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Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3818-harris-county-improvement-district-no-1

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3818. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3818.001. DEFINITIONS. In this chapter:

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

(2) "Commission" means the Texas Commission on Environmental

Quality.

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

1.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1. A

special district known as the "Harris County Improvement District

No. 1" is a political subdivision of this state created under

Section 59, Article XVI, Texas Constitution.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 1, eff. June 19, 2009.

Sec. 3818.003. PURPOSE; DECLARATION OF INTENT. The creation of

the district is essential to accomplish the purposes of Section

52, Article III, and Section 59, Article XVI, Texas Constitution,

and other public purposes as provided by this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit. Each

improvement project or service authorized by this chapter carries

out a public purpose.

(b) All land and other property included in the district will

benefit from the works and projects that are to be accomplished

by the district under powers conferred by Section 52, Article

III, and Section 59, Article XVI, Texas Constitution, Vernon's

Texas Civil Statutes, and other powers granted under this

chapter.

(c) The creation of the district is essential to:

(1) the economic diversification of the state;

(2) the elimination of unemployment and underemployment; and

(3) the stimulation of transportation and commerce.

(d) The creation of the district is in the public interest and

will promote the health, safety, and general welfare of its

residents and the public.

(e) The present and prospective traffic congestion in the

district, the safety of pedestrians, and the limited availability

of funds require the promotion and development of public

transportation and pedestrian facilities and systems by new and

alternative means. The district will serve the public purpose of

securing expanded and improved transportation and pedestrian

facilities and systems.

(f) The district will promote the health, safety, welfare,

morals, convenience, and enjoyment of the public by landscaping

and developing certain areas in the district that are necessary

for the restoration, preservation, and enhancement of scenic and

aesthetic beauty.

(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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 1026,

Acts of the 70th Legislature, Regular Session, 1987, as that

territory may have been modified under:

(1) Section 3818.106, or its predecessor, Section 13, Chapter

1026, Acts of the 70th Legislature, Regular Session, 1987;

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

(3) other law.

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

Section 3, Chapter 1026, Acts of the 70th Legislature, Regular

Session, 1987, form a closure. A mistake made in the field notes

or in copying the field notes in the legislative process does not

affect:

(1) the organization, existence, or validity of the district;

(2) the right of the district 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 a bond;

(3) the right of the district to impose an assessment or a tax;

or

(4) the legality or operation of the district or the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.006. APPLICABILITY OF OTHER LAW. Except as otherwise

provided, Chapter 375, Local Government Code, applies to the

district.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformance with the legislative

findings and purposes stated in this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3818.051. COMPOSITION; TERMS. (a) The district is

governed by a board of 12 directors.

(b) The commission appoints the directors to positions numbered

1 through 12.

(c) Directors serve staggered four-year terms.

(d) The commission shall appoint directors from persons

recommended by the board.

(e) The board by resolution may change the number of directors

on the board, but only if the board determines that the change is

in the best interest of the district. The board may not consist

of fewer than 9 or more than 15 directors.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 2, eff. June 19, 2009.

Sec. 3818.052. QUALIFICATIONS FOR OFFICE. (a) A director must

meet the requirements provided by Section 375.063, Local

Government Code.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(1),

eff. June 19, 2009.

(c) A person who owns a partnership interest, whether general or

limited, or who has a lease with a remaining term of 30 years or

more, excluding options, is considered to be an owner of land for

purposes of this chapter.

(d) A person who qualifies to serve on the board is qualified to

serve as a director and participate in all votes pertaining to

the business of the district.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 3, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(1), eff. June 19, 2009.

Sec. 3818.054. VACANCY. The board by appointment shall fill a

vacancy on the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 4, eff. June 19, 2009.

Sec. 3818.055. REMOVAL OF DIRECTOR. The commission may remove a

director for misconduct or failure to carry out the director's

duties after a petition by a majority of the other directors.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3818.101. 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

Subchapter D, Chapter 431, Transportation Code; and

(2) may implement any project and provide any service authorized

by this chapter.

(c) The board shall appoint the board of directors of the

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as, 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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.102. AGREEMENTS; GRANTS. (a) The district may make a

contract, lease, or other agreement with, or accept a grant or

loan from, any person to carry out a purpose of this chapter on

the terms and conditions and for the period of time determined by

the board.

(b) A person may contract with the district to carry out the

purposes of this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.103. USE OF CONDUITS. (a) The district may:

(1) finance, acquire, construct, improve, operate, maintain, or

charge a fee for the use of its own conduits for fiber-optic

cable, electronic transmission lines, or other types of

transmission lines and supporting facilities; or

(2) finance, acquire, construct, improve, operate, or maintain

conference centers and supporting facilities.

(b) This section does not authorize the district to require a

person to use a conduit authorized by this section.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.104. REGULATION OF SIGNS. The board by rule may

regulate signs in the district. The board may require the

removal of a sign that does not conform to a rule adopted under

this section.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.105. EXCLUSION OF TERRITORY; HEARING. (a) At any

time, the board may on its own motion call a hearing on the

question of the exclusion of land from the district as provided

by Chapter 49, Water Code, if the exclusion is practicable, just,

or desirable.

(b) The board shall call a hearing on the exclusion of land or

other property from the district if, before the issuance of bonds

has been authorized, a property owner in the district files a

written petition with the secretary of the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.106. ANNEXATION. (a) Subject to the approval of the

governing body of the City of Houston the district may:

(1) annex territory in accordance with Subchapter J, Chapter 49,

Water Code; or

(2) annex territory located inside the boundaries of a

reinvestment zone created under Chapter 311, Tax Code, as those

boundaries existed on September 1, 2001.

(b) The district may annex territory described by Subsection

(a)(2) only if:

(1) the district holds a public hearing on the proposed

annexation and publishes notice in the district not later than

the 15th day before the date of the hearing; and

(2) a majority of the qualified voters of the territory that the

district proposes to annex voting at an election held within that

territory approve:

(A) the annexation;

(B) the assumption of the bonds, notes, obligations, taxes, and

special assessments created before the annexation of the area to

the district; and

(C) the assumption of the bonds of the district payable wholly

or partly from taxes or special assessments that have been voted

previously but not yet issued or sold and the imposition of an ad

valorem tax or special assessment on all taxable property within

the annexed area for the payment of the bonds.

(c) If the voters approve each proposition under Subsection

(b)(2), the board may adopt an order adding the annexed territory

to the district.

(d) An election under Subsection (b) must be held and notice

must be given in the territory that the district proposes to

annex in the same manner as provided for a bond election held by

the district. The district may hold an election to annex

territory on the same day as another district election.

(e) The board may:

(1) call an election to annex territory by a separate election

order or as a part of another election order;

(2) submit multiple purposes in a single proposition at an

election; or

(3) order multiple elections to annex the same territory.

(f) The district may annex defined areas of land, regardless of

whether the areas are contiguous to the district.

(g) An annexed area shall bear that area's pro rata share of all

bonds, notes, or other obligations, taxes, or special assessments

that may be owed, contracted for, or authorized by the district.

(h) The election, notice, and hearing requirements imposed by

Subsections (b)-(g) do not apply to an annexation under

Subsection (a)(1).

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.107. DATE OF ELECTIONS. An election held in the

district is not required to be held on a uniform election date

provided by Section 41.001, Election Code.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.108. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. The

district must obtain approval from the governing body of the City

of Houston and the department of planning of the City of Houston

of the plans and specifications of any improvement project that

involves the use of a right-of-way of a street, road, or highway

or the use of municipal land.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.109. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.110. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To

protect the public interest, the district may contract with a

qualified party, including Harris County, the City of Houston, or

any licensed peace officer, for the provision of law enforcement

services in the district for a fee.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

Sec. 3818.111. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

Sec. 3818.112. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district

may establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3818.151. 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) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(3),

eff. June 19, 2009.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(3), eff. June 19, 2009.

Sec. 3818.152. 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 or a system of parking facilities,

including:

(1) lots, garages, parking terminals, or other structures or

accommodations for parking motor vehicles off the streets; 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 for the district by an entity other than the district.

(c) The district's parking facilities serve a public purpose

under Section 3818.003 and are owned, used, and held for a public

purpose 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.

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.153. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The

district may adopt rules covering its public transit system and

its public parking system.

(b) Rules adopted under this section that relate to or affect

the use of the public right-of-way or a requirement for

off-street parking are subject to all applicable municipal

charter, code, and ordinance requirements.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.154. 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 or operating a public

transit system or a system of public parking facilities.

(b) The district may:

(1) set, charge, impose, and collect 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) If the district pays for or finances the cost of acquiring

and operating a public transit system or a system of public

parking facilities with resources other than assessments, a

petition of property owners or public hearing is not required,

just as a petition of property owners and public hearing on the

petition are not required for the provision of all other district

services and improvements that are not paid for or financed with

assessments. Notwithstanding this subsection, a petition is

required as provided by Section 3818.151 before the district may

construct transit improvements.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.155. PAYMENT INSTEAD OF TAXES TO OTHER TAXING UNITS.

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 instead 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.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3818.201. NOTICE AND HEARING REQUIRED. The board may

finance a service or improvement project under this chapter with

assessments after:

(1) notice of a hearing has been given as required by Section

3818.202; and

(2) the board holds a public hearing on the advisability of the

service or improvement and the proposed assessments.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 6, eff. June 19, 2009.

Sec. 3818.202. NOTICE OF HEARING. (a) Except as provided by

this section, notice of a hearing on financing improvement

projects or services shall be given as provided by Section

375.115, Local Government Code.

(b) The final publication must be made:

(1) not later than the 15th day before the date of the hearing;

and

(2) in a newspaper of general circulation in each county in

which the district is located.

(c) Written notice required by Section 375.115(c), Local

Government Code, must be made not later than the 15th day before

the date of the hearing.

(d) The district may mail the notice required by Section

375.115(c), Local Government Code, by certified or first class

United States mail. The board shall determine the method of

notice.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 7, eff. June 19, 2009.

Sec. 3818.203. HEARING PROCEDURE. (a) The board may appoint a

director, a district employee, or any other person as hearings

examiner to conduct hearings required by the board.

(b) A hearing under this subchapter shall be conducted in the

manner provided for contested cases under Chapter 2001,

Government Code.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.204. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENT PROJECTS. (a) The board may not finance a service

or improvement project under this chapter with assessments unless

a written petition requesting that service or improvement has

been filed with the board.

(b) The petition must be signed by:

(1) the owners of 50 percent of the assessed value of the

property in the district subject to assessment based on the most

recent certified county tax appraisal roll; or

(2) the owners of 50 percent or more of the surface area of the

district subject to assessment, excluding roads, streets,

highways, and utility rights-of-way, based on the most recent

certified county tax appraisal roll.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 8, eff. June 19, 2009.

Sec. 3818.205. AUTHORITY TO IMPOSE AD VALOREM TAXES,

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

valorem tax, assessment, or impact fee in accordance with 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.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(4),

eff. June 19, 2009.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 9, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(4), eff. June 19, 2009.

