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AN ACT
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relating to the creation of the Harris County Improvement District |
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No. 9; providing authority to impose a tax and issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9. |
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Subtitle C, Title 4, Special District Local Laws Code, is amended by |
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adding Chapter 3859 to read as follows: |
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CHAPTER 3859. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9 |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 3859.001. DEFINITIONS. In this chapter: |
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(1) "Board" means the board of directors of the |
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district. |
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(2) "District" means the Harris County Improvement |
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District No. 9. |
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Sec. 3859.002. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 9. A |
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special district known as the "Harris County Improvement District |
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No. 9" is a governmental agency and political subdivision of this |
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state. |
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Sec. 3859.003. PURPOSE; DECLARATION OF INTENT. (a) The |
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creation of the district is essential to accomplish the purposes of |
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Sections 52 and 52-a, Article III, and Section 59, Article XVI, |
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Texas Constitution, and other public purposes stated in this |
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chapter. By creating the district and in authorizing Harris |
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County, the City of Houston, and other political subdivisions to |
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contract with the district, the legislature has established a |
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program to accomplish the public purposes set out in Section 52-a, |
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Article III, Texas Constitution. |
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(b) The creation of the district is necessary to promote, |
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develop, encourage, and maintain employment, commerce, |
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transportation, housing, tourism, recreation, the arts, |
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entertainment, economic development, safety, and the public |
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welfare in the area of the district. |
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(c) This chapter and the creation of the district may not be |
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interpreted to relieve Harris County or the City of Houston from |
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providing the level of services provided as of September 1, 2007, to |
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the area in the district or to release the county or the city from |
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the obligations of each entity to provide services to that area. |
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The district is created to supplement and not to supplant the county |
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or city services provided in the area in the district. |
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Sec. 3859.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) |
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The district is created to serve a public use and benefit. |
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(b) All land and other property included in the district |
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will benefit from the improvements and services to be provided by |
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the district under powers conferred by Sections 52 and 52-a, |
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Article III, and Section 59, Article XVI, Texas Constitution, and |
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other powers granted under this chapter. |
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(c) Each improvement project or service authorized by this |
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chapter is essential to carry out a public purpose. |
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(d) The creation of the district is in the public interest |
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and is essential to: |
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(1) further the public purposes of developing and |
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diversifying the economy of the state; |
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(2) eliminate unemployment and underemployment; and |
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(3) develop or expand transportation and commerce. |
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(e) The district will: |
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(1) promote the health, safety, and general welfare of |
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residents, employers, employees, visitors, and consumers in the |
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district, and of the public; |
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(2) provide needed funding for the district to |
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preserve, maintain, and enhance the economic health and vitality of |
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the area as a community and business center; |
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(3) promote the health, safety, welfare, and enjoyment |
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of the public by providing public art and pedestrian ways and by |
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landscaping and developing certain areas in the district, which are |
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necessary for the restoration, preservation, and enhancement of |
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scenic and aesthetic beauty; |
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(4) promote and benefit commercial development and |
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commercial areas in the district; and |
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(5) promote and develop public transportation and |
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pedestrian facilities and systems using new and alternative means |
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that are attractive, safe, and convenient, including securing |
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expanded and improved transportation and pedestrian facilities and |
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systems, to: |
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(A) address the problem of traffic congestion in |
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the district, the need to control traffic and improve pedestrian |
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safety, and the limited availability of money; and |
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(B) benefit the land and other property in the |
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district and the residents, employers, employees, visitors, and |
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consumers in the district and the public. |
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(f) Pedestrian ways along or across a street, whether at |
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grade or above or below the surface, and street lighting, street |
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landscaping, and street art objects are parts of and necessary |
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components of a street and are considered to be a street or road |
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improvement. |
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(g) The district will not act as the agent or |
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instrumentality of any private interest even though the district |
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will benefit many private interests as well as the public. |
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Sec. 3859.005. DISTRICT TERRITORY. (a) The district is |
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composed of the territory described by Section 2 of the Act enacting |
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this chapter, as that territory may have been modified under: |
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(1) Section 3859.106; |
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(2) Subchapter J, Chapter 49, Water Code; or |
