CHAPTER 3892. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 21

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3892-harris-county-improvement-district-no-21

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3892. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 21

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3892.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

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

21.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 21. The

Harris County Improvement District No. 21 is a special district

created under Section 59, Article XVI, Texas Constitution.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.003. PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes

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

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

chapter. By creating the district and in authorizing Harris

County, the City of Houston, the Metropolitan Transit Authority

of Harris County, and other political subdivisions to contract

with the district, the legislature has established a program to

accomplish the public purposes set out in Section 52-a, Article

III, Texas Constitution.

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

develop, encourage, and maintain employment, commerce,

transportation, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the area of the district.

interpreted to relieve Harris County or the City of Houston from

providing the level of services provided as of the effective date

of the Act creating this chapter to the area in the district or

to release the county or the city from the obligations of each

entity to provide services to that area. The district is created

to supplement and not to supplant the county or city services

provided in the area in the district.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.004. 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.

chapter is essential to carry out a public purpose.

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

is essential to:

(1) further the public purposes of developing and diversifying

the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop or expand transportation and commerce.

(e) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, employees, visitors, and consumers in the

district, and of the public;

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

maintain, and enhance the economic health and vitality of the

area as a community and business center;

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

public by providing public art and pedestrian ways and by

landscaping and developing certain areas in the district, which

are necessary for the restoration, preservation, and enhancement

of scenic and aesthetic beauty;

(4) promote and benefit commercial development and commercial

areas in the district; and

(5) promote and develop public transportation and pedestrian

facilities and systems using new and alternative means that are

attractive, safe, and convenient, including securing expanded and

improved transportation and pedestrian facilities and systems,

to:

(A) address the problem of traffic congestion in the district,

the need to control traffic and improve pedestrian safety, and

the limited availability of money; and

(B) benefit the land and other property in the district and the

residents, employers, employees, visitors, and consumers in the

district and the public.

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

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

landscaping, and street art objects are parts of and necessary

components of a street and are considered to be a street or road

improvement.

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

any private interest even though the district will benefit many

private interests as well as the public.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2 of the Act

creating this chapter, as that territory may have been modified

under:

(1) Section 3892.251;

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

(3) other law.

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

Section 2 of the Act creating this chapter form a closure. A

mistake in the field notes or in copying the field notes in the

legislative process does not in any way affect:

(1) the district's organization, existence, and validity;

(2) the district's right to issue any type of bond, including a

refunding bond, for a purpose for which the district is created

or to pay the principal of and interest on the bond;

(3) the district's right to impose and collect an assessment or

tax; or

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

with the Texas Commission on Environmental Quality. The

commission by order may correct a mistake in the description of

the district's boundaries.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.006. 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.

1101, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3892.051. BOARD OF DIRECTORS; TERMS. (a) The district is

governed by a board of 10 voting directors appointed by a

majority of the members of the governing body, including the

mayor, of the City of Houston. Voting directors serve staggered

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

each odd-numbered year.

(b) The board by order or resolution may increase or decrease

the number of voting directors on the board, but only if a

majority of the voting directors finds that it is in the best

interest of the district to do so. The board may not:

(1) increase the number of voting directors to more than 15; or

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

Water Code, apply to the board.

(d) Subchapter D, Chapter 375, Local Government Code, applies to

the board to the extent that subchapter does not conflict with

this chapter.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD

SIZE. If the board increases the number of directors under

Section 3892.051, the board shall appoint eligible persons to

fill the new director positions and shall provide for the

staggering of terms of the new directors. On expiration of the

term of a director appointed under this section, a succeeding

director shall be appointed and qualified as provided by

Subchapter D, Chapter 375, Local Government Code. The mayor and

members of the governing body of the City of Houston shall

appoint voting directors from persons recommended by the board.

A person is appointed if a majority of the members of the

governing body, including the mayor, vote to appoint that person.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.053. NONVOTING DIRECTORS. (a) The following persons

shall serve as nonvoting directors:

(1) the directors of the following departments of the City of

Houston or a person designated by that director:

(A) parks and recreation;

(B) planning and development; and

(2) the City of Houston's chief of police.

(b) If a department described by Subsection (a) is consolidated,

renamed, or changed, the board may appoint a director of the

consolidated, renamed, or changed department as a nonvoting

director. If a department described by Subsection (a) is

abolished, the board may appoint a representative of another

department that performs duties comparable to the duties

performed by the abolished department.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.054. QUORUM. (a) Except as provided by Subsection

(b), six voting directors constitute a quorum of the board.

(b) If the board is composed of an odd number of directors, a

majority of the voting directors constitutes a quorum.

counted for the purposes of establishing a quorum of the board.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.055. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)

Except as provided by this section:

(1) a voting director may participate in all board votes and

decisions; and

(2) Chapter 171, Local Government Code, governs conflicts of

interest for directors.

(b) Section 171.004, Local Government Code, does not apply to

the district. A director who has a substantial interest in a

business or charitable entity that will receive a pecuniary

benefit from a board action shall file a one-time affidavit

declaring the interest. An additional affidavit is not required

if the director's interest changes. After the affidavit is filed

with the board secretary, the director may participate in a

discussion or vote on that action if:

(1) a majority of the directors have a similar interest in the

same entity; or

(2) all other similar business or charitable entities in the

district will receive a similar pecuniary benefit.

entity may not participate in the discussion of or vote on a

matter regarding a contract with that public entity.

(d) For purposes of this section, a director has a substantial

interest in a charitable entity in the same manner that a person

would have substantial interest in a business entity under

Section 171.002, Local Government Code.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.056. COMPENSATION OF VOTING DIRECTORS. Voting

directors may receive fees of office and reimbursement of

expenses as provided by Section 49.060, Water Code.

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

1101, Sec. 1, eff. June 19, 2009.

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

Sec. 3892.057. INITIAL VOTING DIRECTORS. (a) The initial board

consists of:

Pos. No. Name of Director

1 Brian Smith

2 Janice Sibley-Reid

3 Zinetta Burney

4 R. Quinn Meads

5 Walter Johnson

6 Anthony Robinson

7 Tariq Gladney

8 Hamilton Rucker

9 Michael Lacston

10 Courtney White

(b) Of the initial directors, the terms of directors serving in

positions 1 through 5 expire June 1, 2013, and the terms of

directors serving in positions 6 through 10 expire June 1, 2011.

directors.

(d) This section expires September 1, 2013.

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

1101, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3892.101. DISTRICT POWERS. The district may exercise the

powers given to:

(1) a district created under Chapter 375, Local Government Code;

(2) a district by Subchapters H and I, Chapter 49, Water Code;

(3) a corporation under Chapter 505, Local Government Code,

including the power to own, operate, acquire, construct, lease,

improve, and maintain the projects described by that chapter; and

(4) a housing finance corporation created under Chapter 394,

Local Government Code, to provide housing or residential

development projects in the district.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.102. 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.

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as, for the same term

as, and on the same conditions as the board of directors of a

local government corporation created under Chapter 431,

Transportation Code.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.103. 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.

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.104. ELECTIONS. (a) District elections must be held

in the manner provided by Subchapter L, Chapter 375, Local

Government Code.

(b) The board may submit multiple purposes in a single

proposition at an election.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.105. CONTRACT FOR LAW ENFORCEMENT AND SECURITY

SERVICES. The district may contract with:

(1) Harris County or the City of Houston for the county or city

to provide law enforcement and security services in the district

for a fee; or

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

supplemental security services.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.106. ANNEXATION OR EXCLUSION OF TERRITORY. The

district may annex or exclude land from the district in the

manner provided by Subchapter C, Chapter 375, Local Government

Code.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.107. APPROVAL BY CITY OF HOUSTON. (a) Except as

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

of the City of Houston's governing body for:

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

(2) the plans and specifications of the improvement project

financed by the bond; and

(3) the plans and specifications of any district improvement

project related to the use of land owned by the City of Houston,

an easement granted by the City of Houston, or a right-of-way of

a street, road, or highway.

(b) If the district obtains the approval of the City of

Houston's governing body of a capital improvements budget for a

period not to exceed five years, the district may finance the

capital improvements and issue bonds specified in the budget

without further approval from the City of Houston.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to an organization that:

(1) enjoys tax-exempt status under Section 501(c)(3), (4), or

(6), Internal Revenue Code of 1986; and

(2) performs a service or provides an activity consistent with

promoting a district purpose.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.109. ROAD POWERS. The district may exercise powers

given to:

(1) a road district created under Chapter 257, Transportation

Code; and

(2) a road utility district created under Chapter 441,

Transportation Code.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.110. AIR RIGHTS; CONSTRUCTION. The district may

acquire air rights and may construct improvements on property on

which it owns only air rights.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.111. ADDITIONAL PROPERTY RIGHTS; LEASEHOLDS. The

district may construct improvements on property on which it only

has a leasehold interest and may own undivided interests in

buildings and other improvements.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.112. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

1101, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3892.151. PUBLIC TRANSIT SYSTEM; PETITION REQUIRED. (a)

The district may acquire, lease as lessor or lessee, construct,

develop, own, operate, and maintain a public transit system to

serve the area within the boundaries of the district.

(b) The board may not act under Subsection (a) unless a written

petition requesting the action has been filed with the board.

(1) the owners of property representing a majority of the total

assessed value of the real property in the district that abuts

the right-of-way in which the public transit system is proposed

to be located; or

(2) the owners of a majority of the area of the real property in

the district that abuts the right-of-way in which the public

transit system is proposed to be located.

(d) For purposes of Subsection (c), the determination of a

majority is based on the property owners along the entire

right-of-way of the proposed transit project and may not be

calculated on a block-by-block basis.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.152. PARKING FACILITIES AUTHORIZED; OPERATION BY

PRIVATE ENTITY. (a) The district may acquire, lease as lessor

or lessee, construct, develop, own, operate, and maintain parking

facilities, including:

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

accommodations for the parking of motor vehicles; and

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

necessary for safety and convenience in the parking of vehicles.

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

or operated on behalf of the district by a private entity or an

entity other than the district. The district's parking

facilities are a program authorized by the legislature under

Section 52-a, Article III, Texas Constitution, and accomplish a

public purpose under that section even if leased or operated by a

private entity for a term of years.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.153. RULES. The district may adopt rules covering its

public transit system or its public parking facilities, except

that a rule relating to or affecting the use of the public

right-of-way or a requirement for off-street parking is subject

to all applicable municipal charter, code, or ordinance

requirements.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.154. FINANCING OF PUBLIC TRANSIT SYSTEM OR PARKING

FACILITIES. (a) The district may use any of its resources,

including revenue, assessments, taxes, and grant or contract

proceeds, to pay the cost of acquiring and operating a public

transit system or public parking facilities.

(b) The district may set and impose fees, charges, or tolls for

the use of the public transit system or the public parking

facilities and may issue bonds or notes to finance the cost of

these facilities.

for or finances the cost of acquiring or operating a public

transit system or public parking facilities with resources other

than assessments, a petition of property owners or a public

hearing is not required.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.155. PAYMENT IN LIEU OF TAXES TO OTHER TAXING UNIT.

If the district's acquisition of property for a parking facility

that is leased to or operated by a private entity results in the

removal from a taxing unit's tax rolls of real property otherwise

subject to ad valorem taxation, the district shall pay to the

taxing unit in which the property is located, on or before

January 1 of each year, as a payment in lieu of taxes, an amount

equal to the ad valorem taxes that otherwise would have been

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

taxing unit, without including the value of any improvements

constructed on the property.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.156. AGREEMENT WITH RAPID TRANSIT AUTHORITY. (a) In

this section, "authority" means a rapid transit authority created

under Chapter 451, Transportation Code.

(b) The district and an authority may agree to jointly

construct, own, operate, and maintain a transit facility or a

parking facility under the terms the authority and district

desire.

authority exchange or trade land provided that each party to the

agreement receives fair market value. The authority is not

required to offer any property that it proposes to trade to the

district for sale to the public or for sale to any abutting

property owner.

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

1101, Sec. 1, eff. June 19, 2009.

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3892.201. AUTHORITY TO IMPOSE ASSESSMENTS, AD VALOREM

TAXES, AND IMPACT FEES. The district may impose, assess, charge,

or collect an assessment, an ad valorem tax, an impact fee, or

another fee in accordance with Chapter 49, Water Code, for a

purpose specified by Chapter 375, Local Government Code, or as

needed to exercise a power or function of the district or to

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

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.202. DISBURSEMENTS AND TRANSFERS OF MONEY. The board

by resolution shall establish the number of directors' signatures

and the procedure required for a disbursement or transfer of the

district's money.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.203. ASSESSMENT IN PART OF DISTRICT. An assessment

may be imposed on only a part of the district if only that part

will benefit from the service or improvement.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.204. PETITION REQUIRED FOR ASSESSMENT AND FOR

FINANCING SERVICES AND IMPROVEMENTS. (a) The board may not

impose an assessment or finance a service or improvement project

under this chapter unless a written petition requesting the

improvement or service has been filed with the board.

(b) The petition must be signed by:

(1) the owners of a majority of the assessed value of real

property in the district subject to assessment according to the

most recent certified tax appraisal roll for Harris County; or

(2) at least 25 owners of real property in the district that

will be subject to the assessment, if more than 25 persons own

real property subject to the assessment in the district according

to the most recent certified tax appraisal roll for Harris

County.

section, signed by qualified petitioners prior to or subsequent

to the enactment of this chapter.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.205. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3892.104, the district

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

district to:

(1) administer the district;

(2) maintain and operate the district;

(3) construct or acquire improvements; or

(4) provide a service.

(b) The board shall determine the tax rate.

exempt under the Texas or United States Constitution or under the

Tax Code, is liable for the payment of ad valorem taxes imposed

by the district on the property.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.206. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter.

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

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

district, penalties and interest on an assessment or

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

fees incurred by the district:

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

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

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

and

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

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

assessment proceedings.

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.

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.207. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM

ASSESSMENT AND IMPACT FEES. The district may not impose an

impact fee or assessment on the property, including the

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

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

by Section 31.002, Utilities Code;

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

Utilities Code;

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

Utilities Code; or

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

advanced telecommunications services.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.208. USE OF ELECTRICAL OR OPTICAL LINES. (a) The

district may impose an assessment to pay the cost of:

(1) burying or removing electrical power lines, telephone lines,

cable or fiber-optic lines, or any other type of electrical or

optical line;

(2) removing poles and any elevated lines using the poles; and

(3) reconnecting the lines described by Subdivision (2) to the

buildings or other improvements to which the lines were

connected.

(b) The district may acquire, operate, or charge fees for the

use of the district conduits for:

(1) another person's:

(A) telecommunications network;

(B) fiber-optic cable; or

(2) any other type of transmission line or supporting facility.

conduit.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.209. BONDS AND OTHER OBLIGATIONS. (a) The district

may issue bonds, notes, or other obligations in accordance with

Subchapter J, Chapter 375, Local Government Code, payable wholly

or partly from assessments, impact fees, revenue, grants, or

other money of the district, or any combination of these sources

of money, to pay for any authorized district purpose.

(b) In exercising the district's power to borrow, the district

may issue a bond or other obligation in the form of a bond, note,

certificate of participation or other instrument evidencing a

proportionate interest in payments to be made by the district, or

other type of obligation.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.210. LIMITS ON PARKS AND RECREATION BONDS. Bonds

issued to finance parks and recreational facilities may not

exceed one percent of the assessed value of the real property in

the district according to the most recent certified tax appraisal

roll for Harris County.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.211. TAX AND BOND ELECTIONS. (a) The district shall

hold an election in the manner provided by Subchapter L, Chapter

375, Local Government Code, to obtain voter approval before the

district imposes a maintenance tax or issues bonds payable from

ad valorem taxes.

(b) The board may not include more than one purpose in a single

proposition at an election to impose a maintenance tax or issue

bonds payable from ad valorem taxes.

the district.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.212. POWERS OF MUNICIPAL UTILITY DISTRICT TO ESTABLISH

DEFINED AREAS AND DESIGNATED PROPERTY; TAXES; BONDS. (a) The

district has the powers of a municipal utility district under

Subchapter J, Chapter 54, Water Code, including the power to:

(1) implement a plan;

(2) issue bonds; and

(3) impose a tax in a defined area established under that

subchapter.

(b) The district may exercise the powers described by Subsection

(a) regardless of whether the district is composed of the minimum

number of acres provided by Section 54.801, Water Code.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.213. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT

OBLIGATIONS. Except as provided by Section 375.263, Local

Government Code, a municipality is not required to pay a bond,

note, or other obligation of the district.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.214. COMPETITIVE BIDDING. Section 375.221, Local

Government Code, applies to the district only for a contract that

has a value greater than $50,000.

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

1101, Sec. 1, eff. June 19, 2009.

SUBCHAPTER F. CONSOLIDATION

Sec. 3892.251. CONSOLIDATION WITH MUNICIPAL MANAGEMENT DISTRICT.

(a) The district may consolidate with one other municipal

management district that adjoins or has a boundary that is within

a two-mile radius of any boundary of the district. The board may

consolidate with one other district only if the district to be

consolidated has not issued bonds or notes secured by assessments

or ad valorem taxes or imposed taxes.

(b) To initiate consolidation, the board of a district shall

adopt a resolution proposing a consolidation and deliver a copy

of the resolution to the board of each district with which

consolidation is proposed.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.252. TERMS AND CONDITIONS FOR CONSOLIDATION. Not

later than the 30th day after districts are consolidated under

Section 3892.251, the districts shall enter into an agreement

specifying the terms and conditions for consolidation. The terms

and conditions for consolidation must include:

(1) adoption of a name for the consolidated district;

(2) the number and apportionment of directors to serve on the

board of the consolidated district;

(3) the effective date of the consolidation;

(4) an agreement on finances for the consolidated district,

including disposition of funds, property, and other assets of

each district; and

(5) an agreement on governing the districts during the

transition period, including selection of officers.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.253. NOTICE AND HEARING ON CONSOLIDATION. (a) Each

district's board shall publish notice and hold a public hearing

in its district regarding the terms and conditions for

consolidation of the districts. The board shall publish notice

at least once in a newspaper with general circulation in the

affected districts at least seven days before the hearing.

(b) After the hearing, each board by resolution must approve the

terms and conditions for consolidation by majority vote and enter

an order consolidating the districts.

containing the terms and conditions for the consolidation, the

involved districts become consolidated.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.254. GOVERNING CONSOLIDATED DISTRICTS. (a) After two

districts are consolidated, they become one district and are

governed as one district.

(b) During the period before the terms and conditions of the

agreement under Section 3892.252 take effect, the officers of

each district shall continue to act jointly as officers of the

original districts to settle the affairs of their respective

districts.

this subchapter had powers at the time the districts were

consolidated that the other district being consolidated did not

have, the consolidated district may exercise within the original

boundaries of each district only the powers that belonged to that

original district. In territory annexed into a consolidated

district, the district may exercise any of the powers of the

original districts.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.255. DEBTS OF ORIGINAL DISTRICTS. After two districts

are consolidated, the consolidated district shall protect the

debts and obligations of the original districts and shall ensure

that the debts and obligations are not impaired. If the

consolidated district has taxing authority, the debts may be paid

by taxes imposed on the land in the original districts as if they

had not consolidated or from contributions from the consolidated

district on terms stated in the consolidation agreement.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.256. ASSESSMENT AND COLLECTION OF TAXES. If the

consolidated district has taxing authority, the district shall

impose and collect taxes on all property in the district

uniformly, for maintenance and operation of the district.

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

1101, Sec. 1, eff. June 19, 2009.

Sec. 3892.257. FILING OF ORDER WITH COUNTY CLERK AND EXECUTIVE

DIRECTOR. The board shall keep in the records of the

consolidated district, recorded in the office of the county clerk

in each of the counties in the consolidated district, a

consolidation order issued by the board. The board shall file

the consolidation order with the executive director of the Texas

Commission on Environmental Quality.

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

1101, Sec. 1, eff. June 19, 2009.

SUBCHAPTER G. DISSOLUTION

Sec. 3892.301. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

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

Chapter 375, Local Government Code, except that Section 375.264,

Local Government Code, does not apply to the district. The board

may dissolve the district regardless of whether the district has

debt.

(b) If the district has debt when it is dissolved, the district

shall remain in existence solely for the purpose of discharging

its bonds or other obligations according to their terms. The

dissolution is effective when all debts have been discharged.

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

1101, Sec. 1, eff. June 19, 2009.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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