Texas Local Government Code Title 12, Chapter 375 - Municipal Management Districts In General

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 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...
• Texas Section 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...
• Texas Section 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,...

SUBCHAPTER B CREATION OF DISTRICT

• Texas Section 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...
• Texas Section 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:...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...

SUBCHAPTER C BOUNDARIES

• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 375.043 - Annexation
  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...

SUBCHAPTER D ADMINISTRATIVE PROVISIONS; BOARD OF DIRECTORS

• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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)...
• Texas Section 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....
• Texas Section 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...
• Texas Section 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,...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 375.071 - Quorum
  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...

SUBCHAPTER E POWERS AND DUTIES

• Texas Section 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...
• Texas Section 375.091 - General Powers Of District
  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...
• Texas Section 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...
• Texas Section 375.0921 - Authority For Road Projects
  (a) Under Section 52, Article III, Texas Constitution, a district may design, acquire, construct, finance, issue bonds for, improve, operate, maintain, and convey to this...
• Texas Section 375.0922 - Road Standards And Requirements
  (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial...
• Texas Section 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,...
• Texas Section 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.
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...

SUBCHAPTER F ASSESSMENTS

• Texas Section 375.098 - District Act Or Proceeding Presumed Valid
  (a) A governmental act or proceeding of a district is conclusively presumed, as of the date it occurred, valid and to have occurred in accordance...
• Texas Section 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...
• Texas Section 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,...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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....
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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)...
• Texas Section 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:...
• Texas Section 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...

SUBCHAPTER G IMPACT FEES

• Texas Section 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...
• Texas Section 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,...

SUBCHAPTER H EXEMPTIONS

• Texas Section 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),...
• Texas Section 375.161 - Certain Residential Property Exempt
  (a) Except as provided by Subsection (b), the board may not impose an impact fee, assessment, tax, or other requirement for payment, construction, alteration, or...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...

SUBCHAPTER I FUNDS

• Texas Section 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...
• Texas Section 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...

SUBCHAPTER J BONDS

• Texas Section 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,...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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...
• Texas Section 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. This subsection applies only to bonds...
• Texas Section 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...
• Texas Section 375.207 - Municipal Approval
  (a) A district must obtain the approval of the governing body of the municipality in which it is located for bond issues for an improvement...
• Texas Section 375.208 - Commission Approval
  A district must obtain approval of the commission as provided by Chapter 54, Water Code, if it issues bonds to provide water, sewage, or drainage...

SUBCHAPTER K COMPETITIVE BIDDING; DISADVANTAGED BUSINESSES

• Texas Section 375.209 - Taxes For Bonds
  At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a...
• Texas Section 375.221 - Applicability Of Water Districts Law To Competitive Bidding On Certain Contracts
  (a) Except as provided by Subsection (b) of this section, Subchapter I, Chapter 49, Water Code, applies to a district contract for construction work, equipment,...
• Texas Section 375.222 - Disadvantaged Businesses
  (a) A district shall attempt to stimulate the growth of disadvantaged businesses inside its boundaries by encouraging the full participation of disadvantaged businesses in all...

SUBCHAPTER L ELECTIONS

• Texas Section 375.223 - Supersedes Other Law
  This chapter states the required procedures necessary for the district to award contracts and supersedes any law or other requirement with respect to award of...
• Texas Section 375.241 - Time Of Election
  (a) A bond election, maintenance tax election, and any other election held in a district may be held at the same time and in conjunction...
• Texas Section 375.242 - Election Called By Board
  The board may call an election for the purpose of voting on any measure. Added by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff....
• Texas Section 375.243 - Petition Required For Bond Election
  The board may not call a bond election unless a written petition has been filed with the board requesting an election signed by the owners...

SUBCHAPTER M DISSOLUTION

• Texas Section 375.244 - Election To Approve Issuance Of Bonds
  (a) Bonds payable in whole or in part from taxes may not be issued unless approved by a majority or any larger percentage if required...
• Texas Section 375.261 - Dissolution By Board Vote
  Except as limited by Section 375.264, the board of a district by majority vote may dissolve the district at any time. Added by Acts 1991,...
• Texas Section 375.262 - Dissolution By Petition By Owners
  Except as limited by Section 375.264, the board shall dissolve the district on written petition filed with the board by the owners of: (1) 75...
• Texas Section 375.263 - Dissolution By Municipal Ordinance
  (a) The governing body of a municipality in which a district is wholly located, by a vote of not less than two-thirds of its membership,...

SUBCHAPTER N CONTRACTS WITH DISTRICT

• Texas Section 375.264 - Limitation On Dissolution By Board
  A district may not be dissolved by its board if the district has any outstanding bonded indebtedness until that bonded indebtedness has been repaid or...
• Texas Section 375.281 - Contracts With District
  Notwithstanding any other law to the contrary, a state agency, municipality, county, other political subdivision, corporation, individual, or other entity may contract with a district...

