By: Yost H.B. No. 1266
73R3008 E
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 Chapter 50, Water Code, is repealed, except that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 (Sections 49.004-49.009 reserved for expansion
3-12 SUBCHAPTER B. CREATION
3-13 Sec. 49.010. ORDER OR ACT CREATING DISTRICT. Within 60 days
3-14 after the date a district is created, the district shall file with
3-15 the executive director a certified copy of the order or legislative
3-16 act creating the district or authorizing its creation, unless the
3-17 district was created by order of the commission.
3-18 (Sections 49.011-49.050 reserved for expansion
3-19 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
3-20 Sec. 49.051. BOARD OF DIRECTORS. A district shall be
3-21 governed by its board, the number of which is otherwise provided by
3-22 law.
3-23 Sec. 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
3-24 is disqualified from serving as a member of a board of a district
3-25 which includes less than all the territory in at least one county
3-26 and which, if located within the corporate area of a city or
3-27 cities, includes within its boundaries less than 75 percent of the
4-1 incorporated area of the city or cities, if that person:
4-2 (1) is related within the third degree of affinity or
4-3 consanguinity to a developer of property in the district, any other
4-4 member of the board, or the manager, engineer, attorney, or other
4-5 person providing professional services to the district;
4-6 (2) is an employee of any developer of property in the
4-7 district or any director, manager, engineer, attorney, or other
4-8 person providing professional services to the district or a
4-9 developer of property in the district in connection with the
4-10 district or property located in the district;
4-11 (3) is a developer of property in the district;
4-12 (4) is serving as an attorney, consultant, engineer,
4-13 manager, architect, or in some other professional capacity for the
4-14 district or a developer of property in the district in connection
4-15 with the district or property located in the district;
4-16 (5)(A) is a party to a contract with or along with the
4-17 district except for the purchase of public services furnished by
4-18 the district to the public generally; or
4-19 (B) is a party to a contract with or along with
4-20 a developer of property in the district relating to the district or
4-21 to property within the district, other than a contract limited
4-22 solely to the purpose of purchasing or conveying real property in
4-23 the district for the purpose of either establishing a permanent
4-24 residence, establishing a commercial business within the district,
4-25 or qualifying as a director; or
4-26 (6) during the term of office, fails to maintain the
4-27 qualifications required by law to serve as a director.
5-1 (b) Within 60 days after the board determines a relationship
5-2 or employment exists which constitutes a disqualification under
5-3 Subsection (a) of this section, it shall replace the person serving
5-4 as a member of the board with a person who would not be
5-5 disqualified.
5-6 (c) Any person who wilfully occupies an office as a member
5-7 of a board and exercises the powers and duties of that office when
5-8 disqualified under the provisions of Subsection (a) of this section
5-9 is guilty of a misdemeanor and, on conviction, shall be fined not
5-10 less than $100 nor more than $1,000.
5-11 (d) As used in this section, "developer of property in the
5-12 district" means any person who owns land located within a district
5-13 covered under this section and who has divided or proposes to
5-14 divide the land into two or more parts for the purpose of laying
5-15 out any subdivision or any tract of land or any addition to any
5-16 town or city, or for laying out suburban lots or building lots, or
5-17 any lots, and streets, alleys, or parks or other portions intended
5-18 for public use, or the use of purchasers or owners of lots fronting
5-19 thereon or adjacent thereto.
5-20 (e) Any rights obtained by any third party through official
5-21 action of a board covered by this section are not impaired or
5-22 affected by the disqualification under this section of any member
5-23 of the board to serve, provided that the third party had no
5-24 knowledge at the time the rights were obtained of the fact that the
5-25 member of the board was disqualified to serve.
5-26 (f) This section shall not apply to districts defined in
5-27 Section 49.181(h)(3) or (4) or a district where the principal
6-1 function of the district is to provide irrigation water to
6-2 agricultural lands or to provide nonpotable water for any purpose.
6-3 (g) A board by unanimous vote of its remaining members may
6-4 remove a board member only if that board member has missed one-half
6-5 or more of the regular meetings scheduled during the prior 12
6-6 months. Any board member so removed may file a written appeal with
6-7 the commission within 30 days after receiving written notice of the
6-8 board action. The commission may reinstate a removed director if
6-9 the commission finds that the removal was unwarranted under the
6-10 circumstances, including the reasons for absences, the time and
6-11 place of the meetings missed, the business conducted at the
6-12 meetings missed and any other facts or circumstances the commission
6-13 may deem relevant.
6-14 Sec. 49.053. QUORUM. A majority of the membership of the
6-15 board constitutes a quorum for any meeting, and a concurrence of a
6-16 majority of the entire membership of the board is sufficient for
6-17 transacting any business of the district. This section does not
6-18 apply to districts defined in Section 49.181(h)(3) or (4).
6-19 Sec. 49.054. OFFICERS. (a) After a district is created and
6-20 the directors have qualified, the board shall meet, elect a
6-21 president, vice-president, secretary, and any other officers or
6-22 assistant officers as the board may deem necessary and begin the
6-23 discharge of its duties.
6-24 (b) After each directors election, the board shall meet and
6-25 elect officers.
6-26 (c) The president is the chief executive officer of the
6-27 district, presides at all meetings of the board, and shall execute
7-1 all documents on behalf of the district. The vice-president shall
7-2 act as president in case of the absence or disability of the
7-3 president. The secretary is responsible for seeing that all
7-4 records and books of the district are properly kept and shall
7-5 attest the president's signature on all documents.
7-6 (d) The board may appoint another director, the general
7-7 manager, or any employee as assistant or deputy secretary to assist
7-8 the secretary, and any such person shall be entitled to certify as
7-9 to the authenticity of any record of the district, including but
7-10 not limited to all proceedings relating to bonds, contracts, or
7-11 indebtedness of the district.
7-12 (e) After any election or appointment of a director, a
7-13 district shall notify the executive director within 30 days after
7-14 the date of the election or appointment of the name and mailing
7-15 address of the director chosen and the date that director's term of
7-16 office expires. The executive director shall provide forms to the
7-17 district for such purpose.
7-18 (f) This section does not apply to any districts defined in
7-19 Section 49.181(h)(3) or (4).
7-20 Sec. 49.055. SWORN STATEMENT, BOND AND OATH OF OFFICE. (a)
7-21 As soon as practicable after a director is elected or appointed,
7-22 that director shall make the sworn statement prescribed by the
7-23 constitution for public office.
7-24 (b) As soon as practicable after a director has made the
7-25 sworn statement, and before beginning to perform the duties of
7-26 office, that director shall take the oath of office prescribed by
7-27 the constitution for public officers.
8-1 (c) Before beginning to perform the duties of office, each
8-2 director shall execute a bond for $10,000 payable to the district
8-3 and conditioned on the faithful performance of that director's
8-4 duties. All bonds of the directors shall be approved by the board
8-5 and paid for by the district.
8-6 (d) The sworn statement, bond, and oath shall be filed with
8-7 the district and retained in its records. A duplicate original of
8-8 the sworn statement and the oath shall also be filed with the
8-9 secretary of state within 10 days after their execution and need
8-10 not be filed before the new director begins to perform the duties
8-11 of office.
8-12 (e) This section does not apply to any district defined in
8-13 Section 49.181(h)(3) or (4).
8-14 Sec. 49.056. GENERAL MANAGER. (a) The board may employ or
8-15 contract with a person to perform such services as general manager
8-16 for the district as the board may from time to time specify. The
8-17 board may delegate to the general manager full authority to manage
8-18 and operate the affairs of the district subject only to orders of
8-19 the board.
8-20 (b) The board may delegate to the general manager the
8-21 authority to employ all persons necessary for the proper handling
8-22 of the business and operation of the district and to determine the
8-23 compensation to be paid all employees other than the general
8-24 manager.
8-25 (c) Except as provided by Section 49.052, a director may be
8-26 employed as general manager of the district, but the compensation
8-27 of a general manager who also serves as a director shall be
9-1 established by the other directors.
9-2 Sec. 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
9-3 be responsible for the management of all the affairs of the
9-4 district. The district shall employ or contract with all persons,
9-5 firms, partnerships, corporations, or other entities, public or
9-6 private, deemed necessary by the board for the conduct of the
9-7 affairs of the district, including, but not limited to, engineers,
9-8 attorneys, financial advisors, operators, bookkeepers, tax
9-9 assessors and collectors, auditors, and administrative staff.
9-10 (b) The board shall adopt an annual budget, including a
9-11 compensation schedule for employees establishing beginning and
9-12 maximum salaries for each position classification. All district
9-13 employees are employed at the will of the district unless the
9-14 district and employee execute a written employment contract.
9-15 (c) The board shall set the compensation and terms for
9-16 consultants.
9-17 (d) In selecting attorneys, engineers, auditors, financial
9-18 advisors, or other professional consultants, the district shall
9-19 follow the procedures provided in Section 3A of the Professional
9-20 Services Procurement Act (Article 664-4, Vernon's Texas Civil
9-21 Statutes) and shall comply with all the provisions of that Act.
9-22 (e) The board shall require an officer, employee, or
9-23 consultant who collects, pays, or handles any funds of the district
9-24 to furnish good and sufficient bond, payable to the district, in an
9-25 amount determined by the board to be sufficient to safeguard the
9-26 district. The bond shall be conditioned on the faithful
9-27 performance of that person's duties and on accounting for all funds
10-1 and property of the district. Such bond shall be signed or
10-2 endorsed by a surety company authorized to do business in the
10-3 state.
10-4 (f) The board may pay the premium on surety bonds required
10-5 of officials, employees, or consultants of the district out of any
10-6 available funds of the district, including proceeds from the sale
10-7 of bonds.
10-8 (g) The board may adopt bylaws to govern the affairs of the
10-9 district to perform its purposes. The board may, by resolution,
10-10 authorize its general manager or other employee to execute
10-11 documents on behalf of the district.
10-12 (h) The board shall also have the right to purchase all
10-13 materials, supplies, equipment, vehicles, and machinery needed by
10-14 the district to perform its purposes.
10-15 Sec. 49.058. CONFLICTS OF INTEREST. A director of a
10-16 district is subject to the provisions of Chapter 171, Local
10-17 Government Code, relating to the regulation of conflicts of
10-18 officers of local governments.
10-19 Sec. 49.059. DISQUALIFICATION OF TAX ASSESSOR AND COLLECTOR.
10-20 (a) No person may serve as tax assessor and collector of a
10-21 district providing potable water or sewer services to household
10-22 users if that person:
10-23 (1) is related within the third degree of affinity or
10-24 consanguinity to any developer of property in the district, a
10-25 member of the board, or the manager, engineer, or attorney for the
10-26 district;
10-27 (2) is or was within two years immediately preceding
11-1 the assumption of their assessment and collection duties with the
11-2 district an employee of any developer of property in the district,
11-3 or any director, manager, engineer, or attorney for the district;
11-4 (3) owns an interest in or is employed by any
11-5 corporation organized for the purpose of tax assessment and
11-6 collection services, a substantial portion of the stock of which is
11-7 owned by a developer of property within the district or any
11-8 director, manager, engineer, or attorney for the district; or
11-9 (4) is directly or through a corporation developing
11-10 land in the district or is a director, engineer, or attorney for
11-11 the district.
11-12 (b) Within 60 days after the board determines a relationship
11-13 or employment exists which constitutes a disqualification under
11-14 Subsection (a), it shall replace the person serving as tax assessor
11-15 and collector with a person who would not be disqualified.
11-16 (c) Any person who wilfully violates the provisions of
11-17 Subsection (a) is guilty of a misdemeanor and on conviction shall
11-18 be fined not less than $100 nor more than $1,000.
11-19 (d) As used in this section, "developer of property in the
11-20 district" means any person who owns land located within a district
11-21 covered under this section and who has divided or proposes to
11-22 divide the land into two or more parts for the purpose of laying
11-23 out any subdivision or any tract of land or any addition to any
11-24 town or city, or for laying out suburban lots or building lots, or
11-25 any lots, streets, alleys, or parks or other portions intended for
11-26 public use, or the use of purchasers or owners of lots fronting
11-27 thereon or adjacent thereto.
12-1 Sec. 49.060. FEES OF OFFICE. (a) A director is entitled to
12-2 receive fees of office of not more than $100 a day for each day the
12-3 director actually spends performing the duties of a director, but
12-4 the fees of office may not exceed $6,000 per annum.
12-5 (b) Each director is also entitled to receive reimbursement
12-6 of actual expenses reasonably and necessarily incurred while
12-7 engaging in activities on behalf of the district.
12-8 (c) In order to receive fees of office and to receive
12-9 reimbursement for expenses, each director shall file with the
12-10 district a verified statement showing the number of days actually
12-11 spent in the service of the district and a general description of
12-12 the duties performed for each day of service.
12-13 (d) Section 49.002 notwithstanding, in all areas of conflict
12-14 the provisions of this section shall take precedence over all prior
12-15 statutory enactments. If the enactment of this section results in
12-16 an increase in the fees of office for any district, that district's
12-17 fees of office shall not increase unless the board adopts a
12-18 resolution authorizing payment of the higher fees.
12-19 Sec. 49.061. SEAL. The directors shall adopt a seal for the
12-20 district.
12-21 Sec. 49.062. OFFICES AND MEETING PLACES. (a) The board
12-22 shall designate from time to time and maintain one or more regular
12-23 offices for conducting the business of the district and maintaining
12-24 the records of the district. Such offices may be located either
12-25 inside or outside the district's boundaries as determined in the
12-26 discretion of the board.
12-27 (b) The board shall designate one or more places inside or
13-1 outside the district for conducting the meetings of the board. The
13-2 meeting place may be a private residence or office, provided that
13-3 the board, in its order establishing the meeting place, declares
13-4 the same to be a public place and invites the public to attend any
13-5 meeting of the board. If the board establishes a meeting place or
13-6 places outside the district, it shall give notice of the location
13-7 or locations by filing a true copy of the resolution establishing
13-8 the location or locations of the meeting place or places with the
13-9 commission and also by publishing notice of the location or
13-10 locations in a newspaper of general circulation in the district.
13-11 If the location of any of the meeting places outside the district
13-12 is changed, notice of the change shall be given in the same manner.
13-13 (c) After at least 25 qualified electors are residing in a
13-14 district, on written request of at least five of those electors,
13-15 the board shall designate a meeting place and hold meetings within
13-16 the district if it determines that the meeting place used by the
13-17 district deprives the residents of a reasonable opportunity to
13-18 attend district meetings. On the failure to designate the location
13-19 of the meeting place within the district, five electors may
13-20 petition the commission to designate a location. If it determines
13-21 that the meeting place used by the district deprives the residents
13-22 of a reasonable opportunity to attend district meetings, the
13-23 commission may designate a meeting place inside or outside the
13-24 district which is reasonably available for the public and require
13-25 that the meetings be held at such place. After the next election,
13-26 the board may designate different meeting places, including one
13-27 located outside the boundaries of the district.
14-1 (d) Two or more districts may designate and share offices
14-2 and meeting places. This section does not apply to districts
14-3 defined in Section 49.181(h)(3) or (4).
14-4 Sec. 49.063. NOTICE OF MEETINGS. Notice of meetings of the
14-5 board shall be given as set forth in the open meetings act, Chapter
14-6 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
14-7 6252-17, Vernon's Texas Civil Statutes), except that if a district
14-8 does not have a meeting place within the district, the district
14-9 shall post notice of its meeting at a public place within the
14-10 district specified by the board in a written resolution, rather
14-11 than at its administrative office. The board shall specify such
14-12 public place to be a bulletin board or other place within the
14-13 district which is reasonably available to the public. Neither
14-14 failure to provide notice of a regular meeting nor an insubstantial
14-15 defect in notice of any meeting shall affect the validity of any
14-16 action taken at the meeting.
14-17 Sec. 49.064. MEETINGS. The board shall hold such regular
14-18 and special meetings as may be necessary for the proper conduct of
14-19 the district's business. All meetings shall be conducted in
14-20 accordance with the open meetings act, Chapter 271, Acts of the
14-21 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
14-22 Texas Civil Statutes). A meeting of a committee of the board, or a
14-23 committee composed of representatives of more than one board, where
14-24 less than a quorum of any board is present is not subject to the
14-25 provisions of the open meetings act, Chapter 271, Acts of the 60th
14-26 Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas
14-27 Civil Statutes).
15-1 Sec. 49.065. RECORDS. (a) The board shall keep a complete
15-2 account of all its meetings and proceedings and shall preserve its
15-3 minutes, contracts, records, notices, accounts, receipts, and other
15-4 records in a safe place.
15-5 (b) The records of each district are the property of the
15-6 district and are subject to the open records act, Chapter 424, Acts
15-7 of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
15-8 Vernon's Texas Civil Statutes).
15-9 (c) The preservation, microfilming, destruction, or other
15-10 disposition of the records of each district is subject to the
15-11 requirements of Chapter 201, Local Government Code, and rules
15-12 adopted thereunder.
15-13 Sec. 49.066. SUITS. (a) A district may sue and be sued in
15-14 the courts of this state in the name of the district by and through
15-15 its board. All courts shall take judicial notice of the creation
15-16 of the district and of its boundaries.
15-17 (b) Any court in the state rendering judgment for debt
15-18 against a district may order the board to levy, assess, and collect
15-19 taxes or assessments to pay the judgment.
15-20 (c) The president or the general manager of any district
15-21 shall be the agent of the district on whom process, notice, or
15-22 demand required or permitted by law to be served upon the district
15-23 may be served.
15-24 (d) Except as provided in Subsection (e) of this section, no
15-25 suit may be instituted in any court of this state contesting:
15-26 (1) the validity of the creation and boundaries of a
15-27 district created under this code;
16-1 (2) any bonds or other obligations created under this
16-2 code; or
16-3 (3) the validity or the authorization of a contract
16-4 with the United States by the district.
16-5 (e) The matters listed in Subsection (d) of this section may
16-6 be judicially inquired into at any time and determined in any suit
16-7 brought by the State of Texas through the attorney general. The
16-8 action shall be brought on good cause shown, except where otherwise
16-9 provided by other provisions of this code or by the Texas
16-10 Constitution. It is specifically provided, however, that no such
16-11 proceeding shall affect the validity of or security for any bonds
16-12 or other obligations theretofore issued by a district if such bonds
16-13 or other obligations have been approved by the attorney general as
16-14 provided by Section 49.184.
16-15 (f) A district or water supply corporation shall not be
16-16 required to give bond for appeal, injunction, or costs in any suit
16-17 to which it is a party and shall not be required to deposit more
16-18 than the amount of any award in any eminent domain proceeding.
16-19 Sec. 49.067. CONTRACTS. A district shall contract, and be
16-20 contracted with, in the name of the district.
16-21 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. The
16-22 provisions of this chapter pertaining to bids and the Local
16-23 Government Code notwithstanding, a district may purchase property
16-24 from any governmental entity by negotiated contract without the
16-25 necessity of securing appraisals or advertising for bids.
16-26 Sec. 49.069. EMPLOYEE BENEFITS. (a) The board may provide
16-27 for and administer a retirement, disability, and death compensation
17-1 fund for the employees of the district and may adopt a plan or
17-2 plans to effectuate the purpose of this section, including the
17-3 forms of insurance and annuities which are considered advisable by
17-4 the board. The board, after notice to the employees and a hearing,
17-5 may change any plan, rule, or regulation.
17-6 (b) All money provided from the compensation of the
17-7 employees participating in the fund and plan authorized by this
17-8 section and by the district for the retirement, disability, and
17-9 death compensation fund, after the money has been received by the
17-10 district, shall be invested as the board from time to time
17-11 considers advisable. The money may be invested in the following
17-12 manner:
17-13 (1) in bonds of the United States, the State of Texas,
17-14 any county, city, or other political subdivision of this state, or
17-15 in bonds issued by any agency of the United States, the payment of
17-16 the principal of and interest on which is guaranteed by the United
17-17 States; and
17-18 (2) in life insurance policies, endowment or annuity
17-19 contracts, or interest-bearing certificates of legal reserve life
17-20 insurance companies authorized to write the contracts in the State
17-21 of Texas.
17-22 (c) A sufficient amount of the money shall be kept on hand
17-23 to meet the immediate payment of amounts likely to become due each
17-24 year out of the fund as determined by the board.
17-25 (d) The recipients or beneficiaries from the fund shall not
17-26 be eligible for any other pension, retirement fund, or direct aid
17-27 from the State of Texas, unless the fund created under this chapter
18-1 is released to the State of Texas as a condition precedent to
18-2 receiving the other pension, aid, or joining of any other system.
18-3 (e) The board may include hospitalization and medical
18-4 benefits to its employees as part of the compensation currently
18-5 paid to the officers and employees and may adopt any plan, rule, or
18-6 regulation in connection with it and amend or change the plan,
18-7 rule, or regulation as it may determine.
18-8 (f) This section shall not apply to any river authority as
18-9 that term is defined in Section 30.003(4).
18-10 Sec. 49.070. WORKERS' COMPENSATION. The board may become a
18-11 subscriber under the Texas Workers' Compensation Act (Article
18-12 8308-1.01 et seq., Vernon's Texas Civil Statutes) with any
18-13 insurance company authorized to write the policies in the State of
18-14 Texas.
18-15 Sec. 49.071. DISTRICT NAME CHANGE. (a) On petition by a
18-16 district showing reasonable grounds for a name change, the
18-17 commission by order may change the name of the district to the name
18-18 requested by the district. The new name must be generally
18-19 descriptive of the location of the district followed by the type of
18-20 district as provided by the title of the chapter of the Water Code
18-21 governing the district. If a district is located wholly within one
18-22 county that contains more than one district of that type, the
18-23 district may be differentiated, if necessary, by adding to the new
18-24 name the proper consecutive number. The new name may not be the
18-25 same as the name of any other district in the county.
18-26 (b) A name change takes effect on the date of issuance of
18-27 the commission order making the name change.
19-1 (c) Not later than the 30th day after the date of issuance
19-2 of the commission order making the name change, the district shall
19-3 publish notice of the name change in a newspaper or newspapers of
19-4 general circulation in the county or counties in which the district
19-5 is located. Within that same period, the district shall also give
19-6 notice of the name change by first-class mail to its residents and
19-7 to owners of real property in the district, as determined from the
19-8 most recent certified property tax rolls of the appraisal district
19-9 in which the district is located, and, to the extent practicable,
19-10 to the holders of bonds, obligations, and other indebtedness of the
19-11 district. Failure of the district to comply with this subsection
19-12 does not affect the validity of the name change.
19-13 (d) A change in the name of a district does not affect
19-14 bonds, obligations, or other indebtedness of the district existing
19-15 before the name change occurred.
19-16 (Sections 49.072-49.100 reserved for expansion
19-17 SUBCHAPTER D. ELECTION PROVISIONS
19-18 Sec. 49.101. GENERAL. All elections shall be generally
19-19 conducted in accordance with the Election Code except as otherwise
19-20 provided for by this code. Write-in candidacies for any district
19-21 office shall be governed by Subchapter C, Chapter 146, Election
19-22 Code.
19-23 Sec. 49.102. CONFIRMATION AND DIRECTOR ELECTION.
19-24 (a) Before issuing any bonds or other obligations, an election
19-25 shall be held within the boundaries of the proposed district to
19-26 determine if the proposed district shall be established and, if the
19-27 directors of the district are required by law to be elected, to
20-1 elect permanent directors.
20-2 (b) Notice of a confirmation or director election shall
20-3 state the day and place or places for holding the election, the
20-4 propositions to be voted on, or the number of directors to be voted
20-5 on.
20-6 (c) The ballots for a confirmation election shall be printed
20-7 to provide for voting "For District" and "Against District."
20-8 Ballots for a directors election shall provide the names of the
20-9 persons appointed by the governing body who qualified and are
20-10 serving as temporary directors at the time the election is called.
20-11 The ballots shall also have blank places after the names of the
20-12 temporary directors in which a voter may write the names of other
20-13 persons for directors.
20-14 (d) Immediately after the confirmation and director
20-15 election, the presiding judge shall take returns of the results to
20-16 the temporary board. The temporary board shall canvass the returns
20-17 and declare the results at the earliest practicable time.
20-18 (e) If a majority of the votes cast in the election favor
20-19 the creation of the district, then the temporary board shall
20-20 declare that the district is created and enter the result in its
20-21 minutes. If a majority of the votes cast in the election are
20-22 against the creation of the district, the temporary board shall
20-23 declare that the district was defeated and enter the result in its
20-24 minutes. A copy of the order shall be filed with the commission.
20-25 (f) The order canvassing the results of the confirmation
20-26 election shall contain a description of the district's boundaries
20-27 and shall be filed with the executive director and in the deed
21-1 records of the county or counties in which the district is located.
21-2 (g) The temporary board shall also declare the persons
21-3 receiving the highest number of votes for directors to have been
21-4 elected as permanent directors.
21-5 (h) Unless otherwise agreed, the two directors elected who
21-6 received the fewest number of votes shall serve until the next
21-7 directors election following the confirmation election and the
21-8 three who received the highest number of votes shall serve until
21-9 the second succeeding directors election after the confirmation
21-10 election. If the number of directors is less or more than five, a
21-11 simple majority shall serve until the second succeeding directors
21-12 election and the remaining directors shall serve until the next
21-13 directors election. In the event of a tie, the directors shall
21-14 agree upon the initial terms of office or decide the initial terms
21-15 of office by lot.
21-16 Sec. 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
21-17 provided by Section 49.102 of this chapter, the members of the
21-18 board of a district shall serve for four-year terms.
21-19 (b) An election shall be held on the uniform election date,
21-20 established by the Election Code, in either January or May of each
21-21 even-numbered year to elect the appropriate number of directors.
21-22 (c) The permanent directors may assign a position number to
21-23 each director's office, in which case directors shall thereafter be
21-24 elected by position and not at large.
21-25 (d) A district may provide for the election of all
21-26 directors, or a majority of directors, from single-member
21-27 districts, which shall be geographically described within the
22-1 boundaries of the district in a manner which is equitable for the
22-2 electors within such districts and within the district generally.
22-3 (e) Section 49.002 notwithstanding, in all areas of conflict
22-4 the provisions of Subsection (b) shall take precedence over all
22-5 prior statutory enactments.
22-6 Sec. 49.104. ALTERNATIVE ELECTION PROCEDURES. (a)
22-7 Notwithstanding the provisions and requirements of the Election
22-8 Code and general laws, any two or more districts situated in the
22-9 same county and in which substantially all of the land is being or
22-10 has been developed as part of a single community development plan
22-11 and which are served by common water supply and waste disposal
22-12 systems may by mutual agreement designate a common election office
22-13 and common early and regular polling places within one or more of
22-14 the districts, but outside the boundaries of one or more of the
22-15 districts, for the conduct of director election proceedings and
22-16 early and regular balloting in director elections. This
22-17 alternative election procedure may only be used if the common
22-18 election office and polling places so designated:
22-19 (1) are within buildings open to the public;
22-20 (2) are within the boundaries of at least one of the
22-21 districts;
22-22 (3) meet the requirements of the Election Code and
22-23 general laws as polling places; and
22-24 (4) are located not more than five miles from any
22-25 portion of the boundaries of any of the participating districts.
22-26 (b) Such districts may also agree upon and designate a
22-27 common election officer and common early and regular voting
23-1 officials for some or all of the director elections to be
23-2 simultaneously conducted at a common location, any of whom may be
23-3 nonelective employees of one or more of the districts, so long as
23-4 the early and regular voting officials are qualified voters within
23-5 at least one of the districts.
23-6 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
23-7 in this code, all vacancies on the board and in other offices shall
23-8 be filled for the unexpired term by appointment of the board.
23-9 (b) If the number of directors is reduced to fewer than a
23-10 majority, the vacancies shall be filled by appointment by the
23-11 commission or the county commissioners court if the district was
23-12 created by the county commissioners court. An appointed director
23-13 shall serve for the unexpired term of the director he or she is
23-14 replacing.
23-15 (c) In the event of a failure to elect one or more members
23-16 of the board of a district resulting from the absence of, or
23-17 failure to vote by, the qualified voters in the district, the
23-18 current members of the board holding the positions not filled at
23-19 such election shall be deemed to have been reelected and shall
23-20 serve an additional term of office.
23-21 Sec. 49.106. BOND ELECTIONS. (a) Before an election is
23-22 held to authorize the issuance of bonds, other than refunding
23-23 bonds, there shall be filed in the office of the district and open
23-24 to inspection by the public an engineer's report covering the land,
23-25 improvements, facilities, plants, equipment, and appliances to be
23-26 purchased or constructed and their estimated cost, together with
23-27 maps, plats, profiles, and data fully showing and explaining the
24-1 report.
24-2 (b) Notice of a bond election shall contain the proposition
24-3 or propositions to be voted upon, which includes the estimate of
24-4 the probable cost of design, construction, purchase and acquisition
24-5 of improvements and additions thereto, and incidental expenses
24-6 connected with such improvements and the issuance of bonds.
24-7 (c) A bond election may be held on the same day as any other
24-8 district election. The bond election may be called by a separate
24-9 election order or as a part of any other election order.
24-10 Sec. 49.107. OPERATION AND MAINTENANCE TAX. (a) A district
24-11 may levy and collect a tax for operation and maintenance purposes,
24-12 including funds for planning, constructing, acquiring, maintaining,
24-13 repairing, and operating all necessary land, plants, works,
24-14 facilities, improvements, appliances, and equipment of the district
24-15 and for paying costs of proper services, engineering and legal
24-16 fees, and organization and administrative expenses.
24-17 (b) An operation and maintenance tax may not be levied by a
24-18 district until it is approved by a majority of the electors voting
24-19 at an election held for that purpose. After such a tax has been
24-20 authorized by the district's voters, the board shall be authorized
24-21 to levy the tax and have it assessed and collected as other
24-22 district taxes.
24-23 (c) An operation and maintenance tax election may be held at
24-24 the same time and in conjunction with any other district election.
24-25 The election may be called by a separate election order or as part
24-26 of any other election order.
24-27 (d) The proposition in an operation and maintenance tax
25-1 election may be for a specific maximum rate or for an unlimited
25-2 rate.
25-3 (e) If a district has any surplus operation and maintenance
25-4 tax funds which are not needed for the purposes for which they were
25-5 collected, the funds may be used for any lawful purpose.
25-6 Sec. 49.108. CONTRACT ELECTIONS. (a) A contract may
25-7 provide that the district will make payment under the contract from
25-8 proceeds from the sale of notes or bonds, from taxes, or from any
25-9 other income of the district or any combination of these.
25-10 (b) A district may make payments under a contract from taxes
25-11 other than operation and maintenance taxes after the provisions of
25-12 the contract have been approved by a majority of the electors
25-13 voting at an election held for that purpose.
25-14 (c) A contract election may be held at the same time and in
25-15 conjunction with any other district election. The election may be
25-16 called by a separate election order or as part of any other
25-17 election order.
25-18 (d) A contract approved by the voters will constitute an
25-19 obligation against the taxing power of the district to the extent
25-20 provided in the contract.
25-21 (Sections 49.109-49.150 reserved for expansion
25-22 SUBCHAPTER E. FISCAL PROVISIONS
25-23 Sec. 49.151. EXPENDITURES. (a) Except as hereinafter
25-24 provided, a district's money may be disbursed only by check, draft,
25-25 order, or other instrument which shall be signed by at least a
25-26 majority of the directors.
25-27 (b) The board may by resolution allow the general manager,
26-1 treasurer, bookkeeper, or other employee of the district to sign
26-2 disbursements.
26-3 (c) The board may by resolution allow disbursements to be
26-4 transferred by federal reserve wire system to accounts in the name
26-5 of the district.
26-6 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
26-7 borrow money for any corporate purpose or combination of corporate
26-8 purposes only in compliance with the methods and procedures
26-9 specifically provided by this chapter or by general law.
26-10 Sec. 49.153. REVENUE NOTES. (a) The board, without the
26-11 necessity of an election, may borrow money on negotiable notes of
26-12 the district to be paid solely from the revenues derived from the
26-13 ownership of all or any designated part of the district's works,
26-14 plants, improvements, facilities, or equipment after deduction of
26-15 the reasonable cost of maintaining and operating the facilities.
26-16 (b) The notes may be first or subordinate lien notes within
26-17 the discretion of the board, but no obligation may ever be a charge
26-18 on the property of the district or on taxes levied or collected by
26-19 the district but shall be solely a charge on the revenues pledged
26-20 for the payment of the obligation. No part of the obligation may
26-21 ever be paid from taxes levied or collected by the district.
26-22 (c) A district may not execute a note for a term longer than
26-23 three years unless the commission issues an order approving the
26-24 note.
26-25 (d) This section does not apply to a district defined in
26-26 Section 49.181(h)(3) or (4).
26-27 Sec. 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
27-1 NOTES. (a) The board may declare an emergency in the matter of
27-2 funds not being available to pay principal of and interest on any
27-3 bonds of the district payable in whole or in part from taxes or to
27-4 meet any other needs of the district and may issue negotiable tax
27-5 anticipation notes or negotiable bond anticipation notes to borrow
27-6 the money needed by the district without advertising or giving
27-7 notice of the sale. Bond anticipation notes and tax anticipation
27-8 notes shall mature within one year of their date.
27-9 (b) Tax anticipation notes may be issued for any purpose for
27-10 which the district is authorized to levy taxes, and tax
27-11 anticipation notes shall be secured with the proceeds of taxes to
27-12 be levied by the district in the succeeding 12-month period. The
27-13 board may covenant with the purchasers of the notes that the board
27-14 will levy a sufficient tax to pay the principal of and interest on
27-15 the notes and pay the costs of collecting the taxes.
