80(R) HB 4134 - House Committee Report version

	80R16817 MXM-F

	By: Miles	H.B. No. 4134

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Harris County Improvement District

No. 10; providing authority to impose a tax and issue bonds.

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 3860 to read as follows:

CHAPTER 3860. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 10

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3860.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the

district.

(2) "District" means the Harris County Improvement

District No. 10.

Sec. 3860.002. NATURE OF DISTRICT. The district is a

special district created under Section 59, Article XVI, Texas

Constitution.

Sec. 3860.003. 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 Harris

County, the City of Houston, the Metropolitan Transit Authority of

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, parking, housing, recreation, the arts, safety,

and the public welfare in the area of the district.

interpreted to relieve Harris County or the City of Houston from

providing the level of services provided as of September 1, 2007, 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. 3860.004. 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.

chapter is essential to carry out a public purpose.

(d) 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.

(e) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, employees, visitors, and consumers in the

district, and of the public;

(2) provide needed funding for the district to

preserve, maintain, and enhance the economic health and vitality of

the area as a residential neighborhood and a commercially viable

area;

(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;

(4) promote and benefit commercial development and

commercial areas in the district; and

(5) promote and develop public transportation and

pedestrian facilities and systems using new and alternative means

that are attractive, safe, and convenient, including securing

expanded and improved transportation and pedestrian facilities and

systems, to:

(A) address the problem of traffic congestion in

the district, the need to control traffic and improve pedestrian

safety, and the limited availability of money; and

(B) benefit the land and other property in the

district and the residents, employers, employees, visitors, and

consumers in the district and the public.

(f) 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.

(g) 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. 3860.005. 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 this Act 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:

(1) the district's organization, existence, and

validity;

(2) the district's right to issue any type of bond,

including a refunding bond, for a purpose for which the district is

created or to pay the principal of and interest on the bond;

(3) the district's right to impose and collect an

assessment or tax; or

(4) the legality or operation of the district or the

board.

filed with the Texas Commission on Environmental Quality. The

commission by order may correct a mistake in the description of the

district's boundaries.

Sec. 3860.006. APPLICABILITY OF MUNICIPAL MANAGEMENT

DISTRICTS LAW. Except as otherwise provided by this chapter,

Chapter 375, Local Government Code, applies to the district.

Sec. 3860.007. LIBERAL CONSTRUCTION OF CHAPTER. This

chapter shall be liberally construed in conformity with the

findings and purposes stated in this chapter.

[Sections 3860.008-3860.050 reserved for expansion]

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3860.051. COMPOSITION; 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 increase or decrease the

number of voting directors on the board, but only if it is in the

best interest of the district to do so. The board may not:

(1) increase the number of directors to more than

nine; or

(2) decrease the number of directors to fewer than

five.

Sec. 3860.052. 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 members of the governing body,

including the mayor, vote to appoint that person.

Sec. 3860.053. 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

(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. 3860.054. QUORUM. (a) A majority of the board is a

quorum.

(b) Nonvoting directors and vacant director positions are

not counted for the purposes of establishing a board quorum.

Sec. 3860.055. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.

(a) Except as provided by this section:

(1) a director may participate in all board votes and

decisions; and

(2) Chapter 171, Local Government Code, governs

conflicts of interest for directors.

(b) Section 171.004, Local Government Code, does not apply

to the district. A director who has a substantial interest in a

business or charitable entity that will receive a pecuniary benefit

from a board action shall file a one-time affidavit declaring the

interest. An additional affidavit is not required if the

director's interest changes. After the affidavit is filed with the

board secretary, the director may participate in a discussion or

vote on that action if:

(1) a majority of the directors have a similar

interest in the same entity; or

(2) all other similar business or charitable entities

in the district will receive a similar pecuniary benefit.

entity may not participate in the discussion of or vote on a matter

regarding a contract with that public entity.

(d) For purposes of this section, a director has a

substantial interest in a charitable entity in the same manner that

a person would have a substantial interest in a business entity

under Section 171.002, Local Government Code.

Sec. 3860.056. COMPENSATION OF VOTING DIRECTORS. Voting

directors may receive fees of office and reimbursement of expenses

as provided by Section 49.060, Water Code.

Sec. 3860.057. INITIAL VOTING DIRECTORS. (a) The initial

board consists of the following voting directors:

Pos. No.

Name of Director

_______________

(b) Of the initial voting directors, the terms of directors

appointed for positions 1 through 5 expire June 1, 2009, and the

terms of directors appointed for positions 6 through 9 expire June

1, 2011.

(d) This section expires September 1, 2011.

[Sections 3860.058-3860.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3860.101. GENERAL DISTRICT POWERS. The district has

all powers necessary to accomplish the purposes for which the

district was created.

Sec. 3860.102. DEVELOPMENT CORPORATION AND HOUSING

CORPORATION POWERS OF DISTRICT. The district may exercise the

powers given to:

(1) 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, and maintain the projects described by that

section; and

(2) a housing finance corporation under Chapter 394,

Local Government Code, to provide housing or residential

development projects in the district.

Sec. 3860.103. 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.

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as, for the same term as,

and on the same conditions as the board of directors of a local

government corporation created under Chapter 431, Transportation

Code.

Sec. 3860.104. 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. 3860.105. CONTRACT FOR LAW ENFORCEMENT SERVICES. To

protect the public interest, the district may contract with:

(1) Harris County or the City of Houston for the county

or the city to provide law enforcement services in the district for

a fee; and

(2) a private entity for the private entity to provide

supplemental security services.

Sec. 3860.106. 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) 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. 3860.107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to an organization that:

(1) is an organization exempt from taxation under

Section 501(a), Internal Revenue Code of 1986, as an organization

described by Section 501(c)(3), (4), or (6) of that code; and

(2) performs a service or provides an activity

consistent with the furtherance of a district purpose.

Sec. 3860.108. ROAD POWERS. (a) The district may exercise

the powers given to:

(1) a road district created under Chapter 257,

Transportation Code; and

(2) a road utility district created under Chapter 441,

Transportation Code.

(b) The district does not need the approval of the Texas

Department of Transportation or the Texas Transportation

Commission to construct a road or street if the director of public

works of the City of Houston has approved the road or street.

Sec. 3860.109. AIR RIGHTS; CONSTRUCTION. The district may

acquire air rights and may construct improvements on property on

which it only owns air rights.

Sec. 3860.110. ADDITIONAL PROPERTY RIGHTS; LEASEHOLDS. The

district may construct improvements on property on which it only

has a leasehold interest and may own undivided interests in

buildings and other improvements.

Sec. 3860.111. NO EMINENT DOMAIN POWER. The district may

not exercise the power of eminent domain.

[Sections 3860.112-3860.150 reserved for expansion]

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3860.151. PUBLIC TRANSIT SYSTEM. The district may

acquire, lease as lessor or lessee, construct, develop, own,

operate, and maintain a public transit system to serve the area in

the district.

Sec. 3860.152. PARKING FACILITIES AUTHORIZED; OPERATION BY

PRIVATE ENTITY; TAX EXEMPTION. (a) The district may acquire, lease

as lessor or lessee, construct, develop, own, operate, and maintain

parking facilities, including:

(1) lots, garages, parking terminals, or other

structures or accommodations for the parking of motor vehicles; and

(2) equipment, entrances, exits, fencing, and other

accessories necessary for safety and convenience in the parking of

vehicles.

(b) A parking facility of the district must be either leased

to or operated on behalf of the district by a private entity or an

entity other than the district. The district's parking facilities

are a program authorized by the legislature under Section 52-a,

Article III, Texas Constitution, and accomplish a public purpose

under that section even if leased or operated by a private entity

for a term of years.

to a private entity are exempt from the payment of ad valorem taxes

and state and local sales and use taxes.

Sec. 3860.153. RULES. The district may adopt rules

covering its public transit system or its public parking facilities

except that a rule relating to or affecting the use of the public

right-of-way or a requirement for off-street parking is subject to

all applicable municipal charter, code, or ordinance requirements.

