Texas Transportation Code Title 6, Chapter 441 - Road Utility Districts

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 441.001 - Definitions
  In this chapter: (1) "Approval statement" means a statement that a governmental entity issues to a petitioner under Section 441.015. (2) "Bonds" includes notes, warrants,...

SUBCHAPTER B CREATION OF DISTRICT

• Texas Section 441.002 - Commission Rules
  The commission may adopt rules to implement this chapter. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.011 - Creation; Purpose
  A district may be created under Section 52, Article III, Texas Constitution, to construct, acquire, improve, and provide financing for a road facility as provided...
• Texas Section 441.012 - Territory
  A district may contain all or part of one or more counties. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.013 - Submission Of Preliminary Plan
  Before submitting a petition to create a district under Section 441.018, a person must submit a preliminary plan for each road facility the district is...
• Texas Section 441.014 - Review Of Preliminary Plan
  (a) Not later than the 120th day and not earlier than the 90th day after the date a preliminary plan is submitted under Section 441.013,...
• Texas Section 441.015 - Granting Or Denying Approval Of Preliminary Plan
  (a) The governing body of a governmental entity that approves a preliminary plan and is willing to accept conveyance of the road facilities on acquisition...
• Texas Section 441.016 - Approval Of Multiple Governmental Entities
  (a) If road facilities constructed, acquired, or improved by a district are to be conveyed to more than one governmental entity, each governmental entity must:...
• Texas Section 441.017 - Approval Of Preliminary Plan For Road Facility In Municipality Or Municipality's Extraterritorial Jurisdiction
  (a) This section applies only to a district that: (1) is located in whole or part in a municipality or the extraterritorial jurisdiction of a...
• Texas Section 441.018 - Petition Required
  To create a district a person must file with the commission a petition requesting creation of the district. Acts 1995, 74th Leg., ch. 165, Sec....
• Texas Section 441.019 - Contents Of Petition
  (a) The petition must include: (1) the district's name; (2) the name of each county in which the district will be located; (3) a description...
• Texas Section 441.020 - Filing Of Preliminary Plan And Approval Statement
  (a) The petition must be accompanied by a copy of: (1) the preliminary plan for any road facility the district is to construct, acquire, and...
• Texas Section 441.021 - Petition Fee
  (a) The petition must be accompanied by a reasonable fee in an amount determined by the commission not to exceed $5,000. The commission may not...
• Texas Section 441.022 - Hearing Required
  (a) As soon as practicable after the petition, preliminary plan, and each required approval statement is filed with the commission, the commission shall call and...
• Texas Section 441.023 - Notice Of Hearing
  (a) In addition to the notice requirements of Chapter 2001, Government Code, and not later than the 10th day before the date of the hearing,...
• Texas Section 441.024 - Granting Or Denying Petition
  As soon as practicable after conclusion of the hearing, the commission shall adopt an order: (1) granting the creation of the district and approving the...
• Texas Section 441.025 - Grounds Requiring Granting Of Petition
  The commission shall grant the creation of the district and approve the plan if it finds that: (1) the creation of the district will benefit...
• Texas Section 441.026 - Grounds Requiring Denial Of Petition
  The commission shall refuse to authorize creation of the district if the commission: (1) finds that creation of the district will benefit none of the...
• Texas Section 441.027 - Other Considerations In Granting Or Denying Petition
  Before the commission adopts an order under Section 441.024, it may: (1) consult with each governmental entity that has submitted an approval statement regarding suggested...
• Texas Section 441.028 - Adjustment Of Boundaries
  If the commission finds that not all of the real property proposed to be included in the district will be benefitted by the creation of...
• Texas Section 441.029 - Temporary Directors
  (a) If the commission authorizes the creation of the district, it shall appoint five persons from those suggested in the petition to serve as temporary...
• Texas Section 441.030 - Confirmation Election
  (a) Not later than the 15th day after the date that all temporary directors have been appointed and have qualified, the temporary directors shall meet...
• Texas Section 441.031 - Notice Of Confirmation Election
  (a) Not later than the 36th day before the date of the confirmation election, the temporary directors shall publish notice of the election once in...
• Texas Section 441.032 - Ballot For Confirmation Election
  (a) To have a person's name printed on the ballot as a candidate for director, the person must file a petition with the temporary directors...
• Texas Section 441.033 - Canvass
  The temporary directors shall canvass the returns and declare the results. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.034 - Effect Of Confirmation Election
  (a) If the majority of the votes received in the election favor creation of the district, the temporary directors shall declare the district created. If...

SUBCHAPTER D GOVERNANCE

• Texas Section 441.035 - Including Bond Proposition At Election
  (a) At the election, the temporary directors may include a separate ballot proposition to approve the issuance by the district of bonds payable from ad...
• Texas Section 441.071 - Board Of Directors
  Except as provided by Section 441.072, a district is governed by a board of directors composed of five members elected as provided by this chapter....
• Texas Section 441.072 - Board Of Directors In Certain Districts
  (a) The governing body of a governmental entity to which a road facility has been conveyed under Section 441.133 is the ex officio board of...
• Texas Section 441.073 - Election Of Directors
  (a) In each year on a uniform election date as provided by Chapter 41, Election Code, an election shall be held in the district to...
• Texas Section 441.074 - Term; Taking Office
  (a) A director serves a two-year term. (b) A director takes office at the first regular meeting of the board after the director's election. Acts...
• Texas Section 441.075 - Compensation
  A director is entitled to receive for the director's services: (1) not more than $25 a day for each meeting of the board that the...
• Texas Section 441.076 - Vacancy
  A vacancy on the board shall be filled for the unexpired term by a person appointed by the remaining directors. Acts 1995, 74th Leg., ch....
• Texas Section 441.077 - Officers
  (a) After each directors' election, the board shall hold a regular meeting at a district office and elect from the directors a presiding officer, assistant...
• Texas Section 441.078 - General Manager
  The board may employ a general manager and delegate to the general manager full authority to manage and operate the affairs of the district, subject...
• Texas Section 441.079 - Other Officers
  The board may appoint or employ an engineer, attorney, or accountant. A person appointed or employed under this section is entitled to compensation provided by...
• Texas Section 441.080 - Personnel
  (a) The board or the general manager, if the district has a general manager, may: (1) employ persons necessary to carry out the business and...
• Texas Section 441.081 - Officer's, Employee's, Or Contractor's Bond
  (a) The board shall require each officer, employee, or person under contract to the district who collects, pays, or handles district money to furnish a...
• Texas Section 441.082 - Meetings
  (a) The board shall hold regular meetings on dates established by board order. (b) The board may hold special meetings at the call of the...
• Texas Section 441.083 - Vote Required For Action
  An action of the board requires the affirmative vote of a majority of the board members. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff....
• Texas Section 441.084 - Records
  The district shall keep a complete written account of all of its proceedings and securely maintain district records. Acts 1995, 74th Leg., ch. 165, Sec....
• Texas Section 441.085 - Office
  The board shall maintain one or more offices for conducting district business. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER E POWERS AND DUTIES

• Texas Section 441.086 - Seal
  The board shall adopt a seal for the district. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.101 - General Powers And Duties
  (a) A district may: (1) acquire a road facility, acquire property for a road facility, and construct or improve a road facility, inside or outside...
• Texas Section 441.102 - Rules
  After notice and hearing, the board shall adopt rules to carry out this chapter, including rules providing procedures for giving notice and holding hearings before...

SUBCHAPTER F ROAD FACILITIES

• Texas Section 441.103 - Suit And Judgment
  (a) A district, through its board and in the name of the district, may sue and be sued in a state court. Process in a...
• Texas Section 441.111 - Construction, Acquisition, Or Improvement Of Road Facility
  (a) A district shall construct, acquire, and improve a road facility included in the plan the commission approves so that the road facility meets the...
• Texas Section 441.112 - Progress Payments
  A contract of the district for the construction or improvement of a road facility may include a procedure for paying for the construction or improvement...
• Texas Section 441.113 - Joint Project
  (a) A district contract with a state agency, a political subdivision, or a corporation created by the commission under Chapter 431 may: (1) provide for...
• Texas Section 441.114 - Competitive Bids
  A district may enter a construction or improvement contract requiring an expenditure of more than $15,000 only after competitive bidding as provided by Subchapter B,...
• Texas Section 441.115 - Contractor Bond
  A contractor shall execute a bond for the amount of the contract price. The bond must be payable to and approved by the board and...
• Texas Section 441.116 - Changes To Road Facilities
  (a) Before a road facility is conveyed to a governmental entity, a district may make a change to the road facility that is not included...

SUBCHAPTER G CONVEYANCE OF ROAD FACILITY

• Texas Section 441.117 - Monitoring Work
  (a) The board controls the construction, acquisition, and improvement of a district road facility until it is conveyed under Section 441.133. The board shall monitor...
• Texas Section 441.131 - Hearing On Final Approval
  (a) After receiving the report under Section 441.117(c), the board shall give notice of and hold a public hearing to determine whether a road facility:...
• Texas Section 441.132 - Decision On Approval
  (a) If the board determines at the end of a hearing under Section 441.131 that the work on the road facility is complete and the...
• Texas Section 441.133 - Conveyance Required
  (a) A district shall convey a road facility to the governmental entity designated in the district's petition to the commission on completion and approval by...
• Texas Section 441.134 - Commission Conveyance Order
  (a) Except as provided by Subsections (b) and (c), the commission by order shall authorize the conveyance of a road facility to a governmental entity...
• Texas Section 441.135 - Transfer Of Ownership And Responsibility
  (a) The governmental entity to which a road facility is conveyed is the owner of and has jurisdiction and sole control over the road facility....
• Texas Section 441.136 - Effect Of Conveyance On Indebtedness
  Conveyance of a road facility to a governmental entity under this subchapter does not affect: (1) the sole responsibility of the district to pay in...

SUBCHAPTER H FINANCIAL PROVISIONS

• Texas Section 441.137 - Partial Conveyance
  This chapter does not prevent conveyance of part of the road facilities that a district constructs in stages. Acts 1995, 74th Leg., ch. 165, Sec....
• Texas Section 441.151 - Fiscal Year
  (a) The board shall establish a fiscal year for the district. (b) The board may not change the fiscal year more than once in a...
• Texas Section 441.152 - Budget
  (a) The board shall prepare and approve an annual budget. (b) The budget must contain a complete financial statement, including a statement of: (1) the...
• Texas Section 441.153 - Audit
  The board shall have an annual audit made of the district's financial condition. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.154 - Depository
  (a) The board shall name one or more banks to serve as depository for district money. (b) The district shall deposit money, other than money...
• Texas Section 441.155 - Payment Of Expenses
  (a) The district's directors may pay: (1) costs and expenses necessarily incurred in the district's creation, organization, and operation; (2) legal fees; and (3) other...
• Texas Section 441.156 - Authorized Investments
  (a) The board may invest the district's money in: (1) a direct obligation of or obligation guaranteed directly or indirectly by the United States; (2)...
• Texas Section 441.157 - Investment Representative
  The board by resolution may provide that an authorized representative of the district may invest the district's money and provide for money to be withdrawn...

