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 * * * * *