79R3266 MSE-F
By: Allen of Harris H.B. No. 1819
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Harris County Improvement District
No. 5; providing authority to impose a tax and issue a bond or
similar obligation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 4, Special District Local Laws
Code, is amended by adding Chapter 3834 to read as follows:
CHAPTER 3834. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 5
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3834.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Harris County Improvement
District No. 5.
Sec. 3834.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO.
5. The Harris County Improvement District No. 5 is a special
district created under Section 59, Article XVI, Texas Constitution.
Sec. 3834.003. 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 and adjacent areas.
(c) This chapter and the creation of the district may not be
interpreted to relieve Harris County or the City of Houston from
providing the level of services provided as of the effective date of
this Act, to the area in the district. The district is created to
supplement and not to supplant the county services provided in the
area in the district.
Sec. 3834.004. 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 residential neighborhood and a
commercially viable area; and
(3) promote the health, safety, welfare, and enjoyment
of the public by providing pedestrian ways and by landscaping and
developing certain areas in the district, which are necessary for
the restoration, preservation, and enhancement of scenic beauty.
(e) Pedestrian ways along or across a street, whether at
grade or above or below the surface, and street lighting, street
landscaping, and street art objects are parts of and necessary
components of a street and are considered to be a street or road
improvement.
(f) The district will not act as the agent or
instrumentality of any private interest even though the district
will benefit many private interests as well as the public.
Sec. 3834.005. DISTRICT TERRITORY. The district is
composed of the territory described by Section 2 of the Act enacting
this chapter, as that territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
Sec. 3834.006. APPLICABILITY OF MUNICIPAL MANAGEMENT
DISTRICTS LAW. Except as otherwise provided by this chapter,
Chapter 375, Local Government Code, applies to the district.
Sec. 3834.007. LIBERAL CONSTRUCTION OF CHAPTER. This
chapter shall be liberally construed in conformity with the
findings and purposes stated in this chapter.
[Sections 3834.008-3834.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3834.051. BOARD OF DIRECTORS; TERMS. (a) The
district is governed by a board of 11 voting directors who serve
staggered terms of four years, with five or six 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 5 or more than 15 directors.
Sec. 3834.052. QUALIFICATIONS. (a) Three voting directors
on the board must reside in a residential area adjacent to the
district and eight voting directors must represent commercial
property owners or tenants in the district.
(b) If the total number of voting directors of the board is
increased or reduced, the board must maintain the same percentage
of representation of residential and commercial areas on the board.
Sec. 3834.053. APPOINTMENT OF DIRECTORS. The mayor and
members of the governing body of the City of Houston shall appoint
directors from persons recommended by the board. A person is
appointed if a majority of the members of the governing body,
including the mayor, vote to appoint that person.
Sec. 3834.054. NONVOTING DIRECTORS. (a) The following
persons 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
(C) public works; 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 those performed by
the abolished department.
Sec. 3834.055. QUORUM. (a) Section 375.071, Local
Government Code, does not apply to the district.
(b) A majority of the board is a quorum.
(c) Nonvoting directors and vacant director positions are
not counted for the purposes of establishing a board quorum.
Sec. 3834.056. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT.
(a) Except as provided by this section:
(1) a 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.
(c) A director who is also an officer or employee of a public
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 a substantial interest in a business entity
under Section 171.002, Local Government Code.
Sec. 3834.057. INITIAL VOTING DIRECTORS. (a) The initial
board consists of the following voting directors: Pos. No. Name of Director
1 _________
2 _________
3 _________
4 _________
5 _________
6 _________
7 _________
8 _________
9 _________
10 _________
11 _________
(b) Of the initial voting directors, the terms of directors
appointed for positions 1 through 6 expire June 1, 2009, and the
terms of directors appointed for positions 7 through 11 expire June
1, 2007.
(c) Section 3834.053 does not apply to this section.
(d) This section expires September 1, 2009.
[Sections 3834.058-3834.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3834.101. ADDITIONAL POWERS OF DISTRICT. The district
may exercise the powers given to:
(1) a corporation under Section 4B, Development
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
Statutes); and
(2) a housing finance corporation under Chapter 394,
Local Government Code, to provide housing or residential
development projects in the district.
Sec. 3834.102. 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, 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.
Sec. 3834.103. 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.
Sec. 3834.104. AUTHORITY TO CONTRACT FOR LAW
ENFORCEMENT. To protect the public interest, the district may
contract with Harris County or the City of Houston for the county or
the city to provide law enforcement services in the district for a
fee.
Sec. 3834.105. 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.
Sec. 3834.106. 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 the furtherance of a district purpose.
Sec. 3834.107. REMOVAL OF DANGEROUS BUILDINGS. (a) The
district may cooperate with the City of Houston to have the City of
Houston demolish and remove dangerous buildings in or outside the
district as provided by this section.
(b) The district may cooperate with the City of Houston to
demolish and remove dangerous buildings outside the district if:
(1) the district makes a determination that demolition
and removal would benefit the district; and
(2) the City of Houston agrees.
(c) The district may borrow money to finance the demolition
and removal of dangerous buildings under this section without
complying with Section 3834.152.
(d) The City of Houston shall reimburse the district for all
costs financed by the district from:
(1) the proceeds of foreclosure on any demolition lien
on the property; or
(2) any other money the city collects or appropriates
for the costs.
Sec. 3834.108. NOTICE. Notice required by Chapter 375,
Local Government Code, may be sent by first class U.S. Mail rather
than certified mail, return receipt requested, if the board of
directors determines that first class mail is preferable and
provides adequate notice. If the board determines that first class
mail is preferable, the board must publish notice in a newspaper of
general circulation in the district at least 20 days before the
event of which the district is giving notice.
Sec. 3834.109. NO EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
[Sections 3834.110–3834.150 reserved for expansion]
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3834.151. 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.
Sec. 3834.152. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or
improvement project with assessments or bonds under this chapter
unless a written petition requesting that service or improvement
has been filed with the board.
(b) A petition requesting a project financed by assessment
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 50 owners of real property in the district
that will be subject to the assessment, if more than 50 persons own
real property subject to the assessment in the district according
to the most recent certified tax appraisal roll for Harris County.
Sec. 3834.153. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3834.157, 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.
Sec. 3834.154. 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.
(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.
Sec. 3834.155. 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.
Sec. 3834.156. BONDS AND OTHER OBLIGATIONS. (a) The
district may issue bonds or other obligations payable wholly or
partly from assessments, impact fees, revenue, grants, or other
money of the district, or any combination of those sources of money,
to pay for any authorized purpose of the district.
(b) In exercising the district's 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.
Sec. 3834.157. 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.
(c) Section 375.243, Local Government Code, does not apply
to the district.
Sec. 3834.158. 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.
Sec. 3834.159. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $25,000.
[Sections 3834.160-3834.200 reserved for expansion]
SUBCHAPTER E. DISSOLUTION
Sec. 3834.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING
DEBT. (a) The board may dissolve the district regardless of
whether the district has debt. Section 375.264, Local Government
Code, does not apply to the district.
(b) If the district has debt when it is dissolved, the
district shall remain in existence solely for the purpose of
discharging its debts. The dissolution is effective when all debts
have been discharged.
SECTION 2. As of the effective date of this Act, the Harris
County Improvement District No. 5 includes all territory contained
in the following described area:
Beginning at point approximately 600 feet from the
intersection of the south right-of-way line of Murphy Road and the
south right-of-way line of Highway 59;
Thence in a northeasterly direction along the southeast
right-of-way line of Highway 59 approximately 10,900 feet to the
south right-of-way line of Bissonnet Street;
Thence in an easterly direction along the south right-of-way
line of Bissonnet Street a distance of approximately 3,500 feet to
the east right-of-way line of South Gessner Boulevard;
Thence in a southerly direction along the east right-of-way
line of South Gessner Boulevard a distance of approximately 1,100
feet to the north right-of-way line of Braeswood Bayou;
Thence in an easterly direction along the north right-of-way
line of Braeswood Bayou a distance of approximately 9,500 feet to
the east right-of-way line of Hillcroft Avenue;
Thence in a southerly direction along the east right-of-way
line of Hillcroft Avenue a distance of approximately 3,800 feet to
the south right-of-way line of Willowbend Drive;
Thence in a westerly direction along the south right-of-way
line of Willowbend Drive a distance of approximately 1,500 feet to
east line of Harris County Flood Control Ditch D-139-03;
Thence in a southerly direction along the east line of Harris
County Flood Control Ditch 139-03 continuing south along the east
line of Harris County Flood Control Ditch 140-05-02 continuing
further south along the east line of Harris County Flood Control
Ditch 140-05-01 a total distance of approximately 9,500 feet to the
north right-of-way line of Highway 90A;
Thence in an easterly direction along the north right-of-way
line of Highway 90A a distance of approximately 4,600 feet to the
east line of Harris County Flood Control Ditch C-156;
Thence crossing Highway 90A in a southerly direction along
the east line of Harris County Flood Control Ditch C-156 a distance
of approximately 3,900 feet to the south right-of-way line of West
Orem Drive;
Thence in a westerly direction along the south right-of-way
line of West Orem Drive a distance of approximately 3,200 feet to
the east right-of-way line of Blue Ridge Drive;
Thence in a southerly direction along the east right-of-way
line of Blue Ridge Drive a distance of approximately 4,300 feet to
the south right-of-way line of Sam Houston Tollway (Beltway 8);
Thence in a northwesterly direction along the south
right-of-way line of Sam Houston Tollway a distance of
approximately 13,800 feet to the east line of Reserve D, Block 1,
Sanders Ridge Replat;
Thence in a southwesterly direction along east line of
Reserve D, Block 1, Sanders Ridge Replat a distance of
approximately 1,900 feet to the north right-of-way line of Cravens
Street;
Thence in a northwesterly direction along the north
right-of-way line of Cravens Street a distance of approximately
1,100 feet to the south right-of-way line of Stafford Road;
Thence in a northeasterly direction along the south
right-of-way line of Stafford Road a distance of approximately
1,500 feet to a point;
Thence in a westerly direction a distance of approximately
1,000 feet to the west right-of-way line of New Stafford Road;
Thence in a northwesterly direction along the west
right-of-way line of New Stafford Road a distance of approximately
300 feet to the south right-of-way line of West Airport Boulevard;
Thence in a westerly direction along the south right-of-way
line of West Airport Boulevard a distance of approximately 2,800
feet to the east line of Harris County Flood Control Ditch D-118–05;
Thence in a northerly direction along the east line of Harris
County Flood Control Ditch D-118–05 a distance of approximately
2,200 feet to the south right-of-way line of Dorrance Street;
Thence in a westerly direction along the south right-of-way
line of Dorrance Street a distance of approximately 4,500 feet to
the south right-of-way line of Highway 59 and the Point of Beginning
SAVE AND EXCEPT all property or lots that have been plated and
recorded for use solely for single family residential purposes, are
designated by the Harris County Appraisal District as single-family
residential or are otherwise determined to be single-family
residential.
SECTION 3. The Harris County Improvement District No. 5 may
reimburse the cost of creating the district from assessments or
other revenues created by the district.
SECTION 4. The legislature finds that:
(1) proper and legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished by
the constitution and laws of this state, including the governor,
who has submitted the notice and Act to the Texas Commission on
Environmental Quality;
(2) the Texas Commission on Environmental Quality has
filed its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time;
(3) the general law relating to consent by political
subdivisions to the creation of districts with conservation,
reclamation, and road powers and the inclusion of land in those
districts has been complied with; and
(4) all requirements of the constitution and laws of
this state and the rules and procedures of the legislature with
respect to the notice, introduction, and passage of this Act have
been fulfilled and accomplished.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.