(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 or assessments.
(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, including the power
to divide in accordance with this section.
(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:
(1) the territory of the district at the time the district was created; or
(2) 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 according
to the most recent certified appraisal roll for each county in which the district
is located, 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 8368.003 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 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 8368.003.
(i) Any new district created by the division of the district must hold an election
as required by Chapters 49 and 54, Water Code, and 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.
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