CHAPTER 3814. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 4
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3814. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 4
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3814.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the Harris County Improvement District No.
4.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(b), eff. September 1, 2005.
Sec. 3814.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 4. The
Harris County Improvement District No. 4 is a special district
created under Section 59, Article XVI, Texas Constitution.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(c), eff. September 1, 2005.
Sec. 3814.003. 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.
(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.
(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 June 16, 2001, to
the area in the district. The district is created to supplement
and not to supplant the county or city services provided in the
area in the district.
(d) 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(d), eff. September 1, 2005.
Sec. 3814.004. 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 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 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. 3814.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Chapter 1376, Acts of the
77th Legislature, Regular Session, 2001, enacting former Section
376.454, 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
Chapter 1376, Acts of the 77th Legislature, Regular Session,
2001, enacting former Section 376.454, Local Government Code,
form a closure. A mistake in the field notes or in copying the
field notes in the legislative process does not affect the
district's:
(1) organization, existence, or validity;
(2) right to issue any type of bond for a purpose for which the
district is created or to pay the principal of and interest on a
bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.0055. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All
or any part of the area of the district is eligible to be
included in:
(1) a tax increment reinvestment zone created by the
municipality under Chapter 311, Tax Code;
(2) a tax abatement reinvestment zone created by the
municipality under Chapter 312, Tax Code; or
(3) an enterprise zone created by the municipality under Chapter
2303, Government Code.
Added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(e), eff. September 1, 2005.
Sec. 3814.006. 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. 3814.007. 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. DISTRICT BOARD OF DIRECTORS
Sec. 3814.051. BOARD OF DIRECTORS. (a) The district is
governed by a board of:
(1) nine voting directors appointed under Section 3814.052; and
(2) nonvoting directors as provided by Section 3814.053.
(b) If the board determines that it is in the best interest of
the district, the board by resolution may increase or decrease
the number of directors on the board except that the board may
not consist of fewer than seven or more than 15 directors.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(f), eff. September 1, 2005.
Sec. 3814.052. APPOINTMENT OF VOTING DIRECTORS. (a) 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 and the mayor
vote to appoint that person.
(b) Repealed by Acts 2005, 79th Leg., Ch. 728, Sec. 18.004(o),
eff. September 1, 2005.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(o), eff. September 1, 2005.
Sec. 3814.053. NONVOTING DIRECTORS. (a) The following persons
serve as nonvoting directors:
(1) the directors of the parks and recreation, planning and
development, public works, and civic center departments of the
City of Houston;
(2) the chief of police of the City of Houston;
(3) the director of the engineering division of the Harris
County department of public infrastructure;
(4) Harris County's general manager of the Metropolitan Transit
Authority of Harris County, Texas;
(5) the president of each institution of higher learning located
in the district; and
(6) the Houston district engineer for the Texas Department of
Transportation.
(b) If an agency, department, or division described by
Subsection (a) is consolidated, renamed, or changed, the board
may appoint a director of the consolidated, renamed, or changed
agency, department, or division as a nonvoting director. If an
agency, department, or division described by Subsection (a) is
abolished, the board may appoint a representative of another
agency, department, or division that performs duties comparable
to those performed by the abolished entity.
(c) A nonvoting director is not included for determining a board
quorum.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(g), eff. September 1, 2005.
Sec. 3814.054. TERMS. The voting directors serve staggered
terms of four years, with four directors' terms expiring June 1
of an odd-numbered year and five directors' terms expiring June 1
of the following odd-numbered year.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.056. CONFLICTS OF INTEREST. (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 an affidavit with the
board secretary declaring the interest. Another affidavit is not
required if the director's interest changes.
(c) After the affidavit is filed, 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.
(d) A director who is also an officer or employee of a public
entity may not participate in a discussion of or vote on a matter
regarding a contract with that same public entity.
(e) 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3814.101. ADDITIONAL POWERS OF DISTRICT. The district may
exercise the powers given to:
(1) a corporation created under Chapter 505, Local Government
Code, including the power to own, operate, acquire, construct,
lease, improve, or maintain a project described by that chapter;
and
(2) a housing finance corporation created under Chapter 394,
Local Government Code, to provide housing or residential
development projects in the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(h), eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.43, eff. April 1, 2009.
Sec. 3814.102. 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 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. 3814.103. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To
protect the public interest, the district may contract with
Harris County or the City of Houston to provide law enforcement
services in the district for a fee.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.105. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value of more than $25,000.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.106. APPROVAL BY CITY OF HOUSTON. (a) Except as
provided by Subsection (b), the district must obtain approval
from the City of Houston's governing body:
(1) for the issuance of bonds for each improvement project;
(2) of the plans and specifications of the improvement project
financed by the bond; and
(3) of the plans and specifications of an improvement project
related to:
(A) the use of land owned by the City of Houston;
(B) an easement granted by the City of Houston; or
(C) 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.107. ELECTRONIC TRANSMISSIONS. (a) The district may
acquire, operate, or charge fees for the use of 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.
(b) The district may not require a person to use a district
conduit.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Text of section as added by Acts 2005, 79th Leg., R.S., Ch.
684, Sec. 13
For text of section as added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(i), see other Sec. 3814.108.
Sec. 3814.108. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2005, 79th Leg., Ch.
684, Sec. 13, eff. June 17, 2005.
Text of section as added by Acts 2005, 79th Leg., R.S., Ch.
728, Sec. 18.004
For text of section as added by Acts 2005, 79th Leg., Ch.
684, Sec. 13, see other Sec. 3814.108.
Sec. 3814.108. MEMBERSHIP IN CHARITABLE ORGANIZATION. The
district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3), 501(c)(4),
or 501(c)(6), Internal Revenue Code of 1986 (26 U.S.C. Section
501), as amended; and
(2) performs a service or provides an activity that furthers a
district purpose.
Added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(i), eff. September 1, 2005.
Sec. 3814.109. ECONOMIC DEVELOPMENT PROGRAM. (a) The district
may establish and provide for the administration of one or more
programs, including programs to loan or grant public money or
provide district personnel or services, to:
(1) promote state or local economic development; and
(2) stimulate business and commercial activity in the district.
(b) For purposes of this section, the district has all of the
powers and authority of a municipality under Chapter 380, Local
Government Code.
Added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(j), eff. September 1, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
Sec. 3814.151. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or an improvement project with assessments 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 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, if more
than 25 persons own real 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.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(k), eff. September 1, 2005.
Sec. 3814.152. 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. 3814.153. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3814.158, 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. 3814.154. 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 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 make a correction to or deletion from the
assessment roll without notice and hearing required for an
additional assessment if the correction or deletion does not
increase the amount of a parcel of land.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(l), eff. September 1, 2005.
Sec. 3814.155. 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; or
(3) a person that provides to the public cable television or
advanced services.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.156. OBLIGATIONS. (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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.157. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Sec. 3814.158. ELECTIONS REGARDING TAXES OR BONDS. (a) The
district must hold an election in the manner provided by
Subchapter L, Chapter 375, Local Government Code, to obtain voter
approval before the district may:
(1) impose a maintenance tax; or
(2) issue a bond payable from ad valorem taxes.
(b) The board may 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(m), eff. September 1, 2005.
Sec. 3814.159. TAX AND ASSESSMENT ABATEMENTS. The district may
grant in the manner authorized by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
Added by Acts 2005, 79th Leg., Ch.
728, Sec. 18.004(n), eff. September 1, 2005.
SUBCHAPTER E. DISSOLUTION
Sec. 3814.201. 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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.