SUBCHAPTER O DEFENSE ADJUSTMENT MANAGEMENT AUTHORITY

• Texas Section 375.282 - Strategic Partnership Agreement
  A district with territory in the extraterritorial jurisdiction of a municipality may negotiate and enter into a written strategic partnership with the municipality under Section...
• Texas Section 375.301 - Legislative Findings; Purposes
  (a) The legislature finds that: (1) the closure of certain defense bases has had a negative impact on the economic development of the areas within...
• Texas Section 375.302 - Construction Of Subchapter
  (a) This subchapter shall be liberally construed in conformity with the findings and purposes stated in Section 375.301. (b) Except as provided by this subchapter,...
• Texas Section 375.303 - Definitions
  In this subchapter: (1) "Authority" means a defense adjustment management authority created under this subchapter. (2) "Eligible project" means a program authorized by Section 379A.051...
• Texas Section 375.304 - Eligibility For Creation By Municipality
  (a) The governing body of a municipality by resolution or ordinance may create an authority in an area that is: (1) in the same county...
• Texas Section 375.305 - Hearing On Creation Of Authority
  (a) Not earlier than the 60th day or later than the 30th day before the date the governing body of the municipality creates the authority,...
• Texas Section 375.306 - Board Of Directors
  (a) The board consists of 11 directors. (b) The municipality shall appoint four members of the board. (c) The county in which the municipality is...
• Texas Section 375.307 - Qualifications Of Directors
  (a) At least three directors appointed by the municipality and at least three directors appointed by the county must: (1) reside in the authority; or...
• Texas Section 375.308 - Powers Of The Authority; Municipality
  (a) An authority: (1) may plan, design, implement, develop, construct, and finance eligible projects as defined in this subchapter; and (2) has the powers of...
• Texas Section 375.3085 - Annexation Or Disannexation
  (a) The board may vote to annex or disannex territory to an authority. (b) Not earlier than the 60th or later than the 30th day...
• Texas Section 375.309 - Municipal Annexation Of Area In An Authority
  (a) A municipality that creates an authority under this subchapter may annex all or part of the territory located in the authority under Chapter 43....
• Texas Section 375.310 - Authority Plan
  (a) An authority may only develop or construct public improvements or eligible projects in areas designated in an authority plan approved by the board and...
• Texas Section 375.311 - Sales And Use Tax
  (a) An authority may impose a sales and use tax to support or finance public infrastructure projects and eligible projects authorized under this subchapter if...
• Texas Section 375.312 - Zoning And Planning
  (a) An authority has the power of a municipality under Chapters 211 and 212 in the area of the authority, including an area of the...
• Texas Section 375.313 - Regional Development Agreements
  (a) An authority may enter into regional development agreements with its creating municipality, other municipalities, counties, school districts, institutions of higher education, other political subdivisions,...
• Texas Section 375.314 - Dissolution Of The Authority
  (a) The governing body of the municipality that created an authority under this subchapter may dissolve the authority. (b) Before dissolution, the municipality shall publish...

SUBCHAPTER P CONSOLIDATION OF DISTRICTS

• Texas Section 375.315 - Effectiveness Study; Report
  (a) The board of an authority shall study the effectiveness of the authority. (b) Not later than December 31 of each even-numbered year, the board...
• Texas Section 375.351 - Consolidation Of Districts
  (a) Two or more districts may consolidate into one district under this subchapter if none of the districts to be consolidated has issued bonds or...
• Texas Section 375.352 - Terms And Conditions For Consolidation
  (a) The terms and conditions for consolidation must include: (1) adoption of a name for the consolidated district; (2) the number and apportionment of directors...
• Texas Section 375.353 - Notice And Hearing On Consolidation
  (a) Each district's board shall publish notice and hold a public hearing in its district regarding the terms and conditions for consolidation of the districts....
• Texas Section 375.354 - Governing Consolidated Districts
  (a) After two or more districts are consolidated, they become one district and are governed as one district. (b) During the transition period, the officers...
• Texas Section 375.355 - Debts Of Original Districts
  (a) After two or more districts are consolidated, the consolidated district shall protect the debts of the original districts and shall assure that the debts...
• Texas Section 375.356 - Assessment And Collection Of Taxes
  If the consolidated district has taxing authority, the district shall assess and collect taxes on all property in the district uniformly, for maintenance and operation...
• Texas Section 375.357 - Filing Of Order With County Clerk And Executive Director
  A consolidation order issued by the board shall be kept in the records of the consolidated district, recorded in the office of the county clerk...

Last modified: September 28, 2016