By: Taylor, Ellis  S.B. No. 863
         (In the Senate - Filed February 26, 2013; March 5, 2013,
  read first time and referred to Committee on Intergovernmental
  Relations; April 8, 2013, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 5, Nays 0;
  April 8, 2013, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 863 By:  Garcia
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the creation of Pearland Municipal Management District
  No. 2; 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 3867 to read as follows:
  CHAPTER 3867.  PEARLAND MUNICIPAL MANAGEMENT DISTRICT NO. 2
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 3867.001.  DEFINITIONS. In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Pearland.
               (3)  "County" means Brazoria County.
               (4)  "Director" means a board member.
               (5)  "District" means the Pearland Municipal
  Management District No. 2.
         Sec. 3867.002.  NATURE OF DISTRICT. The Pearland Municipal
  Management District No. 2 is a special district created under
  Section 59, Article XVI, Texas Constitution.
         Sec. 3867.003.  PURPOSE; 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
  chapter. By creating the district and in authorizing the city, the
  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.
         (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)  This chapter and the creation of the district may not be
  interpreted to relieve the city or the county from providing the
  level of services provided as of the effective date of the Act
  enacting this chapter to the area in the district. The district is
  created to supplement and not to supplant city or county services
  provided in the district.
         Sec. 3867.004.  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; and
               (3)  developing or expanding transportation and
  commerce.
         (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 community and business center;
               (3)  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;
  and
               (4)  provide for street or road and recreational
  facilities and improvements, including related drainage
  facilities, for the district.
         (e)  Pedestrian or other nonmotorized vehicle ways along or
  across a street, whether at grade or above or below the surface, and
  street lighting, street landscaping, parking, and street art
  objects are parts of and necessary components of a street and are
  considered to be 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. 3867.005.  INITIAL 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 the bond;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3867.006.  ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES.
  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.
         Sec. 3867.007.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3867.008.  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. 3867.051.  GOVERNING BODY; TERMS. (a)  The district is
  governed by a board of seven voting directors who serve staggered
  terms of four years, with three or four directors' terms expiring
  June 1 of each odd-numbered year.
         (b)  The board by resolution may change the number of voting
  directors on the board if the board determines that the change is in
  the best interest of the district and the governing body of the city
  consents to the change. The board may not consist of fewer than 5 or
  more than 15 voting directors.
         Sec. 3867.052.  APPOINTMENT OF VOTING DIRECTORS. The
  governing body of the city shall appoint voting directors from
  persons recommended by the board.  A person is appointed if a
  majority of the members of the governing body of the city vote to
  appoint that person.
         Sec. 3867.053.  NONVOTING DIRECTORS. The board may appoint
  nonvoting directors to serve at the pleasure of the voting
  directors.
         Sec. 3867.054.  QUORUM. For purposes of determining the
  requirements for a quorum of the board, the following are not
  counted:
               (1)  a board position vacant for any reason, including
  death, resignation, or disqualification;
               (2)  a director who is abstaining from participation in
  a vote because of a conflict of interest; or
               (3)  a nonvoting director.
         Sec. 3867.055.  INITIAL VOTING DIRECTORS. (a)  The initial
  board consists of the following voting directors:
 
       Pos. No. Name of Director  
 
       1 Teir Allender  
 
       2 Steve Chandler  
 
       3 Will Deane  
 
       4 Stephanie King  
 
       5 John Moody  
 
       6 Rushi Patel  
 
       7 Sylvester L. Roeder III  
         (b)  Of the initial directors, the terms of directors
  appointed for positions one through four expire June 1, 2015, and
  the terms of directors appointed for positions five through seven
  expire June 1, 2017.
         (c)  Section 3867.052 does not apply to this section.
         (d)  This section expires September 1, 2017.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3867.101.  GENERAL POWERS AND DUTIES. The district has
  the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3867.102.  IMPROVEMENT PROJECTS AND SERVICES. The
  district may provide, design, construct, acquire, improve,
  relocate, operate, maintain, or finance an improvement project or
  service using any 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. 3867.103.  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. 3867.104.  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. 3867.105.  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. 3867.106.  LAW ENFORCEMENT AND SECURITY SERVICES. To
  protect the public interest, the district may provide security
  services or contract with a qualified party, including the county
  or the city, to provide law enforcement services in the district for
  a fee.
         Sec. 3867.107.  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. 3867.108.  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 provided to
  municipalities by:
               (1)  Chapter 380, Local Government Code; and
               (2)  Subchapter A, Chapter 1509, Government Code.
         Sec. 3867.109.  PARKING FACILITIES. (a)  The district may
  acquire, lease as lessor or lessee, construct, develop, own,
  operate, and maintain parking facilities or a system of parking
  facilities, including lots, garages, parking terminals, or other
  structures or accommodations for parking motor vehicles off the
  streets and related appurtenances.
         (b)  The district's parking facilities serve the public
  purposes of the district and are owned, used, and held for a public
  purpose even if leased or operated by a private entity for a term of
  years.
         (c)  The district's parking facilities are parts of and
  necessary components of a street and are considered to be a street
  or road improvement.
         (d)  The development and operation of the district's parking
  facilities may be considered an economic development program.
         Sec. 3867.110.  ANNEXATION OF LAND. The district may annex
  land as provided by Subchapter J, Chapter 49, Water Code.
         Sec. 3867.111.  APPROVAL BY CITY. (a)  Except as provided
  by Chapter 375, Local Government Code, the district must obtain the
  approval of the city for:
               (1)  the issuance of bonds;
               (2)  the annexation or exclusion of land;
               (3)  the plans and specifications of an improvement
  project financed by bonds; and
               (4)  the plans and specifications of an improvement
  project related to the use of land owned by the city, an easement
  granted by the city, or a right-of-way of a street, road, or
  highway.
         (b)  The district may not issue bonds or annex or exclude
  land until the governing body of the city adopts a resolution or
  ordinance authorizing the issuance of the bonds or the annexation
  or exclusion of the land.
         (c)  The governing body of the city:
               (1)  is not required to adopt a resolution or ordinance
  to approve plans and specifications described by Subsection (a);
  and
               (2)  may establish an administrative process to approve
  plans and specifications described by Subsection (a) without the
  involvement of the governing body.
         Sec. 3867.112.  NO EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
         Sec. 3867.151.  DISBURSEMENTS AND TRANSFERS OF MONEY. The
  board by resolution shall establish the number of directors'
  signatures and the procedure required for a disbursement or
  transfer of district money.
         Sec. 3867.152.  MONEY USED FOR IMPROVEMENTS OR SERVICES.
  The district may acquire, construct, finance, operate, or maintain
  any improvement or service authorized under this chapter or Chapter
  375, Local Government Code, using any money available to the
  district.
         Sec. 3867.153.  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)  A petition filed under Subsection (a) 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. 3867.154.  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. 3867.155.  TAX AND ASSESSMENT ABATEMENTS.  The district
  may designate reinvestment zones and may grant abatements of a tax
  or assessment on property in the zones.
  SUBCHAPTER E. TAXES AND BONDS
         Sec. 3867.201.  ELECTIONS REGARDING TAXES AND BONDS.
  (a)  The district may issue, without an election, bonds, notes, and
  other obligations secured by:
               (1)  revenue other than ad valorem taxes; or
               (2)  contract payments described by Section 3867.203.
         (b)  The district must hold an election in the manner
  provided by Subchapter L, Chapter 375, Local Government Code, to
  obtain voter approval before the district may impose an ad valorem
  tax or issue bonds payable from ad valorem taxes.
         (c)  Section 375.243, Local Government Code, does not apply
  to the district.
         (d)  All or any part of any facilities or improvements that
  may be acquired by a district by the issuance of its bonds may be
  submitted as a single proposition or as several propositions to be
  voted on at the election.
         Sec. 3867.202.  OPERATION AND MAINTENANCE TAX. (a)  If
  authorized by a majority of the district voters voting at an
  election held in accordance with Section 3867.201, the district may
  impose an operation and maintenance tax on taxable property in the
  district in accordance with Section 49.107, Water Code, for any
  district purpose, including to:
               (1)  maintain and operate the district;
               (2)  construct or acquire improvements; or
               (3)  provide a service.
         (b)  The board shall determine the tax rate. The rate may not
  exceed the rate approved at the election.
         Sec. 3867.203.  CONTRACT TAXES. (a)  In accordance with
  Section 49.108, Water Code, the district may impose a tax other than
  an operation and maintenance tax and use the revenue derived from
  the tax to make payments under a contract after the provisions of
  the contract have been approved by a majority of the district voters
  voting at an election held for that purpose.
         (b)  A contract approved by the district voters may contain a
  provision stating that the contract may be modified or amended by
  the board without further voter approval.
         Sec. 3867.204.  AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS
  AND OTHER OBLIGATIONS. (a)  The district may borrow money on terms
  determined by the board. Section 375.205, Local Government Code,
  does not apply to a loan, line of credit, or other borrowing from a
  bank or financial institution secured by revenue other than ad
  valorem taxes.
         (b)  The district may issue bonds, notes, or other
  obligations payable wholly or partly from ad valorem taxes,
  assessments, impact fees, revenue, contract payments, grants, or
  other district money, or any combination of those sources of money,
  to pay for any authorized district purpose.
         Sec. 3867.205.  TAXES FOR BONDS. At the time the district
  issues bonds payable wholly or partly from ad valorem taxes, the
  board shall provide for the annual imposition of a continuing
  direct annual ad valorem tax, without limit as to rate or amount,
  for each year that all or part of the bonds are outstanding as
  required and in the manner provided by Sections 54.601 and 54.602,
  Water Code.
         Sec. 3867.206.  TAXES AND BONDS FOR RECREATIONAL FACILITIES.  
  (a)  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.
         (b)  Section 49.107(h), Water Code, does not apply to the
  district.
         Sec. 3867.207.  CITY NOT REQUIRED TO PAY DISTRICT
  OBLIGATIONS.  Except as provided by Section 375.263, Local
  Government Code, the city is not required to pay a bond, note, or
  other obligation of the district.
         SECTION 2.  The Pearland Municipal Management District No. 2
  initially includes all territory contained in the following area:
         BEING 1,483 acres, more or less, of land within the City
  Limits of Pearland, Texas, located in the H. T. & B. R. R. Co.
  Survey, Abstract No. 300, the J. W. Maxcy Survey, Abstract No. 675,
  the R. B. Lyle Survey, Abstract No. 539, the W. W. Dupuy and L. F.
  Roberts Survey, Abstract No. 726, the H. T. & B. R. R. Co. Survey,
  Abstract No. 304, the W. M. Morris Survey, Abstract No. 344, the J.
  Crawley Survey, Abstract No.174 and the D. White Survey, Abstract
  No. 747, Brazoria County, Texas and also located in the James
  Hamilton Survey, Abstract No. 881, Harris County, Texas, said 1,483
  acres being more particularly described as follows:
         BEGINNING at the southeast corner of SOUTHGATE SECTION ONE, a
  subdivision of record in Volume 24, Pages 123-126 of the Plat
  Records of Brazoria County, Texas (B.C.P.R.) on the northerly
  right-of-way line of County Road 59 (width varies);
         THENCE NORTHERLY, 2,574 feet more or less, along the east
  line of said SOUTHGATE SECTION ONE and the east line of SOUTHGATE
  SECTION TWO, a subdivision of record in Volume 24, Pages 278-279,
  B.C.P.R. to the northeast corner of said SOUTHGATE SECTION TWO;
         THENCE WESTERLY, 2,642 feet more or less, along the north
  line of said SOUTHGATE SECTION TWO to a point on the west line of
  said SOUTHGATE SECTION ONE for the southwest corner of Restricted
  Reserve "A" of said SOUTHGATE SECTION ONE;
         THENCE NORTHERLY, 1,175 feet more or less, along said west
  line to the southwest corner of the MINOR PLAT OF KIRBY WATER PLANT
  SITE AND FIRE STATION NO. 5, a subdivision of record under Document
  Number 2008029867 of the Official Public Records of Brazoria
  County, Texas (B.C.O.P.R.)
