Texas 2017 85th Regular

Texas House Bill HB3173 House Committee Report / Bill

Filed 02/02/2025

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                    85R18128 SMT-F
 By: Bell H.B. No. 3173
 Substitute the following for H.B. No. 3173:
 By:  Cortez C.S.H.B. No. 3173


 A BILL TO BE ENTITLED
 AN ACT
 relating to the creation of the East Lake Houston Management
 District; providing authority to issue bonds; providing authority
 to impose assessments, fees, or 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 3936 to read as follows:
 CHAPTER 3936.  EAST LAKE HOUSTON MANAGEMENT DISTRICT
 SUBCHAPTER A.  GENERAL PROVISIONS
 Sec. 3936.001.  DEFINITIONS. In this chapter:
 (1)  "Board" means the district's board of directors.
 (2)  "City" means the City of Houston.
 (3)  "Director" means a board member.
 (4)  "District" means the East Lake Houston Management
 District.
 Sec. 3936.002.  CREATION AND NATURE OF DISTRICT. The
 district is a special district created under Section 59, Article
 XVI, Texas Constitution.
 Sec. 3936.003.  PURPOSE; LEGISLATIVE FINDINGS. (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 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.
 (c)  The district is created to supplement and not to
 supplant city services provided in the district.
 Sec. 3936.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a)
 The district is created to serve a public use and benefit.
 (b)  All land and other property included in the district
 will benefit from the improvements and services to be provided by
 the district under powers conferred by Sections 52 and 52-a,
 Article III, and Section 59, Article XVI, Texas Constitution, and
 other powers granted under this chapter.
 (c)  The creation of the district is in the public interest
 and is essential to further the public purposes of:
 (1)  developing and diversifying the economy of the
 state;
 (2)  eliminating unemployment and underemployment;
 (3)  developing or expanding transportation and
 commerce; and
 (4)  providing quality residential housing.
 (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 residential community and business
 center; and
 (3)  promote the health, safety, welfare, and enjoyment
 of the public by providing pedestrian ways and by landscaping,
 removing graffiti from, 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, vehicle parking, and street art objects are parts of
 and necessary components of a street and are considered to be an
 improvement project that includes 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. 3936.005.  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 bond for the purposes
 for which the district is created or to pay the principal of and
 interest on a bond;
 (3)  right to impose or collect an assessment or tax; or
 (4)  legality or operation.
 Sec. 3936.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
 (a)  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;
 (2)  a tax abatement reinvestment zone created under
 Chapter 312, Tax Code;
 (3)  an enterprise zone created under Chapter 2303,
 Government Code; or
 (4)  an industrial district created under Chapter 42,
 Local Government Code.
 (b)  If the city creates a tax increment reinvestment zone
 described by Subsection (a), the city and the board of directors of
 the zone, by contract with the district, may grant money deposited
 in the tax increment fund to the district to be used by the district
 for the purposes permitted for money granted to a corporation under
 Section 380.002(b), Local Government Code, including the right to
 pledge the money as security for any bonds issued by the district
 for an improvement project.
 (c)  A tax increment reinvestment zone created by the city in
 the district is not subject to the limitations provided by Section
 311.006(b), Tax Code.
 Sec. 3936.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
 DISTRICTS LAW. Except as otherwise provided by this chapter,
 Chapter 375, Local Government Code, applies to the district.
 Sec. 3936.008.  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. 3936.051.  GOVERNING BODY; TERMS. 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.
 Sec. 3936.052.  QUALIFICATIONS OF DIRECTORS APPOINTED BY
 CITY. To be qualified to serve as a director appointed by the
 governing body of the city, a person must be:
 (1)  a resident of the district who is also a registered
 voter of the district;
 (2)  an owner of property in the district;
 (3)  an owner of stock or a partnership or membership
 interest, whether beneficial or otherwise, of a corporate
 partnership, limited liability company, or other entity owner of a
 direct or indirect interest in property in the district;
 (4)  an owner of a beneficial interest in a trust, or a
 trustee in a trust, that directly or indirectly owns property in the
 district;
 (5)  an agent, employee, or tenant of a person
 described by Subdivision (2), (3), or (4); or
 (6)  an initial director.
 Sec. 3936.053.  APPOINTMENT OF DIRECTORS. The governing
 body of the city shall appoint directors from persons recommended
 by the board.
 Sec. 3936.054.  VACANCY. If a vacancy occurs on the board,
 the remaining directors shall appoint a director for the remainder
 of the unexpired term.
 Sec. 3936.055.  DIRECTOR'S OATH OR AFFIRMATION. (a)  A
 director shall file the director's oath or affirmation of office
 with the district, and the district shall retain the oath or
 affirmation in the district records.
 (b)  A director shall file a copy of the director's oath or
 affirmation with the secretary of the city.
 Sec. 3936.056.  QUORUM.  A vacant director position is not
 counted for purposes of establishing a quorum.
 Sec. 3936.057.  OFFICERS. The board shall elect from among
 the directors a chair, a vice chair, and a secretary. The offices
 of chair and secretary may not be held by the same person.
 Sec. 3936.058.  COMPENSATION; EXPENSES. (a) The district
 may compensate each director in an amount not to exceed $50 for each
 board meeting. The total amount of compensation a director may
 receive each year may not exceed $2,000.
 (b)  A director is entitled to reimbursement for necessary
 and reasonable expenses incurred in carrying out the duties and
 responsibilities of the board.
 Sec. 3936.059.  LIABILITY INSURANCE. The district may obtain
 and pay for comprehensive general liability insurance coverage from
 a commercial insurance company or other source that protects and
 insures a director against personal liability and from all claims
 relating to:
 (1)  actions taken by the director in the director's
 capacity as a member of the board;
 (2)  actions and activities taken by the district; or
 (3)  the actions of others acting on behalf of the
 district.
 Sec. 3936.060.  NO EXECUTIVE COMMITTEE. The board may not
 create an executive committee to exercise the powers of the board.
 Sec. 3936.061.  BOARD MEETINGS. The board shall hold
 meetings at a place accessible to the public.
 Sec. 3936.062.  INITIAL DIRECTORS. (a) The initial board
 consists of:
 Pos. No.  Name of Director  Pos. No.  Name of Director
 Pos. No.  Name of Director
 1  John Hauser  1  John Hauser
 1  John Hauser
 2  Sophia Filfil  2  Sophia Filfil
 2  Sophia Filfil
 3  John Speers  3  John Speers
 3  John Speers
 4  Debi Armstrong  4  Debi Armstrong
 4  Debi Armstrong
 5  Zach Dehghanpoo  5  Zach Dehghanpoo
 5  Zach Dehghanpoo
 (b)  The terms of the initial directors expire June 1, 2019.
 (c)  Of the directors who replace an initial director, the
 terms of directors serving in positions 1 through 3 expire June 1,
 2021, and the terms of directors serving in positions 4 and 5 expire
 June 1, 2023.
 (d)  Section 3936.052 does not apply to initial directors
 under this section.
 (e)  This section expires September 1, 2023.
 SUBCHAPTER C.  POWERS AND DUTIES
 Sec. 3936.101.  GENERAL POWERS AND DUTIES.  The district has
 the powers and duties necessary to accomplish the purposes for
 which the district is created.
 Sec. 3936.102.  IMPROVEMENT PROJECTS AND SERVICES.  The
 district may provide, design, construct, acquire, improve,
 relocate, operate, maintain, or finance an improvement project or
 service using money available to the district, or contract with a
 governmental or private entity to provide, design, construct,
 acquire, improve, relocate, operate, maintain, or finance an
 improvement project or service authorized under this chapter or
 Chapter 375, Local Government Code.
 Sec. 3936.103.  LOCATION OF IMPROVEMENT PROJECT.  An
 improvement project described by Section 3936.102 may be located:
 (1)  in the district; or
 (2)  in an area outside but adjacent to the district if
 the project is for the purpose of extending a public infrastructure
 improvement beyond the district's boundaries to a logical terminus.
 Sec. 3936.104.  DEVELOPMENT CORPORATION POWERS. The
 district, using money available to the district, may exercise the
 powers given to a development corporation under Chapter 505, Local
 Government Code, including the power to own, operate, acquire,
 construct, lease, improve, or maintain a project under that
 chapter.
 Sec. 3936.105.  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. 3936.106.  AGREEMENTS; GRANTS. (a)  As provided by
 Chapter 375, Local Government Code, the district may make an
 agreement with or accept a gift, grant, or loan from any person.
 (b)  The implementation of a project is a governmental
 function or service for the purposes of Chapter 791, Government
 Code.
 Sec. 3936.107.  LAW ENFORCEMENT SERVICES. To protect the
 public interest, the district may contract with a qualified party,
 including the city or a county, to provide law enforcement services
 in the district for a fee.
 Sec. 3936.108.  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. 3936.109.  ECONOMIC DEVELOPMENT. (a) The district may
 engage in activities that accomplish the economic development
 purposes of the district.
 (b)  The district may establish and provide for the
 administration of one or more programs to promote state or local
 economic development and to stimulate business and commercial
 activity in the district, including programs to:
 (1)  make loans and grants of public money; and
 (2)  provide district personnel and services.
 (c)  The district may create economic development programs
 and exercise the economic development powers that:
 (1)  Chapter 380, Local Government Code, provides to a
 municipality; and
 (2)  Subchapter A, Chapter 1509, Government Code,
 provides to a municipality.
 Sec. 3936.110.  REAL PROPERTY RESTRICTIONS. (a) The
 district may adopt restrictions on the use of real property in the
 district.
 (b)  The district may enforce restrictions on the use of real
 property in the district in the manner provided for a municipal
 utility district by Section 54.237, Water Code.
 Sec. 3936.111.  MUNICIPAL UTILITY DISTRICT POWERS.  The
 district has the powers granted to a municipal utility district by
 Subchapter D, Chapter 54, Water Code.
 Sec. 3936.112.  CONCURRENCE ON ADDITIONAL POWERS. If the
 legislature grants the district a power that is in addition to the
 powers approved by the initial resolution of the governing body of
 the city consenting to the creation of the district, the district
 may not exercise that power unless the governing body of the city
 consents to that change by resolution.
 Sec. 3936.113.  NO EMINENT DOMAIN POWER.  The district may
 not exercise the power of eminent domain.
 SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
 Sec. 3936.151.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
 board by resolution shall establish the number of signatures and
 the procedure required for a disbursement or transfer of the
 district's money.
 Sec. 3936.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
 The district may acquire, construct, finance, operate, or maintain
 an improvement project or service authorized under this chapter or
 Chapter 375, Local Government Code, using any money available to
 the district.
 Sec. 3936.153.  GENERAL POWERS REGARDING PAYMENT OF DISTRICT
 BONDS, OBLIGATIONS, OR OTHER COSTS.  The district may provide or
 secure the payment or repayment of any bond, note, or other
 temporary or permanent obligation or reimbursement or other
 contract with any person and the costs and expenses of the
 establishment, administration, and operation of the district and
 the district's costs or share of the costs or revenue of an
 improvement project or district contractual obligation or
 indebtedness by:
 (1)  the imposition of an ad valorem tax or sales and
 use tax or an assessment, user fee, concession fee, or rental
 charge; or
 (2)  any other revenue or resources of the district, or
 other revenue authorized by the city, including revenues from a tax
 increment reinvestment zone created by the city under applicable
 law.
 Sec. 3936.154.  PETITION REQUIRED FOR FINANCING SERVICES AND
 IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
 service or improvement project with assessments under this chapter
 unless a written petition requesting that service or improvement
 has been filed with the board.
 (b)  The petition must be signed by the owners of a majority
 of the assessed value of real property in the district subject to
 assessment according to the most recent certified tax appraisal
 roll for the county.
 Sec. 3936.155.  METHOD OF NOTICE FOR HEARING. The district
 may mail the notice required by Section 375.115(c), Local
 Government Code, by certified or first class United States mail.
 The board shall determine the method of notice.
 Sec. 3936.156.  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.
 Sec. 3936.157.  STORM WATER USER CHARGES.  The district may
 establish user charges related to the operation of storm water
 facilities, including the regulation of storm water for the
 protection of water quality in the district.
 Sec. 3936.158.  NONPOTABLE WATER USER CHARGES.  The district
 may establish user charges for the use of nonpotable water for
 irrigation purposes, subject to approval of the governing body of
 the city.
 Sec. 3936.159.  COSTS FOR IMPROVEMENT PROJECTS.  The
 district may undertake separately or jointly with other persons,
 including the city or a county, all or part of the cost of an
 improvement project, including an improvement project:
 (1)  for improving, enhancing, and supporting public
 safety and security, fire protection and emergency medical
 services, and law enforcement in or adjacent to the district; or
 (2)  that confers a general benefit on the entire
 district or a special benefit on a definable part of the district.
 Sec. 3936.160.  TAX AND ASSESSMENT ABATEMENTS.  The district
 may designate reinvestment zones and may grant abatements of a tax
 or assessment on property in the zones.
 Sec. 3936.161.  POWERS OF MUNICIPAL UTILITY DISTRICT TO
 ESTABLISH DEFINED AREAS AND DESIGNATED PROPERTY; TAXES; BONDS.  The
 district has the powers of a municipal utility district under
 Subchapter J, Chapter 54, Water Code, including the power to:
 (1)  implement a plan;
 (2)  issue bonds; and
 (3)  impose a tax in a defined area established under
 that subchapter.
 SUBCHAPTER E.  TAXES AND BONDS
 Sec. 3936.201.  TAX ABATEMENT.  The district may enter into a
 tax abatement agreement in accordance with the general laws of this
 state authorizing and applicable to a tax abatement agreement by a
 municipality.
 Sec. 3936.202.  PROPERTY TAX AUTHORIZED.  (a)  The district
 may impose an ad valorem tax on all taxable property in the district
 to:
 (1)  pay for an improvement project of the types
 authorized by Section 52(b), Article III, and Section 59, Article
 XVI, Texas Constitution, and Chapter 54, Water Code; or
 (2)  secure the payment of bonds issued for a purpose
 described by Subdivision (1).
 (b)  The district may not impose an ad valorem tax to pay for
 an improvement project under this chapter unless the imposition is
 approved by the voters of the district voting at an election held
 for that purpose. The board may call an election to approve the
 imposition of an ad valorem tax to pay for an improvement project
 under this chapter only if the board receives a petition requesting
 the election signed by:
 (1)  more than 51 percent of the record owners of real
 property in the district subject to taxation; or
 (2)  owners representing more than 51 percent of the
 appraised value of real property in the district subject to
 taxation, as determined by the tax rolls of the appraisal district.
 Sec. 3936.203.  SALES AND USE TAX.  (a)  The district may
 impose a sales and use tax if authorized by a majority of the voters
 of the district voting at an election called for that purpose.
 Revenue from the tax may be used for any purpose for which ad
 valorem tax revenue of the district may be used.
 (b)  The district may not adopt a sales and use tax if as a
 result of the adoption of the tax the combined rate of all sales and
 use taxes imposed by the district and other political subdivisions
 of this state having territory in the district would exceed two
 percent at any location in the district.
 (c)  If the voters of the district approve the adoption of
 the tax at an election held on the same election date on which
 another political subdivision adopts a sales and use tax or
 approves an increase in the rate of its sales and use tax and as a
 result the combined rate of all sales and use taxes imposed by the
 district and other political subdivisions of this state having
 territory in the district would exceed two percent at any location
 in the district, the election to adopt a sales and use tax under
 this chapter has no effect.
 Sec. 3936.204.  BONDS AND OTHER OBLIGATIONS. (a) The
 district may issue, by public or private sale, bonds, notes, or
 other obligations payable wholly or partly from ad valorem taxes,
 sales and use taxes, or assessments in the manner provided by
 Subchapter A, Chapter 372, or Subchapter J, Chapter 375, Local
 Government Code.
 (b)  In exercising the district's borrowing power, 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.
 (c)  In addition to the sources of money described by
 Subchapter A, Chapter 372, and Subchapter J, Chapter 375, Local
 Government Code, district bonds may be secured and made payable
 wholly or partly by a pledge of any part of the money the district
 receives from improvement revenue or from any other source.
 (d)  The limitation on the outstanding principal amount of
 bonds, notes, and other obligations provided by Section 49.4645,
 Water Code, does not apply to the district.
 Sec. 3936.205.  BOND MATURITY. Bonds may mature not more
 than 40 years from their date of issue.
 Sec. 3936.206.  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 for each year that all or part of the bonds are
 outstanding; and
 (2)  the district annually shall impose an 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; and
 (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.
 SUBCHAPTER F.  DISSOLUTION
 Sec. 3936.251.  DISSOLUTION BY CITY ORDINANCE. (a) The city
 by ordinance may dissolve the district.
 (b)  The city may not dissolve the district until the
 district's outstanding debt or contractual obligations that are
 payable from ad valorem taxes have been repaid or discharged, or the
 city has affirmatively assumed the obligation to pay the
 outstanding debt from city revenue.
 Sec. 3936.252.  COLLECTION OF ASSESSMENTS AND OTHER REVENUE.
 (a) If the dissolved district has bonds or other obligations
 outstanding secured by and payable from assessments or other
 revenue, other than ad valorem taxes, the city shall succeed to the
 rights and obligations of the district regarding enforcement and
 collection of the assessments or other revenue.
 (b)  The city shall have and exercise all district powers to
 enforce and collect the assessments or other revenue to pay:
 (1)  the bonds or other obligations when due and
 payable according to their terms; or
 (2)  special revenue or assessment bonds or other
 obligations issued by the city to refund the outstanding bonds or
 obligations.
 Sec. 3936.253.  ASSUMPTION OF ASSETS AND LIABILITIES. (a)
 After the city dissolves the district, the city assumes, subject to
 the appropriation and availability of funds, the obligations of the
 district, including any bonds or other debt payable from
 assessments or other district revenue.
 (b)  If the city dissolves the district, the board shall
 transfer ownership of all district property to the city.
 SECTION 2.  The East Lake Houston Management District
 initially includes all the territory contained in the following
 area:
 Tract 1 or East Lake Houston Tract is +/- 137 acres, within the F.
 Rankin Survey Abstract (No. 57) and situated southwest of
 intersection Crosby Huffman Road (Farm-to-Market Road 2100) and Old
 Atascocita Road in northeast Harris County with point of beginning
 being southeast corner of +/- 137 acre tract (ABST 57 F H RANKIN TRS
 8A & 8B) and west Right-Of-Way (ROW) of Crosby Huffman Road (FM
 2100) and north boundary of Spanish Cove Subdivision Section 2;
 Then generally west along south boundary of said 137 acre tract, and
 north boundary of Spanish Cove Subdivision Sections 1-2 to east ROW
 Union Pacific Railway (former BSL&W);
 Then northeast along the east ROW of Union Pacific Railway (former
 BSL&W) to a point southeast of northeast corner of 0.2914 acre
 parcel (ABST 57 F H RANKIN TRS 8B-1 & 8B-2 (LIFT STATION) (PT NM));
 Then northwest across ROW of Union Pacific Railway and along south
 boundary of said +/- 137 acre tract to northeast corner of said
 0.2914 acre parcel;
 Then west along south boundary of said +/- 137 acre tract and north
 boundary of said 0.2914 acre parcel to northwest corner of said
 0.2914 acre parcel;
 Then south along boundary line of said +/- 137 acre tract and west
 boundary of said 0.2914 acre parcel to southwest corner of said
 0.2914 parcel and north boundary of 0.455 acre parcel (SPANISH COVE
 SEC 1 LT 44 BLK 1);
 Then west along boundary line of said +/- 137 acre tract and north
 boundary of said 0.455 acre parcel, and 0.499 acre parcel (SPANISH
 COVE SEC 1 LT 43 BLK 1) to southwest corner of said +/- 137 acre
 tract;
 Then northeast and north along the west boundary of said +/- 137
 acre tract to northwest corner of said tract and southwest corner of
 0.73 acre tract (ABST 57 F H RANKIN TRS 1E 1F 1G & 1K);
 Then east along north boundary of said +/- 137 acre tract, across
 ROW of Union Pacific Railway to northeast corner of said tract and
 west ROW of Crosby Huffman Road (FM 2100);
 Then south along east boundary of said +/- 137 acre tract and west
 ROW of Crosby Huffman Road (FM 2100) to southeast corner of said +/-
 137 acre tract and point of beginning of +/-137 acre Tract 1;
 Tract 2 or Red Wolf Tract is +/- 298 acres (called 296.28 acres), is
 situated 1.3 miles northeast of intersection of Humble-Crosby Road
 (Farm-to-Market Road 2100) and Luce Bayou (trib. to Lake Houston)
 in northeast Harris County and being out of and a part of the JOHN R.
 RHEA SURVEY, A-62, Harris County, Texas, and being composed of that
 called 296.28 acre tract referred to as Exhibit A-2 in deed from
 Donald T. Keller, Jr., and Sanford G. Cohen as Substitute Trustees
 to LBP Properties, LLC as recorded in Harris County Clerk's File
 (HCCF) 20100142110 and that called 0.1261 acre tract conveyed to PB
 Advantage, LLC, a Texas limited liability company by LBP
 Properties, LLC, as recorded in HCCF 20110468701 and being more
 particularly described by metes and bounds as follows:
 The bearings in this description are based on the Texas State Plane
 Coordinate System, South Central Zone, NAD 83, as determined from
 GPS observations.
 BEGINNING at the northeast corner of a called 296.28 acre tract
 described in Exhibit "A-2" of HCCF 201001412110, said point being a
 brass disk in concrete, said point also being an interior corner of
 a called 530.18 acre tract designated Tract 2 Parcel D in that
 certain deed to Ned Holmes, recorded in HCCF F520006;
 THENCE along the east line of the called 296.28 acre tract and a
 westerly line of the said Holmes tract S 03°06'44" E a distance of
 3,188.97 feet (called S 00°24'06" E 3,186.25 feet) to a 5/8" iron rod
 found for corner in the southwest line of a Gulf States Utilities
 150' easement, same being the northeast line of Fairway Crossing At
 Lake Houston Sec Two, the map of which is recorded in HCCF# 420032;
 THENCE N 65°09'42" W along the northeast line of said subdivision
 and the southwest line of said easement a distance of 1,333.90 feet
 (called N 62°58'31"W 1,333.99 feet) to a 1/2"" iron rod found for
 corner at the intersection of the northeast line of said Fairway
 Crossing At Lake Houston Sec Two, and the easterly line of that
 certain called 14.49712 acre tract referred to as Tract C, Exhibit
 "2-C" as recorded in HCCF 20100142110;
 THENCE along the easterly line of said called 14.49712 acre tract as
 follows:
 N 80°54'19" E 236.13 feet (called N 82°01'21" E 243.56 feet in the
 called 296.28 acre description and N 83°50'49" E 235.81 feet in the
 called 14.49712 acre description) to a 1/2" iron rod found for
 corner;
 N 14°01'16" W 928.56 feet (called N 11°17'34" W 926.79 feet in the
 called 296.28 acre description and N 11°01'17" W 926.79 feet in the
 called 14.49712 acre description) to a 16d nail found for corner;
 N 25°46'00" E 391.76 feet (called N 28°05'34" E 381.49 feet in the
 called 296.28 acre description and N 28°30'46" E 392.75 feet in the
 called 14.49712 acre description) to a 1/2" iron rod found for
 corner;
 N 02°01'06" E 308.36 feet (called N 05°11'44" E 307.39 feet in the
 called 296.28 acre description and N04°58'01"E 308.33 feet in the
 called 14.49712 acre description) to a 1/2" iron rod found for
 corner;
 N 61°46'38" W 210.87 feet (called N 56°09'08" W 213.35 feet in the
 called 296.28 acre description and N58°49'35" W 210.71 feet in the
 called 14.49712 acre description) to a 1/2" iron rod found for
 corner;
 S 28°09'20" W 152.72 feet (called S 31°20'05" W 163.96 feet in the
 called 296.28 acre description and S 31°10'25"W 152.63 feet in the
 called 14.49712 acre description ) to a 1/2" iron rod found for
 corner;
 S 61°51'40" E 29.90 feet (called S 58°41'04" E 30.00 feet in the
 called 296.28 acre description and S 58°49'35"E 30.00 feet in the
 called 14.49712 acre description) to a bent 1/2" iron rod found for
 corner;
 S 19°54'48" W 732.14 feet (called S 22°57'53" W 729.79 feet in the
 called 296.28 acre description and S 22°53'35" W 732.05 feet in the
 called 14.49712 acre description) to a 1/2" iron rod found for
 corner;
 S 24°55'18" E 724.63 feet (called S 21°38'23" E 725.62 feet in the
 called 296.28 acre description and S 21°57'23"E 724.64 feet in the
 called 14.49712 acre description) to 1/2" iron rod found for
 corner;
 S 80°53'45" W 342.17 feet (called S 84°10'59" W 339.44 feet in the
 called 296.28 acre description and S 83°50'49"W 342.64 feet in the
 called 14.49712 acre description) to a 5/8" iron rod with plastic
 cap set for corner;
 S 51°55'05" W 75.08 feet (called S 55°24'45" W 77.82 feet in the
 called 296.28 acre description and S 4°52'09"W 74.46 feet in the
 called 14.49712 acre description) to a 1/2" iron rod found for
 corner;
 S 55°56'57" W 171.23 feet (called S 59°02'06" W 171.45 feet in the
 called 296.28 acre description and S 58°53'35" W 171.45 feet in the
 called 14.49712 acre description) to a 5/8" iron rod found for
 corner;
 S 35°29'07" W 491.18 feet (called S 38°34'34" W 490.92 feet in the
 called 296.28 acre description and S 38°26'03" W 490.92 feet in the
 called 14.49712 acre description) to a bent 1/2" iron rod found for
 corner;
 S 31°08'26" W 85.71 feet (called S 34°13'30" W 85.80 feet in the
 called 296.28 acre description and S34°05'04"W 85.80 feet in the
 called 14.49712 acre description) to a 5/8" iron rod found for
 corner at the northernmost corner of the above called 0.1261 acre
 tract; same being the southwesterly corner of the called 14.49712
 acre tract;
 THENCE S 50°37'55" E 92.81 feet (called S 48°03'42" E 94.48 feet)
 along the southerly line of the called 14.49712 acre tract and the
 northerly line of the called 0.1261 acre tract to a 5/8" iron rod
 found for corner at the westernmost corner of Lot 1, Block 4 of
 Fairway Crossing At Lake Houston Sec Two, the map of which is
 recorded in Film Code 420032, and being the northwest corner of
 North Fairway Oaks Drive, a 60' wide right of way;
 THENCE S 33°15'47" W 60.29 feet (plat call S 36°25'22" W 60.28
 feet)along the west end of North Fairway Oaks Drive and the east
 line of the called 0.1261 acre tract to a 1/2" iron rod found for
 corner at the southwest corner of North Fairway Oaks Drive and the
 northwest corner of Lot 2, Block 5, same being the northeasterly
 corner of that certain called 12.68949 acre tract referred to as
 Tract B, Exhibit "2 B" in the aforementioned HCCF 20100142110;
 THENCE N 50°37'55" W 90.55 feet (called N 48°03'44" W 92.00 feet in
 the called 12.68949 acre description) along the south line of the
 called 0.1261 acre tract and the north line of the called 12.68949
 acre tract to a bent 1/2" iron rod found at the westernmost corner
 of the called 0.1261 acre tract and the northwest corner of the
 called 12.68949 acre tract;
 THENCE along the westerly line of the called 12.68949 acre tract as
 follows:
 S 69°35'25"W 128.56 feet (called S 72°46'05" W 128.85 feet in the
 called 296.28 acre tract and S 72°37'34"W 128.85 feet in the called
 12.68949 acre tract) to a 1/2" iron rod found for corner;
 S 75°15'33"W 892.23 feet (called S 78°21'40" W 892.22 feet in the
 called 296.28 acre tract and S 78°13'09"W 892.22 feet in the called
 12.68949 acre tract) to a 1/2" iron rod found for corner;
 S 45°02'53"W 488.53 feet (called S 48°07'53" W 488.36 feet in the
 called 296.28 acre tract and S 47°59'22"W 488.36 feet in the called
 12.68949 acre tract) to a 1/2" iron rod found for corner;
 S 30°53'17"W 259.05 feet (called S 34°03'03" W 258.86 feet in the
 called 296.28 acre tract and S 33°54'32"W 258.86 feet in the called
 12.68949 acre tract) to a 1/2" iron rod found for corner;
 S 14°22'04"W 125.12 feet (called S 16°58'32" W 125.63 feet in the
 called 296.28 acre tract and S 16°50'01" W 125.63 feet in the called
 12.68949 acre tract) to a 5/8" iron rod found for corner;
 S 58°04'53"W 122.13 feet (called S 61°45'16" W 122.45 feet in the
 called 296.28 acre tract and S 61°36'45" W 122.45 feet in the called
 12.68949 acre tract) to a bent 1/2" iron rod found for corner;
 S 20°15'20"W 79.05 feet (called S 23°00'26" W 79.80 feet in the
 called 296.28 acre tract and S 22°51'55" W 79.81 feet in the called
 12.68949 acre tract) to a 1/2" iron rod found for the westernmost
 corner of the called 12.678949 acre tract and the southernmost
 corner of the called 296.28 acre tract, said point falling in the
 north line of Golf View Lane, based on a width of 60 feet; access to
 Golf View Lane is denied based on a 1' buffer reserve per the
 recorded plat HCFC 619004;
 THENCE N 70°04'57"W a distance of 405.90 feet (called N 66°59'31" W
 407.83 feet) along the north line of Golf View Lane to a 3/4" iron
 rod found for corner at the intersection of the north line of Golf
 View Lane and the east line of a certain called 45.88444 acre tract
 referred to as Tract A, Exhibit 2-A, HCCF 20100142110;
 THENCE along the east line of the called 45.88444 acre tract as
 follows:
 N 27°27'07" E 103.92 feet (called N 34°19'47"E 106.12 feet in the
 called 296.28 acre tract) to a 1/2" iron rod found for corner;
 N 00°48'38" E 775.41 feet (called N 04°03'47" E 775.14 feet in the
 called 296.28 acre tract and N 03°55'16" E 775.14 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 N 11°47'50" E 278.92 feet (called N 14°55'16" E 279.03 feet in the
 called 296.28 acre tract and N 14°46'45" E 379.00 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 N 15°01'22" E 125.05 feet (called N 18°07'02" E 125.00 feet in the
 called 296.28 acre tract) to a 5/8" iron rod set for corner at the
 southwest corner of a called 0.2006 acre tract referred to as Tract
 H, Exhibit "2-H" in HCCF 20100142110;
 THENCE leaving the east line of the called 45.88444 acre tract and
 along the boundary of the called 0.2006 acre tract the following
 courses and distances:
 N 80°23'56" E 88.16 feet (called N 83°29'31" E 88.0 feet in the called
 296.28 acre tract and called N 83°21'00" E 88.00 feet in the called
 0.2006 acre tract) to a 5/8" iron rod found for corner;
 N 08°02'56" E 104.00 feet (called N 11°08'31" E 104.00 feet in the
 called 296.28 acre tract and called N 11°00'00" E 104.00 feet in the
 called 0.2006 acre tract) to a 5/8" iron rod found for corner;
 N 83°20'05" W 68.24 feet (called N 80°14'30" W 68.09 feet in the
 called 296.28 acre tract and called N 80°23'01" W 68.09 feet in the
 called 0.2006 acre tract) to a 5/8" iron rod found for corner in the
 east line of the called 45.88444 acre tract at the northwest corner
 of the called 0.2006 acre tract;
 THENCE along the east line of the called 45.88444 acre tract as
 follows:
 N 15°01'22"E 374.10 feet (called N 18°07'02" E 374.33 feet) to a 1/2"
 iron rod found for corner; N 04°42'24"W 268.97 feet (called
 N01°36'25"W 269.04 feet in the called 296.28 acre tract and
 N01°44'56"W 269.04 feet in the called 45.88444 acre tract) to a 5/8"
 iron rod found for corner;
 N 08°39'46"W 492.91 feet (called N 05°34'11" W 492.91 feet in the
 called 296.28 acre tract and N05°42'42"W 492.91 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 N 27°20'18"W 157.05 feet (called N 24°24'44" W 154.74 feet in the
 called 296.28 acre tract and N24°33'15"W 154.74 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 THENCE N 35°22'31"E 38.49 feet (called N 36°20'10" E 40.09 feet in
 the called 296.28 acre tract and N36°12'07"E 40.09 feet in the
 called 45.88444 acre tract) to a 1/2" iron rod found for the
 northeast corner of the called 45.88444 acre tract;
 THENCE N 86°36'57"E 126.94 feet (called N 89°43'13" E 126.82 feet in
 the called 296.28 acre tract) to a 1/2" iron rod found for corner
 same being the southeast corner of a called 17.75276 acre tract
 referred to as Tract D, Exhibit "2-D" as recorded in HCCF
 20100142110;
 THENCE along the perimeter of the called 17.75276 acre tract as
 follows:
 N 43°50'37" E 581.47 feet (called N 46°57'34" E 581.37 feet in the
 called 296.28 acre tract and N 46°49'03"E 581.37 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N 49°55'28" E 351.83 feet (called N 53°01'09" E 351.94 feet in the
 called 296.28 acre tract and N 52°52'38"E 351.94 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N 81°25'46" E 316.32 feet (called N 84°30'32" E 315.99 feet in the
 called 296.28 acre tract and N 84°22'01"E 315.99 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S 28°09'17" E 207.98 feet (called S 24°59'15" E 208.09 feet in the
 called 296.28 acre tract and S 25°07'54"E 208.29 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S69°24'27" E 688.15 feet (called S 66°21'05" E 688.15 feet in the
 called 296.28 acre tract and S 66°29'36"E 688.15 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N79°02'26"E 754.79 feet (called N 82°10'03" E 754.71 feet in the
 called 296.28 acre tract and N 82°01'32"E 754.71 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S61°49'53"E 48.38 feet (called S 58°41'04" E 48.22 feet in the called
 296.28 acre tract and S 58°49'35"E 48.22 in the called 17.75276 acre
 tract) to a 5/8" iron rod found for corner;
 N28°09'20"E 152.63 feet (called N 31°20'05" E 163.98 feet in the
 called 296.28 acre tract and N 31°10'25"E 152.63 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N61°47'48"W 110.97 feet (called N 59°05'52" W 110.91 feet in the
 called 296.28 acre tract and N58°49'35"W 110.91 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S85°38'08"W 703.20 feet (called S88°02'49" W 707.15 feet in the
 called 296.28 acre tract and S88°35'31"W 703.22 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N 66°18'11"W 578.25 feet (called N 63°08'04" W 576.35 feet in the
 called 296.28 acre tract and N 63°20'34"W 578.20 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N 07°07'29"E 119.96 feet (called N 09°48'52" E 120.00 feet in the
 called 296.28 acre tract and N 10°05'09"E 120.00 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 N 72°30'45"W 254.23 feet (called N 69°30'15" W 254.67 feet in the
 called 296.28 acre tract and N 69°29'18"W 254.20 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S 77°07'40"W 613.42 feet (called S80°11'27" W 613.36 feet in the
 called 296.28 acre tract and S 80°02'56"W 613.36 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S 66°31'16"W 74.51 feet (called S 69°48'19" W 74.55 feet in the
 called 296.28 acre tract and S 69°39'48"W 74.55 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner;
 S 41°44'01"W 900.90 feet (called S 44°50'16" W 901.02 feet in the
 called 296.28 acre tract and S 44°41'45"W 901.02 feet in the called
 17.75276 acre tract) to a 1/2" iron rod found for corner at the
 southwest corner of the called 17.75276 acre tract;
 THENCE S 13°30'17"E 76.76 feet (called S 10°19'13"E 76.41 feet in the
 called 296.28 acre tract) to a 1/2" iron rod found at the northwest
 corner of the previously mentioned called 45.88444 acre tract;
 THENCE continuing along the west line of the called 45.88444 acre
 tract as follows:
 S 55°35'24" W 145.50 feet (called S 58°34'17" W 145.44 feet in the
 called 296.28 acre tract and S 58°25'45"W 145.44 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 S 00°34'21" W 338.38 feet (called S 03°41'22" W 338.21 feet in the
 called 296.28 acre tract and S 03°32'51"W 338.21 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 S 12°53'23" E 563.12 feet (called S 09°47'24" E 563.17 feet in the
 called 296.28 acre tract and S 09°55'55"E 563.17 feet in the called
 45.88444 acre tract) to a 1/2" iron rod found for corner;
 S 23°05'47" W 500.11 feet (called S 26°11'56" W 518.43 feet in the
 called 296.28 acre tract) to the center of Mexican Gully and the
 northernmost corner of Lot 4, Block 1 of Fairway Crossing At Lake
 Houston Sec 6, the map of which is recorded in HCCF 619004;
 THENCE along the centerline of Mexican Gully and the north line of
 Fairway Crossing At Lake Houston Sec 6 the following courses and
 distances:
 S 78°19'25" W 159.62 feet;
 S 58°33'36" E 50.18 feet;
 S 56°10'34" W 88.29 feet;
 S 69°58'30" W 134.39 feet;
 N 48°59'41" W 200.44 feet;
 S 68°19'46" W 248.22 feet;
 S 01°06'53" E 150.83 feet;
 S 67°24'23" W 245.65 feet;
 S 47°42'48" W 139.43 feet;
 S 12°08'51" E 74.49 feet;
 S 15°19'27" E121.44 feet to the center of Luce Bayou;
 THENCE along the center of Luce Bayou as follows:
 N 86°30'53" W39.56 feet;
 S 89°52'33" W129.23 feet;
 N 70°38'13" W178.22 feet;
 N 58°56'28" W146.63 feet;
 N 34°52'28" W137.27 feet;
 N 12°26'05" W211.68 feet;
 N 23°10'46" E87.01 feet;
 N 54°16'47" E83.54 feet;
 N 25°54'48" E133.66 feet;
 N 55°01'33" E55.56 feet;
 N 21°22'10" E106.67 feet;
 N 53°49'00" E86.13 feet;
 S 65°31'41" E93.18 feet;
 S 59°07'21" E87.78 feet;
 S 36°39'52" E78.63 feet;
 N 54°27'19" E255.38 feet;
 N 04°28'28" E236.87 feet;
 S 88°02'08" E373.40 feet;
 N 21°24'47" E130.93 feet;
 N 28°58'59" W310.88 feet;
 N 55°56'15" W276.86 feet;
 N 16°17'33" W180.44 feet;
 N 28°42'30" W175.44 feet;
 N 45°33'12" E324.30 feet;
 N 19°10'00" E200.32 feet;
 S 85°37'21" E129.05 feet;
 S 12°10'03" W162.50 feet;
 S 66°28'37" E214.05 feet;
 N 71°24'50" E176.10 feet;
 N 32°58'25" W471.75 feet;
 N 23°27'47" E147.60 feet;
 S 59°20'36" E281.49 feet;
 N 04°07'09" E75.17 feet;
 N 20°56'02" W293.88 feet;
 N 31°07'23" E133.76 feet;
 N 40°22'47" E236.30 feet;
 S 52°04'44" E175.06 feet;
 S 85°46'53" E217.37 feet;
 N 72°02'52" E142.62 feet;
 S 64°19'26" E130.86 feet;
 N 47°10'33" E249.93 feet;
 N 47°32'27" E 40.03 feet to a point in the north line of the called
 296.28 acre tract and the south line of the Ned Holmes Tract 2
 Parcel D Called 530.18 acre tract described in HCCF# F52006;
 THENCE along the north line of the called 296.28 acre tract and the
 south line of the Holmes tract N 87°14'06" E (called S 89°55'11" E) at
 603.11 pass a concrete monument with brass disk, and continuing for
 a total distance of 3,252.43 feet (called 3,240.28 feet) to the
 place of BEGINNING of Tract 2, containing 12,983,894 square feet,
 or 298.069 acres of land, more or less (called 296.28 acres).
 The meanders along Luce Bayou were determined from aerial
 photography for the purposes of calculating acreage. The actual
 boundary along this line is the center of the creek.
 SECTION 3.  (a) The legal notice of the intention to
 introduce this Act, setting forth the general substance of this
 Act, has been published as provided by law, and the notice and a
 copy of this Act have been furnished to all persons, agencies,
 officials, or entities to which they are required to be furnished
 under Section 59, Article XVI, Texas Constitution, and Chapter 313,
 Government Code.
 (b)  The governor, one of the required recipients, has
 submitted the notice and Act to the Texas Commission on
 Environmental Quality.
 (c)  The Texas Commission on Environmental Quality has filed
 its recommendations relating to this Act with the governor,
 lieutenant governor, and speaker of the house of representatives
 within the required time.
 (d)  The general law relating to consent by political
 subdivisions to the creation of districts with conservation,
 reclamation, and road powers and the inclusion of land in those
 districts has been complied with.
 (e)  All requirements of the constitution and laws of this
 state and the rules and procedures of the legislature with respect
 to the notice, introduction, and passage of this Act have been
 fulfilled and accomplished.
 SECTION 4.  This Act takes effect immediately if it receives
 a vote of two-thirds of all the members elected to each house, as
 provided by Section 39, Article III, Texas Constitution.  If this
 Act does not receive the vote necessary for immediate effect, this
 Act takes effect September 1, 2017.

 Pos. No.  Name of Director

 1  John Hauser

 2  Sophia Filfil

 3  John Speers

 4  Debi Armstrong

 5  Zach Dehghanpoo