Title SD, Special District Local Laws Code

Sec. 3972.0105. 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. 3972.0106. 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, T…

Sec. 3972.0107. 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 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0108. ENFORCEABILITY OF MUNICIPAL CONSENT AGREEMENT. (a) Any agreement between the district and a municipality related to the municipality's consent to the creation of the district is valid and enforceable. (b) On the issuance of bonds by the district, the district is c…

Sec. 3972.0109. CONSENT OF MUNICIPALITY AND ENTITLEMENT AGREEMENT REQUIRED. The board may not impose an assessment, issue bonds, or hold an election to authorize the issuance of bonds until: (1) the governing body of the city by ordinance or resolution consents to the creation of…

Sec. 3972.0110. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020. SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3972.0201. 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 even-numbered year. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, e…

Sec. 3972.0202. QUALIFICATIONS OF DIRECTORS. (a) To be qualified to serve as a director, 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; (3) an owner of stock or a partnership or membership interes…

Sec. 3972.0203. APPOINTMENT OF DIRECTORS. The governing body of the city shall appoint directors from persons recommended by the board. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0204. 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 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. J…

Sec. 3972.0205. 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 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0206. COMPENSATION; EXPENSES. (a) The district may compensate each director in an amount not to exceed $150 for each board meeting. The total amount of compensation for each director in one year may not exceed $7,200. (b) A director is entitled to reimbursement for nece…

Sec. 3972.0207. 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. 3972.0208. NO EXECUTIVE COMMITTEE. The board may not create an executive committee to exercise the powers of the board. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0209. BOARD MEETINGS. The board shall hold meetings at a place accessible to the public. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020. SUBCHAPTER C. POWERS AND DUTIES

Sec. 3972.0301. 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 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0302. IMPROVEMENT PROJECTS AND SERVICES. (a) The district, using 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 chapter or…

Sec. 3972.0303. 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. 3972.0304. ECONOMIC DEVELOPMENT PROGRAMS. (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…

Sec. 3972.0305. 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. 3972.0306. 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 territory as described by Subsection (a) only if the governing body of the city by ordinance or resolution consent…

Sec. 3972.0307. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020. SUBCHAPTER D. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

Sec. 3972.0401. DIVISION OF DISTRICT; PREREQUISITES. The district, including territory added to the district under Section 3972.0306, may be divided into two or more new districts only if the district has no outstanding bonded debt. Territory previously added to the district unde…

Sec. 3972.0402. LAW APPLICABLE TO NEW DISTRICT. This chapter applies to any new district created by division of the district, and a new district has all the powers and duties of the district. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0403. DIVISION PROCEDURES. (a) The board, on its own motion or on receipt of a petition signed by an owner of real property in the district, may adopt an order proposing to divide the district. (b) If the board decides to divide the district, the board shall: (1) set th…

Sec. 3972.0404. CONTRACT AUTHORITY OF NEW DISTRICTS. The new districts may contract with each other for any matter the boards of the new districts consider appropriate, including the joint construction or financing of a utility improvement. Added by Acts 2019, 86th Leg., R.S., Ch…

Sec. 3972.0501. 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 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. J…

Sec. 3972.0502. TAX AND ASSESSMENT ABATEMENTS. The district may designate reinvestment zones and may grant abatements of a tax or assessment imposed by the district on property in the zones. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020. …

Sec. 3972.0601. 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 or assessments in the manner provided by Chapter 375, Local Government Code, or, if an improvement…

Sec. 3972.0602. OPERATION AND MAINTENANCE TAX. If authorized by a majority of the district voters voting at an election held in accordance with Section 49.107, Water Code, the district may impose an operation and maintenance tax on taxable property in the district in the manner p…

Sec. 3972.0603. 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 outstandin…

Sec. 3972.0701. APPLICABILITY. This subchapter applies only to bonds payable wholly or partly from revenue derived from assessments on real property in the district. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0702. CONFLICT OF LAWS. In the event of a conflict between this subchapter and any other law, this subchapter prevails. Added by Acts 2019, 86th Leg., R.S., Ch. 1010 (H.B. 4730), Sec. 1, eff. January 1, 2020.

Sec. 3972.0703. 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. 3972.0704. REQUIREMENTS FOR ADVERTISING BOND ISSUE. A district may not advertise for an issuance of bonds until the completion of at least 25 percent of the projected value of the improvements, including houses and other buildings, that are liable for district assessments an…

Sec. 3972.0705. REQUIREMENTS FOR BOND ISSUE. The district may not issue bonds until: (1) the district submits to the Texas Commission on Environmental Quality: (A) an engineer's report describing the project for which the bonds will provide funding, including data, profiles, maps…

Sec. 3972.0706. REQUIREMENTS FOR COLLECTION OF REVENUE TO PAY BONDS. The district may not collect an assessment to be used for the payment of bonds until: (1) the completion of at least 95 percent of the underground water, wastewater, and drainage facilities financed from bond pr…

Sec. 3972.0901. 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 entitlement agreement described by Section 3972.0109. (b) In the cas…