CHAPTER 3891. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 17

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3891. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 17

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3891.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

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

17.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.002. NATURE OF DISTRICT. The Harris County

Improvement District No. 17 is a special district created under

Section 59, Article XVI, Texas Constitution.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.003. 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 Harris County from providing the level of

services provided, as of the effective date of the Act enacting

this chapter, to the area in the district. The district is

created to supplement and not to supplant the county services

provided in the area in the district.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.004. 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, potential 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.

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act enacting this chapter.

(b) The boundaries and field notes 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 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.

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.006. 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.

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.007. 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.

1102, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3891.051. GOVERNING BODY; TERMS. The district is governed

by a board of five directors who serve staggered terms of four

years, with two or three directors' terms expiring June 1 of each

odd-numbered year.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.052. APPOINTMENT OF DIRECTORS. (a) The board shall

recommend to the Harris County Commissioners Court persons to

serve on the succeeding board.

(b) After reviewing the board's recommendations of persons to

serve on the succeeding board, the commissioners court shall

appoint as directors or disapprove the recommended persons.

(c) If the governing body of the City of Houston objects to any

of the board's recommendations of persons to serve on the

succeeding board, the board, on the request of the commissioners

court, shall submit additional recommendations.

(d) Board members may serve successive terms.

(e) If any provision of Subsections (a) through (d) is found to

be invalid, the Texas Commission on Environmental Quality shall

appoint the succeeding board from recommendations of persons to

serve on the succeeding board submitted by the board.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.053. ELIGIBILITY. To be eligible to serve as a

director, a person must meet the qualifications in Section

375.063, Local Government Code.

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

1102, Sec. 1, eff. June 19, 2009.

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

Sec. 3891.054. INITIAL DIRECTORS. (a) The initial board

consists of the following voting directors:

Pos. No. Name of Director

1 Joe Bullard

2 Hollis Bullard

3 Tim Culp

4 Joe Fogarty

5 Art DePue

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

expire June 1, 2011, and the terms of two directors expire June

1, 2013. The initial directors shall draw lots to determine which

two directors' terms expire June 1, 2013.

(c) Section 3891.052 does not apply to this section.

(d) This section expires September 1, 2014.

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

1102, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3891.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties necessary to accomplish the purposes for which

the district is created.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.102. MUNICIPAL MANAGEMENT POWERS AND DUTIES. The

district has the powers and duties provided by the general laws

of this state, including Chapter 375, Local Government Code,

applicable to a municipal management district created under

Sections 52 and 52-a, Article III, and Section 59, Article XVI,

Texas Constitution.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.103. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.104. SPORTS VENUE. The district may construct,

acquire, improve, maintain, and operate a sports venue, including

an arena, coliseum, stadium, or other type of area or facility

used for one or more professional or amateur sports or athletic

events.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.105. AGREEMENTS; GRANTS. The district may make an

agreement with or accept a gift, grant, or loan from any person.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.106. 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.

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.107. 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.

(b) The district has all of the economic development authority

that:

(1) Chapter 380, Local Government Code, grants to a municipality

with a population of more than 100,000; and

(2) Chapter 1509, Government Code, grants to a municipality.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.108. NO EMINENT DOMAIN. The district may not exercise

the power of eminent domain.

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

1102, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3891.151. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3891.158, 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.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.152. CONTRACT TAXES. (a) In accordance with Section

49.108, Water Code, the district may impose a tax other than an

operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district

voters voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.153. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS.

The district may issue bonds, notes, or other obligations payable

wholly or partly from ad valorem taxes, sales and use 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.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.154. HOTEL OCCUPANCY TAX. (a) The district may

impose a hotel occupancy tax in the manner that Chapter 351, Tax

Code, provides for a municipality.

(b) A tax imposed under this section may not exceed the maximum

rate under Section 351.003(a), Tax Code.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.155. SALES AND USE TAX. (a) The district may impose a

sales and use tax if authorized by a majority of the voters of

the district voting at an election held for that purpose.

Revenue from the tax may be used for any district purpose for

which ad valorem tax revenue is used.

(b) The district may not impose a sales and use tax if as a

result of the imposition of the tax the combined rate of all

sales and use taxes imposed by the district and other political

subdivisions of this state having territory in the district would

exceed the amount allowable by law at any location in the

district.

(c) If the voters of the district approve the adoption of the

tax at an election held on the same election date on which

another political subdivision adopts a sales and use tax or

approves an increase in the rate of its sales and use tax and as

a result the combined rate of all sales and use taxes imposed by

the district and other political subdivisions of this state

having territory in the district would exceed the amount

allowable by law at any location in the district, the election to

adopt a sales and use tax under this chapter has no effect.

(d) Except as otherwise provided by this chapter, Chapter 321,

Tax Code, applies to the imposition, computation, administration,

enforcement, and collection of the sales and use tax imposed by

this section.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.156. 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 an 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.

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.157. BONDS FOR ROAD PROJECTS. At the time of issuance

the total principal amount of bonds or other obligations incurred

to finance a road project may not exceed one-fourth of the

assessed value of real property in the district.

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

1102, Sec. 1, eff. June 19, 2009.

Sec. 3891.158. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by revenue or contract payments from any

source other than ad valorem taxes.

(b) The district must hold an election in the manner provided by

Chapters 49 and 54, Water Code, to obtain voter approval before

the district may impose an ad valorem tax or issue bonds payable

from ad valorem taxes.

(c) The district may not issue bonds payable from ad valorem

taxes to finance a road project unless the issuance is approved

by a vote of a two-thirds majority of the district voters voting

at an election held for that purpose.

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

1102, Sec. 1, eff. June 19, 2009.