CHAPTER 3892. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 21
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 4. DEVELOPMENT AND IMPROVEMENT
SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT
CHAPTER 3892. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 21
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 3892.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "Director" means a board member.
(3) "District" means the Harris County Improvement District No.
21.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 21. The
Harris County Improvement District No. 21 is a special district
created under Section 59, Article XVI, Texas Constitution.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.003. 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, the Metropolitan Transit Authority
of 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 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 the effective date
of the Act creating this chapter 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.004. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2 of the Act
creating this chapter, as that territory may have been modified
under:
(1) Section 3892.251;
(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 creating 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.006. 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.
1101, Sec. 1, eff. June 19, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 3892.051. BOARD OF DIRECTORS; TERMS. (a) The district is
governed by a board of 10 voting directors appointed by a
majority of the members of the governing body, including the
mayor, of the City of Houston. Voting directors serve staggered
terms of four years with five directors' terms expiring June 1 of
each odd-numbered year.
(b) The board by order or resolution may increase or decrease
the number of voting directors on the board, but only if a
majority of the voting directors finds that it is in the best
interest of the district to do so. The board may not:
(1) increase the number of voting directors to more than 15; or
(2) decrease the number of voting 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.052. APPOINTMENT OF DIRECTORS ON INCREASE IN BOARD
SIZE. If the board increases the number of directors under
Section 3892.051, the board shall appoint eligible persons to
fill the new director positions and shall provide for the
staggering of terms of the new directors. 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. 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 of the
governing body, including the mayor, vote to appoint that person.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.053. NONVOTING DIRECTORS. (a) The following persons
shall serve as nonvoting directors:
(1) the directors of the following departments of the City of
Houston or a person designated by that director:
(A) parks and recreation;
(B) planning and development; and
(C) public works; and
(2) the City of Houston's chief of police.
(b) If a department described by Subsection (a) is consolidated,
renamed, or changed, the board may appoint a director of the
consolidated, renamed, or changed department as a nonvoting
director. If a department described by Subsection (a) is
abolished, the board may appoint a representative of another
department that performs duties comparable to the duties
performed by the abolished department.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.054. QUORUM. (a) Except as provided by Subsection
(b), six voting directors constitute a quorum of the board.
(b) If the board is composed of an odd number of directors, a
majority of the voting directors constitutes a quorum.
(c) Nonvoting directors and vacant director positions are not
counted for the purposes of establishing a quorum of the board.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.055. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)
Except as provided by this section:
(1) a voting 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 a one-time affidavit
declaring the interest. An additional affidavit is not required
if the director's interest changes. After the affidavit is filed
with the board secretary, 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.
(c) A director who is also an officer or employee of a public
entity may not participate in the discussion of or vote on a
matter regarding a contract with that public entity.
(d) For purposes of this section, a director has a substantial
interest in a charitable entity in the same manner that a person
would have substantial interest in a business entity under
Section 171.002, Local Government Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.056. COMPENSATION OF VOTING DIRECTORS. Voting
directors may receive fees of office and reimbursement of
expenses as provided by Section 49.060, Water Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
For expiration of this section, see Subsection (d).
Sec. 3892.057. INITIAL VOTING DIRECTORS. (a) The initial board
consists of:
Pos. No. Name of Director
1 Brian Smith
2 Janice Sibley-Reid
3 Zinetta Burney
4 R. Quinn Meads
5 Walter Johnson
6 Anthony Robinson
7 Tariq Gladney
8 Hamilton Rucker
9 Michael Lacston
10 Courtney White
(b) Of the initial directors, the terms of directors serving in
positions 1 through 5 expire June 1, 2013, and the terms of
directors serving in positions 6 through 10 expire June 1, 2011.
(c) Sections 3892.051(a) and (b) do not apply to the initial
directors.
