Title SD, Special District Local Laws Code

Sec. 3973.0107. 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 2019, 86th Leg., R.S., Ch. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019.

Sec. 3973.0108. 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. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019.

Sec. 3973.0109. 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 2019, 86th Leg., R.S., Ch. 1255 …

Sec. 3973.0201. 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 3973.0204, directors serve staggered four-year terms. Adde…

Sec. 3973.0202. 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; or (2) a director who is abstaining from participation in …

Sec. 3973.0203. 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 2019, 86th Leg., R.S., Ch.…

Sec. 3973.0204. TEMPORARY DIRECTORS. (a) The temporary board consists of: (1) Gready Hunter; (2) Kevin Loeffler; (3) Rusty Campbell; (4) Greg Eknoyan; and (5) Gordan Richardson. (b) The temporary or successor temporary directors shall hold an election to elect five permanent dire…

Sec. 3973.0301. 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. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019.

Sec. 3973.0302. 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. 3973.0303. 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 municipali…

Sec. 3973.0304. CONVEYANCE AND APPROVAL OF ROAD PROJECT. (a) The district may convey a road project authorized by Section 3973.0303 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 …

Sec. 3973.0305. 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 pow…

Sec. 3973.0306. 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 Chapt…

Sec. 3973.0307. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified party, including the county, to provide law enforcement services in the district. Added by Acts 2019, 86th Leg., R.S., Ch. 1255 (H.B. 4653), Sec. 1, eff. September…

Sec. 3973.0308. 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 2019, 86th Leg., R.S., Ch. 125…

Sec. 3973.0309. 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 developm…

Sec. 3973.0310. 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. 3973.0311. NO TOLL ROADS. The district may not construct, acquire, maintain, or operate a toll road. Added by Acts 2019, 86th Leg., R.S., Ch. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019.

Sec. 3973.0312. RAIL FACILITIES. The district may construct, acquire, improve, maintain, and operate rail facilities and improvements in aid of those facilities. Added by Acts 2019, 86th Leg., R.S., Ch. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019.

Sec. 3973.0313. 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 t…

Sec. 3973.0314. DIVISION OF DISTRICT. (a) The district may be divided into two or more new districts only if the district: (1) has no outstanding bonded debt; and (2) is not imposing ad valorem taxes. (b) This chapter applies to any new district created by the division of the dis…

Sec. 3973.0315. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. Added by Acts 2019, 86th Leg., R.S., Ch. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

Sec. 3973.0401. 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. 1255 (H.B. 4653), Sec. 1, eff. S…

Sec. 3973.0402. 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 201…

Sec. 3973.0403. 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 …

Sec. 3973.0404. 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. (b) An assessment, a reassessment, or an assessment resulting from an addition to or…

Sec. 3973.0405. 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 20…

Sec. 3973.0406. 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 2019, 86th Leg., R.S., Ch. 1255 (H.B. 4653), Sec. 1, eff. September 1, 2019. SUBCHAPTER E…

Sec. 3973.0501. 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 sales and use taxes; or (2) contract payments described by Section 3973.0503. (b) The d…

Sec. 3973.0502. OPERATION AND MAINTENANCE TAX. (a) If authorized by a majority of the district voters voting at an election held in accordance with Section 3973.0501, the district may impose an operation and maintenance tax on taxable property in the district in accordance with S…

Sec. 3973.0503. 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 a…

Sec. 3973.0504. 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 in…

Sec. 3973.0505. 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 par…

Sec. 3973.0506. BONDS FOR ROAD PROJECTS. At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the dis…

Sec. 3973.0601. 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 inconsis…

Sec. 3973.0602. 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 …

Sec. 3973.0603. SALES AND USE TAX RATE. (a) On or after the date the results are declared of an election held under Section 3973.0602, at which the voters approved imposition of the tax authorized by this subchapter, the board shall determine and adopt by resolution or order the …

Sec. 3973.0604. TAX AFTER MUNICIPAL ANNEXATION. (a) This section applies to the district after a municipality annexes part of the territory in the district and imposes the municipality's sales and use tax in the annexed territory. (b) If at the time of annexation the district has…

Sec. 3973.0605. NOTIFICATION OF RATE CHANGE. The board shall notify the comptroller of any changes made to the tax rate under this subchapter in the same manner the municipal secretary provides notice to the comptroller under Section 321.405(b), Tax Code. Added by Acts 2019, 86th…

Sec. 3973.0606. USE OF REVENUE. Revenue from the sales and use tax imposed under this subchapter is for the use and benefit of the district and may be used for any district purpose. The district may pledge all or part of the revenue to the payment of bonds, notes, or other obliga…

Sec. 3973.0607. ABOLITION OF TAX. (a) Except as provided by Subsection (b), the board may abolish the tax imposed under this subchapter without an election. (b) The board may not abolish the tax imposed under this subchapter if the district has outstanding debt secured by the tax…

Sec. 3973.0701. AUTHORITY TO ESTABLISH DEFINED AREAS OR DESIGNATED PROPERTY. The district may define areas or designate certain property of the district to pay for improvements, facilities, or services that primarily benefit that area or property and do not generally and directly…

Sec. 3973.0702. PROCEDURE FOR ELECTION. (a) Before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes of the defined area or designated property, the board shall hold an election in the defined area or in the designated property only. (b) The b…

Sec. 3973.0703. DECLARING RESULT AND ISSUING ORDER. (a) If a majority of the voters voting at the election approve the proposition or propositions, the board shall declare the results and, by order, shall establish the defined area and describe it by metes and bounds or designate…

Sec. 3973.0704. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and adoption of the order described by Section 3973.0703, the district may apply separately, differently, equitably, and specifically its taxing power and l…

Sec. 3973.0705. ISSUANCE OF BONDS FOR DEFINED AREA OR DESIGNATED PROPERTY. After the order under Section 3973.0703 is adopted, the district may issue bonds to provide for any land, improvements, facilities, plants, equipment, and appliances for the defined area or designated prop…