Invisible Government: Special Purpose Districts in Texas - Senate

Research
SPOTLIGHT
Special Purpose Districts
TRANSPORTATION
Section 52, Article III, Texas Constitution, authorizes
counties, cities, and political subdivisions of the state
to issue bonds and levy taxes for certain purposes.
One of those purposes is to construct, maintain,
and operate paved roads. In conjunction with the
Texas Department of Transportation and the Texas
Transportation Commission, counties may create road
districts and road utility districts for the purposes of
levying taxes and issuing bonds to provide funding for
the construction and maintenance of the roads in the
proposed district. In addition to Section 52, Article III,
Texas Constitution, the creation of navigation districts
is also authorized under Section 59, Article XVI, Texas
Constitution. These districts are authorized to issue
bonds and levy taxes for improving waterways and
allowing for the navigation of such waterways.
ffRoad Districts
The commissioners court of a county may establish one
or more road districts in the county as provided by Section
52, Article III, Texas Constitution, for the purpose of
constructing, maintaining, and operating macadamized,
graveled, or paved roads and turnpikes. However,
prior to issuance of an order creating the district, the
commissioners court is required to hold a hearing on the
matter. The county judge and county commissioners act
as ex officio directors of a road district.
Special Purpose Districts
Chapter 257 (Road Districts), Transportation Code,
sets forth provisions relating to the creation of road
districts and measures required to exclude or add real
property to the district. It also authorizes a road district
to purchase real property or a road owned by a private
person. Road districts are authorized to issue bonds and
impose ad valorem taxes to pay the interest on those
bonds and provide a sinking fund for the redemption
of the bonds.
Chapter 1471 (Bonds for County Roads), Government
Code, provides specific authority for counties to issue
bonds for county roads. That chapter sets forth the
procedures for the election on the issuance of bonds and
the imposition of property taxes for a road district. It also
authorizes the commissioners court to invest money in
a sinking fund for the redemption and payment of any
bonds. Subchapter C (Refinancing Road District bonds
Through Assessments) of Chapter 1471, Government
Code, authorizes the refinancing of road district bonds
through assessments. Subchapter D (Compensation
Bonds) of that chapter sets forth provisions relating to
the approval and issuance of compensation bonds.
ffRoad Utility Districts
Road utility districts are created for the purpose of
constructing, acquiring, improving, and providing
financing for a road facility. Chapter 441 (Road
Utility Districts), Transportation Code, sets forth
the provisions relating to road utility districts. That
chapter defines “road facility” as a road constructed,
acquired, or improved by the district, or property, an
easement, or works related to construction of a road,
which is constructed, acquired, or improved by the
district as necessary or appropriate for or in aid of the
improvement of certain waterways to prevent overflow
or provide drainage.
Road utility districts are temporary and are created
upon a petition signed by the property owners of all real
property in the district. The petition is submitted to the
Texas Transportation Commission, which will call and
hold a hearing on the petition and preliminary plan. If the
Texas Transportation Commission finds that the district
will benefit the real property in the district and that the
road facility is feasible, practicable and necessary, it
will grant the petition and appoint five persons to serve
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