Title SD, Special District Local Laws Code

Sec. 3898.005. DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) The boundaries and field notes contained in Section 2 of the Act enacting this chapter form a closure. A mistake in the field no…

Sec. 3898.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a) All or any part of the area of the district is eligible to be included in: (1) a tax increment reinvestment zone created under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone created under Chapter 312, Ta…

Sec. 3898.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013. SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3898.051. GOVERNING BODY; TERMS. The district is governed by a board of five directors who serve staggered terms of four years, with two or three directors' terms expiring June 1 of each odd-numbered year. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff.…

Sec. 3898.052. QUALIFICATIONS OF DIRECTORS APPOINTED BY CITY. (a) To be qualified to serve as a director appointed by the governing body of the city, a person must be: (1) a resident of the district who is also a registered voter of the district; (2) an owner of property in the d…

Sec. 3898.053. APPOINTMENT OF DIRECTORS. The governing body of the city shall appoint directors from persons recommended by the board. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.054. VACANCY. If a vacancy occurs on the board, the remaining directors shall appoint a director for the remainder of the unexpired term. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.055. DIRECTOR'S OATH OR AFFIRMATION. (a) A director shall file the director's oath or affirmation of office with the district, and the district shall retain the oath or affirmation in the district records. (b) A director shall file a copy of the director's oath or affir…

Sec. 3898.056. QUORUM. A vacant director position is not counted for purposes of establishing a quorum. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.057. OFFICERS. The board shall elect from among the directors a chair, a vice chair, and a secretary. The offices of chair and secretary may not be held by the same person. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.058. COMPENSATION; EXPENSES. (a) The district may compensate each director in an amount not to exceed $50 for each board meeting. The total amount of compensation a director may receive each year may not exceed $2,000. (b) A director is entitled to reimbursement for nec…

Sec. 3898.059. LIABILITY INSURANCE. The district may obtain and pay for comprehensive general liability insurance coverage from a commercial insurance company or other source that protects and insures a director against personal liability and from all claims relating to: (1) acti…

Sec. 3898.060. NO EXECUTIVE COMMITTEE. The board may not create an executive committee to exercise the powers of the board. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.061. BOARD MEETINGS. The board shall hold meetings at a place accessible to the public. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013. SUBCHAPTER C. POWERS AND DUTIES

Sec. 3898.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.102. IMPROVEMENT PROJECTS AND SERVICES. The district may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service using money available to the district, or contract with a governmental or private entity to p…

Sec. 3898.103. LOCATION OF IMPROVEMENT PROJECT. An improvement project described by Section 3898.102 may be located: (1) in the district; or (2) in an area outside but adjacent to the district if the project is for the purpose of extending a public infrastructure improvement beyo…

Sec. 3898.104. DEVELOPMENT CORPORATION POWERS. The district, using money available to the district, may exercise the powers given to a development corporation under Chapter 505, Local Government Code, including the power to own, operate, acquire, construct, lease, improve, or mai…

Sec. 3898.105. 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 powe…

Sec. 3898.106. AGREEMENTS; GRANTS. (a) As provided by Chapter 375, Local Government Code, the district may make an agreement with or accept a gift, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapte…

Sec. 3898.107. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified party, including the county or the city, to provide law enforcement services in the district for a fee. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec…

Sec. 3898.108. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to a charitable or nonprofit organization that performs a service or provides an activity consistent with the furtherance of a district purpose. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 …

Sec. 3898.109. ECONOMIC DEVELOPMENT. (a) The district may engage in activities that accomplish the economic development purposes of the district. (b) The district may establish and provide for the administration of one or more programs to promote state or local economic developme…

Sec. 3898.110. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

Sec. 3898.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The board by resolution shall establish the number of signatures and the procedure required for a disbursement or transfer of the district's money. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, …

Sec. 3898.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. The district may acquire, construct, finance, operate, or maintain an improvement project or service authorized under this chapter or Chapter 375, Local Government Code, using any money available to the district. Added by Ac…

Sec. 3898.153. GENERAL POWERS REGARDING PAYMENT OF DISTRICT BONDS, OBLIGATIONS, OR OTHER COSTS. The district may provide or secure the payment or repayment of any bond, note, or other temporary or permanent obligation or reimbursement or other contract with any person and the cos…

Sec. 3898.154. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a service or improvement project with assessments under this chapter unless a written petition requesting that service or improvement has been filed with the b…

Sec. 3898.155. METHOD OF NOTICE FOR HEARING. The district may mail the notice required by Section 375.115(c), Local Government Code, by certified or first class United States mail. The board shall determine the method of notice. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. …

Sec. 3898.156. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this chapter in all or any part of the district. (b) An assessment, a reassessment, or an assessment resulting from an addition to or …

Sec. 3898.157. STORM WATER USER CHARGES. The district may establish user charges related to the operation of storm water facilities, including the regulation of storm water for the protection of water quality in the district. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605…

Sec. 3898.158. NONPOTABLE WATER USER CHARGES. The district may establish user charges for the use of nonpotable water for irrigation purposes, subject to approval of the governing body of the city. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 201…

Sec. 3898.159. COSTS FOR IMPROVEMENT PROJECTS. The district may undertake separately or jointly with other persons, including the city or county, all or part of the cost of an improvement project, including an improvement project: (1) for improving, enhancing, and supporting publ…

Sec. 3898.160. TAX AND ASSESSMENT ABATEMENTS. The district may designate reinvestment zones and may grant abatements of a tax or assessment on property in the zones. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013. SUBCHAPTER E. TAXES AND BONDS

Sec. 3898.201. TAX ABATEMENT. The district may enter into a tax abatement agreement in accordance with the general laws of this state authorizing and applicable to a tax abatement agreement by a municipality. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. J…

Sec. 3898.202. PROPERTY TAX AUTHORIZED. (a) The district may impose an ad valorem tax on all taxable property in the district to: (1) pay for an improvement project of the types authorized by Section 52(b), Article III, and Section 59, Article XVI, Texas Constitution; or (2) secu…

Sec. 3898.203. SALES AND USE TAX. (a) The district may impose a sales and use tax if authorized by a majority of the voters of the district voting at an election called for that purpose. Revenue from the tax may be used for any purpose for which ad valorem tax revenue of the dist…

Sec. 3898.204. BONDS AND OTHER OBLIGATIONS. (a) The district may issue, by public or private sale, bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, sales and use taxes, or assessments in the manner provided by Subchapter A, Chapter 372, or Subcha…

Sec. 3898.205. BOND MATURITY. Bonds may mature not more than 40 years from their date of issue. Added by Acts 2013, 83rd Leg., R.S., Ch. 548 (S.B. 605), Sec. 1, eff. June 14, 2013.

Sec. 3898.206. TAXES FOR BONDS AND OTHER OBLIGATIONS. At the time bonds or other obligations payable wholly or partly from ad valorem taxes are issued: (1) the board shall impose a continuing direct annual ad valorem tax for each year that all or part of the bonds are outstanding…

Sec. 3898.251. DISSOLUTION BY CITY ORDINANCE. (a) The city by ordinance may dissolve the district. (b) The city may not dissolve the district until the district's outstanding debt or contractual obligations that are payable from ad valorem taxes have been repaid or discharged, or…

Sec. 3898.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. (a) If the dissolved district has bonds or other obligations outstanding secured by and payable from assessments or other revenue, other than ad valorem taxes, the city shall succeed to the rights and obligations of the …

Sec. 3898.253. CONCURRENCE ON ADDITIONAL POWERS. If the legislature grants the district a power that is in addition to the powers approved by the initial resolution of the governing body of the city consenting to the creation of the district, the district may not exercise that po…

Sec. 3898.254. ASSUMPTION OF ASSETS AND LIABILITIES. (a) After the city dissolves the district, the city assumes, subject to the appropriation and availability of funds, the obligations of the district, including any bonds or other debt payable from assessments or other district …