H.B. No. 4827
 
 
 
 
AN ACT
  relating to the creation of Harris County Improvement District No.
  20; providing authority to impose a tax and issue bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  HARRIS COUNTY IMPROVEMENT DISTRICT NO. 20.
  Subtitle C, Title 4, Special District Local Laws Code, is amended by
  adding Chapter 3893 to read as follows:
  CHAPTER 3893. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 20
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 3893.001.  DEFINITIONS.  In this chapter:
               (1)  "Board" means the board of directors of the
  district.
               (2)  "Director" means a board member.
               (3)  "District" means the Harris County Improvement
  District No. 20.
         Sec. 3893.002.  HARRIS COUNTY IMPROVEMENT DISTRICT NO.
  20.  The Harris County Improvement District No. 20 is a special
  district created under Section 59, Article XVI, Texas Constitution.
         Sec. 3893.003.  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 Harris
  County, the City of Houston, the Metropolitan Transit Authority of
  Harris County, and other political subdivisions to contract with
  the district, the legislature has established a program to
  accomplish the public purposes set out in Section 52-a, Article
  III, Texas Constitution.
         (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 area of the district.
         (c)  This chapter and the creation of the district may not be
  interpreted to relieve Harris County or the City of Houston from
  providing the level of services provided as of the effective date of
  the Act creating this chapter to the area in the district or to
  release the county or the city from the obligations of each entity
  to provide services to that area. The district is created to
  supplement and not to supplant the county or city services provided
  in the area in the district.
         Sec. 3893.004.  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)  Each improvement project or service authorized by this
  chapter is essential to carry out a public purpose.
         (d)  The creation of the district is in the public interest
  and is essential to:
               (1)  further the public purposes of developing and
  diversifying the economy of the state;
               (2)  eliminate unemployment and underemployment; and
               (3)  develop or expand transportation and commerce.
         (e)  The district will:
               (1)  promote the health, safety, and general welfare of
  residents, employers, 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 area as a community and business center;
               (3)  promote the health, safety, welfare, and enjoyment
  of the public by providing public art and pedestrian ways and by
  landscaping and developing certain areas in the district, which are
  necessary for the restoration, preservation, and enhancement of
  scenic and aesthetic beauty;
               (4)  promote and benefit commercial development and
  commercial areas in the district; and
               (5)  promote and develop public transportation and
  pedestrian facilities and systems using new and alternative means
  that are attractive, safe, and convenient, including securing
  expanded and improved transportation and pedestrian facilities and
  systems, to:
                     (A)  address the problem of traffic congestion in
  the district, the need to control traffic and improve pedestrian
  safety, and the limited availability of money; and
                     (B)  benefit the land and other property in the
  district and the residents, employers, employees, visitors, and
  consumers in the district and the public.
         (f)  Pedestrian ways along or across a street, whether at
  grade or above or below the surface, and street lighting, street
  landscaping, and street art objects are parts of and necessary
  components of a street and are considered to be a street or road
  improvement.
         (g)  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. 3893.005.  DISTRICT TERRITORY.  (a) The district is
  composed of the territory described by Section 2 of the Act creating
  this chapter, as that territory may have been modified under:
               (1)  Section 3893.251;
               (2)  Subchapter J, Chapter 49, Water Code; or
               (3)  other law.
         (b)  The boundaries and field notes of the district contained
  in Section 2 of the Act creating this chapter form a closure. A
  mistake in the field notes or in copying the field notes in the
  legislative process does not in any way affect:
               (1)  the district's organization, existence, and
  validity;
               (2)  the district's right to issue any type of bond,
  including a refunding bond, for a purpose for which the district is
  created or to pay the principal of and interest on the bond;
               (3)  the district's right to impose and collect an
  assessment or tax; or
               (4)  the legality or operation of the district or the
  board.
         (c)  A description of the district's boundaries shall be
  filed with the Texas Commission on Environmental Quality. The
  commission by order may correct a mistake in the description of the
  district's boundaries.
         Sec. 3893.006.  LIBERAL CONSTRUCTION OF CHAPTER.  This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
  [Sections 3893.007-3893.050 reserved for expansion]
  SUBCHAPTER B. BOARD OF DIRECTORS
         Sec. 3893.051.  BOARD OF DIRECTORS; TERMS.  (a) The district
  is governed by a board of five voting directors appointed by a
  majority of the members of the governing body, including the mayor,
  of the City of Houston.  Voting directors serve staggered terms of
  four years with two or three directors' terms expiring June 1 of
  each odd-numbered year.
         (b)  The board by order or resolution may increase or
  decrease the number of voting directors on the board, but only if a
  majority of the voting directors finds that it is in the best
  interest of the district to do so. The board may not:
               (1)  increase the number of voting directors to more
  than nine; or
               (2)  decrease the number of voting directors to fewer
  than five.
         (c)  Sections 49.053, 49.054, 49.056, 49.057, 49.058, and
  49.060, Water Code, apply to the board.
         (d)  Subchapter D, Chapter 375, Local Government Code,
  applies to the board to the extent that subchapter does not conflict
  with this chapter.
         Sec. 3893.052.  APPOINTMENT OF DIRECTORS ON INCREASE IN
  BOARD SIZE. If the board increases the number of directors under
  Section 3893.051, the board shall appoint eligible persons to fill
  the new director positions and shall provide for the staggering of
  terms of the new directors. On expiration of the term of a director
  appointed under this section, a succeeding director shall be
  appointed and qualified as provided by Subchapter D, Chapter 375,
  Local Government Code. The mayor and members of the governing body
  of the City of Houston 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. 3893.053.  NONVOTING DIRECTORS. (a)  The following
  persons shall serve as nonvoting directors:
               (1)  the directors of the following departments of the
  City of Houston or a person designated by that director:
                     (A)  parks and recreation;
                     (B)  planning and development; and
                     (C)  public works; and
               (2)  the City of Houston's chief of police.
         (b)  If a department described by Subsection (a) is
  consolidated, renamed, or changed, the board may appoint a director
  of the consolidated, renamed, or changed department as a nonvoting
  director. If a department described by Subsection (a) is
  abolished, the board may appoint a representative of another
  department that performs duties comparable to the duties performed
  by the abolished department.
         Sec. 3893.054.  QUORUM.  (a)  A majority of the voting
  directors constitutes a quorum of the board.
         (b)  Nonvoting directors and vacant director positions are
  not counted for the purposes of establishing a quorum of the board.
         Sec. 3893.055.  CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.  
  (a)  Except as provided by this section:
               (1)  a voting director may participate in all board
  votes and decisions; and
               (2)  Chapter 171, Local Government Code, governs
  conflicts of interest for directors.
         (b)  Section 171.004, Local Government Code, does not apply
  to the district. A director who has a substantial interest in a
  business or charitable entity that will receive a pecuniary benefit
  from a board action shall file a one-time affidavit declaring the
  interest. An additional affidavit is not required if the
  director's interest changes. After the affidavit is filed with the
  board secretary, the director may participate in a discussion or
  vote on that action if:
               (1)  a majority of the directors have a similar
  interest in the same entity; or
               (2)  all other similar business or charitable entities
  in the district will receive a similar pecuniary benefit.
         (c)  A director who is also an officer or employee of a public
  entity may not participate in the discussion of or vote on a matter
  regarding a contract with that public entity.
         (d)  For purposes of this section, a director has a
  substantial interest in a charitable entity in the same manner that
  a person would have substantial interest in a business entity under
  Section 171.002, Local Government Code.
         Sec. 3893.056.  COMPENSATION OF VOTING DIRECTORS.  Voting
  directors may receive fees of office and reimbursement of expenses
  as provided by Section 49.060, Water Code.
         Sec. 3893.057.  INITIAL VOTING DIRECTORS. (a) The initial
  board consists of:
               Pos. No.   Name of Director
               1          Percy Ly Melton
               2          Orville Dunk
               3          La Monika Hurst
               4          Elizabeth Choate
               5          Rebecca Reyes
         (b)  Of the initial directors, the terms of directors serving
  in positions 1, 2, and 3 expire June 1, 2013, and the terms of
  directors serving in positions 4 and 5 expire June 1, 2011.
         (c)  Sections 3893.051(a) and (b) do not apply to the initial
  directors.
         (d)  This section expires September 1, 2013.
  [Sections 3893.058-3893.100 reserved for expansion]
  SUBCHAPTER C. POWERS AND DUTIES
         Sec. 3893.101.  DISTRICT POWERS.  The district may exercise
  the powers given to:
               (1)  a district created under Chapter 375, Local
  Government Code;
               (2)  a district by Subchapters H and I, Chapter 49,
  Water Code;
               (3)  a corporation under Chapter 505, Local Government
  Code, including the power to own, operate, acquire, construct,
  lease, improve, and maintain the projects described by that
  chapter; and
               (4)  a housing finance corporation created under
  Chapter 394, Local Government Code, to provide housing or
  residential development projects in the district.
         Sec. 3893.102.  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 for purposes of
  this chapter to be a local government corporation created under
  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, for the same term as,
  and on the same conditions as the board of directors of a local
  government corporation created under Chapter 431, Transportation
  Code.
         Sec. 3893.103.  AGREEMENTS; GRANTS.  (a)  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. 3893.104.  ELECTIONS.  (a) District elections must be
  held in the manner provided by Subchapter L, Chapter 375, Local
  Government Code.
         (b)  The board may submit multiple purposes in a single
  proposition at an election.
         Sec. 3893.105.  CONTRACT FOR LAW ENFORCEMENT AND SECURITY
  SERVICES.  The district may contract with:
               (1)  Harris County or the City of Houston for the county
  or city to provide law enforcement and security services in the
  district for a fee; or
               (2)  a private entity for the private entity to provide
  supplemental security services.
         Sec. 3893.106.  ANNEXATION OR EXCLUSION OF TERRITORY.  The
  district may annex or exclude land from the district in the manner
  provided by Subchapter C, Chapter 375, Local Government Code.
         Sec. 3893.107.  APPROVAL BY CITY OF HOUSTON.  (a)  Except as
  provided by Subsection (b), the district must obtain the approval
  of the City of Houston's governing body for:
               (1)  the issuance of a bond for each improvement
  project;
               (2)  the plans and specifications of the improvement
  project financed by the bond; and
               (3)  the plans and specifications of any district
  improvement project related to the use of land owned by the City of
  Houston, an easement granted by the City of Houston, or a
  right-of-way of a street, road, or highway.
         (b)  If the district obtains the approval of the City of
  Houston's governing body of a capital improvements budget for a
  period not to exceed five years, the district may finance the
  capital improvements and issue bonds specified in the budget
  without further approval from the City of Houston.
         Sec. 3893.108.  MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
  district may join and pay dues to an organization that:
               (1)  enjoys tax-exempt status under Section 501(c)(3),
  (4), or (6), Internal Revenue Code of 1986; and
               (2)  performs a service or provides an activity
  consistent with promoting a district purpose.
         Sec. 3893.109.  ROAD POWERS. The district may exercise
  powers given to:
               (1)  a road district created under Chapter 257,
  Transportation Code; and
               (2)  a road utility district created under Chapter 441,
  Transportation Code.
         Sec. 3893.110.  AIR RIGHTS; CONSTRUCTION. The district may
  acquire air rights and may construct improvements on property on
  which it owns only air rights.
         Sec. 3893.111.  ADDITIONAL PROPERTY RIGHTS; LEASEHOLDS.  The
  district may construct improvements on property on which it only
  has a leasehold interest and may own undivided interests in
  buildings and other improvements.
         Sec. 3893.112.  NO EMINENT DOMAIN POWER. The district may
  not exercise the power of eminent domain.
  [Sections 3893.113-3893.150 reserved for expansion]
  SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
         Sec. 3893.151.  PUBLIC TRANSIT SYSTEM; PETITION REQUIRED.
  (a) The district may acquire, lease as lessor or lessee, construct,
  develop, own, operate, and maintain a public transit system to
  serve the area within the boundaries of the district.
         (b)  The board may not act under Subsection (a) unless a
  written petition requesting the action has been filed with the
  board.
         (c)  The petition must be signed by:
               (1)  the owners of property representing a majority of
  the total assessed value of the real property in the district that
  abuts the right-of-way in which the public transit system is
  proposed to be located; or
               (2)  the owners of a majority of the area of the real
  property in the district that abuts the right-of-way in which the
  public transit system is proposed to be located.
         (d)  For purposes of Subsection (c), the determination of a
  majority is based on the property owners along the entire
  right-of-way of the proposed transit project and may not be
  calculated on a block-by-block basis.
         Sec. 3893.152.  PARKING FACILITIES AUTHORIZED; OPERATION BY
  PRIVATE ENTITY. (a) The district may acquire, lease as lessor or
  lessee, construct, develop, own, operate, and maintain parking
  facilities, including:
               (1)  lots, garages, parking terminals, or other
  structures or accommodations for the parking of motor vehicles; and
               (2)  equipment, entrances, exits, fencing, and other
  accessories necessary for safety and convenience in the parking of
  vehicles.
         (b)  A parking facility of the district must be either leased
  to or operated on behalf of the district by a private entity or an
  entity other than the district. The district's parking facilities
  are a program authorized by the legislature under Section 52-a,
  Article III, Texas Constitution, and accomplish a public purpose
  under that section even if leased or operated by a private entity
  for a term of years.
         Sec. 3893.153.  RULES. The district may adopt rules
  covering its public transit system or its public parking
  facilities, except that a rule relating to or affecting the use of
  the public right-of-way or a requirement for off-street parking is
  subject to all applicable municipal charter, code, or ordinance
  requirements.
         Sec. 3893.154.  FINANCING OF PUBLIC TRANSIT SYSTEM OR
  PARKING FACILITIES. (a) The district may use any of its resources,
  including revenue, assessments, taxes, and grant or contract
  proceeds, to pay the cost of acquiring and operating a public
  transit system or public parking facilities.
         (b)  The district may set and impose fees, charges, or tolls
  for the use of the public transit system or the public parking
  facilities and may issue bonds or notes to finance the cost of these
  facilities.
         (c)  Except as provided by Section 3893.151, if the district
  pays for or finances the cost of acquiring or operating a public
  transit system or public parking facilities with resources other
  than assessments, a petition of property owners or a public hearing
  is not required.
         Sec. 3893.155.  PAYMENT IN LIEU OF TAXES TO OTHER TAXING
  UNIT. If the district's acquisition of property for a parking
  facility that is leased to or operated by a private entity results
  in the removal from a taxing unit's tax rolls of real property
  otherwise subject to ad valorem taxation, the district shall pay to
  the taxing unit in which the property is located, on or before
  January 1 of each year, as a payment in lieu of taxes, an amount
  equal to the ad valorem taxes that otherwise would have been imposed
  for the preceding tax year on that real property by the taxing unit,
  without including the value of any improvements constructed on the
  property.
         Sec. 3893.156.  AGREEMENT WITH RAPID TRANSIT AUTHORITY.  (a)  
  In this section, "authority" means a rapid transit authority
  created under Chapter 451, Transportation Code.
         (b)  The district and an authority may agree to jointly
  construct, own, operate, and maintain a transit facility or a
  parking facility under the terms the authority and district desire.
         (c)  The agreement may provide that the district and the
  authority exchange or trade land provided that each party to the
  agreement receives fair market value. The authority is not
  required to offer any property that it proposes to trade to the
  district for sale to the public or for sale to any abutting property
  owner.
  [Sections 3893.157-3893.200 reserved for expansion]
  SUBCHAPTER E. FINANCIAL PROVISIONS
         Sec. 3893.201.  AUTHORITY TO IMPOSE ASSESSMENTS, AD VALOREM
  TAXES, AND IMPACT FEES. The district may impose, assess, charge, or
  collect an assessment, an ad valorem tax, an impact fee, or another
  fee in accordance with Chapter 49, Water Code, for a purpose
  specified by Chapter 375, Local Government Code, or as needed to
  exercise a power or function of the district or to accomplish a
  purpose or duty for which the district was created.
         Sec. 3893.202.  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 the district's money.
         Sec. 3893.203.  ASSESSMENT IN PART OF DISTRICT. An
  assessment may be imposed on only a part of the district if only
  that part will benefit from the service or improvement.
         Sec. 3893.204.  PETITION REQUIRED FOR ASSESSMENT AND FOR
  FINANCING SERVICES AND IMPROVEMENTS. (a) The board may not impose
  an assessment or finance a service or improvement project under
  this chapter unless a written petition requesting the improvement
  or service has been filed with the board.
         (b)  The petition must be signed by:
               (1)  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 Harris County; or
               (2)  at least 25 owners of real property in the district
  that will be subject to the assessment, if more than 25 persons own
  real property subject to the assessment in the district according
  to the most recent certified tax appraisal roll for Harris County.
         (c)  The board may act upon a petition, required under this
  section, signed by qualified petitioners prior to or subsequent to
  the enactment of this chapter.
         Sec. 3893.205.  MAINTENANCE TAX.  (a)  If authorized at an
  election held in accordance with Section 3893.104, the district may
  impose an annual ad valorem tax on taxable property in the district
  to:
               (1)  administer the district;
               (2)  maintain and operate the district;
               (3)  construct or acquire improvements; or
               (4)  provide a service.
         (b)  The board shall determine the tax rate.
         (c)  An owner of real property in the district, except
  property exempt under the Texas or United States Constitution or
  under the Tax Code, is liable for the payment of ad valorem taxes
  imposed by the district on the property.
         Sec. 3893.206.  ASSESSMENTS; LIENS FOR ASSESSMENTS.  (a)
  The board by resolution may impose and collect an assessment for any
  purpose authorized by this chapter.
         (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. 3893.207.  PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
  ASSESSMENT AND IMPACT FEES. The district may not impose an impact
  fee or assessment on the property, including the equipment,
  rights-of-way, 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;
               (3)  a telecommunications provider as defined by
  Section 51.002, Utilities Code; or
               (4)  a person who provides the public cable television
  or advanced telecommunications services.
         Sec. 3893.208.  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 acquire, operate, or charge fees for
  the use of the district conduits for:
               (1)  another person's:
                     (A)  telecommunications network;
                     (B)  fiber-optic cable; or
                     (C)  electronic transmission line; or
               (2)  any other type of transmission line or supporting
  facility.
         (c)  The district may not require a person to use a district
  conduit.
         Sec. 3893.209.  BONDS AND OTHER OBLIGATIONS.  (a) The
  district may issue bonds, notes, or other obligations in accordance
  with Subchapter J, Chapter 375, Local Government Code, payable
  wholly or partly from assessments, impact fees, revenue, grants, or
  other money of the district, or any combination of these sources of
  money, to pay for any authorized district purpose.
         (b)  In exercising the district's power to borrow, the
  district may issue a bond or other obligation in the form of a bond,
  note, certificate of participation or other instrument evidencing a
  proportionate interest in payments to be made by the district, or
  other type of obligation.
         Sec. 3893.210.  LIMITS ON PARKS AND RECREATION BONDS. Bonds
  issued to finance parks and recreational facilities may not exceed
  one percent of the assessed value of the real property in the
  district according to the most recent certified tax appraisal roll
  for Harris County.
         Sec. 3893.211.  TAX AND BOND ELECTIONS. (a) The district
  shall hold an election in the manner provided by Subchapter L,
  Chapter 375, Local Government Code, to obtain voter approval before
  the district imposes a maintenance tax or issues bonds payable from
  ad valorem taxes.
         (b)  The board may not include more than one purpose in a
  single proposition at an election to impose a maintenance tax or
  issue bonds payable from ad valorem taxes.
         (c)  Section 375.243, Local Government Code, does not apply
  to the district.
         Sec. 3893.212.  POWERS OF MUNICIPAL UTILITY DISTRICT TO
  ESTABLISH DEFINED AREAS AND DESIGNATED PROPERTY; TAXES; BONDS. (a)
  The district has the powers of a municipal utility district under
  Subchapter J, Chapter 54, Water Code, including the power to:
               (1)  implement a plan;
               (2)  issue bonds; and
               (3)  impose a tax in a defined area established under
  that subchapter.
         (b)  The district may exercise the powers described by
  Subsection (a) regardless of whether the district is composed of
  the minimum number of acres provided by Section 54.801, Water Code.
         Sec. 3893.213.  MUNICIPALITY NOT REQUIRED TO PAY DISTRICT
  OBLIGATIONS. Except as provided by Section 375.263, Local
  Government Code, a municipality is not required to pay a bond, note,
  or other obligation of the district.
         Sec. 3893.214.  COMPETITIVE BIDDING. Section 375.221, Local
  Government Code, applies to the district only for a contract that
  has a value greater than $50,000.
  [Sections 3893.215-3893.250 reserved for expansion]
  SUBCHAPTER F. CONSOLIDATION
         Sec. 3893.251.  CONSOLIDATION WITH MUNICIPAL MANAGEMENT
  DISTRICT. (a)  The district may consolidate with one other
  municipal management district that adjoins or has a boundary that
  is within a two-mile radius of any boundary of the district. The
  board may consolidate with one other district only if the district
  to be consolidated has not issued bonds or notes secured by
  assessments or ad valorem taxes or imposed taxes.
         (b)  To initiate consolidation, the board of a district shall
  adopt a resolution proposing a consolidation and deliver a copy of
  the resolution to the board of each district with which
  consolidation is proposed.
         Sec. 3893.252.  TERMS AND CONDITIONS FOR CONSOLIDATION. Not
  later than the 30th day after districts are consolidated under
  Section 3893.251, the districts shall enter into an agreement
  specifying the terms and conditions for consolidation. The terms
  and conditions for consolidation must include:
               (1)  adoption of a name for the consolidated district;
               (2)  the number and apportionment of directors to serve
  on the board of the consolidated district;
               (3)  the effective date of the consolidation;
               (4)  an agreement on finances for the consolidated
  district, including disposition of funds, property, and other
  assets of each district; and
               (5)  an agreement on governing the districts during the
  transition period, including selection of officers.
         Sec. 3893.253.  NOTICE AND HEARING ON CONSOLIDATION.  (a)  
  Each district's board shall publish notice and hold a public
  hearing in its district regarding the terms and conditions for
  consolidation of the districts. The board shall publish notice at
  least once in a newspaper with general circulation in the affected
  districts at least seven days before the hearing.
         (b)  After the hearing, each board by resolution must approve
  the terms and conditions for consolidation by majority vote and
  enter an order consolidating the districts.
         (c)  If the board of each involved district adopts a
  resolution containing the terms and conditions for the
  consolidation, the involved districts become consolidated.
         Sec. 3893.254.  GOVERNING CONSOLIDATED DISTRICTS.  (a)  
  After two districts are consolidated, they become one district and
  are governed as one district.
         (b)  During the period before the terms and conditions of the
  agreement under Section 3893.252 take effect, the officers of each
  district shall continue to act jointly as officers of the original
  districts to settle the affairs of their respective districts.
         (c)  If one of the districts consolidated into one district
  under this subchapter had powers at the time the districts were
  consolidated that the other district being consolidated did not
  have, the consolidated district may exercise within the original
  boundaries of each district only the powers that belonged to that
  original district. In territory annexed into a consolidated
  district, the district may exercise any of the powers of the
  original districts.
         Sec. 3893.255.  DEBTS OF ORIGINAL DISTRICTS.  After two
  districts are consolidated, the consolidated district shall
  protect the debts and obligations of the original districts and
  shall ensure that the debts and obligations are not impaired. If
  the consolidated district has taxing authority, the debts may be
  paid by taxes imposed on the land in the original districts as if
  they had not consolidated or from contributions from the
  consolidated district on terms stated in the consolidation
  agreement.
         Sec. 3893.256.  ASSESSMENT AND COLLECTION OF TAXES. If the
  consolidated district has taxing authority, the district shall
  impose and collect taxes on all property in the district uniformly,
  for maintenance and operation of the district.
         Sec. 3893.257.  FILING OF ORDER WITH COUNTY CLERK AND
  EXECUTIVE DIRECTOR. The board shall keep in the records of the
  consolidated district, recorded in the office of the county clerk
  in each of the counties in the consolidated district, a
  consolidation order issued by the board. The board shall file the
  consolidation order with the executive director of the Texas
  Commission on Environmental Quality.
  [Sections 3893.258-3893.300 reserved for expansion]
  SUBCHAPTER G. DISSOLUTION
         Sec. 3893.301.  DISSOLUTION OF DISTRICT WITH OUTSTANDING
  DEBT.  (a) The district may be dissolved as provided by Subchapter
  M, Chapter 375, Local Government Code, except that Section 375.264,
  Local Government Code, does not apply to the district. The board
  may dissolve the district regardless of whether the district has
  debt.
         (b)  If the district has debt when it is dissolved, the
  district shall remain in existence solely for the purpose of
  discharging its bonds or other obligations according to their
  terms. The dissolution is effective when all debts have been
  discharged.
         SECTION 2.  BOUNDARIES. On the effective date of this Act,
  the Harris County Improvement District No. 20 includes all
  territory generally bounded by the following described area:
  UNLESS otherwise specified, the boundaries of this district will
  travel along the centerline of each street included, and each
  intersection will be the intersection of the centerlines of the
  streets mentioned.
         BEGINNING at the intersection of Interstate 610 and Mykawa
  Road; thence in a southeasterly direction along Mykawa Road to the
  southern boarder of Texas House District 147 (Harris County -
  Brazoria County border along Clear Creek).  Thence in a westerly
  direction along the southern border of Texas House District 147 to
  the border edge that runs North and South (east of Cullen
  Boulevard.).  Thence in a northerly direction along the edge of
  Texas House District 147 that generally runs North and South up to
  Interstate 610.  Thence in an easterly direction along Interstate
  610 to Mykawa Road at the point of BEGINNING.
         SECTION 3.  REIMBURSEMENT FOR COST OF CREATION. The Harris
  County Improvement District No. 20 may reimburse the cost of
  creating the district from assessments or other revenue created by
  the district or consolidated district under Section 3893.251,
  Special District Local Laws Code, as added by this Act.
         SECTION 4.  LEGISLATIVE FINDINGS. The legislature finds
  that:
               (1)  proper and legal notice of the intention to
  introduce this Act, setting forth the general substance of this
  Act, has been published as provided by law, and the notice and a
  copy of this Act have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished by
  the constitution and laws of this state, including the governor,
  who has submitted the notice and Act to the Texas Commission on
  Environmental Quality;
               (2)  the Texas Commission on Environmental Quality has
  filed its recommendations relating to this Act with the governor,
  lieutenant governor, and speaker of the house of representatives
  within the required time;
               (3)  the general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with; and
               (4)  all requirements of the constitution and laws of
  this state and the rules and procedures of the legislature with
  respect to the notice, introduction, and passage of this Act have
  been fulfilled and accomplished.
         SECTION 5.  EFFECTIVE DATE.  This Act takes effect
  immediately if it receives a vote of two-thirds of all the members
  elected to each house, as provided by Section 39, Article III, Texas
  Constitution.  If this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2009.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4827 was passed by the House on May
  15, 2009, by the following vote:  Yeas 144, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4827 on May 29, 2009, by the following vote:  Yeas 144, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4827 was passed by the Senate, with
  amendments, on May 27, 2009, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor