1-1     By:  Farrar (Senate Sponsor - Gallegos)               H.B. No. 3634
 1-2           (In the Senate - Received from the House April 30, 2001;
 1-3     May 1, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 10, 2001, reported favorably by
 1-5     the following vote:  Yeas 5, Nays 0; May 10, 2001, sent to
 1-6     printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the creation of the Greater Northside Management
1-10     District; providing authority to impose a tax and issue bonds.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1.  Chapter 376, Local Government Code, is amended by
1-13     adding Subchapter K to read as follows:
1-14            SUBCHAPTER K.  GREATER NORTHSIDE MANAGEMENT DISTRICT
1-15           Sec. 376.451.  CREATION OF DISTRICT. (a)  The Greater
1-16     Northside Management District is created as a special district
1-17     under Section 59, Article XVI, Texas Constitution.
1-18           (b)  The board by resolution may change the district's name.
1-19           Sec. 376.452.  DECLARATION OF INTENT. (a)  The creation of
1-20     the district is necessary to promote, develop, encourage, and
1-21     maintain employment, commerce, transportation, housing, tourism,
1-22     recreation, arts, entertainment, economic development, safety, and
1-23     the public welfare in the north side of the city of Houston.
1-24           (b)  The creation of the district and this legislation are
1-25     not to be interpreted to relieve the county or the municipality
1-26     from providing the level of services, as of the effective date of
1-27     this subchapter, to the area in the district or to release the
1-28     county or the municipality from its obligations to provide services
1-29     to that area.  The district is created to supplement and not
1-30     supplant the county or municipal services provided in the area in
1-31     the district.
1-32           (c)  The creation of the district is essential to accomplish
1-33     the purposes of Section 52, Article III, Section 59, Article XVI,
1-34     and Section 52-a, Article III, Texas Constitution, and other public
1-35     purposes stated in this subchapter.
1-36           Sec. 376.453.  DEFINITIONS.  In this subchapter:
1-37                 (1)  "Board" means the board of directors of the
1-38     district.
1-39                 (2)  "County" means Harris County, Texas.
1-40                 (3)  "District" means the Greater Northside Management
1-41     District.
1-42                 (4)  "Municipality" means the City of Houston, Texas.
1-43                 (5)  "Utility" means a person that provides to the
1-44     public cable television, gas, light, power, telephone, sewage, or
1-45     water service.
1-46           Sec. 376.454.  BOUNDARIES.  The district includes all the
1-47     territory contained in the following  described area:
1-48     BEGINNING at the intersection of the center line of the
1-49     right-of-way of Interstate 10 East with the center line of the
1-50     right-of-way of State Highway 59 North (East Tex. Freeway);
1-51     Thence in a westerly direction to the intersection of the center
1-52     line of the right-of-way of Studemont-Studewood Street with the
1-53     center line of the right-of-way of Interstate 10 West;
1-54     Thence in a northerly direction with the center line of the
1-55     right-of-way of Studewood Street to the intersection with the
1-56     center line of the right-of-way of North Main Street;
1-57     Thence in a northwesterly direction with the center line of the
1-58     right of way of North Main Street to the intersection with the
1-59     center line of the right-of-way of Crosstimbers Boulevard;
1-60     Thence in a westerly direction with the center line of the
1-61     right-of-way of Crosstimbers Boulevard to the intersection with the
1-62     center line of the right-of-way of Yale Street;
1-63     Thence in a northerly direction with the center line of the
1-64     right-of-way of Yale Street to the intersection with the center
 2-1     line of the right-of-way of West Parker Street;
 2-2     Thence in an easterly direction with the center line of the
 2-3     right-of-way West Parker Street to the intersection with the center
 2-4     line of the right-of-way of Airline Drive;
 2-5     Thence in a northerly direction with the center line of the
 2-6     right-of-way of Airline Drive to the intersection with the center
 2-7     line of the right-of-way of Carby Street;
 2-8     Thence in an easterly direction with the center line of the
 2-9     right-of-way of Carby Street to the intersection with the center
2-10     line of the right-of-way of Fieldworth Street;
2-11     Thence in a northerly direction with the center line of the
2-12     right-of-way of Fieldworth Street to the intersection with the
2-13     center line of the right-of-way of Cromwell Street;
2-14     Thence in an easterly direction with the center line of the
2-15     right-of-way of Cromwell Street to the intersection with the center
2-16     line of the right-of-way of the Hardy Toll Road;
2-17     Thence in a southerly direction with the center line of the
2-18     right-of-way of the Hardy Toll Road to the intersection with the
2-19     center line of the right-of-way of Little York Road;
2-20     Thence in an easterly direction with the center line of the
2-21     right-of-way of Little York Road to the intersection with the
2-22     center line of the right-of-way of State Highway 59 North (East
2-23     Tex. Freeway);
2-24     Thence in a southerly direction with the center line of the
2-25     right-of-way of State Highway 59 (East Tex. Freeway) to the
2-26     intersection with the center line of the right-of-way of Langley
2-27     Road;
2-28     Thence in an easterly direction with the center line of the
2-29     right-of-way of Langley Road to the intersection with the center
2-30     line of the right-of-way of Hirsch Road;
2-31     Thence in a southerly direction with the center line of the right
2-32     of way of Hirsch Road to the intersection with the center line of
2-33     the right-of-way of East Crosstimbers Boulevard;
2-34     Thence in a westerly direction with the center line of the
2-35     right-of-way of East Crosstimbers Boulevard to the intersection
2-36     with the center line of the right-of-way line of Highway 59 North
2-37     (East Tex. Freeway);
2-38     Thence in a southerly direction with the center line of the
2-39     right-of-way of Highway 59 North (East Tex. Freeway) to the
2-40     intersection with the center line of the right-of-way of Interstate
2-41     10 East to the POINT of BEGINNING, SAVE AND EXCEPT all tracts or
2-42     parcels of land, rights-of-way, facilities, and improvements owned
2-43     by a utility.
2-44           Sec. 376.455.  FINDINGS RELATING TO BOUNDARIES. The
2-45     boundaries and field notes of the district form a closure. If a
2-46     mistake is made in the field notes or in copying the field notes in
2-47     the legislative process, the mistake does not in any way affect the
2-48     district's:
2-49                 (1)  organization, existence, or validity;
2-50                 (2)  right to issue any type of bond for the purposes
2-51     for which the district is created or to pay the principal of and
2-52     interest on a bond;
2-53                 (3)  right to impose or collect an assessment or tax;
2-54     or
2-55                 (4)  legality or operation.
2-56           Sec. 376.456.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
2-57     The district is created to serve a public use and benefit.  All the
2-58     land and other property included in the district will be benefited
2-59     by the improvements and services to be provided by the district
2-60     under powers conferred by Section 52, Article III, Section 59,
2-61     Article XVI, and Section 52-a, Article III, Texas Constitution, and
2-62     other powers granted under this subchapter.
2-63           (b)  The creation of the district is in the public interest
2-64     and is essential to:
2-65                 (1)  further the public purposes of the development and
2-66     diversification of the economy of the state; and
2-67                 (2)  eliminate unemployment and underemployment and
2-68     develop or expand transportation and commerce.
2-69           (c)  The district will:
 3-1                 (1)  promote the health, safety, and general welfare of
 3-2     residents, employers, potential employees, employees, visitors,
 3-3     consumers in the district, and the general public;
 3-4                 (2)  provide needed funding to preserve, maintain, and
 3-5     enhance the economic health and vitality of the district as a
 3-6     community and business center; and
 3-7                 (3)  further promote the health, safety, welfare, and
 3-8     enjoyment of the public by providing pedestrian ways and by
 3-9     landscaping and developing certain areas in the district, which are
3-10     necessary for the restoration, preservation, and enhancement of
3-11     scenic beauty.
3-12           (d)  Pedestrian ways along or across a street, whether at
3-13     grade or above or below the surface, and street lighting, street
3-14     landscaping, and street art objects are parts of and necessary
3-15     components of a street and are considered to be a street or road
3-16     improvement.
3-17           (e)  The district will not act as the agent or
3-18     instrumentality of any private interest even though many private
3-19     interests will be benefited by the district, as will the general
3-20     public.
3-21           Sec. 376.457.  APPLICATION OF OTHER LAW. Except as otherwise
3-22     provided by this subchapter, Chapter 375 applies to the district.
3-23           Sec. 376.458.  CONSTRUCTION OF SUBCHAPTER. This subchapter
3-24     shall be liberally construed in conformity with the findings and
3-25     purposes stated in this subchapter.
3-26           Sec. 376.459.  BOARD OF DIRECTORS IN GENERAL.  (a)  The
3-27     district is governed by a board of 11 directors who serve staggered
3-28     terms of four years, with five members' terms expiring June 1 of an
3-29     odd-numbered year and six members' terms expiring June 1 of the
3-30     following odd-numbered year.  The board may increase or decrease
3-31     the number of directors on the board by resolution, provided that
3-32     it is in the best interest of the district to do so and that the
3-33     board consists of not fewer than 9 and not more than 30 directors. 
3-34           (b)  Subchapter D, Chapter 375, applies to the board to the
3-35     extent that subchapter does not conflict with this subchapter.  The
3-36     imposition of a tax, assessment, or impact fee requires a vote of a
3-37     majority of the directors serving.  Directors may vote on any
3-38     matter authorized by Subchapter D, Chapter 375, and action may be
3-39     taken by the board only if it is approved in the manner prescribed
3-40     by Subchapter D, Chapter 375.
3-41           Sec. 376.460.  APPOINTMENT OF DIRECTORS; VACANCY.  (a)  The
3-42     mayor and members of the governing body of the municipality shall
3-43     appoint directors from persons recommended by the board who meet
3-44     the qualifications of Subchapter D, Chapter 375.
3-45           (b)  A vacancy in the office of director because of the
3-46     death, resignation, or removal of a director shall be filled by the
3-47     remaining members of the board by appointing a qualified person for
3-48     the unexpired term.
3-49           Sec. 376.461.  POWERS OF DISTRICT.  The district has:
3-50                 (1)  all powers necessary or required to accomplish the
3-51     purposes for which the district was created;
3-52                 (2)  the rights, powers, privileges, authority, and
3-53     functions of a district created under Chapter 375;
3-54                 (3)  the powers given to a corporation under Section
3-55     4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
3-56     Texas Civil Statutes), and the power to own, operate, acquire,
3-57     construct, lease, improve, and maintain projects;
3-58                 (4)  the power to impose ad valorem taxes, assessments,
3-59     or impact fees in accordance with Chapter 375 to provide
3-60     improvements and services for a project or activity the district is
3-61     authorized to acquire, construct, improve, or provide under this
3-62     subchapter; and
3-63                 (5)  the power to correct, add to, or delete
3-64     assessments from its assessment rolls after notice and hearing as
3-65     provided by Subchapter F, Chapter 375.
3-66           Sec. 376.462.  EMINENT DOMAIN.   The district may not
3-67     exercise the power of eminent domain.
3-68           Sec. 376.463.  EXPENSES AND LIABILITY FOR CERTAIN ACTIONS
3-69     AFFECTING PROPERTY.  (a)  If the district, in exercising a power
 4-1     conferred by this subchapter, requires a relocation, adjustment,
 4-2     raising, lowering, rerouting, or changing of the grade or the
 4-3     construction of any of the following items, the district must take
 4-4     that required action at the sole expense of the district:
 4-5                 (1)  a street, alley, highway, overpass, underpass,
 4-6     road, railroad track, bridge, facility, or other property;
 4-7                 (2)  an electric line, conduit, facility, or other
 4-8     property;
 4-9                 (3)  a telephone or telegraph line, conduit, facility,
4-10     or other property;
4-11                 (4)  a gas transmission or distribution pipe, pipeline,
4-12     main, facility, or other property;
4-13                 (5)  a water, sanitary sewer, or storm sewer pipe,
4-14     pipeline, main, facility, or other property;
4-15                 (6)  a cable television line, cable, conduit, facility,
4-16     or other property; or
4-17                 (7)  another pipeline, facility, or other property
4-18     relating to the pipeline.
4-19           (b)  The district shall bear damages that are suffered by
4-20     owners of the facility or other property.
4-21           Sec. 376.464.  RELATION TO OTHER LAW.  If any provision of
4-22     general law, including a law referenced in this subchapter, is in
4-23     conflict with or is inconsistent with this subchapter, this
4-24     subchapter prevails.  Any law referenced in this subchapter that is
4-25     not in conflict or inconsistent with this subchapter is adopted and
4-26     incorporated by reference.
4-27           Sec. 376.465.  REQUIREMENTS FOR FINANCING SERVICES AND
4-28     IMPROVEMENTS.  The board may not finance services and improvement
4-29     projects under this subchapter unless a written petition requesting
4-30     those improvements or services has been filed with the board.  The
4-31     petition must be signed by:
4-32                 (1)  the owners of a majority of the assessed value of
4-33     real property in the district as determined by the most recent
4-34     certified county property tax rolls; or
4-35                 (2)  at least 50 persons who own land in the district,
4-36     if there are more than 50 persons who own property in the district
4-37     as determined by the most recent certified county property tax
4-38     rolls.
4-39           Sec. 376.466.  NONPROFIT CORPORATION.  (a)  The board by
4-40     resolution may authorize the creation of a nonprofit corporation to
4-41     assist and act on behalf of the district in implementing a project
4-42     or providing a service authorized by this subchapter.
4-43           (b)  The board shall appoint the board of directors of a
4-44     nonprofit corporation created under this section.  The board of
4-45     directors of the nonprofit corporation shall serve in the same
4-46     manner as, for the same term as, and on the conditions of the board
4-47     of directors of a local government corporation created under
4-48     Chapter 431, Transportation Code.
4-49           (c)  A nonprofit corporation created under this section has
4-50     the powers of and is considered for purposes of this subchapter to
4-51     be a local government corporation created under Chapter 431,
4-52     Transportation Code.
4-53           (d)  A nonprofit corporation created under this section may
4-54     implement any project and provide any services authorized by this
4-55     subchapter.
4-56           Sec. 376.467.  DISBURSEMENTS OR TRANSFERS OF FUNDS.  The
4-57     board by resolution shall establish the number of directors'
4-58     signatures and the procedure required for a disbursement or
4-59     transfer of the district's money.
4-60           Sec. 376.468.  BONDS.  (a)  The district may issue bonds or
4-61     other obligations payable in whole or in part from ad valorem
4-62     taxes, assessments, impact fees, revenues, grants, or other money
4-63     of the district, or any combination of those sources of money, to
4-64     pay for any authorized purpose of the district.
4-65           (b)  Bonds or other obligations of the district may be issued
4-66     in the form of bonds, notes, certificates of participation,
4-67     including other instruments evidencing a proportionate interest in
4-68     payments to be made by the district, or other obligations that are
4-69     issued in the exercise of the district's borrowing power and may be
 5-1     issued in bearer or registered form or not represented by an
 5-2     instrument but the transfer of which is registered on books
 5-3     maintained by or on behalf of the district.
 5-4           (c)  Except as provided by Subsection (d), the district must
 5-5     obtain the municipality's approval of:
 5-6                 (1)  the issuance of bonds for an improvement project;
 5-7                 (2)  the plans and specifications of the improvement
 5-8     project to be financed by the bonds; and
 5-9                 (3)  the plans and specifications of a district
5-10     improvement project related to:
5-11                       (A)  the use of land owned by the municipality;
5-12                       (B)  an easement granted by the municipality; or
5-13                       (C)  a right-of-way of a street, road, or
5-14     highway.
5-15           (d)  If the district obtains the municipality's approval of a
5-16     capital improvements budget for a specified period not to exceed
5-17     five years, the district may finance the capital improvements and
5-18     issue bonds specified in the budget without further municipal
5-19     approval.
5-20           Sec. 376.469.  ASSESSMENTS.  (a)  The board may impose and
5-21     collect an assessment under Subchapter F, Chapter 375, for any
5-22     purpose authorized by this subchapter or Chapter 375.
5-23           (b)  Assessments, reassessments, or assessments resulting
5-24     from an addition to or correction of the assessment roll by the
5-25     district, penalties and interest on an assessment or reassessment,
5-26     expenses of collection, and reasonable attorney's fees incurred by
5-27     the district:
5-28                 (1)  are a first and prior lien against the property
5-29     assessed;
5-30                 (2)  are superior to any other lien or claim other than
5-31     a lien or claim for county, school district, or municipal ad
5-32     valorem taxes; and
5-33                 (3)  are the personal liability of and charge against
5-34     the owners of the property even if the owners are not named in the
5-35     assessment proceedings.
5-36           (c)  The lien is effective from the date of the resolution of
5-37     the board levying the assessment until the assessment is paid.  The
5-38     board may enforce the lien in the same manner that the board may
5-39     enforce an ad valorem tax lien against real property.
5-40           Sec. 376.470.  PROPERTY EXEMPTED FROM TAX, FEE, OR
5-41     ASSESSMENT.  (a)  The district may not impose a tax, impact fee, or
5-42     assessment on a residential property, multiunit residential
5-43     property, or condominium.
5-44           (b)  The district may not impose an impact fee or assessment
5-45     on the property, equipment, or facilities of a utility.
5-46           Sec. 376.471.  ELECTIONS.  (a)  In addition to the elections
5-47     the district must hold under Subchapter L, Chapter 375, the
5-48     district shall hold an election in the manner provided by that
5-49     subchapter to obtain voter approval before the district imposes a
5-50     maintenance tax or issues bonds payable from ad valorem taxes or
5-51     assessments.
5-52           (b)  The board may submit multiple purposes in a single
5-53     proposition at an election.
5-54           Sec. 376.472.  IMPACT FEES.  The district may impose an
5-55     impact fee for an authorized purpose as provided by Subchapter G,
5-56     Chapter 375.
