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  H.B. No. 4110
 
 
 
 
AN ACT
  relating to the creation of the Harris County Improvement District
  No. 9; providing authority to impose a tax and issue bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9.
  Subtitle C, Title 4, Special District Local Laws Code, is amended by
  adding Chapter 3859 to read as follows:
  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.
         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.
         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.
         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.
         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.
         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.
         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.
         Sec. 3859.008.  LIBERAL CONSTRUCTION OF CHAPTER.  This
  chapter shall be liberally construed in conformity with the
  findings and purposes stated in this chapter.
  [Sections 3859.009-3859.050 reserved for expansion]
  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.
         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.
         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.
  [Sections 3859.054-3859.100 reserved for expansion]
  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 Section
  4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's
  Texas Civil Statutes), including the power to own, operate,
  acquire, construct, lease, improve, and maintain the projects
  described by that section; and
               (5)  the powers of a housing finance corporation
  created under Chapter 394, Local Government Code.
         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.
         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.
         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.
         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.
         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.
         Sec. 3859.107.  NO EMINENT DOMAIN POWER.  The district may
  not exercise the power of eminent domain.
  [Sections 3859.108-3859.150 reserved for expansion]
  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.
         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.
         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.
         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.
         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.
  [Sections 3859.156-3859.200 reserved for expansion]
  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.
         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.
         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.
         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.
         Sec. 3859.205.  ASSESSMENTS CONSIDERED TAXES.  For purposes
  of a title insurance policy issued under Title 11, Insurance Code,
  an assessment is a tax.
         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.
         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.
         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.
         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.
  [Sections 3859.210-3859.250 reserved for expansion]
  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.
         SECTION 2.  BOUNDARIES. As of the effective date of this
  Act, the Harris County Improvement District No. 9 includes all
  territory contained in the following described area:
  BEGINNING at the intersection of the north boundary of Dixie and the
  east right of way line of Interstate 45 South;
  Then southerly along the east right of way line of Interstate 45
  South to its intersection with the south right of way line of Almeda
  Genoa;
  Then westerly along the south right of way line of Almeda Genoa to
  its intersection with the west right of line of Telephone;
  Then southerly along the west right of way line of Telephone to its
  intersection with the south right of way line of Almeda Genoa;
  Then westerly along the south right of way line of Almeda Genoa to
  its intersection with the west right of way line of Mykawa;
  Then northerly along the west right of way line of Mykawa to its
  intersection with the north boundary of Dixie;
  Then easterly along the north boundary of Dixie to the POINT OF
  BEGINNING.
         SECTION 3.  LEGISLATIVE FINDINGS. The legislature finds
  that:
               (1)  proper and 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 have been furnished to all persons, agencies,
  officials, or entities to which they are required to be furnished by
  the constitution and laws of this state, including the governor,
  who has submitted the notice and Act to the Texas Commission on
  Environmental Quality;
               (2)  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;
               (3)  the general law relating to consent by political
  subdivisions to the creation of districts with conservation,
  reclamation, and road powers and the inclusion of land in those
  districts has been complied with; and
               (4)  all requirements of the constitution and laws of
  this state and the rules and procedures of the legislature with
  respect to the notice, introduction, and passage of this Act have
  been fulfilled and accomplished.
         SECTION 4.  INAPPLICABILITY OF NOTICE LAW.  Section 313.006,
  Government Code, does not apply to this Act.
         SECTION 5.  EFFECTIVE DATE.  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, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4110 was passed by the House on May
  11, 2007, by the following vote:  Yeas 144, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4110 on May 24, 2007, by the following vote:  Yeas 145, Nays 0,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4110 was passed by the Senate, with
  amendments, on May 22, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor