CHAPTER 375. MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT
CHAPTER 375. MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 375.001. LEGISLATIVE FINDINGS; PURPOSES. (a) The creation
of a municipal management district is declared to be essential to
the accomplishment of the purposes of Article III, Section 52,
Article XVI, Section 59, and Article III, Section 52-a, of the
Texas Constitution and to the accomplishment of the other public
purposes stated in this chapter.
(b) The creation of each district is necessary to promote,
develop, encourage, and maintain employment, commerce, economic
development, and the public welfare in the commercial areas of
municipalities and metropolitan areas of this state.
(c) The creation of districts and this chapter may not be
interpreted to relieve any municipality from providing services
to an area included in the district or to release the
municipality from the obligation it has to provide municipal
services to that area. A district is created to supplement and
not supplant the municipal services of the municipality.
(d) All of the land and other property to be included within the
boundaries of a district will be benefited by the works and
projects that are to be accomplished and the services to be
provided by the district under powers conferred by Article III,
Section 52, Article XVI, Section 59, and Article III, Section
52-a, of the Texas Constitution and other powers granted under
this chapter.
(e) A district is created to serve a public use and benefit.
(f) The creation of a district is essential to further the
public purposes of development and diversification of the economy
of the state, the elimination of unemployment and
underemployment, and the development or expansion of
transportation and commerce and is in the public interest.
(g) A district will promote the health, safety, and general
welfare of residents, employers, employees, and consumers in the
district and the general public.
(h) A district is designed to provide needed funding for
metropolitan areas to preserve, maintain, and enhance the
economic health and vitality of the areas as community and
business centers.
(i) The present and prospective traffic congestion in
municipalities in this state, the need for traffic control and
the safety of pedestrians, and the limited availability of funds
require the promotion and development of public transportation
and pedestrian facilities and systems by new and alternative
means, and a district will serve the public purpose of securing
expanded and improved transportation and pedestrian facilities
and systems. The public transportation and pedestrian facilities
and systems promoted and developed by a district will be
attractive, safe, and convenient and will benefit not only the
land and property in the district, but also the employees,
employers, and consumers of the district and the general public.
(j) A district will further promote the health, safety, welfare,
morals, convenience, and enjoyment of the public by landscaping
and developing certain areas within the district that are
necessary for the restoration, preservation, and enhancement of
scenic and aesthetic beauty.
(k) A district will not act as the agent or instrumentality of
any private interests even though many private interests will be
benefited by the district, as will the general public.
(l) The purpose of this chapter is to promote and benefit
commercial development and commercial areas throughout the state.
Each improvement project or service authorized by this chapter is
found and declared to carry out a public purpose.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.002. CONSTRUCTION OF CHAPTER. (a) This chapter shall
be liberally construed in conformity with the findings and
purposes in Section 375.001.
(b) If any provision of general law is in conflict or
inconsistent with this chapter, this chapter prevails. Any
general law not in conflict or inconsistent with this chapter is
adopted and incorporated by reference.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.003. DEFINITIONS. In this chapter:
(1) "Board" means a board of directors of a district.
(2) "Bond" means any type of interest-bearing obligation,
including a bond, note, bond anticipation note, certificate of
participation, lease, contract, or other evidence of
indebtedness.
(3) "Commission" means the Texas Natural Resource Conservation
Commission.
(4) "Disadvantaged business" means:
(A) a corporation formed for the purpose of making a profit and
at least 51 percent of all classes of the shares of stock or
other equitable securities of which are owned by one or more
persons who are socially disadvantaged because of their
identification as members of certain groups that have suffered
the effects of discriminatory practices or similar insidious
circumstances over which they have no control, including black
Americans, Hispanic Americans, women, Asian Pacific Americans,
and American Indians;
(B) a sole proprietorship formed for the purpose of making a
profit that is owned, operated, and controlled exclusively by one
or more persons described by Paragraph (A);
(C) a partnership that is formed for the purpose of making a
profit, in which 51 percent of the assets and interest in the
partnership is owned by one or more persons described by
Paragraph (A), and in which minority or women partners have a
proportionate interest in the control, operation, and management
of the partnership affairs;
(D) a joint venture between minority and women's group members
formed for the purpose of making a profit and the minority
participation in which is based on the sharing of real economic
interest, including equally proportionate control over
management, interest in capital, and interest earnings, other
than a joint venture in which majority group members own or
control debt securities, leasehold interest, management
contracts, or other interests; or
(E) a supplier contract between persons described in Paragraph
(A) and a prime contractor in which the disadvantaged business is
directly involved for the manufacture or distribution of the
supplies or materials or otherwise for warehousing and shipping
the supplies.
(5) "District" means a management district created under this
chapter.
(6) "Mass transit" means transportation of passengers and their
hand-carried packages or baggage by motorbus, trolley, coach,
street railway, rail, suspended overhead rail, elevated railway,
subway, people mover, automobile, or any other surface, overhead,
or underground transportation or any combination of the preceding
and includes stations or terminals and public parking facilities
and facilities incidental to or related to any of the preceding,
including commercial or shopping areas.
(7) "System" means all real and personal property owned or held
by a district for mass transit purposes, including land,
interests in land, buildings, structures, rights-of-way,
easements, franchises, rail lines, bus lines, stations,
platforms, terminals, rolling stock, garages, shops, equipment,
and facilities including vehicle parking areas and facilities,
and other facilities necessary or convenient for the beneficial
use and access of persons and vehicles to stations, terminals,
yards, cars and buses, control houses, signals and land,
facilities, and equipment for the protection and environmental
enhancement of those facilities.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 11.256,
eff. Sept. 1, 1995.
Sec. 375.004. GOVERNMENTAL AGENCY; TORT CLAIMS. (a) A district
is a governmental agency, a body politic and corporate, and a
political subdivision of the state.
(b) A district is a unit of government for purposes of Chapter
101, Civil Practice and Remedies Code (Texas Tort Claims Act),
and operations of a district are considered to be essential
governmental functions and not proprietary functions for all
purposes, including the application of the Texas Tort Claims Act.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 375.021. AREAS ELIGIBLE FOR CREATION OF DISTRICT. (a) A
district may be created only:
(1) in an area devoted primarily to commercial development and
business activity inside the boundaries of a municipality with a
population of at least 25,000; or
(2) in an area devoted primarily to commercial development or
business activity.
(b) A district created as authorized under Subsection (a)(2) may
include the extraterritorial jurisdiction of a municipality with
a population of at least 25,000 if the area has an assessed
valuation of $500 million or more according to the rolls of the
central appraisal district for the year preceding the date of
creation of the district.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.022. PETITION. (a) Before a district may be created,
the commission must receive a petition requesting creation of the
district.
(b) The petition must be signed by:
(1) the owners of a majority of the assessed value of the real
property in the proposed district, according to the most recent
certified county property tax rolls; or
(2) 50 persons who own real property in the proposed district
if, according to the most recent certified county property tax
rolls, more than 50 persons own real property in the proposed
district.
(c) The petition must:
(1) describe the boundaries of the proposed district by metes
and bounds or, if there is a recorded map or plat and survey of
the area, by lot and block number;
(2) state the specific purposes for which the district will be
created;
(3) state the general nature of the work, projects, or services
proposed to be provided, the necessity for those services, and
the costs as estimated by the persons filing the petition;
(4) include a name of the district, which must be generally
descriptive of the location of the district, followed by
"Management District";
(5) include a proposed list of initial directors that includes
the directors' experience and initial term of service; and
(6) include a resolution of the governing body of the
municipality in support of the creation of the district.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.023. COMMISSION HEARING; CONTENTS OF NOTICE. The
commission or a person authorized by the commission shall set a
date, time, and place for a hearing to consider each petition
received. The commission or authorized person shall issue a
notice of the date, time, and place of hearing. The notice must
state that each person has a right to appear and present evidence
and testify for or against the allegations in the petition, the
form of the petition, the necessity and feasibility of the
district's project, and the benefits to accrue.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.024. PUBLICATION OF NOTICE. (a) The commission or
authorized person shall publish notice of the hearing in a
newspaper of general circulation in the municipality in which the
proposed district is located once a week for two consecutive
weeks. The first publication must occur not later than the 31st
day before the date on which the hearing will be held.
(b) The commission or authorized person shall also mail a copy
of the notice to each county in which the proposed district is
located if the county has formally requested notice of the
creation of each district in the county.
(c) A municipality may request that it receive during a year
notice of hearings on the creation of a district by filing a
request with the commission during January of the year. The
municipality's request must state the names and mailing addresses
of not more than two persons to whom the commission shall send
the notice on behalf of the municipality.
(d) A certificate of a representative of the commission that
notice was mailed to each county in which the proposed district
is located that had formally requested notice is conclusive
evidence that notice was properly mailed to each county.
(e) Not later than the 30th day before the date of the hearing,
the petitioner shall send the notice of the hearing by certified
mail, return receipt requested, to each person who owns real
property in the proposed district, according to the most recent
certified county property tax rolls, other than a property owner
who signed the petition for creation. The tax assessor and
collector shall certify from the tax rolls ownership of property
on the date the petition is filed with the commission.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.025. HEARING. (a) At a hearing set under Section
375.023, the commission shall examine the petition to determine
its sufficiency. Any interested person may appear before the
commission in person or by attorney and offer testimony on the
sufficiency of the petition and whether the district is feasible
and necessary and would be a benefit to all or any part of the
land proposed to be included in the district.
(b) The commission has jurisdiction to determine each issue
relating to the sufficiency of the petition and to the creation
of the district and may issue necessary incidental orders in
relation to the issues before the commission. The commission may
adjourn the hearing from day to day.
(c) If after the hearing the commission finds that the petition
conforms to the requirements of Section 375.022(c) and that the
district is feasible and necessary and would benefit the public,
the commission by order shall make that finding and grant the
petition. In determining if the project is feasible and necessary
and would benefit the public, the commission shall consider:
(1) the availability of comparable services from other systems,
including special districts, municipalities, and regional
authorities; and
(2) the reasonableness of the proposed public purpose projects
and services.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.026. ORDER; INITIAL DIRECTORS. If the commission
grants the petition, the commission in the order creating the
district shall state the specific purposes for which the district
is created and shall appoint the initial directors.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.027. MUNICIPALITY WITH POPULATION MORE THAN 1,500,000.
A district may not be created within the boundaries of a
municipality with a population of more than 1,500,000 unless the
district is:
(1) outside a radius of 3.5 miles from the county courthouse; or
(2) created by a local law bill passed by the legislature.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 14, Sec.
7.01, eff. Nov. 12, 1991.
SUBCHAPTER C. BOUNDARIES
Sec. 375.041. COMMISSION ORDER. The boundaries of a district
are as prescribed by the commission order creating the district.
The commission may issue a subsequent order changing the
boundaries of the district.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.042. MISTAKE IN BOUNDARY DESCRIPTION. If in the
petition or order a mistake is made in the field notes or in
copying the field notes of the boundaries of a district, the
mistake does not affect:
(1) the organization, existence, and validity of the district;
(2) the right of the district to issue any type of bonds or
refunding bonds for the purposes for which the district is
created or to pay the principal of and interest on the bonds;
(3) the right of the district to levy and collect assessments or
taxes; or
(4) the legality or operation of the district or its governing
body.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.043. ANNEXATION. A district may annex land as provided
by Chapter 54, Water Code, subject to the approval of the
governing body of the municipality.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.044. EXCLUDING TERRITORY. (a) At any time during
which a district does not have outstanding bonds, the board on
its own motion may call a hearing on the question of the
exclusion of land from the district in the manner provided by
Chapter 54, Water Code, if the exclusions are practicable, just,
or desirable.
(b) The board shall call a hearing on the exclusion of land or
other property from the district if a landowner or property owner
in the district files with the secretary of the board a written
petition requesting the hearing before the issuance of bonds.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
SUBCHAPTER D. ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS
Sec. 375.061. NUMBER OF DIRECTORS; TERMS. A district is
governed by a board of at least nine but not more than 30
directors who serve staggered four-year terms.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.062. TERMS OF INITIAL DIRECTORS. The initial directors
shall be divided into two groups that are as equal in number as
possible; one group serves four-year terms and one group serves
two-year terms. The grouping of initial directors and terms for
the directors in each group shall be determined by the
commission.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.063. QUALIFICATIONS OF DIRECTOR. To be qualified to
serve as a director, a person must be at least 18 years old and:
(1) a resident of the district;
(2) an owner of property in the district;
(3) an owner of stock, whether beneficial or otherwise, of a
corporate owner of property in the district;
(4) an owner of a beneficial interest in a trust that owns
property in the district; or
(5) an agent, employee, or tenant of a person covered by
Subdivision (2), (3), or (4).
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.064. RECOMMENDATIONS FOR SUCCEEDING BOARD. (a) The
initial and each succeeding board of directors shall recommend to
the governing body of the municipality persons to serve on the
succeeding board.
(b) After reviewing the recommendations, the governing body
shall approve or disapprove the directors recommended by the
board.
(c) If the governing body is not satisfied with the
recommendations submitted by the board, the board, on the request
of the governing body, shall submit to the governing body
additional recommendations.
(d) Board members may serve successive terms.
(e) If any provision of Subsections (a) through (d) is found to
be invalid, the commission shall appoint the board from
recommendations submitted by the preceding board.
(f) The governing body of the municipality or the commission, as
appropriate, shall make appointments to the board so that places
on the board are occupied by persons with experience in one or
more of the following areas:
(1) energy matters;
(2) commercial banking;
(3) real estate development;
(4) finance and insurance matters;
(5) matters relating to retail or the provision of services;
(6) provision of utilities; or
(7) general issues the district will address.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.065. REMOVAL OF DIRECTOR. The governing body of the
municipality after notice and hearing may remove a director for
misconduct or failure to carry out the director's duties on
petition by a majority of the remaining directors.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.066. BOARD VACANCY. A vacancy in the office of
director shall be filled by the remaining members of the board
for the unexpired term.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.067. DIRECTOR'S BOND AND OATH. (a) As soon as
practicable after a director is appointed, the director shall
execute a $10,000 bond payable to the district and conditioned on
the faithful performance of the director's duties.
(b) Each director's bond must be approved by the board, and each
director shall take the oath of office prescribed by the
constitution for public officers.
(c) The bond and oath shall be filed with the district and
retained in its records.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.068. OFFICERS. After directors are appointed and have
qualified by executing a bond and taking the oath, they shall
organize by electing a president, a vice-president, a secretary,
and any other officers the board considers necessary.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.069. BOARD POSITION NOT CIVIL OFFICE OF EMOLUMENT. A
position on the board may not be construed to be a civil office
of emolument for any purpose, including those purposes described
by Article XVI, Section 40, of the Texas Constitution.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.070. COMPENSATION OF DIRECTORS; REIMBURSEMENT OF
EXPENSES. A director is not entitled to compensation for service
on the board but is entitled to be reimbursed for necessary
expenses incurred in carrying out the duties and responsibilities
of a director.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.071. QUORUM. One-half of the directors constitutes a
quorum, and a concurrence of a majority of a quorum of directors
is required for any official action of the district. The written
consent of at least two-thirds of the directors is required to
authorize the levy of assessments, the levy of taxes, the
imposition of impact fees, or the issuance of bonds.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.072. PARTICIPATION IN VOTING. (a) A person who
qualifies to serve on the board under Section 375.063 is
qualified to serve as a director and participate in all votes
pertaining to the business of the district regardless of any
other statutory provision to the contrary.
(b) A director who has a beneficial interest in a business
entity that will receive a pecuniary benefit from an action of
the board may participate in discussion and vote on that action
if a majority of the board has a similar interest in the same
action or if all other similar business entities in the district
will receive a similar pecuniary benefit.
(c) An employee of a public entity may serve on the board of
directors of the district, but the public employee may not
participate in the discussion of or vote on any matter regarding
assessments on or contracts with the public entity of which the
director is an employee.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
SUBCHAPTER E. POWERS AND DUTIES
Sec. 375.091. GENERAL POWERS OF DISTRICT. (a) A district has
the rights, powers, privileges, authority, and functions
conferred by the general law of this state applicable to
conservation and reclamation districts created under Article XVI,
Section 59, of the Texas Constitution, including those conferred
by Chapter 54, Water Code.
(b) The district may contract and manage its affairs and funds
for any corporate purpose in accordance with Chapter 54, Water
Code.
(c) The district has all the rights, powers, privileges,
authority, and functions of road districts and road utility
districts created pursuant to Article III, Section 52, of the
Texas Constitution, including the power to levy ad valorem taxes
for the construction, maintenance, and operation of macadamized,
graveled, or paved roads and turnpikes, or in aid thereof. This
power includes the power to levy ad valorem taxes to provide for
mass transit systems in the manner and subject to the limitations
provided in Article III, Section 52, and Article III, Section
52(a), of the Texas Constitution.
(d) A district has those powers conferred by Chapters 365 and
441, Transportation Code, and the additional rights, privileges,
authority, and functions contained in those chapters.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.225,
eff. Sept. 1, 1997.
Sec. 375.092. SPECIFIC POWERS. (a) A district has the powers
necessary or convenient to carry out and effect the purposes and
provisions of this chapter, including the powers granted in this
section.
(b) A district has perpetual succession.
(c) A district may sue and be sued in courts of competent
jurisdiction, may institute and prosecute suits without giving
security for costs, and may appeal from a judgment without giving
supersedeas or cost bond.
(d) A district may incur liabilities, borrow money on terms and
conditions the board determines, and issue notes, bonds, or other
obligations.
(e) A district may acquire by grant, purchase, gift, devise,
lease, or otherwise, and may hold, use, sell, lease, or dispose
of real and personal property, and licenses, patents, rights, and
interests necessary, convenient, or useful for the full exercise
of any of its powers under this chapter.
(f) A district may acquire, construct, complete, develop, own,
operate, and maintain permanent improvements and provide services
inside and outside its boundaries.
(g) A district may enter into agreements with a person or
entity, public or private, for the joint use of facilities,
installations, and property.
(h) A district may establish and maintain reasonable and
nondiscriminatory rates, fares, tolls, charges, rents, or other
fees or compensation for the use of the improvements constructed,
operated, or maintained by the district.
(i) A district may enter contracts, leases, and agreements with
and accept grants and loans from the United States and its
departments and agencies, the state and its agencies, counties,
municipalities, and political subdivisions, public or private
corporations, including a nonprofit corporation created under a
resolution of the board, and other persons and may perform all
acts necessary for the full exercise of the powers vested in it
on terms and conditions and for the term the board may determine
to be advisable.
(j) A district may acquire property under conditional sales
contracts, leases, equipment trust certificates, or any other
form of contract or trust agreement.
(k) A district may sell, lease, convey, or otherwise dispose of
any of its rights, interests, or properties that are not needed
for or, in the case of leases, that are not inconsistent with the
efficient operation and maintenance of the district's
improvements. A district may sell, lease, or otherwise dispose of
any surplus material or personal or real property not needed for
its requirements or for the purpose of carrying out its powers
under this chapter.
(l) A district may lease projects or any part of a project to or
contract for the use or operation of the projects or any part of
a project by any operator.
(m) A district may conduct hearings and take testimony and
proof, under oath or affirmation, at public hearings, on any
matter necessary to carry out the purposes of this chapter.
(n) A district may procure and pay premiums to insurers for
insurance of any type in amounts considered necessary or
advisable by the board.
(o) A district may do anything necessary, convenient, or
desirable to carry out the powers expressly granted or implied by
this chapter.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.093. USE AND ALTERATION OF PUBLIC WAYS. (a) With the
consent of the municipality, the district is entitled to use the
streets, alleys, roads, highways, and other public ways and to
relocate, raise, reroute, change the grade of, and alter the
construction of any street, alley, highway, road, railroad,
electric lines and facilities, telegraph and telephone properties
and facilities, pipelines and facilities, conduits and
facilities, and other property, whether publicly or privately
owned, as necessary or useful in the construction,
reconstruction, repair, maintenance, and operation of the system
or to have those things done at the district's sole expense.
(b) The district may not proceed with any action to change,
alter, or damage the property or facilities of the state, its
municipal corporations, agencies, or political subdivisions or of
owners rendering public services, or that will disrupt those
services being provided by others, or to otherwise inconvenience
the owners of that property or those facilities without having
first obtained the written consent of those owners. If the owners
of the property or facilities desire to handle the relocation,
raising, change in the grade of, or alteration in the
construction of the property or facilities with their own
personnel or have the work done by contractors of their own
choosing, the district may enter agreements with the owners
providing for the necessary relocations, changes, or alterations
of the property or facilities by the owners or contractors and
the reimbursement by the district to those owners of the costs
incurred by the owners in making those relocations, changes, or
alterations or having them accomplished by contractors.
(c) If a district, in exercising any of the powers conferred by
this chapter, requires the relocation, adjustment, raising,
lowering, rerouting, or changing the grade of or altering the
construction of any street, alley, highway, overpass, underpass,
or road, any railroad track, bridge, or other facilities or
property, any electric lines, conduits, or other facilities or
property, any telephone or telegraph lines, conduits, or other
facilities or property, any gas transmission or distribution
pipes, pipelines, mains, or other facilities or property, any
water, sanitary sewer or storm sewer pipes, pipelines, mains, or
other facilities, or property, any cable television lines,
cables, conduits, or other facilities or property, or any other
pipelines and any facilities or properties relating to those
pipelines, those relocations, adjustments, raising, lowering,
rerouting, or changing of grade, or altering of construction must
be accomplished at the sole cost and expense of the district, and
damages that are suffered by the owners of the property or
facilities shall be borne by the district.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.094. NO EMINENT DOMAIN POWER. A district may not
exercise the power of eminent domain.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.095. MANAGEMENT BY BOARD OF DIRECTORS. The
responsibility for the management, operation, and control of the
property belonging to a district is vested in the board.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.096. SPECIFIC POWERS AND DUTIES OF BOARD. (a) The
board may:
(1) employ all persons, firms, partnerships, or corporations
considered necessary by the board for the conduct of the affairs
of the district, including a general manager, bookkeepers,
auditors, engineers, attorneys, financial advisers, peace or
traffic control officers, architects, and operating or management
companies and prescribe the duties, tenure, and compensation of
each;
(2) dismiss employees;
(3) adopt a seal for the district;
(4) invest funds of the district in any investments authorized
by Subchapter A, Chapter 2256, Government Code and provide, by
resolution, that an authorized representative manage the
district's funds and invest and reinvest the funds of the
district on terms the board considers advisable;
(5) establish a fiscal year for the district;
(6) establish a complete system of accounts for the district and
each year shall have prepared an audit of the district's affairs,
which shall be open to public inspection, by an independent
certified public accountant or a firm of independent certified
public accountants; and
(7) designate one or more banks to serve as the depository bank
or banks.
(b) Funds of a district shall be deposited in the depository
bank or banks unless otherwise required by orders or resolutions
authorizing the issuance of the district's bonds or notes. To the
extent that funds in the depository bank or banks are not insured
by the Federal Deposit Insurance Corporation, they must be
secured in the manner provided by law for the security of funds
of counties. The board by resolution may authorize a designated
representative to supervise the substitution of securities
pledged to secure the district's funds.
(c) The board may adopt and enforce reasonable rules and
regulations governing the administration of the district and its
programs and projects.
(d) The name of the district may be established or changed by
resolution of the board.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(11),
eff. Sept. 1, 1995.
Sec. 375.097. HEARINGS EXAMINER; ADMINISTRATIVE PROCEDURE ACT.
(a) The board may appoint a hearings examiner to conduct any
hearing called by the board, including a hearing required by
Chapter 395. The hearings examiner may be an employee of the
district or a member of the district's board.
(b) The hearing shall be conducted in accordance with Chapter
2001, Government Code.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),
eff. Sept. 1, 1995.
SUBCHAPTER F. ASSESSMENTS
Sec. 375.111. GENERAL POWERS RELATING TO ASSESSMENTS. In
addition to the powers provided by Subchapter E, the board of a
district may undertake improvement projects and services that
confer a special benefit on all or a definable part of the
district. The board may levy and collect special assessments on
property in that area, based on the benefit conferred by the
improvement project or services, to pay all or part of the cost
of the project and services. If the board determines that there
is a benefit to the district, the district may provide
improvements and services to an area outside the boundaries of
the district.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.112. SPECIFIC POWERS RELATING TO ASSESSMENTS. (a) An
improvement project or services provided by the district may
include the construction, acquisition, improvement, relocation,
operation, maintenance, or provision of:
(1) landscaping; lighting, banners, and signs; streets and
sidewalks; pedestrian skywalks, crosswalks, and tunnels;
seawalls; marinas; drainage and navigation improvements;
pedestrian malls; solid waste, water, sewer, and power
facilities, including electrical, gas, steam, cogeneration, and
chilled water facilities; parks, plazas, lakes, rivers, bayous,
ponds, and recreation and scenic areas; historic areas;
fountains; works of art; off-street parking facilities, bus
terminals, heliports, and mass transit systems; and the cost of
any demolition in connection with providing any of the
improvement projects;
(2) other improvements similar to those described in Subdivision
(1);
(3) the acquisition of real property or any interest in real
property in connection with an improvement, project, or services
authorized by this chapter, Chapter 54, Water Code, or Chapter
365 or 441, Transportation Code;
(4) special supplemental services for advertising, economic
development, promoting the area in the district, health and
sanitation, public safety, maintenance, security, business
recruitment, development, elimination or relief of traffic
congestion, recreation, and cultural enhancement; and
(5) expenses incurred in the establishment, administration,
maintenance, and operation of the district or any of its
improvements, projects, or services.
(b) An improvement project on two or more streets or two or more
types of improvements may be included in one proceeding and
financed as one improvement project.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.226,
eff. Sept. 1, 1997.
Sec. 375.113. PROPOSED ASSESSMENTS. Services or improvement
projects may be financed under this chapter after a hearing
notice given as required by this subchapter and a public hearing
by the board on the advisability of the improvements and services
and the proposed assessments.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.114. PETITION REQUIRED. The board may not finance
services and improvement projects under this chapter unless a
written petition has been filed with the board requesting those
improvements or services signed by:
(1) the owners of 50 percent or more of the assessed value of
the property in the district as determined from the most recent
certified county property tax rolls; or
(2) the owners of 50 percent or more of the surface area of the
district, excluding roads, streets, highways, and utility
rights-of-way, other public areas, and any other property exempt
from assessment under Section 375.162 or 375.163 as determined
from the most recent certified county property tax rolls.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.115. NOTICE OF HEARING. (a) Notice of the hearing
shall be given in a newspaper with general circulation in the
county in which the district is located. The final publication
must be made not later than the 30th day before the date of the
hearing.
(b) The notice must include:
(1) the time and place of the hearing;
(2) the general nature of the proposed improvement project or
services;
(3) the estimated cost of the improvement, including interest
during construction and associated financing costs; and
(4) the proposed method of assessment.
(c) Written notice containing the information required by
Subsection (b) shall be mailed by certified mail, return receipt
requested, or by another method determined by the board to
provide adequate proof that the notice was timely mailed, not
later than the 30th day before the date of the hearing. The
notice shall be mailed to each property owner in the district who
will be subject to assessment at the current address of the
property to be assessed as reflected on the tax rolls.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1265, Sec. 1, eff. September 1, 2009.
Sec. 375.116. CONCLUSION OF HEARING; FINDINGS. (a) A hearing
on the services or improvement project, whether conducted by the
board or a hearings examiner, may be adjourned from time to time.
(b) At the conclusion of the hearing, the board shall make
findings by resolution or order relating to the advisability of
the improvement project or services, the nature of the
improvement project or services, the estimated cost, the area
benefited, the method of assessment, and the method and time for
payment of the assessment.
(c) If a hearings examiner is appointed to conduct the hearing,
after conclusion of the hearing, the hearings examiner shall file
with the board a report stating the examiner's findings and
conclusions.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.117. AREA TO BE ASSESSED. (a) The area of the
district to be assessed according to the findings of the board
may be the entire district or any part of the district and may be
less than the area proposed in the notice of the hearing.
(b) Except as provided by Subsection (c), the area to be
assessed may not include property that is not within the district
boundaries at the time of the hearing unless there is an
additional hearing, preceded by the required notice.
(c) The owner of improvements constructed or land annexed to the
district after the district has imposed assessments may waive the
right to notice and an assessment hearing and may agree to the
imposition and payment of assessments at an agreed rate for
improvements constructed or land annexed to the district.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.118. OBJECTIONS; LEVY OF ASSESSMENT. (a) At a hearing
on proposed assessments, at any adjournment of the hearing, or
after consideration of the hearings examiner's report, the board
shall hear and rule on all objections to each proposed
assessment.
(b) The board may amend proposed assessments for any parcel.
(c) After all objections have been heard and action has been
taken with regard to those objections, the board, by order or
resolution, shall levy the assessments as special assessments on
the property and shall specify the method of payment of the
assessments and may provide that those assessments be paid in
periodic installments, including interest.
(d) Periodic installments must be in amounts sufficient to meet
annual costs for services and improvements as provided by Section
375.119 and continue for the number of years required to retire
indebtedness or pay for the services to be rendered. The board
may provide interest charges or penalties for failure to make
timely payment and also may levy an amount to cover delinquencies
and expenses of collection.
(e) If assessments are levied for more than one service or
improvement project, the board may provide that assessments
collected for one service or improvement project may be borrowed
to be used for another service or improvement project.
(f) The board shall establish a procedure for the distribution
or use of any assessments in excess of those necessary to finance
the services or improvement project for which those assessments
were collected.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.119. APPORTIONMENT OF COST. The portion of the cost of
an improvement project or services to be assessed against the
property in the district shall be apportioned by the board based
on the special benefits accruing to the property because of the
improvement project or services. The cost may be assessed:
(1) equally by front foot or by square foot of land area against
all property in the district;
(2) against property according to the value of the property as
determined by the board, with or without regard to structures or
other improvements on the property; or
(3) on any other reasonable assessment plan that results in
imposing fair and equitable shares of the cost on property
similarly benefited.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.120. ASSESSMENT ROLL. If the total cost of an
improvement project or services is determined, the board shall
levy the assessments against each parcel of land against which an
assessment may be levied in the district. With regard to an
assessment for services, the board may levy an annual assessment
that may be lower but not higher than the initial assessment. The
board shall have an assessment roll prepared showing the
assessments against each property and the board's basis for the
assessment. The assessment roll shall be filed with the secretary
of the board or other officer who performs the function of
secretary and be open for public inspection.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.121. INTEREST ON ASSESSMENTS; LIEN. (a) Assessments
bear interest at a rate specified by the board that may not
exceed the interest rate permitted by Chapter 1204, Government
Code.
(b) Interest on an assessment between the effective date of the
order or resolution levying the assessment and the date the first
installment and any related penalty is payable shall be added to
the first installment. The interest or penalties on all unpaid
installments shall be added to each subsequent installment until
paid.
(c) An assessment or any reassessment and any interest and
penalties on that assessment or reassessment is a lien against
the property until it is paid.
(d) The owner of any property assessed may pay at any time the
entire assessment against any lot or parcel with accrued interest
to the date of the payment.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.331,
eff. Sept. 1, 2001.
Sec. 375.122. SUPPLEMENTAL ASSESSMENTS. After notice and
hearing in the manner required for original assessments, the
board may make supplemental assessments to correct omissions or
mistakes in the assessment:
(1) relating to the total cost of the improvement project or
services; or
(2) covering delinquencies or costs of collection.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.123. APPEAL. (a) After determination of an
assessment, a property owner may appeal the assessment to the
board. The property owner must file a notice of appeal with the
board not later than the 30th day after the date that the
assessment is adopted. The board shall set a date to hear the
appeal.
(b) The property owner may appeal the board's decision on the
assessment to a court of competent jurisdiction. The property
owner must file notice of the appeal with the court of competent
jurisdiction not later than the 30th day after the date of the
board's final decision with respect to the assessment.
(c) Failure to file either of the notices in the time required
by this section results in a loss of the right to appeal the
assessment.
(d) If an assessment against a parcel of land is set aside by a
court of competent jurisdiction, found excessive by the board, or
determined to be invalid by the board, the board may make a
reassessment or new assessment of the parcel.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.124. APPEAL OF ORDER. A person against whom an
assessment is made by board order may appeal the assessment to a
district court in the county in which the district is located in
the manner provided for the appeal of contested cases under
Chapter 2001, Government Code. Review by the district court is by
trial de novo.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(49),
eff. Sept. 1, 1995.
SUBCHAPTER G. IMPACT FEES
Sec. 375.141. IMPOSITION OF IMPACT FEES. (a) The board may
impose impact fees to pay for the cost of providing improvements
that the district is authorized to provide under this chapter,
including mass transit systems.
(b) The board may provide for impact fees to be paid in periodic
installments and may include an interest charge from the date the
impact fees are imposed to the date the impact fees are paid.
(c) The board may provide interest charges and penalties for
failure to make timely payment and also may levy an amount to
cover delinquencies and expenses of collection.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.142. PROCEDURE FOR ADOPTING IMPACT FEES. Impact fees
shall be adopted under the procedures provided by Chapter 395,
Local Government Code.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
SUBCHAPTER H. EXEMPTIONS
Sec. 375.161. CERTAIN RESIDENTIAL PROPERTY EXEMPT. The board
may not impose an impact fee, assessment, tax, or other
requirement for payment, construction, alteration, or dedication
under this chapter on single-family detached residential
property, duplexes, triplexes, and quadraplexes.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.162. GOVERNMENTAL ENTITIES; ASSESSMENTS. Payment of
assessments by municipalities, counties, other political
subdivisions, and organizations exempt from federal income tax
under Section 501(c)(3), Internal Revenue Code of 1986, shall be
established by contract. Municipalities, counties, and other
political subdivisions may contract with the district under terms
and conditions those entities consider advisable to provide for
the payment of assessments.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.163. RECREATIONAL, PARK, OR SCENIC USE PROPERTY. (a)
Property that comprises three or more acres, separated only by
streets or public rights-of-way, that was used primarily for
recreational, park, or scenic use during the immediately
preceding calendar year and on which money has been spent for
landscaping at any time in an amount that is equal to the lesser
of five years of proposed district assessments on the property or
the proposed amount of the district's assessments on the property
pursuant to a plan of assessment adopted by the board is exempt
from assessment by the district, except with consent of the owner
of the property.
(b) Property is exempt from assessment by the district under
this section during the period that the property is used
primarily for recreational, park, or scenic use in accordance
with this section.
(c) The fact that property is exempt from assessment by the
district may not be construed to be an express or implied
dedication of the property to the public for recreational, park,
scenic, or other public use or constitute evidence of an intent
by the owner of the property to make or offer to make that type
of dedication and does not affect the status of the property as
private property.
(d) If the district levies ad valorem taxes, property that
qualifies for an exemption from assessment under this section
must be taxed by the district at its appraised value for
recreational, park, or scenic use determined in accordance with
Subchapter F, Chapter 23, Tax Code.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.164. RESIDENTIAL PROPERTY EXEMPTED BY BOARD. The board
may exempt residential property from all or a part of the
assessments levied on that property or determine that residential
property will not be benefited by the proposed improvement
project or services.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.165. GOVERNMENTAL ENTITIES; IMPACT FEES. (a) A
municipality, county, or other political subdivision is exempt
from impact fees imposed by the district unless the municipality,
county, or other political subdivision consents to payment of the
fees by official act of its governing body.
(b) Payment of impact fees by a municipality, county, or other
political subdivision must be established by contract.
(c) A municipality, county, or other political subdivision may
contract with the district under terms and conditions the
governmental entity considers advisable to provide for payment of
impact fees.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
SUBCHAPTER I. FUNDS
Sec. 375.181. FUNDS AVAILABLE FOR PAYMENT OF PROJECTS AND
SERVICES. (a) The cost of any improvement project or services,
including interest during construction and costs of issuance of
bonds, may be paid from general or available funds, assessments,
or the proceeds of bonds payable from taxes, revenues,
assessments, impact fees, grants, gifts, contracts, leases, or
any combination of those funds.
(b) During the progress of an improvement project or services,
the board may issue temporary notes to pay the costs of the
improvement project or services and issue bonds on completion.
