-46 expiring June 1 of each odd-numbered year. 3-47 (b) One director must be a resident of the district. 3-48 (c) The board by resolution may change the number of 3-49 directors on the board if the board finds that the change is in the 3-50 best interest of the district, subject to Section 375.061. 3-51 Sec. 376.460. APPOINTMENT AND REMOVAL OF DIRECTORS. Board 3-52 members are appointed and may be removed as provided by Sections 3-53 375.064 and 375.065, except that for purposes of this subchapter 3-54 references in those sections to the governing body of the 3-55 municipality mean the commissioners court of the county. 3-56 Sec. 376.461. QUORUM. (a) Section 375.071 does not apply to 3-57 the district. 3-58 (b) One-half of the board constitutes a quorum. 3-59 (c) Except as provided in Section 376.462, a concurrence of 3-60 a majority of a quorum is required for any official district 3-61 action. 3-62 Sec. 376.462. VOTE REQUIRED FOR AUTHORIZATION OF 3-63 ASSESSMENTS, BONDS, IMPACT FEES, AND TAXES. (a) A majority vote of 3-64 the directors serving is required to authorize the imposition of an 3-65 assessment, impact fee, or tax. 3-66 (b) The written consent of at least two-thirds of the full 3-67 membership of the board is required to authorize the issuance of 3-68 bonds. 3-69 Sec. 376.463. EXERCISE OF POWERS OF DEVELOPMENT CORPORATION. 4-1 The district may exercise the powers of a corporation created under 4-2 Section 4B, Development Corporation Act of 1979 (Article 5190.6, 4-3 Vernon's Texas Civil Statutes). 4-4 Sec. 376.464. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To 4-5 protect the public interest, the district may contract with the 4-6 municipality or the county for the municipality or county to 4-7 provide law enforcement services in the district for a fee. 4-8 Sec. 376.465. CONTRACT WITH POLITICAL SUBDIVISION. The 4-9 municipality, county, or another political subdivision of the 4-10 state, without further authorization, may contract with the 4-11 district to implement a project of the district or assist the 4-12 district in providing the services authorized under this 4-13 subchapter. A contract under this subsection may: 4-14 (1) be for a period on which the parties agree; 4-15 (2) include terms on which the parties agree; 4-16 (3) be payable from taxes or any other sources of 4-17 revenue that may be available for such purpose; or 4-18 (4) provide that taxes or other revenue collected at a 4-19 district project or from a person using or purchasing a commodity 4-20 or service at a district project may be paid or rebated to the 4-21 district under the terms of the contract. 4-22 Sec. 376.466. NONPROFIT CORPORATION. (a) The board by 4-23 resolution may authorize the creation of a nonprofit corporation to 4-24 assist and act on behalf of the district in implementing a project 4-25 or providing a service authorized by this subchapter. 4-26 (b) The board shall appoint the board of directors of a 4-27 nonprofit corporation created under this section. The board of 4-28 directors of the nonprofit corporation shall serve in the same 4-29 manner, term, and conditions as a board of directors of a local 4-30 government corporation created under Chapter 431, Transportation 4-31 Code. 4-32 (c) A nonprofit corporation created under this section has 4-33 the powers of and is considered for purposes of this subchapter to 4-34 be a local government corporation created under Chapter 431, 4-35 Transportation Code. 4-36 (d) A nonprofit corporation created under this section may 4-37 implement any project and provide any service this subchapter 4-38 authorizes. 4-39 Sec. 376.467. DISBURSEMENTS OR TRANSFERS OF FUNDS. The board 4-40 by resolution shall establish the number of directors' signatures 4-41 and the procedure required for a disbursement or transfer of the 4-42 district's money. 4-43 Sec. 376.468. MUNICIPAL APPROVAL. (a) Except as provided by 4-44 Subsection (b), the district must obtain approval from the 4-45 municipality's governing body of: 4-46 (1) the issuance of bonds for an improvement project; 4-47 and 4-48 (2) the plans and specifications of an improvement 4-49 project financed by the bonds. 4-50 (b) If the district obtains approval from the municipality's 4-51 governing body of a capital improvements budget for a period not to 4-52 exceed five years, the district may finance the capital 4-53 improvements and issue bonds specified in the budget without 4-54 further approval from the municipality. 4-55 (c) The district must obtain approval from the 4-56 municipality's governing body of the plans and specifications of 4-57 any district improvement project related to the use of land owned 4-58 by the county, an easement granted by the county, or a right-of-way 4-59 of a street, road, or highway. 4-60 (d) Except as provided by Section 375.263, a municipality is 4-61 not obligated to pay any bonds, notes, or other obligations of the 4-62 district. 4-63 Sec. 376.469. ASSESSMENTS. (a) The board may impose and 4-64 collect an assessment for any purpose authorized by this 4-65 subchapter. 4-66 (b) Assessments, reassessments, or assessments resulting 4-67 from an addition to or correction of the assessment roll by the 4-68 district, penalties and interest on an assessment or reassessment, 4-69 expenses of collection, and reasonable attorney's fees incurred by 5-1 the district: 5-2 (1) are a first and prior lien against the property 5-3 assessed; 5-4 (2) are superior to any other lien or claim other than 5-5 a lien or claim for county, school district, or municipal ad 5-6 valorem taxes; and 5-7 (3) are the personal liability of and charge against 5-8 the owners of the property even if the owners are not named in the 5-9 assessment proceedings. 5-10 (c) The lien is effective from the date of the resolution of 5-11 the board levying the assessment until the assessment is paid. The 5-12 board may enforce the lien in the same manner that the board may 5-13 enforce an ad valorem tax lien against real property. 5-14 Sec. 376.470. SALES AND USE TAX. (a) The district may 5-15 impose a sales and use tax if authorized by a majority of the 5-16 qualified voters of the district voting at an election called for 5-17 that purpose. Revenue from the tax may be used for any purpose for 5-18 which ad valorem tax revenue of the district may be used. 5-19 (b) The district may not adopt a tax under this subchapter 5-20 if as a result of the adoption of the tax the combined rate of all 5-21 sales and use taxes imposed by the county and other political 5-22 subdivisions of this state having territory in the county would 5-23 exceed two percent at any location in the district. 5-24 (c) If the voters of the county approve the adoption of the 5-25 tax at an election held on the same election date on which another 5-26 political subdivision adopts a sales and use tax or approves the 5-27 increase in the rate of its sales and use tax and as a result the 5-28 combined rate of all sales and use taxes imposed by the district 5-29 and other political subdivisions of this state having territory in 5-30 the district would exceed two percent at any location in the 5-31 county, the election to adopt a sales and use tax under this 5-32 subchapter has no effect. 5-33 Sec. 376.471. MAINTENANCE TAX. (a) If authorized at an 5-34 election held in accordance with Section 376.472, the district may 5-35 impose and collect an annual ad valorem tax on taxable property in 5-36 the district for: 5-37 (1) the maintenance and operation of the district; 5-38 (2) improvements constructed or acquired by the 5-39 district; or 5-40 (3) the provision of services. 5-41 (b) The board shall determine the tax rate. 5-42 Sec. 376.472. ELECTIONS. (a) In addition to the elections 5-43 the district must hold under Subchapter L, Chapter 375, the 5-44 district shall hold an election in the manner provided by that 5-45 subchapter to obtain voter approval before the district imposes a 5-46 maintenance tax or issues bonds payable from ad valorem taxes or 5-47 assessments. 5-48 (b) The board may include more than one purpose in a single 5-49 proposition at an election. 5-50 Sec. 376.473. PROPERTY EXEMPTED FROM TAX, FEE, OR 5-51 ASSESSMENT. (a) The district may not impose an impact fee or 5-52 assessment under Chapter 375 on a residential property, multiunit 5-53 residential property, or condominium. 