Texas 2009 - 81st Regular

Texas House Bill HB4722 Compare Versions

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1	1	81R7819 SJM-F
2	2	By: Cohen H.B. No. 4722
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the creation of Harris County Improvement District No.
8	8	11; providing authority to impose a tax and issue bonds.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 11.
11	11	Subtitle C, Title 4, Special District Local Laws Code, is amended by
12	12	adding Chapter 3878 to read as follows:
13	13	CHAPTER 3878. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 11
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 3878.001. DEFINITIONS. In this chapter:
16	16	(1) "Board" means the board of directors of the
17	17	district.
18	18	(2) "District" means the Harris County Improvement
19	19	District No. 11.
20	20	Sec. 3878.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO.
21	21	11. The Harris County Improvement District No. 11 is a special
22	22	district created under Section 59, Article XVI, Texas Constitution.
23	23	Sec. 3878.003. PURPOSE; DECLARATION OF INTENT. (a) The
24	24	creation of the district is essential to accomplish the purposes of
25	25	Sections 52 and 52-a, Article III, and Section 59, Article XVI,
26	26	Texas Constitution, and other public purposes stated in this
27	27	chapter. By creating the district and in authorizing Harris
28	28	County, the City of Houston, the Metropolitan Transit Authority of
29	29	Harris County, and other political subdivisions to contract with
30	30	the district, the legislature has established a program to
31	31	accomplish the public purposes set out in Section 52-a, Article
32	32	III, Texas Constitution.
33	33	(b) The creation of the district is necessary to promote,
34	34	develop, encourage, and maintain employment, commerce,
35	35	transportation, housing, tourism, recreation, the arts,
36	36	entertainment, economic development, safety, and the public
37	37	welfare in the area of the district.
38	38	(c) This chapter and the creation of the district may not be
39	39	interpreted to relieve Harris County or the City of Houston from
40	40	providing the level of services provided as of the effective date of
41	41	this Act to the area in the district or to release the county or the
42	42	city from the obligations of each entity to provide services to that
43	43	area. The district is created to supplement and not to supplant the
44	44	county or city services provided in the area in the district.
45	45	Sec. 3878.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
46	46	The district is created to serve a public use and benefit.
47	47	(b) All land and other property included in the district
48	48	will benefit from the improvements and services to be provided by
49	49	the district under powers conferred by Sections 52 and 52-a,
50	50	Article III, and Section 59, Article XVI, Texas Constitution, and
51	51	other powers granted under this chapter.
52	52	(c) Each improvement project or service authorized by this
53	53	chapter is essential to carry out a public purpose.
54	54	(d) The creation of the district is in the public interest
55	55	and is essential to:
56	56	(1) further the public purposes of developing and
57	57	diversifying the economy of the state;
58	58	(2) eliminate unemployment and underemployment; and
59	59	(3) develop or expand transportation and commerce.
60	60	(e) The district will:
61	61	(1) promote the health, safety, and general welfare of
62	62	residents, employers, employees, visitors, and consumers in the
63	63	district, and of the public;
64	64	(2) provide needed funding for the district to
65	65	preserve, maintain, and enhance the economic health and vitality of
66	66	the area as a community and business center;
67	67	(3) promote the health, safety, welfare, and enjoyment
68	68	of the public by providing public art and pedestrian ways and by
69	69	landscaping and developing certain areas in the district, which are
70	70	necessary for the restoration, preservation, and enhancement of
71	71	scenic and aesthetic beauty;
72	72	(4) promote and benefit commercial development and
73	73	commercial areas in the district; and
74	74	(5) promote and develop public transportation and
75	75	pedestrian facilities and systems using new and alternative means
76	76	that are attractive, safe, and convenient, including securing
77	77	expanded and improved transportation and pedestrian facilities and
78	78	systems, to:
79	79	(A) address the problem of traffic congestion in
80	80	the district, the need to control traffic and improve pedestrian
81	81	safety, and the limited availability of money; and
82	82	(B) benefit the land and other property in the
83	83	district and the residents, employers, employees, visitors, and
84	84	consumers in the district and the public.
85	85	(f) Pedestrian ways along or across a street, whether at
86	86	grade or above or below the surface, and street lighting, street
87	87	landscaping, and street art objects are parts of and necessary
88	88	components of a street and are considered to be a street or road
89	89	improvement.
90	90	(g) The district will not act as the agent or
91	91	instrumentality of any private interest even though the district
92	92	will benefit many private interests as well as the public.
93	93	Sec. 3878.005. DISTRICT TERRITORY. (a) The district is
94	94	composed of the territory described by Section 2 of the Act enacting
95	95	this chapter, as that territory may have been modified under:
96	96	(1) Section 3878.251;
97	97	(2) Subchapter J, Chapter 49, Water Code; or
98	98	(3) other law.
99	99	(b) The boundaries and field notes of the district contained
100	100	in Section 2 of the Act enacting this chapter form a closure. A
101	101	mistake in the field notes or in copying the field notes in the
102	102	legislative process does not in any way affect:
103	103	(1) the district's organization, existence, and
104	104	validity;
105	105	(2) the district's right to issue any type of bond,
106	106	including a refunding bond, for a purpose for which the district is
107	107	created or to pay the principal of and interest on the bond;
108	108	(3) the district's right to impose and collect an
109	109	assessment or tax; or
110	110	(4) the legality or operation of the district or the
111	111	board.
112	112	(c) A description of the district's boundaries shall be
113	113	filed with the Texas Commission on Environmental Quality. The
114	114	commission by order may correct a mistake in the description of the
115	115	district's boundaries.
116	116	Sec. 3878.006. TORT LIABILITY. The district is a
117	117	governmental unit under Chapter 101, Civil Practice and Remedies
118	118	Code, and the operations of the district are essential government
119	119	functions and are not proprietary functions for any purpose,
120	120	including the application of that chapter.
121	121	Sec. 3878.007. LIBERAL CONSTRUCTION OF CHAPTER. This
122	122	chapter shall be liberally construed in conformity with the
123	123	findings and purposes stated in this chapter.
124	124	[Sections 3878.008-3878.050 reserved for expansion]
125	125	SUBCHAPTER B. BOARD OF DIRECTORS
126	126	Sec. 3878.051. BOARD OF DIRECTORS; TERMS. (a) The
127	127	district is governed by a board of five voting directors appointed
128	128	by a majority of the members of the governing body, including the
129	129	mayor, of the City of Houston. Voting directors serve staggered
130	130	terms of four years with two or three directors' terms expiring June
131	131	1 of each odd-numbered year.
132	132	(b) The board by order or resolution may increase or
133	133	decrease the number of voting directors on the board, but only if a
134	134	majority of the voting directors finds that it is in the best
135	135	interest of the district to do so. The board may not:
136	136	(1) increase the number of voting directors to more
137	137	than nine; or
138	138	(2) decrease the number of voting directors to fewer
139	139	than five.
140	140	(c) Sections 49.053, 49.054, 49.056, 49.057, 49.058, and
141	141	49.060, Water Code, apply to the board.
142	142	(d) Subchapter D, Chapter 375, Local Government Code,
143	143	applies to the board to the extent that subchapter does not conflict
144	144	with this chapter.
145	145	Sec. 3878.052. APPOINTMENT OF DIRECTORS ON INCREASE IN
146	146	BOARD SIZE. If the board increases the number of directors under
147	147	Section 3878.051, the board shall appoint eligible persons to fill
148	148	the new director positions and shall provide for the staggering of
149	149	terms of the new directors. On expiration of the term of a director
150	150	appointed under this section, a succeeding director shall be
151	151	appointed and qualified as provided by Subchapter D, Chapter 375,
152	152	Local Government Code. The mayor and members of the governing body
153	153	of the City of Houston shall appoint voting directors from persons
154	154	recommended by the board. A person is appointed if a majority of
155	155	the members of the governing body, including the mayor, vote to
156	156	appoint that person.
157	157	Sec. 3878.053. NONVOTING DIRECTORS. (a) The following
158	158	persons shall serve as nonvoting directors:
159	159	(1) the directors of the following departments of the
160	160	City of Houston or a person designated by that director:
161	161	(A) parks and recreation;
162	162	(B) planning and development; and
163	163	(C) public works; and
164	164	(2) the City of Houston's chief of police.
165	165	(b) If a department described by Subsection (a) is
166	166	consolidated, renamed, or changed, the board may appoint a director
167	167	of the consolidated, renamed, or changed department as a nonvoting
168	168	director. If a department described by Subsection (a) is
169	169	abolished, the board may appoint a representative of another
170	170	department that performs duties comparable to the duties performed
171	171	by the abolished department.
172	172	Sec. 3878.054. QUORUM. (a) A majority of the voting
173	173	directors constitutes a quorum of the board.
174	174	(b) Nonvoting directors and vacant director positions are
175	175	not counted for the purposes of establishing a quorum of the board.
176	176	Sec. 3878.055. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
177	177	(a) Except as provided by this section:
178	178	(1) a voting director may participate in all board
179	179	votes and decisions; and
180	180	(2) Chapter 171, Local Government Code, governs
181	181	conflicts of interest for directors.
182	182	(b) Section 171.004, Local Government Code, does not apply
183	183	to the district. A director who has a substantial interest in a
184	184	business or charitable entity that will receive a pecuniary benefit
185	185	from a board action shall file a one-time affidavit declaring the
186	186	interest. An additional affidavit is not required if the
187	187	director's interest changes. After the affidavit is filed with the
188	188	board secretary, the director may participate in a discussion or
189	189	vote on that action if:
190	190	(1) a majority of the directors have a similar
191	191	interest in the same entity; or
192	192	(2) all other similar business or charitable entities
193	193	in the district will receive a similar pecuniary benefit.
194	194	(c) A director who is also an officer or employee of a public
195	195	entity may not participate in the discussion of or vote on a matter
196	196	regarding a contract with that public entity.
197	197	(d) For purposes of this section, a director has a
198	198	substantial interest in a charitable entity in the same manner that
199	199	a person would have substantial interest in a business entity under
200	200	Section 171.002, Local Government Code.
201	201	Sec. 3878.056. COMPENSATION OF VOTING DIRECTORS. Voting
202	202	directors may receive fees of office and reimbursement of expenses
203	203	as provided by Section 49.060, Water Code.
204	204	Sec. 3878.057. INITIAL VOTING DIRECTORS. (a) The initial
205	205	board consists of:
206	206	Pos. No. Name of Director
207	207	1 ________________
208	208	2 ________________
209	209	3 ________________
210	210	4 ________________
211	211	5 ________________
212	212	(b) Of the initial directors, the terms of directors serving
213	213	in positions 1, 2, and 3 expire June 1, 2013, and the terms of
214	214	directors serving in positions 4 and 5 expire June 1, 2011.
215	215	(c) Sections 3878.051(a) and (b) do not apply to the initial
216	216	directors.
217	217	(d) This section expires September 1, 2013.
218	218	[Sections 3878.058-3878.100 reserved for expansion]
219	219	SUBCHAPTER C. POWERS AND DUTIES
220	220	Sec. 3878.101. DISTRICT POWERS. The district may exercise
221	221	the powers given to:
222	222	(1) a district created under Chapter 375, Local
223	223	Government Code;
224	224	(2) a district by Subchapters H and I, Chapter 49,
225	225	Water Code;
226	226	(3) a corporation under Section 4B, Development
227	227	Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
228	228	Statutes), including the power to own, operate, acquire, construct,
229	229	lease, improve, and maintain the projects described by that
230	230	section; and
231	231	(4) a housing finance corporation created under
232	232	Chapter 394, Local Government Code, to provide housing or
233	233	residential development projects in the district.
234	234	Sec. 3878.102. NONPROFIT CORPORATION. (a) The board by
235	235	resolution may authorize the creation of a nonprofit corporation to
236	236	assist and act for the district in implementing a project or
237	237	providing a service authorized by this chapter.
238	238	(b) The nonprofit corporation:
239	239	(1) has each power of and is considered for purposes of
240	240	this chapter to be a local government corporation created under
241	241	Chapter 431, Transportation Code; and
242	242	(2) may implement any project and provide any service
243	243	authorized by this chapter.
244	244	(c) The board shall appoint the board of directors of the
245	245	nonprofit corporation. The board of directors of the nonprofit
246	246	corporation shall serve in the same manner as, for the same term as,
247	247	and on the same conditions as the board of directors of a local
248	248	government corporation created under Chapter 431, Transportation
249	249	Code.
250	250	Sec. 3878.103. AGREEMENTS; GRANTS. (a) The district may
251	251	make an agreement with or accept a gift, grant, or loan from any
252	252	person.
253	253	(b) The implementation of a project is a governmental
254	254	function or service for the purposes of Chapter 791, Government
255	255	Code.
256	256	Sec. 3878.104. ELECTIONS. (a) District elections must be
257	257	held in the manner provided by Subchapter L, Chapter 375, Local
258	258	Government Code.
259	259	(b) The board may submit multiple purposes in a single
260	260	proposition at an election.
261	261	Sec. 3878.105. CONTRACT FOR LAW ENFORCEMENT AND SECURITY
262	262	SERVICES. The district may contract with:
263	263	(1) Harris County or the City of Houston for the county
264	264	or city to provide law enforcement and security services in the
265	265	district for a fee; or
266	266	(2) a private entity for the private entity to provide
267	267	supplemental security services.
268	268	Sec. 3878.106. ANNEXATION OR EXCLUSION OF TERRITORY. The
269	269	district may annex or exclude land from the district in the manner
270	270	provided by Subchapter C, Chapter 375, Local Government Code.
271	271	Sec. 3878.107. APPROVAL BY CITY OF HOUSTON. (a) Except as
272	272	provided by Subsection (b), the district must obtain the approval
273	273	of the City of Houston's governing body for:
274	274	(1) the issuance of a bond for each improvement
275	275	project;
276	276	(2) the plans and specifications of the improvement
277	277	project financed by the bond; and
278	278	(3) the plans and specifications of any district
279	279	improvement project related to the use of land owned by the City of
280	280	Houston, an easement granted by the City of Houston, or a
281	281	right-of-way of a street, road, or highway.
282	282	(b) If the district obtains the approval of the City of
283	283	Houston's governing body of a capital improvements budget for a
284	284	period not to exceed five years, the district may finance the
285	285	capital improvements and issue bonds specified in the budget
286	286	without further approval from the City of Houston.
287	287	Sec. 3878.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
288	288	district may join and pay dues to an organization that:
289	289	(1) enjoys tax-exempt status under Section 501(c)(3),
290	290	(4), or (6), Internal Revenue Code of 1986; and
291	291	(2) performs a service or provides an activity
292	292	consistent with promoting a district purpose.
293	293	Sec. 3878.109. ROAD POWERS. The district may exercise
294	294	powers given to:
295	295	(1) a road district created under Chapter 257,
296	296	Transportation Code; and
297	297	(2) a road utility district created under Chapter 441,
298	298	Transportation Code.
299	299	Sec. 3878.110. AIR RIGHTS; CONSTRUCTION. The district may
300	300	acquire air rights and may construct improvements on property on
301	301	which it owns only air rights.
302	302	Sec. 3878.111. ADDITIONAL PROPERTY RIGHTS; LEASEHOLDS. The
303	303	district may construct improvements on property on which it only
304	304	has a leasehold interest and may own undivided interests in
305	305	buildings and other improvements.
306	306	Sec. 3878.112. NO EMINENT DOMAIN POWER. The district may
307	307	not exercise the power of eminent domain.
308	308	[Sections 3878.113-3878.150 reserved for expansion]
309	309	SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
310	310	Sec. 3878.151. PUBLIC TRANSIT SYSTEM; PETITION REQUIRED.
311	311	(a) The district may acquire, lease as lessor or lessee, construct,
312	312	develop, own, operate, and maintain a public transit system to
313	313	serve the area within the boundaries of the district.
314	314	(b) The board may not act under Subsection (a) unless a
315	315	written petition requesting the action has been filed with the
316	316	board.
317	317	(c) The petition must be signed by:
318	318	(1) the owners of property representing a majority of
319	319	the total assessed value of the real property in the district that
320	320	abuts the right-of-way in which the public transit system is
321	321	proposed to be located; or
322	322	(2) the owners of a majority of the area of the real
323	323	property in the district that abuts the right-of-way in which the
324	324	public transit system is proposed to be located.
325	325	(d) For purposes of Subsection (c), the determination of a
326	326	majority is based on the property owners along the entire
327	327	right-of-way of the proposed transit project and may not be
328	328	calculated on a block-by-block basis.
329	329	Sec. 3878.152. PARKING FACILITIES AUTHORIZED; OPERATION BY
330	330	PRIVATE ENTITY; TAX EXEMPTION. (a) The district may acquire, lease
331	331	as lessor or lessee, construct, develop, own, operate, and maintain
332	332	parking facilities, including:
333	333	(1) lots, garages, parking terminals, or other
334	334	structures or accommodations for the parking of motor vehicles; and
335	335	(2) equipment, entrances, exits, fencing, and other
336	336	accessories necessary for safety and convenience in the parking of
337	337	vehicles.
338	338	(b) A parking facility of the district must be either leased
339	339	to or operated on behalf of the district by a private entity or an
340	340	entity other than the district. The district's parking facilities
341	341	are a program authorized by the legislature under Section 52-a,
342	342	Article III, Texas Constitution, and accomplish a public purpose
343	343	under that section even if leased or operated by a private entity
344	344	for a term of years.
345	345	(c) The district's public parking facilities and any lease
346	346	to a private entity are exempt from the payment of ad valorem taxes
347	347	and state and local sales and use taxes.
348	348	Sec. 3878.153. RULES. The district may adopt rules
349	349	covering its public transit system or its public parking
350	350	facilities, except that a rule relating to or affecting the use of
351	351	the public right-of-way or a requirement for off-street parking is
352	352	subject to all applicable municipal charter, code, or ordinance
353	353	requirements.
354	354	Sec. 3878.154. FINANCING OF PUBLIC TRANSIT SYSTEM OR
355	355	PARKING FACILITIES. (a) The district may use any of its resources,
356	356	including revenue, assessments, taxes, and grant or contract
357	357	proceeds, to pay the cost of acquiring and operating a public
358	358	transit system or public parking facilities.
359	359	(b) The district may set and impose fees, charges, or tolls
360	360	for the use of the public transit system or the public parking
361	361	facilities and may issue bonds or notes to finance the cost of these
362	362	facilities.
363	363	(c) Except as provided by Section 3878.151, if the district
364	364	pays for or finances the cost of acquiring or operating a public
365	365	transit system or public parking facilities with resources other
366	366	than assessments, a petition of property owners or a public hearing
367	367	is not required.
368	368	Sec. 3878.155. PAYMENT IN LIEU OF TAXES TO OTHER TAXING
369	369	UNIT. If the district's acquisition of property for a parking
370	370	facility that is leased to or operated by a private entity results
371	371	in the removal from a taxing unit's tax rolls of real property
372	372	otherwise subject to ad valorem taxation, the district shall pay to
373	373	the taxing unit in which the property is located, on or before
374	374	January 1 of each year, as a payment in lieu of taxes, an amount
375	375	equal to the ad valorem taxes that otherwise would have been imposed
376	376	for the preceding tax year on that real property by the taxing unit,
377	377	without including the value of any improvements constructed on the
378	378	property.
379	379	Sec. 3878.156. AGREEMENT WITH RAPID TRANSIT AUTHORITY. (a)
380	380	In this section, "authority" means a rapid transit authority
381	381	created under Chapter 451, Transportation Code.
382	382	(b) The district and an authority may agree to jointly
383	383	construct, own, operate, and maintain a transit facility or a
384	384	parking facility under the terms the authority and district desire.
385	385	(c) The agreement may provide that the district and the
386	386	authority exchange or trade land provided that each party to the
387	387	agreement receives fair market value. The authority is not
388	388	required to offer any property that it proposes to trade to the
389	389	district for sale to the public or for sale to any abutting property
390	390	owner.
391	391	[Sections 3878.157-3878.200 reserved for expansion]
392	392	SUBCHAPTER E. FINANCIAL PROVISIONS
393	393	Sec. 3878.201. AUTHORITY TO IMPOSE ASSESSMENTS, AD VALOREM
394	394	TAXES, AND IMPACT FEES. The district may impose, assess, charge, or
395	395	collect an assessment, an ad valorem tax, an impact fee, or another
396	396	fee in accordance with Chapter 49, Water Code, for a purpose
397	397	specified by Chapter 375, Local Government Code, or as needed to
398	398	exercise a power or function of the district or to accomplish a
399	399	purpose or duty for which the district was created.
400	400	Sec. 3878.202. DISBURSEMENTS AND TRANSFERS OF MONEY. The
401	401	board by resolution shall establish the number of directors'
402	402	signatures and the procedure required for a disbursement or
403	403	transfer of the district's money.
404	404	Sec. 3878.203. ASSESSMENT IN PART OF DISTRICT. An
405	405	assessment may be imposed on only a part of the district if only
406	406	that part will benefit from the service or improvement.
407	407	Sec. 3878.204. PETITION REQUIRED FOR ASSESSMENT AND FOR
408	408	FINANCING SERVICES AND IMPROVEMENTS. (a) The board may not impose
409	409	an assessment or finance a service or improvement project under
410	410	this chapter unless a written petition requesting the improvement
411	411	or service has been filed with the board.
412	412	(b) The petition must be signed by:
413	413	(1) the owners of a majority of the assessed value of
414	414	real property in the district subject to assessment according to
415	415	the most recent certified tax appraisal roll for Harris County; or
416	416	(2) at least 25 owners of real property in the district
417	417	that will be subject to the assessment, if more than 25 persons own
418	418	real property subject to the assessment in the district according
419	419	to the most recent certified tax appraisal roll for Harris County.
420	420	(c) The board may act upon a petition, required under this
421	421	section, signed by qualified petitioners prior to or subsequent to
422	422	the enactment of this chapter.
423	423	Sec. 3878.205. ASSESSMENTS CONSIDERED TAXES. For purposes
424	424	of a title insurance policy issued under Title 11, Insurance Code,
425	425	an assessment is a tax.
426	426	Sec. 3878.206. MAINTENANCE TAX. (a) If authorized at an
427	427	election held in accordance with Section 3878.104, the district may
428	428	impose an annual ad valorem tax on taxable property in the district
429	429	to:
430	430	(1) administer the district;
431	431	(2) maintain and operate the district;
432	432	(3) construct or acquire improvements; or
433	433	(4) provide a service.
434	434	(b) The board shall determine the tax rate.
435	435	(c) An owner of real property in the district, except
436	436	property exempt under the Texas or United States Constitution or
437	437	under the Tax Code, is liable for the payment of ad valorem taxes
438	438	imposed by the district on the property.
439	439	Sec. 3878.207. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a)
440	440	The board by resolution may impose and collect an assessment for any
441	441	purpose authorized by this chapter.
442	442	(b) An assessment, a reassessment, or an assessment
443	443	resulting from an addition to or correction of the assessment roll
444	444	by the district, penalties and interest on an assessment or
445	445	reassessment, an expense of collection, and reasonable attorney's
446	446	fees incurred by the district:
447	447	(1) are a first and prior lien against the property
448	448	assessed;
449	449	(2) are superior to any other lien or claim other than
450	450	a lien or claim for county, school district, or municipal ad valorem
451	451	taxes; and
452	452	(3) are the personal liability of and a charge against
453	453	the owners of the property even if the owners are not named in the
454	454	assessment proceedings.
455	455	(c) The lien is effective from the date of the board's
456	456	resolution imposing the assessment until the date the assessment is
457	457	paid. The board may enforce the lien in the same manner that the
458	458	board may enforce an ad valorem tax lien against real property.
459	459	(d) The board may make a correction to or deletion from the
460	460	assessment roll that does not increase the amount of assessment of
461	461	any parcel of land without providing notice and holding a hearing in
462	462	the manner required for additional assessments.
463	463	Sec. 3878.208. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
464	464	ASSESSMENT AND IMPACT FEES. The district may not impose an impact
465	465	fee or assessment on the property, including the equipment,
466	466	rights-of-way, facilities, or improvements, of:
467	467	(1) an electric utility or a power generation company
468	468	as defined by Section 31.002, Utilities Code;
469	469	(2) a gas utility as defined by Section 101.003 or
470	470	121.001, Utilities Code;
471	471	(3) a telecommunications provider as defined by
472	472	Section 51.002, Utilities Code; or
473	473	(4) a person who provides the public cable television
474	474	or advanced telecommunications services.
475	475	Sec. 3878.209. USE OF ELECTRICAL OR OPTICAL LINES. (a) The
476	476	district may impose an assessment to pay the cost of:
477	477	(1) burying or removing electrical power lines,
478	478	telephone lines, cable or fiber-optic lines, or any other type of
479	479	electrical or optical line;
480	480	(2) removing poles and any elevated lines using the
481	481	poles; and
482	482	(3) reconnecting the lines described by Subdivision
483	483	(2) to the buildings or other improvements to which the lines were
484	484	connected.
485	485	(b) The district may acquire, operate, or charge fees for
486	486	the use of the district conduits for:
487	487	(1) another person's:
488	488	(A) telecommunications network;
489	489	(B) fiber-optic cable; or
490	490	(C) electronic transmission line; or
491	491	(2) any other type of transmission line or supporting
492	492	facility.
493	493	(c) The district may not require a person to use a district
494	494	conduit.
495	495	Sec. 3878.210. BONDS AND OTHER OBLIGATIONS. (a) The
496	496	district may issue bonds, notes, or other obligations in accordance
497	497	with Subchapter J, Chapter 375, Local Government Code, payable
498	498	wholly or partly from assessments, impact fees, revenue, grants, or
499	499	other money of the district, or any combination of these sources of
500	500	money, to pay for any authorized district purpose.
501	501	(b) In exercising the district's power to borrow, the
502	502	district may issue a bond or other obligation in the form of a bond,
503	503	note, certificate of participation or other instrument evidencing a
504	504	proportionate interest in payments to be made by the district, or
505	505	other type of obligation.
506	506	Sec. 3878.211. LIMITS ON PARKS AND RECREATION BONDS. Bonds
507	507	issued to finance parks and recreational facilities may not exceed
508	508	one percent of the assessed value of the real property in the
509	509	district according to the most recent certified tax appraisal roll
510	510	for Harris County.
511	511	Sec. 3878.212. TAX AND BOND ELECTIONS. (a) The district
512	512	shall hold an election in the manner provided by Subchapter L,
513	513	Chapter 375, Local Government Code, to obtain voter approval before
514	514	the district imposes a maintenance tax or issues bonds payable from
515	515	ad valorem taxes.
516	516	(b) The board may not include more than one purpose in a
517	517	single proposition at an election.
518	518	(c) Section 375.243, Local Government Code, does not apply
519	519	to the district.
520	520	Sec. 3878.213. POWERS OF MUNICIPAL UTILITY DISTRICT TO
521	521	ESTABLISH DEFINED AREAS AND DESIGNATED PROPERTY; TAXES; BONDS. (a)
522	522	The district has the powers of a municipal utility district under
523	523	Subchapter J, Chapter 54, Water Code, including the power to:
524	524	(1) implement a plan;
525	525	(2) issue bonds; and
526	526	(3) impose a tax in a defined area established under
527	527	that subchapter.
528	528	(b) The district may exercise the powers described by
529	529	Subsection (a) regardless of whether the district is composed of
530	530	the minimum number of acres provided by Section 54.801, Water Code.
531	531	Sec. 3878.214. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
532	532	OBLIGATIONS. Except as provided by Section 375.263, Local
533	533	Government Code, a municipality is not required to pay a bond, note,
534	534	or other obligation of the district.
535	535	Sec. 3878.215. COMPETITIVE BIDDING. Section 375.221, Local
536	536	Government Code, applies to the district only for a contract that
537	537	has a value greater than $50,000.
538	538	[Sections 3878.216-3878.250 reserved for expansion]
539	539	SUBCHAPTER F. CONSOLIDATION
540	540	Sec. 3878.251. CONSOLIDATION WITH MUNICIPAL MANAGEMENT
541	541	DISTRICT. (a) The district may consolidate with one or more other
542	542	municipal management districts that are adjoining or have a
543	543	boundary that is within a two-mile radius of any boundary of the
544	544	district. The board may consolidate with one or more other
545	545	districts only if none of the districts to be consolidated has
546	546	issued bonds or notes secured by assessments or ad valorem taxes or
547	547	has imposed taxes.
548	548	(b) To initiate consolidation, the board of a district shall
549	549	adopt a resolution proposing a consolidation and deliver a copy of
550	550	the resolution to the board of each district with which
551	551	consolidation is proposed.
552	552	Sec. 3878.252. TERMS AND CONDITIONS FOR CONSOLIDATION. Not
553	553	later than the 30th day after districts are consolidated under
554	554	Section 3878.251, the districts shall enter into an agreement
555	555	specifying the terms and conditions for consolidation. The terms
556	556	and conditions for consolidation must include:
557	557	(1) adoption of a name for the consolidated district;
558	558	(2) the number and apportionment of directors to serve
559	559	on the board of the consolidated district;
560	560	(3) the effective date of the consolidation;
561	561	(4) an agreement on finances for the consolidated
562	562	district, including disposition of funds, property, and other
563	563	assets of each district; and
564	564	(5) an agreement on governing the districts during the
565	565	transition period, including selection of officers.
566	566	Sec. 3878.253. NOTICE AND HEARING ON CONSOLIDATION. (a)
567	567	Each district's board shall publish notice and hold a public
568	568	hearing in its district regarding the terms and conditions for
569	569	consolidation of the districts. The board shall publish notice at
570	570	least once in a newspaper with general circulation in the affected
571	571	districts at least seven days before the hearing.
572	572	(b) After the hearing, each board by resolution must approve
573	573	the terms and conditions for consolidation by majority vote and
574	574	enter an order consolidating the districts.
575	575	(c) If the board of each involved district adopts a
576	576	resolution containing the terms and conditions for the
577	577	consolidation, the involved districts become consolidated.
578	578	Sec. 3878.254. GOVERNING CONSOLIDATED DISTRICTS. (a)
579	579	After two or more districts are consolidated, they become one
580	580	district and are governed as one district.
581	581	(b) During the period before the terms and conditions of the
582	582	agreement under Section 3878.252 take effect, the officers of each
583	583	district shall continue to act jointly as officers of the original
584	584	districts to settle the affairs of their respective districts.
585	585	Sec. 3878.255. DEBTS OF ORIGINAL DISTRICTS. After two or
586	586	more districts are consolidated, the consolidated district shall
587	587	protect the debts and obligations of the original districts and
588	588	shall ensure that the debts and obligations are not impaired. If
589	589	the consolidated district has taxing authority, the debts may be
590	590	paid by taxes imposed on the land in the original districts as if
591	591	they had not consolidated or from contributions from the
592	592	consolidated district on terms stated in the consolidation
593	593	agreement.
594	594	Sec. 3878.256. ASSESSMENT AND COLLECTION OF TAXES. If the
595	595	consolidated district has taxing authority, the district shall
596	596	impose and collect taxes on all property in the district uniformly,
597	597	for maintenance and operation of the district.
598	598	Sec. 3878.257. FILING OF ORDER WITH COUNTY CLERK AND
599	599	EXECUTIVE DIRECTOR. The board shall keep in the records of the
600	600	consolidated district, recorded in the office of the county clerk
601	601	in each of the counties in the consolidated district, a
602	602	consolidation order issued by the board. The board shall file the
603	603	consolidation order with the executive director of the Texas
604	604	Commission on Environmental Quality.
605	605	[Sections 3878.258-3878.300 reserved for expansion]
606	606	SUBCHAPTER G. DISSOLUTION
607	607	Sec. 3878.301. DISSOLUTION OF DISTRICT WITH OUTSTANDING
608	608	DEBT. (a) The district may be dissolved as provided by Subchapter
609	609	M, Chapter 375, Local Government Code, except that Section 375.264,
610	610	Local Government Code, does not apply to the district. The board
611	611	may dissolve the district regardless of whether the district has
612	612	debt.
613	613	(b) If the district has debt when it is dissolved, the
614	614	district shall remain in existence solely for the purpose of
615	615	discharging its bonds or other obligations according to their
616	616	terms. The dissolution is effective when all debts have been
617	617	discharged.
618	618	SECTION 2. BOUNDARIES. On the effective date of this Act,
619	619	the Harris County Improvement District No. 11 includes all
620	620	territory generally bounded by the following described area:
621	621	UNLESS otherwise specified, the boundaries of this district will
622	622	travel along the centerline of each street included, and each
623	623	intersection will be the intersection of the centerlines of the
624	624	streets mentioned.
625	625	Beginning at the intersection of the center right of way line
626	626	of West Dallas and the center right of way line of Montrose
627	627	Boulevard;
628	628	Thence in a southerly direction along the center right of way of
629	629	Montrose Boulevard to its intersection with the center right of way
630	630	of Sul Ross.
631	631	Thence in a westerly direction along the center right of way of Sul
632	632	Ross to its intersection with the center right of way of Mulberry.
633	633	Thence in a southerly direction along the center right of way of
634	634	Mulberry to its intersection with the center right of way of
635	635	Branard, thence east along the center right of way of Branard to its
636	636	intersection with the center right of way of Yupon.
637	637	Thence in a southerly direction along the center right of way of
638	638	Yupon to where Yupon corners into the center right of way of
639	639	Colquitt.
640	640	Thence in an easterly direction along the center right of way of
641	641	Colquitt to its intersection with the center right of way of
642	642	Graustark.
643	643	Thence in a southerly direction along the center right of way of
644	644	Graustark to the center right of way of U.S. Highway 59.
645	645	Thence easterly along the center right of way of US 59 South to the
646	646	north property line of Track 12, Block 7 MacGregor Blodgett Section
647	647	1;
648	648	Thence southwesterly along the north property line of Tracks 12 and
649	649	10, Block 7 MacGregor Blodgett Section 1;
650	650	Thence southwesterly along the north property line of Track 9,
651	651	Block 8 MacGregor Blodgett Section 1 to the south east property line
652	652	of the C.C. Fitze Homestead Addition according to the plat thereof
653	653	recorded in Volume 259, Page 163 of the Harris County Deed Records;
654	654	Thence south westerly along the south east property line of said
655	655	C.C. Fitze Homestead Addition according to the plat thereof
656	656	recorded in Volume 259, Page 163 of the Harris County Deed Records;
657	657	Thence westerly along the south property line of said C.C. Fitze
658	658	Homestead Addition according to the plat thereof recorded in Volume
659	659	259, Page 163 of the Harris County Deed Records crossing the north
660	660	dead end of Travis to the center right of way line thereof;
661	661	Thence southwesterly along the center right of way line of Travis to
662	662	the center right of way line of Portland;
663	663	Thence easterly along the center right of way line of Portland to
664	664	the center right of way line of Main;
665	665	Thence southwesterly along the center right of way line of Main to
666	666	its intersection with the center right of way line of Bissonnet;
667	667	Thence westerly along the center right of way line of Bissonnet to
668	668	its intersection with the center right of way line of Graustark;
669	669	Thence northerly along the center right of way line of Graustark to
670	670	its intersection with the center right of way line of US 59 South;
671	671	Thence westerly along the center right of way line of US 59 South to
672	672	its intersection with the east right of way line of South Shepherd
673	673	Drive;
674	674	Thence northerly along the east right of way line of South Shepherd
675	675	Drive following along the northeast right of way line of Shepherd
676	676	Drive to its intersection with the center right of way line West
677	677	Dallas Avenue;
678	678	Then in a easterly direction along the center right of way of West
679	679	Dallas Street to its intersection with the center right of way of
680	680	Montrose Boulevard at the point of BEGINNING.
681	681	Save & Except
682	682	Save and except the following tracts of land:
683	683	1. 0442170000002
684	684	REGENT SQUARE CD LLC
685	685	3601 W ALLEN PKY STE 183
686	686	TRS 1 1A 2 3 3A 4 6A THRU 6E 14A 14B 15 24 & 24A
687	687	LTS 1 THRU 5 BLK 1 HYDE PARK COURT
688	688	LTS 1 & 2 BLK 1 CLAY COURT
689	689	ABST 696 O SMITH
690	690	2. 0751570010001
691	691	REGENT SQUARE CD LLC
692	692	3501 W DALLAS ST STE 218
693	693	ALL BLKS 1 2
694	694	LT 6 BLK 2 HYDE PARK COURT
695	695	LTS 1 5 6 7 8 TR 9A WEIS
696	696	TRS 9 16 17 18 19D 24 24A 25 ABST 696 O SMITH
697	697	3. 0442190000003
698	698	REGENT SQUARE CD LLC
699	699	3601 ALLEN PKY STE 59
700	700	TRS 4 6 6A 7 8 8A 9A 9B 9C 10 -13 & 16
701	701	LTS 1 & 2 BLK 1 ROSIE
702	702	ABST 696 O SMITH
703	703	SECTION 3. REIMBURSEMENT FOR COST OF CREATION. The Harris
704	704	County Improvement District No. 11 may reimburse the cost of
705	705	creating the district from assessments or other revenue created by
706	706	the district or consolidated district under Section 3878.251,
707	707	Special District Local Laws Code, as added by this Act.
708	708	SECTION 4. LEGISLATIVE FINDINGS. The legislature finds
709	709	that:
710	710	(1) proper and legal notice of the intention to
711	711	introduce this Act, setting forth the general substance of this
712	712	Act, has been published as provided by law, and the notice and a
713	713	copy of this Act have been furnished to all persons, agencies,
714	714	officials, or entities to which they are required to be furnished by
715	715	the constitution and laws of this state, including the governor,
716	716	who has submitted the notice and Act to the Texas Commission on
717	717	Environmental Quality;
718	718	(2) the Texas Commission on Environmental Quality has
719	719	filed its recommendations relating to this Act with the governor,
720	720	lieutenant governor, and speaker of the house of representatives
721	721	within the required time;
722	722	(3) the general law relating to consent by political
723	723	subdivisions to the creation of districts with conservation,
724	724	reclamation, and road powers and the inclusion of land in those
725	725	districts has been complied with; and
726	726	(4) all requirements of the constitution and laws of
727	727	this state and the rules and procedures of the legislature with
728	728	respect to the notice, introduction, and passage of this Act have
729	729	been fulfilled and accomplished.
730	730	SECTION 5. EFFECTIVE DATE. This Act takes effect
731	731	immediately if it receives a vote of two-thirds of all the members
732	732	elected to each house, as provided by Section 39, Article III, Texas
733	733	Constitution. If this Act does not receive the vote necessary for
734	734	immediate effect, this Act takes effect September 1, 2009.