Bill Text: TX HB2353 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the creation of Saint George Place Management District; providing authority to issue bonds; providing authority to impose assessments.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2015-05-27 - Not again placed on intent calendar [HB2353 Detail]
Download: Texas-2015-HB2353-Comm_Sub.html
By: Davis of Harris, Wu (Senate Sponsor - Huffman) | H.B. No. 2353 | |
(In the Senate - Received from the House May 18, 2015; | ||
May 18, 2015, read first time and referred to Committee on | ||
Intergovernmental Relations; May 22, 2015, reported favorably by | ||
the following vote: Yeas 6, Nays 1; May 22, 2015, sent to printer.) | ||
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relating to the creation of Saint George Place Management District; | ||
providing authority to issue bonds; providing authority to impose | ||
assessments. | ||
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 3925 to read as follows: | ||
CHAPTER 3925. SAINT GEORGE PLACE MANAGEMENT DISTRICT | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 3925.001. DEFINITIONS. In this chapter: | ||
(1) "Board" means the district's board of directors. | ||
(2) "City" means the City of Houston. | ||
(3) "County" means Harris County. | ||
(4) "Director" means a board member. | ||
(5) "District" means the Saint George Place Management | ||
District. | ||
(6) "Zone" means the Tax Increment Reinvestment Zone | ||
No. One, City of Houston, Texas, designated by the city in Ordinance | ||
No. 90-1452, dated December 12, 1990. | ||
Sec. 3925.002. NATURE OF DISTRICT. The Saint George Place | ||
Management District is a special district created under Section 59, | ||
Article XVI, Texas Constitution. | ||
Sec. 3925.003. 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, the | ||
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 commerce, transportation, | ||
housing, recreation, economic development, safety, and the public | ||
welfare in the district. | ||
(c) This chapter and the creation of the district may not be | ||
interpreted to relieve the city or the county 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 city or county services | ||
provided in the district. | ||
Sec. 3925.004. 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 further the public purposes of: | ||
(1) developing and diversifying the economy of the | ||
state; | ||
(2) eliminating unemployment and underemployment; and | ||
(3) developing or expanding 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; | ||
(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; | ||
and | ||
(4) provide for water, wastewater, drainage, road, | ||
sound barrier and security walls, recreational facilities, and city | ||
code enforcement for the district. | ||
(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. 3925.005. INITIAL DISTRICT TERRITORY. The district is | ||
initially composed of the territory described by Section 2 of the | ||
Act enacting this chapter. | ||
Sec. 3925.006. APPLICABILITY OF MUNICIPAL MANAGEMENT | ||
DISTRICTS LAW. Except as otherwise provided by this chapter, | ||
Chapter 375, Local Government Code, applies to the district. | ||
Sec. 3925.007. CONSTRUCTION OF CHAPTER. This chapter shall | ||
be liberally construed in conformity with the findings and purposes | ||
stated in this chapter. | ||
SUBCHAPTER B. BOARD OF DIRECTORS | ||
Sec. 3925.051. GOVERNING BODY; TERMS. (a) The district is | ||
governed by a board of nine voting directors. | ||
(b) Except as provided by Section 3925.052, the directors of | ||
the zone are the voting directors of the board and their terms as | ||
directors of the district are coterminous with their terms as | ||
directors of the zone. | ||
Sec. 3925.052. VOTING DIRECTORS IF ZONE DISSOLVED; TERMS. | ||
(a) If the zone is dissolved, the mayor and members of the | ||
governing body of the city shall appoint voting directors from | ||
persons recommended by the board. A person is appointed if a | ||
majority of the members of the governing body and the mayor vote to | ||
appoint that person. | ||
(b) Directors appointed under Subsection (a) serve | ||
staggered terms of four years, with four or five directors' terms | ||
expiring June 1 of each odd-numbered year. The initial directors | ||
appointed under Subsection (a) shall establish the staggered terms | ||
of each initial director by lot. | ||
Sec. 3925.053. NONVOTING DIRECTORS. The board may appoint | ||
nonvoting directors to serve at the pleasure of the voting | ||
directors. | ||
Sec. 3925.054. VACANCY IF ZONE DISSOLVED. If a vacancy | ||
occurs on the board after the zone is dissolved, the remaining | ||
directors shall appoint a director for the remainder of the | ||
unexpired term. | ||
Sec. 3925.055. 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. | ||
SUBCHAPTER C. POWERS AND DUTIES | ||
Sec. 3925.101. GENERAL POWERS AND DUTIES. The district has | ||
the powers and duties necessary to accomplish the purposes for | ||
which the district is created. | ||
Sec. 3925.102. IMPROVEMENT PROJECTS AND SERVICES. The | ||
district may provide, design, construct, acquire, improve, | ||
relocate, operate, maintain, or finance an improvement project or | ||
service using any money available to the district, or contract with | ||
a governmental or private entity to provide, design, construct, | ||
acquire, improve, relocate, operate, maintain, or finance an | ||
improvement project or service authorized under this chapter or | ||
Chapter 375, Local Government Code. | ||
Sec. 3925.103. DEVELOPMENT CORPORATION POWERS. The | ||
district, using money available to the district, may exercise the | ||
powers given to a development corporation under Chapter 505, Local | ||
Government Code, including the power to own, operate, acquire, | ||
construct, lease, improve, or maintain a project under that | ||
chapter. | ||
Sec. 3925.104. AGREEMENTS; GRANTS. (a) As provided by | ||
Chapter 375, Local Government Code, the district may make an | ||
agreement with or accept a gift, grant, or loan from any person. | ||
(b) The district may enter into an agreement with the city | ||
to administer and enforce a city zoning ordinance applicable to the | ||
district in the territory of the district. | ||
(c) The implementation of a project is a governmental | ||
function or service for the purposes of Chapter 791, Government | ||
Code. | ||
Sec. 3925.105. LAW ENFORCEMENT SERVICES. To protect the | ||
public interest, the district may contract with a qualified party, | ||
including the county or the city, to provide law enforcement or | ||
security services in the district. | ||
Sec. 3925.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The | ||
district may join and pay dues to a charitable or nonprofit | ||
organization that performs a service or provides an activity | ||
consistent with the furtherance of a district purpose. | ||
Sec. 3925.107. ECONOMIC DEVELOPMENT. (a) The district may | ||
engage in activities that accomplish the economic development | ||
purposes of the district. | ||
(b) 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. | ||
(c) The district may create economic development programs | ||
and exercise the economic development powers provided to | ||
municipalities by: | ||
(1) Chapter 380, Local Government Code; and | ||
(2) Subchapter A, Chapter 1509, Government Code. | ||
Sec. 3925.108. APPROVAL BY CITY. (a) Except as provided by | ||
Subsection (c), the district must obtain the approval of the city | ||
for: | ||
(1) the issuance of bonds that require the approval of | ||
the attorney general; | ||
(2) the plans and specifications of an improvement | ||
project financed by bonds; and | ||
(3) the plans and specifications of an improvement | ||
project related to the use of land owned by the city, an easement | ||
granted by the city, or a right-of-way of a street, road, or | ||
highway. | ||
(b) The district may not issue bonds until the governing | ||
body of the city adopts a resolution or ordinance authorizing the | ||
issuance of the bonds. | ||
(c) If the district obtains the approval of the governing | ||
body of the city of a capital improvements budget for a period not | ||
to exceed 10 years, the district may finance the capital | ||
improvements and issue bonds specified in the budget without | ||
further approval from the city. | ||
(d) The governing body of the city: | ||
(1) is not required to adopt a resolution or ordinance | ||
to approve plans and specifications described by Subsection (a); | ||
and | ||
(2) may establish an administrative process to approve | ||
plans and specifications described by Subsection (a) without the | ||
involvement of the governing body. | ||
Sec. 3925.109. NO EMINENT DOMAIN POWER. The district may | ||
not exercise the power of eminent domain. | ||
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS | ||
Sec. 3925.151. 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 district money. | ||
Sec. 3925.152. 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. 3925.153. BUDGET; ASSESSMENTS. (a) The board shall | ||
approve an annual budget for the district based on anticipated | ||
assessment revenue. | ||
(b) The board by resolution may impose and collect an | ||
assessment, for any purpose authorized by this chapter, using only | ||
the method described by this section. | ||
(c) The board may impose an assessment in all or any part of | ||
the district at a rate of $0.07 per square foot of taxable property, | ||
and may impose a supplemental annual assessment at a rate of $300 | ||
per lot. | ||
(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) In a year in which the approved expenses in the annual | ||
budget exceed the district's annual revenue from all sources, the | ||
board may approve an increase to the rate of the supplemental annual | ||
assessment to accommodate the expenses if the percentage change in | ||
the amount of the supplemental annual assessment does not exceed: | ||
(1) two percent for that year as compared to the | ||
previous year; or | ||
(2) 10 percent over a five-year period. | ||
(f) The district may not approve a supplemental assessment | ||
under Section 375.122(1), Local Government Code, to pay costs of an | ||
improvement project or service if the additional costs that are the | ||
subject of the supplemental assessment exceed 25 percent of the | ||
original total cost of the improvement project or service. | ||
(g) A provision of this subchapter regarding an assessment | ||
prevails over a conflicting provision of Chapter 375, Local | ||
Government Code, as provided by Section 3925.006. | ||
Sec. 3925.154. 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 | ||
for all or part of the district has been filed with the board. | ||
(b) A petition filed under Subsection (a) must be signed by | ||
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 the county. | ||
Sec. 3925.155. METHOD OF NOTICE FOR HEARING. The district | ||
may 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 method of notice. | ||
Sec. 3925.156. LIENS FOR ASSESSMENTS. (a) 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. | ||
(b) The lien is effective from the date of the board's | ||
resolution imposing the assessment until the date the assessment is | ||
paid. | ||
Sec. 3925.157. RESIDENTIAL PROPERTY NOT EXEMPT. Section | ||
375.161, Local Government Code, does not apply to the district. | ||
Sec. 3925.158. ASSESSMENT ABATEMENT. The district may | ||
designate reinvestment zones and may grant abatements of | ||
assessments on property in the zones. | ||
Sec. 3925.159. NO IMPACT FEES. The district may not impose | ||
an impact fee. | ||
Sec. 3925.160. NO AD VALOREM TAX. The district may not | ||
impose an ad valorem tax. | ||
SUBCHAPTER E. BONDS | ||
Sec. 3925.201. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS | ||
AND OTHER OBLIGATIONS. (a) The district may borrow money on terms | ||
determined by the board. | ||
(b) The district may issue bonds, notes, or other | ||
obligations payable wholly or partly from assessments, revenue, | ||
contract payments, grants, or other district money, or any | ||
combination of those sources of money, to pay for any authorized | ||
district purpose. | ||
Sec. 3925.202. CITY NOT REQUIRED TO PAY DISTRICT | ||
OBLIGATIONS. Except as provided by Section 375.263, Local | ||
Government Code, the city is not required to pay a bond, note, or | ||
other obligation of the district. | ||
SUBCHAPTER F. PUBLIC IMPROVEMENT DISTRICT DISSOLUTION | ||
Sec. 3925.251. PUBLIC IMPROVEMENT DISTRICT DISSOLUTION. | ||
(a) The city shall dissolve a public improvement district created | ||
by the city under Chapter 372, Local Government Code, that is in the | ||
boundaries of the district if the board imposes an assessment. | ||
(b) A public improvement district that is dissolved under | ||
this section shall remain in effect for the purposes of meeting | ||
obligations of indebtedness and collecting delinquent assessments. | ||
SUBCHAPTER G. CONSOLIDATION | ||
Sec. 3925.301. The district may not be consolidated with | ||
another district that has the powers of a district created under | ||
Chapter 375, Local Government Code. | ||
SUBCHAPTER H. DISSOLUTION | ||
Sec. 3925.351. DISSOLUTION BY PETITION BY OWNERS. (a) | ||
Section 375.262, Local Government Code, does not apply to the | ||
district. | ||
(b) Except as limited by Section 375.264, Local Government | ||
Code, the board shall dissolve the district on written petition | ||
filed with the board by the owners of: | ||
(1) 50 percent or more of the assessed value of the | ||
property in the district based on the most recent certified county | ||
property tax rolls; or | ||
(2) 50 percent or more of the surface area of the | ||
district, excluding roads, streets, highways, utility | ||
rights-of-way, other public areas, and other property exempt from | ||
assessment under Sections 375.163 and 375.164, Local Government | ||
Code, according to the most recent certified county property tax | ||
rolls. | ||
SECTION 2. The Saint George Place Management District | ||
initially includes all territory contained in the Tax Increment | ||
Reinvestment Zone No. One, City of Houston, Texas, designated by | ||
the City of Houston in Ordinance No. 90-1452, dated December 12, | ||
1990, as that zone is configured on the effective date of this Act. | ||
SECTION 3. (a) The 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 | ||
under Section 59, Article XVI, Texas Constitution, and Chapter 313, | ||
Government Code. | ||
(b) The governor, one of the required recipients, has | ||
submitted the notice and Act to the Texas Commission on | ||
Environmental Quality. | ||
(c) 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. | ||
(d) 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. | ||
(e) 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. 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, 2015. | ||
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