By: Ellis S.B. No. 1843
(In the Senate - Filed April 5, 2005; April 7, 2005, read
first time and referred to Committee on Intergovernmental
Relations; May 2, 2005, reported favorably, as amended, by the
following vote: Yeas 5, Nays 0; May 2, 2005, sent to printer.)
COMMITTEE AMENDMENT NO. 1 By: Gallegos
Amend S.B. No. 1843, in Section 3836.051, by striking the list of
initial voting directors (page 3, lines 33-41) and substituting the
following:
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 Adrian K. Collins
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 3836.052 does not apply to this section.
(d) This section expires September 1, 2010.
[Sections 3836.056-3836.100 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 (c), 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 Subdivision (1) or through issuance
of a permit with respect to Subdivisions (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 Harris 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 3836.159, 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 Section 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.
* * * * *