Sec. 3860.154. FINANCING OF PUBLIC TRANSIT SYSTEM OR

PARKING FACILITIES. (a) The district may use any of its resources,

including revenue, assessments, taxes, and grant or contract

proceeds, to pay the cost of acquiring and operating a public

transit system or public parking facilities.

(b) The district may set and impose fees, charges, or tolls

for the use of the public transit system or the public parking

facilities and may issue bonds or notes to finance the cost of these

facilities.

acquiring or operating a public transit system or public parking

facilities with resources other than assessments, a petition of

property owners or a public hearing is not required.

Sec. 3860.155. AGREEMENT WITH RAPID TRANSIT AUTHORITY. (a)

In this section, "authority" means a rapid transit authority

created under Chapter 451, Transportation Code.

(b) The district and an authority may agree to jointly

construct, own, operate, and maintain a transit facility or a

parking facility under the terms the authority and district desire.

authority exchange or trade land provided that each party to the

agreement receives fair market value. The authority is not

required to offer any property that it proposes to trade to the

district for sale to the public or for sale to any abutting property

owner.

[Sections 3860.156-3860.200 reserved for expansion]

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3860.201. 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. 3860.202. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS. (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) A petition requesting a project financed by assessment

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 25 owners of real property in the district

that will be subject to the assessment, if more than 25 persons own

real property subject to the assessment in the district according

to the most recent certified tax appraisal roll for Harris County.

Sec. 3860.203. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3860.208, the district may

impose an annual ad valorem tax on taxable property in the district

to:

(1) administer the district;

(2) maintain and operate the district;

(3) construct or acquire improvements; or

(4) provide a service.

(b) The board shall determine the tax rate.

property exempt under the Texas or United States Constitution or

under the Tax Code, is liable for the payment of ad valorem taxes

imposed by the district on the property.

Sec. 3860.204. 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.

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. 3860.205. 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. 3860.206. BONDS AND OTHER OBLIGATIONS. (a) The

district may issue bonds or other obligations payable wholly or

partly from assessments, impact fees, revenue, grants, or other

money of the district, or any combination of those sources of money,

to pay for any authorized district purpose.

(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. 3860.207. LIMIT ON PARKS AND RECREATION BONDS. Bonds

issued to finance parks and recreational facilities may not exceed

one percent of the assessed value of the real property in the

district according to the most recent certified tax appraisal roll

for Harris County.

Sec. 3860.208. 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 a maintenance tax or issues bonds payable from

ad valorem taxes.

(b) The board may not include more than one purpose in a

single proposition at an election.

to the district.

Sec. 3860.209. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT

OBLIGATIONS. Except as provided by Section 375.263, Local

Government Code, a municipality is not required to pay a bond, note,

or other obligation of the district.

Sec. 3860.210. 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 3860.211-3860.250 reserved for expansion]

SUBCHAPTER F. DISSOLUTION

Sec. 3860.251. 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 Harris County Improvement District No. 10 includes all

territory generally bounded by the following described area:

Beginning at a point on the North at the intersection of

Almeda and the 610 South Loop, thence in an easterly direction along

the centerline of the 610 South Loop to the intersection of the 610

South Loop and MLK; thence in a southerly direction along the

centerline of MLK to the intersection of MLK and E. Orem; thence in

a westerly direction along the centerline of E. Orem to the

intersection of E. Orem and Cullen; thence in a southerly direction

along the centerline of Cullen to the intersection of Cullen and

Almeda-Genoa; thence in a westerly direction along the centerline

of Almeda-Genoa to the intersection of Almeda-Genoa and Almeda;

thence in a northerly direction to the intersection of Almeda and

the 610 South Loop.

SECTION 3. REIMBURSEMENT FOR COST OF CREATION. The Harris

County Improvement District No. 10 may reimburse the cost of

creating the district from assessments or other revenue created by

the district.

SECTION 4. 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 5. INAPPLICABILITY OF NOTICE LAW. Section 313.006,

Government Code, does not apply to this Act.

SECTION 6. 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.