CHAPTER 3860. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 10

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3860-harris-county-improvement-district-no-10

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3860. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 10

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3860.001. DEFINITIONS. In this chapter:

(1) "Board" means the board of directors of the district.

(2) "District" means the Harris County Improvement District No.

10.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.002. NATURE OF DISTRICT. The district is a special

district created under Section 59, Article XVI, Texas

Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.003. PURPOSE; DECLARATION OF INTENT. (a) The

creation of the district is essential to accomplish the purposes

of Sections 52 and 52-a, Article III, and Section 59, Article

XVI, Texas Constitution, and other public purposes stated in this

chapter. By creating the district and in authorizing Harris

County, the City of Houston, the Metropolitan Transit Authority

of Harris County, and other political subdivisions to contract

with the district, the legislature has established a program to

accomplish the public purposes set out in Section 52-a, Article

III, Texas Constitution.

(b) The creation of the district is necessary to promote,

develop, encourage, and maintain employment, commerce,

transportation, parking, housing, recreation, the arts, safety,

and the public welfare in the area of the district.

interpreted to relieve Harris County or the City of Houston from

providing the level of services provided as of September 1, 2007,

to the area in the district. The district is created to

supplement and not to supplant the county or city services

provided in the area in the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

(b) All land and other property included in the district will

benefit from the improvements and services to be provided by the

district under powers conferred by Sections 52 and 52-a, Article

III, and Section 59, Article XVI, Texas Constitution, and other

powers granted under this chapter.

chapter is essential to carry out a public purpose.

(d) The creation of the district is in the public interest and

is essential to:

(1) further the public purposes of developing and diversifying

the economy of the state;

(2) eliminate unemployment and underemployment; and

(3) develop or expand transportation and commerce.

(e) The district will:

(1) promote the health, safety, and general welfare of

residents, employers, employees, visitors, and consumers in the

district, and of the public;

(2) provide needed funding for the district to preserve,

maintain, and enhance the economic health and vitality of the

area as a residential neighborhood and a commercially viable

area;

(3) promote the health, safety, welfare, and enjoyment of the

public by providing pedestrian ways and by landscaping and

developing certain areas in the district, which are necessary for

the restoration, preservation, and enhancement of scenic beauty;

(4) promote and benefit commercial development and commercial

areas in the district; and

(5) promote and develop public transportation and pedestrian

facilities and systems using new and alternative means that are

attractive, safe, and convenient, including securing expanded and

improved transportation and pedestrian facilities and systems,

to:

(A) address the problem of traffic congestion in the district,

the need to control traffic and improve pedestrian safety, and

the limited availability of money; and

(B) benefit the land and other property in the district and the

residents, employers, employees, visitors, and consumers in the

district and the public.

(f) Pedestrian ways along or across a street, whether at grade

or above or below the surface, and street lighting, street

landscaping, and street art objects are parts of and necessary

components of a street and are considered to be a street or road

improvement.

(g) The district will not act as the agent or instrumentality of

any private interest even though the district will benefit many

private interests as well as the public.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.005. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2 of the Act

enacting this chapter, as that territory may have been modified

under:

(1) Subchapter J, Chapter 49, Water Code;

(2) Section 3860.111; or

(3) other law.

(b) The boundaries and field notes of the district contained in

Section 2 of the Act enacting this chapter form a closure. A

mistake in the field notes or in copying the field notes in the

legislative process does not in any way affect:

(1) the district's organization, existence, and validity;

(2) the district's right to issue any type of bond, including a

refunding bond, for a purpose for which the district is created

or to pay the principal of and interest on the bond;

(3) the district's right to impose and collect an assessment or

tax; or

(4) the legality or operation of the district or the board.

with the Texas Commission on Environmental Quality. The

commission by order may correct a mistake in the description of

the district's boundaries.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.006. 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 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.007. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3860.051. COMPOSITION; TERMS. (a) The district is

governed by a board of 14 voting directors who serve staggered

terms of four years, with seven directors' terms expiring June 1

of each odd-numbered year.

(b) The board by order or resolution may increase or decrease

the number of voting directors on the board, but only if it is in

the best interest of the district to do so. The board may not:

(1) increase the number of directors to more than 15; or

(2) decrease the number of directors to fewer than five.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.052. APPOINTMENT OF DIRECTORS. The mayor and members

of the governing body of the City of Houston shall appoint voting

directors from persons recommended by the board. A person is

appointed if a majority of the members of the governing body,

including the mayor, vote to appoint that person.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.053. NONVOTING DIRECTORS. (a) The following persons

serve as nonvoting directors:

(1) the directors of the following departments of the City of

Houston or a person designated by that director:

(A) parks and recreation;

(B) planning and development; and

(2) the City of Houston's chief of police.

(b) If a department described by Subsection (a) is consolidated,

renamed, or changed, the board may appoint a director of the

consolidated, renamed, or changed department as a nonvoting

director. If a department described by Subsection (a) is

abolished, the board may appoint a representative of another

department that performs duties comparable to those performed by

the abolished department.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.054. QUORUM. (a) A majority of the board is a

quorum.

(b) Nonvoting directors and vacant director positions are not

counted for the purposes of establishing a board quorum.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.055. CONFLICTS OF INTEREST; ONE-TIME AFFIDAVIT. (a)

Except as provided by this section:

(1) a director may participate in all board votes and decisions;

and

(2) Chapter 171, Local Government Code, governs conflicts of

interest for directors.

(b) Section 171.004, Local Government Code, does not apply to

the district. A director who has a substantial interest in a

business or charitable entity that will receive a pecuniary

benefit from a board action shall file a one-time affidavit

declaring the interest. An additional affidavit is not required

if the director's interest changes. After the affidavit is filed

with the board secretary, the director may participate in a

discussion or vote on that action if:

(1) a majority of the directors have a similar interest in the

same entity; or

(2) all other similar business or charitable entities in the

district will receive a similar pecuniary benefit.

entity may not participate in the discussion of or vote on a

matter regarding a contract with that public entity.

(d) For purposes of this section, a director has a substantial

interest in a charitable entity in the same manner that a person

would have a substantial interest in a business entity under

Section 171.002, Local Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.056. COMPENSATION OF VOTING DIRECTORS. Voting

directors may receive fees of office and reimbursement of

expenses as provided by Section 49.060, Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

For expiration of this section, see Subsection (d).

Sec. 3860.057. INITIAL VOTING DIRECTORS. (a) The initial board

consists of the following voting directors:

Pos. No.

Name of Director

Vivian Harris

Homer Clark

Rita Foretich

Lance Gilliam

Melva Thorton

Eileen Barrett Williams

Rhonda Jordan

Willie Belle Boone

Rev. Wallace Lockett

Rev. Jefferson

Anganette Young

Theldon Branch

Mark O'Sikes

Keith Wade

(b) Of the initial voting directors, the terms of directors

appointed for even-numbered positions expire June 1, 2009, and

the terms of directors appointed for odd-numbered positions

expire June 1, 2011.

(d) This section expires September 1, 2011.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3860.101. GENERAL DISTRICT POWERS. The district has all

powers necessary to accomplish the purposes for which the

district was created.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.102. DEVELOPMENT CORPORATION AND HOUSING CORPORATION

POWERS OF DISTRICT. The district may exercise the powers given

to:

(1) a corporation under Chapter 505, Local Government Code,

including the power to own, operate, acquire, construct, lease,

improve, and maintain the projects described by that chapter; and

(2) a housing finance corporation under Chapter 394, Local

Government Code, to provide housing or residential development

projects in the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 21.047, eff. September 1, 2009.

Sec. 3860.103. 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 power of and is considered for purposes of this

chapter to be a local government corporation created under

Chapter 431, Transportation Code; and

(2) may implement any project and provide any service authorized

by this chapter.

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as, for the same term

as, and on the same conditions as the board of directors of a

local government corporation created under Chapter 431,

Transportation Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.104. AGREEMENTS; GRANTS. (a) 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 Chapter 791, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.105. CONTRACT FOR LAW ENFORCEMENT SERVICES. To

protect the public interest, the district may contract with:

(1) Harris County or the City of Houston for the county or the

city to provide law enforcement services in the district for a

fee; and

(2) a private entity for the private entity to provide

supplemental security services.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.106. APPROVAL BY CITY OF HOUSTON. (a) Except as

provided by Subsection (b), the district must obtain the approval

of the City of Houston's governing body for:

(1) the issuance of a bond for each improvement project;

(2) the plans and specifications of the improvement project

financed by the bond; and

(3) the plans and specifications of any district improvement

project related to the use of land owned by the City of Houston,

an easement granted by the City of Houston, or a right-of-way of

a street, road, or highway.

(b) If the district obtains the approval of the City of

Houston's governing body of a capital improvements budget for a

period not to exceed five years, the district may finance the

capital improvements and issue bonds specified in the budget

without further approval from the City of Houston.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to an organization that:

(1) is an organization exempt from taxation under Section

501(a), Internal Revenue Code of 1986, as an organization

described by Section 501(c)(3), (4), or (6) of that code; and

(2) performs a service or provides an activity consistent with

the furtherance of a district purpose.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.108. ROAD POWERS. The district may exercise the

powers given to:

(1) a road district created under Chapter 257, Transportation

Code; and

(2) a road utility district created under Chapter 441,

Transportation Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.109. AIR RIGHTS; CONSTRUCTION. The district may

acquire air rights and may construct improvements on property on

which it only owns air rights.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.110. ADDITIONAL PROPERTY RIGHTS; LEASEHOLDS. The

district may construct improvements on property on which it only

has a leasehold interest and may own undivided interests in

buildings and other improvements.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.111. DIVISION OF DISTRICT. (a) The district shall be

divided into two districts only if the district is not imposing

ad valorem taxes.

(b) Not later than the 60th day after the effective date of the

Act creating this chapter, the board shall adopt an order

dividing the district into two districts. The original district

includes all district territory not included in the new district.

The new district includes all the territory included in state

representative district 131 on the date the division is

effective. Neither district may request consent to its creation

from the City of Houston until the order dividing the district is

adopted.

(1) the original district is governed by a board of seven voting

directors consisting of the directors appointed to positions 8

through 14; and

(2) the new district is governed by a board of seven voting

directors consisting of the directors appointed to positions one

through seven of the original district.

(d) An order dividing the district must:

(1) name the new district;

(2) describe the boundaries of the new district;

(3) name the initial directors of the new district; and

(4) divide the assets and liabilities in any manner between the

new district and the original district.

(e) Not later than the 10th day after the date the board adopts

the order, the district shall file the order with the Texas

Commission on Environmental Quality and record the order in the

real property records of Harris County.

(f) The new district has all the powers and duties of the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.112. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES

Sec. 3860.151. PUBLIC TRANSIT SYSTEM. The district may acquire,

lease as lessor or lessee, construct, develop, own, operate, and

maintain a public transit system to serve the area in the

district.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.152. PARKING FACILITIES AUTHORIZED; OPERATION BY

PRIVATE ENTITY; TAX EXEMPTION. (a) The district may acquire,

lease as lessor or lessee, construct, develop, own, operate, and

maintain parking facilities, including:

(1) lots, garages, parking terminals, or other structures or

accommodations for the parking of motor vehicles; and

(2) equipment, entrances, exits, fencing, and other accessories

necessary for safety and convenience in the parking of vehicles.

(b) A parking facility of the district must be either leased to

or operated on behalf of the district by a private entity or an

entity other than the district. The district's parking

facilities are a program authorized by the legislature under

Section 52-a, Article III, Texas Constitution, and accomplish a

public purpose under that section even if leased or operated by a

private entity for a term of years.

private entity are exempt from the payment of ad valorem taxes

and state and local sales and use taxes.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.153. RULES. The district may adopt rules covering its

public transit system or its public parking facilities except

that a rule relating to or affecting the use of the public

right-of-way or a requirement for off-street parking is subject

to all applicable municipal charter, code, or ordinance

requirements.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.154. FINANCING OF PUBLIC TRANSIT SYSTEM OR PARKING

FACILITIES. (a) The district may use any of its resources,

including revenue, assessments, taxes, and grant or contract

proceeds, to pay the cost of acquiring and operating a public

transit system or public parking facilities.

(b) The district may set and impose fees, charges, or tolls for

the use of the public transit system or the public parking

facilities and may issue bonds or notes to finance the cost of

these facilities.

or operating a public transit system or public parking facilities

with resources other than assessments, a petition of property

owners or a public hearing is not required.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.155. AGREEMENT WITH RAPID TRANSIT AUTHORITY. (a) In

this section, "authority" means a rapid transit authority created

under Chapter 451, Transportation Code.

(b) The district and an authority may agree to jointly

construct, own, operate, and maintain a transit facility or a

parking facility under the terms the authority and district

desire.

authority exchange or trade land provided that each party to the

agreement receives fair market value. The authority is not

required to offer any property that it proposes to trade to the

district for sale to the public or for sale to any abutting

property owner.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

SUBCHAPTER E. FINANCIAL PROVISIONS

Sec. 3860.201. 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 the

district's money.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.202. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS. (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 board.

(b) A petition requesting a project financed by assessment must

be signed by:

(1) the owners of a majority of the assessed value of real

property in the district subject to assessment according to the

most recent certified tax appraisal roll for Harris County; or

(2) at least 25 owners of real property in the district that

will be subject to the assessment, if more than 25 persons own

real property subject to the assessment in the district according

to the most recent certified tax appraisal roll for Harris

County.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.203. MAINTENANCE TAX. (a) If authorized at an

election held in accordance with Section 3860.208, the district

may impose an annual ad valorem tax on taxable property in the

district to:

(1) administer the district;

(2) maintain and operate the district;

(3) construct or acquire improvements; or

(4) provide a service.

(b) The board shall determine the tax rate.

exempt under the Texas or United States Constitution or under the

Tax Code, is liable for the payment of ad valorem taxes imposed

by the district on the property.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.204. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter.

(b) An assessment, a reassessment, or an assessment resulting

from an addition to or correction of the assessment roll by the

district, penalties and interest on an assessment or

reassessment, an expense of collection, and reasonable attorney's

fees incurred by the district:

(1) are a first and prior lien against the property assessed;

(2) are superior to any other lien or claim other than a lien or

claim for county, school district, or municipal ad valorem taxes;

and

(3) are the personal liability of and a charge against the

owners of the property even if the owners are not named in the

assessment proceedings.

resolution imposing the assessment until the date the assessment

is paid. The board may enforce the lien in the same manner that

the board may enforce an ad valorem tax lien against real

property.

(d) The board may make a correction to or deletion from the

assessment roll that does not increase the amount of assessment

of any parcel of land without providing notice and holding a

hearing in the manner required for additional assessments.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.205. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND

ASSESSMENTS. The district may not impose an impact fee or

assessment on the property, including the equipment,

rights-of-way, facilities, or improvements, of:

(1) an electric utility or a power generation company as defined

by Section 31.002, Utilities Code;

(2) a gas utility as defined by Section 101.003 or 121.001,

Utilities Code;

(3) a telecommunications provider as defined by Section 51.002,

Utilities Code; or

(4) a person who provides to the public cable television or

advanced telecommunications services.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.206. BONDS AND OTHER OBLIGATIONS. (a) The district

may issue bonds or other obligations payable wholly or partly

from assessments, impact fees, revenue, grants, or other money of

the district, or any combination of those sources of money, to

pay for any authorized district purpose.

(b) In exercising the district's power to borrow, the district

may issue a bond or other obligation in the form of a bond, note,

certificate of participation or other instrument evidencing a

proportionate interest in payments to be made by the district, or

other type of obligation.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.207. LIMIT ON PARKS AND RECREATION BONDS. Bonds

issued to finance parks and recreational facilities may not

exceed one percent of the assessed value of the real property in

the district according to the most recent certified tax appraisal

roll for Harris County.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.208. TAX AND BOND ELECTIONS. (a) The district shall

hold an election in the manner provided by Subchapter L, Chapter

375, Local Government Code, to obtain voter approval before the

district imposes a maintenance tax or issues bonds payable from

ad valorem taxes.

(b) The board may not include more than one purpose in a single

proposition at an election.

the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.209. POWERS OF MUNICIPAL UTILITY DISTRICT TO ESTABLISH

DEFINED AREAS AND DESIGNATED PROPERTY; TAXES; BONDS. (a) The

district has the powers of a municipal utility district under

Subchapter J, Chapter 54, Water Code, including the power to:

(1) implement a plan adopted under that subchapter;

(2) issue bonds; and

(3) impose a tax in a defined area established under that

subchapter.

(b) The district may exercise the powers described by Subsection

(a) regardless of whether the district is composed of the minimum

number of acres provided by Section 54.801, Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.210. MUNICIPALITY NOT REQUIRED TO PAY DISTRICT

OBLIGATIONS. Except as provided by Section 375.263, Local

Government Code, a municipality is not required to pay a bond,

note, or other obligation of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

Sec. 3860.211. COMPETITIVE BIDDING. Section 375.221, Local

Government Code, applies to the district only for a contract that

has a value greater than $25,000.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

SUBCHAPTER F. DISSOLUTION

Sec. 3860.251. DISSOLUTION OF DISTRICT WITH OUTSTANDING DEBT.

(a) The board may dissolve the district regardless of whether

the district has debt. Section 375.264, Local Government Code,

does not apply to the district.

(b) If the district has debt when it is dissolved, the district

shall remain in existence solely for the purpose of discharging

its debts. The dissolution is effective when all debts have been

discharged.

Added by Acts 2007, 80th Leg., R.S., Ch.

968, Sec. 1, eff. June 15, 2007.

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