80R15268 JPL-D
 
  By: Vo, Allen H.B. No. 4004
 
Substitute the following for H.B. No. 4004:
 
  By:  Murphy C.S.H.B. No. 4004
 
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the International Management District;
providing authority to impose assessments and taxes and to 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 3849 to read as follows:
CHAPTER 3849.  INTERNATIONAL MANAGEMENT DISTRICT
SUBCHAPTER A.  GENERAL PROVISIONS
       Sec. 3849.001.  DEFINITIONS.  In this chapter:
             (1)  "Board" means the board of directors of the
district.
             (2)  "District" means the International Management
District.
       Sec. 3849.002.  INTERNATIONAL MANAGEMENT DISTRICT.  The
district is a special district created under Section 59, Article
XVI, Texas Constitution.
       Sec. 3849.003.  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 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
this Act, to the area in the district. The district is created to
supplement and not to supplant the county or municipal services
provided in the area in the district.
       Sec. 3849.004.  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 developing and
diversifying 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, 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, 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. 3849.005.  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)  Section 3849.106;
             (2)  Subchapter J, Chapter 49, Water Code; or
             (3)  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 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. 3849.006.  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 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. 3849.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW.  Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
       Sec. 3849.008.  LIBERAL CONSTRUCTION OF CHAPTER.  This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections 3849.009-3849.050 reserved for expansion]
SUBCHAPTER B.  BOARD OF DIRECTORS
       Sec. 3849.051.  BOARD OF DIRECTORS; TERMS.  (a)  The
district is governed by a board of 11 voting directors who serve
staggered terms of four years, with five or six 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. 3849.052.  APPOINTMENT OF DIRECTORS ON INCREASE IN
BOARD SIZE.  If the board increases the number of directors under
Section 3849.051, the board shall appoint qualified persons to fill
the new director positions and shall provide for staggering the
terms of the directors serving in the new positions.
       Sec. 3849.053.  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 members of the governing body,
including the mayor, vote to appoint that person.
       Sec. 3849.054.  QUORUM.  For purposes of determining whether
a quorum of the board is present, the following are not counted:
             (1)  a board position vacant for any reason, including
death, resignation, or disqualification; or
             (2)  a director who is abstaining from participation in
a vote because of a conflict of interest.
       Sec. 3849.055.  INITIAL VOTING DIRECTORS. (a) The initial
board consists of the following voting directors:
Pos. No. Name of Director
  1 Gladys Brumfield
  2 Fred Bhandava
  3 Karen Loper
  4 Ha Duong
  5 Dawn Bradford
  6 _____________
  7 Leeshan Birney
  8 Stephen Le
  9 Tri La
  10 Vican Tan
  11 Wea Lee
       (b)  Of the initial voting directors, the terms of directors
appointed for positions 1 through 6 expire June 1, 2009, and the
terms of directors appointed for positions 7 through 11 expire June
1, 2011.
       (c)  Section 3849.052 does not apply to this section.
       (d)  This section expires September 1, 2011.
[Sections 3849.056-3849.100 reserved for expansion]
SUBCHAPTER C.  POWERS AND DUTIES
       Sec. 3849.101.  GENERAL POWERS.  The district may exercise
all powers necessary to accomplish the purposes for which the
district was created.
       Sec. 3849.102.  EXERCISE OF POWERS OF OTHER GOVERNMENTAL
ENTITIES.  The district has the powers of:
             (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.
       Sec. 3849.103.  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, except that a board member is not required to
reside in the district.
       Sec. 3849.104.  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. 3849.105.  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. 3849.106.  ANNEXATION OR EXCLUSION OF TERRITORY.  The
district may annex or exclude land from the district in the manner
provided by Subchapter C, Chapter 375, Local Government Code.
       Sec. 3849.107.  APPROVAL BY CITY OF HOUSTON.  (a)  Except as
provided by Subsection (c), the district must obtain the approval
of the City of Houston's governing body for:
             (1)  the issuance of bonds for an improvement project;
             (2)  the plans and specifications of an improvement
project financed by the bonds; and
             (3)  the plans and specifications of an 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 under Subsection (a) for the
issuance of bonds must be a resolution by the City of Houston.  The
approval obtained under Subsection (a) 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. 3849.108.  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. 3849.109.  ECONOMIC DEVELOPMENT PROGRAMS AND OTHER
POWERS RELATED TO PLANNING AND DEVELOPMENT. (a) 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 of a municipality
under Chapter 380, Local Government Code.
       Sec. 3849.110.  NO EMINENT DOMAIN.  The district may not
exercise the power of eminent domain.
[Sections 3849.111-3849.150 reserved for expansion]
SUBCHAPTER D.  FINANCIAL PROVISIONS
       Sec. 3849.151.  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. 3849.152.  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. 3849.153.  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:
             (1)  the owners of a majority of the assessed value of
real property in the district subject to assessment according to
the most recent certified tax appraisal roll for Harris County; or
             (2)  at least 50 owners of real property in the
district, if more than 50 persons own real property in the district
according to the most recent certified tax appraisal roll for
Harris County.
       Sec. 3849.154.  METHOD OF NOTICE FOR HEARING. (a)  The
district shall mail the notice required by Section 375.115(c),
Local Government Code, by certified or first class United States
mail. The board shall determine the type of notice required based
on whether adequate notice is provided by the method.
       (b)  If the district uses first class mail to provide the
notice, the district must also publish the notice in a newspaper of
general circulation in the district not later than the 20th day
before the date of the event for which notice was provided.
       Sec. 3849.155.  ASSESSMENTS; LIENS FOR ASSESSMENTS.  (a)  
The board by resolution may impose and collect an assessment 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.
       (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.
       Sec. 3849.156.  ASSESSMENTS CONSIDERED TAXES.  For purposes
of a title insurance policy issued under Chapter 9, Insurance Code,
an assessment is a tax.
       Sec. 3849.157.  AD VALOREM TAX.  (a)  If authorized at an
election held in accordance with Section 3849.162, the district may
impose an annual ad valorem tax on taxable property in the district
for any district 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.  The rate may not
exceed the rate approved at the election.
       Sec. 3849.158.  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. 3849.159.  USE OF ELECTRICAL OR OPTICAL LINES. (a) The
district may impose an assessment to pay the cost of:
             (1)  burying or removing electrical power lines,
telephone lines, cable or fiber optic lines, or any other type of
electrical or optical line;
             (2)  removing poles and any elevated lines using the
poles; or
             (3)  reconnecting the lines described by Subdivision
(2) to the buildings or other improvements to which the lines were
connected.
       (b)  The district may acquire, operate, or charge fees for
the use of the district conduits for:
             (1)  another person's:
                   (A)  telecommunications network;
                   (B)  fiber-optic cable; or
                   (C)  electronic transmission line; or
             (2)  any other type of transmission line or supporting
facility.
       (c)  The district may not require a person to use a district
conduit.  This subsection does not diminish or disturb the rights
and obligations of an electric utility or a telephone or telegraph
corporation under Sections 181.042 and 181.082, Utilities Code.
       Sec. 3849.160.  BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations payable wholly or
partly from 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. 3849.161.  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. 3849.162.  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.  The proposition for an election approving an ad
valorem tax must specify the maximum tax rate authorized.
       (b)  The board may submit multiple purposes in a single
proposition at an election.
       (c)  Section 375.243, Local Government Code, does not apply
to the district.
       Sec. 3849.163.  CITY OF HOUSTON 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. 3849.164.  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. 3849.165.  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 3849.166-3849.200 reserved for expansion]
SUBCHAPTER E.  DISSOLUTION
       Sec. 3849.201.  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 line of
Alief Clodine and the west right of way line of Highway 6;
Thence south along the west right of way of Highway 6 to the south
right of way line of Bissonnet;
Thence east along the south right of way line of Bissonnet to the
west right of way line of Dairy Ashford;
Thence south along the south along the west right of way line of
Dairy Ashford then crossing east across Dairy Ashford to the
northwest point of a property identified as Res A Blk 22 Huntington
Village Section 3 also identified as Harris County Central
Appraisal District ID Number 1055250000051;
Thence east along the north property line of the property
identified as Res A Blk 22 Huntington Village Section 3 also
identified as Harris County Central Appraisal District ID Number
1055250000051 to the west right of way line of Huntington Place
Drive;
Thence south along the west right of way line of Huntington Place
Drive for a distance of approximately 611 feet then crossing east
across Huntington Place Drive to the southwest point of a property
identified as Res B Blk 11 (HL&P) Huntington Village Sec 5 also
identified as Harris County Central Appraisal District ID Number
1043800000035;
Thence east along the south property line of the property
identified as Res B Blk 11 (HL&P ROW) Huntington Village Sec 5 also
identified as Harris County Central Appraisal District ID Number
1043800000035 to the west right of way line of Cook Road;
Thence east crossing Cook Road to the southwest point of a property
identified as Res C Blk 1 (HL&P ROW) Huntington Village Sec 1 also
identified as Harris County Central Appraisal District ID Number
1043700000092;
Thence east along the south property line of a property identified
as Res C Blk 1 (HL&P ROW) Huntington Village Sec 1 also identified
as Harris County Central Appraisal District ID Number 1043700000092
to the west right of way line of Keegan Road;
Thence east crossing Keegan Road to the southwest point of a
property identified as Res F1 (HL&P ROW) Keegans Glen Sec 5 R/P also
identified as Harris County Central Appraisal District ID Number
1147550000023;
Thence east along the south property line of a property identified
as Res F1 (HL&P ROW) Keegans Glen Sec 5 R/P also identified as
Harris County Central Appraisal District ID Number 1147550000023 to
the west right of way line of Kirkwood;
Thence south along the west right of way line of Kirkwood to the
south right of way line of Bellfort;
Thence east along the south right of way line of Bellfort to the
west right of way line of Wilcrest;
Thence south along the west right of way line of Wilcrest to the
north right of way line of US 59 S;
Thence northeast along the north right of way line of US 59 S to the
east right of way line of Beltway 8;
Thence north along the east right of way of Beltway 8 to the south
right of way line of Bellaire;
Thence west along the south right of way line of Bellaire to the
east right of way of Brays Bayou;
Thence north following west along the east right of way of Brays
Bayou to the north right of way of the Brays Bayou Stream Network
that runs parallel with the north right of way of Bellaire and lies
between Bellaire and Alief Clodine;
Thence west along the north right of way of the Brays Bayou Stream
Network that runs parallel with the north right of way of Bellaire
and lies between Bellaire and Alief Clodine to the east right of way
of Kirkwood;
Thence west crossing Kirkwood following the north right of way of
the Brays Bayou Stream Network that runs parallel with the north
right of way of Bellaire and lies between Bellaire and Alief Clodine
to the east right of way of Cook Road;
Thence west crossing Cook Road following the north right of way of
the Brays Bayou Stream Network that runs parallel with the north
right of way of Bellaire and lies between Bellaire and Alief Clodine
to the east right of way of Dairy Ashford;
Thence west crossing Dairy Ashford following the north right of way
of the Brays Bayou Stream Network that runs parallel with the north
right of way of Bellaire and lies between Bellaire and Alief Clodine
to the east right of way of Synott;
Thence west crossing Synott following the north right of way of the
Brays Bayou Stream Network that runs parallel with the north right
of way of Bellaire and lies between Bellaire and Alief Clodine to
the east right of way of Eldridge;
Thence west crossing Eldridge following the north right of way of
the Brays Bayou Stream Network that runs parallel with the north
right of way of Bellaire and lies between Bellaire and Alief Clodine
to the east right of way of Metro Boulevard;
Thence north along the east right of way of Metro Boulevard to the
south right of way of Alief Clodine;
Thence west along the south right of way of Alief Clodine to the
Place of Beginning.
Save & Except:
A property described as TR 2B-2 ABST 651 L ROARK also described as
11600 Southwest Fwy Houston TX 77099 also described as Harris
County Appraisal District ID Number 0441040000100.
A property described as TR 2B-6 ABST 651 L ROARK also described as
11614 Southwest Fwy Houston TX 77099 also described as Harris
County Appraisal District ID Number 0441040000033.
A property described as TR 2B-7 ABST 651 L ROARK also described as 0
Off Wilcrest Dr. Houston TX 770099 also described as Harris County
Appraisal District ID Number 0441040000034.
       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, 2007.