By Gallegos S.B. No. 470 77R2271 MXM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation of the Aldine Community Improvement 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. ALDINE COMMUNITY IMPROVEMENT DISTRICT 1-8 Sec. 376.451. CREATION OF DISTRICT. (a) The Aldine 1-9 Community Improvement 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 Aldine Community area of Harris County. 1-17 (b) The creation of the district and this legislation are 1-18 not to be interpreted to relieve the county from providing the 1-19 level of services, as of the effective date of this subchapter, to 1-20 the area in the district or to release the county from the 1-21 obligations the entity has to provide services to that area. The 1-22 district is created to supplement and not supplant the county 1-23 services provided in the area in the district. 1-24 (c) The creation of the district is essential to accomplish 2-1 the purposes of Section 52, Article III, Section 59, Article XVI, 2-2 and Section 52-a, Article III, Texas Constitution, and other public 2-3 purposes stated in this subchapter. 2-4 Sec. 376.453. DEFINITIONS. In this subchapter: 2-5 (1) "Board" means the board of directors of the 2-6 district. 2-7 (2) "County" means Harris County, Texas. 2-8 (3) "District" means the Aldine Community Improvement 2-9 District. 2-10 (4) "Municipality" means the City of Houston, Texas. 2-11 Sec. 376.454. BOUNDARIES. The district includes all the 2-12 territory contained in the following described area: 2-13 Being 14.79 square miles, more or less, 2-14 Beginning at the northeast corner of Aldine Mail Road and the Hardy 2-15 Toll Road 2-16 Thence north along the east right-of-way line of Hardy Toll Road a 2-17 distance of approximately two (2) miles to the north right-of-way 2-18 line of State Highway 525 2-19 Thence along the north right-of-way line of State Highway 525 2-20 approximately 2.75 miles to the west right-of-way line of John F. 2-21 Kennedy Boulevard 2-22 Thence south along the west right-of-way line of John F. Kennedy 2-23 Boulevard a distance of approximately one (1) mile to the City of 2-24 Houston City limits 2-25 Thence east a distance of approximately one-quarter mile (1/4) mile 2-26 to the east right-of-way line of Heathrow Forest Parkway 2-27 Thence north along the east right-of-way line of Heathrow Forest 3-1 Parkway a distance of approximately one-quarter mile (1/4) mile to 3-2 the City of Houston City limits 3-3 Thence east along the south side of the City of Houston City limits 3-4 a distance of approximately one-half (1/2) mile 3-5 Thence south a distance of approximately one-quarter mile (1/4) 3-6 mile 3-7 Thence east a distance of approximately one-eighth (1/8) mile to 3-8 the east right-of-way line of Sequoia Bend Boulevard 3-9 Thence north along the east right-of-way line of Sequoia Bend 3-10 Boulevard a distance of approximately one-half (1/2) mile to the 3-11 north right-of-way line of State Highway 525 3-12 Thence east along the north right-of-way line of State Highway 525 3-13 a distance of approximately three-quarters (3/4) of one mile to the 3-14 east right-of-way line of Lee Road 3-15 Thence south along the east right-of-way line of Lee Road becoming 3-16 Homestead Road a distance of approximately two and one-half miles 3-17 to the north right-of-way line of Mount Houston Road 3-18 Thence west along the north right-of-way line of Mount Houston Road 3-19 a distance of approximately one-quarter mile to the west line of 3-20 the Southern Pacific Railroad property 3-21 Thence southwest along the Southern Pacific Railroad property a 3-22 distance of approximately one and three-quarters mile to the north 3-23 right-of-way line of Langley Road 3-24 Thence west along the north right-of-way line of Langley Road a 3-25 distance of approximately one mile to the east right-of-way line of 3-26 U.S. Highway 59 3-27 Thence northeast along the east right-of-way line of U.S. Highway 4-1 59 a distance of approximately one-quarter mile to the north 4-2 right-of-way line of Little York Road 4-3 Thence west along the north right-of-way