Texas 2019 - 86th Regular

Texas House Bill HB4667 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hernandez (Senate Sponsor - Alvarado) H.B. No. 4667
2		-	(In the Senate - Received from the House May 6, 2019;
3		-	May 6, 2019, read first time and referred to Committee on
4		-	Intergovernmental Relations; May 20, 2019, reported adversely,
5		-	with favorable Committee Substitute by the following vote: Yeas 6,
6		-	Nays 0; May 20, 2019, sent to printer.)
7		-	Click here to see the committee vote
8		-	COMMITTEE SUBSTITUTE FOR H.B. No. 4667 By: Alvarado
	1	+	86R25736 JXC-D
	2	+	By: Hernandez H.B. No. 4667
9	3
10	4
11	5		A BILL TO BE ENTITLED
12	6		AN ACT
13	7		relating to the creation of the East Houston Management District;
14	8		providing authority to issue bonds; providing authority to impose
15	9		assessments, fees, or taxes.
16	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	11		SECTION 1. Subtitle C, Title 4, Special District Local Laws
18	12		Code, is amended by adding Chapter 3923 to read as follows:
19	13		CHAPTER 3923. EAST HOUSTON MANAGEMENT DISTRICT
20	14		SUBCHAPTER A. GENERAL PROVISIONS
21	15		Sec. 3923.0101. DEFINITIONS. In this chapter:
22	16		(1) "Board" means the district's board of directors.
23	17		(2) "City" means the City of Houston.
24	18		(3) "County" means Harris County.
25	19		(4) "Director" means a board member.
26	20		(5) "District" means the East Houston Management
27	21		District.
28	22		Sec. 3923.0102. CREATION AND NATURE OF DISTRICT. The
29	23		district is a special district created under Section 59, Article
30	24		XVI, Texas Constitution.
31	25		Sec. 3923.0103. CONFIRMATION ELECTION REQUIRED. (a) On
32		-	receipt of a petition signed by ~~at least 60 percent~~ of the owners of
33		-	~~real~~ property in the district according to the most recent
34		-	~~certified tax~~ appraisal roll for the county, the initial board
35		-	~~shall hold an~~ election to confirm the creation of the district in
36		-	~~the manner~~ provided by Subchapter D, Chapter 49, Water Code.
	26	+	receipt of a petition signed by a majority of the owners of real
	27	+	property in the district according to the most recent certified tax
	28	+	appraisal roll for the county, the initial board shall hold an
	29	+	election to confirm the creation of the district in the manner
	30	+	provided by Subchapter D, Chapter 49, Water Code.
37	31		(b) The board may not issue bonds or other obligations
38	32		unless the creation of the district is confirmed as provided by this
39	33		section.
40	34		Sec. 3923.0104. PURPOSE; LEGISLATIVE FINDINGS. (a) The
41	35		creation of the district is essential to accomplish the purposes of
42	36		Sections 52 and 52-a, Article III, and Section 59, Article XVI,
43	37		Texas Constitution, and other public purposes stated in this
44	38		chapter. By creating the district and in authorizing the city and
45	39		other political subdivisions to contract with the district, the
46	40		legislature has established a program to accomplish the public
47	41		purposes set out in Section 52-a, Article III, Texas Constitution.
48	42		(b) The creation of the district is necessary to promote,
49	43		develop, encourage, and maintain employment, commerce,
50	44		transportation, housing, tourism, recreation, the arts,
51	45		entertainment, economic development, safety, and the public
52	46		welfare in the district.
53	47		(c) The district is created to supplement and not to
54	48		supplant city services provided in the district.
55	49		Sec. 3923.0105. FINDINGS OF PUBLIC USE AND BENEFIT. (a)
56	50		The district is created to serve a public use and benefit.
57	51		(b) All land and other property included in the district
58	52		will benefit from the improvements and services to be provided by
59	53		the district under powers conferred by Sections 52 and 52-a,
60	54		Article III, and Section 59, Article XVI, Texas Constitution, and
61	55		other powers granted under this chapter.
62	56		(c) The creation of the district is in the public interest
63	57		and is essential to further the public purposes of:
64	58		(1) developing and diversifying the economy of the
65	59		state;
66	60		(2) eliminating unemployment and underemployment;
67	61		(3) developing or expanding transportation and
68	62		commerce; and
69	63		(4) providing quality residential housing.
70	64		(d) The district will:
71	65		(1) promote the health, safety, and general welfare of
72	66		residents, employers, potential employees, employees, visitors,
73	67		and consumers in the district, and of the public;
74	68		(2) provide needed funding for the district to
75	69		preserve, maintain, and enhance the economic health and vitality of
76	70		the district territory as a residential community and business
77	71		center; and
78	72		(3) promote the health, safety, welfare, and enjoyment
79	73		of the public by providing pedestrian ways and by landscaping,
80	74		removing graffiti from, and developing certain areas in the
81	75		district, which are necessary for the restoration, preservation,
82	76		and enhancement of scenic beauty.
83	77		(e) Pedestrian ways along or across a street, whether at
84	78		grade or above or below the surface, and street lighting, street
85	79		landscaping, vehicle parking, and street art objects are parts of
86	80		and necessary components of a street and are considered to be an
87	81		improvement project that includes a street or road improvement.
88	82		(f) The district will not act as the agent or
89	83		instrumentality of any private interest even though the district
90	84		will benefit many private interests as well as the public.
91	85		Sec. 3923.0106. DISTRICT TERRITORY. (a) The district is
92	86		initially composed of the territory described by Section 2 of the
93	87		Act enacting this chapter.
94	88		(b) The boundaries and field notes contained in Section 2 of
95	89		the Act enacting this chapter form a closure. A mistake in the
96	90		field notes or in copying the field notes in the legislative process
97	91		does not affect the district's:
98	92		(1) organization, existence, or validity;
99	93		(2) right to issue any type of bond for the purposes
100	94		for which the district is created or to pay the principal of and
101	95		interest on a bond;
102		-	(3) right to impose or collect an assessment; or
	96	+	(3) right to impose or collect an assessment or tax; or
103	97		(4) legality or operation.
104	98		Sec. 3923.0107. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
105	99		(a) All or any part of the area of the district is eligible to be
106	100		included in:
107	101		(1) a tax increment reinvestment zone created under
108	102		Chapter 311, Tax Code;
109	103		(2) a tax abatement reinvestment zone created under
110	104		Chapter 312, Tax Code;
111	105		(3) an enterprise zone created under Chapter 2303,
112	106		Government Code; or
113	107		(4) an industrial district created under Chapter 42,
114	108		Local Government Code.
115	109		(b) If the city creates a tax increment reinvestment zone
116	110		described by Subsection (a), the city and the board of directors of
117	111		the zone, by contract with the district, may grant money deposited
118	112		in the tax increment fund to the district to be used by the district
119	113		for the purposes permitted for money granted to a corporation under
120	114		Section 380.002(b), Local Government Code, including the right to
121	115		pledge the money as security for any bonds issued by the district
122	116		for an improvement project. A project may not receive public funds
123	117		under Section 380.002(b), Local Government Code, unless the project
124	118		has been approved by the governing body of the city.
125	119		Sec. 3923.0108. APPLICABILITY OF MUNICIPAL MANAGEMENT
126	120		DISTRICTS LAW. Except as otherwise provided by this chapter,
127	121		Chapter 375, Local Government Code, applies to the district.
128	122		Sec. 3923.0109. CONSTRUCTION OF CHAPTER. This chapter
129	123		shall be liberally construed in conformity with the findings and
130	124		purposes stated in this chapter.
131	125		SUBCHAPTER B. BOARD OF DIRECTORS
132	126		Sec. 3923.0201. GOVERNING BODY; TERMS. The district is
133	127		governed by a board of 11 directors who serve staggered terms of
134	128		four years, with five or six directors' terms expiring June 1 of
135	129		each odd-numbered year.
136	130		Sec. 3923.0202. QUALIFICATIONS OF DIRECTORS APPOINTED BY
137	131		CITY. To be qualified to serve as a director, a person must be:
138	132		(1) a resident of the district who is also a registered
139	133		voter of the district;
140	134		(2) an owner of stock or a partnership or membership
141	135		interest, whether beneficial or otherwise, of a corporate
142	136		partnership, limited liability company, or other entity owner of a
143	137		direct or indirect interest in property in the district; or
144	138		(3) an agent, employee, or tenant of a person
145	139		described by Subdivision (2).
146	140		Sec. 3923.0203. APPOINTMENT OF DIRECTORS; COMPOSITION OF
147	141		BOARD. (a) The governing body of the city shall appoint directors
148	142		from qualified persons recommended by the board.
149	143		(b) In making appointments under this section, the
150	144		governing body of the city shall ensure that:
151	145		(1) eight positions on the board are occupied by
152	146		persons described by Section 3923.0202(2) or (3); and
153	147		(2) three positions on the board are occupied by
154	148		persons described by Section 3923.0202(1).
155	149		Sec. 3923.0204. VACANCY. If a vacancy occurs on the board,
156	150		the remaining directors shall appoint a qualified director for the
157	151		remainder of the unexpired term.
158	152		Sec. 3923.0205. DIRECTOR'S OATH OR AFFIRMATION. (a) A
159	153		director shall file the director's oath or affirmation of office
160	154		with the district, and the district shall retain the oath or
161	155		affirmation in the district records.
162	156		(b) A director shall file a copy of the director's oath or
163	157		affirmation with the secretary of the city.
164	158		Sec. 3923.0206. QUORUM. A vacant director position is not
165	159		counted for purposes of establishing a quorum.
166	160		Sec. 3923.0207. OFFICERS. The board shall elect from among
167	161		the directors a chair, a vice chair, and a secretary. The offices
168	162		of chair and secretary may not be held by the same person.
169	163		Sec. 3923.0208. COMPENSATION; EXPENSES. (a) The district
170	164		may compensate each director in an amount not to exceed $50 for each
171	165		board meeting. The total amount of compensation a director may
172	166		receive each year may not exceed $2,000.
173	167		(b) A director is entitled to reimbursement for necessary
174	168		and reasonable expenses incurred in carrying out the duties and
175	169		responsibilities of the board.
176	170		Sec. 3923.0209. LIABILITY INSURANCE. The district may
177	171		obtain and pay for comprehensive general liability insurance
178	172		coverage from a commercial insurance company or other source that
179	173		protects and insures a director against personal liability and from
180	174		all claims relating to:
181	175		(1) actions taken by the director in the director's
182	176		capacity as a member of the board;
183	177		(2) actions and activities taken by the district; or
184	178		(3) the actions of others acting on behalf of the
185	179		district.
186	180		Sec. 3923.0210. NO EXECUTIVE COMMITTEE. The board may not
187	181		create an executive committee to exercise the powers of the board.
188	182		Sec. 3923.0211. BOARD MEETINGS. The board shall hold
189	183		meetings at a place accessible to the public.
