By Farrar H.B. No. 3634
77R4677 MXM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the North Side 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. NORTH SIDE MANAGEMENT DISTRICT
1-8 Sec. 376.451. CREATION OF DISTRICT. (a) The North Side
1-9 Management District is created as a special district under Section
1-10 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 North Side 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 15 directors who serve staggered
6-22 terms of four years, with seven members' terms expiring June 1 of
6-23 an odd-numbered year and eight members' terms expiring June 1 of
6-24 the following odd-numbered year. The board may increase or
6-25 decrease the number of directors on the board by resolution,
6-26 provided that it is in the best interest of the district to do so
6-27 and that the board consists of not fewer than 9 and not more than
7-1 30 directors.
7-2 (b) Subchapter D, Chapter 375, applies to the board to the
7-3 extent that subchapter does not conflict with this subchapter. The
7-4 imposition of a tax, assessment, or impact fee requires a vote of a
7-5 majority of the directors serving. Directors may vote on any
7-6 matter authorized by Subchapter D, Chapter 375, and action may be
7-7 taken by the board only if it is approved in the manner prescribed
7-8 by Subchapter D, Chapter 375.
7-9 Sec. 376.460. APPOINTMENT OF DIRECTORS; VACANCY. (a) The
7-10 mayor and members of the governing body of the municipality shall
7-11 appoint directors from persons recommended by the board who meet
7-12 the qualifications of Subchapter D, Chapter 375.
7-13 (b) A vacancy in the office of director because of the
7-14 death, resignation, or removal of a director shall be filled by the
7-15 remaining members of the board by appointing a qualified person for
7-16 the unexpired term.
7-17 Sec. 376.461. POWERS OF DISTRICT. The district has:
7-18 (1) all powers necessary or required to accomplish the
7-19 purposes for which the district was created;
7-20 (2) the rights, powers, privileges, authority, and
7-21 functions of a district created under Chapter 375;
7-22 (3) the powers given to a corporation under Section
7-23 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
7-24 Texas Civil Statutes), and the power to own, operate, acquire,
7-25 construct, lease, improve, and maintain projects;
7-26 (4) the power to impose ad valorem taxes, assessments,
7-27 or impact fees in accordance with Chapter 375 to provide
8-1 improvements and services for a project or activity the district is
8-2 authorized to acquire, construct, improve, or provide under this
8-3 subchapter; and
8-4 (5) the power to correct, add to, or delete
8-5 assessments from its assessment rolls after notice and hearing as
8-6 provided by Subchapter F, Chapter 375.
8-7 Sec. 376.462. EMINENT DOMAIN. The district may not
8-8 exercise the power of eminent domain.
8-9 Sec. 376.463. EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
8-10 AFFECTING PROPERTY. (a) If the district, in exercising a power
8-11 conferred by this subchapter, requires a relocation, adjustment,
8-12 raising, lowering, rerouting, or changing of the grade or the
8-13 construction of any of the following items, the district must take
8-14 that required action at the sole expense of the district:
8-15 (1) a street, alley, highway, overpass, underpass,
8-16 road, railroad track, bridge, facility, or other property;
8-17 (2) an electric line, conduit, facility, or other
8-18 property;
8-19 (3) a telephone or telegraph line, conduit, facility,
8-20 or other property;
8-21 (4) a gas transmission or distribution pipe, pipeline,
8-22 main, facility, or other property;
8-23 (5) a water, sanitary sewer, or storm sewer pipe,
8-24 pipeline, main, facility, or other property;
8-25 (6) a cable television line, cable, conduit, facility,
8-26 or other property; or
8-27 (7) another pipeline, facility, or other property
9-1 relating to the pipeline.
9-2 (b) The district shall bear damages that are suffered by
9-3 owners of the facility or other property.
9-4 Sec. 376.464. RELATION TO OTHER LAW. If any provision of
9-5 general law, including a law referenced in this subchapter, is in
9-6 conflict with or is inconsistent with this subchapter, this
9-7 subchapter prevails. Any law referenced in this subchapter that is
9-8 not in conflict or inconsistent with this subchapter is adopted and
9-9 incorporated by reference.
9-10 Sec. 376.465. REQUIREMENTS FOR FINANCING SERVICES AND
9-11 IMPROVEMENTS. The board may not finance services and improvement
9-12 projects under this subchapter unless a written petition requesting
9-13 those improvements or services has been filed with the board. The
9-14 petition must be signed by:
9-15 (1) the owners of a majority of the assessed value of
9-16 real property in the district as determined by the most recent
9-17 certified county property tax rolls; or
9-18 (2) at least 50 persons who own land in the district,
9-19 if there are more than 50 persons who own property in the district
9-20 as determined by the most recent certified county property tax
9-21 rolls.
9-22 Sec. 376.466. NONPROFIT CORPORATION. (a) The board by
9-23 resolution may authorize the creation of a nonprofit corporation to
9-24 assist and act on behalf of the district in implementing a project
9-25 or providing a service authorized by this subchapter.
9-26 (b) The board shall appoint the board of directors of a
9-27 nonprofit corporation created under this section. The board of
10-1 directors of the nonprofit corporation shall serve in the same
10-2 manner as, for the same term as, and on the conditions of the board
10-3 of directors of a local government corporation created under
10-4 Chapter 431, Transportation Code.
10-5 (c) A nonprofit corporation created under this section has
10-6 the powers of and is considered for purposes of this subchapter to
10-7 be a local government corporation created under Chapter 431,
10-8 Transportation Code.
10-9 (d) A nonprofit corporation created under this section may
10-10 implement any project and provide any services authorized by this
10-11 subchapter.
10-12 Sec. 376.467. DISBURSEMENTS OR TRANSFERS OF FUNDS. The
10-13 board by resolution shall establish the number of directors'
10-14 signatures and the procedure required for a disbursement or
10-15 transfer of the district's money.
10-16 Sec. 376.468. BONDS. (a) The district may issue bonds or
10-17 other obligations payable in whole or in part from ad valorem
10-18 taxes, assessments, impact fees, revenues, grants, or other money
10-19 of the district, or any combination of those sources of money, to
10-20 pay for any authorized purpose of the district.
10-21 (b) Bonds or other obligations of the district may be issued
10-22 in the form of bonds, notes, certificates of participation,
10-23 including other instruments evidencing a proportionate interest in
10-24 payments to be made by the district, or other obligations that are
10-25 issued in the exercise of the district's borrowing power and may be
10-26 issued in bearer or registered form or not represented by an
10-27 instrument but the transfer of which is registered on books
11-1 maintained by or on behalf of the district.
11-2 (c) Except as provided by Subsection (d), the district must
11-3 obtain the municipality's approval of:
11-4 (1) the issuance of bonds for an improvement project;
11-5 (2) the plans and specifications of the improvement
11-6 project to be financed by the bonds; and
11-7 (3) the plans and specifications of a district
11-8 improvement project related to:
11-9 (A) the use of land owned by the municipality;
11-10 (B) an easement granted by the municipality; or
11-11 (C) a right-of-way of a street, road, or
11-12 highway.
11-13 (d) If the district obtains the municipality's approval of a
11-14 capital improvements budget for a specified period not to exceed
11-15 five years, the district may finance the capital improvements and
11-16 issue bonds specified in the budget without further municipal
11-17 approval.
11-18 Sec. 376.469. ASSESSMENTS. (a) The board may impose and
11-19 collect an assessment under Subchapter F, Chapter 375, for any
11-20 purpose authorized by this subchapter or Chapter 375.
11-21 (b) Assessments, reassessments, or assessments resulting
11-22 from an addition to or correction of the assessment roll by the
11-23 district, penalties and interest on an assessment or reassessment,
11-24 expenses of collection, and reasonable attorney's fees incurred by
11-25 the district:
11-26 (1) are a first and prior lien against the property
11-27 assessed;
12-1 (2) are superior to any other lien or claim other than
12-2 a lien or claim for county, school district, or municipal ad
12-3 valorem taxes; and
12-4 (3) are the personal liability of and charge against
12-5 the owners of the property even if the owners are not named in the
12-6 assessment proceedings.
12-7 (c) The lien is effective from the date of the resolution of
12-8 the board levying the assessment until the assessment is paid. The
12-9 board may enforce the lien in the same manner that the board may
12-10 enforce an ad valorem tax lien against real property.
12-11 Sec. 376.470. PROPERTY EXEMPTED FROM TAX, FEE, OR
12-12 ASSESSMENT. (a) The district may not impose a tax, impact fee, or
12-13 assessment on a residential property, multiunit residential
12-14 property, or condominium.
12-15 (b) The district may not impose an impact fee or assessment
12-16 on the property, equipment, or facilities of a utility.
12-17 Sec. 376.471. ELECTIONS. (a) In addition to the elections
12-18 the district must hold under Subchapter L, Chapter 375, the
12-19 district shall hold an election in the manner provided by that
12-20 subchapter to obtain voter approval before the district imposes a
12-21 maintenance tax or issues bonds payable from ad valorem taxes or
12-22 assessments.
12-23 (b) The board may submit multiple purposes in a single
12-24 proposition at an election.
