Texas 2009 - 81st Regular

Texas House Bill HB4306 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R9456 GCB-D
2	2	By: Kuempel H.B. No. 4306
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to authorizing the creation of a residential recreation
8	8	district in certain counties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subtitle A, Title 12, Local Government Code, is
11	11	amended by adding Chapter 375A to read as follows:
12	12	CHAPTER 375A. RESIDENTIAL RECREATION DISTRICTS
13	13	SUBCHAPTER A. GENERAL PROVISIONS
14	14	Sec. 375A.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The
15	15	creation of a residential recreation district is declared to be
16	16	essential to the accomplishment of the purposes of Section 52,
17	17	Article III, Section 59, Article XVI, and Section 52-a, Article
18	18	III, Texas Constitution, and to the accomplishment of the other
19	19	public purposes stated in this chapter.
20	20	(b) The creation of districts is necessary to promote,
21	21	develop, encourage, and maintain the public welfare in the
22	22	residential areas of certain counties.
23	23	(c) A district is created to supplement and not supplant the
24	24	services of the municipality or county. This chapter or the
25	25	creation of a district under this chapter may not be interpreted to
26	26	relieve a municipality or county from providing services to an area
27	27	included in the district or to release the municipality or county
28	28	from an obligation to provide services to an area included in the
29	29	district.
30	30	(d) All of the land and other property to be included inside
31	31	a district's boundaries will be benefited by the works and projects
32	32	that are to be accomplished and the services to be provided by the
33	33	district.
34	34	(e) The district is created to serve a public use and
35	35	benefit.
36	36	(f) The creation of a district is essential to further the
37	37	public purposes of preserving the residential nature and
38	38	recreational use of property in the district and is in the public
39	39	interest.
40	40	(g) A district will promote the health, safety, and general
41	41	welfare of residents and the general public.
42	42	(h) A district is designed to provide needed funding for
43	43	residential recreational areas to preserve, maintain, and enhance
44	44	the public health, safety, and general welfare of its residents.
45	45	Sec. 375A.002. DEFINITIONS. In this chapter:
46	46	(1) "Board" means a board of directors of a district.
47	47	(2) "Bond" means any type of interest-bearing
48	48	obligation, including a bond, note, bond anticipation note,
49	49	certificate of participation, lease, contract, or other evidence of
50	50	indebtedness.
51	51	(3) "District" means a residential recreation
52	52	district created under this chapter.
53	53	Sec. 375A.003. NATURE OF DISTRICT; TORT CLAIMS. (a) A
54	54	district is a governmental agency and a political subdivision of
55	55	this state.
56	56	(b) A district is a unit of government for purposes of
57	57	Chapter 101, Civil Practice and Remedies Code (Texas Tort Claims
58	58	Act), and operations of a district are considered to be essential
59	59	governmental functions and not proprietary functions for all
60	60	purposes, including the application of the Texas Tort Claims Act.
61	61	[Sections 375A.004-375A.020 reserved for expansion]
62	62	SUBCHAPTER B. CREATION OF DISTRICT
63	63	Sec. 375A.021. AREAS ELIGIBLE FOR CREATION OF DISTRICT.
64	64	(a) A district may be created only in:
65	65	(1) a county with a population of more than 85,000 and
66	66	less than 100,000 that contains four or more lakes formed for
67	67	hydroelectric power; and
68	68	(2) a primarily residential area composed of
69	69	waterfront properties, platted subdivisions containing waterfront
70	70	properties, or properties adjoining waterfront properties in a
71	71	county described by Subdivision (1).
72	72	(b) A district may include noncontiguous territory if the
73	73	parcels included in the district's territory are properly described
74	74	by metes and bounds or by lot and block number.
75	75	(c) A district may include the extraterritorial
76	76	jurisdiction of a municipality with a population of 25,000 or more.
77	77	Sec. 375A.022. PETITION. (a) A district may be created
78	78	only if the governing body of the county in which the district is
79	79	proposed to be located receives a petition requesting creation of a
80	80	district.
81	81	(b) The petition must be signed by:
82	82	(1) the owners of a majority of the assessed value of
83	83	the real property in the proposed district, according to the most
84	84	recent certified county property tax rolls; or
85	85	(2) 25 persons who own real property in the proposed
86	86	district if, according to the most recent certified county property
87	87	tax rolls, more than 25 persons own real property in the proposed
88	88	district.
89	89	(c) The petition must:
90	90	(1) describe the boundaries of the proposed district
91	91	by metes and bounds or, if there is a recorded map or plat and survey
92	92	of the area, by lot and block number;
93	93	(2) state the specific purposes for which the district
94	94	will be created;
95	95	(3) describe the general nature of the services
96	96	proposed to be provided;
97	97	(4) include a name of the district, which must be
98	98	generally descriptive of the location of the district, followed by
99	99	"Residential Recreation District"; and
100	100	(5) include a proposed list of initial directors.
101	101	Sec. 375A.023. ELECTION ORDER. (a) The board shall record
102	102	on its minutes the date the petition is filed and the date it is
103	103	certified by the clerk or secretary of the municipality.
104	104	(b) If the petition contains the required number of
105	105	signatures and is in proper order, the county commissioners court
106	106	shall order a referendum election to be held on a uniform election
107	107	date authorized by Section 41.001(a), Election Code.
108	108	(c) The county commissioners court shall state in the order
109	109	the proposition to be voted on in the referendum election. The
110	110	order is prima facie evidence of compliance with all provisions
111	111	necessary to give it validity.
112	112	Sec. 375A.024. ORDER CREATING DISTRICT. (a) Not later than
113	113	the 20th day after the date the county judge receives the returns of
114	114	an election, if a majority of the votes cast are for creation of the
115	115	district, the judge shall make an entry in the records of the
116	116	commissioners court that the district is created. The judge shall
117	117	include in the entry the description of the district's boundaries.
118	118	The creation of the district is effective on the date the entry is
119	119	made.
120	120	(b) A certified copy of the entry and a plat of the district
121	121	must be recorded in the deed records of the county in which the
122	122	district is located.
123	123	[Sections 375A.025-375A.040 reserved for expansion]
124	124	SUBCHAPTER C. BOUNDARIES
125	125	Sec. 375A.041. COUNTY ORDER CHANGING BOUNDARIES. The
126	126	county commissioners court by order may change the boundaries of
127	127	the district.
128	128	Sec. 375A.042. MISTAKE IN BOUNDARY DESCRIPTION. A mistake
129	129	in the field notes or in copying the field notes of the boundaries
130	130	of a district does not affect:
131	131	(1) the district's organization, existence, and
132	132	validity;
133	133	(2) the district's right to impose and collect an
134	134	assessment or tax; or
135	135	(3) the legality or operation of the district or its
136	136	governing body.
137	137	Sec. 375A.043. ANNEXATION. A district may not annex any
138	138	other area.
139	139	Sec. 375A.044. EXCLUDING TERRITORY. (a) After a hearing,
140	140	the board by order may exclude land from the district's territory.
141	141	(b) The board on its own motion may call a hearing on the
142	142	question of the exclusion of land from the district's territory if
143	143	the board considers the exclusions practicable, just, or desirable.
144	144	(c) The board shall call a hearing on the exclusion of land
145	145	from the district's territory if a landowner files with the
146	146	secretary of the board a written petition requesting the hearing.
147	147	[Sections 375A.045-375A.060 reserved for expansion]
148	148	SUBCHAPTER D. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS
149	149	Sec. 375A.061. DIRECTORS; TERMS. (a) A district is
150	150	governed by a board of five directors who serve staggered four-year
151	151	terms.
152	152	(b) The board is responsible for the management, operation,
153	153	and control of district property.
154	154	Sec. 375A.062. INITIAL DIRECTORS; TERMS. (a) The county
155	155	commissioners court shall appoint the initial board from the list
156	156	of directors proposed under Section 375A.022(c)(5).
157	157	(b) The initial directors shall draw lots to determine which
158	158	two shall serve until the first regularly scheduled election of
159	159	directors and which three shall serve until the second regularly
160	160	scheduled election of directors.
161	161	Sec. 375A.063. ELECTION OF DIRECTORS. On the uniform
162	162	election date in May of each even-numbered year, the appropriate
163	163	number of directors shall be elected.
164	164	Sec. 375A.064. QUALIFICATIONS OF DIRECTOR. To be qualified
165	165	to serve as a director, a person must be at least 18 years old and:
166	166	(1) a resident of the district;
167	167	(2) an owner of property in the district;
168	168	(3) an owner of stock, whether beneficial or
169	169	otherwise, of a corporate owner of property in the district;
170	170	(4) an owner of a beneficial interest in a trust that
171	171	owns property in the district; or
172	172	(5) an agent, employee, or tenant of a person covered
173	173	by Subdivision (2), (3), or (4).
174	174	Sec. 375A.065. REMOVAL OF DIRECTOR. The county
175	175	commissioners court, on petition by a majority of the remaining
176	176	directors and after notice and hearing, may remove a director for
177	177	misconduct or failure to carry out the director's duties.
178	178	Sec. 375A.066. BOARD VACANCY. A vacancy in the office of
179	179	director shall be filled by appointment by the remaining members of
180	180	the board for the unexpired term.
181	181	Sec. 375A.067. DIRECTOR'S OATH OR AFFIRMATION. As soon as
182	182	practicable after a director is appointed or elected, the director
183	183	shall take the constitutional oath or affirmation of office. The
184	184	oath or affirmation shall be filed with the district and the
185	185	district shall retain the oath or affirmation in the district
186	186	records.
187	187	Sec. 375A.068. OFFICERS. After directors have qualified by
188	188	taking the oath or affirmation, the board shall organize by
189	189	electing a president, a vice president, a secretary, and any other
190	190	officers the board considers necessary.
191	191	Sec. 375A.069. BOARD POSITION NOT CIVIL OFFICE OF
192	192	EMOLUMENT. A position on the board may not be construed to be a
193	193	civil office of emolument for any purpose, including those purposes
194	194	described by Section 40, Article XVI, Texas Constitution.
195	195	Sec. 375A.070. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
196	196	EXPENSES. A director is not entitled to compensation for service on
197	197	the board but is entitled to be reimbursed for necessary expenses
198	198	incurred in carrying out the duties and responsibilities of a
199	199	director.
200	200	Sec. 375A.071. QUORUM. The concurrence of a majority of a
201	201	quorum of directors is required for any official action of the
202	202	district except that the written consent of at least four directors
203	203	is required to authorize the imposition of assessments, the levy of
204	204	taxes, or the imposition of impact fees.
205	205	Sec. 375A.072. PARTICIPATION IN VOTING. (a)
206	206	Notwithstanding any other law, a person who qualifies to serve on
207	207	the board under this section is qualified to serve as a director and
208	208	participate in all votes pertaining to the business of the
209	209	district.
210	210	(b) A director who has a beneficial interest in a business
211	211	entity that will receive a pecuniary benefit from an action of the
212	212	board may participate in discussion and vote on that action if a
213	213	majority of the board has a similar interest in the same action or
214	214	if all other similar business entities in the district will receive
215	215	a similar pecuniary benefit.
216	216	(c) An employee of a public entity may serve on the board of
217	217	directors of the district, but the public employee may not
218	218	participate in the discussion of or vote on any matter regarding
219	219	assessments on or contracts with the public entity of which the
220	220	director is an employee.
221	221	[Sections 375A.073-375A.090 reserved for expansion]
222	222	SUBCHAPTER E. POWERS AND DUTIES
223	223	Sec. 375A.091. GENERAL POWERS OF DISTRICT. (a) Except as
224	224	provided by this chapter, a district has the rights, powers,
225	225	privileges, authority, and functions conferred by the general law
226	226	of this state applicable to conservation and reclamation districts
227	227	created under Section 59, Article XVI, Texas Constitution,
228	228	including those conferred by Chapter 54, Water Code.
229	229	(b) The district may contract and manage its affairs and
230	230	money for any corporate purpose.
231	231	(c) The district has all the rights, powers, privileges,
232	232	authority, and functions conferred by the general law of this state
233	233	applicable to conservation and reclamation districts created under
234	234	Section 59, Article XVI, Texas Constitution, including those
235	235	conferred by Chapter 54, Water Code, and those of road districts and
236	236	road utility districts created pursuant to Section 52, Article III,
237	237	Texas Constitution, including the power to impose ad valorem taxes.
238	238	If the district is located wholly or partly in the extraterritorial
239	239	jurisdiction of a municipality, the ad valorem tax rate of the
240	240	district may not exceed the ad valorem tax rate of the municipality.
241	241	(d) A district has the rights, privileges, and functions of
242	242	a road utility district provided by Chapters 365 and 441,
243	243	Transportation Code.
244	244	Sec. 375A.092. SPECIFIC POWERS. (a) A district has the
245	245	powers necessary or convenient to carry out and effect the purposes
246	246	and provisions of this chapter, including the powers granted in
247	247	this section.
248	248	(b) A district has perpetual succession.
249	249	(c) A district may sue and be sued, institute and prosecute
250	250	suits without giving security for costs, and appeal from a judgment
251	251	without giving supersedeas or cost bond.
252	252	(d) A district may incur liabilities, borrow money on terms
253	253	and conditions the board determines, and issue notes or other
254	254	obligations.
255	255	(e) A district may acquire by grant, purchase, gift, devise,
256	256	lease, or otherwise, and may hold, use, sell, lease, or dispose of
257	257	real and personal property, and licenses, patents, rights, and
258	258	interests necessary, convenient, or useful for the full exercise of
259	259	any of its powers under this chapter.
260	260	(f) A district may acquire, construct, complete, develop,
261	261	own, operate, and maintain permanent improvements and provide
262	262	services inside and outside its boundaries.
263	263	(g) A district may enter into agreements with a person or
264	264	entity, public or private, for the joint use of facilities,
265	265	installations, and property.
266	266	(h) A district may establish and maintain reasonable and
267	267	nondiscriminatory rates, fares, tolls, charges, rents, or other
268	268	fees or compensation for the use of the improvements constructed,
269	269	operated, or maintained by the district.
270	270	(i) A district may enter into contracts, leases, and
271	271	agreements with and accept grants and loans from the United States
272	272	and its departments and agencies, the state and its agencies,
273	273	counties, municipalities, and political subdivisions, public or
274	274	private corporations, including a nonprofit corporation created
275	275	under a resolution of the board, and other persons and may perform
276	276	all acts necessary for the full exercise of the powers vested in it
277	277	on terms and conditions and for the term the board may determine to
278	278	be advisable.
279	279	(j) A district may acquire property under conditional sales
280	280	contracts, leases, equipment trust certificates, or any other form
281	281	of contract or trust agreement.
282	282	(k) A district may sell, lease, convey, or otherwise dispose
283	283	of any of its rights, interests, or properties that are not needed
284	284	for or, in the case of leases, that are not inconsistent with the
285	285	efficient operation and maintenance of the district's
286	286	improvements. A district may sell, lease, or otherwise dispose of
287	287	any surplus material or personal or real property not needed for its
288	288	requirements or for the purpose of carrying out its powers under
289	289	this chapter.
290	290	(l) A district may lease projects or any part of a project to
291	291	or contract for the use or operation of the projects or any part of a
292	292	project by any operator.
293	293	(m) A district may conduct hearings and take testimony and
294	294	proof, under oath or affirmation, at public hearings, on any matter
295	295	necessary to carry out the purposes of this chapter.
296	296	(n) A district may procure and pay premiums to insurers for
297	297	insurance of any type in amounts considered necessary or advisable
298	298	by the board.
299	299	(o) A district may do anything necessary, convenient, or
300	300	desirable to carry out the powers expressly granted or implied by
301	301	this chapter.
302	302	Sec. 375A.093. USE AND ALTERATION OF PUBLIC WAYS. (a) With
303	303	the consent of the county, the district may use the streets, alleys,
304	304	roads, highways, and other public ways and relocate, raise,
305	305	reroute, change the grade of, and alter the construction of any
306	306	street, alley, road, highway, railroad, electric lines and
307	307	facilities, telegraph and telephone properties and facilities,
308	308	pipelines and facilities, conduits and facilities, and other
309	309	property, whether publicly or privately owned, as necessary or
310	310	useful in the construction, reconstruction, repair, maintenance,
311	311	and operation of the system or to have those things done at the
312	312	district's sole expense.
313	313	(b) The district may not proceed with any action to change,
314	314	alter, or damage the property or facilities of the state, its
315	315	municipal corporations, agencies, or political subdivisions or of
316	316	owners rendering public services, or that will disrupt those
317	317	services being provided by others, or to otherwise inconvenience
318	318	the owners of that property or those facilities without having
319	319	first obtained the written consent of those owners. If the owners
320	320	of the property or facilities desire to handle the relocation,
321	321	raising, change in the grade of, or alteration in the construction
322	322	of the property or facilities with their own personnel or have the
323	323	work done by contractors of their own choosing, the district may
324	324	enter into agreements with the owners providing for the necessary
325	325	relocations, changes, or alterations of the property or facilities
326	326	by the owners or contractors and the reimbursement by the district
327	327	to those owners of the costs incurred by the owners in making those
328	328	relocations, changes, or alterations or having them accomplished by
329	329	contractors.
330	330	(c) If a district, in exercising any of the powers conferred
331	331	by this chapter, requires the relocation, adjustment, raising,
332	332	lowering, rerouting, or changing the grade of or altering the
333	333	construction of any street, alley, road, highway, overpass,
334	334	underpass, railroad track, bridge, or other facilities or property,
335	335	any electric lines, conduits, or other facilities or property, any
336	336	telephone or telegraph lines, conduits, or other facilities or
337	337	property, any gas transmission or distribution pipes, pipelines,
338	338	mains, or other facilities or property, any water, sanitary sewer
339	339	or storm sewer pipes, pipelines, mains, or other facilities or
340	340	property, any cable television lines, cables, conduits, or other
341	341	facilities or property, or any other pipelines and any facilities
342	342	or properties relating to those pipelines, those relocations,
343	343	adjustments, raising, lowering, rerouting, or changing of grade or
344	344	altering of construction must be accomplished at the sole cost and
345	345	expense of the district, and damages that are suffered by the owners
346	346	of the property or facilities shall be borne by the district.
347	347	Sec. 375A.094. NO EMINENT DOMAIN POWER. A district may not
348	348	exercise the power of eminent domain.
349	349	Sec. 375A.095. COST OF ADMINISTRATION. The district may
350	350	not pass any cost of administration on to any other governmental
351	351	entity except as provided by a contract with that governmental
352	352	entity.
353	353	Sec. 375A.096. SPECIFIC POWERS AND DUTIES OF BOARD. (a)
354	354	The board may:
355	355	(1) employ all persons, firms, partnerships, or
356	356	corporations considered necessary by the board for the conduct of
357	357	the affairs of the district, including a general manager,
358	358	bookkeepers, auditors, engineers, attorneys, financial advisors,
359	359	peace or traffic control officers, architects, and operating or
360	360	management companies and prescribe the duties, tenure, and
361	361	compensation of each;
362	362	(2) dismiss employees;
363	363	(3) adopt a district seal;
364	364	(4) invest money of the district in any investments
365	365	authorized by Subchapter A, Chapter 2256, Government Code;
366	366	(5) by resolution provide that an authorized
367	367	representative manage the district's money and invest and reinvest
368	368	the money of the district on terms the board considers advisable;
369	369	(6) establish a fiscal year for the district;
370	370	(7) establish a complete system of accounts for the
371	371	district; and
372	372	(8) designate one or more banks to serve as the
373	373	depository bank or banks.
374	374	(b) The board each year shall have prepared an audit of the
375	375	district's affairs by an independent certified public accountant or
376	376	a firm of independent certified public accountants. The board
377	377	shall make the audit open to public inspection.
378	378	(c) District money shall be deposited in the designated
379	379	depository bank or banks unless otherwise required by orders or
380	380	resolutions authorizing the issuance of the district's bonds or
381	381	notes. To the extent that funds in the depository bank or banks are
382	382	not insured by the Federal Deposit Insurance Corporation, they must
383	383	be secured in the manner provided by law for the security of funds
384	384	of counties. The board by resolution may authorize a designated
385	385	representative to supervise the substitution of securities pledged
386	386	to secure the district's money.
387	387	(d) The board may adopt and enforce reasonable rules and
388	388	regulations governing the administration of the district and its
389	389	programs and projects.
390	390	(e) The name of the district may be changed by board
391	391	resolution.
392	392	Sec. 375A.097. HEARINGS EXAMINER; ADMINISTRATIVE
393	393	PROCEDURE ACT. (a) The board may appoint a hearings examiner to
394	394	conduct any hearing called by the board, including a hearing
395	395	required by Chapter 395. The hearings examiner may be an employee
396	396	of the district or a member of the district's board.
397	397	(b) A hearing shall be conducted in accordance with Chapter
398	398	2001, Government Code.
399	399	[Sections 375A.098-375A.110 reserved for expansion]
400	400	SUBCHAPTER F. ASSESSMENTS
401	401	Sec. 375A.111. GENERAL POWERS RELATING TO ASSESSMENTS. In
402	402	addition to the powers provided herein, the board of a district may
403	403	undertake improvement projects and services that confer a special
404	404	benefit on all or a definable part of the district. The board may
405	405	impose and collect special assessments on property in that area,
406	406	based on the benefit conferred by the improvement project or
407	407	services, to pay all or part of the cost of the project or services.
408	408	If the board determines that there is a benefit to the district, the
409	409	district may provide improvement projects and services to an area
410	410	outside the boundaries of the district.
411	411	Sec. 375A.112. SPECIFIC POWERS RELATING TO ASSESSMENTS.
412	412	(a) An improvement project or services provided by the district may
413	413	include the construction, acquisition, improvement, relocation,
414	414	operation, maintenance, or provision of:
415	415	(1) landscaping; lighting, banners, and signs;
416	416	streets and sidewalks; pedestrian skywalks, crosswalks, and
417	417	tunnels; seawalls; marinas; drainage and navigation improvements;
418	418	pedestrian malls; solid waste, water, sewer, and power facilities,
419	419	including electrical, gas, steam, cogeneration, and chilled water
420	420	facilities; parks, plazas, lakes, rivers, bayous, ponds, and
421	421	recreation and scenic areas; historic areas; fountains; works of
422	422	art; off-street parking facilities, bus terminals, heliports, and
423	423	mass transit systems; and the cost of any demolition in connection
424	424	with providing any of the improvement projects;
425	425	(2) other improvements similar to those described in
426	426	Subdivision (1);
427	427	(3) the acquisition of real property or any interest
428	428	in real property in connection with an improvement project or
429	429	services authorized by this chapter, Chapter 54, Water Code, or
430	430	Chapter 365 or 441, Transportation Code;
431	431	(4) special supplemental services for advertising,
432	432	economic development, promoting the area in the district, health
433	433	and sanitation, public safety, maintenance, security, business
434	434	recruitment, development, elimination or relief of traffic
435	435	congestion, recreation, and cultural enhancement; and
436	436	(5) expenses incurred in the establishment,
437	437	administration, maintenance, and operation of the district or any
438	438	of its improvement projects or services.
439	439	(b) An improvement project on two or more streets or two or
440	440	more types of improvements may be included in one proceeding and
441	441	financed as one improvement project.
442	442	Sec. 375A.113. PROPOSED ASSESSMENTS. Improvement projects
443	443	or services may not be financed.
