1-1 AN ACT 1-2 relating to the creation of the Near Northwest Management District; 1-3 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. NEAR NORTHWEST MANAGEMENT DISTRICT 1-8 Sec. 376.451. CREATION OF DISTRICT. (a) A special district 1-9 to be known as the "Near Northwest Management District" exists as a 1-10 governmental agency, body politic and corporate, and political 1-11 subdivision of the state. 1-12 (b) The name of the district may be changed by resolution of 1-13 the board. 1-14 (c) The creation of the district is essential to accomplish 1-15 the purposes of Section 52, Article III, Section 59, Article XVI, 1-16 and Section 52-a, Article III, Texas Constitution, and other public 1-17 purposes stated in this subchapter. 1-18 Sec. 376.452. DECLARATION OF INTENT. (a) The creation of 1-19 the district is necessary to promote, develop, encourage, and 1-20 maintain employment, commerce, transportation, housing, tourism, 1-21 recreation, arts, entertainment, economic development, safety, and 1-22 the public welfare in the near northwest area of the city of 1-23 Houston. 1-24 (b) The creation of the district and this legislation are 2-1 not to be interpreted to relieve the county or the municipality 2-2 from providing the level of services, as of the effective date of 2-3 this subchapter, to the area in the district or to release the 2-4 county or the municipality from the obligations each entity has to 2-5 provide services to that area. The district is created to 2-6 supplement and not supplant the municipal or county services 2-7 provided in the area in the district. 2-8 (c) By creating the district and in authorizing the 2-9 municipality, county, and other political subdivisions to contract 2-10 with the district, the legislature has established a program to 2-11 accomplish the public purposes set out in Section 52-a, Article 2-12 III, Texas Constitution. 2-13 Sec. 376.453. DEFINITIONS. In this subchapter: 2-14 (1) "Board" means the board of directors of the 2-15 district. 2-16 (2) "County" means Harris County, Texas. 2-17 (3) "District" means the Near Northwest Management 2-18 District. 2-19 (4) "Municipality" means the City of Houston, Texas. 2-20 (5) "Utility" means a person that provides to the 2-21 public cable television, gas, light, power, telephone, sewage, or 2-22 water service. 2-23 Sec. 376.454. BOUNDARIES. The district includes all the 2-24 territory contained in the area bounded by T.C. Jester Boulevard on 2-25 the east, Pinemont Drive on the south, Hollister Drive projected to 2-26 State Road 249 on the west, and State Road 249 on the north as 2-27 those roads exist on the effective date of this subchapter. 3-1 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 3-2 boundaries described by Section 376.454 form a closure. If a 3-3 mistake is made in the description in the course of the 3-4 legislative process, the mistake does not in any way affect the: 3-5 (1) organization, existence, and validity of the 3-6 district; 3-7 (2) right of the district to issue any type of bonds 3-8 or refunding bonds for the purposes for which the district is 3-9 created or to pay the principal of and interest on the bonds; 3-10 (3) right of the district to impose and collect 3-11 assessments or taxes; or 3-12 (4) legality or operation of the district or its 3-13 governing body. 3-14 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 3-15 All the land and other property included in the district will be 3-16 benefited by the improvements and services to be provided by the 3-17 district under powers conferred by Section 52, Article III, Section 3-18 59, Article XVI, and Section 52-a, Article III, Texas Constitution, 3-19 and other powers granted under this subchapter, and the district is 3-20 created to serve a public use and benefit. 3-21 (b) The creation of the district is in the public interest 3-22 and is essential to: 3-23 (1) further the public purposes of the development and 3-24 diversification of the economy of the state; and 3-25 (2) eliminate unemployment and underemployment and 3-26 develop or expand transportation and commerce. 3-27 (c) The district will: 4-1 (1) promote the health, safety, and general welfare of 4-2 residents, employers, employees, visitors, consumers in the 4-3 district, and the general public; 4-4 (2) provide needed funding for the near northwest area 4-5 of the city of Houston to preserve, maintain, and enhance the 4-6 economic health and vitality of the area as a community and 4-7 business center; and 4-8 (3) further promote the health, safety, welfare, and 4-9 enjoyment of the public by providing pedestrian ways and by 4-10 landscaping and developing certain areas in the district, which are 4-11 necessary for the restoration, preservation, and enhancement of 4-12 scenic and aesthetic beauty. 4-13 (d) Pedestrian ways along or across a street, whether at 4-14 grade or above or below the surface, and street lighting, street 4-15 landscaping, and street art objects are parts of and necessary 4-16 components of a street and are considered to be a street or road 4-17 improvement. 4-18 (e) The district will not act as the agent or 4-19 instrumentality of any private interest even though many private 4-20 interests will be benefited by the district, as will the general 4-21 public. 4-22 Sec. 376.457. APPLICATION OF OTHER LAW. Except as otherwise 4-23 provided by this subchapter, Chapter 375 applies to the district 4-24 and its governing body and employees. 4-25 Sec. 376.458. CONSTRUCTION OF SUBCHAPTER. This subchapter 4-26 shall be liberally construed in conformity with the findings and 4-27 purposes stated in this subchapter. 5-1 Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The 5-2 district is governed by a board of nine directors who serve 5-3 staggered terms of four years, with five members' terms expiring 5-4 June 1 of an odd-numbered year and four members' terms expiring 5-5 June 1 of the following odd-numbered year. The board by resolution 5-6 may increase or decrease the number of directors on the board if it 5-7 is in the best interest of the district to do so and if the board 5-8 consists of not fewer than 9 and not more than 30 directors. 5-9 (b) Subchapter D, Chapter 375, applies to the board to the 5-10 extent that subchapter does not conflict with this subchapter. The 5-11 imposition of a tax, assessment, or impact fee requires a vote of a 5-12 majority of the directors serving. Directors may vote on any 5-13 matter authorized by Subchapter D, Chapter 375, and action may be 5-14 taken by the board only if it is approved in the manner prescribed 5-15 by Subchapter D, Chapter 375. 5-16 Sec. 376.460. APPOINTMENT OF DIRECTORS; VACANCY. The mayor 5-17 and members of the governing body of the municipality shall appoint 5-18 directors from persons recommended by the board who meet the 5-19 qualifications of Subchapter D, Chapter 375. A vacancy in the 5-20 office of director because of the death, resignation, or removal of 5-21 a director shall be filled by the remaining members of the board by 5-22 appointing a qualified person for the unexpired term. 5-23 Sec. 376.461. POWERS OF DISTRICT. The district has: 5-24 (1) all powers necessary or required to accomplish the 5-25 purposes for which the district was created; 5-26 (2) the rights, powers, privileges, authority, and 5-27 functions of a district created under Chapter 375; 6-1 (3) the powers given to a corporation under Section 6-2 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's 6-3 Texas Civil Statutes), and the power to own, operate, acquire, 6-4 construct, lease, improve, and maintain projects; 6-5 (4) the power to impose ad valorem taxes, assessments, 6-6 or impact fees in accordance with Chapter 375 to provide 6-7 improvements and services for a project or activity the district is 6-8 authorized to acquire, construct, improve, or provide under this 6-9 subchapter; 6-10 (5) the power to correct, add to, or delete 6-11 assessments from its assessment rolls after notice and hearing as 6-12 provided by Subchapter F, Chapter 375; and 6-13 (6) the powers given to a housing finance corporation 6-14 created under Chapter 394 to provide housing or residential 6-15 development projects in the district. 6-16 Sec. 376.462. SALES AND USE TAX. The district may not 6-17 impose a sales and use tax. 6-18 Sec. 376.463. EMINENT DOMAIN. The district may not exercise 6-19 the power of eminent domain. 6-20 Sec. 376.464. EX OFFICIO BOARD MEMBERS. (a) The following 6-21 persons shall serve as nonvoting ex officio directors: 6-22 (1) the director of the following departments of the 6-23 municipality: 6-24 (A) parks and recreation; 6-25 (B) planning and development; 6-26 (C) public works; and 6-27 (D) civic center; 7-1 (2) the municipality's chief of police; 7-2 (3) the general manager of the Metropolitan Transit 7-3 Authority; and 7-4 (4) the presidents of any institutions of higher 7-5 learning located in the district. 7-6 (b) If a department described by Subsection (a) is 7-7 consolidated, renamed, or changed, the board may appoint a director 7-8 of the consolidated, renamed, or changed department as a nonvoting 7-9 ex officio board member. If a department described by Subsection 7-10 (a) is abolished, the board may appoint a representative of another 7-11 department of the municipality that performs duties comparable to 7-12 those performed by the abolished department. 7-13 (c) The board may appoint the presiding officer of a 7-14 nonprofit corporation that is actively involved in activities in 7-15 the municipality's midtown area to serve as a nonvoting ex officio 7-16 director. 7-17 Sec. 376.465. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. 7-18 (a) Except as provided in this section: 7-19 (1) a director may participate in all board votes and 7-20 decisions; and 7-21 (2) Chapter 171 governs conflicts of interest for 7-22 board members. 7-23 (b) Section 171.004 does not apply to the district. A 7-24 director who has a substantial interest in a business or charitable 7-25 entity that will receive a pecuniary benefit from a board action 7-26 shall file a one-time affidavit declaring the interest. An 7-27 additional affidavit is not required if the director's interest 8-1 changes. After the affidavit is filed with the board secretary, 8-2 the director may participate in a discussion or vote on that action 8-3 if: 8-4 (1) a majority of the directors have a similar 8-5 interest in the same entity; or 8-6 (2) all other similar business or charitable entities 8-7 in the district will receive a similar pecuniary benefit. 8-8 (c) A director who is also an officer or employee of a 8-9 public entity may not participate in the discussion of or vote on a 8-10 matter regarding a contract with that same public entity. 8-11 (d) For purposes of this section, a director has a 8-12 substantial interest in a charitable entity in the same manner that 8-13 a person would have a substantial interest in a business entity 8-14 under Section 171.002. 8-15 Sec. 376.466. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS 8-16 AFFECTING PROPERTY. (a) If the district, in exercising a power 8-17 conferred by this subchapter, requires a relocation, adjustment, 8-18 raising, lowering, rerouting, or changing of the grade or the 8-19 construction of any of the following items, the district must take 8-20 that required action at the sole expense of the district: 8-21 (1) a street, alley, highway, overpass, underpass, 8-22 road, railroad track, bridge, facility, or other property; 8-23 (2) an electric line, conduit, facility, or other 8-24 property; 8-25 (3) a telephone or telegraph line, conduit, facility, 8-26 or other property; 8-27 (4) a gas transmission or distribution pipe, pipeline, 9-1 main, facility, or other property; 9-2 (5) a water, sanitary sewer, or storm sewer pipe, 9-3 pipeline, main, facility, or other property; 9-4 (6) a cable television line, cable, conduit, facility, 9-5 or other property; or 9-6 (7) another pipeline, facility, or other property 9-7 relating to the pipeline. 9-8 (b) The district shall bear damages that are suffered by 9-9 owners of the facility or other property. 9-10 Sec. 376.467. RELATION TO OTHER LAW. If any provision of 9-11 general law, including a law referenced in this subchapter, is in 9-12 conflict with or is inconsistent with this subchapter, this 9-13 subchapter prevails. Any law referenced in this subchapter that is 9-14 not in conflict or inconsistent with this subchapter is adopted and 9-15 incorporated by reference. 9-16 Sec. 376.468. REQUIREMENTS FOR FINANCING SERVICES AND 9-17 IMPROVEMENTS. The board may not finance services and improvement 9-18 projects under this subchapter unless a written petition requesting 9-19 those improvements or services has been filed with the board. The 9-20 petition must be signed by: 9-21 (1) the owners of a majority of the assessed value of 9-22 real property in the district as determined by the most recent 9-23 certified county property tax rolls; or 9-24 (2) at least 50 persons who own land in the district, 9-25 if there are more than 50 persons who own property in the district 9-26 as determined by the most recent certified county property tax 9-27 rolls. 10-1 Sec. 376.469. NONPROFIT CORPORATION. (a) The board by 10-2 resolution may authorize the creation of a nonprofit corporation to 10-3 assist and act on behalf of the district in implementing a project 10-4 or providing a service authorized by this subchapter. 10-5 (b) The board shall appoint the board of directors of a 10-6 nonprofit corporation created under this section. The board of 10-7 directors of the nonprofit corporation shall serve in the same 10-8 manner as, for the same term as, and on the conditions of the board 10-9 of directors of a local government corporation created under 10-10 Chapter 431, Transportation Code. 10-11 (c) A nonprofit corporation created under this section has 10-12 the powers of and is considered for purposes of this subchapter to 10-13 be a local government corporation created under Chapter 431, 10-14 Transportation Code. 10-15 (d) A nonprofit corporation created under this section may 10-16 implement any project and provide any services authorized by this 10-17 subchapter. 10-18 Sec. 376.470. DISBURSEMENTS OR TRANSFERS OF FUNDS. The 10-19 board by resolution shall establish the number of directors' 10-20 signatures and the procedure required for a disbursement or 10-21 transfer of the district's money. 10-22 Sec. 376.471. BONDS. (a) The district may issue bonds or 10-23 other obligations payable in whole or in part from ad valorem 10-24 taxes, assessments, impact fees, revenues, grants, or other money 10-25 of the district, or any combination of those sources of money, to 10-26 pay for any authorized purpose of the district. 