State Codes and Statutes

Statutes > Texas > Transportation-code > Title-6-roadways > Chapter-441-road-utility-districts

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE J. ROAD UTILITY DISTRICTS

CHAPTER 441. ROAD UTILITY DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 441.001. DEFINITIONS. In this chapter:

(1) "Approval statement" means a statement that a governmental

entity issues to a petitioner under Section 441.015.

(2) "Bonds" includes notes, warrants, or other evidence of

indebtedness.

(3) "District" means a road utility district.

(4) "Governmental entity" means a municipality, a county, or the

department.

(5) "Road" means a graveled or paved road or turnpike that

serves or is intended to serve as an arterial or main feeder road

under standards the commission prescribes.

(6) "Road facility" means:

(A) a road constructed, acquired, or improved by a district; or

(B) property, an easement, or works constructed, acquired, or

improved by a district and necessary or appropriate for or in aid

of the improvement of a river, creek, or stream to prevent

overflow or the construction and maintenance of a pool, lake,

reservoir, dam, canal, or waterway for the purpose of drainage,

if the property, easement, or works is related to or in

furtherance of the construction, acquisition, or improvement of a

road.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.002. COMMISSION RULES. The commission may adopt rules

to implement this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 441.011. CREATION; PURPOSE. A district may be created

under Section 52, Article III, Texas Constitution, to construct,

acquire, improve, and provide financing for a road facility as

provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.012. TERRITORY. A district may contain all or part of

one or more counties.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.013. SUBMISSION OF PRELIMINARY PLAN. Before submitting

a petition to create a district under Section 441.018, a person

must submit a preliminary plan for each road facility the

district is to construct, acquire, or improve to each

governmental entity to which the road facility is to be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.014. REVIEW OF PRELIMINARY PLAN. (a) Not later than

the 120th day and not earlier than the 90th day after the date a

preliminary plan is submitted under Section 441.013, the

governmental entity shall determine whether:

(1) the plan meets the governmental entity's requirements; and

(2) to approve the plan and accept the conveyance of the road

facilities as provided by this chapter.

(b) The governmental entity shall consult with the person

submitting the plan and, with that person's agreement, make

changes necessary to make the plan comply with the governmental

entity's requirements. The governmental entity's requirements may

include specific designations of the characters of title to be

required on conveyance.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.015. GRANTING OR DENYING APPROVAL OF PRELIMINARY PLAN.

(a) The governing body of a governmental entity that approves a

preliminary plan and is willing to accept conveyance of the road

facilities on acquisition or completion of construction or

improvement shall:

(1) issue an order approving the plan; and

(2) give the person who submitted the plan a written approval

statement.

(b) An approval statement must state that the governmental

entity approves the preliminary plan and will accept conveyance

of the road facilities on acquisition or on completion of

construction or improvement.

(c) If the governmental entity does not approve the plan and is

not willing to accept a conveyance of the road facilities, the

governing body of the governmental entity shall issue an order

denying approval of the preliminary plan and refusing conveyance

of the road facilities.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.016. APPROVAL OF MULTIPLE GOVERNMENTAL ENTITIES. (a)

If road facilities constructed, acquired, or improved by a

district are to be conveyed to more than one governmental entity,

each governmental entity must:

(1) approve the plans for the road facilities to be conveyed to

it; and

(2) issue an approval statement for those road facilities.

(b) The procedures in this chapter relating to approval and

conveyance of a road facility to a governmental entity apply to

each governmental entity to which a road facility is to be

conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.017. APPROVAL OF PRELIMINARY PLAN FOR ROAD FACILITY IN

MUNICIPALITY OR MUNICIPALITY'S EXTRATERRITORIAL JURISDICTION.

(a) This section applies only to a district that:

(1) is located in whole or part in a municipality or the

extraterritorial jurisdiction of a municipality; and

(2) constructs, acquires, or improves a road facility that is to

be:

(A) located in a municipality or a municipality's

extraterritorial jurisdiction; and

(B) conveyed to the county under Section 441.133.

(b) A county may not approve a preliminary plan or issue an

approval statement for a road facility to which this section

applies unless the person who seeks the approval agrees in

writing to comply with the municipality's requirements for

construction, acquisition, or improvement of a road facility in

the municipality or the municipality's extraterritorial

jurisdiction. The county shall consult the municipality to ensure

that the preliminary plan complies with those requirements.

(c) Not later than the 55th day after the date the plan is filed

with the county, a municipality must complete its review of the

plan and issue to the county and the person who submitted the

plan a written statement approving the plan as complying with the

municipality's requirements. Except as provided by Subsection

(d):

(1) the county may not issue an approval statement under Section

441.015 until it receives the written statement from each

municipality; and

(2) the person petitioning for creation of the district must

submit the municipality's written statement in addition to other

required documents.

(d) If a municipality does not timely file its statement with

the county:

(1) the municipality waives its right to review and approve the

plan;

(2) the county may issue the approval statement without the

municipality's statement;

(3) the person who submitted the plan may petition for creation

of the district without the municipality's statement; and

(4) the county shall issue to the person who submitted the plan

a letter explaining that the municipality's statement was not

timely filed, and the person shall submit the letter with the

petition to the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.018. PETITION REQUIRED. To create a district a person

must file with the commission a petition requesting creation of

the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.019. CONTENTS OF PETITION. (a) The petition must

include:

(1) the district's name;

(2) the name of each county in which the district will be

located;

(3) a description of the district's boundaries;

(4) each petitioner's name;

(5) a statement that the petitioners hold title to all real

property in the district, as shown on county tax rolls;

(6) the names of suggested temporary directors;

(7) a brief description of any road facility that the district

is to construct, acquire, or improve;

(8) the amount of bonds estimated to be necessary to finance the

proposed construction, acquisition, or improvement;

(9) the current appraised value of all real property in the

district;

(10) the name of each governmental entity to which the district

will convey a road facility; and

(11) other information that the commission considers necessary.

(b) The petition must be signed by the persons holding title to

all real property in the district, as shown on county tax rolls.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.020. FILING OF PRELIMINARY PLAN AND APPROVAL STATEMENT.

(a) The petition must be accompanied by a copy of:

(1) the preliminary plan for any road facility the district is

to construct, acquire, and improve; and

(2) each required approval statement.

(b) The commission may not consider a petition or approve a

district unless each required approval statement for the district

is filed with the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.021. PETITION FEE. (a) The petition must be

accompanied by a reasonable fee in an amount determined by the

commission not to exceed $5,000. The commission may not refund

the fee or any part of the fee.

(b) The commission shall use the fee to pay costs of processing

the petition.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.022. HEARING REQUIRED. (a) As soon as practicable

after the petition, preliminary plan, and each required approval

statement is filed with the commission, the commission shall call

and hold a hearing on the petition and preliminary plan.

(b) The hearing may be in Travis County or in a county in which

all or part of the district is to be located.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.023. NOTICE OF HEARING. (a) In addition to the notice

requirements of Chapter 2001, Government Code, and not later than

the 10th day before the date of the hearing, the commission shall

give written notice of the hearing to:

(1) the commissioners court of each county in which all or part

of the district is to be located; and

(2) the governing body of each municipality in which or in the

extraterritorial jurisdiction of which the district is to be

located.

(b) Once a week for two consecutive weeks the commission shall

publish notice of the hearing in a newspaper of general

circulation in each county in which the district is to be

located. The first publication must be not later than 30 days

before the date of the hearing.

(c) Not later than 30 days before the date of the hearing, the

commission shall mail notice of the hearing by first class mail

to each owner of real property to be included in the district, as

shown on the county tax rolls.

(d) A county, municipality, or property owner receiving notice

under Subsection (a) or (c) may appear at the hearing through an

official representative or in person and may present testimony

and evidence relating to the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.024. GRANTING OR DENYING PETITION. As soon as

practicable after conclusion of the hearing, the commission shall

adopt an order:

(1) granting the creation of the district and approving the

plan; or

(2) denying the petition and disapproving the plan.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.025. GROUNDS REQUIRING GRANTING OF PETITION. The

commission shall grant the creation of the district and approve

the plan if it finds that:

(1) the creation of the district will benefit the real property

in the district;

(2) each proposed road facility is feasible, practicable, and

necessary and will benefit the district and the real property in

the district;

(3) each governmental entity to which a road facility is to be

conveyed has approved the preliminary plan for the road facility;

(4) the person seeking approval has agreed in writing to comply

with the requirements of each municipality in which or

extraterritorial jurisdiction of which a road facility is to be

located, if the road facility is to be conveyed to a county;

(5) each governmental entity to which a road facility is to be

conveyed has agreed, by issuing an approval statement, to accept

the conveyance; and

(6) the district will be financially able to issue and pay its

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.026. GROUNDS REQUIRING DENIAL OF PETITION. The

commission shall refuse to authorize creation of the district if

the commission:

(1) finds that creation of the district will benefit none of the

real property to be included in the district; or

(2) is unable to make any of the findings listed in Sections

441.025(2)-(6).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.027. OTHER CONSIDERATIONS IN GRANTING OR DENYING

PETITION. Before the commission adopts an order under Section

441.024, it may:

(1) consult with each governmental entity that has submitted an

approval statement regarding suggested changes in the plan;

(2) suggest or direct that the petitioners change the plan for a

district road facility, including deleting a road facility, so as

to make the plan acceptable to the commission; and

(3) consider the environmental effects of the proposals in the

preliminary plan.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.028. ADJUSTMENT OF BOUNDARIES. If the commission finds

that not all of the real property proposed to be included in the

district will be benefitted by the creation of the district, the

commission shall:

(1) make a finding on the lack of benefit;

(2) exclude from the district real property that will not be

benefitted by creation of the district; and

(3) redefine the proposed district's boundaries according to the

commission's changes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.029. TEMPORARY DIRECTORS. (a) If the commission

authorizes the creation of the district, it shall appoint five

persons from those suggested in the petition to serve as

temporary directors of the district. Not later than the 10th day

after the date of appointment, a temporary director shall take

the oath of office.

(b) Temporary directors serve until the directors are elected

and have qualified for office.

(c) If a person appointed by the commission fails to qualify or

if a vacancy occurs in the office of temporary director, the

commission shall appoint another person to serve as temporary

director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.030. CONFIRMATION ELECTION. (a) Not later than the

15th day after the date that all temporary directors have been

appointed and have qualified, the temporary directors shall meet

and order an election in the boundaries of the proposed district

to confirm the creation of the district and elect the directors

of the district.

(b) Section 41.001, Election Code, does not apply to an election

under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.031. NOTICE OF CONFIRMATION ELECTION. (a) Not later

than the 36th day before the date of the confirmation election,

the temporary directors shall publish notice of the election once

in one or more newspapers of general circulation in the proposed

district.

(b) The notice must state:

(1) the date and places for holding the election;

(2) the proposition to be voted on; and

(3) the candidates for director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.032. BALLOT FOR CONFIRMATION ELECTION. (a) To have a

person's name printed on the ballot as a candidate for director,

the person must file a petition with the temporary directors not

later than the 31st day before the date of the election.

(b) The ballot for the election shall be printed to provide for

voting for or against the creation of the district and include

the names of the persons who have filed as candidates for

director.

(c) A voter is entitled to vote for five candidates for

director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.033. CANVASS. The temporary directors shall canvass

the returns and declare the results.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.034. EFFECT OF CONFIRMATION ELECTION. (a) If the

majority of the votes received in the election favor creation of

the district, the temporary directors shall declare the district

created. If the majority of the votes received in the election

are against the creation of the district, the temporary directors

shall declare the district defeated. The temporary directors

shall enter the results in their minutes and file a copy of the

results with the commission.

(b) If the district is created, the temporary directors shall

declare the five candidates who received the highest number of

votes to be elected as the directors of the district. If two or

more candidates tie for the fifth highest number of votes, the

temporary directors shall select the fifth director by lot from

those tying for that position.

(c) The two directors elected with the fewest votes serve until

the qualification of two directors elected at the next regular

directors' election. The three other directors serve until the

qualification of three directors elected at the second regular

directors' election.

(d) If the district is defeated, another election may not be

held to create the district, except that owners of the real

property in the proposed district may petition the commission

again for creation of a district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.035. INCLUDING BOND PROPOSITION AT ELECTION. (a) At

the election, the temporary directors may include a separate

ballot proposition to approve the issuance by the district of

bonds payable from ad valorem taxes.

(b) If a bond proposition is to be included, the election notice

under Section 441.031 must state the bond proposition.

(c) The bond proposition shall be printed to provide for voting

for or against the issuance of bonds and the imposition of ad

valorem taxes for payment of the bonds.

(d) The temporary directors shall file a copy of the bond

election results in their records and with the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER D. GOVERNANCE

Sec. 441.071. BOARD OF DIRECTORS. Except as provided by Section

441.072, a district is governed by a board of directors composed

of five members elected as provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.072. BOARD OF DIRECTORS IN CERTAIN DISTRICTS. (a) The

governing body of a governmental entity to which a road facility

has been conveyed under Section 441.133 is the ex officio board

of directors of the district making the transfer if:

(1) all district road facilities are conveyed only to that

governmental entity;

(2) all construction, acquisition, and improvement of road

facilities provided for in the plan approved by the commission

have been completed;

(3) the board of directors consents to the transfer of powers

and duties to the governing body of the governmental entity;

(4) the governing body of the governmental entity consents to

assuming the administrative powers and duties of the district;

and

(5) the commission approves the transfer of the powers and

duties.

(b) On the effective date of the transfer of the powers and

duties, the board of directors from whom the transfer is made is

dissolved. On and after that date the administrative powers and

duties transferred are the powers and duties of the governing

body of the governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.073. ELECTION OF DIRECTORS. (a) In each year on a

uniform election date as provided by Chapter 41, Election Code,

an election shall be held in the district to elect the

appropriate number of directors.

(b) To have a person's name printed on the ballot at a

directors' election as a candidate for director, the person must

file a petition with the secretary of the district not later than

the 36th day before the date of the election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.074. TERM; TAKING OFFICE. (a) A director serves a

two-year term.

(b) A director takes office at the first regular meeting of the

board after the director's election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.075. COMPENSATION. A director is entitled to receive

for the director's services:

(1) not more than $25 a day for each meeting of the board that

the director attends; and

(2) reimbursement for expenses incurred while engaged in the

director's duties for the district as approved by the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.076. VACANCY. A vacancy on the board shall be filled

for the unexpired term by a person appointed by the remaining

directors.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.077. OFFICERS. (a) After each directors' election,

the board shall hold a regular meeting at a district office and

elect from the directors a presiding officer, assistant presiding

officer, secretary, and treasurer. A person elected under this

subsection serves until the first regular board meeting following

the next directors' election, and shall perform the duties and

may exercise the powers specifically provided by this chapter or

the board's orders.