Sec. 3818.206. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND

IMPACT FEES. The district may not impose an assessment or impact

fee 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 cable system as defined by Section 602, Communications Act

of 1934 (47 U.S.C. Section 522), as amended.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.207. BONDS; APPROVAL BY CITY OF HOUSTON. (a) Except

as provided by Subsection (b), the district must obtain the

approval of the director of public works of the City of Houston

for the issuance of bonds for any improvement project.

(b) If the district obtains approval from the governing body of

the City of Houston 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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.209. ASSESSMENTS AND BOND LIMIT. The board may not

issue bonds or impose assessments that exceed 10 percent of the

assessed value of the property in the district based on the most

recent certified county tax appraisal roll.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.210. APPEAL OF ASSESSMENT. A property owner may

appeal the board's decision on an assessment to a district court

that has jurisdiction in the district by filing notice of the

appeal with the court not later than the 30th day after the date

of the board's final decision.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.211. PAYMENT BY EXEMPT JURISDICTIONS. Payment of

assessments by exempt jurisdictions, if any, shall be established

by contract.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.212. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.213. MONEY USED FOR IMPROVEMENTS OR SERVICES. The

district may acquire, construct, finance, operate, or maintain

any improvement or service authorized under this chapter or

Chapter 375, Local Government Code, using any money available to

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.214. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3818.217, the district may impose an operation and maintenance

tax on taxable property in the district in accordance with

Section 49.107, Water Code, for any district purpose, including

to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

(c) Section 49.107(h), Water Code, does not apply to the

district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.215. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.

(a) The district may borrow money on terms and conditions as

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from

a bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue by competitive bid or negotiated sale

bonds, notes, or other obligations payable wholly or partly from

ad valorem taxes, assessments, impact fees, revenue, contract

payments, grants, or other district money, or any combination of

those sources of money, to pay for any authorized district

purpose.

(c) The limitation on the outstanding principal amount of bonds,

notes, and other obligations provided by Section 49.4645, Water

Code, does not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.216. TAXES FOR BONDS. At the time the district issues

bonds payable wholly or partly from ad valorem taxes, the board

shall provide for the annual imposition of a continuing direct ad

valorem tax, without limit as to the rate or amount, while all or

part of the bonds are outstanding as required and in the manner

provided by Sections 54.601 and 54.602, Water Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.217. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by revenue other than ad valorem taxes.

(b) The district must hold an election in the manner provided by

Subchapter L, Chapter 375, Local Government Code, to obtain voter

approval before the district may impose an ad valorem tax or

issue bonds payable from ad valorem taxes.

(c) Section 375.243, Local Government Code, does not apply to

the district.

(d) All or part of any facilities or improvements that the

district may acquire by the issuance of district bonds may be

submitted as a single proposition or as several propositions to

be voted on at the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.218. COMPETITIVE BIDDING. Subchapter I, Chapter 49,

Water Code, applies to the district. Sections 375.221 and

375.223, Local Government Code, do not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.219. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner authorized by Chapter 312, Tax Code, an

abatement for a tax or assessment owed to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

SUBCHAPTER F. DISSOLUTION

Sec. 3818.251. APPLICABILITY OF OTHER LAW; EXCEPTION.

Subchapter M, Chapter 375, Local Government Code, applies to the

district except that in determining the percentage of surface

area under Section 375.262(2), Local Government Code, other

public areas and other property exempt from assessment under

Sections 375.161, 375.163, and 375.164 are not excluded.

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

729, Sec. 1.03, eff. April 1, 2007.

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3818-harris-county-improvement-district-no-1

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3818. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3818.001. DEFINITIONS. In this chapter:

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

(2) "Commission" means the Texas Commission on Environmental

Quality.

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

1.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1. A

special district known as the "Harris County Improvement District

No. 1" is a political subdivision of this state created under

Section 59, Article XVI, Texas Constitution.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 1, eff. June 19, 2009.

Sec. 3818.003. PURPOSE; DECLARATION OF INTENT. The creation of

the district is essential to accomplish the purposes of Section

52, Article III, and Section 59, Article XVI, Texas Constitution,

and other public purposes as provided by this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit. Each

improvement project or service authorized by this chapter carries

out a public purpose.

(b) All land and other property included in the district will

benefit from the works and projects that are to be accomplished

by the district under powers conferred by Section 52, Article

III, and Section 59, Article XVI, Texas Constitution, Vernon's

Texas Civil Statutes, and other powers granted under this

chapter.

(c) The creation of the district is essential to:

(1) the economic diversification of the state;

(2) the elimination of unemployment and underemployment; and

(3) the stimulation of transportation and commerce.

(d) The creation of the district is in the public interest and

will promote the health, safety, and general welfare of its

residents and the public.

(e) The present and prospective traffic congestion in the

district, the safety of pedestrians, and the limited availability

of funds require the promotion and development of public

transportation and pedestrian facilities and systems by new and

alternative means. The district will serve the public purpose of

securing expanded and improved transportation and pedestrian

facilities and systems.

(f) The district will promote the health, safety, welfare,

morals, convenience, and enjoyment of the public by landscaping

and developing certain areas in the district that are necessary

for the restoration, preservation, and enhancement of scenic and

aesthetic beauty.

(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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 1026,

Acts of the 70th Legislature, Regular Session, 1987, as that

territory may have been modified under:

(1) Section 3818.106, or its predecessor, Section 13, Chapter

1026, Acts of the 70th Legislature, Regular Session, 1987;

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

(3) other law.

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

Section 3, Chapter 1026, Acts of the 70th Legislature, Regular

Session, 1987, form a closure. A mistake made in the field notes

or in copying the field notes in the legislative process does not

affect:

(1) the organization, existence, or validity of the district;

(2) the right of the district 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 a bond;

(3) the right of the district to impose an assessment or a tax;

or

(4) the legality or operation of the district or the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.006. APPLICABILITY OF OTHER LAW. Except as otherwise

provided, Chapter 375, Local Government Code, applies to the

district.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformance with the legislative

findings and purposes stated in this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3818.051. COMPOSITION; TERMS. (a) The district is

governed by a board of 12 directors.

(b) The commission appoints the directors to positions numbered

1 through 12.

(c) Directors serve staggered four-year terms.

(d) The commission shall appoint directors from persons

recommended by the board.

(e) The board by resolution may change the number of directors

on the board, but only if the board determines that the change is

in the best interest of the district. The board may not consist

of fewer than 9 or more than 15 directors.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 2, eff. June 19, 2009.

Sec. 3818.052. QUALIFICATIONS FOR OFFICE. (a) A director must

meet the requirements provided by Section 375.063, Local

Government Code.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(1),

eff. June 19, 2009.

(c) A person who owns a partnership interest, whether general or

limited, or who has a lease with a remaining term of 30 years or

more, excluding options, is considered to be an owner of land for

purposes of this chapter.

(d) A person who qualifies to serve on the board is qualified to

serve as a director and participate in all votes pertaining to

the business of the district.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 3, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(1), eff. June 19, 2009.

Sec. 3818.054. VACANCY. The board by appointment shall fill a

vacancy on the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 4, eff. June 19, 2009.

Sec. 3818.055. REMOVAL OF DIRECTOR. The commission may remove a

director for misconduct or failure to carry out the director's

duties after a petition by a majority of the other directors.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3818.101. 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

Subchapter D, Chapter 431, Transportation Code; and

(2) may implement any project and provide any service authorized

by this chapter.

(c) The board shall appoint the board of directors of the

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as, 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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.102. AGREEMENTS; GRANTS. (a) The district may make a

contract, lease, or other agreement with, or accept a grant or

loan from, any person to carry out a purpose of this chapter on

the terms and conditions and for the period of time determined by

the board.

(b) A person may contract with the district to carry out the

purposes of this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.103. USE OF CONDUITS. (a) The district may:

(1) finance, acquire, construct, improve, operate, maintain, or

charge a fee for the use of its own conduits for fiber-optic

cable, electronic transmission lines, or other types of

transmission lines and supporting facilities; or

(2) finance, acquire, construct, improve, operate, or maintain

conference centers and supporting facilities.

(b) This section does not authorize the district to require a

person to use a conduit authorized by this section.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.104. REGULATION OF SIGNS. The board by rule may

regulate signs in the district. The board may require the

removal of a sign that does not conform to a rule adopted under

this section.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.105. EXCLUSION OF TERRITORY; HEARING. (a) At any

time, the board may on its own motion call a hearing on the

question of the exclusion of land from the district as provided

by Chapter 49, Water Code, if the exclusion is practicable, just,

or desirable.

(b) The board shall call a hearing on the exclusion of land or

other property from the district if, before the issuance of bonds

has been authorized, a property owner in the district files a

written petition with the secretary of the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.106. ANNEXATION. (a) Subject to the approval of the

governing body of the City of Houston the district may:

(1) annex territory in accordance with Subchapter J, Chapter 49,

Water Code; or

(2) annex territory located inside the boundaries of a

reinvestment zone created under Chapter 311, Tax Code, as those

boundaries existed on September 1, 2001.

(b) The district may annex territory described by Subsection

(a)(2) only if:

(1) the district holds a public hearing on the proposed

annexation and publishes notice in the district not later than

the 15th day before the date of the hearing; and

(2) a majority of the qualified voters of the territory that the

district proposes to annex voting at an election held within that

territory approve:

(A) the annexation;

(B) the assumption of the bonds, notes, obligations, taxes, and

special assessments created before the annexation of the area to

the district; and

(C) the assumption of the bonds of the district payable wholly

or partly from taxes or special assessments that have been voted

previously but not yet issued or sold and the imposition of an ad

valorem tax or special assessment on all taxable property within

the annexed area for the payment of the bonds.

(c) If the voters approve each proposition under Subsection

(b)(2), the board may adopt an order adding the annexed territory

to the district.

(d) An election under Subsection (b) must be held and notice

must be given in the territory that the district proposes to

annex in the same manner as provided for a bond election held by

the district. The district may hold an election to annex

territory on the same day as another district election.

(e) The board may:

(1) call an election to annex territory by a separate election

order or as a part of another election order;

(2) submit multiple purposes in a single proposition at an

election; or

(3) order multiple elections to annex the same territory.

(f) The district may annex defined areas of land, regardless of

whether the areas are contiguous to the district.

(g) An annexed area shall bear that area's pro rata share of all

bonds, notes, or other obligations, taxes, or special assessments

that may be owed, contracted for, or authorized by the district.

(h) The election, notice, and hearing requirements imposed by

Subsections (b)-(g) do not apply to an annexation under

Subsection (a)(1).

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.107. DATE OF ELECTIONS. An election held in the

district is not required to be held on a uniform election date

provided by Section 41.001, Election Code.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.108. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. The

district must obtain approval from the governing body of the City

of Houston and the department of planning of the City of Houston

of the plans and specifications of any improvement project that

involves the use of a right-of-way of a street, road, or highway

or the use of municipal land.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.109. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.110. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To

protect the public interest, the district may contract with a

qualified party, including Harris County, the City of Houston, or

any licensed peace officer, for the provision of law enforcement

services in the district for a fee.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

Sec. 3818.111. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

Sec. 3818.112. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district

may establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3818.151. 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) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(3),

eff. June 19, 2009.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(3), eff. June 19, 2009.

