CHAPTER 441. ROAD UTILITY DISTRICTS
TRANSPORTATION CODE
TITLE 6. ROADWAYS
SUBTITLE J. ROAD UTILITY DISTRICTS
CHAPTER 441. ROAD UTILITY DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 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, or other evidence of
indebtedness.
(3) "District" means a road utility district.
(4) "Governmental entity" means a municipality, a county, or the
department.
(5) "Road" means a graveled or paved road or turnpike that
serves or is intended to serve as an arterial or main feeder road
under standards the commission prescribes.
(6) "Road facility" means:
(A) a road constructed, acquired, or improved by a district; or
(B) property, an easement, or works constructed, acquired, or
improved by a district and necessary or appropriate for or in aid
of the improvement of a river, creek, or stream to prevent
overflow or the construction and maintenance of a pool, lake,
reservoir, dam, canal, or waterway for the purpose of drainage,
if the property, easement, or works is related to or in
furtherance of the construction, acquisition, or improvement of a
road.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
SUBCHAPTER B. CREATION OF DISTRICT
Sec. 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 by this chapter.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
Sec. 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 to construct, acquire, or improve to each
governmental entity to which the road facility is to be conveyed.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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, the
governmental entity shall determine whether:
(1) the plan meets the governmental entity's requirements; and
(2) to approve the plan and accept the conveyance of the road
facilities as provided by this chapter.
(b) The governmental entity shall consult with the person
submitting the plan and, with that person's agreement, make
changes necessary to make the plan comply with the governmental
entity's requirements. The governmental entity's requirements may
include specific designations of the characters of title to be
required on conveyance.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 or completion of construction or
improvement shall:
(1) issue an order approving the plan; and
(2) give the person who submitted the plan a written approval
statement.
(b) An approval statement must state that the governmental
entity approves the preliminary plan and will accept conveyance
of the road facilities on acquisition or on completion of
construction or improvement.
(c) If the governmental entity does not approve the plan and is
not willing to accept a conveyance of the road facilities, the
governing body of the governmental entity shall issue an order
denying approval of the preliminary plan and refusing conveyance
of the road facilities.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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:
(1) approve the plans for the road facilities to be conveyed to
it; and
(2) issue an approval statement for those road facilities.
(b) The procedures in this chapter relating to approval and
conveyance of a road facility to a governmental entity apply to
each governmental entity to which a road facility is to be
conveyed.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 municipality; and
(2) constructs, acquires, or improves a road facility that is to
be:
(A) located in a municipality or a municipality's
extraterritorial jurisdiction; and
(B) conveyed to the county under Section 441.133.
(b) A county may not approve a preliminary plan or issue an
approval statement for a road facility to which this section
applies unless the person who seeks the approval agrees in
writing to comply with the municipality's requirements for
construction, acquisition, or improvement of a road facility in
the municipality or the municipality's extraterritorial
jurisdiction. The county shall consult the municipality to ensure
that the preliminary plan complies with those requirements.
(c) Not later than the 55th day after the date the plan is filed
with the county, a municipality must complete its review of the
plan and issue to the county and the person who submitted the
plan a written statement approving the plan as complying with the
municipality's requirements. Except as provided by Subsection
(d):
(1) the county may not issue an approval statement under Section
441.015 until it receives the written statement from each
municipality; and
(2) the person petitioning for creation of the district must
submit the municipality's written statement in addition to other
required documents.
(d) If a municipality does not timely file its statement with
the county:
(1) the municipality waives its right to review and approve the
plan;
(2) the county may issue the approval statement without the
municipality's statement;
(3) the person who submitted the plan may petition for creation
of the district without the municipality's statement; and
(4) the county shall issue to the person who submitted the plan
a letter explaining that the municipality's statement was not
timely filed, and the person shall submit the letter with the
petition to the commission.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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. 1, eff. Sept. 1, 1995.
Sec. 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 of the district's boundaries;
(4) each petitioner's name;
(5) a statement that the petitioners hold title to all real
property in the district, as shown on county tax rolls;
(6) the names of suggested temporary directors;
(7) a brief description of any road facility that the district
is to construct, acquire, or improve;
(8) the amount of bonds estimated to be necessary to finance the
proposed construction, acquisition, or improvement;
(9) the current appraised value of all real property in the
district;
(10) the name of each governmental entity to which the district
will convey a road facility; and
(11) other information that the commission considers necessary.
