SPECIAL DISTRICTS CODE
CHAPTER 3810. HARRIS COUNTY MUNICIPAL MANAGEMENT DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
SUBCHAPTER B. BOARD OF DIRECTORS
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
§ 3810.101. DISTRICT POWERS. (a) The district may
exercise the powers given to:
(1) a corporation created under Section 4B,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes);
(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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
§ 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, § 1, eff. April 1, 2005.
SUBCHAPTER E. DISSOLUTION
§ 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, § 1, eff. April 1, 2005.
