CHAPTER 3818.  HARRIS COUNTY IMPROVEMENT DISTRICT NO. 1

SUBCHAPTER A.  GENERAL PROVISIONS

Revised Law

Sec. 3818.001.  DEFINITIONS.  In this chapter:

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

     (2)  "Commission" means the Texas Commission on Environmental Quality.

     (3)  "District" means the Harris County Improvement District No. 1.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 2; New.)

Source Law

Sec. 2.  In this Act, "district" means Harris County Improvement District No. 1.

Revisor's Note

The definitions of "board" and "commission" are added to the revised law for drafting convenience and to eliminate frequent, unnecessary repetition of the substance of the definitions.

Revised Law

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.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 1(A) (part).)

Source Law

Sec. 1.  (A)  There is hereby created and established within the State of Texas, in the form and manner as herein set forth, a special district, to be known as "Harris County Improvement District No. 1," which shall be a governmental agency, a body politic and corporate, and a political subdivision of the state… .

Revisor's Note

(1)  Section 1(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, states that the district is "created and established" within the State of Texas.  The revised law omits the quoted language as executed because the district has been created.

(2)  Section 1(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, states that the district is created and established "within the State of Texas."  The revised law omits the quoted language because it is clear from Section 3 of that chapter that the district territory is in Texas.

(3)  Section 1(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that the district "shall be a governmental agency, a body politic and corporate, and a political subdivision of the state."  The revised law omits the references to "governmental agency" and "body politic and corporate" because they duplicate a portion of Section 59(b), Article XVI, Texas Constitution, which provides that a conservation and reclamation district is a governmental agency and body politic and corporate.  The policy of the legislative council's statutory revision program is to omit from the revised codes the duplicating statutory provisions because a statute that tracks the language of the constitution not only is superfluous but may foster the erroneous belief that a constitutional requirement is merely statutory and subject to amendment through the ordinary legislative process.

(4)  Section 1(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that the board may change the name of the district by resolution.  The revised law omits that provision because it duplicates Section 375.096(d), Local Government Code.  Section 6(C), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987 (revised in this chapter as Section 3818.006), provides that Chapter 375, Local Government Code, applies to the district.  Throughout this chapter, provisions that duplicate provisions in Chapter 375, Local Government Code, have been omitted.  The relevant sections in Chapter 375 are cited in revisor's notes.  The omitted law reads:

(A)  … The name of the district may be changed by resolution of the board of directors of the district at any time.

Revised Law

Sec. 3818.003.  PURPOSE; DECLARATION OF INTENT.  The creation of the district is essential to accomplish the purposes of Section 52, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes as provided by this chapter.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 1(B).)

Source Law

(B)  The creation of the district is declared to be essential to the accomplishment of the purposes of Article III, Section 52, and Article XVI, Section 59, of the Texas Constitution and to the accomplishment of the several other public purposes as more fully set forth in this Act.

Revised Law

Sec. 3818.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  The district is created to serve a public use and benefit.  Each improvement project or service authorized by this chapter carries out a public purpose.

(b)  All land and other property included in the district will  benefit from the works and projects that are to be accomplished by the district under powers conferred by Section 52, Article III,  and Section 59, Article XVI, Texas Constitution, Vernon's Texas Civil Statutes, and other powers granted under this chapter.

(c)  The creation of the district is essential to:

     (1)  the economic diversification of the state;

     (2)  the elimination of unemployment and underemployment; and

     (3)  the stimulation of transportation and commerce.

(d)  The creation of the district is in the public interest and will promote the health, safety, and general welfare of its residents and the public.

(e)  The present and prospective traffic congestion in the district, the safety of pedestrians, and the limited availability of funds require the promotion and development of public transportation and pedestrian facilities and systems by new and alternative means.  The district will serve the public purpose of securing expanded and improved transportation and pedestrian facilities and systems.

(f)  The district will promote the health, safety, welfare, morals, convenience, and enjoyment of the public by landscaping and developing certain areas in the district that are necessary for the restoration, preservation, and enhancement of scenic and aesthetic beauty.

(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.  (Acts 70th Leg., R.S., Ch. 1026, Secs. 5(A), (B), 7(A) (part).)

Source Law

Sec. 5.  (A)  The legislature finds that all of the land and other property included within the boundaries of the district will be benefited by the works and projects that are to be accomplished by the district under powers conferred by Article III, Section 52, and Article XVI, Section 59, of the Texas Constitution, Vernon's Texas Civil Statutes, and other powers granted hereunder, and that the district is created to serve a public use and benefit.

(B)  The legislature hereby finds that the creation of the district is essential to the economic diversification of the state, the elimination of unemployment and underemployment and the stimulation of transportation and commerce, is in the public interest, and will promote the health, safety, and general welfare of its residents and the general public.  The present and prospective traffic congestion in the district and the safety of pedestrians and the limited availability of funds require the promotion and development of public transportation and pedestrian facilities and systems by new and alternative means, and the district will serve the public purpose of securing expanded and improved transportation and pedestrian facilities and systems.  The district will promote the health, safety, welfare, morals, convenience, and enjoyment of the public by landscaping and developing certain areas within the district, which are necessary for the restoration, preservation, and enhancement of scenic and aesthetic beauty.  The district will not act as the agent or instrumentality of any private interests even though many private interests will be benefited by the district, as will the general public.

Sec. 7.  (A)  …  Each and all of the improvement projects and/or services authorized by this Act are hereby found and declared to carry out a public purpose.

Revised Law

Sec. 3818.005.  DISTRICT TERRITORY.  (a)  The district is composed of the territory described by Section 3, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, as that territory may have been modified under:

     (1)  Section 3818.106, or its predecessor, Section 13, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987;

     (2)  Subchapter J, Chapter 49, Water Code; or

     (3)  other law.

(b)  The boundaries and field notes of the district contained in Section 3, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, form a closure.  A mistake made in the field notes or in copying the field notes in the legislative process does not affect:

     (1)  the organization, existence, or validity of the district;

     (2)  the right of the district 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 a bond;

     (3)  the right of the district to impose an assessment or a tax; or

     (4)  the legality or operation of the district or the board.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 4; New.)

Source Law

Sec. 4.  The legislature finds that the boundaries and field notes of the district form a closure.  If any mistake is made in the field notes or in copying the field notes in the legislative process, it in no way affects the organization, existence, and validity of the district, or the right of the district to issue any type of bonds or refunding bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds, or the right of the district to levy and collect assessments or taxes, or in any other manner affects the legality or operation of the district or its governing body.

Revisor's Note

(1)  The revision of the law governing the district does not revise the statutory language describing the territory of the district to avoid the lengthy recitation of the description and because that description may not be accurate on the effective date of the revision or at the time of a later reading.  For the reader's convenience, the revised law includes a reference to the statutory description of the district's territory and references to statutory authority to change the district's territory under Section 13, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987 (revised in this chapter as Section 3818.106), and under Subchapter J, Chapter 49, Water Code (applicable to the district under Sections 49.001(a) and 49.002, Water Code).  The revised law also includes a reference to the general authority of the legislature to enact other laws to change the district's territory.

(2)  Section 4, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the district's authority to "levy and collect" assessments or taxes.  Throughout this chapter, the revised law substitutes "impose" for "levy" or "levy and collect" because "impose" is the term generally used in Title 1, Tax Code, and includes the levying and collection of a tax, and in the context of this chapter is also synonymous with the levying of an assessment.

Revised Law

Sec. 3818.006.  APPLICABILITY OF OTHER LAW.  Except as otherwise provided, Chapter 375, Local Government Code, applies to the district.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 6(C).)

Source Law

(C)  Except as otherwise provided, Chapter 375, Local Government Code, applies to the district.  The district has the rights, powers, privileges, authority, and functions of a district created under Chapter 375, Local Government Code.

Revised Law

Sec. 3818.007.  LIBERAL CONSTRUCTION OF CHAPTER.  This chapter shall be liberally construed in conformance with the legislative findings and purposes stated in this chapter.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 5(C).)

Source Law

(C)  This Act shall be liberally construed in conformance with the legislative findings and purposes set forth herein.

[Sections 3818.008-3818.050 reserved for expansion]

SUBCHAPTER B.  BOARD OF DIRECTORS

Revised Law

Sec. 3818.051.  COMPOSITION; TERMS.  (a)  The district is governed by a board of 12 directors.

(b)  The commission appoints the directors to positions numbered 1 through 12.

(c)  Directors serve staggered four-year terms.

(d)  The commission shall attempt to appoint directors 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.  (Acts 70th Leg., R.S., Ch. 1026, Secs. 8(A), (C) (part), (G) (part).)

Source Law

Sec. 8.  (A) The district is governed by a board of 12 directors appointed to positions numbered 1-12. Directors serve for staggered terms of four years except as otherwise provided by this section.

(C)  … Directors shall be appointed by the Texas Water Commission for four-year terms.

(G)  …  The commission shall attempt to appoint directors 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… .

Revisor's Note

(1)  Section 8(B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, names the initial board of directors.  The revised law omits the language as executed.  The omitted law reads:

(B)  At the time this Act takes effect, the following persons shall constitute the initial board of directors of the district and shall serve as provided herein:

     (1)  Giorgio Borlenghi

     (2)  John Breeding

     (3)  Raymond Brochstein

     (4)  Jose A. Gross

     (5)  Wm. James Miller

     (6)  Mrs. Jerry J. Moore

     (7)  J. Howard Rambin III

     (8)  Robert T. Sakowitz

     (9)  Louis S. Sklar

     (10)  John P. Sutherland

     (11)  Tim Throckmorton

(2)  Section 8(C), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides ending dates for the terms of the initial directors.  The revised law omits the language as executed.  The omitted law reads:

(C)  The Texas Water Commission shall appoint a director to fill position 12, and that director shall serve until June 1, 1993.  Of the other initial directors, two directors shall serve until June 1, 1988, three directors shall serve until June 1, 1989, three directors shall serve until June 1, 1990, and three directors shall serve until June 1, 1991… .

(3)  Section 8(G), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the "commission," meaning the "Texas Water Commission" referred to by Section 8(C).  The revised law defines "commission" as the "Texas Commission on Environmental Quality" to reflect a change in the agency's name.  The name of the Texas Water Commission was changed to the Texas Natural Resource Conservation Commission by Section 1.085, Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991.  The name of the Texas Natural Resource Conservation Commission was changed to the Texas Commission on Environmental Quality by Section 18.01, Chapter 965, Acts of the 77th Legislature, Regular Session, 2001.

Revised Law

Sec. 3818.052.  QUALIFICATIONS FOR OFFICE.  (a)  Except as provided by Subsection (b), a director must meet the requirements provided by Section 375.063, Local Government Code.

(b)  A tenant of a person who qualifies under Sections 375.063(2)-(4), Local Government Code, is not qualified to serve as a director under this chapter, except that the tenant is qualified to serve as a director in position 8 or 12 if the tenant:

     (1)  leases property in the district for an initial term of 10 years or more; or

     (2)  is an employee, stockholder, or owner of a beneficial interest in an entity having a lease that qualifies under Subdivision (1).

(c)  A person who owns a partnership interest, whether general or limited, or who has a lease with a remaining term of 30 years or more, excluding options, is considered to be an owner of land for purposes of this chapter.

(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.  (Acts 70th Leg., R.S., Ch. 1026, Secs. 8(D), (E), (F), (K).)

Source Law

(D)  Except as provided by Subsection (E) of this section, to be qualified to serve as a director a person must be at least 18 years old and:

     (i)  a resident;

     (ii)  an owner of property in the district;

     (iii)  an owner of stock (whether beneficial or otherwise) or a corporate owner of property in the district;

     (iv)  an owner of a beneficial interest in a trust that owns property in the district; or

     (v)  an agent or employee of (ii) through (iv) above.

(E)  A person is qualified to serve as a director in position 8 or 12 if the person leases property in the district for an initial term of 10 years or more, or the person is an employee, stockholder, or owner of a beneficial interest in an entity having such a lease.

(F)  A person or entity that owns a partnership interest (whether general or limited) or who has a lease with a remaining term of 30 years or more (excluding options) shall be deemed to be an owner of land for purposes of the Act.

(K)  A person that qualifies to serve on the board of directors under Subsection (D) or (E) of this section shall be qualified to serve as a director and participate in all votes pertaining to the business of the district regardless of any statutory provision to the contrary.

Revisor's Note

(1)  Section 8(D), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides specific requirements that a person must meet to be qualified to serve as a director.  The revised law substitutes a reference to Section 375.063, Local Government Code,  because Section 8(D) is substantively the same as that section except that under Section 375.063, certain tenants are qualified to serve as a director.  The revised law is drafted to reflect that difference.

(2)  Section 8(F), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to a "person or entity."  The revised law omits the reference to "entity" because Section 311.005, Government Code (Code Construction Act), applicable to the revised law, defines "person" to include "entity."

(3)  Section 8(K), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that certain persons are qualified to serve as directors "regardless of any statutory provision to the contrary."  The revised law omits the quoted language because the provision necessarily supersedes conflicting statutory criteria previously enacted by the legislature.  See also Sections 311.025 and 311.026, Government Code (Code Construction Act), which govern the interpretation of the revised law in instances of apparent conflict with other laws.

Revised Law

Sec. 3818.053.  QUORUM; CONCURRENCE OF DIRECTORS.  (a)  Seven directors constitute a quorum of the board for district purposes.

(b)  Except as provided by Subsection (c), the concurrence of six directors is required for any official action of the district.

(c)  The concurrence of eight directors is required to:

     (1)  authorize the issuance of bonds; or

     (2)  impose an assessment or tax.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 8(J).)

Source Law

(J)  Seven directors shall constitute a quorum for the consideration of matters pertaining to the purposes of the district, and a concurrence of six directors shall be required for any official action of the district; however, a concurrence of eight directors is required to authorize the issuance of bonds, and to levy assessments or taxes.

Revised Law

Sec. 3818.054.  VACANCY.  The commission by appointment shall fill a vacancy on the board.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 8(G) (part).)

Source Law

(G)  A vacancy in the office of director shall be filled by appointment of the commission. …

Revised Law

Sec. 3818.055.  REMOVAL OF DIRECTOR.  The commission may remove a director for misconduct or failure to carry out the director's duties after a petition by a majority of the other directors.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 8(G) (part).)

Source Law

(G)  …  The commission may remove a director for misconduct or failure to carry out his duties upon petition by a majority of the remaining directors.

Revisor's Note

(End of Subchapter)

(1)  Section 8(H), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that each director shall execute a bond and take an oath of office and that the bond and oath of office shall be filed with the district.  The revised law omits the provision requiring directors to take an oath of office because Section 1, Article XVI, Texas Constitution, requires all officers to take the oath before assuming office.  The revised law omits the provisions relating to the bond and the filing of the bond and oath because those provisions duplicate Section 375.067, Local Government Code.  The omitted law reads:

(H)  As soon as practicable after a director is appointed, he shall execute a bond for $10,000 payable to the district and conditioned on the faithful performance of his duties.  All bonds of the directors shall be approved by the board, and each director shall take the oath of office prescribed by the constitution for public officers.  The bond and oath shall be filed with the district and retained in its records.

(2)  Section 8(I), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for the organization of the board by the election of officers.  The revised law omits that subsection because it duplicates Section 375.068, Local Government Code.  The omitted law reads:

(I)  After the directors have been appointed and have qualified by executing a bond and taking the proper oath, they shall organize by electing a president, a vice-president, a secretary, and any other officers as in the judgment of the board are considered necessary.

[Sections 3818.056-3818.100 reserved for expansion]

SUBCHAPTER C. POWERS AND DUTIES

Revised Law

Sec. 3818.101.  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 Subchapter D, 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 conditions of the board of directors of a local government corporation created under Chapter 431, Transportation Code.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7B.)

Source Law

Sec. 7B.  (A)  The board of directors by resolution may authorize the creation of a nonprofit corporation to assist and act on behalf of the district in implementing a project or providing a service authorized by this Act.

(B)  The board of directors of the district shall appoint the board of directors of a nonprofit corporation created under this section.  The board of directors of the nonprofit corporation serves in the same manner as, for the same term as, and on the conditions of the board of directors of a local government corporation created under Chapter 431, Transportation Code.

(C)  A nonprofit corporation created under this section has the powers of, and is considered for purposes of this Act to be, a local government corporation created under Subchapter D, Chapter 431, Transportation Code.

(D)  A nonprofit corporation created under this section may implement any project and provide any services authorized by this Act.

Revised Law

Sec. 3818.102.  AGREEMENTS; GRANTS.  (a)  The district may make a contract, lease, or other agreement with, or accept a grant or loan from, any person to carry out a purpose of this chapter on the terms and conditions and for the period of time determined by the board.

(b)  A person may contract with the district to carry out the purposes of this chapter.  (Acts 70th Leg., R.S., Ch. 1026, Secs. 5A(D), 14.)

Source Law

(D)  The district is authorized to make contracts, leases, and agreements with, and accept grants and loans from, the United States of America, the state, municipalities, other political subdivisions, and private persons or entities to carry out the purposes of this Act upon such terms and conditions and for such period of time as the governing body of the district may determine.

Sec. 14.  The district is authorized to contract with a city, county, other political subdivision, corporation, or other persons to carry out the purposes of this Act upon such terms and conditions and for such period of time as the governing body may determine.  A state agency, city, county, other political subdivision, corporation, individual, or other entity may contract with the district to carry out the purposes of this Act without any further authorization, notwithstanding any other law or charter provisions to the contrary.

Revisor's Note

(1)  Section 5A(D), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to "the United States of America, the state, municipalities, other political subdivisions, and private persons or entities."  Section 14, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to a "city, county, other political subdivision, corporation, individual," and a "state agency."  Throughout this chapter, the revised law omits references to "the United States of America," "the state," "municipality," "city," "county," "political subdivision," "corporation," "individual," and a "state agency" in this context because Section 311.005, Government Code (Code Construction Act), applicable to the revised law, defines "person" to include any legal entity.

(2)  Section 14, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that certain entities may contract with the district "notwithstanding any other law or charter provisions to the contrary."  The revised law omits the quoted language for the reason stated in Revisor's Note (3) to Section 3818.052.

Revised Law

Sec. 3818.103.  USE OF CONDUITS.  (a)  The district may:

     (1)  finance, acquire, construct, improve, operate, maintain, or charge a fee for the use of its own conduits for fiber-optic cable, electronic transmission lines, or other types of transmission lines and supporting facilities; or

     (2)  finance, acquire, construct, improve, operate, or maintain conference centers and supporting facilities.

(b)  This section does not authorize the district to require a person to use a conduit authorized by this section.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7C.)

Source Law

Sec. 7C.  (a)  The district may:

     (1)  finance, acquire, construct, improve, operate, maintain, or charge fees for the use of its own conduits for fiber-optic cable, electronic transmission lines, or other types of transmission lines and supporting facilities; or

     (2)  finance, acquire, construct, improve, operate, or maintain conference centers and supporting facilities.

(b)  Nothing in this section grants the district any authority to require a person to use the conduits authorized by this section.

Revised Law

Sec. 3818.104.  REGULATION OF SIGNS.  The board by rule may regulate signs in the district.  The board may require the removal of a sign that does not conform to a rule adopted under this section.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(Y).)

Source Law

(Y)  The board of directors by rule may regulate signs in the district.  The board may require the removal of a sign that does not conform to a rule adopted under this subsection.

Revised Law

Sec. 3818.105.  EXCLUSION OF TERRITORY; HEARING.  (a)  At any time, the board may on its own motion call a hearing on the question of the exclusion of land from the district as provided by Chapter 49, Water Code, if the exclusion is practicable, just, or desirable.

(b)  The board shall call a hearing on the exclusion of land or other property from the district if, before the issuance of bonds has been authorized, a property owner in the district files a written petition with the secretary of the board.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 10.)

Source Law

Sec. 10.  (A)  At any time, the board may on its own motion call a hearing on the question of the exclusion of land from the district as provided in Chapter 54 of the Water Code, if the exclusions are practicable, just, or desirable.

(B)  The board must call a hearing on the exclusion of land or other property from the district on the written petition of any landowner or property owner in the district filed with the secretary of the board before the issuance of bonds has been authorized.

Revisor's Note

(1)  Section 10(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the provisions in Chapter 54, Water Code, relating to the exclusion of land from a district.  Sections 54.701-54.727, Water Code, which provided for the annexation or exclusion of territory by a municipal utility district, were repealed by Section 43, Chapter 715, Acts of the 74th Legislature, Regular Session, 1995.  Section 2 of that act added Chapter 49, Water Code, including Subchapter J of that chapter, which now provides for the annexation or exclusion of territory by certain districts, including a municipal utility district.  The revised law is drafted accordingly.

(2)  Section 10(B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to a "landowner or property owner."  The revised law omits the reference to "landowner" because that term is included in the meaning of "property owner."

Revised Law

Sec. 3818.106.  ANNEXATION. (a)  Subject to the approval of the governing body of the City of Houston the district may:

     (1)  annex territory in accordance with Subchapter J, Chapter 49, Water Code; or

     (2)  annex territory located inside the boundaries of a reinvestment zone created under Chapter 311, Tax Code, as those boundaries existed on September 1, 2001.

(b)  The district may annex territory described by Subsection (a)(2) only if:

     (1)  the district holds a public hearing on the proposed annexation and publishes notice in the district not later than the 15th day before the date of the hearing; and

     (2)  a majority of the qualified voters of the territory that the district proposes to annex voting at an election held within that territory approve:

          (A)  the annexation;

          (B)  the assumption of the bonds, notes, obligations, taxes, and special assessments created before the annexation of the area to the district; and

          (C)  the assumption of the bonds of the district payable wholly or partly from taxes or special assessments that have been voted previously but not yet issued or sold and the imposition of an ad valorem tax or special assessment on all taxable property within the annexed area for the payment of the bonds.

(c)  If the voters approve each proposition under Subsection (b)(2), the board may adopt an order adding the annexed territory to the district.

(d)  An election under Subsection (b) must be held and notice must be given in the territory that the district proposes to annex in the same manner as provided for a bond election held by the district.  The district may hold an election to annex territory on the same day as another district election.

(e)  The board may:

     (1)  call an election to annex territory by a separate election order or as a part of another election order;

     (2)  submit multiple purposes in a single proposition at an election; or

     (3)  order multiple elections to annex the same territory.

(f)  The district may annex defined areas of land, regardless of whether the areas are contiguous to the district.

(g)  An annexed area shall bear that area's pro rata share of all bonds, notes, or other obligations, taxes, or special assessments that may be owed, contracted for, or authorized by the district.

(h)  The election, notice, and hearing requirements imposed by Subsections (b)-(g) do not apply to an annexation under Subsection (a)(1).  (Acts 70th Leg., R.S., Ch. 1026, Sec. 13.)

Source Law

Sec. 13.  (A)  The district may, subject to the approval of the governing body of the City of Houston, Texas:

     (1)  annex territory in accordance with Subchapter J, Chapter 49, Water Code; or

     (2)  annex territory located inside the boundaries of a reinvestment zone created under Chapter 311, Tax Code, as those boundaries exist on September 1, 2001, as provided by this section.

(B)  The district may annex territory under Subsection (A)(2) only if:

     (1)  the district holds a public hearing on the proposed annexation and publishes notice in the district not later than the 15th day before the date of the hearing; and

     (2)  a majority of the qualified voters of the area that the district wants to annex, voting at an election called and held within the area that the district wants to annex:

          (a)  approve the annexation;

          (b)  approve the assumption of the bonds, notes, obligations, taxes, and special assessments created before the annexation of the area to the district; and

          (c)  approve the assumption of the bonds of the district payable wholly or partly from taxes or special assessments that have been voted previously but not yet issued or sold and the levy of an ad valorem tax or special assessment on all taxable property within the annexed area for the payment of the bonds.

(C)  If, at an election held under Subsection (B), the voters approve each proposition, the board of directors may adopt an order adding the annexed territory into the district.

(D)  If the board of directors orders an election to be held under Subsection (B), the election must be held and notice must be given in the area that the district wants to annex as provided for a bond election held by the district.  The district may hold an election to annex territory on the same day as any other district election.  The board may call an election to annex territory by a separate election order or as a part of any other election order.  The board may submit multiple purposes in a single proposition at an election.  The board may order multiple elections to annex the same territory.

(E)  The district may annex defined areas of land, regardless of whether the areas are contiguous to the district.

(F)  An annexed area shall bear the area's pro rata share of all bonds, notes, or other obligations, taxes, or special assessments that may be owed, contracted for, or authorized by the district.

(G)  The election, notice, and hearing requirements imposed by this section do not apply to an annexation under Subchapter J, Chapter 49, Water Code.

Revisor's Note

Section 13, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to an election "called and held" within the territory that the district wants to annex.  The revised law omits "called" because, in this context, "calling" an election is included within the meaning of "holding" an election.  Under Chapter 3, Election Code, all elections must be ordered (called) before they may be held.

Revised Law

Sec. 3818.107.  DATE OF ELECTIONS.  An election held in the district is not required to be held on a uniform election date provided by Section 41.001, Election Code.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 11(C).)

Source Law

(C)  Elections held within the district are not required to be held on the uniform election dates specified in Section 41.001 of the Election Code.

Revised Law

Sec. 3818.108.  APPROVAL OF CERTAIN IMPROVEMENT PROJECTS.  The district must obtain approval from the governing body of the City of Houston and the department of planning of the City of Houston of the plans and specifications of any improvement project that involves the use of a right-of-way of a street, road, or highway or the use of municipal land.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 9 (part).)

Source Law

Sec. 9.  . . .  The district must obtain approval from the governing body of the city of Houston and the department of planning of the city of Houston of the plans and specifications of any improvement project that involves the use of the rights-of-ways of streets, roads, or highways or the use of municipal land… .

Revisor's Note

(End of Subchapter)

Section 6(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that the district has general powers and duties under certain provisions of general law and under Chapter 1026.  The revised law omits that section because it duplicates Section 375.091, Local Government Code, which provides the general powers of municipal management districts.  Section 6(A) refers to Article 6674r-1, Vernon's Texas Civil Statutes.  That article was codified as Chapter 441, Transportation Code, and is referenced in Section 375.091, Local Government Code.  The omitted law reads:

Sec. 6.  (A)  The district has all of the rights, powers, privileges, authority, and functions conferred by the general laws of this state applicable to conservation and reclamation districts created under Article XVI, Section 59, of the Texas Constitution and road districts and road utility districts created pursuant to Article III, Section 52, of the Texas Constitution, including those conferred by Chapter 54 of the Water Code and Chapter 13, Acts of the 68th Legislature, 2nd Called Session, 1984 (Article 6674r-1, Vernon's Texas Civil Statutes), together with the additional rights, powers, privileges, authority, and functions contained in this Act.

[Sections 3818.109-3818.150 reserved for expansion]

SUBCHAPTER D.  PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Revised Law

Sec. 3818.151.  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)  Except as provided by Section 3818.154(c), the district may acquire, construct, or develop a mass transit improvement or facility under Subsection (a) only if a petition is filed with the district that requests the improvement or facility.  The petition must be executed by owners of property representing a majority in value or a majority in square footage of the real property in the district that abuts the right-of-way in which the improvement or facility 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 computed on a block-by-block basis.  (Acts 70th Leg., R.S., Ch. 1026, Secs. 5A(A), (C) (part).)

Source Law

Sec. 5A.  (A)  The district shall have the power to 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.  Before the district may acquire, construct, or develop a mass transit improvement or facility pursuant to this subsection, there must be filed with the district a petition requesting the improvement or facility executed by owners representing either a majority in value or a majority in square footage of the real property in the district abutting the right-of-way in which the improvement or facility is proposed to be located.  The calculation of the property owners signing the petition, whether based on value or square footage, shall be based on the landowners along the entire right-of-way of the transit project and shall not be calculated on a block by block basis.

(C)  …  Notwithstanding this subsection, a petition is required as provided in Subsection (A) of this section before the district may construct transit improvements.

Revised Law

Sec. 3818.152.  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 or a system of parking facilities, including:

     (1)  lots, garages, parking terminals, or other structures or accommodations for parking motor vehicles off the streets; and

     (2)  equipment, entrances, exits, fencing, and other accessories necessary for safety and convenience in parking vehicles.

(b)  A parking facility of the district must be leased to or operated for the district by an entity other than the district.

(c)  The district's parking facilities serve a public purpose under Section 3818.003 and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years.

(d)  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.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 5A(B).)

Source Law

(B)  The district shall have the power to acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities. Parking facilities include lots, garages, parking terminals, or other structures or accommodations for the parking of motor vehicles off the streets and include equipment, entrances, exits, fencing, and other accessories necessary for safety and convenience in the parking of vehicles.  All parking facilities of the district will either be leased to or operated for the district by a private entity or an entity other than the district.  The district's parking facilities will serve the public purposes expressed in Section 1 of this Act and be owned, used, and held for public purposes even if leased or operated by a private entity for a term of years, and the district's public parking facilities and any lease to a private entity will be exempt from the payment of ad valorem taxes and state and local sales and use taxes.

Revisor's Note

Section 5A(B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to a "private entity or an entity other than the district."  The revised law omits the reference to "private entity" because that term is included in the meaning of "an entity other than the district."

Revised Law

Sec. 3818.153.  RULES FOR TRANSIT OR PARKING SYSTEM.  (a)  The district may adopt rules covering its public transit system and its public parking system.

(b)  Rules adopted under this section that relate to or affect the use of the public right-of-way or a requirement for off-street parking are subject to all applicable municipal charter, code, and ordinance requirements.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 5A(C) (part).)

Source Law

(C)  …  The district may adopt rules and regulations covering its public transit system and its public parking system provided, however, that any rules relating to or affecting the use of the public right-of-way or requirements for off-street parking shall be subject to all applicable municipal charter, code, and ordinance requirements. …

Revisor's Note

Section 5A(C), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to "rules and regulations."  The revised law omits the reference to "regulations" because under Section 311.005(5), Government Code (Code Construction Act), a rule is defined to include a regulation.

Revised Law

Sec. 3818.154.  PAYING COST OF PUBLIC TRANSIT SYSTEM OR PARKING FACILITIES.  (a)  The district may use any of its resources, including revenue, assessments, taxes, or grant or contract proceeds, to pay the cost of acquiring or operating a public transit system or a system of public parking facilities.

(b)  The district may:

     (1)  set, charge, impose, and collect fees, charges, or tolls for the use of the public transit system or the public parking facilities; and

     (2)  issue bonds or notes to finance the cost of these facilities.

(c)  If the district pays for or finances the cost of acquiring and operating a public transit system or a system of public parking facilities with resources other than assessments, a petition of property owners or public hearing is not required.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 5A(C) (part).)

Source Law

(C)  The district may use any of its resources, including revenues, assessments, taxes, and grant or contract proceeds, to pay the cost of acquiring and operating a public transit system or a system of public parking facilities.  …  The district may set and determine and the district may charge, impose, levy, and collect fees, charges, and 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.  If the district pays for or finances the cost of acquiring and operating a public transit system or a system of public parking facilities with resources other than assessments, then no petition of property owners or public hearing thereon is required, … .

Revisor's Note

Section 5A(C), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the district's authority to "set and determine" fees, charges, and tolls.  The revised law omits "determine" because "determine" is included in the meaning of "set."

Revised Law

Sec. 3818.155.  PAYMENT INSTEAD OF TAXES TO OTHER TAXING UNITS.  If the district's acquisition of property for a parking facility that is leased to or operated by a private entity results in removing from a taxing unit's tax rolls 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 instead 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.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 5A(E).)

Source Law

(E)  If the district's acquisition of property for a parking facility which 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 levied 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 3818.156-3818.200 reserved for expansion]

SUBCHAPTER E.  FINANCIAL PROVISIONS

Revised Law

Sec. 3818.201.  NOTICE AND HEARING REQUIRED.  The board may finance a service or improvement project under this chapter 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.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(D) (part).)

Source Law

(D)  Services and/or improvement projects may be financed under this Act after notice of the hearing has been given as required by this section and the board of directors of the district holds a public hearing on the advisability of the improvements and/or services and the proposed assessments. …

Revised Law

Sec. 3818.202.  NOTICE OF HEARING.  (a)  Except as provided by this section, notice of a hearing on financing improvement projects or services shall be given as provided by Section 375.115, Local Government Code.

(b)  The final publication must be made:

     (1)  not later than the 15th day before the date of the hearing; and

     (2)  in a newspaper of general circulation in each county in which the district is located.

(c)  Written notice required by Section 375.115(c), Local Government Code, must be made not later than the 15th day before the date of the hearing.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(E) (part).)

Source Law

(E)  Notice of the hearing shall be given in a newspaper of general circulation in the county or counties in which the district is located.  The final publication must be at least 15 days before the date of the hearing.  The notice shall include the following information:

     (i)  the time and place of the hearing;

     (ii)  the general nature of the proposed improvement project and/or services;

     (iii)  the estimated cost of the improvement, which may include interest during construction and financing costs associated therewith; and

     (iv)  the proposed method of assessment.

          (1)  Written notice containing the information required in this section shall be mailed (registered or certified with a return receipt requested) at least 15 days before the hearing to each property owner in the district proposed to be assessed to the current address of the subject property as reflected on the tax rolls.

          … .

Revisor's Note

Section 7(E), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides specific requirements for providing notice of a hearing on financing improvement projects or services.  The revised law substitutes a reference to Section 375.115, Local Government Code, because Section 7(E) is substantively the same as that section, except that Section 375.115 requires 30 days' notice and Section 7(E) requires only 15 days' notice.  The revised law is drafted to reflect that difference.

Revised Law

Sec. 3818.203.  HEARING PROCEDURE.  (a)  The board may appoint a director, a district employee, or any other person as hearings examiner to conduct hearings required by the board.

(b)  A hearing under this subchapter shall be conducted in the manner provided for contested cases under Chapter 2001, Government Code.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(E) (part).)

Source Law

(E)  …

          (4)  The board may appoint a member of the board, a district employee, or any other person as hearings examiner to conduct hearings as required by the board.  The hearing shall be conducted as provided by the Administrative Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas Civil Statutes) for contested cases… .

Revisor's Note

(1)  Section 7(E)(4), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the provisions for contested cases in the Administrative Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas Civil Statutes).  Those provisions were codified in 1993 as part of Chapter 2001, Government Code.  The revised law is drafted accordingly.

(2)  Section 7(E)(2), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides certain hearing procedures.  The revised law omits this provision because it is substantively the same as Section 375.116, Local Government Code.  The omitted law reads:

(E)  …

          (2)  The hearing may be adjourned from time to time until the board of directors makes findings by resolution or order as to the advisability of the improvement project and/or services, the nature of the improvement and/or services, the estimated cost, the area benefited, and the method of assessment.

          …

Revised Law

Sec. 3818.204.  PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENT PROJECTS.  (a)  Except as provided by Section 3818.154(c) or 3818.205, the board may not finance a service or improvement project under this chapter 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 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, excluding roads, streets, highways, and utility rights-of-way, based on the most recent certified county tax appraisal roll.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(D) (part).)

Source Law

(D)  . . .  The board of directors of the district may not finance services and/or improvement projects under this Act unless a written petition requesting such improvements and/or services signed by (1)  the owners of 50 percent of the assessed value of the property in the district based on the most recent certified county property tax rolls, or (2)  the owners of 50 percent or more of the surface area of the district (excluding roads, streets, highways, and utility rights-of-way) based on the most recent certified county property tax rolls has been filed with the board of directors.

Revisor's Note

Section 7(D), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the "county property tax rolls."  Throughout this chapter, the revised law substitutes a reference to the "county tax appraisal roll" to conform to the terminology of Title 1, Tax Code, including Section 26.01 of that code, requiring the chief appraiser of an appraisal district to certify to the tax assessor of each taxing unit that has property in the appraisal district an appraisal roll that lists the properties taxable by that taxing unit and the value of those properties.

Revised Law

Sec. 3818.205.  PETITION OR PUBLIC HEARING NOT REQUIRED FOR PROVISION OF CERTAIN SERVICES AND IMPROVEMENTS.  A petition of property owners or a public hearing is not required for the provision of a service or improvement by the district if that service or improvement is not paid for or financed with assessments.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 5A(C) (part).)

Source Law

(C)  … just as no petition of property owners and public hearing thereon is required for the provision of all other district services and improvements not paid for or financed with assessments… .

Revised Law

Sec. 3818.206.  AUTHORITY TO IMPOSE AD VALOREM TAXES, ASSESSMENTS, AND IMPACT FEES.  (a)  The district may impose an ad valorem tax, assessment, or impact fee as provided by 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.

(b)  The petition must be signed by:

     (1)  the owners of 50 percent or more of the assessed value of the property in the district as determined from the most recent certified county tax appraisal roll; or

     (2)  25 owners of property in the district, if more than 25 persons own property in the district as determined by the most recent certified county tax appraisal roll.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7A(A).)

Source Law

Sec. 7A.  (A)  The district may impose an ad valorem tax, assessment, or impact fee in accordance with Chapter 375, Local Government Code, to provide improvements or services for a project or activity the district is authorized to acquire, construct, improve, or provide under this Act, if a written petition has been filed with the board of directors, requesting those improvements or services, signed by:

     (1)  the owners of 50 percent or more of the assessed value of the property in the district as determined from the most recent certified county property tax rolls; or

     (2)  25 owners of property in the district, if there are more than 25 persons who own property in the district as determined by the most recent certified county property tax rolls.

Revised Law

Sec. 3818.207.  UTILITY PROPERTY EXEMPT FROM ASSESSMENTS AND IMPACT FEES.  The district may not impose an assessment or impact fee 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 cable system as defined by Section 602, Communications Act of 1934 (47 U.S.C. Section 522), as amended.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7A(B).)

Source Law

(B)  The district may not impose an impact fee or assessment on the property, equipment, rights-of-way, facilities, or improvements of:

     (1)  an electric utility or a power generation company, as those terms are defined by Section 31.002, Utilities Code; or

     (2)  a gas utility, as that term is defined by Section 101.003 or 121.001, Utilities Code; or

     (3)  a telecommunications provider, as that term is defined by Section 51.002(10), Utilities Code; or

     (4)  a cable system, as that term is defined by the Communications Act of 1934, as amended, Title VI, Sec. 602, Subsection 7.

Revised Law

Sec. 3818.208.  BONDS; APPROVAL BY CITY OF HOUSTON.  (a)  Except as provided by Subsection (b), the district must obtain the approval of the director of public works of the City of Houston for the issuance of bonds for any improvement project.

(b)  If the district obtains approval from the governing body of the City of Houston 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.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 9 (part).)

Source Law

Sec. 9.  The district must obtain the approval of the director of public works of the issuance of bonds for any improvement project.  In lieu of approval of bonds by the director of public works of the city of Houston, the district may obtain approval from the governing body of the city of Houston of a capital improvements budget, for a period not to exceed five years.  In the event the district obtains approval of a capital improvements budget, it may finance any capital improvements and issue bonds specified in the budget without further approval from the city of Houston… .

Revisor's Note

Section 9, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides in part that unless the City of Houston dissolves the district, the city is not required to pay any bonds, notes, or other obligations of the district.  The revised law omits this provision because it duplicates Sections 375.207(d) and 375.263, Local Government Code.  The omitted law reads:

Sec. 9.  …  The city of Houston shall never be obligated to pay any bonds, notes, or other obligations of the district, except as provided by Subsection (C) of Section 15 of this Act.

Revised Law

Sec. 3818.209.  PETITION REQUIRED FOR BOND ELECTION.   The board may not call a bond election unless a written petition has been filed with the board that requests an election and is signed by the owners of:

     (1)  50 percent or more of the assessed value of the property in the district based on the most recent certified county tax appraisal roll; or

     (2)  50 percent or more of the surface area of the district, excluding roads, streets, highways, and utility rights-of-way, based on the most recent certified county tax appraisal roll.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 11(D).)

Source Law

(D)  The board of directors may not call a bond election unless a written petition requesting such an election signed by the owners of 50 percent of the assessed value of the property in the district based on the most recent certified county property tax rolls at the time has been filed with the board of directors or the owners of 50 percent or more of the surface area of the district (excluding roads, streets, highways, and utility rights-of-way) based on the most recent certified county property tax rolls.

Revised Law

Sec. 3818.210.  ASSESSMENTS AND BOND LIMIT.  The board may not issue bonds or impose assessments that exceed 10 percent of the assessed value of the property in the district based on the most recent certified county tax appraisal roll.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 12(B).)

Source Law

(B)  The board of directors of the district may not issue bonds or levy assessments in excess of 10 percent of the assessed value of the property in the district based on the most recent certified county property tax rolls at the time.

Revised Law

Sec. 3818.211.  APPEAL OF ASSESSMENT.  A property owner may appeal the board's decision on an assessment to a district court that has jurisdiction in the district by filing notice of the appeal with the court not later than the 30th day after the date of the board's final decision.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(E) (part).)

Source Law

(E)  …

          (5)  …  The property owner may appeal the board's decision on the assessment to a district court having jurisdiction in the improvement district by filing notice of the appeal with the district court not later than the 30th day after the date of the board's final decision with respect to the assessment… .

Revised Law

Sec. 3818.212.  PAYMENT BY EXEMPT JURISDICTIONS.  Payment of assessments by exempt jurisdictions, if any, shall be established by contract.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 7(G).)

Source Law

(G)  Payment of assessments by exempt jurisdictions, if any, shall be established by contract.

Revisor's Note

(End of Subchapter)

(1)  Sections 7(A) and (B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, authorize the board to undertake certain improvement projects or services and to impose an assessment to pay the cost of the project or service.  Section 7(B) also provides that the district does not have the power of eminent domain.  Section 7(C), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that an improvement project on two or more streets or two or more types of projects may be considered as one project.  The revised law omits these sections because they duplicate provisions of Sections 375.094, 375.111, and 375.112, Local Government Code.  The omitted law reads:

Sec. 7.  (A)  In addition to the powers set forth in Section 6 of this Act, the board of directors of the district may undertake improvement projects and/or services that confer a special benefit on a definable part of the district, which may be the entire district or any part thereof.  The board of directors may levy and collect special assessments on property in the area, based on the benefit conferred by the improvement project and/or services, to pay all or part of its cost. …

(B)  An improvement project may include the construction, acquisition, improvement, relocation, operation, or maintenance of:

     (1)  landscaping; lighting, banners and signs; streets or sidewalks; pedestrian skywalks, crosswalks, or tunnels; drainage improvements; pedestrian malls; solid waste, water, sewer or power facilities, including, but not limited to, electrical, gas, steam, cogeneration, and chilled water facilities; parks, lakes, recreation, and scenic areas; fountains; articles of art; off-street parking facilities, bus terminals, heliports, mass-transit and people-mover systems; and the cost of any demolition in connection with providing any such improvement project;

     (2)  other improvements similar to those described in Subdivision (1) of this subsection;

     (3)  the acquisition of real property or any interest therein in connection with an authorized improvement in any manner authorized by Chapter 54 of the Water Code; provided, however, the district shall not have the power of eminent domain;

     (4)  special supplemental services for improvement and promotion of the district, including but not limited to advertising, promotion, health and sanitation, public safety, security, business recruitment, development, elimination of traffic congestion, recreation, and cultural enhancements; and

     (5)  expenses incurred in the establishment, administration, and operation of the district.

(C)  An improvement project on two or more streets or two or more types of improvements may be included in one proceeding and financed as one improvement project.

(2)  Section 7(E)(3), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that the area to be assessed may be the entire district or any part of the district.  Section 7(E)(3) also provides that the area to be assessed may not include property outside of the original boundaries unless there is an additional hearing, preceded by the required notice.  The revised law omits this provision because it duplicates Section 375.117, Local Government Code.  The omitted law reads:

(E)  …

          (3)  The area of the district to be assessed according to the findings of the board of directors may be the entire district or any part thereof and may be less than the area proposed in the notice of the hearing.  The area may not include any property not within the original proposed boundaries unless there is an additional hearing, preceded by the required notice.

          … .

(3)  Section 7(E)(4), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for the imposition of assessments.  The revised law omits this provision because it duplicates Section 375.118, Local Government Code.  The omitted law reads:

(E)  …

          (4)  …  At the hearing on proposed assessments, at any adjournment of the hearing, or after consideration of the hearings examiner's report the board of directors shall hear and pass on all objections to each proposed assessment.  The board directors may amend the proposed assessments as to any parcel.  When all objections have been heard and action has been taken with regard to them, the board of directors by order or resolution shall levy the assessments as special assessments on the property.  The board of directors by order or resolution shall specify the method of payment of the assessments and may provide that they be payable in periodic installments, including interest, which shall meet annual costs for services and improvements as set forth in Subsection (F) of this section and shall continue for the number of years required to retire indebtedness or pay for the services to be rendered.  The board may provide interest charges or penalties for untimely payment and may also levy any amount to cover delinquencies and expenses of collection.  The board of directors shall also set forth a procedure for the distribution or use of any assessments, if any, in excess of those needed to finance the improvement project for which such assessments were collected.  If assessments are levied for more than one service or improvement project, the board may provide that an assessment collected for one service or improvement project may be borrowed to be used for another service or improvement project.

          … .

(4)  Section 7(F), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for the apportionment of the cost of an improvement project or service.  The revised law omits this provision because it duplicates Section 375.119, Local Government Code.  The omitted law reads:

(F)  The portion of the cost of an improvement project and/or services to be assessed against the property in the district shall be apportioned by the board of directors based on the special benefits accruing to the property because of the improvement and/or services.  The cost may be assessed equally per front foot or per square foot of land area against all property within the district; it may be assessed against property according to the value of the property as determined by the board of directors, with or without regard to structures or other improvements on the property; or it may be assessed on the basis of any other reasonable assessment plan that results in imposing equal shares of the cost on property similarly benefited.

(5)  Sections 7(E)(5) and 7(K), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provide for the appeal of an assessment by a property owner and reassessment by the board.  The revised law omits these provisions because they duplicate Section 375.123, Local Government Code.  The omitted law reads:

(E)  …

          (5) After adoption of an assessment, a property owner may appeal the assessment to the board.  The property owner must file a notice of appeal with the board not later than the 30th day after the date that the assessment is adopted.  The board shall set a date to hear the appeal… .  Failure to file either of the notices in the time required by this subsection results in a loss of the right to appeal the assessment.

(K)  If an assessment against a parcel of land is set aside by a court of competent jurisdiction, found excessive by the board of directors, or determined to be invalid by the board of directors on the written advice of counsel, the board of directors may make a reassessment or new assessment as to the parcel.

(6)  Section 7(H), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for the preparation of an assessment roll.  The revised law omits this provision because it duplicates Section 375.120, Local Government Code.  The omitted law reads:

(H)  When the total cost of an improvement and/or services is determined, the board of directors shall cause the assessments against each parcel of land within the district.  In case of an assessment for services the board may levy an annual assessment that may be lower but not higher than the initial assessment.  The board of directors shall also cause an assessment roll to be prepared showing the assessments against each property and the board's basis for the assessment.  The assessment roll shall be filed with the secretary of the board or other officer who performs the function of secretary and be open for public inspection.

(7)  Section 7(I), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for the interest on assessments and specifies the maximum interest rate.  Section 7(I) also provides that an assessment is a lien against property.  The revised law omits these provisions because they duplicate Section 375.121, Local Government Code.  The omitted law reads:

(I)  All assessments bear interest at a rate specified by the board of directors, if any, which may not exceed the interest rate permitted by Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).  Any interest on the assessment between the effective date of the order or resolution levying the assessment and the date the first installment is payable shall be added to the first installment.  The interest for one year on all unpaid installments shall be added to each subsequent installment until paid.  An assessment or any reassessment and any interest and penalties thereon is a lien against the property until it is paid.  The owner of any property assessed may pay the entire assessment against any lot or parcel with accrued interest to the date of the payment at any time.

(8)  Section 7(J), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, authorizes the board to make supplemental assessments.  The revised law omits that provision because it duplicates Section 375.122, Local Government Code.  The omitted law reads:

(J)  After notice and hearing in the manner required for original assessments, the board of directors may make supplemental assessments to correct omissions or mistakes in the assessment relating to the total cost of the improvement and/or services or to cover delinquencies or costs of collection.

(9)  Sections 7(L), (M), and (N), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provide for the authorized payment of improvement project or service costs from various district resources.  The revised law omits this provision because it duplicates Section 375.181, Local Government Code.  The omitted law reads:

(L)  The cost of any improvement project and/or services (including interest during construction and costs of issuance) made under the authority of this Act may be paid from general or available funds, from assessments, or from the proceeds of bonds payable from taxes, revenues, assessments, grants, gifts, contracts, leases, or any combination thereof.

(M)  During the progress of an improvement project and/or services the board of directors may issue temporary notes to pay the costs of the improvements and/or services and, on completion of the work, may issue bonds.

(N)  The costs of more than one improvement and/or services may be paid from a single issue and sale of bonds without other consolidation proceedings prior to the bond issue.

(10)  Section 7(O), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, authorizes the board to issue general obligation and revenue bonds.  The revised law omits this provision because it duplicates Section 375.201, Local Government Code.  The omitted law reads:

(O)  For the payment of all or part of the costs of an improvement project and/or services, the board of directors may issue bonds from time to time in one or more series to be payable from and secured by ad valorem taxes, assessments, revenues, grants, gifts, contracts, leases, or any combination thereof.  Bonds may be liens on all or part of the revenue derived from improvements authorized under this Act, including installment payments of special assessments or from any other source pledged to their payment.

(11)  Section 7(P), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, contains various provisions for the terms of district bonds.  The revised law omits these provisions because they duplicate Section 375.202, Local Government Code.  The omitted law reads:

(P)  Bonds may be issued to mature serially or otherwise within not more than 40 years from their date.  Provision may be made for the subsequent issuance of additional parity bonds or subordinate lien bonds under any terms or conditions that may be set forth in the order or resolution authorizing the issuance of the bonds.

(12)  Section 7(Q), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that bonds issued under Section 7 may be issued registrable as to principal or interest.  The revised law omits the provision because it duplicates Section 1201.024, Government Code.  That section applies to bonds issued under this chapter by the application of Section 1201.002, Government Code.  The omitted law reads:

(Q)  …  The bonds may be issued registrable as to principal alone or as to both principal and interest, and … .

(13)  Section 7(Q), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that bonds may be issued under Section 7 in various forms.  The revised law omits the provision because it duplicates general law.  Section 1201.021, Government Code, provides that the governing body of an issuer may issue bonds in any denomination.  Section 1201.022, Government Code, provides that a governmental entity may specify the terms under which a bond is issued.  "Conditions" and "details" are included within the meaning of "terms."  Section 1201.024, Government Code, provides that an issuer may specify the form of a bond it issues.  Sections 1201.021, 1201.022, and 1201.024, Government Code, apply to bonds issued by the district by application of Section 1201.002, Government Code.  The omitted law reads:

(Q)  [The bonds] … may be issued in such form, denominations, and manner, and under such terms, conditions, and details, and … .

(14)  Section 7(Q), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that all bonds and interest coupons are negotiable instruments that shall be executed.  The revised law omits this provision because it duplicates Section 1201.041, Government Code, which provides that all public securities are negotiable instruments.  Section 1201.041, Government Code, applies to bonds issued under this chapter by application of Section 1201.002, Government Code.  The revised law omits the reference to "interest coupons" because the coupons are issued as part of the bonds.  The reference to the requirement that the bonds be "executed" is omitted because bonds issued are executed.  The omitted law reads:

(Q)  The bonds and any interest coupons appertaining thereto are negotiable instruments within the meaning and for all purposes of the Business & Commerce Code. … [and] shall be executed, and … .

(15)  Section 7(Q), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that bonds may be redeemed before maturity.  The revised law omits the provision because Section 1201.021, Government Code, provides that a public security may be redeemed before maturity.  That section applies to bonds issued under this chapter by the application of Section 1201.002, Government Code.  The omitted law reads:

(Q)  The bonds … may be made redeemable prior to maturity, and … .

(16)  Section 7(Q), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides how bonds may be sold and priced, including interest.  The revised law omits the provision because it duplicates Section 1204.006(b), Government Code.  That section provides that an issuer may sell public securities at any price and bearing interest at any rate or rates and applies to bonds issued under this chapter by application of Section 1204.001, Government Code.  The omitted law reads:

(Q)  The bonds … may be sold in such manner, at such price, and under such terms, and said bonds shall bear interest at such rates, all as shall be determined and provided in the order or resolution authorizing the issuance of the bonds. …

(17)  The revised law omits as unnecessary that part of Section 7(Q), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, that provides that Chapter 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes), and Chapter 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), apply to bonds issued under that chapter.  Articles 717k, 717k-2, 717k-6, and 717q were revised in 1999 as Chapters 1207, 1204, 1201, and 1371, Government Code.  By application of Sections 1207.001, 1204.001, 1201.002, and 1371.001, Government Code, those chapters apply to bonds issued under  Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987.  It is unnecessary to include an express statement of the applicability of those chapters in this subchapter.  The omitted law reads:

(Q)  … Bonds may bear interest and may be issued in accordance with the provisions of Chapter 503, Acts of the 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas Civil Statutes), Chapter 3, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes), the Bond Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil Statutes), and Chapter 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).

(18)  Section 7(R), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for the use of bond proceeds.  The revised law omits this provision because it duplicates Section 375.202(e), Local Government Code.  The omitted law reads:

(R)  If so provided in the bond order or resolution, the proceeds from the sale of the bonds may be used for paying interest on the bonds during and after the period of the acquisition or construction of any improvement to be provided through the issuance of the bonds, for creating a reserve fund for the payment of the principal of and interest on the bonds, and for creating any other funds.  The proceeds of the bonds may be placed on time deposit or invested, until needed, all to the extent, in such securities and in the manner provided, in the bond order or resolution.

(19)  Section 7(S), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for payment of bonds from income or assessments from improvements.  The revised law omits this provision because it duplicates Section 375.203(a), Local Government Code.  The omitted law reads:

(S)  The board of directors may pledge all or any part of the income or assessments from improvements financed under this Act or from any other source, to the payment of the bonds, including the payment of principal, interest, and any other amounts required or permitted in connection with the bonds.  The pledged income shall be fixed and collected in amounts that will be at least sufficient, together with any other pledged resources, to provide for all payments of principal, interest, and any other amounts required in connection with the bonds, and, to the extent required by the order or resolution authorizing the issuance of the bonds, to provide for the payment of expenses in connection with the bonds, and for the payment of operation, maintenance, and other expenses in connection with the improvement projects authorized under this Act.

(20)  Section 7(U), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides for payment from grants or donations.  The revised law omits this provision because it duplicates Section 375.203(c), Local Government Code.  The omitted law reads:

(U)  The board of directors may also pledge to the payment of the bonds all or any part of any grant, donation, revenues, or income received or to be received from the United States government or any other public or private source, whether pursuant to an agreement or otherwise.

(21)  Section 7(T), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, states the forms of encumbrances that may be used to secure the bonds.  The revised law omits this provision because it duplicates Section 375.203(b), Local Government Code.  The omitted law reads:

(T) The bonds may be additionally secured by mortgages or deeds of trust on any real property relating to the facilities authorized under this Act owned or to be acquired by the district and by chattel mortgages, liens, or security interests on any personal property appurtenant to that real property.  The board of directors may authorize the execution of trust indentures, mortgages, deeds of trust, or other form of encumbrances to evidence the indebtedness.

(22)  Section 7(V), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, authorizes the district to issue refunding bonds for bonds issued under that section.  The revised law omits the provision because it has been superseded by other law.  In 1999 Chapter 1207, Government Code, codified V.A.C.S. Article 717k, enacted by Chapter 503, Acts of the 54th Legislature, Regular Session, 1955, and amended by Chapter 783, Acts of the 61st Legislature, Regular Session, 1969, and V.A.C.S. Article 717k-3, enacted by Chapter 784, Acts of the 61st Legislature, Regular Session, 1969.  Chapter 1207 applies to the district by application of Sections 1207.001 and 1207.002 and contains general authority for an issuer to issue refunding securities. Section 7(V) also provides procedures applicable to refunding bonds that are superseded by the procedures under Chapter 1207.  The omitted law reads:

(V)  Any bonds issued pursuant to this Act may be refunded or otherwise refinanced by the issuance of refunding bonds for that purpose, under any terms or conditions, as are determined by order or resolution of the governing body of the district.  Refunding bonds may be issued in amounts necessary to pay the principal, interest, and redemption premium, if any, of bonds to be refunded, at maturity or on any redemption date, and to provide for the payment of all costs incurred in connection therewith, and such refunding bonds shall be issued in the manner provided in this Act for other bonds.

(23)  Section 7(W), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, requires the district to deliver bonds it issues to the attorney general for examination and approval and provides that after approval the bonds shall be registered with the comptroller.  Section 7(W) also provides that after approval and registration, the bonds are incontestable.  The revised law omits these provisions as superseded by Chapter 1202, Government Code (enacted as Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987).  Section 1202.003(a), Government Code, requires bonds to be submitted to the attorney general.  Section 1202.003(b), Government Code, provides for approval of the bonds by the attorney general and requires the attorney general to submit the approved bonds to the comptroller for registration.  Section 1202.005, Government Code, requires registration of the bonds by the comptroller.  Section 1202.006, Government Code, provides that after approval and registration, the bonds are incontestable and binding obligations.  Chapter 1202, Government Code, applies to bonds issued under this chapter by application of Section 1202.001, Government Code.  The omitted law reads:

(W)  All bonds of the district and the appropriate proceedings authorizing their issuance shall be submitted to the attorney general for examination… .  If he finds that the bonds have been authorized and any assessment, contract, or lease has been made in accordance with law, he shall approve the bonds and the assessment, contract, or lease, and thereupon the bonds shall be registered by the comptroller of public accounts.  After approval and registration the bonds and any assessment, contract, or lease relating to them are incontestable in any court or other forum for any reason and are valid and binding obligations for all purposes in accordance with their terms.

(24)  Section 7(W), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, requires the district to submit certain documents to the attorney general if the district bonds are secured by a pledge of certain types of income.  The revised law omits that provision because it duplicates Section 375.205, Local Government Code.  The omitted law reads:

(W)  …  If the bonds recite that they are secured by a pledge of assessments, revenues, or rentals from a contract, or lease, a copy of the assessment procedures, contract, or lease and the proceedings relating to it shall be submitted to the attorney general also.  …

(25)  Section 7(X), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that bonds are authorized investments for certain entities.  The revised law omits that provision because it duplicates Section 375.206, Local Government Code.  The omitted law reads:

(X)  All bonds of the district are legal and authorized investments for all banks, trust companies, building and loan associations, savings and loan associations, insurance companies of all kinds and types, fiduciaries, trustees, and guardians, and for all interest and sinking funds and other public funds of the state and all agencies, subdivisions, and  instrumentalities of the state, including all counties, cities, towns, villages, school districts, and all other kinds and types of districts, public agencies, and bodies politic. …

(26)  Section 7(X), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that bonds issued under that chapter may secure deposits of public funds of the state and political subdivisions.  The revised law omits the provision as impliedly repealed by Section 404.0221, Government Code (enacted in 1995), which lists eligible collateral for the comptroller's deposits of state funds, and by Chapter 2257, Government Code (enacted in 1989 as Article 2529d, Vernon's Texas Civil Statutes), which governs eligible collateral for deposits of funds of other public agencies, including political subdivisions.  The omitted law reads:

(X)  …  The bonds also are eligible and lawful security for all deposits of public counties, cities, towns, villages, school districts, and all other kinds and types of districts, public agencies, and bodies politic, to the extent of the market value of the bonds, when accompanied by any unmatured interest coupons appurtenant thereto.

(27)  Section 11(E), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, requires an election to approve the issuance of bonds payable from taxes or assessments and authorizes without an election the issuance of bonds payable from other sources.  The revised law omits this provision because it duplicates Section 375.244, Local Government Code.  The omitted law reads:

(E)  Bonds payable in whole or in part from taxes or assessments shall not be issued unless approved at an election held for such purpose by a majority of the qualified voters in the district voting in the election or such larger percentage as may be required by the constitution.  Bonds payable from other sources may be issued by the board without their approval at an election.