SUBCHAPTER I BONDS

• Texas Section 441.158 - Borrowing Money
  The district may borrow money for any purpose authorized under this chapter. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.171 - Issuance Of Bonds
  The board may issue and sell bonds in the name of the district to construct, acquire, or improve district road facilities as provided by this...
• Texas Section 441.172 - Tax Bond Election
  (a) The district may not issue bonds secured by taxes unless the issuance of the bonds is approved at an election ordered by the board...
• Texas Section 441.173 - Form And Provisions Of Bonds
  (a) The district may issue the bonds in various series or issues. The bonds may mature serially or otherwise not more than 50 years after...
• Texas Section 441.174 - Examination
  District bonds and the records relating to their issuance shall be submitted to the attorney general for examination. Acts 1995, 74th Leg., ch. 165, Sec....
• Texas Section 441.175 - Refunding Bonds
  The district may issue refunding bonds. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.176 - Tax Exemption
  District bonds, a transaction relating to the bonds, and a profit made in the sale of the bonds are exempt from state or local taxation....
• Texas Section 441.177 - Bondholder Mandamus
  A holder of a district bond is entitled, in addition to any other right or remedy provided by state law, to a writ of mandamus...
• Texas Section 441.178 - Use Of Bond Proceeds
  The district may use bond proceeds to: (1) construct, acquire, or improve a road facility; (2) pay an expense related to the road facility; (3)...
• Texas Section 441.179 - Disposition Of Proceeds
  The district shall deposit the part of the purchase money of bonds that represents capitalized interest in a special account in the district depository and...

SUBCHAPTER J TAXES

• Texas Section 441.180 - Manner Of Repayment
  (a) The board may provide for the payment of the principal of and interest on the bonds by one or more of the following methods:...
• Texas Section 441.191 - Imposition Of Taxes
  The board may annually impose taxes to pay the principal of and interest on district bonds and the expense of assessing and collecting taxes. Acts...
• Texas Section 441.192 - Maintenance Tax
  (a) A district may impose a maintenance tax to pay the district's operating expenses if, at an election in the district ordered for that purpose,...
• Texas Section 441.193 - Tax Rate
  In setting a tax rate, the board shall consider the district's income from sources other than taxation. On determination of the amount of tax needed...
• Texas Section 441.194 - Appointment Of Tax Assessor-collector
  The board may appoint a tax assessor-collector. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
• Texas Section 441.195 - Imposition Of Taxes During First Year
  The board may impose taxes for the entire year in which the district is created. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept....
• Texas Section 441.196 - All Property Taxed
  The board shall impose taxes on all property in the district subject to taxation. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1,
• Texas Section 441.197 - Fees
  (a) A district may adopt and enforce fees in addition to taxes to provide the district revenue to operate the district and secure district bonds....

SUBCHAPTER K ANNEXATION

• Texas Section 441.198 - Bond Anticipation Notes
  (a) A district may issue bond anticipation notes: (1) for any purpose for which district bonds have been previously voted; or (2) to refund previously...
• Texas Section 441.211 - Petition For Annexation
  (a) Any property owner may file with the board a petition requesting that the real property be annexed to the district. The property is not...
• Texas Section 441.212 - Board Decision
  The board shall hear and consider the petition and may annex the real property to the district if the board considers the annexation to be...
• Texas Section 441.213 - Commission Approval
  A board order annexing real property to the district is final only on written consent of the commission after the commission consults with the governmental...
• Texas Section 441.214 - Recording Petition
  The board shall record a petition that is granted in the office of the county clerk of each county in which annexed real property is...
• Texas Section 441.215 - Assumption Of Debt Share
  The board may require each petitioner to: (1) assume the petitioner's share of any outstanding district bonds or voted but unissued bonds; and (2) authorize...

SUBCHAPTER L DISSOLUTION

• Texas Section 441.216 - Unissued Bonds
  The board may issue bonds that have been voted but not issued at the time of an annexation, regardless of the alteration of the district...
• Texas Section 441.231 - Petition For Dissolution
  (a) A district shall submit to the commission a petition for dissolution of the district after: (1) the district has completed each construction, acquisition, and...
• Texas Section 441.232 - Commission Dissolution Order
  (a) The commission shall order the district dissolved if, after considering the petition and the accompanying evidence, the commission finds that: (1) the work is...
• Texas Section 441.233 - Transfer Of District Money
  (a) On dissolution of the district, the board shall transfer the district's money to the governmental entity to which the road facility was conveyed. If...

Last modified: September 28, 2016