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