Title SD, Special District Local Laws Code

Sec. 11005.052. ANNEXATION OF CITY TERRITORY. (a) Territory annexed to the city after January 1, 1973, may be annexed to the district as provided by this section. (b) At any time after final passage of an ordinance or resolution annexing territory to the city, the board may give …

Sec. 11005.053. ANNEXATION OF OTHER TERRITORY. (a) Territory other than territory subject to Section 11005.052 may be annexed to the district as provided by this section. (b) The board may annex territory or a municipality under this section only if a petition requesting annexati…

Sec. 11005.054. DETACHMENT OF DISTRICT TERRITORY AFTER ISSUANCE OF BONDS. Territory may not be detached from the district after the issuance of bonds payable from revenue or taxes, or both revenue and taxes. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff…

Sec. 11005.101. COMPOSITION OF BOARD; TERMS. (a) The district is governed by a board of five directors appointed by the city council. The directors occupy numbered places on the board. (b) Directors serve staggered two-year terms, with the terms of the directors occupying Places …

Sec. 11005.102. COMPENSATION OF DIRECTORS. (a) A director may not receive any remuneration or emolument of office, but the director is entitled to reimbursement for the actual expenses incurred in performing the director's duties, to the extent authorized and permitted by the boa…

Sec. 11005.103. QUALIFICATIONS FOR OFFICE. (a) To be eligible to be appointed or to serve as a director, a person: (1) must be a resident, qualified voter of the district; (2) must not hold any other public office; and (3) must not be an officer or employee of the city. (b) A dir…

Sec. 11005.104. VACANCIES. Any vacancy occurring on the board shall be filled for the unexpired term by appointment in the manner in which the vacating director was appointed. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, 2017.

Sec. 11005.105. REMOVAL FROM OFFICE. (a) After reasonable notice and a public hearing, the board may remove a director from office for misfeasance, malfeasance, or wilful neglect of duty. (b) Reasonable notice and a public hearing are not required if the notice and hearing are ex…

Sec. 11005.106. BOARD RESOLUTIONS; QUORUM; VOTING REQUIREMENTS. (a) The district shall act through resolutions adopted by the board. (b) Three directors constitute a quorum. (c) Each director has a vote. (d) The affirmative vote of at least three directors is necessary to adopt a…

Sec. 11005.107. OFFICERS AND ASSISTANTS. (a) The board shall elect a president, vice president, secretary, and treasurer at the first meeting of the board in March of each year or at any time necessary to fill a vacancy. (b) The board shall elect the president and vice president …

Sec. 11005.108. DUTIES OF OFFICERS AND ASSISTANTS. (a) The board president shall preside at board meetings and perform other duties prescribed by the board. (b) The board secretary is the official custodian of the minutes, books, records, and seal of the board and shall perform o…

Sec. 11005.109. MEETINGS. The board shall have regular meetings at times specified by board resolution and shall have special meetings when called by the board president or by any three directors. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, …

Sec. 11005.110. PERSONAL LIABILITY OF DIRECTORS. A director is not personally liable for any bond issued or contract executed by the district. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, 2017. SUBCHAPTER D. POWERS AND DUTIES

Sec. 11005.151. DISTRICT POWERS. The district may exercise any power necessary or appropriate to achieve the purposes of this chapter, including the power to: (1) sue and be sued, and plead and be impleaded, in its own name; (2) adopt an official seal; (3) adopt and enforce bylaw…

Sec. 11005.152. PERMITS. (a) The district may obtain through appropriate proceedings an appropriation permit or a diversion permit from the Texas Commission on Environmental Quality. (b) The district may acquire a water appropriation permit from a permit owner by contract or othe…

Sec. 11005.153. GENERAL AUTHORITY OF PUBLIC AGENCIES AND POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A public agency or political subdivision of this state, including the city, may enter into a contract or agreement with the district, on terms agreed to by the parties, for …

Sec. 11005.154. DISTRICT AUTHORITY TO CONTRACT TO SUPPLY WATER. (a) The district may contract with municipalities and others, including the city, to supply water to them. The district may sell water inside or outside the boundaries of the district. (b) The district may contract w…

Sec. 11005.155. SOURCES FOR WATER; ACQUISITION OF LAND; STORAGE CAPACITY. (a) The district may acquire or construct, inside or outside the district, a reservoir or any work, plant, transmission line, or other facility necessary or useful to divert, impound, store, treat, or trans…

Sec. 11005.156. CONSTRUCTION CONTRACTS. (a) The district may award a construction contract that requires an expenditure of more than $5,000 only after publication of notice to bidders once each week for two weeks in a newspaper of general circulation in the district. (b) The noti…

Sec. 11005.157. CONVEYANCE OF LAND TO DISTRICT. A public agency or political subdivision of this state, including the city, may lease, sell, or otherwise convey its land or an interest in its land to the district for consideration that the parties agree is adequate. Approval, not…

Sec. 11005.158. SURPLUS PROPERTY. Subject to the terms of a resolution or deed of trust authorizing or securing bonds issued by the district, the district may sell, lease, rent, trade, or otherwise dispose of property that the board considers is not needed for a district purpose.…

Sec. 11005.159. EMINENT DOMAIN. (a) To carry out a power conferred by this chapter, the district may exercise the power of eminent domain to acquire the fee simple title to land, or any other interest in land, and other property and easements, inside or outside the district, incl…

Sec. 11005.160. COST OF RELOCATING OR ALTERING PROPERTY; RIGHTS-OF-WAY AND EASEMENTS. (a) If the district's exercise of its eminent domain, police, or other power requires relocating, raising, lowering, rerouting, or changing the grade of or altering the construction of any railr…

Sec. 11005.161. OTHER DISTRICT POWERS. The district has the same power as is conferred by general law on municipal utility districts or on water control and improvement districts, with reference to entering land and making surveys and attending to other business of the district. …

Sec. 11005.201. DEPOSITORY. (a) The board shall designate one or more banks inside or outside the district to serve as the depository for the district's money. (b) District money shall be deposited in the depository designated by the board, except that: (1) bond proceeds and mone…

Sec. 11005.202. INVESTMENT OF DISTRICT MONEY. The board may invest district money in obligations and make time deposits of district money in the manner determined by the board or in the manner permitted or required in a resolution or trust indenture authorizing or securing distri…

Sec. 11005.203. DISTRICT FACILITIES EXEMPT FROM TAXATION AND ASSESSMENT. The district is not required to pay a tax or assessment on its facilities or any part of its facilities. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, 2017. SUBCHAPTER F.…

Sec. 11005.251. AUTHORITY TO ISSUE BONDS. (a) The district may issue bonds payable from and secured by revenue or ad valorem taxes, or both revenue and ad valorem taxes, of the district to carry out any power conferred by this chapter. The bonds must be authorized by a board reso…

Sec. 11005.252. FORM OF BONDS. District bonds must be: (1) issued in the district's name; (2) signed by the president or vice president; and (3) attested by the secretary. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, 2017.

Sec. 11005.253. MATURITY. District bonds must mature not later than 40 years after the date of their issuance. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, 2017.

Sec. 11005.254. ELECTION FOR BONDS PAYABLE FROM AD VALOREM TAXES. (a) Bonds, other than refunding bonds, payable wholly or partly from ad valorem taxes may not be issued unless authorized by a majority of the district voters voting at an election held for that purpose. (b) The bo…

Sec. 11005.255. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a) District bonds issued may be secured by a pledge of all or part of the district's revenue, or by all or part of the revenue of one or more contracts previously or subsequently made or other revenue or income specifie…

Sec. 11005.256. BONDS PAYABLE FROM AD VALOREM TAXES. (a) If bonds are issued payable wholly or partly from ad valorem taxes, the board shall annually impose a tax on the taxable property in the district in an amount sufficient to pay the principal of and interest on the bonds whe…

Sec. 11005.257. ADDITIONAL SECURITY. (a) District bonds, including refunding bonds, that are not payable wholly from ad valorem taxes may be additionally secured, at the discretion of the board, by a deed of trust or mortgage lien on physical property of the district and all fran…

Sec. 11005.258. TRUST INDENTURE. (a) District bonds, including refunding bonds, that are not payable wholly from ad valorem taxes may be additionally secured by a trust indenture. The trustee may be a bank with trust powers located inside or outside the state. (b) A trust indentu…

Sec. 11005.259. RATES FOR SERVICES; PAYMENT OF REVENUE BONDS. (a) If district bonds payable wholly from revenue are issued, the board shall set the rates of compensation for water sold and services provided by the district. The rates must be sufficient to: (1) pay the expense of …

Sec. 11005.260. USE OF BOND PROCEEDS. (a) The district may set aside an amount of proceeds from the sale of district bonds for: (1) the payment of interest expected to accrue during construction not to exceed three years; (2) a reserve interest and sinking fund; and (3) other fun…

Sec. 11005.261. APPOINTMENT OF RECEIVER. (a) On default or threatened default in the payment of the principal of or interest on district bonds that are payable wholly or partly from revenue, a court may, on petition of the holders of outstanding bonds, appoint a receiver for the …

Sec. 11005.262. REFUNDING BONDS. (a) The district may issue refunding bonds to refund outstanding district bonds and interest on those bonds. (b) Refunding bonds may: (1) be issued to refund bonds of more than one series; (2) combine the pledges for the outstanding bonds for the …

Sec. 11005.263. LIMITATION ON RIGHTS OF BONDHOLDERS. The resolution authorizing the bonds or the trust indenture securing the bonds may limit or qualify the rights of the holders of less than all of the outstanding bonds payable from the same source to institute or prosecute liti…

Sec. 11005.264. BONDS EXEMPT FROM TAXATION. A district bond, the transfer of the bond, and the income from the bond, including profits made on the sale of the bond, are exempt from taxation in this state. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. A…