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(3) other law. |
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(b) The boundaries and field notes of the district contained |
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in Section 2 of the Act enacting this chapter form a closure. A |
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mistake in the field notes or in copying the field notes in the |
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legislative process does not in any way affect: |
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(1) the district's organization, existence, and |
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validity; |
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(2) the district's right to issue any type of bond, |
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including a refunding bond, for a purpose for which the district is |
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created or to pay the principal of and interest on the bond; |
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(3) the district's right to impose and collect an |
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assessment or tax; or |
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(4) the legality or operation of the district or the |
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board. |
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(c) A description of the district's boundaries shall be |
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filed with the Texas Commission on Environmental Quality. The |
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commission by order may correct a mistake in the description of the |
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district's boundaries. |
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Sec. 3859.006. TORT LIABILITY. The district is a |
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governmental unit under Chapter 101, Civil Practice and Remedies |
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Code, and the operations of the district are essential government |
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functions and are not proprietary functions for any purpose, |
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including the application of Chapter 101, Civil Practice and |
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Remedies Code. |
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Sec. 3859.007. ELIGIBILITY FOR REINVESTMENT ZONES. All or |
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any part of the area of the district is eligible to be included in a |
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tax increment reinvestment zone created by the City of Houston |
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under Chapter 311, Tax Code. |
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Sec. 3859.008. LIBERAL CONSTRUCTION OF CHAPTER. This |
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chapter shall be liberally construed in conformity with the |
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findings and purposes stated in this chapter. |
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[Sections 3859.009-3859.050 reserved for expansion] |
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SUBCHAPTER B. BOARD OF DIRECTORS |
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Sec. 3859.051. BOARD OF DIRECTORS; TERMS. (a) The |
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district is governed by a board of 11 directors who serve staggered |
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terms of four years with five or six directors' terms expiring June |
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1 of each odd-numbered year. |
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(b) The board by resolution may increase or decrease the |
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number of directors on the board, but only if a majority of the |
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board finds that it is in the best interest of the district to do so. |
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The board may not: |
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(1) increase the number of directors to more than 15; |
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or |
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(2) decrease the number of directors to fewer than |
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five. |
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(c) Sections 49.053, 49.054, 49.056, 49.057, 49.058, and |
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49.060, Water Code, apply to the board. |
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(d) Subchapter D, Chapter 375, Local Government Code, |
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applies to the board to the extent that subchapter does not conflict |
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with this chapter. |
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Sec. 3859.052. APPOINTMENT OF DIRECTORS ON INCREASE IN |
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BOARD SIZE. If the board increases the number of directors under |
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Section 3859.051, the board shall appoint qualified persons to fill |
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the new director positions and shall provide for staggering the |
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terms of the directors serving in the new positions. On expiration |
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of the term of a director appointed under this section, a succeeding |
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director shall be appointed and qualified as provided by Subchapter |
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D, Chapter 375, Local Government Code. |
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Sec. 3859.053. INITIAL DIRECTORS. (a) The initial board |
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consists of: |
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Pos. No. |
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Name of Director |
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(b) Of the initial directors, the terms of directors |
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appointed for positions 1 through 6 expire June 1, 2011, and the |
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terms of directors appointed for positions 7 through 11 expire June |
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1, 2009. |
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(c) Section 3859.051 does not apply to this section. |
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(d) This section expires September 1, 2011. |
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[Sections 3859.054-3859.100 reserved for expansion] |
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SUBCHAPTER C. POWERS AND DUTIES |
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Sec. 3859.101. DISTRICT POWERS. The district has: |
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(1) all powers necessary to accomplish the purposes |
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for which the district was created; |
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(2) the rights, powers, privileges, authority, and |
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functions of a district created under Chapter 375, Local Government |
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Code; |
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(3) the powers, duties, and contracting authority |
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specified by Subchapters H and I, Chapter 49, Water Code; |
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(4) the powers given to a corporation under Section |
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4B, Development Corporation Act of 1979 (Article 5190.6, Vernon's |
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Texas Civil Statutes), including the power to own, operate, |
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acquire, construct, lease, improve, and maintain the projects |
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described by that section; and |
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(5) the powers of a housing finance corporation |
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created under Chapter 394, Local Government Code. |
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Sec. 3859.102. NONPROFIT CORPORATION. (a) The board by |
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resolution may authorize the creation of a nonprofit corporation to |
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assist and act for the district in implementing a project or |
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providing a service authorized by this chapter. |
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(b) The nonprofit corporation: |
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(1) has each power of and is considered for purposes of |
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this chapter to be a local government corporation created under |
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Chapter 431, Transportation Code; and |
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(2) may implement any project and provide any service |
