By: Ellis S.B. No. 1123

A BILL TO BE ENTITLED

AN ACT

relating to the creation and authority of Harris County Improvement District No. 8; Authorizing contracts between the District and other Political Subdivisions; providing authority to impose taxes and issue bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. CREATION OF DISTRICT. (a) Harris County Improvement District No. 8 is hereby created as a special district pursuant to authority granted by Section 59, Article XVI, Texas Constitution and pursuant to the general authority of the Texas Legislature to legislate for the public good.

(b) The board by resolution may change the name of the district.

SECTION 2. DEFINITIONS. In this Act:

(1) "Board" means the board of directors of the district.

(2) "District" means the Harris County Improvement District No. 8.

SECTION 3. DECLARATION OF INTENT. (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 Act.

(b) The creation of the District is necessary to promote, develop, encourage, and maintain transportation, parking, housing, recreation, the arts, safety, scenic beauty and the public welfare in the area of the District and adjacent areas.

(c) The creation of the District and this legislation may not be interpreted to relieve Harris County or the City of Houston from providing the level of services provided, as of the effective date of this Act, to the area in the District. The District is created to supplement and not to supplant the county or city services provided in the area in the District.

(d) By creating the District and in authorizing the City of Houston, Harris County, The Metropolitan Transit Authority of Harris County 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.

SECTION 4. BOUNDARIES. The District includes all the territory contained in the following described area: METES AND BOUNDS DESCRIPTION OF 104.196 ACRES OF LAND IN THE JOHN WALTERS SURVEY, ABSTRACT NUMBER 874 HOUSTON, HARRIS COUNTY, TEXAS. 104.196 acres (4,538,793 square feet) of land, being three non-contiguous tracts, being all of Unrestricted Reserves "A", "B" and "C" of Six Flags Astroworld, Replat No. 1, as recorded under Film Code Number 580010 of Harris County Map Records, in the John Walters Survey, Abstract Number 874, Houston, Harris County, Texas, said 104.196 acres being more particularly described as follows (bearings are based on the Texas State Plane Coordinate System, South Central Zone (NAD 83), as derived from GPS observations based on Continuously Operating Reference. Station (CORS) Houston 2 (COH2)): UNRESTRICTED RESERVE "A" 101.832 acres (4,435,829 square feet) BEGINNING at a 5/8-Inch Iron rod found In the southerly right-of-way line of Interstate Highway 610 (South Loop West) (350 feet wide) as recorded In Harris County Clerk's File Number B532643, for the most northerly northwest corner of said Reserve "A" and the northeast corner of the residue of a called 7.697 acre tract of land described in a deed to John Jay Davis. and James Donahue Davis, as recorded under Harris County Clerk's File Number N205522; THENCE, along the southerly right-of-way line of said Interstate Highway 610, as follows: North 85 degrees 43 minutes 49 seconds East, a distance of 764.67 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of curve; Along the arc of a 5938.17 foot radius curve to the left, having a central angle of 10 degrees 56 minutes 34 seconds, an arc length of 1134.11 feet, and a chord which bears North 80 degrees 15 minutes 33 seconds East, a distance of 1132.39 feet, to a 5/8-inch iron rod found for a point of tangency; North 74 degrees 47 minutes 16 seconds East, a distance of 474.85 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of curve; THENCE, leaving the southerly right-of-way line of said Interstate Highway 610, along the arc of a 25.00 foot radius curve to the right, having a central angle of 46 degrees 50 minutes 13 seconds, an arc length of 20.44 feet, and a chord which bears South 81 degrees 47 minutes 38 seconds East, a distance of 19..87 feet, to a point for corner in the west right-of-way line of Fannin Street (width varies) (comer unable to be set); THENCE, along the westerly right-of-way line of said Fannin Street, as follows: South 03 degrees 37 minutes 26 seconds East, a distance of 13.64 feet, to a point of curve (corner unable to be set); Along the arc of a 3010.00 foot radius curve to the left, having a central angle of 01 degree 13 minutes 03 seconds, an arc length of 63.96 feet, and a chord which bears South 04 degrees 13 minutes 57 seconds East, a distance of 63.96 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of tangency; South 04 degrees 50 minutes 28 seconds East, a distance of 212.17 feet, to a 3/4-inch iron rod with "CLR" cap found for corner; South 02 degrees 28 minutes 41 seconds East, a distance of 136.62 feet, to a point for corner (corner unable to be set); South 00 degrees 40 minutes 14 seconds East, a distance of 870.60 feet, to a 5/8-inch iron rod with "Clarkson" cap found in the north line of a called 6.289 acre tract of land described In a deed to Metropolitan Transit Authority of Harris County, Texas, as recorded under Harris County Clerk's File Number V491408, for the most easterly southeast corner hereof; THENCE, South 68 degrees 55 minutes 46 seconds West, a distance of 526.60 feet, leaving the westerly right-of-way line of said Fannin Street, to a 5/8-inch iron rod found for the northwest corner of said called 6.289 acre tract and for an interior corner hereof; THENCE, South 16 degrees 48 minutes 57 seconds East, a distance of 592.88 feet, to a cut "X" in the top of a concrete wall found in the northerly right-of-way line of West Bellfort Avenue (width varies), for the southwest corner of said called 6.289 acre tract and the most southerly southeast corner hereof; THENCE, along the northerly right-of-way line of said West Bellfort Avenue, as follows; Along the arc of a 1094.45 foot radius non-tangent curve to the right, having a central angle of 04 degrees 38 minutes 31 seconds, an arc length of 88.67 feet, and a chord which bears South 84 degrees 25 minutes 50 seconds West, a distance of 88.65 feet, to a cut "X" in the top of a concrete wall found for a point of tangency; South 86 degrees 45 minutes 05 seconds West, a distance of 1296.70 feet, to a 3/4-inch Iron rod with "CLR" cap found for a point of curve; Along the arc of a 1960.00 foot radius curve to the right, having a central angle of 16 degrees 59 minutes 02 seconds, an arc length of 580.99 feet, and a chord which bears North 84 degrees 45 minutes 24 seconds West, a distance of 578.87 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of tangency; North 76 degrees 15 minutes 52 seconds West, a distance of 359.92 feet, to a 3/4-inch Iron rod with "CLR" cap found for a point of curve; Along the arc of a 2050.00 foot radius non-tangent curve to the left, having a central angle of 02 degrees 20 minutes 12 seconds, an arc length of 83.60 feet, and a chord which bears North 77 degrees 34 minutes 45 seconds West, a distance of 83.59 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of tangency; North 40 degrees 38 minutes 02 seconds West, a distance of 31.42 feet, to a 3/4-inch iron rod with "CLR" cap found for the northwest end of a cut-back at the northeast corner of the intersection of said West Bellfort Drive and Kirby Drive (width varies) for the most westerly southwest corner hereof; THENCE, North 02 degrees 27 minutes 33 seconds West, a distance of 