10-27 (b) Bonds or other obligations of the district may be issued 11-1 in the form of bonds, notes, certificates of participation, 11-2 including other instruments evidencing a proportionate interest in 11-3 payments to be made by the district, or other obligations that are 11-4 issued in the exercise of the district's borrowing power and may be 11-5 issued in bearer or registered form or not represented by an 11-6 instrument but the transfer of which is registered on books 11-7 maintained by or on behalf of the district. The board may impose 11-8 and collect an assessment under Subchapter F, Chapter 375, for any 11-9 purpose authorized by this subchapter or by Chapter 375. 11-10 (c) Except as provided by Subsection (d), the district must 11-11 obtain the municipality's approval of: 11-12 (1) the issuance of bonds for an improvement project; 11-13 (2) the plans and specifications of the improvement 11-14 project to be financed by the bonds; and 11-15 (3) the plans and specifications of a district 11-16 improvement project related to: 11-17 (A) the use of land owned by the municipality; 11-18 (B) an easement granted by the municipality; or 11-19 (C) a right-of-way of a street, road, or 11-20 highway. 11-21 (d) If the district obtains the municipality's approval of a 11-22 capital improvements budget for a specified period not to exceed 11-23 five years, the district may finance the capital improvements and 11-24 issue bonds specified in the budget without further municipal 11-25 approval. 11-26 (e) Before the district issues bonds, the district shall 11-27 submit the bonds and the record of proceedings of the district 12-1 relating to authorization of the bonds to the attorney general for 12-2 approval as provided by Chapter 1202, Government Code. 12-3 Sec. 376.472. ASSESSMENTS. (a) The board may impose and 12-4 collect an assessment for any purpose authorized by this 12-5 subchapter. 12-6 (b) Assessments, reassessments, or assessments resulting 12-7 from an addition to or correction of the assessment roll by the 12-8 district, penalties and interest on an assessment or reassessment, 12-9 expenses of collection, and reasonable attorney's fees incurred by 12-10 the district: 12-11 (1) are a first and prior lien against the property 12-12 assessed; 12-13 (2) are superior to any other lien or claim other than 12-14 a lien or claim for county, school district, or municipal ad 12-15 valorem taxes; and 12-16 (3) are the personal liability of and charge against 12-17 the owners of the property even if the owners are not named in the 12-18 assessment proceedings. 12-19 (c) The lien is effective from the date of the resolution of 12-20 the board levying the assessment until the assessment is paid. The 12-21 board may enforce the lien in the same manner that the board may 12-22 enforce an ad valorem tax lien against real property. 12-23 Sec. 376.473. PROPERTY EXEMPTED FROM FEE OR ASSESSMENT. 12-24 (a) The district may not impose an impact fee or assessment on a 12-25 residence homestead as defined by Section 11.13, Tax Code. 12-26 (b) The district may not impose an impact fee or assessment 12-27 on the property, equipment, or facilities of a utility. 13-1 Sec. 376.474. ELECTIONS. (a) In addition to the elections 13-2 the district must hold under Subchapter L, Chapter 375, the 13-3 district shall hold an election in the manner provided by that 13-4 subchapter to obtain voter approval before the district imposes a 13-5 maintenance tax or issues bonds payable from ad valorem taxes or 13-6 assessments. 13-7 (b) The board may submit multiple purposes in a single 13-8 proposition at an election. 13-9 Sec. 376.475. IMPACT FEES. The district may impose an 13-10 impact fee for an authorized purpose as provided by Subchapter G, 13-11 Chapter 375. 13-12 Sec. 376.476. MAINTENANCE TAX. (a) If authorized at an 13-13 election held in accordance with Section 376.474, the district may 13-14 impose and collect an annual ad valorem tax on taxable property in 13-15 the district for the maintenance and operation of the district and 13-16 the improvements constructed or acquired by the district or for the 13-17 provision of services. 13-18 (b) The board shall determine the tax rate. 13-19 Sec. 376.477. DISSOLUTION OF DISTRICT. The district may be 13-20 dissolved as provided by Subchapter M, Chapter 375. If the 13-21 district has debt and is dissolved, the district shall remain in 13-22 existence solely for the limited purpose of discharging its bonds 13-23 or other obligations according to their terms. 13-24 Sec. 376.478. CONTRACTS. (a) To protect the public 13-25 interest, the district may contract with the municipality or the 13-26 county for the municipality or county to provide law enforcement 13-27 services in the district for a fee. 14-1 (b) The municipality, the county, or another political 14-2 subdivision of the state, without further authorization, may 14-3 contract with the district to implement a project of the district 14-4 or assist the district in providing the services authorized under 14-5 this subchapter. A contract under this subsection may: 14-6 (1) be for a period on which the parties agree; 14-7 (2) include terms on which the parties agree; 14-8 (3) be payable from taxes or any other sources of 14-9 revenue that may be available for that purpose; or 14-10 (4) provide that taxes or other revenue collected at a 14-11 district project or from a person using or purchasing a commodity 14-12 or service at a district project may be paid or rebated to the 14-13 district under the terms of the contract. 14-14 (c) The district may enter into a contract, lease, or other 14-15 agreement with or make or accept grants and loans to or from: 14-16 (1) the United States; 14-17 (2) the state or a state agency; 14-18 (3) a county, a municipality, or another political 14-19 subdivision of the state; 14-20 (4) a public or private corporation, including a 14-21 nonprofit corporation created by the board under this subchapter; 14-22 or 14-23 (5) any other person. 14-24 (d) The district may perform all acts necessary for the full 14-25 exercise of the powers vested in the district on terms and for the 14-26 period the board determines advisable. 14-27 Sec. 376.479. ANNEXATION. The district may: 15-1 (1) annex territory as provided by Subchapter C, 15-2 Chapter 375; and 15-3 (2) annex territory located inside the boundaries of a 15-4 reinvestment zone created by the municipality under Chapter 311, 15-5 Tax Code, if the governing body of the municipality consents to the 15-6 annexation. 15-7 Sec. 376.480. AGREEMENTS: GENERAL; DONATIONS, INTERLOCAL 15-8 AGREEMENTS, AND LAW ENFORCEMENT SERVICES. (a) The district may 15-9 make an agreement with or accept a donation, grant, or loan from 15-10 any person. 15-11 (b) The implementation of a project is a governmental 15-12 function or service for the purposes of Chapter 791, Government 15-13 Code. 15-14 (c) To protect the public interest, the district may 15-15 contract with the municipality or the county for the municipality 15-16 or county to provide law enforcement services in the district for a 15-17 fee. 15-18 SECTION 2. The legislature finds that: 15-19 (1) proper and legal notice of the intention to 15-20 introduce this Act, setting forth the general substance of this 15-21 Act, has been published as provided by law, and the notice and a 15-22 copy of this Act have been furnished to all persons, agencies, 15-23 officials, or entities to which they are required to be furnished 15-24 by the constitution and laws of this state, including the governor, 15-25 who has submitted the notice and Act to the Texas Natural Resource 15-26 Conservation Commission; 15-27 (2) the Texas Natural Resource Conservation Commission 16-1 has filed its recommendations relating to this Act with the 16-2 governor, lieutenant governor, and speaker of the house of 16-3 representatives within the required time; 16-4 (3) the general law relating to consent by political 16-5 subdivisions to the creation of districts with conservation, 16-6 reclamation, and road powers and the inclusion of land in those 16-7 districts has been complied with; and 16-8 (4) all requirements of the constitution and laws of 16-9 this state and the rules and procedures of the legislature with 16-10 respect to the notice, introduction, and passage of this Act have 16-11 been fulfilled and accomplished. 16-12 SECTION 3. Notwithstanding Section 376.459, Local Government 16-13 Code, as added by this Act: 16-14 (1) the initial board of directors of the Near 16-15 Northwest Management District consists of: 16-16 Pos. No. Name of Director 16-17 1 ____________________ 16-18 2 ____________________ 16-19 3 ____________________ 16-20 4 ____________________ 16-21 5 ____________________ 16-22 6 ____________________ 16-23 7 ____________________ 16-24 8 ____________________ 16-25 9 ____________________; and 16-26 (2) of the initial board, members in positions 1-5 16-27 serve terms that expire June 1, 2005, and members in positions 6-9 17-1 serve terms that expire June 1, 2003. 17-2 SECTION 4. This Act takes effect immediately if it receives 17-3 a vote of two-thirds of all the members elected to each house, as 17-4 provided by Section 39, Article III, Texas Constitution. If this 17-5 Act does not receive the vote necessary for immediate effect, this 17-6 Act takes effect September 1, 2001. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1990 was passed by the House on April 20, 2001, by the following vote: Yeas 142, Nays 0, 2 present, not voting. _______________________________ Chief Clerk of the House I certify that H.B. No. 1990 was passed by the Senate on May 15, 2001, by the following vote: Yeas 30, Nays 0, 1 present, not voting. _______________________________ Secretary of the Senate APPROVED: __________________________ Date __________________________ Governor