73R9000 E
By Yost H.B. No. 1266
Substitute the following for H.B. No. 1266:
By Yost C.S.H.B. No. 1266
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain laws governing water districts and nonprofit
1-3 water or sewer service corporations; creating penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.002, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 1.002. Construction of Code. (a) The Code
1-8 Construction Act (Chapter 311, Government Code) applies to the
1-9 construction of each provision in this code, except as otherwise
1-10 expressly provided by this code.
1-11 (b) In this code:
1-12 (1) a reference to a title, chapter, or section
1-13 without further identification is a reference to a title, chapter,
1-14 or section of this code; and
1-15 (2) a reference to a subtitle, subchapter, subsection,
1-16 subdivision, paragraph, or other numbered or lettered unit without
1-17 further identification is a reference to a unit of the next larger
1-18 unit of this code in which the reference appears.
1-19 (c) A reference in a law to a statute or part of a statute
1-20 revised by this code is considered to be a reference to the part of
1-21 this code that revises that statute or part of the statute.
1-22 SECTION 2. Chapter 50, Water Code, is repealed, except that
1-23 Subchapter H is continued in effect for the sole purpose of the
1-24 administration and operation of contracts created or issued under
2-1 those laws.
2-2 SECTION 3. Title 4, Water Code, is amended by adding Chapter
2-3 49 to read as follows:
2-4 CHAPTER 49. PROVISIONS APPLICABLE TO ALL DISTRICTS
2-5 SUBCHAPTER A. GENERAL PROVISIONS
2-6 Sec. 49.001. DEFINITIONS. As used in this chapter:
2-7 (1) "District" means any district or authority created
2-8 by authority of either Article III, Sections 52(b)(1) and (2), or
2-9 Article XVI, Section 59, of the Texas Constitution, regardless of
2-10 how created. The term "district" shall not include any navigation
2-11 district or port authority created under general or special law.
2-12 (2) "Commission" means the Texas Natural Resource
2-13 Conservation Commission.
2-14 (3) "Board" means the governing body of a district.
2-15 (4) "Executive director" means the executive director
2-16 of the commission.
2-17 (5) "Water supply corporation" means a nonprofit water
2-18 supply or sewer service corporation that is created or operating
2-19 under Chapter 76, Acts of the 43rd Legislature, 1st Called Session,
2-20 1933 (Article 1434a, Vernon's Texas Civil Statutes).
2-21 (6) "Director" means either a supervisor or director
2-22 appointed or elected to the board.
2-23 (7) "Municipal solid waste" has the same meaning
2-24 assigned by Section 361.003, Health and Safety Code.
2-25 Sec. 49.002. APPLICABILITY. This chapter applies to all
2-26 general and special law districts to the extent that the provisions
2-27 of this chapter do not directly conflict with a provision in any
3-1 other chapter of this code or any Act creating or affecting a
3-2 special law district. In the event of such conflict, the specific
3-3 provisions in such other chapter or Act shall control.
3-4 Sec. 49.003. PENALTY. A district that fails to comply with
3-5 the filing provisions of this code may be subject to a civil
3-6 penalty of up to $100 per day for each day the district wilfully
3-7 continues to violate these provisions after receipt of written
3-8 notice of violation from the executive director by certified mail,
3-9 return receipt requested. The state may sue to recover the
3-10 penalty.
3-11 Sec. 49.004. PENALTY FOR VIOLATION OF DISTRICT RULES. (a)
3-12 The board may set reasonable civil penalties for the breach of any
3-13 rule of the district that shall not exceed the jurisdiction of a
3-14 justice court as provided by Section 27.031, Government Code.
3-15 (b) A penalty under this section is in addition to any other
3-16 penalty provided by the law of this state and may be enforced by
3-17 complaints filed in the appropriate court of jurisdiction in the
3-18 county in which the district's principal office or meeting place is
3-19 located.
3-20 (Sections 49.005-49.009 reserved for expansion
3-21 SUBCHAPTER B. CREATION
3-22 Sec. 49.010. ORDER OR ACT CREATING DISTRICT. Within 60 days
3-23 after the date a district is created, the district shall file with
3-24 the executive director a certified copy of the order or legislative
3-25 act creating the district or authorizing its creation, unless the
3-26 district was created by order of the commission.
3-27 (Sections 49.011-49.050 reserved for expansion
4-1 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
4-2 Sec. 49.051. BOARD OF DIRECTORS. A district shall be
4-3 governed by its board, the number of which is otherwise provided by
4-4 law.
4-5 Sec. 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
4-6 is disqualified from serving as a member of a board of a district
4-7 which includes less than all the territory in at least one county
4-8 and which, if located within the corporate area of a city or
4-9 cities, includes within its boundaries less than 75 percent of the
4-10 incorporated area of the city or cities, if that person:
4-11 (1) is related within the third degree of affinity or
4-12 consanguinity to a developer of property in the district, any other
4-13 member of the board, or the manager, engineer, attorney, or other
4-14 person providing professional services to the district;
4-15 (2) is an employee of any developer of property in the
4-16 district or any director, manager, engineer, attorney, or other
4-17 person providing professional services to the district or a
4-18 developer of property in the district in connection with the
4-19 district or property located in the district;
4-20 (3) is a developer of property in the district;
4-21 (4) is serving as an attorney, consultant, engineer,
4-22 manager, architect, or in some other professional capacity for the
4-23 district or a developer of property in the district in connection
4-24 with the district or property located in the district;
4-25 (5)(A) is a party to a contract with or along with the
4-26 district except for the purchase of public services furnished by
4-27 the district to the public generally; or
5-1 (B) is a party to a contract with or along with
5-2 a developer of property in the district relating to the district or
5-3 to property within the district, other than a contract limited
5-4 solely to the purpose of purchasing or conveying real property in
5-5 the district for the purpose of either establishing a permanent
5-6 residence, establishing a commercial business within the district,
5-7 or qualifying as a director; or
5-8 (6) during the term of office, fails to maintain the
5-9 qualifications required by law to serve as a director.
5-10 (b) Within 60 days after the board determines a relationship
5-11 or employment exists which constitutes a disqualification under
5-12 Subsection (a) of this section, it shall replace the person serving
5-13 as a member of the board with a person who would not be
5-14 disqualified.
5-15 (c) Any person who wilfully occupies an office as a member
5-16 of a board and exercises the powers and duties of that office when
5-17 disqualified under the provisions of Subsection (a) of this section
5-18 is guilty of a misdemeanor and, on conviction, shall be fined not
5-19 less than $100 nor more than $1,000.
5-20 (d) As used in this section, "developer of property in the
5-21 district" means any person who owns land located within a district
5-22 covered under this section and who has divided or proposes to
5-23 divide the land into two or more parts for the purpose of laying
5-24 out any subdivision or any tract of land or any addition to any
5-25 town or city, or for laying out suburban lots or building lots, or
5-26 any lots, and streets, alleys, or parks or other portions intended
5-27 for public use, or the use of purchasers or owners of lots fronting
6-1 thereon or adjacent thereto.
6-2 (e) Any rights obtained by any third party through official
6-3 action of a board covered by this section are not impaired or
6-4 affected by the disqualification under this section of any member
6-5 of the board to serve, provided that the third party had no
6-6 knowledge at the time the rights were obtained of the fact that the
6-7 member of the board was disqualified to serve.
6-8 (f) This section shall not apply to districts defined in
6-9 Section 49.181(h)(3), (4), or (5) or a district where the principal
6-10 function of the district is to provide irrigation water to
6-11 agricultural lands or to provide nonpotable water for any purpose.
6-12 (g) A board by unanimous vote of its remaining members may
6-13 remove a board member only if that board member has missed one-half
6-14 or more of the regular meetings scheduled during the prior 12
6-15 months. Any board member so removed may file a written appeal with
6-16 the commission within 30 days after receiving written notice of the
6-17 board action. The commission may reinstate a removed director if
6-18 the commission finds that the removal was unwarranted under the
6-19 circumstances, including the reasons for absences, the time and
6-20 place of the meetings missed, the business conducted at the
6-21 meetings missed and any other facts or circumstances the commission
6-22 may deem relevant.
6-23 Sec. 49.053. QUORUM. A majority of the membership of the
6-24 board constitutes a quorum for any meeting, and a concurrence of a
6-25 majority of the entire membership of the board is sufficient for
6-26 transacting any business of the district. This section does not
6-27 apply to districts defined in Section 49.181(h)(3) or (4).
7-1 Sec. 49.054. OFFICERS. (a) After a district is created and
7-2 the directors have qualified, the board shall meet, elect a
7-3 president, vice-president, secretary, and any other officers or
7-4 assistant officers as the board may deem necessary and begin the
7-5 discharge of its duties.
7-6 (b) After each directors election, the board shall meet and
7-7 elect officers.
7-8 (c) The president is the chief executive officer of the
7-9 district, presides at all meetings of the board, and shall execute
7-10 all documents on behalf of the district. The vice-president shall
7-11 act as president in case of the absence or disability of the
7-12 president. The secretary is responsible for seeing that all
7-13 records and books of the district are properly kept and shall
7-14 attest the president's signature on all documents.
7-15 (d) The board may appoint another director, the general
7-16 manager, or any employee as assistant or deputy secretary to assist
7-17 the secretary, and any such person shall be entitled to certify as
7-18 to the authenticity of any record of the district, including but
7-19 not limited to all proceedings relating to bonds, contracts, or
7-20 indebtedness of the district.
7-21 (e) After any election or appointment of a director, a
7-22 district shall notify the executive director within 30 days after
7-23 the date of the election or appointment of the name and mailing
7-24 address of the director chosen and the date that director's term of
7-25 office expires. The executive director shall provide forms to the
7-26 district for such purpose.
7-27 (f) This section does not apply to any districts defined in
8-1 Section 49.181(h)(3) or (4).
8-2 Sec. 49.055. SWORN STATEMENT, BOND AND OATH OF OFFICE. (a)
8-3 As soon as practicable after a director is elected or appointed,
8-4 that director shall make the sworn statement prescribed by the
8-5 constitution for public office.
8-6 (b) As soon as practicable after a director has made the
8-7 sworn statement, and before beginning to perform the duties of
8-8 office, that director shall take the oath of office prescribed by
8-9 the constitution for public officers.
8-10 (c) Before beginning to perform the duties of office, each
8-11 director shall execute a bond for $10,000 payable to the district
8-12 and conditioned on the faithful performance of that director's
8-13 duties. All bonds of the directors shall be approved by the board
8-14 and paid for by the district.
8-15 (d) The sworn statement, bond, and oath shall be filed with
8-16 the district and retained in its records. A duplicate original of
8-17 the sworn statement and the oath shall also be filed with the
8-18 secretary of state within 10 days after their execution and need
8-19 not be filed before the new director begins to perform the duties
8-20 of office.
8-21 (e) This section does not apply to any district defined in
8-22 Section 49.181(h)(3) or (4).
8-23 Sec. 49.056. GENERAL MANAGER. (a) The board may employ or
8-24 contract with a person to perform such services as general manager
8-25 for the district as the board may from time to time specify. The
8-26 board may delegate to the general manager full authority to manage
8-27 and operate the affairs of the district subject only to orders of
9-1 the board.
9-2 (b) The board may delegate to the general manager the
9-3 authority to employ all persons necessary for the proper handling
9-4 of the business and operation of the district and to determine the
9-5 compensation to be paid all employees other than the general
9-6 manager.
9-7 (c) Except as provided by Section 49.052, a director may be
9-8 employed as general manager of the district, but the compensation
9-9 of a general manager who also serves as a director shall be
9-10 established by the other directors.
9-11 Sec. 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
9-12 be responsible for the management of all the affairs of the
9-13 district. The district shall employ or contract with all persons,
9-14 firms, partnerships, corporations, or other entities, public or
9-15 private, deemed necessary by the board for the conduct of the
9-16 affairs of the district, including, but not limited to, engineers,
9-17 attorneys, financial advisors, operators, bookkeepers, tax
9-18 assessors and collectors, auditors, and administrative staff.
9-19 (b) The board shall adopt an annual budget. All district
9-20 employees are employed at the will of the district unless the
9-21 district and employee execute a written employment contract.
9-22 (c) The board shall set the compensation and terms for
9-23 consultants.
9-24 (d) In selecting attorneys, engineers, auditors, financial
9-25 advisors, or other professional consultants, the district shall
9-26 follow the procedures provided in Section 3A of the Professional
9-27 Services Procurement Act (Article 664-4, Vernon's Texas Civil
10-1 Statutes) and shall comply with all the provisions of that Act.
10-2 (e) The board shall require an officer, employee, or
10-3 consultant who collects, pays, or handles any funds of the district
10-4 to furnish good and sufficient bond, payable to the district, in an
10-5 amount determined by the board to be sufficient to safeguard the
10-6 district. The bond shall be conditioned on the faithful
10-7 performance of that person's duties and on accounting for all funds
10-8 and property of the district. Such bond shall be signed or
10-9 endorsed by a surety company authorized to do business in the
10-10 state.
10-11 (f) The board may pay the premium on surety bonds required
10-12 of officials, employees, or consultants of the district out of any
10-13 available funds of the district, including proceeds from the sale
10-14 of bonds.
10-15 (g) The board may adopt bylaws to govern the affairs of the
10-16 district to perform its purposes. The board may, by resolution,
10-17 authorize its general manager or other employee to execute
10-18 documents on behalf of the district.
10-19 (h) The board shall also have the right to purchase all
10-20 materials, supplies, equipment, vehicles, and machinery needed by
10-21 the district to perform its purposes.
10-22 Sec. 49.058. CONFLICTS OF INTEREST. A director of a
10-23 district is subject to the provisions of Chapter 171, Local
10-24 Government Code, relating to the regulation of conflicts of
10-25 officers of local governments.
10-26 Sec. 49.059. DISQUALIFICATION OF TAX ASSESSOR AND COLLECTOR.
10-27 (a) No person may serve as tax assessor and collector of a
11-1 district providing potable water or sewer utility services to
11-2 household users if that person:
11-3 (1) is related within the third degree of affinity or
11-4 consanguinity to any developer of property in the district, a
11-5 member of the board, or the manager, engineer, or attorney for the
11-6 district;
11-7 (2) is or was within two years immediately preceding
11-8 the assumption of their assessment and collection duties with the
11-9 district an employee of any developer of property in the district,
11-10 or any director, manager, engineer, or attorney for the district;
11-11 (3) owns an interest in or is employed by any
11-12 corporation organized for the purpose of tax assessment and
11-13 collection services, a substantial portion of the stock of which is
11-14 owned by a developer of property within the district or any
11-15 director, manager, engineer, or attorney for the district; or
11-16 (4) is directly or through a corporation developing
11-17 land in the district or is a director, engineer, or attorney for
11-18 the district.
11-19 (b) Within 60 days after the board determines a relationship
11-20 or employment exists which constitutes a disqualification under
11-21 Subsection (a), it shall replace the person serving as tax assessor
11-22 and collector with a person who would not be disqualified.
11-23 (c) Any person who wilfully violates the provisions of
11-24 Subsection (a) is guilty of a misdemeanor and on conviction shall
11-25 be fined not less than $100 nor more than $1,000.
11-26 (d) As used in this section, "developer of property in the
11-27 district" means any person who owns land located within a district
12-1 covered under this section and who has divided or proposes to
12-2 divide the land into two or more parts for the purpose of laying
12-3 out any subdivision or any tract of land or any addition to any
12-4 town or city, or for laying out suburban lots or building lots, or
12-5 any lots, streets, alleys, or parks or other portions intended for
12-6 public use, or the use of purchasers or owners of lots fronting
12-7 thereon or adjacent thereto.
12-8 Sec. 49.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
12-9 is entitled to receive fees of office of not more than $100 a day
12-10 for each day the director actually spends performing the duties of
12-11 a director. The fees of office may not exceed $6,000 per annum
12-12 except for directors of a river authority which is engaged in the
12-13 distribution and sale of electric energy to the public.
12-14 (b) Each director is also entitled to receive reimbursement
12-15 of actual expenses reasonably and necessarily incurred while
12-16 engaging in activities on behalf of the district.
12-17 (c) In order to receive fees of office and to receive
12-18 reimbursement for expenses, each director shall file with the
12-19 district a verified statement showing the number of days actually
12-20 spent in the service of the district and a general description of
12-21 the duties performed for each day of service.
12-22 (d) Section 49.002 notwithstanding, in all areas of conflict
12-23 the provisions of this section shall take precedence over all prior
12-24 statutory enactments. If the enactment of this section results in
12-25 an increase in the fees of office for any district, that district's
12-26 fees of office shall not increase unless the board adopts a
12-27 resolution authorizing payment of the higher fees.
13-1 Sec. 49.061. SEAL. The directors shall adopt a seal for the
13-2 district.
13-3 Sec. 49.062. OFFICES AND MEETING PLACES. (a) The board
13-4 shall designate from time to time and maintain one or more regular
13-5 offices for conducting the business of the district and maintaining
13-6 the records of the district. Such offices may be located either
13-7 inside or outside the district's boundaries as determined in the
13-8 discretion of the board.
13-9 (b) The board shall designate one or more places inside or
13-10 outside the district for conducting the meetings of the board. The
13-11 meeting place may be a private residence or office, provided that
13-12 the board, in its order establishing the meeting place, declares
13-13 the same to be a public place and invites the public to attend any
13-14 meeting of the board. If the board establishes a meeting place or
13-15 places outside the district, it shall give notice of the location
13-16 or locations by filing a true copy of the resolution establishing
13-17 the location or locations of the meeting place or places with the
13-18 commission and also by publishing notice of the location or
13-19 locations in a newspaper of general circulation in the district.
13-20 If the location of any of the meeting places outside the district
13-21 is changed, notice of the change shall be given in the same manner.
13-22 (c) After at least 25 qualified electors are residing in a
13-23 district, on written request of at least five of those electors,
13-24 the board shall designate a meeting place and hold meetings within
13-25 the district if it determines that the meeting place used by the
13-26 district deprives the residents of a reasonable opportunity to
13-27 attend district meetings. On the failure to designate the location
14-1 of the meeting place within the district, five electors may
14-2 petition the commission to designate a location. If it determines
14-3 that the meeting place used by the district deprives the residents
14-4 of a reasonable opportunity to attend district meetings, the
14-5 commission may designate a meeting place inside or outside the
14-6 district which is reasonably available for the public and require
14-7 that the meetings be held at such place. After the next election,
14-8 the board may designate different meeting places, including one
14-9 located outside the boundaries of the district.
14-10 (d) Two or more districts may designate and share offices
14-11 and meeting places. This section does not apply to districts
14-12 defined in Section 49.181(h)(3) or (4).
14-13 Sec. 49.063. NOTICE OF MEETINGS. Notice of meetings of the
14-14 board shall be given as set forth in the open meetings act, Chapter
14-15 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
14-16 6252-17, Vernon's Texas Civil Statutes), except that if a district
14-17 does not have a meeting place within the district, the district
14-18 shall post notice of its meeting at a public place within the
14-19 district specified by the board in a written resolution, rather
14-20 than at its administrative office. The board shall specify such
14-21 public place to be a bulletin board or other place within the
14-22 district which is reasonably available to the public. Neither
14-23 failure to provide notice of a regular meeting nor an insubstantial
14-24 defect in notice of any meeting shall affect the validity of any
14-25 action taken at the meeting.
14-26 Sec. 49.064. MEETINGS. The board shall hold such regular
14-27 and special meetings as may be necessary for the proper conduct of
15-1 the district's business. All meetings shall be conducted in
15-2 accordance with the open meetings act, Chapter 271, Acts of the
15-3 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
15-4 Texas Civil Statutes). A meeting of a committee of the board, or a
15-5 committee composed of representatives of more than one board, where
15-6 less than a quorum of any board is present is not subject to the
15-7 provisions of the open meetings act, Chapter 271, Acts of the 60th
15-8 Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas
15-9 Civil Statutes).
15-10 Sec. 49.065. RECORDS. (a) The board shall keep a complete
15-11 account of all its meetings and proceedings and shall preserve its
15-12 minutes, contracts, records, notices, accounts, receipts, and other
15-13 records in a safe place.
15-14 (b) The records of each district are the property of the
15-15 district and are subject to the open records act, Chapter 424, Acts
15-16 of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
15-17 Vernon's Texas Civil Statutes).
15-18 (c) The preservation, microfilming, destruction, or other
15-19 disposition of the records of each district is subject to the
15-20 requirements of Chapter 201, Local Government Code, and rules
15-21 adopted thereunder.
15-22 Sec. 49.066. SUITS. (a) A district may sue and be sued in
15-23 the courts of this state in the name of the district by and through
15-24 its board. All courts shall take judicial notice of the creation
15-25 of the district and of its boundaries.
15-26 (b) Any court in the state rendering judgment for debt
15-27 against a district may order the board to levy, assess, and collect
16-1 taxes or assessments to pay the judgment.
16-2 (c) The president or the general manager of any district
16-3 shall be the agent of the district on whom process, notice, or
16-4 demand required or permitted by law to be served upon the district
16-5 may be served.
16-6 (d) Except as provided in Subsection (e) of this section, no
16-7 suit may be instituted in any court of this state contesting:
16-8 (1) the validity of the creation and boundaries of a
16-9 district created under this code;
16-10 (2) any bonds or other obligations created under this
16-11 code; or
16-12 (3) the validity or the authorization of a contract
16-13 with the United States by the district.
16-14 (e) The matters listed in Subsection (d) of this section may
16-15 be judicially inquired into at any time and determined in any suit
16-16 brought by the State of Texas through the attorney general. The
16-17 action shall be brought on good cause shown, except where otherwise
16-18 provided by other provisions of this code or by the Texas
16-19 Constitution. It is specifically provided, however, that no such
16-20 proceeding shall affect the validity of or security for any bonds
16-21 or other obligations theretofore issued by a district if such bonds
16-22 or other obligations have been approved by the attorney general as
16-23 provided by Section 49.184.
16-24 (f) A district or water supply corporation shall not be
16-25 required to give bond for appeal, injunction, or costs in any suit
16-26 to which it is a party and shall not be required to deposit more
16-27 than the amount of any award in any eminent domain proceeding.
17-1 Sec. 49.067. CONTRACTS. A district shall contract, and be
17-2 contracted with, in the name of the district.
17-3 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. The
17-4 provisions of this chapter pertaining to bids and the Local
17-5 Government Code notwithstanding, a district may purchase property
17-6 from any governmental entity by negotiated contract without the
17-7 necessity of securing appraisals or advertising for bids.
17-8 Sec. 49.069. EMPLOYEE BENEFITS. (a) The board may provide
17-9 for and administer a retirement, disability, and death compensation
17-10 fund for the employees of the district and may adopt a plan or
17-11 plans to effectuate the purpose of this section, including the
17-12 forms of insurance and annuities which are considered advisable by
17-13 the board. The board, after notice to the employees and a hearing,
17-14 may change any plan, rule, or regulation.
17-15 (b) All money provided from the compensation of the
17-16 employees participating in the fund and plan authorized by this
17-17 section and by the district for the retirement, disability, and
17-18 death compensation fund, after the money has been received by the
17-19 district, shall be invested as the board from time to time
17-20 considers advisable. The money may be invested in the following
17-21 manner:
17-22 (1) in bonds of the United States, the State of Texas,
17-23 any county, city, or other political subdivision of this state, or
17-24 in bonds issued by any agency of the United States, the payment of
17-25 the principal of and interest on which is guaranteed by the United
17-26 States; and
17-27 (2) in life insurance policies, endowment or annuity
18-1 contracts, or interest-bearing certificates of legal reserve life
18-2 insurance companies authorized to write the contracts in the State
18-3 of Texas.
18-4 (c) A sufficient amount of the money shall be kept on hand
18-5 to meet the immediate payment of amounts likely to become due each
18-6 year out of the fund as determined by the board.
18-7 (d) The recipients or beneficiaries from the fund shall not
18-8 be eligible for any other pension, retirement fund, or direct aid
18-9 from the State of Texas, unless the fund created under this chapter
18-10 is released to the State of Texas as a condition precedent to
18-11 receiving the other pension, aid, or joining of any other system.