190	184		Sec. 3923.0212. INITIAL DIRECTORS. (a) Not later than
191	185		October 1, 2019, the governing body of the city shall appoint
192	186		initial directors to the board. Of the initial directors appointed
193	187		under this subsection:
194	188		(1) three directors must be persons described by
195	189		Section 3923.0202(1); and
196	190		(2) eight directors must be persons described by
197	191		Section 3923.0202(2) or (3).
198	192		(b) The terms of the initial directors expire June 1, 2021.
199	193		(c) Of the directors who replace an initial director, the
200	194		terms of six directors must expire June 1, 2023, and the terms of
201	195		five directors must expire June 1, 2025.
202	196		(d) This section expires September 1, 2025.
203	197		SUBCHAPTER C. POWERS AND DUTIES
204	198		Sec. 3923.0301. GENERAL POWERS AND DUTIES. The district
205	199		has the powers and duties necessary to accomplish the purposes for
206	200		which the district is created.
207	201		Sec. 3923.0302. IMPROVEMENT PROJECTS AND SERVICES. The
208	202		district may provide, design, construct, acquire, improve,
209	203		relocate, operate, maintain, or finance an improvement project or
210	204		service using money available to the district, or contract with a
211	205		governmental or private entity to provide, design, construct,
212	206		acquire, improve, relocate, operate, maintain, or finance an
213	207		improvement project or service authorized under this chapter or
214	208		Chapter 375, Local Government Code.
215	209		Sec. 3923.0303. LOCATION OF IMPROVEMENT PROJECT. An
216	210		improvement project described by Section 3923.0302 may be located:
217	211		(1) in the district; or
218	212		(2) in an area outside but adjacent to the district if
219	213		the project is for the purpose of extending a public infrastructure
220	214		improvement beyond the district's boundaries to a logical terminus.
221	215		Sec. 3923.0304. DEVELOPMENT CORPORATION POWERS. The
222	216		district, using money available to the district, may exercise the
223	217		powers given to a development corporation under Chapter 505, Local
224	218		Government Code, including the power to own, operate, acquire,
225	219		construct, lease, improve, or maintain a project under that
226	220		chapter.
227	221		Sec. 3923.0305. NONPROFIT CORPORATION. (a) The board by
228	222		resolution may authorize the creation of a nonprofit corporation to
229	223		assist and act for the district in implementing a project or
230	224		providing a service authorized by this chapter.
231	225		(b) The nonprofit corporation:
232	226		(1) has each power of and is considered to be a local
233	227		government corporation created under Subchapter D, Chapter 431,
234	228		Transportation Code; and
235	229		(2) may implement any project and provide any service
236	230		authorized by this chapter.
237	231		(c) The board shall appoint the board of directors of the
238	232		nonprofit corporation. The board of directors of the nonprofit
239	233		corporation shall serve in the same manner as the board of directors
240	234		of a local government corporation created under Subchapter D,
241	235		Chapter 431, Transportation Code, except that a board member is not
242	236		required to reside in the district.
243	237		Sec. 3923.0306. AGREEMENTS; GRANTS. (a) As provided by
244	238		Chapter 375, Local Government Code, the district may make an
245	239		agreement with or accept a gift, grant, or loan from any person.
246	240		(b) The implementation of a project is a governmental
247	241		function or service for the purposes of Chapter 791, Government
248	242		Code.
249	243		Sec. 3923.0307. LAW ENFORCEMENT SERVICES. To protect the
250	244		public interest, the district may contract with a qualified party,
251	245		including the county or the city, to provide law enforcement
252	246		services in the district for a fee.
253	247		Sec. 3923.0308. MEMBERSHIP IN CHARITABLE ORGANIZATIONS.
254	248		The district may join and pay dues to a charitable or nonprofit
255	249		organization that performs a service or provides an activity
256	250		consistent with the furtherance of a district purpose.
257	251		Sec. 3923.0309. ECONOMIC DEVELOPMENT. (a) The district
258	252		may engage in activities that accomplish the economic development
259	253		purposes of the district.
260	254		(b) The district may establish and provide for the
261	255		administration of one or more programs to promote state or local
262	256		economic development and to stimulate business and commercial
263	257		activity in the district, including programs to:
264	258		(1) make loans and grants of public money; and
265	259		(2) provide district personnel and services.
266	260		(c) The district may create economic development programs
267	261		and exercise the economic development powers that:
268	262		(1) Chapter 380, Local Government Code, provides to a
269	263		municipality; and
270	264		(2) Subchapter A, Chapter 1509, Government Code,
271	265		provides to a municipality.
272	266		Sec. 3923.0310. CONCURRENCE ON ADDITIONAL POWERS. If the
273	267		legislature grants the district a power that is in addition to the
274	268		powers approved by the initial resolution of the governing body of
275	269		the city consenting to the creation of the district, the district
276	270		may not exercise that power unless the governing body of the city
277	271		consents to that change by resolution.
278		-	Sec. 3923.0311. NO AD VALOREM TAX. The district may not
279		-	impose an ad valorem tax.
280		-	Sec. 3923.0312. NO EMINENT DOMAIN POWER. The district may
	272	+	Sec. 3923.0311. NO EMINENT DOMAIN POWER. The district may
281	273		not exercise the power of eminent domain.
282	274		SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
283	275		Sec. 3923.0401. DISBURSEMENTS AND TRANSFERS OF MONEY. The
284	276		board by resolution shall establish the number of signatures and
285	277		the procedure required for a disbursement or transfer of the
286	278		district's money.
287	279		Sec. 3923.0402. MONEY USED FOR IMPROVEMENTS OR SERVICES.
288	280		The district may acquire, construct, finance, operate, or maintain
289	281		an improvement project or service authorized under this chapter or
290	282		Chapter 375, Local Government Code, using any money available to
291	283		the district for that purpose.
292	284		Sec. 3923.0403. GENERAL POWERS REGARDING PAYMENT OF
293	285		DISTRICT BONDS, OBLIGATIONS, OR OTHER COSTS. The district may
294	286		provide or secure the payment or repayment of any bond, note, or
295	287		other temporary or permanent obligation or reimbursement or other
296	288		contract with any person and the costs and expenses of the
297	289		establishment, administration, and operation of the district and
298	290		the district's costs or share of the costs or revenue of an
299	291		improvement project or district contractual obligation or
300	292		indebtedness by:
301		-	(1) the imposition of a sales and use tax or an
302		-	assessment, user fee, concession fee, or rental charge; or
	293	+	(1) the imposition of an ad valorem tax or sales and
	294	+	use tax or an assessment, user fee, concession fee, or rental
	295	+	charge; or
303	296		(2) any other revenue or resources of the district, or
304	297		other revenue authorized by the city, including revenues from a tax
305	298		increment reinvestment zone created by the city under applicable
306	299		law.
307	300		Sec. 3923.0404. PETITION REQUIRED FOR FINANCING SERVICES
308	301		AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
309	302		service or improvement project with assessments under this chapter
310	303		unless a written petition requesting that service or improvement
311	304		has been filed with the board.
312	305		(b) The petition must be signed by the owners of a majority
313	306		of the assessed value of real property in the district subject to
314	307		assessment according to the most recent certified tax appraisal
315	308		roll for the county.
316	309		Sec. 3923.0405. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
317	310		The board by resolution may impose and collect an assessment for any
318	311		purpose authorized by this chapter in all or any part of the
319	312		district.
320	313		(b) An assessment, a reassessment, or an assessment
321	314		resulting from an addition to or correction of the assessment roll
322	315		by the district, penalties and interest on an assessment or
323	316		reassessment, an expense of collection, and reasonable attorney's
324	317		fees incurred by the district:
325	318		(1) are a first and prior lien against the property
326	319		assessed;
327	320		(2) are superior to any other lien or claim other than
328	321		a lien or claim for county, school district, or municipal ad valorem
329	322		taxes; and
330	323		(3) are the personal liability of and a charge against
331	324		the owners of the property even if the owners are not named in the
332	325		assessment proceedings.
333	326		(c) The lien is effective from the date of the board's
334	327		resolution imposing the assessment until the date the assessment is
335		-	paid. The board may enforce the lien in the same manner that a
336		-	taxing unit, as that term is defined by Section 1.04, Tax Code, may
337		-	enforce an ad valorem tax lien against real property.
	328	+	paid. The board may enforce the lien in the same manner that the
	329	+	board may enforce an ad valorem tax lien against real property.
338	330		(d) The board may make a correction to or deletion from the
339	331		assessment roll that does not increase the amount of assessment of
340	332		any parcel of land without providing notice and holding a hearing in
341	333		the manner required for additional assessments.
342	334		Sec. 3923.0406. STORM WATER USER CHARGES. The district may
343	335		establish user charges related to the operation of storm water
344	336		facilities, including the regulation of storm water for the
345	337		protection of water quality in the district.
346	338		Sec. 3923.0407. NONPOTABLE WATER USER CHARGES. The
347	339		district may establish user charges for the use of nonpotable water
348	340		for irrigation purposes, subject to approval of the governing body
349	341		of the city.
350	342		Sec. 3923.0408. COSTS FOR IMPROVEMENT PROJECTS. The
351	343		district may undertake separately or jointly with other persons,
352	344		including the city or county, all or part of the cost of an
353	345		improvement project, including an improvement project:
354	346		(1) for improving, enhancing, and supporting public
355	347		safety and security, fire protection and emergency medical
356	348		services, and law enforcement in or adjacent to the district; or
357	349		(2) that confers a general benefit on the entire
358	350		district or a special benefit on a definable part of the district.
359		-	Sec. 3923.0409. ASSESSMENT ABATEMENTS. The ~~district may~~
360		-	designate reinvestment zones and may grant abatements of
361		-	~~assessments~~ on property in the zones.
	351	+	Sec. 3923.0409. TAX AND ASSESSMENT ABATEMENTS. The
	352	+	district may designate reinvestment zones and may grant abatements
	353	+	of a tax or assessment on property in the zones.
362	354		Sec. 3923.0410. PROPERTY EXEMPT FROM IMPACT FEES. The
363	355		district may not impose an impact fee on a residential property,
364	356		including a multiunit residential property, or a condominium.
365	357		Sec. 3923.0411. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
366	358		ASSESSMENTS AND FEES. The district may not impose an assessment,
367	359		impact fee, or standby fee on the property, including the
368	360		equipment, rights-of-way, easements, facilities, or improvements,
369	361		of:
370	362		(1) an electric utility or a power generation company
371	363		as defined by Section 31.002, Utilities Code;
372	364		(2) a gas utility, as defined by Section 101.003 or
373	365		121.001, Utilities Code, or a person who owns pipelines used for the
374	366		transportation or sale of oil or gas or a product or constituent of
375	367		oil or gas;
376	368		(3) a person who owns pipelines used for the
377	369		transportation or sale of carbon dioxide;
378	370		(4) a telecommunications provider as defined by
379	371		Section 51.002, Utilities Code; or
380	372		(5) a cable service provider or video service provider
381	373		as defined by Section 66.002, Utilities Code.
382	374		SUBCHAPTER E. TAXES AND BONDS
383		-	Sec. 3923.0501. SALES AND USE TAX. (a) The district may
	375	+	Sec. 3923.0501. TAX ABATEMENT. The district may enter into
	376	+	a tax abatement agreement in accordance with the general laws of
	377	+	this state authorizing and applicable to a tax abatement agreement
	378	+	by a municipality.
	379	+	Sec. 3923.0502. PROPERTY TAX AUTHORIZED. (a) The district
	380	+	may impose an ad valorem tax on all taxable property in the district
	381	+	to:
	382	+	(1) pay for an improvement project of the types
	383	+	authorized by Section 52(b), Article III, and Section 59, Article
	384	+	XVI, Texas Constitution; or
	385	+	(2) secure the payment of bonds issued for a purpose
	386	+	described by Subdivision (1).
	387	+	(b) The district may not impose an ad valorem tax to pay for
	388	+	an improvement project under this chapter unless the imposition is
	389	+	approved by the voters of the district voting at an election held
	390	+	for that purpose. The board may call an election to approve the
	391	+	imposition of an ad valorem tax to pay for an improvement project
	392	+	under this chapter only if the board receives a petition requesting
	393	+	the election signed by:
	394	+	(1) more than 51 percent of the record owners of real
	395	+	property in the district subject to taxation; or
	396	+	(2) owners representing more than 51 percent of the
	397	+	appraised value of real property in the district subject to
	398	+	taxation, as determined by the tax rolls of the appraisal district.
	399	+	Sec. 3923.0503. SALES AND USE TAX. (a) The district may
384	400		impose a sales and use tax if authorized by a majority of the voters
385	401		of the district voting at an election called for that purpose.
386		-	Revenue from the tax may be used for any district purpose.
	402	+	Revenue from the tax may be used for any purpose for which ad
	403	+	valorem tax revenue of the district may be used.
387	404		(b) The district may not adopt a sales and use tax if as a
388	405		result of the adoption of the tax the combined rate of all sales and
389	406		use taxes imposed by the district and other political subdivisions
390	407		of this state having territory in the district would exceed two
391	408		percent at any location in the district.
392	409		(c) If the voters of the district approve the adoption of
393	410		the tax at an election held on the same election date on which
394	411		another political subdivision adopts a sales and use tax or
395	412		approves an increase in the rate of its sales and use tax and as a
396	413		result the combined rate of all sales and use taxes imposed by the
397	414		district and other political subdivisions of this state having
398	415		territory in the district would exceed two percent at any location
399	416		in the district, the election to adopt a sales and use tax under
400	417		this chapter has no effect.
401		-	Sec. 3923.~~0502~~. BONDS AND OTHER OBLIGATIONS. (a) The
	418	+	Sec. 3923.0504. BONDS AND OTHER OBLIGATIONS. (a) The
402	419		district may issue, by public or private sale, bonds, notes, or
403		-	other obligations payable wholly or partly from sales and use taxes
404		-	or assessments in the manner provided by Subchapter A, Chapter 372,
405		-	or Subchapter J, Chapter 375, Local Government Code.
	420	+	other obligations payable wholly or partly from ad valorem taxes,
	421	+	sales and use taxes, or assessments in the manner provided by
	422	+	Subchapter A, Chapter 372, or Subchapter J, Chapter 375, Local
	423	+	Government Code.
406	424		(b) In exercising the district's borrowing power, the
407	425		district may issue a bond or other obligation in the form of a bond,
408	426		note, certificate of participation or other instrument evidencing a
409	427		proportionate interest in payments to be made by the district, or
410	428		other type of obligation.
411	429		(c) In addition to the sources of money described by
412	430		Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
413	431		Government Code, district bonds may be secured and made payable
414	432		wholly or partly by a pledge of any part of the money the district
415	433		receives from improvement revenue or from any other source.
416		-	Sec. 3923.~~0503~~. BOND MATURITY. Bonds may mature not more
	434	+	Sec. 3923.0505. BOND MATURITY. Bonds may mature not more
417	435		than 40 years from their date of issue.
	436	+	Sec. 3923.0506. TAXES FOR BONDS AND OTHER OBLIGATIONS. At
	437	+	the time bonds or other obligations payable wholly or partly from ad
	438	+	valorem taxes are issued:
	439	+	(1) the board shall impose a continuing direct annual
	440	+	ad valorem tax for each year that all or part of the bonds are
	441	+	outstanding; and
	442	+	(2) the district annually shall impose an ad valorem
	443	+	tax on all taxable property in the district in an amount sufficient
	444	+	to:
	445	+	(A) pay the interest on the bonds or other
	446	+	obligations as the interest becomes due; and
	447	+	(B) create a sinking fund for the payment of the
	448	+	principal of the bonds or other obligations when due or the
	449	+	redemption price at any earlier required redemption date.
418	450		SUBCHAPTER F. DISSOLUTION
419		-	Sec. 3923.0601. DISSOLUTION BY CITY ORDINANCE. The city by
420		-	ordinance may dissolve the district.
421		-	Sec. 3923.0602. DISSOLUTION BY BOARD OR PETITION. The
422		-	board:
	451	+	Sec. 3923.0601. DISSOLUTION BY CITY ORDINANCE. (a) Except
	452	+	as provided by Subsection (b), the city by ordinance may dissolve
	453	+	the district.
	454	+	(b) The city may not dissolve the district until the
	455	+	district's outstanding debt or contractual obligations that are
	456	+	payable from ad valorem taxes have been repaid or discharged, or the
	457	+	city has affirmatively assumed the obligation to pay the
	458	+	outstanding debt from city revenue.
	459	+	Sec. 3923.0602. DISSOLUTION BY BOARD OR PETITION. (a)
	460	+	Except as provided by Subsection (b), the board:
423	461		(1) may dissolve the district; and
424	462		(2) shall dissolve the district on receipt of a
425	463		written petition requesting dissolution signed by a majority of the
426	464		owners of real property in the district.
	465	+	(b) The board may not dissolve the district until the
	466	+	district's outstanding debt or contractual obligations that are
	467	+	payable from ad valorem taxes have been repaid or discharged, or the
	468	+	city has affirmatively assumed the obligation to pay the
	469	+	outstanding debt from city revenue.
427	470		Sec. 3923.0603. COLLECTION OF ASSESSMENTS AND OTHER
428	471		REVENUE. (a) If the dissolved district has bonds or other
429	472		obligations outstanding secured by and payable from assessments or
430		-	other revenue, the city shall succeed ~~to the rights and obligations~~
431		-	of the district regarding enforcement ~~and collection of the~~
432		-	assessments or other revenue.
	473	+	other revenue, other than ad valorem taxes, the city shall succeed
	474	+	to the rights and obligations of the district regarding enforcement
	475	+	and collection of the assessments or other revenue.
433	476		(b) The city shall have and exercise all district powers to
434	477		enforce and collect the assessments or other revenue to pay:
435	478		(1) the bonds or other obligations when due and
436	479		payable according to their terms; or
437	480		(2) special revenue or assessment bonds or other
438	481		obligations issued by the city to refund the outstanding bonds or
439	482		obligations.
440	483		Sec. 3923.0604. ASSUMPTION OF ASSETS AND LIABILITIES. (a)
441	484		After the district is dissolved, the city assumes, subject to the
442	485		appropriation and availability of funds, the obligations of the
443	486		district, including any bonds or other debt payable from
444	487		assessments or other district revenue.
445	488		(b) After the district is dissolved, the board shall
446	489		transfer ownership of all district property to the city.
447	490		SECTION 2. The East Houston Management District initially
448	491		includes all the territory contained in the following area:
449	492		The described area is +/- 2,438 acres (3.81 sq. miles) in size and
450	493		is centered on Market Street and N. Wayside Drive in East Houston.
451	494		The area is generally bounded by N. McCarty St., Amtrak Rail Spur
452	495		and MNCW Railway on the east, Clinton Dr. & Greater East End
453	496		District on the south, Southern Pacific Railway on the west and
454	497		Wallisville Rd. on the north.
455	498		Beginning at a point where the right-of-way (ROW) centerline of
456	499		Wallisville Road intersects with the ROW centerline of N. McCarty
457	500		St. then southwest and south along ROW centerline of N. McCarty
458	501		St. to a point west of northwest corner of 12.85 acre tract (ABST 8
459	502		J BROWN TR 15);
460	503		Then east along north boundary of said 12.85 acre tract, 0.8562 acre
461	504		tract (GLENDALE TR 25A-1), and 6.8903 acre tract (GLENDALE TRS
462	505		25C-2 & 29D & 29H) to west easement of HB&T rail spur;
463	506		Then generally southeast and south along west easement of HB&T rail
464	507		spur and east boundary of 2.644 acre tract (GLENDALE TR 29B),
465	508		12.3965 acre tract (GLENDALE TRS 25C 29 29D & 33A), 8.0352 acre
466	509		tract (GLENDALE TRS 33D), and 0.6528 acre tract (GLENDALE TRS 33C &
467	510		33E) to south ROW of Munn St.;
468	511		Then west along south ROW of Munn St. to northeast corner of 0.1148
469	512		acre parcel (PORT HOUSTON NS LT 8 BLK 36);
470	513		Then south along east boundary of said 0.1148 acre parcel, and east
471	514		boundary of PORT HOUSTON NS Subdivision to southeast corner of
472	515		0.8035 acre parcel (PORT HOUSTON NS LTS 6 THRU 11 & TRS 5B & 12B BLK
473	516		61);
474	517		Then west along south boundary of said 0.8035 acre parcel to a point
475	518		north of northeast corner of 0.1148 acre parcel (PORT HOUSTON NS TR
476	519		R20 BLK 62);
477	520		Then south across ROW of Tuffly St., and along east boundary of
478	521		0.1148 acre parcel (PORT HOUSTON NS TR R20 BLK 62), and east
479	522		boundary of PORT HOUSTON NS TR R20 BLK 67, TR R20 BLK 68, TR R20 BLK
480	523		73, TR R20 BLK 74, TR R20 BLK 80, TR R20 BLK 81 and TR R20 BLK 84 to
481	524		south easement of a HB&T railway;
482	525		Then southeast and east along south easement of HB&T railway to ROW
483	526		centerline of Interstate Hwy 610 E;
484	527		Then south along ROW centerline of Interstate Hwy 610 E to ROW
485	528		centerline of Clinton Dr. and coincident boundary line of Greater
486	529		East End District (East End Boundary);
487	530		Then northwest along ROW centerline of Clinton Dr. and East End
488	531		Boundary to west ROW of Dorsett St.;
489	532		Then north along west ROW of Dorsett St. and East End Boundary to
490	533		south ROW of Tilgham St.;
491	534		Then west along south ROW of Tilgham St. and East End Boundary to
492	535		east ROW of Labco St.;
493	536		Then north along east ROW of Labco St. and East End Boundary to
494	537		south ROW of Market St.;
495	538		Then generally east along south ROW of Market St. and East End
496	539		Boundary to east ROW of Dorsett St.;
497	540		Then north along east ROW of Dorsett St. and East End Boundary to
498	541		ROW centerline of Lyons Ave.;
499	542		Then west along ROW centerline of Lyons Ave. and East End Boundary
500	543		to ROW centerline of Crown St.;
501	544		Then south along ROW centerline of Crown St. and East End Boundary
502	545		to ROW centerline of Market St.;
503	546		Then generally east along ROW centerline of Market St. and East End
504	547		Boundary to west ROW of N. Wayside Dr./US 90-A Hwy West
505	548		(southbound);
506	549		Then south across ROW of N. Wayside Dr. and along East End Boundary
507	550		line to north easement of Amtrak Railway;
508	551		Then northwest along north easement of Amtrak Railway and East End
509	552		Boundary line to ROW centerline of Clinton Dr.;
510	553		Then generally west and west northwest along ROW centerline of
511	554		Clinton Dr. and East End Boundary line to east ROW of Lockwood Dr.;
512	555		Then north along east ROW of Lockwood Dr. to south easement
513	556		Southern Pacific Railway;
514	557		Then east southeast along south easement of Southern Pacific
515	558		Railway to a point northeast of northeast corner of 1.0752 acre
516	559		parcel (GOLDEN TEX RES A) and railway split;
517	560		Then generally northeast and north along east easement of Southern
518	561		Pacific Railway to ROW centerline of Wallisville Road;
519	562		Then east and east northeast along ROW centerline of Wallisville
520	563		Road to west ROW of N. McCarty St. and beginning point of +/- 2,438
521	564		acre tract.
522	565		Save and except tract located at 1320 Boyles St. and being a tract
523	566		of land containing 22,541 square feet (called 22,546 square feet)
524	567		situated in the W.P. Harris and Robert Wilson Survey, Abstract
525	568		No. 32, City of Houston, Harris County, Texas, and being more
526	569		particularly described by metes and bounds as follows:
527	570		COMMENCING at a 5/8-inch iron rod found at the intersection of the
528	571		centerline of Palestine Street (60 feet wide) with the centerline
529	572		of Boyles Street (60 feet wide);
530	573		THENCE South 00 deg. 02 min. 30 sec. West along the centerline of
531	574		said Boyles Street, a distance of 1035.85 (called 1034.97');
532	575		THENCE WEST, a distance of 30.00 feet to a 1/2-inch iron rod found
533	576		for the Southeast corner and POINT OF BEGINNING of the herein
534	577		described 22,541 square foot parcel, said corner also being the
535	578		Northeast corner of that 46,859 square foot parcel described in
536	579		Harris County Clerk's File No. N442918;
537	580		THENCE continuing WEST along the North line of said 46,859 square
538	581		foot parcel, a distance of 225.37 feet to a 5/8-inch iron rod found
539	582		for the Southwest corner, same being the Northwest corner of said
540	583		46,859 square foot parcel, in the East line of a 43 foot wide
541	584		easement conveyed to Houston Belt and Terminal Railway Company and
542	585		Texas and New Orleans Railroad Company;
543	586		THENCE North along the East line of said 43 foot wide railroad
544	587		easement, a distance of 100.00 feet to a 5/8-inch iron rod found for
545	588		the Northwest corner, same being the Southwest corner of a 50' x
546	589		225,3' tract described in Harris County Clerk's File No. K935912;
547	590		THENCE EAST along the South line of said 50' x 225.3' tract, a
548	591		distance of 225.44 feet (called225.46') to a 5/8-inch iron rod
549	592		found for the Northeast corner in the West right-of-way line of said
550	593		Boyles Street;
551	594		THENCE South 00 deg. 02 min. 30 sec. West along the West line of said
552	595		Boyles Street, a distance of 100.00 feet to the POINT OF BEGINNING
553	596		of 22,541 sq. foot Save and except tract.
554	597		Save and except tract located at 1335 Boyles St. and being a 4.4067
555	598		acre tract of land situated in the City of Houston, Harris County,
556	599		Texas, and out of the Harris and Wilson Two-League Grant, Abstract
557	600		32, also being the same tract of land described in the Deed of Trust
558	601		Recorded in Harris County Clerk's File No. K920750, said 4.4067
559	602		acre tract of land being more particularly described by metes and
560	603		bounds as follows:
561	604		COMMENCING at a bolt found for the centerline intersection of
562	605		Palestine Street (a 30 foot right-of-way) with Boyles Street (a 60
563	606		foot right-of-way);
564	607		THENCE with the centerline of Boyles Street, South 00 degrees 00
565	608		minutes 00 seconds east, a distance of 915.78 feet to a point for
566	609		corner;
567	610		THENCE North 90 degrees 00 minutes 00 seconds east, a distance of30
568	611		feet to a 5/8 inch iron ROD found in the easterly right-of-way line
569	612		of Boyles Street for the point of beginning and being the northwest
570	613		comer of the herein described tract;
571	614		THENCE North 90 degrees 00 minutes 00 seconds east, a distance of
572	615		225.96 feet to a 5/8 inch iron rod set for the northeast comer of the
573	616		herein described tract;
574	617		THENCE South 00 degrees 00 minutes 00 seconds east, along the west
575	618		line of a 40 foot wide joint railroad easement, a distance of 788.02
576	619		feet to a 5/8 inch iron rod set for the point of curvature of curve
577	620		to the right having a radius of 361.56 feet;
578	621		THENCE with said curve to the right through a central angle of 09
579	622		degrees 52 minutes 14 seconds, an arc distance of 62.29 feet to a
580	623		5/8 inch iron rod set for the southeast corner of the herein
581	624		described tract;
582	625		THENCE South 90 degrees 00 minutes 00 seconds west, a distance of
583	626		220.61 feet to a 5/8 inch iron rod found for corner in the easterly
584	627		right-of-way line of Boyles Street;
585	628		THENCE with the easterly right-of-way line of Boyles Street, north
586	629		00 degrees 00 minutes 00 seconds west, a distance of 850.00 feet to
587	630		the point of beginning of 4.4067 acre (191,956 square feet) Save and
588	631		except tract.
589	632		Save and except tract located at 5719 Clinton Drive and being a
590	633		2.141 acre (93,244 square foot) tract situated in the Harris and
591	634		Wilson Two League Grant, Abstract No. 32, Houston, Harris County,
592	635		Texas, and being all of that certain called 2.1405 acre tract
593	636		conveyed to Hai I Nguyen and Nga T Nguyen, described in Warranty
594	637		Deed filed under County Clerk's File No U195916, Film Code No. 530-
595	638		37- 1359 of the Official Public Records of Real Property of Harris
596	639		County, Texas, said 2.141 acre tract being more particularly
597	640		described by metes and bounds as follows, with the basis of bearings
598	641		being the deed calls for said 2.1405 acre tract:
599	642		BEGINNING at a 3-inch galvanized pipe fence post marking the
600	643		southeast corner of said 2.1405 acre tract, and also being the
601	644		intersection of the northeast right-of-way line of Clinton Drive
602	645		(120 foot width) and the northwest right-of-way line of Kress
603	646		Street (80 foot width - unimproved};
604	647		THENCE North 71 deg. 10 min. 3O sec. West, with the southwest line
605	648		of said 2.1405 acre tract, some being the said northeast right- of-
606	649		way line of Clinton Drive, a distance of 375.00 feet to a 5/8-inch
607	650		iron rod with cap {stamped "Weisser Eng., Houston, TX") set marking
608	651		the southwest comer of said 2.1405 acre tract, some being the
609	652		southeast corner of that certain called 37,297.5 square foot tract
610	653		conveyed to The 117 Corporation, described in Deed filed under
611	654		County Clerk's File No. D242296, Film Code No. 124-21-0871 of said
612	655		Official Public Records, and from which a 3-inch galvanized pipe
613	656		fence post found bears South 67 deg. 03 min East, 0.91 feet;
614	657		THENCE North 18 deg. 49 min 30 sec. East, with the northwest line of
615	658		said 2.1405 acre tract, some being the southeast line of said
616	659		37,297.5 square foot tract. a distance of 248.65 feet to o 5/8-inch
617	660		iron rod found marking the northwest corner of so1d 2.1405 acre
618	661		tract, same being the northeast corner of said 37,297.5 square foot
619	662		tract, and being in the southwest line of the Southern Pacific
620	663		Railroad right-of-way;
621	664		THENCE South 71 deg, 10 min. 30 sec. East, with the northeast line
622	665		of said 2.1405 acre tract, same being the said southwest line of the
623	666		Southern Pacific Railroad right-of-way, o distance of 375.00 feet
624	667		to the northeast comer of said 2.1405 acre tract. same being the
625	668		northwest terminus of said Kress Street, from which a 5/8-inch iron
626	669		rod found bears South 28 deg. 29 min. East, 0.27 feet;
627	670		THENCE South 18 deg. 49 min. 30 sec. West, with the southeast
628	671		line of said 2.1405 acre tract, some being the said northwest
629	672		right-of-way line of Kress Street. a distance of 248.65 feet to the
630	673		POINT OF BEGINNING of 2.141 acres (93,244 square feet) Save and
631	674		except tract.
632	675		SECTION 3. (a) The legal notice of the intention to
633	676		introduce this Act, setting forth the general substance of this
634	677		Act, has been published as provided by law, and the notice and a
635	678		copy of this Act have been furnished to all persons, agencies,
636	679		officials, or entities to which they are required to be furnished
637	680		under Section 59, Article XVI, Texas Constitution, and Chapter 313,
638	681		Government Code.
639	682		(b) The governor, one of the required recipients, has
640	683		submitted the notice and Act to the Texas Commission on
641	684		Environmental Quality.
642	685		(c) The Texas Commission on Environmental Quality has filed
643	686		its recommendations relating to this Act with the governor,
644	687		lieutenant governor, and speaker of the house of representatives
645	688		within the required time.
646	689		(d) All requirements of the constitution and laws of this
647	690		state and the rules and procedures of the legislature with respect
648	691		to the notice, introduction, and passage of this Act have been
649	692		fulfilled and accomplished.
650	693		SECTION 4. This Act takes effect immediately if it receives
651	694		a vote of two-thirds of all the members elected to each house, as
652	695		provided by Section 39, Article III, Texas Constitution. If this
653	696		Act does not receive the vote necessary for immediate effect, this
654	697		Act takes effect September 1, 2019.
655		-	* * * * *