State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3872-chambers-county-improvement-district-no-2

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3872. CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3872.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Chambers County Improvement District

No. 2.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.002. NATURE OF DISTRICT. The district is a special

district created under Sections 52 and 52-a, Article III, and

Section 59, Article XVI, Texas Constitution.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.003. CONFIRMATION AND DIRECTORS' ELECTION REQUIRED.

The temporary directors shall hold an election to confirm the

creation of the district and to elect five permanent directors as

provided by Section 49.102, Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary

directors may not hold an election under Section 3872.003 until

each municipality in whose corporate limits or extraterritorial

jurisdiction the district is located has consented by ordinance

or resolution to the creation of the district and to the

inclusion of land in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.005. 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, the legislature has

established a program to accomplish the public purposes set out

in Sections 52 and 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.

(c) This chapter and the creation of the district may not be

interpreted to relieve the City of Baytown, Chambers County, or

any other governmental entity from providing the level of

services provided, as of the effective date of the Act creating

this chapter, to the area in the district. The district is

created to supplement and not to supplant the governmental

services provided in the area in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.006. 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.

(c) 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.

(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 community and business center;

(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;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.007. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake in the field

notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All

or any part of the area of the district may be included in:

(1) a tax increment reinvestment zone created under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created under Chapter 312,

Tax Code;

(3) an enterprise zone created under Chapter 2303, Government

Code; or

(4) an industrial district created under Chapter 42, Local

Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.009. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.010. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3872.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five directors elected or appointed as

provided by this chapter and Chapter 49, Water Code.

(b) Except as provided by Section 3872.052, directors serve

staggered four-year terms.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.052. TEMPORARY DIRECTORS. (a) On or after the

effective date of the Act creating this chapter, the owner or

owners of a majority of the assessed value of the real property

in the district may submit a petition to the Texas Commission on

Environmental Quality requesting that the commission appoint as

temporary directors the five persons named in the petition. The

commission shall appoint as temporary directors the five persons

named in the petition.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section

3872.003; or

(2) the fourth anniversary of the effective date of the Act

creating this chapter.

(c) If permanent directors have not been elected under Section

3872.003 and the terms of the temporary directors have expired,

successor temporary directors shall be appointed or reappointed

as provided by Subsection (d) to serve terms that expire on the

earlier of:

(1) the date permanent directors are elected under Section

3872.003; or

(2) the fourth anniversary of the date of the appointment or

reappointment.

(d) If Subsection (c) applies, the owner or owners of a majority

of the assessed value of the real property in the district may

submit a petition to the Texas Commission on Environmental

Quality requesting that the commission appoint as successor

temporary directors the five persons named in the petition. The

commission shall appoint as successor temporary directors the

five persons named in the petition.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.053. COMPENSATION. A director is entitled to receive

fees of office and reimbursement for actual expenses as provided

by Section 49.060, Water Code, for directors of a municipal

utility district. Sections 375.069 and 375.070, Local Government

Code, do not apply to the board.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3872.101. GENERAL POWERS. (a) The district may purchase,

construct, acquire, own, operate, maintain, improve, or extend,

inside and outside the district, works, facilities, and

improvements necessary or convenient to accomplish the purposes

of the district authorized by Sections 52 and 52-a, Article III,

and Section 59, Article XVI, Texas Constitution.

(b) The district has the rights, powers, privileges, authority,

and functions conferred by the general law of this state

applicable to:

(1) a municipal management district, including Chapter 375,

Local Government Code; and

(2) municipal utility districts, including Chapters 49 and 54,

Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.102. RECREATIONAL FACILITIES. The district may

develop or finance recreational facilities as authorized by

Chapter 375, Local Government Code, Sections 52 and 52-a, Article

III, Texas Constitution, and any other law that applies to the

district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.103. EVALUATION OF FEASIBILITY. For purposes of any

applicable evaluation by the Texas Commission on Environmental

Quality of the economic feasibility of the district or its

project and bonds, debt service tax rate, maintenance tax rate,

or overlapping tax rate, the commission shall treat the district

as a municipal utility district situated wholly within Harris

County, Texas.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.104. AUTHORITY FOR ROAD PROJECTS. Under Section 52,

Article III, Texas Constitution, the district may design,

acquire, construct, finance, issue bonds for, improve, and convey

to this state, a county, or a municipality for operation and

maintenance macadamized, graveled, or paved roads or

improvements, including storm drainage, in aid of those roads.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.105. ROAD STANDARDS AND REQUIREMENTS. (a) A road

project must meet all applicable construction standards, zoning

and subdivision requirements, and regulations of each

municipality in whose corporate limits or extraterritorial

jurisdiction the road project is located.

(b) If a road project is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, the road project

must meet all applicable construction standards, subdivision

requirements, and regulations of each county in which the road

project is located.

(c) If the state will maintain and operate the road, the Texas

Transportation Commission must approve the plans and

specifications of the road project.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.106. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code, including the power to own,

operate, acquire, construct, lease, improve, or maintain a

project described by that chapter.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.107. 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.

(c) The board shall appoint the board of directors of the

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of

directors of a local government corporation created under Chapter

431, Transportation Code, except that a member of the

corporation's board of directors is not required to reside in the

district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.108. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.109. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To

protect the public interest, the district may contract with a

qualified party, including Chambers County or the City of

Baytown, for the provision of law enforcement services in the

district for a fee.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.111. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district

may establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.112. STRATEGIC PARTNERSHIP AGREEMENT. The district

may negotiate and enter into a written strategic partnership

agreement with a municipality under Section 43.0751, Local

Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.113. LIMITED EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain only for the purposes, only

to the extent, and subject to the limitations the general law

provides for a municipal utility district.

(b) The district may not exercise the power of eminent domain

outside the district to acquire a site or easement for:

(1) a road project authorized by Section 3872.104; or

(2) a recreational facility as defined by Section 49.462, Water

Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.114. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) The district may exclude land as provided by Subchapter J,

Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.115. FIREFIGHTING AND EMERGENCY MEDICAL SERVICES.

Subchapter L, Chapter 49, Water Code, applies to the district.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3872.151. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. The

district may acquire, construct, finance, operate, maintain, or

provide any works, facilities, improvements, or services

authorized under this chapter, Chapter 375, Local Government

Code, or Chapters 49 and 54, Water Code, using any money

available to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.153. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this

chapter unless a written petition requesting that service or

improvement has been filed with the board.

(b) A petition filed under Subsection (a) 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 Chambers County; or

(2) at least 25 persons who own real property in the district

subject to assessment, if more than 25 persons own real property

in the district subject to assessment as determined by the most

recent certified tax appraisal roll for Chambers County.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.154. METHOD OF NOTICE FOR HEARING. The district may

mail the notice required by Section 375.115(c), Local Government

Code, by certified or first class United States mail. The board

shall determine the method of notice.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

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

from an addition to or 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 are:

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

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

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

and

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

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

proceedings.

(c) The lien is effective from the date of the board's

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.156. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.157. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3872.161, the district may impose an operation and maintenance

tax on taxable property in the district in accordance with

Section 49.107, Water Code, for any district purpose, including

to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.158. CONTRACT TAXES. (a) In accordance with Section

49.108, Water Code, the district may impose a tax other than an

operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district

voters voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.159. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.

(a) The district may borrow money on terms and conditions as

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from

a bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue bonds, notes, or other obligations

payable wholly or partly from ad valorem taxes, assessments,

impact fees, revenue, contract payments, grants, or other

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

pay for any authorized district purpose.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.160. TAXES FOR BONDS. At the time the district issues

bonds payable wholly or partly from ad valorem taxes, the board

shall provide for the annual imposition of a continuing direct

annual ad valorem tax, without limit as to rate or amount, while

all or part of the bonds are outstanding as required and in the

manner provided by Sections 54.601 and 54.602, Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.161. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by:

(1) revenue other than ad valorem taxes; or

(2) contract payments described by Section 3872.158.

(b) The district must hold an election in the manner provided by

Subchapter L, Chapter 375, Local Government Code, to obtain voter

approval before the district may impose an ad valorem tax or

issue bonds payable from ad valorem taxes.

(c) The district may not issue bonds payable from ad valorem

taxes to finance a road project unless the issuance is approved

by a vote of a two-thirds majority of the district voters voting

at an election held for that purpose.

(d) At the time of issuance, the total principal amount of bonds

or other obligations issued or incurred to finance road projects

and payable from ad valorem taxes may not exceed one-fourth of

the assessed value of the real property in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.162. COMPETITIVE BIDDING. Subchapter I, Chapter 49,

Water Code, applies to the district. Sections 375.221 and

375.223, Local Government Code, do not apply to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.163. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner authorized by Chapter 312, Tax Code, an

abatement for a tax or assessment owed to the district.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER E. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED

PROPERTY

Sec. 3872.201. AUTHORITY TO ESTABLISH DEFINED AREAS OR

DESIGNATED PROPERTY. The district may define areas or designate

certain property of the district to pay for improvements,

facilities, or services that primarily benefit that area or

property and do not generally and directly benefit the district

as a whole.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.202. PROCEDURE FOR ELECTION. (a) Before the district

may impose an ad valorem tax or issue bonds payable from ad

valorem taxes of the defined area or designated property, the

board shall call and hold an election in the defined area or

within the boundaries of the designated property only.

(b) The election shall be conducted as provided by Section

3872.161.

(c) The board may submit the issues to the voters on the same

ballot to be used in another election.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.203. DECLARING RESULTS AND ISSUING ORDER. (a) If a

majority of the voters voting at the election approve the

proposition or propositions, the board shall declare the results

and, by order, shall establish the defined area and describe it

by metes and bounds or designate the specific property.

(b) The board's order is not subject to judicial review except

on the ground of fraud, palpable error, or arbitrary and

confiscatory abuse of discretion.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.204. TAXES FOR IMPROVEMENTS AND FACILITIES IN DEFINED

AREAS OR DESIGNATED PROPERTY. On voter approval and adoption of

the order described by Section 3872.203, the district may apply

separately, differently, equitably, and specifically its taxing

power and lien authority to the defined area or designated

property to provide money to construct, administer, maintain, and

operate services, improvements, and facilities that primarily

benefit the defined area or designated property.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.205. ISSUANCE OF BONDS FOR DEFINED AREA OR DESIGNATED

PROPERTY. After the order under Section 3872.203 is adopted, the

district may issue bonds to provide for any land, improvements,

facilities, plants, equipment, and appliances for the defined

area or designated property.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER F. MUNICIPAL ANNEXATION AND EFFECT ON MUNICIPAL POWERS

Sec. 3872.251. MUNICIPAL ANNEXATION OF THE DISTRICT.

Notwithstanding Chapter 43, Local Government Code, a municipality

in whose extraterritorial jurisdiction the district is located

may annex all or part of the district. Municipal annexation of

all or part of the district has no effect on the validity of the

district and the district shall continue to exist and exercise

the powers granted by this Act. Municipal annexation does not

result in total or partial dissolution of the district or an

assumption by the annexing municipality of any of the district's

obligations or indebtedness.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.252. EFFECT ON MUNICIPAL POWERS. (a) The creation of

the district does not affect the power of a municipality in whose

extraterritorial jurisdiction the district or part of the

district lies to:

(1) designate all or part of the district as an industrial

district;

(2) limit a power of the municipality conferred by Chapter 42,

Local Government Code; or

(3) provide municipal services to any area in the municipality

or its extraterritorial jurisdiction that is also in the

district.

(b) The creation of the district does not affect the power the

municipality had before the district was created to spend money

or provide services.

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

873, Sec. 1, eff. June 19, 2009.

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3872-chambers-county-improvement-district-no-2

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3872. CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3872.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Chambers County Improvement District

No. 2.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.002. NATURE OF DISTRICT. The district is a special

district created under Sections 52 and 52-a, Article III, and

Section 59, Article XVI, Texas Constitution.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.003. CONFIRMATION AND DIRECTORS' ELECTION REQUIRED.

The temporary directors shall hold an election to confirm the

creation of the district and to elect five permanent directors as

provided by Section 49.102, Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary

directors may not hold an election under Section 3872.003 until

each municipality in whose corporate limits or extraterritorial

jurisdiction the district is located has consented by ordinance

or resolution to the creation of the district and to the

inclusion of land in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.005. 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, the legislature has

established a program to accomplish the public purposes set out

in Sections 52 and 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.

(c) This chapter and the creation of the district may not be

interpreted to relieve the City of Baytown, Chambers County, or

any other governmental entity from providing the level of

services provided, as of the effective date of the Act creating

this chapter, to the area in the district. The district is

created to supplement and not to supplant the governmental

services provided in the area in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.006. 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.

(c) 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.

(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 community and business center;

(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;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.007. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake in the field

notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All

or any part of the area of the district may be included in:

(1) a tax increment reinvestment zone created under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created under Chapter 312,

Tax Code;

(3) an enterprise zone created under Chapter 2303, Government

Code; or

(4) an industrial district created under Chapter 42, Local

Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.009. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.010. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3872.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five directors elected or appointed as

provided by this chapter and Chapter 49, Water Code.

(b) Except as provided by Section 3872.052, directors serve

staggered four-year terms.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.052. TEMPORARY DIRECTORS. (a) On or after the

effective date of the Act creating this chapter, the owner or

owners of a majority of the assessed value of the real property

in the district may submit a petition to the Texas Commission on

Environmental Quality requesting that the commission appoint as

temporary directors the five persons named in the petition. The

commission shall appoint as temporary directors the five persons

named in the petition.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section

3872.003; or

(2) the fourth anniversary of the effective date of the Act

creating this chapter.

(c) If permanent directors have not been elected under Section

3872.003 and the terms of the temporary directors have expired,

successor temporary directors shall be appointed or reappointed

as provided by Subsection (d) to serve terms that expire on the

earlier of:

(1) the date permanent directors are elected under Section

3872.003; or

(2) the fourth anniversary of the date of the appointment or

reappointment.

(d) If Subsection (c) applies, the owner or owners of a majority

of the assessed value of the real property in the district may

submit a petition to the Texas Commission on Environmental

Quality requesting that the commission appoint as successor

temporary directors the five persons named in the petition. The

commission shall appoint as successor temporary directors the

five persons named in the petition.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.053. COMPENSATION. A director is entitled to receive

fees of office and reimbursement for actual expenses as provided

by Section 49.060, Water Code, for directors of a municipal

utility district. Sections 375.069 and 375.070, Local Government

Code, do not apply to the board.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3872.101. GENERAL POWERS. (a) The district may purchase,

construct, acquire, own, operate, maintain, improve, or extend,

inside and outside the district, works, facilities, and

improvements necessary or convenient to accomplish the purposes

of the district authorized by Sections 52 and 52-a, Article III,

and Section 59, Article XVI, Texas Constitution.

(b) The district has the rights, powers, privileges, authority,

and functions conferred by the general law of this state

applicable to:

(1) a municipal management district, including Chapter 375,

Local Government Code; and

(2) municipal utility districts, including Chapters 49 and 54,

Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.102. RECREATIONAL FACILITIES. The district may

develop or finance recreational facilities as authorized by

Chapter 375, Local Government Code, Sections 52 and 52-a, Article

III, Texas Constitution, and any other law that applies to the

district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.103. EVALUATION OF FEASIBILITY. For purposes of any

applicable evaluation by the Texas Commission on Environmental

Quality of the economic feasibility of the district or its

project and bonds, debt service tax rate, maintenance tax rate,

or overlapping tax rate, the commission shall treat the district

as a municipal utility district situated wholly within Harris

County, Texas.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.104. AUTHORITY FOR ROAD PROJECTS. Under Section 52,

Article III, Texas Constitution, the district may design,

acquire, construct, finance, issue bonds for, improve, and convey

to this state, a county, or a municipality for operation and

maintenance macadamized, graveled, or paved roads or

improvements, including storm drainage, in aid of those roads.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.105. ROAD STANDARDS AND REQUIREMENTS. (a) A road

project must meet all applicable construction standards, zoning

and subdivision requirements, and regulations of each

municipality in whose corporate limits or extraterritorial

jurisdiction the road project is located.

(b) If a road project is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, the road project

must meet all applicable construction standards, subdivision

requirements, and regulations of each county in which the road

project is located.

(c) If the state will maintain and operate the road, the Texas

Transportation Commission must approve the plans and

specifications of the road project.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.106. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code, including the power to own,

operate, acquire, construct, lease, improve, or maintain a

project described by that chapter.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.107. 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.

(c) The board shall appoint the board of directors of the

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of

directors of a local government corporation created under Chapter

431, Transportation Code, except that a member of the

corporation's board of directors is not required to reside in the

district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.108. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.109. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To

protect the public interest, the district may contract with a

qualified party, including Chambers County or the City of

Baytown, for the provision of law enforcement services in the

district for a fee.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.111. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district

may establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.112. STRATEGIC PARTNERSHIP AGREEMENT. The district

may negotiate and enter into a written strategic partnership

agreement with a municipality under Section 43.0751, Local

Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.113. LIMITED EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain only for the purposes, only

to the extent, and subject to the limitations the general law

provides for a municipal utility district.

(b) The district may not exercise the power of eminent domain

outside the district to acquire a site or easement for:

(1) a road project authorized by Section 3872.104; or

(2) a recreational facility as defined by Section 49.462, Water

Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.114. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) The district may exclude land as provided by Subchapter J,

Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.115. FIREFIGHTING AND EMERGENCY MEDICAL SERVICES.

Subchapter L, Chapter 49, Water Code, applies to the district.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3872.151. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. The

district may acquire, construct, finance, operate, maintain, or

provide any works, facilities, improvements, or services

authorized under this chapter, Chapter 375, Local Government

Code, or Chapters 49 and 54, Water Code, using any money

available to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.153. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this

chapter unless a written petition requesting that service or

improvement has been filed with the board.

(b) A petition filed under Subsection (a) 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 Chambers County; or

(2) at least 25 persons who own real property in the district

subject to assessment, if more than 25 persons own real property

in the district subject to assessment as determined by the most

recent certified tax appraisal roll for Chambers County.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.154. METHOD OF NOTICE FOR HEARING. The district may

mail the notice required by Section 375.115(c), Local Government

Code, by certified or first class United States mail. The board

shall determine the method of notice.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

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

from an addition to or 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 are:

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

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

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

and

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

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

proceedings.

(c) The lien is effective from the date of the board's

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.156. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.157. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3872.161, the district may impose an operation and maintenance

tax on taxable property in the district in accordance with

Section 49.107, Water Code, for any district purpose, including

to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.158. CONTRACT TAXES. (a) In accordance with Section

49.108, Water Code, the district may impose a tax other than an

operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district

voters voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.159. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.

(a) The district may borrow money on terms and conditions as

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from

a bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue bonds, notes, or other obligations

payable wholly or partly from ad valorem taxes, assessments,

impact fees, revenue, contract payments, grants, or other

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

pay for any authorized district purpose.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.160. TAXES FOR BONDS. At the time the district issues

bonds payable wholly or partly from ad valorem taxes, the board

shall provide for the annual imposition of a continuing direct

annual ad valorem tax, without limit as to rate or amount, while

all or part of the bonds are outstanding as required and in the

manner provided by Sections 54.601 and 54.602, Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.161. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by:

(1) revenue other than ad valorem taxes; or

(2) contract payments described by Section 3872.158.

(b) The district must hold an election in the manner provided by

Subchapter L, Chapter 375, Local Government Code, to obtain voter

approval before the district may impose an ad valorem tax or

issue bonds payable from ad valorem taxes.

(c) The district may not issue bonds payable from ad valorem

taxes to finance a road project unless the issuance is approved

by a vote of a two-thirds majority of the district voters voting

at an election held for that purpose.

(d) At the time of issuance, the total principal amount of bonds

or other obligations issued or incurred to finance road projects

and payable from ad valorem taxes may not exceed one-fourth of

the assessed value of the real property in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.162. COMPETITIVE BIDDING. Subchapter I, Chapter 49,

Water Code, applies to the district. Sections 375.221 and

375.223, Local Government Code, do not apply to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.163. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner authorized by Chapter 312, Tax Code, an

abatement for a tax or assessment owed to the district.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER E. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED

PROPERTY

Sec. 3872.201. AUTHORITY TO ESTABLISH DEFINED AREAS OR

DESIGNATED PROPERTY. The district may define areas or designate

certain property of the district to pay for improvements,

facilities, or services that primarily benefit that area or

property and do not generally and directly benefit the district

as a whole.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.202. PROCEDURE FOR ELECTION. (a) Before the district

may impose an ad valorem tax or issue bonds payable from ad

valorem taxes of the defined area or designated property, the

board shall call and hold an election in the defined area or

within the boundaries of the designated property only.

(b) The election shall be conducted as provided by Section

3872.161.

(c) The board may submit the issues to the voters on the same

ballot to be used in another election.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.203. DECLARING RESULTS AND ISSUING ORDER. (a) If a

majority of the voters voting at the election approve the

proposition or propositions, the board shall declare the results

and, by order, shall establish the defined area and describe it

by metes and bounds or designate the specific property.

(b) The board's order is not subject to judicial review except

on the ground of fraud, palpable error, or arbitrary and

confiscatory abuse of discretion.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.204. TAXES FOR IMPROVEMENTS AND FACILITIES IN DEFINED

AREAS OR DESIGNATED PROPERTY. On voter approval and adoption of

the order described by Section 3872.203, the district may apply

separately, differently, equitably, and specifically its taxing

power and lien authority to the defined area or designated

property to provide money to construct, administer, maintain, and

operate services, improvements, and facilities that primarily

benefit the defined area or designated property.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.205. ISSUANCE OF BONDS FOR DEFINED AREA OR DESIGNATED

PROPERTY. After the order under Section 3872.203 is adopted, the

district may issue bonds to provide for any land, improvements,

facilities, plants, equipment, and appliances for the defined

area or designated property.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER F. MUNICIPAL ANNEXATION AND EFFECT ON MUNICIPAL POWERS

Sec. 3872.251. MUNICIPAL ANNEXATION OF THE DISTRICT.

Notwithstanding Chapter 43, Local Government Code, a municipality

in whose extraterritorial jurisdiction the district is located

may annex all or part of the district. Municipal annexation of

all or part of the district has no effect on the validity of the

district and the district shall continue to exist and exercise

the powers granted by this Act. Municipal annexation does not

result in total or partial dissolution of the district or an

assumption by the annexing municipality of any of the district's

obligations or indebtedness.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.252. EFFECT ON MUNICIPAL POWERS. (a) The creation of

the district does not affect the power of a municipality in whose

extraterritorial jurisdiction the district or part of the

district lies to:

(1) designate all or part of the district as an industrial

district;

(2) limit a power of the municipality conferred by Chapter 42,

Local Government Code; or

(3) provide municipal services to any area in the municipality

or its extraterritorial jurisdiction that is also in the

district.

(b) The creation of the district does not affect the power the

municipality had before the district was created to spend money

or provide services.

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

873, Sec. 1, eff. June 19, 2009.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-4-development-and-improvement > Chapter-3872-chambers-county-improvement-district-no-2

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 4. DEVELOPMENT AND IMPROVEMENT

SUBTITLE C. DEVELOPMENT, IMPROVEMENT, AND MANAGEMENT

CHAPTER 3872. CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. 2

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 3872.001. DEFINITIONS. In this chapter:

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

(2) "Director" means a board member.

(3) "District" means the Chambers County Improvement District

No. 2.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.002. NATURE OF DISTRICT. The district is a special

district created under Sections 52 and 52-a, Article III, and

Section 59, Article XVI, Texas Constitution.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.003. CONFIRMATION AND DIRECTORS' ELECTION REQUIRED.

