CHAPTER 3806. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3806. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3806.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the Harris County Improvement District No.
2.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 2. A
special district known as the "Harris County Improvement District
No. 2" is a governmental agency and political subdivision of this
state.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.003. 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 Richmond Avenue area 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. 3806.004. 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, employees, visitors, and consumers in the
district, and of the public;
(2) provide needed funding to preserve, maintain, and enhance
the economic health and vitality of the area in the district as a
community and business center; 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 and
aesthetic 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 679,
Acts of the 75th Legislature, Regular Session, 1997, enacting
former Section 376.214, Local Government Code, as that territory
may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district contained in
Section 1, Chapter 679, Acts of the 75th Legislature, Regular
Session, 1997, enacting former Section 376.214, 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.006. APPLICABILITY OF OTHER LAW. Except as otherwise
provided by this chapter, Chapter 375, Local Government Code,
applies to the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.007. 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. 3806.051. BOARD OF DIRECTORS; TERMS. (a) The district is
governed by a board of nine directors who serve staggered terms
of four years, with four or five directors' terms expiring June 1
of each odd-numbered year.
(b) The board by resolution may increase or decrease the number
of directors on the board, but only if 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 30; or
(2) decrease the number of directors to fewer than nine.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.052. 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 who meet the
requirements of 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. 3806.101. 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; and
(3) the powers given to a corporation under Chapter 505, Local
Government Code, and the power to own, operate, acquire,
construct, lease, improve, and maintain projects.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.35, eff. April 1, 2009.
Sec. 3806.103. 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 conditions of 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. 3806.104. CONTRACTS; GRANTS. (a) 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.
(b) Harris County, the City of Houston, or another political
subdivision of this state, without further authorization, may
contract with the district to implement a project of the district
or assist the district in providing a service authorized under
this chapter. A contract under this subsection may:
(1) be for a period on which the parties agree;
(2) include terms on which the parties agree;
(3) be payable from taxes or any other source of revenue that
may be available for that project or service; and
(4) provide terms under which taxes or other revenue collected
at a district project or from a person using or purchasing a
commodity or service at a district project may be paid or rebated
to the district.
(c) The district may enter into a contract, lease, or other
agreement with or make or accept a grant or loan to or from any
person, including:
(1) the United States;
(2) this state or a state agency;
(3) any political subdivision of this state; and
(4) a public or private corporation, including a nonprofit
corporation created under this subchapter.
(d) The district may perform all acts necessary for the full
exercise of the powers vested in the district on terms and for
the period the board determines advisable.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.105. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2005, 79th Leg., Ch.
684, Sec. 6, eff. June 17, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3806.151. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS. (a) The board may not finance a service or an
improvement project under this chapter unless a written petition
requesting that service or improvement is 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 according to the most recent certified
tax appraisal roll for Harris County; or
(2) at least 50 owners of land in the district, if more than 50
persons own property in the district according to the most recent
certified tax appraisal roll for Harris County.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.152. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.153. BOARD VOTE REQUIRED TO IMPOSE TAXES, ASSESSMENTS,
OR IMPACT FEES. The imposition of a tax, assessment, or impact
fee requires a vote of a majority of the directors serving.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.154. AUTHORITY TO IMPOSE AD VALOREM TAXES,
ASSESSMENTS, AND IMPACT FEES. The district may impose an ad
valorem tax, assessment, or impact fee as provided by 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.155. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3806.159, the district
may impose an annual ad valorem tax on taxable property in the
district to:
(1) maintain and operate the district and the improvements
constructed or acquired by the district; or
(2) provide a service.
(b) The board shall determine the tax rate.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.156. 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 proceeding.
(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 correct, add to, or delete assessments from
its assessment rolls after notice and hearing as provided by
Subchapter F, Chapter 375, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.157. PROPERTY EXEMPT FROM TAXES, IMPACT FEES, AND
ASSESSMENTS. (a) The district may not impose a tax, impact fee,
or assessment on a residential property, multiunit residential
property, or condominium.
(b) The district may not impose an impact fee or assessment on
the property, equipment, or facilities of an electric utility as
defined by Section 31.002, Utilities Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.158. OBLIGATIONS; APPROVAL BY CITY OF HOUSTON. (a)
The district may issue bonds or other obligations payable in
whole or in part from ad valorem taxes, 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 borrowing power, 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.
(c) Except as provided by Subsection (d), the district must
obtain the approval of the City of Houston:
(1) for the issuance of a bond for each improvement project;
(2) of the plans and specifications of the improvement project
to be financed by the bond; and
(3) of the plans and specifications of a district improvement
project related to the use of:
(A) land owned by a municipality;
(B) an easement granted by a municipality; or
(C) a right-of-way of a street, road, or highway.
(d) If the district obtains the approval of the City of Houston
of a capital improvements budget for a specified 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3806.159. ELECTIONS REGARDING TAXES OR BONDS. (a) In
addition to the elections required under Subchapter L, Chapter
375, Local Government Code, the district must hold an election in
the manner provided by that subchapter to obtain voter approval
before the district may:
(1) impose a maintenance tax; or
(2) issue a bond payable from ad valorem taxes or assessments.
(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.
SUBCHAPTER E. DISSOLUTION
Sec. 3806.201. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.
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.