713.06 feet, along the easterly right-of-way line of said Kirby Drive, to a 5/8-inch iron rod found for the southwest corner of the aforementioned called 7.697 acre tract, and the most westerly northwest corner hereof; THENCE, North 86 degrees 33 minutes 51 seconds East, a distance of 399.78 feet, leaving the easterly right-of-way line of said Kirby Drive, to a 3/4-Inch rod found for the southeast corner of said called 7.697 acre tract, and an interior corner hereof; THENCE, North 02 degrees 16 minutes 18 seconds West, a distance of 848.62 feet, to the POINT OF BEGINNING and containing a computed area of 101.832 acres (4,435,829 square feet) of land in said. Unrestricted Reserve "A". UNRESTRICTED RESERVE "B" 1.909 acres (83,157 square feet) BEGINNING at a 5/8-Inch Iron rod found in the easterly right-of-way line of said Kirby Drive, for the northwest corner of Unrestricted Reserve "F" in Section I of South Point Business Park, as recorded in Volume 230, Page 136, Harris County Map Records, and the southwest corner hereof; THENCE, North 02 degrees 27 minutes 33 seconds West, a distance of 145.37 feet, along the easterly right-of-way line of said Kirby Drive, to a point for corner in a power pole at the southwesterly end of a curve return at the southeast corner of the intersection of said Kirby Drive and the aforementioned West Bellfort Drive; THENCE, leaving the easterly right-of-way line of said Kirby Drive, along the arc of a 50.00 foot radius non-tangent curve to the right, having a central angle of 106 degrees 46 minutes 14 seconds, an arc length of 9317 feet, and a chord which bears North 50 degrees 41 minutes 45 seconds East, a distance of 80.27 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of compound curve; THENCE, along the south right-of-way line of said West Bellfort Avenue, as follows; Along the arc of a 1950.00 foot radius curve to the right, having a central angle of 00 degrees 15 minutes 30 seconds, an arc length of 8.79 feet, and a chord which bears South 76 degrees 23 minutes 37 seconds East, a distance of 8.79 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of tangency; South 76 degrees 15 minutes 52 seconds East, a distance of 294.43 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of curve; Along the arc of a 2040.00 foot radius non-tangent curve to the left, having a central angle of 16 degrees 59 minutes 03 seconds, an arc length of 604.71 feet, and a chord which bears South 84 degrees 46 minutes 12 seconds East, a distance of 602.50 feet, to a 3/4-inch iron rod with "CLR" cap found for a point of tangency; North 86 degrees 44 minutes 17 seconds East, a distance of 88.58 feet, to a 3/4-inch Iron rod with "CLR" cap found for the northwest end of a cut-back corner at the southwest corner of the intersection of said West Bellfort Drive and Centerpoint Drive (60 feet wide); THENCE, South 47 degrees 54 minutes 45 seconds East, a distance of 21.14 feet, leaving the south right-of-way line of said West Bellfort Drive, to a 3/4-inch iron rod with "CLR" cap found for the southeast end of said cut-back corner in the westerly right-of-way line of said Centerpoint Drive, the northeast corner of Unrestricted Reserve "B" in Section II of said South Point Business Park, and the southeast corner hereof; THENCE, South 86 degrees 44 minutes 26 seconds West, a distance of 1056.25 feet, leaving the westerly right-of-way line of said Centerpoint Drive, with the north line of Section I and Section II of said South Point Business Park, to the POINT OF BEGINNING and containing a computed area of 1.909 acres (83,157 square feet) of land in said Unrestricted Reserve "B". UNRESTRICTED RESERVE "C" 0.455 acres (19,807 square feet) BEGINNING at a 3/4-inch iron rod with "CLR" cap found in the northerly right-of-way line of the aforementioned West Bellfort Drive, for the northwest corner of the residue of a Houston Lighting & Power Company Fee Strip, recorded in Volume 1781, Page 199, of the Harris County Deed Records, and the northeast corner hereof; THENCE, South 16 degrees 48 minutes 57 seconds East, a distance of 19.94 feet, to a 1-inch galvanized iron pipe found in the north line of Unrestricted Reserve "A" in Section III of the aforementioned South Point Business Park, and the southeast corner hereof; THENCE, South 86 degrees 44 minutes 26 seconds West, a distance of 1313.64 feet, along the north line Section III and Section II of said South Point Business Park, to a cut "X" set in the tip of a concrete culvert in the easterly right-of-way line of the aforementioned Centerpoint Drive, being the southwest end of a cut-back corner at the southeast corner of the Intersection of said West Bellfort Drive and said Centerpoint Drive and the southwest corner hereof; THENCE, North 42 degrees 05 minutes 15 seconds East, a distance of 21.40 feet, to a 3/4-inch iron rod with "CLR" cap found in the southerly right-of-way line of said West Bellfort Drive, for the northeast end of said cut-back corner and the northwest corner hereof; THENCE, North 86 degrees 44 minutes 17 seconds East, a distance of 1186.52 feet, along the southerly right-of-way line of said West Bellfort Drive, to a 3/4-inch iron rod with "CLR" cap found for a point of curve; THENCE, continuing along the southerly right-of-way fine of said West Bellfort Drive, along the arc of a 1341.97 foot radius curve to the left, having a central angle of 04 degrees 34 minutes 58 seconds, an arc length of 107.34 feet, and a chord which bears North 84 degrees 26 minutes 48 seconds East, a distance of 107.31_feet, to the POINT OF BEGINNING and containing a computed area of 0.455 acres (19,807 square feet) of land in said Unrestricted Reserve "C", and containing a total aggregate area of 104.196 acres (4,538,793 square feet) of land.

SECTION 5. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The District is created to serve a public use and benefit. All the land and other property included in the District will be benefited by 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 Act.

(b) The District will:

(1) promote the health, safety, and general welfare of residents in the District and the general public;

(2) provide needed funding to preserve, maintain, and enhance the economic health and vitality of the area of the District as a residential neighborhood and a commercially viable area; and

(3) further promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the District, which are necessary for the restoration, preservation, and enhancement of scenic beauty.

(c) The area within the boundaries of Harris County Improvement District No.8 is in an area which will develop into one of the state's most dynamic activity centers and will be the location of numerous commercial, office, retail and residential buildings;

(d) The area within the district is presently served with an inadequate public transportation system and has an inadequate system of streets and public parking facilities;

(e) Residents, workers, visitors, customers and other persons accessing the area within the district must primarily use motor vehicles and such use will place an undue burden on the street system in the district and result in severe congestion that retards mobility of persons and property and impairs the use of the district area as one of the state's primary economic and business centers;

(d) The absence of an adequate system of parking facilities, including park and ride facilities, discourages the use of public transportation and further aggravates vehicular congestion within the area;

(e) Motor vehicles are generally powered by internal combustion engines that emit pollutants into the air which results in dangers to the public health and welfare;

(f) The proliferation of the use of motor vehicles for passenger transportation within the district will be caused in substantial part by the absence of an adequate public transportation system and an adequate system or network of public parking facilities;

(g) Provision of an adequate system of public parking facilities and public transit and transportation facilities will accomplish the public purposes of Article III, Section 52a of the Constitution by stimulating transportation and commerce within the area of the district and in the state and will serve the further public purpose of reducing the pollutants discharged into the air thus reducing the threat to the public health and welfare and preserving and conserving the natural resources of the State as mandated by Section 59 of Article XVI of the Constitution;

(h) In order for the area within the district to have an adequate public transit system and an adequate system of public parking it will be necessary for the district to be able to take advantage of all public and private funds and opportunities available and be empowered to contract with other public agencies and with private entities to jointly provide such facilities.

(i) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement.

(j) Any rules relating to or affecting use of the public right-of-way or requirements for off-street parking shall be subject to all applicable municipal charter, code and ordinance requirements OF THE City of Houston.

(k) The legislature finds that he District will not act as the agent or instrumentality of any private interest even though many private interests, as well as the general public, will be benefited by the District.

SECTION 6. APPLICATION OF OTHER LAW. (a) Except as otherwise provided by this Act, Chapter 375, Local Government Code, applies to the District and the district shall have all of the rights and powers of a District created pursuant to Chapter 375 Local Government Code.

(b) Chapter 311, Government Code, applies to this Act.

SECTION 7. CONSTRUCTION OF ACT. This Act shall be liberally construed in conformity with the findings and purposes stated in this Act.

SECTION 8. BOARD OF DIRECTORS IN GENERAL. (a) Except as provided by Subsection (c), the District is governed by a board of seven voting directors appointed under Section 10 and four nonvoting directors as provided by Section 11.A majority of the voting directors of the district may authorize any action of the district.

(b) Voting directors serve staggered terms of four years, with four directors' terms expiring June 1 of an odd-numbered year and three directors' terms expiring June 1 of the following odd-numbered year.

(c) The board may increase or decrease the number of directors on the board by resolution provided that it is in the best interest of the District to do so and that the board consists of not fewer than five and not more than 9 directors.

(d) Voting Directors are entitled to receive fees of office at the rate and in the manner authorized in Section 49.060 Water Code for a director of a Municipal Utility District. Directors shall also be reimbursed for actual expenses as provided in Section 49.060 Water Code.

SECTION 9. APPOINTMENT OF DIRECTORS. The mayor and members of the governing body of the City of Houston shall appoint voting directors from persons recommended by the board, the State Senator and the State Representative whose district overlap the district. The governing body of the district shall make recommendations to the Mayor and City Council for appointments to positions 0ne through five. The Stat Senator shall make a recommendation for a director for place six and the State Representative whose district overlaps the district shall make a recommendation for place seven. A person is appointed if a majority of the governing body of the City and the mayor vote to appoint that person.

SECTION 10. NONVOTING DIRECTORS. (a) The following persons shall serve as nonvoting directors:

(1) the directors of the following departments of the City of Houston or their designees serve as non-voting members of the board of directors:

(A) parks and recreation;

(B) planning and development; and

(C) public works;

(D) the City of Houston's chief of police.

(b) If an agency, department, or division described by Subsection (a) is consolidated, renamed, or changed; the board may appoint a director of the consolidated, renamed, or changed agency, department, or division as a nonvoting director. If an agency, department, or division described by Subsection (a) is abolished, the board may appoint a representative of another agency, department, or division that performs duties comparable to those performed by the abolished entity.

(c) A majority of the members of the board who have been appointed and have qualified to serve constitute a quorum of the board. Vacancies in a position on the board and nonvoting directors are not counted for the purposes of establishing a quorum of the board.

SECTION 11. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a) Except as provided by this section:

(1) a director may participate in all board votes and decisions; and

(2) Chapter 171, Local Government Code, governs conflicts of interest for directors.

(b) Section 171.004, Local Government Code, does not apply to the District. A director who has a substantial interest in a business or charitable entity that will receive a pecuniary benefit from a board action shall file a one-time affidavit declaring the interest. An additional affidavit is not required if the director's interest changes. After the affidavit is filed with the board secretary, the director may participate in a discussion or vote on that action if:

(1) a majority of the directors have a similar interest in the same entity; or

(2) all other similar business or charitable entities in the District will receive a similar pecuniary benefit.

(c) A director who is also an officer or employee of a public entity may not participate in the discussion of or vote on a matter regarding a contract with that public entity.

(d) For purposes of this section, a director has a substantial interest in a charitable entity in the same manner that a person would have a substantial interest in a business entity under Section 171.002, Local Government Code.

SECTION 12. ADDITIONAL POWERS OF DISTRICT. The District may exercise the powers given to:

(1) a corporation under Section 4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), including the power to own, operate, acquire, construct, lease, improve, and maintain projects described by that section; and

(2) a housing finance corporation under Chapter 394, Local Government Code, to provide housing or residential development projects in the District.

(3) The District shall not have the power of eminent domain.

(4) The district shall have the power to acquire, lease as lessor or lessee, construct, develop, own, operate and maintain a public transit system to serve the area within the boundaries of the district.

(5) The district shall have the power to acquire, lease as lessor or lessee, construct, develop, own, operate and maintain parking facilities or a system of parking facilities. Parking facilities include lots, garages, parking terminals or other structures or accommodation for the parking of motor vehicles off the streets and includes equipment, entrances, exits, fencing and other accessories necessary for the safety and convenience in the parking of vehicles. The district's parking facilities will serve the public purposes expressed in Section One of this Act and be owned, used and held for public purposes even if leased or operated by a private entity for a term of years and the district's public parking facilities and any lease to a private entity will be exempt from the payment of ad valorem taxes and state and local sales and use taxes.

(6) The district may acquire air rights and may construct improvements on property on which it only owns air rights or on which it only has a leasehold interest and may own undivided interests in buildings and other improvements.

(7) The district has all of the rights and powers of a road district created pursuant to Chapter 257 Transportation Code and a road utility district created pursuant to Chapter 441 Transportation Code. The district does not need the approval of the Texas Department of Transportation or the Texas Highway Commission to construct a road or street if the director of Public Works of the City of Houston Texas has approved the road or street.

(6) The district may use any of its resources, including revenues, assessments, taxes, or grant or contract proceeds to pay the cost of acquiring and operating a public transit system or a system of public parking facilities. The district may adopt rules and regulations covering its public transit system and its public parking system. The district may set and determine and the district may charge impose, levy and collect fees, charges and tolls for the use of the public transit system or the public parking facilities and may issue bonds or notes to finance the cost of these facilities. If the district pays for or finances the cost of acquiring and operating a public transit system or a system of public parking facilities with resources other than assessments, then no petition of property owners or public hearing thereon is required, just as no petition of property owners and public hearing thereon is required for the provision of all other district services and improvements not paid for or financed with assessments.

(7) The district is authorized to make contracts, leases, and agreements with, and accept grants and loans from, the United States of America, the State, municipalities, other political subdivisions and private persons or entities to carry out the purposes of this Act upon such terms and conditions and for such period of time as the governing body of the district may determine.

SECTION 13. The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code.

SECTION 14. LAW ENFORCEMENT SERVICES. To protect the public interest, the District may contract with Harris County or the City of Houston to provide law enforcement services in the District for a fee.

SECTION 15. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act on behalf of the District in implementing a project or providing a service authorized by this Act.

(b) The board shall appoint the board of directors of a nonprofit corporation created under this section. 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 Chapter 431, Transportation Code.

(c) A nonprofit corporation created under this section has the powers of and is considered for purposes of this Act to be a local government corporation created under Chapter 431, Transportation Code.

(d) A nonprofit corporation created under this section may implement any project and provide any service authorized by this Act.

SECTION 16. REQUIREMENTS FOR FINANCING SERVICES AND IMPROVEMENTS. The board may not finance a service or improvement project with assessments under this Act or call a bond election unless a written petition requesting that improvement or service or the election has been filed with the board. The petition must be signed by the lesser of:

(1) the owners of a majority of the assessed value of real property in the District subject to assessment as determined by the most recent certified tax appraisal roll for Harris County, or

(2) 25 property owners subject to assessment, if there are more than 25 in the District,

(3) A majority in number, assessed value as shown on the recent certified tax appraisal roll for the County or by a majority of the owners of the surface area of the area proposed to be assessed as the ownership is shown on the tax appraisal rolls of Harris County.

SECTION 17. ELECTIONS. (a) The District shall hold an election in the manner provided by Subchapter L, Chapter 375, Local Government Code, to obtain voter approval before the District imposes an ad valorem maintenance tax or issues bonds payable from ad valorem taxes.

(b) The board may include more than one purpose in a single proposition at an election.

(c) Section 375.243, Local Government Code, does not apply to the District.

SECTION 18. MAINTENANCE TAX. (a) If authorized at an election held in accordance with Section 18, the District may impose an annual ad valorem tax on taxable property in the District for the administration, maintenance and operation of the District and the improvements constructed or acquired by the District or for the provision of services. All property in the District except property exempt under the Constitution and Tax Code shall be liable for the payment of ad valorem taxes levied by the District.

(b) The board shall determine the tax rate.

SECTION 19. ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this Act.

(b) Assessments, including assessments resulting from an addition to or correction of the assessment roll by the District, reassessments, penalties and interest on an assessment or reassessment, expenses 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 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 resolution of the board 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) Without necessity of notice and hearing in the manner required for additional assessments, the board may make corrections to or deletions from the assessment roll provided that such corrections or deletions do not increase the amount of assessment of any parcel of land.

SECTION 20. UTILITIES. The District may not impose an impact fee or assessment on the property, equipment, rights of way, facilities, or improvements of an electric utility or a power generation company as defined by Section 31.002, Utilities Code, a gas utility as defined by Section 101.003 or 121.001, Utilities Code, a telecommunications provider as defined by Section 51.002, Utilities Code, or of a person that provides to the public cable television or advanced telecommunications services. If the District, in the exercise of the powers conferred on it by this Act, requires or requests the relocation, rerouting, or removal of electric, gas, water, sewer, communications, or other public utilities, as defined by Sections 31.002, 101.003, 121.001, or 51.002, Utilities Code, the relocation, rerouting, or removal shall be at the sole expense of the District.

SECTION 21. BONDS. (a) The District may issue bonds or other obligations payable in whole or in part from ad valorem taxes, assessments, impact fees, revenue, grants, or other money of the District, or any combination of those sources of money, to pay for any authorized purpose of the District. Bonds issued to finance parks and recreational facilities may not exceed an amount equal to one percent of the value of the taxable property in the district. Bonds issued by the district for purposes other than parks and recreational facilities do not have a debt limit. do not have a debt limit

(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.

SECTION 22. MUNICIPAL APPROVAL. (a) Except as provided by Subsection (b), the District must obtain approval from the governing body of the City of Houston for:

(1) the issuance of bonds for an improvement project;

(2) the plans and specifications of an improvement project financed by the bonds; and

(3) the plans and specifications of a District improvement project related to:

(A) the use of land owned by the City of Houston;

(B) an easement granted by the City of Houston; or

(C) a right-of-way of a street, road, or highway.

(b) If the District obtains approval from the governing body of the City of Houston for a capital improvements budget for a period not to exceed five years, the District may finance the capital improvements and issue bonds specified in the budget without further approval from the City of Houston.

SECTION 23. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS. Except as provided by Section 375.263, Local Government Code, a municipality is not required to pay a bond, note, or other obligation of the District.

SECTION 24. DISBURSEMENTS OR TRANSFERS OF MONEY. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the District's money.

SECTION 25. COMPETITIVE BIDDING LIMIT. Section 375.221, Local Government Code, applies to the District only for a contract that has a value greater than $25,000.

SECTION 26. EXCEPTION FOR DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT. (a) The board may vote to dissolve a District that has debt. If the vote is in favor of dissolution, the District shall remain in existence solely for the limited purpose of discharging its debts. The dissolution is effective when all debts have been discharged.

(b) Section 375.264, Local Government Code, does not apply to the District.

SECTION 27. INITIAL DIRECTORS. (a) The initial board consists of the following persons:

Pos. No. Name of Director

1________________

2________________

3________________

4________________

5________________

6________________

7________________

(b) Of the initial directors, the terms of directors appointed for positions 1 through 3 expire June 1, 2011, and the terms of directors appointed for positions 7 through 11 expire June 1, 2009. The terms of directors appointed to fill a full term on the board expire on June 1 of the year which is four years after the year in which the director was appointed.

(c) Section 10 does not apply to this section.

(d) This section expires September 1, 2011.

SECTION 28. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The District may join and pay dues to an organization that enjoys tax-exempt status under Sections 501(c)(3), (4), or (6), Internal Revenue Code of 1986, as amended, and that performs services or provides activities consistent with the furtherance of the purposes of the District. An expenditure of public money for membership in the organization is considered to further the purposes of the District and to be for a public purpose.

SECTION 29. USE OF ASSESSMENTS. The District may reimburse the cost of creation of the District from assessments, taxes or other revenues collected by the District.

SECTION 30. LEGISLATIVE FINDINGS. The legislature finds that:

(1) proper and 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 by the constitution and laws of this state, including the governor, who has submitted the notice and Act to the Texas Commission on Environmental Quality;

(2) 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;

(3) 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; and

(4) 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 31. A Rapid Transit Authority organized and operating under Chapter 451 Transportation Code may contract with the District to jointly construct, own, operate and maintain transit facilities and parking facilities under such terms and conditions as the Rapid Transit Authority and the District deem desirable. An agreement may provide that the District and the Rapid Transit Authority exchange or trade land provided each party to any agreement receives the equivalent of fair market value. The Rapid Transit Authority need not offer any property that it proposes to trade to the District for sale to the public or for sale to any abutting property owner.

SECTION 32. EFFECTIVE DATE. 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, 2007.