(d) This section expires September 1, 2013.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 3892.101. DISTRICT POWERS. The district may exercise the
powers given to:
(1) a district created under Chapter 375, Local Government Code;
(2) a district by Subchapters H and I, Chapter 49, Water Code;
(3) 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
(4) a housing finance corporation created under Chapter 394,
Local Government Code, to provide housing or residential
development projects in the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.102. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.103. 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.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.104. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.105. 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 in the district
for a fee; or
(2) a private entity for the private entity to provide
supplemental security services.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.106. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.107. APPROVAL BY CITY OF HOUSTON. (a) Except as
provided by Subsection (b), the district must obtain the approval
of the City of Houston's governing body for:
(1) the issuance of a bond for each improvement project;
(2) the plans and specifications of the improvement project
financed by the bond; and
(3) the plans and specifications of any district improvement
project related to the use of land owned by the City of Houston,
an easement granted by the City of Houston, or 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The
district may join and pay dues to an organization that:
(1) enjoys tax-exempt status under Section 501(c)(3), (4), or
(6), Internal Revenue Code of 1986; and
(2) performs a service or provides an activity consistent with
promoting a district purpose.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.109. ROAD POWERS. The district may exercise powers
given to:
(1) a road district created under Chapter 257, Transportation
Code; and
(2) a road utility district created under Chapter 441,
Transportation Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.110. AIR RIGHTS; CONSTRUCTION. The district may
acquire air rights and may construct improvements on property on
which it owns only air rights.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.111. ADDITIONAL PROPERTY RIGHTS; LEASEHOLDS. The
district may construct improvements on property on which it only
has a leasehold interest and may own undivided interests in
buildings and other improvements.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.112. NO EMINENT DOMAIN POWER. The district may not
exercise the power of eminent domain.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES
Sec. 3892.151. 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) The board may not act under Subsection (a) unless a written
petition requesting the action has been filed with the board.
(c) The petition must be signed by:
(1) the owners of property representing a majority of the total
assessed value of the real property in the district that abuts
the right-of-way in which the public transit system is proposed
to be located; or
(2) the owners of a majority of 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.
(d) For purposes of Subsection (c), 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.152. PARKING FACILITIES AUTHORIZED; OPERATION BY
PRIVATE ENTITY. (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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.153. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.154. 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 3892.151, 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.155. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.156. AGREEMENT WITH RAPID TRANSIT AUTHORITY. (a) In
this section, "authority" means a rapid transit authority created
under Chapter 451, Transportation Code.
(b) The district and an authority may agree to jointly
construct, own, operate, and maintain a transit facility or a
parking facility under the terms the authority and district
desire.
(c) The agreement may provide that the district and the
authority exchange or trade land provided that each party to the
agreement receives fair market value. The authority is not
required to offer any property that it proposes to trade to the
district for sale to the public or for sale to any abutting
property owner.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
SUBCHAPTER E. FINANCIAL PROVISIONS
Sec. 3892.201. 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 of the district or to
accomplish a purpose or duty for which the district was created.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.202. 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.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.203. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.204. 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 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 that
will be subject to the assessment, if more than 25 persons own
real property subject to the assessment in the district according
to the most recent certified tax appraisal roll for Harris
County.
(c) The board may act upon a petition, required under this
section, signed by qualified petitioners prior to or subsequent
to the enactment of this chapter.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.205. MAINTENANCE TAX. (a) If authorized at an
election held in accordance with Section 3892.104, the district
may impose an annual ad valorem tax on taxable property in the
district to:
(1) administer the district;
(2) maintain and operate the district;
(3) construct or acquire improvements; or
(4) provide a service.
(b) The board shall determine the tax rate.
(c) An owner of real property in the district, except property
exempt under the Texas or United States Constitution or under the
Tax Code, is liable for the payment of ad valorem taxes imposed
by the district on the property.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.206. 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 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.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.207. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM
ASSESSMENT AND IMPACT FEES. The district may not impose an
impact fee or assessment on the property, including 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 the public cable television or
advanced telecommunications services.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.208. 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 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.209. BONDS AND OTHER OBLIGATIONS. (a) The district
may issue bonds, notes, or other obligations in accordance with
Subchapter J, Chapter 375, Local Government Code, payable wholly
or partly from assessments, impact fees, revenue, grants, or
other money of the district, or any combination of these sources
of money, to pay for any authorized district purpose.
(b) In exercising the district's power to borrow, 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.210. LIMITS ON PARKS AND RECREATION BONDS. Bonds
issued to finance parks and recreational facilities may not
exceed one percent of the assessed value of the real property in
the district according to the most recent certified tax appraisal
roll for Harris County.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.211. TAX AND BOND ELECTIONS. (a) The district shall
hold an election in the manner provided by Subchapter L, Chapter
375, Local Government Code, to obtain voter approval before the
district imposes a maintenance tax or issues bonds payable from
ad valorem taxes.
(b) The board may not include more than one purpose in a single
proposition at an election to impose a maintenance tax or issue
bonds payable from ad valorem taxes.
(c) Section 375.243, Local Government Code, does not apply to
the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.212. POWERS OF MUNICIPAL UTILITY DISTRICT TO ESTABLISH
DEFINED AREAS AND DESIGNATED PROPERTY; TAXES; BONDS. (a) The
district has the powers of a municipal utility district under
Subchapter J, Chapter 54, Water Code, including the power to:
(1) implement a plan;
(2) issue bonds; and
(3) impose a tax in a defined area established under that
subchapter.
(b) The district may exercise the powers described by Subsection
(a) regardless of whether the district is composed of the minimum
number of acres provided by Section 54.801, Water Code.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.213. 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.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.214. COMPETITIVE BIDDING. Section 375.221, Local
Government Code, applies to the district only for a contract that
has a value greater than $50,000.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
SUBCHAPTER F. CONSOLIDATION
Sec. 3892.251. CONSOLIDATION WITH MUNICIPAL MANAGEMENT DISTRICT.
(a) The district may consolidate with one other municipal
management district that adjoins or has a boundary that is within
a two-mile radius of any boundary of the district. The board may
consolidate with one other district only if the district to be
consolidated has not issued bonds or notes secured by assessments
or ad valorem taxes or imposed taxes.
(b) To initiate consolidation, the board of a district shall
adopt a resolution proposing a consolidation and deliver a copy
of the resolution to the board of each district with which
consolidation is proposed.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.252. TERMS AND CONDITIONS FOR CONSOLIDATION. Not
later than the 30th day after districts are consolidated under
Section 3892.251, the districts shall enter into an agreement
specifying the terms and conditions for consolidation. The terms
and conditions for consolidation must include:
(1) adoption of a name for the consolidated district;
(2) the number and apportionment of directors to serve on the
board of the consolidated district;
(3) the effective date of the consolidation;
(4) an agreement on finances for the consolidated district,
including disposition of funds, property, and other assets of
each district; and
(5) an agreement on governing the districts during the
transition period, including selection of officers.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.253. NOTICE AND HEARING ON CONSOLIDATION. (a) Each
district's board shall publish notice and hold a public hearing
in its district regarding the terms and conditions for
consolidation of the districts. The board shall publish notice
at least once in a newspaper with general circulation in the
affected districts at least seven days before the hearing.
(b) After the hearing, each board by resolution must approve the
terms and conditions for consolidation by majority vote and enter
an order consolidating the districts.
(c) If the board of each involved district adopts a resolution
containing the terms and conditions for the consolidation, the
involved districts become consolidated.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.254. GOVERNING CONSOLIDATED DISTRICTS. (a) After two
districts are consolidated, they become one district and are
governed as one district.
(b) During the period before the terms and conditions of the
agreement under Section 3892.252 take effect, the officers of
each district shall continue to act jointly as officers of the
original districts to settle the affairs of their respective
districts.
(c) If one of the districts consolidated into one district under
this subchapter had powers at the time the districts were
consolidated that the other district being consolidated did not
have, the consolidated district may exercise within the original
boundaries of each district only the powers that belonged to that
original district. In territory annexed into a consolidated
district, the district may exercise any of the powers of the
original districts.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.255. DEBTS OF ORIGINAL DISTRICTS. After two districts
are consolidated, the consolidated district shall protect the
debts and obligations of the original districts and shall ensure
that the debts and obligations are not impaired. If the
consolidated district has taxing authority, the debts may be paid
by taxes imposed on the land in the original districts as if they
had not consolidated or from contributions from the consolidated
district on terms stated in the consolidation agreement.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.256. ASSESSMENT AND COLLECTION OF TAXES. If the
consolidated district has taxing authority, the district shall
impose and collect taxes on all property in the district
uniformly, for maintenance and operation of the district.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
Sec. 3892.257. FILING OF ORDER WITH COUNTY CLERK AND EXECUTIVE
DIRECTOR. The board shall keep in the records of the
consolidated district, recorded in the office of the county clerk
in each of the counties in the consolidated district, a
consolidation order issued by the board. The board shall file
the consolidation order with the executive director of the Texas
Commission on Environmental Quality.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.
SUBCHAPTER G. DISSOLUTION
Sec. 3892.301. 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. The board
may dissolve the district regardless of whether the district has
debt.
(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. The
dissolution is effective when all debts have been discharged.
Added by Acts 2009, 81st Leg., R.S., Ch.
1101, Sec. 1, eff. June 19, 2009.