SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3810. HARRIS COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3810.001.  DEFINITIONS.  In this chapter:
(1)  "Board" means the board of directors of the district.
(2)  "District" means the Harris County Municipal Management District No. 1.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.002.  HARRIS COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1.  The Harris County Municipal Management District No. 1 is a special district created under Section 59, Article XVI, Texas Constitution.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.003.  PURPOSE;  DECLARATION OF INTENT.  (a)  The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter.  By creating the district and in authorizing Harris County, the City of Houston, and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution.
(b)  The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district.
(c)  This chapter and the creation of the district may not be interpreted to relieve Harris County or the City of Houston from providing the level of services provided as of June 18, 1999, to the area in the district or to release the county or the city from the obligations of each entity to provide services to that area.  The district is created to supplement and not to supplant the county or city services provided in the area in the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.004.  FINDINGS OF BENEFIT AND PUBLIC PURPOSE.  (a)  The district is created to serve a public use and benefit.
(b)  All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter.
(c)  The creation of the district is in the public interest and is essential to:
(1)  further the public purposes of developing and diversifying the economy of the state;
(2)  eliminate unemployment and underemployment;  and
(3)  develop or expand transportation and commerce.
(d)  The district will:
(1)  promote the health, safety, and general welfare of residents, employers, employees, visitors, and consumers in the district and of the public;
(2)  provide needed funding to preserve, maintain, and enhance the economic health and vitality of the area as a community and business center;  and
(3)  promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic and aesthetic beauty.
(e)  Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement.
(f)  The district may 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 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.005.  DISTRICT TERRITORY.  (a)  The district is composed of the territory described by Chapter 1324, Acts of the 76th Legislature, Regular Session, 1999, enacting former Section 376.304, Local Government Code, as that territory may have been modified under:
(1)  Section 3810.107, or its predecessor statutes, former Section 376.316, Local Government Code, as added by Chapter 1324, Acts of the 76th Legislature, Regular Session, 1999, and former Section 376.416, Local Government Code;
(2)  Subchapter J, Chapter 49, Water Code;  or
(3)  other law.
(b)  The boundaries and field notes of the district contained in Chapter 1324, Acts of the 76th Legislature, Regular Session, 1999, enacting former Section 376.304, Local Government Code, form a closure.  A mistake in the field notes or in copying the field notes in the legislative process does not affect the district's:
(1)  organization, existence, or validity;
(2)  right to issue any type of bond for a purpose for which the district is created or to pay the principal of and interest on the bond;
(3)  right to impose or collect an assessment or tax;  or
(4)  legality or operation.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.006.  APPLICABILITY OF OTHER LAW.  Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.007.  LIBERAL CONSTRUCTION OF CHAPTER.  This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3810.051.  BOARD OF DIRECTORS;  TERMS.  (a)  The district is governed by a board of 11 directors who serve staggered terms of four years.
(b)  A director shall receive compensation as provided by Section 49.060, Water Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.052.  APPOINTMENT OF DIRECTORS.  (a)  The mayor and members of the governing body of the City of Houston shall appoint directors from persons recommended by the board.  A person is appointed if a majority of the members and the mayor vote to appoint the person.
(b)  A person may not be appointed to the board if the appointment of that person would result in fewer than two-thirds of the directors being residents of the city of Houston.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.053.  EX OFFICIO DIRECTORS.  (a)  The following persons serve as nonvoting ex officio directors:
(1)  the directors of the parks and recreation, planning and development, public works, and civic center departments of the City of Houston;
(2)  the chief of police of the City of Houston;
(3)  Harris County's general manager of the Metropolitan Transit Authority of Harris County, Texas;  and
(4)  the president of each institution of higher learning located in the district.
(b)  If a department described by Subsection (a) is consolidated, renamed, or changed, the board may appoint a director of the consolidated, renamed, or changed department as a nonvoting ex officio director.  If a department described by Subsection (a) is abolished, the board may appoint a representative of another department of the City of Houston that performs duties comparable to those performed by the abolished department.
(c)  The board may appoint the presiding officer of a nonprofit corporation actively involved in activities in the area of the district in the city of Houston to serve as a nonvoting ex officio director.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.054.  CONFLICTS OF INTEREST.  (a)  Except as provided by this section:
(1)  a director may participate in all board votes and decisions;  and
(2)  Chapter 171, Local Government Code, governs conflicts of interest of directors.
(b)  Section 171.004, Local Government Code, does not apply to the district.  A director who has a substantial interest in a business or charitable entity that will receive a pecuniary benefit from a board action shall file an affidavit with the board secretary declaring the interest.  Another affidavit is not required if the director's interest changes.
(c)  After the affidavit is filed, the director may participate in a discussion or vote on that action if:
(1)  a majority of the directors have a similar interest in the same entity;  or
(2)  all other similar business or charitable entities in the district will receive a similar pecuniary benefit.
(d)  A director who is also an officer or employee of a public entity may not participate in a discussion of or vote on a matter regarding a contract with that same public entity.
(e)  For purposes of this section, a director has a substantial interest in a charitable entity in the same manner that a person would have a substantial interest in a business entity under Section 171.002, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3810.101.  DISTRICT POWERS.  (a)  The district may exercise the powers given to:
(1)  a corporation created under Chapter 505, Local Government Code;
(2)  a housing finance corporation created under Chapter 394, Local Government Code, to provide housing or residential development projects in the district; and
(3)  an eligible political subdivision under Chapter 221, Natural Resources Code.
(b)  The district may exercise its powers in an area outside the district if the board determines that exercising that power benefits the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by: 
Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.39, eff. April 1, 2009.

Sec. 3810.102.  NONPROFIT CORPORATION.  (a)  The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in implementing a project or providing a service authorized by this chapter.
(b)  The nonprofit corporation:
(1)  has each power of and is considered for purposes of this chapter to be a local government corporation created under Chapter 431, Transportation Code;  and
(2)  may implement any project and provide any service authorized by this chapter.
(c)  The board shall appoint the board of directors of the nonprofit corporation.  The board of directors of the nonprofit corporation shall serve in the same manner as, for the same term as, and on the same conditions as the board of directors of a local government corporation created under Chapter 431, Transportation Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.103.  AGREEMENTS, DONATIONS, GRANTS, AND LOANS.  (a)  The district may enter into an agreement with or accept a donation, grant, or loan from any person.
(b)  The implementation of a project is a governmental function or service for purposes of Chapter 791, Government Code.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.104.  AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT.  To protect the public interest, the district may contract with Harris County or the City of Houston for the county or city to provide law enforcement services in the district for a fee.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.105.  COMPETITIVE BIDDING.  Section 375.221, Local Government Code, does not apply to a district contract for $25,000 or less.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.106.  APPROVAL BY CITY OF HOUSTON.  (a)  Except as provided by Subsection (b), the district must obtain approval from the City of Houston's governing body:
(1)  for the issuance of a bond for each improvement project;
(2)  of the plans and specifications of the improvement project to be financed by the bond;  and
(3)  of the plans and specifications of any district improvement project related to the use of land owned by the City of Houston, an easement granted by the City of Houston, or a right-of-way of a street, road, or highway.
(b)  If the district obtains approval from the City of Houston's governing body of a capital improvements budget for a period not to exceed five years, the district may finance the capital improvements and issue bonds specified in the budget without further approval from the City of Houston.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.107.  ANNEXATION.  In addition to the authority to annex territory under Subchapter C, Chapter 375, Local Government Code, the district has the authority to annex territory located in a reinvestment zone created by the City of Houston under Chapter 311, Tax Code, if the city's governing body consents to the annexation.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.108.  NO EMINENT DOMAIN POWER.  The district may not exercise the power of eminent domain.
Added by Acts 2005, 79th Leg., Ch. 684 (S.B. 224), Sec. 10, eff. June 17, 2005.

SUBCHAPTER D. FINANCIAL PROVISIONS

Sec. 3810.151.  PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS.  (a)  The board may not finance a service or an improvement project under this chapter unless a written petition requesting that service or improvement is filed with the board.
(b)  The petition must be signed by the owners of a majority of the assessed value of real property in the district according to the most recent certified tax appraisal roll for Harris County.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.152.  DISBURSEMENTS AND TRANSFERS OF MONEY.  The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.153.  MAINTENANCE TAX.  (a)  The district may impose an annual ad valorem tax on taxable property in the district to maintain and operate the district and the improvements constructed or acquired by the district or to provide a service only if:
(1)  two-thirds of the directors vote in favor of imposing the tax;  and
(2)  the tax is authorized at an election held in accordance with Section 3810.156.
(b)  The board shall determine the tax rate.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.154.  ASSESSMENTS;  LIENS FOR ASSESSMENTS.  (a)  The board by resolution may impose and collect an assessment for any purpose authorized by this chapter only if two-thirds of the directors vote in favor of imposing the assessment.
(b)  An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district:
(1)  are a first and prior lien against the property assessed;
(2)  are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes;  and
(3)  are the personal liability of and a charge against the owners of the property even if the owners are not named in the assessment proceeding.
(c)  The lien is effective from the date of the board's resolution imposing the assessment until the date the assessment is paid.  The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.155.  UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND ASSESSMENTS.  The district may not impose an impact fee or assessment on the property of a person who provides to the public gas, electric, telephone, sewage, or water service.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.156.  ELECTIONS REGARDING TAXES OR BONDS.  (a)  In addition to the elections required under Subchapter L, Chapter 375, Local Government Code, the district must hold an election in the manner provided by that subchapter to obtain voter approval before the district may:
(1)  impose a maintenance tax;  or
(2)  issue a bond payable from ad valorem taxes or assessments.
(b)  The board may submit multiple purposes in a single proposition at an election.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

Sec. 3810.157.  MUNICIPALITY NOT OBLIGATED TO PAY DISTRICT OBLIGATIONS.  Except as provided by Section 375.263, Local Government Code, a municipality is not obligated to pay a bond, note, or other obligation of the district.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.

SUBCHAPTER E. DISSOLUTION

Sec. 3810.201.  DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.  (a)  The board may dissolve the district regardless of whether the district has debt.  Section 375.264, Local Government Code, does not apply to the district.
(b)  If the district has debt when it is dissolved, the district shall remain in existence solely for the purpose of discharging its debts.  The dissolution is effective when all debts have been discharged.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.