The temporary directors shall hold an election to confirm the

creation of the district and to elect five permanent directors as

provided by Section 49.102, Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.004. CONSENT OF MUNICIPALITY REQUIRED. The temporary

directors may not hold an election under Section 3872.003 until

each municipality in whose corporate limits or extraterritorial

jurisdiction the district is located has consented by ordinance

or resolution to the creation of the district and to the

inclusion of land in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.005. 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, the legislature has

established a program to accomplish the public purposes set out

in Sections 52 and 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.

(c) This chapter and the creation of the district may not be

interpreted to relieve the City of Baytown, Chambers County, or

any other governmental entity from providing the level of

services provided, as of the effective date of the Act creating

this chapter, to the area in the district. The district is

created to supplement and not to supplant the governmental

services provided in the area in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.006. 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.

(c) 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.

(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 community and business center;

(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;

and

(4) provide for water, wastewater, drainage, road, and

recreational facilities for the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.007. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter form a closure. A mistake in the field

notes or in copying the field notes in the legislative process

does not affect the district's:

(1) organization, existence, or validity;

(2) right to issue any type of bond for the purposes for which

the district is created or to pay the principal of and interest

on the bond;

(3) right to impose or collect an assessment or tax; or

(4) legality or operation.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.008. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All

or any part of the area of the district may be included in:

(1) a tax increment reinvestment zone created under Chapter 311,

Tax Code;

(2) a tax abatement reinvestment zone created under Chapter 312,

Tax Code;

(3) an enterprise zone created under Chapter 2303, Government

Code; or

(4) an industrial district created under Chapter 42, Local

Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.009. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.010. LIBERAL CONSTRUCTION OF CHAPTER. This chapter

shall be liberally construed in conformity with the findings and

purposes stated in this chapter.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 3872.051. GOVERNING BODY; TERMS. (a) The district is

governed by a board of five directors elected or appointed as

provided by this chapter and Chapter 49, Water Code.

(b) Except as provided by Section 3872.052, directors serve

staggered four-year terms.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.052. TEMPORARY DIRECTORS. (a) On or after the

effective date of the Act creating this chapter, the owner or

owners of a majority of the assessed value of the real property

in the district may submit a petition to the Texas Commission on

Environmental Quality requesting that the commission appoint as

temporary directors the five persons named in the petition. The

commission shall appoint as temporary directors the five persons

named in the petition.

(b) Temporary directors serve until the earlier of:

(1) the date permanent directors are elected under Section

3872.003; or

(2) the fourth anniversary of the effective date of the Act

creating this chapter.

(c) If permanent directors have not been elected under Section

3872.003 and the terms of the temporary directors have expired,

successor temporary directors shall be appointed or reappointed

as provided by Subsection (d) to serve terms that expire on the

earlier of:

(1) the date permanent directors are elected under Section

3872.003; or

(2) the fourth anniversary of the date of the appointment or

reappointment.

(d) If Subsection (c) applies, the owner or owners of a majority

of the assessed value of the real property in the district may

submit a petition to the Texas Commission on Environmental

Quality requesting that the commission appoint as successor

temporary directors the five persons named in the petition. The

commission shall appoint as successor temporary directors the

five persons named in the petition.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.053. COMPENSATION. A director is entitled to receive

fees of office and reimbursement for actual expenses as provided

by Section 49.060, Water Code, for directors of a municipal

utility district. Sections 375.069 and 375.070, Local Government

Code, do not apply to the board.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 3872.101. GENERAL POWERS. (a) The district may purchase,

construct, acquire, own, operate, maintain, improve, or extend,

inside and outside the district, works, facilities, and

improvements necessary or convenient to accomplish the purposes

of the district authorized by Sections 52 and 52-a, Article III,

and Section 59, Article XVI, Texas Constitution.

(b) The district has the rights, powers, privileges, authority,

and functions conferred by the general law of this state

applicable to:

(1) a municipal management district, including Chapter 375,

Local Government Code; and

(2) municipal utility districts, including Chapters 49 and 54,

Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.102. RECREATIONAL FACILITIES. The district may

develop or finance recreational facilities as authorized by

Chapter 375, Local Government Code, Sections 52 and 52-a, Article

III, Texas Constitution, and any other law that applies to the

district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.103. EVALUATION OF FEASIBILITY. For purposes of any

applicable evaluation by the Texas Commission on Environmental

Quality of the economic feasibility of the district or its

project and bonds, debt service tax rate, maintenance tax rate,

or overlapping tax rate, the commission shall treat the district

as a municipal utility district situated wholly within Harris

County, Texas.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.104. AUTHORITY FOR ROAD PROJECTS. Under Section 52,

Article III, Texas Constitution, the district may design,

acquire, construct, finance, issue bonds for, improve, and convey

to this state, a county, or a municipality for operation and

maintenance macadamized, graveled, or paved roads or

improvements, including storm drainage, in aid of those roads.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.105. ROAD STANDARDS AND REQUIREMENTS. (a) A road

project must meet all applicable construction standards, zoning

and subdivision requirements, and regulations of each

municipality in whose corporate limits or extraterritorial

jurisdiction the road project is located.

(b) If a road project is not located in the corporate limits or

extraterritorial jurisdiction of a municipality, the road project

must meet all applicable construction standards, subdivision

requirements, and regulations of each county in which the road

project is located.

(c) If the state will maintain and operate the road, the Texas

Transportation Commission must approve the plans and

specifications of the road project.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.106. DEVELOPMENT CORPORATION POWERS. The district may

exercise the powers given to a development corporation under

Chapter 505, Local Government Code, including the power to own,

operate, acquire, construct, lease, improve, or maintain a

project described by that chapter.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.107. 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.

(c) The board shall appoint the board of directors of the

nonprofit corporation. The board of directors of the nonprofit

corporation shall serve in the same manner as the board of

directors of a local government corporation created under Chapter

431, Transportation Code, except that a member of the

corporation's board of directors is not required to reside in the

district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.108. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.109. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT. To

protect the public interest, the district may contract with a

qualified party, including Chambers County or the City of

Baytown, for the provision of law enforcement services in the

district for a fee.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.110. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The

district may join and pay dues to a charitable or nonprofit

organization that performs a service or provides an activity

consistent with the furtherance of a district purpose.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.111. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district

may establish and provide for the administration of one or more

programs to promote state or local economic development and to

stimulate business and commercial activity in the district,

including programs to:

(1) make loans and grants of public money; and

(2) provide district personnel and services.

(b) The district has all of the powers of a municipality under

Chapter 380, Local Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.112. STRATEGIC PARTNERSHIP AGREEMENT. The district

may negotiate and enter into a written strategic partnership

agreement with a municipality under Section 43.0751, Local

Government Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.113. LIMITED EMINENT DOMAIN. (a) The district may

exercise the power of eminent domain only for the purposes, only

to the extent, and subject to the limitations the general law

provides for a municipal utility district.

(b) The district may not exercise the power of eminent domain

outside the district to acquire a site or easement for:

(1) a road project authorized by Section 3872.104; or

(2) a recreational facility as defined by Section 49.462, Water

Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.114. ANNEXATION OR EXCLUSION OF LAND. (a) The

district may annex land as provided by Subchapter J, Chapter 49,

Water Code.

(b) The district may exclude land as provided by Subchapter J,

Chapter 49, Water Code. Section 375.044(b), Local Government

Code, does not apply to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.115. FIREFIGHTING AND EMERGENCY MEDICAL SERVICES.

Subchapter L, Chapter 49, Water Code, applies to the district.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 3872.151. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.152. MONEY USED FOR IMPROVEMENTS OR SERVICES. The

district may acquire, construct, finance, operate, maintain, or

provide any works, facilities, improvements, or services

authorized under this chapter, Chapter 375, Local Government

Code, or Chapters 49 and 54, Water Code, using any money

available to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.153. PETITION REQUIRED FOR FINANCING SERVICES AND

IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a

service or improvement project with assessments under this

chapter unless a written petition requesting that service or

improvement has been filed with the board.

(b) A petition filed under Subsection (a) 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 Chambers County; or

(2) at least 25 persons who own real property in the district

subject to assessment, if more than 25 persons own real property

in the district subject to assessment as determined by the most

recent certified tax appraisal roll for Chambers County.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.154. METHOD OF NOTICE FOR HEARING. The district may

mail the notice required by Section 375.115(c), Local Government

Code, by certified or first class United States mail. The board

shall determine the method of notice.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The

board by resolution may impose and collect an assessment for any

purpose authorized by this chapter in all or any part of the

district.

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

from an addition to or 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 are:

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

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

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

and

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

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

proceedings.

(c) The lien is effective from the date of the board's

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.156. 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 2009, 81st Leg., R.S., Ch.

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.157. OPERATION AND MAINTENANCE TAX. (a) If

authorized at an election held in accordance with Section

3872.161, the district may impose an operation and maintenance

tax on taxable property in the district in accordance with

Section 49.107, Water Code, for any district purpose, including

to:

(1) maintain and operate the district;

(2) construct or acquire improvements; or

(3) provide a service.

(b) The board shall determine the tax rate. The rate may not

exceed the rate approved at the election.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.158. CONTRACT TAXES. (a) In accordance with Section

49.108, Water Code, the district may impose a tax other than an

operation and maintenance tax and use the revenue derived from

the tax to make payments under a contract after the provisions of

the contract have been approved by a majority of the district

voters voting at an election held for that purpose.

(b) A contract approved by the district voters may contain a

provision stating that the contract may be modified or amended by

the board without further voter approval.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.159. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS.

(a) The district may borrow money on terms and conditions as

determined by the board. Section 375.205, Local Government Code,

does not apply to a loan, line of credit, or other borrowing from

a bank or financial institution secured by revenue other than ad

valorem taxes.

(b) The district may issue bonds, notes, or other obligations

payable wholly or partly from ad valorem taxes, assessments,

impact fees, revenue, contract payments, grants, or other

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

pay for any authorized district purpose.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.160. TAXES FOR BONDS. At the time the district issues

bonds payable wholly or partly from ad valorem taxes, the board

shall provide for the annual imposition of a continuing direct

annual ad valorem tax, without limit as to rate or amount, while

all or part of the bonds are outstanding as required and in the

manner provided by Sections 54.601 and 54.602, Water Code.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.161. ELECTIONS REGARDING TAXES AND BONDS. (a) The

district may issue, without an election, bonds, notes, and other

obligations secured by:

(1) revenue other than ad valorem taxes; or

(2) contract payments described by Section 3872.158.

(b) The district must hold an election in the manner provided by

Subchapter L, Chapter 375, Local Government Code, to obtain voter

approval before the district may impose an ad valorem tax or

issue bonds payable from ad valorem taxes.

(c) The district may not issue bonds payable from ad valorem

taxes to finance a road project unless the issuance is approved

by a vote of a two-thirds majority of the district voters voting

at an election held for that purpose.

(d) At the time of issuance, the total principal amount of bonds

or other obligations issued or incurred to finance road projects

and payable from ad valorem taxes may not exceed one-fourth of

the assessed value of the real property in the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.162. COMPETITIVE BIDDING. Subchapter I, Chapter 49,

Water Code, applies to the district. Sections 375.221 and

375.223, Local Government Code, do not apply to the district.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.163. TAX AND ASSESSMENT ABATEMENTS. The district may

grant in the manner authorized by Chapter 312, Tax Code, an

abatement for a tax or assessment owed to the district.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER E. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED

PROPERTY

Sec. 3872.201. AUTHORITY TO ESTABLISH DEFINED AREAS OR

DESIGNATED PROPERTY. The district may define areas or designate

certain property of the district to pay for improvements,

facilities, or services that primarily benefit that area or

property and do not generally and directly benefit the district

as a whole.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.202. PROCEDURE FOR ELECTION. (a) Before the district

may impose an ad valorem tax or issue bonds payable from ad

valorem taxes of the defined area or designated property, the

board shall call and hold an election in the defined area or

within the boundaries of the designated property only.

(b) The election shall be conducted as provided by Section

3872.161.

(c) The board may submit the issues to the voters on the same

ballot to be used in another election.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.203. DECLARING RESULTS AND ISSUING ORDER. (a) If a

majority of the voters voting at the election approve the

proposition or propositions, the board shall declare the results

and, by order, shall establish the defined area and describe it

by metes and bounds or designate the specific property.

(b) The board's order is not subject to judicial review except

on the ground of fraud, palpable error, or arbitrary and

confiscatory abuse of discretion.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.204. TAXES FOR IMPROVEMENTS AND FACILITIES IN DEFINED

AREAS OR DESIGNATED PROPERTY. On voter approval and adoption of

the order described by Section 3872.203, the district may apply

separately, differently, equitably, and specifically its taxing

power and lien authority to the defined area or designated

property to provide money to construct, administer, maintain, and

operate services, improvements, and facilities that primarily

benefit the defined area or designated property.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.205. ISSUANCE OF BONDS FOR DEFINED AREA OR DESIGNATED

PROPERTY. After the order under Section 3872.203 is adopted, the

district may issue bonds to provide for any land, improvements,

facilities, plants, equipment, and appliances for the defined

area or designated property.

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

873, Sec. 1, eff. June 19, 2009.

SUBCHAPTER F. MUNICIPAL ANNEXATION AND EFFECT ON MUNICIPAL POWERS

Sec. 3872.251. MUNICIPAL ANNEXATION OF THE DISTRICT.

Notwithstanding Chapter 43, Local Government Code, a municipality

in whose extraterritorial jurisdiction the district is located

may annex all or part of the district. Municipal annexation of

all or part of the district has no effect on the validity of the

district and the district shall continue to exist and exercise

the powers granted by this Act. Municipal annexation does not

result in total or partial dissolution of the district or an

assumption by the annexing municipality of any of the district's

obligations or indebtedness.

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

873, Sec. 1, eff. June 19, 2009.

Sec. 3872.252. EFFECT ON MUNICIPAL POWERS. (a) The creation of

the district does not affect the power of a municipality in whose

extraterritorial jurisdiction the district or part of the

district lies to:

(1) designate all or part of the district as an industrial

district;

(2) limit a power of the municipality conferred by Chapter 42,

Local Government Code; or

(3) provide municipal services to any area in the municipality

or its extraterritorial jurisdiction that is also in the

district.

(b) The creation of the district does not affect the power the

municipality had before the district was created to spend money

or provide services.

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

873, Sec. 1, eff. June 19, 2009.