(b) The petition must be signed by the persons holding title to
all real property in the district, as shown on county tax rolls.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 improve; and
(2) each required approval statement.
(b) The commission may not consider a petition or approve a
district unless each required approval statement for the district
is filed with the commission.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 refund
the fee or any part of the fee.
(b) The commission shall use the fee to pay costs of processing
the petition.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 hold a hearing on the petition and preliminary plan.
(b) The hearing may be in Travis County or in a county in which
all or part of the district is to be located.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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, the commission shall
give written notice of the hearing to:
(1) the commissioners court of each county in which all or part
of the district is to be located; and
(2) the governing body of each municipality in which or in the
extraterritorial jurisdiction of which the district is to be
located.
(b) Once a week for two consecutive weeks the commission shall
publish notice of the hearing in a newspaper of general
circulation in each county in which the district is to be
located. The first publication must be not later than 30 days
before the date of the hearing.
(c) Not later than 30 days before the date of the hearing, the
commission shall mail notice of the hearing by first class mail
to each owner of real property to be included in the district, as
shown on the county tax rolls.
(d) A county, municipality, or property owner receiving notice
under Subsection (a) or (c) may appear at the hearing through an
official representative or in person and may present testimony
and evidence relating to the district.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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
plan; or
(2) denying the petition and disapproving the plan.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 the real property
in the district;
(2) each proposed road facility is feasible, practicable, and
necessary and will benefit the district and the real property in
the district;
(3) each governmental entity to which a road facility is to be
conveyed has approved the preliminary plan for the road facility;
(4) the person seeking approval has agreed in writing to comply
with the requirements of each municipality in which or
extraterritorial jurisdiction of which a road facility is to be
located, if the road facility is to be conveyed to a county;
(5) each governmental entity to which a road facility is to be
conveyed has agreed, by issuing an approval statement, to accept
the conveyance; and
(6) the district will be financially able to issue and pay its
bonds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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
real property to be included in the district; or
(2) is unable to make any of the findings listed in Sections
441.025(2)-(6).
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 changes in the plan;
(2) suggest or direct that the petitioners change the plan for a
district road facility, including deleting a road facility, so as
to make the plan acceptable to the commission; and
(3) consider the environmental effects of the proposals in the
preliminary plan.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 the district, the
commission shall:
(1) make a finding on the lack of benefit;
(2) exclude from the district real property that will not be
benefitted by creation of the district; and
(3) redefine the proposed district's boundaries according to the
commission's changes.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 directors of the district. Not later than the 10th day
after the date of appointment, a temporary director shall take
the oath of office.
(b) Temporary directors serve until the directors are elected
and have qualified for office.
(c) If a person appointed by the commission fails to qualify or
if a vacancy occurs in the office of temporary director, the
commission shall appoint another person to serve as temporary
director.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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
and order an election in the boundaries of the proposed district
to confirm the creation of the district and elect the directors
of the district.
(b) Section 41.001, Election Code, does not apply to an election
under this section.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 one or more newspapers of general circulation in the proposed
district.
(b) The notice must state:
(1) the date and places for holding the election;
(2) the proposition to be voted on; and
(3) the candidates for director.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 not
later than the 31st day before the date of the election.
(b) The ballot for the election shall be printed to provide for
voting for or against the creation of the district and include
the names of the persons who have filed as candidates for
director.
(c) A voter is entitled to vote for five candidates for
director.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
Sec. 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 the majority of the votes received in the election
are against the creation of the district, the temporary directors
shall declare the district defeated. The temporary directors
shall enter the results in their minutes and file a copy of the
results with the commission.
(b) If the district is created, the temporary directors shall
declare the five candidates who received the highest number of
votes to be elected as the directors of the district. If two or
more candidates tie for the fifth highest number of votes, the
temporary directors shall select the fifth director by lot from
those tying for that position.
(c) The two directors elected with the fewest votes serve until
the qualification of two directors elected at the next regular
directors' election. The three other directors serve until the
qualification of three directors elected at the second regular
directors' election.
(d) If the district is defeated, another election may not be
held to create the district, except that owners of the real
property in the proposed district may petition the commission
again for creation of a district.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 valorem taxes.
(b) If a bond proposition is to be included, the election notice
under Section 441.031 must state the bond proposition.
(c) The bond proposition shall be printed to provide for voting
for or against the issuance of bonds and the imposition of ad
valorem taxes for payment of the bonds.
(d) The temporary directors shall file a copy of the bond
election results in their records and with the commission.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER D. GOVERNANCE
Sec. 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.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 directors of the district making the transfer if:
(1) all district road facilities are conveyed only to that
governmental entity;
(2) all construction, acquisition, and improvement of road
facilities provided for in the plan approved by the commission
have been completed;
(3) the board of directors consents to the transfer of powers
and duties to the governing body of the governmental entity;
(4) the governing body of the governmental entity consents to
assuming the administrative powers and duties of the district;
and
(5) the commission approves the transfer of the powers and
duties.
(b) On the effective date of the transfer of the powers and
duties, the board of directors from whom the transfer is made is
dissolved. On and after that date the administrative powers and
duties transferred are the powers and duties of the governing
body of the governmental entity.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 elect the
appropriate number of directors.
(b) To have a person's name printed on the ballot at a
directors' election as a candidate for director, the person must
file a petition with the secretary of the district not later than
the 36th day before the date of the election.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 director attends; and
(2) reimbursement for expenses incurred while engaged in the
director's duties for the district as approved by the board.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 presiding
officer, secretary, and treasurer. A person elected under this
subsection serves until the first regular board meeting following
the next directors' election, and shall perform the duties and
may exercise the powers specifically provided by this chapter or
the board's orders.
(b) The presiding officer shall preside over board meetings. If
the presiding officer is absent, the assistant presiding officer
shall preside.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 only to
board orders. The general manager is the chief administrative
officer of the district.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 the district's budget.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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
operation of the district; and
(2) employ or contract with personnel necessary to carry out
this chapter.
(b) The board shall determine the employees' terms of employment
and compensation.
(c) A majority of the members of the board or the general
manager, if the district has a general manager, may dismiss an
employee.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 bond.
(b) The bond must be:
(1) payable to the district;
(2) for an amount sufficient to protect the district from
financial loss resulting from the person's actions; and
(3) conditioned on the faithful performance of the person's
duties and on accounting for all district money and other
property under the person's control.
(c) The district shall pay for the bond.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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
presiding officer or on request of three members of the board.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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. Sept. 1, 1995.
Sec. 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. 1, eff. Sept. 1, 1995.
Sec. 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.
Sec. 441.086. SEAL. The board shall adopt a seal for the
district.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER E. POWERS AND DUTIES
Sec. 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 district boundaries, as provided by this chapter;
(2) provide financing for a road facility or for construction,
acquisition, or improvement of a road facility from money
available to the district under this chapter;
(3) advise any person and consult, cooperate, or enter an
agreement with any person;
(4) apply for, accept, receive, and administer a gift, grant,
loan, or money available from any source;
(5) reimburse a private entity for money spent to construct a
road or improvement that has been or will be dedicated or
otherwise transferred to public use, or purchase a road or
improvement constructed by a private entity, regardless of
whether the construction occurs before or after the creation of
the district; and
(6) exercise other powers and duties to accomplish the purposes
for which the district was created.
(b) The board may contract with any person to carry out the
powers and duties under this chapter. The board shall execute the
contract in the name of the district.
(c) The district may assume a contract or other obligation of a
previous owner of a road facility or property acquired by the
district and perform the contract or obligation in the same
manner as any other purchaser or assignee, if the contract or
obligation was created as provided by the competitive bidding
requirements of Subchapter B, Chapter 271, Local Government Code.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 the
board.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 suit may be served on the presiding
officer of the board.
(b) A state court shall take judicial notice of the creation of
the board.
(c) A state court that renders a money judgment against a
district may require the board to pay the judgment from money in
the district depository that is not dedicated to the payment of
district indebtedness.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER F. ROAD FACILITIES
Sec. 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 requirements of the plan.
(b) A district may not construct, acquire, or improve a road
facility outside the district boundaries unless:
(1) the district presents to the commission sufficient evidence
that the construction, acquisition, or improvement is of benefit
to the district; and
(2) the commission and the governmental entity to which the road
facility is to be conveyed approve the construction, acquisition,
or improvement.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 as work
progresses.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 joint payment of the costs of a project; and
(2) require the state agency, political subdivision, or
corporation to design, construct, or improve, including
landscape, a project as provided by the contract.
(b) The district may issue bonds to pay all or part of the costs
of the project and any other payments required under the
contract.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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, Chapter 271, Local Government Code.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 conditioned on:
(1) faithful performance of the contract obligations; and
(2) payment to the district of damages resulting from any
default.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 in the
plan approved by the commission if:
(1) the board determines that the change is necessary to:
(A) comply with the requirements of the governmental entity to
which the road facility is to be conveyed;
(B) comply with the requirements of each municipality in which
or extraterritorial jurisdiction of which the road facility is to
be located, if the road facility is to be conveyed to a county;
(C) provide an adequate and efficient road system for travelers
in the district; or
(D) adjust to circumstances or requirements that did not exist
when the commission approved the original plan; and
(2) the commission approves the change in writing.
(b) Before approving the change, the commission shall consult
the governmental entity to which the road facility is to be
conveyed regarding the proposed change.
(c) Before making a change, a district to which Section 441.017
applies must receive written permission from the governmental
entity assuming maintenance and any municipality in the
extraterritorial jurisdiction of which the district is located.
(d) The commission shall adopt rules of procedure for:
(1) filing a request for a change; and
(2) approving a change.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 a contractor's work as it is performed on the road
facility and shall immediately act as necessary to ensure
compliance with the contract. The board may use inspectors,
engineers, or other district personnel as monitors.
(b) The board shall adopt a procedure for periodic reporting by
the monitors.
(c) On completion of construction, acquisition, or improvement
of the road facility, the monitors shall submit a written report
to the board and the governmental entity to which the road
facility is to be conveyed. The report must show whether the road
facility complies with:
(1) the district's plan approved by the commission;
(2) the contract; and
(3) the requirements of the governmental entity to which the
road facility is to be conveyed.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER G. CONVEYANCE OF ROAD FACILITY
Sec. 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:
(1) is complete as required by the district's plans and the
contract; and
(2) should be conveyed to the governmental entity.
(b) At the hearing, the board may require the presentation of
additional information or testimony necessary to make a
determination.
(c) A representative of the governing body of the governmental
entity to which the road facility is to be conveyed may present
information and testimony that the governmental entity considers
necessary.
(d) If the road facility is to be conveyed to a county, a
representative of any municipality in which or extraterritorial
jurisdiction of which the road facility is located may present
information and testimony that the municipality considers
necessary.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 road facility
should be conveyed to the governmental entity, the board shall
order the conveyance subject to the requirements of this chapter.
The board shall file with the commission a copy of the order and
the proposed conveyance instrument.
(b) If the board determines that the work on the road facility
has not been completed satisfactorily, the board shall act as
necessary to complete the road facility as required by the
district's plans and the contract. The district shall follow the
procedures and requirements of Sections 441.117 and 441.131
before conveying the road facility to the governmental entity.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 the board of the construction, acquisition, or improvement and
on approval by the commission.
(b) The district shall convey the road facility free and clear
of district indebtedness and may not convey a road that is
encumbered.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 not later than the 15th day after the date
that it receives a board's order to convey.
(b) The commission by order shall delay the conveyance until the
district complies with the plans and written commission approvals
if:
(1) the commission considers the road facility not to be
completed according to the plans and written commission
approvals;
(2) the governmental entity to which the road facility is being
conveyed files a written protest; or
(3) a municipality in which or extraterritorial jurisdiction of
which the road facility is located, if the road facility is being
transferred to a county, files a written protest.
(c) An order under Subsection (b) must be issued not later than
the 15th day after the later of the date that the commission
receives the board's conveyance order or the date a protest is
filed.
(d) The commission is not required to hold a hearing before
making an order under this section.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
(b) After the conveyance, the governmental entity is responsible
for all maintenance of the road facility and the district is not
responsible for the road facility or its maintenance.
(c) This section does not affect the governmental entity's
authority to alter, relocate, close, or discontinue maintenance
of the road facility as provided by law.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 full the
principal of and interest and any premium on any outstanding
district bonds or other indebtedness; or
(2) the district's responsibility to perform the obligations
provided by the orders or resolutions authorizing the bonds or
other indebtedness.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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. 1, eff. Sept. 1, 1995.
SUBCHAPTER H. FINANCIAL PROVISIONS
Sec. 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
24-month period.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 outstanding obligations of the district;
(2) the amount of cash credited to each district fund;
(3) the amount of money the district received from all sources
during the previous year;
(4) the amount of money available to the district from all
sources during the ensuing year;
(5) the balances expected at the end of the year in which the
budget is being prepared;
(6) the estimated revenue and balances available to cover the
proposed budget; and
(7) the estimated tax rate that will be required.
(c) The board may amend the budget after adoption.
(d) Money may not be spent for an expense not included in the
budget or an amendment to it unless the board by order declares
the expense to be necessary.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
Sec. 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
transmitted to a bank of payment for district bonds, with the
depository bank as received. The money shall remain on deposit,
except that this section does not limit the board's power to
invest district money as provided by Section 441.156.
(c) The district may not deposit money in a bank in an amount
that exceeds the maximum amount secured by the Federal Deposit
Insurance Corporation unless the bank executes a bond or provides
other security in an amount sufficient to secure from loss
district money that exceeds the amount secured by the Federal
Deposit Insurance Corporation.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 incidental expenses.
(b) The district's directors may reimburse a person for money
advanced for a purpose under Subsection (a).
(c) A payment may be made from the proceeds of district bonds,
taxes, fees, or other district revenue.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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) an obligation, debenture, note, or other evidence of
indebtedness issued or guaranteed directly or indirectly by the
Association for Cooperatives, Federal Home Loan Association
System, Export-Import Association of the United States, Federal
National Mortgage Association, Federal Home Loan Mortgage
Corporation, Farmers' Home Administration, Tennessee Valley
Authority, Farm Credit System, or Government National Mortgage
Association, or by successor agencies;
(3) an obligation issued by a public agency or municipality and
fully secured as to the payment of principal and interest by a
pledge of annual contributions under an annual contributions
contract with the United States;
(4) a temporary note, preliminary loan note, or project note
issued by a public agency or municipality that is fully secured
as to the payment of principal and interest by a requisition or
payment agreement with the United States;
(5) a direct or general obligation of or obligation guaranteed
by this state if the payment of the principal and interest is a
general obligation of this state;
(6) a demand deposit or interest-bearing time deposit,
certificate of deposit, or other similar banking arrangement that
is made with a member of the Federal Deposit Insurance
Corporation, if the deposit, to the extent not insured to its
full amount, is fully secured by obligations of the types
specified by Subdivision (1), (2), (3), (4), (5), (9), or (10)
that have a fair market value at least equal at all times to the
amount of the deposit;
(7) a repurchase agreement with a bank that is a member of the
Federal Deposit Insurance Corporation or with a member of the
Public Securities Association, if the underlying securities are
of the type described by Subdivision (1) or (2) and each is fully
secured at all times by obligations of the same type that have a
fair market value, including accrued interest, at least equal to
the amount of the repurchase agreement including accrued
interest;
(8) an interest-bearing time deposit or repurchase agreement
with an agency or intermediary of the United States and that is
described by Subdivision (1) or (2);
(9) an obligation of this state, another state of the United
States, a nonprofit corporation, or an instrumentality of this
state, another state, or a nonprofit corporation, if at the time
of its purchase under the indenture, the obligation is rated in
one of the two highest letter-rating categories by a nationally
recognized securities credit rating agency; and
(10) an obligation issued by a political subdivision of this
state, another state of the United States, a nonprofit
corporation, or an instrumentality of this state, another state,
or a nonprofit corporation, that is rated in one of the two
highest letter-rating categories by a nationally recognized
securities credit rating agency.
(b) The board may place the district's money in a certificate of
deposit of a state or national bank or state or federal savings
and loan association in this state if the money is secured in the
manner required for security of the money of a county of this
state.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 from the appropriate accounts of the district for
investment on terms the board considers advisable.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
SUBCHAPTER I. BONDS
Sec. 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 chapter.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 within the district
boundaries for that purpose.
(b) The district may issue bonds not secured by taxes without an
election.
(c) In addition to the requirements of the Election Code, the
order shall state:
(1) the nature of the election;
(2) the hours during which polls will be open;
(3) the location of polling places;
(4) the amount of the bonds to be authorized; and
(5) the maximum maturity of the bonds.
(d) Notice of the election must be given as provided by Section
441.031 for a confirmation and directors' election.
(e) The ballot at the election must be printed to provide for
voting for or against the issuance of the bonds and the
imposition of ad valorem taxes for payment of the bonds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 their
date. The bonds may be made redeemable before maturity at the
option of the district or may contain a mandatory redemption
provision.
(b) An order or resolution of the board authorizing the issuance
of the bonds, including refunding bonds, may:
(1) provide for the management of money;
(2) provide for the establishment and maintenance of an interest
and sinking fund, a reserve fund, and other funds;
(3) prohibit further issuance of bonds or other obligations
payable from pledged fees or reserve the right to issue
additional bonds secured by a pledge of and payable from the fees
on a parity with or subordinate to the pledge in support of the
bonds being issued; and
(4) contain other covenants and provisions as the board
determines.