(b) The presiding officer shall preside over board meetings. If

the presiding officer is absent, the assistant presiding officer

shall preside.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.078. GENERAL MANAGER. The board may employ a general

manager and delegate to the general manager full authority to

manage and operate the affairs of the district, subject only to

board orders. The general manager is the chief administrative

officer of the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.079. OTHER OFFICERS. The board may appoint or employ

an engineer, attorney, or accountant. A person appointed or

employed under this section is entitled to compensation provided

by the district's budget.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.080. PERSONNEL. (a) The board or the general manager,

if the district has a general manager, may:

(1) employ persons necessary to carry out the business and

operation of the district; and

(2) employ or contract with personnel necessary to carry out

this chapter.

(b) The board shall determine the employees' terms of employment

and compensation.

(c) A majority of the members of the board or the general

manager, if the district has a general manager, may dismiss an

employee.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.081. OFFICER'S, EMPLOYEE'S, OR CONTRACTOR'S BOND. (a)

The board shall require each officer, employee, or person under

contract to the district who collects, pays, or handles district

money to furnish a bond.

(b) The bond must be:

(1) payable to the district;

(2) for an amount sufficient to protect the district from

financial loss resulting from the person's actions; and

(3) conditioned on the faithful performance of the person's

duties and on accounting for all district money and other

property under the person's control.

(c) The district shall pay for the bond.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.082. MEETINGS. (a) The board shall hold regular

meetings on dates established by board order.

(b) The board may hold special meetings at the call of the

presiding officer or on request of three members of the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.083. VOTE REQUIRED FOR ACTION. An action of the board

requires the affirmative vote of a majority of the board members.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.084. RECORDS. The district shall keep a complete

written account of all of its proceedings and securely maintain

district records.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.085. OFFICE. The board shall maintain one or more

offices for conducting district business.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.086. SEAL. The board shall adopt a seal for the

district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER E. POWERS AND DUTIES

Sec. 441.101. GENERAL POWERS AND DUTIES. (a) A district may:

(1) acquire a road facility, acquire property for a road

facility, and construct or improve a road facility, inside or

outside district boundaries, as provided by this chapter;

(2) provide financing for a road facility or for construction,

acquisition, or improvement of a road facility from money

available to the district under this chapter;

(3) advise any person and consult, cooperate, or enter an

agreement with any person;

(4) apply for, accept, receive, and administer a gift, grant,

loan, or money available from any source;

(5) reimburse a private entity for money spent to construct a

road or improvement that has been or will be dedicated or

otherwise transferred to public use, or purchase a road or

improvement constructed by a private entity, regardless of

whether the construction occurs before or after the creation of

the district; and

(6) exercise other powers and duties to accomplish the purposes

for which the district was created.

(b) The board may contract with any person to carry out the

powers and duties under this chapter. The board shall execute the

contract in the name of the district.

(c) The district may assume a contract or other obligation of a

previous owner of a road facility or property acquired by the

district and perform the contract or obligation in the same

manner as any other purchaser or assignee, if the contract or

obligation was created as provided by the competitive bidding

requirements of Subchapter B, Chapter 271, Local Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.102. RULES. After notice and hearing, the board shall

adopt rules to carry out this chapter, including rules providing

procedures for giving notice and holding hearings before the

board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.103. SUIT AND JUDGMENT. (a) A district, through its

board and in the name of the district, may sue and be sued in a

state court. Process in a suit may be served on the presiding

officer of the board.

(b) A state court shall take judicial notice of the creation of

the board.

(c) A state court that renders a money judgment against a

district may require the board to pay the judgment from money in

the district depository that is not dedicated to the payment of

district indebtedness.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER F. ROAD FACILITIES

Sec. 441.111. CONSTRUCTION, ACQUISITION, OR IMPROVEMENT OF ROAD

FACILITY. (a) A district shall construct, acquire, and improve

a road facility included in the plan the commission approves so

that the road facility meets the requirements of the plan.

(b) A district may not construct, acquire, or improve a road

facility outside the district boundaries unless:

(1) the district presents to the commission sufficient evidence

that the construction, acquisition, or improvement is of benefit

to the district; and

(2) the commission and the governmental entity to which the road

facility is to be conveyed approve the construction, acquisition,

or improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.112. PROGRESS PAYMENTS. A contract of the district for

the construction or improvement of a road facility may include a

procedure for paying for the construction or improvement as work

progresses.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.113. JOINT PROJECT. (a) A district contract with a

state agency, a political subdivision, or a corporation created

by the commission under Chapter 431 may:

(1) provide for joint payment of the costs of a project; and

(2) require the state agency, political subdivision, or

corporation to design, construct, or improve, including

landscape, a project as provided by the contract.

(b) The district may issue bonds to pay all or part of the costs

of the project and any other payments required under the

contract.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.114. COMPETITIVE BIDS. A district may enter a

construction or improvement contract requiring an expenditure of

more than $15,000 only after competitive bidding as provided by

Subchapter B, Chapter 271, Local Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.115. CONTRACTOR BOND. A contractor shall execute a

bond for the amount of the contract price. The bond must be

payable to and approved by the board and conditioned on:

(1) faithful performance of the contract obligations; and

(2) payment to the district of damages resulting from any

default.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.116. CHANGES TO ROAD FACILITIES. (a) Before a road

facility is conveyed to a governmental entity, a district may

make a change to the road facility that is not included in the

plan approved by the commission if:

(1) the board determines that the change is necessary to:

(A) comply with the requirements of the governmental entity to

which the road facility is to be conveyed;

(B) comply with the requirements of each municipality in which

or extraterritorial jurisdiction of which the road facility is to

be located, if the road facility is to be conveyed to a county;

(C) provide an adequate and efficient road system for travelers

in the district; or

(D) adjust to circumstances or requirements that did not exist

when the commission approved the original plan; and

(2) the commission approves the change in writing.

(b) Before approving the change, the commission shall consult

the governmental entity to which the road facility is to be

conveyed regarding the proposed change.

(c) Before making a change, a district to which Section 441.017

applies must receive written permission from the governmental

entity assuming maintenance and any municipality in the

extraterritorial jurisdiction of which the district is located.

(d) The commission shall adopt rules of procedure for:

(1) filing a request for a change; and

(2) approving a change.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.117. MONITORING WORK. (a) The board controls the

construction, acquisition, and improvement of a district road

facility until it is conveyed under Section 441.133. The board

shall monitor a contractor's work as it is performed on the road

facility and shall immediately act as necessary to ensure

compliance with the contract. The board may use inspectors,

engineers, or other district personnel as monitors.

(b) The board shall adopt a procedure for periodic reporting by

the monitors.

(c) On completion of construction, acquisition, or improvement

of the road facility, the monitors shall submit a written report

to the board and the governmental entity to which the road

facility is to be conveyed. The report must show whether the road

facility complies with:

(1) the district's plan approved by the commission;

(2) the contract; and

(3) the requirements of the governmental entity to which the

road facility is to be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER G. CONVEYANCE OF ROAD FACILITY

Sec. 441.131. HEARING ON FINAL APPROVAL. (a) After receiving

the report under Section 441.117(c), the board shall give notice

of and hold a public hearing to determine whether a road

facility:

(1) is complete as required by the district's plans and the

contract; and

(2) should be conveyed to the governmental entity.

(b) At the hearing, the board may require the presentation of

additional information or testimony necessary to make a

determination.

(c) A representative of the governing body of the governmental

entity to which the road facility is to be conveyed may present

information and testimony that the governmental entity considers

necessary.

(d) If the road facility is to be conveyed to a county, a

representative of any municipality in which or extraterritorial

jurisdiction of which the road facility is located may present

information and testimony that the municipality considers

necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.132. DECISION ON APPROVAL. (a) If the board

determines at the end of a hearing under Section 441.131 that the

work on the road facility is complete and the road facility

should be conveyed to the governmental entity, the board shall

order the conveyance subject to the requirements of this chapter.

The board shall file with the commission a copy of the order and

the proposed conveyance instrument.

(b) If the board determines that the work on the road facility

has not been completed satisfactorily, the board shall act as

necessary to complete the road facility as required by the

district's plans and the contract. The district shall follow the

procedures and requirements of Sections 441.117 and 441.131

before conveying the road facility to the governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.133. CONVEYANCE REQUIRED. (a) A district shall convey

a road facility to the governmental entity designated in the

district's petition to the commission on completion and approval

by the board of the construction, acquisition, or improvement and

on approval by the commission.

(b) The district shall convey the road facility free and clear

of district indebtedness and may not convey a road that is

encumbered.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.134. COMMISSION CONVEYANCE ORDER. (a) Except as

provided by Subsections (b) and (c), the commission by order

shall authorize the conveyance of a road facility to a

governmental entity not later than the 15th day after the date

that it receives a board's order to convey.

(b) The commission by order shall delay the conveyance until the

district complies with the plans and written commission approvals

if:

(1) the commission considers the road facility not to be

completed according to the plans and written commission

approvals;

(2) the governmental entity to which the road facility is being

conveyed files a written protest; or

(3) a municipality in which or extraterritorial jurisdiction of

which the road facility is located, if the road facility is being

transferred to a county, files a written protest.

(c) An order under Subsection (b) must be issued not later than

the 15th day after the later of the date that the commission

receives the board's conveyance order or the date a protest is

filed.

(d) The commission is not required to hold a hearing before

making an order under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.135. TRANSFER OF OWNERSHIP AND RESPONSIBILITY. (a)

The governmental entity to which a road facility is conveyed is

the owner of and has jurisdiction and sole control over the road

facility.

(b) After the conveyance, the governmental entity is responsible

for all maintenance of the road facility and the district is not

responsible for the road facility or its maintenance.

(c) This section does not affect the governmental entity's

authority to alter, relocate, close, or discontinue maintenance

of the road facility as provided by law.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.136. EFFECT OF CONVEYANCE ON INDEBTEDNESS. Conveyance

of a road facility to a governmental entity under this subchapter

does not affect:

(1) the sole responsibility of the district to pay in full the

principal of and interest and any premium on any outstanding

district bonds or other indebtedness; or

(2) the district's responsibility to perform the obligations

provided by the orders or resolutions authorizing the bonds or

other indebtedness.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.137. PARTIAL CONVEYANCE. This chapter does not prevent

conveyance of part of the road facilities that a district

constructs in stages.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER H. FINANCIAL PROVISIONS

Sec. 441.151. FISCAL YEAR. (a) The board shall establish a

fiscal year for the district.

(b) The board may not change the fiscal year more than once in a

24-month period.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.152. BUDGET. (a) The board shall prepare and approve

an annual budget.

(b) The budget must contain a complete financial statement,

including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash credited to each district fund;

(3) the amount of money the district received from all sources

during the previous year;

(4) the amount of money available to the district from all

sources during the ensuing year;

(5) the balances expected at the end of the year in which the

budget is being prepared;

(6) the estimated revenue and balances available to cover the

proposed budget; and

(7) the estimated tax rate that will be required.

(c) The board may amend the budget after adoption.

(d) Money may not be spent for an expense not included in the

budget or an amendment to it unless the board by order declares

the expense to be necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.153. AUDIT. The board shall have an annual audit made

of the district's financial condition.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.154. DEPOSITORY. (a) The board shall name one or more

banks to serve as depository for district money.

(b) The district shall deposit money, other than money

transmitted to a bank of payment for district bonds, with the

depository bank as received. The money shall remain on deposit,

except that this section does not limit the board's power to

invest district money as provided by Section 441.156.

(c) The district may not deposit money in a bank in an amount

that exceeds the maximum amount secured by the Federal Deposit

Insurance Corporation unless the bank executes a bond or provides

other security in an amount sufficient to secure from loss

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.155. PAYMENT OF EXPENSES. (a) The district's

directors may pay:

(1) costs and expenses necessarily incurred in the district's

creation, organization, and operation;

(2) legal fees; and

(3) other incidental expenses.

(b) The district's directors may reimburse a person for money

advanced for a purpose under Subsection (a).

(c) A payment may be made from the proceeds of district bonds,

taxes, fees, or other district revenue.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.156. AUTHORIZED INVESTMENTS. (a) The board may invest

the district's money in:

(1) a direct obligation of or obligation guaranteed directly or

indirectly by the United States;

(2) an obligation, debenture, note, or other evidence of

indebtedness issued or guaranteed directly or indirectly by the

Association for Cooperatives, Federal Home Loan Association

System, Export-Import Association of the United States, Federal

National Mortgage Association, Federal Home Loan Mortgage

Corporation, Farmers' Home Administration, Tennessee Valley

Authority, Farm Credit System, or Government National Mortgage

Association, or by successor agencies;

(3) an obligation issued by a public agency or municipality and

fully secured as to the payment of principal and interest by a

pledge of annual contributions under an annual contributions

contract with the United States;

(4) a temporary note, preliminary loan note, or project note

issued by a public agency or municipality that is fully secured

as to the payment of principal and interest by a requisition or

payment agreement with the United States;

(5) a direct or general obligation of or obligation guaranteed

by this state if the payment of the principal and interest is a

general obligation of this state;

(6) a demand deposit or interest-bearing time deposit,

certificate of deposit, or other similar banking arrangement that

is made with a member of the Federal Deposit Insurance

Corporation, if the deposit, to the extent not insured to its

full amount, is fully secured by obligations of the types

specified by Subdivision (1), (2), (3), (4), (5), (9), or (10)

that have a fair market value at least equal at all times to the

amount of the deposit;

(7) a repurchase agreement with a bank that is a member of the

Federal Deposit Insurance Corporation or with a member of the

Public Securities Association, if the underlying securities are

of the type described by Subdivision (1) or (2) and each is fully

secured at all times by obligations of the same type that have a

fair market value, including accrued interest, at least equal to

the amount of the repurchase agreement including accrued

interest;

(8) an interest-bearing time deposit or repurchase agreement

with an agency or intermediary of the United States and that is

described by Subdivision (1) or (2);

(9) an obligation of this state, another state of the United

States, a nonprofit corporation, or an instrumentality of this

state, another state, or a nonprofit corporation, if at the time

of its purchase under the indenture, the obligation is rated in

one of the two highest letter-rating categories by a nationally

recognized securities credit rating agency; and

(10) an obligation issued by a political subdivision of this

state, another state of the United States, a nonprofit

corporation, or an instrumentality of this state, another state,

or a nonprofit corporation, that is rated in one of the two

highest letter-rating categories by a nationally recognized

securities credit rating agency.

