81R9456 GCB-D
By: Kuempel H.B. No. 4306
A BILL TO BE ENTITLED
AN ACT
relating to authorizing the creation of a residential recreation
district in certain counties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 12, Local Government Code, is
amended by adding Chapter 375A to read as follows:
CHAPTER 375A. RESIDENTIAL RECREATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 375A.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The
creation of a residential recreation district is declared to be
essential to the accomplishment of the purposes of Section 52,
Article III, Section 59, Article XVI, and Section 52-a, Article
III, Texas Constitution, and to the accomplishment of the other
public purposes stated in this chapter.
(b) The creation of districts is necessary to promote,
develop, encourage, and maintain the public welfare in the
residential areas of certain counties.
(c) A district is created to supplement and not supplant the
services of the municipality or county. This chapter or the
creation of a district under this chapter may not be interpreted to
relieve a municipality or county from providing services to an area
included in the district or to release the municipality or county
from an obligation to provide services to an area included in the
district.
(d) All of the land and other property to be included inside
a district's boundaries will be benefited by the works and projects
that are to be accomplished and the services to be provided by the
district.
(e) The district is created to serve a public use and
benefit.
(f) The creation of a district is essential to further the
public purposes of preserving the residential nature and
recreational use of property in the district and is in the public
interest.
(g) A district will promote the health, safety, and general
welfare of residents and the general public.
(h) A district is designed to provide needed funding for
residential recreational areas to preserve, maintain, and enhance
the public health, safety, and general welfare of its residents.
Sec. 375A.002. DEFINITIONS. In this chapter:
(1) "Board" means a board of directors of a district.
(2) "Bond" means any type of interest-bearing
obligation, including a bond, note, bond anticipation note,
certificate of participation, lease, contract, or other evidence of
indebtedness.
(3) "District" means a residential recreation
district created under this chapter.
Sec. 375A.003. NATURE OF DISTRICT; TORT CLAIMS. (a) A
district is a governmental agency and a political subdivision of
this state.
(b) A district is a unit of government for purposes of
Chapter 101, Civil Practice and Remedies Code (Texas Tort Claims
Act), and operations of a district are considered to be essential
governmental functions and not proprietary functions for all
purposes, including the application of the Texas Tort Claims Act.
[Sections 375A.004-375A.020 reserved for expansion]
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 375A.021. AREAS ELIGIBLE FOR CREATION OF DISTRICT.
(a) A district may be created only in:
(1) a county with a population of more than 85,000 and
less than 100,000 that contains four or more lakes formed for
hydroelectric power; and
(2) a primarily residential area composed of
waterfront properties, platted subdivisions containing waterfront
properties, or properties adjoining waterfront properties in a
county described by Subdivision (1).
(b) A district may include noncontiguous territory if the
parcels included in the district's territory are properly described
by metes and bounds or by lot and block number.
(c) A district may include the extraterritorial
jurisdiction of a municipality with a population of 25,000 or more.
Sec. 375A.022. PETITION. (a) A district may be created
only if the governing body of the county in which the district is
proposed to be located receives a petition requesting creation of a
district.
(b) The petition must be signed by:
(1) the owners of a majority of the assessed value of
the real property in the proposed district, according to the most
recent certified county property tax rolls; or
(2) 25 persons who own real property in the proposed
district if, according to the most recent certified county property
tax rolls, more than 25 persons own real property in the proposed
district.
(c) The petition must:
(1) describe the boundaries of the proposed district
by metes and bounds or, if there is a recorded map or plat and survey
of the area, by lot and block number;
(2) state the specific purposes for which the district
will be created;
(3) describe the general nature of the services
proposed to be provided;
(4) include a name of the district, which must be
generally descriptive of the location of the district, followed by
"Residential Recreation District"; and
(5) include a proposed list of initial directors.
Sec. 375A.023. ELECTION ORDER. (a) The board shall record
on its minutes the date the petition is filed and the date it is
certified by the clerk or secretary of the municipality.
(b) If the petition contains the required number of
signatures and is in proper order, the county commissioners court
shall order a referendum election to be held on a uniform election
date authorized by Section 41.001(a), Election Code.
(c) The county commissioners court shall state in the order
the proposition to be voted on in the referendum election. The
order is prima facie evidence of compliance with all provisions
necessary to give it validity.
Sec. 375A.024. ORDER CREATING DISTRICT. (a) Not later than
the 20th day after the date the county judge receives the returns of
an election, if a majority of the votes cast are for creation of the
district, the judge shall make an entry in the records of the
commissioners court that the district is created. The judge shall
include in the entry the description of the district's boundaries.
The creation of the district is effective on the date the entry is
made.
(b) A certified copy of the entry and a plat of the district
must be recorded in the deed records of the county in which the
district is located.
[Sections 375A.025-375A.040 reserved for expansion]
SUBCHAPTER C. BOUNDARIES
Sec. 375A.041. COUNTY ORDER CHANGING BOUNDARIES. The
county commissioners court by order may change the boundaries of
the district.
Sec. 375A.042. MISTAKE IN BOUNDARY DESCRIPTION. A mistake
in the field notes or in copying the field notes of the boundaries
of a district does not affect:
(1) the district's organization, existence, and
validity;
(2) the district's right to impose and collect an
assessment or tax; or
(3) the legality or operation of the district or its
governing body.
Sec. 375A.043. ANNEXATION. A district may not annex any
other area.
Sec. 375A.044. EXCLUDING TERRITORY. (a) After a hearing,
the board by order may exclude land from the district's territory.
(b) The board on its own motion may call a hearing on the
question of the exclusion of land from the district's territory if
the board considers the exclusions practicable, just, or desirable.
(c) The board shall call a hearing on the exclusion of land
from the district's territory if a landowner files with the
secretary of the board a written petition requesting the hearing.
[Sections 375A.045-375A.060 reserved for expansion]
SUBCHAPTER D. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS
Sec. 375A.061. DIRECTORS; TERMS. (a) A district is
governed by a board of five directors who serve staggered four-year
terms.
(b) The board is responsible for the management, operation,
and control of district property.
Sec. 375A.062. INITIAL DIRECTORS; TERMS. (a) The county
commissioners court shall appoint the initial board from the list
of directors proposed under Section 375A.022(c)(5).
(b) The initial directors shall draw lots to determine which
two shall serve until the first regularly scheduled election of
directors and which three shall serve until the second regularly
scheduled election of directors.
Sec. 375A.063. ELECTION OF DIRECTORS. On the uniform
election date in May of each even-numbered year, the appropriate
number of directors shall be elected.
Sec. 375A.064. QUALIFICATIONS OF DIRECTOR. To be qualified
to serve as a director, a person must be at least 18 years old and:
(1) a resident of the district;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or
otherwise, of a corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that
owns property in the district; or
(5) an agent, employee, or tenant of a person covered
by Subdivision (2), (3), or (4).
Sec. 375A.065. REMOVAL OF DIRECTOR. The county
commissioners court, on petition by a majority of the remaining
directors and after notice and hearing, may remove a director for
misconduct or failure to carry out the director's duties.
Sec. 375A.066. BOARD VACANCY. A vacancy in the office of
director shall be filled by appointment by the remaining members of
the board for the unexpired term.
Sec. 375A.067. DIRECTOR'S OATH OR AFFIRMATION. As soon as
practicable after a director is appointed or elected, the director
shall take the constitutional oath or affirmation of office. The
oath or affirmation shall be filed with the district and the
district shall retain the oath or affirmation in the district
records.
Sec. 375A.068. OFFICERS. After directors have qualified by
taking the oath or affirmation, the board shall organize by
electing a president, a vice president, a secretary, and any other
officers the board considers necessary.
Sec. 375A.069. BOARD POSITION NOT CIVIL OFFICE OF
EMOLUMENT. A position on the board may not be construed to be a
civil office of emolument for any purpose, including those purposes
described by Section 40, Article XVI, Texas Constitution.
Sec. 375A.070. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
EXPENSES. A director is not entitled to compensation for service on
the board but is entitled to be reimbursed for necessary expenses
incurred in carrying out the duties and responsibilities of a
director.
Sec. 375A.071. QUORUM. The concurrence of a majority of a
quorum of directors is required for any official action of the
district except that the written consent of at least four directors
is required to authorize the imposition of assessments, the levy of
taxes, or the imposition of impact fees.
Sec. 375A.072. PARTICIPATION IN VOTING. (a)
Notwithstanding any other law, a person who qualifies to serve on
the board under this section is qualified to serve as a director and
participate in all votes pertaining to the business of the
district.
(b) A director who has a beneficial interest in a business
entity that will receive a pecuniary benefit from an action of the
board may participate in discussion and vote on that action if a
majority of the board has a similar interest in the same action or
if all other similar business entities in the district will receive
a similar pecuniary benefit.
(c) An employee of a public entity may serve on the board of
directors of the district, but the public employee may not
participate in the discussion of or vote on any matter regarding
assessments on or contracts with the public entity of which the
director is an employee.
[Sections 375A.073-375A.090 reserved for expansion]
SUBCHAPTER E. POWERS AND DUTIES
Sec. 375A.091. GENERAL POWERS OF DISTRICT. (a) Except as
provided by this chapter, a district has the rights, powers,
privileges, authority, and functions conferred by the general law
of this state applicable to conservation and reclamation districts
created under Section 59, Article XVI, Texas Constitution,
including those conferred by Chapter 54, Water Code.
(b) The district may contract and manage its affairs and
money for any corporate purpose.
(c) The district has all the rights, powers, privileges,
authority, and functions conferred by the general law of this state
applicable to conservation and reclamation districts created under
Section 59, Article XVI, Texas Constitution, including those
conferred by Chapter 54, Water Code, and those of road districts and
road utility districts created pursuant to Section 52, Article III,
Texas Constitution, including the power to impose ad valorem taxes.
If the district is located wholly or partly in the extraterritorial
jurisdiction of a municipality, the ad valorem tax rate of the
district may not exceed the ad valorem tax rate of the municipality.
(d) A district has the rights, privileges, and functions of
a road utility district provided by Chapters 365 and 441,
Transportation Code.
Sec. 375A.092. SPECIFIC POWERS. (a) A district has the
powers necessary or convenient to carry out and effect the purposes
and provisions of this chapter, including the powers granted in
this section.
(b) A district has perpetual succession.
(c) A district may sue and be sued, institute and prosecute
suits without giving security for costs, and appeal from a judgment
without giving supersedeas or cost bond.
(d) A district may incur liabilities, borrow money on terms
and conditions the board determines, and issue notes or other
obligations.
(e) A district may acquire by grant, purchase, gift, devise,
lease, or otherwise, and may hold, use, sell, lease, or dispose of
real and personal property, and licenses, patents, rights, and
interests necessary, convenient, or useful for the full exercise of
any of its powers under this chapter.
(f) A district may acquire, construct, complete, develop,
own, operate, and maintain permanent improvements and provide
services inside and outside its boundaries.
(g) A district may enter into agreements with a person or
entity, public or private, for the joint use of facilities,
installations, and property.
(h) A district may establish and maintain reasonable and
nondiscriminatory rates, fares, tolls, charges, rents, or other
fees or compensation for the use of the improvements constructed,
operated, or maintained by the district.
(i) A district may enter into contracts, leases, and
agreements with and accept grants and loans from the United States
and its departments and agencies, the state and its agencies,
counties, municipalities, and political subdivisions, public or
private corporations, including a nonprofit corporation created
under a resolution of the board, and other persons and may perform
all acts necessary for the full exercise of the powers vested in it
on terms and conditions and for the term the board may determine to
be advisable.
(j) A district may acquire property under conditional sales
contracts, leases, equipment trust certificates, or any other form
of contract or trust agreement.
(k) A district may sell, lease, convey, or otherwise dispose
of any of its rights, interests, or properties that are not needed
for or, in the case of leases, that are not inconsistent with the
efficient operation and maintenance of the district's
improvements. A district may sell, lease, or otherwise dispose of
any surplus material or personal or real property not needed for its
requirements or for the purpose of carrying out its powers under
this chapter.
(l) A district may lease projects or any part of a project to
or contract for the use or operation of the projects or any part of a
project by any operator.
(m) A district may conduct hearings and take testimony and
proof, under oath or affirmation, at public hearings, on any matter
necessary to carry out the purposes of this chapter.
(n) A district may procure and pay premiums to insurers for
insurance of any type in amounts considered necessary or advisable
by the board.
(o) A district may do anything necessary, convenient, or
desirable to carry out the powers expressly granted or implied by
this chapter.
Sec. 375A.093. USE AND ALTERATION OF PUBLIC WAYS. (a) With
the consent of the county, the district may use the streets, alleys,
roads, highways, and other public ways and relocate, raise,
reroute, change the grade of, and alter the construction of any
street, alley, road, highway, railroad, electric lines and
facilities, telegraph and telephone properties and facilities,
pipelines and facilities, conduits and facilities, and other
property, whether publicly or privately owned, as necessary or
useful in the construction, reconstruction, repair, maintenance,
and operation of the system or to have those things done at the
district's sole expense.
(b) The district may not proceed with any action to change,
alter, or damage the property or facilities of the state, its
municipal corporations, agencies, or political subdivisions or of
owners rendering public services, or that will disrupt those
services being provided by others, or to otherwise inconvenience
the owners of that property or those facilities without having
first obtained the written consent of those owners. If the owners
of the property or facilities desire to handle the relocation,
raising, change in the grade of, or alteration in the construction
of the property or facilities with their own personnel or have the
work done by contractors of their own choosing, the district may
enter into agreements with the owners providing for the necessary
relocations, changes, or alterations of the property or facilities
by the owners or contractors and the reimbursement by the district
to those owners of the costs incurred by the owners in making those
relocations, changes, or alterations or having them accomplished by
contractors.
(c) If a district, in exercising any of the powers conferred
by this chapter, requires the relocation, adjustment, raising,
lowering, rerouting, or changing the grade of or altering the
construction of any street, alley, road, highway, overpass,
underpass, railroad track, bridge, or other facilities or property,
any electric lines, conduits, or other facilities or property, any
telephone or telegraph lines, conduits, or other facilities or
property, any gas transmission or distribution pipes, pipelines,
mains, or other facilities or property, any water, sanitary sewer
or storm sewer pipes, pipelines, mains, or other facilities or
property, any cable television lines, cables, conduits, or other
facilities or property, or any other pipelines and any facilities
or properties relating to those pipelines, those relocations,
adjustments, raising, lowering, rerouting, or changing of grade or
altering of construction must be accomplished at the sole cost and
expense of the district, and damages that are suffered by the owners
of the property or facilities shall be borne by the district.
Sec. 375A.094. NO EMINENT DOMAIN POWER. A district may not
exercise the power of eminent domain.
Sec. 375A.095. COST OF ADMINISTRATION. The district may
not pass any cost of administration on to any other governmental
entity except as provided by a contract with that governmental
entity.
Sec. 375A.096. SPECIFIC POWERS AND DUTIES OF BOARD. (a)
The board may:
(1) employ all persons, firms, partnerships, or
corporations considered necessary by the board for the conduct of
the affairs of the district, including a general manager,
bookkeepers, auditors, engineers, attorneys, financial advisors,
peace or traffic control officers, architects, and operating or
management companies and prescribe the duties, tenure, and
compensation of each;
(2) dismiss employees;
(3) adopt a district seal;
(4) invest money of the district in any investments
authorized by Subchapter A, Chapter 2256, Government Code;
(5) by resolution provide that an authorized
representative manage the district's money and invest and reinvest
the money of the district on terms the board considers advisable;
(6) establish a fiscal year for the district;
(7) establish a complete system of accounts for the
district; and
(8) designate one or more banks to serve as the
depository bank or banks.
(b) The board each year shall have prepared an audit of the
district's affairs by an independent certified public accountant or
a firm of independent certified public accountants. The board
shall make the audit open to public inspection.
(c) District money shall be deposited in the designated
depository bank or banks unless otherwise required by orders or
resolutions authorizing the issuance of the district's bonds or
notes. To the extent that funds in the depository bank or banks are
not insured by the Federal Deposit Insurance Corporation, they must
be secured in the manner provided by law for the security of funds
of counties. The board by resolution may authorize a designated
representative to supervise the substitution of securities pledged
to secure the district's money.
(d) The board may adopt and enforce reasonable rules and
regulations governing the administration of the district and its
programs and projects.
(e) The name of the district may be changed by board
resolution.
Sec. 375A.097. HEARINGS EXAMINER; ADMINISTRATIVE
PROCEDURE ACT. (a) The board may appoint a hearings examiner to
conduct any hearing called by the board, including a hearing
required by Chapter 395. The hearings examiner may be an employee
of the district or a member of the district's board.
(b) A hearing shall be conducted in accordance with Chapter
2001, Government Code.
[Sections 375A.098-375A.110 reserved for expansion]
SUBCHAPTER F. ASSESSMENTS
Sec. 375A.111. GENERAL POWERS RELATING TO ASSESSMENTS. In
addition to the powers provided herein, the board of a district may
undertake improvement projects and services that confer a special
benefit on all or a definable part of the district. The board may
impose and collect special assessments on property in that area,
based on the benefit conferred by the improvement project or
services, to pay all or part of the cost of the project or services.
If the board determines that there is a benefit to the district, the
district may provide improvement projects and services to an area
outside the boundaries of the district.
Sec. 375A.112. SPECIFIC POWERS RELATING TO ASSESSMENTS.
(a) An improvement project or services provided by the district may
include the construction, acquisition, improvement, relocation,
operation, maintenance, or provision of:
(1) landscaping; lighting, banners, and signs;
streets and sidewalks; pedestrian skywalks, crosswalks, and
tunnels; seawalls; marinas; drainage and navigation improvements;
pedestrian malls; solid waste, water, sewer, and power facilities,
including electrical, gas, steam, cogeneration, and chilled water
facilities; parks, plazas, lakes, rivers, bayous, ponds, and
recreation and scenic areas; historic areas; fountains; works of
art; off-street parking facilities, bus terminals, heliports, and
mass transit systems; and the cost of any demolition in connection
with providing any of the improvement projects;
(2) other improvements similar to those described in
Subdivision (1);
(3) the acquisition of real property or any interest
in real property in connection with an improvement project or
services authorized by this chapter, Chapter 54, Water Code, or
Chapter 365 or 441, Transportation Code;
(4) special supplemental services for advertising,
economic development, promoting the area in the district, health
and sanitation, public safety, maintenance, security, business
recruitment, development, elimination or relief of traffic
congestion, recreation, and cultural enhancement; and
(5) expenses incurred in the establishment,
administration, maintenance, and operation of the district or any
of its improvement projects or services.
(b) An improvement project on two or more streets or two or
more types of improvements may be included in one proceeding and
financed as one improvement project.
Sec. 375A.113. PROPOSED ASSESSMENTS. Improvement projects
or services may not be financed.
Sec. 375A.114. NOTICE OF HEARING. (a) Notice of the
hearing shall be given in a newspaper with general circulation in
the county in which the district is located. The final publication
must be made not later than the 30th day before the date of the
hearing.
(b) The notice must include:
(1) the time and place of the hearing;
(2) the general nature of the proposed improvement
project or services;
(3) the estimated cost of the improvement, including
interest during construction; and
(4) the proposed method of assessment.
(c) Written notice containing the information required by
Subsection (b) shall be mailed by certified mail, return receipt
requested, not later than the 30th day before the date of the
hearing. The notice shall be mailed to each property owner in the
district who will be subject to assessment at the current address of
the property to be assessed as reflected on the tax rolls.
Sec. 375A.115. CONCLUSION OF HEARING; FINDINGS. (a) A
hearing on the improvement project or services conducted by the
board or a hearings examiner may be adjourned from time to time.
(b) At the conclusion of the hearing, the board by
resolution or order shall make findings relating to the
advisability of the improvement project or services, the nature of
the improvement project or services, the estimated cost, the area
benefited, the method of assessment, and the method and time for
payment of the assessment.
(c) If a hearings examiner is appointed to conduct the
hearing, after conclusion of the hearing, the hearings examiner
shall file with the board a report stating the examiner's findings
and conclusions.
Sec. 375A.116. AREA TO BE ASSESSED. (a) The area of the
district to be assessed according to the findings of the board may
be the entire district or any part of the district and may be less
than the area proposed in the notice of the hearing.
(b) The area to be assessed may not include property that is
not within the district boundaries at the time of the hearing unless
there is an additional hearing, preceded by the required notice.
Sec. 375A.117. OBJECTIONS; IMPOSITION OF ASSESSMENT. (a)
At a hearing on proposed assessments, at any adjournment of the
hearing, or after consideration of the hearings examiner's report,
the board shall hear and rule on all objections to each proposed
assessment.
(b) The board may amend proposed assessments for any parcel.
(c) After all objections have been heard and action has been
taken with regard to those objections, the board by order or
resolution:
(1) shall impose the assessments as special
assessments on the property;
(2) shall specify the method of payment of the
assessments; and
(3) may provide that those assessments be paid in
periodic installments, including interest.
(d) Periodic installments must be in amounts sufficient to
meet annual costs for services and improvements as provided herein
and continue for the number of years required to retire
indebtedness or pay for the services to be rendered. The board may
provide interest charges or penalties for failure to make timely
payment and also may levy an amount to cover delinquencies and
expenses of collection.
(e) If assessments are imposed for more than one service or
improvement project, the board may provide that assessments
collected for one improvement project or service may be borrowed to
be used for another service or improvement project.
(f) The board shall establish a procedure for the
distribution or use of any assessments in excess of those necessary
to finance the improvement project or services for which those
assessments were collected.
Sec. 375A.118. APPORTIONMENT OF COST. The portion of the
cost of an improvement project or services to be assessed against
the property in the district shall be apportioned by the board based
on the special benefits accruing to the property because of the
improvement project or services. The cost may be assessed:
(1) equally by front foot or by square foot of land
area against all property in the district;
(2) against property according to the value of the
property as determined by the board, with or without regard to
structures or other improvements on the property; or
(3) on any other reasonable assessment plan that
results in imposing fair and equitable shares of the cost on
property similarly benefited.
Sec. 375A.119. ASSESSMENTS. The district may assess
residential and business property at different rates.
Sec. 375A.120. ASSESSMENT ROLL. If the total cost of an
improvement project or service is determined, the board shall
impose the assessments against each parcel of land against which an
assessment may be levied in the district. With regard to an
assessment for services, the board may impose an annual assessment
that may be lower but not higher than the initial assessment. The
board shall have an assessment roll prepared showing the
assessments against each property and the board's basis for the
assessment. The assessment roll shall be filed with the secretary
of the board or other officer who performs the function of secretary
and be open for public inspection.
Sec. 375A.121. INTEREST ON ASSESSMENTS; LIEN. (a)
Assessments bear interest at a rate specified by the board that may
not exceed the interest rate permitted by Chapter 1204, Government
Code.