(c) The board may adopt and have executed other proceedings or
instruments necessary and convenient in connection with the
issuance of bonds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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. 1, eff. Sept. 1, 1995.
Sec. 441.175. REFUNDING BONDS. The district may issue refunding
bonds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 requiring the district and its
officials to perform any obligation that:
(1) is provided by the order or resolution authorizing issuance
of the bond; and
(2) the district fails to perform, including:
(A) defaulting in the payment of principal, interest, or
redemption price on the bond when due; and
(B) failing to make payment into any fund created in the order
or resolution.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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) pay, or establish a reasonable reserve to pay, not more than
three years' interest on the district's bonds; and
(4) pay an expense related to issuance and sale of bonds as
provided by the bond orders or resolutions.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 use that money to pay interest that comes due on
bonds. Money remaining in that account after payment of the costs
of issuance of the bonds shall be transferred to the credit of
the regular account of the district in the district depository.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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:
(1) imposition and collection of ad valorem taxes;
(2) adoption of a plan of taxation authorized by Sections
51.502-51.506, Water Code, as provided by those sections; or
(3) pledging all or part of the fees under Section 441.197.
(b) In this chapter, a reference to ad valorem taxes includes a
reference to any other tax the board imposes as provided by this
chapter.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER J. TAXES
Sec. 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 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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, a majority
of the votes received favor the imposition of the tax.
(b) The amount of the tax may not exceed 25 cents on each $100
of assessed valuation of property in the district.
(c) The election shall be held as provided for a confirmation
and directors' election under Sections 441.030-441.035.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 to be imposed, the
board shall adopt a tax rate.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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.
Sec. 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. 1, 1995.
Sec. 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, 1995.
Sec. 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.
(b) A district may file a suit to recover an unpaid fee under
this section. The suit must be filed in a county in which the
district is located.
(c) Except as provided by Section 365.040, a fee may not be
imposed on or collected for travel on a road constructed,
acquired, or improved by the district.
(d) A road facility may not be encumbered by a district fee.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 issued bond anticipation notes.
(b) A district may contract with purchasers of bond anticipation
notes that the proceeds from the sale of bonds that are issued to
refund the bond anticipation notes shall be used only to pay the
principal of or interest or redemption price on the bond
anticipation notes.
(c) A district may secure the repayment of the principal of and
interest and redemption premium on the bond anticipation notes
from any source available for that repayment, including a loan
agreement, revolving credit agreement, agreement establishing a
line of credit, letter of credit, reimbursement agreement,
insurance contract, commitment to purchase bond anticipation
notes, purchase or sale agreement, or another agreement
authorized and approved by the district in connection with the
authorization, issuance, security, or repayment of bond
anticipation notes.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER K. ANNEXATION
Sec. 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 required
to be contiguous to the district.
(b) The petition must:
(1) describe the property by metes and bounds, or if there is a
recorded plat of the property, by lot and block number; and
(2) be executed as provided by law for the conveyance of real
property.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 to the district's
advantage.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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
entity to which the completed road facility will be conveyed.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 located.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 the board to impose a tax on the petitioner's
property in each year that any of those bonds are outstanding.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 boundaries after the
bond's authorization, if each petitioner assumes the debt and
authorizes the tax under Section 441.215.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
SUBCHAPTER L. DISSOLUTION
Sec. 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 improvement of a road facility provided in the plan approved
by the commission;
(2) the district has conveyed each road facility to a
governmental entity; and
(3) all bonds and other district indebtedness are paid in full.
(b) The district shall submit with the petition evidence that
the commission by rule or order requires to show that each
proposal in the plan has been completed and all bonds and other
district indebtedness have been paid in full.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 completed according to the plan;
(2) each road facility has been conveyed; and
(3) all bonds and other indebtedness have been paid in full.
(b) If the commission finds that one or more of these conditions
has not been met, the commission shall adopt an order that will
ensure that that condition is met. On compliance with this order,
the commission shall order the district dissolved.
(c) On issuance of the commission's dissolution order, the
dissolved district ceases as a governmental entity, and the board
continues in existence only to transfer district money and
dispose of district assets.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Sec. 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 road facilities were conveyed to more than one governmental
entity, the board shall distribute the money among those
governmental entities in proportion to the proceeds of all
indebtedness that the district incurred to construct, purchase,
or improve the road facilities conveyed to each respective
governmental entity.
(b) A governmental entity shall use the money to maintain the
road facility.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.