Title SD, Special District Local Laws Code

Sec. 3952.005. 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. 3952.006. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) A mistake in the field notes of the district contained in Section 2 of the Act enacting this chapter or in copying the f…

Sec. 3952.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICT LAW. Except as provided by this chapter, Chapter 375, Local Government Code, applies to the district. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017. SUBCHAPTER B. BOARD OF DIRECTO…

Sec. 3952.051. GOVERNING BODY; TERMS. The district is governed by a board of five voting directors who serve staggered terms of four years, with two or three directors' terms expiring May 31 of each even-numbered year. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec…

Sec. 3952.052. QUALIFICATIONS. (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 city who is also a registered voter of the city; (2) an owner of property in the district; or (3) an agent, employee, or …

Sec. 3952.053. APPOINTMENT OF DIRECTORS. The governing body of the city shall appoint directors from a list of names recommended by the board as provided by Section 375.064, Local Government Code. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 201…

Sec. 3952.054. EX OFFICIO DIRECTORS. (a) The following persons serve ex officio as nonvoting directors: (1) the city manager of the city; and (2) the chief financial officer of the city. (b) An ex officio director is entitled to notice of board meetings and to speak on a matter b…

Sec. 3952.055. VACANCY. The governing body of the city shall fill a vacancy on the board for the remainder of the unexpired term in the same manner as the original appointment. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.056. DIRECTOR'S OATH OR AFFIRMATION. 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. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, ef…

Sec. 3952.057. OFFICERS. The board shall elect from among the directors a chair, a vice chair, and a secretary. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.058. COMPENSATION. A director is entitled to receive fees of office and reimbursement for actual expenses in the manner 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 2017, 85th Leg.,…

Sec. 3952.059. 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. 3952.060. BOARD MEETINGS. The board shall hold meetings at a place accessible to the public. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.061. CONFLICTS OF INTEREST. Chapter 171, Local Government Code, governs conflicts of interest of directors. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.062. INITIAL DIRECTORS. (a) The initial board consists of: (b) The governing body of the city shall stagger the initial directors' terms, with two or three directors' terms expiring May 31, 2018. The remaining directors' terms must expire May 31, 2020. (c) Section 3952.…

Sec. 3952.101. IMPROVEMENT PROJECTS. The district may provide, or it may enter into contracts with a governmental or private entity to provide, the improvement projects described by Subchapter D or activities in support of or incidental to those projects. Added by Acts 2017, 85th…

Sec. 3952.102. WATER DISTRICT POWERS. The district has the powers provided by the general laws relating to conservation and reclamation districts created under Section 59, Article XVI, Texas Constitution, including Chapters 49 and 54, Water Code. Added by Acts 2017, 85th Leg., R.…

Sec. 3952.103. ROAD DISTRICT POWERS; EXCEPTION. (a) Except as provided by Subsection (b), the district has the powers provided by the general laws relating to road districts and road utility districts created under Section 52(b), Article III, Texas Constitution, including Chapter…

Sec. 3952.104. RULES; ENFORCEMENT. (a) The district may adopt rules: (1) to administer or operate the district; or (2) for the use, enjoyment, availability, protection, security, and maintenance of the district's property and facilities. (b) The district may enforce its rules by …

Sec. 3952.105. NAME CHANGE; NOTICE. (a) The board by resolution may change the district's name. (b) The board shall give written notice of a name change to the city. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.106. 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 2017, 85th Leg., R.S., Ch. 645 (…

Sec. 3952.107. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017. SUBCHAPTER D. IMPROVEMENT PROJECTS

Sec. 3952.151. BOARD DETERMINATION REQUIRED. The district may not undertake an improvement project or service unless the board determines the project or service: (1) is necessary to accomplish a public purpose of the district; (2) complies with the development agreement and conse…

Sec. 3952.152. CITY REQUIREMENTS. (a) An improvement project must comply with any applicable city construction codes and construction ordinances. (b) The district may not provide, conduct, or authorize any improvement project on the city streets, highways, rights-of-way, or easem…

Sec. 3952.153. ADDITIONAL CITY POWERS REGARDING IMPROVEMENT PROJECTS. (a) Unless the district and the city agree otherwise, the city may: (1) by ordinance, order, or resolution require that title to all or any portion of an improvement project vest in the city; or (2) by ordinanc…

Sec. 3952.154. LAKE. For the purposes of this subchapter, planning, design, construction, improvement, or maintenance of a lake includes work done for drainage, reclamation, or recreation. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017. SUBCH…

Sec. 3952.201. GENERAL CONTRACT POWERS. The district may contract with any person to accomplish any district purpose. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.202. CONTRACT TERMS. A contract the district enters into to carry out a purpose of this chapter may be on any terms and for any period the board determines, including an obligation to issue a negotiable or nonnegotiable note or warrant payable to the city, the county, o…

Sec. 3952.203. REIMBURSEMENT OF COSTS. The district may contract with any person for the payment, repayment, or reimbursement of costs incurred by that person on behalf of the district, including all or part of the costs of an improvement project and interest on the reimbursed co…

Sec. 3952.204. CONTRACT FOR IMPROVEMENT PROJECT. (a) The district may contract with any person for the use, occupancy, lease, rental, operation, maintenance, or management of all or part of a proposed or existing improvement project. (b) The district may apply for and contract wi…

Sec. 3952.205. NO FURTHER CONTRACT AUTHORIZATION REQUIRED. Any person, including the city, may contract with the district to carry out the purposes of this chapter without further statutory or other kind of authorization. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), …

Sec. 3952.251. DEVELOPMENT AGREEMENT AND CONSENT APPLICATION REQUIRED TO BORROW MONEY OR IMPOSE TAXES OR ASSESSMENTS, INCLUDING BONDS. Before the district may issue bonds, impose taxes or assessments, or borrow money, the district must obtain from the city confirmation that the d…

Sec. 3952.252. BORROWING MONEY. The district may borrow money for a district purpose by issuing or executing bonds, notes, credit agreements, or other obligations of any kind found by the board to be necessary or appropriate for a district purpose. The bond, note, credit agreemen…

Sec. 3952.253. 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. 3952.254. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. 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 board…

Sec. 3952.255. ASSESSMENTS. (a) The district may impose an assessment on property in the district, if the assessment is authorized by an ordinance of the city, to pay the cost or the cost of maintenance of any authorized district improvement in the manner provided for a district …

Sec. 3952.256. NONPOTABLE WATER USER CHARGES; CITY APPROVAL. 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 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, e…

Sec. 3952.257. 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. 3952.301. 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 ad valorem taxes or assessments in the manner provided by Subchapter J, Chapter 375, Local Government Co…

Sec. 3952.302. BOND MATURITY. Bonds may mature not more than 40 years from their date of issue. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.303. 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. 3952.304. ELECTION REQUIRED FOR TAXES OR BONDS. The district must hold an election in the manner provided by Subchapter L, Chapter 375, Local Government Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem tax…

Sec. 3952.305. TAX RATE. The district's ad valorem tax rate may not exceed 40 cents per $100 valuation. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017.

Sec. 3952.306. ISSUER POWERS FOR CERTAIN PUBLIC IMPROVEMENTS. The district may exercise any power of an issuer under Chapter 1371, Government Code. Added by Acts 2017, 85th Leg., R.S., Ch. 645 (H.B. 4347), Sec. 1, eff. June 12, 2017. SUBCHAPTER H. DISSOLUTION

Sec. 3952.351. 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 have been repaid or discharged, including the defeasance of any outstandi…

Sec. 3952.352. 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, the city shall succeed to the rights and obligations of the district regarding enforcemen…