12-25 Sec. 376.472. IMPACT FEES. The district may impose an
12-26 impact fee for an authorized purpose as provided by Subchapter G,
12-27 Chapter 375.
13-1 Sec. 376.473. MAINTENANCE TAX. (a) If authorized at an
13-2 election held in accordance with Section 376.471, the district may
13-3 impose and collect an annual ad valorem tax on taxable property in
13-4 the district for the maintenance and operation of the district and
13-5 the improvements constructed or acquired by the district or for the
13-6 provision of services.
13-7 (b) The board shall determine the tax rate.
13-8 Sec. 376.474. DISSOLUTION OF DISTRICT. The district may
13-9 dissolve as provided by Subchapter M, Chapter 375. If the district
13-10 has debt and is dissolved, the district shall remain in existence
13-11 solely for the limited purpose of discharging its bonds or other
13-12 obligations according to their terms.
13-13 Sec. 376.475. CONTRACTS. (a) To protect the public
13-14 interest, the district may contract with the municipality or the
13-15 county for the municipality or county to provide law enforcement
13-16 services in the district for a fee.
13-17 (b) The municipality, the county, or another political
13-18 subdivision of the state, without further authorization, may
13-19 contract with the district to implement a project of the district
13-20 or assist the district in providing the services authorized under
13-21 this subchapter. A contract under this subsection may:
13-22 (1) be for a period on which the parties agree;
13-23 (2) include terms on which the parties agree;
13-24 (3) be payable from taxes or any other sources of
13-25 revenue that may be available for that purpose; or
13-26 (4) provide that taxes or other revenue collected at a
13-27 district project or from a person using or purchasing a commodity
14-1 or service at a district project may be paid or rebated to the
14-2 district under the terms of the contract.
14-3 (c) The district may enter into a contract, lease, or other
14-4 agreement with or make or accept grants and loans to or from:
14-5 (1) the United States;
14-6 (2) the state or a state agency;
14-7 (3) a county, a municipality, or another political
14-8 subdivision of the state;
14-9 (4) a public or private corporation, including a
14-10 nonprofit corporation created by the board under this subchapter;
14-11 or
14-12 (5) any other person.
14-13 (d) The district may perform all acts necessary for the full
14-14 exercise of the powers vested in the district on terms and for the
14-15 period the board determines advisable.
14-16 Sec. 376.476. INITIAL DIRECTORS. (a) The initial board
14-17 consists of the following persons:
14-18 Pos. No. Name of Director
14-19 1 _________________
14-20 2 _________________
14-21 3 _________________
14-22 4 _________________
14-23 5 _________________
14-24 6 _________________
14-25 7 _________________
14-26 8 _________________
14-27 9 _________________
15-1 10 _________________
15-2 11 _________________
15-3 12 _________________
15-4 13 _________________
15-5 14 _________________
15-6 15 _________________
15-7 (b) Of the initial directors, the terms of directors
15-8 appointed for positions 1 through 7 expire on June 1, 2003, and the
15-9 terms of directors appointed for positions 8 through 15 expire on
15-10 June 1, 2005.
15-11 (c) Section 376.460(a) does not apply to this section.
15-12 (d) This section expires September 1, 2006.
15-13 SECTION 2. The legislature finds that:
15-14 (1) proper and legal notice of the intention to
15-15 introduce this Act, setting forth the general substance of this
15-16 Act, has been published as provided by law, and the notice and a
15-17 copy of this Act have been furnished to all persons, agencies,
15-18 officials, or entities to which they are required to be furnished
15-19 by the constitution and laws of this state, including the governor,
15-20 who has submitted the notice and Act to the Texas Natural Resource
15-21 Conservation Commission;
15-22 (2) the Texas Natural Resource Conservation Commission
15-23 has filed its recommendations relating to this Act with the
15-24 governor, lieutenant governor, and speaker of the house of
15-25 representatives within the required time;
15-26 (3) the general law relating to consent by political
15-27 subdivisions to the creation of districts with conservation,
16-1 reclamation, and road powers and the inclusion of land in those
16-2 districts has been complied with; and
16-3 (4) all requirements of the constitution and laws of
16-4 this state and the rules and procedures of the legislature with
16-5 respect to the notice, introduction, and passage of this Act have
16-6 been fulfilled and accomplished.
16-7 SECTION 3. This Act takes effect immediately if it receives
16-8 a vote of two-thirds of all the members elected to each house, as
16-9 provided by Section 39, Article III, Texas Constitution. If this
16-10 Act does not receive the vote necessary for immediate effect, this
16-11 Act takes effect September 1, 2001.