reglab/statecodes huggingface dataset:
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter C. Urban Renewal Agency › Section 374.024. Agency Personnel; Report

Sec. 374.024.  AGENCY PERSONNEL;  REPORT.  (a)  An urban renewal agency may employ an executive director, technical experts, and other agents and employees as it determines necessary, and may determine the qualifications, duties, and compensation of those personnel.  An agency may employ or retain its own counsel and legal staff to perform required legal services.
(b)  On or before March 31 of each year, an urban renewal agency shall file with the municipality a report of its activities for the preceding calendar year.  If requested by the governing body of the municipality, the agency shall file a quarterly report.  The report must include a complete financial statement by the agency that shows its assets, liabilities, income, and operating expenses as of the end of the reporting period.
(c)  At the time the report is filed, the agency shall publish notice of the filing in a newspaper of general circulation in the municipality.  The notice must state that the report is available for inspection during business hours in the office of the urban renewal agency and in the office of the municipal secretary.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter C. Urban Renewal Agency › Section 374.025. Approval Requirement

Sec. 374.025.  APPROVAL REQUIREMENT.  An urban renewal agency created under this subchapter may not undertake a renewal or rehabilitation project until the area proposed as a renewal or rehabilitation area and the plan of improvement for the project area are approved by the governing body of the municipality.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter D. Tax Increment Financing for Urban Renewal Projects › Section 374.031. Election Required

Sec. 374.031.  ELECTION REQUIRED.  (a)  A municipality may not use the tax increment method of financing prescribed under this subchapter unless a majority of the qualified voters of the municipality voting on the question approve that method of financing in an election held by the municipality.
(b)  The ballot shall be printed to provide for voting for or against the proposition:  "Use of tax increment financing for urban renewal purposes."
(c)  The election may be held in conjunction with an election held under Section 374.011 or 374.012.
(d)  This referendum is not required if the constitutional amendment on tax increment financing is approved by the voters.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter D. Tax Increment Financing for Urban Renewal Projects › Section 374.032. Tax Increment Fund

Sec. 374.032.  TAX INCREMENT FUND.  On approval of an urban renewal plan by the governing body of a municipality and on approval of tax increment financing as required by Section 374.031, the governing body by resolution shall establish a fund known as the tax increment fund.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter D. Tax Increment Financing for Urban Renewal Projects › Section 374.033. Computation of Tax Increments

Sec. 374.033.  COMPUTATION OF TAX INCREMENTS.  (a)  A tax increment is computed by multiplying the total in property taxes levied and collected by the municipality and all other taxing entities on the taxable real property in an urban renewal project area in a year by a fraction, the numerator of which is equal to that year's market value of all taxable real property in the area minus the tax increment base and the denominator of which is equal to that year's market value of all taxable real property in the area.
(b)  For the purposes of this chapter, only the tax assessor-collector determines the market value of property located in an urban renewal project area during the time that the project exists.  The determination requires the concurrence of the comptroller.  A property owner who is aggrieved by a determination of the tax assessor-collector has the same right of appeal as that provided by law to owners of property not affected by this chapter.
(c)  At the time an urban renewal project is designated by the governing body, the tax assessor-collector shall, with the concurrence of the comptroller, certify to the governing body the market value of property within the boundaries of the urban renewal district.  The tax assessor-collector shall include at its most recently determined market value any property that is taxable at the time that the urban renewal project is designated and shall include at zero any property that is exempt from taxation at the time that the district is designated.
(d)  The tax assessor-collector shall annually certify to the governing body the amount of the captured market value of property within the boundaries of the district and the amount of tax increments produced from that captured market value.  The tax assessor-collector shall make the initial certification not later than one year from the date on which an urban renewal project is designated.
(e)  For any year in which taxes are to be paid into the tax increment fund established under Section 374.032, a taxing entity may not consider any captured market value with respect to an urban renewal project in computing a debt limitation or for any other purpose except to determine the amount to be paid into the tax increment fund.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter D. Tax Increment Financing for Urban Renewal Projects › Section 374.034. Allocation of Tax Collections and Tax Increments; Tax Increment Fund

Sec. 374.034.  ALLOCATION OF TAX COLLECTIONS AND TAX INCREMENTS;  TAX INCREMENT FUND.  (a)  For the purposes of this chapter, the tax assessor-collector has the sole authority and the duty to collect the taxes levied by the municipality and all other taxing entities on property located within an urban renewal project and to allocate taxes and tax increments in the manner required by this chapter.
(b)  Beginning with the first payment of taxes levied by the municipality or other taxing entity after the time an urban renewal project is designated, the receipts from those taxes shall be allocated and paid as provided by this subsection.  The receipts from the property taxes collected that are produced from the tax increment base shall first be allocated and paid to the municipality or appropriate taxing entity.  All tax increments produced from the captured market value of the property located within the urban renewal project district shall then be deposited into the tax increment fund established for the project.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter D. Tax Increment Financing for Urban Renewal Projects › Section 374.036. Disbursements From Tax Increment Fund

Sec. 374.036.  DISBURSEMENTS FROM TAX INCREMENT FUND.  (a)  Money may be disbursed from a tax increment fund only to satisfy the claims of holders of tax increment bonds issued in aid of the urban renewal project with respect to which the fund was established or to pay project costs.  In this section, "project costs" means any expenditure made or estimated to be made, or monetary obligations incurred or estimated to be incurred, by the municipality that are listed in an urban renewal project, plus any incidental costs, less any income or revenues other than tax increments, received or reasonably expected to be received by the municipality in connection with the implementation of the urban renewal plan.  Those project costs include:
(1)  capital costs, including:
(A)  the actual costs of the construction of public works or improvements, new buildings, structures, and fixtures;
(B)  the costs of demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures;
(C)  the costs of acquisition of equipment;  and
(D)  the costs of clearing and grading of land;
(2)  financing costs, including interest paid to holders of tax increment bonds issued to pay for project costs and any premium paid over the principal amount because of the redemption of the obligation before maturity;
(3)  professional service costs, including costs incurred for architectural, planning, engineering, or legal services;
(4)  imputed administrative costs, including reasonable charges for the time spent by municipal employees in connection with the implementation of an urban renewal plan;  and
(5)  organizational costs, including the cost of conducting studies and the cost of informing the public with respect to the creation of urban renewal projects and the implementation of project plans.
(b)  Subject to any agreement with holders of tax increment bonds, money in a tax increment fund may be temporarily invested in the same manner as other municipal funds.
(c)  After project costs and tax increment bonds issued with respect to an urban renewal project have been paid or payment has been arranged, and subject to any agreement with bondholders, any money remaining in a tax increment fund shall be paid over to the municipality and to other taxing entities levying taxes on property within the project in amounts belonging to each entity.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter D. Tax Increment Financing for Urban Renewal Projects › Section 374.037. Municipal Annual Report; Statement

Sec. 374.037.  MUNICIPAL ANNUAL REPORT;  STATEMENT.  (a)  Before July 2 each year, the governing body of the municipality shall submit to the chief executive officer of each taxing entity a report on the status of each urban renewal district.  The report must include statements of:
(1)  the amount and source of revenue in the tax increment fund established under Section 374.032;
(2)  the amount and purpose of expenditures from the fund;
(3)  the amount of principal and interest due on any outstanding bonded indebtedness;
(4)  the tax increment base and the current captured market value retained by the urban renewal project;  and
(5)  the captured market value shared by the municipality and other taxing entities, the total in received tax increments, and any additional information required to demonstrate compliance with the tax increment financing plan adopted by the governing body.
(b)  On or before July 1 each year, the governing body shall publish a statement in a newspaper of general circulation in the municipality showing:
(1)  the tax increment received and expended during the previous year;
(2)  the original market value and captured market value of all property located within the urban renewal project;
(3)  the amount in outstanding indebtedness incurred in aid of the urban renewal project;  and
(4)  any additional information the governing body considers necessary.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.901. Use of Acquired Property for Public Housing

Sec. 374.901.  USE OF ACQUIRED PROPERTY FOR PUBLIC HOUSING.  (a)  Except as provided by Subsection (b), real property acquired under this chapter may not be sold, leased, granted, conveyed, or otherwise made available for public housing.
(b)  Real property acquired under this chapter may be made available for public housing if the municipality holds an election at which a majority of the qualified voters voting in the election approve that use of the property.  The municipality shall conduct the election in the manner provided for an election under Section 374.011.  The ballot shall be printed to provide for voting for or against the proposition:  "Permitting the use of land acquired by urban renewal for public housing."
(c)  If the qualified voters of a municipality have approved the use of land acquired under this chapter for public housing, the municipality may order an election on prohibiting the use of that land for public housing.  The municipality shall conduct the election in the manner provided by Subsection (b), except that the ballot shall be printed to provide for voting for or against the proposition:  "Prohibiting the use of land acquired by urban renewal for public housing."  If a majority of the voters voting in the election favor prohibiting the use of the land for public housing, the prohibition contained in Subsection (a) applies.  An election that results in the prohibition of the use of land for public housing does not affect land that has been made available for public housing at the time of the election.
(d)  If a municipality holds an election under this section, the municipality may not hold another election under this section for one year.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.902. Exercise of Urban Renewal Powers by Certain Counties

Sec. 374.902.  EXERCISE OF URBAN RENEWAL POWERS BY CERTAIN COUNTIES.  (a)  Unless the context clearly requires otherwise, a statement in this chapter that applies to a mayor applies to the county judge of a county exercising powers under this section, a statement that applies to the governing body of a municipality applies to the county's commissioners court, and a statement that applies to a municipality applies to the county.
(b)  A county with a population of more than 250,000 and located along an international border or a county with a population of more than 1.3 million  may exercise the powers provided for municipalities under this chapter with respect to areas of the county that are not within the corporate boundaries of a municipality. A county with a population of more than 250,000 and located along an international border may exercise the powers provided for municipalities under this chapter with respect to areas of the county located within the corporate boundaries of a municipality, if the municipality approves the county's participation in an urban renewal project through an interlocal agreement under Chapter 791, Government Code.  The county may not exercise those powers until the commissioners court of the county adopts a resolution in the manner provided by Section 374.011 for adoption of a resolution by a municipality.  The resolution must be approved at an election held in the county in the manner provided for a municipal election under Section 374.011.  The adoption of the resolution is not approved unless a majority of the voters who vote on the question in the entire county as well as in each municipality in the county approve the adoption of the resolution.  In a municipality that is only partially located in the affected county, only voters who reside in the county may vote.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 2001, 77th Leg., ch. 669, Sec. 105, eff. Sept. 1, 2001.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 224 (H.B. 139), Sec. 1, eff. June 14, 2013.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.903. Urban Renewal in Disaster Area

Sec. 374.903.  URBAN RENEWAL IN DISASTER AREA.  If the governing body of a municipality certifies that an area needs redevelopment or rehabilitation because of a flood, fire, hurricane, earthquake, storm, or other catastrophe for which the governor has certified the state's need for disaster assistance under applicable federal law, the governing body may approve an urban renewal plan and an urban renewal project for the affected area without regard to Section 374.014(d) and to the provisions of this chapter that require a general plan for the municipality and a public hearing on the urban renewal project.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.904. Costs of Relocation

Sec. 374.904.  COSTS OF RELOCATION.  If the relocating, raising, rerouting, changing of grade, or altering the construction of a railroad, electric transmission line, pipeline, or telephone or telegraph property or facility is made necessary by the exercise of powers conferred under this chapter on a municipality, an urban renewal agency, or another public body, the necessary action shall be made at the expense of the public body that made the change necessary.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.905. Municipal Property Exempt From Levy and Execution

Sec. 374.905.  MUNICIPAL PROPERTY EXEMPT FROM LEVY AND EXECUTION.  (a)  All municipal property, including funds, owned or held for the municipality for the purposes of this chapter are exempt from levy and sale by execution.  An execution or other judicial proceeding may not issue against the property, and a judgment against the municipality may not be a charge or lien on that property.  This subsection does not apply to or limit the right of an obligee to pursue any remedies for the enforcement of any pledge or lien given under this chapter by a municipality on its rents, fees, grants, or revenues from urban renewal projects.
(b)  If real property in the urban renewal project area is acquired and is owned as part of the project by a municipality or the urban renewal agency, and the project is not subject to ad valorem taxes because of Subsection (a), the gross project cost may include reasonable payments in lieu of taxes.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.906. Powers of Public Body

Sec. 374.906.  POWERS OF PUBLIC BODY.  (a)  To aid in the planning or implementation of an urban renewal project located within the area in which it is authorized to act, any public body, after determining that a project is beneficial to its residents and after setting terms with or without consideration, may:
(1)  dedicate, sell, convey, or lease any of its interest in any urban renewal project or grant easements, licenses, or other rights and privileges in the project to a municipality or urban renewal agency;
(2)  incur the entire expense of any public improvements made by the public body in exercising the powers granted under this section;
(3)  do anything necessary to aid or cooperate in the planning or implementation of an urban renewal plan;
(4)  lend, grant, or contribute funds to a municipality or an urban renewal agency;
(5)  enter into agreements that may extend over any period with a municipality, urban renewal agency, or other public body relating to action to be taken by the public body under any of the powers granted under this chapter, including furnishing funds or other assistance in connection with an urban renewal project;
(6)  furnish public buildings and public facilities, including parks, playgrounds, recreational facilities, community facilities, educational facilities, water, sewer, or drainage facilities, or other public works;
(7)  furnish, dedicate, pave, install, grade, regrade, plan, or replan streets, roads, sidewalks, ways, or other places;
(8)  plan, replan, zone, or rezone any part of the public body or make exceptions from building regulations;  or
(9)  furnish administrative and other services to the municipality or urban renewal agency.
(b)  If title to or possession of any urban renewal project is held by the federal government, the provisions of an agreement under this section inure to and may be enforced by the federal government.
(c)  A sale, conveyance, lease, or agreement under this section may be made by and between public bodies without appraisal, public notice, advertisement, or public bidding.
(d)  To aid in planning or conducting an urban renewal project through an urban renewal agency under this chapter, a municipality may perform all of the functions that a public body may perform under Subsection (a), including furnishing financial and other assistance.
(e)  For the purposes of this section or to aid in the planning or carrying out of a municipal urban renewal project, a municipality may issue and sell general obligation bonds in addition to bonds issued under Section 374.026.  Bonds issued under this section must be issued in the manner and are subject to the limitations generally provided by the laws of this state for the issuance and authorization of municipal bonds for public purposes.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.907. Title of Purchaser

Sec. 374.907.  TITLE OF PURCHASER.  An instrument executed by a municipality or by an urban renewal agency that purports to convey a right, title, or interest in property under this chapter is conclusively presumed to have been executed in compliance with this chapter as regards the title or other interest of a bona fide purchaser, lessee, or transferee of the property.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.908. Conflict of Interest

Sec. 374.908.  CONFLICT OF INTEREST.  (a)  A public official or employee of a municipality, including an official or employee of an urban renewal agency that exercises urban renewal project powers for a municipality under Subchapter C  or of any other municipal board or commission, may not voluntarily acquire any direct or indirect interest in an urban renewal project, in any property included or planned to be included in an urban renewal project or plan, or in any contract, or contract proposed, in connection with an urban renewal project.
(b)  If the acquisition is not voluntary, the official or employee shall immediately disclose the acquisition of the interest in writing to the governing body of the municipality.  The governing body shall enter the disclosure on its minutes.  Not later than three months after the date on which the involuntary acquisition occurs, the official or employee shall either resign the position with the municipality or divest the interest.
(c)  If the official or employee owns or controls any direct or indirect interest in property that the person knows is included or planned to be included in an urban renewal project, or if the official or employee owned or controlled any such interest at any time during the two-year period preceding the inclusion or planned inclusion of the property in an urban renewal project, the official or employee shall immediately disclose that fact in writing to the governing body of the municipality.  The governing body shall enter the disclosure on its minutes.  The official or employee may not participate in any action by the municipality or by the urban renewal agency that affects the property.
(d)  Any required disclosure made under this section to the governing body of the municipality must also be made at the same time to the urban renewal agency that exercises urban renewal project powers under Section 374.021.  A commissioner or other officer of an urban renewal agency or other board who exercises powers under this chapter may not hold any other public office with the municipality.
(e)  A violation of this section is official misconduct.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.909. Judicial Proceedings

Sec. 374.909.  JUDICIAL PROCEEDINGS.  (a)  An action brought to review, modify, suspend, or satisfy a rule, order, decision, or other act of the governing body of a municipality or other agency shall be trial de novo as that term is used in an appeal from a justice of the peace court to a county court.  In the trial, no presumptions in favor of the order or rule apply, and evidence relating to the validity or reasonableness of the order or rule may not be heard.  The determination of the action shall be made on the facts as in other civil cases, and the procedure used and the determination of orders and judgments to be entered in the trial shall be under the rules of law, evidence, and procedure prescribed under the constitution, statutes, and rules of procedure of this state applicable to civil trials.
(b)  The trial of an action brought under this section shall be strictly de novo and the decision in the action shall be made on the preponderance of the evidence presented at the trial, independent of any administrative action taken by the board and free from the application of the substantial evidence rule stated by the courts relating to orders of other administrative or quasi-judicial agencies.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 374 - Urban Renewal in Municipalities › Subchapter Z. Miscellaneous Provisions › Section 374.910. Effect on Municipal Powers

Sec. 374.910.  EFFECT ON MUNICIPAL POWERS.  (a)  This chapter does not repeal a charter provision adopted by a home-rule municipality to accomplish the same purposes as this chapter.  This chapter is cumulative of municipal powers.
(b)  The powers conferred by this chapter are supplemental to the powers conferred on municipalities by the charters of home-rule municipalities of this state.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.
2023 Texas Statutes › 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 › Section 375.002. Construction of Chapter

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.
2023 Texas Statutes › 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 › Section 375.004. Governmental Agency; Tort Claims

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter B. Creation of District › Section 375.022. Petition

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 the owners of a majority of the assessed value of the real property in the proposed district that would be subject to assessment by the district, according to the most recent certified county property tax rolls.
(c)  The petition must:
(1)  describe the boundaries of the proposed district:
(A)  by metes and bounds;
(B)  by verifiable landmarks, including a road, creek, or railroad line; or
(C)  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" or "Improvement 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.
(d)  The petition may request that a succeeding board of directors be elected under Section 375.0645 instead of being appointed under Section 375.064.
(e)  On receipt by the commission of a petition that complies with this section, the commission shall issue a notice indicating that the petition is administratively complete and may conduct a hearing on the petition in the manner provided by Section 49.011, Water Code, if the commission determines that a hearing is necessary.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 2, eff. September 1, 2011.
Acts 2017, 85th Leg., R.S., Ch. 761 (S.B. 1987), Sec. 3, eff. June 12, 2017.
Acts 2019, 86th Leg., R.S., Ch. 717 (H.B. 304), Sec. 1, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 1, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter B. Creation of District › Section 375.025. Hearing

Sec. 375.025.  HEARING.  (a)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 32(2), eff. June 18, 2023.
(b)  Repealed by Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 32(2), eff. June 18, 2023.
(c)  If the commission finds that the petition is sufficient and conforms to the requirements of Section 375.022(c) and that the district is feasible 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 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.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 2, eff. June 18, 2023.
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 32(2), eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter B. Creation of District › Section 375.026. Order; Initial Directors

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter C. Boundaries › Section 375.041. Commission Order

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter C. Boundaries › Section 375.042. Mistake in Boundary Description

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter C. Boundaries › Section 375.043. Annexation; Notice of Boundaries

Sec. 375.043.  ANNEXATION; NOTICE OF BOUNDARIES.  (a) A district may annex land as provided by Section 49.301 and Chapter 54, Water Code, subject to the approval of the governing body of the municipality.
(b)  Not later than the 90th day after the date a district annexes land under Subsection (a), the district shall provide a description of the metes and bounds of the district, as of the date the annexation takes effect, to each municipality that, on the date the annexation takes effect:
(1)  has territory that overlaps with the district's territory; or
(2)  is adjacent to the district.
(c)  The district is not required to provide the description of the metes and bounds required under Subsection (b) to a municipality that has waived in writing the municipality's right to the description.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 3, eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 793 (H.B. 2018), Sec. 1, eff. September 1, 2019.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter C. Boundaries › Section 375.044. Excluding Territory; Notice of Boundaries

Sec. 375.044.  EXCLUDING TERRITORY; NOTICE OF BOUNDARIES.  (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 signed petition evidencing the consent of the owners of a majority of the acreage in the district, according to the most recent certified tax roll of the county, is filed with the secretary of the board requesting the hearing before the issuance of bonds.
(c)  Not later than the 90th day after the date a district excludes land under this section, the district shall provide a description of the metes and bounds of the district, as of the date the exclusion takes effect, to each municipality that, on the date the exclusion takes effect:
(1)  has territory that overlaps with the district's territory; or
(2)  is adjacent to the district.
(d)  The district is not required to provide the description of the metes and bounds required under Subsection (c) to a municipality that has waived in writing the municipality's right to the description.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 4, eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 793 (H.B. 2018), Sec. 2, eff. September 1, 2019.
Acts 2019, 86th Leg., R.S., Ch. 793 (H.B. 2018), Sec. 3, eff. September 1, 2019.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.061. Number of Directors; Terms

Sec. 375.061.  NUMBER OF DIRECTORS; TERMS.  A district is governed by a board of at least five 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.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 5, eff. September 1, 2011.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.062. Terms of Initial Directors

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.063. Qualifications of Director

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)  an owner of property in the district;
(2)  an owner of stock, whether beneficial or otherwise, of a corporate owner of property in the district;
(3)  an owner of a beneficial interest in a trust that owns property in the district; or
(4)  an agent, employee, or tenant of a person covered by Subdivision (1), (2), or (3).
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 717 (H.B. 304), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.064. Recommendations for Succeeding Board

Sec. 375.064.  RECOMMENDATIONS FOR SUCCEEDING BOARD.  (a)  The initial and each succeeding board of directors shall, and the owners of a majority of the assessed value of property subject to assessment by the district may, 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 under Subsection (a).
(c)  If the governing body is not satisfied with the recommendations submitted under Subsection (a), 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)  Repealed by Acts 2011, 82nd Leg., R.S., Ch. 912, Sec. 20, eff. September 1, 2011.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 20, eff. September 1, 2011.
Acts 2019, 86th Leg., R.S., Ch. 717 (H.B. 304), Sec. 3, eff. September 1, 2019.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.0645. Election of Directors

Sec. 375.0645.  ELECTION OF DIRECTORS.  (a)  This section applies only to a district created by order of the commission providing for an elected board of directors as requested in the petition requesting creation of the district as provided by Section 375.022(d).
(b)  The commission shall appoint the initial directors under Section 375.026, and subsequent directors are elected in the manner provided by Subchapter D, Chapter 49, Water Code.
(c)  An elected director is entitled to receive fees of office and reimbursement for actual expenses as provided by Section 49.060, Water Code.
(d)  Sections 375.069 and 375.070 do not apply to an elected director.
(e)  Section 49.052(f), Water Code, does not exempt an elected director from disqualification under that section.
(f)  Sections 375.064, 375.161, and 375.243 do not apply to a district with an elected board.
Added by Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 3, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.065. Removal of Director

Sec. 375.065.  REMOVAL OF DIRECTOR.  The governing body of the municipality after notice and hearing may remove a director appointed by the municipality 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.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 4, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.066. Board Vacancy

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.067. Director's Bond and Oath

Sec. 375.067.  DIRECTOR'S BOND AND OATH.  (a)  As soon as practicable after a director is appointed or elected as provided by this subchapter, 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.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 5, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.068. Officers

Sec. 375.068.  OFFICERS.  After directors are appointed or elected as provided by this subchapter 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.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 6, eff. June 18, 2023.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.069. Board Position Not Civil Office of Emolument

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.070. Compensation of Directors; Reimbursement of Expenses

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.
2023 Texas Statutes › Local Government Code › Title 12 - Planning and Development › Subtitle A - Municipal Planning and Development › Chapter 375 - Municipal Management Districts in General › Subchapter D. Administrative Provisions; Board of Directors › Section 375.071. Quorum

Sec. 375.071.  QUORUM.  (a)  One-half of the serving directors constitutes a quorum, and a concurrence of a majority of a quorum of directors is required for any official action of the district.
(b)  If at least two-thirds of the directors execute a written consent at any time, a majority of a quorum at a board meeting may authorize the levy of assessments, the levy of taxes, the imposition of impact fees, or the issuance of bonds. A director may execute a written consent outside of a board meeting.
Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 6, eff. September 1, 2011.
Acts 2023, 88th Leg., R.S., Ch. 1009 (H.B. 2815), Sec. 7, eff. June 18, 2023.