18-12 (e) The board may include hospitalization and medical
18-13 benefits to its employees as part of the compensation currently
18-14 paid to the officers and employees and may adopt any plan, rule, or
18-15 regulation in connection with it and amend or change the plan,
18-16 rule, or regulation as it may determine.
18-17 (f) This section shall not apply to any river authority as
18-18 that term is defined in Section 30.003(4).
18-19 Sec. 49.070. WORKERS' COMPENSATION. The board may become a
18-20 subscriber under the Texas Workers' Compensation Act (Article
18-21 8308-1.01 et seq., Vernon's Texas Civil Statutes) with any
18-22 insurance company authorized to write the policies in the State of
18-23 Texas.
18-24 Sec. 49.071. DISTRICT NAME CHANGE. (a) On petition by a
18-25 district showing reasonable grounds for a name change, the
18-26 commission by order may change the name of the district to the name
18-27 requested by the district. The new name must be generally
19-1 descriptive of the location of the district followed by the type of
19-2 district as provided by the title of the chapter of the Water Code
19-3 governing the district. If a district is located wholly within one
19-4 county that contains more than one district of that type, the
19-5 district may be differentiated, if necessary, by adding to the new
19-6 name the proper consecutive number. The new name may not be the
19-7 same as the name of any other district in the county.
19-8 (b) A name change takes effect on the date of issuance of
19-9 the commission order making the name change.
19-10 (c) Not later than the 30th day after the date of issuance
19-11 of the commission order making the name change, the district shall
19-12 publish notice of the name change in a newspaper or newspapers of
19-13 general circulation in the county or counties in which the district
19-14 is located. Within that same period, the district shall also give
19-15 notice of the name change by mail to utility customers or
19-16 permittees, if any, and, to the extent practicable, to the holders
19-17 of bonds, obligations, and other indebtedness of the district.
19-18 Failure of the district to comply with this subsection does not
19-19 affect the validity of the name change.
19-20 (d) A change in the name of a district does not affect
19-21 bonds, obligations, or other indebtedness of the district existing
19-22 before the name change occurred.
19-23 (Sections 49.072-49.100 reserved for expansion
19-24 SUBCHAPTER D. ELECTION PROVISIONS
19-25 Sec. 49.101. GENERAL. All elections shall be generally
19-26 conducted in accordance with the Election Code except as otherwise
19-27 provided for by this code. Write-in candidacies for any district
20-1 office shall be governed by Subchapter C, Chapter 146, Election
20-2 Code.
20-3 Sec. 49.102. CONFIRMATION AND DIRECTOR ELECTION.
20-4 (a) Before issuing any bonds or other obligations, an election
20-5 shall be held within the boundaries of the proposed district to
20-6 determine if the proposed district shall be established and, if the
20-7 directors of the district are required by law to be elected, to
20-8 elect permanent directors.
20-9 (b) Notice of a confirmation or director election shall
20-10 state the day and place or places for holding the election, the
20-11 propositions to be voted on, or the number of directors to be voted
20-12 on.
20-13 (c) The ballots for a confirmation election shall be printed
20-14 to provide for voting "For District" and "Against District."
20-15 Ballots for a directors election shall provide the names of the
20-16 persons appointed by the governing body who qualified and are
20-17 serving as temporary directors at the time the election is called.
20-18 The ballots shall also have blank places after the names of the
20-19 temporary directors in which a voter may write the names of other
20-20 persons for directors.
20-21 (d) Immediately after the confirmation and director
20-22 election, the presiding judge shall take returns of the results to
20-23 the temporary board. The temporary board shall canvass the returns
20-24 and declare the results at the earliest practicable time.
20-25 (e) If a majority of the votes cast in the election favor
20-26 the creation of the district, then the temporary board shall
20-27 declare that the district is created and enter the result in its
21-1 minutes. If a majority of the votes cast in the election are
21-2 against the creation of the district, the temporary board shall
21-3 declare that the district was defeated and enter the result in its
21-4 minutes. A copy of the order shall be filed with the commission.
21-5 (f) The order canvassing the results of the confirmation
21-6 election shall contain a description of the district's boundaries
21-7 and shall be filed with the executive director and in the deed
21-8 records of the county or counties in which the district is located.
21-9 (g) The temporary board shall also declare the persons
21-10 receiving the highest number of votes for directors to have been
21-11 elected as permanent directors.
21-12 (h) Unless otherwise agreed, the directors shall decide the
21-13 initial terms of office by lot, with a simple majority of directors
21-14 serving until the second succeeding directors' election and the
21-15 remaining directors serving until the next directors' election.
21-16 (i) The provisions of this section shall not be applicable
21-17 to any district exercising the powers of Chapter 375, Local
21-18 Government Code, or any district created by a special Act of the
21-19 legislature which does not require a confirmation election.
21-20 Sec. 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
21-21 provided by Section 49.102 of this chapter, the members of the
21-22 board of a district shall serve for four-year terms.
21-23 (b) An election shall be held on the uniform election date,
21-24 established by the Election Code, in either January or May of each
21-25 even-numbered year to elect the appropriate number of directors.
21-26 (c) The permanent directors may assign a position number to
21-27 each director's office, in which case directors shall thereafter be
22-1 elected by position and not at large.
22-2 (d) A district may provide for the election of all
22-3 directors, or a majority of directors, from single-member
22-4 districts, which shall be geographically described within the
22-5 boundaries of the district in a manner which is equitable for the
22-6 electors within such districts and within the district generally.
22-7 (e) Section 49.002 notwithstanding, in all areas of conflict
22-8 the provisions of Subsection (b) shall take precedence over all
22-9 prior statutory enactments.
22-10 Sec. 49.104. ALTERNATIVE ELECTION PROCEDURES. (a)
22-11 Notwithstanding the provisions and requirements of the Election
22-12 Code and general laws, any two or more districts situated in the
22-13 same county and in which substantially all of the land is being or
22-14 has been developed as part of a single community development plan
22-15 and which are served by common water supply and waste disposal
22-16 systems may by mutual agreement designate a common election office
22-17 and common early and regular polling places within one or more of
22-18 the districts, but outside the boundaries of one or more of the
22-19 districts, for the conduct of director election proceedings and
22-20 early and regular balloting in director elections. This
22-21 alternative election procedure may only be used if the common
22-22 election office and polling places so designated:
22-23 (1) are within buildings open to the public;
22-24 (2) are within the boundaries of at least one of the
22-25 districts;
22-26 (3) meet the requirements of the Election Code and
22-27 general laws as polling places; and
23-1 (4) are located not more than five miles from any
23-2 portion of the boundaries of any of the participating districts.
23-3 (b) Such districts may also agree upon and designate a
23-4 common election officer and common early and regular voting
23-5 officials for some or all of the director elections to be
23-6 simultaneously conducted at a common location, any of whom may be
23-7 nonelective employees of one or more of the districts, so long as
23-8 the early and regular voting officials are qualified voters within
23-9 at least one of the districts.
23-10 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
23-11 in this code, all vacancies on the board and in other offices shall
23-12 be filled for the unexpired term by appointment of the board.
23-13 (b) If the number of directors is reduced to fewer than a
23-14 majority, the vacancies shall be filled by appointment by the
23-15 commission or the county commissioners court if the district was
23-16 created by the county commissioners court. An appointed director
23-17 shall serve for the unexpired term of the director he or she is
23-18 replacing.
23-19 (c) In the event of a failure to elect one or more members
23-20 of the board of a district resulting from the absence of, or
23-21 failure to vote by, the qualified voters in the district, the
23-22 current members of the board holding the positions not filled at
23-23 such election shall be deemed to have been reelected and shall
23-24 serve an additional term of office.
23-25 Sec. 49.106. BOND ELECTIONS. (a) Before an election is
23-26 held to authorize the issuance of bonds, other than refunding
23-27 bonds, there shall be filed in the office of the district and open
24-1 to inspection by the public an engineer's report covering the land,
24-2 improvements, facilities, plants, equipment, and appliances to be
24-3 purchased or constructed and their estimated cost, together with
24-4 maps, plats, profiles, and data fully showing and explaining the
24-5 report.
24-6 (b) Notice of a bond election shall contain the proposition
24-7 or propositions to be voted upon, which includes the estimate of
24-8 the probable cost of design, construction, purchase and acquisition
24-9 of improvements and additions thereto, and incidental expenses
24-10 connected with such improvements and the issuance of bonds.
24-11 (c) A bond election may be held on the same day as any other
24-12 district election. The bond election may be called by a separate
24-13 election order or as a part of any other election order. The board
24-14 may submit multiple purposes in a single proposition at an
24-15 election.
24-16 Sec. 49.107. OPERATION AND MAINTENANCE TAX. (a) A district
24-17 may levy and collect a tax for operation and maintenance purposes,
24-18 including funds for planning, constructing, acquiring, maintaining,
24-19 repairing, and operating all necessary land, plants, works,
24-20 facilities, improvements, appliances, and equipment of the district
24-21 and for paying costs of proper services, engineering and legal
24-22 fees, and organization and administrative expenses.
24-23 (b) An operation and maintenance tax may not be levied by a
24-24 district until it is approved by a majority of the electors voting
24-25 at an election held for that purpose. After such a tax has been
24-26 authorized by the district's voters, the board shall be authorized
24-27 to levy the tax and have it assessed and collected as other
25-1 district taxes.
25-2 (c) An operation and maintenance tax election may be held at
25-3 the same time and in conjunction with any other district election.
25-4 The election may be called by a separate election order or as part
25-5 of any other election order.
25-6 (d) The proposition in an operation and maintenance tax
25-7 election may be for a specific maximum rate or for an unlimited
25-8 rate.
25-9 (e) If a district has any surplus operation and maintenance
25-10 tax funds which are not needed for the purposes for which they were
25-11 collected, the funds may be used for any lawful purpose.
25-12 Sec. 49.108. CONTRACT ELECTIONS. (a) A contract may
25-13 provide that the district will make payment under the contract from
25-14 proceeds from the sale of notes or bonds, from taxes, or from any
25-15 other income of the district or any combination of these.
25-16 (b) A district may make payments under a contract from taxes
25-17 other than operation and maintenance taxes after the provisions of
25-18 the contract have been approved by a majority of the electors
25-19 voting at an election held for that purpose.
25-20 (c) A contract election may be held at the same time and in
25-21 conjunction with any other district election. The election may be
25-22 called by a separate election order or as part of any other
25-23 election order.
25-24 (d) A contract approved by the voters will constitute an
25-25 obligation against the taxing power of the district to the extent
25-26 provided in the contract.
25-27 (Sections 49.109-49.150 reserved for expansion
26-1 SUBCHAPTER E. FISCAL PROVISIONS
26-2 Sec. 49.151. EXPENDITURES. (a) Except as hereinafter
26-3 provided, a district's money may be disbursed only by check, draft,
26-4 order, or other instrument which shall be signed by at least a
26-5 majority of the directors.
26-6 (b) The board may by resolution allow the general manager,
26-7 treasurer, bookkeeper, or other employee of the district to sign
26-8 disbursements.
26-9 (c) The board may by resolution allow disbursements to be
26-10 transferred by federal reserve wire system to accounts in the name
26-11 of the district.
26-12 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
26-13 borrow money for any corporate purpose or combination of corporate
26-14 purposes only in compliance with the methods and procedures
26-15 specifically provided by this chapter or by general law.
26-16 Sec. 49.153. REVENUE NOTES. (a) The board, without the
26-17 necessity of an election, may borrow money on negotiable notes of
26-18 the district to be paid solely from the revenues derived from the
26-19 ownership of all or any designated part of the district's works,
26-20 plants, improvements, facilities, or equipment after deduction of
26-21 the reasonable cost of maintaining and operating the facilities.
26-22 (b) The notes may be first or subordinate lien notes within
26-23 the discretion of the board, but no obligation may ever be a charge
26-24 on the property of the district or on taxes levied or collected by
26-25 the district but shall be solely a charge on the revenues pledged
26-26 for the payment of the obligation. No part of the obligation may
26-27 ever be paid from taxes levied or collected by the district.
27-1 (c) A district may not execute a note for a term longer than
27-2 three years unless the commission issues an order approving the
27-3 note.
27-4 (d) This section does not apply to a district defined in
27-5 Section 49.181(h)(3) or (4).
27-6 Sec. 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
27-7 NOTES. (a) The board may declare an emergency in the matter of
27-8 funds not being available to pay principal of and interest on any
27-9 bonds of the district payable in whole or in part from taxes or to
27-10 meet any other needs of the district and may issue negotiable tax
27-11 anticipation notes or negotiable bond anticipation notes to borrow
27-12 the money needed by the district without advertising or giving
27-13 notice of the sale. Bond anticipation notes and tax anticipation
27-14 notes shall mature within one year of their date.
27-15 (b) Tax anticipation notes may be issued for any purpose for
27-16 which the district is authorized to levy taxes, and tax
27-17 anticipation notes shall be secured with the proceeds of taxes to
27-18 be levied by the district in the succeeding 12-month period. The
27-19 board may covenant with the purchasers of the notes that the board
27-20 will levy a sufficient tax to pay the principal of and interest on
27-21 the notes and pay the costs of collecting the taxes.
27-22 (c) Bond anticipation notes may be issued for any purpose
27-23 for which bonds of the district may have previously been voted or
27-24 may be issued for the purpose of refunding previously issued bond
27-25 anticipation notes. A district may covenant with the purchasers of
27-26 the bond anticipation notes that the district will use the proceeds
27-27 of sale of any bonds in the process of issuance for the purpose of
28-1 refunding the bond anticipation notes, in which case the board will
28-2 be required to use the proceeds received from sale of the bonds in
28-3 the process of issuance to pay principal, interest, or redemption
28-4 price on the bond anticipation notes.
28-5 (d) Districts required to seek commission approval of bonds
28-6 must have an application for such approval on file with the
28-7 commission prior to the issuance of bond anticipation notes.
28-8 Sec. 49.155. REPAYMENT OF EXPENSES. (a) The district may
28-9 pay all costs and expenses necessarily incurred in the organization
28-10 and operation of a district during creation and construction
28-11 periods including, but not limited to, the following:
28-12 (1) organizational, administrative, and operating
28-13 expenses;
28-14 (2) the cost of investigation and making plans;
28-15 (3) the cost of the engineer's report;
28-16 (4) legal fees; and
28-17 (5) any other incidental expenses.
28-18 (b) For purposes of this section, construction periods shall
28-19 mean any periods during which the district is constructing its
28-20 facilities or there is construction by third parties of above
28-21 ground improvements within the district, but in no event longer
28-22 than five years.
28-23 (c) The district may reimburse any person for money advanced
28-24 for the purposes in Subsection (a) and may be charged interest on
28-25 such funds.
28-26 (d) These payments may be made from money obtained from the
28-27 issuance of notes or the sale of bonds issued by the district or
29-1 out of maintenance taxes or other revenues of the district.
29-2 Sec. 49.156. DEPOSITORY. (a) The board, by order or
29-3 resolution, shall designate one or more banks or savings
29-4 associations within the state to serve as the depository for the
29-5 funds of the district. The board shall not be required to
29-6 advertise or solicit bids in selecting its depositories.
29-7 (b) To the extent that funds in the depository banks or
29-8 savings associations are not insured by the Federal Deposit
29-9 Insurance Corporation, they shall be secured in the manner provided
29-10 by law for the security of funds by the Public Funds Collateral
29-11 Act, (Article 2529d, Vernon's Texas Civil Statutes).
29-12 (c) The board may authorize a designated representative to
29-13 supervise the substitution of securities pledged to secure the
29-14 district's funds.
29-15 Sec. 49.157. INVESTMENTS. (a) All district deposits and
29-16 investments shall be governed by the Public Funds Investment Act of
29-17 1987 (Article 842a-2, Vernon's Texas Civil Statutes).
29-18 (b) The board may provide that an authorized representative
29-19 of the district may invest and reinvest the funds of the district
29-20 and provide for money to be withdrawn from the appropriate accounts
29-21 of the district for the investments on such terms as the board
29-22 considers advisable.
29-23 Sec. 49.158. FISCAL YEAR. Within 30 days after a district
29-24 becomes financially active, the board shall adopt a fiscal year by
29-25 a formal board resolution. The district shall notify the executive
29-26 director of the adopted fiscal year within 30 days after adoption.
29-27 The district may change its fiscal year at any time; provided,
30-1 however, it may not be changed more than once in any 24 month
30-2 period. After any change in the district's fiscal year, the
30-3 district shall notify the executive director of the changed fiscal
30-4 year within 30 days after adoption.
30-5 (Sections 49.159-49.180 reserved for expansion
30-6 SUBCHAPTER F. ISSUANCE OF BONDS
30-7 Sec. 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
30-8 DISTRICT BONDS. (a) A district may not issue bonds unless the
30-9 commission determines that the project to be financed by the bonds
30-10 is feasible and issues an order approving the issuance of the
30-11 bonds. This section does not apply to refunding bonds.
30-12 (b) A district may submit to the commission a written
30-13 application for investigation of feasibility. An engineer's report
30-14 describing the project, including the data, profiles, maps, plans,
30-15 and specifications prepared in connection with the report, must be
30-16 submitted with the application.
30-17 (c) The executive director shall examine the application and
30-18 the report and shall inspect the project area. The district shall,
30-19 on request, supply the executive director with additional data and
30-20 information necessary for an investigation of the application, the
30-21 engineer's report, and the project.
30-22 (d) The executive director shall prepare a written report on
30-23 the project and include suggestions, if any, for changes or
30-24 improvements in the project. The executive director shall retain a
30-25 copy of the report and send a copy of the report to both the
30-26 commission and the district.
30-27 (e) The commission shall consider the application, the
31-1 engineer's report, the executive director's report, and any other
31-2 evidence allowed by commission rule to be considered in determining
31-3 the feasibility of the project.
31-4 (f) The commission shall determine whether the project to be
31-5 financed by the bonds is feasible and issue an order either
31-6 approving or disapproving, as appropriate, the issuance of the
31-7 bonds. The commission shall retain a copy of the order and send a
31-8 copy of the order to the district.
31-9 (g) Notwithstanding any provision of this code to the
31-10 contrary, the commission may approve the issuance of bonds of a
31-11 district without the submission of plans and specifications of the
31-12 improvements to be financed with the bonds. The commission may
31-13 condition the approval on any terms or conditions considered
31-14 appropriate by the commission.
31-15 (h) This section does not apply to a district if:
31-16 (1) the district's boundaries include one entire
31-17 county;
31-18 (2) the district was created by a special Act of the
31-19 legislature and:
31-20 (i) the district is located entirely within one
31-21 county;
31-22 (ii) entirely within one or more home-rule
31-23 municipalities;
31-24 (iii) the total taxable value of the real
31-25 property and improvements to the real property zoned by the one or
31-26 more home-rule municipalities for residential purposes and located
31-27 within the district does not exceed 25 percent of the total taxable
32-1 value of all taxable property in the district, as shown by the most
32-2 recent certified appraisal tax roll prepared by the appraisal
32-3 district for the county; and
32-4 (iv) the district was not required by law to
32-5 obtain commission approval of its bonds before the effective date
32-6 of this section;
32-7 (3) the district is a river authority as defined in
32-8 Section 30.003(4);
32-9 (4) the district was created by a special Act of the
32-10 legislature and:
32-11 (i) is a provider of service to two or more
32-12 municipalities; and
32-13 (ii) is governed by a board of directors
32-14 appointed or designated in whole or in part by the governor, the
32-15 Texas Water Development Board, or municipalities within its service
32-16 area; or
32-17 (5) the district is governed by a board of directors
32-18 appointed in whole or in part by the governor, a state agency, or
32-19 the governing body or chief elected official of a municipality or
32-20 county and does not provide water and sewer services to residential
32-21 retail customers as its principal function.
32-22 Sec. 49.182. COMMISSION SUPERVISION OF PROJECTS AND
32-23 IMPROVEMENTS. (a) During construction of projects and
32-24 improvements approved by the commission under this subchapter, no
32-25 substantial alterations may be made in the plans and specifications
32-26 without the approval of the commission in accordance with
32-27 commission rules.
33-1 (b) The executive director may inspect the improvements at
33-2 any time during construction to determine if the project is being
33-3 constructed in accordance with the plans and specifications
33-4 approved by the commission.
33-5 (c) If the executive director finds that the project is not
33-6 being constructed in accordance with the approved plans and
33-7 specifications, the executive director shall give written notice
33-8 immediately by certified mail to the district's manager and to each
33-9 board member.
33-10 (d) If within 10 days after the notice is mailed the board
33-11 does not take steps to ensure that the project is being constructed
33-12 in accordance with the approved plans and specifications, the
33-13 executive director shall give written notice of this fact to the
33-14 attorney general.
33-15 (e) After receiving this notice, the attorney general may
33-16 bring an action for injunctive relief or quo warranto proceedings
33-17 against the directors. Venue for either suit is exclusively in a
33-18 district court in Travis County.
33-19 Sec. 49.183. BOND SALES. (a) Except for refunding bonds,
33-20 or bonds sold to a state or federal agency, bonds issued by a
33-21 district shall be sold after advertising for and receiving
33-22 competitive sealed bids and shall be awarded to the bidder whose
33-23 bid produces the lowest net effective interest rate to the
33-24 district.
33-25 (b) Except for refunding bonds, bonds sold to a state or
33-26 federal agency, after any bonds are finally approved and before
33-27 they are sold by a district, the board shall publish an appropriate
34-1 notice of the sale:
34-2 (1) at least one time not less than 10 days before the
34-3 date of sale in a newspaper of general circulation in the county or
34-4 counties in which the district is located; and
34-5 (2) at least one time in one or more recognized
34-6 financial publications of general circulation in the state as
34-7 approved by the state attorney general.
34-8 (c) If the district is issuing bonds and refunding bonds as
34-9 one issue and if the initial principal amount of refunding bonds is
34-10 50 percent or more of the total initial principal amount of bonds
34-11 being issued, for the purposes of this section, the issue shall be
34-12 considered to be refunding bonds and competitive bids shall not be
34-13 required.
34-14 (d) A district's bonds are negotiable instruments within the
34-15 meaning and purposes of the Business & Commerce Code. A district's
34-16 bonds may be issued and bear interest in accordance with Chapter
34-17 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
34-18 717k, Vernon's Texas Civil Statutes); Chapter 3, Acts of the 61st
34-19 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
34-20 Civil Statutes); the Bond Procedures Act of 1981 (Article 717k-6,
34-21 Vernon's Texas Civil Statutes); and Chapter 656, Acts of the 68th
34-22 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
34-23 Civil Statutes). Except for this subsection, this section does not
34-24 apply to districts that are defined in Section 49.181(h)(3), (4),
34-25 or (5).
34-26 (e) Subsections (a) and (b) of this section do not apply to
34-27 district bonds issued pursuant to Chapter 656, Acts of the 68th
35-1 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
35-2 Civil Statutes).
35-3 Sec. 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
35-4 REGISTRATION OF BONDS. (a) Before bonds issued by a district are
35-5 delivered to the purchasers, a certified copy of all proceedings
35-6 relating to organization of the district for first bond issues and
35-7 issuance of the bonds and other relevant information shall be sent
35-8 to the attorney general.
35-9 (b) The attorney general shall carefully examine the bonds,
35-10 with regard to the record and the constitution and laws of this
35-11 state governing the issuance of bonds, and the attorney general
35-12 shall officially approve and certify the bonds if he or she finds
35-13 that they conform to the record and the constitution and laws of
35-14 this state and are valid and binding obligations of the district.
35-15 (c) After the attorney general approves and certifies the
35-16 bonds, the comptroller shall register them in a book kept for that
35-17 purpose and shall record the certificate of the attorney general.
35-18 (d) After the approval and registration of the bonds by the
35-19 comptroller, they shall be incontestable in any court or other
35-20 forum, for any reason, and shall be valid and binding obligations
35-21 in accordance with their terms for all purposes.
35-22 (e) A contract or lease may be submitted to the attorney
35-23 general along with the bond records, and, if submitted, the
35-24 approval by the attorney general of the bonds shall constitute an
35-25 approval of the contract or lease and the contract or lease shall
35-26 be incontestable.
35-27 Sec. 49.185. EXEMPTIONS. This subchapter shall not apply to
36-1 districts engaged in the distribution and sale of electric energy
36-2 to the public.
36-3 (Sections 49.186-49.190 reserved for expansion
36-4 SUBCHAPTER G. AUDIT OF DISTRICTS
36-5 Sec. 49.191. DUTY TO AUDIT. (a) The board shall have the
36-6 district's fiscal accounts and records audited annually at the
36-7 expense of the district.
36-8 (b) In all areas of conflict, the provisions of this
36-9 subchapter shall take precedence over all prior statutory
36-10 enactments.
36-11 (c) The person who performs the audit shall be a certified
36-12 public accountant or public accountant holding a permit from the
36-13 Texas State Board of Public Accountancy.
36-14 (d) The audit required by this section shall be completed
36-15 within 120 days after the close of the district's fiscal year.
36-16 Sec. 49.192. FORM OF AUDIT. The executive director shall
36-17 adopt accounting and auditing manuals and, except as otherwise
36-18 provided by the manuals, the district audit shall be performed
36-19 according to the generally accepted auditing standards adopted by
36-20 the American Institute of Certified Public Accountants. Financial
36-21 statements shall be prepared in accordance with generally accepted
36-22 accounting principles as adopted by the American Institute of
36-23 Certified Public Accountants.
36-24 Sec. 49.193. FINANCIAL REPORTS. The district's depository,
36-25 the district's treasurer, and the district's bookkeeper, if any,
36-26 who receives or has control over any district funds shall keep a
36-27 full and itemized account of district funds in its, his, or her
37-1 possession. Such itemized accounts and records shall be available
37-2 for audit.
37-3 Sec. 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
37-4 REPORTS. (a) After the board has approved the audit, it shall
37-5 submit a copy of the report to the executive director for filing
37-6 within 135 days after the close of the district's fiscal year.
37-7 (b) If the board refuses to approve the annual audit report,
37-8 the board shall submit a copy of the report to the executive
37-9 director for filing within 135 days after the close of the
37-10 district's fiscal year, accompanied by a statement from the board
37-11 explaining the reasons for its failure to approve the report.
37-12 (c) Copies of the audit, the annual financial dormancy
37-13 affidavit, or annual financial report described in Sections 49.197
37-14 and 49.198 of this subchapter shall be filed annually in the office
37-15 of the district.
37-16 (d) Each district shall file with the executive director an
37-17 annual filing affidavit in a format prescribed by the executive
37-18 director, executed by a duly authorized representative of the
37-19 board, stating that all copies of the annual audit report, annual
37-20 financial dormancy affidavit, or annual financial report have been
37-21 filed under this section.
37-22 (e) The annual filing affidavit shall be submitted with the
37-23 applicable annual document when it is submitted to the executive
37-24 director for filing as prescribed by this subchapter.
37-25 (f) The executive director shall file with the attorney
37-26 general the names of any districts that do not comply with the
37-27 provisions of this subchapter.
38-1 Sec. 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
38-2 executive director may review the audit report of each district.
38-3 (b) The commission may request that the state auditor assist
38-4 in the establishment of standards and procedures for review of
38-5 district audits by the executive director.
38-6 (c) If the executive director has any objections or
38-7 determines any violations of generally accepted auditing standards
38-8 or accounting principles, statutes, or board rules, or if the
38-9 executive director has any recommendations, he or she shall notify
38-10 the board and the district's auditor.
38-11 (d) Before the audit report may be accepted by the executive
38-12 director as being in compliance with the provisions of this
38-13 subchapter, the board and the auditor shall remedy objections and
38-14 correct violations of which they have been notified by the
38-15 executive director.
38-16 (e) If the audit report indicates that any penal law has
38-17 been violated, the executive director shall notify the appropriate
38-18 county or district attorney and the attorney general.
38-19 Sec. 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT RECORDS.
38-20 (a) The executive director shall have access to all vouchers,
38-21 receipts, district fiscal and financial records, and other district
38-22 records which the executive director considers necessary.
38-23 (b) All district fiscal records shall be prepared on a
38-24 timely basis and maintained in an orderly manner in accordance with
38-25 generally accepted accounting principles. The fiscal records shall
38-26 be available for public inspection during regular business hours.
38-27 A district's fiscal records may be removed from the district's
39-1 office for the purposes of recording its fiscal affairs and
39-2 preparing an audit, during which time the fiscal records are under
39-3 the control of the district's auditor.
39-4 Sec. 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
39-5 financially dormant district is a district that had:
39-6 (1) $500 or less of receipts from operations, tax
39-7 assessments, loans, contributions, or any other sources during the
39-8 calendar year;
39-9 (2) $500 or less of disbursements of funds during the
39-10 calendar year;
39-11 (3) no bonds or other long-term (more than one year)
39-12 liabilities outstanding during the calendar year; and
39-13 (4) no cash or investments that exceeded $5,000 at any
39-14 time during the calendar year.
39-15 (b) A financially dormant district may elect to submit to
39-16 the executive director a financial dormancy affidavit instead of
39-17 complying with the audit requirements of Section 49.191 of this
39-18 code.
39-19 (c) The annual financial dormancy affidavit shall be
39-20 prepared in a format prescribed by the executive director and shall
39-21 be submitted for filing by a duly authorized representative of the
39-22 district.
39-23 (d) The affidavit must be filed annually on or before
39-24 January 31 with the executive director until such time as the
39-25 district becomes financially active and the board adopts a fiscal
39-26 year; thereafter, the district shall file annual audit reports as
39-27 prescribed by this subchapter.
40-1 (e) A district that becomes financially dormant after having
40-2 been financially active shall be required to file annual financial
40-3 dormancy affidavits on or before January 31, until such time the
40-4 district is either dissolved or again becomes financially active.
40-5 (f) Districts governed by this section are subject to
40-6 periodic audits by the executive director.
40-7 Sec. 49.198. AUDIT REPORT EXEMPTION. (a) A district that
40-8 is not collecting taxes may elect to file annual financial reports
40-9 with the executive director in lieu of the district's compliance
40-10 with Section 49.191 provided:
40-11 (1) the district had no bonds or other long-term (more
40-12 than one year) liabilities outstanding during the fiscal period;
40-13 (2) the district did not have gross receipts from
40-14 operations, loans, or contributions in excess of $100,000 during
40-15 the fiscal period; and
40-16 (3) the district's cash and temporary investments were
40-17 not in excess of $100,000 at any time during the fiscal period.
40-18 (b) The annual financial report must be accompanied by an
40-19 affidavit attesting to the accuracy and authenticity of the
40-20 financial report signed by a duly authorized representative of the
40-21 district.
40-22 (c) The annual financial report and affidavit in a format
40-23 prescribed by the executive director must be on file with the
40-24 executive director within 45 days after the close of the district's
40-25 fiscal year.
40-26 (d) Districts governed by this section are subject to
40-27 periodic audits by the executive director.
41-1 Sec. 49.199. POLICIES AND AUDITS OF DISTRICTS. (a) Subject
41-2 to the law governing the district, the board shall adopt the
41-3 following in writing:
41-4 (1) a code of ethics for district directors, officers,
41-5 employees, and persons who are engaged in handling investments for
41-6 the district;
41-7 (2) a policy relating to travel expenditures;
41-8 (3) a policy relating to district investments that
41-9 ensures that:
41-10 (A) purchases and sales of investments are
41-11 initiated by authorized individuals, conform to investment
41-12 objectives and regulations, and are properly documented and
41-13 approved; and
41-14 (B) periodic review is made of district
41-15 investments to evaluate investment performance and security;
41-16 (4) policies and procedures for selection, monitoring,
41-17 or review and evaluation of professional services;
41-18 (5) a uniform method of accounting and reporting for
41-19 industrial development bonds and pollution control bonds that
41-20 complies with requirements of the commission; and
41-21 (6) policies that ensure a better use of management
41-22 information including:
41-23 (A) budgets for use in planning and controlling
41-24 cost;
41-25 (B) an audit committee of the board; and
41-26 (C) uniform reporting requirements that use
41-27 "Audits of State and Local Governmental Units" as a guide on audit
42-1 working papers and that uses "Governmental Accounting and Financial
42-2 Reporting Standards."
42-3 (b) The state auditor may audit the financial transactions
42-4 of any district if the state auditor determines that the audit is
42-5 necessary.
42-6 Sec. 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
42-7 DISTRICTS. A district that provides wholesale potable water and
42-8 wastewater services shall adopt a program that provides such
42-9 wholesale customers an opportunity to review and comment on the
42-10 district's annual budget that applies to their services before that
42-11 budget is adopted by the board.
42-12 (Sections 49.201-49.210 reserved for expansion
42-13 SUBCHAPTER H. POWERS AND DUTIES
42-14 Sec. 49.211. POWERS. (a) A district shall have the
42-15 functions, powers, authority, rights, and duties which will permit
42-16 accomplishment of the purposes for which it was created or the
42-17 purposes authorized by the constitution, this code, or any other
42-18 law.
42-19 (b) A district is authorized to purchase, construct,
42-20 acquire, own, operate, maintain, repair, improve, or extend inside
42-21 and outside its boundaries any and all land, works, improvements,
42-22 facilities, plants, equipment, and appliances necessary to
42-23 accomplish the purposes of its creation or the purposes authorized
42-24 by this code or any other law.
42-25 Sec. 49.212. FEES AND CHARGES. (a) A district may adopt
42-26 and enforce all necessary charges, fees, or rentals, in addition to
42-27 taxes, for providing or making available any district facility or
43-1 service.
43-2 (b) A district may require a deposit for any services or
43-3 facilities furnished and the district may or may not provide that
43-4 the deposit will bear interest.
43-5 (c) Subject to observance of the procedure appropriate to
43-6 the circumstances, a district may discontinue any or all facilities
43-7 or services to prevent an abuse or to enforce payment of an unpaid
43-8 charge, fee, or rental due the district, including taxes which have
43-9 been delinquent for not less than six months.
43-10 (d) Notwithstanding any provision of law to the contrary, a
43-11 district which charges a fee which is an impact fee as described in
43-12 Section 395.001(4), Local Government Code, must comply with Chapter
43-13 395, Local Government Code. A charge or fee by a district for
43-14 construction, installation, or inspection of a tap or connection to
43-15 district water, sanitary sewer, or drainage facilities, including
43-16 all necessary service lines and meters, which (i) does not exceed
43-17 three (3) times the actual and reasonable costs to the district for
43-18 such work or (ii), if made to a nontaxable entity, does not exceed
43-19 the actual costs to the district for such work and for all
43-20 facilities which are necessary to provide district services to such
43-21 entity and that are financed or are to be financed in whole or in
43-22 part by tax-supported bonds of the district, shall not be deemed or
43-23 considered to be an impact fee under Chapter 395, Local Government
43-24 Code.
43-25 Sec. 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A district
43-26 may contract with a person or any public or private entity for the
43-27 joint construction, financing, ownership, and operation of any
44-1 works, improvements, facilities, plants, equipment, and appliances
44-2 necessary to accomplish any purpose or function permitted by a
44-3 district, or a district may purchase an interest in any project
44-4 used for any purpose or function permitted by a district.
44-5 (b) A district may enter into contracts with any person or
44-6 any public or private entity in the performance of any purpose or
44-7 function permitted by a district.
44-8 (c) A district may enter into contracts, which may be of
44-9 unlimited duration, with persons or any public or private entities
44-10 on the terms and conditions the board may consider desirable, fair,
44-11 and advantageous for:
44-12 (1) the purchase or sale of water;
44-13 (2) the collection, transportation, treatment, and
44-14 disposal of its domestic, industrial, and communal wastes or the
44-15 collection, transportation, treatment, and disposal of domestic,
44-16 industrial, and communal wastes of other persons;
44-17 (3) the gathering, diverting, and control of local
44-18 storm water, or other local harmful excesses of water;
44-19 (4) the continuing and orderly development of the land
44-20 and property within the district through the purchase,
44-21 construction, or installation of works, improvements, facilities,
44-22 plants, equipment, and appliances which the district may otherwise
44-23 be empowered and authorized to do or perform so that, to the
44-24 greatest extent reasonably possible, considering sound engineering
44-25 and economic practices, all of the land and property may be placed
44-26 in a position to ultimately receive the services of the works,
44-27 improvements, plants, facilities, equipment, and appliances;
45-1 (5) the maintenance and operation of any works,
45-2 improvements, facilities, plants, equipment, and appliances of the
45-3 district or of another person or public or private entity;
45-4 (6) the collection, treatment, and disposal of
45-5 municipal solid wastes;
45-6 (7) the exercise of any other rights, powers, and
45-7 duties granted to a district.
45-8 Sec. 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
45-9 provisions of Chapter 171, Local Government Code, shall apply to
45-10 the award of district contracts.
45-11 Sec. 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
45-12 district may purchase, construct, acquire, own, operate, repair,
45-13 improve, or extend all works, improvements, facilities, plants,
45-14 equipment, and appliances necessary to provide any services or
45-15 facilities authorized to be provided by the district to areas
45-16 contiguous to or in the vicinity of the district provided the
45-17 district does not duplicate a service or facility of another public
45-18 entity. A district providing potable water and sewer utility
45-19 services to household users shall not provide services or
45-20 facilities to serve areas outside the district which are also
45-21 within the corporate limits of a city without securing a resolution
45-22 or ordinance of the city granting consent for the district to serve
45-23 the area within the city.
45-24 (b) To secure money for this purpose, a district is
45-25 authorized to issue and sell negotiable bonds and notes which are
45-26 payable from the levy and collection of ad valorem taxes on all
45-27 taxable property within the district or from all or any designated
46-1 part of the revenues received from the operation of the district's
46-2 works, improvements, facilities, plants, equipment, and appliances
46-3 or from a combination of taxes and revenues.
46-4 (c) Any bonds and notes may be issued upon the terms and
46-5 conditions set forth in this code.
46-6 (d) A district shall not be required to hold a certificate
46-7 of convenience and necessity as a precondition for providing retail
46-8 water or sewer service to any customer or service area,
46-9 notwithstanding the fact that such customer or service area may be
46-10 located either within or outside the boundaries of the district or
46-11 has previously received water or sewer service from an entity
46-12 required by law to hold a certificate of convenience and necessity
46-13 as a precondition for such service. This subsection does not
46-14 authorize a district to provide services within an area for which a
46-15 retail public utility holds a certificate of convenience and
46-16 necessity or within the boundaries of another district without that
46-17 district's consent, unless the district has a valid certificate of
46-18 convenience and necessity to provide services to that area.
46-19 (e) A district is authorized to establish, maintain, revise,
46-20 charge, and collect the rates, fees, rentals, tolls, or other
46-21 charges for the use, services, and facilities which provide service
46-22 to areas outside the district which are considered necessary and
46-23 which may be higher than those charged for comparable service to
46-24 users within the district.
46-25 (f) The rates, fees, rental, tolls, or other charges shall
46-26 be at least sufficient to meet the expense of operating and
46-27 maintaining the services and facilities for water and sanitary
47-1 sewer system serving areas outside the district and to pay the
47-2 principal of and interest and redemption price on bonds issued to
47-3 purchase, construct, acquire, own, operate, repair, improve, or
47-4 extend the services or facilities.
47-5 Sec. 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A district
47-6 may contract for or employ its own peace officers with power to
47-7 make arrests when necessary to prevent or abate the commission of:
47-8 (1) any offense against the rules of the district when
47-9 the offense or threatened offense occurs on any land, water, or
47-10 easement owned or controlled by the district;
47-11 (2) any offense involving injury or detriment to any
47-12 property owned or controlled by the district; and
47-13 (3) any offense against the laws of the state.
47-14 (b) A district may appoint reserve peace officers who may be
47-15 called to serve as peace officers by the district during the actual
47-16 discharge of their official duties.
47-17 (c) A reserve peace officer serves at the discretion of the
47-18 district and may be called into service if the district considers
47-19 it necessary to have additional officers to preserve the peace in
47-20 or enforce the law of the district.
47-21 (d) A reserve peace officer on active duty and actively
47-22 engaged in assigned duties has the same rights, privileges, and
47-23 duties as any other peace officer of the district.
47-24 (e) Any peace officer, before beginning to perform any
47-25 duties and at the time of appointment, must take an oath and
47-26 execute a bond conditioned on faithful performance of such
47-27 officer's duties in the amount of $1,000 payable to the district.
48-1 The oath and the bond shall be filed in the district office.
48-2 Sec. 49.217. Operation of Certain Motor Vehicles On or Near
48-3 Public Facilities. (a) In this section, "motor vehicle" means a
48-4 self-propelled device in, upon, or by which a person or property is
48-5 or may be transported or drawn on a road or highway.
48-6 (b) Except as provided in Subsections (c) and (d) of this
48-7 section, a person may not operate a motor vehicle on a levee, in a
48-8 drainage ditch, or on land adjacent to a levee, canal, ditch,
48-9 exposed conduit, pipeline, pumping plant, storm water facility, or
48-10 other facility for the transmission, storage, treatment, or
48-11 distribution of water, sewage, or storm water that is owned or
48-12 controlled by a district.
48-13 (c) A district may authorize the use of motor vehicles on
48-14 land that it owns or controls by posting signs on the property.
48-15 (d) This section does not prohibit a person from:
48-16 (1) driving on a public road or highway; or
48-17 (2) operating a motor vehicle that is being used for
48-18 repair or maintenance of public water, sewer, or storm water
48-19 facilities.
48-20 (e) A person who operates a motor vehicle in violation of
48-21 Subsection (b) of this section commits an offense. An offense
48-22 under this section is a Class C misdemeanor, except that if a
48-23 person has been convicted of an offense under this section, a
48-24 subsequent offense is a Class B misdemeanor.
48-25 Sec. 49.218. Acquisition of Property. (a) A district or a
48-26 water supply corporation may acquire land, materials, waste
48-27 grounds, easements, rights-of-way, equipment, contract or permit
49-1 rights or interests and other property, real or personal,
49-2 considered necessary for the purpose of accomplishing any one or
49-3 more of the district's or water supply corporation's purposes
49-4 provided in this code or in any other law.
49-5 (b) A district or water supply corporation shall have the
49-6 right to acquire property by gift, grant, or purchase and the right
49-7 to acquire property shall include property considered necessary for
49-8 the construction, improvement, extension, enlargement, operation,
49-9 or maintenance of the plants, works, improvements, facilities,
49-10 equipment, or appliances of a district or a water supply
49-11 corporation.
49-12 (c) A district or water supply corporation may acquire
49-13 either the fee simple title to or an easement on all land, both
49-14 public and private, either inside or outside its boundaries and may
49-15 acquire the title to or an easement on property other than land
49-16 held in fee.
49-17 (d) A district or water supply corporation may also lease
49-18 property from others for its use on such terms and conditions as
49-19 the board of the district or the board of directors of the water
49-20 supply corporation may determine to be advantageous.
49-21 Sec. 49.219. ACQUISITION OF EXISTING FACILITIES. Any
49-22 district may acquire by agreement all or any part of existing
49-23 water, sanitary sewer, or drainage systems of any water supply
49-24 corporation, including works, improvements, facilities, plants,
49-25 equipment, appliances, contract rights, and other assets and rights
49-26 that are completed, partially completed, or under construction, and
49-27 in connection therewith a district may assume all or any part of
50-1 the contracts, indebtedness, or obligations of the corporation
50-2 related to said systems, including any contracts, indebtedness, or
50-3 obligations related to or payable from the revenues of said
50-4 systems, and may perform all or any part of the obligations of said
50-5 corporation in the same manner and to the same extent that any
50-6 other purchaser or assignee could be bound on any such contracts,
50-7 indebtedness, or obligations. Before assuming any indebtedness or
50-8 obligations of such corporation related to any such system, a
50-9 district other than a district defined in Section 49.181(h)(3) or
50-10 (4) shall obtain the approval of the commission of such assumption.
50-11 Sec. 49.220. Right to Use Existing RightS-of-Way. All
50-12 districts or water supply corporations are given rights-of-way,
50-13 within, along, under, and across all public, state, county, city,
50-14 town, or village roads, highways, and rights-of-way and other
50-15 public rights-of-way without the requirement for surety bond or
50-16 security.
50-17 Sec. 49.221. Right to Enter Land. (a) The directors,
50-18 engineers, attorneys, agents, operators, and employees of a
50-19 district or water supply corporation may go on any land to inspect,
50-20 make surveys, or perform tests to determine the condition, value,
50-21 and usability of the property, with reference to the proposed
50-22 location of works, improvements, plants, facilities, equipment, or
50-23 appliances. The cost of restoration shall be borne by the district
50-24 or the water supply corporation.
50-25 (b) District employees and agents are entitled to enter any
50-26 public or private property within the boundaries of the district or
50-27 adjacent to any reservoir or other property owned by the district
51-1 at any reasonable time for the purpose of inspecting and
51-2 investigating conditions relating to the quality of water in the
51-3 state or the compliance with any rule, regulation, permit, or other
51-4 order of the district. District employees or agents acting under
51-5 this authority who enter private property shall observe the
51-6 establishment's rules and regulations concerning safety, internal
51-7 security, and fire protection and shall notify any occupant or
51-8 management of their presence and shall exhibit proper credentials.
51-9 Sec. 49.222. Eminent Domain. (a) A district or water
51-10 supply corporation may acquire by condemnation any land, easements,
51-11 or other property inside or outside the district boundaries, or the
51-12 boundaries of the certificated service area for a water supply
51-13 corporation, necessary for water, sanitary sewer, storm drainage,
51-14 or flood drainage or control purposes or for any other of its
51-15 projects or purposes, and may elect to condemn either the fee
51-16 simple title or a lesser property interest.
51-17 (b) The right of eminent domain shall be exercised in the
51-18 manner provided in Chapter 21, Property Code, except that a
51-19 district or a water supply corporation shall not be required to
51-20 give bond for appeal or bond for costs in any condemnation suit or
51-21 other suit to which it is a party and shall not be required to
51-22 deposit more than the amount of any award in any suit.
51-23 (c) The power of eminent domain may not be used for the
51-24 condemnation of land for the purpose of acquiring rights to
51-25 underground water or of water or water rights.
51-26 Sec. 49.223. Costs of Relocation of Property. (a) In the
51-27 event that the district or the water supply corporation, in the
52-1 exercise of the power of eminent domain or power of relocation, or
52-2 any other power, makes necessary the relocation, raising, lowering,
52-3 rerouting, or change in grade of or alteration in construction of
52-4 any road, bridge, highway, railroad, electric transmission line,
52-5 telegraph, or telephone properties, facilities, or pipelines, all
52-6 necessary relocations, raising, lowering, rerouting, or change in
52-7 grade or alteration of construction shall be done at the sole
52-8 expense of the district or the water supply corporation unless
52-9 otherwise agreed to in writing. Such relocation shall be
52-10 accomplished in a timely manner so that the project of the district
52-11 or the water supply corporation is not delayed.
52-12 (b) "Sole expense" means the actual cost of the relocation,
52-13 raising, lowering, rerouting, or change in grade or alteration of
52-14 construction and providing comparable replacement without enhancing
52-15 the facilities after deducting from it the net salvage value
52-16 derived from the old facility.
52-17 Sec. 49.224. POWER TO CONDEMN CEMETERIES. (a) The use of
52-18 land for the construction of district dams and creation of lakes
52-19 and reservoirs for the purpose of conservation and development of
52-20 the natural resources of this state is hereby declared to be
52-21 superior to all other uses; and for these purposes a district has
52-22 the power of eminent domain to acquire land, improvements, and
52-23 other property owned and held for cemeteries or burial places that
52-24 is necessary for the construction of a dam or that lies inside the
52-25 area to be covered by the lake or reservoir or within 300 feet of
52-26 the high water line of the lake or reservoir.
52-27 (b) Except as otherwise provided by this subchapter, the
53-1 procedure in condemnation proceedings is governed by Chapter 21,
53-2 Property Code.
53-3 (c) Notice shall be served on the title owner of the land on
53-4 which the cemetery is situated as provided in Chapter 21, Property
53-5 Code. General notice to persons having relatives interred in the
53-6 cemetery shall be given by publication for two consecutive weeks in
53-7 a newspaper circulated in the county in which the cemetery is
53-8 situated.
53-9 (d) The measure of damages in these eminent domain
53-10 proceedings shall be assessed as in other condemnation cases. An
53-11 additional amount of damages shall be assessed to cover the cost of
53-12 removing and reinterring the bodies interred in the cemetery or
53-13 burial place and the cost of removing and resetting the monuments
53-14 or markers erected at the graves.
53-15 (e) The additional assessment shall be deposited in the
53-16 registry of the county court and disbursed only for the purpose of
53-17 removing and reinterring the bodies in other cemeteries in Texas
53-18 agreed on between the district and the relatives of the deceased
53-19 persons.
53-20 (f) If in any case the district and the relatives of a
53-21 deceased person cannot agree within 30 days on a cemetery for
53-22 reinterment, or no relatives appear within that time, then the
53-23 county judge shall designate the cemetery for reinterment.
53-24 (g) Instead of depositing the additional assessment in the
53-25 registry of the court, the district may execute a bond sufficient
53-26 to cover costs of removing and reinterring the bodies. The bond
53-27 shall be payable to and approved by the county judge and
54-1 conditioned that the bodies will be removed and reinterred as
54-2 provided by this section.
54-3 Sec. 49.225. Leases. A district may lease any of its
54-4 property, real or personal, to any person. The lease may contain
54-5 the terms and provisions which the board determines to be
54-6 advantageous to the district.
54-7 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
54-8 Property. (a) Any land, interest in land, or personal property
54-9 owned by the district which is found by the board to be surplus and
54-10 is not needed by the district may be sold under order of the board
54-11 either by public or private sale, or the land, interest in land, or
54-12 personal property may be exchanged for other land, interest in
54-13 land, or personal property needed by the district. Except as
54-14 provided in Subsection (b), land, interest in land, or personal
54-15 property must be exchanged for like fair market value, which value
54-16 may be determined by the district.
54-17 (b) Any property dedicated to or acquired by the district
54-18 without expending district funds may be abandoned or released to
54-19 the original grantor, the grantor's heirs, assigns, executors, or
54-20 successors upon terms and conditions deemed necessary or
54-21 advantageous to the district and without receiving compensation for
54-22 such abandonment or release. District property may also be
54-23 abandoned, released, exchanged or transferred to another district,
54-24 municipality, county, countywide agency, or authority upon terms
54-25 and conditions deemed necessary or advantageous to the district.
54-26 Narrow strips of property resulting from boundary or surveying
54-27 conflicts or similar causes, or from insubstantial encroachments by
55-1 abutting property owners, may be abandoned, released, exchanged or
55-2 transferred to such abutting owners upon terms and conditions
55-3 deemed necessary or advantageous to the district. Chapter 272,
55-4 Local Government Code, shall not apply to this subsection.
55-5 (c) Before either a public or a private sale of real
55-6 property not required by the district, the district shall give
55-7 notice of the intent to sell by publishing notice once a week for
55-8 two consecutive weeks in one or more newspapers with general
55-9 circulation in the district.
55-10 (d) If the district has outstanding bonds secured by a
55-11 pledge of tax revenues, the proceeds of the sale of property not
55-12 required by the district shall be applied to retire outstanding
55-13 bonds of the district when required by the district's applicable
55-14 bond resolutions.
55-15 (e) If the district does not have any outstanding bonds, the
55-16 proceeds derived from the sale of the personal property or land not
55-17 required by the district may be used for any lawful purpose.
55-18 Sec. 49.227. Authority to Act Jointly. A district or water
55-19 supply corporation may act jointly with any other person or entity,
55-20 private or public, whether within the State of Texas or the United
55-21 States, in the performance of any of the powers and duties
55-22 permitted by this code or any other laws.
55-23 Sec. 49.228. Damage to Property. A person who wilfully
55-24 destroys, defaces, damages or interferes with district or water
55-25 supply corporation property is guilty of a Class B misdemeanor.
55-26 Sec. 49.229. Grants and Gifts. A district may accept
55-27 grants, gratuities, advances, and loans in any form from any source
56-1 approved by the board, including any governmental entity, any
56-2 private or public corporation, and any other person and may make
56-3 and enter into contracts, agreements, and covenants which the board
56-4 considers appropriate in connection with acceptance of grants,
56-5 gratuities, advances, and loans.
56-6 Sec. 49.230. Area-Wide Wastewater Treatment. The powers and
56-7 duties conferred on the district are granted subject to the policy
56-8 of the state to encourage the development and use of integrated
56-9 area-wide wastewater collection, treatment, and disposal systems to
56-10 serve the wastewater disposal needs of the citizens of the state
56-11 whenever economically feasible and competitive to do so, it being
56-12 an objective of the policy to avoid the economic burden to the
56-13 people and the impact on the quality of the water in the state
56-14 which result from the construction and operation of numerous small
56-15 wastewater collection, treatment, and disposal facilities to serve
56-16 an area when an integrated area-wide wastewater collection,
56-17 treatment, and disposal system for the area can be reasonably
56-18 provided.
56-19 Sec. 49.231. STANDBY FEES. (a) In this section:
56-20 (1) "Standby fee" means a charge, other than a tax,
56-21 imposed on undeveloped property for the availability of potable
56-22 water, sanitary sewer, or drainage facilities and services.
56-23 (2) "Undeveloped property" means a tract, lot, or
56-24 reserve in the district to which no potable water, sanitary sewer,
56-25 or drainage connections have been made for which:
56-26 (A) water, sanitary sewer, or drainage
56-27 facilities and services are available;
57-1 (B) water supply, wastewater treatment plant
57-2 capacity, or drainage capacity sufficient to serve the property is
57-3 available; or
57-4 (C) major water supply lines, wastewater
57-5 collection lines, or drainage facilities with capacity sufficient
57-6 to serve the property are available.
57-7 (b) A district that proposes to provide or actually provides
57-8 retail potable water or sewer utility services, or drainage
57-9 services as the principal function of the district, may, with the
57-10 approval of the commission, adopt and impose on the owners of
57-11 undeveloped property in the district a standby fee that is in
57-12 addition to taxes levied by the district. A district may not
57-13 impose a standby fee for debt service purposes on undeveloped
57-14 property unless the facilities and services available to the
57-15 property have been financed by the district; however, a district
57-16 may impose a standby fee for operating and maintaining facilities
57-17 which it has not financed. The district may impose standby fees in
57-18 different amounts to fairly reflect the level and type of services
57-19 and facilities available to serve different property. The intent
57-20 of the standby fee is to distribute a fair portion of the cost
57-21 burden for operating and maintaining the facilities and for
57-22 financing capital costs of the facilities to owners of property who
57-23 have not constructed improvements but have potable water, sewer, or
57-24 drainage capacity available. Any revenues collected from the
57-25 standby fees shall be used to pay operation and maintenance
57-26 expenses, to pay debt service on the bonds, or both.
57-27 (c) If the board described in Subsection (b) of this section
58-1 desires to adopt and impose a standby fee, the board shall submit
58-2 to the commission an application for authority to adopt and impose
58-3 the standby fee. The application must describe the tracts of
58-4 undeveloped property in the district and state the amount of the
58-5 proposed fee.
58-6 (d) The executive director shall examine an application
58-7 submitted under Subsection (c) of this section and shall
58-8 investigate the financial condition of the district, including the
58-9 district's assets, liabilities, sources of revenue, level of
58-10 utility service rates, and level of debt service and maintenance
58-11 tax rates. On the request of the executive director, the district
58-12 shall submit any information the executive director considers
58-13 relevant to the examination and investigation. The executive
58-14 director shall prepare a written report on the application and the
58-15 district's financial condition, retain a copy of the report, and
58-16 send a copy of the report to the commission and the district.
58-17 (e) The commission shall hold a hearing on an application
58-18 submitted under Subsection (c) of this section. Notice of the
58-19 hearing shall be published in a newspaper of general circulation in
58-20 the county or counties in which the district is located once a week
58-21 for two consecutive weeks. The first publication must occur not
58-22 later than the 30th day before the date of the hearing. The
58-23 district shall send, not later than the 30th day before the date of
58-24 the hearing, notice of the hearing by certified mail, return
58-25 receipt requested, to each owner of undeveloped property in the
58-26 district. On the date the application is filed, the district's tax
58-27 assessor and collector shall certify to the district the names of
59-1 the persons owning undeveloped land in the district as reflected by
59-2 the most recent certified tax roll of the district. Notice of the
59-3 hearing must be sent by certified mail, return receipt requested,
59-4 to each mortgagee of record that has submitted a written request to
59-5 be informed of any hearings. To be effective, the written request
59-6 must be received by the district not later than the 60th day before
59-7 the date of the hearing. The written request for notice must
59-8 include the name and address of the mortgagee, the name of the
59-9 property owner in the district, and a brief property description.
59-10 (f) The commission shall consider the application, the
59-11 report of the executive director, and any other evidence allowed by
59-12 commission rule. The commission may approve the application only
59-13 if the commission finds that the fee is necessary to maintain the
59-14 financial integrity and stability of the district and fairly
59-15 allocates the costs of district facilities and services among
59-16 property owners of the district.
59-17 (g) After a hearing on an application under Subsection (e)
59-18 of this section, the commission shall issue an order approving or
59-19 disapproving the application. The commission shall retain a copy
59-20 of the order and send a copy of the order to the district.
59-21 (h) The commission may approve the adoption and imposition
59-22 of the standby fee for a period of not more than three years. The
59-23 imposition of a standby fee may be renewed for additional periods
59-24 of not more than three years each in the same manner provided in
59-25 this section for initial approval of the standby fee.
59-26 (i) If approved by the commission, the board by resolution
59-27 or order may impose an annual standby fee on undeveloped land in
60-1 the district.
60-2 (j) The board may:
60-3 (1) charge interest, at the rate of one percent a
60-4 month, on a standby fee not paid in a timely manner in accordance
60-5 with the resolution or order imposing the standby fee; and
60-6 (2) refuse to provide potable water, sanitary sewer,
60-7 or drainage service to the property for which the fee was assessed
60-8 until all delinquent standby fees on the property and interest on
60-9 those fees are fully paid.
60-10 (k) A standby fee imposed under this section is a personal
60-11 obligation of the person owning the undeveloped property on January
60-12 1 of the year for which the fee is assessed. A person is not
60-13 relieved of the obligation on transfer of title to the property.
60-14 On January 1 of each year, a lien attaches to undeveloped property
60-15 to secure payment of any standby fee imposed under this section and
60-16 the interest, if any, on the fee. The lien has the same priority
60-17 as a lien for taxes of the district.
60-18 (l) If a standby fee imposed under this section is not paid
60-19 in a timely manner, a district may file suit to foreclose the lien
60-20 securing payment of the fee and interest or to enforce the personal
60-21 obligation for the fee and interest, or both. The district may
60-22 recover, in addition to the fee and interest, reasonable costs,
60-23 including attorney's fees, incurred by the district in enforcing
60-24 the lien or obligation not to exceed 20 percent of the delinquent
60-25 fee and interest. A suit authorized by this subsection must be
60-26 filed not later than the fourth anniversary of the date the fee
60-27 became due. A fee delinquent for more than four years and interest
61-1 on the fee are considered paid unless a suit is filed before the
61-2 expiration of the four-year period.
61-3 (m) Chapter 395, Local Government Code, does not apply to a
61-4 standby fee imposed under this section.
61-5 (n) For purposes of title insurance policies issued under
61-6 the authority of Chapter 9, Insurance Code, standby fees are
61-7 considered taxes.
61-8 (Sections 49.232-49.270 reserved for expansion
61-9 SUBCHAPTER I. CONSTRUCTION CONTRACTS
61-10 Sec. 49.271. CONTRACTS FOR CONSTRUCTION WORK. (a) Any
61-11 contract made by the board for construction work shall conform to
61-12 the provisions of this chapter.
61-13 (b) The contract shall contain, incorporate by reference, or
61-14 have attached to it, the specifications, plans, and details for
61-15 work included in the contract. All work shall be done in
61-16 accordance with these plans and specifications and any authorized
61-17 change orders under the supervision of the board or its designee.
61-18 (c) The district may adopt minimum criteria for the
61-19 qualifications of bidders on its construction contracts and for
61-20 sureties issuing payment and performance bonds. For contracts over
61-21 $25,000, the district shall require a person who bids to submit a
61-22 certified or cashier's check on a responsible bank in the state
61-23 equal to at least two percent of the total amount of the bid as a
61-24 good faith deposit to ensure execution of the contract. The
61-25 district may also require attendance by a principal of each
61-26 prospective bidder at mandatory pre-bid conferences and may make
61-27 any reasonable additional requirements regarding the taking of bids
62-1 which the district may deem appropriate in order to obtain
62-2 competitive bids from responsible contractors and to minimize
62-3 contract disputes.
62-4 Sec. 49.272. REPORTS FURNISHED TO PROSPECTIVE BIDDERS. The
62-5 board shall furnish to any person who desires to bid on
62-6 construction work, and who makes a request in writing, a copy of
62-7 the engineer's report or plans and specifications showing the
62-8 details of the work to be done. The board may charge for each copy
62-9 of the engineer's report or plans and specifications an amount
62-10 sufficient to cover the cost of making the copy.
62-11 Sec. 49.273. CONSTRUCTION CONTRACT AWARD. (a) The board
62-12 shall contract for construction in accordance with this section.
62-13 (b) A construction contract may cover all the work to be
62-14 provided by the district or the various elements of the work may be
62-15 segregated for the purpose of receiving bids and awarding
62-16 contracts. A contract may provide that the work will be
62-17 constructed in stages over a period of years.
62-18 (c) A construction contract may provide for the payment of a
62-19 total sum that is the completed cost of the work or may be based on
62-20 bids to cover cost of units of the various elements entering into
62-21 the work as estimated and approximately specified by the district's
62-22 engineers, or a contract may be let and awarded in any other form
62-23 or composite of forms and to any responsible person or persons
62-24 that, in the board's judgment, will be most advantageous to the
62-25 district and result in the best and most economical completion of
62-26 the district's proposed plants, improvements, facilities, works,
62-27 equipment, and appliances.
63-1 (d) For construction contracts for $25,000 or more, the
63-2 board shall advertise the letting of the contract, including the
63-3 general conditions, time, and place of opening of sealed bids. The
63-4 notice shall be published in one or more newspapers circulated in
63-5 each county in which part of the district is located. If one
63-6 newspaper meets both of these requirements, publication in such
63-7 newspaper is sufficient. If there are more than four counties in
63-8 the district, notice may be published in any newspaper with general
63-9 circulation in the district. The notice shall be published once a
63-10 week for three consecutive weeks before the date that the bids are
63-11 opened, and the first publication shall be not later than the 21st
63-12 day before the date of the opening of the sealed bids.
63-13 (e) For construction contracts for $15,000 or more but less
63-14 than $25,000, the board shall solicit written competitive bids on
63-15 uniform written specifications from at least three bidders.
63-16 (f) For construction contracts of less than $15,000, the
63-17 board is not required to advertise or seek competitive bids.
63-18 (g) The board may not subdivide work to avoid the
63-19 advertising requirements specified in this section.
63-20 (h) The board may not accept bids that include substituted
63-21 items unless the substituted items were included in the original
63-22 bid proposal and all bidders had the opportunity to bid on the
63-23 substituted items; or if notice is given to all bidders at a
63-24 mandatory pre-bid conference.
63-25 (i) Change orders to contracts may be issued only as a
63-26 result of unanticipated conditions encountered during construction
63-27 or changes in regulatory criteria or to facilitate project
64-1 coordination with other political entities.
64-2 (j) The provisions of this subchapter do not apply to
64-3 contracts for personal or professional services or for a utility
64-4 service operator or to contracts made by a district engaged in the
64-5 distribution and sale of electric energy to the public.
64-6 (k) The provisions of this subchapter do not apply to high
64-7 technology procurements. The provisions of Sections 252.021(a) and
64-8 252.042, Local Government Code, shall apply to high technology
64-9 procurements.
64-10 Sec. 49.274. EMERGENCY APPROVAL OF DISTRICT PROJECTS. If a
64-11 district experiences an emergency condition that may create a
64-12 serious health hazard or unreasonable economic loss to the district
64-13 that requires immediate corrective action, the district may
64-14 negotiate limited duration contracts to make the necessary repairs.
64-15 The district shall submit to the executive director details
64-16 describing the specific serious health hazard or unreasonable
64-17 economic loss as soon as practicable following the issuance of the
64-18 contracts. Whenever possible, the district should obtain prior
64-19 approval of the executive director before authorizing the contract,
64-20 but failure to obtain prior approval shall not void the contract.
64-21 This section does not apply to a district defined in Section
64-22 49.181(h)(3) or (4).
64-23 Sec. 49.275. CONTRACTOR'S BOND. Any person, firm,
64-24 partnership, or corporation to whom a contract is let must give
64-25 good and sufficient performance and payment bonds in accordance
64-26 with Article 5160, Revised Statutes, and any minimum criteria for
64-27 sureties issuing such bonds adopted by a district in accordance
65-1 with Section 49.271.
65-2 Sec. 49.276. PAYMENT FOR CONSTRUCTION WORK. (a) The
65-3 district shall pay the contract price of construction contracts
65-4 only as provided in this section.
65-5 (b) The district will make progress payments under
65-6 construction contracts monthly as the work proceeds, or at more
65-7 frequent intervals as determined by the board or its designee, on
65-8 estimates approved by the board or its designee.
65-9 (c) If requested by the district or district engineer, the
65-10 contractor shall furnish a breakdown of the total contract price
65-11 showing the amount included for each principal category of the
65-12 work, in such detail as requested, to provide a basis for
65-13 determining progress payments. In the preparation of estimates,
65-14 the district engineer may authorize material delivered on the site
65-15 and preparatory work done to be considered if the consideration is
65-16 specifically authorized by the contract and if the contractor
65-17 furnishes satisfactory evidence that he has acquired title to the
65-18 material and that it will be utilized on the work covered by the
65-19 contract.
65-20 (d) In making progress payments, 10 percent of the estimated
65-21 amount shall be retained until final completion and acceptance of
65-22 the contract work. However, if the board at any time after 50
65-23 percent of the work has been completed finds that satisfactory
65-24 progress is being made, it may authorize any of the remaining
65-25 progress payments to be made in full. Also, if the work is
65-26 substantially complete, the board, if it finds the amount retained
65-27 to be in excess of the amount adequate for the protection of the
66-1 district, at its discretion may release to the contractor all or a
66-2 portion of the excess amount. The district is not obligated to pay
66-3 interest on amounts retained except as provided herein. The
66-4 district shall not be obligated to pay any interest on the 10
66-5 percent retainage held on the first 50 percent of work completed.
66-6 If the district holds any retainage on the remaining 50 percent of
66-7 the work completed, the district shall pay interest on such
66-8 retainage from the date the retainage is withheld to the date of
66-9 payment to the contractor. The interest rate to be paid on such
66-10 retainage shall be the rate of interest paid by the district's
66-11 depository bank on interest bearing accounts of similar amounts
66-12 during the period of time interest accrues as provided herein.
66-13 (e) On completion and acceptance of each separate project,
66-14 public work, or other division of the contract, on which the price
66-15 is stated separately in the contract, payment may be made without
66-16 retention of a percentage.
66-17 Sec. 49.277. INSPECTION OF AND REPORTS ON CONSTRUCTION WORK.
66-18 (a) The board shall have control of construction work being done
66-19 for the district under contract to determine whether or not the
66-20 contract is being fulfilled and shall have the construction work
66-21 inspected by the district engineer or other designated person.
66-22 (b) During the progress of the construction work, the
66-23 district engineer or other designated person shall submit to the
66-24 board detailed written reports showing whether or not the
66-25 contractor is complying with the contract, and when the work is
66-26 completed the district engineer shall submit to the board a final
66-27 detailed report including as-built plans of the facilities showing
67-1 whether or not the contractor has fully complied with the contract.
67-2 (Sections 49.278-49.300 reserved for expansion
67-3 SUBCHAPTER J. ANNEXATION OR EXCLUSION OF LAND
67-4 Sec. 49.301. ADDING LAND BY PETITION OF LANDOWNER. (a) In
67-5 addition to any other provision provided by law, the owner or
67-6 owners of land whether or not contiguous to the district or
67-7 otherwise may file with the board a petition requesting that there
67-8 be included in the district the land described in the petition by
67-9 metes and bounds or by lot and block number if there is a recorded
67-10 plat of the area to be included in the district. The petition may
67-11 request the district to condition the annexation on certain
67-12 conditions, including the voter authorization of bonds to serve the
67-13 area to be annexed.
67-14 (b) If the district has bonds, notes, or other obligations
67-15 outstanding or bonds payable in whole or in part from taxes which
67-16 have been voted but are unissued, the board may require the
67-17 petitioner or petitioners to assume their share of the outstanding
67-18 bonds, notes, or other obligations and the voted but unissued tax
67-19 bonds of the district and authorize the board to levy a tax on
67-20 their property in each year while any of the bonds, notes, or other
67-21 obligations payable in whole or in part from taxation are
67-22 outstanding to pay their share of the indebtedness.
67-23 (c) The petition of the landowner to add land to the
67-24 district shall be signed and executed in the manner provided by law
67-25 for the conveyance of real estate.
67-26 (d) The board shall hear and consider the petition and may
67-27 add to the district the land described in the petition if it is
68-1 feasible, practicable, and to the advantage of the district and if
68-2 the district's system and other improvements of the district are
68-3 sufficient or will be sufficient to supply the added land without
68-4 injuring land already in the district.
68-5 (e) If the district has bonds payable in whole or in part
68-6 from taxation which are voted but unissued at the time of an
68-7 annexation and the petitioners assume the bonds and authorize the
68-8 district to levy a tax on their property to pay the bonds, then the
68-9 board may issue the voted but unissued bonds even though the
68-10 boundaries of the district have been altered since the
68-11 authorization of the bonds.
68-12 (f) A petition which is granted adding land to the district
68-13 shall be filed for record and shall be recorded in the office of
68-14 the county clerk of the county or counties in which the land is
68-15 located.
68-16 Sec. 49.302. ADDING LAND BY PETITION OF LESS THAN ALL THE
68-17 LANDOWNERS. (a) In addition to the method of adding land to a
68-18 district which is described in Section 49.301 of this subchapter,
68-19 defined areas of land, whether or not they are contiguous to the
68-20 district, may be annexed to the district in the manner set forth in
68-21 this section.
68-22 (b) A petition requesting the annexation of a defined area
68-23 signed by a majority in value of the owners of land in the defined
68-24 area, as shown by the tax rolls of the county or counties in which
68-25 such area is located, or signed by 50 landowners if the number of
68-26 landowners is more than 50, shall describe the land by metes and
68-27 bounds or by lot and block number if there is a recorded plat of
69-1 the area and shall be filed with the secretary of the board.
69-2 (c) It shall be the duty of the board to pass an order
69-3 fixing a time and place at which the petition for annexation shall
69-4 be heard which shall not be less than 30 days from the day of the
69-5 order calling the hearing.
69-6 (d) The secretary of the board shall issue a notice setting
69-7 forth the time and place of the hearing and describing the area
69-8 proposed to be annexed. Notice of the hearing shall be given by
69-9 posting copies of the notice in three public places in the district
69-10 and in one public place in the area proposed to be annexed for at
69-11 least 14 days before the day of the hearing and by publishing a
69-12 copy of the notice in a newspaper of general circulation in the
69-13 county or counties in which the area proposed to be annexed is
69-14 located one time at least 14 days before the day of the hearing.
69-15 (e) If upon the hearing of the petition it is found by the
69-16 board that the proposed annexation of the area to the district is
69-17 feasible, practicable, and to the advantage of the district and if
69-18 the district's system and other improvements of the district are
69-19 sufficient or will be sufficient to supply the added land without
69-20 injuring land already in the district, then the board, by order
69-21 entered in its minutes, may receive the proposed area as an
69-22 addition to and to become a part of the district. The order adding
69-23 the proposed territory to the district need not include all of the
69-24 land described in the petition if at the hearing a modification or
69-25 change is found necessary or desirable by the board.
69-26 (f) A copy of the order annexing land to the district,
69-27 signed by a majority of the members of the board and attested by
70-1 the secretary of the board, shall be filed and recorded in the deed
70-2 records of the county or counties in which the district is located
70-3 if the land is finally annexed to the district.
70-4 (g) After the order is recorded the area shall be a
70-5 component part of the district.
70-6 (h) The annexed area shall bear its pro rata share of all
70-7 bonds, notes, or other obligations or taxes which may be owed,
70-8 contracted, or authorized by the district to which it has been
70-9 added.
70-10 (i) Before the added area shall be subject to all or any
70-11 part of the bonds, notes, obligations, or taxes, created before the
70-12 annexation of the area to the district, the board shall order an
70-13 election to be held in the district, as enlarged by reason of the
70-14 annexation of the area, on the question of the assumption of the
70-15 bonds, notes, obligations, and taxes by the annexed area.
70-16 (j) At the same election, the board may also submit a
70-17 proposition on the question of whether the annexed area should
70-18 assume its part of the bonds of the district payable in whole or in
70-19 part from taxes which have been voted previously but not yet issued
70-20 or sold and the levy of an ad valorem tax on all taxable property
70-21 within the area annexed along with a tax on the rest of the
70-22 district for the payment of the bonds.
70-23 (k) If the election results favorably, the district shall be
70-24 authorized to issue its voted but unissued tax bonds even though
70-25 the boundaries of the district have been changed since the original
70-26 election approving the bonds.
70-27 (l) At the election called for the purpose of determining
71-1 whether the annexed area shall assume the bonds, notes, or other
71-2 obligations or taxes of the district, the board in a separate
71-3 proposition may also submit the question of whether the board
71-4 should be authorized to issue bonds payable in whole or in part
71-5 from taxes to provide service to the area annexed.
71-6 (m) In the event that the district has bonds, notes, or
71-7 obligations or taxes which may be owed, contracted, or authorized
71-8 at the time an area is annexed or if the district has voted but
71-9 unissued bonds payable in whole or in part from taxes at the time
71-10 of an annexation, the board may provide in its order annexing an
71-11 area to the district that the annexation will not be complete or
71-12 final unless the indebtedness, tax or bond, note, or other
71-13 obligation assumption elections result favorably to the assumption
71-14 of the district's outstanding bonds, notes, or other obligations
71-15 and voted but unissued bonds.
71-16 (n) If the board elects to submit the question of whether
71-17 the board should be authorized to issue bonds to provide service to
71-18 the area annexed, the board may also provide in its order annexing
71-19 an area to the district that the annexation will not be complete
71-20 unless the election results favorably to the issuance of bonds to
71-21 serve the annexed area.
71-22 (o) Whenever an election is ordered to be held in the
71-23 district for the purpose of the assumption of bonds, notes, or
71-24 other obligations or taxes or the assumption of voted but unissued
71-25 bonds by reason of the annexation of any area, then the election
71-26 shall be held and notice given as provided for bond elections held
71-27 by the district.
72-1 (p) The district has the same right and duty to furnish
72-2 service to the annexed land that it previously had to furnish
72-3 service to other land in the district and the board shall endeavor
72-4 to serve all land in the district without discrimination.
72-5 Sec. 49.303. EXCLUDING LAND FROM DISTRICT. (a) Before a
72-6 district orders an election for the authorization of bonds payable
72-7 in whole or in part from taxes, the board may, on its own motion,
72-8 call a hearing on the question of the exclusion of land from the
72-9 district under the provisions of Sections 49.303-49.307 of this
72-10 subchapter, if the exclusions are practicable, just, or desirable.
72-11 (b) The board must call a hearing on the exclusion of land
72-12 or other property from the district on the written petition of any
72-13 landowner or property owner in the district filed with the
72-14 secretary of the board before the first election on the question of
72-15 whether bonds should be issued payable in whole or in part from
72-16 taxes is ordered.
72-17 (c) The board may hold a hearing on the exclusion of land or
72-18 other property from the district if the district has not issued
72-19 bonds payable in whole or in part from taxes, and if a landowner or
72-20 property owner submits a signed petition to the secretary of the
72-21 board evidencing the consent of the owners of a majority of the
72-22 acreage proposed to be excluded and a majority of the taxable
72-23 property in the district, as reflected by the most recent certified
72-24 tax roll of the district.
72-25 (d) A district that has previously held an election at which
72-26 approval was given for the issuance of bonds payable in whole or in
72-27 part from taxes may not rely on that election for the issuance of
73-1 the bonds if after the bond election, but before the bonds are
73-2 issued, land is excluded from the district as provided by this
73-3 subchapter. The board must call and hold another bond election and
73-4 receive voter approval as provided by this subchapter before
73-5 issuing those bonds.
73-6 Sec. 49.304. HEARING TO ANNOUNCE PROPOSED EXCLUSIONS AND TO
73-7 RECEIVE PETITIONS. (a) If the board determines that an exclusion
73-8 hearing should be held or if a written petition requesting an
73-9 exclusion hearing is filed with the secretary of the board as
73-10 provided in Section 49.303 of this subchapter, the board shall give
73-11 notice of a time and place of a hearing to announce its own
73-12 conclusions relating to land or other property to be excluded and
73-13 to receive petitions for exclusion of land or other property.
73-14 (b) The board shall publish notice of the hearing once a
73-15 week for two consecutive weeks in one or more newspapers with
73-16 general circulation in the district. The first publication shall
73-17 appear at least 14 days before the day of the hearing.
73-18 (c) The notice shall advise all interested property owners
73-19 of their right to present petitions for exclusions of land or other
73-20 property and to offer evidence in support of the petitions and
73-21 their right to contest any proposed exclusion based on either a
73-22 petition or the board's own conclusions and to offer evidence in
73-23 support of the contest.
73-24 Sec. 49.305. PETITION. (a) A petition for exclusion of
73-25 land must accurately describe by metes and bounds or lot and block
73-26 number the land to be excluded. A petition for exclusion of other
73-27 property must describe the property to be excluded.
74-1 (b) A petition for exclusion shall be filed with the
74-2 district at least seven days before the hearing and shall state
74-3 clearly the particular grounds on which the exclusion is sought.
74-4 Only the stated grounds shall be considered.
74-5 Sec. 49.306. GROUNDS FOR EXCLUSION. Exclusions from the
74-6 district may be made on the grounds that:
74-7 (1) to retain certain land or other property within
74-8 the district's taxing power would be arbitrary and unnecessary to
74-9 conserve the public welfare, would impair or destroy the value of
74-10 the property desired to be excluded, and would constitute the
74-11 arbitrary imposition of a confiscatory burden;
74-12 (2) to retain any given land or other property in the
74-13 district and to extend to it, either presently or in the future,
74-14 the benefits, service, or protection of the district's facilities
74-15 would create an undue and uneconomical burden on the remainder of
74-16 the district; or
74-17 (3) the land desired to be excluded cannot be bettered
74-18 as to conditions of living and health, or provided with water or
74-19 sewer service or protected from flood, or drained, or freed from
74-20 interruption of traffic caused by excess of water on the roads,
74-21 highways, or other means of transportation serving the land, or
74-22 otherwise benefited by the district's proposed improvements.
74-23 Sec. 49.307. HEARING AND ORDER EXCLUDING LAND. (a) The
74-24 board may adjourn the hearing from one day to another and until all
74-25 persons desiring to be heard are heard. The board immediately
74-26 shall specifically describe all property which it proposes to
74-27 exclude on its own motion and shall hear first any protests and
75-1 evidence against exclusions proposed on the board's own motion.
75-2 (b) After considering all engineering data and other
75-3 evidence presented to it, the board shall determine whether the
75-4 facts disclose the affirmative of the propositions stated in
75-5 Subdivision (1) or (2) or, if appropriate, in Subdivision (3) of
75-6 Section 49.306 of this subchapter. If the affirmative exists, the
75-7 board shall enter an order excluding all land or other property
75-8 falling within the conditions defined by the respective
75-9 subdivisions and shall redefine in the order the boundaries of the
75-10 district to embrace all land not excluded. A copy of the order
75-11 excluding land and redefining the boundaries of the district shall
75-12 be filed in the deed records of the county or counties in which the
75-13 district is situated.
75-14 Sec. 49.308. SUIT TO REVIEW EXCLUSION. (a) Any person
75-15 owning an interest in land affected by the order may file a
75-16 petition within 20 days after the effective date of the order to
75-17 review, set aside, modify, or suspend the order.
75-18 (b) The venue in any action shall be in any district court
75-19 which has jurisdiction in the county in which the district is
75-20 located. If the district includes land in more than one county,
75-21 the venue shall be in the district court having jurisdiction in the
75-22 county in which the major portion of the acreage of the land sought
75-23 to be excluded from the district is located.
75-24 (c) A person may appeal from the judgment or order of a
75-25 district court in a suit brought under the provisions of this
75-26 section to the court of civil appeals and supreme court as in other
75-27 civil cases in which the district court has original jurisdiction.
76-1 The appeal is subject to the statutes and rules of practice and
76-2 procedure in civil cases.
76-3 Sec. 49.309. EXCLUSION OF NONIRRIGATED PROPERTY. For the
76-4 purposes of Sections 49.309-49.314, the following definitions shall
76-5 apply:
76-6 (1) "Nonirrigated property" means:
76-7 (A) land that:
76-8 (i) is not irrigable;
76-9 (ii) the owners of a majority of the
76-10 acreage of which no longer intend to irrigate; or
76-11 (iii) has been subdivided into:
76-12 (a) town lots, or town lots and
76-13 blocks, or small parcels of the same general nature of town lots;
76-14 or
76-15 (b) town blocks and lots designed,
76-16 intended, or suitable for residential, commercial, or other
76-17 nonagricultural purposes, as distinguished from farm acreage
76-18 whether subdivided into a subdivision or not; and
76-19 (c) including streets, alleys,
76-20 parkways, parks, and railroad property and rights-of-way located in
76-21 the subdivided land.
76-22 The property described in Subdivision (1) shall be considered
76-23 nonirrigated property regardless of whether the land is within or
76-24 near a municipality and regardless of whether a plat or map of the
76-25 subdivision has been duly filed for record and recorded in the
76-26 office of the county clerk of the county in which the land or any
76-27 part of the land is situated.
77-1 The term does not include land that within the year preceding
77-2 the date of the hearing under Section 49.310 was used for farming
77-3 or agricultural purposes.
77-4 (2) "District" means a water control and improvement,
77-5 water improvement, or irrigation district, the principal purpose of
77-6 which is furnishing water for the irrigation of agricultural lands
77-7 or that is principally engaged in furnishing water for the
77-8 irrigation of agricultural lands.
77-9 Sec. 49.310. AUTHORITY TO EXCLUDE LAND. (a) A petition for
77-10 exclusion may be filed by the owner or owners, or their authorized
77-11 agent, of a majority in acreage of nonirrigated property included
77-12 within the boundaries of a district.
77-13 (b) Upon receipt of a petition for exclusion, or upon its
77-14 own motion, a district shall issue an order excluding the property
77-15 if, after notice and hearing, the board finds that:
77-16 (1) the described property is nonirrigated property;
77-17 (2) the applicable requirements of Section 49.311 have
77-18 been satisfied;
77-19 (3) the owner or owners do not object to the exclusion
77-20 of their nonirrigated property; and
77-21 (4) it is in the best interest of the district and of
77-22 the described property to exclude that property from the district.
77-23 (c) The district shall follow the notice and hearing
77-24 provisions and other procedural requirements for excluding
77-25 territory which are applicable to that district as set out in
77-26 Sections 49.303-49.307 of this code.
77-27 Sec. 49.311. CONSENT FROM HOLDERS OF INDEBTEDNESS. If the
78-1 district has outstanding bonded indebtedness, or indebtedness under
78-2 a loan from a governmental agency, a written consent from an
78-3 authorized representative of the holder or holders of the
78-4 indebtedness consenting to the exclusion shall be obtained and
78-5 filed with the district before the hearing.
78-6 Sec. 49.312. RESULTS OF EXCLUSION. (a) Upon issuance of an
78-7 order excluding property, that property is no longer a part of the
78-8 district and is not entitled to water service from the district.
78-9 (b) Any taxes, assessments, or other charges owed to the
78-10 district at the time of exclusion remain the obligation of the
78-11 owner of the excluded property and continue to be secured by
78-12 statutory liens on the property, if any.
78-13 (c) Once excluded, the landowner has no further liability to
78-14 the district for future taxes, assessments, or other charges of the
78-15 district.
78-16 (d) A copy of the order excluding the property from the
78-17 district certified and acknowledged by the secretary of the board
78-18 shall be recorded by the district in the real property records of
78-19 the county in which the excluded property is located as evidence of
78-20 the exclusion.
78-21 Sec. 49.313. DISTRICT FACILITIES ON EXCLUDED PROPERTY. If
78-22 any canals, ditches, pipelines, pumps, or other facilities of the
78-23 district are located on lands excluded by the resolution of the
78-24 board, the exclusion does not affect or interfere with any rights
78-25 that the district has to maintain and continue operation of the
78-26 facilities as located for the purpose of servicing lands remaining
78-27 in the district.
79-1 Sec. 49.314. WATER ALLOCATIONS. (a) After the district
79-2 adopts an order excluding nonirrigated property, a city or other
79-3 water supply corporation that serves the excluded land with a
79-4 potable water supply may petition the district to apply to the
79-5 Texas Water Commission to convert the proportionate irrigation
79-6 water allocation of the land excluded as nonirrigated property, as
79-7 determined by the district, from irrigation use to municipal use
79-8 allocation.
79-9 (b) The district shall make such application to the
79-10 commission within thirty (30) days of the filing of a petition by
79-11 the city or water supply corporation that serves the land with a
79-12 potable water supply, provided the city or other water supply
79-13 corporation pays the district the amount the district estimates
79-14 will be its reasonable expenses and attorney's fees incurred in the
79-15 commission conversion proceedings and enters into an agreement with
79-16 the district setting forth the basis on which the water allocation
79-17 shall be delivered, or made available, to the city or water supply
79-18 corporation covering such terms as the entities may agree to, and
79-19 in the event the parties cannot agree, such dispute shall not be
79-20 subject to the jurisdiction of the Texas Water Commission, or its
79-21 successors, under this code, but subject to resolution through
79-22 alternative dispute resolution. In such commission proceeding, the
79-23 city or water supply corporation shall provide evidence to the
79-24 commission of the current or projected need within a five (5) year
79-25 period for the municipal-use water allocation after such conversion
79-26 as a condition of such conversion of use of the district's water
79-27 rights from irrigation use to municipal use.
80-1 (Sections 49.315-49.320 reserved for expansion
80-2 SUBCHAPTER K. DISSOLUTION
80-3 Sec. 49.321. DISSOLUTION AUTHORITY. After notice and
80-4 hearing, the commission may dissolve any district which is inactive
80-5 for a period of five consecutive years and has no outstanding
80-6 bonded indebtedness.
80-7 Sec. 49.322. NOTICE OF HEARING. (a) The commission shall
80-8 give notice of the dissolution hearing which briefly describes the
80-9 reasons for the proceeding.
80-10 (b) The notice shall be published once each week for two
80-11 consecutive weeks before the day of hearing in some newspaper
80-12 having general circulation in the county or counties in which the
80-13 district is located. The first publication shall be 30 days before
80-14 the day of the hearing.
80-15 (c) The commission shall give notice of the hearing by first
80-16 class mail addressed to the directors of the district according to
80-17 the last record on file with the executive director.
80-18 Sec. 49.323. INVESTIGATION. The executive director shall
80-19 investigate the facts and circumstances of the district to be
80-20 dissolved and the result of the investigation shall be included in
80-21 a written report.
80-22 Sec. 49.324. ORDER OF DISSOLUTION. The commission may enter
80-23 an order dissolving the district at the conclusion of the hearing
80-24 if it finds that the district has performed none of the functions
80-25 for which it was created for a period of five consecutive years
80-26 before the day of the proceeding and that the district has no
80-27 outstanding bonded indebtedness.
81-1 Sec. 49.325. CERTIFIED COPY OF ORDER. The commission shall
81-2 file a certified copy of the order of dissolution of the district
81-3 in the deed records of the county or counties in which the district
81-4 is located. If the particular district was created by a special
81-5 Act of the legislature, the commission shall file a certified copy
81-6 of the order of dissolution with the secretary of state.
81-7 Sec. 49.326. APPEALS. (a) Appeals from a commission order
81-8 dissolving a district shall be filed and heard in the district
81-9 court of any of the counties in which the land is located.
81-10 (b) The trial on appeal shall be de novo and the substantial
81-11 evidence rule shall not apply.
81-12 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
81-13 of a district by the commission, all assets of the district shall
81-14 escheat to the State of Texas. The assets shall be administered by
81-15 the state treasurer and shall be disposed of in the manner provided
81-16 by Chapter 72, Property Code.
81-17 (Sections 49.328-49.350 reserved for expansion
81-18 SUBCHAPTER L. FIRE DEPARTMENTS
81-19 Sec. 49.351. FIRE DEPARTMENTS. (a) A district providing
81-20 potable water or sewer service to household users may establish,
81-21 operate, and maintain a fire department to perform all
81-22 fire-fighting activities within the district as provided in this
81-23 subchapter and may issue, with voter approval, bonds for financing
81-24 the establishment of the fire department including the construction
81-25 and purchase of necessary buildings, facilities, and equipment and
81-26 the provision of an adequate water supply.
81-27 (b) After approval of the district electors of a plan to
82-1 operate or jointly operate a fire department, the district or
82-2 districts shall provide an adequate system and water supply for
82-3 fire-fighting purposes and may construct and purchase necessary
82-4 buildings, facilities, and equipment and may employ all necessary
82-5 personnel including supervisory personnel to operate the fire
82-6 department.
82-7 (c) Bonds issued for establishment of the fire department
82-8 shall be authorized and issued, and a district shall be authorized
82-9 to levy a tax to pay the principal of and interest on such bonds,
82-10 as provided by law for authorization and issuance of other bonds of
82-11 the district.
82-12 (d) Two or more districts may contract to operate a joint
82-13 fire department for their districts and shall include in the
82-14 contract a system for joint administration and operation of the
82-15 fire department, the extent of services to be provided, a method
82-16 for funding the department from funds of each district, and any
82-17 other terms and conditions the parties consider necessary.
82-18 (e) A district may contract with any other person to perform
82-19 fire-fighting services within the district.
82-20 (f) Before a district establishes a fire department,
82-21 contracts to operate a joint fire department, or contracts with
82-22 another person to perform fire-fighting services within the
82-23 district, the district must comply with the provisions of
82-24 Subsections (g), (h), and (i) of this section.
82-25 (g) A district or districts proposing to act jointly shall
82-26 develop a detailed plan for the establishment, operation, and
82-27 maintenance of the proposed department, including a detailed
83-1 presentation of all financial requirements. If a district is
83-2 entering into a contract under Subsection (e) of this section, the
83-3 district shall develop a plan that describes in detail the
83-4 facilities and equipment to be devoted to service to the district
83-5 and all proposals for providing the service and that includes a
83-6 presentation of the financial requirements under the contract.
83-7 Before adoption of a plan and any contract by the district, the
83-8 board shall hold a hearing at which any person residing in the
83-9 district may present testimony for and against the proposed plan
83-10 and any proposed contract. Notice of the hearing and the place at
83-11 which the plan and any contract may be examined shall be posted in
83-12 two public places within the district at least 10 days before the
83-13 date of the hearing.
83-14 (h) After adoption of the plan and any contract by the
83-15 board, the plan and financial presentation, together with any
83-16 contract and a written report in a form prescribed by the executive
83-17 director describing existing fire departments and fire-fighting
83-18 services available within 25 miles of the boundaries of the
83-19 district, shall be submitted to the executive director for
83-20 consideration by the commission under rules adopted by the
83-21 commission. Before approval or disapproval, the commission shall
83-22 hold a hearing. Notice of the hearing before the commission shall
83-23 be posted by the board in at least two public places in the
83-24 district at least five days before the hearing. Before the
83-25 commission approves the application, it must find that it is
83-26 economically feasible for the district to implement the plan and
83-27 meet the provisions of any contract and shall take into
84-1 consideration in giving its approval the general financial
84-2 condition of the district and the economic feasibility of the
84-3 district carrying out the plan or meeting the obligations of the
84-4 contract.
84-5 (i) After approval by the commission, the district shall
84-6 submit to the electors of the district at the election to approve
84-7 bonds for financing the plan, or if no bonds are to be approved, at
84-8 an election called for approval of the plan, the proposition of
84-9 whether or not the plan should be implemented or entered into by
84-10 the district. The ballots at the election shall be printed, as
84-11 applicable, to provide for voting for or against the proposition:
84-12 "The implementation of the plan for (operation/joint operation) of
84-13 a fire department"; or "The plan and contract to provide
84-14 fire-fighting services for the district."
84-15 (j) No funds of the district may be used to establish a fire
84-16 department, to enter into joint operation of a fire department, or
84-17 to contract for fire-fighting services without the approval of a
84-18 plan by the electors as provided in this section. However, the
84-19 district may use available funds for preparation of a plan and any
84-20 contract. The operation of a fire department or provision of
84-21 fire-fighting services is an essential public necessity, and a
84-22 district may discontinue any and all services, including water and
84-23 sewer service, to any person who fails to timely pay fire
84-24 department service fees or any other assessment adopted by the
84-25 district to support the fire department or the provision of
84-26 fire-fighting services.
84-27 (Sections 49.352-49.450 reserved for expansion
85-1 SUBCHAPTER M. NOTICES, REPORTS, AND BANKRUPTCY
85-2 Sec. 49.451. POSTING SIGNS IN THE DISTRICT. (a) A district
85-3 subject to the notice requirements of Section 49.452 shall, within
85-4 30 days after the effective date of this section or the creation of
85-5 the district, post signs indicating the existence of the district
85-6 at two principal entrances to the district.
85-7 (b) The size and exact location of the information contained
85-8 on the signs shall be determined by the executive director.
85-9 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
85-10 proposes to sell or convey real property located in a district
85-11 which was created under this title or by a special Act of the
85-12 legislature, which is providing or proposing to provide, as the
85-13 district's principal function, water, sanitary sewer, drainage, and
85-14 flood control or protection facilities or services, or any of these
85-15 facilities or services that have been financed or are proposed to
85-16 be financed with bonds of the district payable in whole or part
85-17 from taxes of the district, or by imposition of a standby fee, if
85-18 any, to household or commercial users, other than agricultural,
85-19 irrigation, or industrial users, and which district includes less
85-20 than all the territory in at least one county and which, if located
85-21 within the corporate area of a city, includes less than 75 percent
85-22 of the incorporated area of the city or which is located outside
85-23 the corporate area of a city in whole or in substantial part, must
85-24 first give to the purchaser the written notice provided in this
85-25 section.
85-26 (2) The provisions of this section shall not be
85-27 applicable to:
86-1 (A) transfers of title under any type of lien
86-2 foreclosure;
86-3 (B) transfers of title by deed in cancellation
86-4 of indebtedness secured by a lien upon the property conveyed; or
86-5 (C) transfers of title by reason of a will or
86-6 probate proceedings.
86-7 (b) The prescribed notice for all districts shall be
86-8 executed by the seller and shall read as follows:
86-9 "The real property, described below, which you are about to
86-10 purchase is located in the ___________________ District. The
86-11 district has taxing authority separate from any other taxing
86-12 authority, and may, subject to voter approval, issue an unlimited
86-13 amount of bonds and levy an unlimited rate of tax in payment of
86-14 such bonds. As of this date, the rate of taxes levied by the
86-15 district on real property located in the district is $__________ on
86-16 each $100 of assessed valuation. If the district has not yet
86-17 levied taxes, the most recent projected rate of debt service tax,
86-18 as of this date, is $__________ on each $100 of assessed valuation.