line of Little York Road a 4-4 distance of approximately one-quarter mile to the east right-of-way 4-5 line of Bentley Road 4-6 Thence north along the east right-of-way line of Bentley Road a 4-7 distance of approximately one-quarter mile to the north 4-8 right-of-way line of Sagebrush Road 4-9 Thence west along the north right-of-way line of Sagebrush Road a 4-10 distance of approximately one-third (1/3) mile to the west line of 4-11 Halls Bayou 4-12 Thence south along the west line of Halls Bayou a distance of 4-13 approximately one-quarter mile to the north right-of-way line of 4-14 Little York Road 4-15 Thence west along the north right-of-way line of Little York Road a 4-16 distance of approximately one-half mile to the City of Houston City 4-17 limits line adjacent to and east of Aldine Westfield Road 4-18 Thence north along the City of Houston City limits line adjacent to 4-19 and east of Aldine Westfield Road a distance of approximately 4-20 one-eighth mile along the east line of the City of Houston City 4-21 limits line 4-22 Thence west along the north line of the City of Houston City limits 4-23 line a distance of approximately three-quarter mile to the east 4-24 right-of-way line of Hardy Toll Road 4-25 Thence north along the east right-of-way line of Hardy Toll Road a 4-26 distance of approximately two miles to the north right-of-way line 4-27 of Aldine Mail Road and the Point of Beginning 5-1 Save and Except the Following Parcels: 5-2 Parcel Number One: City of Houston Keith-Weiss Park 5-3 Parcel Number Two: That portion of City of Houston Melrose Park 5-4 east of the right-of-way line of Hardy Toll 5-5 Road 5-6 SAVE AND EXCEPT all tracts or parcels of land, rights-of-way, 5-7 facilities, and improvements owned by an electric utility as 5-8 defined by Section 31.002, Utilities Code. 5-9 Sec. 376.455. FINDINGS RELATING TO BOUNDARIES. The 5-10 boundaries and field notes of the district form a closure. If a 5-11 mistake is made in the field notes or in copying the field notes in 5-12 the legislative process, the mistake does not in any way affect the 5-13 district's: 5-14 (1) organization, existence, or validity; 5-15 (2) right to issue any type of bond for the purposes 5-16 for which the district is created or to pay the principal of and 5-17 interest on a bond; 5-18 (3) right to impose or collect an assessment or tax; 5-19 or 5-20 (4) legality or operation. 5-21 Sec. 376.456. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) 5-22 The district is created to serve a public use and benefit. All the 5-23 land and other property included in the district will be benefited 5-24 by the improvements and services to be provided by the district 5-25 under powers conferred by Section 52, Article III, Section 59, 5-26 Article XVI, and Section 52-a, Article III, Texas Constitution, and 5-27 other powers granted under this subchapter. 6-1 (b) The creation of the district is in the public interest 6-2 and is essential to: 6-3 (1) further the public purposes of the development and 6-4 diversification of the economy of the state; and 6-5 (2) eliminate unemployment and underemployment and 6-6 develop or expand transportation and commerce. 6-7 (c) The district will: 6-8 (1) promote the health, safety, and general welfare of 6-9 residents, employers, potential employees, employees, visitors, 6-10 consumers in the district, and the general public; 6-11 (2) provide needed funding for the Aldine Community 6-12 area to preserve, maintain, and enhance the economic health and 6-13 vitality of the area as a community and business center; and 6-14 (3) further promote the health, safety, welfare, and 6-15 enjoyment of the public by providing pedestrian ways and by 6-16 landscaping and developing certain areas in the district, which are 6-17 necessary for the restoration, preservation, and enhancement of 6-18 scenic beauty. 6-19 (d) Pedestrian ways along or across a street, whether at 6-20 grade or above or below the surface, and street lighting, street 6-21 landscaping, and street art objects are parts of and necessary 6-22 components of a street and are considered to be a street or road 6-23 improvement. 6-24 (e) The district will not act as the agent or 6-25 instrumentality of any private interest even though many private 6-26 interests will be benefited by the district, as will the general 6-27 public. 7-1 Sec. 376.457. APPLICATION OF OTHER LAW. Except as otherwise 7-2 provided by this subchapter, Chapter 375 applies to the district. 7-3 Sec. 376.458. CONSTRUCTION OF SUBCHAPTER. This subchapter 7-4 shall be liberally construed in conformity with the findings and 7-5 purposes stated in this subchapter. 7-6 Sec. 376.459. BOARD OF DIRECTORS IN GENERAL. (a) The 7-7 district is governed by a board of nine directors who serve 7-8 staggered terms of four years with four or five members' terms 7-9 expiring June 1 of each odd-numbered year. 7-10 (b) One director must be a resident of the district. 7-11 (c) The board by resolution may change the number of 7-12 directors on the board if the board finds that the change is in the 7-13 best interest of the district, subject to Section 375.061. 7-14 Sec. 376.460. APPOINTMENT AND REMOVAL OF DIRECTORS. Board 7-15 members are appointed and may be removed as provided by Sections 7-16 375.064 and 375.065, except that for purposes of this subchapter 7-17 references in those sections to the governing body of the 7-18 municipality mean the commissioners court of the county. 7-19 Sec. 376.461. QUORUM. (a) Section 375.071 does not apply to 7-20 the district. 7-21 (b) One-half of the board constitutes a quorum. 7-22 (c) Except as provided in Section 376.462, a concurrence of 7-23 a majority of a quorum is required for any official district 7-24 action. 7-25 Sec. 376.462. VOTE REQUIRED FOR AUTHORIZATION OF 7-26 ASSESSMENTS, BONDS, IMPACT FEES, AND TAXES. (a) A majority vote of 7-27 the directors serving is required to authorize the imposition of an 8-1 assessment, impact fee, or tax. 8-2 (b) The written consent of at least two-thirds of the full 8-3 membership of the board is required to authorize the issuance of 8-4 bonds. 8-5 Sec. 376.463. EXERCISE OF POWERS OF DEVELOPMENT CORPORATION. 8-6 The district may exercise the powers of a corporation created under 8-7 Section 4B, Development Corporation Act of 1979 (Article 5190.6, 8-8 Vernon's Texas Civil Statutes). 8-9 Sec. 376.464. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To 8-10 protect the public interest, the district may contract with the 8-11 municipality or the county for the municipality or county to 8-12 provide law enforcement services in the district for a fee. 8-13 Sec. 376.465. CONTRACT WITH POLITICAL SUBDIVISION. The 8-14 municipality, county, or another political subdivision of the 8-15 state, without further authorization, may contract with the 8-16 district to implement a project of the district or assist the 8-17 district in providing the services authorized under this 8-18 subchapter. A contract under this subsection may: 8-19 (1) be for a period on which the parties agree; 8-20 (2) include terms on which the parties agree; 8-21 (3) be payable from taxes or any other sources of 8-22 revenue that may be available for such purpose; or 8-23 (4) provide that taxes or other revenue collected at a 8-24 district project or from a person using or purchasing a commodity 8-25 or service at a district project may be paid or rebated to the 8-26 district under the terms of the contract. 8-27 Sec. 376.466. NONPROFIT CORPORATION. (a) The board by 9-1 resolution may authorize the creation of a nonprofit corporation to 9-2 assist and act on behalf of the district in implementing a project 9-3 or providing a service authorized by this subchapter. 9-4 (b) The board shall appoint the board of directors of a 9-5 nonprofit corporation created under this section. The board of 9-6 directors of the nonprofit corporation shall serve in the same 9-7 manner, term, and conditions as a board of directors of a local 9-8 government corporation created under Chapter 431, Transportation 9-9 Code. 9-10 (c) A nonprofit corporation created under this section has 9-11 the powers of and is considered for purposes of this subchapter to 9-12 be a local government corporation created under Chapter 431, 9-13 Transportation Code. 9-14 (d) A nonprofit corporation created under this section may 9-15 implement any project and provide any service this subchapter 9-16 authorizes. 9-17 Sec. 376.467. DISBURSEMENTS OR TRANSFERS OF FUNDS. The board 9-18 by resolution shall establish the number of directors' signatures 9-19 and the procedure required for a disbursement or transfer of the 9-20 district's money. 9-21 Sec. 376.468. MUNICIPAL APPROVAL. (a) Except as provided by 9-22 Subsection (b), the district must obtain approval from the 9-23 municipality's governing body of: 9-24 (1) the issuance of bonds for an improvement project; 9-25 and 9-26 (2) the plans and specifications of an improvement 9-27 project financed by the bonds. 10-1 (b) If the district obtains approval from the municipality's 10-2 governing body of a capital improvements budget for a period not to 10-3 exceed five years, the district may finance the capital 10-4 improvements and issue bonds specified in the budget without 10-5 further approval from the municipality. 10-6 (c) The district must obtain approval from the 10-7 municipality's governing body of the plans and specifications of 10-8 any district improvement project related to the use of land owned 10-9 by the county, an easement granted by the county, or a right-of-way 10-10 of a street, road, or highway. 10-11 (d) Except as provided by Section 375.263, a municipality is 10-12 not obligated to pay any bonds, notes, or other obligations of the 10-13 district. 10-14 Sec. 376.469. ASSESSMENTS. (a) The board may impose and 10-15 collect an assessment for any purpose authorized by this 10-16 subchapter. 10-17 (b) Assessments, reassessments, or assessments resulting 10-18 from an addition to or correction of the assessment roll by the 10-19 district, penalties and interest on an assessment or reassessment, 10-20 expenses of collection, and reasonable attorney's fees incurred by 10-21 the district: 10-22 (1) are a first and prior lien against the property 10-23 assessed; 10-24 (2) are superior to any other lien or claim other than 10-25 a lien or claim for county, school district, or municipal ad 10-26 valorem taxes; and 10-27 (3) are the personal liability of and charge against 11-1 the owners of the property even if the owners are not named in the 11-2 assessment proceedings. 11-3 (c) The lien is effective from the date of the resolution of 11-4 the board levying the assessment until the assessment is paid. The 11-5 board may enforce the lien in the same manner that the board may 11-6 enforce an ad valorem tax lien against real property. 11-7 Sec. 376.470. SALES AND USE TAX. (a) The district may 11-8 impose a sales and use tax if authorized by a majority of the 11-9 qualified voters of the district voting at an election called for 11-10 that purpose. Revenue from the tax may be used for any purpose for 11-11 which ad valorem tax revenue of the district may be used. 11-12 (b) The district may not adopt a tax under this subchapter 11-13 if as a result of the adoption of the tax the combined rate of all 11-14 sales and use taxes imposed by the county and other political 11-15 subdivisions of this state having territory in the county would 11-16 exceed two percent at any location in the district. 11-17 (c) If the voters of the county approve the adoption of the 11-18 tax at an election held on the same election date on which another 11-19 political subdivision adopts a sales and use tax or approves the 11-20 increase in the rate of its sales and use tax and as a result the 11-21 combined rate of all sales and use taxes imposed by the district 11-22 and other political subdivisions of this state having territory in 11-23 the district would exceed two percent at any location in the 11-24 county, the election to adopt a sales and use tax under this 11-25 subchapter has no effect. 11-26 Sec. 376.471. MAINTENANCE TAX. (a) If authorized at an 11-27 election held in accordance with Section 376.472, the district may 12-1 impose and collect an annual ad valorem tax on taxable property in 12-2 the district for: 12-3 (1) the maintenance and operation of the district; 12-4 (2) improvements constructed or acquired by the 12-5 district; or 12-6 (3) the provision of services. 12-7 (b) The board shall determine the tax rate. 12-8 Sec. 376.472. ELECTIONS. (a) In addition to the elections 12-9 the district must hold under Subchapter L, Chapter 375, the 12-10 district shall hold an election in the manner provided by that 12-11 subchapter to obtain voter approval before the district imposes a 12-12 maintenance tax or issues bonds payable from ad valorem taxes or 12-13 assessments. 12-14 (b) The board may include more than one purpose in a single 12-15 proposition at an election. 12-16 Sec. 376.473. PROPERTY EXEMPTED FROM TAX, FEE, OR 12-17 ASSESSMENT. (a) The district may not impose an impact fee or 12-18 assessment under Chapter 375 on a residential property, multiunit 12-19 residential property, or condominium. 12-20 (b) The district may not impose an assessment or impact fee 12-21 on an electric utility's property. In this subsection, "electric 12-22 utility" has the meaning assigned by Section 31.002, Utilities 12-23 Code. 12-24 Sec. 376.474. NO EMINENT DOMAIN POWER. The district may not 12-25 exercise the power of eminent domain. 12-26 Sec. 376.475. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH 12-27 OUTSTANDING DEBTS. (a) The board may vote to dissolve a district 13-1 that has debt. If the vote is in favor of dissolution, the 13-2 district shall remain in existence solely for the limited purpose 13-3 of discharging its debts. The dissolution is effective when all 13-4 debts have been discharged. 13-5 (b) Section 375.264 does not apply to the district. 13-6 SECTION 2. The legislature finds that: 13-7 (1) proper and legal notice of the intention to 13-8 introduce this Act, setting forth the general substance of this 13-9 Act, has been published as provided by law, and the notice and a 13-10 copy of this Act have been furnished to all persons, agencies, 13-11 officials, or entities to which they are required to be furnished 13-12 by the constitution and laws of this state, including the 13-13 governor, who has submitted the notice and Act to the Texas Natural 13-14 Resource Conservation Commission; 13-15 (2) the Texas Natural Resource Conservation Commission 13-16 has filed its recommendations relating to this Act with the 13-17 governor, lieutenant governor, and speaker of the house of 13-18 representatives within the required time; 13-19 (3) the general law relating to consent by political 13-20 subdivisions to the creation of districts with conservation, 13-21 reclamation, and road powers and the inclusion of land in those 13-22 districts has been complied with; and 13-23 (4) all requirements of the constitution and laws of 13-24 this state and the rules and procedures of the legislature with 13-25 respect to the notice, introduction, and passage of this Act have 13-26 been fulfilled and accomplished. 13-27 SECTION 3. (a) Section 375.062, Local Government Code, and 14-1 Section 376.460, Local Government Code, as added by this Act, do 14-2 not apply to the initial board of directors of the Aldine Community 14-3 Improvement District. 14-4 (b) The initial board of directors consists of the following 14-5 persons: 14-6 Pos. No. Name of Director 14-7 1 Clyde Baily 14-8 2 Sylvia Bolling 14-9 3 Reyes Garcia 14-10 4 Leland Jauer 14-11 5 V. E. (Vic) Mauldin 14-12 6 W. Steve Mead 14-13 7 Art Murillo 14-14 8 Ray Shotwell 14-15 9 Maria Espinoza 14-16 (c) Of the initial directors, the directors appointed for 14-17 positions 1 through 4 serve until June 1, 2003, and the directors 14-18 appointed for positions 5 through 9 serve until June 1, 2005. 14-19 SECTION 4. This Act takes effect immediately if it receives 14-20 a vote of two-thirds of all the members elected to each house, as 14-21 provided by Section 39, Article III, Texas Constitution. If this 14-22 Act does not receive the vote necessary for immediate effect, this 14-23 Act takes effect September 1, 2001.