By: Coleman (Senate Sponsor - Whitmire) H.B. No. 4703
(In the Senate - Received from the House May 6, 2019;
May 6, 2019, read first time and referred to Committee on
Intergovernmental Relations; May 19, 2019, reported adversely,
with favorable Committee Substitute by the following vote: Yeas 7,
Nays 0; May 19, 2019, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4703 By: Alvarado
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Harris County Improvement District
No. 28; providing authority to issue bonds; providing authority to
impose assessments, fees, and taxes.
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 3987 to read as follows:
CHAPTER 3987. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 28
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3987.0101. 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 Harris County Improvement
District No. 28.
Sec. 3987.0102. NATURE OF DISTRICT. The Harris County
Improvement District No. 28 is a special district created under
Section 59, Article XVI, Texas Constitution.
Sec. 3987.0103. 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.
(b) By creating the district and in authorizing the city 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.
(c) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district.
(d) This chapter and the creation of the district may not be
interpreted to relieve the city 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 services provided in the
district.
Sec. 3987.0104. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
(a) 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.
(b) The district is created to serve a public use and
benefit.
(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 and business center;
(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, and
recreational facilities 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. 3987.0105. INITIAL DISTRICT TERRITORY. (a) The
district is initially composed of the territory described by
Section 2 of the Act enacting this chapter.
(b) The boundaries and field notes contained in Section 2 of
the Act enacting this chapter form a closure. A mistake in the
field notes or in copying the field notes in the legislative process
does not affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bonds for the purposes
for which the district is created or to pay the principal of and
interest on the bonds;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3987.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
All or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created under
Chapter 311, Tax Code; or
(2) a tax abatement reinvestment zone created under
Chapter 312, Tax Code.
Sec. 3987.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3987.0108. 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. 3987.0201. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five voting directors who serve staggered
terms of four years, with two or three directors' terms expiring
June 1 of each odd-numbered year.
(b) The board by resolution may change the number of voting
directors on the board if the board determines that the change is in
the best interest of the district. The board may not consist of
fewer than 5 or more than 15 voting directors.
Sec. 3987.0202. APPOINTMENT OF VOTING DIRECTORS. 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,
including the mayor, vote to appoint that person.
Sec. 3987.0203. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Sec. 3987.0204. 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.
Sec. 3987.0205. COMPENSATION. A director is entitled to
receive fees of office and reimbursement for actual expenses as
provided by Section 49.060, Water Code. Sections 375.069 and
375.070, Local Government Code, do not apply to the board.
Sec. 3987.0206. INITIAL VOTING DIRECTORS. (a) The initial
board consists of the following voting directors:
Pos. No. Name of Director Pos. No. Name of Director
Pos. No. Name of Director
1 Robert Tautenhahn 1 Robert Tautenhahn
1 Robert Tautenhahn
2 Juan Carlos Herrera 2 Juan Carlos Herrera
2 Juan Carlos Herrera
3 Jack Chaluh 3 Jack Chaluh
3 Jack Chaluh
4 Maewel Ghebremichael 4 Maewel Ghebremichael
4 Maewel Ghebremichael
5 Jarret Ewing 5 Jarret Ewing
5 Jarret Ewing
(b) Of the initial directors, the terms of directors
appointed for positions one through three expire June 1, 2021, and
the terms of directors appointed for positions four and five expire
June 1, 2023.
(c) Section 3987.0202 does not apply to this section.
(d) This section expires September 1, 2023.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3987.0301. GENERAL POWERS AND DUTIES. The district
has the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3987.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) The
district, using any money available to the district for the
purpose, may 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.
(b) The district may contract with a governmental or private
entity to carry out an action under Subsection (a).
(c) The implementation of a district project or service is a
governmental function or service for the purposes of Chapter 791,
Government Code.
Sec. 3987.0303. 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 to be a local
government corporation created under Subchapter D, Chapter 431,
Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(c) The board shall appoint the board of directors of the
nonprofit corporation. The board of directors of the nonprofit
corporation shall serve in the same manner as the board of directors
of a local government corporation created under Subchapter D,
Chapter 431, Transportation Code, except that a board member is not
required to reside in the district.
Sec. 3987.0304. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the city, to provide law enforcement services in the
district for a fee.
Sec. 3987.0305. 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. 3987.0306. ECONOMIC DEVELOPMENT PROGRAMS. (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. 3987.0307. PARKING FACILITIES. (a) The district may
acquire, lease as lessor or lessee, construct, develop, own,
operate, and maintain parking facilities or a system of parking
facilities, including lots, garages, parking terminals, or other
structures or accommodations for parking motor vehicles off the
streets and related appurtenances.
(b) The district's parking facilities serve the public
purposes of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term of
years.
(c) The district's parking facilities are parts of and
necessary components of a street and are considered to be a street
or road improvement.
(d) The development and operation of the district's parking
facilities may be considered an economic development program.
Sec. 3987.0308. ADDING OR EXCLUDING LAND. The district may
add or exclude land in the manner provided by Subchapter J, Chapter
49, Water Code, or by Subchapter H, Chapter 54, Water Code.
Sec. 3987.0309. 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. 3987.0310. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. ASSESSMENTS
Sec. 3987.0401. PETITION REQUIRED FOR FINANCING SERVICES
AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by
the owners of at least 60 percent 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. 3987.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(c) The lien is effective from the date of the board's
resolution imposing the assessment until the date the assessment is
paid. The board may enforce the lien in the same manner that the
board may enforce an ad valorem tax lien against real property.
(d) The board may make a correction to or deletion from the
assessment roll that does not increase the amount of assessment of
any parcel of land without providing notice and holding a hearing in
the manner required for additional assessments.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3987.0501. TAX ELECTION REQUIRED. The district must
hold an election in the manner provided by Chapter 49, Water Code,
or, if applicable, Chapter 375, Local Government Code, to obtain
voter approval before the district may impose an ad valorem tax.
Sec. 3987.0502. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election under Section 3987.0501, the district may impose an
operation and maintenance tax on taxable property in the district
in the manner provided by Section 49.107, Water Code, for any
district purpose, including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the operation and maintenance
tax rate. The rate may not exceed the rate approved at the
election.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Sec. 3987.0503. 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 ad valorem taxes,
assessments, impact fees, revenue, contract payments, grants, or
other district money, or any combination of those sources of money,
to pay for any authorized district purpose.
(c) The limitation on the outstanding principal amount of
bonds, notes, or other obligations provided by Section 49.4645,
Water Code, does not apply to the district.
Sec. 3987.0504. BONDS SECURED BY REVENUE OR CONTRACT
PAYMENTS. The district may issue, without an election, bonds
secured by:
(1) revenue other than ad valorem taxes, including
contract revenues; or
(2) contract payments, provided that the requirements
of Section 49.108, Water Code, have been met.
Sec. 3987.0505. BONDS SECURED BY AD VALOREM TAXES;
ELECTIONS. (a) If authorized at an election under Section
3987.0501, the district may issue bonds payable from ad valorem
taxes only to purchase, construct, acquire, own, operate, repair,
improve, or extend facilities and improvements for and in support
of:
(1) parking as described by Section 3987.0307;
(2) parks and recreational facilities, including:
(A) parks, landscaping, and greenbelts;
(B) sidewalks and trails;
(C) pedestrian crosswalks, bridges, and tunnels;
(D) public right-of-way beautification projects;
(E) plazas, pedestrian malls, and places of
public assembly;
(F) lighting, banners, and signs;
(G) works of art; and
(H) recreational equipment and facilities; and
(3) water, sewer, drainage, and road facilities and
improvements.
(b) Section 375.243, Local Government Code, does not apply
to the district.
(c) At the time the district issues bonds payable wholly or
partly from ad valorem taxes, the board shall provide for the annual
imposition of a continuing direct annual ad valorem tax, without
limit as to rate or amount, for each year that all or part of the
bonds are outstanding as required and in the manner provided by
Sections 54.601 and 54.602, Water Code.
(d) All or any part of any facilities or improvements that
may be acquired by a district by the issuance of its bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
Sec. 3987.0506. CONSENT OF MUNICIPALITY REQUIRED. (a) The
board may not issue bonds until each municipality in whose
corporate limits or extraterritorial jurisdiction the district is
located has consented by ordinance or resolution to the creation of
the district and to the inclusion of land in the district.
(b) This section applies only to the district's first
issuance of bonds payable from ad valorem taxes.
Sec. 3987.0507. 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.
Sec. 3987.0508. CONFIRMATION ELECTION REQUIRED. The
district must hold an election to confirm the creation of the
district before the district may impose an ad valorem tax or issue
bonds payable from ad valorem taxes.
SUBCHAPTER I. DISSOLUTION
Sec. 3987.0901. DISSOLUTION. (a) The board shall dissolve
the district on written petition filed with the board by the owners
of:
(1) 66 percent or more of the assessed value of the
property subject to assessment by the district based on the most
recent certified county property tax rolls; or
(2) 66 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 by the district according to the most recent certified
county property tax rolls.
(b) The board by majority vote may dissolve the district at
any time.
(c) The district may not be dissolved by its board under
Subsection (a) or (b) if the district:
(1) has any outstanding bonded indebtedness until that
bonded indebtedness has been repaid or defeased in accordance with
the order or resolution authorizing the issuance of the bonds;
(2) has a contractual obligation to pay money until
that obligation has been fully paid in accordance with the
contract; or
(3) owns, operates, or maintains public works,
facilities, or improvements unless the district contracts with
another person for the ownership, operation, or maintenance of the
public works, facilities, or improvements.
(d) Sections 375.261, 375.262, and 375.264, Local
Government Code, do not apply to the district.
SECTION 2. The Harris County Improvement District No. 28
initially includes all territory contained in the following area:
Being a tract or parcel, containing 6.011 acres (261,835
square feet) of land, situated in the John Austin Two League Grant,
Abstract Number 1, City of Houston, Harris County, Texas, and being
all of Unrestricted Reserve "A" and part of and out of Unrestricted
Reserve "B", Block 1, CWA GILLETTE STREET, a plat of subdivision
recorded under Film Code Number 657260, Map Records of Harris
County, Texas (M.R.H.C.); also being all that certain called 6.011
acres described in deed to Westcreek HTX Real Estate Partners-D,
L.P. (herein referred to as the "Westcreek Tract"), as recorded
under County Clerk's File (C.C.F.) Number 20150175209, Official
Public Records of Real Property of Harris County, Texas
(O.P.R.R.P.H.C.); the herein described 6.011 acre tract being more
particularly described by metes and bounds as follows (bearings
herein are grid bearings based on the Texas State Plane Coordinate
System, South Central Zone, NAD 83, as evidenced on said
subdivision plat of CWA GILLETTE STREET; distances are surface
distances based on the U.S. Survey Foot and may be converted to grid
by multiplying by a combined scale factor of 0.999890843):
BEGINNING at a 5/8-inch iron rod with plastic cap, stamped
"TERRA SURVEYING", set marking the intersection of the south
right-of-way (R.O.W.) line of Allen Parkway (public), based on a
195-foot width, with the east R.O.W. line of Gillette Street
(public), based on a 60-foot width; both street rights-of-way being
part of and out of the remainder of that certain called 48.78 acres
described in deed to City of Houston, as recorded in Volume 372,
Page 235, Deed Records of Harris County, Texas; also, the alignment
of said street rights-of-way are depicted on City File Room
Drawings 6064 and 9387 for Allen Parkway, and 8064 and 36778 for
Gillette Street; said iron rod also marking the northwest corner of
said Westcreek Tract, said Unrestricted Reserve "A", and the herein
described tract;
THENCE, North 87°38'58" East, with the south R.O.W. line of
said Allen Parkway, a distance of 387.79 feet to a 3/4-inch iron rod
found marking the northwest corner of Reserve "A", Block 1, ALLEN
PARKWAY VILLAGE, a plat of subdivision recorded under Film Code
Number 428006, M.R.H.C.; said iron rod also marking the northeast
corner of said Westcreek Tract, said Unrestricted Reserve "A", and
the herein described tract, from which a 5/8-inch iron rod found for
reference bears South 84°04' West, 2.40 feet;
THENCE, South 02°19'25" East, departing said south R.O.W.
line with the west line of said Reserve "A", and the east line of
said Westcreek Tract and said Unrestricted Reserve "A", at 373.40
feet pass a 3/4-inch iron rod found marking the most easterly common
corner of the aforesaid Unrestricted Reserves "A" and "B";
continuing, with said west line, and the east line of said Westcreek
Tract and said Unrestricted Reserve "B", a total distance of 675.57
feet to a 5/8-inch iron rod with plastic cap, stamped "TERRA
SURVEYING", set marking the southeast corner of said Westcreek
Tract and the herein described tract;
THENCE, South 87°38'09" West, across said Unrestricted
Reserve "B" with the south line of said Westcreek Tract, a distance
of 387.31 feet to a 5/8-inch iron rod with plastic cap, stamped
"TERRA SURVEYING", set in the east R.O.W. line of the aforesaid
Gillette Street and marking the southwest corner of said Westcreek
Tract and the herein described tract;
THENCE, North 02°21'51" West, with the east R.O.W. line of
said Gillette Street, at 418.66 feet pass the most westerly common
corner of the aforesaid Unrestricted Reserves "A" and "B", from
which a 3/4-inch iron rod found for reference bears South 87°38'58"
West, 0.13 feet; continuing, a total distance of 675.66 feet to the
POINT OF BEGINNING and containing 6.011 acres (261,835 square feet)
of land.
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) 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, 2019.
* * * * *
Pos. No. Name of Director
1 Robert Tautenhahn
2 Juan Carlos Herrera
3 Jack Chaluh
4 Maewel Ghebremichael
5 Jarret Ewing