CHAPTER 257. ROAD DISTRICTS

TRANSPORTATION CODE

TITLE 6. ROADWAYS

SUBTITLE C. COUNTY ROADS AND BRIDGES

CHAPTER 257. ROAD DISTRICTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 257.001. ROAD DISTRICT OR PRECINCT OPERATING UNDER ROAD

BOND LAW DESIGNATED BODY CORPORATE; POWER TO SUE AND BE SUED.

(a) A county commissioners precinct or justice precinct

operating under Chapter 1471, Government Code, or a road district

is a body corporate and may sue or be sued in the same manner as

a county.

(b) A commissioners precinct or justice precinct operating under

Chapter 1471, Government Code, or a road district may not be held

liable for a tort except as provided by Chapter 101, Civil

Practice and Remedies Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.376, eff. Sept.

1, 2001.

Sec. 257.002. CONTRACTS OF ROAD DISTRICT OR PRECINCT OPERATING

UNDER ROAD BOND LAW. (a) A county commissioner is the ex

officio road superintendent with power to enter into a contract

in an amount that is not more than $50 on behalf of:

(1) a road district located in the commissioner's precinct;

(2) a justice precinct operating under Chapter 1471, Government

Code, and located in the commissioner's precinct; or

(3) the commissioner's precinct if it is operating under Chapter

1471, Government Code.

(b) A contract made under Subsection (a) must be approved by the

commissioners court.

(c) A contract in an amount that is more than $50 made on behalf

of a road district or precinct described by Subsection (a) must

be awarded by the commissioners court of the county in which the

road district or precinct is located.

(d) The commissioners court may enter into a contract with an

engineer, financial advisor, attorney, or other consultant as the

court determines appropriate to act on behalf of the county or

the road district or precinct.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.377, eff. Sept.

1, 2001.

Sec. 257.003. ACQUISITION OF ROADS. (a) Subject to Subsection

(b), a road district established pursuant to Section 52, Article

III, Texas Constitution, may agree to:

(1) reimburse a private person for money spent to construct a

road or improvement that has been or will be dedicated or

otherwise transferred to public use; or

(2) purchase a road or improvement constructed by a private

person.

(b) A road district may agree to make a reimbursement or

purchase under Subsection (a) only if:

(1) the construction was carried out through the award of

contracts in substantial conformity with the bid procedures

applicable to a county;

(2) the construction was performed in accordance with the road

standards and rules of the county in which the road or

improvement is located; and

(3) the road or improvement was not opened for public use or

accepted by official action of a governmental entity before the

district agreed to the reimbursement or purchase.

(c) A construction contract awarded for the construction of a

road for which reimbursement is to be paid or that is to be

purchased under Subsection (a) must be approved by the

commissioners court of the county in which the road is or will be

situated. The amount paid for the reimbursement or purchase:

(1) may include all construction costs, including engineering,

legal, financing, and other expenses incident to the

construction; and

(2) may be paid with proceeds from the sale of the district's

bonds or from any other money available to the district.

(d) In addition to the procedure provided by Subsection (a), a

road district may acquire, pay for the construction of, or agree

to reimburse the costs of construction or acquisition of a road,

including engineering, legal, financing, and other expenses

incident to the construction or acquisition, at a price not to

exceed the replacement cost of the road or road improvements as

determined by the commissioners court.

(e) A road district bond election may state as one of its

purposes the construction or acquisition of, or reimbursement of

expenses for construction or acquisition of, roads for an amount

that may not be more than the cost of construction on the basis

of competitive bid contracts plus engineering, legal, financing,

and other expenses incident to the construction, improvement, or

acquisition.

(f) A road district may enter into an agreement to use the

proceeds of a subsequent bond sale for reimbursing all

construction costs, engineering and other expenses, and financing

costs incident to construction or acquisition of a road to a

private person who constructs or acquires a facility that

benefits the road district pursuant to the agreement. The

agreement may provide the terms and conditions under which the

road district will be required to accept the dedication or

transfer of the road or road improvements to the district for the

benefit of the public and to pay or reimburse the cost of

constructing or acquiring the road. A road district may assign

all or any portion of its rights or obligations under the

agreement to any other political subdivision authorized by law to

own, operate, or maintain the road that is the subject of the

agreement.

(g) In this section, "construction" includes improvement and

landscaping.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.004. ROAD DISTRICT SIGNS. (a) A road district to

which this chapter applies shall post signs indicating the

existence of the district at two or more principal entrances to

the district so that they are readable by traffic entering the

district. The signs must be posted not later than the 60th day

after the date the district is established and must be maintained

as long as the district exists.

(b) Consistent with state and local rules governing signs, the

signs must be permanent and contain the name of the district in

at least three-inch letters. The signs may contain other

information as determined by the commissioners court.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.005. NOTICE TO PURCHASERS OF REAL PROPERTY IN ROAD

DISTRICT. (a) Before the final closing of a sale of real

property located in a road district, the seller shall furnish to

the buyer of the real property a written notice, executed and

acknowledged by the seller, that:

(1) contains a statement that the real property is located in

the road district and includes the name of the district;

(2) states the total amount of any bonds, notes, or other

obligations that have been approved and authorized to be issued

by the district but have not been issued; and

(3) states the total amount of any bonds, notes, or other

obligations payable from property taxes that have been issued and

sold by the district, if any, and the district's current tax rate

if this subdivision applies.

(b) The seller shall provide to the road district a copy of the

notice.

(c) The notice is sufficient if it substantially complies with

this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.006. APPLICABILITY OF CHAPTER TO COUNTY OPERATING UNDER

SPECIAL ROAD TAX LAW. A county operating under a special road

tax law may take any action authorized by this chapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 23, eff. Sept. 1,

1999.

SUBCHAPTER B. ROAD DISTRICT WITHIN COUNTY

Sec. 257.021. ESTABLISHMENT OF ROAD DISTRICTS. (a) The

commissioners court of a county by order may establish one or

more road districts in the county as provided by Section 52,

Article III, Texas Constitution. The order must define the

boundaries of the road district. A road district is a

governmental entity and body politic.

(b) A road district created under this section may include:

(1) all or part of a municipality; or

(2) another road district or a precinct or political subdivision

of the county for which road bonds have been approved by the

voters and issued as provided by Section 52, Article III, Texas

Constitution.

(c) Before establishing a road district under this section, the

commissioners court shall conduct a public hearing on the matter.

Notice of the hearing shall be given in the manner provided for

notice of an election by Section 1471.018, Government Code.

(d) The establishment of a defined road district or the issuance

of road district bonds in a county with outstanding countywide

road bonds is not prevented by this chapter or Subchapters A-C,

Chapter 1471, Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.378, eff. Sept.

1, 2001.

Sec. 257.022. ABOLITION OF ROAD DISTRICT. (a) The

commissioners court by order may abolish a road district after a

public hearing on the matter if:

(1) the road district has no outstanding public securities, as

that term is defined by Section 1201.002, Government Code; or

(2) all the public securities of the district have been assumed

and exchanged for county bonds under Subchapter D, Chapter 1471,

Government Code.

(b) The road district ceases to exist when the commissioners

court adopts the order abolishing the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.379, eff. Sept.

1, 2001.

Sec. 257.023. EXCLUSION OF CERTAIN TERRITORY OF EXISTING

DISTRICTS FROM ROAD DISTRICT. (a) A county commissioners court

may exclude from a proposed road district any territory that is

part of or adjacent to an existing road district that includes

all or part of a levee improvement district, drainage district,

or other improvement district created under a law authorized by

Section 52, Article III, Texas Constitution. The excluded

territory shall continue to bear and pay its proportion of

existing debt created for the construction of macadamized,

graveled, or paved roads or turnpikes or in aid of these

purposes, but may not be used to pay debt created for those

purposes after the territory is excluded from the new road

district.

(b) Except as specifically permitted by Sections 1471.086 and

1471.087, Government Code, a road district may not contain a

fractional part of a preexisting road district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.380, eff. Sept.

1, 2001.

Sec. 257.024. EXCLUDING REAL PROPERTY FROM ROAD DISTRICT. (a)

Before the commissioners court orders an election to authorize

bonds for a road district, the commissioners court, on its own

motion or on receipt of a written petition from a property owner

seeking to exclude the property owner's real property from the

district, may hold a hearing on the question of excluding

specified real property from the district.

