81R24554 SJM-F
By: Woolley H.B. No. 4814
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of Harris County Improvement
District No. 1; providing authority to impose a tax and issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 3818.002, Special District Local Laws
Code, is amended to read as follows:
Sec. 3818.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1. A
special district known as the "Harris County Improvement District
No. 1" is a political subdivision of this state created under
Section 59, Article XVI, Texas Constitution.
SECTION 2. Section 3818.051, Special District Local Laws
Code, is amended by amending Subsection (d) and adding Subsection
(e) to read as follows:
(d) The commission shall [attempt to] appoint directors
from persons recommended by the board [to represent all
geographical areas and business interests in the district and shall
solicit input from the existing board concerning persons who would
be eligible to represent the various interests in the district].
(e) The board by resolution may change the number of
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 9 or more than 15 directors.
SECTION 3. Sections 3818.052(a) and (d), Special District
Local Laws Code, are amended to read as follows:
(a) A [Except as provided by Subsection (b), a] director
must meet the requirements provided by Section 375.063, Local
Government Code.
(d) A person who qualifies to serve on the board [under
Subsection (a) or (b)] is qualified to serve as a director and
participate in all votes pertaining to the business of the
district.
SECTION 4. Section 3818.054, Special District Local Laws
Code, is amended to read as follows:
Sec. 3818.054. VACANCY. The board [commission] by
appointment shall fill a vacancy on the board.
SECTION 5. Subchapter C, Chapter 3818, Special District
Local Laws Code, is amended by adding Sections 3818.110, 3818.111,
and 3818.112 to read as follows:
Sec. 3818.110. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.
To protect the public interest, the district may contract with a
qualified party, including Harris County, the City of Houston, or
any licensed peace officer, for the provision of law enforcement
services in the district for a fee.
Sec. 3818.111. 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.
Sec. 3818.112. 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.
SECTION 6. Section 3818.201, Special District Local Laws
Code, is amended to read as follows:
Sec. 3818.201. NOTICE AND HEARING REQUIRED. The board may
finance a service or improvement project under this chapter with
assessments after:
(1) notice of a hearing has been given as required by
Section 3818.202; and
(2) the board holds a public hearing on the
advisability of the service or improvement and the proposed
assessments.
SECTION 7. Section 3818.202, Special District Local Laws
Code, is amended by adding Subsection (d) to read as follows:
(d) 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 notice.
SECTION 8. Section 3818.204, Special District Local Laws
Code, is amended to read as follows:
Sec. 3818.204. PETITION REQUIRED FOR FINANCING SERVICES AND
IMPROVEMENT PROJECTS. (a) The board may not finance a service or
improvement project under this chapter with assessments unless a
written petition requesting that service or improvement has been
filed with the board.
(b) The petition must be signed by:
(1) the owners of 50 percent of the assessed value of
the property in the district subject to assessment based on the most
recent certified county tax appraisal roll; or
(2) the owners of 50 percent or more of the surface
area of the district subject to assessment, excluding roads,
streets, highways, and utility rights-of-way, based on the most
recent certified county tax appraisal roll.
SECTION 9. Section 3818.205(a), Special District Local Laws
Code, is amended to read as follows:
(a) The district may impose an ad valorem tax, assessment,
or impact fee in accordance with Chapter 375, Local Government
Code, to provide an improvement or service for a project or activity
the district may acquire, construct, improve, or provide under this
chapter [if a written petition requesting that improvement or
service has been filed with the board].
SECTION 10. Subchapter E, Chapter 3818, Special District
Local Laws Code, is amended by adding Sections 3818.212, 3818.213,
3818.214, 3818.215, 3818.216, 3818.217, 3818.218, and 3818.219 to
read as follows:
Sec. 3818.212. 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.
Sec. 3818.213. 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.
Sec. 3818.214. OPERATION AND MAINTENANCE TAX. (a) If
authorized at an election held in accordance with Section 3818.217,
the district may impose an 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.
Sec. 3818.215. 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 provided by Section 49.4645,
Water Code, does not apply to the district.
Sec. 3818.216. 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 ad valorem tax, without limit as to the 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.
Sec. 3818.217. 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 part of any facilities or improvements that the
district may acquire by the issuance of district bonds may be
submitted as a single proposition or as several propositions to be
voted on at the election.
Sec. 3818.218. COMPETITIVE BIDDING. Subchapter I, Chapter
49, Water Code, applies to the district. Subchapter K, Chapter 375,
Local Government Code, does not apply to the district.
Sec. 3818.219. TAX AND ASSESSMENT ABATEMENTS. The district
may grant in the manner authorized by Chapter 312, Tax Code, an
abatement for a tax or assessment owed to the district.
SECTION 11. The following provisions of the Special
District Local Laws Code are repealed:
(1) Section 3818.052(b);
(2) Section 3818.053;
(3) Section 3818.151(b);
(4) Section 3818.205(b); and
(5) Section 3818.208.
SECTION 12. (a) The legislature validates and confirms all
governmental acts and proceedings of the board of directors of the
Harris County Improvement District No. 1 that were taken before the
effective date of this Act.
(b) Subsection (a) does not apply to any matter that on the
effective date of this Act:
(1) is involved in litigation if the litigation
ultimately results in the matter being held invalid by a final
judgment of a court; or
(2) has been held invalid by a final judgment of a
court.
SECTION 13. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act has been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
Government Code.
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
Environmental Quality.
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor,
lieutenant governor, and speaker of the house of representatives
within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to notice, introduction, and passage of this Act have been
fulfilled and accomplished.
SECTION 14. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2009.