(b) Interest on an assessment between the effective date of
the order or resolution imposing the assessment and the date the
first installment and any related penalty is payable shall be added
to the first installment. The interest or penalties on all unpaid
installments shall be added to each subsequent installment until
paid.
(c) An assessment or any reassessment and any interest and
penalties on that assessment or reassessment is a lien against the
property until it is paid.
(d) The owner of any property assessed may pay at any time
the entire assessment against any lot or parcel with accrued
interest to the date of the payment.
Sec. 375A.122. SUPPLEMENTAL ASSESSMENTS. After notice and
hearing in the manner required for original assessments, the board
may impose supplemental assessments to correct omissions or
mistakes in the assessment:
(1) relating to the total cost of the improvement
project or services; or
(2) covering delinquencies or costs of collection.
Sec. 375A.123. APPEAL. (a) After determination of an
assessment, a property owner may appeal the assessment to the
board. The property owner must file a notice of appeal with the
board not later than the 30th day after the date that the assessment
is adopted. The board shall set a date to hear the appeal.
(b) The property owner may appeal the board's decision on
the assessment to a court of competent jurisdiction. The property
owner must file notice of the appeal with the court of competent
jurisdiction not later than the 30th day after the date of the
board's final decision with respect to the assessment.
(c) Failure to file either of the notices in the time
required by this section results in a loss of the right to appeal
the assessment.
(d) If an assessment against a parcel of land is set aside by
a court of competent jurisdiction, found excessive by the board, or
determined to be invalid by the board, the board may make a
reassessment or new assessment of the parcel.
Sec. 375A.124. APPEAL OF ORDER. A person against whom an
assessment is made by board order may appeal the assessment to a
district court in the county in which the district is located in the
manner provided for the appeal of contested cases under Chapter
2001, Government Code. Review by the district court is by trial de
novo.
[Sections 375A.125-375A.160 reserved for expansion]
SUBCHAPTER G. EXEMPTIONS
Sec. 375A.161. GOVERNMENTAL ENTITIES; ASSESSMENTS. Terms
for payment of assessments by municipalities, counties, other
political subdivisions, and organizations exempt from federal
income tax under Section 501(c)(3), Internal Revenue Code of 1986,
shall be established by contract. Municipalities, counties, and
other political subdivisions may contract with the district under
terms and conditions those entities consider advisable to provide
for the payment of assessments.
Sec. 375A.162. RESIDENTIAL PROPERTY EXEMPTED BY BOARD. The
board may:
(1) exempt residential property from all or a part of
the assessments imposed; or
(2) determine that residential property will not be
benefited by the proposed improvement project or services.
[Sections 375A.163-375A.180 reserved for expansion]
SUBCHAPTER H. FUNDS
Sec. 375A.181. MONEY AVAILABLE FOR PAYMENT OF IMPROVEMENT
PROJECTS AND SERVICES. (a) The cost of any improvement project or
services, including interest during construction, may be paid from
general or available funds, assessments, or from taxes, revenues,
assessments, grants, gifts, contracts, leases, or any combination
of those sources of money.
(b) During the progress of any improvement project or
services, the board may issue temporary notes to pay the costs of
the improvement project or services.
[Sections 375A.182-375A.200 reserved for expansion]
SUBCHAPTER I. BONDS OR OBLIGATIONS; COUNTY APPROVAL FOR PROJECT
Sec. 375A.201. GENERAL OBLIGATION AND REVENUE BONDS. The
district has no authority to issue bonds.
Sec. 375A.202. COUNTY APPROVAL REQUIRED FOR IMPROVEMENT
PROJECTS. (a) A district must obtain approval from the county of
the plans and specifications of any improvement project that
involves the use of the rights-of-way of streets, roads, or
highways or the use of municipal land or any easements granted by
the county.
(b) The county is not obligated to pay any obligations of
the district.
[Sections 375A.203-375A.240 reserved for expansion]
SUBCHAPTER J. ELECTIONS
Sec. 375A.241. TIME OF ELECTION. (a) A maintenance tax
election and any other election held in a district may be held at
the same time and in conjunction with any other election.
(b) Elections shall be called and held as provided by the
appropriate provisions of Chapter 54, Water Code.
Sec. 375A.242. ELECTION CALLED BY BOARD. The board may call
an election for the purpose of voting on any measure.
[Sections 375A.243-375A.260 reserved for expansion]
SUBCHAPTER K. DISSOLUTION
Sec. 375A.261. DISSOLUTION BY BOARD VOTE. Except as
limited herein, the board of a district by majority vote may
dissolve the district at any time.
Sec. 375A.262. DISSOLUTION BY PETITION BY OWNERS. Except
as limited herein, the board shall dissolve the district on written
petition filed with the board by the owners of:
(1) 75 percent or more of the assessed value of the
property in the district based on the most recent certified county
property tax rolls; or
(2) 75 percent or more of the surface area of the
district, excluding streets, roads, highways, utility
rights-of-way, other public areas, and other property exempt from
assessment under Section 375A.162, according to the most recent
certified county property tax rolls.
Sec. 375A.263. DISSOLUTION BY ORDER OF COMMISSIONERS COURT.
The commissioners court of the county by a vote of not less than a
three-fourths majority of the board may by order dissolve the
district. The county shall take over the property and assets of the
district.
Sec. 375A.264. DISSOLUTION BY MUNICIPAL ANNEXATION. A
municipality may annex the district only if the municipality
annexes the district in its entirety and the municipality provides
all of the services to the residents of the district that the
district is providing. On annexation by a municipality, the
district is dissolved.
[Sections 375A.265-375A.280 reserved for expansion]
SUBCHAPTER L. CONTRACTS WITH DISTRICT
Sec. 375A.281. CONTRACTS WITH DISTRICT. Notwithstanding
any other law, a state agency, municipality, county, other
political subdivision, corporation, individual, or other entity
may contract with a district without further authorization to carry
out the purposes of this chapter.
[Sections 375A.282-375A.300 reserved for expansion]
SUBCHAPTER M. TAXES AND ZONING
Sec. 375A.301. SALES AND USE TAX. A district may not impose
a sales and use tax.
Sec. 375A.302. ZONING AND PLANNING. (a) A district has the
power of a municipality or county under Chapters 211 and 212 in the
area of the district, including an area of the district that is in
the boundaries of a municipality's or county's limited purpose
jurisdiction. On annexation of an area of the district for full
purposes by a municipality or county, the district's power to
regulate the area under Chapter 211 or 212 expires. The district
regains the power in an area if the municipality or county
disannexes the area.
(b) The board may divide the district into distinct areas as
provided by Section 211.005 to accomplish the purposes of this
chapter and Chapter 211.
Sec. 375A.303. REGIONAL DEVELOPMENT AGREEMENTS. (a) A
district may enter into regional development agreements with the
county that created the district, other municipalities, counties,
school districts, institutions of higher education, other
political subdivisions, and private interests to:
(1) promote and advance long-term economic
development in the district; or
(2) achieve the purposes for the district's creation
and to implement the powers provided to the district under this
chapter.
(b) A district, a municipality or county, a school district
whose boundary overlaps with a portion of a district, or an
institution of higher education may enter into an agreement to:
(1) fund improvements to school facilities and teacher
compensation of school districts or institutions of higher
education in the district; and
(2) develop programs provided for herein.
(c) Any agreement entered into with a school district under
this section shall be designed in such a way that the school
district funding under Title 2, Education Code, shall be not less
than the school district would have received had the school
district not entered into the agreement. This provision may be
waived by a school district board of trustees by specific action
suspending the provisions of this subsection.
SECTION 2. This Act takes effect September 1, 2009.