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By: Ellis S.B. No. 1814
(In the Senate - Filed March 23, 2005; March 30, 2005, read
first time and referred to Committee on Intergovernmental
Relations; May 2, 2005, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 2, 2005, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1814 By: Gallegos
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Southampton Neighborhood Services
District; providing authority to impose an assessment, impose a
tax, and issue bonds or similar obligations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3839 to read as follows:
CHAPTER 3839. SOUTHAMPTON NEIGHBORHOOD SERVICES DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3839.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Southampton Neighborhood
Services District.
Sec. 3839.002. SOUTHAMPTON NEIGHBORHOOD SERVICES DISTRICT.
The Southampton Neighborhood Services District is a special
district created under Section 59, Article XVI, Texas Constitution.
Sec. 3839.003. 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
chapter. 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.
(b) The creation of the district is necessary to provide
enhanced and supplemental services to maintain and improve the
common alleyways in the district and to promote and maintain the
Southampton Neighborhood of Houston as a safe, clean, aesthetically
pleasing, and deed-restricted residential neighborhood with
sustainable high property values.
(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.
Sec. 3839.004. 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 district will:
(1) promote the health, safety, and general welfare of
district residents and of the public;
(2) provide enhanced and supplemental services to
preserve, maintain, and enhance the vitality of the district as a
deed-restricted residential neighborhood; and
(3) promote the health, safety, welfare, and enjoyment
of the public by maintaining and improving the common alleyways and
by landscaping and developing certain areas in the district, which
are necessary for the restoration, preservation, and enhancement of
scenic beauty.
(d) Pedestrian ways along or across a street or alley,
street or alley lighting, street landscaping, and pavement
associated with access ways connecting to, and drainage facilities
related to the common alleyways are parts of and necessary
components of a street or alley and are considered to be a street or
road improvement.
(e) 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. 3839.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 3 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 3 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 bond for a purpose for
which the district is created or to pay the principal of and
interest on the bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3839.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3839.007. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections 3839.008-3839.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3839.051. BOARD OF DIRECTORS; TERMS. (a) The
district is governed by a board of 18 voting directors who serve
staggered terms of two years, with nine directors' terms expiring
December 31 of each 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 11 or more than 21 directors.
Sec. 3839.052. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the City of Houston shall appoint
directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
Sec. 3839.053. 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; and
(C) public works;
(2) the City of Houston's chief of police; and
(3) each City of Houston council member whose council
district is wholly or partly in the district.
(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. 3839.054. QUORUM. For 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. 3839.055. INITIAL VOTING DIRECTORS. (a) The initial
board consists of the following voting directors: Pos. No. Name of Director
1 Anne Clutterbuck
2 Les Randall
3 Hugh Rice Kelly
4 Sarah Darneille
5 Larry Foust
6 Patrick Pacheco
7 Janet Peters
8 Ed Shoemake
9 Peggy Vineyard
10 Ed Kagi
11 Chip Gill
12 Licia Ellis
13 Amy Anton
14 Erik Eriksson
15 Karen Gonsoulin
16 Louisa Hernandez
17 Chris Knapp
18 Will Luedke
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 9 expire December 31, 2006, and
the terms of directors appointed for positions 10 through 18 expire
December 31, 2005.
(c) Section 3839.052 does not apply to this section.
(d) This section expires September 1, 2007.
[Sections 3839.056-3839.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3839.101. 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.
Sec. 3839.102. 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. 3839.103. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.
To protect the public interest, the district may contract with a
qualified party, including Harris County, the City of Houston, or a
nonprofit corporation, to provide supplemental law enforcement
services in the district for a fee.
Sec. 3839.104. APPROVAL BY CITY OF HOUSTON. (a) Except as
provided by Subsection (b), the district must obtain the approval
of the City of Houston's governing body for:
(1) the issuance of a bond for each improvement
project;
(2) the plans and specifications of the improvement
project financed by the bond; 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 the approval of the City of
Houston's governing body of 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. 3839.105. 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. 3839.106. CERTIFICATION OF PROPERTY OWNERS'
ASSOCIATION. (a) If the board finds that it will benefit district
property and it is consistent with the district's purposes, the
board by resolution may certify a nonprofit corporation whose
members are the property owners of the district as a property
owners' association under Chapter 204, Property Code.
(b) A nonprofit corporation certified by the board under
this section is a property owners' association under Chapter 204,
Property Code, and has the powers and duties of an association under
that chapter. Certification under this section satisfies all
procedural requirements regarding the creation of a property
owners' association under that chapter, including the requirements
of Section 204.006, Property Code.
(c) Not later than the 30th day after the date of the board's
resolution, the board shall file a notice of the certification in
the real property records of Harris County. The notice must state
that the nonprofit corporation is a property owners' association
under Chapter 204, Property Code.
(d) The certification is permanent and may not be revoked.
Sec. 3839.107. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
Sec. 3839.108. NOTICE OF LAW ESTABLISHING DISTRICT.
