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Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3890-harris-county-improvement-district-no-16

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3890. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 16

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3890.001. DEFINITIONS. In this chapter:

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

(2) "City" means the City of Houston.

(3) "Director" means a board member.

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

16.

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

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

Sec. 3890.002. NATURE OF DISTRICT. The Harris County

Improvement District No. 16 is a special district created under

Section 59, Article XVI, Texas Constitution.

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

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

Sec. 3890.003. PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes

of Sections 52 and 52-a, Article III, and Section 59, Article

XVI, Texas Constitution, and other public purposes stated in this

chapter. By creating the district and in authorizing the City of

Houston, Harris County, and other political subdivisions to

contract with the district, the legislature has established a

program to accomplish the public purposes set out in Section

52-a, Article III, Texas Constitution.

(b) The creation of the district is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

(c) This chapter and the creation of the district may not be

interpreted to relieve the city or Harris County from providing

the level of services provided, as of the effective date of the

Act creating this chapter, to the area in the district. The

district is created to supplement and not to supplant the city

and county services provided in the area in the district.

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

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

Sec. 3890.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

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

benefit from the improvements and services to be provided by the

district under powers conferred by Sections 52 and 52-a, Article

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

powers granted under this chapter.

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

is essential to:

(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, potential employees, employees, visitors,

and consumers in the district, and of the public;

(2) provide needed funding for the district to preserve,

maintain, and enhance the economic health and vitality of the

district territory as a community and business center;

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

public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

(e) Pedestrian ways along or across a street, whether at grade

or above or below the surface, and street lighting, street

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be a

street or road improvement.

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

any private interest even though the district will benefit many

private interests as well as the public.

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

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

Sec. 3890.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake in the field

notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

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

Sec. 3890.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All

or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created under Chapter 312,

Tax Code; or

(3) an enterprise zone created under Chapter 2303, Government

Code.

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

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

Sec. 3890.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS

LAW. Except as otherwise provided by this chapter, Chapter 375,

Local Government Code, applies to the district.

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

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

Sec. 3890.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

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

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

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3890.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five voting directors who serve staggered

terms of four years, with two or three directors' terms expiring

June 1 of each odd-numbered year.

(b) The board by resolution may change the number of voting

directors on the board, 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 five or more than 15 voting directors.

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

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

Sec. 3890.052. APPOINTMENT OF DIRECTORS. The mayor and members

of the governing body of the city shall appoint voting directors

from persons recommended by the board. A person is appointed if

the majority of the members of the governing body, including the

mayor, vote to appoint that person.

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

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

For expiration of this section, see Subsection (d).

Sec. 3890.053. INITIAL VOTING DIRECTORS. (a) The initial board

consists of the following voting directors:

Pos. No. Name of Director

1 Thad Armstrong

2 Ken Melber

3 Bank Jordan

4 Alan Arnold

5 Pat Walters

(b) Of the initial directors, the terms of directors appointed

for positions 1 through 3 expire June 1, 2011, and the terms of

directors appointed for positions 4 and 5 expire June 1, 2013.

(c) Section 3890.052 does not apply to this section.

(d) This section expires September 1, 2014.

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

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

Sec. 3890.054. NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve at the pleasure of the voting

directors.

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

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

Sec. 3890.055. QUORUM. For purposes of determining the

requirements for a quorum of the board, the following are not

counted:

(1) a board position vacant for any reason, including death,

resignation, or disqualification;

(2) a director who is abstaining from participation in a vote

because of a conflict of interest; or

(3) a nonvoting director.

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

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

Sec. 3890.056. COMPENSATION. A director is entitled to receive

fees of office and reimbursement for actual expenses as provided

by Section 49.060, Water Code. Sections 375.069 and 375.070,

Local Government Code, do not apply to the board.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3890.101. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code, including the power to own,

operate, acquire, construct, lease, improve, or maintain a

project described by that chapter.

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

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

Sec. 3890.102. NONPROFIT CORPORATION. (a) The board by

resolution may authorize the creation of a nonprofit corporation

to assist and act for the district in implementing a project or

providing a service authorized by this chapter.

(b) The nonprofit corporation:

(1) has each power of and is considered for purposes of this

chapter to be a local government corporation created under

Chapter 431, Transportation Code; and

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

by this chapter.

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

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of

directors of a local government corporation created under Chapter

431, Transportation Code, except that a board member is not

required to reside in the district.

