CHAPTER 325. SPORTS FACILITY DISTRICT ESTABLISHED BY COUNTY
LOCAL GOVERNMENT CODE
TITLE 10. PARKS AND OTHER RECREATIONAL AND CULTURAL RESOURCES
SUBTITLE B. COUNTY PARKS AND OTHER RECREATIONAL AND CULTURAL
RESOURCES
CHAPTER 325. SPORTS FACILITY DISTRICT ESTABLISHED BY COUNTY
SUBCHAPTER A. CREATION OF DISTRICT
Sec. 325.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "Director" means a member of the board.
(3) "District" means a sports facility district.
(4) "Sports facility" means a multi-use facility for sport and
recreational activities.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.002. CREATION AND PURPOSE OF DISTRICT. The
commissioners court of a county by order may create a sports
facility district to finance and effect the construction,
acquisition, or operation of a sports facility to serve the
county.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.003. BOUNDARIES. A sports facility district is
composed of the area of the county that created the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
SUBCHAPTER B. DISTRICT ADMINISTRATION
Sec. 325.011. BOARD OF DIRECTORS; TERM OF OFFICE. (a) The
district is governed by a board of directors composed of five
members, with two directors appointed by the commissioners court
of the county, two directors appointed by the governing body of
the municipality having the largest population in the county, and
one director appointed by the governing body of the school
district with the largest number of students in average daily
attendance in the county. The board shall manage the district and
administer this chapter.
(b) Directors are appointed for two-year terms expiring on
February 1 of odd-numbered years. However, the initial directors
may be appointed for terms covering a period of less than two
years.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.012. VACANCY ON BOARD. A vacancy on the board shall be
filled by appointment of the remaining members. The person
appointed to fill the vacancy shall serve only for the unexpired
term.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.013. COMPENSATION. Each director is entitled to
receive an amount set by the board in its budget, not to exceed
$25 a day, for each day the director is actually engaged in
performing services for the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.014. ORGANIZATION OF BOARD. (a) After each directors'
appointment, the board shall hold a regular meeting at the
district office and shall organize by electing from the members
of the board one person to serve as chairman, one person to serve
as vice-chairman, and one person to serve as secretary.
(b) A member selected to serve as chairman, vice-chairman, or
secretary shall serve in that capacity for the member's term of
office on the board.
(c) The chairman shall preside over meetings of the board, and
in the chairman's absence, the vice-chairman shall preside.
(d) The chairman, vice-chairman, and secretary shall perform the
duties and may exercise the powers specifically given them by
this chapter or by orders of the board.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.015. OTHER OFFICERS. (a) The board shall appoint a
person to serve as treasurer for the district.
(b) The persons appointed under this section are entitled to the
compensation provided by the district's budget.
(c) The person appointed as treasurer shall execute a bond in
the amount determined by the board, payable to the district and
conditioned on the faithful performance of the treasurer's
duties. The district shall pay for the bond.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.016. GENERAL MANAGER. (a) The board may employ a
general manager to be the chief administrative officer of the
district and may delegate to the general manager full authority
to manage and operate the district's affairs subject only to
orders of the board.
(b) The general manager shall execute a bond in the amount
determined by the board, payable to the authority and conditioned
on the faithful performance of the general manager's duties. The
authority shall pay for the bond.
(c) The general manager is entitled to receive the compensation
provided by the district's budget.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.017. PERSONNEL. (a) The board or the general manager
at the direction of the board shall employ persons necessary for
the proper handling of district business and operation and may
employ or contract with expert and specialized personnel who are
necessary to carry out this chapter.
(b) The board shall determine the terms of employment and the
compensation to be paid to employees under this section.
(c) The board shall require each employee or person under
contract to the district who collects, pays, or handles any funds
of the district to furnish a bond, payable to the district, for
an amount sufficient to protect the district from financial loss
resulting from actions of the employee or another person. Each
bond shall be conditioned on the faithful performance of the
employee's or person's duties and on accounting for all money and
property of the district in the employee's or person's hands. The
district shall pay for each bond.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.018. OFFICE. The board shall maintain an office within
the boundaries of the district for conducting the business of the
district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.019. MEETINGS OF BOARD. The board shall hold regular
meetings at the district's office at least once each month on a
date established by rule of the board.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.020. MINUTES AND RECORDS. (a) The board shall keep a
complete written account of all its meetings and other
proceedings and shall preserve its minutes, contracts, records,
plans, notices, accounts, receipts, and records of all kinds in a
secure manner at the district's office.
