Title SD, Special District Local Laws Code

Sec. 3901.005. 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 distric…

Sec. 3901.006. 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 …

Sec. 3901.007. DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter, as that territory may have been modified under Section 3901.114 or other law. (b) The boundaries and field notes of the district con…

Sec. 3901.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in one or more of the following: (1) a tax increment reinvestment zone created under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone crea…

Sec. 3901.009. 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 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.010. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.011. CONFLICTS OF LAW. This chapter prevails over any provision of general law, including a provision of Chapter 375, Local Government Code, or Chapter 49, Water Code, that is in conflict or inconsistent with this chapter. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H…

Sec. 3901.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five directors elected or appointed as provided by this chapter and Subchapter D, Chapter 49, Water Code. (b) Except as provided by Section 3901.053, directors serve staggered four-year terms. Added …

Sec. 3901.052. COMPENSATION. A director is entitled to receive fees of office and reimbursement for actual expenses as provided by Section 49.060, Water Code. Sections 375.069 and 375.070, Local Government Code, do not apply to the board. Added by Acts 2011, 82nd Leg., R.S., Ch. …

Sec. 3901.054. DISQUALIFICATION OF DIRECTORS. Section 49.052, Water Code, applies to the members of the board of the district. Added by Acts 2015, 84th Leg., R.S., Ch. 897 (S.B. 1362), Sec. 5, eff. June 18, 2015. SUBCHAPTER C. POWERS AND DUTIES

Sec. 3901.101. 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 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.102. IMPROVEMENT PROJECTS AND SERVICES. (a) 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 …

Sec. 3901.103. RECREATIONAL FACILITIES. The district may develop or finance recreational facilities as authorized by Chapter 375, Local Government Code, Sections 52 and 52-a, Article III, Texas Constitution, Section 59, Article XVI, Texas Constitution, and any other law that appl…

Sec. 3901.104. AUTHORITY FOR ROAD PROJECTS. Under Section 52, Article III, Texas Constitution, the district may own, operate, maintain, design, acquire, construct, finance, issue bonds, notes, or other obligations for, improve, and convey to this state, a county, or a municipalit…

Sec. 3901.105. CONVEYANCE AND APPROVAL OF ROAD PROJECT. (a) The district may convey a road project authorized by Section 3901.104 to: (1) a municipality or county that will operate and maintain the road if the municipality or county has approved the plans and specifications of th…

Sec. 3901.106. 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. 3901.107. 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. 3901.108. 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. 3901.109. LAW ENFORCEMENT SERVICES. Section 49.216, Water Code, applies to the district. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011. Amended by: Acts 2015, 84th Leg., R.S., Ch. 897 (S.B. 1362), Sec. 9, eff. June 18, 2015.

Sec. 3901.110. 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 2011, 82nd Leg., R.S., Ch. 861 …

Sec. 3901.111. 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. 3901.112. STRATEGIC PARTNERSHIP AGREEMENT. The district may negotiate and enter into a written strategic partnership agreement with the city under Section 43.0751, Local Government Code. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.113. REGIONAL PARTICIPATION AGREEMENT. The district may negotiate and enter into a written regional participation agreement with the city under Section 43.0754, Local Government Code. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.114. ANNEXATION OR EXCLUSION OF LAND. (a) The district may annex land as provided by Subchapter J, Chapter 49, Water Code. (b) The district may exclude land as provided by Subchapter J, Chapter 49, Water Code. Section 375.044(b), Local Government Code, does not apply to…

Sec. 3901.115. APPLICABILITY OF OTHER LAW TO CERTAIN CONTRACTS. (a) Subchapter I, Chapter 49, Water Code, applies to a district contract for construction work, equipment, materials, or machinery. The district may use a project delivery method described by Subchapter I, Chapter 49…

Sec. 3901.116. TERMS OF EMPLOYMENT; COMPENSATION. The board may employ and establish the terms of employment and compensation of an executive director or general manager and any other district employees the board considers necessary. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (…

Sec. 3901.117. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011. SUBCHAPTER C-1. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3901.151. PUBLIC TRANSIT SYSTEM; PETITION REQUIRED. (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain a public transit system to serve the area in the district. (b) The board may not act under Subsection (a) unless a writ…

Sec. 3901.152. PARKING FACILITIES. (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities, including lots, garages, parking terminals, or other structures or accommodations for p…

Sec. 3901.153. RULES. In addition to rules and regulations adopted under the district's general rulemaking authority in Section 375.096(c), Local Government Code, the district may adopt and enforce rules covering its public transit system or its public parking facilities, except …

Sec. 3901.154. FEES. The district may impose a fee for the use of the public transit system and associated parking facilities. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.155. AGREEMENT WITH RAPID TRANSIT AUTHORITY. (a) In this section, "authority" means a rapid transit authority created under Chapter 451, Transportation Code. (b) The district and an authority may agree to jointly construct, own, operate, and maintain a transit facility …

Sec. 3901.156. MASS TRANSIT SYSTEMS. This subchapter does not limit the authority of the district to provide mass transit systems under Chapter 375, Local Government Code. Added by Acts 2015, 84th Leg., R.S., Ch. 897 (S.B. 1362), Sec. 12, eff. June 18, 2015. SUBCHAPTER C-2. CONDU…

Sec. 3901.171. CONDUIT FACILITIES. (a) The district may finance, acquire, construct, improve, operate, maintain, or charge a fee for the use of conduits for: (1) fiber-optic cable and supporting facilities; (2) electronic transmission and distribution lines and supporting facilit…

Sec. 3901.201. MONEY USED FOR IMPROVEMENTS OR SERVICES. The district may acquire, construct, finance, operate, maintain, or provide any improvement or service authorized under this chapter or Chapter 375, Local Government Code, using any money available to the district. Added by …

Sec. 3901.202. 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. 3901.203. 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 2011, 82nd Leg., R.S., Ch. 861 (H.B. …

Sec. 3901.204. 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 regardless of whether the part of the district where the assessment is to be imposed i…

Sec. 3901.205. 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 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), Sec. 1, eff. June 17, 2011.

Sec. 3901.206. UTILITY PROPERTY EXEMPT FROM ASSESSMENTS. The district may not impose an assessment on the property, including the equipment, rights-of-way, facilities, or improvements, of: (1) an electric utility or a power generation company as defined by Section 31.002, Utiliti…

Sec. 3901.207. AUTHORITY TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) The district may issue by competitive bid or negotiated sale bonds, notes, or other obligations payable wholly or partly from taxes, assessments, fees, revenue, contract payments, grants, or other district money, …

Sec. 3901.208. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS. Except as provided by Section 375.263, Local Government Code, a municipality is not required to pay a bond, note, or other obligation of the district. Added by Acts 2011, 82nd Leg., R.S., Ch. 861 (H.B. 3842), S…

Sec. 3901.209. AUDIT EXEMPTION. (a) The district may elect to complete an annual financial report in lieu of an annual audit under Section 375.096(a)(6), Local Government Code, if: (1) the district had no bonds or other long-term (more than one year) liabilities outstanding durin…

Sec. 3901.251. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS. (a) Chapter 321, Tax Code, governs the imposition, computation, administration, enforcement, and collection of the sales and use tax authorized by this subchapter except to the extent Chapter 321, Tax Code, is inconsist…

Sec. 3901.252. ELECTION; ADOPTION OF TAX. (a) The district may adopt a sales and use tax if authorized by a majority of the voters of the district voting at an election held for that purpose. (b) The board by order may call an election to authorize the adoption of the sales and u…

Sec. 3901.253. SALES AND USE TAX RATE. (a) On or after the date the results are declared of an election held under Section 3901.252, at which the voters approved imposition of the tax authorized by this subchapter, the board shall determine and adopt by resolution or order the in…