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By:  Vo                                                           H.B. No. 3529


A BILL TO BE ENTITLED
AN ACT
relating to the creation of the International Management District; providing authority to levy an assessment, impose taxes and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. INTERNATIONAL MANAGEMENT DISTRICT. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3836 to read as follows:
CHAPTER 3836. INTERNATIONAL MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3836.001. DEFINITIONS. In this chapter: (1) "Board" means the board of directors of the district. (2) "District" means the International Management District. Sec. 3836.002. INTERNATIONAL MANAGEMENT DISTRICT. (a) The International 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. Sec. 3836.003. PURPOSE; 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 chapter 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 the Act enacting this chapter, 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. Sec. 3836.004. 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 chapter. (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; and (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, potential employees, employees, visitors, and consumers in the district and of the public; (2) provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory 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, parking, 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. Sec. 3836.005. DISTRICT TERRITORY. (a) The district is composed of the territory described by Section 2 of the Act enacting this chapter, as that territory may have been modified under: (1) Subchapter J, Chapter 49, Water Code; or (2) other law. (b) The boundaries and field notes of the district contained in Section 2 of the Act enacting this chapter 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 bonds for a purpose for which the district is created or to pay the principal of and interest on the bonds; (3) right to impose or collect an assessment or tax; or (4) legality or operation. Sec. 3836.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible, notwithstanding other statutory criteria, to be included in: (1) a tax increment reinvestment zone created by a municipality under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone created by a municipality under Chapter 312, Tax Code; or (3) an enterprise zone created by a municipality under Chapter 2303, Government Code. Sec. 3836.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 3836.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.
[Sections 3836.009-3836.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3836.051. BOARD OF DIRECTORS; TERMS. (a) The district is governed by a board of nine voting directors who serve staggered terms of four years, with four or five directors' terms expiring June 1 of each odd-numbered year. (b) The board by resolution may change the number of voting directors on the board, but only if the board determines that the change is in the best interest of the district. The board may not consist of fewer than five or more than 15 voting directors. Sec. 3836.052. APPOINTMENT OF DIRECTORS. The mayor and members of the governing body of the City of Houston shall appoint voting directors from persons recommended by the board. A person is appointed if a majority of the council and the mayor vote to appoint that person. Sec. 3836.053. NONVOTING DIRECTORS. (a) The following persons 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) 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) is abolished, the board may appoint a representative of another department that performs duties comparable to those performed by the abolished department. Sec. 3836.054. QUORUM. For the purposes of determining the requirements for a quorum of the board, the following are not counted: (1) a board position vacant for any reason, including death, resignation, or disqualification; (2) a director who is abstaining from participation in a vote because of a conflict of interest; or (3) a nonvoting director. Sec. 3836.055. INITIAL VOTING DIRECTORS. (a) The initial board consists of the following directors: Pos. No. Name of Director 1 Ha Duong 2 Haroon R. Shaikh 3 Shiraz G. Ali 4 Wea H. Lee 5 D.W. Tan 6 Ashok Dhingra 7 Nancy Phool Trikha 8 Fred Bhandara 9 (Vacant) (b) Of the initial voting directors, the terms of directors appointed for positions 1 through 5 expire June 1, 2007, and the terms of directors appointed for positions 6 through 9 expire June 1, 2009. (c) Section ____.052 does not apply to this section. (d) This section expires September 1, 2010.
[Sections ___.056-___.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3836.101. ADDITIONAL POWERS OF DISTRICT. The district may exercise the powers given to a corporation 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, or maintain projects described by that section. Sec. 3836.102. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in implementing a project or providing a service authorized by this chapter. (b) The nonprofit corporation: (1) has each power of and is considered for purposes of this chapter 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 chapter. (c) The board shall appoint the board of directors of the 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; provided that they need not live in the district. Sec. 3836.103. 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. Sec. 3836.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To protect the public interest, the district may contract with a qualified party, including Harris County or the City of Houston to provide law enforcement services in the district for a fee. Sec. 3836.105. APPROVAL BY CITY OF HOUSTON. (a) Except as provided by Subsection (b), the district must obtain the approval of the City of Houston, by either official action of the governing body of the city with respect to item (1) or through issuance of a permit with respect to items (2) and (3), for: (1) the issuance of bonds for each improvement project; (2) the plans and specifications of the improvement project financed by bonds; and (3) the plans and specifications of any district improvement project related to the use of land owned by the City of Houston, an easement granted by the City of Houston, or a right-of-way of a street, road, or highway. (b) The approval obtained for the issuance of bonds under Subsection (a) must be a resolution by the City of Houston. The approval obtained for plans and specifications must be a permit issued by the City of Houston. (c) If the district obtains approval from the governing body of the City of Houston for a capital improvements budget for a period not to exceed five years, the district may finance the capital improvements and issue bonds specified in the budget without further approval from the City of Houston. Sec. 3836.106. 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), (4), or (6), Internal Revenue Code of 1986; and (2) performs a service or provides an activity consistent with the furtherance of a district purpose. Sec. 3836.107. ECONOMIC DEVELOPMENT PROGRAMS. The district may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the district, including programs to: (1) make loans and grants of public money; and (2) provide district personnel and services. (b) The district has all of the powers and authority of a municipality under Chapter 380, Local Government Code. Sec. 3836.108. NO EMINENT DOMAIN. The district may not exercise the power of eminent domain.
[Sections 3836.109-3836.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3836.151. DISBURSEMENTS AND 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. Sec. 3836.152. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. (a) The district may acquire, construct, finance, operate and maintain any improvement or service authorized pursuant to this Act or Chapter 375, Local Government Code, using all funds available to the district. The board may not finance a service or improvement project with assessments under this chapter unless a written petition requesting that service or improvement has been filed with the board. (b) A petition filed under Subsection (a) may be dated before or after the creation of the district and must be signed by: (1) 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 ______ County; or (2) at least 50 persons who own real property in the district, if more than 50 persons own real property in the district as determined by the most recent certified tax appraisal roll for Harris County. Sec. 3836.153. METHOD OF NOTICE FOR HEARING. The district may mail the notice required by Section 375.115(c), Local Government Code, by either certified or first class United States mail, as determined by the board to give adequate notice. If first class mail is used, such notice must additionally be published in a newspaper of general circulation in the district at least 20 days before the event of which the district is giving notice. Sec. 3836.154. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment in all or part of the district for any purpose authorized by this chapter. (b) An assessment, 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 board's resolution 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 a correction to or a deletion from the assessment roll that does not increase the amount of assessment of any parcel of land without providing notice and holding a hearing in the manner required for additional assessments. (e) An assessment levied by the board based upon the taxable value of the property to be assessed may not exceed $0.12 per $100 taxable assessed valuation as determined by the Harris County Appraisal District or its successor. Sec. 3836.155. AD VALOREM TAX. (a) If authorized at an election held in accordance with Section ___.159, the district may impose an annual ad valorem tax on taxable property in the district for any purpose, including to: (1) maintain and operate the district; (2) construct or acquire improvements; or (3) provide a service. (b) The board shall determine the tax rate; provided that the board shall not be authorized to levy an ad valorem tax under this section in excess of the maximum rate specified in the proposition authorizing the tax. Sec. 3836.156. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND ASSESSMENTS. (a) The district may not impose an impact fee or assessment on the property, including the equipment, rights of way, facilities, or improvements of: (1) an electric utility or a power generation company as defined by Section 31.002, Utilities Code; (2) a gas utility as defined by Section 101.003 or 121.001, Utilities Code; (3) a telecommunications provider as defined by Section 51.002, Utilities Code; or (4) a person who provides to the public cable television or advanced telecommunications services. (b) If the district, in the exercise of the powers conferred on it by this Act, requires or requests the relocation, rerouting, or removal of electric, gas, water, sewer, communications, or other public utilities, as defined by Sections 31.002, 101.003, 121.001, or 51.002, Utilities Code, the relocation, rerouting, or removal shall be at the sole expense of the district. Sec. 3836.157. BONDS AND OTHER OBLIGATIONS. (a) The district may issue bonds or other obligations, payable wholly or partly 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 power to borrow, 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. Sec. 3836.158. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued: (1) the board shall impose a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year while all or part of the bonds are outstanding; and (2) the district annually shall impose an ad valorem tax on all taxable property in the district in an amount sufficient to: (A) pay the interest on the bonds or other obligations as the interest becomes due; (B) create a sinking fund for the payment of the principal of the bonds or other obligations when due or the redemption price at any earlier required redemption date; and (C) pay the expenses of imposing the taxes. Sec. 3836.159. TAX AND BOND 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 an ad valorem tax or issues bonds payable from ad valorem taxes. (b) Section 375.243, Local Government Code, does not apply to the district. Sec. 3836.160. CITY 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. Sec. 3836.161. COMPETITIVE BIDDING. Section 375.221, Local Government Code, applies to the district only for a contract that has a value greater than $25,000. Sec. 3836.162. 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.
[Sections 3836.163-3836.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3836.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT. (a) The board may dissolve the district regardless of whether the district has debt. Section 375.264, Local Government Code, does not apply to the district. (b) If the district has debt when it is dissolved, the district shall remain in existence solely for the purpose of discharging its debts. The dissolution is effective when all debts have been discharged. SECTION 2. BOUNDARIES. As of the effective date of this Act, the International Management District includes all territory contained in the following described area: Beginning at the intersection of the South Right of Way of Bellaire Boulevard and the East Right of Way of Beltway 8, Thence South along the East Right of Way of Beltway 8 to the South Right of Way of Highway 59, and at that intersection, crossing the Right of Way of Beltway 8 to the North Right of Way of Highway 59 following Southwest to the North Right of Way of West Bellfort, Thence West along the North Right of Way of West Bellfort to the East Right of Way of Landsbury, Thence North along the East Right of Way of Landsbury to the South Right of Way of Stancliff, Thence East along the South Right of Way of Stancliff to the West Right of Way of Wilcrest, Thence North along the West Right of Way of Wilcrest to the South Right of Way of South Street, Thence West along the South Right of Way of South Street to the West Right of Way of Leawood Boulevard, Thence North along the West Right of Way of Leawood Boulevard to the South Right of Way of Bissonnet, Thence West along the South Right of Way of Bissonnet for a distance of 2,085 to the North East Corner of a 2.02 acre parcel, (Utility Eastment) Thence South for a distance of 2,203 feet along the East line of a 2.02 acre parcel, Thence West along a drainage easement for a total distance of 5,960 feet crossing the 2.02 acre parcel following the South line of a 2.02 acre parcel crossing the Right of Way of Grove Glen; then continuing west along the South line of a .82 acre parcel; then continuing west along the South line of a .13 acre parcel; crossing the Right of Way of Kirkwood, then continuing west along the South line of a 1.3 acre parcel; crossing the Right of Way of Keegan Road; then continuing west along the South line of a 1.13 acre parcel; crossing the Right of Way of Cook Road; then continuing west along the South line of a .77 acre parcel to the East Right of Way of Huntington Place, Thence South along the East Right of Way of Huntington Place to the West Right of Way of Dairy Ashford, Thence North along the West Right of Way of Dairy Ashford to the North Right of Way of Beechnut, Thence East along the North Right of Way of Beechnut to the West Right of Way of Wilcrest, Thence North along the West Right of Way of Wilcrest to the South Right of Way of Stroud, Thence West along the South Right of Way of Stroud to the East Right of Way of Baneway, Thence South along the East Right of Way of Baneway to the South Right of Way of Sandstone, Thence West along the South Right of Way of Sandstone to the West Right of Way of Bellglen, Thence North along the West Right of Way of Bellglen to the South Right of Way of Stroud, Thence West along the South Right of Way of Stroud to the East Right of Way of Kirkwood, Thence South along the East Right of Way of Kirkwood for a distance of 134 feet, Thence West crossing the Right of Way of Kirkwood following the South Right of Way of Stroud to the East Right of Way of Jetty, Thence South along the East Right of Way of Jetty for a distance of 134 feet, Thence West crossing the Right of Way of Jetty following the South Right of Way of Sharpview to the East Right of Way of Cook Road, Thence South along the East Right of Way of Cook Road for a distance of 447 feet, Thence West crossing the Right of Way of Cook Road following the South Right of Way of Sandstone to the West Right of Way of Crownwest, Thence North along the West Right of Way of Crownwest to the South Right of Way of Sharpview, Thence West along the South Right of Way of Sharpview as it turns until it reaches the West Right of Way of Treewater, Thence North along the West Right of Way of Treewater to the South Right of Way of Sharpview, Thence West along the South Right of Way of Sharpview to the East Right of Way of Valvwind, Thence South along the East Right of Way of Valvwind to the South Right of Way of Wispwind, Thence West along the South Right of Way of Wispwind to the West Right of Way of Dairy Ashford, Thence North along the West Right of Way of Dairy Ashford to the South Right of Way of Leader, Thence West along the South Right of Way of Leader to the West Right of Way of Synott, Thence North along the West Right of Way of Synott to the South Right of Way of Bellaire Boulevard, Thence West along the South Right of Way of Bellaire Boulevard to the West line of the City of Houston City Limits, Thence North for a distance of 1,264 feet along the West line of the City of Houston City Limits to the Northwest Corner of a 23.7 acre parcel, Thence East following the North line of a 23.7 acre parcel crossing the Right of Way of Synott following the North Right of Way of Clarewood to the West line of a 2.1 acre parcel, Thence North for a distance of 30 feet along the West line of a 2.1acre parcel to the Northwest corner of said 2.1 acre parcel, Thence East for a distance of 9,174 feet following the North line of a 2.1 acre parcel, crossing the Right of Way of Dairy Ashford, then continuing east along the North line of a 3.05 acre parcel, crossing the Right of Way of Cook Road, then continuing east along the North line of a 4.03 acre parcel, then continuing east along North line of a 6.27 acre parcel, crossing the Right of Way of Kirkwood, then continuing east along the North line of a 6.77 acre parcel, then continuing east along the North line of a .51 acre parcel, crossing the Right of Way of Belle Park, then continuing east along the North line of a .77 acre parcel to the East right of Way of Brays Bayou, Thence Southeast along the North Right of Way of Brays Bayou until it crosses the Right of Way of Bellaire Boulevard to the South Right of Way of Bellaire Boulevard, Thence East along the South Right of Way of Bellaire Boulevard to the East Right of Way of Beltway 8, to the Point of Beginning. SAVE AND EXCEPT the following parcel, identified by its Harris County Appraisal District account number: 1107380000001 Res B Blk 2 Westhampton Place. SECTION 3. 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 4. 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, 2005.