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.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
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.
* * * * *