CHAPTER 3859. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3859. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3859.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "District" means the Harris County Improvement District No.

9.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9. A

special district known as the "Harris County Improvement District

No. 9" is a governmental agency and political subdivision of this

state.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.003. 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 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 September 1, 2007,

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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.004. 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 district 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 district; 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.005. DISTRICT TERRITORY. (a) 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) Section 3859.106;

(2) Subchapter J, Chapter 49, Water Code; or

(3) other law.

(b) The boundaries and field notes of the district contained in

Section 2 of the Act enacting this chapter 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.006. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.007. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3859.051. BOARD OF DIRECTORS; TERMS. (a) The district is

governed by a board of 11 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 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 15; 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD

SIZE. If the board increases the number of directors under

Section 3859.051, 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

For expiration of this section, see Subsection (d).

Sec. 3859.053. INITIAL DIRECTORS. (a) The initial board

consists of:

Pos. No.

Name of Director

1

Danny Perkins

2

Helen Bonsall

3

George Yeiter

4

Sue DeHaven

5

Ann Collum

6

Mary Case

7

Marjorie Evans

8

Joann Lemon

9

Darryl Bailey

10

Sushma Jasti

11

Edwin Lowe

(b) Of the initial directors, the terms of directors appointed

for positions 1 through 6 expire June 1, 2011, and the terms of

directors appointed for positions 7 through 11 expire June 1,

2009.

(c) Section 3859.051 does not apply to this section.

(d) This section expires September 1, 2011.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3859.101. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.046, eff. September 1, 2009.

Sec. 3859.102. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.103. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.104. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.105. ECONOMIC DEVELOPMENT PROGRAMS AND OTHER POWERS

RELATED TO PLANNING AND DEVELOPMENT. (a) The district may

establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money, including bond

proceeds; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

(c) The district is eligible to receive a grant from a

municipality under Chapter 380, Local Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.106. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.107. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3859.151. 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) Before the district may act under Subsection (a), a petition

must be filed with the district requesting the action with regard

to a public transit system. The petition must be signed by

owners of property representing a majority of either the total

assessed value or 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 calculated on a

block-by-block basis.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.152. 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, including:

(1) lots, garages, parking terminals, or other structures or

accommodations for the parking of motor vehicles; and

(2) equipment, entrances, exits, fencing, and other accessories

necessary for safety and convenience in the parking of vehicles.

(b) A parking facility of the district must be either leased to

or operated on behalf of the district by a private entity or an

entity other than the district. The district's parking

facilities are a program authorized by the legislature under

Section 52-a, Article III, Texas Constitution, and accomplish a

public purpose under that section even if leased or operated by a

private entity for a term of years.

(c) 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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.153. RULES. The district may adopt rules covering its

public transit system or its public parking facilities except

that a rule relating to or affecting 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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.154. FINANCING 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 set and impose fees, charges, or tolls for

the use of the public transit system or the public parking

facilities and may issue bonds or notes to finance the cost of

these facilities.

(c) Except as provided by Section 3859.151, 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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.155. 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 the

removal from a taxing unit's tax rolls of 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

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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3859.201. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.202. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3859.103, 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.203. 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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.204. 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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.205. ASSESSMENTS CONSIDERED TAXES. For purposes of a

title insurance policy issued under Title 11, Insurance Code, an

assessment is a tax.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.206. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.207. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.208. 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 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

Sec. 3859.209. 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.

SUBCHAPTER F. DISSOLUTION

Sec. 3859.251. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

(a) The district may be dissolved as provided by Subchapter M,

Chapter 375, Local Government Code, except that 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 bonds or other obligations according to their terms.

Added by Acts 2007, 80th Leg., R.S., Ch.

1288, Sec. 1, eff. June 15, 2007.