A district may be divided into new districts only if specific debt, tax, and consent conditions are met, and the board must file the division order and the new district(s) must hold required elections.
Sec. 8425.154. DIVISION OF DISTRICT. (a) The district may be divided into two or more new districts only if: (1) the district has no outstanding bonded debt; (2) the district is not imposing ad valorem taxes; and (3) the requirement of Subsection (i) is satisfied. (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) Any 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 creating 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 8425.151 to authorize the district's bonds. (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 or among 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 Texas Commission on Environmental Quality 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 8425.003. (i) If the district is located wholly or partly in the corporate limits or the extraterritorial jurisdiction of a municipality, the district may not divide under this subchapter unless the municipality by resolution or ordinance consents to the division of the district. (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. Added by Acts 2013, 83rd Leg., R.S., Ch. 307 (H.B. 1492), Sec. 1, eff. June 14, 2013. SUBCHAPTER E. BONDS AND OTHER OBLIGATIONS