CHAPTER 3805. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3805. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3805.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the Harris County Improvement District No.
3.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.003(b), eff. September 1, 2005.
Sec. 3805.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 3. A
special district known as the "Harris County Improvement District
No. 3" is a governmental agency and political subdivision of this
state.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.003(c), eff. September 1, 2005.
Sec. 3805.003. 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, 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 traversed by Kirby Drive in the city of
Houston.
(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 September 1, 1997,
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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.004. 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) Each improvement project or service authorized by this
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 Kirby Drive vicinity of the
city of Houston 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 Kirby Drive vicinity of the city of Houston; 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 1202,
Acts of the 77th Legislature, Regular Session, 2001, amending
former Section 376.154, Local Government Code, as that territory
may have been modified under:
(1) Section 3805.105 or its predecessor statutes, former Section
376.124(b), Local Government Code, as added by Chapter 275, Acts
of the 75th Legislature, Regular Session, 1997, and former
Section 376.154(b), Local Government Code;
(2) Subchapter J, Chapter 49, Water Code; or
(3) other law.
(b) The boundaries and field notes of the district contained in
Section 1, Chapter 1202, Acts of the 77th Legislature, Regular
Session, 2001, amending former Section 376.154, Local Government
Code, 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.
(c) A description of the district's boundaries shall be filed
with the Texas Commission on Environmental Quality. The
commission by order may correct a mistake in the description of
the district's boundaries.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.006. TORT LIABILITY. The district is a governmental
unit under Chapter 101, Civil Practice and Remedies Code, and the
operations of the district are essential government functions and
are not proprietary functions for any purpose, including the
application of Chapter 101, Civil Practice and Remedies Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.007. ELIGIBILITY FOR REINVESTMENT ZONES. All or any
part of the area of the district is eligible to be included in a
tax increment reinvestment zone created by the City of Houston
under Chapter 311, Tax Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.009. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3805.051. BOARD OF DIRECTORS; TERMS. (a) The district is
governed by a board of five directors who serve staggered terms
of four years.
(b) The board by resolution may increase or decrease the number
of directors on the board, but only if a majority of the board
finds that it is in the best interest of the district to do so.
The board may not:
(1) increase the number of directors to more than nine; or
(2) decrease the number of directors to fewer than five.
(c) Sections 49.053, 49.054, 49.056, 49.057, 49.058, and 49.060,
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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD
SIZE. If the board increases the number of directors under
Section 3805.051, the board shall appoint qualified persons to
fill the new director positions and shall provide for staggering
the terms of the directors serving in the new positions. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3805.101. DISTRICT POWERS. The district has:
(1) all powers necessary to accomplish the purposes for which
the district was created;
(2) the rights, powers, privileges, authority, and functions of
a district created under Chapter 375, Local Government Code;
(3) the powers, duties, and contracting authority specified by
Subchapters H and I, Chapter 49, Water Code;
(4) the powers given to 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
(5) the powers of a housing finance corporation created under
Chapter 394, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.34, eff. April 1, 2009.
Sec. 3805.102. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.103. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.104. 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 for a fee; and
(2) a private entity for the private entity to provide
supplemental security services.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.105. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.106. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2005, 79th Leg., Ch.
684, Sec. 5, eff. June 17, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3805.151. 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 or to accomplish a purpose
or duty for which the district was created.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.152. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3805.103, the district
may impose an annual ad valorem tax on taxable property in the
district to maintain, restore, replace, or operate the district
and improvements that the district constructs or acquires or the
district's facilities, works, or services.
(b) The board shall determine the tax rate.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.1525. 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 2005, 79th Leg., Ch.
728, Sec. 18.003(d), eff. September 1, 2005.
Sec. 3805.1526. 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 or in the area of the district that will
be subject to the assessment as determined by the most recent
certified tax appraisal roll for Harris County; or
(2) at least 25 persons who own real property in the district or
the area of the district that will be subject to the assessment,
if more than 25 persons own real property in the district or area
that will be subject to the assessment as determined by the most
recent certified tax appraisal roll for Harris County.
Added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.003(d), eff. September 1, 2005.
Sec. 3805.153. ASSESSMENTS CONSIDERED TAXES. For purposes of a
title insurance policy issued under Title 11, Insurance Code, an
assessment is a tax.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 11.160, eff. September 1, 2005.
Sec. 3805.154. LIENS FOR ASSESSMENTS; SUITS TO RECOVER
ASSESSMENTS. (a) An assessment imposed on property under this
chapter is a personal obligation of the person who owns the
property on January 1 of the year for which the assessment is
imposed. If the person transfers title to the property, the
person is not relieved of the obligation.
(b) On January 1 of the year for which an assessment is imposed
on a property, a lien attaches to the property to secure the
payment of the assessment and any interest accrued on the
assessment. The lien has the same priority as a lien for district
taxes.
(c) Not later than the fourth anniversary of the date on which a
delinquent assessment became due, the district may file suit to
foreclose the lien or to enforce the obligation for the
assessment, or both, and for any interest accrued.
(d) In addition to recovering the amount of the assessment and
any accrued interest, the district may recover reasonable costs,
including attorney's fees, that the district incurs in
foreclosing the lien or enforcing the obligation. The costs may
not exceed an amount equal to 20 percent of the assessment and
interest.
(e) If the district does not file a suit in connection with a
delinquent assessment on or before the last date on which the
district may file suit under Subsection (c), the assessment and
any interest accrued is considered paid.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.155. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
ASSESSMENT AND IMPACT FEES. The district may not impose an
impact fee or assessment on the property, including equipment or
facilities, of:
(1) an electric utility 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 operator as defined by 47 U.S.C. Section 522, as
amended.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.003(e), eff. September 1, 2005.
Sec. 3805.156. DEBT. The district may issue bonds, notes, or
other debt obligations in accordance with Subchapters I and J,
Chapter 375, Local Government Code, for a purpose specified by
that chapter or as required to exercise a power or function or to
accomplish a purpose or duty for which the district was created.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3805.157. 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
(C) electronic transmission line; or
(2) any other type of transmission line or supporting facility.
(c) The district may not require a person to use a district
conduit.
Added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.003(f), eff. September 1, 2005.
SUBCHAPTER E. DISSOLUTION
Sec. 3805.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.
(a) The district may be dissolved as provided by Subchapter M,
Chapter 375, Local Government Code.
(b) Regardless of Section 375.264, Local Government Code, if the
district has debt, the district may be dissolved as provided by
Subchapter M, Chapter 375, Local Government Code. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER F. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
Sec. 3805.251. 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) Before the district may act under Subsection (a), a petition
must be filed with the district that requests the action with
regard to a public transit system. The petition must be signed
by owners of property representing a majority of the total
assessed value or 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. 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.
728, Sec. 18.003(g), eff. September 1, 2005.
Sec. 3805.252. 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, including:
(1) lots, garages, parking terminals, or other structures or
accommodations for parking motor vehicles; 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 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, and serve a public purpose under that section 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.
728, Sec. 18.003(g), eff. September 1, 2005.
Sec. 3805.253. RULES FOR TRANSIT OR PARKING SYSTEM. (a) The
district may adopt rules covering its public transit system or
its public parking facilities.
(b) A rule adopted under this section that relates to or affects
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 2005, 79th Leg., Ch.
728, Sec. 18.003(g), eff. September 1, 2005.
Sec. 3805.254. 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 and operating a public
transit system or public parking facilities.
(b) The district may:
(1) set and impose 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) Except as provided by Section 3805.251, if the district pays
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 2005, 79th Leg., Ch.
728, Sec. 18.003(g), eff. September 1, 2005.
Sec. 3805.255. 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
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 in lieu of taxes, an amount
equal to the ad valorem taxes that otherwise would have been
levied 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.
728, Sec. 18.003(g), eff. September 1, 2005.