[Sections 3818.213-3818.250 reserved for expansion]

SUBCHAPTER F.  DISSOLUTION

Revised Law

Sec. 3818.251.  APPLICABILITY OF OTHER LAW; EXCEPTION.  Subchapter M, Chapter 375, Local Government Code, applies to the district except that in determining the percentage of surface area under Section 375.262(2), Local Government Code, other public areas and other property exempt from assessment under Sections 375.161, 375.163, and 375.164 are not excluded.  (Acts 70th Leg., R.S., Ch. 1026, Sec. 15(B) (part).)

Source Law

(B)  The board of directors shall dissolve the district upon written petition filed with the board by … the owners of 75 percent or more of the surface area of the district (excluding roads, streets, highways, and utility rights-of-way) based on the most recent certified county property tax rolls; … .

Revisor's Note

Section 15, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides the dissolution procedures for the district.  Except for one substantive difference, these procedures duplicate the procedures contained in Subchapter M, Chapter 375, Local Government Code.  The revised law omits the duplicate law and substitutes a cross-reference to Subchapter M, Chapter 375, Local Government Code.  The revised law also clarifies the substantive difference between the source law and Section 375.262(2), Local Government Code.  Section 375.262(2), in determining the 75 percent or more of surface area of the district, excludes from the calculation "other public areas, and other property exempt from assessment under Sections 375.161, 375.163, and 375.164."  The source law does not exclude these areas.  The revised law is drafted to reflect this difference.  The omitted law reads:

Sec. 15.  (A)  The board of directors of the district may elect by majority vote to dissolve the district at any time; provided, however, the district may not be dissolved by the board of directors if the district has any outstanding bonded indebtedness until such bonded indebtedness has been repaid or defeased in accordance with the order or resolution authorizing the issuance of the bonds.

(B)  [The board of directors shall dissolve the district upon written petition filed with the board by] the owners of 75 percent of the assessed value of the property in the district based on the most recent certified county property tax rolls at the time or … ; provided, however, the district may not be dissolved by the board of directors if the district has any outstanding bonded indebtedness until such bonded indebtedness has been repaid or defeased in accordance with the order or resolution authorizing the issuance of the bonds.

(C)  The governing body of the city of Houston, Texas shall be authorized, by a vote of not less than two-thirds of the entire membership, to adopt an ordinance dissolving the district.  Upon the adoption of such an ordinance the district shall be dissolved, and, in accordance with Chapter 128, Acts of the 50th Legislature, 1947 (Article 1182c-1, Vernon's Texas Civil Statutes), the city of Houston, Texas shall (1) succeed to the property and assets of the district; and (2) assume all debts, obligations and liabilities of the district.

Revisor's Note

(End of Chapter)

(1)  Section 6(B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, states that the act prevails over general law in case of a conflict.  The revised law omits the provision because it duplicates Section 311.026, Government Code (Code Construction Act).  The omitted law reads:

(B)  If any provision of the general law is in conflict or inconsistent with this Act, this Act prevails… .

(2)  Section 6(B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refers to the adoption and incorporation by reference of certain language.  The revised law omits the language as unnecessary because it is not necessary to repeat authority available under applicable laws by "adopting and incorporating by reference."  The omitted law reads:

(B)  … Any general law not in conflict or inconsistent with this Act is adopted and incorporated by reference.

(3)  Sections 11(A) and (B), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, refer to an election to confirm the establishment of the district and related provisions.  The revised law omits these provisions as executed because the establishment of the district was confirmed at an election held on May 21, 1988.  The omitted law reads:

Sec. 11.  (A)  An election shall be called and held to confirm establishment of the district as provided by Chapter 54, Water Code.  In the event a majority of the votes cast at a confirmation election are against the creation of the district, the board of directors of the district shall not call another confirmation election for six months after the date the former confirmation election is held.  Prior to a successful confirmation election the district may not issue bonds or levy taxes or assessments; however, the district has the power to carry on such other business as the board of directors may determine.

(B)  A bond election, maintenance tax election, and any other election held within the district may be held at the same time and in conjunction with a confirmation election.

(4)  Section 12(A), Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, requires the district to obtain the approval of the Texas Commission on Environmental Quality before issuing certain bonds.  The revised law omits this provision because it duplicates Section 375.208, Local Government Code.  The omitted law reads:

Sec. 12.  (A)  The district shall obtain approval of the Texas Water Commission in the event it issues bonds to provide water, sewage, or drainage facilities pursuant to Chapter 54, Water Code.  Except as expressly provided by this section, the district is not subject to the jurisdiction of the commission.

(5)  Section 16, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, states that the notice, introduction, and passage of the act satisfied the requirements of the Texas Constitution, other laws of this state, and the rules and procedures of the legislature.  Chapter 1026 also provides that the Texas Water Commission filed recommendations relating to the act.  The revised law omits this provision as executed.  The omitted law reads:

Sec. 16.  The legislature finds that 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 of Texas, who has submitted the notice and Act to the Texas Water Commission.  Also the legislature finds that the Texas Water Commission has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time.  The general law relating to consent by political subdivisions to the creation of conservation and reclamation districts and the inclusion of land in those districts has been complied with, and 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.

(6)  Section 17, Chapter 1026, Acts of the 70th Legislature, Regular Session, 1987, provides that the provisions of the act are severable.  The revised law omits this section because it duplicates Section 311.032, Government Code (Code Construction Act), providing for the severability of statutes.  The omitted law reads:

Sec. 17.  The provisions of this Act are severable. If any word, phrase, clause, sentence, section, provision, or part of this Act should be held to be invalid or unconstitutional, it shall not affect the validity of the remaining portions, and it is hereby declared to be the legislative intent that this Act would have been passed as to the remaining portions, regardless of the invalidity of any part.

(7)  Section 6, Chapter 1453, Acts of the 77th Legislature, Regular Session, 2001, and Section 3, Chapter 10, Acts of the 78th Legislature, Regular Session, 2003, provide for the validation of governmental acts and proceedings of the Harris County Improvement District No. 1 and of the district's board that occurred before the effective date of those acts.  The revised law omits these provisions as executed.  Section 311.031(a)(2), Government Code (Code Construction Act), provides that the repeal of a statute does not affect any validation previously made under the statute.  That section applies to the revised law.  The omitted law reads:

[Acts 77th Leg., R.S., Ch. 1453]

Sec. 6.  (a)  The legislature validates and confirms all governmental acts and proceedings of Harris County Improvement District No. 1 and the district's board of directors that occurred before the effective date of this Act.

(b)  This section 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 of competent jurisdiction; or

     (2)  has been held invalid by a court of competent jurisdiction.

[Acts 78th Leg., R.S., Ch. 10]

Sec. 3.  (a)  The legislature validates and confirms all governmental acts and proceedings of Harris County Improvement District No. 1 and the district's board of directors that occurred before the effective date of this Act.

(b)  This section 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 of competent jurisdiction; or

     (2)  has been held invalid by a court of competent jurisdiction.

(8)  Section 1, Chapter 10, Acts of the 78th Legislature, Regular Session, 2003, provides legislative findings relating to the Harris County Improvement District No. 1.  The revised law omits these findings as executed.  The omitted law reads:

Sec. 1.  The legislature finds that:

     (1)  the area within the boundaries of Harris County Improvement District No. 1 is one of the state's most dynamic activity centers and is the location of numerous commercial, office, retail, and residential buildings;

     (2)  the area within the district is served with an inadequate public transportation system and has an inadequate system of streets and public parking facilities;

     (3)  residents, workers, visitors, customers, and other persons accessing the area within the district must primarily use motor vehicles, and such use places an undue burden on the street system in the district and results in severe congestion that retards mobility of persons and property and impairs the use of the district area as one of the state's primary economic and business centers;

     (4)  the absence of an adequate system of parking facilities, including park and ride facilities, discourages the use of public transportation and further aggravates vehicular congestion within the area;

     (5)  motor vehicles are generally powered by internal combustion engines that emit pollutants into the air, which results in dangers to the public health and welfare;

     (6)  the proliferation of the use of motor vehicles for passenger transportation within the district is caused in substantial part by the absence of an adequate public transportation system and an adequate system or network of public parking facilities;

     (7)  provision of an adequate system of public parking facilities and public transit and transportation facilities will accomplish the public purposes of Section 52-a, Article III, Texas Constitution, by stimulating transportation and commerce within the area of the district and in the state and will serve the further public purpose of reducing the pollutants discharged into the air thus reducing the threat to the public health and welfare; and

     (8)  in order for the area within the district to have an adequate public transit system and an adequate system of public parking, it will be necessary for the district to be able to take advantage of all public and private funds and opportunities available and be empowered to contract with other public agencies and with private entities to jointly provide such facilities.