CHAPTER 3890. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 16
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3890. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 16
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3890.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "City" means the City of Houston.
(3) "Director" means a board member.
(4) "District" means the Harris County Improvement District No.
16.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.002. NATURE OF DISTRICT. The Harris County
Improvement District No. 16 is a special district created under
Section 59, Article XVI, Texas Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.003. 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.
(c) This chapter and the creation of the district may not be
interpreted to relieve the city or Harris County from providing
the level of services provided, as of the effective date of the
Act creating this chapter, to the area in the district. The
district is created to supplement and not to supplant the city
and county services provided in the area in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.004. 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 community and business center;
(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;
and
(4) provide for water, wastewater, drainage, road, and
recreational facilities for the district.
(e) Pedestrian ways along or across a street, whether at grade
or above or below the surface, and street lighting, street
landscaping, parking, 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.005. INITIAL DISTRICT TERRITORY. (a) The district is
initially composed of the territory described by Section 2 of the
Act creating this chapter.
(b) The boundaries and field notes contained in Section 2 of the
Act creating this chapter 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 the purposes for which
the district is created or to pay the principal of and interest
on the bond;
(3) right to impose or collect an assessment or tax; or
(4) legality or operation.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.006. 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 under Chapter 311,
Tax Code;
(2) a tax abatement reinvestment zone created under Chapter 312,
Tax Code; or
(3) an enterprise zone created under Chapter 2303, Government
Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS
LAW. Except as otherwise provided by this chapter, Chapter 375,
Local Government Code, applies to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter
shall be liberally construed in conformity with the findings and
purposes stated in this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3890.051. GOVERNING BODY; TERMS. (a) The district is
governed by a board of five voting directors who serve staggered
terms of four years, with two or three 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 five or more than 15 voting directors.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.052. APPOINTMENT OF DIRECTORS. The mayor and members
of the governing body of the city shall appoint voting directors
from persons recommended by the board. A person is appointed if
the majority of the members of the governing body, including the
mayor, vote to appoint that person.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
For expiration of this section, see Subsection (d).
Sec. 3890.053. INITIAL VOTING DIRECTORS. (a) The initial board
consists of the following voting directors:
Pos. No. Name of Director
1 Thad Armstrong
2 Ken Melber
3 Bank Jordan
4 Alan Arnold
5 Pat Walters
(b) Of the initial directors, the terms of directors appointed
for positions 1 through 3 expire June 1, 2011, and the terms of
directors appointed for positions 4 and 5 expire June 1, 2013.
(c) Section 3890.052 does not apply to this section.
(d) This section expires September 1, 2014.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.054. NONVOTING DIRECTORS. The board may appoint
nonvoting directors to serve at the pleasure of the voting
directors.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.055. QUORUM. For purposes of determining the
requirements for a quorum of the board, the following are not
counted:
(1) a board position vacant for any reason, including death,
resignation, or disqualification;
(2) a director who is abstaining from participation in a vote
because of a conflict of interest; or
(3) a nonvoting director.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.056. COMPENSATION. A director is entitled to receive
fees of office and reimbursement for actual expenses as provided
by Section 49.060, Water Code. Sections 375.069 and 375.070,
Local Government Code, do not apply to the board.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3890.101. DEVELOPMENT CORPORATION POWERS. The district may
exercise the powers given to a development corporation under
Chapter 505, Local Government Code, including the power to own,
operate, acquire, construct, lease, improve, or maintain a
project described by that chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.102. 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, except that a board member is not
required to reside in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.103. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT
SERVICES. To protect the public interest, the district may
contract with a qualified person, including Harris County or the
city, for the provision of law enforcement services in the
district for a fee.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.105. APPROVAL BY CITY. (a) Except as provided by
Subsection (c), the district must obtain approval from the city
for:
(1) the issuance of bonds; and
(2) plans and specifications for an improvement project related
to the use of land owned by the city, an easement granted by the
city, or a right-of-way of a street, road, or highway.
(b) The approval under Subsection (a)(1) must be by a resolution
or ordinance adopted by the governing body of the city. The
approval under Subsection (a)(2) may be any form of official
approval of the city, including approval by an administrative
process that does not involve the city's governing body.
(c) If the district obtains approval of the city's governing
body for a capital improvements plan for a period not to exceed
10 years, the district may finance the capital improvements and
issue bonds specified in the plan without further city approval.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to a charitable or nonprofit
organization that performs a service or provides an activity
consistent with the furtherance of a district purpose.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.107. ECONOMIC DEVELOPMENT PROGRAMS. (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; and
(2) provide district personnel and services.
(b) The district has all of the powers of a municipality under
Chapter 380, Local Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.108. NO EMINENT DOMAIN. The district may not exercise
the power of eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.109. ANNEXATION OR EXCLUSION OF LAND. (a) The
district may annex land as provided by Subchapter J, Chapter 49,
Water Code.
(b) In addition to the authority to annex provided by Subsection
(a), the board by resolution may annex territory if:
(1) the city's governing body by ordinance or resolution
consents to the annexation;
(2) the board holds a hearing to consider the annexation; and
(3) the board determines that the annexation is practicable and
in the best interest of the district.
(c) An election is required for an annexation under Subsection
(b) or Section 49.302, Water Code, only if before the annexation
the district held an election at which the voters approved the
imposition of an ad valorem tax or the issuance of bonds payable
wholly or partly from ad valorem taxes.
(d) The district may exclude land as provided by Subchapter J,
Chapter 49, Water Code. Section 375.044(b), Local Government
Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
Sec. 3890.151. PUBLIC TRANSIT SYSTEM. The district may acquire,
lease as lessor or lessee, construct, develop, own, operate, and
maintain a public transit system to serve the area in the
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.152. 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 or a system of parking facilities,
including:
(1) lots, garages, parking terminals, or other structures or
accommodations for parking motor vehicles off the streets; and
(2) equipment, entrances, exits, fencing, and other accessories
necessary for safety and convenience in parking vehicles.
(b) A parking facility of the district may 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.
(d) The district's parking facilities serve the public purposes
of the district and are owned, used, and held for a public
purpose even if leased or operated by a private entity for a term
of years.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.153. RULES. The district may adopt rules governing
the district's public transit system or public parking
facilities.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.154. FINANCING OF PUBLIC PARKING FACILITIES. (a) The
district may use any of its resources, including revenue,
assessments, taxes, or grant or contract proceeds, to pay the
cost of acquiring or operating the district's public transit
system or public parking facilities.
(b) The district may:
(1) set, charge, impose, and collect fees, charges, or tolls for
the use of the district's public transit system or public parking
facilities; and
(2) issue bonds or notes to finance the cost of the district's
public transit system or public parking facilities.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 3890.201. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.202. MONEY USED FOR IMPROVEMENTS OR SERVICES. The
district may acquire, construct, finance, operate, or maintain
any improvement or service authorized under this chapter or
Chapter 375, Local Government Code, using any money available to
the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.203. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a
service or improvement project with assessments under this
chapter unless a written petition requesting that service or
improvement has been filed with the board.
(b) A petition filed under Subsection (a) must be signed by 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.204. METHOD OF NOTICE FOR HEARING. The district may
mail the notice required by Section 375.115(c), Local Government
Code, by certified or first class United States mail. The board
shall determine the method of mailing notice.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.205. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The
board by resolution may impose and collect an assessment for any
purpose authorized by this chapter in all or any part of the
district.
(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.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.206. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.207. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held in accordance with Section
3890.210, the district may impose an annual operation and
maintenance tax on taxable property in the district in accordance
with Section 49.107, Water Code, for any district purpose,
including to:
(1) maintain and operate the district;
(2) construct or acquire improvements; or
(3) provide a service.
(b) The board shall determine the tax rate. The rate may not
exceed the rate approved at the election.
(c) Section 49.107(h), Water Code, does not apply to the
district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.208. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.
(a) The district may borrow money on terms and conditions as
determined by the board. Section 375.205, Local Government Code,
does not apply to a loan, line of credit, or other borrowing from
a bank or financial institution secured by revenue other than ad
valorem taxes.
(b) The district may issue by competitive bid or negotiated sale
bonds, notes, or other obligations payable wholly or partly from
ad valorem taxes, assessments, impact fees, revenue, contract
payments, grants, or other district money, or any combination of
those sources of money, to pay for any authorized district
purpose.
(c) The limitation on the outstanding principal amount of bonds,
notes, and other obligations set forth in Section 49.4645, Water
Code, does not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.209. TAXES FOR BONDS. At the time the district issues
bonds payable wholly or partly from ad valorem taxes, the board
shall provide for the annual imposition of a continuing direct
annual ad valorem tax, without limit as to rate or amount, while
all or part of the bonds are outstanding as required and in the
manner provided by Sections 54.601 and 54.602, Water Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.210. ELECTIONS REGARDING TAXES AND BONDS. (a) The
district may issue, without an election, bonds, notes, and other
obligations secured by revenue other than ad valorem taxes.
(b) 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 impose an ad valorem tax or
issue bonds payable from ad valorem taxes.
(c) Section 375.243, Local Government Code, does not apply to
the district.
(d) All or any part of any facilities or improvements which may
be acquired by a district by the issuance of its bonds may be
included in one single proposition to be voted on at the election
or the bonds may be submitted in several propositions.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.211. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS.
Except as provided by Section 375.263, Local Government Code, the
city may not be required to pay a bond, note, or other obligation
of the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.212. COMPETITIVE BIDDING. Subchapter I, Chapter 49,
Water Code, applies to the district. Sections 375.221 and
375.223, Local Government Code, do not apply to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.213. TAX AND ASSESSMENT ABATEMENTS. The district may
grant in the manner provided by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED
PROPERTY
Sec. 3890.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR
DESIGNATED PROPERTY. The district may define areas or designate
certain property of the district to pay for improvements,
facilities, or services that primarily benefit that area or
property and do not generally and directly benefit the district
as a whole.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.252. PROCEDURE FOR ELECTION. (a) Before the district
may impose an ad valorem tax or issue bonds payable from ad
valorem taxes of the area defined or property designated under
Section 3890.251, the board must call and hold an election as
provided by Section 3890.210 only in the defined area or in the
boundaries of the designated property.
(b) The board may submit the proposition to the voters on the
same ballot to be used in another election.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.253. DECLARING RESULT AND ISSUING ORDER. (a) If a
majority of the voters voting at the election approve the
proposition or propositions, the board shall declare the results
and by order shall establish the defined area and describe it by
metes and bounds or designate the specific property.
(b) A court may not review the board's order except on the
ground of fraud, palpable error, or arbitrary and confiscatory
abuse of discretion.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES
IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and
adoption of the order described in Section 3890.253, the district
may apply separately, differently, equitably, and specifically
its taxing power and lien authority to the defined area or
designated property to provide money to construct, administer,
maintain, and operate services, improvements, and facilities that
primarily benefit the defined area or designated property.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.
Sec. 3890.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR
DEFINED AREA OR DESIGNATED PROPERTY. After the order under
Section 3890.253 is adopted, the district may issue bonds to
provide for any land, improvements, facilities, plants,
equipment, and appliances for the defined area or designated
property.
Added by Acts 2009, 81st Leg., R.S., Ch.
870, Sec. 1, eff. June 19, 2009.