Sec. 3818.152. 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 or a system of parking facilities,

including:

(1) lots, garages, parking terminals, or other structures or

accommodations for parking motor vehicles off the streets; 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 for the district by an entity other than the district.

(c) The district's parking facilities serve a public purpose

under Section 3818.003 and are owned, used, and held for a public

purpose 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.

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.153. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The

district may adopt rules covering its public transit system and

its public parking system.

(b) Rules adopted under this section that relate to or affect

the use of the public right-of-way or a requirement for

off-street parking are subject to all applicable municipal

charter, code, and ordinance requirements.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.154. 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 or operating a public

transit system or a system of public parking facilities.

(b) The district may:

(1) set, charge, impose, and collect 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) If the district pays for or finances the cost of acquiring

and operating a public transit system or a system of public

parking facilities with resources other than assessments, a

petition of property owners or public hearing is not required,

just as a petition of property owners and public hearing on the

petition are not required for the provision of all other district

services and improvements that are not paid for or financed with

assessments. Notwithstanding this subsection, a petition is

required as provided by Section 3818.151 before the district may

construct transit improvements.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.155. PAYMENT INSTEAD OF TAXES TO OTHER TAXING UNITS.

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 instead 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.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3818.201. NOTICE AND HEARING REQUIRED. The board may

finance a service or improvement project under this chapter with

assessments after:

(1) notice of a hearing has been given as required by Section

3818.202; and

(2) the board holds a public hearing on the advisability of the

service or improvement and the proposed assessments.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 6, eff. June 19, 2009.

Sec. 3818.202. NOTICE OF HEARING. (a) Except as provided by

this section, notice of a hearing on financing improvement

projects or services shall be given as provided by Section

375.115, Local Government Code.

(b) The final publication must be made:

(1) not later than the 15th day before the date of the hearing;

and

(2) in a newspaper of general circulation in each county in

which the district is located.

(c) Written notice required by Section 375.115(c), Local

Government Code, must be made not later than the 15th day before

the date of the hearing.

(d) The district may mail the notice required by Section

375.115(c), Local Government Code, by certified or first class

United States mail. The board shall determine the method of

notice.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 7, eff. June 19, 2009.

Sec. 3818.203. HEARING PROCEDURE. (a) The board may appoint a

director, a district employee, or any other person as hearings

examiner to conduct hearings required by the board.

(b) A hearing under this subchapter shall be conducted in the

manner provided for contested cases under Chapter 2001,

Government Code.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.204. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENT PROJECTS. (a) The board may not finance a service

or improvement project under this chapter with assessments unless

a written petition requesting that service or improvement has

been filed with the board.

(b) The petition must be signed by:

(1) the owners of 50 percent of the assessed value of the

property in the district subject to assessment based on the most

recent certified county tax appraisal roll; or

(2) the owners of 50 percent or more of the surface area of the

district subject to assessment, excluding roads, streets,

highways, and utility rights-of-way, based on the most recent

certified county tax appraisal roll.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 8, eff. June 19, 2009.

Sec. 3818.205. AUTHORITY TO IMPOSE AD VALOREM TAXES,

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

valorem tax, assessment, or impact fee in accordance with 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.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(4),

eff. June 19, 2009.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 9, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(4), eff. June 19, 2009.

Sec. 3818.206. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND

IMPACT FEES. The district may not impose an assessment or impact

fee 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 cable system as defined by Section 602, Communications Act

of 1934 (47 U.S.C. Section 522), as amended.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.207. BONDS; APPROVAL BY CITY OF HOUSTON. (a) Except

as provided by Subsection (b), the district must obtain the

approval of the director of public works of the City of Houston

for the issuance of bonds for any improvement project.

(b) If the district obtains approval from the governing body of

the City of Houston 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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.209. ASSESSMENTS AND BOND LIMIT. The board may not

issue bonds or impose assessments that exceed 10 percent of the

assessed value of the property in the district based on the most

recent certified county tax appraisal roll.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.210. APPEAL OF ASSESSMENT. A property owner may

appeal the board's decision on an assessment to a district court

that has jurisdiction in the district by filing notice of the

appeal with the court not later than the 30th day after the date

of the board's final decision.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.211. PAYMENT BY EXEMPT JURISDICTIONS. Payment of

assessments by exempt jurisdictions, if any, shall be established

by contract.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.212. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.213. MONEY USED FOR IMPROVEMENTS OR SERVICES. The

district may acquire, construct, finance, operate, or maintain

any improvement or service authorized under this chapter or

Chapter 375, Local Government Code, using any money available to

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.214. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3818.217, the district may impose an operation and maintenance

tax on taxable property in the district in accordance with

Section 49.107, Water Code, for any district purpose, including

to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

(c) Section 49.107(h), Water Code, does not apply to the

district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.215. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.

(a) The district may borrow money on terms and conditions as

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from

a bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue by competitive bid or negotiated sale

bonds, notes, or other obligations payable wholly or partly from

ad valorem taxes, assessments, impact fees, revenue, contract

payments, grants, or other district money, or any combination of

those sources of money, to pay for any authorized district

purpose.

(c) The limitation on the outstanding principal amount of bonds,

notes, and other obligations provided by Section 49.4645, Water

Code, does not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.216. TAXES FOR BONDS. At the time the district issues

bonds payable wholly or partly from ad valorem taxes, the board

shall provide for the annual imposition of a continuing direct ad

valorem tax, without limit as to the rate or amount, while all or

part of the bonds are outstanding as required and in the manner

provided by Sections 54.601 and 54.602, Water Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.217. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by revenue other than ad valorem taxes.

(b) The district must hold an election in the manner provided by

Subchapter L, Chapter 375, Local Government Code, to obtain voter

approval before the district may impose an ad valorem tax or

issue bonds payable from ad valorem taxes.

(c) Section 375.243, Local Government Code, does not apply to

the district.

(d) All or part of any facilities or improvements that the

district may acquire by the issuance of district bonds may be

submitted as a single proposition or as several propositions to

be voted on at the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.218. COMPETITIVE BIDDING. Subchapter I, Chapter 49,

Water Code, applies to the district. Sections 375.221 and

375.223, Local Government Code, do not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.219. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner authorized by Chapter 312, Tax Code, an

abatement for a tax or assessment owed to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

SUBCHAPTER F. DISSOLUTION

Sec. 3818.251. APPLICABILITY OF OTHER LAW; EXCEPTION.

Subchapter M, Chapter 375, Local Government Code, applies to the

district except that in determining the percentage of surface

area under Section 375.262(2), Local Government Code, other

public areas and other property exempt from assessment under

Sections 375.161, 375.163, and 375.164 are not excluded.

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

729, Sec. 1.03, eff. April 1, 2007.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3818-harris-county-improvement-district-no-1

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3818. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3818.001. DEFINITIONS. In this chapter:

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

(2) "Commission" means the Texas Commission on Environmental

Quality.

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

1.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1. A

special district known as the "Harris County Improvement District

No. 1" is a political subdivision of this state created under

Section 59, Article XVI, Texas Constitution.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 1, eff. June 19, 2009.

Sec. 3818.003. PURPOSE; DECLARATION OF INTENT. The creation of

the district is essential to accomplish the purposes of Section

52, Article III, and Section 59, Article XVI, Texas Constitution,

and other public purposes as provided by this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit. Each

improvement project or service authorized by this chapter carries

out a public purpose.

(b) All land and other property included in the district will

benefit from the works and projects that are to be accomplished

by the district under powers conferred by Section 52, Article

III, and Section 59, Article XVI, Texas Constitution, Vernon's

Texas Civil Statutes, and other powers granted under this

chapter.

(c) The creation of the district is essential to:

(1) the economic diversification of the state;

(2) the elimination of unemployment and underemployment; and

(3) the stimulation of transportation and commerce.

(d) The creation of the district is in the public interest and

will promote the health, safety, and general welfare of its

residents and the public.

(e) The present and prospective traffic congestion in the

district, the safety of pedestrians, and the limited availability

of funds require the promotion and development of public

transportation and pedestrian facilities and systems by new and

alternative means. The district will serve the public purpose of

securing expanded and improved transportation and pedestrian

facilities and systems.

(f) The district will promote the health, safety, welfare,

morals, convenience, and enjoyment of the public by landscaping

and developing certain areas in the district that are necessary

for the restoration, preservation, and enhancement of scenic and

aesthetic beauty.

(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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 3, Chapter 1026,

Acts of the 70th Legislature, Regular Session, 1987, as that

territory may have been modified under:

(1) Section 3818.106, or its predecessor, Section 13, Chapter

1026, Acts of the 70th Legislature, Regular Session, 1987;

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

(3) other law.

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

Section 3, Chapter 1026, Acts of the 70th Legislature, Regular

Session, 1987, form a closure. A mistake made in the field notes

or in copying the field notes in the legislative process does not

affect:

(1) the organization, existence, or validity of the district;

(2) the right of the district 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 a bond;

(3) the right of the district to impose an assessment or a tax;

or

(4) the legality or operation of the district or the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.006. APPLICABILITY OF OTHER LAW. Except as otherwise

provided, Chapter 375, Local Government Code, applies to the

district.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformance with the legislative

findings and purposes stated in this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3818.051. COMPOSITION; TERMS. (a) The district is

governed by a board of 12 directors.

(b) The commission appoints the directors to positions numbered

1 through 12.

(c) Directors serve staggered four-year terms.

(d) The commission shall appoint directors from persons

recommended by the board.

(e) The board by resolution may change the number of directors

on the board, but only if the board determines that the change is

in the best interest of the district. The board may not consist

of fewer than 9 or more than 15 directors.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 2, eff. June 19, 2009.

Sec. 3818.052. QUALIFICATIONS FOR OFFICE. (a) A director must

meet the requirements provided by Section 375.063, Local

Government Code.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(1),

eff. June 19, 2009.

(c) A person who owns a partnership interest, whether general or

limited, or who has a lease with a remaining term of 30 years or

more, excluding options, is considered to be an owner of land for

purposes of this chapter.

(d) A person who qualifies to serve on the board is qualified to

serve as a director and participate in all votes pertaining to

the business of the district.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 3, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(1), eff. June 19, 2009.

Sec. 3818.054. VACANCY. The board by appointment shall fill a

vacancy on the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 4, eff. June 19, 2009.

Sec. 3818.055. REMOVAL OF DIRECTOR. The commission may remove a

director for misconduct or failure to carry out the director's

duties after a petition by a majority of the other directors.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3818.101. 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

Subchapter D, Chapter 431, Transportation Code; and

(2) may implement any project and provide any service authorized

by this chapter.

(c) The board shall appoint the board of directors of the

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as, 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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.102. AGREEMENTS; GRANTS. (a) The district may make a

contract, lease, or other agreement with, or accept a grant or

loan from, any person to carry out a purpose of this chapter on

the terms and conditions and for the period of time determined by

the board.

(b) A person may contract with the district to carry out the

purposes of this chapter.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.103. USE OF CONDUITS. (a) The district may:

(1) finance, acquire, construct, improve, operate, maintain, or

charge a fee for the use of its own conduits for fiber-optic

cable, electronic transmission lines, or other types of

transmission lines and supporting facilities; or

(2) finance, acquire, construct, improve, operate, or maintain

conference centers and supporting facilities.

(b) This section does not authorize the district to require a

person to use a conduit authorized by this section.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.104. REGULATION OF SIGNS. The board by rule may

regulate signs in the district. The board may require the

removal of a sign that does not conform to a rule adopted under

this section.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.105. EXCLUSION OF TERRITORY; HEARING. (a) At any

time, the board may on its own motion call a hearing on the

question of the exclusion of land from the district as provided

by Chapter 49, Water Code, if the exclusion is practicable, just,

or desirable.

(b) The board shall call a hearing on the exclusion of land or

other property from the district if, before the issuance of bonds

has been authorized, a property owner in the district files a

written petition with the secretary of the board.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.106. ANNEXATION. (a) Subject to the approval of the

governing body of the City of Houston the district may:

(1) annex territory in accordance with Subchapter J, Chapter 49,

Water Code; or

(2) annex territory located inside the boundaries of a

reinvestment zone created under Chapter 311, Tax Code, as those

boundaries existed on September 1, 2001.

(b) The district may annex territory described by Subsection

(a)(2) only if:

(1) the district holds a public hearing on the proposed

annexation and publishes notice in the district not later than

the 15th day before the date of the hearing; and

(2) a majority of the qualified voters of the territory that the

district proposes to annex voting at an election held within that

territory approve:

(A) the annexation;

(B) the assumption of the bonds, notes, obligations, taxes, and

special assessments created before the annexation of the area to

the district; and

(C) the assumption of the bonds of the district payable wholly

or partly from taxes or special assessments that have been voted

previously but not yet issued or sold and the imposition of an ad

valorem tax or special assessment on all taxable property within

the annexed area for the payment of the bonds.

(c) If the voters approve each proposition under Subsection

(b)(2), the board may adopt an order adding the annexed territory

to the district.

(d) An election under Subsection (b) must be held and notice

must be given in the territory that the district proposes to

annex in the same manner as provided for a bond election held by

the district. The district may hold an election to annex

territory on the same day as another district election.

(e) The board may:

(1) call an election to annex territory by a separate election

order or as a part of another election order;

(2) submit multiple purposes in a single proposition at an

election; or

(3) order multiple elections to annex the same territory.

(f) The district may annex defined areas of land, regardless of

whether the areas are contiguous to the district.

(g) An annexed area shall bear that area's pro rata share of all

bonds, notes, or other obligations, taxes, or special assessments

that may be owed, contracted for, or authorized by the district.

(h) The election, notice, and hearing requirements imposed by

Subsections (b)-(g) do not apply to an annexation under

Subsection (a)(1).

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.107. DATE OF ELECTIONS. An election held in the

district is not required to be held on a uniform election date

provided by Section 41.001, Election Code.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.108. APPROVAL OF CERTAIN IMPROVEMENT PROJECTS. The

district must obtain approval from the governing body of the City

of Houston and the department of planning of the City of Houston

of the plans and specifications of any improvement project that

involves the use of a right-of-way of a street, road, or highway

or the use of municipal land.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.109. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.110. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To

protect the public interest, the district may contract with a

qualified party, including Harris County, the City of Houston, or

any licensed peace officer, for the provision of law enforcement

services in the district for a fee.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

Sec. 3818.111. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

Sec. 3818.112. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district

may establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 5, eff. June 19, 2009.

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3818.151. 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) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(3),

eff. June 19, 2009.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(3), eff. June 19, 2009.

Sec. 3818.152. 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 or a system of parking facilities,

including:

(1) lots, garages, parking terminals, or other structures or

accommodations for parking motor vehicles off the streets; 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 for the district by an entity other than the district.

(c) The district's parking facilities serve a public purpose

under Section 3818.003 and are owned, used, and held for a public

purpose 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.

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.153. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The

district may adopt rules covering its public transit system and

its public parking system.

(b) Rules adopted under this section that relate to or affect

the use of the public right-of-way or a requirement for

off-street parking are subject to all applicable municipal

charter, code, and ordinance requirements.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.154. 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 or operating a public

transit system or a system of public parking facilities.

(b) The district may:

(1) set, charge, impose, and collect 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) If the district pays for or finances the cost of acquiring

and operating a public transit system or a system of public

parking facilities with resources other than assessments, a

petition of property owners or public hearing is not required,

just as a petition of property owners and public hearing on the

petition are not required for the provision of all other district

services and improvements that are not paid for or financed with

assessments. Notwithstanding this subsection, a petition is

required as provided by Section 3818.151 before the district may

construct transit improvements.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.155. PAYMENT INSTEAD OF TAXES TO OTHER TAXING UNITS.

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 instead 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.

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

729, Sec. 1.03, eff. April 1, 2007.

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3818.201. NOTICE AND HEARING REQUIRED. The board may

finance a service or improvement project under this chapter with

assessments after:

(1) notice of a hearing has been given as required by Section

3818.202; and

(2) the board holds a public hearing on the advisability of the

service or improvement and the proposed assessments.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 6, eff. June 19, 2009.

Sec. 3818.202. NOTICE OF HEARING. (a) Except as provided by

this section, notice of a hearing on financing improvement

projects or services shall be given as provided by Section

375.115, Local Government Code.

(b) The final publication must be made:

(1) not later than the 15th day before the date of the hearing;

and

(2) in a newspaper of general circulation in each county in

which the district is located.

(c) Written notice required by Section 375.115(c), Local

Government Code, must be made not later than the 15th day before

the date of the hearing.

(d) The district may mail the notice required by Section

375.115(c), Local Government Code, by certified or first class

United States mail. The board shall determine the method of

notice.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 7, eff. June 19, 2009.

Sec. 3818.203. HEARING PROCEDURE. (a) The board may appoint a

director, a district employee, or any other person as hearings

examiner to conduct hearings required by the board.

(b) A hearing under this subchapter shall be conducted in the

manner provided for contested cases under Chapter 2001,

Government Code.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.204. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENT PROJECTS. (a) The board may not finance a service

or improvement project under this chapter with assessments unless

a written petition requesting that service or improvement has

been filed with the board.

(b) The petition must be signed by:

(1) the owners of 50 percent of the assessed value of the

property in the district subject to assessment based on the most

recent certified county tax appraisal roll; or

(2) the owners of 50 percent or more of the surface area of the

district subject to assessment, excluding roads, streets,

highways, and utility rights-of-way, based on the most recent

certified county tax appraisal roll.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 8, eff. June 19, 2009.

Sec. 3818.205. AUTHORITY TO IMPOSE AD VALOREM TAXES,

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

valorem tax, assessment, or impact fee in accordance with 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.

(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 889, Sec. 11(4),

eff. June 19, 2009.

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

729, Sec. 1.03, eff. April 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 9, eff. June 19, 2009.

Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 11(4), eff. June 19, 2009.

Sec. 3818.206. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND

IMPACT FEES. The district may not impose an assessment or impact

fee 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 cable system as defined by Section 602, Communications Act

of 1934 (47 U.S.C. Section 522), as amended.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.207. BONDS; APPROVAL BY CITY OF HOUSTON. (a) Except

as provided by Subsection (b), the district must obtain the

approval of the director of public works of the City of Houston

for the issuance of bonds for any improvement project.

(b) If the district obtains approval from the governing body of

the City of Houston 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.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.209. ASSESSMENTS AND BOND LIMIT. The board may not

issue bonds or impose assessments that exceed 10 percent of the

assessed value of the property in the district based on the most

recent certified county tax appraisal roll.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.210. APPEAL OF ASSESSMENT. A property owner may

appeal the board's decision on an assessment to a district court

that has jurisdiction in the district by filing notice of the

appeal with the court not later than the 30th day after the date

of the board's final decision.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.211. PAYMENT BY EXEMPT JURISDICTIONS. Payment of

assessments by exempt jurisdictions, if any, shall be established

by contract.

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

729, Sec. 1.03, eff. April 1, 2007.

Sec. 3818.212. 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.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.213. MONEY USED FOR IMPROVEMENTS OR SERVICES. The

district may acquire, construct, finance, operate, or maintain

any improvement or service authorized under this chapter or

Chapter 375, Local Government Code, using any money available to

the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.214. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3818.217, the district may impose an operation and maintenance

tax on taxable property in the district in accordance with

Section 49.107, Water Code, for any district purpose, including

to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

(c) Section 49.107(h), Water Code, does not apply to the

district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.215. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.

(a) The district may borrow money on terms and conditions as

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from

a bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue by competitive bid or negotiated sale

bonds, notes, or other obligations payable wholly or partly from

ad valorem taxes, assessments, impact fees, revenue, contract

payments, grants, or other district money, or any combination of

those sources of money, to pay for any authorized district

purpose.

(c) The limitation on the outstanding principal amount of bonds,

notes, and other obligations provided by Section 49.4645, Water

Code, does not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.216. TAXES FOR BONDS. At the time the district issues

bonds payable wholly or partly from ad valorem taxes, the board

shall provide for the annual imposition of a continuing direct ad

valorem tax, without limit as to the rate or amount, while all or

part of the bonds are outstanding as required and in the manner

provided by Sections 54.601 and 54.602, Water Code.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.217. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by revenue other than ad valorem taxes.

(b) The district must hold an election in the manner provided by

Subchapter L, Chapter 375, Local Government Code, to obtain voter

approval before the district may impose an ad valorem tax or

issue bonds payable from ad valorem taxes.

(c) Section 375.243, Local Government Code, does not apply to

the district.

(d) All or part of any facilities or improvements that the

district may acquire by the issuance of district bonds may be

submitted as a single proposition or as several propositions to

be voted on at the election.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.218. COMPETITIVE BIDDING. Subchapter I, Chapter 49,

Water Code, applies to the district. Sections 375.221 and

375.223, Local Government Code, do not apply to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

Sec. 3818.219. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner authorized by Chapter 312, Tax Code, an

abatement for a tax or assessment owed to the district.

Added by Acts 2009, 81st Leg., R.S., Ch.

889, Sec. 10, eff. June 19, 2009.

SUBCHAPTER F. DISSOLUTION

Sec. 3818.251. APPLICABILITY OF OTHER LAW; EXCEPTION.

Subchapter M, Chapter 375, Local Government Code, applies to the

district except that in determining the percentage of surface

area under Section 375.262(2), Local Government Code, other

public areas and other property exempt from assessment under

Sections 375.161, 375.163, and 375.164 are not excluded.

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

729, Sec. 1.03, eff. April 1, 2007.