By:  Gallegos                                         S.B. No. 1790
         2001S1028/1                            
                                A BILL TO BE ENTITLED
 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
1-16     impose an ad valorem tax, assessment, or impact fee in accordance
1-17     with 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
1-25                 (2)  25 owners of property in the district, if there
 2-1     are more than 25 persons who own property in the district as
 2-2     determined by the most recent certified county property tax rolls.
 2-3           (B)  The district may not impose an impact fee or assessment
 2-4     on the property, equipment, rights-of-way, facilities, or
 2-5     improvements of:
 2-6                 (1)  an electric utility or a power generation company,
 2-7     as those terms are defined by Section 31.002, Utilities Code; or
 2-8                 (2)  a gas utility, as that term is defined by Section
 2-9     101.003 or 121.001, Utilities Code.
2-10           SECTION 3.  Chapter 1026, Acts of the 70th Legislature,
2-11     Regular Session, 1987, is amended by adding Section 7B to read as
2-12     follows:
2-13           Sec. 7B.  NONPROFIT CORPORATION.  (A)  The board of directors
2-14     by resolution may authorize the creation of a nonprofit corporation
2-15     to assist and act on behalf of the district in implementing a
2-16     project or providing a service authorized by this Act.
2-17           (B)  The board of directors of the district shall appoint the
2-18     board of directors of a nonprofit corporation created under this
2-19     section.  The board of directors of  the nonprofit corporation
2-20     serves in the same manner as, for the same term as, and on the
2-21     conditions of the board of directors of a local government
2-22     corporation created under Chapter 431, Transportation Code.
2-23           (C)  A nonprofit corporation created under this section has
2-24     the powers of, and is considered for purposes of this Act to be, a
2-25     local government corporation created under Subchapter D, Chapter
2-26     431, Transportation Code.
 3-1           (D)  A nonprofit corporation created under this section may
 3-2     implement any project and provide any services authorized by this
 3-3     Act.
 3-4           SECTION 4.  Chapter 1026, Acts of the 70th Legislature,
 3-5     Regular Session, 1987, is amended by adding Section 7C to read as
 3-6     follows:
 3-7           Sec. 7C.  MISCELLANEOUS POWERS OF DISTRICT.  The district
 3-8     may:
 3-9                 (1)  finance, acquire, construct, improve, operate,
3-10     maintain, or charge fees for the use of conduits for fiber-optic
3-11     cable, electronic transmission lines, or other types of
3-12     transmission lines and supporting facilities; or
3-13                 (2)  finance, acquire, construct, improve, operate, or
3-14     maintain conference centers and supporting facilities.
3-15           SECTION 5.  Section 13, Chapter 1026, Acts of the 70th
3-16     Legislature, Regular Session, 1987, is amended to read as follows:
3-17           Sec. 13.  ANNEXATION.  (A)  The district may, subject to the
3-18     approval of the governing body of the City of Houston, Texas:
3-19                 (1)  annex territory [land] in accordance with
3-20     Subchapter J, Chapter 49 [Chapter 54], Water Code; or
3-21                 (2)  annex territory located inside the boundaries of a
3-22     reinvestment zone created under Chapter 311, Tax Code, as those
3-23     boundaries exist on September 1, 2001, as provided by this section.
3-24           (B)  The district may annex territory under Subsection (A)(2)
3-25     only if:
3-26                 (1)  the district holds a public hearing on the
 4-1     proposed annexation and publishes notice in the district not later
 4-2     than the 15th day before the date of the hearing; and
 4-3                 (2)  a majority of the qualified voters of the area
 4-4     that the district wants to annex, voting at an election called and
 4-5     held within the area that the district wants to annex:
 4-6                       (a)  approve the annexation;
 4-7                       (b)  approve the assumption of the bonds, notes,
 4-8     obligations, taxes, and special assessments created before the
 4-9     annexation of the area to the district; and
4-10                       (c)  approve the assumption of the bonds of the
4-11     district payable wholly or partly from taxes or special assessments
4-12     that have been voted previously but not yet issued or sold and the
4-13     levy of an ad valorem tax or special assessment on all taxable
4-14     property within the annexed area for the payment of the bonds.
4-15           (C)  If, at an election held under Subsection (B), the voters
4-16     approve each proposition, the board of directors may adopt an order
4-17     adding the annexed territory into the district.
4-18           (D)  If the board of directors orders an election to be held
4-19     under Subsection (B), the election must be held and notice must be
4-20     given in the area that the district wants to annex as provided for
4-21     a bond election held by the district.  The district may hold an
4-22     election to annex territory on the same day as any other district
4-23     election.  The board may call an election to annex territory by a
4-24     separate election order or as a part of any other election order.
4-25     The board may submit multiple purposes in a single proposition at
4-26     an election.  The board may order multiple elections to annex the
 5-1     same territory.
 5-2           (E)  The district may annex defined areas of land, regardless
 5-3     of whether the areas are contiguous to the district.
 5-4           (F)  An annexed area shall bear the area's pro rata share of
 5-5     all bonds, notes, or other obligations, taxes, or special
 5-6     assessments that may be owed, contracted for, or authorized by the
 5-7     district.
 5-8           (G)  The election, notice, and hearing requirements imposed
 5-9     by this section do not apply to an annexation under Subchapter J,
5-10     Chapter 49, Water Code.[, subject to the approval of the governing
5-11     body of the city of Houston, Texas.]
5-12           SECTION 6.  (a)  The legislature validates and confirms all
5-13     governmental acts and proceedings of Harris County Improvement
5-14     District No. 1 and the district's board of directors that occurred
5-15     before the effective date of this Act.
5-16           (b)  This section does not apply to any matter that on the
5-17     effective date of this Act:
5-18                 (1)  is involved in litigation, if the litigation
5-19     ultimately results in the matter being held invalid by a final
5-20     judgment of a court of competent jurisdiction; or
5-21                 (2)  has been held invalid by a court of competent
5-22     jurisdiction.
5-23           SECTION 7.  This Act takes effect immediately if it receives
5-24     a vote of two-thirds of all the members elected to each house, as
5-25     provided by Section 39, Article III, Texas Constitution.  If this
5-26     Act does not receive the vote necessary for immediate effect, this
 6-1     Act takes effect September 1, 2001.