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

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

Sec. 3890.103. AGREEMENTS; GRANTS. (a) The district may make

an agreement with or accept a gift, grant, or loan from any

person.

(b) The implementation of a project is a governmental function

or service for the purposes of Chapter 791, Government Code.

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

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

Sec. 3890.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT

SERVICES. To protect the public interest, the district may

contract with a qualified person, including Harris County or the

city, for the provision of law enforcement services in the

district for a fee.

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

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

Sec. 3890.105. APPROVAL BY CITY. (a) Except as provided by

Subsection (c), the district must obtain approval from the city

for:

(1) the issuance of bonds; and

(2) plans and specifications for an improvement project related

to the use of land owned by the city, an easement granted by the

city, or a right-of-way of a street, road, or highway.

(b) The approval under Subsection (a)(1) must be by a resolution

or ordinance adopted by the governing body of the city. The

approval under Subsection (a)(2) may be any form of official

approval of the city, including approval by an administrative

process that does not involve the city's governing body.

(c) If the district obtains approval of the city's governing

body for a capital improvements plan for a period not to exceed

10 years, the district may finance the capital improvements and

issue bonds specified in the plan without further city approval.

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

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

Sec. 3890.106. 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.

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

Sec. 3890.107. 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.

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

Sec. 3890.108. NO EMINENT DOMAIN. The district may not exercise

the power of eminent domain.

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

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

Sec. 3890.109. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) In addition to the authority to annex provided by Subsection

(a), the board by resolution may annex territory if:

(1) the city's governing body by ordinance or resolution

consents to the annexation;

(2) the board holds a hearing to consider the annexation; and

(3) the board determines that the annexation is practicable and

in the best interest of the district.

(c) An election is required for an annexation under Subsection

(b) or Section 49.302, Water Code, only if before the annexation

the district held an election at which the voters approved the

imposition of an ad valorem tax or the issuance of bonds payable

wholly or partly from ad valorem taxes.

(d) The district may exclude land as provided by Subchapter J,

Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

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

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

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3890.151. PUBLIC TRANSIT SYSTEM. The district may acquire,

lease as lessor or lessee, construct, develop, own, operate, and

maintain a public transit system to serve the area in the

district.

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

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

Sec. 3890.152. 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 may be leased to or

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

district.

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

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

Constitution.

(d) The district's parking facilities serve the public purposes

of the district and are owned, used, and held for a public

purpose even if leased or operated by a private entity for a term

of years.

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

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

Sec. 3890.153. RULES. The district may adopt rules governing

the district's public transit system or public parking

facilities.

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

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

Sec. 3890.154. FINANCING OF PUBLIC PARKING FACILITIES. (a) The

district may use any of its resources, including revenue,

assessments, taxes, or grant or contract proceeds, to pay the

cost of acquiring or operating the district's public transit

system or public parking facilities.

(b) The district may:

(1) set, charge, impose, and collect fees, charges, or tolls for

the use of the district's public transit system or public parking

facilities; and

(2) issue bonds or notes to finance the cost of the district's

public transit system or public parking facilities.

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

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

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 3890.201. 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.

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

Sec. 3890.202. 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.

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

Sec. 3890.203. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this

chapter unless a written petition requesting that service or

improvement has been filed with the board.

(b) A petition filed under Subsection (a) must be signed by the

owners of a majority of the assessed value of real property in

the district subject to assessment according to the most recent

certified tax appraisal roll for Harris County.

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

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

Sec. 3890.204. METHOD OF NOTICE FOR HEARING. The district may

mail the notice required by Section 375.115(c), Local Government

Code, by certified or first class United States mail. The board

shall determine the method of mailing notice.

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

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

Sec. 3890.205. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

(b) An assessment, a reassessment, or an assessment resulting

from an addition to or correction of the assessment roll by the

district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

(1) are a first and prior lien against the property assessed;

(2) are superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes;

and

(3) are the personal liability of and a charge against the

owners of the property even if the owners are not named in the

assessment proceedings.

(c) The lien is effective from the date of the board's

resolution imposing the assessment until the date the assessment

is paid. The board may enforce the lien in the same manner that

the board may enforce an ad valorem tax lien against real

property.

(d) The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment

of any parcel of land without providing notice and holding a

hearing in the manner required for additional assessments.

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

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

Sec. 3890.206. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND

ASSESSMENTS. The district may not impose an impact fee or

assessment on the property, including the equipment,

rights-of-way, facilities, or improvements, of:

(1) an electric utility or a power generation company as defined

by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or 121.001,

Utilities Code;

(3) a telecommunications provider as defined by Section 51.002,

Utilities Code; or

(4) a person who provides to the public cable television or

advanced telecommunications services.

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

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

Sec. 3890.207. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3890.210, the district may impose an annual 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.

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

Sec. 3890.208. 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 set forth in Section 49.4645, Water

Code, does not apply to the district.

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

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

Sec. 3890.209. TAXES FOR BONDS. At the time the district issues

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

shall provide for the annual imposition of a continuing direct

annual ad valorem tax, without limit as to rate or amount, 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.

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

Sec. 3890.210. 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 any part of any facilities or improvements which may

be acquired by a district by the issuance of its bonds may be

included in one single proposition to be voted on at the election

or the bonds may be submitted in several propositions.

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

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

Sec. 3890.211. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS.

Except as provided by Section 375.263, Local Government Code, the

city may not be required to pay a bond, note, or other obligation

of the district.

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

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

Sec. 3890.212. 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.

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

Sec. 3890.213. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner provided 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.

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

SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED

PROPERTY

Sec. 3890.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR

DESIGNATED PROPERTY. The district may define areas or designate

certain property of the district to pay for improvements,

facilities, or services that primarily benefit that area or

property and do not generally and directly benefit the district

as a whole.

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

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

Sec. 3890.252. PROCEDURE FOR ELECTION. (a) Before the district

may impose an ad valorem tax or issue bonds payable from ad

valorem taxes of the area defined or property designated under

Section 3890.251, the board must call and hold an election as

provided by Section 3890.210 only in the defined area or in the

boundaries of the designated property.

(b) The board may submit the proposition to the voters on the

same ballot to be used in another election.

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

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

Sec. 3890.253. DECLARING RESULT AND ISSUING ORDER. (a) If a

majority of the voters voting at the election approve the

proposition or propositions, the board shall declare the results

and by order shall establish the defined area and describe it by

metes and bounds or designate the specific property.

(b) A court may not review the board's order except on the

ground of fraud, palpable error, or arbitrary and confiscatory

abuse of discretion.

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

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

Sec. 3890.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES

IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and

adoption of the order described in Section 3890.253, the district

may apply separately, differently, equitably, and specifically

its taxing power and lien authority to the defined area or

designated property to provide money to construct, administer,

maintain, and operate services, improvements, and facilities that

primarily benefit the defined area or designated property.

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

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

Sec. 3890.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR

DEFINED AREA OR DESIGNATED PROPERTY. After the order under

Section 3890.253 is adopted, the district may issue bonds to

provide for any land, improvements, facilities, plants,

equipment, and appliances for the defined area or designated

property.

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

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

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3890-harris-county-improvement-district-no-16

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3890. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 16

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3890.001. DEFINITIONS. In this chapter:

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

(2) "City" means the City of Houston.

(3) "Director" means a board member.

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

16.

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

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

Sec. 3890.002. NATURE OF DISTRICT. The Harris County

Improvement District No. 16 is a special district created under

Section 59, Article XVI, Texas Constitution.

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

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

Sec. 3890.003. PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes

of Sections 52 and 52-a, Article III, and Section 59, Article

XVI, Texas Constitution, and other public purposes stated in this

chapter. By creating the district and in authorizing the City of

Houston, Harris County, and other political subdivisions to

contract with the district, the legislature has established a

program to accomplish the public purposes set out in Section

52-a, Article III, Texas Constitution.

(b) The creation of the district is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

(c) This chapter and the creation of the district may not be

interpreted to relieve the city or Harris County from providing

the level of services provided, as of the effective date of the

Act creating this chapter, to the area in the district. The

district is created to supplement and not to supplant the city

and county services provided in the area in the district.

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

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

Sec. 3890.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

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

benefit from the improvements and services to be provided by the

district under powers conferred by Sections 52 and 52-a, Article

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

powers granted under this chapter.

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

is essential to:

(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, potential employees, employees, visitors,

and consumers in the district, and of the public;

(2) provide needed funding for the district to preserve,

maintain, and enhance the economic health and vitality of the

district territory as a community and business center;

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

public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

(e) Pedestrian ways along or across a street, whether at grade

or above or below the surface, and street lighting, street

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be a

street or road improvement.

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

any private interest even though the district will benefit many

private interests as well as the public.

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

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

Sec. 3890.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake in the field

notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

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

Sec. 3890.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All

or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created under Chapter 312,

Tax Code; or

(3) an enterprise zone created under Chapter 2303, Government

Code.

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

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

Sec. 3890.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS

LAW. Except as otherwise provided by this chapter, Chapter 375,

Local Government Code, applies to the district.

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

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

Sec. 3890.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

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

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

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3890.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five voting directors who serve staggered

terms of four years, with two or three directors' terms expiring

June 1 of each odd-numbered year.

(b) The board by resolution may change the number of voting

directors on the board, 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 five or more than 15 voting directors.

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

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

Sec. 3890.052. APPOINTMENT OF DIRECTORS. The mayor and members

of the governing body of the city shall appoint voting directors

from persons recommended by the board. A person is appointed if

the majority of the members of the governing body, including the

mayor, vote to appoint that person.

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

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

For expiration of this section, see Subsection (d).

Sec. 3890.053. INITIAL VOTING DIRECTORS. (a) The initial board

consists of the following voting directors:

Pos. No. Name of Director

1 Thad Armstrong

2 Ken Melber

3 Bank Jordan

4 Alan Arnold

5 Pat Walters

(b) Of the initial directors, the terms of directors appointed

for positions 1 through 3 expire June 1, 2011, and the terms of

directors appointed for positions 4 and 5 expire June 1, 2013.

(c) Section 3890.052 does not apply to this section.

(d) This section expires September 1, 2014.

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

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

Sec. 3890.054. NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve at the pleasure of the voting

directors.

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

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

Sec. 3890.055. QUORUM. For purposes of determining the

requirements for a quorum of the board, the following are not

counted:

(1) a board position vacant for any reason, including death,

resignation, or disqualification;

(2) a director who is abstaining from participation in a vote

because of a conflict of interest; or

(3) a nonvoting director.

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

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

Sec. 3890.056. COMPENSATION. A director is entitled to receive

fees of office and reimbursement for actual expenses as provided

by Section 49.060, Water Code. Sections 375.069 and 375.070,

Local Government Code, do not apply to the board.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3890.101. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code, including the power to own,

operate, acquire, construct, lease, improve, or maintain a

project described by that chapter.

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

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

Sec. 3890.102. NONPROFIT CORPORATION. (a) The board by

resolution may authorize the creation of a nonprofit corporation

to assist and act for the district in implementing a project or

providing a service authorized by this chapter.

(b) The nonprofit corporation:

(1) has each power of and is considered for purposes of this

chapter to be a local government corporation created under

Chapter 431, Transportation Code; and

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

by this chapter.

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

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of

directors of a local government corporation created under Chapter

431, Transportation Code, except that a board member is not

required to reside in the district.

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

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

Sec. 3890.103. AGREEMENTS; GRANTS. (a) The district may make

an agreement with or accept a gift, grant, or loan from any

person.

(b) The implementation of a project is a governmental function

or service for the purposes of Chapter 791, Government Code.

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

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

Sec. 3890.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT

SERVICES. To protect the public interest, the district may

contract with a qualified person, including Harris County or the

city, for the provision of law enforcement services in the

district for a fee.

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

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

Sec. 3890.105. APPROVAL BY CITY. (a) Except as provided by

Subsection (c), the district must obtain approval from the city

for:

(1) the issuance of bonds; and

(2) plans and specifications for an improvement project related

to the use of land owned by the city, an easement granted by the

city, or a right-of-way of a street, road, or highway.

(b) The approval under Subsection (a)(1) must be by a resolution

or ordinance adopted by the governing body of the city. The

approval under Subsection (a)(2) may be any form of official

approval of the city, including approval by an administrative

process that does not involve the city's governing body.

(c) If the district obtains approval of the city's governing

body for a capital improvements plan for a period not to exceed

10 years, the district may finance the capital improvements and

issue bonds specified in the plan without further city approval.

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

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

Sec. 3890.106. 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.

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

Sec. 3890.107. 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.

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

Sec. 3890.108. NO EMINENT DOMAIN. The district may not exercise

the power of eminent domain.

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

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

Sec. 3890.109. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) In addition to the authority to annex provided by Subsection

(a), the board by resolution may annex territory if:

(1) the city's governing body by ordinance or resolution

consents to the annexation;

(2) the board holds a hearing to consider the annexation; and

(3) the board determines that the annexation is practicable and

in the best interest of the district.

(c) An election is required for an annexation under Subsection

(b) or Section 49.302, Water Code, only if before the annexation

the district held an election at which the voters approved the

imposition of an ad valorem tax or the issuance of bonds payable

wholly or partly from ad valorem taxes.

(d) The district may exclude land as provided by Subchapter J,

Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

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

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

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3890.151. PUBLIC TRANSIT SYSTEM. The district may acquire,

lease as lessor or lessee, construct, develop, own, operate, and

maintain a public transit system to serve the area in the

district.

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

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

Sec. 3890.152. 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 may be leased to or

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

district.

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

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

Constitution.

(d) The district's parking facilities serve the public purposes

of the district and are owned, used, and held for a public

purpose even if leased or operated by a private entity for a term

of years.

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

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

Sec. 3890.153. RULES. The district may adopt rules governing

the district's public transit system or public parking

facilities.

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

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

Sec. 3890.154. FINANCING OF PUBLIC PARKING FACILITIES. (a) The

district may use any of its resources, including revenue,

assessments, taxes, or grant or contract proceeds, to pay the

cost of acquiring or operating the district's public transit

system or public parking facilities.

(b) The district may:

(1) set, charge, impose, and collect fees, charges, or tolls for

the use of the district's public transit system or public parking

facilities; and

(2) issue bonds or notes to finance the cost of the district's

public transit system or public parking facilities.

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

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

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 3890.201. 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.

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

Sec. 3890.202. 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.

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

Sec. 3890.203. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this

chapter unless a written petition requesting that service or

improvement has been filed with the board.

(b) A petition filed under Subsection (a) must be signed by the

owners of a majority of the assessed value of real property in

the district subject to assessment according to the most recent

certified tax appraisal roll for Harris County.

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

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

Sec. 3890.204. METHOD OF NOTICE FOR HEARING. The district may

mail the notice required by Section 375.115(c), Local Government

Code, by certified or first class United States mail. The board

shall determine the method of mailing notice.

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

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

Sec. 3890.205. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

(b) An assessment, a reassessment, or an assessment resulting

from an addition to or correction of the assessment roll by the

district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

(1) are a first and prior lien against the property assessed;

(2) are superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes;

and

(3) are the personal liability of and a charge against the

owners of the property even if the owners are not named in the

assessment proceedings.

(c) The lien is effective from the date of the board's

resolution imposing the assessment until the date the assessment

is paid. The board may enforce the lien in the same manner that

the board may enforce an ad valorem tax lien against real

property.

(d) The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment

of any parcel of land without providing notice and holding a

hearing in the manner required for additional assessments.

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

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

Sec. 3890.206. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND

ASSESSMENTS. The district may not impose an impact fee or

assessment on the property, including the equipment,

rights-of-way, facilities, or improvements, of:

(1) an electric utility or a power generation company as defined

by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or 121.001,

Utilities Code;

(3) a telecommunications provider as defined by Section 51.002,

Utilities Code; or

(4) a person who provides to the public cable television or

advanced telecommunications services.

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

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

Sec. 3890.207. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3890.210, the district may impose an annual 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.

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

Sec. 3890.208. 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 set forth in Section 49.4645, Water

Code, does not apply to the district.

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

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

Sec. 3890.209. TAXES FOR BONDS. At the time the district issues

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

shall provide for the annual imposition of a continuing direct

annual ad valorem tax, without limit as to rate or amount, 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.

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

Sec. 3890.210. 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 any part of any facilities or improvements which may

be acquired by a district by the issuance of its bonds may be

included in one single proposition to be voted on at the election

or the bonds may be submitted in several propositions.

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

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

Sec. 3890.211. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS.

Except as provided by Section 375.263, Local Government Code, the

city may not be required to pay a bond, note, or other obligation

of the district.

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

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

Sec. 3890.212. 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.

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

Sec. 3890.213. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner provided 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.

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

SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED

PROPERTY

Sec. 3890.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR

DESIGNATED PROPERTY. The district may define areas or designate

certain property of the district to pay for improvements,

facilities, or services that primarily benefit that area or

property and do not generally and directly benefit the district

as a whole.

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

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

Sec. 3890.252. PROCEDURE FOR ELECTION. (a) Before the district

may impose an ad valorem tax or issue bonds payable from ad

valorem taxes of the area defined or property designated under

Section 3890.251, the board must call and hold an election as

provided by Section 3890.210 only in the defined area or in the

boundaries of the designated property.

(b) The board may submit the proposition to the voters on the

same ballot to be used in another election.

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

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

Sec. 3890.253. DECLARING RESULT AND ISSUING ORDER. (a) If a

majority of the voters voting at the election approve the

proposition or propositions, the board shall declare the results

and by order shall establish the defined area and describe it by

metes and bounds or designate the specific property.

(b) A court may not review the board's order except on the

ground of fraud, palpable error, or arbitrary and confiscatory

abuse of discretion.

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

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

Sec. 3890.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES

IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and

adoption of the order described in Section 3890.253, the district

may apply separately, differently, equitably, and specifically

its taxing power and lien authority to the defined area or

designated property to provide money to construct, administer,

maintain, and operate services, improvements, and facilities that

primarily benefit the defined area or designated property.

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

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

Sec. 3890.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR

DEFINED AREA OR DESIGNATED PROPERTY. After the order under

Section 3890.253 is adopted, the district may issue bonds to

provide for any land, improvements, facilities, plants,

equipment, and appliances for the defined area or designated

property.

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

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


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3890-harris-county-improvement-district-no-16

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3890. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 16

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3890.001. DEFINITIONS. In this chapter:

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

(2) "City" means the City of Houston.

(3) "Director" means a board member.

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

16.

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

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

Sec. 3890.002. NATURE OF DISTRICT. The Harris County

Improvement District No. 16 is a special district created under

Section 59, Article XVI, Texas Constitution.

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

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

Sec. 3890.003. PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes

of Sections 52 and 52-a, Article III, and Section 59, Article

XVI, Texas Constitution, and other public purposes stated in this

chapter. By creating the district and in authorizing the City of

Houston, Harris County, and other political subdivisions to

contract with the district, the legislature has established a

program to accomplish the public purposes set out in Section

52-a, Article III, Texas Constitution.

(b) The creation of the district is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

(c) This chapter and the creation of the district may not be

interpreted to relieve the city or Harris County from providing

the level of services provided, as of the effective date of the

Act creating this chapter, to the area in the district. The

district is created to supplement and not to supplant the city

and county services provided in the area in the district.

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

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

Sec. 3890.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

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

benefit from the improvements and services to be provided by the

district under powers conferred by Sections 52 and 52-a, Article

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

powers granted under this chapter.

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

is essential to:

(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, potential employees, employees, visitors,

and consumers in the district, and of the public;

(2) provide needed funding for the district to preserve,

maintain, and enhance the economic health and vitality of the

district territory as a community and business center;

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

public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

(e) Pedestrian ways along or across a street, whether at grade

or above or below the surface, and street lighting, street

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be a

street or road improvement.

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

any private interest even though the district will benefit many

private interests as well as the public.

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

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

Sec. 3890.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake in the field

notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

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

Sec. 3890.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All

or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created under Chapter 312,

Tax Code; or

(3) an enterprise zone created under Chapter 2303, Government

Code.

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

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

Sec. 3890.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS

LAW. Except as otherwise provided by this chapter, Chapter 375,

Local Government Code, applies to the district.

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

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

Sec. 3890.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

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

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

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3890.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five voting directors who serve staggered

terms of four years, with two or three directors' terms expiring

June 1 of each odd-numbered year.

(b) The board by resolution may change the number of voting

directors on the board, 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 five or more than 15 voting directors.

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

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

Sec. 3890.052. APPOINTMENT OF DIRECTORS. The mayor and members

of the governing body of the city shall appoint voting directors

from persons recommended by the board. A person is appointed if

the majority of the members of the governing body, including the

mayor, vote to appoint that person.

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

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

For expiration of this section, see Subsection (d).

Sec. 3890.053. INITIAL VOTING DIRECTORS. (a) The initial board

consists of the following voting directors:

Pos. No. Name of Director

1 Thad Armstrong

2 Ken Melber

3 Bank Jordan

4 Alan Arnold

5 Pat Walters

(b) Of the initial directors, the terms of directors appointed

for positions 1 through 3 expire June 1, 2011, and the terms of

directors appointed for positions 4 and 5 expire June 1, 2013.

(c) Section 3890.052 does not apply to this section.

(d) This section expires September 1, 2014.

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

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

Sec. 3890.054. NONVOTING DIRECTORS. The board may appoint

nonvoting directors to serve at the pleasure of the voting

directors.

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

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

Sec. 3890.055. QUORUM. For purposes of determining the

requirements for a quorum of the board, the following are not

counted:

(1) a board position vacant for any reason, including death,

resignation, or disqualification;

(2) a director who is abstaining from participation in a vote

because of a conflict of interest; or

(3) a nonvoting director.

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

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

Sec. 3890.056. COMPENSATION. A director is entitled to receive

fees of office and reimbursement for actual expenses as provided

by Section 49.060, Water Code. Sections 375.069 and 375.070,

Local Government Code, do not apply to the board.

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

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

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3890.101. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code, including the power to own,

operate, acquire, construct, lease, improve, or maintain a

project described by that chapter.

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

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

Sec. 3890.102. NONPROFIT CORPORATION. (a) The board by

resolution may authorize the creation of a nonprofit corporation

to assist and act for the district in implementing a project or

providing a service authorized by this chapter.

(b) The nonprofit corporation:

(1) has each power of and is considered for purposes of this

chapter to be a local government corporation created under

Chapter 431, Transportation Code; and

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

by this chapter.

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

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of

directors of a local government corporation created under Chapter

431, Transportation Code, except that a board member is not

required to reside in the district.

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

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

Sec. 3890.103. AGREEMENTS; GRANTS. (a) The district may make

an agreement with or accept a gift, grant, or loan from any

person.

(b) The implementation of a project is a governmental function

or service for the purposes of Chapter 791, Government Code.

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

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

Sec. 3890.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT

SERVICES. To protect the public interest, the district may

contract with a qualified person, including Harris County or the

city, for the provision of law enforcement services in the

district for a fee.

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

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

Sec. 3890.105. APPROVAL BY CITY. (a) Except as provided by

Subsection (c), the district must obtain approval from the city

for:

(1) the issuance of bonds; and

(2) plans and specifications for an improvement project related

to the use of land owned by the city, an easement granted by the

city, or a right-of-way of a street, road, or highway.

(b) The approval under Subsection (a)(1) must be by a resolution

or ordinance adopted by the governing body of the city. The

approval under Subsection (a)(2) may be any form of official

approval of the city, including approval by an administrative

process that does not involve the city's governing body.

(c) If the district obtains approval of the city's governing

body for a capital improvements plan for a period not to exceed

10 years, the district may finance the capital improvements and

issue bonds specified in the plan without further city approval.

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

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

Sec. 3890.106. 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.

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

Sec. 3890.107. 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.

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

Sec. 3890.108. NO EMINENT DOMAIN. The district may not exercise

the power of eminent domain.

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

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

Sec. 3890.109. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) In addition to the authority to annex provided by Subsection

(a), the board by resolution may annex territory if:

(1) the city's governing body by ordinance or resolution

consents to the annexation;

(2) the board holds a hearing to consider the annexation; and

(3) the board determines that the annexation is practicable and

in the best interest of the district.

(c) An election is required for an annexation under Subsection

(b) or Section 49.302, Water Code, only if before the annexation

the district held an election at which the voters approved the

imposition of an ad valorem tax or the issuance of bonds payable

wholly or partly from ad valorem taxes.

(d) The district may exclude land as provided by Subchapter J,

Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

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

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

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3890.151. PUBLIC TRANSIT SYSTEM. The district may acquire,

lease as lessor or lessee, construct, develop, own, operate, and

maintain a public transit system to serve the area in the

district.

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

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

Sec. 3890.152. 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 may be leased to or

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

district.

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

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

Constitution.

(d) The district's parking facilities serve the public purposes

of the district and are owned, used, and held for a public

purpose even if leased or operated by a private entity for a term

of years.

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

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

Sec. 3890.153. RULES. The district may adopt rules governing

the district's public transit system or public parking

facilities.

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

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

Sec. 3890.154. FINANCING OF PUBLIC PARKING FACILITIES. (a) The

district may use any of its resources, including revenue,

assessments, taxes, or grant or contract proceeds, to pay the

cost of acquiring or operating the district's public transit

system or public parking facilities.

(b) The district may:

(1) set, charge, impose, and collect fees, charges, or tolls for

the use of the district's public transit system or public parking

facilities; and

(2) issue bonds or notes to finance the cost of the district's

public transit system or public parking facilities.

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

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

SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS

Sec. 3890.201. 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.

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

Sec. 3890.202. 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.

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

Sec. 3890.203. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this

chapter unless a written petition requesting that service or

improvement has been filed with the board.

(b) A petition filed under Subsection (a) must be signed by the

owners of a majority of the assessed value of real property in

the district subject to assessment according to the most recent

certified tax appraisal roll for Harris County.

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

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

Sec. 3890.204. METHOD OF NOTICE FOR HEARING. The district may

mail the notice required by Section 375.115(c), Local Government

Code, by certified or first class United States mail. The board

shall determine the method of mailing notice.

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

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

Sec. 3890.205. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

(b) An assessment, a reassessment, or an assessment resulting

from an addition to or correction of the assessment roll by the

district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

(1) are a first and prior lien against the property assessed;

(2) are superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes;

and

(3) are the personal liability of and a charge against the

owners of the property even if the owners are not named in the

assessment proceedings.

(c) The lien is effective from the date of the board's

resolution imposing the assessment until the date the assessment

is paid. The board may enforce the lien in the same manner that

the board may enforce an ad valorem tax lien against real

property.

(d) The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment

of any parcel of land without providing notice and holding a

hearing in the manner required for additional assessments.

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

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

Sec. 3890.206. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND

ASSESSMENTS. The district may not impose an impact fee or

assessment on the property, including the equipment,

rights-of-way, facilities, or improvements, of:

(1) an electric utility or a power generation company as defined

by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or 121.001,

Utilities Code;

(3) a telecommunications provider as defined by Section 51.002,

Utilities Code; or

(4) a person who provides to the public cable television or

advanced telecommunications services.

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

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

Sec. 3890.207. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3890.210, the district may impose an annual 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.

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

Sec. 3890.208. 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 set forth in Section 49.4645, Water

Code, does not apply to the district.

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

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

Sec. 3890.209. TAXES FOR BONDS. At the time the district issues

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

shall provide for the annual imposition of a continuing direct

annual ad valorem tax, without limit as to rate or amount, 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.

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

Sec. 3890.210. 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 any part of any facilities or improvements which may

be acquired by a district by the issuance of its bonds may be

included in one single proposition to be voted on at the election

or the bonds may be submitted in several propositions.

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

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

Sec. 3890.211. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS.

Except as provided by Section 375.263, Local Government Code, the

city may not be required to pay a bond, note, or other obligation

of the district.

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

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

Sec. 3890.212. 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.

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

Sec. 3890.213. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner provided 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.

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

SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED

PROPERTY

Sec. 3890.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR

DESIGNATED PROPERTY. The district may define areas or designate

certain property of the district to pay for improvements,

facilities, or services that primarily benefit that area or

property and do not generally and directly benefit the district

as a whole.

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

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

Sec. 3890.252. PROCEDURE FOR ELECTION. (a) Before the district

may impose an ad valorem tax or issue bonds payable from ad

valorem taxes of the area defined or property designated under

Section 3890.251, the board must call and hold an election as

provided by Section 3890.210 only in the defined area or in the

boundaries of the designated property.

(b) The board may submit the proposition to the voters on the

same ballot to be used in another election.

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

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

Sec. 3890.253. DECLARING RESULT AND ISSUING ORDER. (a) If a

majority of the voters voting at the election approve the

proposition or propositions, the board shall declare the results

and by order shall establish the defined area and describe it by

metes and bounds or designate the specific property.

(b) A court may not review the board's order except on the

ground of fraud, palpable error, or arbitrary and confiscatory

abuse of discretion.

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

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

Sec. 3890.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES

IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and

adoption of the order described in Section 3890.253, the district

may apply separately, differently, equitably, and specifically

its taxing power and lien authority to the defined area or

designated property to provide money to construct, administer,

maintain, and operate services, improvements, and facilities that

primarily benefit the defined area or designated property.

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

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

Sec. 3890.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR

DEFINED AREA OR DESIGNATED PROPERTY. After the order under

Section 3890.253 is adopted, the district may issue bonds to

provide for any land, improvements, facilities, plants,

equipment, and appliances for the defined area or designated

property.

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

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