(b) The board may place the district's money in a certificate of

deposit of a state or national bank or state or federal savings

and loan association in this state if the money is secured in the

manner required for security of the money of a county of this

state.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.157. INVESTMENT REPRESENTATIVE. The board by

resolution may provide that an authorized representative of the

district may invest the district's money and provide for money to

be withdrawn from the appropriate accounts of the district for

investment on terms the board considers advisable.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.158. BORROWING MONEY. The district may borrow money

for any purpose authorized under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER I. BONDS

Sec. 441.171. ISSUANCE OF BONDS. The board may issue and sell

bonds in the name of the district to construct, acquire, or

improve district road facilities as provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.172. TAX BOND ELECTION. (a) The district may not

issue bonds secured by taxes unless the issuance of the bonds is

approved at an election ordered by the board within the district

boundaries for that purpose.

(b) The district may issue bonds not secured by taxes without an

election.

(c) In addition to the requirements of the Election Code, the

order shall state:

(1) the nature of the election;

(2) the hours during which polls will be open;

(3) the location of polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of the election must be given as provided by Section

441.031 for a confirmation and directors' election.

(e) The ballot at the election must be printed to provide for

voting for or against the issuance of the bonds and the

imposition of ad valorem taxes for payment of the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.173. FORM AND PROVISIONS OF BONDS. (a) The district

may issue the bonds in various series or issues. The bonds may

mature serially or otherwise not more than 50 years after their

date. The bonds may be made redeemable before maturity at the

option of the district or may contain a mandatory redemption

provision.

(b) An order or resolution of the board authorizing the issuance

of the bonds, including refunding bonds, may:

(1) provide for the management of money;

(2) provide for the establishment and maintenance of an interest

and sinking fund, a reserve fund, and other funds;

(3) prohibit further issuance of bonds or other obligations

payable from pledged fees or reserve the right to issue

additional bonds secured by a pledge of and payable from the fees

on a parity with or subordinate to the pledge in support of the

bonds being issued; and

(4) contain other covenants and provisions as the board

determines.

(c) The board may adopt and have executed other proceedings or

instruments necessary and convenient in connection with the

issuance of bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.174. EXAMINATION. District bonds and the records

relating to their issuance shall be submitted to the attorney

general for examination.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.175. REFUNDING BONDS. The district may issue refunding

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.176. TAX EXEMPTION. District bonds, a transaction

relating to the bonds, and a profit made in the sale of the bonds

are exempt from state or local taxation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.177. BONDHOLDER MANDAMUS. A holder of a district bond

is entitled, in addition to any other right or remedy provided by

state law, to a writ of mandamus requiring the district and its

officials to perform any obligation that:

(1) is provided by the order or resolution authorizing issuance

of the bond; and

(2) the district fails to perform, including:

(A) defaulting in the payment of principal, interest, or

redemption price on the bond when due; and

(B) failing to make payment into any fund created in the order

or resolution.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.178. USE OF BOND PROCEEDS. The district may use bond

proceeds to:

(1) construct, acquire, or improve a road facility;

(2) pay an expense related to the road facility;

(3) pay, or establish a reasonable reserve to pay, not more than

three years' interest on the district's bonds; and

(4) pay an expense related to issuance and sale of bonds as

provided by the bond orders or resolutions.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.179. DISPOSITION OF PROCEEDS. The district shall

deposit the part of the purchase money of bonds that represents

capitalized interest in a special account in the district

depository and use that money to pay interest that comes due on

bonds. Money remaining in that account after payment of the costs

of issuance of the bonds shall be transferred to the credit of

the regular account of the district in the district depository.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.180. MANNER OF REPAYMENT. (a) The board may provide

for the payment of the principal of and interest on the bonds by

one or more of the following methods:

(1) imposition and collection of ad valorem taxes;

(2) adoption of a plan of taxation authorized by Sections

51.502-51.506, Water Code, as provided by those sections; or

(3) pledging all or part of the fees under Section 441.197.

(b) In this chapter, a reference to ad valorem taxes includes a

reference to any other tax the board imposes as provided by this

chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER J. TAXES

Sec. 441.191. IMPOSITION OF TAXES. The board may annually

impose taxes to pay the principal of and interest on district

bonds and the expense of assessing and collecting taxes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.192. MAINTENANCE TAX. (a) A district may impose a

maintenance tax to pay the district's operating expenses if, at

an election in the district ordered for that purpose, a majority

of the votes received favor the imposition of the tax.

(b) The amount of the tax may not exceed 25 cents on each $100

of assessed valuation of property in the district.

(c) The election shall be held as provided for a confirmation

and directors' election under Sections 441.030-441.035.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.193. TAX RATE. In setting a tax rate, the board shall

consider the district's income from sources other than taxation.

On determination of the amount of tax needed to be imposed, the

board shall adopt a tax rate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.194. APPOINTMENT OF TAX ASSESSOR-COLLECTOR. The board

may appoint a tax assessor-collector.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.195. IMPOSITION OF TAXES DURING FIRST YEAR. The board

may impose taxes for the entire year in which the district is

created.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.196. ALL PROPERTY TAXED. The board shall impose taxes

on all property in the district subject to taxation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.197. FEES. (a) A district may adopt and enforce fees

in addition to taxes to provide the district revenue to operate

the district and secure district bonds.

(b) A district may file a suit to recover an unpaid fee under

this section. The suit must be filed in a county in which the

district is located.

(c) Except as provided by Section 365.040, a fee may not be

imposed on or collected for travel on a road constructed,

acquired, or improved by the district.

(d) A road facility may not be encumbered by a district fee.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.198. BOND ANTICIPATION NOTES. (a) A district may

issue bond anticipation notes:

(1) for any purpose for which district bonds have been

previously voted; or

(2) to refund previously issued bond anticipation notes.

(b) A district may contract with purchasers of bond anticipation

notes that the proceeds from the sale of bonds that are issued to

refund the bond anticipation notes shall be used only to pay the

principal of or interest or redemption price on the bond

anticipation notes.

(c) A district may secure the repayment of the principal of and

interest and redemption premium on the bond anticipation notes

from any source available for that repayment, including a loan

agreement, revolving credit agreement, agreement establishing a

line of credit, letter of credit, reimbursement agreement,

insurance contract, commitment to purchase bond anticipation

notes, purchase or sale agreement, or another agreement

authorized and approved by the district in connection with the

authorization, issuance, security, or repayment of bond

anticipation notes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER K. ANNEXATION

Sec. 441.211. PETITION FOR ANNEXATION. (a) Any property owner

may file with the board a petition requesting that the real

property be annexed to the district. The property is not required

to be contiguous to the district.

(b) The petition must:

(1) describe the property by metes and bounds, or if there is a

recorded plat of the property, by lot and block number; and

(2) be executed as provided by law for the conveyance of real

property.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.212. BOARD DECISION. The board shall hear and consider

the petition and may annex the real property to the district if

the board considers the annexation to be to the district's

advantage.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.213. COMMISSION APPROVAL. A board order annexing real

property to the district is final only on written consent of the

commission after the commission consults with the governmental

entity to which the completed road facility will be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.214. RECORDING PETITION. The board shall record a

petition that is granted in the office of the county clerk of

each county in which annexed real property is located.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.215. ASSUMPTION OF DEBT SHARE. The board may require

each petitioner to:

(1) assume the petitioner's share of any outstanding district

bonds or voted but unissued bonds; and

(2) authorize the board to impose a tax on the petitioner's

property in each year that any of those bonds are outstanding.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.216. UNISSUED BONDS. The board may issue bonds that

have been voted but not issued at the time of an annexation,

regardless of the alteration of the district boundaries after the

bond's authorization, if each petitioner assumes the debt and

authorizes the tax under Section 441.215.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER L. DISSOLUTION

Sec. 441.231. PETITION FOR DISSOLUTION. (a) A district shall

submit to the commission a petition for dissolution of the

district after:

(1) the district has completed each construction, acquisition,

and improvement of a road facility provided in the plan approved

by the commission;

(2) the district has conveyed each road facility to a

governmental entity; and

(3) all bonds and other district indebtedness are paid in full.

(b) The district shall submit with the petition evidence that

the commission by rule or order requires to show that each

proposal in the plan has been completed and all bonds and other

district indebtedness have been paid in full.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.232. COMMISSION DISSOLUTION ORDER. (a) The commission

shall order the district dissolved if, after considering the

petition and the accompanying evidence, the commission finds

that:

(1) the work is completed according to the plan;

(2) each road facility has been conveyed; and

(3) all bonds and other indebtedness have been paid in full.

(b) If the commission finds that one or more of these conditions

has not been met, the commission shall adopt an order that will

ensure that that condition is met. On compliance with this order,

the commission shall order the district dissolved.

(c) On issuance of the commission's dissolution order, the

dissolved district ceases as a governmental entity, and the board

continues in existence only to transfer district money and

dispose of district assets.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.233. TRANSFER OF DISTRICT MONEY. (a) On dissolution

of the district, the board shall transfer the district's money to

the governmental entity to which the road facility was conveyed.

If road facilities were conveyed to more than one governmental

entity, the board shall distribute the money among those

governmental entities in proportion to the proceeds of all

indebtedness that the district incurred to construct, purchase,

or improve the road facilities conveyed to each respective

governmental entity.

(b) A governmental entity shall use the money to maintain the

road facility.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

State Codes and Statutes

Statutes > Texas > Transportation-code > Title-6-roadways > Chapter-441-road-utility-districts

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE J. ROAD UTILITY DISTRICTS

CHAPTER 441. ROAD UTILITY DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 441.001. DEFINITIONS. In this chapter:

(1) "Approval statement" means a statement that a governmental

entity issues to a petitioner under Section 441.015.

(2) "Bonds" includes notes, warrants, or other evidence of

indebtedness.

(3) "District" means a road utility district.

(4) "Governmental entity" means a municipality, a county, or the

department.

(5) "Road" means a graveled or paved road or turnpike that

serves or is intended to serve as an arterial or main feeder road

under standards the commission prescribes.

(6) "Road facility" means:

(A) a road constructed, acquired, or improved by a district; or

(B) property, an easement, or works constructed, acquired, or

improved by a district and necessary or appropriate for or in aid

of the improvement of a river, creek, or stream to prevent

overflow or the construction and maintenance of a pool, lake,

reservoir, dam, canal, or waterway for the purpose of drainage,

if the property, easement, or works is related to or in

furtherance of the construction, acquisition, or improvement of a

road.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.002. COMMISSION RULES. The commission may adopt rules

to implement this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 441.011. CREATION; PURPOSE. A district may be created

under Section 52, Article III, Texas Constitution, to construct,

acquire, improve, and provide financing for a road facility as

provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.012. TERRITORY. A district may contain all or part of

one or more counties.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.013. SUBMISSION OF PRELIMINARY PLAN. Before submitting

a petition to create a district under Section 441.018, a person

must submit a preliminary plan for each road facility the

district is to construct, acquire, or improve to each

governmental entity to which the road facility is to be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.014. REVIEW OF PRELIMINARY PLAN. (a) Not later than

the 120th day and not earlier than the 90th day after the date a

preliminary plan is submitted under Section 441.013, the

governmental entity shall determine whether:

(1) the plan meets the governmental entity's requirements; and

(2) to approve the plan and accept the conveyance of the road

facilities as provided by this chapter.

(b) The governmental entity shall consult with the person

submitting the plan and, with that person's agreement, make

changes necessary to make the plan comply with the governmental

entity's requirements. The governmental entity's requirements may

include specific designations of the characters of title to be

required on conveyance.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.015. GRANTING OR DENYING APPROVAL OF PRELIMINARY PLAN.

(a) The governing body of a governmental entity that approves a

preliminary plan and is willing to accept conveyance of the road

facilities on acquisition or completion of construction or

improvement shall:

(1) issue an order approving the plan; and

(2) give the person who submitted the plan a written approval

statement.

(b) An approval statement must state that the governmental

entity approves the preliminary plan and will accept conveyance

of the road facilities on acquisition or on completion of

construction or improvement.

(c) If the governmental entity does not approve the plan and is

not willing to accept a conveyance of the road facilities, the

governing body of the governmental entity shall issue an order

denying approval of the preliminary plan and refusing conveyance

of the road facilities.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.016. APPROVAL OF MULTIPLE GOVERNMENTAL ENTITIES. (a)

If road facilities constructed, acquired, or improved by a

district are to be conveyed to more than one governmental entity,

each governmental entity must:

(1) approve the plans for the road facilities to be conveyed to

it; and

(2) issue an approval statement for those road facilities.

(b) The procedures in this chapter relating to approval and

conveyance of a road facility to a governmental entity apply to

each governmental entity to which a road facility is to be

conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.017. APPROVAL OF PRELIMINARY PLAN FOR ROAD FACILITY IN

MUNICIPALITY OR MUNICIPALITY'S EXTRATERRITORIAL JURISDICTION.

(a) This section applies only to a district that:

(1) is located in whole or part in a municipality or the

extraterritorial jurisdiction of a municipality; and

(2) constructs, acquires, or improves a road facility that is to

be:

(A) located in a municipality or a municipality's

extraterritorial jurisdiction; and

(B) conveyed to the county under Section 441.133.

(b) A county may not approve a preliminary plan or issue an

approval statement for a road facility to which this section

applies unless the person who seeks the approval agrees in

writing to comply with the municipality's requirements for

construction, acquisition, or improvement of a road facility in

the municipality or the municipality's extraterritorial

jurisdiction. The county shall consult the municipality to ensure

that the preliminary plan complies with those requirements.

(c) Not later than the 55th day after the date the plan is filed

with the county, a municipality must complete its review of the

plan and issue to the county and the person who submitted the

plan a written statement approving the plan as complying with the

municipality's requirements. Except as provided by Subsection

(d):

(1) the county may not issue an approval statement under Section

441.015 until it receives the written statement from each

municipality; and

(2) the person petitioning for creation of the district must

submit the municipality's written statement in addition to other

required documents.