5-54 (b) The district may not impose an assessment or impact fee 5-55 on the property of an electric utility, gas utility, power 5-56 generation company, or telecommunications provider. In this 5-57 subsection, "electric utility" and "power generation company" have 5-58 the meanings assigned by Section 31.002, Utilities Code, "gas 5-59 utility" has the meaning assigned by Sections 101.003 and 121.001, 5-60 Utilities Code, and "telecommunications provider" has the meaning 5-61 assigned by Section 51.002(10), Utilities Code. 5-62 Sec. 376.474. NO EMINENT DOMAIN POWER. The district may not 5-63 exercise the power of eminent domain. 5-64 Sec. 376.475. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH 5-65 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district 5-66 that has debt. If the vote is in favor of dissolution, the 5-67 district shall remain in existence solely for the limited purpose 5-68 of discharging its debts. The dissolution is effective when all 5-69 debts have been discharged. 6-1 (b) Section 375.264 does not apply to the district. 6-2 Sec. 376.476. ANNEXATION OF CERTAIN TERRITORY BY GOVERNING 6-3 BODY OF MUNICIPALITY. (a) If territory in the municipality's limit 6-4 or extraterritorial jurisdiction is included in the district, the 6-5 municipality's governing body may remove that territory from the 6-6 district if the district does not have bonded indebtedness. 6-7 (b) To remove territory under Subsection (a), the governing 6-8 body of the municipality must notify the secretary of the board of 6-9 the district in writing that the territory is excluded from the 6-10 district's territory. 6-11 (c) If a municipality annexes territory that is in its 6-12 extraterritorial jurisdiction and included in the district, the 6-13 governing body of the municipality shall notify the secretary of 6-14 the board of the district in writing that the annexed territory is 6-15 excluded from the district's territory. 6-16 SECTION 2. The legislature finds that: 6-17 (1) proper and legal notice of the intention to 6-18 introduce this Act, setting forth the general substance of this 6-19 Act, has been published as provided by law, and the notice and a 6-20 copy of this Act have been furnished to all persons, agencies, 6-21 officials, or entities to which they are required to be furnished 6-22 by the constitution and laws of this state, including the 6-23 governor, who has submitted the notice and Act to the Texas Natural 6-24 Resource Conservation Commission; 6-25 (2) the Texas Natural Resource Conservation Commission 6-26 has filed its recommendations relating to this Act with the 6-27 governor, lieutenant governor, and speaker of the house of 6-28 representatives within the required time; 6-29 (3) the general law relating to consent by political 6-30 subdivisions to the creation of districts with conservation, 6-31 reclamation, and road powers and the inclusion of land in those 6-32 districts has been complied with; and 6-33 (4) all requirements of the constitution and laws of 6-34 this state and the rules and procedures of the legislature with 6-35 respect to the notice, introduction, and passage of this Act have 6-36 been fulfilled and accomplished. 6-37 SECTION 3. (a) Section 375.062, Local Government Code, and 6-38 Section 376.460, Local Government Code, as added by this Act, do 6-39 not apply to the initial board of directors of the Aldine Community 6-40 Improvement District. 6-41 (b) The initial board of directors consists of the following 6-42 persons: 6-43 Pos. No. Name of Director 6-44 1 Clyde Baily 6-45 2 Sylvia Bolling 6-46 3 Reyes Garcia 6-47 4 Leland Jauer 6-48 5 V. E. (Vic) Mauldin 6-49 6 W. Steve Mead 6-50 7 Art Murillo 6-51 8 Ray Shotwell 6-52 9 Maria Espinoza 6-53 (c) Of the initial directors, the directors appointed for 6-54 positions 1 through 4 serve until June 1, 2003, and the directors 6-55 appointed for positions 5 through 9 serve until June 1, 2005. 6-56 SECTION 4. This Act takes effect immediately if it receives 6-57 a vote of two-thirds of all the members elected to each house, as 6-58 provided by Section 39, Article III, Texas Constitution. If this 6-59 Act does not receive the vote necessary for immediate effect, this 6-60 Act takes effect September 1, 2001. 6-61 * * * * *