(b) Minutes, contracts, records, plans, notices, accounts,
receipts, and other records are the property of the district and
are subject to public inspection.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.021. SEAL. The board shall adopt a seal for the
district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 325.031. GENERAL POWERS. To carry out this chapter, the
district may:
(1) apply for, accept, receive, and administer gifts, grants,
loans, and other funds available from any source;
(2) enter into contracts with the federal government and its
agencies, the state and its agencies, local governmental entities
including the county, and private entities;
(3) conduct, request, and participate in studies,
investigations, and research relating to providing a sports
facility; and
(4) advise, consult, and cooperate with the federal government
and its agencies, the state and its agencies, local governmental
entities including the county, and private entities.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.032. CONTRACTS. The board may enter into contracts as
provided by this subchapter, and those contracts shall be
executed by the board in the name of the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.033. RULES. The board may adopt rules to carry out
this subchapter.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.034. SUITS; PAYMENT OF JUDGMENTS. (a) The district
may, through its board, sue and be sued in any court of this
state in the name of the district. Service of process in a suit
may be had by serving the general manager.
(b) The courts of this state shall take judicial notice of the
creation of the district.
(c) A court of this state that renders a money judgment against
the district may require the board to pay the judgment from money
in the district depository that is not dedicated to the payment
of any indebtedness of the authority.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.035. INSURANCE. The board may purchase insurance
insuring the district and its employees for any liability
incurred under this chapter and may purchase insurance coverage
to cover losses of district property.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.036. ACQUISITION OF PROPERTY FOR SITE. (a) The
district may acquire by gift, grant, purchase, or condemnation
any land, easements, rights-of-way, and other property interests
necessary to construct or improve a sports facility.
(b) The district may lease property on terms the board
determines advantageous to the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.037. EMINENT DOMAIN. (a) The district may acquire
land for a sports facility by condemnation if the board
determines, after notice and hearing, that it is necessary.
(b) The right of eminent domain must be exercised in the manner
provided by Chapter 21, Property Code, except that the district
is not required to give bond for appeal or bond for costs in a
condemnation suit or other suit to which it is a party and is not
required to deposit double the amount of any award in any suit.
(c) If the district, in the exercise of the power of eminent
domain, makes necessary the relocation, raising, lowering,
rerouting, or changing in grade, or alteration of the
construction of any highway, railroad, electric transmission or
distribution line, telephone or telegraph properties and
facilities, or pipeline, all necessary relocations, raising,
lowering, rerouting, changing in grade, or alteration of
construction shall be accomplished at the sole expense of the
district. "Sole expense" means the actual cost of relocation,
raising, lowering, rerouting, or changing in grade, or alteration
of construction to provide comparable replacement without
enhancement of facilities, after deducting the net salvage value
derived from the old facility.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.038. DISTRICT TO ENTER INTO CONSTRUCTION CONTRACTS.
The district may contract with any person to construct or improve
any part of a sports facility.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.039. BIDS ON CONTRACTS FOR CONSTRUCTION. Construction
contracts requiring an expenditure of more than $15,000 may be
made only after competitive bidding as provided by Subchapter B,
Chapter 271, Local Government Code.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989. Amended by Acts 1993, 73rd Leg., ch. 757, Sec. 16, eff.
Sept. 1, 1993.
Sec. 325.040. CHANGE ORDERS. After a construction contract is
awarded, if the district determines that additional work is
needed or if the character or type of work, facilities, or
improvements should be changed, the board may authorize change
orders to the contract on terms the board approves. A change made
under this section may not increase or decrease the total cost of
the contract by more than 25 percent.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.041. ATTACHMENTS TO CONSTRUCTION CONTRACTS. A
construction contract must contain, or have attached to it, the
specifications, plans, and details for work included in the
contract, and work shall be done according to those plans and
specifications under the supervision of the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.042. EXECUTION AND AVAILABILITY OF CONSTRUCTION
CONTRACTS. (a) A construction contract must be in writing and
signed by an authorized representative of the district and the
contractor.
(b) The contract is a district record and is subject to Section
325.020.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.043. CONTRACTOR'S BOND. (a) A contractor shall
execute a bond. The bond must be in an amount determined by the
board, not to exceed the contract price, payable to the district,
approved by the board, and conditioned on the faithful
performance of the obligations, agreements, and covenants of the
contract.
(b) The bond must provide that if the contractor defaults on the
contract, the contractor will pay to the district all damages
sustained as a result of the default. The district shall deposit
the bond in its depository and shall keep a copy of the bond in
its main office.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.044. MONITORING CONSTRUCTION WORK. (a) The board has
control of any construction, acquisition, or improvement of the
sports facility for which it has contracted. The board shall
determine whether or not the contract is being fulfilled.
(b) The board shall have the construction work inspected by
engineers, inspectors, or other personnel of the district.
(c) During the progress of the construction work, the employees
inspecting the work shall submit to the board written reports
that show whether the contractor is complying with the contract.
(d) On completion of construction work, the employees inspecting
the work shall submit to the board a final detailed written
report including information necessary to show whether the
contractor has fully complied with the contract.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.045. PAYMENT FOR CONSTRUCTION WORK. (a) The district
shall make monthly progress payments under construction contracts
as the work proceeds, or at more frequent intervals as determined
by the board.
(b) If requested by the board, the contractor shall furnish an
analysis of the total contract price showing the amount included
for each principal category of the work, in such detail as
requested, to provide a basis for determining progress payments.
(c) In making progress payments, the district shall retain 10
percent of the estimated amount until final completion and
acceptance of the contract work. However, if the board, at any
time after 50 percent of the work has been completed, finds that
satisfactory progress is being made, it may authorize any of the
remaining progress payments to be made in full. Also, if the work
is substantially complete, the board, if it finds the amount
retained to be in excess of the amount adequate for the
protection of the district, may release to the contractor all or
a part of the excess amount.
(d) On completion and acceptance of each separate project, work,
or other division of the contract, on which the price is stated
separately in the contract, payment may be made without retention
of a percentage.
(e) When construction work is completed according to the terms
of the contract, the board shall draw a warrant on the depository
to pay any balance due on the contract.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.046. CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT, AND
SUPPLIES OVER $5,000. (a) If the estimated amount of a proposed
contract for the purchase of vehicles, equipment, or supplies is
more than $15,000, the board shall ask for competitive bids in
accordance with the bidding procedures provided by the County
Purchasing Act (Subchapter C, Chapter 262, Local Government Code)
except that the bids shall be presented to the board and the
board shall award the contract.
(b) This section does not apply to purchases of property from
public agencies or to contracts for personal or professional
services.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989. Amended by Acts 1993, 73rd Leg., ch. 757, Sec. 17, eff.
Sept. 1, 1993.
Sec. 325.047. FEES AND CHARGES. (a) The board may adopt and
enforce all necessary charges, fees, or rentals for providing any
district facilities or service.
(b) The board may require a deposit for any service or
facilities furnished and may provide that the deposit will bear
interest.
(c) The board may discontinue a facility or service to prevent
an abuse or enforce payment of an unpaid charge, fee, or rental
due the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
SUBCHAPTER D. DISTRICT FINANCES
Sec. 325.061. FISCAL YEAR. (a) The district shall be operated
on the basis of a fiscal year established by the board.
(b) The fiscal year may not be changed more than once in a
24-month period.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.062. ANNUAL AUDIT. Annually, the board shall have an
audit made of the financial condition of the district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.063. ANNUAL BUDGET. (a) The board shall prepare and
approve an annual budget.
(b) The budget must contain a complete financial statement,
including a statement of the:
(1) outstanding obligations of the district;
(2) amount of cash on hand to the credit of each fund of the
district;
(3) amount of money received by the district from all sources
during the previous year;
(4) amount of money estimated to be available to the district
from all sources during the ensuing year;
(5) amount of the balances expected at the end of the year in
which the budget is being prepared; and
(6) estimated amount of revenues and balances available to cover
the proposed budget.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.064. AMENDING BUDGET. After the annual budget is
adopted, the board may amend the budget.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.065. LIMITATION ON EXPENDITURES. Money may not be
spent for an expense not included in the annual budget or an
amendment to it.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.066. SWORN STATEMENT. As soon as practicable after the
close of the fiscal year, the general manager shall prepare for
the board a sworn statement of the amount of money that belongs
to the district and an account of the disbursements of that
money.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.067. DEPOSITORY. (a) The board shall name one or more
banks to serve as depository for district funds.
(b) District funds, other than those transmitted to a bank of
payment for bonds issued by the district, shall be deposited as
received with the depository bank. This subsection does not limit
the power of the board to place a part of the district's funds on
time deposit or to purchase certificates of deposit.
(c) Before the district deposits funds in a bank in an amount
that exceeds the maximum amount secured by the Federal Deposit
Insurance Corporation, the bank must execute a bond or other
security in an amount sufficient to secure from loss the district
funds that exceed the amount secured by the Federal Deposit
Insurance Corporation.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.068. INVESTMENTS. (a) Funds of the district may be
invested and reinvested by the board or its authorized
representative in direct or indirect obligations of the United
States, the state, or any county, municipality, school district,
or other political subdivision of the state.
(b) Funds of the district may be placed in certificates of
deposit of state or national banks or state or federal savings
and loan associations within the state provided that they are
secured in the manner provided for the security of the funds of
counties of the state.
(c) The board, by resolution, may provide that an authorized
representative of the district may invest and reinvest the funds
of the district and provide for money to be withdrawn from the
appropriate accounts of the district for investments on terms the
board considers advisable.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.069. REPAYMENT OF ORGANIZATIONAL EXPENSES. (a) The
board may pay all costs and expenses necessarily incurred in the
creation and organization of the district, legal fees, and other
incidental expenses and may reimburse any person for money
advanced for those purposes.
(b) Payments may be made from money obtained from the sale of
bonds first issued by the district or other revenues of the
district.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.070. BORROWING MONEY. The district may borrow money
for any purpose authorized under this chapter or any combination
of those purposes.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
SUBCHAPTER E. DISTRICT BONDS
Sec. 325.081. ISSUANCE OF BONDS. The board may issue revenue
bonds in the name of the district to acquire land and construct
facilities as provided by this chapter.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.082. MANNER OF REPAYMENT OF BONDS. The board may
provide for the payment of the principal of and interest on the
bonds from revenues of the district, including fees and lease
income.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.083. FORM OF BONDS. (a) A district may issue its
bonds in various series or issues.
(b) Bonds may mature serially or otherwise not more than 50
years from their date and shall bear interest at any rate
permitted by the constitution and laws of the state.
(c) A district's bonds and interest coupons, if any, are
investment securities under the terms of Chapter 8 of the
Business & Commerce Code and may be issued registrable as to
principal or as to both principal and interest and may be made
redeemable before maturity, at the option of the district, or may
contain a mandatory redemption provision.
(d) A district's bonds may be issued in the form, denominations,
and manner and under the terms, conditions, and details, and
shall be signed and executed as provided by the board in the
resolution or order authorizing their issuance.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.084. PROVISIONS OF BONDS. (a) In the orders or
resolutions authorizing the issuance of bonds, the board may
provide for the flow of funds, the establishment and maintenance
of the interest and sinking fund, the reserve fund, and other
funds, and may make additional covenants with respect to the
bonds, the pledged revenues, and the operation and maintenance of
those improvements and facilities, the revenue of which is
pledged.
(b) The orders or resolutions of the board authorizing the
issuance of bonds may also prohibit the further issuance of bonds
payable from the pledged revenue or may reserve the right to
issue additional bonds to be secured by a pledge of and payable
from the revenue on a parity with or subordinate to the lien and
pledge in support of the bonds being issued.
(c) The orders or resolutions of the board issuing bonds may
contain other provisions and covenants as the board may
determine.
(d) The board may adopt and have executed any other proceedings
or instruments necessary and convenient in the issuance of bonds.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.085. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
COMPTROLLER. (a) Bonds issued by a district must be submitted
to the attorney general for examination.
(b) If the attorney general finds that the bonds have been
authorized in accordance with law, the attorney general shall
approve them, and they shall be registered by the comptroller of
public accounts.
(c) After the approval and registration of bonds, the bonds are
incontestable in any court or other forum, for any reason, and
are valid and binding obligations in accordance with their terms
for all purposes.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.086. BONDS AS INVESTMENTS. District bonds are legal
and authorized investments for:
(1) banks;
(2) trust companies;
(3) savings and loan associations;
(4) insurance companies;
(5) fiduciaries;
(6) trustees;
(7) guardians; and
(8) sinking funds of municipalities, counties, school districts,
and other political subdivisions of the state and other public
funds of the state and its agencies, including the permanent
school fund.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.087. BONDS AS SECURITY FOR DEPOSITS. District bonds
are eligible to secure deposits of public funds of the state and
municipalities, counties, school districts, and other political
subdivisions of the state. The bonds are lawful and sufficient
security for deposits to the extent of their value when
accompanied by all unmatured coupons.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.088. TAX STATUS OF BONDS. Bonds issued by a district
under this chapter, any transaction relating to the bonds, and
profits made in the sale of the bonds, are free from taxation by
the state or by any municipality, county, special district, or
other political subdivision of the state.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.089. MANDAMUS BY BONDHOLDERS. In addition to all other
rights and remedies provided by law, if the district defaults in
the payment of principal, interest, or redemption price on its
bonds when due or if it fails to make payments into any fund or
funds created in the orders or resolutions authorizing the
issuance of the bonds or defaults in the observation or
performance of any other covenants, conditions, or obligations
set forth in the orders or resolutions authorizing the issuance
of its bonds, the owners of any of the bonds are entitled to a
writ of mandamus issued by a court of competent jurisdiction
compelling and requiring the district and its officials to
observe and perform the covenants, obligations, or conditions
prescribed in the orders or resolutions authorizing the issuance
of the district's bonds.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989.
Sec. 325.090. APPLICATION OF OTHER LAWS. Bonds of the district
are considered public securities under Chapter 1201, Government
Code.
Added by Acts 1989, 71st Leg., ch. 437, Sec. 1, eff. Aug. 28,
1989. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.323, eff.
Sept. 1, 2001.