Sec. 8365.107.  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)  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 8365.003 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, or provide that the owner or owners of a majority of the assessed value of the real property in the district may submit a petition to the Texas Commission on Environmental Quality requesting that the commission appoint as temporary directors the five persons named in the petition;
(4)  provide for the division of assets and liabilities between or among the new districts; and
(5)  be subject to a confirmation election in each new district.
(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 8365.003.  The results of that election must be filed as required by Sections 49.102(e) and (f), Water Code.  If the voters of a new district do not confirm the creation of the new district, the assets, liabilities, territory, and governance of the new district revert to the original district.
(i)  Municipal consent to the creation of the district and to the inclusion of land in the district granted under Section 8365.004 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.
(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 2009, 81st Leg., R.S., Ch. 880 (S.B. 2521), Sec. 1, eff. June 19, 2009.