444	444	Sec. 375A.114. NOTICE OF HEARING. (a) Notice of the
445	445	hearing shall be given in a newspaper with general circulation in
446	446	the county in which the district is located. The final publication
447	447	must be made not later than the 30th day before the date of the
448	448	hearing.
449	449	(b) The notice must include:
450	450	(1) the time and place of the hearing;
451	451	(2) the general nature of the proposed improvement
452	452	project or services;
453	453	(3) the estimated cost of the improvement, including
454	454	interest during construction; and
455	455	(4) the proposed method of assessment.
456	456	(c) Written notice containing the information required by
457	457	Subsection (b) shall be mailed by certified mail, return receipt
458	458	requested, not later than the 30th day before the date of the
459	459	hearing. The notice shall be mailed to each property owner in the
460	460	district who will be subject to assessment at the current address of
461	461	the property to be assessed as reflected on the tax rolls.
462	462	Sec. 375A.115. CONCLUSION OF HEARING; FINDINGS. (a) A
463	463	hearing on the improvement project or services conducted by the
464	464	board or a hearings examiner may be adjourned from time to time.
465	465	(b) At the conclusion of the hearing, the board by
466	466	resolution or order shall make findings relating to the
467	467	advisability of the improvement project or services, the nature of
468	468	the improvement project or services, the estimated cost, the area
469	469	benefited, the method of assessment, and the method and time for
470	470	payment of the assessment.
471	471	(c) If a hearings examiner is appointed to conduct the
472	472	hearing, after conclusion of the hearing, the hearings examiner
473	473	shall file with the board a report stating the examiner's findings
474	474	and conclusions.
475	475	Sec. 375A.116. AREA TO BE ASSESSED. (a) The area of the
476	476	district to be assessed according to the findings of the board may
477	477	be the entire district or any part of the district and may be less
478	478	than the area proposed in the notice of the hearing.
479	479	(b) The area to be assessed may not include property that is
480	480	not within the district boundaries at the time of the hearing unless
481	481	there is an additional hearing, preceded by the required notice.
482	482	Sec. 375A.117. OBJECTIONS; IMPOSITION OF ASSESSMENT. (a)
483	483	At a hearing on proposed assessments, at any adjournment of the
484	484	hearing, or after consideration of the hearings examiner's report,
485	485	the board shall hear and rule on all objections to each proposed
486	486	assessment.
487	487	(b) The board may amend proposed assessments for any parcel.
488	488	(c) After all objections have been heard and action has been
489	489	taken with regard to those objections, the board by order or
490	490	resolution:
491	491	(1) shall impose the assessments as special
492	492	assessments on the property;
493	493	(2) shall specify the method of payment of the
494	494	assessments; and
495	495	(3) may provide that those assessments be paid in
496	496	periodic installments, including interest.
497	497	(d) Periodic installments must be in amounts sufficient to
498	498	meet annual costs for services and improvements as provided herein
499	499	and continue for the number of years required to retire
500	500	indebtedness or pay for the services to be rendered. The board may
501	501	provide interest charges or penalties for failure to make timely
502	502	payment and also may levy an amount to cover delinquencies and
503	503	expenses of collection.
504	504	(e) If assessments are imposed for more than one service or
505	505	improvement project, the board may provide that assessments
506	506	collected for one improvement project or service may be borrowed to
507	507	be used for another service or improvement project.
508	508	(f) The board shall establish a procedure for the
509	509	distribution or use of any assessments in excess of those necessary
510	510	to finance the improvement project or services for which those
511	511	assessments were collected.
512	512	Sec. 375A.118. APPORTIONMENT OF COST. The portion of the
513	513	cost of an improvement project or services to be assessed against
514	514	the property in the district shall be apportioned by the board based
515	515	on the special benefits accruing to the property because of the
516	516	improvement project or services. The cost may be assessed:
517	517	(1) equally by front foot or by square foot of land
518	518	area against all property in the district;
519	519	(2) against property according to the value of the
520	520	property as determined by the board, with or without regard to
521	521	structures or other improvements on the property; or
522	522	(3) on any other reasonable assessment plan that
523	523	results in imposing fair and equitable shares of the cost on
524	524	property similarly benefited.
525	525	Sec. 375A.119. ASSESSMENTS. The district may assess
526	526	residential and business property at different rates.
527	527	Sec. 375A.120. ASSESSMENT ROLL. If the total cost of an
528	528	improvement project or service is determined, the board shall
529	529	impose the assessments against each parcel of land against which an
530	530	assessment may be levied in the district. With regard to an
531	531	assessment for services, the board may impose an annual assessment
532	532	that may be lower but not higher than the initial assessment. The
533	533	board shall have an assessment roll prepared showing the
534	534	assessments against each property and the board's basis for the
535	535	assessment. The assessment roll shall be filed with the secretary
536	536	of the board or other officer who performs the function of secretary
537	537	and be open for public inspection.
538	538	Sec. 375A.121. INTEREST ON ASSESSMENTS; LIEN. (a)
539	539	Assessments bear interest at a rate specified by the board that may
540	540	not exceed the interest rate permitted by Chapter 1204, Government
541	541	Code.
542	542	(b) Interest on an assessment between the effective date of
543	543	the order or resolution imposing the assessment and the date the
544	544	first installment and any related penalty is payable shall be added
545	545	to the first installment. The interest or penalties on all unpaid
546	546	installments shall be added to each subsequent installment until
547	547	paid.
548	548	(c) An assessment or any reassessment and any interest and
549	549	penalties on that assessment or reassessment is a lien against the
550	550	property until it is paid.
551	551	(d) The owner of any property assessed may pay at any time
552	552	the entire assessment against any lot or parcel with accrued
553	553	interest to the date of the payment.
554	554	Sec. 375A.122. SUPPLEMENTAL ASSESSMENTS. After notice and
555	555	hearing in the manner required for original assessments, the board
556	556	may impose supplemental assessments to correct omissions or
557	557	mistakes in the assessment:
558	558	(1) relating to the total cost of the improvement
559	559	project or services; or
560	560	(2) covering delinquencies or costs of collection.
561	561	Sec. 375A.123. APPEAL. (a) After determination of an
562	562	assessment, a property owner may appeal the assessment to the
563	563	board. The property owner must file a notice of appeal with the
564	564	board not later than the 30th day after the date that the assessment
565	565	is adopted. The board shall set a date to hear the appeal.
566	566	(b) The property owner may appeal the board's decision on
567	567	the assessment to a court of competent jurisdiction. The property
568	568	owner must file notice of the appeal with the court of competent
569	569	jurisdiction not later than the 30th day after the date of the
570	570	board's final decision with respect to the assessment.
571	571	(c) Failure to file either of the notices in the time
572	572	required by this section results in a loss of the right to appeal
573	573	the assessment.
574	574	(d) If an assessment against a parcel of land is set aside by
575	575	a court of competent jurisdiction, found excessive by the board, or
576	576	determined to be invalid by the board, the board may make a
577	577	reassessment or new assessment of the parcel.
578	578	Sec. 375A.124. APPEAL OF ORDER. A person against whom an
579	579	assessment is made by board order may appeal the assessment to a
580	580	district court in the county in which the district is located in the
581	581	manner provided for the appeal of contested cases under Chapter
582	582	2001, Government Code. Review by the district court is by trial de
583	583	novo.
584	584	[Sections 375A.125-375A.160 reserved for expansion]
585	585	SUBCHAPTER G. EXEMPTIONS
586	586	Sec. 375A.161. GOVERNMENTAL ENTITIES; ASSESSMENTS. Terms
587	587	for payment of assessments by municipalities, counties, other
588	588	political subdivisions, and organizations exempt from federal
589	589	income tax under Section 501(c)(3), Internal Revenue Code of 1986,
590	590	shall be established by contract. Municipalities, counties, and
591	591	other political subdivisions may contract with the district under
592	592	terms and conditions those entities consider advisable to provide
593	593	for the payment of assessments.
594	594	Sec. 375A.162. RESIDENTIAL PROPERTY EXEMPTED BY BOARD. The
595	595	board may:
596	596	(1) exempt residential property from all or a part of
597	597	the assessments imposed; or
598	598	(2) determine that residential property will not be
599	599	benefited by the proposed improvement project or services.
600	600	[Sections 375A.163-375A.180 reserved for expansion]
601	601	SUBCHAPTER H. FUNDS
602	602	Sec. 375A.181. MONEY AVAILABLE FOR PAYMENT OF IMPROVEMENT
603	603	PROJECTS AND SERVICES. (a) The cost of any improvement project or
604	604	services, including interest during construction, may be paid from
605	605	general or available funds, assessments, or from taxes, revenues,
606	606	assessments, grants, gifts, contracts, leases, or any combination
607	607	of those sources of money.
608	608	(b) During the progress of any improvement project or
609	609	services, the board may issue temporary notes to pay the costs of
610	610	the improvement project or services.
611	611	[Sections 375A.182-375A.200 reserved for expansion]
612	612	SUBCHAPTER I. BONDS OR OBLIGATIONS; COUNTY APPROVAL FOR PROJECT
613	613	Sec. 375A.201. GENERAL OBLIGATION AND REVENUE BONDS. The
614	614	district has no authority to issue bonds.
615	615	Sec. 375A.202. COUNTY APPROVAL REQUIRED FOR IMPROVEMENT
616	616	PROJECTS. (a) A district must obtain approval from the county of
617	617	the plans and specifications of any improvement project that
618	618	involves the use of the rights-of-way of streets, roads, or
619	619	highways or the use of municipal land or any easements granted by
620	620	the county.
621	621	(b) The county is not obligated to pay any obligations of
622	622	the district.
623	623	[Sections 375A.203-375A.240 reserved for expansion]
624	624	SUBCHAPTER J. ELECTIONS
625	625	Sec. 375A.241. TIME OF ELECTION. (a) A maintenance tax
626	626	election and any other election held in a district may be held at
627	627	the same time and in conjunction with any other election.
628	628	(b) Elections shall be called and held as provided by the
629	629	appropriate provisions of Chapter 54, Water Code.
630	630	Sec. 375A.242. ELECTION CALLED BY BOARD. The board may call
631	631	an election for the purpose of voting on any measure.
632	632	[Sections 375A.243-375A.260 reserved for expansion]
633	633	SUBCHAPTER K. DISSOLUTION
634	634	Sec. 375A.261. DISSOLUTION BY BOARD VOTE. Except as
635	635	limited herein, the board of a district by majority vote may
636	636	dissolve the district at any time.
637	637	Sec. 375A.262. DISSOLUTION BY PETITION BY OWNERS. Except
638	638	as limited herein, the board shall dissolve the district on written
639	639	petition filed with the board by the owners of:
640	640	(1) 75 percent or more of the assessed value of the
641	641	property in the district based on the most recent certified county
642	642	property tax rolls; or
643	643	(2) 75 percent or more of the surface area of the
644	644	district, excluding streets, roads, highways, utility
645	645	rights-of-way, other public areas, and other property exempt from
646	646	assessment under Section 375A.162, according to the most recent
647	647	certified county property tax rolls.
648	648	Sec. 375A.263. DISSOLUTION BY ORDER OF COMMISSIONERS COURT.
649	649	The commissioners court of the county by a vote of not less than a
650	650	three-fourths majority of the board may by order dissolve the
651	651	district. The county shall take over the property and assets of the
652	652	district.
653	653	Sec. 375A.264. DISSOLUTION BY MUNICIPAL ANNEXATION. A
654	654	municipality may annex the district only if the municipality
655	655	annexes the district in its entirety and the municipality provides
656	656	all of the services to the residents of the district that the
657	657	district is providing. On annexation by a municipality, the
658	658	district is dissolved.
659	659	[Sections 375A.265-375A.280 reserved for expansion]
660	660	SUBCHAPTER L. CONTRACTS WITH DISTRICT
661	661	Sec. 375A.281. CONTRACTS WITH DISTRICT. Notwithstanding
662	662	any other law, a state agency, municipality, county, other
663	663	political subdivision, corporation, individual, or other entity
664	664	may contract with a district without further authorization to carry
665	665	out the purposes of this chapter.
666	666	[Sections 375A.282-375A.300 reserved for expansion]
667	667	SUBCHAPTER M. TAXES AND ZONING
668	668	Sec. 375A.301. SALES AND USE TAX. A district may not impose
669	669	a sales and use tax.
670	670	Sec. 375A.302. ZONING AND PLANNING. (a) A district has the
671	671	power of a municipality or county under Chapters 211 and 212 in the
672	672	area of the district, including an area of the district that is in
673	673	the boundaries of a municipality's or county's limited purpose
674	674	jurisdiction. On annexation of an area of the district for full
675	675	purposes by a municipality or county, the district's power to
676	676	regulate the area under Chapter 211 or 212 expires. The district
677	677	regains the power in an area if the municipality or county
678	678	disannexes the area.
679	679	(b) The board may divide the district into distinct areas as
680	680	provided by Section 211.005 to accomplish the purposes of this
681	681	chapter and Chapter 211.
682	682	Sec. 375A.303. REGIONAL DEVELOPMENT AGREEMENTS. (a) A
683	683	district may enter into regional development agreements with the
684	684	county that created the district, other municipalities, counties,
685	685	school districts, institutions of higher education, other
686	686	political subdivisions, and private interests to:
687	687	(1) promote and advance long-term economic
688	688	development in the district; or
689	689	(2) achieve the purposes for the district's creation
690	690	and to implement the powers provided to the district under this
691	691	chapter.
692	692	(b) A district, a municipality or county, a school district
693	693	whose boundary overlaps with a portion of a district, or an
694	694	institution of higher education may enter into an agreement to:
695	695	(1) fund improvements to school facilities and teacher
696	696	compensation of school districts or institutions of higher
697	697	education in the district; and
698	698	(2) develop programs provided for herein.
699	699	(c) Any agreement entered into with a school district under
700	700	this section shall be designed in such a way that the school
701	701	district funding under Title 2, Education Code, shall be not less
702	702	than the school district would have received had the school
703	703	district not entered into the agreement. This provision may be
704	704	waived by a school district board of trustees by specific action
705	705	suspending the provisions of this subsection.
706	706	SECTION 2. This Act takes effect September 1, 2009.