By: Coleman (Senate Sponsor - Whitmire) H.B. No. 4703
         (In the Senate - Received from the House May 6, 2019;
  May 6, 2019, read first time and referred to Committee on
  Intergovernmental Relations; May 19, 2019, reported adversely,
  with favorable Committee Substitute by the following vote:  Yeas 7,
  Nays 0; May 19, 2019, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 4703 By:  Alvarado
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
 
  relating to the creation of the Harris County Improvement District
  No. 28; providing authority to issue bonds; providing authority to
  impose assessments, fees, and 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 3987 to read as follows:
  CHAPTER 3987. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 28
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 3987.0101.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the district's board of directors.
               (2)  "City" means the City of Houston.
               (3)  "County" means Harris County.
               (4)  "Director" means a board member.
               (5)  "District" means the Harris County Improvement
  District No. 28.
         Sec. 3987.0102.  NATURE OF DISTRICT. The Harris County
  Improvement District No. 28 is a special district created under
  Section 59, Article XVI, Texas Constitution.
         Sec. 3987.0103.  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.
         (b)  By creating the district and in authorizing the city 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.
         (c)  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.
         (d)  This chapter and the creation of the district may not be
  interpreted to relieve the city 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 services provided in the
  district.
         Sec. 3987.0104.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.
  (a) 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.
         (b)  The district is created to serve a public use and
  benefit.
         (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 water, wastewater, drainage, road, and
  recreational facilities for the district.
         (e)  Pedestrian 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. 3987.0105.  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 bonds for the purposes
  for which the district is created or to pay the principal of and
  interest on the bonds;
               (3)  right to impose or collect an assessment or tax; or
               (4)  legality or operation.
         Sec. 3987.0106.  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; or
               (2)  a tax abatement reinvestment zone created under
  Chapter 312, Tax Code.
         Sec. 3987.0107.  APPLICABILITY OF MUNICIPAL MANAGEMENT
  DISTRICTS LAW. Except as otherwise provided by this chapter,
  Chapter 375, Local Government Code, applies to the district.
         Sec. 3987.0108.  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. 3987.0201.  GOVERNING BODY; TERMS. (a) The district is
  governed by a board of five voting directors who serve staggered
  terms of four years, with two or three 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. The board may not consist of
  fewer than 5 or more than 15 voting directors.
         Sec. 3987.0202.  APPOINTMENT OF VOTING DIRECTORS. The mayor
  and members of 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,
  including the mayor, vote to appoint that person.
         Sec. 3987.0203.  NONVOTING DIRECTORS. The board may appoint
  nonvoting directors to serve at the pleasure of the voting
  directors.
         Sec. 3987.0204.  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. 3987.0205.  COMPENSATION. A director is entitled to
  receive fees of office and reimbursement for actual expenses as
  provided by Section 49.060, Water Code. Sections 375.069 and
  375.070, Local Government Code, do not apply to the board.
         Sec. 3987.0206.  INITIAL VOTING DIRECTORS. (a) The initial
  board consists of the following voting directors:
 
Pos. No. Name of Director
 
1 Robert Tautenhahn
 
2 Juan Carlos Herrera
 
3 Jack Chaluh
 
4 Maewel Ghebremichael
 
5 Jarret Ewing
         (b)  Of the initial directors, the terms of directors
  appointed for positions one through three expire June 1, 2021, and
  the terms of directors appointed for positions four and five expire
  June 1, 2023.
         (c)  Section 3987.0202 does not apply to this section.
         (d)  This section expires September 1, 2023.
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3987.0301.  GENERAL POWERS AND DUTIES. The district
  has the powers and duties necessary to accomplish the purposes for
  which the district is created.
         Sec. 3987.0302.  IMPROVEMENT PROJECTS AND SERVICES. (a) The
  district, using any money available to the district for the
  purpose, may 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.
         (b)  The district may contract with a governmental or private
  entity to carry out an action under Subsection (a).
         (c)  The implementation of a district project or service is a
  governmental function or service for the purposes of Chapter 791,
  Government Code.
         Sec. 3987.0303.  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. 3987.0304.  LAW ENFORCEMENT SERVICES. To protect the
  public interest, the district may contract with a qualified party,
  including the city, to provide law enforcement services in the
  district for a fee.
         Sec. 3987.0305.  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. 3987.0306.  ECONOMIC DEVELOPMENT PROGRAMS. (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. 3987.0307.  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. 3987.0308.  ADDING OR EXCLUDING LAND. The district may
  add or exclude land in the manner provided by Subchapter J, Chapter
  49, Water Code, or by Subchapter H, Chapter 54, Water Code.
         Sec. 3987.0309.  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. 3987.0310.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  SUBCHAPTER D. ASSESSMENTS
         Sec. 3987.0401.  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 at least 60 percent 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. 3987.0402.  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.
  SUBCHAPTER E. TAXES AND BONDS
         Sec. 3987.0501.  TAX ELECTION REQUIRED. The district must
  hold an election in the manner provided by Chapter 49, Water Code,
  or, if applicable, Chapter 375, Local Government Code, to obtain
  voter approval before the district may impose an ad valorem tax.
         Sec. 3987.0502.  OPERATION AND MAINTENANCE TAX. (a) If
  authorized by a majority of the district voters voting at an
  election under Section 3987.0501, the district may impose an
  operation and maintenance tax on taxable property in the district
  in the manner provided by 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 operation and maintenance
  tax rate. The rate may not exceed the rate approved at the
  election.
         (c)  Section 49.107(h), Water Code, does not apply to the
  district.
         Sec. 3987.0503.  AUTHORITY TO BORROW MONEY AND TO ISSUE
  BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on
  terms determined by the board.
         (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.
         (c)  The limitation on the outstanding principal amount of
  bonds, notes, or other obligations provided by Section 49.4645,
  Water Code, does not apply to the district.
         Sec. 3987.0504.  BONDS SECURED BY REVENUE OR CONTRACT
  PAYMENTS. The district may issue, without an election, bonds
  secured by:
               (1)  revenue other than ad valorem taxes, including
  contract revenues; or
               (2)  contract payments, provided that the requirements
  of Section 49.108, Water Code, have been met.
         Sec. 3987.0505.  BONDS SECURED BY AD VALOREM TAXES;
  ELECTIONS. (a) If authorized at an election under Section
  3987.0501, the district may issue bonds payable from ad valorem
  taxes only to purchase, construct, acquire, own, operate, repair,
  improve, or extend facilities and improvements for and in support
  of:
               (1)  parking as described by Section 3987.0307;
               (2)  parks and recreational facilities, including:
                     (A)  parks, landscaping, and greenbelts;
                     (B)  sidewalks and trails;
                     (C)  pedestrian crosswalks, bridges, and tunnels;
                     (D)  public right-of-way beautification projects;
                     (E)  plazas, pedestrian malls, and places of
  public assembly;
                     (F)  lighting, banners, and signs;
                     (G)  works of art; and
                     (H)  recreational equipment and facilities; and
               (3)  water, sewer, drainage, and road facilities and
  improvements.
         (b)  Section 375.243, Local Government Code, does not apply
  to the district.
         (c)  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.
         (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. 3987.0506.  CONSENT OF MUNICIPALITY REQUIRED. (a) The
  board may not issue bonds until each municipality in whose
  corporate limits or extraterritorial jurisdiction the district is
  located has consented by ordinance or resolution to the creation of
  the district and to the inclusion of land in the district.
         (b)  This section applies only to the district's first
  issuance of bonds payable from ad valorem taxes.
         Sec. 3987.0507.  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.
         Sec. 3987.0508.  CONFIRMATION ELECTION REQUIRED.  The
  district must hold an election to confirm the creation of the
  district before the district may impose an ad valorem tax or issue
  bonds payable from ad valorem taxes.
  SUBCHAPTER I. DISSOLUTION
         Sec. 3987.0901.  DISSOLUTION. (a) The board shall dissolve
  the district on written petition filed with the board by the owners
  of:
               (1)  66 percent or more of the assessed value of the
  property subject to assessment by the district based on the most
  recent certified county property tax rolls; or
               (2)  66 percent or more of the surface area of the
  district, excluding roads, streets, highways, utility
  rights-of-way, other public areas, and other property exempt from
  assessment by the district according to the most recent certified
  county property tax rolls.
         (b)  The board by majority vote may dissolve the district at
  any time.
         (c)  The district may not be dissolved by its board under
  Subsection (a) or (b) if the district:
               (1)  has any outstanding bonded indebtedness until that
  bonded indebtedness has been repaid or defeased in accordance with
  the order or resolution authorizing the issuance of the bonds;
               (2)  has a contractual obligation to pay money until
  that obligation has been fully paid in accordance with the
  contract; or
               (3)  owns, operates, or maintains public works,
  facilities, or improvements unless the district contracts with
  another person for the ownership, operation, or maintenance of the
  public works, facilities, or improvements.
         (d)  Sections 375.261, 375.262, and 375.264, Local
  Government Code, do not apply to the district.
         SECTION 2.  The Harris County Improvement District No. 28
  initially includes all territory contained in the following area:
         Being a tract or parcel, containing 6.011 acres (261,835
  square feet) of land, situated in the John Austin Two League Grant,
  Abstract Number 1, City of Houston, Harris County, Texas, and being
  all of Unrestricted Reserve "A" and part of and out of Unrestricted
  Reserve "B", Block 1, CWA GILLETTE STREET, a plat of subdivision
  recorded under Film Code Number 657260, Map Records of Harris
  County, Texas (M.R.H.C.); also being all that certain called 6.011
  acres described in deed to Westcreek HTX Real Estate Partners-D,
  L.P. (herein referred to as the "Westcreek Tract"), as recorded
  under County Clerk's File (C.C.F.) Number 20150175209, Official
  Public Records of Real Property of Harris County, Texas
  (O.P.R.R.P.H.C.); the herein described 6.011 acre tract being more
  particularly described by metes and bounds as follows (bearings
  herein are grid bearings based on the Texas State Plane Coordinate
  System, South Central Zone, NAD 83, as evidenced on said
  subdivision plat of CWA GILLETTE STREET; distances are surface
  distances based on the U.S. Survey Foot and may be converted to grid
  by multiplying by a combined scale factor of 0.999890843):
         BEGINNING at a 5/8-inch iron rod with plastic cap, stamped
  "TERRA SURVEYING", set marking the intersection of the south
  right-of-way (R.O.W.) line of Allen Parkway (public), based on a
  195-foot width, with the east R.O.W. line of Gillette Street
  (public), based on a 60-foot width; both street rights-of-way being
  part of and out of the remainder of that certain called 48.78 acres
  described in deed to City of Houston, as recorded in Volume 372,
  Page 235, Deed Records of Harris County, Texas; also, the alignment
  of said street rights-of-way are depicted on City File Room
  Drawings 6064 and 9387 for Allen Parkway, and 8064 and 36778 for
  Gillette Street; said iron rod also marking the northwest corner of
  said Westcreek Tract, said Unrestricted Reserve "A", and the herein
  described tract;
         THENCE, North 87°38'58" East, with the south R.O.W. line of
  said Allen Parkway, a distance of 387.79 feet to a 3/4-inch iron rod
  found marking the northwest corner of Reserve "A", Block 1, ALLEN
  PARKWAY VILLAGE, a plat of subdivision recorded under Film Code
  Number 428006, M.R.H.C.; said iron rod also marking the northeast
  corner of said Westcreek Tract, said Unrestricted Reserve "A", and
  the herein described tract, from which a 5/8-inch iron rod found for
  reference bears South 84°04' West, 2.40 feet;
         THENCE, South 02°19'25" East, departing said south R.O.W.
  line with the west line of said Reserve "A", and the east line of
  said Westcreek Tract and said Unrestricted Reserve "A", at 373.40
  feet pass a 3/4-inch iron rod found marking the most easterly common
  corner of the aforesaid Unrestricted Reserves "A" and "B";
  continuing, with said west line, and the east line of said Westcreek
  Tract and said Unrestricted Reserve "B", a total distance of 675.57
  feet to a 5/8-inch iron rod with plastic cap, stamped "TERRA
  SURVEYING", set marking the southeast corner of said Westcreek
  Tract and the herein described tract;
         THENCE, South 87°38'09" West, across said Unrestricted
  Reserve "B" with the south line of said Westcreek Tract, a distance
  of 387.31 feet to a 5/8-inch iron rod with plastic cap, stamped
  "TERRA SURVEYING", set in the east R.O.W. line of the aforesaid
  Gillette Street and marking the southwest corner of said Westcreek
  Tract and the herein described tract;
         THENCE, North 02°21'51" West, with the east R.O.W. line of
  said Gillette Street, at 418.66 feet pass the most westerly common
  corner of the aforesaid Unrestricted Reserves "A" and "B", from
  which a 3/4-inch iron rod found for reference bears South 87°38'58"
  West, 0.13 feet; continuing, a total distance of 675.66 feet to the
  POINT OF BEGINNING and containing 6.011 acres (261,835 square feet)
  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)  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, 2019.
 
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