SPECIAL DISTRICTS CODE
CHAPTER 3813. OLD TOWN SPRING IMPROVEMENT DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
§ 3813.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
district.
(2) "District" means the Old Town Spring Improvement
District.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.002. OLD TOWN SPRING IMPROVEMENT DISTRICT. The
Old Town Spring Improvement District is a special district created
under Section 59, Article XVI, Texas Constitution.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.003. 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.
(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, scenic beauty, and
the public welfare in the Old Town Spring area of Harris County.
(c) This chapter and the creation of the district do not
relieve Harris County from providing the level of services provided
as of September 1, 2001, to the area in the district. The district
is created to supplement and not to replace the county services
provided in the area in the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE;
GENERAL DUTIES. (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 shall:
(1) promote the health, safety, and general welfare of
residents, merchants, landowners, employers, potential employees,
employees, visitors, and consumers in the district, and of the
public;
(2) provide needed funding for the Old Town Spring
area to preserve, maintain, and enhance the economic health and
vitality of the area as a community and business center;
(3) provide and maintain common areas and facilities
in the district to ensure scenic beauty;
(4) provide improvements in the district to promote
the welfare of the public, residents, merchants, and landowners in
the district; and
(5) 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 beauty.
(e) 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.
§ 3813.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1, Chapter 1371,
Acts of the 77th Legislature, Regular Session, 2001, enacting
former Section 376.454, Local Government Code, as that territory
may have been modified under:
(1) Section 3813.107(a) or its predecessor statute,
former Section 376.462(a)(3), Local Government Code, as added by
Chapter 1371, Acts of the 77th Legislature, Regular Session, 2001;
(2) Subchapter J, Chapter 49, Water Code; or
(3) other law.
(b) The boundaries and field notes of the district contained
in Section 1, Chapter 1371, Acts of the 77th Legislature, Regular
Session, 2001, enacting former Section 376.454, Local Government
Code, form a closure. A mistake in the field notes or in copying the
field notes in the legislative process does not in any way affect
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.
SUBCHAPTER B. BOARD OF DIRECTORS
§ 3813.051. BOARD OF DIRECTORS. (a) The district is
governed by a board of five directors who occupy numbered
positions. The directors occupying positions one, two, and three
are appointed under this section, and the directors occupying
positions four and five are elected as provided by this section and
Section 3813.052.
(b) The Commissioners Court of Harris County shall appoint:
(1) one person who leases a retail store or who owns
real property in the district to serve in position one for a
three-year term;
(2) one person who leases a retail store but does not
own real property in the district to serve in position two for a
two-year term; and
(3) one person who owns real property in the district
to serve in position three for a three-year term.
(c) A director elected under Section 3813.052 serves a
two-year term. To qualify as a candidate for position four, a
person must reside in the district. To qualify as a candidate for
position five, a person must lease a retail store or own real
property in the district.
(d) A term expires on January 31 of the appropriate year.
(e) In appointing directors under Subsection (b), the
commissioners court shall consider any recommendation received by
an organization dedicated to the economic development of the Old
Town Spring area.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.052. ELECTION OF DIRECTORS. (a) The board
shall hold an election of directors for positions four and five in
each even-numbered year on the uniform election date in February
established by Section 41.001, Election Code.
(b) In addition to the contents required by the Election
Code, notice of a directors' election must:
(1) state the number of directors to be voted on; and
(2) describe the qualifications for each position for
which a candidate is running.
(c) In addition to requirements prescribed by the Election
Code, the ballots for a directors' election shall describe the
qualifications of the position for which each candidate is running.
(d) The board shall certify that the person receiving the
highest number of votes for each position is elected as the director
for that position.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.053. LAW GOVERNING ADMINISTRATION OF
BOARD. Sections 375.066-375.070, Local Government Code, apply to
the board as if it were established under Chapter 375 of that code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.054. VOTING BY BOARD PRESIDENT RESTRICTED. The
board president may not vote except to break a tie vote.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER C. POWERS AND DUTIES
§ 3813.101. DISTRICT POWERS. The district has:
(1) all powers necessary to accomplish the purposes
for which the district was created;
(2) the powers and duties of a municipal management
district under Subchapter E, Chapter 375, Local Government Code;
and
(3) the powers given to an industrial development
corporation organized under the Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes).
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.102. RELATION TO OTHER LAW. This chapter
prevails over a law to which Section 3813.101 or Subchapter E,
Chapter 375, Local Government Code, refers that is in conflict with
or is inconsistent with this chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.103. RULES. The district may adopt rules for:
(1) the administration and operation of the district;
(2) the use, enjoyment, availability, protection,
security, and maintenance of the district's facilities; and
(3) the provision of public safety and security in the
district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.104. SPECIFIC POWERS RELATING TO IMPROVEMENT
PROJECTS OR SERVICES. (a) The district may undertake an
improvement project separately or jointly with another person and
pay all or part of the costs of an improvement project, including an
improvement project that:
(1) improves, enhances, or supports public safety and
security, fire protection, emergency medical services, or law
enforcement in the district;
(2) confers a general benefit on the entire district
and the areas adjacent to the district; or
(3) confers a special benefit on all or part of the
district.
(b) A district improvement project or service may include:
(1) the construction, acquisition, lease, rental,
installment purchase, improvement, rehabilitation, repair,
relocation, and operation of:
(A) landscaping; lighting, banners, or signs;
streets or sidewalks; pedestrian or bicycle paths and trails;
pedestrian walkways, skywalks, crosswalks, or tunnels; and highway
right-of-way or transit corridor beautification and improvements;
(B) drainage or storm water detention
improvements and solid waste, water, sewer, or power facilities and
services, including electrical, gas, steam, and chilled water
facilities and services;
(C) parks, lakes, gardens, recreational
facilities, open space, scenic areas, and related exhibits and
preserves; fountains, plazas, or pedestrian malls; public art or
sculpture and related exhibits and facilities and educational or
cultural exhibits and facilities, including exhibits, displays,
attractions, or facilities for special events, holidays, or
seasonal or cultural celebrations;
(D) off-street parking facilities, bus
terminals, heliports, mass transit, and roadway or water
transportation systems; and
(E) other public improvements, facilities, or
services similar to the improvements, facilities, or services
described by Paragraphs (A)-(D);
(2) the cost of removing, razing, demolishing, or
clearing of land or improvements in connection with providing an
improvement project;
(3) the acquisition of property or an interest in the
property that is made in connection with an improvement project;
and
(4) the provision of special or supplemental services
to improve or promote the area in the district or to protect the
public health and safety in the district, including advertising,
promotion, tourism, health and sanitation, public safety,
security, fire protection or emergency medical services, business
recruitment, development, elimination of traffic congestion, and
recreational, educational, or cultural improvements, enhancements,
or services.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.105. LEASE, ACQUISITION, OR CONSTRUCTION OF
BUILDING OR FACILITY; ECONOMIC DEVELOPMENT PROGRAMS. The
district may, as if the district were a home-rule municipality with
a population of more than 100,000:
(1) issue bonds and lease, acquire, or construct a
building or facility as provided by Subchapter A, Chapter 1509,
Government Code; and
(2) establish and administer a program as provided by
Section 380.002, Local Government Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.106. CONTRACTS; GRANTS; DONATIONS. (a) The
district may contract with any person to accomplish the purposes of
this chapter on terms and for the period the board determines,
including contracting for the payment of costs incurred by the
person on behalf of the district, including all or part of the costs
of an improvement project, from tax proceeds or any other specified
source of money.
(b) The district may contract with a person to receive,
administer, and perform the district's duties under a gift, grant,
loan, conveyance, transfer, bequest, donation, or other financial
arrangement relating to the investigation, planning, analysis,
acquisition, construction, completion, implementation, or
operation of a proposed or existing improvement project.
(c) Any person, including any type of governmental entity,
may contract with the district to carry out the purposes of this
chapter.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.107. ANNEXATION OR EXCLUSION OF
TERRITORY. (a) The district may add or exclude territory in the
manner provided by Subchapter J, Chapter 49, Water Code.
(b) Not later than the 10th day after the date on which the
district annexes or excludes territory, the board shall send to the
comptroller a certified copy of any resolution, order, or ordinance
relating to the annexation or exclusion.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.108. EMINENT DOMAIN. The district may not
exercise the power of eminent domain.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.109. PEACE OFFICERS. The district may not employ
peace officers.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER D. FINANCIAL PROVISIONS
§ 3813.151. SALES AND USE TAX; EXCISE TAX. (a) For
purposes of this section:
(1) "Taxable items" includes all items subject to a
sales and use tax that is imposed by Harris County.
(2) "Use," with respect to a taxable service, means
the derivation in the district of a direct or indirect benefit from
the service.
(b) The district may impose a sales and use tax if
authorized by a majority vote at an election held for that purpose.
(c) If the district adopts a sales and use tax:
(1) the tax is imposed on the receipts from the sale at
retail of taxable items in the district; and
(2) an excise tax is imposed on the use, storage, or
other consumption in the district of taxable items purchased or
rented from a retailer during the period in which the sales and use
tax is effective in the district.
(d) The rate of the excise tax is the same as the rate of the
sales tax portion of the tax applied to the sales price of the
taxable items and is included in the sales tax.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.152. TAX ELECTION PROCEDURES. (a) The board
may order an election to adopt, change the rate of, or abolish a
sales and use tax. The election may be held at the same time and in
conjunction with a directors' election.
(b) The election must be held on the next uniform election
date that falls on or after the 45th day after the date the election
order is adopted.
(c) Notice of the election shall be given and the election
shall be held in the manner prescribed for a bond election by
Subchapter D, Chapter 49, Water Code.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.153. BALLOT WORDING. (a) In an election to
adopt a sales and use tax, the ballot shall be prepared to permit
voting for or against the proposition: "The adoption of a local
sales and use tax in the Old Town Spring Improvement District at the
rate of (proposed tax rate)."
(b) In an election to change the rate of the sales and use
tax, the ballot shall be prepared to permit voting for or against
the proposition: "The (increase or decrease, as applicable) in the
rate of the local sales and use tax imposed in the Old Town Spring
Improvement District from (tax rate on election date) percent to
(proposed tax rate) percent."
(c) In an election to abolish the sales and use tax, the
ballot shall be prepared to permit voting for or against the
proposition: "The abolition of the local sales and use tax in the
Old Town Spring Improvement District."
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.154. IMPOSITION, COMPUTATION, ADMINISTRATION,
AND GOVERNANCE OF TAXES. (a) Chapter 323, Tax Code, to the extent
not inconsistent with this chapter, governs the application,
collection, and administration of the sales and use tax and the
excise tax, except that Sections 323.401-323.406 and 323.505, Tax
Code, do not apply. Subtitles A and B, Title 2, and Chapter 151, Tax
Code, govern the administration and enforcement of the sales and
use tax and the excise tax.
(b) Chapter 323, Tax Code, does not apply to the use and
allocation of revenues under this chapter.
(c) In applying Chapter 323, Tax Code:
(1) a reference in that chapter to "the county" means
the district; and
(2) a reference in that chapter to "the commissioners
court" means the board.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.155. TAX RATES. The district may impose the
sales and use tax and the excise tax in increments of one-eighth of
one percent, with a minimum tax of one-half percent and a maximum
tax of one percent.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.156. ABOLITION OF TAX. The board by order and
without an election may abolish the sales and use tax and the excise
tax.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.157. USE OF TAXES. The district may use the
proceeds from the sales and use tax and the excise tax only for the
purposes for which the district was created.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.158. EFFECTIVE DATE OF TAX OR TAX CHANGE. The
adoption of a tax rate or a change in the tax rate takes effect after
the expiration of the first complete calendar quarter occurring
after the date on which the comptroller receives a notice of the
results of the election.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.159. AD VALOREM TAX PROHIBITED. The district may
not impose an ad valorem tax on property in the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.160. FEES; CHARGES. The district may:
(1) establish and collect user fees, concession fees,
admission fees, rental fees, or other similar fees or charges; and
(2) apply the proceeds from those fees or charges for
the enjoyment, sale, rental, or other use of the district's
facilities, services, or improvement projects.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.161. BORROWING MONEY. The district may borrow
money for the corporate purposes of the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.162. PAYMENT OF EXPENSES. The district may
provide or secure the payment or repayment of any district expense,
including:
(1) a district cost relating to an improvement
project;
(2) a district contractual obligation or
indebtedness, because of a lease, installment purchase contract, or
other agreement; or
(3) a tax, user fee, concession fee, rental fee, or
other revenue or resources of the district.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.163. BONDS. (a) The board may issue bonds as
provided by Subchapter J, Chapter 375, Local Government Code.
(b) In addition to the sources described in Subchapter J,
Chapter 375, Local Government Code, bonds issued by the district
may be secured and made payable, in whole or in part, by a pledge of
any part of the net proceeds the district receives from a specified
portion of not more than one-half of the district's maximum sales
and use tax amount authorized under Section 3813.152.
(c) Sections 375.207 and 375.208, Local Government Code, do
not apply to bonds issued under this section.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
SUBCHAPTER E. DISSOLUTION
§ 3813.201. DISSOLUTION BY BOARD ORDER. The board by
order may dissolve the district at any time unless the district has
outstanding indebtedness or contractual obligations.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.202. DISSOLUTION BY PETITION OF
OWNERS. (a) The board by order shall dissolve the district if the
board receives a written petition signed by 75 percent or more of
the individuals who own real property in the district.
(b) After the date the district is dissolved, the district
may not impose taxes.
(c) If on the date the district is dissolved the district
has outstanding liabilities, the board shall, not later than the
30th day after the date of dissolution, adopt a resolution
certifying each outstanding liability. Harris County shall assume
the outstanding liabilities and shall collect the sales and use tax
for the district for the remainder of the calendar year. Harris
County may continue to collect the tax for an additional calendar
year if the commissioners court of the county finds that the tax
revenue is needed to retire the district liabilities that were
assumed by the county.
(d) The district may continue to operate for a period not to
exceed two months after performing its duties under Subsection (c).
The district is continued in effect for the purpose of performing
those duties.
(e) If the district is continued in effect under Subsection
(d), the district is dissolved entirely on the first day of the
month following the month in which the board certifies to the
secretary of state that the district has fully performed its duties
under Subsection (c).
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
§ 3813.203. ADMINISTRATION OF DISTRICT PROPERTY
FOLLOWING DISSOLUTION. (a) After the date the board orders the
dissolution of the district, the board shall transfer ownership of
all district property to Harris County, except as provided by
Subsection (b).
(b) If, on the date on which the board orders the
dissolution, more than 50 percent of the district territory is in a
municipality, the board shall transfer ownership of the district's
property to the municipality.
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