(b) If the commissioners court determines that a hearing should

be held, the court shall give notice of the time and place of the

hearing in the manner provided for notice of a hearing for the

creation of a road district.

(c) The court shall exclude real property from the district if:

(1) the retention of the real property in the district's taxing

jurisdiction would:

(A) be arbitrary and unnecessary to protect the public welfare;

(B) impair the value of the real property; and

(C) arbitrarily impose a confiscatory burden on the real

property;

(2) the retention of the real property in the district and the

extension to it of the benefits, service, or protection of the

district's roads would create an undue and uneconomical burden on

the remainder of the district; or

(3) the real property cannot be benefited by the district's

proposed improvements.

(d) If, after considering the engineering information and other

evidence presented at the hearing, the commissioners court

determines that a ground for exclusion of the real property

exists, the court shall enter an order:

(1) excluding the real property from the road district; and

(2) redefining the boundaries of the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.025. ADDING REAL PROPERTY TO ROAD DISTRICT BY PROPERTY

OWNER PETITION. (a) One or more persons may file a petition

with the commissioners court of a county requesting that real

property owned by the person or persons be annexed to a road

district. The petition must describe the real property by:

(1) metes and bounds; or

(2) lot and block number if there is a recorded plat of the real

property.

(b) Before the real property may be annexed to the road

district, each petitioner must agree to:

(1) assume the petitioner's share of:

(A) any outstanding bonds, notes, or other obligations of the

district; and

(B) any bonds of the district payable in whole or part from

taxes that have been approved by the voters but have not been

issued; and

(2) authorize the commissioners court to impose a tax on the

petitioner's property in each year in which the bonds, notes, or

other obligations payable in whole or part from taxes are

outstanding to pay the petitioner's share of the indebtedness.

(c) The commissioners court shall hold a hearing to consider the

petition and shall give notice of the hearing in the manner

required for a hearing for creation of a road district.

(d) The commissioners court may annex the real property

described by the petition to the district if the court determines

that:

(1) it is to the advantage of the real property to be annexed to

the district; and

(2) the real property already in the district will not be

injured by the annexation.

(e) If each petitioner agrees to the items specified by

Subsection (b), the commissioners court may issue any unissued

bonds that have been approved by the voters of the district even

though the boundary of the district has been altered by the

annexation since the bonds were approved.

(f) If no qualified voter resides on the real property proposed

to be annexed to the district, the commissioners court may order

the annexation of the real property without further proceedings.

(g) If a qualified voter resides on the real property to be

added and there are any outstanding bonds, notes, or other

obligations of the district that are payable from taxes, the

commissioners court shall order an election to be held in the

district, including the real property to be annexed to the

district, on the question of the assumption by the real property

to be annexed of the district's outstanding and approved but

unissued bonds, notes, or other obligations and of the taxes

imposed to pay those obligations. Notice of the election shall be

given and the election shall be held as provided by law for a

bond election in the district.

(h) The order annexing the real property to the district shall

provide that the annexation does not take effect unless a

majority of the votes cast at the election held under Subsection

(g) favor the assumption of the district's outstanding bonds,

notes, and other obligations and the imposition of a tax to pay

those obligations.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.026. ADDING TERRITORY TO ROAD DISTRICT BY PETITION OR

ON COMMISSIONERS COURT MOTION. (a) The commissioners court of a

county on its own motion may hold a hearing on the question of

annexing a defined area to a road district and shall hold a

hearing on the question on receipt of a petition requesting the

annexation signed by:

(1) owners of real property the taxable value of which is a

majority of the taxable value of real property in the defined

area according to the county tax roll; or

(2) at least 50 property owners in the defined area if there are

more than 50 property owners in the defined area.

(b) The commissioners court shall give notice of the hearing in

the manner required for notice of a hearing on creation of a road

district.

(c) If after the hearing the commissioners court finds that

annexation of the defined area to the district is feasible and

practical and would benefit the area and the district, the court

may annex the area to the district. The order annexing the area

to the district is not required to include all of the real

property described by a petition requesting the annexation if the

court finds that a modification is necessary or desirable.

(d) The annexed area is subject to any bonds, notes, or other

obligations issued or taxes imposed before the area was annexed

to the district.

(e) The commissioners court shall, in the order annexing the

area to the district, order an election to be held in the

district, including the area to be annexed, on the questions

whether the annexed area should assume:

(1) the bonds, notes, or other obligations issued or taxes

imposed by the district before the area was annexed to the

district; and

(2) its part of the bonds of the district payable in whole or

part from taxes that have been approved by the voters but have

not been issued, and the imposition of the district's ad valorem

tax on the taxable property in the annexed area for the payment

of the bonds.

(f) At the election held under Subsection (e) the commissioners

court, in a separate proposal, may submit the question whether

the court should be authorized to issue bonds for the

construction, purchase, maintenance, and operation of

macadamized, graveled, or paved roads and turnpikes, or in aid of

those purposes, in the annexed area.

(g) Notice of an election held under this section shall be given

and the election shall be held in the manner provided by law for

a bond election in the district.

(h) If the majority of the votes received in the election favor

the assumptions proposed under Subsection (e), the district may

issue its approved but unissued bonds even though the boundaries

of the district have been changed by the annexation since the

original election approving the bonds.

(i) The commissioners court shall provide in its order annexing

an area to the district that the annexation does not take effect

unless the voters approve the assumptions proposed under

Subsection (e).

(j) The commissioners court may provide in its order annexing an

area to the district that the annexation does not take effect

unless the voters approve an issuance of bonds proposed under

Subsection (f).

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER C. ROAD DISTRICT IN ADJOINING COUNTIES

Sec. 257.101. ROAD DISTRICT AUTHORIZED; NATURE OF DISTRICT. (a)

The qualified voters of two or more adjoining counties or

portions of adjoining counties in the manner provided by this

subchapter may combine those counties or portions of counties to

establish a defined road district for the purpose of

constructing, maintaining, and operating macadamized, graveled,

or paved roads and turnpikes, or in aid of those activities.

(b) A road district established under this subchapter is a

defined district for purposes of the Texas Constitution and is a

body corporate.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.102. PETITION TO ESTABLISH ROAD DISTRICT. (a) A

petition to establish a road district under this subchapter must

be signed by at least 50 registered voters or a majority of the

registered voters, whichever is less, in each county or in each

portion of a county of which less than the entire county is

included in the proposed district.

(b) The petition must:

(1) describe in general terms the road or roads proposed to be

constructed and any municipalities to be connected by the road or

roads;

(2) name each county proposed to be included in the road

district and define the portion of each county proposed to be

included if less than the entire county is proposed to be

included in the district; and

(3) request each commissioners court to order an election to

determine whether the county or defined portion of the county is

to be included in the proposed district.

(c) A separate petition for the establishment of the road

district must be presented to the commissioners court of each

county or portion of a county in the proposed district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.103. CHANGE IN ROADS DESIGNATED IN PETITION. The

commissioners court of a county may change a road designated in

the petition calling for the establishment of a road district

under this subchapter if at the hearing on the petition the court

finds that the change:

(1) is necessary and practicable;

(2) would be a public benefit; and

(3) would be beneficial to all taxable property in the county.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.104. NOTICE OF HEARING ON PETITION. (a) On

presentation of a petition under Section 257.102, the

commissioners court of each county shall order the time for the

petition to be heard on a date not less than 15 or more than 30

days after the date of the order. The hearing shall be held at

the regular meeting place of the commissioners court in the

county courthouse.

(b) The county clerk shall immediately issue notice of the time

and place of the hearing. The notice must:

(1) inform all interested persons of the time and place of the

hearing and of their right to appear at the hearing and support

or protest the ordering of the election; and

(2) set forth in substance the contents of the petition,

including the name of each county proposed to be included in

whole or part in the road district.

(c) Before the 10th day before the date of the hearing, the

clerk shall post a copy of the notice:

(1) at the courthouse door; and

(2) at a public place in each commissioners precinct contained

in whole or part in the proposed road district.

(d) Not later than the fifth day before the date of the hearing,

the clerk shall publish the notice in a newspaper of general

circulation published in the county. If a newspaper is not

published in the county, the posting of the notice as provided by

Subsection (c) is sufficient.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.105. HEARING ON PETITION. (a) At the time and place

set for the hearing of a petition presented under Section

257.102, or on a subsequent date set at that time, the

commissioners court of each county in the proposed road district

shall hear the petition and all matters relating to the proposed

district.

(b) Any interested person may appear before the court in person

or by attorney and support or protest the establishment of the

proposed road district.

(c) The court may adjourn the hearing from day to day and from

time to time as it considers necessary.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.106. ORDER OF ELECTION TO ESTABLISH DISTRICT. (a) The

commissioners court of each county included in whole or part in a

proposed road district may issue and record in its minutes an

order directing that an election be held within the county or the

defined portion of the county if on the hearing of the petition

to establish the district the court finds that:

(1) the petition is signed by the required number of registered

voters of the county or defined portion of the county;

(2) notice of the hearing was given as required by law; and

(3) the establishment of the proposed district by the

consolidation of the county or defined portion of the county with

the other counties or defined portions of counties named in the

proceedings would be for the benefit of all taxable property in

the county or defined portion of the county.

(b) The court shall order the election to be held on the next

uniform election date authorized by Subchapter A, Chapter 41,

Election Code, that occurs after the 15th day after the date of

the order. An election must be held on the same date in each

county in the proposed road district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.107. ELECTION TO ESTABLISH DISTRICT. (a) Notice of an

election to establish a road district under this subchapter shall

be given in the same manner and for the same time required for

notices of the hearing on the petition to establish the district.

(b) The conduct of the election and the canvassing and making

the returns is governed by general law when not in conflict with

this section.

(c) The officer directed by the commissioners court of each

county to administer the election in the county shall make

returns of the election to the commissioners court and return all

ballot boxes to the clerk of the commissioners court.

(d) The commissioners court of each county or portion of a

county in the proposed road district, on receiving the returns of

the election, shall canvass the returns and certify the result of

the election in the county or defined portion of the county to

the county judge of the county in the proposed district with the

greatest population. On receipt of the returns of the election in

the different counties or defined portions of counties in the

proposed district, the county judge designated to canvass the

votes shall canvass the votes and certify the result of the

election to each county included in whole or part in the proposed

district.

(e) If a majority of the votes received in each county or

defined portion of a county favor the consolidation of the

counties or portions of counties into a defined road district,

the commissioners court of each county or portion of a county

shall declare the district established, and the district shall be

known as "_______ Counties Road District of Texas," listing in

alphabetical order each county included in whole or part in the

district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.108. EX OFFICIO DISTRICT DIRECTORS. (a) The following

are ex officio directors of a road district established under

this subchapter:

(1) for a county that is wholly included in the district, the

county judge and each county commissioner; and

(2) for a county only part of which is included in the district,

the county judge and the county commissioner of each commissioner

precinct included in whole or part in the district.

(b) The ex officio directors have the same power and authority

in the management of the affairs of the road district as the

commissioners court of a county has in a road district located

entirely in the county.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.109. MEETINGS OF COMMISSIONERS OR DIRECTORS. A joint

meeting of the commissioners courts or ex officio directors of a

road district established under this subchapter may be adjourned

from day to day or time to time as the courts consider necessary

and advisable.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.110. DISTRICT TREASURER OR DEPOSITORY. (a) At a joint

meeting held for that purpose in the county having the greatest

population, the commissioners of the counties included in whole

or part in a road district established under this subchapter

shall select a treasurer or depository for the district. The

treasurer or depository must be a bank, banking corporation, or

individual banker resident in the district.

(b) The treasurer or depository is governed by the laws and

subject to the penalties applicable by law to a depository of

county money.

(c) The selected treasurer or depository may not receive any

road district money until the treasurer or depository gives a

surety bond to the district:

(1) in an amount equal to the amount of district money

deposited;

(2) made with a corporate surety authorized to do business in

the state; and

(3) conditioned on the safekeeping and paying of the district

money.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.111. PURCHASE OF IMPROVED ROADS. (a) A road district

established under this subchapter may purchase or take over an

improved road previously constructed by a county or by another

road district.

(b) A district may purchase or take over a road under Subsection

(a) only in the manner provided by Subchapter D, Chapter 1471,

Government Code, except that a petition is not required to be

filed.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.381, eff. Sept.

1, 2001.

Sec. 257.112. BONDS AND TAX AUTHORIZED. As provided by Section

52, Article III, Texas Constitution, to construct, maintain, and

operate macadamized, graveled, or paved roads or turnpikes, or in

aid of those activities, two or more adjoining counties or

portions of adjoining counties through a road district

established under this subchapter may:

(1) issue bonds in any amount not to exceed one-fourth of the

taxable value of the real property located in the district;

(2) impose an annual ad valorem tax to pay the interest on the

bonds; and

(3) provide a sinking fund for the redemption of the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.113. ORDER FOR BOND ELECTION. (a) The members of the

commissioners courts of the counties included in whole or part in

a road district established under this subchapter at a joint

meeting held in the county having the greatest population may

order an election to authorize bonds for the district.

(b) The members of the commissioners courts shall order the

election to be held on a date authorized by Section 41.001,

Election Code. Notice of the election shall be given as provided

by Chapter 4, Election Code.

(c) At the election, the voters shall be permitted to vote for

or against the following proposition:

"Authorizing the _______________ Counties Road District of Texas

to issue the bonds of the district in the total sum of

$__________ and to levy annually ad valorem taxes on all taxable

property in the district to pay the interest on the bonds and

create a sinking fund to redeem the principal at maturity for the

purpose of the construction, maintenance, and operation of

macadamized, graveled, or paved road and turnpikes or in aid of

these purposes within the district.

"The roads to be constructed from the proceeds of the sale of the

bonds and the amount apportioned to each road is as follows:

"(Here set out the road or roads as described in the order and

notice of the election to determine the establishment of the

district and the amount to be expended on each road or roads.)"

(d) If the proposition provides for the road district to

purchase or take over improved roads constructed by an included

county or another road district included in the road district,

the election order must conform to the requirements of Section

1471.081, Government Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.382, eff. Sept.

1, 2001.

Sec. 257.114. NOTICE OF BOND ELECTION. (a) A certified copy of

an order for an election made under Section 257.113 shall be sent

to the county clerk of each county included in whole or part in

the road district.

(b) After the clerk receives the certified copy of the election

order, the commissioners court of each county at a regular or

special session of the court held in the respective counties

shall give notice of the proposed bond election to be held on the

date provided by the order. The notice must state the time and

place at which the election is to be held and state in substance

the contents of the order.

(c) All other proceedings relating to the question submitted

must be in accordance with the provisions of Chapter 1471,

Government Code, that apply to county road bond elections.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.383, eff. Sept.

1, 2001.

Sec. 257.115. DECLARATION OF BOND ELECTION RESULTS. The ex

officio directors of a road district established under this

subchapter by order shall declare the result of a district bond

election and certify the result to the county judge of the county

in the road district that has the greatest population.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.116. ORDERS TO ISSUE BONDS AND LEVY TAX. If in a bond

election held under this subchapter two-thirds of the votes

received in each county or portion of a county included in the

road district favor issuing the bonds, the commissioners court of

each county or portion of a county, as soon after the declaration

of the result of the election as practicable, shall pass the

orders necessary to issue the bonds and impose taxes to pay the

bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.117. LEVY OF BOND TAX. (a) Each year, the

commissioners courts of the counties included in whole or part in

a road district established under this subchapter shall determine

the amount of the district bond tax to be imposed.

(b) The commissioners court of each county shall impose the

portion of the bond tax imposed by the road district in that

county at the time and in the manner that other taxes are imposed

in the county by the commissioners court of the county. The

imposition of the tax is governed by the law governing the

imposition of county taxes.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.118. ISSUANCE OF BONDS. (a) Bonds issued by a road

district under this subchapter shall be:

(1) issued in the name of the road district;

(2) signed by the county judge of each county included in whole

or part in the district; and

(3) countersigned by the clerk of each of those counties.

(b) The seal of the commissioners court of each county included

in whole or part in the district must be impressed on the bonds.

(c) The bonds must be attested by the treasurer or depository of

the district.

(d) As nearly as practicable, the bonds shall be issued in the

form used for the issuance of county bonds, except as provided by

this section.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.119. SALE OF BONDS. (a) The commissioners courts of

the counties included in whole or part in a road district

established under this subchapter, at a joint meeting held in the

county having the greatest population, shall advertise bonds

issued under this subchapter for sale in an advertisement or

notice published in a newspaper of general circulation published

in the district not later than the 10th day before the date set

for the sale.

