1-1     By:  Woolley, Danburg, Nixon                          H.B. No. 2295
 1-2          (Senate Sponsor - Gallegos)
 1-3           (In the Senate - Received from the House April 23, 2001;
 1-4     April 24, 2001, read first time and referred to Committee on
 1-5     Business and Commerce; May 10, 2001, reported adversely, with
 1-6     favorable Committee Substitute by the following vote:  Yeas 6, Nays
 1-7     0; May 10, 2001, sent to printer.)
 1-8     COMMITTEE SUBSTITUTE FOR H.B. No. 2295                   By:  Lucio
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the powers of Harris County Improvement District No. 1;
1-12     authorizing the imposition of taxes.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Section 6, Chapter 1026, Acts of the 70th
1-15     Legislature, Regular Session, 1987, is amended by adding Subsection
1-16     (C) to read as follows:
1-17                       (C)  Except as otherwise provided, Chapter 375,
1-18     Local Government Code, applies to the district.  The district has
1-19     the rights, powers, privileges, authority, and functions of a
1-20     district created under Chapter 375, Local Government Code.
1-21           SECTION 2.  Chapter 1026, Acts of the 70th Legislature,
1-22     Regular Session, 1987, is amended by adding Section 7A to read as
1-23     follows:
1-24           Sec. 7A.  TAXES AND ASSESSMENTS.  (A)  The district may
1-25     impose an ad valorem tax, assessment, or impact fee in accordance
1-26     with Chapter 375, Local Government Code, to provide improvements or
1-27     services for a project or activity the district is authorized to
1-28     acquire, construct, improve, or provide under this Act, if a
1-29     written petition has been filed with the board of directors,
1-30     requesting those improvements or services, signed by:
1-31                 (1)  the owners of 50 percent or more of the assessed
1-32     value of the property in the district as determined from the most
1-33     recent certified county property tax rolls; or
1-34                 (2)  25 owners of property in the district, if there
1-35     are more than 25 persons who own property in the district as
1-36     determined by the most recent certified county property tax rolls.
1-37                       (B)  The district may not impose an impact fee or
1-38     assessment on the property, equipment, rights-of-way, facilities,
1-39     or improvements of:
1-40                 (1)  an electric utility or a power generation company,
1-41     as those terms are defined by Section 31.002, Utilities Code; or
1-42                 (2)  a gas utility, as that term is defined by Section
1-43     101.003 or 121.001, Utilities Code; or
1-44                 (3)  a telecommunications provider, as that term is
1-45     defined by Section 51.002 (10), Utilities Code; or
1-46                 (4)  a cable system, as that term is defined by the
1-47     Communications Act of 1934, as amended, Title VI, Sec. 602,
1-48     Subsection 7.
1-49           SECTION 3.  Chapter 1026, Acts of the 70th Legislature,
1-50     Regular Session, 1987, is amended by adding Section 7B to read as
1-51     follows:
1-52           Sec. 7B.  NONPROFIT CORPORATION.  (A)  The board of directors
1-53     by resolution may authorize the creation of a nonprofit corporation
1-54     to assist and act on behalf of the district in implementing a
1-55     project or providing a service authorized by this Act.
1-56                       (B)  The board of directors of the district shall
1-57     appoint the board of directors of a nonprofit corporation created
1-58     under this section.  The board of directors of the nonprofit
1-59     corporation serves in the same manner as, for the same term as, and
1-60     on the conditions of the board of directors of a local government
1-61     corporation created under Chapter 431, Transportation Code.
1-62                       (C)  A nonprofit corporation created under this
1-63     section has the powers of, and is considered for purposes of this
1-64     Act to be, a local government corporation created under Subchapter
 2-1     D, Chapter 431, Transportation Code.
 2-2                       (D)  A nonprofit corporation created under this
 2-3     section may implement any project and provide any services
 2-4     authorized by this Act.
 2-5           SECTION 4.  Chapter 1026, Acts of the 70th Legislature,
 2-6     Regular Session, 1987, is amended by adding Section 7C to read as
 2-7     follows:
 2-8           Sec. 7C  MISCELLANEOUS POWERS OF DISTRICT.  (a)  The district
 2-9     may:
2-10                 (1)  finance, acquire, construct, improve, operate,
2-11     maintain, or charge fees for the use of its own conduits for
2-12     fiber-optic cable, electronic transmission lines, or other types of
2-13     transmission lines and supporting facilities; or
2-14                 (2)  finance, acquire, construct, improve, operate, or
2-15     maintain conference centers and supporting facilities.
2-16           (b)  Nothing in this section grants the district any
2-17     authority to require a person to use the conduits authorized by
2-18     this section.
2-19           SECTION 5.  Section 13, Chapter 1026, Acts of the 70th
2-20     Legislature, Regular Session, 1987, is amended to read as follows:
2-21           Sec. 13.  ANNEXATION.  (A)  The district may, subject to the
2-22     approval of the governing body of the City of Houston, Texas:
2-23                 (1)  annex territory [land] in accordance with
2-24     Subchapter J, Chapter 49 [Chapter 54], Water Code; or
2-25                 (2)  annex territory located inside the boundaries of a
2-26     reinvestment zone created under Chapter 311, Tax Code, as those
2-27     boundaries exist on September 1, 2001, as provided by this section.
2-28                       (B)  The district may annex territory under
2-29     Subsection (A) (2) only if:
2-30                 (1)  the district holds a public hearing on the
2-31     proposed annexation and publishes notice in the district not later
2-32     than the 15th day before the date of the hearing; and
2-33                 (2)  a majority of the qualified voters of the area
2-34     that the district wants to annex, voting at an election called and
2-35     held within the area that the district wants to annex:
2-36           (a)  approve the annexation;
2-37           (b)  approve the assumption of the bonds, notes, obligations,
2-38     taxes, and special assessments created before the annexation of the
2-39     area to the district; and
2-40           (c)  approve the assumption of the bonds of the district
2-41     payable wholly or partly from taxes or special assessments that
2-42     have been voted previously but not yet issued or sold and the levy
2-43     of an ad valorem tax or special assessment on all taxable property
2-44     within the annexed area for the payment of the bonds.
2-45                       (C)  If, at an election held under Subsection
2-46     (B), the voters approve each proposition, the board of directors
2-47     may adopt an order adding the annexed territory into the district.
2-48                       (D)  If the board of directors orders an election
2-49     to be held under Subsection (B), the election must be held and
2-50     notice must be given in the area that the district wants to annex
2-51     as provided for a bond election held by the district.  The district
2-52     may hold an election to annex territory on the same day as any
2-53     other district election.  The board may call an election to annex
2-54     territory by a separate election order or as a part of any other
2-55     election order.  The board may submit multiple purposes in a single
2-56     proposition at an election.  The board may order multiple elections
2-57     to annex the same territory.
2-58                       (E)  The district may annex defined areas of
2-59     land, regardless of whether the areas are contiguous to the
2-60     district.
2-61                       (F)  An annexed area shall bear the area's pro
2-62     rata share of all bonds, notes, or other obligations, taxes, or
2-63     special assessments that may be owned, contracted for, or
2-64     authorized by the district.
2-65                       (G)  The election, notice, and hearing
2-66     requirements imposed by this section do not apply to an annexation
2-67     under Subchapter J, Chapter 49, Water Code.[, subject to the
2-68     approval of the governing body of the city of Houston, Texas.]
2-69           SECTION 6.  (a)  The legislature validates and confirms all
 3-1     governmental acts and proceedings of Harris County Improvement
 3-2     District No. 1 and the district's board of directors that occurred
 3-3     before the effective date of this Act.
 3-4           (b)  This section does not apply to any matter that on the
 3-5     effective date of this Act:
 3-6                 (1)  is involved in litigation, if the litigation
 3-7     ultimately results in the matter being held invalid by a final
 3-8     judgment of a court of competent jurisdiction; or
 3-9                 (2)  has been held invalid by a court of competent
3-10     jurisdiction.
3-11           SECTION 7.  This Act takes effect immediately if it receives
3-12     a vote of two-thirds of all the members elected to each house, as
3-13     provided by Section 39, Article III, Texas Constitution.  If this
3-14     Act does not receive the vote necessary for immediate effect, this
3-15     Act takes effect September 1, 2001.
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