86-19 The total amount of bonds which has been approved by the voters and
86-20 which have been or may, at this date, be issued is $__________, and
86-21 the aggregate initial principal amounts of all bonds issued for one
86-22 or more of the specified facilities of the district and payable in
86-23 whole or in part from property taxes is $__________.
86-24 "The district has the authority to adopt and impose a standby
86-25 fee on property in the district that has water, sanitary sewer, or
86-26 drainage facilities and services available but not connected and
86-27 which does not have a house, building, or other improvement located
87-1 thereon and does not substantially utilize the utility capacity
87-2 available to the property. The district may exercise the authority
87-3 without holding an election on the matter. As of this date, the
87-4 most recent amount of the standby fee is $__________. An unpaid
87-5 standby fee is a personal obligation of the person that owned the
87-6 property at the time of imposition and is secured by a lien on the
87-7 property. Any person may request a certificate from the district
87-8 stating the amount, if any, of unpaid standby fees on a tract of
87-9 property in the district.
87-10 "The purpose of this district is to provide water, sewer,
87-11 drainage, or flood control facilities and services within the
87-12 district through the issuance of bonds payable in whole or in part
87-13 from property taxes. The cost of these utility facilities is not
87-14 included in the purchase price of your property, and these utility
87-15 facilities are owned or to be owned by the district. The legal
87-16 description of the property which you are acquiring is as follows:
87-17 ____________________________________________________________
87-18 Date
87-19 _________________________
87-20 Signature of Seller
87-21 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
87-22 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
87-23 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
87-24 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
87-25 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
87-26 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
87-27 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
88-1 "The undersigned purchaser hereby acknowledges receipt of the
88-2 foregoing notice at or prior to execution of a binding contract for
88-3 the purchase of the real property described in such notice or at
88-4 closing of purchase of the real property.
88-5 ____________________________________________________________
88-6 Date
88-7 _________________________
88-8 Signature of Purchaser
88-9 "(Note: Correct district name, tax rate, bond amounts, and
88-10 legal description are to be placed in the appropriate space.
88-11 Except for notices included as an addendum or paragraph of a
88-12 purchase contract, the notice shall be executed by the seller and
88-13 purchaser, as indicated. If the district does not propose to
88-14 provide one or more of the specified facilities and services, the
88-15 appropriate purpose may be eliminated. If the district has not yet
88-16 levied taxes, a statement of the district's most recent projected
88-17 rate of debt service tax is to be placed in the appropriate space.
88-18 If the district does not have approval from the commission to adopt
88-19 and impose a standby fee, the second paragraph of the notice may be
88-20 deleted. For the purposes of the notice form required to be given
88-21 to the prospective purchaser prior to execution of a binding
88-22 contract of sale and purchase, a seller and any agent,
88-23 representative, or person acting on the seller's behalf may modify
88-24 the notice by substitution of the words 'January 1, ______' for the
88-25 words 'this date' and place the correct calendar year in the
88-26 appropriate space."
88-27 (c) The notice required by this section shall be given to
89-1 the prospective purchaser prior to execution of a binding contract
89-2 of sale and purchase either separately or as an addendum or
89-3 paragraph of a purchase contract. In the event a contract of
89-4 purchase and sale is entered into without the seller providing the
89-5 notice required by this subsection, the purchaser shall be entitled
89-6 to terminate the contract. If, however, the seller furnishes the
89-7 required notice at or prior to closing the purchase and sale
89-8 contract and the purchaser elects to close even though such notice
89-9 was not timely furnished prior to execution of the contract, it
89-10 shall be conclusively presumed that the purchaser has waived all
89-11 rights to terminate the contract and recover damages or other
89-12 remedies or rights under the provision of this section.
89-13 Notwithstanding any provision of this subchapter to the contrary,
89-14 all sellers, title companies, examining attorneys, and any agent,
89-15 representative, or person acting on their behalf shall not be
89-16 liable for damages under the provisions of either Subsection (l) or
89-17 (m) of this section or liable for any other damages to any person
89-18 for failure to provide the notice required by this section to a
89-19 purchaser prior to execution of a binding contract of a purchase
89-20 and sale when the district has not filed the information form and
89-21 map or plat as required under Section 49.455 of this code.
89-22 (d) The purchaser shall sign the notice or purchase contract
89-23 including such notice to evidence the receipt of notice.
89-24 (e) At the closing of purchase and sale, a separate copy of
89-25 such notice with current information shall be executed by the
89-26 seller and purchaser, acknowledged, and thereafter recorded in the
89-27 deed records of the county in which the property is located. For
90-1 the purposes of this section, all sellers, title companies, and
90-2 examining attorneys, and any agent, representative, or person
90-3 acting on their behalf, shall be entitled to rely on the accuracy
90-4 of the information form and map or plat as last filed by each
90-5 district under Section 49.455 of this code or the information
90-6 contained in or shown on the notice form issued by the district
90-7 under Section 49.453 of this code in completing the notice form to
90-8 be executed by the seller and purchaser at the closing of purchase
90-9 and sale. Any information taken from the information form or map
90-10 or plat as last filed by each district and the information
90-11 contained in or shown on the notice form issued by the district
90-12 under Section 49.453 of this code shall be for purposes of this
90-13 section conclusively presumed as a matter of law to be correct.
90-14 All subsequent sellers, purchasers, title insurance companies,
90-15 examining attorneys, and lienholders shall be entitled to rely upon
90-16 the information form and map or plat filed by the district or the
90-17 notice form issued by the district under Section 49.453 of this
90-18 code.
90-19 (f) For the purposes of this section, an executory contract
90-20 of purchase and sale having a performance period of more than six
90-21 months shall be considered a sale under Subsection (a) of this
90-22 section.
90-23 (g) For the purposes of the notice form to be given to the
90-24 prospective purchaser prior to execution of a binding contract of
90-25 sale and purchase, a seller and any agent, representative, or
90-26 person acting in the seller's behalf may modify the notice by
90-27 substitution of the words "January 1, ____" for the words "this
91-1 date" and place the correct calendar year in the appropriate space.
91-2 All sellers, and all persons completing the prescribed notice in
91-3 the sellers' behalf, shall be entitled to rely on the information
91-4 contained in or shown on the information form and map or plat filed
91-5 of record by the district under Section 49.455 in completing the
91-6 prescribed form to be given to the prospective purchaser prior to
91-7 execution of a binding contract of sale and purchase. Except as
91-8 otherwise provided in Subsection (e) of this section, any
91-9 information taken from the information form or map or plat filed of
91-10 record by the district in effect as of January 1 of each year shall
91-11 be, for purposes of the notice to be given to the prospective
91-12 purchaser prior to execution of a binding contract of sale and
91-13 purchase, conclusively presumed as a matter of law to be correct
91-14 for the period January 1 through December 31 of such calendar year.
91-15 A seller and any persons completing the prescribed notice in the
91-16 seller's behalf may provide more recent information, if available,
91-17 than the information contained in or shown on the information form
91-18 and map or plat filed of record by the district under Section
91-19 49.455 in effect as of January 1 of each year in completing the
91-20 prescribed form to be given to the purchaser prior to execution of
91-21 a binding contract of sale and purchase. Nothing contained in the
91-22 preceding sentence shall be construed to create an affirmative duty
91-23 on the part of a seller or any persons completing the prescribed
91-24 notice in the seller's behalf to provide more recent information
91-25 than the information taken from the information form and map or
91-26 plat filed of record by the district as of January 1 of each year
91-27 in completing the prescribed notice to be given to the purchaser
92-1 prior to execution of a binding contract of sale and purchase. All
92-2 subsequent sellers, purchasers, title insurance companies,
92-3 examining attorneys, and lienholders shall be entitled to rely upon
92-4 the information form and map or plat filed by the district.
92-5 (h) If such notice is given at closing as provided in
92-6 Subsection (e) of this section, a purchaser, or the purchaser's
92-7 heirs, successors, or assigns, shall not be entitled to maintain
92-8 any action for damages or maintain any action against a seller,
92-9 title insurance company, or lienholder, or any agent,
92-10 representative, or person acting in their behalf, by reason of use
92-11 by the seller of the information filed for record by the district
92-12 or reliance by the seller on the filed plat and filed legal
92-13 description of the district in determining whether the property to
92-14 be sold and purchased is within the district. No action may be
92-15 maintained against any title company for failure to disclose the
92-16 inclusion of the described real property within a district when the
92-17 district has not filed for record the information form, map, or
92-18 plat with the clerk of the county or counties in which the district
92-19 is located.
92-20 (i) Any purchaser who purchases any real property in a
92-21 district and who thereafter sells or conveys the same shall on
92-22 closing of such subsequent sale be conclusively considered as
92-23 having waived any prior right to damages under this section.
92-24 (j) It is the express intent of this section that all
92-25 sellers, title insurance companies, examining attorneys, vendors of
92-26 property and tax information, real estate brokers and lienholders,
92-27 and any agent, representative, or person acting on their behalf,
93-1 shall be entitled to rely on the accuracy of the information form
93-2 and map or plat as last filed by each district or the information
93-3 contained in or shown on the notice form issued by the district
93-4 under Section 49.453 of this code, or for the purposes of the
93-5 notice to be given the purchaser prior to execution of a binding
93-6 contract of sale and purchase the information contained in or shown
93-7 on the information form and map or plat filed of record by the
93-8 district in effect as of January 1 of each year for the period
93-9 January 1 through December 31 of such calendar year.
93-10 (k) Except as otherwise provided in Subsection (c) of this
93-11 section, if any sale or conveyance of real property within a
93-12 district is not made in compliance with the provisions of this
93-13 section, the purchaser may institute a suit for damages under the
93-14 provisions of either Subsection (l) or Subsection (m) of this
93-15 section.
93-16 (l) A purchaser of real property covered by the provisions
93-17 of this section, if the sale or conveyance of the property is not
93-18 made in compliance with this section, may institute a suit for
93-19 damages in the amount of all costs relative to the purchase of the
93-20 property plus interest and reasonable attorney's fees. The suit
93-21 for damages may be instituted jointly or severally against the
93-22 person, firm, corporation, partnership, organization, business
93-23 trust, estate, trust, association, or other legal entity which sold
93-24 or conveyed the property to the purchaser. Following the recovery
93-25 of damages under this subsection, the amount of the damages shall
93-26 first be paid to satisfy all unpaid obligations on each outstanding
93-27 lien or liens on the property and the remainder of the damage
94-1 amount shall be paid to the purchaser. On payment of all damages
94-2 respectively to the lienholders and purchaser, the purchaser shall
94-3 reconvey the property to the seller.
94-4 (m) A purchaser of real property covered by the provisions
94-5 of this section, if the sale or conveyance of the property is not
94-6 made in compliance with this section, may institute a suit for
94-7 damages in an amount not to exceed $5,000, plus reasonable
94-8 attorney's fees.
94-9 (n) A purchaser is not entitled to recover damages under
94-10 both Subsections (l) and (m) of this section, and entry of a final
94-11 decision awarding damages to the purchaser under either Subsection
94-12 (l) or Subsection (m) of this section shall preclude the purchaser
94-13 from recovering damages under the other subsection.
94-14 Notwithstanding any part or provision of the general or special
94-15 laws or the common law of the state to the contrary, the relief
94-16 provided under Subsections (l) and (m) of this section shall be the
94-17 exclusive remedies for a purchaser aggrieved by the seller's
94-18 failure to comply with the provisions of this section. Any action
94-19 for damages shall not, however, apply to, affect, alter, or impair
94-20 the validity of any existing vendor's lien, mechanic's lien, or
94-21 deed of trust lien on the property.
94-22 (o) A suit for damages under the provisions of this section
94-23 must be brought within 90 days after the purchaser receives the
94-24 first district tax notice or within four years after the property
94-25 is sold or conveyed to the purchaser, whichever time occurs first,
94-26 or the purchaser loses the right to seek damages under this
94-27 section.
95-1 (p) Notwithstanding any provisions of this subchapter to the
95-2 contrary, a purchaser may not recover damages of any kind under
95-3 this section if that person:
95-4 (1) purchases an equity in real property and in
95-5 conjunction with the purchase assumes any liens, whether purchase
95-6 money or otherwise; and
95-7 (2) does not require proof of title by abstract, title
95-8 policy, or any other proof of title.
95-9 Sec. 49.453. NOTICE FORM FROM DISTRICT. (a) A district
95-10 covered by Section 49.452 shall also maintain in the district
95-11 office the particular form of Notice to Purchasers required by
95-12 Section 49.452 to be furnished by a seller to a purchaser of real
95-13 property in that district and shall, upon written request of any
95-14 person, issue the notice form completed by a district with all
95-15 information required to be furnished by the district. A notice
95-16 form issued by a district under the provisions of this section
95-17 shall include a written statement that the notice form is being
95-18 issued by the district, the date of its issuance, and the
95-19 district's telephone number. A district shall not be required to
95-20 orally provide the information.
95-21 (b) A district may charge a reasonable fee as determined by
95-22 the district not to exceed $10 for the issuance of a notice form
95-23 pursuant to Subsection (a) of this section. The notice form shall
95-24 be delivered by regular mail or made available at the district's
95-25 office. If a district is requested to deliver the notice form to a
95-26 person by an alternative method, the district may impose a charge
95-27 not to exceed the actual cost of such delivery.
96-1 (c) A district may delegate the responsibility for issuance
96-2 of the particular form of Notice to Purchasers to an employee or
96-3 agent of the district. A district shall file with the commission
96-4 the name, address, and telephone number of the employee or agent of
96-5 the district responsible for issuance of the notice forms and shall
96-6 notify the commission in writing within seven days after there is a
96-7 change to the information required to be filed with the commission
96-8 under the provisions of this subsection.
96-9 (d) Any notice issued by the district shall contain the
96-10 information effective as of the date of its issuance.
96-11 Sec. 49.454. NOTICE OF UNPAID STANDBY FEES. (a) A district
96-12 covered by Section 49.452 shall, on the written request of any
96-13 person, issue a certificate stating the amount of any unpaid
96-14 standby fees, including interest on the fees, that have been
96-15 assessed against a tract of property in the district. The district
96-16 may charge a fee not to exceed $10 for each certificate. A
96-17 certificate issued through fraud or collusion is void.
96-18 (b) If the district issues a certificate containing an
96-19 erroneous statement under Subsection (a) of this section and the
96-20 owner of the property transfers the property to a good faith
96-21 purchaser for value, the lien on the property provided by Section
96-22 49.231(k) of this chapter is extinguished to the extent of the
96-23 error.
96-24 (c) This section does not affect the liability for any
96-25 unpaid standby fees of the former owner of the undeveloped property
96-26 under Section 49.231(k) of this chapter.
96-27 Sec. 49.455. FILING INFORMATION. (a) The board covered by
97-1 the provisions of Section 49.452 of this subchapter shall file with
97-2 the county clerk in each of the counties in which all or part of
97-3 the district is located a duly affirmed and acknowledged
97-4 information form which includes the information required in
97-5 Subsection (b) of this section, and a complete and accurate map or
97-6 plat showing the boundaries of the district.
97-7 (b) The information form filed by a district under this
97-8 section shall include:
97-9 (1) the name of the district;
97-10 (2) the complete and accurate legal description of the
97-11 boundaries of the district;
97-12 (3) the most recent rate of district taxes on property
97-13 located in the district;
97-14 (4) the total amount of bonds which have been approved
97-15 by the voters and which may be issued by the district (excluding
97-16 refunding bonds and any bonds or portion of bonds payable solely
97-17 from revenues received or expected to be received pursuant to a
97-18 contract with a governmental entity);
97-19 (5) the aggregate initial principal amount of all
97-20 bonds of the district payable in whole or part from taxes
97-21 (excluding refunding bonds and any bonds or portion of bonds
97-22 payable solely from revenues received or expected to be received
97-23 pursuant to a contract with a governmental entity) which have been
97-24 previously issued and remain outstanding;
97-25 (6) whether a standby fee is imposed by the district
97-26 and, if so, the amount of the standby fee;
97-27 (7) the date on which the election to confirm the
98-1 creation of the district was held if such was required;
98-2 (8) a statement of the functions performed or to be
98-3 performed by the district; and
98-4 (9) the particular form of Notice to Purchasers
98-5 required by Section 49.452 of this subchapter to be furnished by a
98-6 seller to a purchaser of real property in that district completed
98-7 by the district with all information required to be furnished by
98-8 the district.
98-9 If a district has not yet levied taxes, a statement to such
98-10 effect together with the district's most recent projected rate of
98-11 debt service tax shall be substituted for Subdivisions (3) and (4)
98-12 of this subsection.
98-13 (c) The information form and map or plat required by this
98-14 section shall be signed by a majority of the members of the board
98-15 and by each such officer affirmed and acknowledged before it is
98-16 filed with the county clerk, and each amendment made to an
98-17 information form or map shall also be signed by the members of the
98-18 board and by each such officer affirmed and acknowledged before it
98-19 is filed with the county clerk.
98-20 (d) The information form required by this section shall be
98-21 filed with the county clerk within 48 hours after the effective
98-22 date of this section or within 48 hours after the district is
98-23 officially created, whichever time comes first. For purposes of
98-24 this section, the words "officially created" mean the date and hour
98-25 in which the results of the election to confirm the creation of the
98-26 district are declared.
98-27 (e) Within seven days after there is a change in any of the
99-1 information contained in the district information form or map or
99-2 plat, the district shall file an amendment to the information form
99-3 or map setting forth the changes made.
99-4 (f) Any person who affirms the corrections and accuracy of
99-5 and acknowledges an information form, map, or plat, or any
99-6 amendment to an information form or map or plat which includes
99-7 information which is inaccurate or incorrect shall be guilty of a
99-8 misdemeanor and shall be fined not less than $100 nor more than
99-9 $1,000 for each violation.
99-10 (g) If a district fails to file the information required by
99-11 this section in the time required, the executive director may
99-12 request the state attorney general or the district or the county
99-13 attorney of the county in which the district is located to seek a
99-14 writ of mandamus to force the board to prepare and file the
99-15 necessary information.
99-16 (h) Any member of a governing board who wilfully fails or
99-17 refuses to join in filing an information form, map, plat, or
99-18 amendment to an information form, map, or plat under this section
99-19 shall be guilty of a misdemeanor and shall be fined not less than
99-20 $100 nor more than $1,000 for each violation. A member of a
99-21 governing board is presumed to have wilfully failed or refused to
99-22 join in the filing of an information form, map, plat, or amendment
99-23 to an information form, map, or plat if that member was present at
99-24 the meeting at which the information included in the information
99-25 form, map, plat, or amendment to the information form, map, or plat
99-26 was adopted.
99-27 (i) If a district covered by the provisions of this section
100-1 is dissolved, annexed to another local government, or is
100-2 consolidated with another district, the members of the board shall
100-3 file a statement of this fact together with the effective date of
100-4 the dissolution, annexation, or consolidation with the information
100-5 form. After a district is dissolved and the statement is filed
100-6 under this subsection, a person who sells or conveys property
100-7 within the dissolved district is no longer required to give notice
100-8 under Section 49.452 of this subchapter.
100-9 (j) A copy of all information forms, maps, plats, and
100-10 amendments to these filed under this section shall also be filed
100-11 with the executive director.
100-12 Sec. 49.456. BANKRUPTCY OF DISTRICTS; AUTHORITY OF
100-13 COMMISSION. (a) Notwithstanding Section 1, Chapter 207, General
100-14 Laws, Acts of the 44th Legislature, Regular Session, 1935 (Article
100-15 1024a, Vernon's Texas Civil Statutes), Section 1, Chapter 1, page
100-16 70, General Laws, Acts of the 46th Legislature, Regular Session,
100-17 1939 (Article 1024b, Vernon's Texas Civil Statutes); or any other
100-18 law of this state, a district created under Article III, Sections
100-19 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
100-20 Constitution, that is subject to the continuing supervision of the
100-21 commission, may not proceed under Chapter 9 of the Federal
100-22 Bankruptcy Code (11 U.S.C. Sections 901-946) or any other law
100-23 enacted by the Congress of the United States under federal
100-24 bankruptcy authority until the commission authorizes the district
100-25 to proceed under those laws by written order.
100-26 (b) A district requesting the commission's authorization to
100-27 proceed under Chapter 9 of the Federal Bankruptcy Code (11 U.S.C.
101-1 Sections 901-946) or any other federal bankruptcy law shall file an
101-2 application with the commission requesting authorization.
101-3 (c) The commission shall investigate the financial condition
101-4 of a district submitting an application under Subsection (b) of
101-5 this section, including its assets, liabilities, and sources of
101-6 revenues and may require a district to submit any information that
101-7 the commission considers material to a determination of whether
101-8 authorization to proceed in bankruptcy should be granted.
101-9 (d) The commission may not authorize a district to proceed
101-10 in bankruptcy unless the commission determines that the district
101-11 cannot, through the full exercise of its rights and powers under
101-12 the laws of this state, reasonably expect to meet its debts and
101-13 other obligations as they mature.
101-14 (e) The commission shall adopt and assess reasonable and
101-15 necessary fees adequate to recover the costs of the commission in
101-16 administering this section.
101-17 SECTION 4. Title 4, Water Code, is amended by adding Chapter
101-18 59 to read as follows:
101-19 CHAPTER 59. REGIONAL DISTRICTS
101-20 SUBCHAPTER A. DISTRICT CREATION
101-21 Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of
101-22 this chapter is to authorize creation and operation of regional
101-23 districts for water, sanitary sewer, drainage, and municipal solid
101-24 waste disposal under Article XVI, Section 59, of the Texas
101-25 Constitution.
101-26 (b) This chapter applies only in a county with a population
101-27 of at least 2.2 million, according to the most recent federal
102-1 census, or which borders a county with a population of at least 2.2
102-2 million, according to the most recent federal census.
102-3 Sec. 59.002. DEFINITIONS. (a) In this chapter:
102-4 (1) "District" means a district created or operating
102-5 under this chapter.
102-6 (2) "Municipal district" means a district created
102-7 under general law or a special Act operating under Chapter 51, 53,
102-8 or 54.
102-9 (3) "Bond" means bonds, coupons, notes, or any other
102-10 evidence of indebtedness.
102-11 (b) Other terms not defined by this chapter have the same
102-12 meaning assigned to those terms by Section 49.001 of this code.
102-13 Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
102-14 created under procedures provided by this section.
102-15 (b) The boards of two or more municipal districts, or of at
102-16 least 20 percent of the total number of municipal districts to be
102-17 included in the proposed district, whichever is greater, may
102-18 jointly petition the commission for creation of a district in the
102-19 territory described in the petition. The municipal districts must
102-20 present to the commission with the petition a petition from each
102-21 petitioning district adopted by a majority of the directors of the
102-22 district.
102-23 (c) The owner or owners of 2,000 or more contiguous acres
102-24 may petition the commission for creation of a district.
102-25 (d) The commissioners courts of one or more counties may
102-26 petition the commission for creation of a district in any territory
102-27 within the county.
103-1 (e) The governing body of any city may petition the
103-2 commission for creation of a district in any territory within the
103-3 city or its extraterritorial jurisdiction.
103-4 (f) Section 54.013 of this code applies to the composition
103-5 of districts created under this chapter.
103-6 Sec. 59.004. PURPOSES OF DISTRICT. A district shall be
103-7 created:
103-8 (1) to purchase, own, hold, lease, and otherwise
103-9 acquire sources of water supply;
103-10 (2) to build, operate, and maintain facilities for the
103-11 transportation of water;
103-12 (3) to sell water to cities and political subdivisions
103-13 of this state, to private business entities, and to individuals;
103-14 (4) to purchase, own, hold, lease, and otherwise
103-15 acquire equipment and mechanisms necessary for sanitary sewer and
103-16 wastewater treatment;
103-17 (5) to build, operate, and maintain facilities for
103-18 sanitary sewer and wastewater treatment;
103-19 (6) to transport and treat sanitary sewer and
103-20 wastewater effluent of cities and political subdivisions of this
103-21 state, and for private business entities or individuals;
103-22 (7) to purchase, own, hold, lease, and otherwise
103-23 acquire equipment and mechanisms for the drainage of storm water
103-24 and floodwater; and
103-25 (8) for the purposes outlined in Section 54.012 of
103-26 this code.
103-27 Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
104-1 Development Board requires that matching funds be provided as a
104-2 condition for receiving a loan or grant from the Texas Water
104-3 Development Board from research and planning funds, the matching
104-4 funds may not be provided through a guarantee of matching funds by
104-5 any individual who has a financial interest in the regional
104-6 district or who will receive any direct financial benefit from a
104-7 regional district project.
104-8 Sec. 59.006. PETITION. (a) To create a district, a
104-9 petition of any of the persons or entities described in Section
104-10 59.003 requesting creation must be filed with the commission.
104-11 (b) The petition must:
104-12 (1) describe the boundaries of the proposed district
104-13 by metes and bounds that adequately and completely circumscribe the
104-14 property so that there is complete closure of the property or by
104-15 lot and block numbers if there is a recorded map or plat or
104-16 subdivision survey of the area;
104-17 (2) state the general nature of the work proposed to
104-18 be done, the necessity of the work, and the cost of any projects of
104-19 the district as estimated by those filing the petition;
104-20 (3) state the name of each petitioner; and
104-21 (4) include a name of the district that is generally
104-22 descriptive of the locale of the district followed by the words
104-23 "Regional District."
104-24 (c) A proposed district may not have the same name as any
104-25 other district located in the state.
104-26 Sec. 59.007. CONSENT OF CITY. (a) Land in the corporate
104-27 limits of a city or in the extraterritorial jurisdiction of a city
105-1 may not be included in a district unless the city grants its
105-2 written consent by resolution or ordinance to the inclusion of the
105-3 land in the district.
105-4 (b) If the governing body of a city fails or refuses to
105-5 grant permission for the inclusion of land in its extraterritorial
105-6 jurisdiction in a district within 120 days after receipt of a
105-7 written request, the person or entity desiring to create the
105-8 district may petition the governing body of the city requesting the
105-9 city to make available the water, sewer, or drainage service
105-10 contemplated to be provided by the district.
105-11 (c) Failure of the governing body of the city and the
105-12 requesting district to execute a mutually agreeable contract
105-13 providing for the service requested within six months after receipt
105-14 of a request for consent constitutes authorization for the
105-15 inclusion of land in the district under this section.
105-16 Authorization for the inclusion of the land in the district under
105-17 this section means only authorization to initiate proceedings to
105-18 include the land in the district as otherwise provided by this
105-19 chapter.
105-20 (d) Sections 54.016(e), (f), (g), and (h) of this code apply
105-21 under this chapter.
105-22 Sec. 59.008. GRANTING OR REFUSING PETITION; EXCLUSION OF
105-23 TERRITORY. (a) If after the hearing of the petition the
105-24 commission finds that the petition conforms to the requirements of
105-25 this chapter and that the creation of the district would be of
105-26 benefit to the territory to be included in the district, the
105-27 commission shall issue an order granting the petition for creation.
106-1 If the commission finds that part of the territory included in the
106-2 proposed district will not benefit from the creation of the
106-3 district, the commission shall exclude that territory from the
106-4 proposed district and redefine the proposed district's boundaries
106-5 accordingly.
106-6 (b) If the commission finds that the petition does not
106-7 conform to the requirements of this chapter or that the proposed
106-8 projects are not of benefit to the territory in the proposed
106-9 district, the commission shall issue an order denying the petition
106-10 or allowing the petitioners to amend their petition and resubmit
106-11 it.
106-12 (c) A copy of the order of the commission granting or
106-13 denying a petition shall be mailed to each city having
106-14 extraterritorial jurisdiction in the county or counties in which
106-15 the district is to be located that has requested notice of hearings
106-16 as provided by Section 54.019 of this code.
106-17 (Sections 59.009-59.020 reserved for expansion
106-18 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
106-19 Sec. 59.021. DIRECTORS. (a) The commission shall appoint
106-20 temporary directors who shall serve until permanent directors are
106-21 elected.
106-22 (b) A petition requesting creation filed in accordance with
106-23 Section 59.006 may provide that directors be elected by precinct as
106-24 provided by Subsection (h) of this section.
106-25 (c) The board of directors is composed of five members
106-26 unless the petition requesting creation of the district requests
106-27 and the commission approves a board that consists of seven members.
107-1 (d) Permanent directors shall be elected in accordance with
107-2 Chapter 49 of this code.
107-3 (e) If the petition for creation has requested the election
107-4 of seven directors as provided by Subsection (c) of this section,
107-5 unless otherwise agreed, the three directors elected who received
107-6 the fewest number of votes, whether their election is by precinct
107-7 or at large, shall serve until the next directors' election
107-8 following the confirmation election and the four who received the
107-9 highest number of votes shall serve until the second directors'
107-10 election after the confirmation election.
107-11 (f) After the creation of the district, the persons or
107-12 entities that petitioned for creation or 50 qualified voters of the
107-13 district may file a petition with the commission requesting to
107-14 expand the district's board to seven members. If the commission
107-15 grants the petition, the commission shall appoint two temporary
107-16 directors. One temporary director shall serve until the next
107-17 directors' election and one shall serve until the next succeeding
107-18 directors' election. At each election one director shall be
107-19 elected to serve for a four-year term.
107-20 (g) If the board of directors of the district is expanded to
107-21 seven members, four directors shall constitute a quorum and a
107-22 concurrence of four directors is necessary in all matters
107-23 pertaining to the business of the district.
107-24 (h) A petition for the creation of a district may request
107-25 that the board be elected to represent a geographic area. If the
107-26 petition requesting creation of the district is granted, the
107-27 commission shall establish precincts from which the directors are
108-1 to be elected. In establishing the precincts the commission shall
108-2 attempt to have directors represent geographic areas with equal
108-3 numbers of people and shall endeavor to the extent possible to
108-4 cause the rights of minorities to be protected and to comply with
108-5 the federal Voting Rights Act (42 U.S.C. Sections 1971, 1973 et
108-6 seq.). Thereafter, the board of directors of the district shall
108-7 revise the precincts from time to time to cause them to comply with
108-8 the provisions of this subsection.
108-9 Sec. 59.022. ABILITY TO SET RATES. The district may charge
108-10 rates to persons and entities located outside the district's
108-11 boundaries on terms, rates, and charges the board of directors may
108-12 determine to be advisable. In setting rates for out-of-district
108-13 customers, the board shall set rates sufficient to enable it to
108-14 meet operation and maintenance expenses and to pay the principal of
108-15 and interest on debt issued in connection with providing service
108-16 and to provide a reasonable reserve for replacements to the
108-17 district. In setting rates, the district may take into
108-18 consideration past operation and debt service expenses.
108-19 Sec. 59.023. ISSUANCE OF BONDS. The district may issue
108-20 bonds for the purpose of purchasing, constructing, acquiring,
108-21 owning, operating, repairing, improving, or extending any district
108-22 works, improvements, facilities, plants, equipment, and appliances
108-23 needed to accomplish the purposes provided by Section 59.004 for
108-24 which a district is created, including works, improvements,
108-25 facilities, plants, equipment, and appliances needed to provide a
108-26 waterworks system, sanitary sewer system, storm sewer system, solid
108-27 waste disposal system, and parks and recreational facilities.
109-1 Prior to issuing bonds or other obligations, a confirmation
109-2 election must be held in accordance with Chapter 49 of this code,
109-3 and a majority of voters must approve the establishment of the
109-4 district.
109-5 Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS. (a)
109-6 A municipal district may be excluded from the district as provided
109-7 by this section.
109-8 (b) To be excluded, the board of directors of the municipal
109-9 district may adopt a resolution requesting exclusion by a majority
109-10 vote of its board of directors and shall file the petition with the
109-11 directors of the proposed district before the first confirmation
109-12 election.
109-13 (c) At the time of the district's confirmation election, a
109-14 separate voting precinct shall be used for the qualified voters in
109-15 each municipal district that has filed a petition requesting
109-16 exclusion. The votes in each precinct shall be tallied separately
109-17 to determine whether that municipal district will be excluded from
109-18 the district boundaries.
109-19 (d) If a majority of the votes cast in a municipal district
109-20 requesting exclusion vote against confirmation of the district, the
109-21 votes cast in the confirmation election shall not be counted for
109-22 the confirmation election, bond election, or maintenance tax
109-23 election, and that municipal district must be excluded from the
109-24 boundaries of the district by the board of directors of the
109-25 district at the time the results of the election are canvassed.
109-26 (e) After a confirmation election at which the district is
109-27 authorized to be created, the board of directors of the district
110-1 shall adopt an order redefining the boundaries of the district to
110-2 exclude those municipal districts petitioning for exclusion that
110-3 have voted not to confirm creation of the district.
110-4 (f) Before the creation hearing, any municipal district
110-5 located within the proposed district may petition the commission
110-6 for a separate voting precinct to be used within the boundaries of
110-7 the petitioning district at the time of the district's confirmation
110-8 election. If the commission grants the petition requesting a
110-9 separate voting precinct, Subsections (c) through (e) of this
110-10 section apply.
110-11 Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district
110-12 may be created pursuant to a petition granted by the commission, a
110-13 confirmation election must be held within the boundaries of the
110-14 proposed district.
110-15 (b) The directors appointed by the commission shall call and
110-16 hold the confirmation election in the manner provided for
110-17 conducting elections under Chapter 49 of this code. The provisions
110-18 of those sections relating to a director's election do not apply to
110-19 an election held under this section.
110-20 (c) If the creation of the district is defeated, subsequent
110-21 confirmation elections may not be held to confirm the creation of
110-22 the district.
110-23 (d) A bond election, maintenance tax election, and any other
110-24 election may be held at the same time and in conjunction with a
110-25 confirmation election.
110-26 (e) In this section, "district" means:
110-27 (1) a district as defined by Section 59.002(a)(1) of
111-1 this code; or
111-2 (2) a municipal district that proposes to provide
111-3 wholesale regional water, sewer services, or drainage services in a
111-4 county with a population of at least two million, according to the
111-5 most recent federal census, or a county that borders a county with
111-6 a population of at least two million, according to the most recent
111-7 federal census.
111-8 (Sections 59.026-59.050 reserved for expansion
111-9 SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
111-10 Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
111-11 LANDOWNERS. In addition to the method of adding land to a district
111-12 described in Section 59.052, defined areas of land, regardless of
111-13 whether they are contiguous to the district, may be annexed to the
111-14 district in the manner provided in Chapter 49.
111-15 Sec. 59.052. FILING OF PETITION. A petition requesting the
111-16 annexation of a defined area signed by a majority in value of the
111-17 owners of land in the defined area, as shown by the tax rolls of
111-18 the county or counties in which that area is located, signed by 50
111-19 landowners if the number of landowners is more than 50, signed by
111-20 the single landowner of 2,000 or more acres of land in the area, or
111-21 signed by a majority of the governing body of a municipal district,
111-22 a county, or a city requesting annexation, shall be filed with the
111-23 secretary of the board.
111-24 Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
111-25 BONDS. (a) If the board considers it advisable before the
111-26 issuance of any bonds, the board may dissolve the district and
111-27 liquidate the affairs of the district as provided by Sections
112-1 54.734 through 54.738 of this code.
112-2 (b) If a majority of the board finds at any time before the
112-3 authorization of bonds that the proposed district and its proposed
112-4 activities are for any reason impracticable or apparently cannot be
112-5 successfully and beneficially accomplished, the board may issue
112-6 notice of a hearing on a proposal to dissolve the district.
112-7 Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
112-8 order to dissolve the district may be judicially reviewed as
112-9 provided in Chapter 49.
112-10 (Sections 59.055-59.070 reserved for expansion
112-11 SUBCHAPTER D. MISCELLANEOUS
112-12 Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) In
112-13 this section, "district" has the meaning assigned by Section
112-14 59.002(a)(1) of this chapter.
112-15 (b) If a city annexes all or any part of the territory
112-16 within a district, or incorporates all or any part of any territory
112-17 within a district, the city shall succeed to the powers, duties,
112-18 assets, and obligations of the district as provided by this
112-19 chapter.
112-20 (c) On annexation of any part of the territory of a district
112-21 by a city or incorporation by a city of any part of the territory
112-22 of a district, the city shall assume a pro rata share of all debt
112-23 of the district payable in whole or in part by ad valorem taxes
112-24 incurred for water, sewer, or drainage purposes or any combination
112-25 of the three purposes. The percentage of the assumption shall be
112-26 determined by multiplying the total debt of the district payable in
112-27 whole or in part from taxes incurred for the stated purposes by a
113-1 fraction, the numerator of which is the assessed value of the
113-2 property to be annexed or incorporated based on the most recent
113-3 certified county property tax rolls at the time of annexation or
113-4 incorporation and the denominator of which is the total assessed
113-5 value of the property of the district based on the most recent
113-6 certified county property tax rolls at the time of annexation or
113-7 incorporation.
113-8 (d) After annexation by a city of a portion of the territory
113-9 of a district or incorporation over any part of the territory of a
113-10 district, the district may not levy taxes on that territory, and
113-11 the territory is no longer considered a part of the district for
113-12 any purpose.
113-13 (e) If any district's debt payable in whole or in part from
113-14 ad valorem taxes is assumed by a city, the governing body of the
113-15 city shall levy and cause to be collected taxes on all taxable
113-16 property within the city or provide other funds sufficient to pay
113-17 the city's pro rata share of the principal of and interest on that
113-18 debt as it becomes due and payable.
113-19 (f) If a city annexes or incorporates the entire territory
113-20 of the district, the district shall be dissolved in accordance with
113-21 Sections 43.074, 43.075, and 43.081, Local Government Code, if the
113-22 district is located in one city or Sections 43.076-43.079, Local
113-23 Government Code, if the district is located in more than one city.
113-24 (g) Section 43.071, Local Government Code, does not apply to
113-25 the annexation of a district created pursuant to this chapter.
113-26 Sec. 59.072. OTHER LAWS. (a) Except as specifically
113-27 provided by this chapter, Sections 54.018, 54.019(a), (b), (c), and
114-1 (d), 54.020, 54.021, 54.023, 54.024, 54.201, 54.205, 54.207 through
114-2 54.209, 54.502 through 54.506, 54.507(b) and (c), 54.509 through
114-3 54.512, 54.514, 54.515, 54.517, 54.518, 54.520, 54.521, 54.601
114-4 through 54.604, and 54.735 through 54.737 of this code apply under
114-5 this chapter.
114-6 (b) Section 54.019(e) of this code does not apply to a
114-7 district governed by this chapter.
114-8 SECTION 5. Section 51.0711(a), Water Code, is amended to
114-9 read as follows:
114-10 (a) The governing body of a municipality that enters a
114-11 contract or agreement with a district located in more than one
114-12 county to jointly construct, acquire, operate, or maintain a
114-13 regional wastewater system is entitled to appoint a special
114-14 director to the board of the district. Section 51.072 <of this
114-15 code> does not apply to a special director.
114-16 SECTION 6. Section 51.072, Water Code, is amended to read as
114-17 follows:
114-18 Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified
114-19 for election as a director, a person must be a resident of the
114-20 state, own land subject to taxation in the district, and be at
114-21 least 18 <21> years of age. Section 49.052 does not apply to a
114-22 district governed by this chapter whose principal purpose is
114-23 providing water for irrigation.
114-24 SECTION 7. Section 51.076(a), Water Code, is amended to read
114-25 as follows:
114-26 (a) In a district created after June 18, 1967, with
114-27 boundaries coterminous with the boundaries of a county, the
115-1 commissioners court may provide in the order granting the petition
115-2 for creation that the directors are to be selected either as
115-3 provided in Section 49.102 <51.073 of this code> or by the
115-4 "commissioners precinct method," which provides for the election of
115-5 two directors from each commissioners precinct in the county and
115-6 the election of one director from the county at large.
115-7 SECTION 8. Section 51.750(d), Water Code, is amended to read
115-8 as follows:
115-9 (d) The temporary directors of each of the resulting
115-10 districts must qualify as directors of the district pursuant to
115-11 Section <Sections> 51.072 <and 51.073 of this code> within the
115-12 period of 90 days after the election approving the division of the
115-13 original district and shall assume their offices at the expiration
115-14 of the 90-day period.
115-15 SECTION 9. Section 52.005, Water Code, is amended by adding
115-16 Subsection (c) to read as follows:
115-17 (c) Section 49.052, Section 49.216, and Sections
115-18 49.301-49.308 do not apply to districts governed by this chapter.
115-19 SECTION 10. Section 52.104(a), Water Code, is amended to
115-20 read as follows:
115-21 (a) Except in a district that is composed of the territory
115-22 of more than one county, is located in a county with a population
115-23 of more than 100,000, or has a population of more than 100,000, the
115-24 board may employ a director as general manager.
115-25 SECTION 11. Section 52.106, Water Code, is amended by
115-26 amending Subsection (b) and adding Subsection (c) to read as
115-27 follows:
116-1 (b) A person is ineligible for election as a director if
116-2 that person is:
116-3 (1) disqualified under the provisions of Section
116-4 49.052;
116-5 (2) a member of the governing body of another
116-6 political subdivision;
116-7 (3) an appointed officer of another political
116-8 subdivision; or
116-9 (4) a manager, director, officer, owner, or designated
116-10 official of an investor-owned utility, a water supply corporation,
116-11 another district, or any other public water supply system regulated
116-12 or permitted by the district <is ineligible for appointment or
116-13 election as a director>.
116-14 (c) A director is disqualified and vacates the office of
116-15 director if the director meets any of the criteria provided by
116-16 Subsection (b) <is appointed or elected as a member of the
116-17 governing body of another political subdivision>.
116-18 SECTION 12. Section 52.115, Water Code, is amended to read
116-19 as follows:
116-20 Sec. 52.115. MEETINGS. <(a)> The board shall hold regular
116-21 quarterly meetings. It may hold meetings at other times as
116-22 required for the business of the district.
116-23 <(b) Any person may attend a meeting of the board and may
116-24 present in an orderly manner matters for the board's consideration.>
116-25 <(c) Meetings shall be conducted and notice of meetings
116-26 shall be posted in accordance with the open meetings law, Chapter
116-27 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
117-1 6252-17, Vernon's Texas Civil Statutes).>
117-2 SECTION 13. Sections 52.294(c), (d), and (e), Water Code,
117-3 are amended to read as follows:
117-4 (c) <Notice of an election must be given as provided by
117-5 Section 52.059(c) of this code for creation elections.>
117-6 <(d)> At an election to authorize bonds or notes payable
117-7 wholly from ad valorem taxes, the ballots must be printed to
117-8 provide for voting for or against the proposition: "The issuance
117-9 of (bonds or notes) and the levy of taxes for payment of the (bonds
117-10 or notes)." At any election to authorize bonds or notes payable
117-11 from both ad valorem taxes and revenues, the ballots must be
117-12 printed to provide for voting for or against: "The issuance of
117-13 (bonds or notes) and the pledge of net revenues and the levy of ad
117-14 valorem taxes adequate to provide for the payment of the (bonds or
117-15 notes)."
117-16 (d) <(e)> The board shall canvass the returns and declare
117-17 the results of the election. If a majority of the votes cast at
117-18 the election favor the issuance of the bonds or notes, the bonds or
117-19 notes may be issued by the board, but if a majority of the votes
117-20 cast at the election do not favor issuance of the bonds or notes,
117-21 the bonds or notes may not be issued.
117-22 SECTION 14. Section 53.040, Water Code, is amended to read
117-23 as follows:
117-24 Sec. 53.040. Elected Supervisors Take Office. If the
117-25 election results in a division of the district, the five candidates
117-26 receiving the most votes in each new district shall be declared
117-27 elected. They shall immediately qualify in accordance with Section
118-1 49.055 of this code <by taking the constitutional oath of office
118-2 and shall file the oath with the county clerk>.
118-3 SECTION 15. Section 53.042, Water Code, is amended to read
118-4 as follows:
118-5 Sec. 53.042. Newly Elected Supervisors--Term of Office. The
118-6 newly elected supervisors hold office until the new district's next
118-7 supervisors election <first general election and then until their
118-8 successors are elected and have qualified>.
118-9 SECTION 16. Section 53.062, Water Code, is amended to read
118-10 as follows:
118-11 Sec. 53.062. Board of Supervisors. A district created under
118-12 this chapter is governed by a board of five elected supervisors.
118-13 <Specific provisions for the election of supervisors are found in
118-14 Section 53.021, Section 53.086, and Section 53.0861 of this code.>
118-15 SECTION 17. Section 53.088, Water Code, is amended to read
118-16 as follows:
118-17 Sec. 53.088. Status of the District. <(a)> A district is:
118-18 (1) a governmental agency;
118-19 (2) a body politic and corporate; and
118-20 (3) a defined district within the meaning of Article
118-21 XVI, Section 59, of the Texas Constitution.
118-22 <(b) A district may, through its board, sue and be sued in
118-23 any court of this state in the name of the district. All courts of
118-24 this state shall take judicial notice of the creation of a
118-25 district. A district shall contract and be contracted within the
118-26 name of the district.>
118-27 SECTION 18. Section 53.172, Water Code, is amended to read
119-1 as follows:
119-2 Sec. 53.172. Ordering Bond Election. After the creation of
119-3 a district and the qualification of the supervisors, the board may
119-4 order an election in the district to authorize a bond issue. <The
119-5 board shall set the day for the election, which must be held during
119-6 the period beginning on the 20th day and ending with the 30th day
119-7 after the day of the order.> At this election, the board shall
119-8 submit only a proposition authorizing the issuance of bonds and the
119-9 levy of a tax to pay the bonds. The ballots shall be printed to
119-10 allow for voting for or against the proposition: "The issuance of
119-11 bonds and the levy of taxes to pay the bonds."
119-12 SECTION 19. Subchapter H, Chapter 54, Water Code, is amended
119-13 by adding Section 54.739 to read as follows:
119-14 Sec. 54.739. ANNEXATION OF CERTAIN DISTRICTS. (a) Before a
119-15 municipality may institute proceedings to annex a district, the
119-16 municipality shall give the district not less than 48 nor more than
119-17 60 months' advance written notice of its intention to do so. After
119-18 such written notice is given, the district may not issue any
119-19 additional bonded indebtedness, extend any of its services to
119-20 additional areas outside its boundaries, or institute any new type
119-21 of service without the prior written approval of the governing body
119-22 of the municipality, which approval may not be unreasonably
119-23 withheld or delayed.
119-24 (b) The board of directors of the district may, by
119-25 resolution, waive the giving of notice required under this section
119-26 or agree to a shorter notice period.
119-27 (c) In this section, "district" means a municipal utility
120-1 district created under this chapter that has been in existence at
120-2 least 10 years, has a population of 10,000, provides water and
120-3 wastewater services, provides parks and recreational facilities,
120-4 provides or contracts for the provision of fire-fighting services,
120-5 has an outstanding bonded indebtedness, and lies partly within the
120-6 corporate limits and partly within the extraterritorial
120-7 jurisdiction of a single home-rule municipality.
120-8 SECTION 20. Section 54.025, Water Code, is amended to read
120-9 as follows:
120-10 Sec. 54.025. Qualification of Temporary Directors. After a
120-11 district has been organized, each temporary director shall execute
120-12 a <his> bond in accordance with the provisions of Section 49.055
120-13 <54.116 of this code> and shall take the <his> oath of office, and
120-14 the board shall meet and organize.
120-15 SECTION 21. Section 54.036, Water Code, is amended to read
120-16 as follows:
120-17 Sec. 54.036. Directors to Continue Serving. The existing
120-18 board of a district converted to a municipal utility district under
120-19 the provisions of this chapter shall continue to serve as the board
120-20 of the converted district <until the first Saturday in April
120-21 following conversion of the district, at which time five directors
120-22 shall be elected to serve for such period of time and in the same
120-23 manner as provided in Section 54.029 of this code for directors
120-24 first elected for a district>.
120-25 SECTION 22. Section 54.203, Water Code, as amended by H.B.
120-26 No. 2876, Acts of the 72nd Legislature, Regular Session, 1991, is
120-27 amended to read as follows:
121-1 Sec. 54.203. MUNICIPAL Solid Waste. A district is
121-2 authorized to purchase, construct, acquire, own, operate, maintain,
121-3 repair, improve, extend, or establish a municipal solid waste
121-4 collection and disposal system, including recycling, inside and
121-5 outside the district and make proper charges for it. A district
121-6 may require use of such services as a condition for receiving other
121-7 district services. A district may enter into an exclusive contract
121-8 with a private entity to provide such services to all land and
121-9 persons within its boundaries.
121-10 SECTION 23. Section 54.729(a), Water Code, is amended to
121-11 read as follows:
121-12 (a) After the board of each district has agreed on the terms
121-13 and conditions of consolidation, which may include the assumption
121-14 by each district of the <other district's> bonds, notes, or other
121-15 obligations and voted but unissued bonds of the other consolidating
121-16 districts payable in whole or in part from taxation, the levy of
121-17 taxes to pay for the bonds, and adoption of a name for the
121-18 consolidated district, the board shall order an election in each
121-19 district to determine whether the districts should be consolidated.
121-20 SECTION 24. Section 54.730(a), Water Code, is amended to
121-21 read as follows:
121-22 (a) After two or more districts are consolidated, they
121-23 become one district and are governed as one district, except for
121-24 the payment of debts created before consolidation if the conditions
121-25 of consolidation do not provide for the assumption by each district
121-26 of the <other's> bonds, notes, or other obligations and voted but
121-27 unissued bonds of the other consolidating districts.
122-1 SECTION 25. Section 54.732, Water Code, is amended to read
122-2 as follows:
122-3 Sec. 54.732. ASSESSMENT AND COLLECTION OF TAXES. After
122-4 consolidation, the district shall assess and collect taxes on
122-5 property in the original districts to pay debts created by the
122-6 original districts unless each district has assumed the <other
122-7 district's> bonds, notes, or other indebtedness payable in whole or
122-8 in part from taxation of the other consolidating districts.
122-9 SECTION 26. Section 54.733, Water Code, is amended to read
122-10 as follows:
122-11 Sec. 54.733. VOTED BUT UNISSUED BONDS. In the event any
122-12 consolidating <either> district has voted but unissued bonds
122-13 payable in whole or in part from taxation and the consolidated
122-14 district assumed the voted but unissued bonds and the consolidated
122-15 district was authorized to levy taxes to pay for the bonds, then
122-16 the consolidated district shall be authorized to issue the voted
122-17 but unissued bonds in the name of the consolidated district and
122-18 levy a uniform tax on all taxable property in the consolidated
122-19 district to pay for the bonds.
122-20 SECTION 27. Chapter 54, Water Code, is amended by adding
122-21 Sections 54.739-54.747 to read as follows:
122-22 Sec. 54.739. Substituting Land of Equal Acreage and Value.
122-23 After the district is organized and acquires facilities with which
122-24 to function for the purposes for which it was organized, and votes,
122-25 issues and sells bonds for such purposes, land within the district
122-26 boundaries subject to taxation which does not need or utilize the
122-27 services of the district, may be excluded and other land not within
123-1 the boundaries of the district, may be included within the
123-2 boundaries of the district as provided by the provisions of this
123-3 section and Sections 54.740-54.747 subject to commission approval.
123-4 Sec. 54.740. Requisites for Application for Exclusion. The
123-5 owner(s) of land in the district not receiving services from the
123-6 district may apply for its exclusion from the district boundaries
123-7 if all taxes levied and assessed by the district on the land to be
123-8 excluded, have been fully paid. The application shall set forth
123-9 facts concerning the land proposed for exclusion, including
123-10 evidence of the reasonable market value of the land, and state that
123-11 the other requisites for the exclusion of the land and substitution
123-12 of other land have been fulfilled or will be fulfilled at the
123-13 hearing upon the application. The application shall be verified
123-14 and acknowledged in a recordable form as conveyances of real
123-15 property.
123-16 Sec. 54.741. Inclusion of Substitute Land Required. An
123-17 application for exclusion can only be considered by the board if an
123-18 application is filed by the owner(s) of other land lying outside
123-19 the boundaries of the district seeking inclusion of land which can
123-20 be served in a practical manner by the district of at least equal
123-21 value to the land proposed for exclusion, and such land must be
123-22 included within the district boundaries and taxing jurisdiction of
123-23 the district simultaneously with the exclusion of the land proposed
123-24 for exclusion, and such included land must be of sufficient acreage
123-25 to avoid an impairment of the security for payment of voted and
123-26 issued bonds and any other contract obligations payable or secured,
123-27 in whole or in part, from ad valorem taxes or revenues of the
124-1 district.
124-2 Sec. 54.742. Application for Inclusion. The application
124-3 submitted by owner(s) of land proposed for inclusion, shall set
124-4 forth that the owner(s) of the new land assumes the payment of all
124-5 taxes, assessments and fees levied on the land and assessed by the
124-6 district after the date the land is included in the district. The
124-7 application shall also set forth an agreement by the owner(s) of
124-8 the land proposed for inclusion that the land will be subject to
124-9 future taxes for bond tax and other assessments and fees levied and
124-10 assessed by the district and be subject to the same liens and
124-11 provisions and statutes governing all other lands in the district
124-12 as though the land had been incorporated originally in the
124-13 district. The application for inclusion shall be verified and
124-14 acknowledged in a recordable form as conveyances of real property.
124-15 Sec. 54.743. Notice of Hearing and Hearing Procedures. The
124-16 board shall give notice of the hearing on the applications for
124-17 exclusion and inclusion in conformity with the notice and hearing
124-18 requirements otherwise applicable to exclusions or additions of
124-19 land. The board at such hearing shall hear all interested parties
124-20 and all evidence in connection with the applications.
124-21 Sec. 54.744. Impairment of Security. For purposes of the
124-22 board's consideration of the applications, the lands proposed for
124-23 inclusion shall be deemed to be sufficient to avoid an impairment
124-24 of the security for payment of obligations of the district if:
124-25 (1) according to the county tax rolls, the taxable
124-26 value of such included lands equals or exceeds the taxable value of
124-27 the excluded lands;
125-1 (2) the estimated costs of providing district
125-2 facilities and services to such included lands is equal to or less
125-3 than the estimated costs of providing district facilities and
125-4 services to the excluded lands; and
125-5 (3) the district's outstanding bonds or contract
125-6 obligations are payable in whole or in part by a pledge of net
125-7 revenues from the ownership or operation of the district's
125-8 facilities, the projected net revenues to be derived from the lands
125-9 to be included during the succeeding 12-month period, as determined
125-10 by the district's engineer, equals or exceeds the projected net
125-11 revenues which would otherwise have been derived from the lands to
125-12 be excluded during the same period.
125-13 Sec. 54.745. Board's Resolution to Substitute. If the board
125-14 finds that all the conditions provided for the exclusion of land
125-15 and inclusion of other land in the district exist and that it is in
125-16 the best interest of the district to grant such applications, it
125-17 may adopt and enter in its minutes a resolution and order excluding
125-18 all or part of the land proposed for exclusion and including all or
125-19 part of the land proposed for inclusion. Prior to the effective
125-20 date of the exclusion and inclusion of lands, the district shall
125-21 have received payment of all fees, charges, assessments, taxes,
125-22 together with any associated penalties and interest due or overdue
125-23 in the respect to the lands excluded and if no ad valorem taxes or
125-24 fees have yet been established by the district for the current
125-25 year, an amount determined by the district to equal the estimated
125-26 ad valorem taxes and standby fees to be established by the district
125-27 for the current year, prorated to the date of exclusion with
126-1 respect to such excluded lands, shall also be paid.
126-2 Sec. 54.746. Liability of Excluded and Included Land. The
126-3 land excluded from the district is free from any lien or liability
126-4 created on the excluded land by reason of its having been included
126-5 in the district. Land included in the district is subject to all
126-6 laws, liens, and provisions governing the district and the land in
126-7 the district.
126-8 Sec. 54.747. Service to Included Land. The district has the
126-9 same right and obligation to furnish services to the included land
126-10 that it previously had to furnish to the excluded land.
126-11 SECTION 28. Section 55.101, Water Code, is amended to read
126-12 as follows:
126-13 Sec. 55.101. Board of Directors. The governing body of a
126-14 district is a <the> board of five directors.
126-15 SECTION 29. Section 55.102, Water Code, is amended to read
126-16 as follows:
126-17 Sec. 55.102. Qualifications of Directors. To be qualified
126-18 for election as a director, a person must be a resident of the
126-19 state, own land subject to taxation in the district, and be at
126-20 least 18 <more than 21> years of age at the time of the election.
126-21 Section 49.052 does not apply to a district governed by this
126-22 chapter whose principal purpose is providing water for irrigation.
126-23 SECTION 30. Section 55.721, Water Code, is amended to read
126-24 as follows:
126-25 Sec. 55.721. Exclusion of Nonagricultural and Nonirrigable
126-26 Land From District. Land located in the district which is
126-27 classified as nonagricultural and nonirrigable may be excluded from
127-1 the district in the manner provided in Subchapter J, Chapter 49
127-2 <Sections 51.702-51.713 of this code>.
127-3 SECTION 31. Section 56.064, Water Code, is amended to read
127-4 as follows:
127-5 Sec. 56.064. Election of Directors. (a) On petition of a
127-6 majority of the real property taxpayers of a district requesting an
127-7 election of district directors, the commissioners court shall
127-8 immediately order an election to be held at the earliest legal
127-9 time. The election shall be held as other elections under Chapter
127-10 49 <this chapter>.
127-11 (b) <The commissioners court shall declare the three persons
127-12 receiving the highest number of votes elected, and if two or more
127-13 persons tie for the third highest vote, the commissioners court
127-14 shall elect the third director from those tying for the place.>
127-15 <(c) On qualifying for office, directors elected under this
127-16 section are the legal and rightful directors of the district within
127-17 the full meaning and purpose of this law.>
127-18 <(d) The first elected directors of the district hold office
127-19 until the next regular directors' election, and subsequent
127-20 directors of the district are elected every four years except as
127-21 provided by Subsection (e) of this section.>
127-22 <(e)> The first elected directors of the districts in
127-23 Calhoun, Matagorda, and Victoria Counties hold office until May 15
127-24 of the next succeeding odd-numbered year. Subsequent directors of
127-25 the district are elected every two years on the first Saturday in
127-26 May in each odd-numbered year, for a term of two years beginning on
127-27 May 15 following the election.
128-1 SECTION 32. Section 57.053, Water Code, is amended to read
128-2 as follows:
128-3 Sec. 57.053. Term of Office, Removal, and Succession. (a)
128-4 <Each director shall hold office for a period of two years and
128-5 until his successor is appointed and has qualified.>
128-6 <(b)> A vacancy on the board shall be filled by majority
128-7 vote of the commissioners court <of jurisdiction>, and the court
128-8 shall appoint directors so that the board will always have full
128-9 membership.
128-10 (b) <(c)> The commissioners court <of jurisdiction>, by
128-11 majority vote, may remove an appointed <a> member of the board.
128-12 SECTION 33. Section 57.060, Water Code, is amended to read
128-13 as follows:
128-14 Sec. 57.060. Petition. Before an election is held under
128-15 Section 57.057 of this code, a petition, signed by at least 100
128-16 <25> electors in the district <each county commissioners precinct>
128-17 who are qualified to vote <at an election for directors if a
128-18 countywide election, or by 50 electors if less than countywide>,
128-19 shall be presented to the district <county judge> requesting that
128-20 an election be held in the district to determine whether or not
128-21 directors for the district should be elected and, if so, to elect
128-22 directors to serve until the next regular director election <for
128-23 state and county officers>. The petition shall include the name of
128-24 one or more nominees for each director's position.
128-25 SECTION 34. Section 57.061, Water Code, is amended to read
128-26 as follows:
128-27 Sec. 57.061. Procedure for Election. <(a)> After the
129-1 petition is presented under Section 57.060 of this code, the board
129-2 <county judge> shall order an election <to determine the
129-3 propositions presented in the position. The election shall be held
129-4 not less than 30 days from the date of the order calling the
129-5 election, or the propositions may be determined at a general
129-6 election>.
129-7 <(b) The election order shall designate the polling places
129-8 which shall be the same as the polling places used in the last
129-9 general election in the county, if a countywide election is held.>
129-10 <(c) The county clerk shall issue notice of the election and
129-11 shall have the notice published in a newspaper of general
129-12 circulation in the county once a week for two consecutive weeks.
129-13 The first publication must not be less than 14 days before the day
129-14 of the election.>
129-15 <(d) The sheriff shall post a copy of the notice at least 20
129-16 days before the day of the election at each polling place
129-17 designated in the election order.>
129-18 <(e) The district shall pay all expenses incident to calling
129-19 and holding the election.>
129-20 SECTION 35. Section 57.207, Water Code, is amended to read
129-21 as follows:
129-22 Sec. 57.207. Declaring Result of Election. <(a)
129-23 Immediately after an election under this chapter, the officials
129-24 holding the election shall return the result to the commissioners
129-25 court of jurisdiction.>
129-26 <(b) The election officials shall return the ballot boxes to
129-27 the clerk of the commissioners court of jurisdiction, who shall
130-1 safely keep the boxes and deliver them with the returns of the
130-2 election to the commissioners court of jurisdiction at its next
130-3 regular or special session.>
130-4 <(c) The commissioners court of jurisdiction at its first
130-5 session after the election shall canvass the vote and the returns.
130-6 If the proposition submitted has been approved by a majority of the
130-7 electors of the district voting at the election, the commissioners
130-8 court of jurisdiction shall declare the result to be in favor of
130-9 the proposition, but if the proposition is not approved by the
130-10 electors of the district, the commissioners court of jurisdiction
130-11 shall declare the result to be against the proposition.>
130-12 <(d)> The board <commissioners court of jurisdiction> shall
130-13 enter an order declaring the election result in its minutes.
130-14 SECTION 36. Section 58.072, Water Code, is amended to read
130-15 as follows:
130-16 Sec. 58.072. QUALIFICATIONS. To be qualified for election
130-17 as a director, a person must be a resident of the state, be the
130-18 owner of record of fee simple title to land in the district, <and>
130-19 be at least 18 years of age, and owe no delinquent taxes or
130-20 assessments to the district. Section 49.052 does not apply to a
130-21 district governed by this chapter.
130-22 SECTION 37. Section 65.103, Water Code, is amended to read
130-23 as follows:
130-24 Sec. 65.103. Election of Directors; Terms of Office. (a)
130-25 The persons receiving the highest number of votes at each election
130-26 shall serve as directors of the district.
130-27 (b) The terms of the directors may run concurrently, or may
131-1 be staggered, but in any event, the term of office of a director
131-2 may not exceed three years.
131-3 (c) The method for determining the initial terms for each of
131-4 the directors constituting the initial board shall be determined by
131-5 the temporary directors, and the terms must be clearly stated on
131-6 the ballot for the confirmation and director's election. At
131-7 subsequent elections in each following year in which there is an
131-8 election, the election must be held on the same uniform election
131-9 date as the confirmation and directors' election, and the terms of
131-10 the directors being elected must be stated on the ballot.
131-11 <(d) The election of directors must be held in a district on
131-12 one of the dates provided by Section 9b, Texas Election Code
131-13 (Article 2.01b, Vernon's Texas Election Code).>
131-14 <(e) The permanent directors may assign a position number to
131-15 each director's office, and each director subsequently shall be
131-16 elected by position and not at large.>
131-17 SECTION 38. Chapter 65, Water Code, is amended by adding
131-18 Section 65.235 to read as follows:
131-19 Sec. 65.235. Prohibition on Assessment or Collection of
131-20 Taxes. Section 49.107 does not apply to a district created under
131-21 this chapter.
131-22 SECTION 39. Subchapter A, Chapter 60, Water Code, is amended
131-23 by adding Section 60.002 to read as follows:
131-24 Sec. 60.002. AUDIT. Subchapter G, Chapter 49, related to
131-25 Audit of Districts, shall apply to districts governed by this
131-26 chapter.
131-27 SECTION 40. Subchapter M, Chapter 60, Water Code, is amended
132-1 by adding Section 60.350 to read as follows:
132-2 Sec. 60.350. BONDS. Section 49.181, related to the
132-3 Authority of Commission Over Issuance of District Bonds, and
132-4 Section 49.183, related to Bond Sales, shall apply to bonds
132-5 supported by taxes and issued by districts governed by this
132-6 chapter.
132-7 SECTION 41. Section 66.101, Water Code, is amended to read
132-8 as follows:
132-9 Sec. 66.101. Board of Directors. A district shall be
132-10 governed by a board of directors composed of five members, who are
132-11 elected as provided in Chapter 49 <by this chapter>.
132-12 SECTION 42. Section 66.310(b), Water Code, is amended to
132-13 read as follows:
132-14 (b) Bonds issued by a district and projects and improvements
132-15 of the district that are provided through the issuance of bonds are
132-16 governed by Chapter 49 <Sections 54.516 and 54.517 of this code>.
132-17 SECTION 43. The following sections of Chapter 51, Water
132-18 Code, are repealed: Sections 51.033, 51.034, 51.073 through
132-19 51.074, 51.077 through 51.084, 51.0851, 51.087 through 51.089,
132-20 51.091 through 51.101, 51.122 through 51.124, 51.126, 51.131,
132-21 51.132, 51.136 through 51.138, 51.140 through 51.146, 51.149
132-22 through 51.155, 51.183, 51.191 through 51.193, 51.221 through
132-23 51.224, 51.231 through 51.279, 51.354 through 51.363, 51.371
132-24 through 51.375, 51.412, 51.416 through 51.418, 51.421, 51.422,
132-25 51.4321, 51.4371, 51.601, 51.691 through 51.701, 51.714 through
132-26 51.731, and 51.737 through 51.747.
132-27 SECTION 44. The following sections of Chapter 52, Water
133-1 Code, are repealed: Sections 52.104, 52.107 through 52.114, 52.116
133-2 through 52.118, 52.119 through 52.121, 52.157, 52.251 through
133-3 52.253, 52.259 through 52.262, and 52.297.
133-4 SECTION 45. The following sections of Chapter 53, Water
133-5 Code, are repealed: Sections 53.020, 53.022, 53.023, 53.025
133-6 through 53.028, 53.035 through 53.039, 53.064, 53.065, 53.067
133-7 through 53.070, 53.0721, 53.076, 53.077, 53.084 through 53.087,
133-8 53.089, 53.090, 53.105, 53.106, 53.108 through 53.111, 53.114,
133-9 53.117 through 53.120, 53.123 through 53.125, 53.141 through
133-10 53.144, 53.147, 53.148, 53.173 through 53.175, 53.1791, 53.197,
133-11 53.198, and 53.231 through 53.273.
133-12 SECTION 46. The following sections of Chapter 54, Water
133-13 Code, are repealed: Sections 54.026 through 54.029, 54.103 through
133-14 54.126, 54.202, 54.204, 54.209 through 54.233, 54.301 through
133-15 54.312, 54.506, 54.507(a), 54.509, 54.5121, 54.513, 54.516, 54.517,
133-16 54.519, 54.701 through 54.727.
133-17 SECTION 47. The following sections of Chapter 55, Water
133-18 Code, are repealed: Sections 55.030, 55.033 through 55.036,
133-19 55.052, 55.104 through 55.106, 55.109, 55.111 through 55.116,
133-20 55.118 through 55.128, 55.162, 55.164, 55.168 through 55.184,
133-21 55.189 through 55.191, 55.199, 55.203, 55.252, 55.291 through
133-22 55.304, 55.331, 55.423 through 55.430, 55.451, 55.453, 55.492
133-23 through 55.496, 55.503, 55.506, 55.711 through 55.720, and 55.722
133-24 through 55.749.
133-25 SECTION 48. The following sections of Chapter 56, Water
133-26 Code, are repealed: Sections 56.027 through 56.031, 56.062,
133-27 56.063, 56.065 through 56.068, 56.076 through 56.081, 56.083,
134-1 56.113, 56.114, 56.119, 56.129 through 56.134, 56.136, 56.138,
134-2 56.139, 56.183, 56.184, 56.2045, and 56.714 through 56.725.
134-3 SECTION 49. The following sections of Chapter 57, Water
134-4 Code, are repealed: Sections 57.052, 57.054 through 57.056, 57.062
134-5 through 57.070, 57.095 through 57.099, 57.106, 57.107, 57.109,
134-6 57.110, 57.112 through 57.115, 57.119, 57.120, 57.171 through
134-7 57.174, 57.178, 57.202 through 57.206, 57.2075, 57.209 through
134-8 57.211, and 57.276 through 57.278.
134-9 SECTION 50. The following sections of Chapter 58, Water
134-10 Code, are repealed: Sections 58.033, 58.034, 58.073, 58.074
134-11 through 58.083, 58.085 through 58.088, 58.090 through 58.100,
134-12 58.123, 58.124, 58.131, 58.132, 58.135, 58.139 through 58.149,
134-13 58.151, 58.152, 58.169, 58.179, 58.187 through 58.189, 58.221
134-14 through 58.224, 58.261, 58.317, 58.354 through 58.362, 58.442,
134-15 58.451, 58.452, 58.601, 58.691 through 58.701, and 58.714 through
134-16 58.725.
134-17 SECTION 51. The following sections of Chapter 65, Water
134-18 Code, are repealed: Sections 65.024 through 65.029, 65.104 through
134-19 65.122, 65.202, 65.204, 65.209 through 65.234, 65.301, 65.401
134-20 through 65.409, 65.509, 65.512, and 65.514, and 65.701 through
134-21 65.722.
134-22 SECTION 52. The following sections of Chapter 66, Water
134-23 Code, are repealed: Sections 66.022 through 66.029, 66.103 through
134-24 66.117, 66.119, 66.120, 66.203 through 66.205, 66.208 through
134-25 66.215, 66.301, 66.302, 66.305 through 66.309, 66.312, and 66.323.
134-26 SECTION 53. (a) This Act takes effect as provided by this
134-27 section.
135-1 (b) Section 49.103(b), Water Code, shall govern all
135-2 elections held after December 31, 1993. Directors elected at any
135-3 election held between January 1, 1990, and April 30, 1990, shall
135-4 serve until the January 1994 election. Directors elected at any
135-5 election held between May 1, 1990, and December 31, 1990, shall
135-6 serve until the May 1994 election. Directors elected at any
135-7 election held between January 1, 1991, and April 30, 1991, shall
135-8 serve until the January 1994 election. Directors elected at any
135-9 election held between May 1, 1991, and July 31, 1991, shall serve
135-10 until the May 1994 election. Directors elected at any election
135-11 held between August 1, 1991, and December 31, 1991, shall serve
135-12 until the May 1996 election. Directors elected at any election
135-13 held between January 1, 1992, and April 30, 1992, shall serve until
135-14 the January 1996 election. Directors elected at any election held
135-15 between May 1, 1992, and December 31, 1992, shall serve until the
135-16 May 1996 election. Directors elected at any election held between
135-17 January 1, 1993, and April 30, 1993, shall serve until the January
135-18 1996 election. Directors elected at any election held between May
135-19 1, 1993, and July 31, 1993, shall serve until the May 1994
135-20 election. Directors elected at any election held between August 1,
135-21 1993, and December 31, 1993, shall serve until the May 1996
135-22 election. Directors whose terms expire prior to the election date
135-23 set by this section shall continue to serve until their successors
135-24 have been elected and qualified.
135-25 (c) All other provisions of this Act take effect September
135-26 1, 1993.
135-27 SECTION 54. The importance of this legislation and the
136-1 crowded condition of the calendars in both houses create an
136-2 emergency and an imperative public necessity that the
136-3 constitutional rule requiring bills to be read on three several
136-4 days in each house be suspended, and this rule is hereby suspended,
136-5 and that this Act take effect and be in force according to its
136-6 terms, and it is so enacted.