AI-assisted research summary: A district may be split into new districts only if it has no bonded debt and is not imposing ad valorem taxes. The board may order the division, but the order must name the new districts, describe their boundaries, appoint temporary directors, and divide assets and liabilities. New districts must hold confirmation/directors’ elections and cannot tax or issue certain bonds until voter approval.
Sec. 7901.0306. DIVISION OF DISTRICT. (a) The district may be divided into two or more new districts only if the district: (1) has no outstanding bonded debt; and (2) is not imposing ad valorem taxes. (b) This chapter applies to any new district created by the division of the district, and a new district has all the powers and duties of the district. (c) A new district created by the division of the district may not, at the time the new district is created, contain any land outside the area described by Section 2 of the Act enacting this chapter. (d) The board, on its own motion or on receipt of a petition signed by the owner or owners of a majority of the assessed value of the real property in the district, may adopt an order dividing the district. (e) The board may adopt an order dividing the district before or after the date the board holds an election under Section 7901.0103 to confirm the district's creation. (f) An order dividing the district shall: (1) name each new district; (2) include the metes and bounds description of the territory of each new district; (3) appoint temporary directors for each new district; and (4) provide for the division of assets and liabilities between the new districts. (g) On or before the 30th day after the date of adoption of an order dividing the district, the district shall file the order with the commission and record the order in the real property records of each county in which the district is located. (h) Any new district created by the division of the district shall hold a confirmation and directors' election as required by Section 7901.0103. If the voters of a new district do not confirm the creation of the new district, the assets, obligations, territory, and governance of the new district revert to the original district. (i) If the creation of the new district is confirmed, the new district shall provide the election date and results to the commission. (j) Any new district created by the division of the district must hold an election as required by this chapter to obtain voter approval before the district may impose a maintenance tax or issue bonds payable wholly or partly from ad valorem taxes. (k) Municipal consent to the creation of the district and to the inclusion of land in the district granted under Section 7901.0104 acts as municipal consent to the creation of any new district created by the division of the district and to the inclusion of land in the new district. Added by Acts 2021, 87th Leg., R.S., Ch. 747 (H.B. 3436), Sec. 1, eff. June 15, 2021. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS