CHAPTER 3861. VIRIDIAN MUNICIPAL MANAGEMENT DISTRICT

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3861-viridian-municipal-management-district

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3861. VIRIDIAN MUNICIPAL MANAGEMENT DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3861.001. DEFINITIONS. In this chapter:

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

(2) "City" means the City of Arlington.

(3) "District" means the Viridian Municipal Management District.

(4) "Improvement project" means any program or project

authorized by Section 3861.102, inside or outside the district.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.002. CREATION AND 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.

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.003. PURPOSE; LEGISLATIVE FINDINGS. (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 the city

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, housing, tourism, recreation, the arts,

entertainment, economic development, safety, and the public

welfare in the district.

interpreted to relieve the city or Tarrant County from providing

the level of services provided as of the effective date of the

Act enacting this chapter to the area in the district. The

district is created to supplement and not to supplant the city

and county services provided in the district.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.004. 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.

is essential to further the public purposes of:

(1) developing and diversifying the economy of the state;

(2) eliminating unemployment and underemployment;

(3) providing quality residential housing; and

(4) developing or expanding transportation and commerce.

(d) The district will:

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

residents, employers, potential employees, 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

district territory as a residential community and business

center; and

(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.

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

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

landscaping, parking, and street art objects are parts of and

necessary components of a street and are considered to be an

improvement project that includes a street or road improvement.

(f) 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.

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.005. 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) Section 3861.107; or

(2) other law.

(b) A mistake in the field notes of the district contained in

Section 2 of the Act enacting this chapter or in copying the

field notes in the legislative process does not in any way

affect:

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

(2) the district's right to contract, including the right to

issue any type of bond or other obligation for a purpose for

which the district is created;

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

tax, or any other revenue; or

(4) the legality or operation of the board.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. (a)

All or any part of the area of the district is eligible to be

included in:

(1) a tax increment reinvestment zone created by the city under

Chapter 311, Tax Code;

(2) a tax abatement reinvestment zone created by the city under

Chapter 312, Tax Code; or

(3) an enterprise zone created by the city under Chapter 2303,

Government Code.

(b) If the city creates a tax increment reinvestment zone

described by Subsection (a), the city and the board of directors

of the zone, by contract with the district, may grant money

deposited in the tax increment fund to the district to be used by

the district for the purposes permitted for money granted to a

corporation under Section 380.002(b), Local Government Code,

including the right to pledge the money as security for any bonds

issued by the district for an improvement project.

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

531, Sec. 1, eff. June 16, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3861.051. GOVERNING BODY; TERMS. The district is governed

by a board of five directors who serve staggered terms of four

years, with two or three directors' terms expiring May 31 of each

even-numbered year.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.052. ELECTION DATE. The board shall hold elections

for directors on the uniform election date in May in

even-numbered years.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.053. ELIGIBILITY. (a) To be qualified to serve as a

director, a person must own land in the district.

(b) Section 49.052, Water Code, does not apply to the district.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.054. VACANCY. (a) The remaining directors shall fill

a vacancy on the board by appointing a person who meets the

qualifications prescribed by Section 3861.053.

(b) If there are fewer than three directors, the governing body

of the city shall appoint the necessary number of directors to

fill all board vacancies.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.055. DIRECTOR'S OATH OR AFFIRMATION. A director's

oath or affirmation of office shall be filed with the district

and the district shall retain the oath or affirmation in the

district records.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.056. OFFICERS. The board shall elect from among the

directors a chair, a vice chair, and a secretary.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.057. COMPENSATION; EXPENSES. (a) The district may

compensate each director in an amount not to exceed $50 for each

board meeting. The total amount of compensation per director per

year may not exceed $2,000.

(b) A director is entitled to reimbursement for necessary and

reasonable expenses incurred in carrying out the duties and

responsibilities of a director.

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

531, Sec. 1, eff. June 16, 2007.

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

Sec. 3861.058. INITIAL DIRECTORS. (a) The initial board

consists of the following directors:

Pos. No.

Name of Director

Donald Huffines

Phillip Huffines

Sue Blankenship

Robert Kembel

Elvio Bruni

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

for positions 1 and 2 expire May 31, 2008, and the terms of

directors appointed for positions 3 through 5 expire May 31,

2010.

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

531, Sec. 1, eff. June 16, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3861.101. GENERAL POWERS AND DUTIES. The district has the

powers and duties provided by:

(1) the general laws relating to conservation and reclamation

districts created under Section 59, Article XVI, Texas

Constitution, including Chapters 49 and 54, Water Code, except

that the district's bonds and other securities are not subject to

the jurisdiction or supervision of the Texas Commission on

Environmental Quality under Chapter 49, Water Code, or other law;

(2) the general laws relating to road districts and road utility

districts created under Section 52(b), Article III, Texas

Constitution, including Chapter 441, Transportation Code;

(3) Subchapter A, Chapter 372, Local Government Code, in the

same manner as a municipality or a county; and

(4) Chapters 375 and 505, Local Government Code.

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

531, Sec. 1, eff. June 16, 2007.

Amended by:

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

87, Sec. 21.048, eff. September 1, 2009.

Sec. 3861.102. IMPROVEMENT PROJECTS. (a) The district may

provide, or it may enter into contracts with a governmental or

private entity to provide, the following types of improvement

projects or activities in support of or incidental to those

projects:

(1) a supply and distribution facility or system to provide

potable and city-approved nonpotable water to the residents and

businesses of the district, including a wastewater collection

facility;

(2) a paved road or street, or turnpike, inside and outside the

district to the extent authorized by Section 52, Article III,

Texas Constitution;

(3) the planning, design, construction, improvement, and

maintenance of:

(A) landscaping;

(B) highway right-of-way or transit corridor beautification and

improvement;

(D) a street or sidewalk;

(E) a hiking and cycling path or trail;

(F) a pedestrian walkway, skywalk, crosswalk, or tunnel;

(G) a park, lake, garden, recreational facility, sports

facility, open space, scenic area, or related exhibit or

preserve;

(H) a fountain, plaza, or pedestrian mall; or

(I) a drainage or storm-water detention improvement;

(4) protection and improvement of the quality of storm water

that flows through the district;

(5) the planning, design, construction, improvement,

maintenance, and operation of:

(A) a water or sewer facility; or

(B) an off-street parking facility or heliport;

(6) the planning and acquisition of:

(A) public art and sculpture and related exhibits and

facilities; or

(B) an educational and cultural exhibit or facility;

(7) the planning, design, construction, acquisition, lease,

rental, improvement, maintenance, installation, and management of

and provision of furnishings for a facility for:

(A) a conference, convention, or exhibition;

(B) a manufacturer, consumer, or trade show;

(D) an exhibit, display, attraction, special event, or seasonal

or cultural celebration or holiday;

(8) the removal, razing, demolition, or clearing of land or

improvements in connection with an improvement project;

(9) the acquisition and improvement of land or other property

for the mitigation of the environmental effects of an improvement

project;

(10) the acquisition of property or an interest in property in

connection with an authorized improvement project;

(11) a special or supplemental service for the improvement and

promotion of the district or an area adjacent to the district or

for the protection of public health and safety in or adjacent to

the district, including:

(A) advertising;

(B) promotion;

(D) health and sanitation;

(E) public safety;

(F) security;

(G) fire protection or emergency medical services;

(H) business recruitment;

(I) development;

(J) elimination of traffic congestion; and

(K) recreational, educational, or cultural improvements,

enhancements, and services; or

(12) any similar public improvement, facility, or service.

(b) The district may not undertake a project under this section

unless the board determines the project to be necessary to

accomplish a public purpose of the district.

requirements, including codes and ordinances.

(d) The district may not provide, conduct, or authorize any

improvement project on the city streets, highways, rights-of-way,

or easements without the consent of the governing body of the

city.

(e) Subject to any agreement between the district and the city,

the city may:

(1) by ordinance, order, or resolution require that title to all

or any portion of an improvement project vest in the city; or

(2) by ordinance, order, or resolution or other directive

authorize the district to own, encumber, maintain, and operate an

improvement project, subject to the right of the city to order a

conveyance of the project to the city on a date determined by the

city.

(f) The district shall immediately comply with any city

ordinance, order, or resolution adopted under Subsection (e).

(g) For the purposes of this section, planning, design,

construction, improvement, and maintenance of a lake includes

work done for drainage, reclamation, or recreation.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.103. GENERAL POWERS REGARDING CONTRACTS. (a) The

district may:

(1) contract with any person to accomplish any district purpose,

including a contract for:

(A) the payment, repayment, or reimbursement of costs incurred

by that person on behalf of the district, including all or part

of the costs of an improvement project and interest on the

reimbursed cost; or

(B) the use, occupancy, lease, rental, operation, maintenance,

or management of all or part of a proposed or existing

improvement project; and

(2) apply for and contract with any person to receive,

administer, and perform a duty or obligation of the district

under a federal, state, local, or private gift, grant, loan,

conveyance, transfer, bequest, or other financial assistance

arrangement relating to the investigation, planning, analysis,

study, design, acquisition, construction, improvement,

completion, implementation, or operation by the district or

others of a proposed or existing improvement project.

(b) A contract the district enters into to carry out a purpose

of this chapter may be on any terms and for any period the board

determines, including a negotiable or nonnegotiable note or

warrant payable to the city, Tarrant County, and any other

person.

purposes of this chapter without further statutory or other

authorization.

(d) A contract payable from ad valorem taxes for a period longer

than one year must be approved by the governing body of the city.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.104. RULES; ENFORCEMENT. (a) The district may adopt

rules:

(1) to administer or operate the district;

(2) for the use, enjoyment, availability, protection, security,

and maintenance of the district's property and facilities; or

(3) to provide for public safety and security in the district.

(b) The district may enforce its rules by injunctive relief.

order, or regulation, the city rule, order, or regulation

controls.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.105. NAME CHANGE. The board by resolution may change

the district's name. The board shall give written notice of the

change to the city.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.106. USE OF ROADWAY, PARK, OR OTHER PUBLIC AREA OF THE

DISTRICT. (a) The board by rule may regulate the private use of

a public roadway, open space, park, sidewalk, or similar public

area in the district. To the extent the district rules conflict

with a rule, order, or regulation of the city, the rule, order,

or regulation of the city controls. A rule may provide for the

safe and orderly use of public roadways, open spaces, parks,

sidewalks, and similar public areas or facilities.

(b) The board may require a permit for a parade, demonstration,

celebration, entertainment event, or similar nongovernmental

activity in or on a public roadway, open space, park, sidewalk,

or similar public area or facility. The board may charge a fee

for the permit application or for public safety or security

services in an amount the board considers necessary.

vendor, concessionaire, exhibitor, or similar private or

commercial person or organization for the limited use of the area

or facility on terms and on payment of a permit or franchise fee

the board may impose.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.107. ADDING OR REMOVING TERRITORY. The board may add

or remove territory under Subchapter J, Chapter 49, and Section

54.016, Water Code, except that:

(1) the addition or removal of the territory must be approved

by:

(A) the governing body of the city; and

(B) the owners of the territory being added or removed;

(2) a reference to a tax in Subchapter J, Chapter 49, or Section

54.016, Water Code, means an ad valorem tax; and

(3) territory may not be removed from the district if bonds or

other obligations of the district payable, wholly or partly, from

ad valorem taxes on the territory are outstanding.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.108. ECONOMIC DEVELOPMENT. The district may create

economic development programs and exercise the economic

development powers that:

(1) Chapter 380, Local Government Code, provides to a

municipality with a population of more than 100,000; and

(2) Chapter 1509, Government Code, provides to any municipality.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.109. TERMS OF EMPLOYMENT; COMPENSATION. The board may

employ and establish the terms of employment and compensation of

an executive director or general manager and any other district

employees the board considers necessary.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.110. NO EMINENT DOMAIN POWER. The district may not

exercise the power of eminent domain.

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

531, Sec. 1, eff. June 16, 2007.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3861.151. GENERAL POWERS REGARDING FINANCIAL MATTERS.

Except as provided by Section 3861.161, the district may:

(1) impose an ad valorem tax on all taxable property in the

district, including industrial, commercial, and residential

property, to pay for an improvement project;

(2) impose an assessment on property in the district in the

manner provided for:

(A) a district under Subchapters A, E, and F, Chapter 375, Local

Government Code; or

(B) a municipality or county under Subchapter A, Chapter 372,

Local Government Code;

(3) provide or secure the payment or repayment of the costs and

expenses of the establishment, administration, and operation of

the district and the district's costs or share of the costs or

revenue of an improvement project or district contractual

obligation or indebtedness by or through:

(A) a lease, installment purchase contract, or other agreement

with any person;

(B) the imposition of a tax, assessment, user fee, concession

fee, or rental charge; or

(4) establish user charges related to the operation of

storm-water facilities, including the regulation of storm water

for the protection of water quality in the district;

(5) establish user charges for the use of nonpotable water for

irrigation purposes, subject to the approval of the governing

body of the city;

(6) undertake separately or jointly with other persons,

including the city or Tarrant County, all or part of the cost of

an improvement project, including an improvement project:

(A) for improving, enhancing, and supporting public safety and

security, fire protection and emergency medical services, and law

enforcement in and adjacent to the district; or

(B) that confers a general benefit on the entire district or a

special benefit on a definable part of the district; and

(7) enter into a tax abatement agreement in accordance with the

general laws of this state authorizing and applicable to tax

abatement agreements by municipalities.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.152. BORROWING MONEY. The district may borrow money

for a district purpose by issuing or executing bonds, notes,

credit agreements, or other obligations of any kind found by the

board to be necessary or appropriate for the district purpose.

The bond, note, credit agreement, or other obligation must be

secured by and payable from ad valorem taxes, assessments, or any

other district revenue.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.153. IMPACT FEES AND ASSESSMENTS; EXEMPTION. (a) The

district may impose an impact fee or assessment on property in

the district, including an impact fee or assessment on

residential or commercial property, only in the manner provided

by Subchapter A, Chapter 372 or Subchapter F, Chapter 375, Local

Government Code, for a municipality, county, or public

improvement district, according to the benefit received by the

property.

(b) An impact fee for residential property must be for the

limited purpose of providing capital funding for:

(1) public water and wastewater facilities;

(2) drainage and storm-water facilities; and

(3) streets and alleys.

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;

and

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

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

(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.

(e) The district may not impose an impact fee on the property,

including equipment and facilities, of a public utility provider

in the district.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.154. CERTAIN RESIDENTIAL PROPERTY NOT EXEMPT. Section

375.161, Local Government Code, does not apply to the district.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.155. MAINTENANCE AND OPERATION TAX; ELECTION. (a)

Except as provided by Section 3861.161, the district may impose a

tax for maintenance and operation purposes, including for:

(1) planning, constructing, acquiring, maintaining, repairing,

and operating all improvement projects, including land, plants,

works, facilities, improvements, appliances, and equipment of the

district; and

(2) paying costs of services, engineering and legal fees, and

organization and administrative expenses.

(b) The district may not impose a maintenance and operation tax

unless the maximum tax rate is approved by the governing body of

the city and a majority of the district voters voting at an

election held for that purpose. If the maximum tax rate is

approved, the board may impose the tax at any rate that does not

exceed the approved rate.

same time and in conjunction with any other district election.

The election may be called by a separate election order or as

part of any other election order.

(d) The proposition in a maintenance and operation tax election

may be for a specific maximum rate or for an unlimited rate.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.156. USE OF SURPLUS MAINTENANCE AND OPERATION MONEY.

If the district has surplus maintenance and operation tax money

that is not needed for the purposes for which it was collected,

the money may be used for any authorized purpose.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.157. BOND ISSUANCE PLAN REQUIRED BEFORE ISSUING BONDS.

The district may not issue bonds until the governing body of the

city approves a bond issuance plan authorizing and setting forth

the limitations on the issuance of the bonds.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.158. BONDS AND OTHER OBLIGATIONS; MUNICIPAL APPROVAL.

(a) Except as provided by Sections 3861.157 and 3861.161, the

district may issue by competitive bid or negotiated sale bonds,

notes, or other obligations payable wholly or partly from ad

valorem taxes or assessments in the manner provided by Subchapter

A, Chapter 372 or Subchapter J, Chapter 375, Local Government

Code.

(b) In exercising the district's borrowing power, 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.

A, Chapter 372, and Subchapter J, Chapter 375, Local Government

Code, district bonds may be secured and made payable, wholly or

partly, by a pledge of any part of the net proceeds the district

receives from any other district revenue.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.159. BOND MATURITY. Bonds may mature not more than 40

years from their date of issue.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.160. TAXES FOR BONDS AND OTHER OBLIGATIONS. (a) At

the time bonds or other obligations payable wholly or partly from

ad valorem taxes are issued:

(1) the board shall impose a continuing direct annual ad valorem

tax, without limit as to rate or amount, for each year that all

or part of the bonds are outstanding; and

(2) the district annually shall impose an ad valorem tax on all

taxable property in the district in an amount sufficient to:

(A) pay the interest on the bonds or other obligations as the

interest becomes due;

(B) create a sinking fund for the payment of the principal of

the bonds or other obligations when due or the redemption price

at any earlier required redemption date; and

(b) Bonds or other obligations that are secured by and payable

from ad valorem taxes may not be issued unless the bonds and the

imposition of the taxes are approved by:

(1) a majority of the district voters voting at an election held

for that purpose; and

(2) the governing body of the city.

in the manner provided by Chapter 54, Water Code.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.161. PROJECT DEVELOPMENT AGREEMENT REQUIRED TO IMPOSE

TAXES OR BORROW MONEY, INCLUDING BONDS. Before the district may

issue bonds, impose taxes, or borrow money, the district and the

city must negotiate and execute a mutually approved and accepted

interlocal project development agreement regarding the

development plans and rules for:

(1) the development and operation of the district; and

(2) the financing of improvement projects.

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

531, Sec. 1, eff. June 16, 2007.

SUBCHAPTER E. DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

Sec. 3861.201. DIVISION OF DISTRICT; REQUIREMENTS. (a) At any

time before the district issues indebtedness secured by ad

valorem taxes, the district may be divided into two or more new

districts.

(b) A new district created by division of the district must be

at least 100 acres.

not, at the time the new district is created, contain any land

outside the area described by Section 2 of the Act creating this

chapter.

(d) The board may consider a proposal to divide the district on:

(1) a petition of a landowner in the district; or

(2) a motion by the board.

(e) The board may not divide the district unless the division is

approved by the governing body of the city by resolution. The

resolution may set terms for the division under Subsection (f).

(f) If the board decides to divide the district, the board

shall, subject to the city's resolution:

(1) set the terms of the division, including names for the new

districts and a plan for the payment or performance of any

outstanding district obligations; and

(2) prepare a metes and bounds description for each proposed

district.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.202. ELECTION FOR DIVISION OF DISTRICT. (a) After

the board has complied with Section 3861.201, the board shall

hold an election in the district to determine whether the

district should be divided as proposed.

(b) The board shall give notice of the election not later than

the 35th day before the date of the election. The notice must

state:

(1) the date and location of the election; and

(2) the proposition to be voted on.

division:

(1) the district is divided; and

(2) not later than the 30th day after the date of the election,

the district shall provide written notice of the division to:

(A) the Texas Commission on Environmental Quality; and

(B) the city.

(d) If a majority of the votes cast are not in favor of the

division, the district is not divided.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.203. ELECTION OF DIRECTORS OF NEW DISTRICTS. (a) Not

later than the 90th day after the date of an election in favor of

the division of the district, the board shall:

(1) appoint itself as the board of one of the new districts; and

(2) appoint five directors for each of the other new districts.

(b) Directors appointed under Subsection (a)(1) serve the

staggered terms to which they were elected in the original

district. Directors appointed under Subsection (a)(2) serve

until the election for directors under Subsection (c).

even-numbered year after the year in which the directors are

appointed, the appointed board shall hold an election to elect

five directors in each district for which directors were

appointed under Subsection (a)(2). The directors shall draw lots

to determine which two shall serve until the next regularly

scheduled election of directors and which three shall serve until

the second regularly scheduled election of directors.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.204. CONTINUING POWERS AND OBLIGATIONS OF NEW

DISTRICTS. (a) Each new district may incur and pay debts and

has all powers of the original district created by this chapter.

(b) Each new district has the same limitations or other

provisions concerning the city that apply to the original

district.

the current obligations and any bond authorizations of the

district are not impaired. Debts shall be paid by revenue or by

taxes or assessments imposed on real property in the district as

if the district had not been divided or by contributions from

each new district as stated in the terms set by the board under

Section 3861.201(f).

(d) Any other district obligation is divided pro rata among the

new districts on an acreage basis or on other terms that are

satisfactory to the new districts.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.205. CONTRACT AUTHORITY OF NEW DISTRICTS. (a) Except

as provided by Subsection (b), the new districts may contract

with each other for any matter the boards of the new districts

consider appropriate.

(b) The new districts may not contract with each other for water

and wastewater services.

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

531, Sec. 1, eff. June 16, 2007.

SUBCHAPTER F. DISSOLUTION

Sec. 3861.251. DISSOLUTION BY CITY ORDINANCE. (a) The city by

ordinance may dissolve the district and any additional districts

created under Subchapter E.

(b) The city may not dissolve a district until the district's

outstanding indebtedness or contractual obligations payable from

ad valorem taxes have been repaid or discharged.

under Section 3861.161 has been executed and the district's

performance under the agreement has been fulfilled, including any

right or obligation the district has to reimburse a developer or

owner for the costs of improvement projects.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.252. COLLECTION OF ASSESSMENTS AND OTHER REVENUE. (a)

If the dissolved district has bonds or other obligations

outstanding secured by and payable from assessments or other

revenue, other than ad valorem taxes, the city shall succeed to

the rights and obligations of the district regarding enforcement

and collection of the assessments or other revenue.

(b) The city shall have and exercise all district powers to

enforce and collect the assessments or other revenue to pay:

(1) the bonds or other obligations when due and payable

according to their terms; or

(2) special revenue or assessment bonds or other obligations

issued by the city to refund the outstanding bonds or

obligations.

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

531, Sec. 1, eff. June 16, 2007.

Sec. 3861.253. ASSUMPTION OF ASSETS AND LIABILITIES. (a) After

the city dissolves the district, the city assumes the obligations

of the district, including any bonds or other indebtedness

payable from assessments or other district revenue.

(b) If the city dissolves the district, the board shall transfer

ownership of all district property to the city.

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

531, Sec. 1, eff. June 16, 2007.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

Loading..

Loading, Please Wait!