Texas Special District Local Laws Code Title 4, Chapter 3902 - Club Municipal Management District No. 1

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 3902.001 - Definitions
  In this chapter: (1) "Board" means the district's board of directors. (2) "Capital improvement plan" means a plan created under Section 3902.110. (3) "City" means...
• Texas Section 3902.002 - Creation And Nature Of District
  The district is a special district created under Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution. Added by Acts 2011,...
• Texas Section 3902.003 - Primary Purpose; Mixed-use Residential And Commercial Development
  The primary purpose of the district is to facilitate the construction and continued maintenance of a quality mixed-use residential and commercial development to benefit city...
• Texas Section 3902.004 - Additional Purposes; Legislative Findings
  (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas...
• Texas Section 3902.005 - Findings Of Benefit And Public Purpose
  (a) The district is created to serve a public use and benefit. (b) All land and other property included in the district will benefit from...
• Texas Section 3902.006 - Initial District Territory
  (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) The boundaries and field notes...
• Texas Section 3902.007 - Eligibility For Inclusion In Special Zones
  (a) All or any part of the area of the district is eligible to be included in: (1) a tax increment reinvestment zone created under...
• Texas Section 3902.008 - Applicability Of Municipal Management District Law; Purpose
  (a) Except as provided by this chapter, Chapter 375, Local Government Code, applies to the district. (b) The district is created to accomplish the purposes...

SUBCHAPTER B BOARD OF DIRECTORS

• Texas Section 3902.009 - Liberal Construction Of Chapter
  This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. Added by Acts 2011, 82nd Leg., R.S., Ch....
• Texas Section 3902.051 - Governing Body; Terms
  The district is governed by a board of five directors who serve staggered terms of four years, with two or three directors' terms expiring May...
• Texas Section 3902.052 - Qualifications
  (a) To be qualified to serve as a director, a person must: (1) meet the qualifications prescribed by Section 375.063, Local Government Code; (2) be...
• Texas Section 3902.053 - Appointment Of Directors
  (a) In this section, "homeowner" means a person who owns residential property in the district that is used for personal, family, or household purposes. (b)...
• Texas Section 3902.054 - Ex Officio Directors
  (a) The governing body of the city may appoint up to three persons to serve ex officio as nonvoting directors. (b) An ex officio director...
• Texas Section 3902.055 - Vacancy
  The remaining directors shall appoint a person to fill a vacancy for the remainder of the unexpired term. Added by Acts 2011, 82nd Leg., R.S.,...
• Texas Section 3902.056 - Compensation; Expenses
  (a) The board may compensate each director in an amount not to exceed $50 for each board meeting. The total amount of compensation for each...

SUBCHAPTER C POWERS AND DUTIES

• Texas Section 3902.057 - Initial Directors
  (a) On or before September 15, 2011, the governing body of the city shall appoint two initial directors. (b) On or before September 15, 2011,...
• Texas Section 3902.101 - General Powers And Duties
  The district has the powers and duties necessary to accomplish the purposes for which the district is created. Added by Acts 2011, 82nd Leg., R.S.,...
• Texas Section 3902.102 - Improvement Projects
  The district may provide, or it may enter into contracts with a governmental or private entity to provide, the improvement projects described by Subchapter C-1...
• Texas Section 3902.103 - Development Corporation Powers
  If approved by the governing body of the city, the district, using money available to the district, may exercise the powers given to a development...
• Texas Section 3902.104 - Water District Powers
  The district has the powers provided by the general laws relating to conservation and reclamation districts created under Section 59, Article XVI, Texas Constitution, including...
• Texas Section 3902.105 - Road District Powers
  The district has the powers provided by the general laws relating to road districts and road utility districts created under Section 52(b), Article III, Texas...
• Texas Section 3902.106 - Public Improvement District Powers
  The district has the powers provided by Chapter 372, Local Government Code, to a municipality or county. Added by Acts 2011, 82nd Leg., R.S., Ch....
• Texas Section 3902.107 - Contract Powers
  The district may contract with a governmental or private entity, on terms determined by the board, to carry out a power or duty authorized by...
• Texas Section 3902.108 - Agreements; Grants
  (a) As provided by Chapter 375, Local Government Code, the district may make an agreement with or accept a gift, grant, or loan from any...
• Texas Section 3902.109 - Development Agreement
  The city may enter into an agreement with each person who owns land in the district at the time the agreement is executed that relates...
• Texas Section 3902.110 - Capital Improvement Plan
  (a) The district shall prepare a plan that includes: (1) a description of each improvement project to be constructed in the district; (2) the timing...
• Texas Section 3902.111 - Membership In Charitable Organizations
  The district may join and pay dues to a charitable or nonprofit organization that performs a service or provides an activity consistent with the furtherance...
• Texas Section 3902.112 - Parking Facilities
  (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities, including...
• Texas Section 3902.113 - Adding Or Removing Territory; City Approval
  As provided by Subchapter J, Chapter 49, Water Code, the board may add territory to the district, subject to Section 54.016, Water Code, or remove...
• Texas Section 3902.114 - No Eminent Domain Power
  The district may not exercise the power of eminent domain. Added by Acts 2011, 82nd Leg., R.S., Ch. 1195 (H.B. 3859), Sec. 1, eff. September...

SUBCHAPTER C-1 IMPROVEMENT PROJECTS AND SERVICES

• Texas Section 3902.115 - No Toll Roads
  The district may not construct, acquire, maintain, or operate a toll road. Added by Acts 2011, 82nd Leg., R.S., Ch. 1195 (H.B. 3859), Sec. 1,...
• Texas Section 3902.151 - Improvement Projects And Services
  The district may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service using money available to the district, or...
• Texas Section 3902.152 - Board Determination Required
  The district may not undertake an improvement project unless the board determines the project: (1) is necessary to accomplish a public purpose of the district;...
• Texas Section 3902.153 - City Approval Required
  The district may not undertake an improvement project unless the district obtains approval from the governing body of the city. Added by Acts 2011, 82nd...
• Texas Section 3902.154 - Financial Plan
  (a) The district shall prepare a financial plan that details the cost, method of financing, cost of financing, and feasibility of financing for each improvement...
• Texas Section 3902.155 - Development Agreement, Capital Improvement Plan, And Financial Plan Required
  The district may not undertake an improvement project or spend money for a project or service, including an economic development project or an expenditure for...
• Texas Section 3902.156 - Location Of Improvement Project Or Service
  An improvement project or service may be located: (1) in the district; or (2) outside the district if the project or service is necessary to...
• Texas Section 3902.157 - City Requirements
  (a) An improvement project in the city must comply with city ordinances and construction codes. (b) The district may not provide, conduct, or authorize any...
• Texas Section 3902.158 - Improvement Project And Service In Definable Area
  The district may undertake an improvement project or service that confers a special benefit on a definable area in the district and impose a special...
• Texas Section 3902.159 - Contracts
  A contract to design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project is considered a contract for a good or service under...

SUBCHAPTER D DIVISION OF DISTRICT INTO MULTIPLE DISTRICTS

• Texas Section 3902.160 - City Ordinance, Order, Or Resolution
  (a) Unless the district and city agree otherwise, the city may by ordinance, order, or resolution: (1) require that title to all or any portion...
• Texas Section 3902.201 - Division Of District; Prerequisites; City Approval
  The district may be divided into two or more new districts only if: (1) the district has no outstanding bonded debt; and (2) three-fourths of...
• Texas Section 3902.202 - Law Applicable To New District
  This chapter applies to any new district created by division of the district, and a new district has all the powers and duties of the...
• Texas Section 3902.203 - Division Procedures
  (a) The board, on its own motion or on receipt of a petition signed by an owner of real property in the district, may adopt...
• Texas Section 3902.204 - Notice And Recording Of Order
  Not later than the 30th day after the date of an order dividing the district, the district shall: (1) file the order with the Texas...

SUBCHAPTER E GENERAL FINANCIAL PROVISIONS; ASSESSMENTS

• Texas Section 3902.205 - Contract Authority Of New Districts
  (a) Except as provided by Subsection (b), the new districts may contract with each other for any matter the boards of the new districts consider...
• Texas Section 3902.251 - Disbursements And Transfers Of Money
  The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money. Added...
• Texas Section 3902.252 - Money Used For Improvements Or Services
  The district may undertake and provide an improvement project or service authorized by this chapter using any money available to the district. Added by Acts...
• Texas Section 3902.253 - Borrowing Money; Obligations
  (a) The district may borrow money for a district purpose without holding an election by issuing bonds, notes, time warrants, or other obligations, or by...
• Texas Section 3902.254 - Development Agreement, Capital Improvement Plan, And Financial Plan Required
  (a) Before the district borrows money or issues an obligation under Section 3902.253, the district must submit and the governing body of the city must...
• Texas Section 3902.255 - Quarterly Reporting
  (a) After the district incurs an obligation described by Section 3902.253 and until all obligations of the district are paid in full or otherwise satisfied,...
• Texas Section 3902.256 - Assessments
  The district may impose an assessment on property in the district to pay for an obligation described by Section 3902.253 in the manner provided for:...
• Texas Section 3902.257 - Notice Of Assessments
  (a) The board shall annually file written notice with the secretary of the city that specifies the assessments the district will impose in the district's...
• Texas Section 3902.258 - Bonds For Road Projects
  At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects may not exceed one-fourth...
• Texas Section 3902.259 - City Not Required To Pay District Obligations
  The city is not obligated to pay bonds, notes, or any other obligation of the district, including bonds or debt payable from assessments or other...
• Texas Section 3902.260 - Tax And Assessment Abatements
  The district may designate reinvestment zones and may grant abatements of a tax or assessment on property in the zones. Added by Acts 2011, 82nd...
• Texas Section 3902.261 - Residential Property Not Exempt
  Section 375.161, Local Government Code, does not apply to the district. Added by Acts 2011, 82nd Leg., R.S., Ch. 1195 (H.B. 3859), Sec. 1, eff....
• Texas Section 3902.262 - No Impact Fees
  The district may not impose an impact fee. Added by Acts 2011, 82nd Leg., R.S., Ch. 1195 (H.B. 3859), Sec. 1, eff. September 1, 2011.

SUBCHAPTER F DISSOLUTION

• Texas Section 3902.263 - No Taxation Power
  The district may not impose a tax, including a sales tax and an ad valorem tax. Added by Acts 2011, 82nd Leg., R.S., Ch. 1195...
• Texas Section 3902.301 - Automatic Dissolution
  The district dissolves and this chapter expires on September 1, 2018, if: (1) the district does not have outstanding debt or other obligations; and (2)...
• Texas Section 3902.302 - Dissolution By City
  (a) The city may dissolve the district by ordinance. (b) The city may not dissolve the district until: (1) the district's outstanding debt or contractual...
• Texas Section 3902.303 - Collection Of Assessments And Other Revenue
  (a) If the dissolved district has bonds or other obligations outstanding secured by and payable from assessments or other revenue, the city succeeds to the...
• Texas Section 3902.304 - Assumption Of Assets And Liabilities
  (a) After dissolution, the city assumes the obligations of the district, including any bonds or other debt payable from assessments or other district revenue. (b)...

Last modified: September 28, 2016