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H.B. No. 3526
AN ACT
relating to the creation of the Greater Sharpstown Management
District; providing authority to impose a tax and issue a bond or
similar obligation.
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 3850 to read as follows:
CHAPTER 3850. GREATER SHARPSTOWN MANAGEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3850.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Greater Sharpstown
Management District.
Sec. 3850.002. GREATER SHARPSTOWN MANAGEMENT
DISTRICT. The Greater Sharpstown Management District is a special
district created under Section 59, Article XVI, Texas Constitution.
Sec. 3850.003. 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 of
Houston, Harris County, and other political subdivisions to
contract with the district, the legislature has established a
program to accomplish the public purposes set out in Section 52-a,
Article III, Texas Constitution.
(b) The creation of the district is necessary to promote,
develop, encourage, and maintain employment, commerce,
transportation, housing, tourism, recreation, the arts,
entertainment, economic development, safety, and the public
welfare in the district and adjacent areas.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of the effective date of
this Act, to the area in the district. The district is created to
supplement and not to supplant the county or municipal services
provided in the area in the district.
Sec. 3850.004. 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:
(1) further the public purposes of developing and
diversifying the economy of the state;
(2) eliminate unemployment and underemployment; and
(3) develop or expand transportation and commerce.
(d) The district will:
(1) promote the health, safety, and general welfare of
residents, employers, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding for the district to
preserve, maintain, and enhance the economic health and vitality of
the district territory as a community and business center; and
(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.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(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. 3850.005. PARKING. A parking improvement is
considered to be a street or road improvement.
Sec. 3850.006. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act enacting
this chapter, as that territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district contained
in Section 2 of 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 in any way affect the district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for a purpose for
which the district is created or to pay the principal of and
interest on the bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Sec. 3850.007. 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 by a
municipality under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by a
municipality under Chapter 312, Tax Code; or
(3) an enterprise zone created by a municipality under
Chapter 2303, Government Code.
Sec. 3850.008. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3850.009. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections 3850.010-3850.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3850.051. BOARD OF DIRECTORS; TERMS. (a) The
district is governed by a board of nine voting directors who serve
staggered terms of four years, with four or five directors' terms
expiring June 1 of each odd-numbered year.
(b) The board by resolution may change the number of voting
directors on the board, but only if the board determines that the
change is in the best interest of the district. The board may not
consist of fewer than five or more than 15 voting directors.
Sec. 3850.052. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the City of Houston shall appoint
voting directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
Sec. 3850.053. NONVOTING DIRECTORS. (a) The following
persons serve as nonvoting directors:
(1) the directors of the following departments of the
City of Houston or a person designated by that director:
(A) parks and recreation;
(B) planning and development;
(C) public works; and
(D) civic center; and
(2) the City of Houston's chief of police.
(b) If a department described by Subsection (a) is
consolidated, renamed, or changed, the board may appoint a director
of the consolidated, renamed, or changed department as a nonvoting
director. If a department described by Subsection (a) is
abolished, the board may appoint a representative of another
department that performs duties comparable to those performed by
the abolished department.
Sec. 3850.054. QUORUM. For purposes of determining whether
a quorum of the board is present, 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. 3850.055. INITIAL VOTING DIRECTORS. (a) The initial
board consists of the following voting directors: Pos. No. Name of Director
1 Kenneth Li
2 Welcome Wilson, Jr.
3 Michael Laster
4 Maurisa Tolbert
5 Chris Vasquez
6 Toni Franklin
7 Tracey Suttles
8 Don Wang
9 Fred Bhandara
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 5 expire June 1, 2007, and the
terms of directors appointed for positions 6 through 9 expire June
1, 2009.
(c) Section 3850.052 does not apply to this section.
(d) This section expires September 1, 2009.
[Sections 3850.056-3850.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3850.101. EXERCISE OF POWERS OF DEVELOPMENT
CORPORATION. The district may exercise the powers of a corporation
created under Section 4B, Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes), including the
power to own, operate, acquire, construct, lease, improve, and
maintain projects described by that section.
Sec. 3850.102. NONPROFIT CORPORATION. (a) The board by
resolution may authorize the creation of a nonprofit corporation to
assist and act for the district in implementing a project or
providing a service authorized by this chapter.
(b) The nonprofit corporation:
(1) has each power of and is considered for purposes of
this chapter to be a local government corporation created under
Chapter 431, Transportation Code; and
(2) may implement any project and provide any service
authorized by this chapter.
(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 Chapter 431,
Transportation Code, except that a board member is not required to
reside in the district.
Sec. 3850.103. AGREEMENTS; GRANTS. (a) The district may
make an agreement with or accept a gift, grant, or loan from any
person.
(b) The implementation of a project is a governmental
function or service for the purposes of Chapter 791, Government
Code.
Sec. 3850.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.
To protect the public interest, the district may contract with a law
enforcement services provider, including Harris County or the City
of Houston, to provide law enforcement services in the district for
a fee.
Sec. 3850.105. APPROVAL BY CITY OF HOUSTON. (a) Except as
provided by Subsection (c), the district must obtain the approval
of the City of Houston's governing body for:
(1) the issuance of bonds for an improvement project;
(2) the plans and specifications of an improvement
project financed by the bonds; and
(3) the plans and specifications of an improvement
project related to the use of land owned by the City of Houston, an
easement granted by the City of Houston, or a right-of-way of a
street, road, or highway.
(b) The approval obtained under Subsection (a) for the
issuance of bonds must be a resolution by the City of Houston. The
approval obtained under Subsection (a) for plans and specifications
must be a permit issued by the City of Houston.
(c) If the district obtains the approval of the City of
Houston's governing body of a capital improvements budget for a
period not to exceed five years, the district may finance the
capital improvements and issue bonds specified in the budget
without further approval from the City of Houston.
Sec. 3850.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3),
(4), or (6), Internal Revenue Code of 1986; and
(2) performs a service or provides an activity
consistent with the furtherance of a district purpose.
Sec. 3850.107. ECONOMIC DEVELOPMENT PROGRAMS AND OTHER
POWERS RELATED TO PLANNING AND DEVELOPMENT. (a) 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.
(b) The district has all of the powers of a municipality
under Chapter 380, Local Government Code.
Sec. 3850.108. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
[Sections 3850.109–3850.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3850.151. 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 the district's money.
Sec. 3850.152. 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. 3850.153. 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 requesting a project financed by assessment
must be signed by:
(1) the owners of a majority of the assessed value of
real property in the district subject to assessment according to
the most recent certified tax appraisal roll for Harris County; or
(2) at least 50 owners of real property in the
district, if more than 50 persons own real property in the district
according to the most recent certified tax appraisal roll for
Harris County.
Sec. 3850.154. METHOD OF NOTICE FOR HEARING. (a) 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 type of notice required based on
whether adequate notice is provided by the method.
(b) If the district uses first class mail to provide the
notice, the district must also publish the notice in a newspaper of
general circulation in the district not later than the 20th day
before the date of the event for which notice was provided.
Sec. 3850.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
The board by resolution may impose and collect an assessment for any
purpose authorized by this chapter.
(b) An assessment, a reassessment, or an assessment
resulting from an addition to or correction of the assessment roll
by the district, penalties and interest on an assessment or
reassessment, an expense of collection, and reasonable attorney's
fees incurred by the district:
(1) are a first and prior lien against the property
assessed;
(2) are superior to any other lien or claim other than
a lien or claim for county, school district, or municipal ad valorem
taxes; and
(3) are the personal liability of and a charge against
the owners of the property even if the owners are not named in the
assessment proceedings.
(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.
Sec. 3850.156. LIMITATION ON AMOUNT OF CERTAIN ASSESSMENTS.
An assessment based on the taxable value of real property may not
exceed 12 cents per $100 of assessed valuation of taxable property
in the district, according to the most recent certified tax
appraisal roll for Harris County.
Sec. 3850.157. PUBLIC IMPROVEMENT DISTRICT ASSESSMENTS. An
assessment levied in the district for a public improvement district
under Chapter 372, Local Government Code, may be used only under the
terms for which the assessment was levied. Money raised by an
assessment in the public improvement district under that chapter
must be used in the public improvement district, and may not be
transferred for use outside the area for which the assessment was
originally levied.
Sec. 3850.158. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND
ASSESSMENTS. The district may not impose an impact fee or
assessment on the property, including the equipment,
rights-of-way, facilities, or improvements, of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility as defined by Section 101.003 or
121.001, Utilities Code;
(3) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(4) a person who provides to the public cable
television or advanced telecommunications services.
Sec. 3850.159. AD VALOREM TAX. (a) If authorized at an
election held in accordance with Section 3850.162, the district may
impose an annual ad valorem tax on taxable property in the district
to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
Sec. 3850.160. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations payable wholly or
partly from taxes, assessments, impact fees, revenue, grants, or
other money of the district, or any combination of those sources of
money, to pay for any authorized purpose of the district.
(b) The district may issue a bond or other obligation in the
form of a bond, note, certificate of participation or other
instrument evidencing a proportionate interest in payments to be
made by the district, or other type of obligation.
Sec. 3850.161. TAXES FOR BONDS AND OTHER OBLIGATIONS. At
the time bonds or other obligations payable wholly or partly from ad
valorem taxes are issued:
(1) the board shall impose 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; and
(2) the district annually shall impose the continuing
direct ad valorem tax on all taxable property in the district in an
amount sufficient to:
(A) pay the interest on the bonds or other
obligations as the interest becomes due;
(B) create a sinking fund for the payment of the
principal of the bonds or other obligations when due or the
redemption price at any earlier required redemption date; and
(C) pay the expenses of imposing the taxes.
Sec. 3850.162. TAX AND BOND ELECTIONS. (a) The district
shall hold an election in the manner provided by Subchapter L,
Chapter 375, Local Government Code, to obtain voter approval before
the district imposes an ad valorem tax or issues bonds payable from
ad valorem taxes. The proposition for an election approving an ad
valorem tax must specify the maximum tax rate authorized.
(b) Section 375.243, Local Government Code, does not apply
to the district.
Sec. 3850.163. CITY OF HOUSTON NOT REQUIRED TO PAY DISTRICT
OBLIGATIONS. Except as provided by Section 375.263, Local
Government Code, the City of Houston is not required to pay a bond,
note, or other obligation of the district.
Sec. 3850.164. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $25,000.
Sec. 3850.165. TAX AND ASSESSMENT ABATEMENTS. The district
may grant in the manner authorized by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
[Sections 3850.166-3850.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3850.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The board may dissolve the district regardless of
whether the district has debt. Section 375.264, Local Government
Code, does not apply to the district.
(b) If the district has debt when it is dissolved, the
district shall remain in existence solely for the purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
SECTION 2. As of the effective date of this Act, the Greater
Sharpstown Management District includes all territory contained in
the following described area:
Beginning at the intersection of the East Right of Way of Beltway 8
and the South Right of Way of the Westpark Tollway,
Thence East along the South Right of Way of the Westpark Tollway to
the East Right of Way of Gessner,
Thence North along the East Right of Way of Gessner to the North
Right of Way of Westpark,
Thence East along the North Right of Way of Westpark to the East
Right of Way of Highway 59,
Thence Southwest along the East Right of Way of Highway 59 to the
East Right of Way of Hillcroft,
Thence Southeast following South along the East Right of Way of
Hillcroft to the South Right of Way of Bissonnet,
Thence Southwest along the South Right of Way of Bissonnet to the
West Right of Way of Gessner,
Thence North along the West Right of Way of Gessner to the East
Right of Way of Highway 59,
Thence Southwest along the East Right of Way of Highway 59 crossing
to the North Right of Way of Sugar Branch Drive.
Thence West along the North Right of Way of Sugar Brach Drive to the
East Right of Way of Beltway 8.
Thence North along the East Right of Way of Beltway 8, to the Point
of Beginning.
Save and Except
1034150000001
RES D BLK 4 BELTWAY R/P & EXTN
1052570000001
RES D BLK 4 (061*TR D4) TOWN PARK
0915050000007
TR 19C (001*TR 19A-2) SHARPSTOWN ACREAGE
0930640000002
TRS 31 & 31E BLK 31 (001*TRS 31A-2B 31A-2C 31A-4 & 31A-5) SHARPSTOWN
INDUSTRIAL PARK 11
1071900000004
RES A3 BLK 3 (001*TR A2) REGENCY SQ OFFICE PARK 3 R/P
1071900000005
RES A5 BLK 3 (001*TR 4A) REGENCY SQ OFFICE PARK 3 R/P
0930630000017
TRS 28G & 28H BLK 28 (001*TR 28J) SHARPSTOWN INDUSTRIAL PARK 11
1170330000001
RES A ROZNOV BUSINESS PARK
1059760000001
RES A BLK 1 COMMERCE PARK SEC 2
1080620000005
RES A6 & A7 BLK 1 (008*LT 7 & TR 6A)(061*TR A7) WESTWOOD CENTER SEC 2
1080620000009
RES A8 BLK 1 (008*TR 6A) WESTWOOD CENTER SEC 2
1080620000010
RES A9 BLK 1 (061*TR A2) WESTWOOD CENTER SEC 2
1080620000002
RES A1 BLK 1 (008*TR 1 BLK 1 PT RES A) WESTWOOD CENTER SEC 2
1080560000011
RES A4 & A5 BLK 1 WESTWOOD CENTER SEC 1
1121370000043
RES B2 (061*TR B2) SUGAR BRANCH
0915440000013
TR 2A-1 BLK 8 (001*TR 2B-1) SHARPSTOWN INDUSTRIAL PARK 4
1150880000001
RES A CENTRE BUSINESS PARK
0472050000002
TR 1A ABST 1433 W YATES
SECTION 3. A petition filed under Section 3850.153, Special
District Local Laws Code, as added by this Act, may be dated before
the effective date of this Act.
SECTION 4. If the Greater Sharpstown Management District
imposes an assessment on property under Subchapter D, Chapter 3850,
Special District Local Laws Code, as added by this Act, the district
shall credit against the district's first annual assessment an
amount equal to that year's assessment paid on that property for a
public improvement district under Chapter 372, Local Government
Code.
SECTION 5. The legislature finds that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the Texas Commission on
Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 6. 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, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3526 was passed by the House on May
13, 2005, by the following vote: Yeas 142, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3526 on May 29, 2005, by the following vote: Yeas 142, Nays 0,
1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3526 was passed by the Senate, with
amendments, on May 24, 2005, by the following vote: Yeas 31, Nays
0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor