Bill Text: TX HB4343 | 2017-2018 | 85th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the creation of Harris County Improvement District No. 26; providing authority to issue bonds; providing authority to impose assessments, fees, and taxes.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2017-06-02 - Recommendations filed with the Speaker [HB4343 Detail]

Download: Texas-2017-HB4343-Comm_Sub.html

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85R28366 SMT-D
By: Oliverson H.B. No. 4343
Substitute the following for H.B. No. 4343:
By: Cosper C.S.H.B. No. 4343

A BILL TO BE ENTITLED
AN ACT
relating to the creation of Harris County Improvement District No.
26; 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 3800 to read as follows:
CHAPTER 3800. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 26
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3800.001. 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. 26.
Sec. 3800.002. CREATION AND NATURE OF DISTRICT. The
district is a special district created under Section 59, Article
XVI, Texas Constitution.
Sec. 3800.003. 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. 3800.004. 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 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, 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. 3800.005. 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 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. 3800.006. 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;
(4) an industrial district created under Chapter 42,
Local Government Code; or
(5) a public improvement district created under
Chapter 372, Local Government Code.
Sec. 3800.007. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3800.008. 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. 3800.051. 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 only if the board determines that the change
is in the best interest of the district. The board may not consist
of fewer than five or more than 15 voting directors.
Sec. 3800.052. APPOINTMENT OF VOTING DIRECTORS. (a) The
Texas Commission on Environmental Quality shall appoint voting
directors from persons recommended by the board.
(b) Section 49.052, Water Code, does not apply to the
directors.
Sec. 3800.053. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Sec. 3800.054. 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. 3800.055. 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. 3800.056. INITIAL VOTING DIRECTORS. (a) The initial
board consists of:
Pos. No. Name of Director:
1 Jeff Eastman
2 Mark Urback
3 Lee Burchfield
4 James Warren
5 Jay Lynn Daniel
(b) Of the initial directors, the terms of directors
appointed for positions one through three expire June 1, 2019, and
the terms of directors appointed for positions four and five expire
June 1, 2021.
(c) Section 3800.052 does not apply to this section.
(d) This section expires September 1, 2021.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3800.101. GENERAL POWERS AND DUTIES. The district has
the powers and duties necessary to accomplish the purposes for
which the district is created.
Sec. 3800.102. 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. 3800.103. 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. 3800.104. 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. 3800.105. PUBLIC FACILITY CORPORATIONS. As provided
by Chapter 303, Local Government Code, the board by resolution may
authorize the creation of a public facility corporation in the
district to finance or to provide for the acquisition,
construction, rehabilitation, renovation, repair, equipping,
furnishing, or placement in service of public facilities in an
orderly, planned manner and at the lowest possible borrowing costs.
Sec. 3800.106. 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. 3800.107. LAW ENFORCEMENT SERVICES. To protect the
public interest, the district may contract with a qualified party,
including the county or the city, to provide law enforcement
services in the district for a fee.
Sec. 3800.108. 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. 3800.109. 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. 3800.110. 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 part 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. 3800.111. ANNEXATION OR EXCLUSION OF LAND. (a) The
district may annex land as provided by Subchapter J, Chapter 49,
Water Code.
(b) The district may exclude land as provided by Subchapter
J, Chapter 49, Water Code. Section 375.044(b), Local Government
Code, does not apply to the district.
Sec. 3800.112. PUBLIC IMPROVEMENT DISTRICT POWERS. The
district has the powers provided by Chapter 372, Local Government
Code, to a municipality or county.
Sec. 3800.113. ROAD UTILITY DISTRICT POWERS. The district
has the powers provided by the general laws relating to road utility
districts created under Section 52(b), Article III, Texas
Constitution, including Chapter 441, Transportation Code.
Sec. 3800.114. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
ASSESSMENTS AND FEES. The district may not impose an assessment,
impact fee, or standby fee on the property, including the
equipment, rights-of-way, easements, facilities, or improvements,
of:
(1) an electric utility or a power generation company
as defined by Section 31.002, Utilities Code;
(2) a gas utility, as defined by Section 101.003 or
121.001, Utilities Code, or a person who owns pipelines used for the
transportation or sale of oil or gas or a product or constituent of
oil or gas;
(3) a person who owns pipelines used for the
transportation or sale of carbon dioxide;
(4) a telecommunications provider as defined by
Section 51.002, Utilities Code; or
(5) a cable service provider or video service provider
as defined by Section 66.002, Utilities Code.
Sec. 3800.115. USE OF ELECTRICAL OR OPTICAL LINES. (a) The
district may impose an assessment to pay the cost of:
(1) burying or removing electrical power lines,
telephone lines, cable or fiber-optic lines, or any other type of
electrical or optical line;
(2) removing poles and any elevated lines using the
poles; and
(3) reconnecting the lines described by Subdivision
(2) to the buildings or other improvements to which the lines were
connected.
(b) The district may finance, acquire, construct, improve,
operate, maintain, or charge fees for the use of the district
conduits for another person's:
(1) telecommunications network; or
(2) fiber-optic cable.
(c) Consistent with Title 2, Utilities Code, the district
may finance, construct, or maintain conduits for:
(1) electronic transmission and distribution lines
and supporting facilities; or
(2) other types of transmission and distribution lines
and supporting facilities.
(d) The district may not require a person to use a district
conduit.
Sec. 3800.116. STRATEGIC PARTNERSHIP AGREEMENT. The
district may negotiate and enter into a written strategic
partnership agreement under Section 43.0751, Local Government
Code, with a municipality in whose extraterritorial jurisdiction
the district is located.
Sec. 3800.117. NO EMINENT DOMAIN POWER. The district may
not exercise the power of eminent domain.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS
Sec. 3800.151. 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. 3800.152. 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. 3800.153. 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. 3800.154. METHOD OF NOTICE FOR HEARING. The district
may mail the notice required by Section 375.115(c), Local
Government Code, by certified or first class United States mail.
The board shall determine the method of notice.
Sec. 3800.155. 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 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. 3800.156. RESIDENTIAL PROPERTY NOT EXEMPT. Section
375.161, Local Government Code, does not apply to the district.
Sec. 3800.157. COMPETITIVE BIDDING. Subchapter I, Chapter
49, Water Code, applies to the district. Sections 375.221 and
375.223, Local Government Code, do not apply to the district.
Sec. 3800.158. TAX AND ASSESSMENT ABATEMENTS. The district
may designate reinvestment zones and may grant abatements of a tax
or assessment on property in the zones in the manner provided by
Chapter 312, Tax Code.
SUBCHAPTER E. TAXES AND BONDS
Sec. 3800.201. 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 3800.203.
(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. 3800.202. OPERATION AND MAINTENANCE TAX. (a) If
authorized by a majority of the district voters voting at an
election held in accordance with Section 3800.201, 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.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Sec. 3800.203. 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. 3800.204. 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.
(c) 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.
Sec. 3800.205. 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.
SUBCHAPTER F. DEFINED AREAS
Sec. 3800.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR
DESIGNATED PROPERTY. The district may define areas or designate
certain property of the district to pay for improvements,
facilities, or services that primarily benefit that area or
property and do not generally and directly benefit the district as a
whole.
Sec. 3800.252. PROCEDURE FOR ELECTION. (a) Before the
district may impose an ad valorem tax or issue bonds payable from ad
valorem taxes of the defined area or designated property, the board
shall hold an election in the defined area or in the designated
property only.
(b) The board may submit the proposition to the voters on
the same ballot to be used in another election.
Sec. 3800.253. DECLARING RESULT AND ISSUING ORDER. (a) If
a majority of the voters voting at the election approve the
proposition or propositions, the board shall declare the results
and, by order, shall establish the defined area and describe it by
metes and bounds or designate the specific property.
(b) A court may not review the board's order except on the
ground of fraud, palpable error, or arbitrary and confiscatory
abuse of discretion.
Sec. 3800.254. TAXES FOR SERVICES, IMPROVEMENTS, AND
FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter
approval and adoption of the order described by Section 3800.253,
the district may apply separately, differently, equitably, and
specifically its taxing power and lien authority to the defined
area or designated property to provide money to construct,
administer, maintain, and operate services, improvements, and
facilities that primarily benefit the defined area or designated
property.
Sec. 3800.255. ISSUANCE OF BONDS FOR DEFINED AREA OR
DESIGNATED PROPERTY. After the order under Section 3800.253 is
adopted, the district may issue bonds to provide for any land,
improvements, facilities, plants, equipment, and appliances for
the defined area or designated property.
SUBCHAPTER G. SALES AND USE TAX
Sec. 3800.301. MEANINGS OF WORDS AND PHRASES. A word or
phrase used in this subchapter that is defined by Chapters 151 and
321, Tax Code, has the meaning assigned by Chapters 151 and 321, Tax
Code.
Sec. 3800.302. APPLICABILITY OF CERTAIN TAX CODE
PROVISIONS. (a) Except as otherwise provided by this subchapter,
Subtitles A and B, Title 2, Tax Code, and Chapter 151, Tax Code,
apply to taxes imposed under this subchapter and to the
administration and enforcement of those taxes in the same manner
that those laws apply to state taxes.
(b) Chapter 321, Tax Code, relating to municipal sales and
use taxes, applies to the application, collection, change, and
administration of a sales and use tax imposed under this subchapter
to the extent consistent with this chapter, as if references in
Chapter 321, Tax Code, to a municipality referred to the district
and references to a governing body referred to the board.
(c) Sections 321.106, 321.401, 321.402, 321.403, 321.404,
321.406, 321.409, 321.506, 321.507, and 321.508, Tax Code, do not
apply to a tax imposed under this subchapter.
Sec. 3800.303. AUTHORIZATION; ELECTION. (a) The district
may adopt a sales and use tax to serve the purposes of the district
after an election in which a majority of the voters of the district
voting in the election authorize the adoption of the tax.
(b) The board by order may call an election to authorize a
sales and use tax. The election may be held with any other district
election.
(c) The district shall provide notice of the election and
shall hold the election in the manner prescribed by Section
3800.201.
(d) The ballots shall be printed to provide for voting for
or against the proposition: "Authorization of a sales and use tax
in the Harris County Improvement District No. 26 at a rate not to
exceed ___ percent."
Sec. 3800.304. ABOLISHING SALES AND USE TAX. (a) Except as
provided by Subsection (b), the board may abolish the sales and use
tax without an election.
(b) The board may not abolish the sales and use tax if the
district has outstanding debt secured by the tax.
Sec. 3800.305. SALES AND USE TAX RATE. (a) On adoption of
the tax authorized by this subchapter, a tax is imposed on the
receipts from the sale at retail of taxable items in the district
and an excise tax is imposed on the use, storage, or other
consumption in the district of taxable items purchased, leased, or
rented from a retailer in the district during the period that the
tax is in effect.
(b) The board shall determine the rate of the tax, which may
be in one-eighth of one percent increments not to exceed the maximum
rate authorized by the district voters at the election. The board
may lower the tax rate to the extent the rate does not impair any
outstanding debt or obligations payable from the tax.
(c) The rate of the excise tax is the same as the rate of the
sales tax portion of the tax and is applied to the sales price of the
taxable item.
SUBCHAPTER H. HOTEL OCCUPANCY TAXES
Sec. 3800.351. HOTEL OCCUPANCY TAX. (a) In this section,
"hotel" has the meaning assigned by Section 156.001, Tax Code.
(b) For purposes of this section, a reference in Chapter
351, Tax Code, to a municipality is a reference to the district and
a reference in Chapter 351, Tax Code, to the municipality's
officers or governing body is a reference to the board.
(c) Except as inconsistent with this section, Subchapter A,
Chapter 351, Tax Code, governs a hotel occupancy tax authorized by
this section.
(d) The district may impose a hotel occupancy tax and use
the revenue from the tax for any district purpose that is an
authorized use of hotel occupancy tax revenue under Chapter 351,
Tax Code.
(e) The board by order may impose, repeal, increase, or
decrease the rate of a tax on a person who, under a lease,
concession, permit, right of access, license, contract, or
agreement, pays for the use or possession or for the right to the
use or possession of a room that:
(1) is in a hotel located in the district's boundaries;
(2) costs $2 or more each day; and
(3) is ordinarily used for sleeping.
(f) The amount of the tax may not exceed seven percent of the
price paid for a room in a hotel.
(g) The district may examine and receive information
related to the imposition of hotel occupancy taxes to the same
extent as if the district were a municipality.
SUBCHAPTER I. MUNICIPAL ANNEXATION AND DISSOLUTION
Sec. 3800.401. MUNICIPAL ANNEXATION; DISSOLUTION. (a) The
district is a "water or sewer district" under Section 43.071, Local
Government Code.
(b) Section 43.075, Local Government Code, applies to the
district.
(c) Section 375.264, Local Government Code, does not apply
to the dissolution of the district by a municipality.
SUBCHAPTER Z. SPECIAL BOND PROVISIONS
Sec. 3800.901. APPLICABILITY. This subchapter applies to
bonds payable wholly or partly from revenue derived from
assessments on real property in the district.
Sec. 3800.902. CONFLICT OF LAWS. In the event of a conflict
between this subchapter and any other law, this subchapter
prevails.
Sec. 3800.903. WRITTEN AGREEMENT REGARDING SPECIAL
APPRAISALS. Before issuing bonds, the district and any person to
whom the board intends that proceeds of the bonds be distributed,
including a developer of or owner of land in the district, and any
entity acting as a lender to a developer of or owner of land in the
district for the purpose of a project relating to the district, must
enter into a written agreement that:
(1) waives for the term of the agreement the right to a
special appraisal with respect to taxation by the district under
Subchapters B, C, D, E, F, and H, Chapter 23, Tax Code; and
(2) remains in effect for 30 years and is binding on
the parties, on entities related to or affiliated with the parties,
and on their successors and assignees.
Sec. 3800.904. REQUIREMENTS FOR ADVERTISING BOND ISSUE. A
district may not advertise for an issuance of bonds until the
completion of at least 25 percent of the projected value of the
improvements, including houses and other buildings, that are liable
for district assessments and necessary to support the district
bonds.
Sec. 3800.905. REQUIREMENTS FOR BOND ISSUE. The district
may not issue bonds until:
(1) the district submits to the commission:
(A) an engineer's report describing the project
for which the bonds will provide funding, including data, profiles,
maps, plans, and specifications related to the project; and
(B) a cash flow analysis to determine the
projected rate of assessment, which includes the following
assumptions:
(i) each ending balance for debt service in
the analysis is not less than 25 percent of the following year's
debt service requirement;
(ii) interest income is only shown on the
ending balance for debt service for the first two years; and
(iii) the projected rate of assessment is
level or decreasing for the life of the bonds issued by the
district;
(2) the completion of at least 75 percent of the
projected value of the improvements, including houses and other
buildings, that are liable for district assessments and necessary
to support the district bonds; and
(3) the district has obtained an independent market
study from a firm recognized in the area of real estate market
analysis supporting the development projects for the real property
that is liable for district assessments and necessary to support
the district bonds.
Sec. 3800.906. REQUIREMENTS FOR COLLECTION OF REVENUE TO
PAY BONDS. The district may not collect an assessment to be used
for the payment of bonds until:
(1) the completion of at least 95 percent of the
underground water, wastewater, and drainage facilities financed
from bond proceeds that are necessary to serve the projected
build-out, as certified by the district's engineer;
(2) the district or other appropriate party has
secured the groundwater, surface water, and water discharge permits
that are necessary to secure capacity to support the projected
build-out;
(3) the completion of at least 95 percent of lift
station, water plant, and sewage treatment plant capacity
sufficient to serve the connections constructed in the project for
a period of not less than 18 months, as certified by the district's
engineer; and
(4) the completion of at least 95 percent of the
streets and roads that are necessary to provide access to the areas
served by utilities and financed by the proceeds of bonds issued by
the district, as certified by the district's engineer and
constructed in accordance with city or county standards.
SECTION 2. Harris County Improvement District No. 26
initially includes all territory contained in the following area:
TRACT I:
BEING 117.4706 ACRES OF LAND, OUT OF A CALLED 354.0585 ACRES, THE
RESIDUE OF THE EAST ONE-HALF (1/2) OF THE WILLIAM HURD SURVEY,
ABSTRACT 377, HARRIS COUNTY, TEXAS, THE FRITZ W MARTENS CALLED 320
ACRE TRACT, DEED FILED OF RECORD MARCH 6, 1899, IN VOLUME 110, PAGE
530, AND FURTHER DESCRIBED IN A DEED TO G.W.H. MARTENS, FILED OF
RECORD NOVEMBER 15, 1935, IN VOLUME 1001, PAGE 22, AS CONTAINING
357.7 ACRES, AND PART OF A CALLED 14.2194 ACRE TRACT OF LAND
DESCRIBED UNDER HARRIS COUNTY CLERK'S FILE NUMBER S391922; SAID
117.4706 ACRES BEING MORE FULLY DESCRIBED BY METES AND BOUNDS AS
FOLLOWS:
COMMENCING AT A FENCE CORNER POST FOUND IN THE NORTH LINE OF THE
MANUEL TIJERINO SURVEY, A-763, BEING THE SOUTH LINE OF THE HURD
SURVEY, MARKING THE SOUTHWEST CORNER OF SAID 354.0585 ACRE TRACT,
THE RESIDUE OF SAID 357.7 ACRES
THENCE NORTH 00 DEGREES 27 MINUTES 21 SECONDS EAST, IN THE EAST LINE
OF THE ARTHUR KRAHN, ET UX, 49.2865 ACRE TRACT RECORDED UNDER COUNTY
CLERK'S FILE NUMBER E658964 FILM CODE NUMBER 134-09-1048 AND
CONTINUING IN THE EAST LINE OF THE ERVIN KRAHN, ET UX, 47.1315 ACRE
TRACT RECORDED UNDER COUNTY CLERK'S FILE NUMBER E658956, FIL CODE
NUMBER 134-09-1033, OFFICIAL PUBLIC RECORDS OF REAL PROPERTY,
HARRIS COUNTY, TEXAS AND ALONG A WIRE FENCE, A DISTANCE OF 3317.15
FEET TO A 10 INCH FENCE POST FOUND FOR THE SOUTHWEST CORNER AND
POINT OF BEGINNING OF THE TRACT HEREIN DESCRIBED;
THENCE NORTH 00 DEGREES 27 MINUTES 21 SECONDS EAST, CONTINUING
ALONG THE EAST LINE OF THE 47.1315 ACRE KRAHN TRACT, PASSING THE
NORTHEAST CORNER AT 17.24 FEET, CONTINUING IN THE EAST LINE OF THAT
CERTAIN 20.00 FOOT WIDE ACESS EASEMENT, RECORDED UNDER COUNTY
CLERK'S FILE NUMBER E658958, FILM CODE NUMBER 134-09-1033, OFFICIAL
PUBLIC RECORDS OF REAL PROPERTY, HARRIS COUNTY, AND ALONG THE WEST
LINE OF SAID 14.2194 ACRE TRACT AND ALONG A WIRE FENCE, IN ALL A
DISTANCE OF 1884.28 FEET TO A 12 INCH FENCE CORNER POST FOUND FOR
THE NORTHWEST CORNER OF SAID 14.2194 ACRE TRACT OF LAND, BEING THE
NORTHEAST CORNER OF A CALLED 2.16 ACRE TRACT DESCRIBED UNDER HARRIS
COUNTY CLERK'S FILE NUMBER C767820, BEING IN THE SOUTH RIGHT-OF-WAY
LINE OF FM 2920, (120.00 FEET WIDE) AND BEING THE NORTHWEST CORNER
OF THE HEREIN DESCRIBED TRACT.
THENCE SOUTH 89 DEGREES 42 MINUTES 00 SECONDS EAST, WITH THE SAID
SOUTH RIGHT-0F-WAY LINE OF F.M. 2920 AND THE NORTH LINE OF SAID
14.2194 ACRE TRACT OF LAND, A DISTANCE OF 834.47 TO A 3/4 INCH IRON
ROD FOUND FOR THE NORTHEAST CORNER OF THE HEREIN DESCRIBED TRACT;
THENCE SOUTH 00 DEGREES 18 MINUTES 00 SECONDS WEST, DEPARTING SAID
RIGHT-OF-WAY LINE, A DISTANCE OF 208.71 FEET TO A 3/4 INCH ROD FOUND
IN THE SOUTH LINE OF SAID 14.2194 ACRE TRACT FOR AN INTERIOR CORNER
OF THE HEREIN DESCRIBED TRACT;
THENCE SOUTH 89 DEGREES 40 MINUTES 44 SECONDS EAST, ALONG THE SOUTH
LINE OF SAID 14-2194 ACRE TRACT, THE RESIDUE OF SAID 354.0585 ACRES,
A DISTANCE OF 2104.88 FEET TO A 3/4 INCH IRON ROD FOUND FOR CORNER
BEING THE SOUTHEAST CORNER OF JACK IN THE BOX #3980, ACCORDING TO
THE PLAT RECORDED IN FILM CODE NO 568095 OF THE MAP RECORDS OF
HARRIS COUNTY, TEXAS BEING IN THE WEST RIGHT-OF-WAY LINE OF TELGE
ROAD, (60.00 FEET WIDE) AS MONUMETED FROM WHICH AN OLD 2 INCH IRON
PIPE FOUND MARKING THE NORTHEAST CORNER OF SAID 354.0585 ACRE TRACT
AND SHOWN ON THE STATE HIGHWAY DEPARTMENT RIGHT-OF-WAY MAPS AS
STATION 117-24 BEARS NORTH 00 DEGREES 05 MINUTES 11 SECONDS WEST,
248.71 FEET;
THENCE SOUTH 00 DEGREES 05 MINUTES 11 SECONDS EAST, ALONG THE WEST
RIGHT-OF-WAY LINE OF SAID TELGE ROAD, A DISTANCE OF 1677.75 FEET TO
A 3/4 INCH ROD FOUND FOR THE SOUTHEAST CORNER OF THE HEREIN
DESCRIBED TRACT;
THENCE NORTH 89 DEGREES 38 MINUTES 36 SECONDS WEST, DEPARTING SAID
RIGHT-OF-WAY, IN THE COMMON LINE BETWEEN THIS TRACT AND TRACT TWO
(2), CALLED 113.2797 ACRES, A DISTANCE OF 2955.79 FEET TO THE POINT
OF BEGINNING AND CONTAINING 117.4706 ACRES OF LAND, MORE OR LESS.
SAVE AND EXCEPT TWO 1.250 ACE TRACTS FURTHER DESCRIBED AS FOLLOWS:
TRACT II
BEING 1.250 ACRE OF LAND, OUT OF 354.0585 ACRES, THE RESIDUE OF THE
EAST ONE-HALF (1/2) OF THE WILL HURD SURVEY, ABSTRACT 377, HARRIS
COUNTY, TEXAS, THE FRIZ W MARTIENS CALLED 320 ACRE TRACT, DEED FILED
OF RECORD MARCH 06, 1899, IN VOLUME 110, PAGE 530, AND FURTHER
DESCRIBED IN A DEED TO G.W.H. MARTENS, FILED OF RECORD NOVEMBER 15,
1935, IN VOLUME 1001, PAGE 22, AS CONTAINING 357.7 ACRES; SAID 1.250
ACRES MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT A 12 INCH FENCE CORNER POST FOUND IN THE SOUTH
RIGHT-OF-WAY LINE OF F.M. 2920 AS ACQUIRED BY HARRIS COUNTY BY
RIGHT-OF-WAY DEED DATED SEPTEMBER 01, 1940, RECORDED IN VOLUME
1254, PAGE 644, DEED RECORDS, HARRIS COUNTY, TEXAS AND AS SHOWN ON
RIGHT-OF-WAY MAPS PREPARED BY HARRIS COUNTY, UPDATED 1966, SAID 12
INCH FENCE CORNER POST MARKING OF THE NORTHWEST CORNER OF SAID
354.0585 ACRE TRACT, LYING AND BEING SITUATED OUTH 00 DECREES 18
MINUTES 00 SECONDS WEST, 40.00 FEET FROM THE NORTHWEST CORNER OF
SAID 357.7 ACRE TRACT;
THENCE SOUTH 00 DEGREES 27 MINUTES 21 SECONDS WEST, WITH THE EAST
LINE OF A 20 FOOT WIDE ACCESS EASEMENT, RECORDED UNDER HARRIS COUNTY
CLERK'S FILE NUMBER E658958, THE WEST LINE OF SAID 354.0585 ACRE
TRACT, AT 208.71 FEET PASS A 3/4 INCH IRON ROD FOUND FOR THE
SOUTHWEST CORNER OF A CALLED 14.2194 ACRE TRACT, CONTINUING IN ALL,
A DISTANCE OF 599.80 FEET TO A POINT FOR CORNER;
THENCE SOUTH 89 DEGREES 42 MINUTES 00 SECONDS EAST, A DISTANCEOF
214.12 FEET TO THE NORTHWEST CORNER AND POINT OF BEGINNING OF THE
HEREIN DESCRIBED TRACT, FROM WHICH A FENCE CORNER BEARS SOUTH 89
DEGREES 20 MINUTES EAST, A DISTANCE OF 0.85 FEET;
THENCE CONTINUING SOUTH 89 DEGREES 42 MINUTES 00 SECONDS EAST, A
DISTANCE OF 208.71 FEET TO 3/4 INCH IRON ROD FOR CORNER;
THENCE SOUTH 00 DEGREES 18 MINUTES 00 SECONDS WEST, A DISTANCE OF
260.89 FEET TO A 3/4 INCH IRON ROD FOUND FOR CORNER;
THENCE NORTH 89 DECREES 42 MINUTES 00 SECONDS WEST, A DISTANCE OF
208.71 FEET TO A POINT FOR THE SOUTHWEST CORNER, FROM WHICH A BENT
3/4 INCH IRON ROD FOUND BEARS NORTH 05 DEGREES 03 MINUTES WEST, 0.58
FEET;
TEHCE NORTH 00 DEGREES 18 MINUTES 00 SECONDS EAST, A DISTANCE OF
260.89 FEET TO THE POINT OF BEGINNING AND CONTAINING 1.250 ACRES OF
LAND, MORE OR LESS.
TRACT III
BEING 1.250 ACRE OF LAND, OUT OF 354.0585 ACRES, THE RESIDUE OF THE
EAST ONE-HALF (1/2) OF THE WILL HURD SURVEY, ABSTRACT 377, HARRIS
COUNTY, TEXAS, THE FRIZ W MARTIENS CALLED 320 ACRE TRACT, DEED FILED
OF RECORD MARCH 06, 1899, IN VOLUME 110, PAGE 530, AND FURTHER
DESCRIBED IN A DEED TO G.W.H. MARTENS, FILED OF RECORD NOVEMBER 15,
1935, IN VOLUME 1001, PAGE 22, AS CONTAINING 357.7 ACRES; SAID 1.250
ACRES MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT A 12 INCH FENCE CORNER POST FOUND IN THE SOUTH
RIGHT-OF-WAY LINE OF F.M. 2920 AS ACQUIRED BY HARRIS COUNTY BY
RIGHT-OF-WAY DEED DATED SEPTEMBER 01, 1940, RECORDED IN VOLUME
1254, PAGE 644, DEED RECORDS, HARRIS COUNTY, TEXAS AND AS SHOWN ON
RIGHT-OF-WAY MAPS PREPARED BY HARRIS COUNTY, UP-DATED 1968, SAID 12
INCH FENCE CORNER POST MARKING OF THE NORTHWEST CORNER OF SAID
354.0585 ACRE TRACT, LYING AND BEING SITUATED SOUTH 00 DECREES 18
MINUTES 00 SECONDS WEST, 40.00 FEET FROM THE NORTHWEST CORNER OF
SAID 357.7 ACRE TRACT;
THENCE SOUTH 00 DEGREES 27 MINUTES 21 SECONDS WEST, WITH THE EAST
LINE OF A 20 FOOT WIDE ACCESS EASEMENT, RECORDED UNDER HARRIS COUNTY
CLERK'S FILE NUMBER E658958, THE WEST LINE OF SAID 354.0585 ACRE
TRACT, AT 208.71 FEET PASS A 3/4 INCH IRON ROD FOUND FOR THE
SOUTHWEST CORNER OF A CALLED 14.2194 ACRE TRACT, CONTINUING IN ALL,
A DISTANCE OF 599.80 FEED TO A POINT FOR CORNER;
THENCE SOUTH 89 DEGREES 42 MINUTES 00 SECONDS EAST, A DISTANCEOF
422.83 FEET TO A 3/4 INCH ROD FOUND FOR THE NORTHWEST CORNER AND
POINT OF BEGINNING OF THE HEREIN DESCRIBED TRACT,
THENCE CONTINUING SOUTH 89 DEGREES 42 MINUTES 00 SECONDS EAST, A
DISTANCE OF 208.71 FEET TO 3/4 INCH IRON ROD FOR CORNER;
THENCE SOUTH 00 DEGREES 18 MINUTES 00 SECONDS WEST, A DISTANCE OF
260.89 FEET TO A 3/4 INCH IRON ROD FOUND FOR CORNER;
THENCE NORTH 89 DECREES 42 MINUTES 00 SECONDS WEST, A DISTANCE OF
208.71 FEET TO A 3/4 INCH IRON ROD FOUND FOR CORNER;
TEHCE NORTH 00 DEGREES 18 MINUTES 00 SECONDS EAST, A DISTANCE OF
260.89 FEET TO THE POINT OF BEGINNING AND CONTAINING 1.250 ACRES OF
LAND, MORE OR LESS.
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, 2017.