         THENCE EASTERLY, 626 feet more or less, to the southeast
  corner of said MINOR PLAT;
         THENCE NORTHEASTERLY, 335 feet more or less, to the northeast
  corner of said MINOR PLAT;
         THENCE WESTERLY, 776 feet more or less, to the northwest
  corner of said MINOR PLAT and being the southwest corner of the
  remainder of a called 13.380 acre tract of land conveyed to Pearland
  Town Center Limited Partnership as recorded under Document Number
  2006071333 of the Official Records of Brazoria County, Texas
  (B.C.O.R.);
         THENCE NORTHERLY, 1,231 feet more or less, along the west
  line of said remainder and the west line of KIRBY CROSSING SECTION
  ONE, a subdivision of record under Document Number 2012041370,
  B.C.O.R., to the south right-of-way line and crossing to the north
  right-of-way line of F.M. 518 (120' wide);
         THENCE WESTERLY, 597 feet more or less, along said north
  right-of-way line to the southeast corner of SF-18B, a subdivision
  of record in Volume 23, Pages 393-396, B.C.P.R.;
         THENCE NORTHERLY, 1,053 feet more or less, along the east
  line of said SF-18B to the south line of SF-15, a subdivision of
  record in Volume 23, Pages 265-268, B.C.P.R.;
         THENCE EASTERLY, 1,566 feet more or less, along said south
  line to the west right-of-way line and crossing to the east
  right-of-way line of Kirby Drive (100' wide);
         THENCE SOUTHERLY, 634 feet more or less, along said east
  right-of-way line to the northwest corner of SHADOW CREEK RANCH
  COMMERCIAL SITE NO. 3, a subdivision of record under Document
  Number 2006023374, B.C.O.R.;
         THENCE SOUTHEASTERLY, 789 feet more or less, along the
  northeast line of said SHADOW CREEK RANCH COMMERCIAL SITE NO. 3 to
  the southeast corner of same on the north right-of-way line of the
  aforementioned F.M. 518;
         THENCE EASTERLY, 162 feet more or less, along said north
  right-of-way line to the southeast corner of SF-16B, a subdivision
  of record in Volume 23, Pages 273-276, B.C.P.R.;
         THENCE NORTHERLY, 2,448 feet more or less, along the east
  line of said SF-16B, SF-16A, a subdivision of record in Volume 23,
  Pages 269-272, B.C.P.R. and SF-14B, a subdivision of record in
  Volume 23, Pages 261-264, B.C.P.R to the southwest corner of the
  MINOR SUBDIVISION PLAT OF DISCOVERY AT SHADOW CREEK RANCH, a
  subdivision of record under Document Number 2009049537, B.C.O.R.;
         THENCE EASTERLY, 1,486 feet more or less, along the south
  line of said MINOR SUBDIVISION PLAT OF DISCOVERY AT SHADOW CREEK
  RANCH, to the northwest corner of Lot "A" of the AMENDING PLAT OF
  SHADOW CREEK TOWN CENTER, a subdivision of record under Document
  Number 2007002505, B.C.O.R.;
         THENCE SOUTHERLY, 960 feet more or less, along the west line
  of said Lot "A" and the easterly right-of-way line of Business
  Center Drive as shown on said AMENDING PLAT OF SHADOW CREEK TOWN
  CENTER to the intersection of said Business Center Drive and
  Memorial Herman Drive as shown on said AMENDING PLAT OF SHADOW CREEK
  TOWN CENTER, same being the southerly southwest corner of said Lot
  "A";
         THENCE EASTERLY, 1,149 feet more or less, along the north
  right-of-way line of said Memorial Herman Drive to the easterly
  southeast corner of said Lot "A", said point being on the westerly
  right-of-way line of SH 288;
         THENCE NORTHERLY, 1,609 feet more or less, along said
  westerly right-of-way line to the northeast corner of that certain
  called 13.100 acre tract conveyed to Memorial Herman by an
  instrument of record under Document Number 2008000334, B.C.O.R.;
         THENCE WESTERLY, 874 feet more or less, departing said
  westerly right-of-way line and along the north line of said 13.100
  acre tract to the westerly right-of-way line of Business Center
  Drive (100' wide) as shown on SHADOW CREEK RANCH BUSINESS CENTER
  DRIVE EXTENSION, a subdivision of record in Volume 24, Pages
  392-393, B.C.O.R.;
         THENCE NORTHERLY, 3,751 feet more or less, along said
  westerly right-of-way line and along the westerly right-of-way line
  of said Business Center Drive, as shown on SHADOW CREEK RANCH
  BUSINESS CENTER DRIVE AND MEDICAL CENTER DRIVE, a subdivision of
  record in Volume 24, Pages 251-252, B.C.O.R. to a point opposite of
  the northwest corner of Restricted Reserve "B" as shown on SHADOW
  CREEK RANCH BUSINESS CENTER DRIVE AND MEDICAL CENTER DRIVE;
         THENCE EASTERLY, 90 feet, departing said west right-of-way
  line to the northwest corner of said Restricted Reserve "B";
         THENCE EASTERLY, 72 feet more or less, along the northerly
  line of said Restricted Reserve "B" to the southeast corner of said
  Restricted Reserve "B", said point being on the northerly
  right-of-way line of Medical Center Drive (100' wide) as shown on
  SHADOW CREEK RANCH BUSINESS CENTER DRIVE AND MEDICAL CENTER DRIVE;
         THENCE EASTERLY, 1,550 feet more or less, along the northerly
  right-of-way line of said Medical Center Drive to a point on the
  westerly right-of-way line of SH 288, same being the easterly line
  of that certain called 48.00 acre tract conveyed to H.C.A. HEALTH
  SERVICES OF TEXAS, INC. by an instrument of record under File Number
  02-063451, B.C.O.R.;
         THENCE NORTHERLY, 764 feet more or less, along said westerly
  right-of-way line and the easterly line of said 48.00 acre tract to
  the south corner of that certain called 2.266 acre tract conveyed to
  SHADOW CREEK RANCH MAINTENANCE ASSOCIATION by an instrument of
  record under File Number 01-048774, B.C.O.R.;
         THENCE NORTHERLY, 1,014 feet more or less, along the easterly
  line of said 48.00 acre tract to the northwest corner of said 2.266
  acre tract, said point being on the southerly line of F.M. 2234 -
  Shadow Creek Parkway (width varies);
         THENCE WESTERLY, 978 feet more or less, along the north line
  of said 48.00 acre tract to the northwest corner of said 48.00 acre
  tract, said point being the northeast corner of Business Center
  Drive (width varies at this point);
         THENCE SOUTHERLY, 925 feet more or less, along the west line
  of said 48.00 acre tract and the easterly right-of-way line of
  Business Center Drive to a point opposite the southeast corner of
  that certain called 17.5691 acre tract of land conveyed to GLOBAL
  NEW MILLENIUM PARTNERS, LTD. by the instrument of record under
  Document Number 2009057174, B.C.O.P.R.;
         THENCE WESTERLY, 1,113 feet more or less, along the south
  line of said called 17.5691 acre tract to the southwest corner of
  the same;
         THENCE NORTHERLY, 769 feet more or less, along the west line
  of said called 17.5691 acre tract to the most westerly northwest
  corner of the same;
         THENCE NORTHEASTERLY, 429 feet more or less, along the
  northwest line of said called 17.5691 acre tract to the south
  right-of-way line and crossing to the north right-of-way line of
  F.M. 2234 - Shadow Creek Parkway (160.00' wide);
         THENCE EASTERLY, 464 feet more or less, along said north
  right-of-way line, same being the south line of SHADOW CREEK RANCH
  COMMERCIAL SITE NO. 18B, a subdivision of record under Document
  Number 2007035195, B.C.O.P.R., to the southeast corner of said SITE
  18B;
         THENCE NORTHERLY, 515 feet more or less, along the east line
  of said SITE 18B to a point on the south line of SHADOW CREEK
  MARKETPLACE, a subdivision of record under Document Number
  2008001974, B.C.O.P.R.
         THENCE EASTERLY, 60 feet more or less, along said south line
  to a point on the west right-of-way line of Business Center Drive
  (100' wide);
         THENCE NORTHERLY, 101 feet more or less, along said west
  right-of-way line to a point on the north line of said SHADOW CREEK
  MARKETPLACE;
         THENCE NORTHEASTERLY, 1,674 feet more or less, along said
  north line to a point on the south line of a called 48.4712 acre
  tract of land conveyed to AMEGY MORTGAGE COMPANY, L.L.C., by the
  instrument of record under Document Number 2010023540, B.C.O.P.R.;
         THENCE EASTERLY, 792 feet more or less, along the south line
  of said called 48.4712 acre tract to the west right-of-way line of
  State Highway 288;
         THENCE NORTHERLY, 4,620 feet more or less, along said west
  right-of-way line to a point on the south right-of-way line of
  Beltway 8, same being the Northern City Limit Line of
  Pearland,Texas;
         THENCE EASTERLY, 2,623 feet more or less, along said City
  Limit Line, crossing and to a point on the east side of said State
  Highway 288 for the northwest corner of the MINOR SUBDIVISION PLAT
  OF REC-TIME SUBDIVISION, a subdivision of record under Film Code
  600053 of the Harris County Map Records, (H.C.M.R.);
         THENCE SOUTHERLY, 1,290 feet more or less, along the west
  line of said MINOR SUBDIVISION PLAT OF REC-TIME SUBDIVISION to the
  north line of TOM BASS PARK;
         THENCE WESTERLY, 679 feet more or less, to the west line of
  said PARK;
         THENCE SOUTHERLY, 2,966 feet more or less, along said west
  line to the north line of THE LAKES AT COUNTRYPLACE SECTION EIGHT, a
  subdivision of record in Volume 21, Pages 173-174, B.C.P.R.;
         THENCE WESTERLY, 116 feet more or less, SOUTHERLY 207 feet
  more or less and WESTERLY 439 feet more or less, along said north
  line to a point on the east right-of-way line of the aforementioned
  State Highway 288;
         THENCE SOUTHERLY to SOUTHEASTERLY, 1,682 feet more or less,
  along said east right-of-way line to the north right-of-way line of
  the aforementioned F.M. 2234-Shadow Creek Parkway;
         THENCE EASTERLY, 250 feet more or less, along said north
  right-of-way line to a point at the intersection with the east
  right-of-way line of County Road 94 (100' wide) projected north;
         THENCE SOUTHERLY, 3,536 feet more or less, along said east
  right-of-way line to the northwest corner of SOUTHDOWN COMMERCIAL
  RESERVE TRACT A, a subdivision of record in Volume 17, Pages
  151-152, B.C.P.R.;
         THENCE EASTERLY, 381 feet more or less, along the north line
  of said SOUTHDOWN COMMERCIAL RESERVE TRACT A and SOUTHDOWN
  COMMERCIAL RESERVE TRACT B, a subdivision of record in Volume 20,
  Pages 225-226, B.C.P.R. to the northeast corner of said TRACT B;
         THENCE SOUTHERLY, 264 feet more or less, along the east line
  of said TRACT B to the north right-of-way line and crossing to the
  south right-of-way line of Hughes Ranch Road (70' wide);
         THENCE EASTERLY, 758 feet more or less, along said south
  right-of-way line to the northwest corner of SERENE GARDENS, a
  subdivision of record under Document Number 2012007617,
  B.C.O.P.R.;
         THENCE SOUTHERLY, 970 feet more or less, along the west line
  of said SERENE GARDENS to the southwest corner of the same;
         THENCE EASTERLY, 417 feet more or less, along the south line
  of said SERENE GARDENS to the southeast corner of the same and being
  on the west line of AUTUMN LAKE SECTION 2, a subdivision of record
  in Volume 23, Pages 43-44, B.C.P.R.;
         THENCE SOUTHERLY, 2,972 feet more or less, along said west
  line of AUTUMN LAKE SECTION 2, AUTUMN LAKE SECTION 1, a subdivision
  of record in Volume 21, Pages 111-116, B.C.P.R. and AUTUMN LAKE
  SECTION 3, a subdivision of record in Volume 24, Page 19, B.C.P.R.
  to the southwest corner of said SECTION 3;
         THENCE EASTERLY, 906 feet more or less, along the south line
  of said SECTION 3 to the southeast corner of the same being on the
  east line of Lot 29 of the Allison-Richey Gulf Coast Home Company of
  Suburban Gardens Subdivision, Section 85, a subdivision of record
  in Volume 2, Page 107, B.C.P.R.;
         THENCE SOUTHERLY, 1,283 feet more or less, along the east
  line of said Lot 29 and Lot 30 of said Allison-Richey Subdivision,
  same being the HOME DEPOT tract to the north right-of-way line of
  F.M. 518 (130' wide at this point);
         THENCE SOUTHWESTERLY, 154 feet more or less, crossing said
  F.M. 518 to the south right-of-way line of the same;
         THENCE SOUTHERLY, 420 feet more or less, over and across
  SILVERLAKE COMMERCIAL PARK PHASE II, a subdivision of record in
  Volume 20, Pages 99-100, B.C.P.R. to an angle point in the south
  line of said SILVERLAKE COMMERCIAL PARK PHASE II;
         THENCE WESTERLY, 520 feet more or less, along the south line
  of said SILVERLAKE COMMERCIAL PARK PHASE II, passing the southwest
  corner of the same on the east right-of-way line and crossing to the
  west right-of-way line of the aforementioned County Road 94 (100'
  wide);
         THENCE SOUTHERLY, 280 feet more or less, along said west
  right-of-way line to the southeast corner of SILVERLAKE COMMERCIAL
  PARK PHASE VII, a subdivision of record in Volume 21, Pages 39-40,
  B.C.P.R.;
         THENCE WESTERLY, 570 feet more or less, along the south line
  of said PHASE VII to the most easterly southeast corner of
  SILVERLAKE POWER CENTER, a subdivision of record in Volume 21,
  Pages 351-352, B.C.P.R.;
         THENCE SOUTHWESTERLY, 2,248 feet more or less, along the
  south and southeast line of said SILVERLAKE POWER CENTER to the most
  westerly corner of SCOFIELD SECTION 1 AT SILVERLAKE, a subdivision
  of record in Volume 20, Pages 299-300, B.C.P.R.;
         THENCE SOUTHEASTERLY, 911 feet more or less, along the
  southwest line of said SCOFIELD SECTION 1 to the westerly
  right-of-way line of the aforementioned County Road 94;
         THENCE SOUTHERLY, 3,012 feet more or less, along said
  westerly right-of-way line to the north right-of-way line of the
  aforementioned County Road 59;
         THENCE WESTERLY, 451 feet more or less, along said north
  right-of-way line to an angle point on the same and being common
  with the east right-of-way line of the aforementioned State Highway
  288;
         THENCE NORTHWESTERLY, 389 feet more or less, along said east
  right-of-way line to an angle point;
         THENCE WESTERLY, 509 feet more or less, crossing said State
  Highway 288 to an angle point on the west right-of-way line of the
  same;
         THENCE SOUTHWESTERLY, 381 feet more or less, along said west
  right-of-way line to an angle point on the same and being common
  with the north right-of-way line of the aforementioned County Road
  59;
         THENCE WESTERLY, 936 feet more or less, along said north
  right-of-way line to the POINT OF BEGINNING and containing 1,483
  acres, more or less, of land.
         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, 2013.
 
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