(a) The district by mail shall provide notification of the
creation of the district to each person who owns real property in
the district, according to the most recent certified tax appraisal
roll for the county in which the real property is owned. The
notice, properly addressed with postage paid, must be deposited
with the United States Postal Service not later than the 90th day
after the effective date of the Act enacting this chapter.
(b) The notice is sufficient if it contains a statement of
the general purpose and substance of this chapter. Notice of the
particular form of this chapter or the terms used in this chapter is
not required.
(c) This section expires September 1, 2007.
[Sections 3839.109–3839.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3839.151. 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. 3839.152. MONEY USED FOR IMPROVEMENTS OR SERVICES.
The district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or Chapter
375, Local Government Code, using any money available to the
district.
Sec. 3839.153. INITIAL SERVICE AND ASSESSMENT PLAN.
(a) The district's initial service and assessment plan must
provide that:
(1) any assessment imposed must be paid in five years
or less;
(2) the rate of assessment for the first year of the
plan may not exceed $510 per residential household per year;
(3) the rate of assessment may only be increased in a
later year of the plan:
(A) to account for increased costs of services;
and
(B) by a rate that does not exceed 10 percent of
the previous year's assessment; and
(4) assessment revenue may only be used to pay for:
(A) garbage collection;
(B) supplemental security and public safety;
(C) landscaping and beautification projects;
(D) study, design, and construction of alleyway
repairs, improvements, and reconstruction;
(E) formulation and adoption of neighborhood
deed restrictions; and
(F) other operation and administration costs of
the district.
(b) This section does not apply to a district service and
assessment plan developed after the initial service and assessment
plan.
(c) This section expires September 1, 2012.
Sec. 3839.154. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) 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) The petition must be signed by the owners of a majority
of the residences in the district subject to assessment according
to the most recent certified tax appraisal roll for Harris County.
Sec. 3839.155. METHOD OF NOTICE FOR HEARING. The district
may give the notice required by Section 375.115(c), Local
Government Code, by personal delivery or certified United States
mail or an equivalent service that can provide a record of mailing
or delivery.
Sec. 3839.156. 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, 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 a 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,
except that the board may not foreclose on a residential homestead.
(d) The board may make a correction to or 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) Section 375.161, Local Government Code, does not apply
to the district.
Sec. 3839.157. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. 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.
Sec. 3839.158. CERTAIN RESIDENTIAL PROPERTY EXEMPT FROM
IMPACT FEES AND ASSESSMENTS. (a) An individual is entitled to an
exemption from an impact fee or assessment if:
(1) the individual is 65 years of age or older or is
disabled as defined by Section 11.13(m), Tax Code; and
(2) the assessment will be imposed against property
that the individual owns and occupies as a residence homestead.
(b) To obtain the exemption, the individual must file with
the board an affidavit stating the facts required by Subsection
(a).
Sec. 3839.159. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations, by competitive bid
or negotiated sale, 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, except as provided by
Subsection (b).
(b) If the bonds are payable from ad valorem taxes, the
bonds may only be used to pay for the design, construction,
acquisition, improvement, maintenance, repair, reconstruction, and
operation of streets, roads, and alleys, or improvements in and of
those streets, roads, and alleys.
(c) 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. 3839.160. 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
that all or part of the bonds are outstanding; and
(2) the district annually shall impose the continuing
direct 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. 3839.161. 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 issues bonds payable from ad valorem taxes.
(b) The district may only issue bonds or other obligations
under Section 52(b)(3), Article III, Texas Constitution, if the
issuance is approved by a two-thirds majority of the voters in the
district voting at an election held for that purpose.
(c) Section 375.243, Local Government Code, does not apply
to the district.
Sec. 3839.162. 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. 3839.163. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $25,000.
[Sections 3839.164-3839.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3839.201. DISSOLUTION BY PETITION BY OWNERS. The
board shall dissolve the district on written petition filed with
the board by the owners of 75 percent or more of the residential
households in the district according to the most recent certified
tax appraisal roll for Harris County.
Sec. 3839.202. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT BY BOARD. 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.
Sec. 3839.203. DEBTS. If the district has debt when it is
dissolved under this subchapter, 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. The Southampton Neighborhood Services District
may reimburse the cost of creating the district from district
assessments collected under Section 3839.153, Special District
Local Laws Code, as added by this Act.
SECTION 3. As of the effective date of this Act, the
Southampton Neighborhood Services District includes all territory
contained in the following described area: from the intersection
of the centerline of the right of way of Bissonnet Street and the
centerline of the right of way of Greenbriar Drive, south to the
intersection of the centerline of the right of way of Greenbriar
Drive and the centerline of the right of way of Rice Boulevard, east
to the intersection of the centerline of the right of way of Rice
Boulevard and the centerline of the right of way of Ashby Street,
north to the intersection of the centerline of the right of way of
Ashby Street and the centerline of the right of way of Bissonnet
Street, west to the intersection of the centerline of the right of
way of Bissonnet Street and the centerline of the right of way of
Greenbriar Drive, the point or place of beginning.
SECTION 4. 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 5. 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.
* * * * *