(b) The commissioners courts shall convene in joint meeting in

the county having the greatest population on the date specified

for the sale in the notice to consider bids for the purchase of

the bonds. The courts may reject any bid.

(c) The commissioners courts shall sell some or all of the bonds

at that joint meeting at a price permitted by Chapter 1204,

Government Code. The purchase money shall be deposited with the

road district's treasurer or depository to the credit of the

available road fund of the road district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.384, eff. Sept.

1, 2001.

Sec. 257.120. BOND PROCEEDS. (a) On the issuance and sale of

road district bonds under this subchapter, the commissioners

court of each county included in whole or part in the road

district may adopt any necessary order setting aside an amount of

the proceeds from the sale of the bonds as the ex officio

directors of the road district consider necessary to be used for

the maintenance, repair, and upkeep of the district's roads.

(b) The necessary expense incident to the issuance of the bonds

may be paid out of the proceeds from the sale of the bonds.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.121. APPLICATION OF COUNTY BOND LAWS. Except as

otherwise provided by this subchapter, the general laws governing

county road bonds authorized under Section 52, Article III, Texas

Constitution, apply to the authorization, issuance, approval,

certification, registration, sale, and payment of bonds issued

under this subchapter.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.122. INTEREST RATE AND MATURITY OF BONDS. Bonds issued

under this subchapter shall mature not later than the 40th

anniversary of the date of their issuance and shall bear interest

at a rate not to exceed that provided by Chapter 1204, Government

Code.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.385, eff. Sept.

1, 2001.

Sec. 257.123. BOND RECORDS. (a) The commissioners court of

each county included in whole or part in a road district

established under this subchapter shall make a record of the

district bonds issued under this subchapter.

(b) The county clerk of each county shall keep the record. The

record must show:

(1) the numbers of the bonds;

(2) the amount of each bond;

(3) the interest rate of each bond;

(4) the date of issue of each bond; and

(5) when each bond is due and where it is payable.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Sec. 257.124. BOND WARRANTS. (a) The treasurer or depository

of a road district established under this subchapter shall pay

out the proceeds from the sale of the district's bonds on

warrants drawn on the available road fund and issued by the

county clerk of the county in the road district having the

greatest population. A warrant must be countersigned by the

county judge of each district included in whole or part in the

road district.

(b) A warrant may be issued only in payment of a certified

account approved by the ex officio directors of the district.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 257.901. LAND DEVELOPMENT IN ROAD DISTRICT WITH OUTSTANDING

INDEBTEDNESS. (a) In this section:

(1) "Affected area" means the area:

(A) of an assessment road district; and

(B) within 1,500 feet of the boundary of an assessment road

district.

(2) "Assessment road district" means a road district that has

refinanced outstanding bonded indebtedness under Subchapter C,

Chapter 1471, Government Code.

(3) "Land development" means any action necessary or customary

in connection with the construction of improvements on real

property.

(4) "Regulation" means any ordinance, rule, regulation, or

application or interpretation of an ordinance, rule, regulation,

or application.

(b) After March 9, 1999, a political subdivision shall pay the

outstanding bonded indebtedness of an assessment road district if

the political subdivision changes regulations regarding land

development that apply to more than 20 percent of the land in the

assessment road district in a manner that reduces:

(1) the amount of impervious cover, as defined in the

regulations; or

(2) the total allowable floor area of a building on developed

land.

(c) Subsection (b) does not apply to an affected land owner who

agrees in writing to the regulation.

(d) On request of a person who owns land in an affected area,

the governing body of an assessment road district by resolution

may annex any part of the person's land that is within two miles

of the district's boundaries.

(e) After annexation of the land under this section, the

governing body of the district shall reapportion the remaining

assessment on the owner's land on a per acre basis for all of the

owner's land in the district.

(f) Chapter 245, Local Government Code, controls to the extent

of any conflict with this section.

(g) This section expires March 10, 2019.

Added by Acts 2001, 77th Leg., ch. 1420, Sec. 19.003(a), eff.

Sept. 1, 2001.