Title SD, Special District Local Laws Code

Sec. 3953.005. 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. 3953.006. 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. 3953.007. 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 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017.

Sec. 3953.008. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017. SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3953.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of nine voting directors appointed by the governing body of the city under Section 3953.052 who serve staggered terms of four years with four or five directors' terms expiring June 1 of each odd-numbere…

Sec. 3953.052. APPOINTMENT OF VOTING DIRECTORS; QUALIFICATIONS. (a) In this section, "city stakeholder" means: (1) a person who owns property in the city; (2) an owner of stock or of a partnership interest or membership interest, whether beneficial or otherwise, of a corporation,…

Sec. 3953.053. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve on the board. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017.

Sec. 3953.054. REMOVAL OF DIRECTORS. (a) The board shall remove a director if the director has missed at least half the meetings scheduled during the preceding 12 months. (b) A director removed under this section may file a written appeal with the governing body of the city. The …

Sec. 3953.055. QUORUM. For purposes of determining the requirements for a quorum of the board, the following are not counted: (1) a board position vacant for any reason, including death, resignation, or disqualification; (2) a director who is abstaining from participation in a vo…

Sec. 3953.101. 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 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017.

Sec. 3953.102. IMPROVEMENT PROJECTS AND SERVICES. The district may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service using any money available to the district, or contract with a governmental or private entity …

Sec. 3953.103. LOCATION OF IMPROVEMENT PROJECT. An improvement project described by Section 3953.102 may be located: (1) in the district; or (2) in an area outside the district if the project is for the purpose of extending a public infrastructure improvement beyond the district'…

Sec. 3953.104. PUBLIC IMPROVEMENT DISTRICT POWERS. The district has the powers provided by Chapter 372, Local Government Code, to a municipality or county. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017.

Sec. 3953.105. MUNICIPAL MANAGEMENT DISTRICT POWERS. The district has the powers provided by Chapter 375, Local Government Code. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017.

Sec. 3953.106. 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. 3953.107. 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. 3953.108. 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. 3953.109. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified party to provide law enforcement services for a fee. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017.

Sec. 3953.110. 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 2017, 85th Leg., R.S., Ch. 630 …

Sec. 3953.111. 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. 3953.112. 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. 3953.113. 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. 3953.114. APPROVAL BY CITY. (a) Except as provided by Subsection (b), the district must obtain the approval of the city for: (1) the issuance of bonds for an improvement project financed by the bonds if any part of the project is carried out in the corporate limits of the ci…

Sec. 3953.115. 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. 3953.116. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

Sec. 3953.151. DISBURSEMENTS AND TRANSFERS OF MONEY. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of district money. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. Jun…

Sec. 3953.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. The district may acquire, construct, finance, operate, or maintain any improvement or service authorized under this chapter or Chapter 375, Local Government Code, using any money available to the district. Added by Acts 2017…

Sec. 3953.153. 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. 3953.154. 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 in the manner provided for: (1) a district under Subchapters A, E, and F, Chapter 375,…

Sec. 3953.155. RESIDENTIAL PROPERTY NOT EXEMPT. Section 375.161, Local Government Code, does not apply to a tax authorized or approved by the voters of the district or a required payment for a service provided by the district, including water and sewer services. Added by Acts 201…

Sec. 3953.156. TAX AND ASSESSMENT ABATEMENTS. The district may designate reinvestment zones and may grant abatements of district taxes or assessments on property in the zones. Added by Acts 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. June 12, 2017. SUBCHAPTER E. TAXE…

Sec. 3953.201. 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 2017, 85th Leg., R.S., Ch. 630 (H.B. 4297), Sec. 1, eff. …

Sec. 3953.202. ELECTIONS REGARDING TAXES AND BONDS. (a) The district may issue, without an election, bonds, notes, and other obligations secured by: (1) revenue other than ad valorem taxes; or (2) contract payments described by Section 3953.204. (b) The district must hold an elec…

Sec. 3953.203. OPERATION AND MAINTENANCE TAX. (a) If authorized by a majority of the district voters voting at an election held in accordance with Section 3953.202, the district may impose an operation and maintenance tax on taxable property in the district in accordance with Sec…

Sec. 3953.204. CONTRACT TAXES. (a) In accordance with Section 49.108, Water Code, the district may impose a tax other than an operation and maintenance tax and use the revenue derived from the tax to make payments under a contract after the provisions of the contract have been ap…

Sec. 3953.205. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on terms determined by the board. Section 375.205, Local Government Code, does not apply to a loan, line of credit, or other borrowing from a bank or financial ins…

Sec. 3953.206. TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct annual ad valorem tax, without limit as to rate or amount, for each year that all or part…

Sec. 3953.251. 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. 3953.252. 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. 3953.253. 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 …