1-1                                   AN ACT
 1-2     relating to the powers of Harris County Improvement District No. 1;
 1-3     authorizing the imposition of taxes.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 6, Chapter 1026, Acts of the 70th
 1-6     Legislature, Regular Session, 1987, is amended by adding Subsection
 1-7     (C) to read as follows:
 1-8           (C)  Except as otherwise provided, Chapter 375, Local
 1-9     Government Code, applies to the district.  The district has the
1-10     rights, powers, privileges, authority, and functions of a district
1-11     created under Chapter 375, Local Government Code.
1-12           SECTION 2.  Chapter 1026, Acts of the 70th Legislature,
1-13     Regular Session, 1987, is amended by adding Section 7A to read as
1-14     follows:
1-15           Sec. 7A.  TAXES AND ASSESSMENTS. (A)  The district may impose
1-16     an ad valorem tax, assessment, or impact fee in accordance with
1-17     Chapter 375, Local Government Code, to provide improvements or
1-18     services for a project or activity the district is authorized to
1-19     acquire, construct, improve, or provide under this Act, if a
1-20     written petition has been filed with the board of directors,
1-21     requesting those improvements or services, signed by:
1-22                 (1)  the owners of 50 percent or more of the assessed
1-23     value of the property in the district as determined from the most
1-24     recent certified county property tax rolls; or
 2-1                 (2)  25 owners of property in the district, if there
 2-2     are more than 25 persons who own property in the district as
 2-3     determined by the most recent certified county property tax rolls.
 2-4           (B)  The district may not impose an impact fee or assessment
 2-5     on the property, equipment, rights-of-way, facilities, or
 2-6     improvements of:
 2-7                 (1)  an electric utility or a power generation company,
 2-8     as those terms are defined by Section 31.002, Utilities Code; or
 2-9                 (2)  a gas utility, as that term is defined by Section
2-10     101.003 or 121.001, Utilities Code; or
2-11                 (3)  a telecommunications provider, as that term is
2-12     defined by Section 51.002(10), Utilities Code; or
2-13                 (4)  a cable system, as that term is defined by the
2-14     Communications Act of 1934, as amended, Title VI, Sec. 602,
2-15     Subsection 7.
2-16           SECTION 3.  Chapter 1026, Acts of the 70th Legislature,
2-17     Regular Session, 1987, is amended by adding Section 7B to read as
2-18     follows:
2-19           Sec. 7B.  NONPROFIT CORPORATION. (A)  The board of directors
2-20     by resolution may authorize the creation of a nonprofit corporation
2-21     to assist and act on behalf of the district in implementing a
2-22     project or providing a service authorized by this Act.
2-23           (B)  The board of directors of the district shall appoint the
2-24     board of directors of a nonprofit corporation created under this
2-25     section.  The board of directors of the nonprofit corporation
2-26     serves in the same manner as, for the same term as, and on the
2-27     conditions of the board of directors of a local government
 3-1     corporation created under Chapter 431, Transportation Code.
 3-2           (C)  A nonprofit corporation created under this section has
 3-3     the powers of, and is considered for purposes of this Act to be, a
 3-4     local government corporation created under Subchapter D, Chapter
 3-5     431, Transportation Code.
 3-6           (D)  A nonprofit corporation created under this section may
 3-7     implement any project and provide any services authorized by this
 3-8     Act.
 3-9           SECTION 4.  Chapter 1026, Acts of the 70th Legislature,
3-10     Regular Session, 1987, is amended by adding Section 7C to read as
3-11     follows:
3-12           Sec. 7C.  MISCELLANEOUS POWERS OF DISTRICT. (a)  The district
3-13     may:
3-14                 (1)  finance, acquire, construct, improve, operate,
3-15     maintain, or charge fees for the use of its own conduits for
3-16     fiber-optic cable, electronic transmission lines, or other types of
3-17     transmission lines and supporting facilities; or
3-18                 (2)  finance, acquire, construct, improve, operate, or
3-19     maintain conference centers and supporting facilities.
3-20           (b)  Nothing in this section grants the district any
3-21     authority to require a person to use the conduits authorized by
3-22     this section.
3-23           SECTION 5.  Section 13, Chapter 1026, Acts of the 70th
3-24     Legislature, Regular Session, 1987, is amended to read as follows:
3-25           Sec. 13.  ANNEXATION. (A)  The district may, subject to the
3-26     approval of the governing body of the City of Houston, Texas:
3-27                 (1)  annex territory [land] in accordance with
 4-1     Subchapter J, Chapter 49 [Chapter 54], Water Code; or
 4-2                 (2)  annex territory located inside the boundaries of a
 4-3     reinvestment zone created under Chapter 311, Tax Code, as those
 4-4     boundaries exist on September 1, 2001, as provided by this section.
 4-5           (B)  The district may annex territory under Subsection (A)(2)
 4-6     only if:
 4-7                 (1)  the district holds a public hearing on the
 4-8     proposed annexation and publishes notice in the district not later
 4-9     than the 15th day before the date of the hearing; and
4-10                 (2)  a majority of the qualified voters of the area
4-11     that the district wants to annex, voting at an election called and
4-12     held within the area that the district wants to annex:
4-13                       (a)  approve the annexation;
4-14                       (b)  approve the assumption of the bonds, notes,
4-15     obligations, taxes, and special assessments created before the
4-16     annexation of the area to the district; and
4-17                       (c)  approve the assumption of the bonds of the
4-18     district payable wholly or partly from taxes or special assessments
4-19     that have been voted previously but not yet issued or sold and the
4-20     levy of an ad valorem tax or special assessment on all taxable
4-21     property within the annexed area for the payment of the bonds.
4-22           (C)  If, at an election held under Subsection (B), the voters
4-23     approve each proposition, the board of directors may adopt an order
4-24     adding the annexed territory into the district.
4-25           (D)  If the board of directors orders an election to be held
4-26     under Subsection (B), the election must be held and notice must be
4-27     given in the area that the district wants to annex as provided for
 5-1     a bond election held by the district.  The district may hold an
 5-2     election to annex territory on the same day as any other district
 5-3     election.  The board may call an election to annex territory by a
 5-4     separate election order or as a part of any other election order.
 5-5     The board may submit multiple purposes in a single proposition at
 5-6     an election.  The board may order multiple elections to annex the
 5-7     same territory.
 5-8           (E)  The district may annex defined areas of land, regardless
 5-9     of whether the areas are contiguous to the district.
5-10           (F)  An annexed area shall bear the area's pro rata share of
5-11     all bonds, notes, or other obligations, taxes, or special
5-12     assessments that may be owed, contracted for, or authorized by the
5-13     district.
5-14           (G)  The election, notice, and hearing requirements imposed
5-15     by this section do not apply to an annexation under Subchapter J,
5-16     Chapter 49, Water Code. [, subject to the approval of the governing
5-17     body of the city of Houston, Texas.]
5-18           SECTION 6.  (a)  The legislature validates and confirms all
5-19     governmental acts and proceedings of Harris County Improvement
5-20     District No. 1 and the district's board of directors that occurred
5-21     before the effective date of this Act.
5-22           (b)  This section does not apply to any matter that on the
5-23     effective date of this Act:
5-24                 (1)  is involved in litigation, if the litigation
5-25     ultimately results in the matter being held invalid by a final
5-26     judgment of a court of competent jurisdiction; or
5-27                 (2)  has been held invalid by a court of competent
 6-1     jurisdiction.
 6-2           SECTION 7.  This Act takes effect immediately if it receives
 6-3     a vote of two-thirds of all the members elected to each house, as
 6-4     provided by Section 39, Article III, Texas Constitution.  If this
 6-5     Act does not receive the vote necessary for immediate effect, this
 6-6     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2295 was passed by the House on April
         20, 2001, by the following vote:  Yeas 142, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2295 on May 25, 2001, by the following vote:  Yeas 140, Nays 0,
         2 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2295 was passed by the Senate, with
         amendments, on May 23, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor