By Farrar                                             H.B. No. 3634
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Greater Northside Management
 1-3     District; 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.  GREATER NORTHSIDE MANAGEMENT DISTRICT
 1-8           Sec. 376.451.  CREATION OF DISTRICT. (a)  The Greater
 1-9     Northside Management District is created as a special district
1-10     under Section 59, Article XVI, Texas Constitution.
1-11           (b)  The board by resolution may change the district's name.
1-12           Sec. 376.452.  DECLARATION OF INTENT. (a)  The creation of
1-13     the district is necessary to promote, develop, encourage, and
1-14     maintain employment, commerce, transportation, housing, tourism,
1-15     recreation, arts, entertainment, economic development, safety, and
1-16     the public welfare in the north side of the city of Houston.
1-17           (b)  The creation of the district and this legislation are
1-18     not to be interpreted to relieve the county or the municipality
1-19     from providing the level of services, as of the effective date of
1-20     this subchapter, to the area in the district or to release the
1-21     county or the municipality from its obligations to provide services
1-22     to that area.  The district is created to supplement and not
1-23     supplant the county or municipal services provided in the area in
1-24     the district.
 2-1           (c)  The creation of the district is essential to accomplish
 2-2     the purposes of Section 52, Article III, Section 59, Article XVI,
 2-3     and Section 52-a, Article III, Texas Constitution, and other public
 2-4     purposes stated in this subchapter.
 2-5           Sec. 376.453.  DEFINITIONS.  In this subchapter:
 2-6                 (1)  "Board" means the board of directors of the
 2-7     district.
 2-8                 (2)  "County" means Harris County, Texas.
 2-9                 (3)  "District" means the Greater Northside Management
2-10     District.
2-11                 (4)  "Municipality" means the City of Houston, Texas.
2-12                 (5)  "Utility" means a person that provides to the
2-13     public cable television, gas, light, power, telephone, sewage, or
2-14     water service.
2-15           Sec. 376.454.  BOUNDARIES.  The district includes all the
2-16     territory contained in the following  described area:
2-17     BEGINNING at the intersection of the center line of the
2-18     right-of-way of Interstate 10 East with the center line of the
2-19     right-of-way of State Highway 59 North (East Tex. Freeway);
2-20     Thence in a westerly direction to the intersection of the center
2-21     line of the right-of-way of Studemont-Studewood Street with the
2-22     center line of the right-of-way of Interstate 10 West;
2-23     Thence in a northerly direction with the center line of the
2-24     right-of-way of Studewood Street to the intersection with the
2-25     center line of the right-of-way of North Main Street;
2-26     Thence in a northwesterly direction with the center line of the
2-27     right of way of North Main Street to the intersection with the
 3-1     center line of the right-of-way of Crosstimbers Boulevard;
 3-2     Thence in a westerly direction with the center line of the
 3-3     right-of-way of Crosstimbers Boulevard to the intersection with the
 3-4     center line of the right-of-way of Yale Street;
 3-5     Thence in a northerly direction with the center line of the
 3-6     right-of-way of Yale Street to the intersection with the center
 3-7     line of the right-of-way of West Parker Street;
 3-8     Thence in an easterly direction with the center line of the
 3-9     right-of-way West Parker Street to the intersection with the center
3-10     line of the right-of-way of Airline Drive;
3-11     Thence in a northerly direction with the center line of the
3-12     right-of-way of Airline Drive to the intersection with the center
3-13     line of the right-of-way of Carby Street;
3-14     Thence in an easterly direction with the center line of the
3-15     right-of-way of Carby Street to the intersection with the center
3-16     line of the right-of-way of Fieldworth Street;
3-17     Thence in a northerly direction with the center line of the
3-18     right-of-way of Fieldworth Street to the intersection with the
3-19     center line of the right-of-way of Cromwell Street;
3-20     Thence in an easterly direction with the center line of the
3-21     right-of-way of Cromwell Street to the intersection with the center
3-22     line of the right-of-way of the Hardy Toll Road;
3-23     Thence in a southerly direction with the center line of the
3-24     right-of-way of the Hardy Toll Road to the intersection with the
3-25     center line of the right-of-way of Little York Road;
3-26     Thence in an easterly direction with the center line of the
3-27     right-of-way of Little York Road to the intersection with the
 4-1     center line of the right-of-way of State Highway 59 North (East
 4-2     Tex. Freeway);
 4-3     Thence in a southerly direction with the center line of the
 4-4     right-of-way of State Highway 59 (East Tex. Freeway) to the
 4-5     intersection with the center line of the right-of-way of Langley
 4-6     Road;
 4-7     Thence in an easterly direction with the center line of the
 4-8     right-of-way of Langley Road to the intersection with the center
 4-9     line of the right-of-way of Hirsch Road;
4-10     Thence in a southerly direction with the center line of the right
4-11     of way of Hirsch Road to the intersection with the center line of
4-12     the right-of-way of East Crosstimbers Boulevard;
4-13     Thence in a westerly direction with the center line of the
4-14     right-of-way of East Crosstimbers Boulevard to the intersection
4-15     with the center line of the right-of-way line of Highway 59 North
4-16     (East Tex. Freeway);
4-17     Thence in a southerly direction with the center line of the
4-18     right-of-way of Highway 59 North (East Tex. Freeway) to the
4-19     intersection with the center line of the right-of-way of Interstate
4-20     10 East to the POINT of BEGINNING, SAVE AND EXCEPT all tracts or
4-21     parcels of land, rights-of-way, facilities, and improvements owned
4-22     by a utility.
4-23           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES. The
4-24     boundaries and field notes of the district form a closure. If a
4-25     mistake is made in the field notes or in copying the field notes in
4-26     the legislative process, the mistake does not in any way affect the
4-27     district's:
 5-1                 (1)  organization, existence, or validity;
 5-2                 (2)  right to issue any type of bond for the purposes
 5-3     for which the district is created or to pay the principal of and
 5-4     interest on a bond;
 5-5                 (3)  right to impose or collect an assessment or tax;
 5-6     or
 5-7                 (4)  legality or operation.
 5-8           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
 5-9     The district is created to serve a public use and benefit.  All the
5-10     land and other property included in the district will be benefited
5-11     by the improvements and services to be provided by the district
5-12     under powers conferred by Section 52, Article III, Section 59,
5-13     Article XVI, and Section 52-a, Article III, Texas Constitution, and
5-14     other powers granted under this subchapter.
5-15           (b)  The creation of the district is in the public interest
5-16     and is essential to:
5-17                 (1)  further the public purposes of the development and
5-18     diversification of the economy of the state; and
5-19                 (2)  eliminate unemployment and underemployment and
5-20     develop or expand transportation and commerce.
5-21           (c)  The district will:
5-22                 (1)  promote the health, safety, and general welfare of
5-23     residents, employers, potential employees, employees, visitors,
5-24     consumers in the district, and the general public;
5-25                 (2)  provide needed funding to preserve, maintain, and
5-26     enhance the economic health and vitality of the district as a
5-27     community and business center; and
 6-1                 (3)  further promote the health, safety, welfare, and
 6-2     enjoyment of the public by providing pedestrian ways and by
 6-3     landscaping and developing certain areas in the district, which are
 6-4     necessary for the restoration, preservation, and enhancement of
 6-5     scenic beauty.
 6-6           (d)  Pedestrian ways along or across a street, whether at
 6-7     grade or above or below the surface, and street lighting, street
 6-8     landscaping, and street art objects are parts of and necessary
 6-9     components of a street and are considered to be a street or road
6-10     improvement.
6-11           (e)  The district will not act as the agent or
6-12     instrumentality of any private interest even though many private
6-13     interests will be benefited by the district, as will the general
6-14     public.
6-15           Sec. 376.457.  APPLICATION OF OTHER LAW. Except as otherwise
6-16     provided by this subchapter, Chapter 375 applies to the district.
6-17           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER. This subchapter
6-18     shall be liberally construed in conformity with the findings and
6-19     purposes stated in this subchapter.
6-20           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
6-21     district is governed by a board of 11 directors who serve staggered
6-22     terms of four years, with five members' terms expiring June 1 of an
6-23     odd-numbered year and six members' terms expiring June 1 of the
6-24     following odd-numbered year.  The board may increase or decrease
6-25     the number of directors on the board by resolution, provided that
6-26     it is in the best interest of the district to do so and that the
6-27     board consists of not fewer than 9 and not more than 30 directors. 
 7-1           (b)  Subchapter D, Chapter 375, applies to the board to the
 7-2     extent that subchapter does not conflict with this subchapter.  The
 7-3     imposition of a tax, assessment, or impact fee requires a vote of a
 7-4     majority of the directors serving.  Directors may vote on any
 7-5     matter authorized by Subchapter D, Chapter 375, and action may be
 7-6     taken by the board only if it is approved in the manner prescribed
 7-7     by Subchapter D, Chapter 375.
 7-8           Sec. 376.460.  APPOINTMENT OF DIRECTORS; VACANCY.  (a)  The
 7-9     mayor and members of the governing body of the municipality shall
7-10     appoint directors from persons recommended by the board who meet
7-11     the qualifications of Subchapter D, Chapter 375.
7-12           (b)  A vacancy in the office of director because of the
7-13     death, resignation, or removal of a director shall be filled by the
7-14     remaining members of the board by appointing a qualified person for
7-15     the unexpired term.
7-16           Sec. 376.461.  POWERS OF DISTRICT.  The district has:
7-17                 (1)  all powers necessary or required to accomplish the
7-18     purposes for which the district was created;
7-19                 (2)  the rights, powers, privileges, authority, and
7-20     functions of a district created under Chapter 375;
7-21                 (3)  the powers given to a corporation under Section
7-22     4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
7-23     Texas Civil Statutes), and the power to own, operate, acquire,
7-24     construct, lease, improve, and maintain projects;
7-25                 (4)  the power to impose ad valorem taxes, assessments,
7-26     or impact fees in accordance with Chapter 375 to provide
7-27     improvements and services for a project or activity the district is
 8-1     authorized to acquire, construct, improve, or provide under this
 8-2     subchapter; and
 8-3                 (5)  the power to correct, add to, or delete
 8-4     assessments from its assessment rolls after notice and hearing as
 8-5     provided by Subchapter F, Chapter 375.
 8-6           Sec. 376.462.  EMINENT DOMAIN.   The district may not
 8-7     exercise the power of eminent domain.
 8-8           Sec. 376.463.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
 8-9     AFFECTING PROPERTY.  (a)  If the district, in exercising a power
8-10     conferred by this subchapter, requires a relocation, adjustment,
8-11     raising, lowering, rerouting, or changing of the grade or the
8-12     construction of any of the following items, the district must take
8-13     that required action at the sole expense of the district:
8-14                 (1)  a street, alley, highway, overpass, underpass,
8-15     road, railroad track, bridge, facility, or other property;
8-16                 (2)  an electric line, conduit, facility, or other
8-17     property;
8-18                 (3)  a telephone or telegraph line, conduit, facility,
8-19     or other property;
8-20                 (4)  a gas transmission or distribution pipe, pipeline,
8-21     main, facility, or other property;
8-22                 (5)  a water, sanitary sewer, or storm sewer pipe,
8-23     pipeline, main, facility, or other property;
8-24                 (6)  a cable television line, cable, conduit, facility,
8-25     or other property; or
8-26                 (7)  another pipeline, facility, or other property
8-27     relating to the pipeline.
 9-1           (b)  The district shall bear damages that are suffered by
 9-2     owners of the facility or other property.
 9-3           Sec. 376.464.  RELATION TO OTHER LAW.  If any provision of
 9-4     general law, including a law referenced in this subchapter, is in
 9-5     conflict with or is inconsistent with this subchapter, this
 9-6     subchapter prevails.  Any law referenced in this subchapter that is
 9-7     not in conflict or inconsistent with this subchapter is adopted and
 9-8     incorporated by reference.
 9-9           Sec. 376.465.  REQUIREMENTS FOR FINANCING SERVICES AND
9-10     IMPROVEMENTS.  The board may not finance services and improvement
9-11     projects under this subchapter unless a written petition requesting
9-12     those improvements or services has been filed with the board.  The
9-13     petition must be signed by:
9-14                 (1)  the owners of a majority of the assessed value of
9-15     real property in the district as determined by the most recent
9-16     certified county property tax rolls; or
9-17                 (2)  at least 50 persons who own land in the district,
9-18     if there are more than 50 persons who own property in the district
9-19     as determined by the most recent certified county property tax
9-20     rolls.
9-21           Sec. 376.466.  NONPROFIT CORPORATION.  (a)  The board by
9-22     resolution may authorize the creation of a nonprofit corporation to
9-23     assist and act on behalf of the district in implementing a project
9-24     or providing a service authorized by this subchapter.
9-25           (b)  The board shall appoint the board of directors of a
9-26     nonprofit corporation created under this section.  The board of
9-27     directors of the nonprofit corporation shall serve in the same
 10-1    manner as, for the same term as, and on the conditions of the board
 10-2    of directors of a local government corporation created under
 10-3    Chapter 431, Transportation Code.
 10-4          (c)  A nonprofit corporation created under this section has
 10-5    the powers of and is considered for purposes of this subchapter to
 10-6    be a local government corporation created under Chapter 431,
 10-7    Transportation Code.
 10-8          (d)  A nonprofit corporation created under this section may
 10-9    implement any project and provide any services authorized by this
10-10    subchapter.
10-11          Sec. 376.467.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
10-12    board by resolution shall establish the number of directors'
10-13    signatures and the procedure required for a disbursement or
10-14    transfer of the district's money.
10-15          Sec. 376.468.  BONDS.  (a)  The district may issue bonds or
10-16    other obligations payable in whole or in part from ad valorem
10-17    taxes, assessments, impact fees, revenues, grants, or other money
10-18    of the district, or any combination of those sources of money, to
10-19    pay for any authorized purpose of the district.
10-20          (b)  Bonds or other obligations of the district may be issued
10-21    in the form of bonds, notes, certificates of participation,
10-22    including other instruments evidencing a proportionate interest in
10-23    payments to be made by the district, or other obligations that are
10-24    issued in the exercise of the district's borrowing power and may be
10-25    issued in bearer or registered form or not represented by an
10-26    instrument but the transfer of which is registered on books
10-27    maintained by or on behalf of the district.
 11-1          (c)  Except as provided by Subsection (d), the district must
 11-2    obtain the municipality's approval of:
 11-3                (1)  the issuance of bonds for an improvement project;
 11-4                (2)  the plans and specifications of the improvement
 11-5    project to be financed by the bonds; and
 11-6                (3)  the plans and specifications of a district
 11-7    improvement project related to:
 11-8                      (A)  the use of land owned by the municipality;
 11-9                      (B)  an easement granted by the municipality; or
11-10                      (C)  a right-of-way of a street, road, or
11-11    highway.
11-12          (d)  If the district obtains the municipality's approval of a
11-13    capital improvements budget for a specified period not to exceed
11-14    five years, the district may finance the capital improvements and
11-15    issue bonds specified in the budget without further municipal
11-16    approval.
11-17          Sec. 376.469.  ASSESSMENTS.  (a)  The board may impose and
11-18    collect an assessment under Subchapter F, Chapter 375, for any
11-19    purpose authorized by this subchapter or Chapter 375.
11-20          (b)  Assessments, reassessments, or assessments resulting
11-21    from an addition to or correction of the assessment roll by the
11-22    district, penalties and interest on an assessment or reassessment,
11-23    expenses of collection, and reasonable attorney's fees incurred by
11-24    the district:
11-25                (1)  are a first and prior lien against the property
11-26    assessed;
11-27                (2)  are superior to any other lien or claim other than
 12-1    a lien or claim for county, school district, or municipal ad
 12-2    valorem taxes; and
 12-3                (3)  are the personal liability of and charge against
 12-4    the owners of the property even if the owners are not named in the
 12-5    assessment proceedings.
 12-6          (c)  The lien is effective from the date of the resolution of
 12-7    the board levying the assessment until the assessment is paid.  The
 12-8    board may enforce the lien in the same manner that the board may
 12-9    enforce an ad valorem tax lien against real property.
12-10          Sec. 376.470.  PROPERTY EXEMPTED FROM TAX, FEE, OR
12-11    ASSESSMENT.  (a)  The district may not impose a tax, impact fee, or
12-12    assessment on a residential property, multiunit residential
12-13    property, or condominium.
12-14          (b)  The district may not impose an impact fee or assessment
12-15    on the property, equipment, or facilities of a utility.
12-16          Sec. 376.471.  ELECTIONS.  (a)  In addition to the elections
12-17    the district must hold under Subchapter L, Chapter 375, the
12-18    district shall hold an election in the manner provided by that
12-19    subchapter to obtain voter approval before the district imposes a
12-20    maintenance tax or issues bonds payable from ad valorem taxes or
12-21    assessments.
12-22          (b)  The board may submit multiple purposes in a single
12-23    proposition at an election.
12-24          Sec. 376.472.  IMPACT FEES.  The district may impose an
12-25    impact fee for an authorized purpose as provided by Subchapter G,
12-26    Chapter 375.
12-27          Sec. 376.473.  MAINTENANCE TAX.  (a)  If authorized at an
 13-1    election held in accordance with Section 376.471, the district may
 13-2    impose and collect an annual ad valorem tax on taxable property in
 13-3    the district for the maintenance and operation of the district and
 13-4    the improvements constructed or acquired by the district or for the
 13-5    provision of services.
 13-6          (b)  The board shall determine the tax rate.
 13-7          Sec. 376.474.  DISSOLUTION OF DISTRICT.  The district may
 13-8    dissolve as provided by Subchapter M, Chapter 375.  If the district
 13-9    has debt and is dissolved, the district shall remain in existence
13-10    solely for the limited purpose of discharging its bonds or other
13-11    obligations according to their terms.
13-12          Sec. 376.475.  CONTRACTS.  (a)  To protect the public
13-13    interest, the district may contract with the municipality or the
13-14    county for the municipality or county to provide law enforcement
13-15    services in the district for a fee.
13-16          (b)  The municipality, the county, or another political
13-17    subdivision of the state, without further authorization, may
13-18    contract with the district to implement a project of the district
13-19    or assist the district in providing the services authorized under
13-20    this subchapter.  A contract under this subsection may:
13-21                (1)  be for a period on which the parties agree;
13-22                (2)  include terms on which the parties agree;
13-23                (3)  be payable from taxes or any other sources of
13-24    revenue that may be available for that purpose; or
13-25                (4)  provide that taxes or other revenue collected at a
13-26    district project or from a person using or purchasing a commodity
13-27    or service at a district project may be paid or rebated to the
 14-1    district under the terms of the contract.
 14-2          (c)  The district may enter into a contract, lease, or other
 14-3    agreement with or make or accept grants and loans to or from:
 14-4                (1)  the United States;
 14-5                (2)  the state or a state agency;
 14-6                (3)  a county, a municipality, or another political
 14-7    subdivision of the state;
 14-8                (4)  a public or private corporation, including a
 14-9    nonprofit corporation created by the board under this subchapter;
14-10    or
14-11                (5)  any other person.
14-12          (d)  The district may perform all acts necessary for the full
14-13    exercise of the powers vested in the district on terms and for the
14-14    period the board determines advisable.
14-15          Sec. 376.476.  INITIAL DIRECTORS.  (a)  The initial board
14-16    consists of the following persons:
14-17                Pos. No.          Name of Director
14-18                1                 Jeanette Rash
14-19                2                 Lisa Cabral
14-20                3                 Rodrigo Gonzalez
14-21                4                 Toy Brando Halsey
14-22                5                 Dr. John Perez
14-23                6                 Leticia Elias
14-24                7                 Sam Treynor
14-25                8                 Candy Perez
14-26                9                 Dr. San Juanita Garza
14-27                10                Jesse Tanner
 15-1                11                Frumencio Reyes
 15-2          (b)  Of the initial directors, the terms of directors
 15-3    appointed for positions 1 through 5 expire on June 1, 2003, and the
 15-4    terms of directors appointed for positions 6 through 11 expire on
 15-5    June 1, 2005.
 15-6          (c)  Section 376.460(a) does not apply to this section.
 15-7          (d)  This section expires September 1, 2006.
 15-8          SECTION 2.  The legislature finds that:
 15-9                (1)  proper and legal notice of the intention to
15-10    introduce this Act, setting forth the general substance of this
15-11    Act, has been published as provided by law, and the notice and a
15-12    copy of this Act have been furnished to all persons, agencies,
15-13    officials, or entities to which they are required to be furnished
15-14    by the constitution and laws of this state, including the governor,
15-15    who has submitted the notice and Act to the Texas Natural Resource
15-16    Conservation Commission;
15-17                (2)  the Texas Natural Resource Conservation Commission
15-18    has filed its recommendations relating to this Act with the
15-19    governor, lieutenant governor, and speaker of the house of
15-20    representatives within the required time;
15-21                (3)  the general law relating to consent by political
15-22    subdivisions to the creation of districts with conservation,
15-23    reclamation, and road powers and the inclusion of land in those
15-24    districts has been complied with; and
15-25                (4)  all requirements of the constitution and laws of
15-26    this state and the rules and procedures of the legislature with
15-27    respect to the notice, introduction, and passage of this Act have
 16-1    been fulfilled and accomplished.
 16-2          SECTION 3.  This Act takes effect immediately if it receives
 16-3    a vote of two-thirds of all the members elected to each house, as
 16-4    provided by Section 39, Article III, Texas Constitution.  If this
 16-5    Act does not receive the vote necessary for immediate effect, this
 16-6    Act takes effect September 1, 2001.