5-57           Sec. 376.473.  MAINTENANCE TAX.  (a)  If authorized at an
5-58     election held in accordance with Section 376.471, the district may
5-59     impose and collect an annual ad valorem tax on taxable property in
5-60     the district for the maintenance and operation of the district and
5-61     the improvements constructed or acquired by the district or for the
5-62     provision of services.
5-63           (b)  The board shall determine the tax rate.
5-64           Sec. 376.474.  DISSOLUTION OF DISTRICT.  The district may
5-65     dissolve as provided by Subchapter M, Chapter 375.  If the district
5-66     has debt and is dissolved, the district shall remain in existence
5-67     solely for the limited purpose of discharging its bonds or other
5-68     obligations according to their terms.
5-69           Sec. 376.475.  CONTRACTS.  (a)  To protect the public
 6-1     interest, the district may contract with the municipality or the
 6-2     county for the municipality or county to provide law enforcement
 6-3     services in the district for a fee.
 6-4           (b)  The municipality, the county, or another political
 6-5     subdivision of the state, without further authorization, may
 6-6     contract with the district to implement a project of the district
 6-7     or assist the district in providing the services authorized under
 6-8     this subchapter.  A contract under this subsection may:
 6-9                 (1)  be for a period on which the parties agree;
6-10                 (2)  include terms on which the parties agree;
6-11                 (3)  be payable from taxes or any other sources of
6-12     revenue that may be available for that purpose; or
6-13                 (4)  provide that taxes or other revenue collected at a
6-14     district project or from a person using or purchasing a commodity
6-15     or service at a district project may be paid or rebated to the
6-16     district under the terms of the contract.
6-17           (c)  The district may enter into a contract, lease, or other
6-18     agreement with or make or accept grants and loans to or from:
6-19                 (1)  the United States;
6-20                 (2)  the state or a state agency;
6-21                 (3)  a county, a municipality, or another political
6-22     subdivision of the state;
6-23                 (4)  a public or private corporation, including a
6-24     nonprofit corporation created by the board under this subchapter;
6-25     or
6-26                 (5)  any other person.
6-27           (d)  The district may perform all acts necessary for the full
6-28     exercise of the powers vested in the district on terms and for the
6-29     period the board determines advisable.
6-30           Sec. 376.476.  INITIAL DIRECTORS.  (a)  The initial board
6-31     consists of the following persons:
6-32                 Pos. No.          Name of Director
6-33                 1                 Jeanette Rash
6-34                 2                 Lisa Cabral
6-35                 3                 Rodrigo Gonzalez
6-36                 4                 Toy Brando Halsey
6-37                 5                 Dr. John Perez
6-38                 6                 Leticia Elias
6-39                 7                 Sam Treynor
6-40                 8                 Candy Perez
6-41                 9                 Dr. San Juanita Garza
6-42                 10                Jesse Tanner
6-43                 11                Frumencio Reyes
6-44           (b)  Of the initial directors, the terms of directors
6-45     appointed for positions 1 through 5 expire on June 1, 2003, and the
6-46     terms of directors appointed for positions 6 through 11 expire on
6-47     June 1, 2005.
6-48           (c)  Section 376.460(a) does not apply to this section.
6-49           (d)  This section expires September 1, 2006.
6-50           SECTION 2.  The legislature finds that:
6-51                 (1)  proper and legal notice of the intention to
6-52     introduce this Act, setting forth the general substance of this
6-53     Act, has been published as provided by law, and the notice and a
6-54     copy of this Act have been furnished to all persons, agencies,
6-55     officials, or entities to which they are required to be furnished
6-56     by the constitution and laws of this state, including the governor,
6-57     who has submitted the notice and Act to the Texas Natural Resource
6-58     Conservation Commission;
6-59                 (2)  the Texas Natural Resource Conservation Commission
6-60     has filed its recommendations relating to this Act with the
6-61     governor, lieutenant governor, and speaker of the house of
6-62     representatives within the required time;
6-63                 (3)  the general law relating to consent by political
6-64     subdivisions to the creation of districts with conservation,
6-65     reclamation, and road powers and the inclusion of land in those
6-66     districts has been complied with; and
6-67                 (4)  all requirements of the constitution and laws of
6-68     this state and the rules and procedures of the legislature with
6-69     respect to the notice, introduction, and passage of this Act have
 7-1     been fulfilled and accomplished.
 7-2           SECTION 3.  This Act takes effect immediately if it receives
 7-3     a vote of two-thirds of all the members elected to each house, as
 7-4     provided by Section 39, Article III, Texas Constitution.  If this
 7-5     Act does not receive the vote necessary for immediate effect, this
 7-6     Act takes effect September 1, 2001.
 7-7                                  * * * * *