State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3805-harris-county-improvement-district-no-3

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3805. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3805.001. DEFINITIONS. In this chapter:

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

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

3.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(b), eff. September 1, 2005.

Sec. 3805.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3. A

special district known as the "Harris County Improvement District

No. 3" is a governmental agency and political subdivision of this

state.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(c), eff. September 1, 2005.

Sec. 3805.003. 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, 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 traversed by Kirby Drive in the city of

Houston.

(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 September 1, 1997,

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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.004. 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 Kirby Drive vicinity of the

city of Houston 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 Kirby Drive vicinity of the city of Houston; 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1, Chapter 1202,

Acts of the 77th Legislature, Regular Session, 2001, amending

former Section 376.154, Local Government Code, as that territory

may have been modified under:

(1) Section 3805.105 or its predecessor statutes, former Section

376.124(b), Local Government Code, as added by Chapter 275, Acts

of the 75th Legislature, Regular Session, 1997, and former

Section 376.154(b), Local Government Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district contained in

Section 1, Chapter 1202, Acts of the 77th Legislature, Regular

Session, 2001, amending former Section 376.154, Local Government

Code, 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.006. TORT LIABILITY. The district is a governmental

unit under Chapter 101, Civil Practice and Remedies Code, and the

operations of the district are essential government functions and

are not proprietary functions for any purpose, including the

application of Chapter 101, Civil Practice and Remedies Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.007. ELIGIBILITY FOR REINVESTMENT ZONES. All or any

part of the area of the district is eligible to be included in a

tax increment reinvestment zone created by the City of Houston

under Chapter 311, Tax Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.009. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3805.051. BOARD OF DIRECTORS; TERMS. (a) The district is

governed by a board of five directors who serve staggered terms

of four years.

(b) The board by resolution may increase or decrease the number

of directors on the board, but only if a majority of the board

finds that it is in the best interest of the district to do so.

The board may not:

(1) increase the number of directors to more than nine; or

(2) decrease the number of 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD

SIZE. If the board increases the number of directors under

Section 3805.051, the board shall appoint qualified persons to

fill the new director positions and shall provide for staggering

the terms of the directors serving in the new positions. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3805.101. DISTRICT POWERS. The district has:

(1) all powers necessary to accomplish the purposes for which

the district was created;

(2) the rights, powers, privileges, authority, and functions of

a district created under Chapter 375, Local Government Code;

(3) the powers, duties, and contracting authority specified by

Subchapters H and I, Chapter 49, Water Code;

(4) the powers given to 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

(5) the powers of a housing finance corporation created under

Chapter 394, Local Government Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.34, eff. April 1, 2009.

Sec. 3805.102. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.103. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.104. 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 for a fee; and

(2) a private entity for the private entity to provide

supplemental security services.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.105. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.106. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2005, 79th Leg., Ch.

684, Sec. 5, eff. June 17, 2005.

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3805.151. 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 or to accomplish a purpose

or duty for which the district was created.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.152. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3805.103, the district

may impose an annual ad valorem tax on taxable property in the

district to maintain, restore, replace, or operate the district

and improvements that the district constructs or acquires or the

district's facilities, works, or services.

(b) The board shall determine the tax rate.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.1525. 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(d), eff. September 1, 2005.

Sec. 3805.1526. 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 or in the area of the district that will

be subject to the assessment as determined by the most recent

certified tax appraisal roll for Harris County; or

(2) at least 25 persons who own real property in the district or

the area of the district that will be subject to the assessment,

if more than 25 persons own real property in the district or area

that will be subject to the assessment as determined by the most

recent certified tax appraisal roll for Harris County.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(d), eff. September 1, 2005.

Sec. 3805.153. ASSESSMENTS CONSIDERED TAXES. For purposes of a

title insurance policy issued under Title 11, Insurance Code, an

assessment is a tax.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.160, eff. September 1, 2005.

Sec. 3805.154. LIENS FOR ASSESSMENTS; SUITS TO RECOVER

ASSESSMENTS. (a) An assessment imposed on property under this

chapter is a personal obligation of the person who owns the

property on January 1 of the year for which the assessment is

imposed. If the person transfers title to the property, the

person is not relieved of the obligation.

(b) On January 1 of the year for which an assessment is imposed

on a property, a lien attaches to the property to secure the

payment of the assessment and any interest accrued on the

assessment. The lien has the same priority as a lien for district

taxes.

(c) Not later than the fourth anniversary of the date on which a

delinquent assessment became due, the district may file suit to

foreclose the lien or to enforce the obligation for the

assessment, or both, and for any interest accrued.

(d) In addition to recovering the amount of the assessment and

any accrued interest, the district may recover reasonable costs,

including attorney's fees, that the district incurs in

foreclosing the lien or enforcing the obligation. The costs may

not exceed an amount equal to 20 percent of the assessment and

interest.

(e) If the district does not file a suit in connection with a

delinquent assessment on or before the last date on which the

district may file suit under Subsection (c), the assessment and

any interest accrued is considered paid.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.155. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM

ASSESSMENT AND IMPACT FEES. The district may not impose an

impact fee or assessment on the property, including equipment or

facilities, of:

(1) an electric utility 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 cable operator as defined by 47 U.S.C. Section 522, as

amended.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(e), eff. September 1, 2005.

Sec. 3805.156. DEBT. The district may issue bonds, notes, or

other debt obligations in accordance with Subchapters I and J,

Chapter 375, Local Government Code, for a purpose specified by

that chapter or as required to exercise a power or function or to

accomplish a purpose or duty for which the district was created.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.157. 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(f), eff. September 1, 2005.

SUBCHAPTER E. DISSOLUTION

Sec. 3805.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

(a) The district may be dissolved as provided by Subchapter M,

Chapter 375, Local Government Code.

(b) Regardless of Section 375.264, Local Government Code, if the

district has debt, the district may be dissolved as provided by

Subchapter M, Chapter 375, Local Government Code. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER F. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3805.251. 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) Before the district may act under Subsection (a), a petition

must be filed with the district that requests the action with

regard to a public transit system. The petition must be signed

by owners of property representing a majority of the total

assessed value or 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. 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

computed on a block-by-block basis.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.252. PARKING FACILITIES AUTHORIZED; OPERATION BY

PRIVATE ENTITY; TAX EXEMPTION. (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 parking motor vehicles; and

(2) equipment, entrances, exits, fencing, and other accessories

necessary for safety and convenience in parking vehicles.

(b) A parking facility of the district must be leased to or

operated on behalf of the district by an entity other than the

district.

(c) The district's parking facilities are a program authorized

by the legislature under Section 52-a, Article III, Texas

Constitution, and serve a public purpose under that section even

if leased or operated by a private entity for a term of years.

(d) The district's public parking facilities and any lease to a

private entity are exempt from the payment of ad valorem taxes

and state and local sales and use taxes.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.253. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The

district may adopt rules covering its public transit system or

its public parking facilities.

(b) A rule adopted under this section that relates to or affects

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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.254. PAYING COST 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:

(1) set and impose fees, charges, or tolls for the use of the

public transit system or the public parking facilities; and

(2) issue bonds or notes to finance the cost of these

facilities.

(c) Except as provided by Section 3805.251, 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.255. 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

removing from a taxing unit's tax rolls 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

levied for the preceding tax year on that real property by the

taxing unit, without including the value of any improvements

constructed on the property.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3805-harris-county-improvement-district-no-3

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3805. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3805.001. DEFINITIONS. In this chapter:

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

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

3.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(b), eff. September 1, 2005.

Sec. 3805.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3. A

special district known as the "Harris County Improvement District

No. 3" is a governmental agency and political subdivision of this

state.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(c), eff. September 1, 2005.

Sec. 3805.003. 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, 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 traversed by Kirby Drive in the city of

Houston.

(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 September 1, 1997,

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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.004. 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 Kirby Drive vicinity of the

city of Houston 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 Kirby Drive vicinity of the city of Houston; 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1, Chapter 1202,

Acts of the 77th Legislature, Regular Session, 2001, amending

former Section 376.154, Local Government Code, as that territory

may have been modified under:

(1) Section 3805.105 or its predecessor statutes, former Section

376.124(b), Local Government Code, as added by Chapter 275, Acts

of the 75th Legislature, Regular Session, 1997, and former

Section 376.154(b), Local Government Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district contained in

Section 1, Chapter 1202, Acts of the 77th Legislature, Regular

Session, 2001, amending former Section 376.154, Local Government

Code, 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.006. TORT LIABILITY. The district is a governmental

unit under Chapter 101, Civil Practice and Remedies Code, and the

operations of the district are essential government functions and

are not proprietary functions for any purpose, including the

application of Chapter 101, Civil Practice and Remedies Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.007. ELIGIBILITY FOR REINVESTMENT ZONES. All or any

part of the area of the district is eligible to be included in a

tax increment reinvestment zone created by the City of Houston

under Chapter 311, Tax Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.009. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3805.051. BOARD OF DIRECTORS; TERMS. (a) The district is

governed by a board of five directors who serve staggered terms

of four years.

(b) The board by resolution may increase or decrease the number

of directors on the board, but only if a majority of the board

finds that it is in the best interest of the district to do so.

The board may not:

(1) increase the number of directors to more than nine; or

(2) decrease the number of 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD

SIZE. If the board increases the number of directors under

Section 3805.051, the board shall appoint qualified persons to

fill the new director positions and shall provide for staggering

the terms of the directors serving in the new positions. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3805.101. DISTRICT POWERS. The district has:

(1) all powers necessary to accomplish the purposes for which

the district was created;

(2) the rights, powers, privileges, authority, and functions of

a district created under Chapter 375, Local Government Code;

(3) the powers, duties, and contracting authority specified by

Subchapters H and I, Chapter 49, Water Code;

(4) the powers given to 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

(5) the powers of a housing finance corporation created under

Chapter 394, Local Government Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.34, eff. April 1, 2009.

Sec. 3805.102. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.103. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.104. 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 for a fee; and

(2) a private entity for the private entity to provide

supplemental security services.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.105. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.106. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2005, 79th Leg., Ch.

684, Sec. 5, eff. June 17, 2005.

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3805.151. 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 or to accomplish a purpose

or duty for which the district was created.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.152. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3805.103, the district

may impose an annual ad valorem tax on taxable property in the

district to maintain, restore, replace, or operate the district

and improvements that the district constructs or acquires or the

district's facilities, works, or services.

(b) The board shall determine the tax rate.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.1525. 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(d), eff. September 1, 2005.

Sec. 3805.1526. 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 or in the area of the district that will

be subject to the assessment as determined by the most recent

certified tax appraisal roll for Harris County; or

(2) at least 25 persons who own real property in the district or

the area of the district that will be subject to the assessment,

if more than 25 persons own real property in the district or area

that will be subject to the assessment as determined by the most

recent certified tax appraisal roll for Harris County.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(d), eff. September 1, 2005.

Sec. 3805.153. ASSESSMENTS CONSIDERED TAXES. For purposes of a

title insurance policy issued under Title 11, Insurance Code, an

assessment is a tax.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.160, eff. September 1, 2005.

Sec. 3805.154. LIENS FOR ASSESSMENTS; SUITS TO RECOVER

ASSESSMENTS. (a) An assessment imposed on property under this

chapter is a personal obligation of the person who owns the

property on January 1 of the year for which the assessment is

imposed. If the person transfers title to the property, the

person is not relieved of the obligation.

(b) On January 1 of the year for which an assessment is imposed

on a property, a lien attaches to the property to secure the

payment of the assessment and any interest accrued on the

assessment. The lien has the same priority as a lien for district

taxes.

(c) Not later than the fourth anniversary of the date on which a

delinquent assessment became due, the district may file suit to

foreclose the lien or to enforce the obligation for the

assessment, or both, and for any interest accrued.

(d) In addition to recovering the amount of the assessment and

any accrued interest, the district may recover reasonable costs,

including attorney's fees, that the district incurs in

foreclosing the lien or enforcing the obligation. The costs may

not exceed an amount equal to 20 percent of the assessment and

interest.

(e) If the district does not file a suit in connection with a

delinquent assessment on or before the last date on which the

district may file suit under Subsection (c), the assessment and

any interest accrued is considered paid.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.155. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM

ASSESSMENT AND IMPACT FEES. The district may not impose an

impact fee or assessment on the property, including equipment or

facilities, of:

(1) an electric utility 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 cable operator as defined by 47 U.S.C. Section 522, as

amended.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(e), eff. September 1, 2005.

Sec. 3805.156. DEBT. The district may issue bonds, notes, or

other debt obligations in accordance with Subchapters I and J,

Chapter 375, Local Government Code, for a purpose specified by

that chapter or as required to exercise a power or function or to

accomplish a purpose or duty for which the district was created.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.157. 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(f), eff. September 1, 2005.

SUBCHAPTER E. DISSOLUTION

Sec. 3805.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

(a) The district may be dissolved as provided by Subchapter M,

Chapter 375, Local Government Code.

(b) Regardless of Section 375.264, Local Government Code, if the

district has debt, the district may be dissolved as provided by

Subchapter M, Chapter 375, Local Government Code. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER F. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3805.251. 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) Before the district may act under Subsection (a), a petition

must be filed with the district that requests the action with

regard to a public transit system. The petition must be signed

by owners of property representing a majority of the total

assessed value or 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. 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

computed on a block-by-block basis.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.252. PARKING FACILITIES AUTHORIZED; OPERATION BY

PRIVATE ENTITY; TAX EXEMPTION. (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 parking motor vehicles; and

(2) equipment, entrances, exits, fencing, and other accessories

necessary for safety and convenience in parking vehicles.

(b) A parking facility of the district must be leased to or

operated on behalf of the district by an entity other than the

district.

(c) The district's parking facilities are a program authorized

by the legislature under Section 52-a, Article III, Texas

Constitution, and serve a public purpose under that section even

if leased or operated by a private entity for a term of years.

(d) The district's public parking facilities and any lease to a

private entity are exempt from the payment of ad valorem taxes

and state and local sales and use taxes.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.253. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The

district may adopt rules covering its public transit system or

its public parking facilities.

(b) A rule adopted under this section that relates to or affects

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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.254. PAYING COST 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:

(1) set and impose fees, charges, or tolls for the use of the

public transit system or the public parking facilities; and

(2) issue bonds or notes to finance the cost of these

facilities.

(c) Except as provided by Section 3805.251, 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.255. 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

removing from a taxing unit's tax rolls 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

levied for the preceding tax year on that real property by the

taxing unit, without including the value of any improvements

constructed on the property.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3805-harris-county-improvement-district-no-3

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3805. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3805.001. DEFINITIONS. In this chapter:

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

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

3.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(b), eff. September 1, 2005.

Sec. 3805.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3. A

special district known as the "Harris County Improvement District

No. 3" is a governmental agency and political subdivision of this

state.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(c), eff. September 1, 2005.

Sec. 3805.003. 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, 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 traversed by Kirby Drive in the city of

Houston.

(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 September 1, 1997,

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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.004. 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 Kirby Drive vicinity of the

city of Houston 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 Kirby Drive vicinity of the city of Houston; 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1, Chapter 1202,

Acts of the 77th Legislature, Regular Session, 2001, amending

former Section 376.154, Local Government Code, as that territory

may have been modified under:

(1) Section 3805.105 or its predecessor statutes, former Section

376.124(b), Local Government Code, as added by Chapter 275, Acts

of the 75th Legislature, Regular Session, 1997, and former

Section 376.154(b), Local Government Code;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district contained in

Section 1, Chapter 1202, Acts of the 77th Legislature, Regular

Session, 2001, amending former Section 376.154, Local Government

Code, 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.006. TORT LIABILITY. The district is a governmental

unit under Chapter 101, Civil Practice and Remedies Code, and the

operations of the district are essential government functions and

are not proprietary functions for any purpose, including the

application of Chapter 101, Civil Practice and Remedies Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.007. ELIGIBILITY FOR REINVESTMENT ZONES. All or any

part of the area of the district is eligible to be included in a

tax increment reinvestment zone created by the City of Houston

under Chapter 311, Tax Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.009. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3805.051. BOARD OF DIRECTORS; TERMS. (a) The district is

governed by a board of five directors who serve staggered terms

of four years.

(b) The board by resolution may increase or decrease the number

of directors on the board, but only if a majority of the board

finds that it is in the best interest of the district to do so.

The board may not:

(1) increase the number of directors to more than nine; or

(2) decrease the number of 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD

SIZE. If the board increases the number of directors under

Section 3805.051, the board shall appoint qualified persons to

fill the new director positions and shall provide for staggering

the terms of the directors serving in the new positions. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3805.101. DISTRICT POWERS. The district has:

(1) all powers necessary to accomplish the purposes for which

the district was created;

(2) the rights, powers, privileges, authority, and functions of

a district created under Chapter 375, Local Government Code;

(3) the powers, duties, and contracting authority specified by

Subchapters H and I, Chapter 49, Water Code;

(4) the powers given to 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

(5) the powers of a housing finance corporation created under

Chapter 394, Local Government Code.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.34, eff. April 1, 2009.

Sec. 3805.102. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.103. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.104. 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 for a fee; and

(2) a private entity for the private entity to provide

supplemental security services.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.105. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.106. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2005, 79th Leg., Ch.

684, Sec. 5, eff. June 17, 2005.

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3805.151. 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 or to accomplish a purpose

or duty for which the district was created.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.152. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3805.103, the district

may impose an annual ad valorem tax on taxable property in the

district to maintain, restore, replace, or operate the district

and improvements that the district constructs or acquires or the

district's facilities, works, or services.

(b) The board shall determine the tax rate.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.1525. 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(d), eff. September 1, 2005.

Sec. 3805.1526. 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 or in the area of the district that will

be subject to the assessment as determined by the most recent

certified tax appraisal roll for Harris County; or

(2) at least 25 persons who own real property in the district or

the area of the district that will be subject to the assessment,

if more than 25 persons own real property in the district or area

that will be subject to the assessment as determined by the most

recent certified tax appraisal roll for Harris County.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(d), eff. September 1, 2005.

Sec. 3805.153. ASSESSMENTS CONSIDERED TAXES. For purposes of a

title insurance policy issued under Title 11, Insurance Code, an

assessment is a tax.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 11.160, eff. September 1, 2005.

Sec. 3805.154. LIENS FOR ASSESSMENTS; SUITS TO RECOVER

ASSESSMENTS. (a) An assessment imposed on property under this

chapter is a personal obligation of the person who owns the

property on January 1 of the year for which the assessment is

imposed. If the person transfers title to the property, the

person is not relieved of the obligation.

(b) On January 1 of the year for which an assessment is imposed

on a property, a lien attaches to the property to secure the

payment of the assessment and any interest accrued on the

assessment. The lien has the same priority as a lien for district

taxes.

(c) Not later than the fourth anniversary of the date on which a

delinquent assessment became due, the district may file suit to

foreclose the lien or to enforce the obligation for the

assessment, or both, and for any interest accrued.

(d) In addition to recovering the amount of the assessment and

any accrued interest, the district may recover reasonable costs,

including attorney's fees, that the district incurs in

foreclosing the lien or enforcing the obligation. The costs may

not exceed an amount equal to 20 percent of the assessment and

interest.

(e) If the district does not file a suit in connection with a

delinquent assessment on or before the last date on which the

district may file suit under Subsection (c), the assessment and

any interest accrued is considered paid.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.155. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM

ASSESSMENT AND IMPACT FEES. The district may not impose an

impact fee or assessment on the property, including equipment or

facilities, of:

(1) an electric utility 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 cable operator as defined by 47 U.S.C. Section 522, as

amended.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Amended by:

Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(e), eff. September 1, 2005.

Sec. 3805.156. DEBT. The district may issue bonds, notes, or

other debt obligations in accordance with Subchapters I and J,

Chapter 375, Local Government Code, for a purpose specified by

that chapter or as required to exercise a power or function or to

accomplish a purpose or duty for which the district was created.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3805.157. 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(f), eff. September 1, 2005.

SUBCHAPTER E. DISSOLUTION

Sec. 3805.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

(a) The district may be dissolved as provided by Subchapter M,

Chapter 375, Local Government Code.

(b) Regardless of Section 375.264, Local Government Code, if the

district has debt, the district may be dissolved as provided by

Subchapter M, Chapter 375, Local Government Code. 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.

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER F. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3805.251. 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) Before the district may act under Subsection (a), a petition

must be filed with the district that requests the action with

regard to a public transit system. The petition must be signed

by owners of property representing a majority of the total

assessed value or 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. 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

computed on a block-by-block basis.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.252. PARKING FACILITIES AUTHORIZED; OPERATION BY

PRIVATE ENTITY; TAX EXEMPTION. (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 parking motor vehicles; and

(2) equipment, entrances, exits, fencing, and other accessories

necessary for safety and convenience in parking vehicles.

(b) A parking facility of the district must be leased to or

operated on behalf of the district by an entity other than the

district.

(c) The district's parking facilities are a program authorized

by the legislature under Section 52-a, Article III, Texas

Constitution, and serve a public purpose under that section even

if leased or operated by a private entity for a term of years.

(d) The district's public parking facilities and any lease to a

private entity are exempt from the payment of ad valorem taxes

and state and local sales and use taxes.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.253. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The

district may adopt rules covering its public transit system or

its public parking facilities.

(b) A rule adopted under this section that relates to or affects

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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.254. PAYING COST 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:

(1) set and impose fees, charges, or tolls for the use of the

public transit system or the public parking facilities; and

(2) issue bonds or notes to finance the cost of these

facilities.

(c) Except as provided by Section 3805.251, 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.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.

Sec. 3805.255. 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

removing from a taxing unit's tax rolls 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

levied for the preceding tax year on that real property by the

taxing unit, without including the value of any improvements

constructed on the property.

Added by Acts 2005, 79th Leg., Ch.

728, Sec. 18.003(g), eff. September 1, 2005.