1-1     By:  Turner of Harris (Senate Sponsor - Whitmire)     H.B. No. 1990
 1-2           (In the Senate - Received from the House April 23, 2001;
 1-3     April 24, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 4, 2001, reported favorably by the
 1-5     following vote:  Yeas 6, Nays 0; May 4, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the creation of the Near Northwest Management District;
 1-9     providing authority to impose a tax and issue bonds.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-12     adding Subchapter K to read as follows:
1-13              SUBCHAPTER K.  NEAR NORTHWEST MANAGEMENT DISTRICT
1-14           Sec. 376.451.  CREATION OF DISTRICT.  (a)  A special district
1-15     to be known as the "Near Northwest Management District" exists as a
1-16     governmental agency, body politic and corporate, and political
1-17     subdivision of the state.
1-18           (b)  The name of the district may be changed by resolution of
1-19     the board.
1-20           (c)  The creation of the district is essential to accomplish
1-21     the purposes of Section 52, Article III, Section 59, Article XVI,
1-22     and Section 52-a, Article III, Texas Constitution, and other public
1-23     purposes stated in this subchapter.
1-24           Sec. 376.452.  DECLARATION OF INTENT.  (a)  The creation of
1-25     the district is necessary to promote, develop, encourage, and
1-26     maintain employment, commerce, transportation, housing, tourism,
1-27     recreation, arts, entertainment, economic development, safety, and
1-28     the public welfare in the near northwest area of the city of
1-29     Houston.
1-30           (b)  The creation of the district and this legislation are
1-31     not to be interpreted to relieve the county or the municipality
1-32     from providing the level of services, as of the effective date of
1-33     this subchapter, to the area in the district or to release the
1-34     county or the municipality from the obligations each entity has to
1-35     provide services to that area.  The district is created to
1-36     supplement and not supplant the municipal or county services
1-37     provided in the area in the district.
1-38           (c)  By creating the district and in authorizing the
1-39     municipality, county, and other political subdivisions to contract
1-40     with the district, the legislature has established a program to
1-41     accomplish the public purposes set out in Section 52-a, Article
1-42     III, Texas Constitution.
1-43           Sec. 376.453.  DEFINITIONS.  In this subchapter:
1-44                 (1)  "Board" means the board of directors of the
1-45     district.
1-46                 (2)  "County" means Harris County, Texas.
1-47                 (3)  "District" means the Near Northwest Management
1-48     District.
1-49                 (4)  "Municipality" means the City of Houston, Texas.
1-50                 (5)  "Utility" means a person that provides to the
1-51     public cable television, gas, light, power, telephone, sewage, or
1-52     water service.
1-53           Sec. 376.454.  BOUNDARIES.  The district includes all the
1-54     territory contained in the area bounded by T.C. Jester Boulevard on
1-55     the east, Pinemont Drive on the south, Hollister Drive projected to
1-56     State Road 249 on the west, and State Road 249 on the north as
1-57     those roads exist on the effective date of this Act.
1-58           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES.  The
1-59     boundaries described by Section 376.454 form a closure.  If a
1-60     mistake  is made in the description in the course of the
1-61     legislative process, the mistake does not in any way affect the:
1-62                 (1)  organization, existence, and validity of the
1-63     district;
1-64                 (2)  right of the district to issue any type of bonds
 2-1     or refunding bonds for the purposes for which the district is
 2-2     created or to pay the principal of and interest on the bonds;
 2-3                 (3)  right of the district to impose and collect
 2-4     assessments or taxes; or
 2-5                 (4)  legality or operation of the district or its
 2-6     governing body.
 2-7           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)
 2-8     All the land and other property included in the district will be
 2-9     benefited by the improvements and services to be provided by the
2-10     district under powers conferred by Section 52, Article III, Section
2-11     59, Article XVI, and Section 52-a, Article III, Texas Constitution,
2-12     and other powers granted under this subchapter, and the district is
2-13     created to serve a public use and benefit.
2-14           (b)  The creation of the district is in the public interest
2-15     and is essential to:
2-16                 (1)  further the public purposes of the development and
2-17     diversification of the economy of the state; and
2-18                 (2)  eliminate unemployment and underemployment and
2-19     develop or expand transportation and commerce.
2-20           (c)  The district will:
2-21                 (1)  promote the health, safety, and general welfare of
2-22     residents, employers, employees, visitors, consumers in the
2-23     district, and the general public;
2-24                 (2)  provide needed funding for the near northwest area
2-25     of the city of Houston to preserve, maintain, and enhance the
2-26     economic health and vitality of the area as a community and
2-27     business center; and
2-28                 (3)  further promote the health, safety, welfare, and
2-29     enjoyment of the public by providing pedestrian ways and by
2-30     landscaping and developing certain areas in the district, which are
2-31     necessary for the restoration, preservation, and enhancement of
2-32     scenic and aesthetic beauty.
2-33           (d)  Pedestrian ways along or across a street, whether at
2-34     grade or above or below the surface, and street lighting, street
2-35     landscaping, and street art objects are parts of and necessary
2-36     components of a street and are considered to be a street or road
2-37     improvement.
2-38           (e)  The district will not act as the agent or
2-39     instrumentality of any private interest even though many private
2-40     interests will be benefited by the district, as will the general
2-41     public.
2-42           Sec. 376.457.  APPLICATION OF OTHER LAW.  Except as otherwise
2-43     provided by this subchapter, Chapter 375 applies to the district
2-44     and its governing body and employees.
2-45           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER.  This subchapter
2-46     shall be liberally construed in conformity with the findings and
2-47     purposes stated in this subchapter.
2-48           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
2-49     district is governed by a board of nine directors who serve
2-50     staggered terms of four years, with five members' terms expiring
2-51     June 1 of an odd-numbered year and four members' terms expiring
2-52     June 1 of the following odd-numbered year.  The board by resolution
2-53     may increase or decrease the number of directors on the board if it
2-54     is in the best interest of the district to do so and if the board
2-55     consists of not fewer than 9 and not more than 30 directors.
2-56           (b)  Subchapter D, Chapter 375, applies to the board to the
2-57     extent that subchapter does not conflict with this subchapter.  The
2-58     imposition of a tax, assessment, or impact fee requires a vote of a
2-59     majority of the directors serving.  Directors may vote on any
2-60     matter authorized by Subchapter D, Chapter 375, and action may be
2-61     taken by the board only if it is approved in the manner prescribed
2-62     by Subchapter D, Chapter 375.
2-63           Sec. 376.460.  APPOINTMENT OF DIRECTORS; VACANCY.  The mayor
2-64     and members of the governing body of the municipality shall appoint
2-65     directors from persons recommended by the board who meet the
2-66     qualifications of Subchapter D, Chapter 375.  A vacancy in the
2-67     office of director because of the death, resignation, or removal of
2-68     a director shall be filled by the remaining members of the board by
2-69     appointing a qualified person for the unexpired term.
 3-1           Sec. 376.461.  POWERS OF DISTRICT.  The district has:
 3-2                 (1)  all powers necessary or required to accomplish the
 3-3     purposes for which the district was created;
 3-4                 (2)  the rights, powers, privileges, authority, and
 3-5     functions of a district created under Chapter 375;
 3-6                 (3)  the powers given to a corporation under Section
 3-7     4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
 3-8     Texas Civil Statutes), and the power to own, operate, acquire,
 3-9     construct, lease, improve, and maintain projects;
3-10                 (4)  the power to impose ad valorem taxes, assessments,
3-11     or impact fees in accordance with Chapter 375 to provide
3-12     improvements and services for a project or activity the district is
3-13     authorized to acquire, construct, improve, or provide under this
3-14     subchapter;
3-15                 (5)  the power to correct, add to, or delete
3-16     assessments from its assessment rolls after notice and hearing as
3-17     provided by Subchapter F, Chapter 375; and
3-18                 (6)  the powers given to a housing finance corporation
3-19     created under Chapter 394 to provide housing or residential
3-20     development projects in the district.
3-21           Sec. 376.462.  SALES AND USE TAX.   The district may not
3-22     impose a sales and use tax.
3-23           Sec. 376.463.  EMINENT DOMAIN.  The district may not exercise
3-24     the power of eminent domain.
3-25           Sec. 376.464.  EX OFFICIO BOARD MEMBERS.  (a)  The following
3-26     persons shall serve as nonvoting ex officio directors:
3-27                 (1)  the director of the following departments of the
3-28     municipality:
3-29                       (A)  parks and recreation;
3-30                       (B)  planning and development;
3-31                       (C)  public works; and
3-32                       (D)  civic center;
3-33                 (2)  the municipality's chief of police;
3-34                 (3)  the general manager of the Metropolitan Transit
3-35     Authority; and
3-36                 (4)  the presidents of any institutions of higher
3-37     learning located in the district.
3-38           (b)  If a department described by Subsection (a) is
3-39     consolidated, renamed, or changed, the board may appoint a director
3-40     of the consolidated, renamed, or changed department as a nonvoting
3-41     ex officio board member.  If a department described by Subsection
3-42     (a) is abolished, the board may appoint a representative of another
3-43     department of the municipality that performs duties comparable to
3-44     those performed by the abolished department.
3-45           (c)  The board may appoint the presiding officer of a
3-46     nonprofit corporation that is actively involved in activities in
3-47     the municipality's midtown area to serve as a nonvoting ex officio
3-48     director.
3-49           Sec. 376.465.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
3-50     (a)  Except as provided in this section:
3-51                 (1)  a director may participate in all board votes and
3-52     decisions; and
3-53                 (2)  Chapter 171 governs conflicts of interest for
3-54     board members.
3-55           (b)  Section 171.004 does not apply to the district.  A
3-56     director who has a substantial interest in a business or charitable
3-57     entity that will receive a pecuniary benefit from a board action
3-58     shall file a one-time affidavit declaring the interest.  An
3-59     additional affidavit is not required if the director's interest
3-60     changes.  After the affidavit is filed with the board secretary,
3-61     the director may participate in a discussion or vote on that action
3-62     if:
3-63                 (1)  a majority of the directors have a similar
3-64     interest in the same entity; or
3-65                 (2)  all other similar business or charitable entities
3-66     in the district will receive a similar pecuniary benefit.
3-67           (c)  A director who is also an officer or employee of a
3-68     public entity may not participate in the discussion of or vote on a
3-69     matter regarding a contract with that same public entity.
 4-1           (d)  For purposes of this section, a director has a
 4-2     substantial interest in a charitable entity in the same manner that
 4-3     a person would have a substantial interest in a business entity
 4-4     under Section 171.002.
 4-5           Sec. 376.466.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
 4-6     AFFECTING PROPERTY.  (a)  If the district, in exercising a power
 4-7     conferred by this subchapter, requires a relocation, adjustment,
 4-8     raising, lowering, rerouting, or changing of the grade or the
 4-9     construction of any of the following items, the district must take
4-10     that required action at the sole expense of the district:
4-11                 (1)  a street, alley, highway, overpass, underpass,
4-12     road, railroad track, bridge, facility, or other property;
4-13                 (2)  an electric line, conduit, facility, or other
4-14     property;
4-15                 (3)  a telephone or telegraph line, conduit, facility,
4-16     or other property;
4-17                 (4)  a gas transmission or distribution pipe, pipeline,
4-18     main, facility, or other property;
4-19                 (5)  a water, sanitary sewer, or storm sewer pipe,
4-20     pipeline, main, facility, or other property;
4-21                 (6)  a cable television line, cable, conduit, facility,
4-22     or other property; or
4-23                 (7)  another pipeline, facility, or other property
4-24     relating to the pipeline.
4-25           (b)  The district shall bear damages that are suffered by
4-26     owners of the facility or other property.
4-27           Sec. 376.467.  RELATION TO OTHER LAW.  If any provision of
4-28     general law, including a law referenced in this subchapter, is in
4-29     conflict with or is inconsistent with this subchapter, this
4-30     subchapter prevails.  Any law referenced in this subchapter that is
4-31     not in conflict or inconsistent with this subchapter is adopted and
4-32     incorporated by reference.
4-33           Sec. 376.468.  REQUIREMENTS FOR FINANCING SERVICES AND
4-34     IMPROVEMENTS.  The board may not finance services and improvement
4-35     projects under this subchapter unless a written petition requesting
4-36     those improvements or services has been filed with the board.  The
4-37     petition must be signed by:
4-38                 (1)  the owners of a majority of the assessed value of
4-39     real property in the district as determined by the most recent
4-40     certified county property tax rolls; or
4-41                 (2)  at least 50 persons who own land in the district,
4-42     if there are more than 50 persons who own property in the district
4-43     as determined by the most recent certified county property tax
4-44     rolls.
4-45           Sec. 376.469.  NONPROFIT CORPORATION.  (a)  The board by
4-46     resolution may authorize the creation of a nonprofit corporation to
4-47     assist and act on behalf of the district in implementing a project
4-48     or providing a service authorized by this subchapter.
4-49           (b)  The board shall appoint the board of directors of a
4-50     nonprofit corporation created under this section.  The board of
4-51     directors of  the nonprofit corporation shall serve in the same
4-52     manner as, for the same term as, and on the conditions of the board
4-53     of directors of a local government corporation created under
4-54     Chapter 431, Transportation Code.
4-55           (c)  A nonprofit corporation created under this section has
4-56     the powers of and is considered for purposes of this subchapter to
4-57     be a local government corporation created under Chapter 431,
4-58     Transportation Code.
4-59           (d)  A nonprofit corporation created under this section may
4-60     implement any project and provide any services authorized by this
4-61     subchapter.
4-62           Sec. 376.470.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
4-63     board by resolution shall establish the number of directors'
4-64     signatures and the procedure required for a disbursement or
4-65     transfer of the district's money.
4-66           Sec. 376.471.  BONDS.  (a)  The district may issue bonds or
4-67     other obligations payable in whole or in part from ad valorem
4-68     taxes, assessments, impact fees, revenues, grants, or other money
4-69     of the district, or any combination of those sources of money, to
 5-1     pay for any authorized purpose of the district.
 5-2           (b)  Bonds or other obligations of the district may be issued
 5-3     in the form of bonds, notes, certificates of participation,
 5-4     including other instruments evidencing a proportionate interest in
 5-5     payments to be made by the district, or other obligations that are
 5-6     issued in the exercise of the district's borrowing power and may be
 5-7     issued in bearer or registered form or not represented by an
 5-8     instrument but the transfer of which is registered on books
 5-9     maintained by or on behalf of the district.  The board may impose
5-10     and collect an assessment under Subchapter F, Chapter 375, for any
5-11     purpose authorized by this subchapter or by Chapter 375.
5-12           (c)  Except as provided by Subsection (d), the district must
5-13     obtain the municipality's approval of:
5-14                 (1)  the issuance of bonds for an improvement project;
5-15                 (2)  the plans and specifications of the improvement
5-16     project to be financed by the bonds; and
5-17                 (3)  the plans and specifications of a district
5-18     improvement project related to:
5-19                       (A)  the use of land owned by the municipality;
5-20                       (B)  an easement granted by the municipality; or
5-21                       (C)  a right-of-way of a street, road, or
5-22     highway.
5-23           (d)  If the district obtains the municipality's approval of a
5-24     capital improvements budget for a specified period not to exceed
5-25     five years, the district may finance the capital improvements and
5-26     issue bonds specified in the budget without further municipal
5-27     approval.
5-28           (e)  Before the district issues bonds, the district shall
5-29     submit the bonds and the record of proceedings of the district
5-30     relating to authorization of the bonds to the attorney general for
5-31     approval as provided by Chapter 1202, Government Code.
5-32           Sec. 376.472.  ASSESSMENTS.  (a)  The board may impose and
5-33     collect an assessment for any purpose authorized by this
5-34     subchapter.
5-35           (b)  Assessments, reassessments, or assessments resulting
5-36     from an addition to or correction of the assessment roll by the
5-37     district, penalties and interest on an assessment or reassessment,
5-38     expenses of collection, and reasonable attorney's fees incurred by
5-39     the district:
5-40                 (1)  are a first and prior lien against the property
5-41     assessed;
5-42                 (2)  are superior to any other lien or claim other than
5-43     a lien or claim for county, school district, or municipal ad
5-44     valorem taxes; and
5-45                 (3)  are the personal liability of and charge against
5-46     the owners of the property even if the owners are not named in the
5-47     assessment proceedings.
5-48           (c)  The lien is effective from the date of the resolution of
5-49     the board levying the assessment until the assessment is paid.  The
5-50     board may enforce the lien in the same manner that the board may
5-51     enforce an ad valorem tax lien against real property.
5-52           Sec. 376.473.  PROPERTY EXEMPTED FROM FEE OR ASSESSMENT.
5-53     (a)  The district may not impose an impact fee or assessment on a
5-54     residence homestead as defined by Section 11.13, Tax Code.
5-55           (b)  The district may not impose an impact fee or assessment
5-56     on the property, equipment, or facilities of a utility.
5-57           Sec. 376.474.  ELECTIONS.  (a)  In addition to the elections
5-58     the district must hold under Subchapter L, Chapter 375, the
5-59     district shall hold an election in the manner provided by that
5-60     subchapter to obtain voter approval before the district imposes a
5-61     maintenance tax or issues bonds payable from ad valorem taxes or
5-62     assessments.
5-63           (b)  The board may submit multiple purposes in a single
5-64     proposition at an election.
5-65           Sec. 376.475.  IMPACT FEES.  The district may impose an
5-66     impact fee for an authorized purpose as provided by Subchapter G,
5-67     Chapter 375.
5-68           Sec. 376.476.  MAINTENANCE TAX.  (a)  If authorized at an
5-69     election held in accordance with Section 376.474, the district may
 6-1     impose and collect an annual ad valorem tax on taxable property in
 6-2     the district for the maintenance and operation of the district and
 6-3     the improvements constructed or acquired by the district or for the
 6-4     provision of services.
 6-5           (b)  The board shall determine the tax rate.
 6-6           Sec. 376.477.  DISSOLUTION OF DISTRICT.  The district may be
 6-7     dissolved as provided by Subchapter M, Chapter 375.  If the
 6-8     district has debt and is dissolved, the district shall remain in
 6-9     existence solely for the limited purpose of discharging its bonds
6-10     or other obligations according to their terms.
6-11           Sec. 376.478.  CONTRACTS.  (a)  To protect the public
6-12     interest, the district may contract with the municipality or the
6-13     county for the municipality or county to provide law enforcement
6-14     services in the district for a fee.
6-15           (b)  The municipality, the county, or another political
6-16     subdivision of the state, without further authorization, may
6-17     contract with the district to implement a project of the district
6-18     or assist the district in providing the services authorized under
6-19     this subchapter.  A contract under this subsection may:
6-20                 (1)  be for a period on which the parties agree;
6-21                 (2)  include terms on which the parties agree;
6-22                 (3)  be payable from taxes or any other sources of
6-23     revenue that may be available for that purpose; or
6-24                 (4)  provide that taxes or other revenue collected at a
6-25     district project or from a person using or purchasing a commodity
6-26     or service at a district project may be paid or rebated to the
6-27     district under the terms of the contract.
6-28           (c)  The district may enter into a contract, lease, or other
6-29     agreement with or make or accept grants and loans to or from:
6-30                 (1)  the United States;
6-31                 (2)  the state or a state agency;
6-32                 (3)  a county, a municipality, or another political
6-33     subdivision of the state;
6-34                 (4)  a public or private corporation, including a
6-35     nonprofit corporation created by the board under this subchapter;
6-36     or
6-37                 (5)  any other person.
6-38           (d)  The district may perform all acts necessary for the full
6-39     exercise of the powers vested in the district on terms and for the
6-40     period the board determines advisable.
6-41           Sec. 376.479.  ANNEXATION.  The district may:
6-42                 (1)  annex territory as provided by Subchapter C,
6-43     Chapter 375; and
6-44                 (2)  annex territory located inside the boundaries of a
6-45     reinvestment zone created by the municipality under Chapter 311,
6-46     Tax Code, if the governing body of the municipality consents to the
6-47     annexation.
6-48           Sec. 376.480.  AGREEMENTS:  GENERAL; DONATIONS, INTERLOCAL
6-49     AGREEMENTS, AND LAW ENFORCEMENT SERVICES.  (a)  The district may
6-50     make an agreement with or accept a donation, grant, or loan from
6-51     any person.
6-52           (b)  The implementation of a project is a governmental
6-53     function or service for the purposes of Chapter 791, Government
6-54     Code.
6-55           (c)  To protect the public interest, the district may
6-56     contract with the municipality or the county for the municipality
6-57     or county to provide law enforcement services in the district for a
6-58     fee.
6-59           SECTION 2.  The legislature finds that:
6-60                 (1)  proper and legal notice of the intention to
6-61     introduce this Act, setting forth the general substance of this
6-62     Act, has been published as provided by law, and the notice and a
6-63     copy of this Act have been furnished to all persons, agencies,
6-64     officials, or entities to which they are required to be furnished
6-65     by the constitution and laws of this state, including the governor,
6-66     who has submitted the notice and Act to the Texas Natural Resource
6-67     Conservation Commission;
6-68                 (2)  the Texas Natural Resource Conservation Commission
6-69     has filed its recommendations relating to this Act with the
 7-1     governor, lieutenant governor, and speaker of the house of
 7-2     representatives within the required time;
 7-3                 (3)  the general law relating to consent by political
 7-4     subdivisions to the creation of districts with conservation,
 7-5     reclamation, and road powers and the inclusion of land in those
 7-6     districts has been complied with; and
 7-7                 (4)  all requirements of the constitution and laws of
 7-8     this state and the rules and procedures of the legislature with
 7-9     respect to the notice, introduction, and passage of this Act have
7-10     been fulfilled and accomplished.
7-11           SECTION 3.  Notwithstanding Section 376.459, Local Government
7-12     Code, as added by this Act:
7-13                 (1)  the initial board of directors of the Near
7-14     Northwest Management District consists of:
7-15           Pos. No.          Name of Director
7-16           1                 ____________________
7-17           2                 ____________________
7-18           3                 ____________________
7-19           4                 ____________________
7-20           5                 ____________________
7-21           6                 ____________________
7-22           7                 ____________________
7-23           8                 ____________________
7-24           9                 ____________________; and
7-25                 (2)  of the initial board, members in positions 1-5
7-26     serve terms that expire June 1, 2005, and members in positions 6-9
7-27     serve terms that expire June 1, 2003.
7-28           SECTION 4.  This Act takes effect immediately if it receives
7-29     a vote of two-thirds of all the members elected to each house, as
7-30     provided by Section 39, Article III, Texas Constitution.  If this
7-31     Act does not receive the vote necessary for immediate effect, this
7-32     Act takes effect September 1, 2001.
7-33                                  * * * * *