CHAPTER 3806. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2

State Codes and Statutes

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SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3806. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3806.001. DEFINITIONS. In this chapter:

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

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

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

Sec. 3806.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2. A

special district known as the "Harris County Improvement District

No. 2" is a governmental agency and political subdivision of this

state.

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

Sec. 3806.003. 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 Richmond Avenue area of Houston.

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. 3806.004. 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.

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.

(d) 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 to preserve, maintain, and enhance

the economic health and vitality of the area in the district as a

community and business center; and

(3) promote the health, safety, welfare, and enjoyment of the

public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic and

aesthetic beauty.

(e) 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.

(f) The district will not act as the agent or instrumentality of

any private interest even though the district will benefit many

private interests as well as the public.

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

Sec. 3806.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 1, Chapter 679,

Acts of the 75th Legislature, Regular Session, 1997, enacting

former Section 376.214, Local Government Code, as that territory

may have been modified under:

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

(2) other law.

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

Section 1, Chapter 679, Acts of the 75th Legislature, Regular

Session, 1997, enacting former Section 376.214, 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.

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

Sec. 3806.006. APPLICABILITY OF OTHER LAW. Except as otherwise

provided by this chapter, Chapter 375, Local Government Code,

applies to the district.

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

Sec. 3806.007. 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. 3806.051. BOARD OF DIRECTORS; TERMS. (a) The district is

governed by a board of nine directors who serve staggered terms

of four years, with four or five directors' terms expiring June 1

of each odd-numbered year.

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

of directors on the board, but only if 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 30; or

(2) decrease the number of directors to fewer than nine.

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

Sec. 3806.052. APPOINTMENT OF DIRECTORS. The mayor and members

of the governing body of the City of Houston shall appoint

directors from persons recommended by the board who meet the

requirements of 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. 3806.101. 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; and

(3) the powers given to a corporation under Chapter 505, Local

Government Code, and the power to own, operate, acquire,

construct, lease, improve, and maintain projects.

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

Amended by:

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

885, Sec. 3.35, eff. April 1, 2009.

Sec. 3806.103. 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.

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 conditions of 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. 3806.104. CONTRACTS; GRANTS. (a) To protect the public

interest, the district may contract with Harris County or the

City of Houston for the county or the city to provide law

enforcement services in the district for a fee.

(b) Harris County, the City of Houston, or another political

subdivision of this state, without further authorization, may

contract with the district to implement a project of the district

or assist the district in providing a service authorized under

this chapter. A contract under this subsection may:

(1) be for a period on which the parties agree;

(2) include terms on which the parties agree;

(3) be payable from taxes or any other source of revenue that

may be available for that project or service; and

(4) provide terms under which taxes or other revenue collected

at a district project or from a person using or purchasing a

commodity or service at a district project may be paid or rebated

to the district.

agreement with or make or accept a grant or loan to or from any

person, including:

(1) the United States;

(2) this state or a state agency;

(3) any political subdivision of this state; and

(4) a public or private corporation, including a nonprofit

corporation created under this subchapter.

(d) The district may perform all acts necessary for the full

exercise of the powers vested in the district on terms and for

the period the board determines advisable.

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

Sec. 3806.105. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

684, Sec. 6, eff. June 17, 2005.

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3806.151. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS. (a) The board may not finance a service or an

improvement project under this chapter unless a written petition

requesting that service or improvement is 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 according to the most recent certified

tax appraisal roll for Harris County; or

(2) at least 50 owners of land in the district, if more than 50

persons own property in the district according to the most recent

certified tax appraisal roll for Harris County.

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

Sec. 3806.152. 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.

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

Sec. 3806.153. BOARD VOTE REQUIRED TO IMPOSE TAXES, ASSESSMENTS,

OR IMPACT FEES. The imposition of a tax, assessment, or impact

fee requires a vote of a majority of the directors serving.

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

Sec. 3806.154. AUTHORITY TO IMPOSE AD VALOREM TAXES,

ASSESSMENTS, AND IMPACT FEES. The district may impose an ad

valorem tax, assessment, or impact fee as provided by Chapter

375, Local Government Code, to provide an improvement or service

for a project or activity the district may acquire, construct,

improve, or provide under this chapter.

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

Sec. 3806.155. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3806.159, the district

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

district to:

(1) maintain and operate the district and the improvements

constructed or acquired by the district; or

(2) provide a service.

(b) The board shall determine the tax rate.

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

Sec. 3806.156. 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 proceeding.

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 correct, add to, or delete assessments from

its assessment rolls after notice and hearing as provided by

Subchapter F, Chapter 375, Local Government Code.

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

Sec. 3806.157. PROPERTY EXEMPT FROM TAXES, IMPACT FEES, AND

ASSESSMENTS. (a) The district may not impose a tax, impact fee,

or assessment on a residential property, multiunit residential

property, or condominium.

(b) The district may not impose an impact fee or assessment on

the property, equipment, or facilities of an electric utility as

defined by Section 31.002, Utilities Code.

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

Sec. 3806.158. OBLIGATIONS; APPROVAL BY CITY OF HOUSTON. (a)

The district may issue bonds or other obligations payable in

whole or in part from ad valorem taxes, assessments, impact fees,

revenue, grants, or other money of the district, or any

combination of those sources of money, to pay for any authorized

purpose of the district.

(b) In exercising the district's borrowing power, 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.

obtain the approval of the City of Houston:

(1) for the issuance of a bond for each improvement project;

(2) of the plans and specifications of the improvement project

to be financed by the bond; and

(3) of the plans and specifications of a district improvement

project related to the use of:

(A) land owned by a municipality;

(B) an easement granted by a municipality; or

(d) If the district obtains the approval of the City of Houston

of a capital improvements budget for a specified 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.

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

Sec. 3806.159. ELECTIONS REGARDING TAXES OR BONDS. (a) In

addition to the elections required under Subchapter L, Chapter

375, Local Government Code, the district must hold an election in

the manner provided by that subchapter to obtain voter approval

before the district may:

(1) impose a maintenance tax; or

(2) issue a bond payable from ad valorem taxes or assessments.

(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.

SUBCHAPTER E. DISSOLUTION

Sec. 3806.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

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.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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