S.B. No. 1936
AN ACT
relating to the creation of the Buffalo Bayou Management District;
providing the authority to impose taxes and issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. CREATION OF DISTRICT. (a) The Buffalo Bayou
Management District is a special district created under Section 59,
Article XVI, Texas Constitution.
(b) The board by resolution may change the name of the
district.
SECTION 2. DEFINITIONS. In this Act:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Buffalo Bayou Management
District.
SECTION 3. DECLARATION OF INTENT. (a) The creation of the
district is essential to accomplish the purposes of Sections 52 and
52-a, Article III, and Section 59, Article XVI, Texas Constitution,
and other public purposes stated in this Act.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the area of the district.
(c) This Act and the creation of the district may not be
interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of the effective date of
this Act, to the area in the district. The district is created to
supplement and not to supplant the county or city services provided
in the area in the district.
(d) By creating the district and in authorizing the City of
Houston, Harris County, and other political subdivisions to
contract with the district, the legislature has established a
program to accomplish the public purposes set out in Section 52-a,
Article III, Texas Constitution.
SECTION 4. BOUNDARIES. The district includes all the
territory contained in the following described area:
POINT OF BEGINNING at the intersection of the west boundary line of
the Houston Downtown Management District and the north boundary of
Memorial Drive right-of-way, then west along the north boundary of
Memorial Drive right-of-way to the north boundary of Memorial
Drive's Heights North exit ramp, then northwest along the north
boundary of Memorial Drive's Heights North exit ramp to the east
boundary of Heights boulevard right-of-way, then west across
Heights Boulevard from the east boundary of Heights Boulevard
right-of-way to the west boundary of the Heights Boulevard
right-of-way, then south along the west boundary of Heights
boulevard right–of-way to the north boundary of Memorial Drive's
Memorial West entrance ramp, then southwest along the north
boundary of Memorial Drive's Memorial West entrance ramp to the
northern boundary line of Memorial Drive right-of-way, then west
along the northern boundary line of Memorial Drive right-of-way to
the west boundary line of Shepherd Drive right-of-way, then south
along the west boundary line of Shepherd Drive right-of-way to the
centerline of West Dallas, then east along the centerline of West
Dallas to the intersection of the west boundary of Montrose
Boulevard right-of-way and the centerline of West Dallas, then
south along the west boundary line of Montrose Boulevard
right-of-way to the south boundary line of U.S. Highway 59 and the
west boundary line of Montrose Boulevard right-of-way, then in an
easterly direction from said intersection along the south boundary
line of U.S. Highway 59 to the intersection of the west boundary
line of the Main Street right-of-way and then proceeding from said
intersection in a northwesterly direction along the boundary line
of the west Main Street right-of-way paralleling the boundary line
of the Greater Southeast Management District to the intersection of
the boundary line of the south Portland Street right-of-way and the
boundary line of the west Main Street right-of-way, being the
southern boundary line of the Midtown Management District, then
proceeding from said intersection in generally a northeasterly
direction the boundary line parallels the Midtown Management
District boundary line to the intersection of the west boundary
line of the US Hwy 45 right-of-way and the north boundary line of
the Cleveland Street right-of-way, being the western boundary line
of the Houston Downtown Management District, then north from said
intersection along the western boundary line of the Houston
Downtown Management District to the POINT OF BEGINNING.
SECTION 5. FINDINGS RELATING TO BOUNDARIES. The boundaries
and field notes of the district form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not in any way affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for a purpose for
which the district is created or to pay the principal of and
interest on a bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
SECTION 6. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) The district is created to serve a public use and benefit.
(b) All land and other property included in the district
will benefit from the improvements and services to be provided by
the district under powers conferred by Sections 52 and 52-a,
Article III, and Section 59, Article XVI, Texas Constitution, and
other powers granted under this Act.
(c) The creation of the district is in the public interest
and is essential to:
(1) further the public purposes of development and
diversification of the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding to preserve, maintain, and
enhance the economic health and vitality of the district as a
community and business center; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
SECTION 7. APPLICATION OF OTHER LAW. (a) Except as
otherwise provided by this Act, Chapter 375, Local Government Code,
applies to the district.
(b) Chapter 311, Government Code (Code Construction Act),
applies to this Act.
SECTION 8. CONSTRUCTION OF ACT. This Act shall be liberally
construed in conformity with the findings and purposes stated in
this Act.
SECTION 9. BOARD OF DIRECTORS IN GENERAL. (a) The
district is governed by a board of 31 voting directors appointed
under Section 10 of this Act and nonvoting directors as provided by
Section 11 of this Act.
(b) Voting directors serve staggered terms of four years,
with 15 directors' terms expiring June 1 of an odd-numbered year and
16 directors' terms expiring June 1 of the following odd-numbered
year.
(c) The board may decrease the number of directors on the
board by resolution if the board finds that it is in the best
interest of the district. The board may not consist of fewer than
five directors.
SECTION 10. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the City of Houston shall appoint
voting directors. A person is appointed if a majority of the
members of the governing body, including the mayor, vote to appoint
that person.
SECTION 11. NONVOTING DIRECTORS. (a) The following
persons shall serve as nonvoting directors:
(1) the directors of the following departments of the
City of Houston or a person designated by that director:
(A) parks and recreation;
(B) planning and development;
(C) public works; and
(D) civic center; and
(2) the City of Houston's chief of police.
(b) If a department described by Subsection (a) of this
section is consolidated, renamed, or changed, the board may appoint
a director of the consolidated, renamed, or changed department as a
nonvoting director. If a department described by Subsection (a) of
this section is abolished, the board may appoint a representative
of another department that performs duties comparable to those
performed by the abolished department.
(c) Nonvoting directors are not counted for the purposes of
establishing a quorum of the board.
SECTION 12. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
(a) Except as provided by this section:
(1) a voting director may participate in all board
votes and decisions; and
(2) Chapter 171, Local Government Code, governs
conflicts of interest for voting directors.
(b) Section 171.004, Local Government Code, does not apply
to the district. A director who has a substantial interest in a
business or charitable entity that will receive a pecuniary benefit
from a board action shall file a one-time affidavit declaring the
interest. An additional affidavit is not required if the
director's interest changes. After the affidavit is filed with the
board secretary, the director may participate in a discussion or
vote on that action if:
(1) a majority of the directors have a similar
interest in the same entity; or
(2) all other similar business or charitable entities
in the district will receive a similar pecuniary benefit.
(c) A director who is also an officer or employee of a public
entity may not participate in the discussion of or vote on a matter
regarding a contract with that same public entity.
(d) For purposes of this section, a director has a
substantial interest in a charitable entity in the same manner that
a person would have a substantial interest in a business entity
under Section 171.002, Local Government Code.
SECTION 13. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to:
(1) a corporation created under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes), including the power to own, operate, acquire,
construct, lease, improve, and maintain projects described by that
section; and
(2) a housing finance corporation created under
Chapter 394, Local Government Code, to provide housing or
residential development projects in the district.
SECTION 14. AGREEMENTS; GRANTS. (a) The district may make
an agreement with or accept a gift, grant, or loan from any person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
SECTION 15. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with Harris County or
the City of Houston to provide law enforcement services in the
district for a fee.
SECTION 16. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act on behalf of the district in implementing a project
or providing a service authorized by this Act.
(b) The board shall appoint the board of directors of a
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Chapter 431,
Transportation Code.
(c) The nonprofit corporation:
(1) has the powers of and is considered for purposes of
this Act to be a local government corporation created under Chapter
431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this Act.
SECTION 17. REQUIREMENTS FOR FINANCING SERVICES AND
IMPROVEMENTS. The board may not finance a service or improvement
project with assessments under this Act unless a written petition
requesting that improvement or service has been filed with the
board. The petition must be signed by the owners of a majority of
the assessed value of real property in the district subject to
assessment as determined by the most recent certified tax appraisal
roll for Harris County.
SECTION 18. ELECTIONS. (a) The district shall hold an
election in the manner provided by Subchapter L, Chapter 375, Local
Government Code, to obtain voter approval before the district
imposes a maintenance tax or issues bonds payable from ad valorem
taxes.
(b) The board may not submit multiple purposes in a single
proposition at an election.
(c) Section 375.243, Local Government Code, does not apply
to the district.
SECTION 19. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 18 of this Act, the
district may impose an annual ad valorem tax on taxable property in
the district for the:
(1) maintenance and operation of the district and the
improvements constructed or acquired by the district; or
(2) provision of a service.
(b) The board shall determine the tax rate.
SECTION 20. ASSESSMENTS. (a) The board by resolution may
impose and collect an assessment for any purpose authorized by this
Act.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the resolution of
the board imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make corrections to or deletions from the
assessment roll without providing notice and holding a hearing in
the manner required for additional assessments, if the corrections
or deletions do not increase the amount of assessment of any parcel
of land.
SECTION 21. UTILITIES. The district may not impose an
impact fee or assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of an electric utility
or a power generation company as defined by Section 31.002,
Utilities Code, or a gas utility as defined by Section 101.003 or
121.001, Utilities Code, or a telecommunications provider as
defined by Section 51.002, Utilities Code, or a cable operator as
defined by 47 U.S.C. Section 522 and its subsequent amendments.
SECTION 22. BONDS. (a) The district may issue bonds or
other obligations payable in whole or in part from ad valorem taxes,
assessments, impact fees, revenue, grants, or other money of the
district, or any combination of those sources of money, to pay for
any authorized purpose of the district.
(b) In exercising the district's borrowing power, the
district may issue a bond or other obligation in the form of a bond,
note, certificate of participation or other instrument evidencing a
proportionate interest in payments to be made by the district, or
other type of obligation.
SECTION 23. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the City of Houston is not required to pay a bond,
note, or other obligation of the district.
SECTION 24. DISBURSEMENTS OR TRANSFERS OF MONEY. The board
by resolution shall establish the number of directors' signatures
and the procedure required for a disbursement or transfer of the
district's money.
SECTION 25. COMPETITIVE BIDDING LIMIT. Section 375.221,
Local Government Code, applies to the district only for a contract
that has a value of more than $15,000.
SECTION 26. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH
OUTSTANDING DEBT. (a) The board may vote to dissolve a district
that has debt. If the vote is in favor of dissolution, the district
shall remain in existence solely for the limited purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
(b) Section 375.264, Local Government Code, does not apply
to the district.
SECTION 27. TAX AND ASSESSMENT ABATEMENTS. The district
may grant in the manner authorized by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
SECTION 28. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3),
501(c)(4), or 501(c)(6), Internal Revenue Code of 1986 (26 U.S.C.
Section 501(c)), as amended; and
(2) performs services or provides activities
consistent with the furtherance of the purposes of the district.
SECTION 29. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created by the
City of Houston under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
City of Houston under Chapter 312, Tax Code; or
(3) an enterprise zone created by the City of Houston
under Chapter 2303, Government Code.
SECTION 30. ECONOMIC DEVELOPMENT PROGRAMS. The district
may establish and provide for the administration of one or more
programs, including programs for making loans and grants of public
money and providing personnel and services of the district, to
promote state or local economic development and to stimulate
business and commercial activity in the district. The district has
all of the powers and authority of a municipality under Chapter 380,
Local Government Code.
SECTION 31. INITIAL DIRECTORS. (a) The initial board
consists of the following persons:Pos. No. Name of Director
1 Kay Crooker
2 Mike Garver
3 Jackie Martin
4 Mark Lee
5 John Chase, Jr.
6 Adrian Collins
7 Max Schuette
8 June Deadrick
9 Don Cutrer
10 Raju Adwaney
11 Mike Mark
12 Sia Ravari
13 Cherry Walker
14 John Hansen
15 John Dao
16 William Taylor
17 Karen Domino
18 Kevin Hoffman
19 Jeff Andrews
20 William Paul Thomas
21 Theola Petteway
22 Keith Wade
23 Chryisse Wilson
24 Sadie Rucker
25 Julie McClure
26 Angie Gomez
27 Tom Fricke
28 James Robert McDermaid
29 Kathy Hubbard
30 Marsha Johnson
31 Craig Jackson
(b) Of the initial directors, the terms of directors
appointed for positions 1 through 15 expire June 1, 2005, and the
terms of directors appointed for positions 16 through 31 expire
June 1, 2007.
(c) Section 10 of this Act does not apply to this section.
(d) This section expires September 1, 2007.
SECTION 32. LEGISLATIVE FINDINGS. The legislature finds
that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the Texas Commission on
Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 33. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1936 passed the Senate on
May 19, 2003, by the following vote: Yeas 31, Nays 0;
May 30, 2003, Senate refused to concur in House amendment and
requested appointment of Conference Committee; May 30, 2003, House
granted request of the Senate; June 1, 2003, Senate adopted
Conference Committee Report by the following vote: Yeas 31,
Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1936 passed the House, with
amendment, on May 28, 2003, by the following vote: Yeas 144,
Nays 0, two present not voting; May 30, 2003, House granted request
of the Senate for appointment of Conference Committee;
June 1, 2003, House adopted Conference Committee Report by the
following vote: Yeas 145, Nays 0, one present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor