2005 Texas Special Districts Code CHAPTER 3818. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1

SPECIAL DISTRICT LOCAL LAWS CODE

CHAPTER 3818. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS


	§ 3818.001. DEFINITIONS.  In this chapter:                                  
		(1)  "Board" means the board of directors of the 
district.                  
		(2)  "Commission" means the Texas Commission on 
Environmental Quality.      
		(3)  "District" means the Harris County Improvement 
District No. 1.         

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1.  A 
special district known as the "Harris County Improvement District 
No. 1" is a political subdivision of this state.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.003. PURPOSE;  DECLARATION OF INTENT.  The 
creation of the district is essential to accomplish the purposes of 
Section 52, Article III, and Section 59, Article XVI, Texas 
Constitution, and other public purposes as provided by this 
chapter.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a) 
The district is created to serve a public use and benefit.  Each 
improvement project or service authorized by this chapter carries 
out a public purpose.
	(b)  All land and other property included in the district 
will benefit from the works and projects that are to be accomplished 
by the district under powers conferred by Section 52, Article III, 
and Section 59, Article XVI, Texas Constitution, Vernon's Texas 
Civil Statutes, and other powers granted under this chapter.
	(c)  The creation of the district is essential to:                             
		(1)  the economic diversification of the state;                               
		(2)  the elimination of unemployment and 
underemployment;  and              
		(3)  the stimulation of transportation and commerce.                          
	(d)  The creation of the district is in the public interest 
and will promote the health, safety, and general welfare of its 
residents and the public.
	(e)  The present and prospective traffic congestion in the 
district, the safety of pedestrians, and the limited availability 
of funds require the promotion and development of public 
transportation and pedestrian facilities and systems by new and 
alternative means.  The district will serve the public purpose of 
securing expanded and improved transportation and pedestrian 
facilities and systems.
	(f)  The district will promote the health, safety, welfare, 
morals, convenience, and enjoyment of the public by landscaping and 
developing certain areas in the district that are necessary for the 
restoration, preservation, and enhancement of scenic and aesthetic 
beauty.
	(g)  The district will not act as the agent or 
instrumentality of any private interest even though the district 
will benefit many private interests, as well as the public.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.005. DISTRICT TERRITORY.  (a) The district is 
composed of the territory described by Section 3, Chapter 1026, 
Acts of the 70th Legislature, Regular Session, 1987, as that 
territory may have been modified under:
		(1)  Section 3818.106, or its predecessor, Section 13, 
Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987;
		(2)  Subchapter J, Chapter 49, Water Code;  or                                
		(3)  other law.                                                               
	(b)  The boundaries and field notes of the district contained 
in Section 3, Chapter 1026, Acts of the 70th Legislature, Regular 
Session, 1987, form a closure.  A mistake made in the field notes or 
in copying the field notes in the legislative process does not 
affect:
		(1)  the organization, existence, or validity of the 
district;              
		(2)  the right of the district to issue any type of 
bond, including a refunding bond, for a purpose for which the 
district is created or to pay the principal of and interest on a 
bond;
		(3)  the right of the district to impose an assessment 
or a tax;  or        
		(4)  the legality or operation of the district or the 
board.                

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.006. APPLICABILITY OF OTHER LAW.  Except as 
otherwise provided, Chapter 375, Local Government Code, applies to 
the district.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.007. LIBERAL CONSTRUCTION OF CHAPTER.  This 
chapter shall be liberally construed in conformance with the 
legislative findings and purposes stated in this chapter.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      

SUBCHAPTER B. BOARD OF DIRECTORS


	§ 3818.051. COMPOSITION;  TERMS.  (a) The district is 
governed by a board of 12 directors.
	(b)  The commission appoints the directors to positions 
numbered 1 through 12.
	(c)  Directors serve staggered four-year terms.                                
	(d)  The commission shall attempt to appoint directors to 
represent all geographical areas and business interests in the 
district and shall solicit input from the existing board concerning 
persons who would be eligible to represent the various interests in 
the district.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.052. QUALIFICATIONS FOR OFFICE.  (a) Except as 
provided by Subsection (b), a director must meet the requirements 
provided by Section 375.063, Local Government Code.
	(b)  A tenant of a person who qualifies under Sections 
375.063(2)-(4), Local Government Code, is not qualified to serve as 
a director under this chapter, except that the tenant is qualified 
to serve as a director in position 8 or 12 if the tenant:
		(1)  leases property in the district for an initial 
term of 10 years or more;  or
		(2)  is an employee, stockholder, or owner of a 
beneficial interest in an entity having a lease that qualifies 
under Subdivision (1).
	(c)  A person who owns a partnership interest, whether 
general or limited, or who has a lease with a remaining term of 30 
years or more, excluding options, is considered to be an owner of 
land for purposes of this chapter.
	(d)  A person who qualifies to serve on the board under 
Subsection (a) or (b) is qualified to serve as a director and 
participate in all votes pertaining to the business of the 
district.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.053. QUORUM;  CONCURRENCE OF DIRECTORS.  (a) Seven 
directors constitute a quorum of the board for district purposes.
	(b)  Except as provided by Subsection (c), the concurrence of 
six directors is required for any official action of the district.
	(c)  The concurrence of eight directors is required to:                        
		(1)  authorize the issuance of bonds;  or                                     
		(2)  impose an assessment or tax.                                             

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.054. VACANCY.  The commission by appointment shall 
fill a vacancy on the board.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.055. REMOVAL OF DIRECTOR.  The commission may 
remove a director for misconduct or failure to carry out the 
director's duties after a petition by a majority of the other 
directors.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      

SUBCHAPTER C. POWERS AND DUTIES


	§ 3818.101. NONPROFIT CORPORATION.  (a) The board by 
resolution may authorize the creation of a nonprofit corporation to 
assist and act for the district in implementing a project or 
providing a service authorized by this chapter.
	(b)  The nonprofit corporation:                                                
		(1)  has each power of and is considered for purposes of 
this chapter to be a local government corporation created under 
Subchapter D, Chapter 431, Transportation Code;  and
		(2)  may implement any project and provide any service 
authorized by this chapter.
	(c)  The board shall appoint the board of directors of the 
nonprofit corporation.  The board of directors of the nonprofit 
corporation shall serve in the same manner as, for the same term as, 
and on the conditions of the board of directors of a local 
government corporation created under Chapter 431, Transportation 
Code.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.102. AGREEMENTS;  GRANTS.  (a) The district may 
make a contract, lease, or other agreement with, or accept a grant 
or loan from, any person to carry out a purpose of this chapter on 
the terms and conditions and for the period of time determined by 
the board.
	(b)  A person may contract with the district to carry out the 
purposes of this chapter.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.103. USE OF CONDUITS.  (a) The district may:                         
		(1)  finance, acquire, construct, improve, operate, 
maintain, or charge a fee for the use of its own conduits for 
fiber-optic cable, electronic transmission lines, or other types of 
transmission lines and supporting facilities;  or
		(2)  finance, acquire, construct, improve, operate, or 
maintain conference centers and supporting facilities.
	(b)  This section does not authorize the district to require 
a person to use a conduit authorized by this section.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.104. REGULATION OF SIGNS.  The board by rule may 
regulate signs in the district.  The board may require the removal 
of a sign that does not conform to a rule adopted under this 
section.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.105. EXCLUSION OF TERRITORY;  HEARING.  (a) At any 
time, the board may on its own motion call a hearing on the question 
of the exclusion of land from the district as provided by Chapter 
49, Water Code, if the exclusion is practicable, just, or 
desirable.
	(b)  The board shall call a hearing on the exclusion of land 
or other property from the district if, before the issuance of bonds 
has been authorized, a property owner in the district files a 
written petition with the secretary of the board.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.106. ANNEXATION.  (a) Subject to the approval of 
the governing body of the City of Houston the district may:
		(1)  annex territory in accordance with Subchapter J, 
Chapter 49, Water Code;  or
		(2)  annex territory located inside the boundaries of a 
reinvestment zone created under Chapter 311, Tax Code, as those 
boundaries existed on September 1, 2001.
	(b)  The district may annex territory described by 
Subsection (a)(2) only if:
		(1)  the district holds a public hearing on the 
proposed annexation and publishes notice in the district not later 
than the 15th day before the date of the hearing;  and
		(2)  a majority of the qualified voters of the 
territory that the district proposes to annex voting at an election 
held within that territory approve:
			(A)  the annexation;                                                         
			(B)  the assumption of the bonds, notes, 
obligations, taxes, and special assessments created before the 
annexation of the area to the district;  and
			(C)  the assumption of the bonds of the district 
payable wholly or partly from taxes or special assessments that 
have been voted previously but not yet issued or sold and the 
imposition of an ad valorem tax or special assessment on all taxable 
property within the annexed area for the payment of the bonds.
	(c)  If the voters approve each proposition under Subsection 
(b)(2), the board may adopt an order adding the annexed territory to 
the district.
	(d)  An election under Subsection (b) must be held and notice 
must be given in the territory that the district proposes to annex 
in the same manner as provided for a bond election held by the 
district.  The district may hold an election to annex territory on 
the same day as another district election.
	(e)  The board may:                                                            
		(1)  call an election to annex territory by a separate 
election order or as a part of another election order;
		(2)  submit multiple purposes in a single proposition 
at an election;  or   
		(3)  order multiple elections to annex the same 
territory.                  
	(f)  The district may annex defined areas of land, regardless 
of whether the areas are contiguous to the district.
	(g)  An annexed area shall bear that area's pro rata share of 
all bonds, notes, or other obligations, taxes, or special 
assessments that may be owed, contracted for, or authorized by the 
district.
	(h)  The election, notice, and hearing requirements imposed 
by Subsections (b)-(g) do not apply to an annexation under 
Subsection (a)(1).

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.107. DATE OF ELECTIONS.  An election held in the 
district is not required to be held on a uniform election date 
provided by Section 41.001, Election Code.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.108. APPROVAL OF CERTAIN IMPROVEMENT 
PROJECTS.  The district must obtain approval from the governing 
body of the City of Houston and the department of planning of the 
City of Houston of the plans and specifications of any improvement 
project that involves the use of a right-of-way of a street, road, 
or highway or the use of municipal land.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.109. NO EMINENT DOMAIN POWER.  The district may 
not exercise the power of eminent domain.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES


	§ 3818.151. PUBLIC TRANSIT SYSTEM;  PETITION 
REQUIRED.  (a) The district may acquire, lease as lessor or lessee, 
construct, develop, own, operate, and maintain a public transit 
system to serve the area within the boundaries of the district.
	(b)  The district may acquire, construct, or develop a mass 
transit improvement or facility under Subsection (a) only if a 
petition is filed with the district that requests the improvement 
or facility.  The petition must be executed by owners of property 
representing a majority in value or a majority in square footage of 
the real property in the district that abuts the right-of-way in 
which the improvement or facility is proposed to be located.  The 
determination of a majority is based on the property owners along 
the entire right-of-way of the proposed transit project and may not 
be computed on a block-by-block basis.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.152. PARKING FACILITIES AUTHORIZED;  OPERATION BY 
PRIVATE ENTITY;  TAX EXEMPTION.  (a) The district may acquire, 
lease as lessor or lessee, construct, develop, own, operate, and 
maintain parking facilities or a system of parking facilities, 
including:
		(1)  lots, garages, parking terminals, or other 
structures or accommodations for parking motor vehicles off the 
streets;  and
		(2)  equipment, entrances, exits, fencing, and other 
accessories necessary for safety and convenience in parking 
vehicles.
	(b)  A parking facility of the district must be leased to or 
operated for the district by an entity other than the district.
	(c)  The district's parking facilities serve a public 
purpose under Section 3818.003 and are owned, used, and held for a 
public purpose even if leased or operated by a private entity for a 
term of years.
	(d)  The district's public parking facilities and any lease 
to a private entity are exempt from the payment of ad valorem taxes 
and state and local sales and use taxes.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.153. RULES FOR TRANSIT OR PARKING SYSTEM.  (a) The 
district may adopt rules covering its public transit system and its 
public parking system.
	(b)  Rules adopted under this section that relate to or 
affect the use of the public right-of-way or a requirement for 
off-street parking are subject to all applicable municipal charter, 
code, and ordinance requirements.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.154. PAYING COST OF PUBLIC TRANSIT SYSTEM OR 
PARKING FACILITIES.  (a) The district may use any of its resources, 
including revenue, assessments, taxes, and grant or contract 
proceeds, to pay the cost of acquiring or operating a public transit 
system or a system of public parking facilities.
	(b)  The district may:                                                         
		(1)  set, charge, impose, and collect fees, charges, or 
tolls for the use of the public transit system or the public parking 
facilities;  and
		(2)  issue bonds or notes to finance the cost of these 
facilities.          
	(c)  If the district pays for or finances the cost of 
acquiring and operating a public transit system or a system of 
public parking facilities with resources other than assessments, a 
petition of property owners or public hearing is not required, just 
as a petition of property owners and public hearing on the petition 
are not required for the provision of all other district services 
and improvements that are not paid for or financed with 
assessments.  Notwithstanding this subsection, a petition is 
required as provided by Section 3818.151 before the district may 
construct transit improvements.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.155. PAYMENT INSTEAD OF TAXES TO OTHER TAXING 
UNITS.  If the district's acquisition of property for a parking 
facility that is leased to or operated by a private entity results 
in removing from a taxing unit's tax rolls real property otherwise 
subject to ad valorem taxation, the district shall pay to the taxing 
unit in which the property is located, on or before January 1 of 
each year, as a payment instead of taxes, an amount equal to the ad 
valorem taxes that otherwise would have been imposed for the 
preceding tax year on that real property by the taxing unit, without 
including the value of any improvements constructed on the 
property.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      

SUBCHAPTER E. FINANCIAL PROVISIONS


	§ 3818.201. NOTICE AND HEARING REQUIRED.  The board may 
finance a service or improvement project under this chapter after:
		(1)  notice of a hearing has been given as required by 
Section 3818.202;  and
		(2)  the board holds a public hearing on the 
advisability of the service or improvement and the proposed 
assessments.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.202. NOTICE OF HEARING.  (a) Except as provided by 
this section, notice of a hearing on financing improvement projects 
or services shall be given as provided by Section 375.115, Local 
Government Code.
	(b)  The final publication must be made:                                       
		(1)  not later than the 15th day before the date of the 
hearing;  and       
		(2)  in a newspaper of general circulation in each 
county in which the district is located.
	(c)  Written notice required by Section 375.115(c), Local 
Government Code, must be made not later than the 15th day before the 
date of the hearing.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.203. HEARING PROCEDURE.  (a) The board may appoint 
a director, a district employee, or any other person as hearings 
examiner to conduct hearings required by the board.
	(b)  A hearing under this subchapter shall be conducted in 
the manner provided for contested cases under Chapter 2001, 
Government Code.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.204. PETITION REQUIRED FOR FINANCING SERVICES AND 
IMPROVEMENT PROJECTS.  (a) The board may not finance a service or 
improvement project under this chapter unless a written petition 
requesting that service or improvement has been filed with the 
board.
	(b)  The petition must be signed by:                                           
		(1)  the owners of 50 percent of the assessed value of 
the property in the district based on the most recent certified 
county tax appraisal roll;  or
		(2)  the owners of 50 percent or more of the surface 
area of the district, excluding roads, streets, highways, and 
utility rights-of-way, based on the most recent certified county 
tax appraisal roll.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.205. AUTHORITY TO IMPOSE AD VALOREM TAXES, 
ASSESSMENTS, AND IMPACT FEES.  (a) The district may impose an ad 
valorem tax, assessment, or impact fee in accordance with Chapter 
375, Local Government Code, to provide an improvement or service 
for a project or activity the district may acquire, construct, 
improve, or provide under this chapter if a written petition 
requesting that improvement or service has been filed with the 
board.
	(b)  The petition must be signed by:                                           
		(1)  the owners of 50 percent or more of the assessed 
value of the property in the district as determined from the most 
recent certified county tax appraisal roll;  or
		(2)  25 owners of property in the district, if more than 
25 persons own property in the district as determined by the most 
recent certified county tax appraisal roll.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.206. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND 
IMPACT FEES.  The district may not impose an assessment or impact 
fee on the property, including the equipment, rights-of-way, 
facilities, or improvements of:
		(1)  an electric utility or a power generation company 
as defined by Section 31.002, Utilities Code;
		(2)  a gas utility as defined by Section 101.003 or 
121.001, Utilities Code;
		(3)  a telecommunications provider as defined by 
Section 51.002, Utilities Code;  or
		(4)  a cable system as defined by Section 602, 
Communications Act of 1934 (47 U.S.C. Section 522), as amended.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.207. BONDS;  APPROVAL BY CITY OF HOUSTON.  (a) 
Except as provided by Subsection (b), the district must obtain the 
approval of the director of public works of the City of Houston for 
the issuance of bonds for any improvement project.
	(b)  If the district obtains approval from the governing body 
of the City of Houston of a capital improvements budget for a period 
not to exceed five years, the district may finance the capital 
improvements and issue bonds specified in the budget without 
further approval from the City of Houston.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.208. PETITION REQUIRED FOR BOND ELECTION.  The 
board may not call a bond election unless a written petition has 
been filed with the board that requests an election and is signed by 
the owners of:
		(1)  50 percent or more of the assessed value of the 
property in the district based on the most recent certified county 
tax appraisal roll;  or
		(2)  50 percent or more of the surface area of the 
district, excluding roads, streets, highways, and utility 
rights-of-way, based on the most recent certified county tax 
appraisal roll.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.209. ASSESSMENTS AND BOND LIMIT.  The board may 
not issue bonds or impose assessments that exceed 10 percent of the 
assessed value of the property in the district based on the most 
recent certified county tax appraisal roll.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.210. APPEAL OF ASSESSMENT.  A property owner may 
appeal the board's decision on an assessment to a district court 
that has jurisdiction in the district by filing notice of the appeal 
with the court not later than the 30th day after the date of the 
board's final decision.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      


	§ 3818.211. PAYMENT BY EXEMPT JURISDICTIONS.  Payment of 
assessments by exempt jurisdictions, if any, shall be established 
by contract.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.      

SUBCHAPTER F. DISSOLUTION


	§ 3818.251. APPLICABILITY OF OTHER LAW;  
EXCEPTION.  Subchapter M, Chapter 375, Local Government Code, 
applies to the district except that in determining the percentage 
of surface area under Section 375.262(2), Local Government Code, 
other public areas and other property exempt from assessment under 
Sections 375.161, 375.163, and 375.164 are not excluded.

Added by Acts 2005, 79th Leg., ch. 729, § 1.03, eff. April 1, 
2007.