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authorized by this chapter. |
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(c) The board shall appoint the board of directors of the |
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nonprofit corporation. The board of directors of the nonprofit |
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corporation shall serve in the same manner as, for the same term as, |
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and on the same conditions as the board of directors of a local |
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government corporation created under Chapter 431, Transportation |
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Code. |
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Sec. 3859.103. ELECTIONS. (a) District elections must be |
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held in the manner provided by Subchapter L, Chapter 375, Local |
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Government Code. |
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(b) The board may submit multiple purposes in a single |
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proposition at an election. |
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Sec. 3859.104. CONTRACT FOR LAW ENFORCEMENT AND SECURITY |
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SERVICES. The district may contract with: |
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(1) Harris County or the City of Houston for the county |
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or city to provide law enforcement and security services for a fee; |
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and |
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(2) a private entity for the private entity to provide |
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supplemental security services. |
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Sec. 3859.105. ECONOMIC DEVELOPMENT PROGRAMS AND OTHER |
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POWERS RELATED TO PLANNING AND DEVELOPMENT. (a) The district may |
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establish and provide for the administration of one or more |
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programs to promote state or local economic development and to |
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stimulate business and commercial activity in the district, |
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including programs to: |
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(1) make loans and grants of public money, including |
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bond proceeds; and |
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(2) provide district personnel and services. |
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(b) The district has all of the powers of a municipality |
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under Chapter 380, Local Government Code. |
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(c) The district is eligible to receive a grant from a |
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municipality under Chapter 380, Local Government Code. |
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Sec. 3859.106. ANNEXATION OR EXCLUSION OF TERRITORY. The |
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district may annex or exclude land from the district in the manner |
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provided by Subchapter C, Chapter 375, Local Government Code. |
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Sec. 3859.107. NO EMINENT DOMAIN POWER. The district may |
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not exercise the power of eminent domain. |
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[Sections 3859.108-3859.150 reserved for expansion] |
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SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES |
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Sec. 3859.151. PUBLIC TRANSIT SYSTEM; PETITION REQUIRED. |
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(a) The district may acquire, lease as lessor or lessee, construct, |
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develop, own, operate, and maintain a public transit system to |
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serve the area within the boundaries of the district. |
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(b) Before the district may act under Subsection (a), a |
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petition must be filed with the district requesting the action with |
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regard to a public transit system. The petition must be signed by |
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owners of property representing a majority of either the total |
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assessed value or the area of the real property in the district that |
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abuts the right-of-way in which the public transit system is |
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proposed to be located. The determination of a majority is based on |
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the property owners along the entire right-of-way of the proposed |
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transit project and may not be calculated on a block-by-block |
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basis. |
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Sec. 3859.152. PARKING FACILITIES AUTHORIZED; OPERATION BY |
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PRIVATE ENTITY; TAX EXEMPTION. (a) The district may acquire, lease |
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as lessor or lessee, construct, develop, own, operate, and maintain |
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parking facilities, including: |
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(1) lots, garages, parking terminals, or other |
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structures or accommodations for the parking of motor vehicles; and |
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(2) equipment, entrances, exits, fencing, and other |
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accessories necessary for safety and convenience in the parking of |
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vehicles. |
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(b) A parking facility of the district must be either leased |
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to or operated on behalf of the district by a private entity or an |
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entity other than the district. The district's parking facilities |
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are a program authorized by the legislature under Section 52-a, |
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Article III, Texas Constitution, and accomplish a public purpose |
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under that section even if leased or operated by a private entity |
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for a term of years. |
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(c) The district's public parking facilities and any lease |
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to a private entity are exempt from the payment of ad valorem taxes |
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and state and local sales and use taxes. |
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Sec. 3859.153. RULES. The district may adopt rules |
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covering its public transit system or its public parking facilities |
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except that a rule relating to or affecting the use of the public |
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right-of-way or a requirement for off-street parking is subject to |
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all applicable municipal charter, code, or ordinance requirements. |
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Sec. 3859.154. FINANCING OF PUBLIC TRANSIT SYSTEM OR |
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PARKING FACILITIES. (a) The district may use any of its resources, |
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including revenue, assessments, taxes, and grant or contract |
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proceeds, to pay the cost of acquiring and operating a public |
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transit system or public parking facilities. |
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(b) The district may set and impose fees, charges, or tolls |
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for the use of the public transit system or the public parking |
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facilities and may issue bonds or notes to finance the cost of these |
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facilities. |
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(c) Except as provided by Section 3859.151, if the district |
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pays for or finances the cost of acquiring or operating a public |
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transit system or public parking facilities with resources other |
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than assessments, a petition of property owners or a public hearing |
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is not required. |
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Sec. 3859.155. PAYMENT IN LIEU OF TAXES TO OTHER TAXING |
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UNIT. If the district's acquisition of property for a parking |
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facility that is leased to or operated by a private entity results |
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in the removal from a taxing unit's tax rolls of real property |
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otherwise subject to ad valorem taxation, the district shall pay to |
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the taxing unit in which the property is located, on or before |
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January 1 of each year, as a payment in lieu of taxes, an amount |
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equal to the ad valorem taxes that otherwise would have been imposed |
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for the preceding tax year on that real property by the taxing unit, |
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without including the value of any improvements constructed on the |
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property. |
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[Sections 3859.156-3859.200 reserved for expansion] |
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SUBCHAPTER E. FINANCIAL PROVISIONS |
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Sec. 3859.201. AUTHORITY TO IMPOSE ASSESSMENTS, AD VALOREM |
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TAXES, AND IMPACT FEES. The district may impose, assess, charge, or |
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collect an assessment, an ad valorem tax, an impact fee, or another |
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fee in accordance with Chapter 49, Water Code, for a purpose |
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specified by Chapter 375, Local Government Code, or as needed to |
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exercise a power or function or to accomplish a purpose or duty for |
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which the district was created. |
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Sec. 3859.202. MAINTENANCE TAX. (a) If authorized at an |
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election held in accordance with Section 3859.103, the district may |
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impose an annual ad valorem tax on taxable property in the district |
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to maintain, restore, replace, or operate the district and |
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improvements that the district constructs or acquires or the |
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district's facilities, works, or services. |
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(b) The board shall determine the tax rate. |
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Sec. 3859.203. ASSESSMENT IN PART OF DISTRICT. An |
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assessment may be imposed on only a part of the district if only |
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that part will benefit from the service or improvement. |
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Sec. 3859.204. PETITION REQUIRED FOR ASSESSMENT AND FOR |
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FINANCING SERVICES AND IMPROVEMENTS. (a) The board may not impose |
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an assessment or finance a service or improvement project under |
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this chapter unless a written petition requesting the improvement |
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or service has been filed with the board. |
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(b) The petition must be signed by: |
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(1) the owners of a majority of the assessed value of |
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real property in the district or in the area of the district that |
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will be subject to the assessment as determined by the most recent |
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certified tax appraisal roll for Harris County; or |
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(2) at least 25 persons who own real property in the |
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district or the area of the district that will be subject to the |
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assessment, if more than 25 persons own real property in the |
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district or area that will be subject to the assessment as |
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determined by the most recent certified tax appraisal roll for |
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Harris County. |
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Sec. 3859.205. ASSESSMENTS CONSIDERED TAXES. For purposes |
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of a title insurance policy issued under Title 11, Insurance Code, |
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an assessment is a tax. |
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Sec. 3859.206. LIENS FOR ASSESSMENTS; SUITS TO RECOVER |
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ASSESSMENTS. (a) An assessment imposed on property under this |
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chapter is a personal obligation of the person who owns the property |
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on January 1 of the year for which the assessment is imposed. If the |
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person transfers title to the property, the person is not relieved |
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of the obligation. |
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(b) On January 1 of the year for which an assessment is |
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imposed on a property, a lien attaches to the property to secure the |
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payment of the assessment and any interest accrued on the |
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assessment. The lien has the same priority as a lien for district |
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taxes. |
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(c) Not later than the fourth anniversary of the date on |
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which a delinquent assessment became due, the district may file |
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suit to foreclose the lien or to enforce the obligation for the |
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assessment, or both, and for any interest accrued. |
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(d) In addition to recovering the amount of the assessment |
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and any accrued interest, the district may recover reasonable |
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costs, including attorney's fees, that the district incurs in |
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foreclosing the lien or enforcing the obligation. The costs may not |
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exceed an amount equal to 20 percent of the assessment and interest. |
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(e) If the district does not file a suit in connection with a |
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delinquent assessment on or before the last date on which the |
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district may file suit under Subsection (c), the assessment and any |
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interest accrued is considered paid. |
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Sec. 3859.207. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM |
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ASSESSMENT AND IMPACT FEES. The district may not impose an impact |
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fee or assessment on the property, including equipment or |
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facilities, of: |
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(1) an electric utility as defined by Section 31.002, |
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Utilities Code; |
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(2) a gas utility as defined by Section 101.003 or |
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121.001, Utilities Code; |
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(3) a telecommunications provider as defined by |
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Section 51.002, Utilities Code; or |
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(4) a cable operator as defined by 47 U.S.C. Section |
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522. |
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Sec. 3859.208. USE OF ELECTRICAL OR OPTICAL LINES. (a) The |
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district may impose an assessment to pay the cost of: |
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(1) burying or removing electrical power lines, |
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telephone lines, cable or fiber optic lines, or any other type of |
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electrical or optical line; |
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(2) removing poles and any elevated lines using the |
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poles; and |
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(3) reconnecting the lines described by Subdivision |
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(2) to the buildings or other improvements to which the lines were |
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connected. |
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(b) The district may acquire, operate, or charge fees for |
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the use of the district conduits for: |
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(1) another person's: |
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(A) telecommunications network; |
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(B) fiber-optic cable; or |
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(C) electronic transmission line; or |
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(2) any other type of transmission line or supporting |
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facility. |
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(c) The district may not require a person to use a district |
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conduit. |
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Sec. 3859.209. DEBT. The district may issue bonds, notes, |
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or other debt obligations in accordance with Subchapters I and J, |
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Chapter 375, Local Government Code, for a purpose specified by that |
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chapter or as required to exercise a power or function or to |
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accomplish a purpose or duty for which the district was created. |
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[Sections 3859.210-3859.250 reserved for expansion] |
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SUBCHAPTER F. DISSOLUTION |
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Sec. 3859.251. DISSOLUTION OF DISTRICT WITH OUTSTANDING |
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DEBT. (a) The district may be dissolved as provided by Subchapter |
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M, Chapter 375, Local Government Code, except that Section 375.264, |
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Local Government Code, does not apply to the district. |
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(b) If the district has debt when it is dissolved, the |
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district shall remain in existence solely for the purpose of |
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discharging its bonds or other obligations according to their |
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terms. |
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SECTION 2. BOUNDARIES. As of the effective date of this |
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Act, the Harris County Improvement District No. 9 includes all |
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territory contained in the following described area: |
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BEGINNING at the intersection of the north boundary of Dixie and the |
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east right of way line of Interstate 45 South; |
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Then southerly along the east right of way line of Interstate 45 |
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South to its intersection with the south right of way line of Almeda |
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Genoa; |
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Then westerly along the south right of way line of Almeda Genoa to |
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its intersection with the west right of line of Telephone; |
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Then southerly along the west right of way line of Telephone to its |
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intersection with the south right of way line of Almeda Genoa; |
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Then westerly along the south right of way line of Almeda Genoa to |
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its intersection with the west right of way line of Mykawa; |
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Then northerly along the west right of way line of Mykawa to its |
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intersection with the north boundary of Dixie; |
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Then easterly along the north boundary of Dixie to the POINT OF |
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BEGINNING. |
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SECTION 3. LEGISLATIVE FINDINGS. The legislature finds |
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that: |
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(1) proper and legal notice of the intention to |
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introduce this Act, setting forth the general substance of this |
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Act, has been published as provided by law, and the notice and a |
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copy of this Act have been furnished to all persons, agencies, |
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officials, or entities to which they are required to be furnished by |
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the constitution and laws of this state, including the governor, |
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who has submitted the notice and Act to the Texas Commission on |
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Environmental Quality; |
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(2) the Texas Commission on Environmental Quality has |
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filed its recommendations relating to this Act with the governor, |
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lieutenant governor, and speaker of the house of representatives |
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within the required time; |
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(3) the general law relating to consent by political |
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subdivisions to the creation of districts with conservation, |
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reclamation, and road powers and the inclusion of land in those |
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districts has been complied with; and |
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(4) all requirements of the constitution and laws of |
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this state and the rules and procedures of the legislature with |
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respect to the notice, introduction, and passage of this Act have |
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been fulfilled and accomplished. |
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SECTION 4. INAPPLICABILITY OF NOTICE LAW. Section 313.006, |
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Government Code, does not apply to this Act. |
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SECTION 5. EFFECTIVE DATE. This Act takes effect |
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immediately if it receives a vote of two-thirds of all the members |
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elected to each house, as provided by Section 39, Article III, Texas |
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Constitution. If this Act does not receive the vote necessary for |
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immediate effect, this Act takes effect September 1, 2007. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4110 was passed by the House on May |
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11, 2007, by the following vote: Yeas 144, Nays 0, 2 present, not |
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voting; and that the House concurred in Senate amendments to H.B. |
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No. 4110 on May 24, 2007, by the following vote: Yeas 145, Nays 0, |
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1 present, not voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4110 was passed by the Senate, with |
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amendments, on May 22, 2007, by the following vote: Yeas 31, Nays |
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Secretary of the Senate |
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APPROVED: __________________ |
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Date |
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Governor |