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                                  * * * * *