(d) If a municipality does not timely file its statement with

the county:

(1) the municipality waives its right to review and approve the

plan;

(2) the county may issue the approval statement without the

municipality's statement;

(3) the person who submitted the plan may petition for creation

of the district without the municipality's statement; and

(4) the county shall issue to the person who submitted the plan

a letter explaining that the municipality's statement was not

timely filed, and the person shall submit the letter with the

petition to the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.018. PETITION REQUIRED. To create a district a person

must file with the commission a petition requesting creation of

the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.019. CONTENTS OF PETITION. (a) The petition must

include:

(1) the district's name;

(2) the name of each county in which the district will be

located;

(3) a description of the district's boundaries;

(4) each petitioner's name;

(5) a statement that the petitioners hold title to all real

property in the district, as shown on county tax rolls;

(6) the names of suggested temporary directors;

(7) a brief description of any road facility that the district

is to construct, acquire, or improve;

(8) the amount of bonds estimated to be necessary to finance the

proposed construction, acquisition, or improvement;

(9) the current appraised value of all real property in the

district;

(10) the name of each governmental entity to which the district

will convey a road facility; and

(11) other information that the commission considers necessary.

(b) The petition must be signed by the persons holding title to

all real property in the district, as shown on county tax rolls.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.020. FILING OF PRELIMINARY PLAN AND APPROVAL STATEMENT.

(a) The petition must be accompanied by a copy of:

(1) the preliminary plan for any road facility the district is

to construct, acquire, and improve; and

(2) each required approval statement.

(b) The commission may not consider a petition or approve a

district unless each required approval statement for the district

is filed with the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.021. PETITION FEE. (a) The petition must be

accompanied by a reasonable fee in an amount determined by the

commission not to exceed $5,000. The commission may not refund

the fee or any part of the fee.

(b) The commission shall use the fee to pay costs of processing

the petition.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.022. HEARING REQUIRED. (a) As soon as practicable

after the petition, preliminary plan, and each required approval

statement is filed with the commission, the commission shall call

and hold a hearing on the petition and preliminary plan.

(b) The hearing may be in Travis County or in a county in which

all or part of the district is to be located.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.023. NOTICE OF HEARING. (a) In addition to the notice

requirements of Chapter 2001, Government Code, and not later than

the 10th day before the date of the hearing, the commission shall

give written notice of the hearing to:

(1) the commissioners court of each county in which all or part

of the district is to be located; and

(2) the governing body of each municipality in which or in the

extraterritorial jurisdiction of which the district is to be

located.

(b) Once a week for two consecutive weeks the commission shall

publish notice of the hearing in a newspaper of general

circulation in each county in which the district is to be

located. The first publication must be not later than 30 days

before the date of the hearing.

(c) Not later than 30 days before the date of the hearing, the

commission shall mail notice of the hearing by first class mail

to each owner of real property to be included in the district, as

shown on the county tax rolls.

(d) A county, municipality, or property owner receiving notice

under Subsection (a) or (c) may appear at the hearing through an

official representative or in person and may present testimony

and evidence relating to the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.024. GRANTING OR DENYING PETITION. As soon as

practicable after conclusion of the hearing, the commission shall

adopt an order:

(1) granting the creation of the district and approving the

plan; or

(2) denying the petition and disapproving the plan.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.025. GROUNDS REQUIRING GRANTING OF PETITION. The

commission shall grant the creation of the district and approve

the plan if it finds that:

(1) the creation of the district will benefit the real property

in the district;

(2) each proposed road facility is feasible, practicable, and

necessary and will benefit the district and the real property in

the district;

(3) each governmental entity to which a road facility is to be

conveyed has approved the preliminary plan for the road facility;

(4) the person seeking approval has agreed in writing to comply

with the requirements of each municipality in which or

extraterritorial jurisdiction of which a road facility is to be

located, if the road facility is to be conveyed to a county;

(5) each governmental entity to which a road facility is to be

conveyed has agreed, by issuing an approval statement, to accept

the conveyance; and

(6) the district will be financially able to issue and pay its

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.026. GROUNDS REQUIRING DENIAL OF PETITION. The

commission shall refuse to authorize creation of the district if

the commission:

(1) finds that creation of the district will benefit none of the

real property to be included in the district; or

(2) is unable to make any of the findings listed in Sections

441.025(2)-(6).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.027. OTHER CONSIDERATIONS IN GRANTING OR DENYING

PETITION. Before the commission adopts an order under Section

441.024, it may:

(1) consult with each governmental entity that has submitted an

approval statement regarding suggested changes in the plan;

(2) suggest or direct that the petitioners change the plan for a

district road facility, including deleting a road facility, so as

to make the plan acceptable to the commission; and

(3) consider the environmental effects of the proposals in the

preliminary plan.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.028. ADJUSTMENT OF BOUNDARIES. If the commission finds

that not all of the real property proposed to be included in the

district will be benefitted by the creation of the district, the

commission shall:

(1) make a finding on the lack of benefit;

(2) exclude from the district real property that will not be

benefitted by creation of the district; and

(3) redefine the proposed district's boundaries according to the

commission's changes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.029. TEMPORARY DIRECTORS. (a) If the commission

authorizes the creation of the district, it shall appoint five

persons from those suggested in the petition to serve as

temporary directors of the district. Not later than the 10th day

after the date of appointment, a temporary director shall take

the oath of office.

(b) Temporary directors serve until the directors are elected

and have qualified for office.

(c) If a person appointed by the commission fails to qualify or

if a vacancy occurs in the office of temporary director, the

commission shall appoint another person to serve as temporary

director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.030. CONFIRMATION ELECTION. (a) Not later than the

15th day after the date that all temporary directors have been

appointed and have qualified, the temporary directors shall meet

and order an election in the boundaries of the proposed district

to confirm the creation of the district and elect the directors

of the district.

(b) Section 41.001, Election Code, does not apply to an election

under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.031. NOTICE OF CONFIRMATION ELECTION. (a) Not later

than the 36th day before the date of the confirmation election,

the temporary directors shall publish notice of the election once

in one or more newspapers of general circulation in the proposed

district.

(b) The notice must state:

(1) the date and places for holding the election;

(2) the proposition to be voted on; and

(3) the candidates for director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.032. BALLOT FOR CONFIRMATION ELECTION. (a) To have a

person's name printed on the ballot as a candidate for director,

the person must file a petition with the temporary directors not

later than the 31st day before the date of the election.

(b) The ballot for the election shall be printed to provide for

voting for or against the creation of the district and include

the names of the persons who have filed as candidates for

director.

(c) A voter is entitled to vote for five candidates for

director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.033. CANVASS. The temporary directors shall canvass

the returns and declare the results.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.034. EFFECT OF CONFIRMATION ELECTION. (a) If the

majority of the votes received in the election favor creation of

the district, the temporary directors shall declare the district

created. If the majority of the votes received in the election

are against the creation of the district, the temporary directors

shall declare the district defeated. The temporary directors

shall enter the results in their minutes and file a copy of the

results with the commission.

(b) If the district is created, the temporary directors shall

declare the five candidates who received the highest number of

votes to be elected as the directors of the district. If two or

more candidates tie for the fifth highest number of votes, the

temporary directors shall select the fifth director by lot from

those tying for that position.

(c) The two directors elected with the fewest votes serve until

the qualification of two directors elected at the next regular

directors' election. The three other directors serve until the

qualification of three directors elected at the second regular

directors' election.

(d) If the district is defeated, another election may not be

held to create the district, except that owners of the real

property in the proposed district may petition the commission

again for creation of a district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.035. INCLUDING BOND PROPOSITION AT ELECTION. (a) At

the election, the temporary directors may include a separate

ballot proposition to approve the issuance by the district of

bonds payable from ad valorem taxes.

(b) If a bond proposition is to be included, the election notice

under Section 441.031 must state the bond proposition.

(c) The bond proposition shall be printed to provide for voting

for or against the issuance of bonds and the imposition of ad

valorem taxes for payment of the bonds.

(d) The temporary directors shall file a copy of the bond

election results in their records and with the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER D. GOVERNANCE

Sec. 441.071. BOARD OF DIRECTORS. Except as provided by Section

441.072, a district is governed by a board of directors composed

of five members elected as provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.072. BOARD OF DIRECTORS IN CERTAIN DISTRICTS. (a) The

governing body of a governmental entity to which a road facility

has been conveyed under Section 441.133 is the ex officio board

of directors of the district making the transfer if:

(1) all district road facilities are conveyed only to that

governmental entity;

(2) all construction, acquisition, and improvement of road

facilities provided for in the plan approved by the commission

have been completed;

(3) the board of directors consents to the transfer of powers

and duties to the governing body of the governmental entity;

(4) the governing body of the governmental entity consents to

assuming the administrative powers and duties of the district;

and

(5) the commission approves the transfer of the powers and

duties.

(b) On the effective date of the transfer of the powers and

duties, the board of directors from whom the transfer is made is

dissolved. On and after that date the administrative powers and

duties transferred are the powers and duties of the governing

body of the governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.073. ELECTION OF DIRECTORS. (a) In each year on a

uniform election date as provided by Chapter 41, Election Code,

an election shall be held in the district to elect the

appropriate number of directors.

(b) To have a person's name printed on the ballot at a

directors' election as a candidate for director, the person must

file a petition with the secretary of the district not later than

the 36th day before the date of the election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.074. TERM; TAKING OFFICE. (a) A director serves a

two-year term.

(b) A director takes office at the first regular meeting of the

board after the director's election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.075. COMPENSATION. A director is entitled to receive

for the director's services:

(1) not more than $25 a day for each meeting of the board that

the director attends; and

(2) reimbursement for expenses incurred while engaged in the

director's duties for the district as approved by the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.076. VACANCY. A vacancy on the board shall be filled

for the unexpired term by a person appointed by the remaining

directors.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.077. OFFICERS. (a) After each directors' election,

the board shall hold a regular meeting at a district office and

elect from the directors a presiding officer, assistant presiding

officer, secretary, and treasurer. A person elected under this

subsection serves until the first regular board meeting following

the next directors' election, and shall perform the duties and

may exercise the powers specifically provided by this chapter or

the board's orders.

(b) The presiding officer shall preside over board meetings. If

the presiding officer is absent, the assistant presiding officer

shall preside.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.078. GENERAL MANAGER. The board may employ a general

manager and delegate to the general manager full authority to

manage and operate the affairs of the district, subject only to

board orders. The general manager is the chief administrative

officer of the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.079. OTHER OFFICERS. The board may appoint or employ

an engineer, attorney, or accountant. A person appointed or

employed under this section is entitled to compensation provided

by the district's budget.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.080. PERSONNEL. (a) The board or the general manager,

if the district has a general manager, may:

(1) employ persons necessary to carry out the business and

operation of the district; and

(2) employ or contract with personnel necessary to carry out

this chapter.

(b) The board shall determine the employees' terms of employment

and compensation.

(c) A majority of the members of the board or the general

manager, if the district has a general manager, may dismiss an

employee.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.081. OFFICER'S, EMPLOYEE'S, OR CONTRACTOR'S BOND. (a)

The board shall require each officer, employee, or person under

contract to the district who collects, pays, or handles district

money to furnish a bond.

(b) The bond must be:

(1) payable to the district;

(2) for an amount sufficient to protect the district from

financial loss resulting from the person's actions; and

(3) conditioned on the faithful performance of the person's

duties and on accounting for all district money and other

property under the person's control.

(c) The district shall pay for the bond.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.082. MEETINGS. (a) The board shall hold regular

meetings on dates established by board order.

(b) The board may hold special meetings at the call of the

presiding officer or on request of three members of the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.083. VOTE REQUIRED FOR ACTION. An action of the board

requires the affirmative vote of a majority of the board members.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.084. RECORDS. The district shall keep a complete

written account of all of its proceedings and securely maintain

district records.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.085. OFFICE. The board shall maintain one or more

offices for conducting district business.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.086. SEAL. The board shall adopt a seal for the

district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER E. POWERS AND DUTIES

Sec. 441.101. GENERAL POWERS AND DUTIES. (a) A district may:

(1) acquire a road facility, acquire property for a road

facility, and construct or improve a road facility, inside or

outside district boundaries, as provided by this chapter;

(2) provide financing for a road facility or for construction,

acquisition, or improvement of a road facility from money

available to the district under this chapter;

(3) advise any person and consult, cooperate, or enter an

agreement with any person;

(4) apply for, accept, receive, and administer a gift, grant,

loan, or money available from any source;

(5) reimburse a private entity for money spent to construct a

road or improvement that has been or will be dedicated or

otherwise transferred to public use, or purchase a road or

improvement constructed by a private entity, regardless of

whether the construction occurs before or after the creation of

the district; and

(6) exercise other powers and duties to accomplish the purposes

for which the district was created.

(b) The board may contract with any person to carry out the

powers and duties under this chapter. The board shall execute the

contract in the name of the district.

(c) The district may assume a contract or other obligation of a

previous owner of a road facility or property acquired by the

district and perform the contract or obligation in the same

manner as any other purchaser or assignee, if the contract or

obligation was created as provided by the competitive bidding

requirements of Subchapter B, Chapter 271, Local Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.102. RULES. After notice and hearing, the board shall

adopt rules to carry out this chapter, including rules providing

procedures for giving notice and holding hearings before the

board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.103. SUIT AND JUDGMENT. (a) A district, through its

board and in the name of the district, may sue and be sued in a

state court. Process in a suit may be served on the presiding

officer of the board.

(b) A state court shall take judicial notice of the creation of

the board.

(c) A state court that renders a money judgment against a

district may require the board to pay the judgment from money in

the district depository that is not dedicated to the payment of

district indebtedness.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER F. ROAD FACILITIES

Sec. 441.111. CONSTRUCTION, ACQUISITION, OR IMPROVEMENT OF ROAD

FACILITY. (a) A district shall construct, acquire, and improve

a road facility included in the plan the commission approves so

that the road facility meets the requirements of the plan.

(b) A district may not construct, acquire, or improve a road

facility outside the district boundaries unless:

(1) the district presents to the commission sufficient evidence

that the construction, acquisition, or improvement is of benefit

to the district; and

(2) the commission and the governmental entity to which the road

facility is to be conveyed approve the construction, acquisition,

or improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.112. PROGRESS PAYMENTS. A contract of the district for

the construction or improvement of a road facility may include a

procedure for paying for the construction or improvement as work

progresses.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.113. JOINT PROJECT. (a) A district contract with a

state agency, a political subdivision, or a corporation created

by the commission under Chapter 431 may:

(1) provide for joint payment of the costs of a project; and

(2) require the state agency, political subdivision, or

corporation to design, construct, or improve, including

landscape, a project as provided by the contract.

(b) The district may issue bonds to pay all or part of the costs

of the project and any other payments required under the

contract.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.114. COMPETITIVE BIDS. A district may enter a

construction or improvement contract requiring an expenditure of

more than $15,000 only after competitive bidding as provided by

Subchapter B, Chapter 271, Local Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.115. CONTRACTOR BOND. A contractor shall execute a

bond for the amount of the contract price. The bond must be

payable to and approved by the board and conditioned on:

(1) faithful performance of the contract obligations; and

(2) payment to the district of damages resulting from any

default.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.116. CHANGES TO ROAD FACILITIES. (a) Before a road

facility is conveyed to a governmental entity, a district may

make a change to the road facility that is not included in the

plan approved by the commission if:

(1) the board determines that the change is necessary to:

(A) comply with the requirements of the governmental entity to

which the road facility is to be conveyed;

(B) comply with the requirements of each municipality in which

or extraterritorial jurisdiction of which the road facility is to

be located, if the road facility is to be conveyed to a county;

(C) provide an adequate and efficient road system for travelers

in the district; or

(D) adjust to circumstances or requirements that did not exist

when the commission approved the original plan; and

(2) the commission approves the change in writing.

(b) Before approving the change, the commission shall consult

the governmental entity to which the road facility is to be

conveyed regarding the proposed change.

(c) Before making a change, a district to which Section 441.017

applies must receive written permission from the governmental

entity assuming maintenance and any municipality in the

extraterritorial jurisdiction of which the district is located.

(d) The commission shall adopt rules of procedure for:

(1) filing a request for a change; and

(2) approving a change.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.117. MONITORING WORK. (a) The board controls the

construction, acquisition, and improvement of a district road

facility until it is conveyed under Section 441.133. The board

shall monitor a contractor's work as it is performed on the road

facility and shall immediately act as necessary to ensure

compliance with the contract. The board may use inspectors,

engineers, or other district personnel as monitors.

(b) The board shall adopt a procedure for periodic reporting by

the monitors.

(c) On completion of construction, acquisition, or improvement

of the road facility, the monitors shall submit a written report

to the board and the governmental entity to which the road

facility is to be conveyed. The report must show whether the road

facility complies with:

(1) the district's plan approved by the commission;

(2) the contract; and

(3) the requirements of the governmental entity to which the

road facility is to be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER G. CONVEYANCE OF ROAD FACILITY

Sec. 441.131. HEARING ON FINAL APPROVAL. (a) After receiving

the report under Section 441.117(c), the board shall give notice

of and hold a public hearing to determine whether a road

facility:

(1) is complete as required by the district's plans and the

contract; and

(2) should be conveyed to the governmental entity.

(b) At the hearing, the board may require the presentation of

additional information or testimony necessary to make a

determination.

(c) A representative of the governing body of the governmental

entity to which the road facility is to be conveyed may present

information and testimony that the governmental entity considers

necessary.

(d) If the road facility is to be conveyed to a county, a

representative of any municipality in which or extraterritorial

jurisdiction of which the road facility is located may present

information and testimony that the municipality considers

necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.132. DECISION ON APPROVAL. (a) If the board

determines at the end of a hearing under Section 441.131 that the

work on the road facility is complete and the road facility

should be conveyed to the governmental entity, the board shall

order the conveyance subject to the requirements of this chapter.

The board shall file with the commission a copy of the order and

the proposed conveyance instrument.

(b) If the board determines that the work on the road facility

has not been completed satisfactorily, the board shall act as

necessary to complete the road facility as required by the

district's plans and the contract. The district shall follow the

procedures and requirements of Sections 441.117 and 441.131

before conveying the road facility to the governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.133. CONVEYANCE REQUIRED. (a) A district shall convey

a road facility to the governmental entity designated in the

district's petition to the commission on completion and approval

by the board of the construction, acquisition, or improvement and

on approval by the commission.

(b) The district shall convey the road facility free and clear

of district indebtedness and may not convey a road that is

encumbered.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.134. COMMISSION CONVEYANCE ORDER. (a) Except as

provided by Subsections (b) and (c), the commission by order

shall authorize the conveyance of a road facility to a

governmental entity not later than the 15th day after the date

that it receives a board's order to convey.

(b) The commission by order shall delay the conveyance until the

district complies with the plans and written commission approvals

if:

(1) the commission considers the road facility not to be

completed according to the plans and written commission

approvals;

(2) the governmental entity to which the road facility is being

conveyed files a written protest; or

(3) a municipality in which or extraterritorial jurisdiction of

which the road facility is located, if the road facility is being

transferred to a county, files a written protest.

(c) An order under Subsection (b) must be issued not later than

the 15th day after the later of the date that the commission

receives the board's conveyance order or the date a protest is

filed.

(d) The commission is not required to hold a hearing before

making an order under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.135. TRANSFER OF OWNERSHIP AND RESPONSIBILITY. (a)

The governmental entity to which a road facility is conveyed is

the owner of and has jurisdiction and sole control over the road

facility.

(b) After the conveyance, the governmental entity is responsible

for all maintenance of the road facility and the district is not

responsible for the road facility or its maintenance.

(c) This section does not affect the governmental entity's

authority to alter, relocate, close, or discontinue maintenance

of the road facility as provided by law.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.136. EFFECT OF CONVEYANCE ON INDEBTEDNESS. Conveyance

of a road facility to a governmental entity under this subchapter

does not affect:

(1) the sole responsibility of the district to pay in full the

principal of and interest and any premium on any outstanding

district bonds or other indebtedness; or

(2) the district's responsibility to perform the obligations

provided by the orders or resolutions authorizing the bonds or

other indebtedness.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.137. PARTIAL CONVEYANCE. This chapter does not prevent

conveyance of part of the road facilities that a district

constructs in stages.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER H. FINANCIAL PROVISIONS

Sec. 441.151. FISCAL YEAR. (a) The board shall establish a

fiscal year for the district.

(b) The board may not change the fiscal year more than once in a

24-month period.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.152. BUDGET. (a) The board shall prepare and approve

an annual budget.

(b) The budget must contain a complete financial statement,

including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash credited to each district fund;

(3) the amount of money the district received from all sources

during the previous year;

(4) the amount of money available to the district from all

sources during the ensuing year;

(5) the balances expected at the end of the year in which the

budget is being prepared;

(6) the estimated revenue and balances available to cover the

proposed budget; and

(7) the estimated tax rate that will be required.

(c) The board may amend the budget after adoption.

(d) Money may not be spent for an expense not included in the

budget or an amendment to it unless the board by order declares

the expense to be necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.153. AUDIT. The board shall have an annual audit made

of the district's financial condition.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.154. DEPOSITORY. (a) The board shall name one or more

banks to serve as depository for district money.

(b) The district shall deposit money, other than money

transmitted to a bank of payment for district bonds, with the

depository bank as received. The money shall remain on deposit,

except that this section does not limit the board's power to

invest district money as provided by Section 441.156.

(c) The district may not deposit money in a bank in an amount

that exceeds the maximum amount secured by the Federal Deposit

Insurance Corporation unless the bank executes a bond or provides

other security in an amount sufficient to secure from loss

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.155. PAYMENT OF EXPENSES. (a) The district's

directors may pay:

(1) costs and expenses necessarily incurred in the district's

creation, organization, and operation;

(2) legal fees; and

(3) other incidental expenses.

(b) The district's directors may reimburse a person for money

advanced for a purpose under Subsection (a).

(c) A payment may be made from the proceeds of district bonds,

taxes, fees, or other district revenue.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.156. AUTHORIZED INVESTMENTS. (a) The board may invest

the district's money in:

(1) a direct obligation of or obligation guaranteed directly or

indirectly by the United States;

(2) an obligation, debenture, note, or other evidence of

indebtedness issued or guaranteed directly or indirectly by the

Association for Cooperatives, Federal Home Loan Association

System, Export-Import Association of the United States, Federal

National Mortgage Association, Federal Home Loan Mortgage

Corporation, Farmers' Home Administration, Tennessee Valley

Authority, Farm Credit System, or Government National Mortgage

Association, or by successor agencies;

(3) an obligation issued by a public agency or municipality and

fully secured as to the payment of principal and interest by a

pledge of annual contributions under an annual contributions

contract with the United States;

(4) a temporary note, preliminary loan note, or project note

issued by a public agency or municipality that is fully secured

as to the payment of principal and interest by a requisition or

payment agreement with the United States;

(5) a direct or general obligation of or obligation guaranteed

by this state if the payment of the principal and interest is a

general obligation of this state;

(6) a demand deposit or interest-bearing time deposit,

certificate of deposit, or other similar banking arrangement that

is made with a member of the Federal Deposit Insurance

Corporation, if the deposit, to the extent not insured to its

full amount, is fully secured by obligations of the types

specified by Subdivision (1), (2), (3), (4), (5), (9), or (10)

that have a fair market value at least equal at all times to the

amount of the deposit;

(7) a repurchase agreement with a bank that is a member of the

Federal Deposit Insurance Corporation or with a member of the

Public Securities Association, if the underlying securities are

of the type described by Subdivision (1) or (2) and each is fully

secured at all times by obligations of the same type that have a

fair market value, including accrued interest, at least equal to

the amount of the repurchase agreement including accrued

interest;

(8) an interest-bearing time deposit or repurchase agreement

with an agency or intermediary of the United States and that is

described by Subdivision (1) or (2);

(9) an obligation of this state, another state of the United

States, a nonprofit corporation, or an instrumentality of this

state, another state, or a nonprofit corporation, if at the time

of its purchase under the indenture, the obligation is rated in

one of the two highest letter-rating categories by a nationally

recognized securities credit rating agency; and

(10) an obligation issued by a political subdivision of this

state, another state of the United States, a nonprofit

corporation, or an instrumentality of this state, another state,

or a nonprofit corporation, that is rated in one of the two

highest letter-rating categories by a nationally recognized

securities credit rating agency.

(b) The board may place the district's money in a certificate of

deposit of a state or national bank or state or federal savings

and loan association in this state if the money is secured in the

manner required for security of the money of a county of this

state.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.157. INVESTMENT REPRESENTATIVE. The board by

resolution may provide that an authorized representative of the

district may invest the district's money and provide for money to

be withdrawn from the appropriate accounts of the district for

investment on terms the board considers advisable.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.158. BORROWING MONEY. The district may borrow money

for any purpose authorized under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER I. BONDS

Sec. 441.171. ISSUANCE OF BONDS. The board may issue and sell

bonds in the name of the district to construct, acquire, or

improve district road facilities as provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.172. TAX BOND ELECTION. (a) The district may not

issue bonds secured by taxes unless the issuance of the bonds is

approved at an election ordered by the board within the district

boundaries for that purpose.

(b) The district may issue bonds not secured by taxes without an

election.

(c) In addition to the requirements of the Election Code, the

order shall state:

(1) the nature of the election;

(2) the hours during which polls will be open;

(3) the location of polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of the election must be given as provided by Section

441.031 for a confirmation and directors' election.

(e) The ballot at the election must be printed to provide for

voting for or against the issuance of the bonds and the

imposition of ad valorem taxes for payment of the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.173. FORM AND PROVISIONS OF BONDS. (a) The district

may issue the bonds in various series or issues. The bonds may

mature serially or otherwise not more than 50 years after their

date. The bonds may be made redeemable before maturity at the

option of the district or may contain a mandatory redemption

provision.

(b) An order or resolution of the board authorizing the issuance

of the bonds, including refunding bonds, may:

(1) provide for the management of money;

(2) provide for the establishment and maintenance of an interest

and sinking fund, a reserve fund, and other funds;

(3) prohibit further issuance of bonds or other obligations

payable from pledged fees or reserve the right to issue

additional bonds secured by a pledge of and payable from the fees

on a parity with or subordinate to the pledge in support of the

bonds being issued; and

(4) contain other covenants and provisions as the board

determines.

(c) The board may adopt and have executed other proceedings or

instruments necessary and convenient in connection with the

issuance of bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.174. EXAMINATION. District bonds and the records

relating to their issuance shall be submitted to the attorney

general for examination.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.175. REFUNDING BONDS. The district may issue refunding

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.176. TAX EXEMPTION. District bonds, a transaction

relating to the bonds, and a profit made in the sale of the bonds

are exempt from state or local taxation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.177. BONDHOLDER MANDAMUS. A holder of a district bond

is entitled, in addition to any other right or remedy provided by

state law, to a writ of mandamus requiring the district and its

officials to perform any obligation that:

(1) is provided by the order or resolution authorizing issuance

of the bond; and

(2) the district fails to perform, including:

(A) defaulting in the payment of principal, interest, or

redemption price on the bond when due; and

(B) failing to make payment into any fund created in the order

or resolution.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.178. USE OF BOND PROCEEDS. The district may use bond

proceeds to:

(1) construct, acquire, or improve a road facility;

(2) pay an expense related to the road facility;

(3) pay, or establish a reasonable reserve to pay, not more than

three years' interest on the district's bonds; and

(4) pay an expense related to issuance and sale of bonds as

provided by the bond orders or resolutions.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.179. DISPOSITION OF PROCEEDS. The district shall

deposit the part of the purchase money of bonds that represents

capitalized interest in a special account in the district

depository and use that money to pay interest that comes due on

bonds. Money remaining in that account after payment of the costs

of issuance of the bonds shall be transferred to the credit of

the regular account of the district in the district depository.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.180. MANNER OF REPAYMENT. (a) The board may provide

for the payment of the principal of and interest on the bonds by

one or more of the following methods:

(1) imposition and collection of ad valorem taxes;

(2) adoption of a plan of taxation authorized by Sections

51.502-51.506, Water Code, as provided by those sections; or

(3) pledging all or part of the fees under Section 441.197.

(b) In this chapter, a reference to ad valorem taxes includes a

reference to any other tax the board imposes as provided by this

chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER J. TAXES

Sec. 441.191. IMPOSITION OF TAXES. The board may annually

impose taxes to pay the principal of and interest on district

bonds and the expense of assessing and collecting taxes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.192. MAINTENANCE TAX. (a) A district may impose a

maintenance tax to pay the district's operating expenses if, at

an election in the district ordered for that purpose, a majority

of the votes received favor the imposition of the tax.

(b) The amount of the tax may not exceed 25 cents on each $100

of assessed valuation of property in the district.

(c) The election shall be held as provided for a confirmation

and directors' election under Sections 441.030-441.035.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.193. TAX RATE. In setting a tax rate, the board shall

consider the district's income from sources other than taxation.

On determination of the amount of tax needed to be imposed, the

board shall adopt a tax rate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.194. APPOINTMENT OF TAX ASSESSOR-COLLECTOR. The board

may appoint a tax assessor-collector.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.195. IMPOSITION OF TAXES DURING FIRST YEAR. The board

may impose taxes for the entire year in which the district is

created.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.196. ALL PROPERTY TAXED. The board shall impose taxes

on all property in the district subject to taxation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.197. FEES. (a) A district may adopt and enforce fees

in addition to taxes to provide the district revenue to operate

the district and secure district bonds.

(b) A district may file a suit to recover an unpaid fee under

this section. The suit must be filed in a county in which the

district is located.

(c) Except as provided by Section 365.040, a fee may not be

imposed on or collected for travel on a road constructed,

acquired, or improved by the district.

(d) A road facility may not be encumbered by a district fee.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.198. BOND ANTICIPATION NOTES. (a) A district may

issue bond anticipation notes:

(1) for any purpose for which district bonds have been

previously voted; or

(2) to refund previously issued bond anticipation notes.

(b) A district may contract with purchasers of bond anticipation

notes that the proceeds from the sale of bonds that are issued to

refund the bond anticipation notes shall be used only to pay the

principal of or interest or redemption price on the bond

anticipation notes.

(c) A district may secure the repayment of the principal of and

interest and redemption premium on the bond anticipation notes

from any source available for that repayment, including a loan

agreement, revolving credit agreement, agreement establishing a

line of credit, letter of credit, reimbursement agreement,

insurance contract, commitment to purchase bond anticipation

notes, purchase or sale agreement, or another agreement

authorized and approved by the district in connection with the

authorization, issuance, security, or repayment of bond

anticipation notes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER K. ANNEXATION

Sec. 441.211. PETITION FOR ANNEXATION. (a) Any property owner

may file with the board a petition requesting that the real

property be annexed to the district. The property is not required

to be contiguous to the district.

(b) The petition must:

(1) describe the property by metes and bounds, or if there is a

recorded plat of the property, by lot and block number; and

(2) be executed as provided by law for the conveyance of real

property.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.212. BOARD DECISION. The board shall hear and consider

the petition and may annex the real property to the district if

the board considers the annexation to be to the district's

advantage.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.213. COMMISSION APPROVAL. A board order annexing real

property to the district is final only on written consent of the

commission after the commission consults with the governmental

entity to which the completed road facility will be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.214. RECORDING PETITION. The board shall record a

petition that is granted in the office of the county clerk of

each county in which annexed real property is located.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.215. ASSUMPTION OF DEBT SHARE. The board may require

each petitioner to:

(1) assume the petitioner's share of any outstanding district

bonds or voted but unissued bonds; and

(2) authorize the board to impose a tax on the petitioner's

property in each year that any of those bonds are outstanding.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.216. UNISSUED BONDS. The board may issue bonds that

have been voted but not issued at the time of an annexation,

regardless of the alteration of the district boundaries after the

bond's authorization, if each petitioner assumes the debt and

authorizes the tax under Section 441.215.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER L. DISSOLUTION

Sec. 441.231. PETITION FOR DISSOLUTION. (a) A district shall

submit to the commission a petition for dissolution of the

district after:

(1) the district has completed each construction, acquisition,

and improvement of a road facility provided in the plan approved

by the commission;

(2) the district has conveyed each road facility to a

governmental entity; and

(3) all bonds and other district indebtedness are paid in full.

(b) The district shall submit with the petition evidence that

the commission by rule or order requires to show that each

proposal in the plan has been completed and all bonds and other

district indebtedness have been paid in full.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.232. COMMISSION DISSOLUTION ORDER. (a) The commission

shall order the district dissolved if, after considering the

petition and the accompanying evidence, the commission finds

that:

(1) the work is completed according to the plan;

(2) each road facility has been conveyed; and

(3) all bonds and other indebtedness have been paid in full.

(b) If the commission finds that one or more of these conditions

has not been met, the commission shall adopt an order that will

ensure that that condition is met. On compliance with this order,

the commission shall order the district dissolved.

(c) On issuance of the commission's dissolution order, the

dissolved district ceases as a governmental entity, and the board

continues in existence only to transfer district money and

dispose of district assets.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.233. TRANSFER OF DISTRICT MONEY. (a) On dissolution

of the district, the board shall transfer the district's money to

the governmental entity to which the road facility was conveyed.

If road facilities were conveyed to more than one governmental

entity, the board shall distribute the money among those

governmental entities in proportion to the proceeds of all

indebtedness that the district incurred to construct, purchase,

or improve the road facilities conveyed to each respective

governmental entity.

(b) A governmental entity shall use the money to maintain the

road facility.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Transportation-code > Title-6-roadways > Chapter-441-road-utility-districts

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE J. ROAD UTILITY DISTRICTS

CHAPTER 441. ROAD UTILITY DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 441.001. DEFINITIONS. In this chapter:

(1) "Approval statement" means a statement that a governmental

entity issues to a petitioner under Section 441.015.

(2) "Bonds" includes notes, warrants, or other evidence of

indebtedness.

(3) "District" means a road utility district.

(4) "Governmental entity" means a municipality, a county, or the

department.

(5) "Road" means a graveled or paved road or turnpike that

serves or is intended to serve as an arterial or main feeder road

under standards the commission prescribes.

(6) "Road facility" means:

(A) a road constructed, acquired, or improved by a district; or

(B) property, an easement, or works constructed, acquired, or

improved by a district and necessary or appropriate for or in aid

of the improvement of a river, creek, or stream to prevent

overflow or the construction and maintenance of a pool, lake,

reservoir, dam, canal, or waterway for the purpose of drainage,

if the property, easement, or works is related to or in

furtherance of the construction, acquisition, or improvement of a

road.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.002. COMMISSION RULES. The commission may adopt rules

to implement this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER B. CREATION OF DISTRICT

Sec. 441.011. CREATION; PURPOSE. A district may be created

under Section 52, Article III, Texas Constitution, to construct,

acquire, improve, and provide financing for a road facility as

provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.012. TERRITORY. A district may contain all or part of

one or more counties.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.013. SUBMISSION OF PRELIMINARY PLAN. Before submitting

a petition to create a district under Section 441.018, a person

must submit a preliminary plan for each road facility the

district is to construct, acquire, or improve to each

governmental entity to which the road facility is to be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.014. REVIEW OF PRELIMINARY PLAN. (a) Not later than

the 120th day and not earlier than the 90th day after the date a

preliminary plan is submitted under Section 441.013, the

governmental entity shall determine whether:

(1) the plan meets the governmental entity's requirements; and

(2) to approve the plan and accept the conveyance of the road

facilities as provided by this chapter.

(b) The governmental entity shall consult with the person

submitting the plan and, with that person's agreement, make

changes necessary to make the plan comply with the governmental

entity's requirements. The governmental entity's requirements may

include specific designations of the characters of title to be

required on conveyance.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.015. GRANTING OR DENYING APPROVAL OF PRELIMINARY PLAN.

(a) The governing body of a governmental entity that approves a

preliminary plan and is willing to accept conveyance of the road

facilities on acquisition or completion of construction or

improvement shall:

(1) issue an order approving the plan; and

(2) give the person who submitted the plan a written approval

statement.

(b) An approval statement must state that the governmental

entity approves the preliminary plan and will accept conveyance

of the road facilities on acquisition or on completion of

construction or improvement.

(c) If the governmental entity does not approve the plan and is

not willing to accept a conveyance of the road facilities, the

governing body of the governmental entity shall issue an order

denying approval of the preliminary plan and refusing conveyance

of the road facilities.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.016. APPROVAL OF MULTIPLE GOVERNMENTAL ENTITIES. (a)

If road facilities constructed, acquired, or improved by a

district are to be conveyed to more than one governmental entity,

each governmental entity must:

(1) approve the plans for the road facilities to be conveyed to

it; and

(2) issue an approval statement for those road facilities.

(b) The procedures in this chapter relating to approval and

conveyance of a road facility to a governmental entity apply to

each governmental entity to which a road facility is to be

conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.017. APPROVAL OF PRELIMINARY PLAN FOR ROAD FACILITY IN

MUNICIPALITY OR MUNICIPALITY'S EXTRATERRITORIAL JURISDICTION.

(a) This section applies only to a district that:

(1) is located in whole or part in a municipality or the

extraterritorial jurisdiction of a municipality; and

(2) constructs, acquires, or improves a road facility that is to

be:

(A) located in a municipality or a municipality's

extraterritorial jurisdiction; and

(B) conveyed to the county under Section 441.133.

(b) A county may not approve a preliminary plan or issue an

approval statement for a road facility to which this section

applies unless the person who seeks the approval agrees in

writing to comply with the municipality's requirements for

construction, acquisition, or improvement of a road facility in

the municipality or the municipality's extraterritorial

jurisdiction. The county shall consult the municipality to ensure

that the preliminary plan complies with those requirements.

(c) Not later than the 55th day after the date the plan is filed

with the county, a municipality must complete its review of the

plan and issue to the county and the person who submitted the

plan a written statement approving the plan as complying with the

municipality's requirements. Except as provided by Subsection

(d):

(1) the county may not issue an approval statement under Section

441.015 until it receives the written statement from each

municipality; and

(2) the person petitioning for creation of the district must

submit the municipality's written statement in addition to other

required documents.

(d) If a municipality does not timely file its statement with

the county:

(1) the municipality waives its right to review and approve the

plan;

(2) the county may issue the approval statement without the

municipality's statement;

(3) the person who submitted the plan may petition for creation

of the district without the municipality's statement; and

(4) the county shall issue to the person who submitted the plan

a letter explaining that the municipality's statement was not

timely filed, and the person shall submit the letter with the

petition to the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.018. PETITION REQUIRED. To create a district a person

must file with the commission a petition requesting creation of

the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.019. CONTENTS OF PETITION. (a) The petition must

include:

(1) the district's name;

(2) the name of each county in which the district will be

located;

(3) a description of the district's boundaries;

(4) each petitioner's name;

(5) a statement that the petitioners hold title to all real

property in the district, as shown on county tax rolls;

(6) the names of suggested temporary directors;

(7) a brief description of any road facility that the district

is to construct, acquire, or improve;

(8) the amount of bonds estimated to be necessary to finance the

proposed construction, acquisition, or improvement;

(9) the current appraised value of all real property in the

district;

(10) the name of each governmental entity to which the district

will convey a road facility; and

(11) other information that the commission considers necessary.

(b) The petition must be signed by the persons holding title to

all real property in the district, as shown on county tax rolls.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.020. FILING OF PRELIMINARY PLAN AND APPROVAL STATEMENT.

(a) The petition must be accompanied by a copy of:

(1) the preliminary plan for any road facility the district is

to construct, acquire, and improve; and

(2) each required approval statement.

(b) The commission may not consider a petition or approve a

district unless each required approval statement for the district

is filed with the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.021. PETITION FEE. (a) The petition must be

accompanied by a reasonable fee in an amount determined by the

commission not to exceed $5,000. The commission may not refund

the fee or any part of the fee.

(b) The commission shall use the fee to pay costs of processing

the petition.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.022. HEARING REQUIRED. (a) As soon as practicable

after the petition, preliminary plan, and each required approval

statement is filed with the commission, the commission shall call

and hold a hearing on the petition and preliminary plan.

(b) The hearing may be in Travis County or in a county in which

all or part of the district is to be located.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.023. NOTICE OF HEARING. (a) In addition to the notice

requirements of Chapter 2001, Government Code, and not later than

the 10th day before the date of the hearing, the commission shall

give written notice of the hearing to:

(1) the commissioners court of each county in which all or part

of the district is to be located; and

(2) the governing body of each municipality in which or in the

extraterritorial jurisdiction of which the district is to be

located.

(b) Once a week for two consecutive weeks the commission shall

publish notice of the hearing in a newspaper of general

circulation in each county in which the district is to be

located. The first publication must be not later than 30 days

before the date of the hearing.

(c) Not later than 30 days before the date of the hearing, the

commission shall mail notice of the hearing by first class mail

to each owner of real property to be included in the district, as

shown on the county tax rolls.

(d) A county, municipality, or property owner receiving notice

under Subsection (a) or (c) may appear at the hearing through an

official representative or in person and may present testimony

and evidence relating to the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.024. GRANTING OR DENYING PETITION. As soon as

practicable after conclusion of the hearing, the commission shall

adopt an order:

(1) granting the creation of the district and approving the

plan; or

(2) denying the petition and disapproving the plan.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.025. GROUNDS REQUIRING GRANTING OF PETITION. The

commission shall grant the creation of the district and approve

the plan if it finds that:

(1) the creation of the district will benefit the real property

in the district;

(2) each proposed road facility is feasible, practicable, and

necessary and will benefit the district and the real property in

the district;

(3) each governmental entity to which a road facility is to be

conveyed has approved the preliminary plan for the road facility;

(4) the person seeking approval has agreed in writing to comply

with the requirements of each municipality in which or

extraterritorial jurisdiction of which a road facility is to be

located, if the road facility is to be conveyed to a county;

(5) each governmental entity to which a road facility is to be

conveyed has agreed, by issuing an approval statement, to accept

the conveyance; and

(6) the district will be financially able to issue and pay its

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.026. GROUNDS REQUIRING DENIAL OF PETITION. The

commission shall refuse to authorize creation of the district if

the commission:

(1) finds that creation of the district will benefit none of the

real property to be included in the district; or

(2) is unable to make any of the findings listed in Sections

441.025(2)-(6).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.027. OTHER CONSIDERATIONS IN GRANTING OR DENYING

PETITION. Before the commission adopts an order under Section

441.024, it may:

(1) consult with each governmental entity that has submitted an

approval statement regarding suggested changes in the plan;

(2) suggest or direct that the petitioners change the plan for a

district road facility, including deleting a road facility, so as

to make the plan acceptable to the commission; and

(3) consider the environmental effects of the proposals in the

preliminary plan.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.028. ADJUSTMENT OF BOUNDARIES. If the commission finds

that not all of the real property proposed to be included in the

district will be benefitted by the creation of the district, the

commission shall:

(1) make a finding on the lack of benefit;

(2) exclude from the district real property that will not be

benefitted by creation of the district; and

(3) redefine the proposed district's boundaries according to the

commission's changes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.029. TEMPORARY DIRECTORS. (a) If the commission

authorizes the creation of the district, it shall appoint five

persons from those suggested in the petition to serve as

temporary directors of the district. Not later than the 10th day

after the date of appointment, a temporary director shall take

the oath of office.

(b) Temporary directors serve until the directors are elected

and have qualified for office.

(c) If a person appointed by the commission fails to qualify or

if a vacancy occurs in the office of temporary director, the

commission shall appoint another person to serve as temporary

director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.030. CONFIRMATION ELECTION. (a) Not later than the

15th day after the date that all temporary directors have been

appointed and have qualified, the temporary directors shall meet

and order an election in the boundaries of the proposed district

to confirm the creation of the district and elect the directors

of the district.

(b) Section 41.001, Election Code, does not apply to an election

under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.031. NOTICE OF CONFIRMATION ELECTION. (a) Not later

than the 36th day before the date of the confirmation election,

the temporary directors shall publish notice of the election once

in one or more newspapers of general circulation in the proposed

district.

(b) The notice must state:

(1) the date and places for holding the election;

(2) the proposition to be voted on; and

(3) the candidates for director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.032. BALLOT FOR CONFIRMATION ELECTION. (a) To have a

person's name printed on the ballot as a candidate for director,

the person must file a petition with the temporary directors not

later than the 31st day before the date of the election.

(b) The ballot for the election shall be printed to provide for

voting for or against the creation of the district and include

the names of the persons who have filed as candidates for

director.

(c) A voter is entitled to vote for five candidates for

director.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.033. CANVASS. The temporary directors shall canvass

the returns and declare the results.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.034. EFFECT OF CONFIRMATION ELECTION. (a) If the

majority of the votes received in the election favor creation of

the district, the temporary directors shall declare the district

created. If the majority of the votes received in the election

are against the creation of the district, the temporary directors

shall declare the district defeated. The temporary directors

shall enter the results in their minutes and file a copy of the

results with the commission.

(b) If the district is created, the temporary directors shall

declare the five candidates who received the highest number of

votes to be elected as the directors of the district. If two or

more candidates tie for the fifth highest number of votes, the

temporary directors shall select the fifth director by lot from

those tying for that position.

(c) The two directors elected with the fewest votes serve until

the qualification of two directors elected at the next regular

directors' election. The three other directors serve until the

qualification of three directors elected at the second regular

directors' election.

(d) If the district is defeated, another election may not be

held to create the district, except that owners of the real

property in the proposed district may petition the commission

again for creation of a district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.035. INCLUDING BOND PROPOSITION AT ELECTION. (a) At

the election, the temporary directors may include a separate

ballot proposition to approve the issuance by the district of

bonds payable from ad valorem taxes.

(b) If a bond proposition is to be included, the election notice

under Section 441.031 must state the bond proposition.

(c) The bond proposition shall be printed to provide for voting

for or against the issuance of bonds and the imposition of ad

valorem taxes for payment of the bonds.

(d) The temporary directors shall file a copy of the bond

election results in their records and with the commission.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER D. GOVERNANCE

Sec. 441.071. BOARD OF DIRECTORS. Except as provided by Section

441.072, a district is governed by a board of directors composed

of five members elected as provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.072. BOARD OF DIRECTORS IN CERTAIN DISTRICTS. (a) The

governing body of a governmental entity to which a road facility

has been conveyed under Section 441.133 is the ex officio board

of directors of the district making the transfer if:

(1) all district road facilities are conveyed only to that

governmental entity;

(2) all construction, acquisition, and improvement of road

facilities provided for in the plan approved by the commission

have been completed;

(3) the board of directors consents to the transfer of powers

and duties to the governing body of the governmental entity;

(4) the governing body of the governmental entity consents to

assuming the administrative powers and duties of the district;

and

(5) the commission approves the transfer of the powers and

duties.

(b) On the effective date of the transfer of the powers and

duties, the board of directors from whom the transfer is made is

dissolved. On and after that date the administrative powers and

duties transferred are the powers and duties of the governing

body of the governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.073. ELECTION OF DIRECTORS. (a) In each year on a

uniform election date as provided by Chapter 41, Election Code,

an election shall be held in the district to elect the

appropriate number of directors.

(b) To have a person's name printed on the ballot at a

directors' election as a candidate for director, the person must

file a petition with the secretary of the district not later than

the 36th day before the date of the election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.074. TERM; TAKING OFFICE. (a) A director serves a

two-year term.

(b) A director takes office at the first regular meeting of the

board after the director's election.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.075. COMPENSATION. A director is entitled to receive

for the director's services:

(1) not more than $25 a day for each meeting of the board that

the director attends; and

(2) reimbursement for expenses incurred while engaged in the

director's duties for the district as approved by the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.076. VACANCY. A vacancy on the board shall be filled

for the unexpired term by a person appointed by the remaining

directors.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.077. OFFICERS. (a) After each directors' election,

the board shall hold a regular meeting at a district office and

elect from the directors a presiding officer, assistant presiding

officer, secretary, and treasurer. A person elected under this

subsection serves until the first regular board meeting following

the next directors' election, and shall perform the duties and

may exercise the powers specifically provided by this chapter or

the board's orders.

(b) The presiding officer shall preside over board meetings. If

the presiding officer is absent, the assistant presiding officer

shall preside.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.078. GENERAL MANAGER. The board may employ a general

manager and delegate to the general manager full authority to

manage and operate the affairs of the district, subject only to

board orders. The general manager is the chief administrative

officer of the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.079. OTHER OFFICERS. The board may appoint or employ

an engineer, attorney, or accountant. A person appointed or

employed under this section is entitled to compensation provided

by the district's budget.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.080. PERSONNEL. (a) The board or the general manager,

if the district has a general manager, may:

(1) employ persons necessary to carry out the business and

operation of the district; and

(2) employ or contract with personnel necessary to carry out

this chapter.

(b) The board shall determine the employees' terms of employment

and compensation.

(c) A majority of the members of the board or the general

manager, if the district has a general manager, may dismiss an

employee.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.081. OFFICER'S, EMPLOYEE'S, OR CONTRACTOR'S BOND. (a)

The board shall require each officer, employee, or person under

contract to the district who collects, pays, or handles district

money to furnish a bond.

(b) The bond must be:

(1) payable to the district;

(2) for an amount sufficient to protect the district from

financial loss resulting from the person's actions; and

(3) conditioned on the faithful performance of the person's

duties and on accounting for all district money and other

property under the person's control.

(c) The district shall pay for the bond.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.082. MEETINGS. (a) The board shall hold regular

meetings on dates established by board order.

(b) The board may hold special meetings at the call of the

presiding officer or on request of three members of the board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.083. VOTE REQUIRED FOR ACTION. An action of the board

requires the affirmative vote of a majority of the board members.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.084. RECORDS. The district shall keep a complete

written account of all of its proceedings and securely maintain

district records.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.085. OFFICE. The board shall maintain one or more

offices for conducting district business.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.086. SEAL. The board shall adopt a seal for the

district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER E. POWERS AND DUTIES

Sec. 441.101. GENERAL POWERS AND DUTIES. (a) A district may:

(1) acquire a road facility, acquire property for a road

facility, and construct or improve a road facility, inside or

outside district boundaries, as provided by this chapter;

(2) provide financing for a road facility or for construction,

acquisition, or improvement of a road facility from money

available to the district under this chapter;

(3) advise any person and consult, cooperate, or enter an

agreement with any person;

(4) apply for, accept, receive, and administer a gift, grant,

loan, or money available from any source;

(5) reimburse a private entity for money spent to construct a

road or improvement that has been or will be dedicated or

otherwise transferred to public use, or purchase a road or

improvement constructed by a private entity, regardless of

whether the construction occurs before or after the creation of

the district; and

(6) exercise other powers and duties to accomplish the purposes

for which the district was created.

(b) The board may contract with any person to carry out the

powers and duties under this chapter. The board shall execute the

contract in the name of the district.

(c) The district may assume a contract or other obligation of a

previous owner of a road facility or property acquired by the

district and perform the contract or obligation in the same

manner as any other purchaser or assignee, if the contract or

obligation was created as provided by the competitive bidding

requirements of Subchapter B, Chapter 271, Local Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.102. RULES. After notice and hearing, the board shall

adopt rules to carry out this chapter, including rules providing

procedures for giving notice and holding hearings before the

board.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.103. SUIT AND JUDGMENT. (a) A district, through its

board and in the name of the district, may sue and be sued in a

state court. Process in a suit may be served on the presiding

officer of the board.

(b) A state court shall take judicial notice of the creation of

the board.

(c) A state court that renders a money judgment against a

district may require the board to pay the judgment from money in

the district depository that is not dedicated to the payment of

district indebtedness.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER F. ROAD FACILITIES

Sec. 441.111. CONSTRUCTION, ACQUISITION, OR IMPROVEMENT OF ROAD

FACILITY. (a) A district shall construct, acquire, and improve

a road facility included in the plan the commission approves so

that the road facility meets the requirements of the plan.

(b) A district may not construct, acquire, or improve a road

facility outside the district boundaries unless:

(1) the district presents to the commission sufficient evidence

that the construction, acquisition, or improvement is of benefit

to the district; and

(2) the commission and the governmental entity to which the road

facility is to be conveyed approve the construction, acquisition,

or improvement.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.112. PROGRESS PAYMENTS. A contract of the district for

the construction or improvement of a road facility may include a

procedure for paying for the construction or improvement as work

progresses.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.113. JOINT PROJECT. (a) A district contract with a

state agency, a political subdivision, or a corporation created

by the commission under Chapter 431 may:

(1) provide for joint payment of the costs of a project; and

(2) require the state agency, political subdivision, or

corporation to design, construct, or improve, including

landscape, a project as provided by the contract.

(b) The district may issue bonds to pay all or part of the costs

of the project and any other payments required under the

contract.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.114. COMPETITIVE BIDS. A district may enter a

construction or improvement contract requiring an expenditure of

more than $15,000 only after competitive bidding as provided by

Subchapter B, Chapter 271, Local Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.115. CONTRACTOR BOND. A contractor shall execute a

bond for the amount of the contract price. The bond must be

payable to and approved by the board and conditioned on:

(1) faithful performance of the contract obligations; and

(2) payment to the district of damages resulting from any

default.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.116. CHANGES TO ROAD FACILITIES. (a) Before a road

facility is conveyed to a governmental entity, a district may

make a change to the road facility that is not included in the

plan approved by the commission if:

(1) the board determines that the change is necessary to:

(A) comply with the requirements of the governmental entity to

which the road facility is to be conveyed;

(B) comply with the requirements of each municipality in which

or extraterritorial jurisdiction of which the road facility is to

be located, if the road facility is to be conveyed to a county;

(C) provide an adequate and efficient road system for travelers

in the district; or

(D) adjust to circumstances or requirements that did not exist

when the commission approved the original plan; and

(2) the commission approves the change in writing.

(b) Before approving the change, the commission shall consult

the governmental entity to which the road facility is to be

conveyed regarding the proposed change.

(c) Before making a change, a district to which Section 441.017

applies must receive written permission from the governmental

entity assuming maintenance and any municipality in the

extraterritorial jurisdiction of which the district is located.

(d) The commission shall adopt rules of procedure for:

(1) filing a request for a change; and

(2) approving a change.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.117. MONITORING WORK. (a) The board controls the

construction, acquisition, and improvement of a district road

facility until it is conveyed under Section 441.133. The board

shall monitor a contractor's work as it is performed on the road

facility and shall immediately act as necessary to ensure

compliance with the contract. The board may use inspectors,

engineers, or other district personnel as monitors.

(b) The board shall adopt a procedure for periodic reporting by

the monitors.

(c) On completion of construction, acquisition, or improvement

of the road facility, the monitors shall submit a written report

to the board and the governmental entity to which the road

facility is to be conveyed. The report must show whether the road

facility complies with:

(1) the district's plan approved by the commission;

(2) the contract; and

(3) the requirements of the governmental entity to which the

road facility is to be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER G. CONVEYANCE OF ROAD FACILITY

Sec. 441.131. HEARING ON FINAL APPROVAL. (a) After receiving

the report under Section 441.117(c), the board shall give notice

of and hold a public hearing to determine whether a road

facility:

(1) is complete as required by the district's plans and the

contract; and

(2) should be conveyed to the governmental entity.

(b) At the hearing, the board may require the presentation of

additional information or testimony necessary to make a

determination.

(c) A representative of the governing body of the governmental

entity to which the road facility is to be conveyed may present

information and testimony that the governmental entity considers

necessary.

(d) If the road facility is to be conveyed to a county, a

representative of any municipality in which or extraterritorial

jurisdiction of which the road facility is located may present

information and testimony that the municipality considers

necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.132. DECISION ON APPROVAL. (a) If the board

determines at the end of a hearing under Section 441.131 that the

work on the road facility is complete and the road facility

should be conveyed to the governmental entity, the board shall

order the conveyance subject to the requirements of this chapter.

The board shall file with the commission a copy of the order and

the proposed conveyance instrument.

(b) If the board determines that the work on the road facility

has not been completed satisfactorily, the board shall act as

necessary to complete the road facility as required by the

district's plans and the contract. The district shall follow the

procedures and requirements of Sections 441.117 and 441.131

before conveying the road facility to the governmental entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.133. CONVEYANCE REQUIRED. (a) A district shall convey

a road facility to the governmental entity designated in the

district's petition to the commission on completion and approval

by the board of the construction, acquisition, or improvement and

on approval by the commission.

(b) The district shall convey the road facility free and clear

of district indebtedness and may not convey a road that is

encumbered.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.134. COMMISSION CONVEYANCE ORDER. (a) Except as

provided by Subsections (b) and (c), the commission by order

shall authorize the conveyance of a road facility to a

governmental entity not later than the 15th day after the date

that it receives a board's order to convey.

(b) The commission by order shall delay the conveyance until the

district complies with the plans and written commission approvals

if:

(1) the commission considers the road facility not to be

completed according to the plans and written commission

approvals;

(2) the governmental entity to which the road facility is being

conveyed files a written protest; or

(3) a municipality in which or extraterritorial jurisdiction of

which the road facility is located, if the road facility is being

transferred to a county, files a written protest.

(c) An order under Subsection (b) must be issued not later than

the 15th day after the later of the date that the commission

receives the board's conveyance order or the date a protest is

filed.

(d) The commission is not required to hold a hearing before

making an order under this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.135. TRANSFER OF OWNERSHIP AND RESPONSIBILITY. (a)

The governmental entity to which a road facility is conveyed is

the owner of and has jurisdiction and sole control over the road

facility.

(b) After the conveyance, the governmental entity is responsible

for all maintenance of the road facility and the district is not

responsible for the road facility or its maintenance.

(c) This section does not affect the governmental entity's

authority to alter, relocate, close, or discontinue maintenance

of the road facility as provided by law.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.136. EFFECT OF CONVEYANCE ON INDEBTEDNESS. Conveyance

of a road facility to a governmental entity under this subchapter

does not affect:

(1) the sole responsibility of the district to pay in full the

principal of and interest and any premium on any outstanding

district bonds or other indebtedness; or

(2) the district's responsibility to perform the obligations

provided by the orders or resolutions authorizing the bonds or

other indebtedness.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.137. PARTIAL CONVEYANCE. This chapter does not prevent

conveyance of part of the road facilities that a district

constructs in stages.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER H. FINANCIAL PROVISIONS

Sec. 441.151. FISCAL YEAR. (a) The board shall establish a

fiscal year for the district.

(b) The board may not change the fiscal year more than once in a

24-month period.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.152. BUDGET. (a) The board shall prepare and approve

an annual budget.

(b) The budget must contain a complete financial statement,

including a statement of:

(1) the outstanding obligations of the district;

(2) the amount of cash credited to each district fund;

(3) the amount of money the district received from all sources

during the previous year;

(4) the amount of money available to the district from all

sources during the ensuing year;

(5) the balances expected at the end of the year in which the

budget is being prepared;

(6) the estimated revenue and balances available to cover the

proposed budget; and

(7) the estimated tax rate that will be required.

(c) The board may amend the budget after adoption.

(d) Money may not be spent for an expense not included in the

budget or an amendment to it unless the board by order declares

the expense to be necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.153. AUDIT. The board shall have an annual audit made

of the district's financial condition.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.154. DEPOSITORY. (a) The board shall name one or more

banks to serve as depository for district money.

(b) The district shall deposit money, other than money

transmitted to a bank of payment for district bonds, with the

depository bank as received. The money shall remain on deposit,

except that this section does not limit the board's power to

invest district money as provided by Section 441.156.

(c) The district may not deposit money in a bank in an amount

that exceeds the maximum amount secured by the Federal Deposit

Insurance Corporation unless the bank executes a bond or provides

other security in an amount sufficient to secure from loss

district money that exceeds the amount secured by the Federal

Deposit Insurance Corporation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.155. PAYMENT OF EXPENSES. (a) The district's

directors may pay:

(1) costs and expenses necessarily incurred in the district's

creation, organization, and operation;

(2) legal fees; and

(3) other incidental expenses.

(b) The district's directors may reimburse a person for money

advanced for a purpose under Subsection (a).

(c) A payment may be made from the proceeds of district bonds,

taxes, fees, or other district revenue.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.156. AUTHORIZED INVESTMENTS. (a) The board may invest

the district's money in:

(1) a direct obligation of or obligation guaranteed directly or

indirectly by the United States;

(2) an obligation, debenture, note, or other evidence of

indebtedness issued or guaranteed directly or indirectly by the

Association for Cooperatives, Federal Home Loan Association

System, Export-Import Association of the United States, Federal

National Mortgage Association, Federal Home Loan Mortgage

Corporation, Farmers' Home Administration, Tennessee Valley

Authority, Farm Credit System, or Government National Mortgage

Association, or by successor agencies;

(3) an obligation issued by a public agency or municipality and

fully secured as to the payment of principal and interest by a

pledge of annual contributions under an annual contributions

contract with the United States;

(4) a temporary note, preliminary loan note, or project note

issued by a public agency or municipality that is fully secured

as to the payment of principal and interest by a requisition or

payment agreement with the United States;

(5) a direct or general obligation of or obligation guaranteed

by this state if the payment of the principal and interest is a

general obligation of this state;

(6) a demand deposit or interest-bearing time deposit,

certificate of deposit, or other similar banking arrangement that

is made with a member of the Federal Deposit Insurance

Corporation, if the deposit, to the extent not insured to its

full amount, is fully secured by obligations of the types

specified by Subdivision (1), (2), (3), (4), (5), (9), or (10)

that have a fair market value at least equal at all times to the

amount of the deposit;

(7) a repurchase agreement with a bank that is a member of the

Federal Deposit Insurance Corporation or with a member of the

Public Securities Association, if the underlying securities are

of the type described by Subdivision (1) or (2) and each is fully

secured at all times by obligations of the same type that have a

fair market value, including accrued interest, at least equal to

the amount of the repurchase agreement including accrued

interest;

(8) an interest-bearing time deposit or repurchase agreement

with an agency or intermediary of the United States and that is

described by Subdivision (1) or (2);

(9) an obligation of this state, another state of the United

States, a nonprofit corporation, or an instrumentality of this

state, another state, or a nonprofit corporation, if at the time

of its purchase under the indenture, the obligation is rated in

one of the two highest letter-rating categories by a nationally

recognized securities credit rating agency; and

(10) an obligation issued by a political subdivision of this

state, another state of the United States, a nonprofit

corporation, or an instrumentality of this state, another state,

or a nonprofit corporation, that is rated in one of the two

highest letter-rating categories by a nationally recognized

securities credit rating agency.

(b) The board may place the district's money in a certificate of

deposit of a state or national bank or state or federal savings

and loan association in this state if the money is secured in the

manner required for security of the money of a county of this

state.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.157. INVESTMENT REPRESENTATIVE. The board by

resolution may provide that an authorized representative of the

district may invest the district's money and provide for money to

be withdrawn from the appropriate accounts of the district for

investment on terms the board considers advisable.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.158. BORROWING MONEY. The district may borrow money

for any purpose authorized under this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER I. BONDS

Sec. 441.171. ISSUANCE OF BONDS. The board may issue and sell

bonds in the name of the district to construct, acquire, or

improve district road facilities as provided by this chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.172. TAX BOND ELECTION. (a) The district may not

issue bonds secured by taxes unless the issuance of the bonds is

approved at an election ordered by the board within the district

boundaries for that purpose.

(b) The district may issue bonds not secured by taxes without an

election.

(c) In addition to the requirements of the Election Code, the

order shall state:

(1) the nature of the election;

(2) the hours during which polls will be open;

(3) the location of polling places;

(4) the amount of the bonds to be authorized; and

(5) the maximum maturity of the bonds.

(d) Notice of the election must be given as provided by Section

441.031 for a confirmation and directors' election.

(e) The ballot at the election must be printed to provide for

voting for or against the issuance of the bonds and the

imposition of ad valorem taxes for payment of the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.173. FORM AND PROVISIONS OF BONDS. (a) The district

may issue the bonds in various series or issues. The bonds may

mature serially or otherwise not more than 50 years after their

date. The bonds may be made redeemable before maturity at the

option of the district or may contain a mandatory redemption

provision.

(b) An order or resolution of the board authorizing the issuance

of the bonds, including refunding bonds, may:

(1) provide for the management of money;

(2) provide for the establishment and maintenance of an interest

and sinking fund, a reserve fund, and other funds;

(3) prohibit further issuance of bonds or other obligations

payable from pledged fees or reserve the right to issue

additional bonds secured by a pledge of and payable from the fees

on a parity with or subordinate to the pledge in support of the

bonds being issued; and

(4) contain other covenants and provisions as the board

determines.

(c) The board may adopt and have executed other proceedings or

instruments necessary and convenient in connection with the

issuance of bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.174. EXAMINATION. District bonds and the records

relating to their issuance shall be submitted to the attorney

general for examination.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.175. REFUNDING BONDS. The district may issue refunding

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.176. TAX EXEMPTION. District bonds, a transaction

relating to the bonds, and a profit made in the sale of the bonds

are exempt from state or local taxation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.177. BONDHOLDER MANDAMUS. A holder of a district bond

is entitled, in addition to any other right or remedy provided by

state law, to a writ of mandamus requiring the district and its

officials to perform any obligation that:

(1) is provided by the order or resolution authorizing issuance

of the bond; and

(2) the district fails to perform, including:

(A) defaulting in the payment of principal, interest, or

redemption price on the bond when due; and

(B) failing to make payment into any fund created in the order

or resolution.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.178. USE OF BOND PROCEEDS. The district may use bond

proceeds to:

(1) construct, acquire, or improve a road facility;

(2) pay an expense related to the road facility;

(3) pay, or establish a reasonable reserve to pay, not more than

three years' interest on the district's bonds; and

(4) pay an expense related to issuance and sale of bonds as

provided by the bond orders or resolutions.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.179. DISPOSITION OF PROCEEDS. The district shall

deposit the part of the purchase money of bonds that represents

capitalized interest in a special account in the district

depository and use that money to pay interest that comes due on

bonds. Money remaining in that account after payment of the costs

of issuance of the bonds shall be transferred to the credit of

the regular account of the district in the district depository.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.180. MANNER OF REPAYMENT. (a) The board may provide

for the payment of the principal of and interest on the bonds by

one or more of the following methods:

(1) imposition and collection of ad valorem taxes;

(2) adoption of a plan of taxation authorized by Sections

51.502-51.506, Water Code, as provided by those sections; or

(3) pledging all or part of the fees under Section 441.197.

(b) In this chapter, a reference to ad valorem taxes includes a

reference to any other tax the board imposes as provided by this

chapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER J. TAXES

Sec. 441.191. IMPOSITION OF TAXES. The board may annually

impose taxes to pay the principal of and interest on district

bonds and the expense of assessing and collecting taxes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.192. MAINTENANCE TAX. (a) A district may impose a

maintenance tax to pay the district's operating expenses if, at

an election in the district ordered for that purpose, a majority

of the votes received favor the imposition of the tax.

(b) The amount of the tax may not exceed 25 cents on each $100

of assessed valuation of property in the district.

(c) The election shall be held as provided for a confirmation

and directors' election under Sections 441.030-441.035.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.193. TAX RATE. In setting a tax rate, the board shall

consider the district's income from sources other than taxation.

On determination of the amount of tax needed to be imposed, the

board shall adopt a tax rate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.194. APPOINTMENT OF TAX ASSESSOR-COLLECTOR. The board

may appoint a tax assessor-collector.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.195. IMPOSITION OF TAXES DURING FIRST YEAR. The board

may impose taxes for the entire year in which the district is

created.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.196. ALL PROPERTY TAXED. The board shall impose taxes

on all property in the district subject to taxation.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.197. FEES. (a) A district may adopt and enforce fees

in addition to taxes to provide the district revenue to operate

the district and secure district bonds.

(b) A district may file a suit to recover an unpaid fee under

this section. The suit must be filed in a county in which the

district is located.

(c) Except as provided by Section 365.040, a fee may not be

imposed on or collected for travel on a road constructed,

acquired, or improved by the district.

(d) A road facility may not be encumbered by a district fee.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.198. BOND ANTICIPATION NOTES. (a) A district may

issue bond anticipation notes:

(1) for any purpose for which district bonds have been

previously voted; or

(2) to refund previously issued bond anticipation notes.

(b) A district may contract with purchasers of bond anticipation

notes that the proceeds from the sale of bonds that are issued to

refund the bond anticipation notes shall be used only to pay the

principal of or interest or redemption price on the bond

anticipation notes.

(c) A district may secure the repayment of the principal of and

interest and redemption premium on the bond anticipation notes

from any source available for that repayment, including a loan

agreement, revolving credit agreement, agreement establishing a

line of credit, letter of credit, reimbursement agreement,

insurance contract, commitment to purchase bond anticipation

notes, purchase or sale agreement, or another agreement

authorized and approved by the district in connection with the

authorization, issuance, security, or repayment of bond

anticipation notes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER K. ANNEXATION

Sec. 441.211. PETITION FOR ANNEXATION. (a) Any property owner

may file with the board a petition requesting that the real

property be annexed to the district. The property is not required

to be contiguous to the district.

(b) The petition must:

(1) describe the property by metes and bounds, or if there is a

recorded plat of the property, by lot and block number; and

(2) be executed as provided by law for the conveyance of real

property.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.212. BOARD DECISION. The board shall hear and consider

the petition and may annex the real property to the district if

the board considers the annexation to be to the district's

advantage.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.213. COMMISSION APPROVAL. A board order annexing real

property to the district is final only on written consent of the

commission after the commission consults with the governmental

entity to which the completed road facility will be conveyed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.214. RECORDING PETITION. The board shall record a

petition that is granted in the office of the county clerk of

each county in which annexed real property is located.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.215. ASSUMPTION OF DEBT SHARE. The board may require

each petitioner to:

(1) assume the petitioner's share of any outstanding district

bonds or voted but unissued bonds; and

(2) authorize the board to impose a tax on the petitioner's

property in each year that any of those bonds are outstanding.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.216. UNISSUED BONDS. The board may issue bonds that

have been voted but not issued at the time of an annexation,

regardless of the alteration of the district boundaries after the

bond's authorization, if each petitioner assumes the debt and

authorizes the tax under Section 441.215.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER L. DISSOLUTION

Sec. 441.231. PETITION FOR DISSOLUTION. (a) A district shall

submit to the commission a petition for dissolution of the

district after:

(1) the district has completed each construction, acquisition,

and improvement of a road facility provided in the plan approved

by the commission;

(2) the district has conveyed each road facility to a

governmental entity; and

(3) all bonds and other district indebtedness are paid in full.

(b) The district shall submit with the petition evidence that

the commission by rule or order requires to show that each

proposal in the plan has been completed and all bonds and other

district indebtedness have been paid in full.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.232. COMMISSION DISSOLUTION ORDER. (a) The commission

shall order the district dissolved if, after considering the

petition and the accompanying evidence, the commission finds

that:

(1) the work is completed according to the plan;

(2) each road facility has been conveyed; and

(3) all bonds and other indebtedness have been paid in full.

(b) If the commission finds that one or more of these conditions

has not been met, the commission shall adopt an order that will

ensure that that condition is met. On compliance with this order,

the commission shall order the district dissolved.

(c) On issuance of the commission's dissolution order, the

dissolved district ceases as a governmental entity, and the board

continues in existence only to transfer district money and

dispose of district assets.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 441.233. TRANSFER OF DISTRICT MONEY. (a) On dissolution

of the district, the board shall transfer the district's money to

the governmental entity to which the road facility was conveyed.

If road facilities were conveyed to more than one governmental

entity, the board shall distribute the money among those

governmental entities in proportion to the proceeds of all

indebtedness that the district incurred to construct, purchase,

or improve the road facilities conveyed to each respective

governmental entity.

(b) A governmental entity shall use the money to maintain the

road facility.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.