Title SD, Special District Local Laws Code

Sec. 3918.0105. INITIAL 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…

Sec. 3918.0106. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. 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, Tax C…

Sec. 3918.0107. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICT LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022.

Sec. 3918.0108. LIMITED WAIVER OF SOVEREIGN IMMUNITY. The district is considered to have waived sovereign immunity to suit by the city for the purpose of adjudicating a claim for breach of the development agreement described by Section 3918.0302. Added by Acts 2021, 87th Leg., R.…

Sec. 3918.0109. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022.

Sec. 3918.0110. CONFLICT OF LAWS. In the event of a conflict between this chapter and any other law, this chapter prevails. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022. SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3918.0201. GOVERNING BODY; TERMS. (a) 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 after the fourth anniversary of the date of the directors' appointment. (b) The board may no…

Sec. 3918.0202. QUALIFICATIONS OF DIRECTORS. To be qualified to serve as a director, a person must be: (1) an owner of property in the district; (2) an owner of stock or a partnership or membership interest, whether beneficial or otherwise, of a corporate owner of an interest in …

Sec. 3918.0203. APPOINTMENT OF DIRECTORS. The governing body of the city shall appoint directors from persons recommended by the board. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022.

Sec. 3918.0204. VACANCY. (a) If a vacancy occurs on the board, the remaining directors shall appoint a director for the remainder of the unexpired term. (b) A director may resign from the board at any time. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. Ja…

Sec. 3918.0205. 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 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022.

Sec. 3918.0206. COMPENSATION; EXPENSES. (a) A director may not receive compensation for service on the board. (b) A director is entitled to reimbursement for necessary and reasonable expenses incurred in carrying out the duties and responsibilities of the board. The total amount …

Sec. 3918.0207. 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) act…

Sec. 3918.0208. BOARD MEETINGS. (a) The board shall hold meetings at a place accessible to the public. (b) The board must post notice of each meeting with the city secretary not later than 72 hours before the scheduled time of the meeting. Added by Acts 2021, 87th Leg., R.S., Ch.…

Sec. 3918.0209. INITIAL DIRECTORS. (a) On or after January 1, 2022, the owner or owners of a majority of the assessed value of real property in the district may submit a petition to the governing body of the city requesting that the governing body appoint five persons as initial …

Sec. 3918.0301. GENERAL POWERS AND DUTIES. (a) The district has the powers and duties necessary to accomplish the purposes for which the district is created. (b) The board may not take any action or exercise any power granted under this chapter other than to hold an initial organ…

Sec. 3918.0302. DEVELOPMENT AGREEMENT. (a) The city, the district, the owner of the majority of the land in the district, and any other entities the city determines are necessary to the agreement may execute a development agreement if approved by the city. (b) This chapter expire…

Sec. 3918.0303. IMPROVEMENT PROJECTS AND SERVICES. (a) The district, using any money available to the district for the purpose, may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service authorized under this chapte…

Sec. 3918.0304. IMPROVEMENT PROJECT AND SERVICE IN DEFINABLE AREA; BENEFIT BASIS. The district may undertake an improvement project or service that confers a special benefit on a definable area in the district and levy and collect a special assessment on benefited property in the…

Sec. 3918.0305. LAW ENFORCEMENT SERVICES. To protect the public interest, with the consent of the city by resolution, the district may contract with a qualified party, including the city, to provide supplemental and enhanced law enforcement and security services in the district f…

Sec. 3918.0306. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district, in coordination with the city, 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 wi…

Sec. 3918.0307. 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 …

Sec. 3918.0308. ADDING OR REMOVING TERRITORY. (a) The board may add or remove territory as provided by Subchapter J, Chapter 49, Water Code. (b) The district may add or remove territory as described by Subsection (a) only if the governing body of the city by ordinance or resoluti…

Sec. 3918.0309. EXEMPT PROPERTY. The district may not impose an impact fee, assessment, tax, or other charge on property owned by the city, the county, or other political subdivision or on property exempted under this section except as provided by Subchapter H, Chapter 375, Local…

Sec. 3918.0310. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

Sec. 3918.0401. DISBURSEMENTS AND TRANSFERS OF MONEY. The board by resolution with the prior consent of the governing body of the city in accordance with the development agreement shall establish the number of directors' signatures and the procedure required for a disbursement or…

Sec. 3918.0402. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment to finance improvement projects and services authorized by this chapter in all or any definable part of the district in the manner provided by Subchapter F, Chapte…

Sec. 3918.0403. USE OF ELECTRICAL OR OPTICAL LINES. (a) The district may impose an assessment to pay the cost of: (1) burying, relocating, or removing electrical power lines, telephone lines, cable or fiber-optic lines, or any other type of electrical or optical line; (2) removin…

Sec. 3918.0501. BONDS AND OTHER OBLIGATIONS. With the consent of the governing body of the city by resolution in accordance with Section 375.207, Local Government Code, the district may issue bonds, notes, or other obligations payable wholly or partly from ad valorem taxes or ass…

Sec. 3918.0502. TAX ELECTION REQUIRED. The district must hold an election in the manner provided by Chapter 49, Water Code, or, if applicable, Chapter 375, Local Government Code, to obtain voter approval before the district may impose an ad valorem tax. Added by Acts 2021, 87th L…

Sec. 3918.0503. OPERATION AND MAINTENANCE TAX. (a) If authorized by a majority of the district voters voting at an election under Section 3918.0502, the district may impose an operation and maintenance tax on taxable property in the district in the manner provided by Section 49.1…

Sec. 3918.0504. BONDS SECURED BY REVENUE OR CONTRACT PAYMENTS. The district may issue, without an election, bonds secured by: (1) revenue other than ad valorem taxes, including contract revenues; or (2) contract payments, provided that the requirements of Section 49.108, Water Co…

Sec. 3918.0505. BONDS SECURED BY AD VALOREM TAXES; ELECTIONS. (a) If authorized at an election under Section 3918.0502, the district may issue bonds payable from ad valorem taxes. (b) Section 375.243, Local Government Code, does not apply to the district. (c) At the time the dist…

Sec. 3918.0506. WRITTEN AGREEMENT REGARDING SPECIAL APPRAISALS. Before the district may issue bonds, the district and any person to whom the board intends that proceeds of the bonds be distributed, including the developer, another owner of land in the district, and any entity act…

Sec. 3918.0507. EXEMPTION FROM CERTAIN SUPERVISION AND APPROVAL REQUIREMENTS. Section 375.208, Local Government Code, does not apply to the district. Added by Acts 2021, 87th Leg., R.S., Ch. 990 (H.B. 4638), Sec. 1, eff. January 1, 2022. SUBCHAPTER J. DISSOLUTION

Sec. 3918.0901. DISSOLUTION BY CITY. (a) The city may dissolve the district in the manner provided by Section 375.263, Local Government Code, only if the city also complies with any dissolution procedures in the development agreement described by Section 3918.0302. (b) In the cas…