(c) The costs of more than one improvement project or service
may be paid from a single issue and sale of bonds without other
consolidation proceedings before the bond issue.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.182. PROHIBITED USE OF FUNDS. Funds may not be spent,
an assessment imposed, or a tax levied under this chapter to
finance the opening, reopening, or maintenance of a pass, canal,
or waterway across a barrier island connecting the Gulf of Mexico
with inland waters.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
SUBCHAPTER J. BONDS
Sec. 375.201. GENERAL OBLIGATION AND REVENUE BONDS. For the
payment of all or part of the costs of an improvement project or
services, the board may issue bonds in one or more series payable
from and secured by ad valorem taxes, assessments, impact fees,
revenues, grants, gifts, contracts, leases, or any combination of
those funds. Bonds may be liens on all or part of the revenue
derived from improvements authorized under this chapter,
including installment payments of special assessments or from any
other source pledged to their payment.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.202. TERMS AND CONDITIONS OF BONDS. (a) Bonds may be
issued to mature serially or otherwise not more than 40 years
from their date of issue. Provision may be made for the
subsequent issuance of additional parity bonds or subordinate
lien bonds under terms or conditions that may be stated in the
order or resolution authorizing the issuance of the bonds.
(b) The bonds are negotiable instruments within the meaning and
for purposes of the Business & Commerce Code.
(c) The bonds may be issued registrable as to principal alone or
as to both principal and interest, shall be executed, may be made
redeemable before maturity, may be issued in the form,
denominations, and manner and under the terms, conditions, and
details, may be sold in the manner, at the price, and under the
terms, and shall bear interest at the rates determined and
provided in the order or resolution authorizing the issuance of
the bonds.
(d) Bonds may bear interest and may be issued in accordance with
Chapters 1201, 1204, and 1371, Government Code, and Subchapters
A-C, Chapter 1207, Government Code.
(e) If provided by the bond order or resolution, the proceeds
from the sale of bonds may be used to pay interest on the bonds
during and after the period of the acquisition or construction of
any improvement project to be provided through the issuance of
the bonds, to administrative and operation expenses to create a
reserve fund for the payment of the principal of and interest on
the bonds, and to create any other funds. The proceeds of the
bonds may be placed on time deposit or invested, until needed, in
securities in the manner provided by the bond order or
resolution.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.332,
eff. Sept. 1, 2001.
Sec. 375.203. PLEDGES. (a) The board may pledge all or part of
the income or assessments from improvement projects financed
under this chapter or from any other source to the payment of the
bonds, including the payment of principal, interest, and any
other amounts required or permitted in connection with the bonds.
The pledged income shall be set and collected in amounts that
will be at least sufficient, with any other pledged resources, to
provide for all payments of principal, interest, and any other
amounts required in connection with the bonds and, to the extent
required by the order or resolution authorizing the issuance of
the bonds, to provide for the payment of expenses in connection
with the bonds and to pay operation, maintenance, and other
expenses in connection with the improvement projects authorized
under this chapter.
(b) Bonds may be additionally secured by a mortgage or deed of
trust on real property relating to the facilities authorized
under this chapter owned or to be acquired by the district and by
chattel mortgages, liens, or security interests on personal
property appurtenant to that real property. The board may
authorize the execution of trust indentures, mortgages, deeds of
trust, or other forms of encumbrance to evidence the
indebtedness.
(c) The board may pledge to the payment of the bonds all or any
part of any grant, donation, revenues, or income received or to
be received from the United States government or any other public
or private source.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.204. REFUNDING BONDS. (a) Bonds issued under this
chapter may be refunded or otherwise refinanced by the issuance
of refunding bonds under terms or conditions determined by order
or resolution of the board. Refunding bonds may be issued in
amounts necessary to pay the principal of and interest and
redemption premium, if any, on bonds to be refunded, at maturity
or on any redemption date, and to provide for the payment of
costs incurred in connection with the refunding.
(b) The refunding bonds shall be issued in the manner provided
by this chapter for other bonds.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.205. APPROVAL BY ATTORNEY GENERAL; REGISTRATION. (a)
The district shall submit bonds and the appropriate proceedings
authorizing their issuance to the attorney general for
examination.
(b) If the bonds recite that they are secured by a pledge of
assessments, impact fees, revenues, or rentals from a contract or
lease, the district also shall submit to the attorney general a
copy of the assessment procedures, impact fee procedures,
contract, or lease and the proceedings relating to it.
(c) If the attorney general finds that the bonds have been
authorized and any assessment, contract, or lease has been made
in accordance with law, the attorney general shall approve the
bonds and the assessment, impact fee, contract, or lease, and the
bonds shall be registered by the comptroller.
(d) After approval and registration, the bonds and any
assessment, impact fee, contract, or lease relating to them are
incontestable in any court or other forum for any reason and are
valid and binding obligations for all purposes in accordance with
their terms.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.206. AUTHORIZED INVESTMENTS; SECURITY. (a) District
bonds are legal and authorized investments for:
(1) banks, trust companies, and savings and loan associations;
(2) insurance companies;
(3) fiduciaries, trustees, and guardians; and
(4) all interest and sinking funds and other public funds of the
state and agencies, subdivisions, and instrumentalities of the
state, including counties, municipalities, towns, villages,
school districts, and all other kinds and types of districts,
public agencies, and bodies politic.
(b) District bonds are eligible and lawful security for deposits
of counties, municipalities, towns, villages, school districts,
and all other kinds and types of districts, public agencies, and
bodies politic, to the extent of the market value of the bonds,
when accompanied by any unmatured interest coupons appurtenant to
the bonds.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug.
26, 1991.
Sec. 375.207. MUNICI