Page 56 - ABHR MUD BOOK 2022

APPENDIX 1

Additional Notice of MMD Legislation

Issue #1: State law currently requires multiple forms of notice relating to the legislative creation
of a municipal management district, including provisions contained in Article XVI, Section 59,
Texas Constitution, and Section 313.006, Government Code.

Recommendation: The Committee should adopt policies that specifically confirm that all
required notices relating to the creation of management districts have occurred prior to
considering a creation or legislative annexation bill.

Issue #2: In some instances, legislative creations of management districts have been proposed
that overlap with other existing special purpose districts. For example, a municipal management
district might be proposed for creation with boundaries within which are contained one or more
already existing municipal utility districts. Similar overlaps have occurred when legislation has
been introduced that proposes to annex territory into an existing management district.
Overlapping districts are not necessarily bad: there may be very good and reasonable reasons for
district overlap. Under Section 313.006, Government Code, written notice is required to be
provided to landowners when a management district is being created over their land. However,
this notice is not provided to existing special purpose districts that the management district may
overlap, whether through legislative creation of new management districts or annexation of land
into existing one.

Recommendation: When proposing the creation of a new management district or annexation of
land into an existing management district, the committee should adopt procedures to confirm that
if there are special purpose districts within the boundaries of the proposed district or the territory
to be annexed, that written notice has been provided to the registered agent (as reflected in
TCEQ’s records) of any existing special purpose district.

Issue #3: Notice to existing land owners of inclusion of their property in a management district
is of paramount importance. Section 313.006, Government Code, requires written notice be
provided to property owners of a proposed management district that can or will be subject to an
assessment by the proposed district. Similar notice is not provided to property owners where
legislation is being introduced that would annex an owner’s property into an existing
management district.

Recommendation: The committee should ensure that the same notices given to land owners
being included in a new management district are given when a land owner’s property has been
included in a proposed legislative annexation into an existing management district.
Issue #4: As previously noted, Section 313.006, Government Code, requires a single mailed
notice to be provided to land owners that can or will be subject to an assessment by the proposed
district. This notice is fundamental to the land owner’s awareness of how his land could be
affected by a district creation or annexation. That said, in order to comply with this statutory

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