27-16 (c) Bond anticipation notes may be issued for any purpose
27-17 for which bonds of the district may have previously been voted or
27-18 may be issued for the purpose of refunding previously issued bond
27-19 anticipation notes. A district may covenant with the purchasers of
27-20 the bond anticipation notes that the district will use the proceeds
27-21 of sale of any bonds in the process of issuance for the purpose of
27-22 refunding the bond anticipation notes, in which case the board will
27-23 be required to use the proceeds received from sale of the bonds in
27-24 the process of issuance to pay principal, interest, or redemption
27-25 price on the bond anticipation notes.
27-26 (d) Districts required to seek commission approval of bonds
27-27 must have an application for such approval on file with the
28-1 commission prior to the issuance of bond anticipation notes.
28-2 Sec. 49.155. REPAYMENT OF EXPENSES. (a) The district may
28-3 pay all costs and expenses necessarily incurred in the organization
28-4 and operation of a district during creation and construction
28-5 periods including, but not limited to, the following:
28-6 (1) organizational, administrative, and operating
28-7 expenses;
28-8 (2) the cost of investigation and making plans;
28-9 (3) the cost of the engineer's report;
28-10 (4) legal fees; and
28-11 (5) any other incidental expenses.
28-12 (b) For purposes of this section, construction periods shall
28-13 mean any periods during which the district is constructing its
28-14 facilities or there is construction by third parties of above
28-15 ground improvements within the district, but in no event longer
28-16 than five years.
28-17 (c) The district may reimburse any person for money advanced
28-18 for the purposes in Subsection (a) and may be charged interest on
28-19 such funds.
28-20 (d) These payments may be made from money obtained from the
28-21 issuance of notes or the sale of bonds issued by the district or
28-22 out of maintenance taxes or other revenues of the district.
28-23 Sec. 49.156. DEPOSITORY. (a) The board, by order or
28-24 resolution, shall designate one or more banks or savings
28-25 associations within the state to serve as the depository for the
28-26 funds of the district. The board shall not be required to
28-27 advertise or solicit bids in selecting its depositories.
29-1 (b) To the extent that funds in the depository banks or
29-2 savings associations are not insured by the Federal Deposit
29-3 Insurance Corporation, they shall be secured in the manner provided
29-4 by law for the security of funds by the Public Funds Collateral
29-5 Act, (Article 2529d, Vernon's Texas Civil Statutes).
29-6 (c) The board may authorize a designated representative to
29-7 supervise the substitution of securities pledged to secure the
29-8 district's funds.
29-9 Sec. 49.157. INVESTMENTS. (a) All district deposits and
29-10 investments shall be governed by the Public Funds Investment Act of
29-11 1987 (Article 842a-2, Vernon's Texas Civil Statutes).
29-12 (b) The board may provide that an authorized representative
29-13 of the district may invest and reinvest the funds of the district
29-14 and provide for money to be withdrawn from the appropriate accounts
29-15 of the district for the investments on such terms as the board
29-16 considers advisable.
29-17 Sec. 49.158. FISCAL YEAR. Within 30 days after a district
29-18 becomes financially active, the board shall adopt a fiscal year by
29-19 a formal board resolution. The district shall notify the executive
29-20 director of the adopted fiscal year within 30 days after adoption.
29-21 The district may change its fiscal year at any time; provided,
29-22 however, it may not be changed more than once in any 24 month
29-23 period. After any change in the district's fiscal year, the
29-24 district shall notify the executive director of the changed fiscal
29-25 year within 30 days after adoption.
29-26 (Sections 49.159-49.180 reserved for expansion
29-27 SUBCHAPTER F. ISSUANCE OF BONDS
30-1 Sec. 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
30-2 DISTRICT BONDS. (a) A district may not issue bonds unless the
30-3 commission determines that the project to be financed by the bonds
30-4 is feasible and issues an order approving the issuance of the
30-5 bonds. This section does not apply to refunding bonds.
30-6 (b) A district may submit to the commission a written
30-7 application for investigation of feasibility. An engineer's report
30-8 describing the project, including the data, profiles, maps, plans,
30-9 and specifications prepared in connection with the report, must be
30-10 submitted with the application.
30-11 (c) The executive director shall examine the application and
30-12 the report and shall inspect the project area. The district shall,
30-13 on request, supply the executive director with additional data and
30-14 information necessary for an investigation of the application, the
30-15 engineer's report, and the project.
30-16 (d) The executive director shall prepare a written report on
30-17 the project and include suggestions, if any, for changes or
30-18 improvements in the project. The executive director shall retain a
30-19 copy of the report and send a copy of the report to both the
30-20 commission and the district.
30-21 (e) The commission shall consider the application, the
30-22 engineer's report, the executive director's report, and any other
30-23 evidence allowed by commission rule to be considered in determining
30-24 the feasibility of the project.
30-25 (f) The commission shall determine whether the project to be
30-26 financed by the bonds is feasible and issue an order either
30-27 approving or disapproving, as appropriate, the issuance of the
31-1 bonds. The commission shall retain a copy of the order and send a
31-2 copy of the order to the district.
31-3 (g) Notwithstanding any provision of this code to the
31-4 contrary, the commission may approve the issuance of bonds of a
31-5 district without the submission of plans and specifications of the
31-6 improvements to be financed with the bonds. The commission may
31-7 condition the approval on any terms or conditions considered
31-8 appropriate by the commission.
31-9 (h) This section does not apply to a district if:
31-10 (1) the district's boundaries include one entire
31-11 county;
31-12 (2) the district was created by a special Act of the
31-13 legislature and:
31-14 (i) the district is located entirely within one
31-15 county;
31-16 (ii) entirely within one or more home-rule
31-17 municipalities;
31-18 (iii) the total taxable value of the real
31-19 property and improvements to the real property zoned by the one or
31-20 more home-rule municipalities for residential purposes and located
31-21 within the district does not exceed 25 percent of the total taxable
31-22 value of all taxable property in the district, as shown by the most
31-23 recent certified appraisal tax roll prepared by the appraisal
31-24 district for the county; and
31-25 (iv) the district was not required by law to
31-26 obtain commission approval of its bonds before the effective date
31-27 of this section;
32-1 (3) the district is a river authority as defined in
32-2 Section 30.003(4); or
32-3 (4) the district was created by a special Act of the
32-4 legislature and:
32-5 (i) is a provider of service to two or more
32-6 municipalities; and
32-7 (ii) is governed by a board of directors
32-8 appointed or designated in whole or in part by the governor, the
32-9 Texas Water Development Board, or municipalities within its service
32-10 area.
32-11 Sec. 49.182. COMMISSION SUPERVISION OF PROJECTS AND
32-12 IMPROVEMENTS. (a) During construction of projects and
32-13 improvements approved by the commission under this subchapter, no
32-14 substantial alterations may be made in the plans and specifications
32-15 without the approval of the commission in accordance with
32-16 commission rules.
32-17 (b) The executive director may inspect the improvements at
32-18 any time during construction to determine if the project is being
32-19 constructed in accordance with the plans and specifications
32-20 approved by the commission.
32-21 (c) If the executive director finds that the project is not
32-22 being constructed in accordance with the approved plans and
32-23 specifications, the executive director shall give written notice
32-24 immediately by certified mail to the district's manager and to each
32-25 board member.
32-26 (d) If within 10 days after the notice is mailed the board
32-27 does not take steps to ensure that the project is being constructed
33-1 in accordance with the approved plans and specifications, the
33-2 executive director shall give written notice of this fact to the
33-3 attorney general.
33-4 (e) After receiving this notice, the attorney general may
33-5 bring an action for injunctive relief or quo warranto proceedings
33-6 against the directors. Venue for either suit is exclusively in a
33-7 district court in Travis County.
33-8 Sec. 49.183. BOND SALES. (a) Except for refunding bonds,
33-9 or bonds sold to a state or federal agency, bonds issued by a
33-10 district shall be sold after advertising for and receiving
33-11 competitive sealed bids and shall be awarded to the bidder whose
33-12 bid produces the lowest net effective interest rate to the
33-13 district.
33-14 (b) Except for refunding bonds, bonds sold to a state or
33-15 federal agency, after any bonds are finally approved and before
33-16 they are sold by a district, the board shall publish an appropriate
33-17 notice of the sale:
33-18 (1) at least one time not less than 10 days before the
33-19 date of sale in a newspaper of general circulation in the county or
33-20 counties in which the district is located; and
33-21 (2) at least one time in one or more recognized
33-22 financial publications of general circulation in the state as
33-23 approved by the state attorney general.
33-24 (c) If the district is issuing bonds and refunding bonds as
33-25 one issue and if the initial principal amount of refunding bonds is
33-26 50 percent or more of the total initial principal amount of bonds
33-27 being issued, for the purposes of this section, the issue shall be
34-1 considered to be refunding bonds and competitive bids shall not be
34-2 required.
34-3 (d) A district's bonds are negotiable instruments within the
34-4 meaning and purposes of the Business & Commerce Code. A district's
34-5 bonds may be issued and bear interest in accordance with Chapter
34-6 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
34-7 717k, Vernon's Texas Civil Statutes); Chapter 3, Acts of the 61st
34-8 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
34-9 Civil Statutes); the Bond Procedures Act of 1981 (Article 717k-6,
34-10 Vernon's Texas Civil Statutes); and Chapter 656, Acts of the 68th
34-11 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
34-12 Civil Statutes). Except for this subsection, this section does not
34-13 apply to districts that are defined in Section 49.181(h)(3) or (4).
34-14 (e) This section does not apply to district bonds issued
34-15 pursuant to Chapter 656, Acts of the 68th Legislature, Regular
34-16 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
34-17 Sec. 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
34-18 REGISTRATION OF BONDS. (a) Before bonds issued by a district are
34-19 delivered to the purchasers, a certified copy of all proceedings
34-20 relating to organization of the district for first bond issues and
34-21 issuance of the bonds and other relevant information shall be sent
34-22 to the attorney general.
34-23 (b) The attorney general shall carefully examine the bonds,
34-24 with regard to the record and the constitution and laws of this
34-25 state governing the issuance of bonds, and the attorney general
34-26 shall officially approve and certify the bonds if he or she finds
34-27 that they conform to the record and the constitution and laws of
35-1 this state and are valid and binding obligations of the district.
35-2 (c) After the attorney general approves and certifies the
35-3 bonds, the comptroller shall register them in a book kept for that
35-4 purpose and shall record the certificate of the attorney general.
35-5 (d) After the approval and registration of the bonds by the
35-6 comptroller, they shall be incontestable in any court or other
35-7 forum, for any reason, and shall be valid and binding obligations
35-8 in accordance with their terms for all purposes.
35-9 (e) A contract or lease may be submitted to the attorney
35-10 general along with the bond records, and, if submitted, the
35-11 approval by the attorney general of the bonds shall constitute an
35-12 approval of the contract or lease and the contract or lease shall
35-13 be incontestable.
35-14 Sec. 49.185. EXEMPTIONS. This subchapter shall not apply to
35-15 districts engaged in the distribution and sale of electric energy
35-16 to the public.
35-17 (Sections 49.186-49.190 reserved for expansion
35-18 SUBCHAPTER G. AUDIT OF DISTRICTS
35-19 Sec. 49.191. DUTY TO AUDIT. (a) The board shall have the
35-20 district's fiscal accounts and records audited annually at the
35-21 expense of the district.
35-22 (b) In all areas of conflict, the provisions of this
35-23 subchapter shall take precedence over all prior statutory
35-24 enactments.
35-25 (c) The person who performs the audit shall be a certified
35-26 public accountant or public accountant holding a permit from the
35-27 Texas State Board of Public Accountancy.
36-1 (d) The audit required by this section shall be completed
36-2 within 120 days after the close of the district's fiscal year.
36-3 Sec. 49.192. FORM OF AUDIT. The executive director shall
36-4 adopt an accounting and auditing manuals and, except as otherwise
36-5 provided by the manuals, the district audit shall be performed
36-6 according to the generally accepted auditing standards adopted by
36-7 the American Institute of Certified Public Accountants. Financial
36-8 statements shall be prepared in accordance with generally accepted
36-9 accounting principles as adopted by the American Institute of
36-10 Certified Public Accountants.
36-11 Sec. 49.193. FINANCIAL REPORTS. The district's depository,
36-12 the district's treasurer, and the district's bookkeeper, if any,
36-13 who receives or has control over any district funds shall keep a
36-14 full and itemized account of district funds in its, his, or her
36-15 possession. Such itemized accounts and records shall be available
36-16 for audit.
36-17 Sec. 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
36-18 REPORTS. (a) After the board has approved the audit, it shall
36-19 submit a copy of the report to the executive director for filing
36-20 within 135 days after the close of the district's fiscal year.
36-21 (b) If the board refuses to approve the annual audit report,
36-22 the board shall submit a copy of the report to the executive
36-23 director for filing within 135 days after the close of the
36-24 district's fiscal year, accompanied by a statement from the board
36-25 explaining the reasons for its failure to approve the report.
36-26 (c) Copies of the audit, the annual financial dormancy
36-27 affidavit, or annual financial report described in Sections 49.197
37-1 and 49.198 of this subchapter shall be filed annually in the office
37-2 of the district.
37-3 (d) Each district shall file with the executive director an
37-4 annual filing affidavit in a format prescribed by the executive
37-5 director, executed by a duly authorized representative of the
37-6 board, stating that all copies of the annual audit report, annual
37-7 financial dormancy affidavit, or annual financial report have been
37-8 filed under this section.
37-9 (e) The annual filing affidavit shall be submitted with the
37-10 applicable annual document when it is submitted to the executive
37-11 director for filing as prescribed by this subchapter.
37-12 (f) The executive director shall file with the attorney
37-13 general the names of any districts that do not comply with the
37-14 provisions of this subchapter.
37-15 Sec. 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
37-16 executive director may review the audit report of each district.
37-17 (b) The commission may request that the state auditor assist
37-18 in the establishment of standards and procedures for review of
37-19 district audits by the executive director.
37-20 (c) If the executive director has any objections or
37-21 determines any violations of generally accepted auditing standards
37-22 or accounting principles, statutes, or board rules, or if the
37-23 executive director has any recommendations, he or she shall notify
37-24 the board and the district's auditor.
37-25 (d) Before the audit report may be accepted by the executive
37-26 director as being in compliance with the provisions of this
37-27 subchapter, the board and the auditor shall remedy objections and
38-1 correct violations of which they have been notified by the
38-2 executive director.
38-3 (e) If the audit report indicates that any penal law has
38-4 been violated, the executive director shall notify the appropriate
38-5 county or district attorney and the attorney general.
38-6 Sec. 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT RECORDS.
38-7 (a) The executive director shall have access to all vouchers,
38-8 receipts, district fiscal and financial records, and other district
38-9 records which the executive director considers necessary.
38-10 (b) All district fiscal records shall be prepared on a
38-11 timely basis and maintained in an orderly manner in accordance with
38-12 generally accepted accounting principles. The fiscal records shall
38-13 be available for public inspection during regular business hours.
38-14 A district's fiscal records may be removed from the district's
38-15 office for the purposes of recording its fiscal affairs and
38-16 preparing an audit, during which time the fiscal records are under
38-17 the control of the district's auditor.
38-18 Sec. 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
38-19 financially dormant district is a district that had:
38-20 (1) $500 or less of receipts from operations, tax
38-21 assessments, loans, contributions, or any other sources during the
38-22 calendar year;
38-23 (2) $500 or less of disbursements of funds during the
38-24 calendar year;
38-25 (3) no bonds or other long-term (more than one year)
38-26 liabilities outstanding during the calendar year; and
38-27 (4) no cash or investments that exceeded $5,000 at any
39-1 time during the calendar year.
39-2 (b) A financially dormant district may elect to submit to
39-3 the executive director a financial dormancy affidavit instead of
39-4 complying with the audit requirements of Section 49.191 of this
39-5 code.
39-6 (c) The annual financial dormancy affidavit shall be
39-7 prepared in a format prescribed by the executive director and shall
39-8 be submitted for filing by a duly authorized representative of the
39-9 district.
39-10 (d) The affidavit must be filed annually on or before
39-11 January 31 with the executive director until such time as the
39-12 district becomes financially active and the board adopts a fiscal
39-13 year; thereafter, the district shall file annual audit reports as
39-14 prescribed by this subchapter.
39-15 (e) A district that becomes financially dormant after having
39-16 been financially active shall be required to file annual financial
39-17 dormancy affidavits on or before January 31, until such time the
39-18 district is either dissolved or again becomes financially active.
39-19 (f) Districts governed by this section are subject to
39-20 periodic audits by the executive director.
39-21 Sec. 49.198. AUDIT REPORT EXEMPTION. (a) A district that
39-22 is not collecting taxes may elect to file annual financial reports
39-23 with the executive director in lieu of the district's compliance
39-24 with Section 49.191 provided:
39-25 (1) the district had no bonds or other long-term (more
39-26 than one year) liabilities outstanding during the fiscal period;
39-27 (2) the district did not have gross receipts from
40-1 operations, loans, or contributions in excess of $100,000 during
40-2 the fiscal period; and
40-3 (3) the district's cash and temporary investments were
40-4 not in excess of $100,000 at any time during the fiscal period.
40-5 (b) The annual financial report must be accompanied by an
40-6 affidavit attesting to the accuracy and authenticity of the
40-7 financial report signed by a duly authorized representative of the
40-8 district.
40-9 (c) The annual financial report and affidavit in a format
40-10 prescribed by the executive director must be on file with the
40-11 executive director within 45 days after the close of the district's
40-12 fiscal year.
40-13 (d) Districts governed by this section are subject to
40-14 periodic audits by the executive director.
40-15 Sec. 49.199. POLICIES AND AUDITS OF DISTRICTS. (a) Subject
40-16 to the law governing the district, the board shall adopt the
40-17 following in writing:
40-18 (1) a code of ethics for district directors, officers,
40-19 employees, and persons who are engaged in handling investments for
40-20 the district;
40-21 (2) a policy relating to travel expenditures;
40-22 (3) a policy relating to district investments that
40-23 ensures that:
40-24 (A) purchases and sales of investments are
40-25 initiated by authorized individuals, conform to investment
40-26 objectives and regulations, and are properly documented and
40-27 approved; and
41-1 (B) periodic review is made of district
41-2 investments to evaluate investment performance and security;
41-3 (4) policies and procedures for selection, monitoring,
41-4 or review and evaluation of professional services;
41-5 (5) a uniform method of accounting and reporting for
41-6 industrial development bonds and pollution control bonds that
41-7 complies with requirements of the commission; and
41-8 (6) policies that ensure a better use of management
41-9 information including:
41-10 (A) budgets for use in planning and controlling
41-11 cost;
41-12 (B) an audit committee of the board; and
41-13 (C) uniform reporting requirements that use
41-14 "Audits of State and Local Governmental Units" as a guide on audit
41-15 working papers and that uses "Governmental Accounting and Financial
41-16 Reporting Standards."
41-17 (b) The state auditor may audit the financial transactions
41-18 of any district if the state auditor determines that the audit is
41-19 necessary.
41-20 Sec. 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
41-21 DISTRICTS. A district that provides wholesale potable water and
41-22 wastewater services shall adopt a program that provides such
41-23 wholesale customers an opportunity to review and comment on the
41-24 district's annual budget that applies to their services before that
41-25 budget is adopted by the board.
41-26 (Sections 49.201-49.210 reserved for expansion
41-27 SUBCHAPTER H. POWERS AND DUTIES
42-1 Sec. 49.211. POWERS. (a) A district shall have the
42-2 functions, powers, authority, rights, and duties which will permit
42-3 accomplishment of the purposes for which it was created or the
42-4 purposes authorized by the constitution, this code, or any other
42-5 law.
42-6 (b) A district is authorized to purchase, construct,
42-7 acquire, own, operate, maintain, repair, improve, or extend inside
42-8 and outside its boundaries any and all land, works, improvements,
42-9 facilities, plants, equipment, and appliances necessary to
42-10 accomplish the purposes of its creation or the purposes authorized
42-11 by this code or any other law.
42-12 Sec. 49.212. FEES AND CHARGES. (a) A district may adopt
42-13 and enforce all necessary charges, fees, or rentals, in addition to
42-14 taxes, for providing or making available any district facility or
42-15 service.
42-16 (b) A district may require a deposit for any services or
42-17 facilities furnished and the district may or may not provide that
42-18 the deposit will bear interest.
42-19 (c) Subject to observance of the procedure appropriate to
42-20 the circumstances, a district may discontinue any or all facilities
42-21 or services to prevent an abuse or to enforce payment of an unpaid
42-22 charge, fee, or rental due the district, including taxes which have
42-23 been delinquent for not less than six months.
42-24 Sec. 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A district
42-25 may contract with a person or any public or private entity for the
42-26 joint construction, financing, ownership, and operation of any
42-27 works, improvements, facilities, plants, equipment, and appliances
43-1 necessary to accomplish any purpose or function permitted by a
43-2 district, or a district may purchase an interest in any project
43-3 used for any purpose or function permitted by a district.
43-4 (b) A district may enter into contracts with any person or
43-5 any public or private entity in the performance of any purpose or
43-6 function permitted by a district.
43-7 (c) A district may enter into contracts, which may be of
43-8 unlimited duration, with persons or any public or private entities
43-9 on the terms and conditions the board may consider desirable, fair,
43-10 and advantageous for:
43-11 (1) the purchase or sale of water;
43-12 (2) the collection, transportation, treatment, and
43-13 disposal of its domestic, industrial, and communal wastes or the
43-14 collection, transportation, treatment, and disposal of domestic,
43-15 industrial, and communal wastes of other persons; or
43-16 (3) the gathering, diverting, and control of local
43-17 storm water, or other local harmful excesses of water; or
43-18 (4) the continuing and orderly development of the land
43-19 and property within the district through the purchase,
43-20 construction, or installation of works, improvements, facilities,
43-21 plants, equipment, and appliances which the district may otherwise
43-22 be empowered and authorized to do or perform so that, to the
43-23 greatest extent reasonably possible, considering sound engineering
43-24 and economic practices, all of the land and property may be placed
43-25 in a position to ultimately receive the services of the works,
43-26 improvements, plants, facilities, equipment, and appliances;
43-27 (5) the maintenance and operation of any works,
44-1 improvements, facilities, plants, equipment, and appliances of the
44-2 district or of another person or public or private entity;
44-3 (6) the collection, treatment, and disposal of
44-4 municipal solid wastes;
44-5 (7) the exercise of any other rights, powers, and
44-6 duties granted to a district.
44-7 Sec. 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
44-8 provisions of Chapter 171, Local Government Code, shall apply to
44-9 the award of district contracts.
44-10 Sec. 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
44-11 district may purchase, construct, acquire, own, operate, repair,
44-12 improve, or extend all works, improvements, facilities, plants,
44-13 equipment, and appliances necessary to provide any services or
44-14 facilities authorized to be provided by the district to areas
44-15 contiguous to or in the vicinity of the district provided the
44-16 district does not duplicate a service or facility of another public
44-17 entity. A district providing potable water and sewer services to
44-18 household users shall not provide services or facilities to serve
44-19 areas outside the district which are also within the corporate
44-20 limits of a city without securing a resolution or ordinance of the
44-21 city granting consent for the district to serve the area within the
44-22 city.
44-23 (b) To secure money for this purpose, a district is
44-24 authorized to issue and sell negotiable bonds and notes which are
44-25 payable from the levy and collection of ad valorem taxes on all
44-26 taxable property within the district or from all or any designated
44-27 part of the revenues received from the operation of the district's
45-1 works, improvements, facilities, plants, equipment, and appliances
45-2 or from a combination of taxes and revenues.
45-3 (c) Any bonds and notes may be issued upon the terms and
45-4 conditions set forth in this code.
45-5 (d) A district shall not be required to hold a certificate
45-6 of convenience and necessity as a precondition for providing retail
45-7 water or sewer service to any customer or service area,
45-8 notwithstanding the fact that such customer or service area may be
45-9 located either within or outside the boundaries of the district or
45-10 has previously received water or sewer service from an entity
45-11 required by law to hold a certificate of convenience and necessity
45-12 as a precondition for such service. This subsection does not
45-13 authorize a district to provide services within an area for which a
45-14 retail public utility holds a certificate of convenience and
45-15 necessity or within the boundaries of another district without that
45-16 district's consent, unless the district has a valid certificate of
45-17 convenience and necessity to provide services to that area.
45-18 (e) A district is authorized to establish, maintain, revise,
45-19 charge, and collect the rates, fees, rentals, tolls, or other
45-20 charges for the use, services, and facilities which provide service
45-21 to areas outside the district which are considered necessary and
45-22 which may be higher than those charged for comparable service to
45-23 users within the district.
45-24 (f) The rates, fees, rental, tolls, or other charges shall
45-25 be at least sufficient to meet the expense of operating and
45-26 maintaining the services and facilities for water and sanitary
45-27 sewer system serving areas outside the district and to pay the
46-1 principal of and interest and redemption price on bonds issued to
46-2 purchase, construct, acquire, own, operate, repair, improve, or
46-3 extend the services or facilities.
46-4 Sec. 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A district
46-5 may contract for or employ its own peace officers with power to
46-6 make arrests when necessary to prevent or abate the commission of:
46-7 (1) any offense against the rules of the district when
46-8 the offense or threatened offense occurs on any land, water, or
46-9 easement owned or controlled by the district;
46-10 (2) any offense involving injury or detriment to any
46-11 property owned or controlled by the district; and
46-12 (3) any offense against the laws of the state.
46-13 (b) A district may appoint reserve peace officers who may be
46-14 called to serve as peace officers by the district during the actual
46-15 discharge of their official duties.
46-16 (c) A reserve peace officer serves at the discretion of the
46-17 district and may be called into service if the district considers
46-18 it necessary to have additional officers to preserve the peace in
46-19 or enforce the law of the district.
46-20 (d) A reserve peace officer on active duty and actively
46-21 engaged in assigned duties has the same rights, privileges, and
46-22 duties as any other peace officer of the district.
46-23 (e) Any peace officer, before beginning to perform any
46-24 duties and at the time of appointment, must take an oath and
46-25 execute a bond conditioned on faithful performance of such
46-26 officer's duties in the amount of $1,000 payable to the district.
46-27 The oath and the bond shall be filed in the district office.
47-1 Sec. 49.217. Operation of Certain Motor Vehicles On or Near
47-2 Public Facilities. (a) In this section, "motor vehicle" means a
47-3 self-propelled device in, upon, or by which a person or property is
47-4 or may be transported or drawn on a road or highway.
47-5 (b) Except as provided in Subsections (c) and (d) of this
47-6 section, a person may not operate a motor vehicle on a levee, in a
47-7 drainage ditch, or on land adjacent to a levee, canal, ditch,
47-8 exposed conduit, pipeline, pumping plant, storm water facility, or
47-9 other facility for the transmission, storage, treatment, or
47-10 distribution of water, sewage, or storm water that is owned or
47-11 controlled by a district.
47-12 (c) A district may authorize the use of motor vehicles on
47-13 land that it owns or controls by posting signs on the property.
47-14 (d) This section does not prohibit a person from:
47-15 (1) driving on a public road or highway; or
47-16 (2) operating a motor vehicle that is being used for
47-17 repair or maintenance of public water, sewer, or storm water
47-18 facilities.
47-19 (e) A person who operates a motor vehicle in violation of
47-20 Subsection (b) of this section commits an offense. An offense
47-21 under this section is a Class C misdemeanor, except that if a
47-22 person has been convicted of an offense under this section, a
47-23 subsequent offense is a Class B misdemeanor.
47-24 Sec. 49.218. Acquisition of Property. (a) A district or a
47-25 water supply corporation may acquire land, materials, waste
47-26 grounds, easements, rights-of-way, equipment, contract or permit
47-27 rights or interests and other property, real or personal,
48-1 considered necessary for the purpose of accomplishing any one or
48-2 more of the district's or water supply corporation's purposes
48-3 provided in this code or in any other law.
48-4 (b) A district or water supply corporation shall have the
48-5 right to acquire property by gift, grant, or purchase and the right
48-6 to acquire property shall include property considered necessary for
48-7 the construction, improvement, extension, enlargement, operation,
48-8 or maintenance of the plants, works, improvements, facilities,
48-9 equipment, or appliances of a district or a water supply
48-10 corporation.
48-11 (c) A district or water supply corporation may acquire
48-12 either the fee simple title to or an easement on all land, both
48-13 public and private, either inside or outside its boundaries and may
48-14 acquire the title to or an easement on property other than land
48-15 held in fee.
48-16 (d) A district or water supply corporation may also lease
48-17 property from others for its use on such terms and conditions as
48-18 the board of the district or the board of directors of the water
48-19 supply corporation may determine to be advantageous.
48-20 Sec. 49.219. ACQUISITION OF EXISTING FACILITIES. Any
48-21 district may acquire by agreement all or any part of existing
48-22 water, sanitary sewer, or drainage systems of any water supply
48-23 corporation, including works, improvements, facilities, plants,
48-24 equipment, appliances, contract rights, and other assets and rights
48-25 that are completed, partially completed, or under construction, and
48-26 in connection therewith a district may assume all or any part of
48-27 the contracts, indebtedness, or obligations of the corporation
49-1 related to said systems, including any contracts, indebtedness, or
49-2 obligations related to or payable from the revenues of said
49-3 systems, and may perform all or any part of the obligations of said
49-4 corporation in the same manner and to the same extent that any
49-5 other purchaser or assignee could be bound on any such contracts,
49-6 indebtedness, or obligations. Before assuming any indebtedness or
49-7 obligations of such corporation related to any such system, a
49-8 district other than a district defined in Section 49.181(h)(3) or
49-9 (4) shall obtain the approval of the commission of such assumption.
49-10 Sec. 49.220. Right to Use Existing RightS-of-Way. All
49-11 districts or water supply corporations are given rights-of-way,
49-12 within, along, under, and across all public, state, county, city,
49-13 town, or village roads, highways, and rights-of-way and other
49-14 public rights-of-way without the requirement for surety bond or
49-15 security.
49-16 Sec. 49.221. Right to Enter Land. (a) The directors,
49-17 engineers, attorneys, agents, operators, and employees of a
49-18 district or water supply corporation may go on any land to inspect,
49-19 make surveys, or perform tests to determine the condition, value,
49-20 and usability of the property, with reference to the proposed
49-21 location of works, improvements, plants, facilities, equipment, or
49-22 appliances. The cost of restoration shall be borne by the district
49-23 or the water supply corporation.
49-24 (b) District employees and agents are entitled to enter any
49-25 public or private property within the boundaries of the district or
49-26 adjacent to any reservoir or other property owned by the district
49-27 at any reasonable time for the purpose of inspecting and
50-1 investigating conditions relating to the quality of water in the
50-2 state or the compliance with any rule, regulation, permit, or other
50-3 order of the district. District employees or agents acting under
50-4 this authority who enter private property shall observe the
50-5 establishment's rules and regulations concerning safety, internal
50-6 security, and fire protection and shall notify any occupant or
50-7 management of their presence and shall exhibit proper credentials.
50-8 Sec. 49.222. Eminent Domain. (a) A district or water
50-9 supply corporation may acquire by condemnation any land, easements,
50-10 or other property inside or outside the district boundaries, or the
50-11 boundaries of the certificated service area for a water supply
50-12 corporation, necessary for water, sanitary sewer, storm drainage,
50-13 or flood drainage or control purposes or for any other of its
50-14 projects or purposes, and may elect to condemn either the fee
50-15 simple title or a lesser property interest.
50-16 (b) The right of eminent domain shall be exercised in the
50-17 manner provided in Chapter 21, Property Code, except that a
50-18 district or a water supply corporation shall not be required to
50-19 give bond for appeal or bond for costs in any condemnation suit or
50-20 other suit to which it is a party and shall not be required to
50-21 deposit more than the amount of any award in any suit.
50-22 Sec. 49.223. Costs of Relocation of Property. (a) In the
50-23 event that the district or the water supply corporation, in the
50-24 exercise of the power of eminent domain or power of relocation, or
50-25 any other power, makes necessary the relocation, raising, lowering,
50-26 rerouting, or change in grade of or alteration in construction of
50-27 any road, bridge, highway, railroad, electric transmission line,
51-1 telegraph, or telephone properties, facilities, or pipelines, all
51-2 necessary relocations, raising, lowering, rerouting, or change in
51-3 grade or alteration of construction shall be done at the sole
51-4 expense of the district or the water supply corporation unless
51-5 otherwise agreed to in writing. Such relocation shall be
51-6 accomplished in a timely manner so that the project of the district
51-7 or the water supply corporation is not delayed.
51-8 (b) "Sole expense" means the actual cost of the relocation,
51-9 raising, lowering, rerouting, or change in grade or alteration of
51-10 construction and providing comparable replacement without enhancing
51-11 the facilities after deducting from it the net salvage value
51-12 derived from the old facility.
51-13 Sec. 49.224. Power to Condemn Cemeteries. (a) The use of
51-14 land for the construction of district or water supply corporation
51-15 facilities is hereby declared to be superior to all other uses; and
51-16 for these purposes a district or water supply corporation has the
51-17 power of eminent domain to acquire land, improvements, and other
51-18 property owned and held for cemeteries or burial places that is
51-19 necessary for the construction of such district or water supply
51-20 corporation facilities.
51-21 (b) Except as otherwise provided by this subchapter, the
51-22 procedure in condemnation proceedings is governed by Chapter 21,
51-23 Property Code.
51-24 (c) Notice shall be served on the title owner of the land on
51-25 which the cemetery is situated as provided in Chapter 21, Property
51-26 Code. General notice to persons having relatives interred in the
51-27 cemetery shall be given by publication for two consecutive weeks in
52-1 a newspaper circulated in the county in which the cemetery is
52-2 situated.
52-3 (d) The measure of damages in these eminent domain
52-4 proceedings shall be assessed as in other condemnation cases. An
52-5 additional amount of damages shall be assessed to cover the cost of
52-6 removing and reinterring the bodies interred in the cemetery or
52-7 burial place and the cost of removing and resetting the monuments
52-8 or markers erected at the graves.
52-9 (e) The additional assessment shall be deposited in the
52-10 registry of the county court and disbursed only for the purpose of
52-11 removing and reinterring the bodies in other cemeteries in Texas
52-12 agreed on between the district and the relatives of the deceased
52-13 persons.
52-14 (f) If in any case the district and the relatives of a
52-15 deceased person cannot agree within 30 days on a cemetery for
52-16 reinterment, or no relatives appear within that time, then the
52-17 county judge shall designate the cemetery for reinterment.
52-18 (g) Instead of depositing the additional assessment in the
52-19 registry of the court, the district may execute a bond sufficient
52-20 to cover costs of removing and reinterring the bodies. The bond
52-21 shall be payable to and approved by the county judge and
52-22 conditioned that the bodies will be removed and reinterred as
52-23 provided by this section.
52-24 Sec. 49.225. Leases. A district may lease any of its
52-25 property, real or personal, to any person. The lease may contain
52-26 the terms and provisions which the board determines to be
52-27 advantageous to the district.
53-1 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
53-2 Property. (a) Any land, interest in land, or personal property
53-3 owned by the district which is found by the board to be surplus and
53-4 is not needed by the district may be sold under order of the board
53-5 either by public or private sale, or the land, interest in land, or
53-6 personal property may be exchanged for other land, interest in
53-7 land, or personal property needed by the district. Except as
53-8 provided in Subsection (b), land, interest in land, or personal
53-9 property must be exchanged for like fair market value, which value
53-10 may be determined by the district.
53-11 (b) Any property dedicated to or acquired by the district
53-12 without expending district funds may be abandoned or released to
53-13 the original grantor, the grantor's heirs, assigns, executors, or
53-14 successors upon terms and conditions deemed necessary or
53-15 advantageous to the district and without receiving compensation for
53-16 such abandonment or release. District property may also be
53-17 abandoned, released, exchanged or transferred to another district,
53-18 municipality, county, countywide agency, or authority upon terms
53-19 and conditions deemed necessary or advantageous to the district.
53-20 Narrow strips of property resulting from boundary or surveying
53-21 conflicts or similar causes, or from insubstantial encroachments by
53-22 abutting property owners, may be abandoned, released, exchanged or
53-23 transferred to such abutting owners upon terms and conditions
53-24 deemed necessary or advantageous to the district. Chapter 272,
53-25 Local Government Code, shall not apply to this subsection.
53-26 (c) Before either a public or a private sale of real
53-27 property not required by the district, the district shall give
54-1 notice of the intent to sell by publishing notice once a week for
54-2 two consecutive weeks in one or more newspapers with general
54-3 circulation in the district.
54-4 (d) If the district has outstanding bonds secured by a
54-5 pledge of tax revenues, the proceeds of the sale of property not
54-6 required by the district shall be applied to retire outstanding
54-7 bonds of the district when required by the district's applicable
54-8 bond resolutions.
54-9 (e) If the district does not have any outstanding bonds, the
54-10 proceeds derived from the sale of the personal property or land not
54-11 required by the district may be used for any lawful purpose.
54-12 Sec. 49.227. Authority to Act Jointly. A district or water
54-13 supply corporation may act jointly with any other person or entity,
54-14 private or public, whether within the State of Texas or the United
54-15 States, in the performance of any of the powers and duties
54-16 permitted by this code or any other laws.
54-17 Sec. 49.228. Damage to Property. A person who wilfully
54-18 destroys, defaces, damages or interferes with district or water
54-19 supply corporation property is guilty of a Class B misdemeanor.
54-20 Sec. 49.229. Grants and Gifts. A district may accept
54-21 grants, gratuities, advances, and loans in any form from any source
54-22 approved by the board, including any governmental entity, any
54-23 private or public corporation, and any other person and may make
54-24 and enter into contracts, agreements, and covenants which the board
54-25 considers appropriate in connection with acceptance of grants,
54-26 gratuities, advances, and loans.
54-27 Sec. 49.230. Area-Wide Wastewater Treatment. The powers and
55-1 duties conferred on the district are granted subject to the policy
55-2 of the state to encourage the development and use of integrated
55-3 area-wide wastewater collection, treatment, and disposal systems to
55-4 serve the wastewater disposal needs of the citizens of the state
55-5 whenever economically feasible and competitive to do so, it being
55-6 an objective of the policy to avoid the economic burden to the
55-7 people and the impact on the quality of the water in the state
55-8 which result from the construction and operation of numerous small
55-9 wastewater collection, treatment, and disposal facilities to serve
55-10 an area when an integrated area-wide wastewater collection,
55-11 treatment, and disposal system for the area can be reasonably
55-12 provided.
55-13 Sec. 49.231. STANDBY FEES. (a) In this section:
55-14 (1) "Standby fee" means a charge, other than a tax,
55-15 imposed on undeveloped property for the availability of potable
55-16 water, sanitary sewer, or drainage facilities and services.
55-17 (2) "Undeveloped property" means a tract, lot, or
55-18 reserve in the district to which no potable water, sanitary sewer,
55-19 or drainage connections have been made for which:
55-20 (A) water, sanitary sewer, or drainage
55-21 facilities and services are available;
55-22 (B) water supply, wastewater treatment plant
55-23 capacity, or drainage capacity sufficient to serve the property is
55-24 available; or
55-25 (C) major water supply lines, wastewater
55-26 collection lines, or drainage facilities with capacity sufficient
55-27 to serve the property are available.
56-1 (b) A district that proposes to provide or actually provides
56-2 retail potable water or sewer utility services, or drainage
56-3 services as the principal function of the district, may, with the
56-4 approval of the commission, adopt and impose on the owners of
56-5 undeveloped property in the district a standby fee that is in
56-6 addition to taxes levied by the district. A district may not
56-7 impose a standby fee for debt service purposes on undeveloped
56-8 property unless the facilities and services available to the
56-9 property have been financed by the district; however, a district
56-10 may impose a standby fee for operating and maintaining facilities
56-11 which it has not financed. The district may impose standby fees in
56-12 different amounts to fairly reflect the level and type of services
56-13 and facilities available to serve different property. The intent
56-14 of the standby fee is to distribute a fair portion of the cost
56-15 burden for operating and maintaining the facilities and for
56-16 financing capital costs of the facilities to owners of property who
56-17 have not constructed improvements but have potable water, sewer, or
56-18 drainage capacity available. Any revenues collected from the
56-19 standby fees shall be used to pay operation and maintenance
56-20 expenses, to pay debt service on the bonds, or both.
56-21 (c) If the board described in Subsection (b) of this section
56-22 desires to adopt and impose a standby fee, the board shall submit
56-23 to the commission an application for authority to adopt and impose
56-24 the standby fee. The application must describe the tracts of
56-25 undeveloped property in the district and state the amount of the
56-26 proposed fee.
56-27 (d) The executive director shall examine an application
57-1 submitted under Subsection (c) of this section and shall
57-2 investigate the financial condition of the district, including the
57-3 district's assets, liabilities, sources of revenue, level of
57-4 utility service rates, and level of debt service and maintenance
57-5 tax rates. On the request of the executive director, the district
57-6 shall submit any information the executive director considers
57-7 relevant to the examination and investigation. The executive
57-8 director shall prepare a written report on the application and the
57-9 district's financial condition, retain a copy of the report, and
57-10 send a copy of the report to the commission and the district.
57-11 (e) The commission shall hold a hearing on an application
57-12 submitted under Subsection (c) of this section. Notice of the
57-13 hearing shall be published in a newspaper of general circulation in
57-14 the county or counties in which the district is located once a week
57-15 for two consecutive weeks. The first publication must occur not
57-16 later than the 30th day before the date of the hearing. The
57-17 district shall send, not later than the 30th day before the date of
57-18 the hearing, notice of the hearing by certified mail, return
57-19 receipt requested, to each owner of undeveloped property in the
57-20 district. On the date the application is filed, the district's tax
57-21 assessor and collector shall certify to the district the names of
57-22 the persons owning undeveloped land in the district as reflected by
57-23 the most recent certified tax roll of the district. Notice of the
57-24 hearing must be sent by certified mail, return receipt requested,
57-25 to each mortgagee of record that has submitted a written request to
57-26 be informed of any hearings. To be effective, the written request
57-27 must be received by the district not later than the 60th day before
58-1 the date of the hearing. The written request for notice must
58-2 include the name and address of the mortgagee, the name of the
58-3 property owner in the district, and a brief property description.
58-4 (f) The commission shall consider the application, the
58-5 report of the executive director, and any other evidence allowed by
58-6 commission rule. The commission may approve the application only
58-7 if the commission finds that the fee is necessary to maintain the
58-8 financial integrity and stability of the district and fairly
58-9 allocates the costs of district facilities and services among
58-10 property owners of the district.
58-11 (g) After a hearing on an application under Subsection (e)
58-12 of this section, the commission shall issue an order approving or
58-13 disapproving the application. The commission shall retain a copy
58-14 of the order and send a copy of the order to the district.
58-15 (h) The commission may approve the adoption and imposition
58-16 of the standby fee for a period of not more than three years. The
58-17 imposition of a standby fee may be renewed for additional periods
58-18 of not more than three years each in the same manner provided in
58-19 this section for initial approval of the standby fee.
58-20 (i) If approved by the commission, the board by resolution
58-21 or order may impose an annual standby fee on undeveloped land in
58-22 the district.
58-23 (j) The board may:
58-24 (1) charge interest, at the rate of one percent a
58-25 month, on a standby fee not paid in a timely manner in accordance
58-26 with the resolution or order imposing the standby fee; and
58-27 (2) refuse to provide potable water, sanitary sewer,
59-1 or drainage service to the property for which the fee was assessed
59-2 until all delinquent standby fees on the property and interest on
59-3 those fees are fully paid.
59-4 (k) A standby fee imposed under this section is a personal
59-5 obligation of the person owning the undeveloped property on January
59-6 1 of the year for which the fee is assessed. A person is not
59-7 relieved of the obligation on transfer of title to the property.
59-8 On January 1 of each year, a lien attaches to undeveloped property
59-9 to secure payment of any standby fee imposed under this section and
59-10 the interest, if any, on the fee. The lien has the same priority
59-11 as a lien for taxes of the district.
59-12 (l) If a standby fee imposed under this section is not paid
59-13 in a timely manner, a district may file suit to foreclose the lien
59-14 securing payment of the fee and interest or to enforce the personal
59-15 obligation for the fee and interest, or both. The district may
59-16 recover, in addition to the fee and interest, reasonable costs,
59-17 including attorney's fees, incurred by the district in enforcing
59-18 the lien or obligation not to exceed 20 percent of the delinquent
59-19 fee and interest. A suit authorized by this subsection must be
59-20 filed not later than the fourth anniversary of the date the fee
59-21 became due. A fee delinquent for more than four years and interest
59-22 on the fee are considered paid unless a suit is filed before the
59-23 expiration of the four-year period.
59-24 (m) Chapter 395, Local Government Code, does not apply to a
59-25 standby fee imposed under this section.
59-26 (n) For purposes of title insurance policies issued under
59-27 the authority of Chapter 9, Insurance Code, standby fees are
60-1 considered taxes.
60-2 Sec. 49.232. IMPACT FEES. Notwithstanding any provision of
60-3 law to the contrary, a district which charges a fee which is an
60-4 impact fee as described in Section 395.001(4), Local Government
60-5 Code, must comply with Chapter 395, Local Government Code.
60-6 (Sections 49.233-49.270 reserved for expansion
60-7 SUBCHAPTER I. CONSTRUCTION CONTRACTS
60-8 Sec. 49.271. CONTRACTS FOR CONSTRUCTION WORK. (a) Any
60-9 contract made by the board for construction work shall conform to
60-10 the provisions of this chapter.
60-11 (b) The contract shall contain, incorporate by reference, or
60-12 have attached to it, the specifications, plans, and details for
60-13 work included in the contract. All work shall be done in
60-14 accordance with these plans and specifications and any authorized
60-15 change orders under the supervision of the board or its designee.
60-16 (c) The district may adopt minimum criteria for the
60-17 qualifications of bidders on its construction contracts and for
60-18 sureties issuing payment and performance bonds. For contracts over
60-19 $25,000, the district shall require a person who bids to submit a
60-20 certified or cashier's check on a responsible bank in the state
60-21 equal to at least two percent of the total amount of the bid as a
60-22 good faith deposit to ensure execution of the contract. The
60-23 district may also require attendance by a principal of each
60-24 prospective bidder at mandatory pre-bid conferences and may make
60-25 any reasonable additional requirements regarding the taking of bids
60-26 which the district may deem appropriate in order to obtain
60-27 competitive bids from responsible contractors and to minimize
61-1 contract disputes.
61-2 Sec. 49.272. REPORTS FURNISHED TO PROSPECTIVE BIDDERS. The
61-3 board shall furnish to any person who desires to bid on
61-4 construction work, and who makes a request in writing, a copy of
61-5 the engineer's report or plans and specifications showing the
61-6 details of the work to be done. The board may charge for each copy
61-7 of the engineer's report or plans and specifications an amount
61-8 sufficient to cover the cost of making the copy.
61-9 Sec. 49.273. CONSTRUCTION CONTRACT AWARD. (a) The board
61-10 shall contract for construction in accordance with this section.
61-11 (b) A construction contract may cover all the work to be
61-12 provided by the district or the various elements of the work may be
61-13 segregated for the purpose of receiving bids and awarding
61-14 contracts. A contract may provide that the work will be
61-15 constructed in stages over a period of years.
61-16 (c) A construction contract may provide for the payment of a
61-17 total sum that is the completed cost of the work or may be based on
61-18 bids to cover cost of units of the various elements entering into
61-19 the work as estimated and approximately specified by the district's
61-20 engineers, or a contract may be let and awarded in any other form
61-21 or composite of forms and to any responsible person or persons
61-22 that, in the board's judgment, will be most advantageous to the
61-23 district and result in the best and most economical completion of
61-24 the district's proposed plants, improvements, facilities, works,
61-25 equipment, and appliances.
61-26 (d) For construction contracts for $25,000 or more, the
61-27 board shall advertise the letting of the contract, including the
62-1 general conditions, time, and place of opening of sealed bids. The
62-2 notice shall be published in one or more newspapers circulated in
62-3 each county in which part of the district is located. If one
62-4 newspaper meets both of these requirements, publication in such
62-5 newspaper is sufficient. If there are more than four counties in
62-6 the district, notice may be published in any newspaper with general
62-7 circulation in the district. The notice shall be published once a
62-8 week for three consecutive weeks before the date that the bids are
62-9 opened, and the first publication shall be not later than the 21st
62-10 day before the date of the opening of the sealed bids.
62-11 (e) For construction contracts for $15,000 or more but less
62-12 than $25,000, the board shall solicit written competitive bids on
62-13 uniform written specifications from at least three bidders.
62-14 (f) For construction contracts of less than $15,000, the
62-15 board is not required to advertise or seek competitive bids.
62-16 (g) The board may not subdivide work to avoid the
62-17 advertising requirements specified in this section.
62-18 (h) The board may not accept bids that include substituted
62-19 items unless the substituted items were included in the original
62-20 bid proposal and all bidders had the opportunity to bid on the
62-21 substituted items; or if notice is given to all bidders at a
62-22 mandatory pre-bid conference.
62-23 (i) Change orders to contracts may be issued only as a
62-24 result of unanticipated conditions encountered during construction
62-25 or changes in regulatory criteria or to facilitate project
62-26 coordination with other political entities.
62-27 (j) The provisions of this subchapter do not apply to
63-1 contracts for personal or professional services or for a utility
63-2 service operator or to contracts made by a district engaged in the
63-3 distribution and sale of electric energy to the public.
63-4 (k) The provisions of this subchapter do not apply to high
63-5 technology procurements. The provisions of Sections 252.021(a) and
63-6 252.042, Local Government Code, shall apply to high technology
63-7 procurements.
63-8 Sec. 49.274. EMERGENCY APPROVAL OF DISTRICT PROJECTS. If a
63-9 district experiences an emergency condition that may create a
63-10 serious health hazard or unreasonable economic loss to the district
63-11 that requires immediate corrective action, the district may
63-12 negotiate limited duration contracts to make the necessary repairs.
63-13 The district shall submit to the executive director details
63-14 describing the specific serious health hazard or unreasonable
63-15 economic loss as soon as practicable following the issuance of the
63-16 contracts. Whenever possible, the district should obtain prior
63-17 approval of the executive director before authorizing the contract,
63-18 but failure to obtain prior approval shall not void the contract.
63-19 This section does not apply to a district defined in Section
63-20 49.181(h)(3) or (4).
63-21 Sec. 49.275. CONTRACTOR'S BOND. Any person, firm,
63-22 partnership, or corporation to whom a contract is let must give
63-23 good and sufficient performance and payment bonds in accordance
63-24 with Article 5160, Revised Statutes, and any minimum criteria for
63-25 sureties issuing such bonds adopted by a district in accordance
63-26 with Section 49.271.
63-27 Sec. 49.276. PAYMENT FOR CONSTRUCTION WORK. (a) The
64-1 district shall pay the contract price of construction contracts
64-2 only as provided in this section.
64-3 (b) The district will make progress payments under
64-4 construction contracts monthly as the work proceeds, or at more
64-5 frequent intervals as determined by the board or its designee, on
64-6 estimates approved by the board or its designee.
64-7 (c) If requested by the district engineer, the contractor
64-8 shall furnish a breakdown of the total contract price showing the
64-9 amount included for each principal category of the work, in such
64-10 detail as requested, to provide a basis for determining progress
64-11 payments. In the preparation of estimates, the district engineer
64-12 may authorize material delivered on the site and preparatory work
64-13 done to be considered if the consideration is specifically
64-14 authorized by the contract and if the contractor furnishes
64-15 satisfactory evidence that he has acquired title to the material
64-16 and that it will be utilized on the work covered by the contract.
64-17 (d) In making progress payments, 10 percent of the estimated
64-18 amount shall be retained until final completion and acceptance of
64-19 the contract work. However, if the board at any time after 50
64-20 percent of the work has been completed finds that satisfactory
64-21 progress is being made, it may authorize any of the remaining
64-22 progress payments to be made in full. Also, if the work is
64-23 substantially complete, the board, if it finds the amount retained
64-24 to be in excess of the amount adequate for the protection of the
64-25 district, at its discretion may release to the contractor all or a
64-26 portion of the excess amount. The district is not obligated to pay
64-27 interest on amounts retained except as provided herein. The
65-1 district shall not be obligated to pay any interest on the 10
65-2 percent retainage held on the first 50 percent of work completed.
65-3 If the district holds any retainage on the remaining 50 percent of
65-4 the work completed, the district shall pay interest on such
65-5 retainage from the date the retainage is withheld to the date of
65-6 payment to the contractor. The interest rate to be paid on such
65-7 retainage shall be the rate of interest paid by the district's
65-8 depository bank on interest bearing accounts of similar amounts
65-9 during the period of time interest accrues as provided herein.
65-10 (e) On completion and acceptance of each separate project,
65-11 public work, or other division of the contract, on which the price
65-12 is stated separately in the contract, payment may be made without
65-13 retention of a percentage.
65-14 Sec. 49.277. INSPECTION OF AND REPORTS ON CONSTRUCTION WORK.
65-15 (a) The board shall have control of construction work being done
65-16 for the district under contract to determine whether or not the
65-17 contract is being fulfilled and shall have the construction work
65-18 inspected by the district engineer or other designated person.
65-19 (b) During the progress of the construction work, the
65-20 district engineer or other designated person shall submit to the
65-21 board detailed written reports showing whether or not the
65-22 contractor is complying with the contract, and when the work is
65-23 completed the district engineer shall submit to the board a final
65-24 detailed report including as-built plans of the facilities showing
65-25 whether or not the contractor has fully complied with the contract.
65-26 (Sections 49.278-49.300 reserved for expansion
65-27 SUBCHAPTER J. ANNEXATION OR EXCLUSION OF LAND
66-1 Sec. 49.301. ADDING LAND BY PETITION OF LANDOWNER. (a) In
66-2 addition to any other provision provided by law, the owner or
66-3 owners of land whether or not contiguous to the district or
66-4 otherwise may file with the board a petition requesting that there
66-5 be included in the district the land described in the petition by
66-6 metes and bounds or by lot and block number if there is a recorded
66-7 plat of the area to be included in the district. The petition may
66-8 request the district to condition the annexation on certain
66-9 conditions, including the voter authorization of bonds to serve the
66-10 area to be annexed.
66-11 (b) If the district has bonds, notes, or other obligations
66-12 outstanding or bonds payable in whole or in part from taxes which
66-13 have been voted but are unissued, the board may require the
66-14 petitioner or petitioners to assume their share of the outstanding
66-15 bonds, notes, or other obligations and the voted but unissued tax
66-16 bonds of the district and authorize the board to levy a tax on
66-17 their property in each year while any of the bonds, notes, or other
66-18 obligations payable in whole or in part from taxation are
66-19 outstanding to pay their share of the indebtedness.
66-20 (c) The petition of the landowner to add land to the
66-21 district shall be signed and executed in the manner provided by law
66-22 for the conveyance of real estate.
66-23 (d) The board shall hear and consider the petition and may
66-24 add to the district the land described in the petition if it is
66-25 feasible, practicable, and to the advantage of the district and if
66-26 the district's system and other improvements of the district are
66-27 sufficient or will be sufficient to supply the added land without
67-1 injuring land already in the district.
67-2 (e) If the district has bonds payable in whole or in part
67-3 from taxation which are voted but unissued at the time of an
67-4 annexation and the petitioners assume the bonds and authorize the
67-5 district to levy a tax on their property to pay the bonds, then the
67-6 board may issue the voted but unissued bonds even though the
67-7 boundaries of the district have been altered since the
67-8 authorization of the bonds.
67-9 (f) A petition which is granted adding land to the district
67-10 shall be filed for record and shall be recorded in the office of
67-11 the county clerk of the county or counties in which the land is
67-12 located.
67-13 Sec. 49.302. ADDING LAND BY PETITION OF LESS THAN ALL THE
67-14 LANDOWNERS. (a) In addition to the method of adding land to a
67-15 district which is described in Section 49.301 of this subchapter,
67-16 defined areas of land, whether or not they are contiguous to the
67-17 district, may be annexed to the district in the manner set forth in
67-18 this section.
67-19 (b) A petition requesting the annexation of a defined area
67-20 signed by a majority in value of the owners of land in the defined
67-21 area, as shown by the tax rolls of the county or counties in which
67-22 such area is located, or signed by 50 landowners if the number of
67-23 landowners is more than 50, shall describe the land by metes and
67-24 bounds or by lot and block number if there is a recorded plat of
67-25 the area and shall be filed with the secretary of the board.
67-26 (c) It shall be the duty of the board to pass an order
67-27 fixing a time and place at which the petition for annexation shall
68-1 be heard which shall not be less than 30 days from the day of the
68-2 order calling the hearing.
68-3 (d) The secretary of the board shall issue a notice setting
68-4 forth the time and place of the hearing and describing the area
68-5 proposed to be annexed. Notice of the hearing shall be given by
68-6 posting copies of the notice in three public places in the district
68-7 and in one public place in the area proposed to be annexed for at
68-8 least 14 days before the day of the hearing and by publishing a
68-9 copy of the notice in a newspaper of general circulation in the
68-10 county or counties in which the area proposed to be annexed is
68-11 located one time at least 14 days before the day of the hearing.
68-12 (e) If upon the hearing of the petition it is found by the
68-13 board that the proposed annexation of the area to the district is
68-14 feasible, practicable, and to the advantage of the district and if
68-15 the district's system and other improvements of the district are
68-16 sufficient or will be sufficient to supply the added land without
68-17 injuring land already in the district, then the board, by order
68-18 entered in its minutes, may receive the proposed area as an
68-19 addition to and to become a part of the district. The order adding
68-20 the proposed territory to the district need not include all of the
68-21 land described in the petition if at the hearing a modification or
68-22 change is found necessary or desirable by the board.
68-23 (f) A copy of the order annexing land to the district,
68-24 signed by a majority of the members of the board and attested by
68-25 the secretary of the board, shall be filed and recorded in the deed
68-26 records of the county or counties in which the district is located
68-27 if the land is finally annexed to the district.
69-1 (g) After the order is recorded the area shall be a
69-2 component part of the district.
69-3 (h) The annexed area shall bear its pro rata share of all
69-4 bonds, notes, or other obligations or taxes which may be owed,
69-5 contracted, or authorized by the district to which it has been
69-6 added.
69-7 (i) Before the added area shall be subject to all or any
69-8 part of the bonds, notes, obligations, or taxes, created before the
69-9 annexation of the area to the district, the board shall order an
69-10 election to be held in the district, as enlarged by reason of the
69-11 annexation of the area, on the question of the assumption of the
69-12 bonds, notes, obligations, and taxes by the annexed area.
69-13 (j) At the same election, the board may also submit a
69-14 proposition on the question of whether the annexed area should
69-15 assume its part of the bonds of the district payable in whole or in
69-16 part from taxes which have been voted previously but not yet issued
69-17 or sold and the levy of an ad valorem tax on all taxable property
69-18 within the area annexed along with a tax on the rest of the
69-19 district for the payment of the bonds.
69-20 (k) If the election results favorably, the district shall be
69-21 authorized to issue its voted but unissued tax bonds even though
69-22 the boundaries of the district have been changed since the original
69-23 election approving the bonds.
69-24 (l) At the election called for the purpose of determining
69-25 whether the annexed area shall assume the bonds, notes, or other
69-26 obligations or taxes of the district, the board in a separate
69-27 proposition may also submit the question of whether the board
70-1 should be authorized to issue bonds payable in whole or in part
70-2 from taxes to provide service to the area annexed.
70-3 (m) In the event that the district has bonds, notes, or
70-4 obligations or taxes which may be owed, contracted, or authorized
70-5 at the time an area is annexed or if the district has voted but
70-6 unissued bonds payable in whole or in part from taxes at the time
70-7 of an annexation, the board may provide in its order annexing an
70-8 area to the district that the annexation will not be complete or
70-9 final unless the indebtedness, tax or bond, note, or other
70-10 obligation assumption elections result favorably to the assumption
70-11 of the district's outstanding bonds, notes, or other obligations
70-12 and voted but unissued bonds.
70-13 (n) If the board elects to submit the question of whether
70-14 the board should be authorized to issue bonds to provide service to
70-15 the area annexed, the board may also provide in its order annexing
70-16 an area to the district that the annexation will not be complete
70-17 unless the election results favorably to the issuance of bonds to
70-18 serve the annexed area.
70-19 (o) Whenever an election is ordered to be held in the
70-20 district for the purpose of the assumption of bonds, notes, or
70-21 other obligations or taxes or the assumption of voted but unissued
70-22 bonds by reason of the annexation of any area, then the election
70-23 shall be held and notice given as provided for bond elections held
70-24 by the district.
70-25 (p) The district has the same right and duty to furnish
70-26 service to the annexed land that it previously had to furnish
70-27 service to other land in the district and the board shall endeavor
71-1 to serve all land in the district without discrimination.
71-2 Sec. 49.303. EXCLUDING LAND FROM DISTRICT. (a) Before a
71-3 district orders an election for the authorization of bonds payable
71-4 in whole or in part from taxes, the board may, on its own motion,
71-5 call a hearing on the question of the exclusion of land from the
71-6 district under the provisions of Sections 49.303-49.307 of this
71-7 subchapter, if the exclusions are practicable, just, or desirable.
71-8 (b) The board must call a hearing on the exclusion of land
71-9 or other property from the district on the written petition of any
71-10 landowner or property owner in the district filed with the
71-11 secretary of the board before the first election on the question of
71-12 whether bonds should be issued payable in whole or in part from
71-13 taxes is ordered.
71-14 (c) The board may hold a hearing on the exclusion of land or
71-15 other property from the district if the district has not issued
71-16 bonds payable in whole or in part from taxes, and if a landowner or
71-17 property owner submits a signed petition to the secretary of the
71-18 board evidencing the consent of the owners of a majority of the
71-19 acreage proposed to be excluded and a majority of the taxable
71-20 property in the district, as reflected by the most recent certified
71-21 tax roll of the district.
71-22 (d) A district that has previously held an election at which
71-23 approval was given for the issuance of bonds payable in whole or in
71-24 part from taxes may not rely on that election for the issuance of
71-25 the bonds if after the bond election, but before the bonds are
71-26 issued, land is excluded from the district as provided by this
71-27 subchapter. The board must call and hold another bond election and
72-1 receive voter approval as provided by this subchapter before
72-2 issuing those bonds.
72-3 Sec. 49.304. HEARING TO ANNOUNCE PROPOSED EXCLUSIONS AND TO
72-4 RECEIVE PETITIONS. (a) If the board determines that an exclusion
72-5 hearing should be held or if a written petition requesting an
72-6 exclusion hearing is filed with the secretary of the board as
72-7 provided in Section 49.303 of this subchapter, the board shall give
72-8 notice of a time and place of a hearing to announce its own
72-9 conclusions relating to land or other property to be excluded and
72-10 to receive petitions for exclusion of land or other property.
72-11 (b) The board shall publish notice of the hearing once a
72-12 week for two consecutive weeks in one or more newspapers with
72-13 general circulation in the district. The first publication shall
72-14 appear at least 14 days before the day of the hearing.
72-15 (c) The notice shall advise all interested property owners
72-16 of their right to present petitions for exclusions of land or other
72-17 property and to offer evidence in support of the petitions and
72-18 their right to contest any proposed exclusion based on either a
72-19 petition or the board's own conclusions and to offer evidence in
72-20 support of the contest.
72-21 Sec. 49.305. PETITION. (a) A petition for exclusion of
72-22 land must accurately describe by metes and bounds or lot and block
72-23 number the land to be excluded. A petition for exclusion of other
72-24 property must describe the property to be excluded.
72-25 (b) A petition for exclusion shall be filed with the
72-26 district at least seven days before the hearing and shall state
72-27 clearly the particular grounds on which the exclusion is sought.
73-1 Only the stated grounds shall be considered.
73-2 Sec. 49.306. GROUNDS FOR EXCLUSION. Exclusions from the
73-3 district may be made on the grounds that:
73-4 (1) to retain certain land or other property within
73-5 the district's taxing power would be arbitrary and unnecessary to
73-6 conserve the public welfare, would impair or destroy the value of
73-7 the property desired to be excluded, and would constitute the
73-8 arbitrary imposition of a confiscatory burden;
73-9 (2) to retain any given land or other property in the
73-10 district and to extend to it, either presently or in the future,
73-11 the benefits, service, or protection of the district's facilities
73-12 would create an undue and uneconomical burden on the remainder of
73-13 the district; or
73-14 (3) the land desired to be excluded cannot be bettered
73-15 as to conditions of living and health, or provided with water or
73-16 sewer service or protected from flood, or drained, or freed from
73-17 interruption of traffic caused by excess of water on the roads,
73-18 highways, or other means of transportation serving the land, or
73-19 otherwise benefitted by the district's proposed improvements.
73-20 Sec. 49.307. HEARING AND ORDER EXCLUDING LAND. (a) The
73-21 board may adjourn the hearing from one day to another and until all
73-22 persons desiring to be heard are heard. The board immediately
73-23 shall specifically describe all property which it proposes to
73-24 exclude on its own motion and shall hear first any protests and
73-25 evidence against exclusions proposed on the board's own motion.
73-26 (b) After considering all engineering data and other
73-27 evidence presented to it, the board shall determine whether the
74-1 facts disclose the affirmative of the propositions stated in
74-2 Subdivision (1) or (2) or, if appropriate, in Subdivision (3) of
74-3 Section 49.306 of this subchapter. If the affirmative exists, the
74-4 board shall enter an order excluding all land or other property
74-5 falling within the conditions defined by the respective
74-6 subdivisions and shall redefine in the order the boundaries of the
74-7 district to embrace all land not excluded. A copy of the order
74-8 excluding land and redefining the boundaries of the district shall
74-9 be filed in the deed records of the county or counties in which the
74-10 district is situated.
74-11 Sec. 49.308. SUIT TO REVIEW EXCLUSION. (a) Any person
74-12 owning an interest in land affected by the order may file a
74-13 petition within 20 days after the effective date of the order to
74-14 review, set aside, modify, or suspend the order.
74-15 (b) The venue in any action shall be in any district court
74-16 which has jurisdiction in the county in which the district is
74-17 located. If the district includes land in more than one county,
74-18 the venue shall be in the district court having jurisdiction in the
74-19 county in which the major portion of the acreage of the land sought
74-20 to be excluded from the district is located.
74-21 (c) A person may appeal from the judgment or order of a
74-22 district court in a suit brought under the provisions of this
74-23 section to the court of civil appeals and supreme court as in other
74-24 civil cases in which the district court has original jurisdiction.
74-25 The appeal is subject to the statutes and rules of practice and
74-26 procedure in civil cases.
74-27 (Sections 49.309-49.320 reserved for expansion
75-1 SUBCHAPTER K. DISSOLUTION
75-2 Sec. 49.321. DISSOLUTION AUTHORITY. After notice and
75-3 hearing, the commission may dissolve any district which is inactive
75-4 for a period of five consecutive years and has no outstanding
75-5 bonded indebtedness.
75-6 Sec. 49.322. NOTICE OF HEARING. (a) The commission shall
75-7 give notice of the dissolution hearing which briefly describes the
75-8 reasons for the proceeding.
75-9 (b) The notice shall be published once each week for two
75-10 consecutive weeks before the day of hearing in some newspaper
75-11 having general circulation in the county or counties in which the
75-12 district is located. The first publication shall be 30 days before
75-13 the day of the hearing.
75-14 (c) The commission shall give notice of the hearing by first
75-15 class mail addressed to the directors of the district according to
75-16 the last record on file with the executive director.
75-17 Sec. 49.323. INVESTIGATION. The executive director shall
75-18 investigate the facts and circumstances of the district to be
75-19 dissolved and the result of the investigation shall be included in
75-20 a written report.
75-21 Sec. 49.324. ORDER OF DISSOLUTION. The commission may enter
75-22 an order dissolving the district at the conclusion of the hearing
75-23 if it finds that the district has performed none of the functions
75-24 for which it was created for a period of five consecutive years
75-25 before the day of the proceeding and that the district has no
75-26 outstanding bonded indebtedness.
75-27 Sec. 49.325. CERTIFIED COPY OF ORDER. The commission shall
76-1 file a certified copy of the order of dissolution of the district
76-2 in the deed records of the county or counties in which the district
76-3 is located. If the particular district was created by a special
76-4 Act of the legislature, the commission shall file a certified copy
76-5 of the order of dissolution with the secretary of state.
76-6 Sec. 49.326. APPEALS. (a) Appeals from a commission order
76-7 dissolving a district shall be filed and heard in the district
76-8 court of any of the counties in which the land is located.
76-9 (b) The trial on appeal shall be de novo and the substantial
76-10 evidence rule shall not apply.
76-11 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
76-12 of a district by the commission, all assets of the district shall
76-13 escheat to the State of Texas. The assets shall be administered by
76-14 the state treasurer and shall be disposed of in the manner provided
76-15 by Chapter 72, Property Code.
76-16 (Sections 49.328-49.350 reserved for expansion
76-17 SUBCHAPTER L. FIRE DEPARTMENTS
76-18 Sec. 49.351. FIRE DEPARTMENTS. (a) A district providing
76-19 potable water or sewer service to household users may establish,
76-20 operate, and maintain a fire department to perform all
76-21 fire-fighting activities within the district as provided in this
76-22 subchapter and may issue, with voter approval, bonds for financing
76-23 the establishment of the fire department including the construction
76-24 and purchase of necessary buildings, facilities, and equipment and
76-25 the provision of an adequate water supply.
76-26 (b) After approval of the district electors of a plan to
76-27 operate or jointly operate a fire department, the district or
77-1 districts shall provide an adequate system and water supply for
77-2 fire-fighting purposes and may construct and purchase necessary
77-3 buildings, facilities, and equipment and may employ all necessary
77-4 personnel including supervisory personnel to operate the fire
77-5 department.
77-6 (c) Bonds issued for establishment of the fire department
77-7 shall be authorized and issued, and a district shall be authorized
77-8 to levy a tax to pay the principal of and interest on such bonds,
77-9 as provided by law for authorization and issuance of other bonds of
77-10 the district.
77-11 (d) Two or more districts may contract to operate a joint
77-12 fire department for their districts and shall include in the
77-13 contract a system for joint administration and operation of the
77-14 fire department, the extent of services to be provided, a method
77-15 for funding the department from funds of each district, and any
77-16 other terms and conditions the parties consider necessary.
77-17 (e) A district may contract with any other person to perform
77-18 fire-fighting services within the district.
77-19 (f) Before a district establishes a fire department,
77-20 contracts to operate a joint fire department, or contracts with
77-21 another person to perform fire-fighting services within the
77-22 district, the district must comply with the provisions of
77-23 Subsections (g), (h), and (i) of this section.
77-24 (g) A district or districts proposing to act jointly shall
77-25 develop a detailed plan for the establishment, operation, and
77-26 maintenance of the proposed department, including a detailed
77-27 presentation of all financial requirements. If a district is
78-1 entering into a contract under Subsection (e) of this section, the
78-2 district shall develop a plan that describes in detail the
78-3 facilities and equipment to be devoted to service to the district
78-4 and all proposals for providing the service and that includes a
78-5 presentation of the financial requirements under the contract.
78-6 Before adoption of a plan and any contract by the district, the
78-7 board shall hold a hearing at which any person residing in the
78-8 district may present testimony for and against the proposed plan
78-9 and any proposed contract. Notice of the hearing and the place at
78-10 which the plan and any contract may be examined shall be posted in
78-11 two public places within the district at least 10 days before the
78-12 date of the hearing.
78-13 (h) After adoption of the plan and any contract by the
78-14 board, the plan and financial presentation, together with any
78-15 contract and a written report in a form prescribed by the executive
78-16 director describing existing fire departments and fire-fighting
78-17 services available within 25 miles of the boundaries of the
78-18 district, shall be submitted to the executive director for
78-19 consideration by the commission under rules adopted by the
78-20 commission. Before approval or disapproval, the commission shall
78-21 hold a hearing. Notice of the hearing before the commission shall
78-22 be posted by the board in at least two public places in the
78-23 district at least five days before the hearing. Before the
78-24 commission approves the application, it must find that it is
78-25 economically feasible for the district to implement the plan and
78-26 meet the provisions of any contract and shall take into
78-27 consideration in giving its approval the general financial
79-1 condition of the district and the economic feasibility of the
79-2 district carrying out the plan or meeting the obligations of the
79-3 contract.
79-4 (i) After approval by the commission, the district shall
79-5 submit to the electors of the district at the election to approve
79-6 bonds for financing the plan, or if no bonds are to be approved, at
79-7 an election called for approval of the plan, the proposition of
79-8 whether or not the plan should be implemented or entered into by
79-9 the district. The ballots at the election shall be printed, as
79-10 applicable, to provide for voting for or against the proposition:
79-11 "The implementation of the plan for (operation/joint operation) of
79-12 a fire department"; or "The plan and contract to provide
79-13 fire-fighting services for the district."
79-14 (j) No funds of the district may be used to establish a fire
79-15 department, to enter into joint operation of a fire department, or
79-16 to contract for fire-fighting services without the approval of a
79-17 plan by the electors as provided in this section. However, the
79-18 district may use available funds for preparation of a plan and any
79-19 contract. The operation of a fire department or provision of
79-20 fire-fighting services is an essential public necessity, and a
79-21 district may discontinue any and all services, including water and
79-22 sewer service, to any person who fails to timely pay fire
79-23 department service fees or any other assessment adopted by the
79-24 district to support the fire department or the provision of
79-25 fire-fighting services.
79-26 (Sections 49.352-49.450 reserved for expansion
79-27 SUBCHAPTER M. NOTICES, REPORTS, AND BANKRUPTCY
80-1 Sec. 49.451. POSTING SIGNS IN THE DISTRICT. (a) A district
80-2 subject to the notice requirements of Section 49.452 shall, within
80-3 30 days after the effective date of this section or the creation of
80-4 the district, post signs indicating the existence of the district
80-5 at two principal entrances to the district.
80-6 (b) The size and exact location of the information contained
80-7 on the signs shall be determined by the executive director.
80-8 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
80-9 proposes to sell or convey real property located in a district
80-10 which was created under this title or by a special Act of the
80-11 legislature, which is providing or proposing to provide, as the
80-12 district's principal function, water, sanitary sewer, drainage, and
80-13 flood control or protection facilities or services, or any of these
80-14 facilities or services that have been financed or are proposed to
80-15 be financed with bonds of the district payable in whole or part
80-16 from taxes of the district, or by imposition of a standby fee, if
80-17 any, to household or commercial users, other than agricultural or
80-18 irrigation users, and which district includes less than all the
80-19 territory in at least one county and which, if located within the
80-20 corporate area of a city, includes less than 75 percent of the
80-21 incorporated area of the city or which is located outside the
80-22 corporate area of a city in whole or in substantial part, must
80-23 first give to the purchaser the written notice provided in this
80-24 section.
80-25 (2) The provisions of this section shall not be
80-26 applicable to:
80-27 (A) transfers of title under any type of lien
81-1 foreclosure;
81-2 (B) transfers of title by deed in cancellation
81-3 of indebtedness secured by a lien upon the property conveyed; or
81-4 (C) transfers of title by reason of a will or
81-5 probate proceedings.
81-6 (b) The prescribed notice for all districts shall be
81-7 executed by the seller and shall read as follows:
81-8 "The real property, described below, which you are about to
81-9 purchase is located in the ___________________ District. The
81-10 district has taxing authority separate from any other taxing
81-11 authority, and may, subject to voter approval, issue an unlimited
81-12 amount of bonds and levy an unlimited rate of tax in payment of
81-13 such bonds. As of this date, the rate of taxes levied by the
81-14 district on real property located in the district is $__________ on
81-15 each $100 of assessed valuation. If the district has not yet
81-16 levied taxes, the most recent projected rate of debt service tax,
81-17 as of this date, is $__________ on each $100 of assessed valuation.
81-18 The total amount of bonds which has been approved by the voters and
81-19 which have been or may, at this date, be issued is $__________, and
81-20 the aggregate initial principal amounts of all bonds issued for one
81-21 or more of the specified facilities of the district and payable in
81-22 whole or in part from property taxes is $__________.
81-23 "The district has the authority to adopt and impose a standby
81-24 fee on property in the district that has water, sanitary sewer, or
81-25 drainage facilities and services available but not connected and
81-26 which does not have a house, building, or other improvement located
81-27 thereon and does not substantially utilize the utility capacity
82-1 available to the property. The district may exercise the authority
82-2 without holding an election on the matter. As of this date, the
82-3 most recent amount of the standby fee is $__________. An unpaid
82-4 standby fee is a personal obligation of the person that owned the
82-5 property at the time of imposition and is secured by a lien on the
82-6 property. Any person may request a certificate from the district
82-7 stating the amount, if any, of unpaid standby fees on a tract of
82-8 property in the district.
82-9 "The purpose of this district is to provide water, sewer,
82-10 drainage, or flood control facilities and services within the
82-11 district through the issuance of bonds payable in whole or in part
82-12 from property taxes. The cost of these utility facilities is not
82-13 included in the purchase price of your property, and these utility
82-14 facilities are owned or to be owned by the district. The legal
82-15 description of the property which you are acquiring is as follows:
82-16 ____________________________________________________________
82-17 Date
82-18 _________________________
82-19 Signature of Seller
82-20 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
82-21 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
82-22 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
82-23 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
82-24 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
82-25 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
82-26 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
82-27 "The undersigned purchaser hereby acknowledges receipt of the
83-1 foregoing notice at or prior to execution of a binding contract for
83-2 the purchase of the real property described in such notice or at
83-3 closing of purchase of the real property.
83-4 ____________________________________________________________
83-5 Date
83-6 _________________________
83-7 Signature of Purchaser
83-8 "(Note: Correct district name, tax rate, bond amounts, and
83-9 legal description are to be placed in the appropriate space.
83-10 Except for notices included as an addendum or paragraph of a
83-11 purchase contract, the notice shall be executed by the seller and
83-12 purchaser, as indicated. If the district does not propose to
83-13 provide one or more of the specified facilities and services, the
83-14 appropriate purpose may be eliminated. If the district has not yet
83-15 levied taxes, a statement of the district's most recent projected
83-16 rate of debt service tax is to be placed in the appropriate space.
83-17 If the district does not have approval from the commission to adopt
83-18 and impose a standby fee, the second paragraph of the notice may be
83-19 deleted. For the purposes of the notice form required to be given
83-20 to the prospective purchaser prior to execution of a binding
83-21 contract of sale and purchase, a seller and any agent,
83-22 representative, or person acting on the seller's behalf may modify
83-23 the notice by substitution of the words 'January 1, ______' for the
83-24 words 'this date' and place the correct calendar year in the
83-25 appropriate space."
83-26 (c) The notice required by this section shall be given to
83-27 the prospective purchaser prior to execution of a binding contract
84-1 of sale and purchase either separately or as an addendum or
84-2 paragraph of a purchase contract. In the event a contract of
84-3 purchase and sale is entered into without the seller providing the
84-4 notice required by this subsection, the purchaser shall be entitled
84-5 to terminate the contract. If, however, the seller furnishes the
84-6 required notice at or prior to closing the purchase and sale
84-7 contract and the purchaser elects to close even though such notice
84-8 was not timely furnished prior to execution of the contract, it
84-9 shall be conclusively presumed that the purchaser has waived all
84-10 rights to terminate the contract and recover damages or other
84-11 remedies or rights under the provision of this section.
84-12 Notwithstanding any provision of this subchapter to the contrary,
84-13 all sellers, title companies, examining attorneys, and any agent,
84-14 representative, or person acting on their behalf shall not be
84-15 liable for damages under the provisions of either Subsection (l) or
84-16 (m) of this section or liable for any other damages to any person
84-17 for failure to provide the notice required by this section to a
84-18 purchaser prior to execution of a binding contract of a purchase
84-19 and sale when the district has not filed the information form and
84-20 map or plat as required under Section 49.455 of this code.
84-21 (d) The purchaser shall sign the notice or purchase contract
84-22 including such notice to evidence the receipt of notice.
84-23 (e) At the closing of purchase and sale, a separate copy of
84-24 such notice with current information shall be executed by the
84-25 seller and purchaser, acknowledged, and thereafter recorded in the
84-26 deed records of the county in which the property is located. For
84-27 the purposes of this section, all sellers, title companies, and
85-1 examining attorneys, and any agent, representative, or person
85-2 acting on their behalf, shall be entitled to rely on the accuracy
85-3 of the information form and map or plat as last filed by each
85-4 district under Section 49.455 of this code or the information
85-5 contained in or shown on the notice form issued by the district
85-6 under Section 49.453 of this code in completing the notice form to
85-7 be executed by the seller and purchaser at the closing of purchase
85-8 and sale. Any information taken from the information form or map
85-9 or plat as last filed by each district and the information
85-10 contained in or shown on the notice form issued by the district
85-11 under Section 49.453 of this code shall be for purposes of this
85-12 section conclusively presumed as a matter of law to be correct.
85-13 All subsequent sellers, purchasers, title insurance companies,
85-14 examining attorneys, and lienholders shall be entitled to rely upon
85-15 the information form and map or plat filed by the district or the
85-16 notice form issued by the district under Section 49.453 of this
85-17 code.
85-18 (f) For the purposes of this section, an executory contract
85-19 of purchase and sale having a performance period of more than six
85-20 months shall be considered a sale under Subsection (a) of this
85-21 section.
85-22 (g) For the purposes of the notice form to be given to the
85-23 prospective purchaser prior to execution of a binding contract of
85-24 sale and purchase, a seller and any agent, representative, or
85-25 person acting in the seller's behalf may modify the notice by
85-26 substitution of the words "January 1, ____" for the words "this
85-27 date" and place the correct calendar year in the appropriate space.
86-1 All sellers, and all persons completing the prescribed notice in
86-2 the sellers' behalf, shall be entitled to rely on the information
86-3 contained in or shown on the information form and map or plat filed
86-4 of record by the district under Section 49.455 in completing the
86-5 prescribed form to be given to the prospective purchaser prior to
86-6 execution of a binding contract of sale and purchase. Except as
86-7 otherwise provided in Subsection (e) of this section, any
86-8 information taken from the information form or map or plat filed of
86-9 record by the district in effect as of January 1 of each year shall
86-10 be, for purposes of the notice to be given to the prospective
86-11 purchaser prior to execution of a binding contract of sale and
86-12 purchase, conclusively presumed as a matter of law to be correct
86-13 for the period January 1 through December 31 of such calendar year.
86-14 A seller and any persons completing the prescribed notice in the
86-15 seller's behalf may provide more recent information, if available,
86-16 than the information contained in or shown on the information form
86-17 and map or plat filed of record by the district under Section
86-18 49.455 in effect as of January 1 of each year in completing the
86-19 prescribed form to be given to the purchaser prior to execution of
86-20 a binding contract of sale and purchase. Nothing contained in the
86-21 preceding sentence shall be construed to create an affirmative duty
86-22 on the part of a seller or any persons completing the prescribed
86-23 notice in the seller's behalf to provide more recent information
86-24 than the information taken from the information form and map or
86-25 plat filed of record by the district as of January 1 of each year
86-26 in completing the prescribed notice to be given to the purchaser
86-27 prior to execution of a binding contract of sale and purchase. All
87-1 subsequent sellers, purchasers, title insurance companies,
87-2 examining attorneys, and lienholders shall be entitled to rely upon
87-3 the information form and map or plat filed by the district.
87-4 (h) If such notice is given at closing as provided in
87-5 Subsection (e) of this section, a purchaser, or the purchaser's
87-6 heirs, successors, or assigns, shall not be entitled to maintain
87-7 any action for damages or maintain any action against a seller,
87-8 title insurance company, or lienholder, or any agent,
87-9 representative, or person acting in their behalf, by reason of use
87-10 by the seller of the information filed for record by the district
87-11 or reliance by the seller on the filed plat and filed legal
87-12 description of the district in determining whether the property to
87-13 be sold and purchased is within the district. No action may be
87-14 maintained against any title company for failure to disclose the
87-15 inclusion of the described real property within a district when the
87-16 district has not filed for record the information form, map, or
87-17 plat with the clerk of the county or counties in which the district
87-18 is located.
87-19 (i) Any purchaser who purchases any real property in a
87-20 district and who thereafter sells or conveys the same shall on
87-21 closing of such subsequent sale be conclusively considered as
87-22 having waived any prior right to damages under this section.
87-23 (j) It is the express intent of this section that all
87-24 sellers, title insurance companies, examining attorneys, vendors of
87-25 property and tax information, real estate brokers and lienholders,
87-26 and any agent, representative, or person acting on their behalf,
87-27 shall be entitled to rely on the accuracy of the information form
88-1 and map or plat as last filed by each district or the information
88-2 contained in or shown on the notice form issued by the district
88-3 under Section 49.453 of this code, or for the purposes of the
88-4 notice to be given the purchaser prior to execution of a binding
88-5 contract of sale and purchase the information contained in or shown
88-6 on the information form and map or plat filed of record by the
88-7 district in effect as of January 1 of each year for the period
88-8 January 1 through December 31 of such calendar year.
88-9 (k) Except as otherwise provided in Subsection (c) of this
88-10 section, if any sale or conveyance of real property within a
88-11 district is not made in compliance with the provisions of this
88-12 section, the purchaser may institute a suit for damages under the
88-13 provisions of either Subsection (l) or Subsection (m) of this
88-14 section.
88-15 (l) A purchaser of real property covered by the provisions
88-16 of this section, if the sale or conveyance of the property is not
88-17 made in compliance with this section, may institute a suit for
88-18 damages in the amount of all costs relative to the purchase of the
88-19 property plus interest and reasonable attorney's fees. The suit
88-20 for damages may be instituted jointly or severally against the
88-21 person, firm, corporation, partnership, organization, business
88-22 trust, estate, trust, association, or other legal entity which sold
88-23 or conveyed the property to the purchaser. Following the recovery
88-24 of damages under this subsection, the amount of the damages shall
88-25 first be paid to satisfy all unpaid obligations on each outstanding
88-26 lien or liens on the property and the remainder of the damage
88-27 amount shall be paid to the purchaser. On payment of all damages
89-1 respectively to the lienholders and purchaser, the purchaser shall
89-2 reconvey the property to the seller.
89-3 (m) A purchaser of real property covered by the provisions
89-4 of this section, if the sale or conveyance of the property is not
89-5 made in compliance with this section, may institute a suit for
89-6 damages in an amount not to exceed $5,000, plus reasonable
89-7 attorney's fees.
89-8 (n) A purchaser is not entitled to recover damages under
89-9 both Subsections (l) and (m) of this section, and entry of a final
89-10 decision awarding damages to the purchaser under either Subsection
89-11 (l) or Subsection (m) of this section shall preclude the purchaser
89-12 from recovering damages under the other subsection.
89-13 Notwithstanding any part or provision of the general or special
89-14 laws or the common law of the state to the contrary, the relief
89-15 provided under Subsections (l) and (m) of this section shall be the
89-16 exclusive remedies for a purchaser aggrieved by the seller's
89-17 failure to comply with the provisions of this section. Any action
89-18 for damages shall not, however, apply to, affect, alter, or impair
89-19 the validity of any existing vendor's lien, mechanic's lien, or
89-20 deed of trust lien on the property.
89-21 (o) A suit for damages under the provisions of this section
89-22 must be brought within 90 days after the purchaser receives the
89-23 first district tax notice or within four years after the property
89-24 is sold or conveyed to the purchaser, whichever time occurs first,
89-25 or the purchaser loses the right to seek damages under this
89-26 section.
89-27 (p) Notwithstanding any provisions of this subchapter to the
90-1 contrary, a purchaser may not recover damages of any kind under
90-2 this section if that person:
90-3 (1) purchases an equity in real property and in
90-4 conjunction with the purchase assumes any liens, whether purchase
90-5 money or otherwise; and
90-6 (2) does not require proof of title by abstract, title
90-7 policy, or any other proof of title.
90-8 Sec. 49.453. NOTICE FORM FROM DISTRICT. (a) A district
90-9 covered by Section 49.452 shall also maintain in the district
90-10 office the particular form of Notice to Purchasers required by
90-11 Section 49.452 to be furnished by a seller to a purchaser of real
90-12 property in that district and shall, upon written request of any
90-13 person, issue the notice form completed by a district with all
90-14 information required to be furnished by the district. A notice
90-15 form issued by a district under the provisions of this section
90-16 shall include a written statement that the notice form is being
90-17 issued by the district, the date of its issuance, and the
90-18 district's telephone number. A district shall not be required to
90-19 orally provide the information.
90-20 (b) A district may charge a reasonable fee as determined by
90-21 the district not to exceed $10 for the issuance of a notice form
90-22 pursuant to Subsection (a) of this section. The notice form shall
90-23 be delivered by regular mail or made available at the district's
90-24 office. If a district is requested to deliver the notice form to a
90-25 person by an alternative method, the district may impose a charge
90-26 not to exceed the actual cost of such delivery.
90-27 (c) A district may delegate the responsibility for issuance
91-1 of the particular form of Notice to Purchasers to an employee or
91-2 agent of the district. A district shall file with the commission
91-3 the name, address, and telephone number of the employee or agent of
91-4 the district responsible for issuance of the notice forms and shall
91-5 notify the commission in writing within seven days after there is a
91-6 change to the information required to be filed with the commission
91-7 under the provisions of this subsection.
91-8 (d) Any notice issued by the district shall contain the
91-9 information effective as of the date of its issuance.
91-10 Sec. 49.454. NOTICE OF UNPAID STANDBY FEES. (a) A district
91-11 covered by Section 49.452 shall, on the written request of any
91-12 person, issue a certificate stating the amount of any unpaid
91-13 standby fees, including interest on the fees, that have been
91-14 assessed against a tract of property in the district. The district
91-15 may charge a fee not to exceed $10 for each certificate. A
91-16 certificate issued through fraud or collusion is void.
91-17 (b) If the district issues a certificate containing an
91-18 erroneous statement under Subsection (a) of this section and the
91-19 owner of the property transfers the property to a good faith
91-20 purchaser for value, the lien on the property provided by Section
91-21 49.231(k) of this chapter is extinguished to the extent of the
91-22 error.
91-23 (c) This section does not affect the liability for any
91-24 unpaid standby fees of the former owner of the undeveloped property
91-25 under Section 49.231(k) of this chapter.
91-26 Sec. 49.455. FILING INFORMATION. (a) The board covered by
91-27 the provisions of Section 49.452 of this subchapter shall file with
92-1 the county clerk in each of the counties in which all or part of
92-2 the district is located a duly affirmed and acknowledged
92-3 information form which includes the information required in
92-4 Subsection (b) of this section, and a complete and accurate map or
92-5 plat showing the boundaries of the district.
92-6 (b) The information form filed by a district under this
92-7 section shall include:
92-8 (1) the name of the district;
92-9 (2) the complete and accurate legal description of the
92-10 boundaries of the district;
92-11 (3) the most recent rate of district taxes on property
92-12 located in the district;
92-13 (4) the total amount of bonds which have been approved
92-14 by the voters and which may be issued by the district (excluding
92-15 refunding bonds and any bonds or portion of bonds payable solely
92-16 from revenues received or expected to be received pursuant to a
92-17 contract with a governmental entity);
92-18 (5) the aggregate initial principal amount of all
92-19 bonds of the district payable in whole or part from taxes
92-20 (excluding refunding bonds and any bonds or portion of bonds
92-21 payable solely from revenues received or expected to be received
92-22 pursuant to a contract with a governmental entity) which have been
92-23 previously issued and remain outstanding;
92-24 (6) whether a standby fee is imposed by the district
92-25 and, if so, the amount of the standby fee;
92-26 (7) the date on which the election to confirm the
92-27 creation of the district was held if such was required;
93-1 (8) a statement of the functions performed or to be
93-2 performed by the district; and
93-3 (9) the particular form of Notice to Purchasers
93-4 required by Section 49.452 of this subchapter to be furnished by a
93-5 seller to a purchaser of real property in that district completed
93-6 by the district with all information required to be furnished by
93-7 the district.
93-8 If a district has not yet levied taxes, a statement to such
93-9 effect together with the district's most recent projected rate of
93-10 debt service tax shall be substituted for Subdivisions (3) and (4)
93-11 of this subsection.
93-12 (c) The information form and map or plat required by this
93-13 section shall be signed by a majority of the members of the board
93-14 and by each such officer affirmed and acknowledged before it is
93-15 filed with the county clerk, and each amendment made to an
93-16 information form or map shall also be signed by the members of the
93-17 board and by each such officer affirmed and acknowledged before it
93-18 is filed with the county clerk.
93-19 (d) The information form required by this section shall be
93-20 filed with the county clerk within 48 hours after the effective
93-21 date of this section or within 48 hours after the district is
93-22 officially created, whichever time comes first. For purposes of
93-23 this section, the words "officially created" mean the date and hour
93-24 in which the results of the election to confirm the creation of the
93-25 district are declared.
93-26 (e) Within seven days after there is a change in any of the
93-27 information contained in the district information form or map or
94-1 plat, the district shall file an amendment to the information form
94-2 or map setting forth the changes made.
94-3 (f) Any person who affirms the corrections and accuracy of
94-4 and acknowledges an information form, map, or plat, or any
94-5 amendment to an information form or map or plat which includes
94-6 information which is inaccurate or incorrect shall be guilty of a
94-7 misdemeanor and shall be fined not less than $100 nor more than
94-8 $1,000 for each violation.
94-9 (g) If a district fails to file the information required by
94-10 this section in the time required, the executive director may
94-11 request the state attorney general or the district or the county
94-12 attorney of the county in which the district is located to seek a
94-13 writ of mandamus to force the board to prepare and file the
94-14 necessary information.
94-15 (h) Any member of a governing board who wilfully fails or
94-16 refuses to join in filing an information form, map, plat, or
94-17 amendment to an information form, map, or plat under this section
94-18 shall be guilty of a misdemeanor and shall be fined not less than
94-19 $100 nor more than $1,000 for each violation. A member of a
94-20 governing board is presumed to have wilfully failed or refused to
94-21 join in the filing of an information form, map, plat, or amendment
94-22 to an information form, map, or plat if that member was present at
94-23 the meeting at which the information included in the information
94-24 form, map, plat, or amendment to the information form, map, or plat
94-25 was adopted.
94-26 (i) If a district covered by the provisions of this section
94-27 is dissolved, annexed to another local government, or is
95-1 consolidated with another district, the members of the board shall
95-2 file a statement of this fact together with the effective date of
95-3 the dissolution, annexation, or consolidation with the information
95-4 form. After a district is dissolved and the statement is filed
95-5 under this subsection, a person who sells or conveys property
95-6 within the dissolved district is no longer required to give notice
95-7 under Section 49.452 of this subchapter.
95-8 (j) A copy of all information forms, maps, plats, and
95-9 amendments to these filed under this section shall also be filed
95-10 with the executive director.
95-11 Sec. 49.456. BANKRUPTCY OF DISTRICTS; AUTHORITY OF
95-12 COMMISSION. (a) Notwithstanding Section 1, Chapter 207, General
95-13 Laws, Acts of the 44th Legislature, Regular Session, 1935 (Article
95-14 1024a, Vernon's Texas Civil Statutes), Section 1, Chapter 1, page
95-15 70, General Laws, Acts of the 46th Legislature, Regular Session,
95-16 1939 (Article 1024b, Vernon's Texas Civil Statutes); or any other
95-17 law of this state, a district created under Article III, Sections
95-18 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
95-19 Constitution, that is subject to the continuing supervision of the
95-20 commission, may not proceed under Chapter 9 of the Federal
95-21 Bankruptcy Code (11 U.S.C. Sections 901-946) or any other law
95-22 enacted by the Congress of the United States under federal
95-23 bankruptcy authority until the commission authorizes the district
95-24 to proceed under those laws by written order.
95-25 (b) A district requesting the commission's authorization to
95-26 proceed under Chapter 9 of the Federal Bankruptcy Code (11 U.S.C.
95-27 Sections 901-946) or any other federal bankruptcy law shall file an
96-1 application with the commission requesting authorization.
96-2 (c) The commission shall investigate the financial condition
96-3 of a district submitting an application under Subsection (b) of
96-4 this section, including its assets, liabilities, and sources of
96-5 revenues and may require a district to submit any information that
96-6 the commission considers material to a determination of whether
96-7 authorization to proceed in bankruptcy should be granted.
96-8 (d) The commission may not authorize a district to proceed
96-9 in bankruptcy unless the commission determines that the district
96-10 cannot, through the full exercise of its rights and powers under
96-11 the laws of this state, reasonably expect to meet its debts and
96-12 other obligations as they mature.
96-13 (e) The commission shall adopt and assess reasonable and
96-14 necessary fees adequate to recover the costs of the commission in
96-15 administering this section.
96-16 SECTION 4. Title 4, Water Code, is amended by adding Chapter
96-17 59 to read as follows:
96-18 CHAPTER 59. REGIONAL DISTRICTS
96-19 SUBCHAPTER A. DISTRICT CREATION
96-20 Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of
96-21 this chapter is to authorize creation and operation of regional
96-22 districts for water, sanitary sewer, drainage, and municipal solid
96-23 waste disposal under Article XVI, Section 59, of the Texas
96-24 Constitution.
96-25 (b) This chapter applies only in a county with a population
96-26 of at least 2.2 million, according to the most recent federal
96-27 census, or which borders a county with a population of at least 2.2
97-1 million, according to the most recent federal census.
97-2 Sec. 59.002. DEFINITIONS. (a) In this chapter:
97-3 (1) "District" means a district created or operating
97-4 under this chapter.
97-5 (2) "Municipal district" means a district created
97-6 under general law or a special Act operating under Chapter 51, 53,
97-7 or 54.
97-8 (3) "Bond" means bonds, coupons, notes, or any other
97-9 evidence of indebtedness.
97-10 (b) Other terms not defined by this chapter have the same
97-11 meaning assigned to those terms by Section 49.001 of this code.
97-12 Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
97-13 created under procedures provided by this section.
97-14 (b) The boards of two or more municipal districts, or of at
97-15 least 20 percent of the total number of municipal districts to be
97-16 included in the proposed district, whichever is greater, may
97-17 jointly petition the commission for creation of a district in the
97-18 territory described in the petition. The municipal districts must
97-19 present to the commission with the petition a petition from each
97-20 petitioning district adopted by a majority of the directors of the
97-21 district.
97-22 (c) The owner or owners of 2,000 or more contiguous acres
97-23 may petition the commission for creation of a district.
97-24 (d) The commissioners courts of one or more counties may
97-25 petition the commission for creation of a district in any territory
97-26 within the county.
97-27 (e) The governing body of any city may petition the
98-1 commission for creation of a district in any territory within the
98-2 city or its extraterritorial jurisdiction.
98-3 (f) Section 54.013 of this code applies to the composition
98-4 of districts created under this chapter.
98-5 Sec. 59.004. PURPOSES OF DISTRICT. A district shall be
98-6 created:
98-7 (1) to purchase, own, hold, lease, and otherwise
98-8 acquire sources of water supply;
98-9 (2) to build, operate, and maintain facilities for the
98-10 transportation of water;
98-11 (3) to sell water to cities and political subdivisions
98-12 of this state, to private business entities, and to individuals;
98-13 (4) to purchase, own, hold, lease, and otherwise
98-14 acquire equipment and mechanisms necessary for sanitary sewer and
98-15 wastewater treatment;
98-16 (5) to build, operate, and maintain facilities for
98-17 sanitary sewer and wastewater treatment;
98-18 (6) to transport and treat sanitary sewer and
98-19 wastewater effluent of cities and political subdivisions of this
98-20 state, and for private business entities or individuals;
98-21 (7) to purchase, own, hold, lease, and otherwise
98-22 acquire equipment and mechanisms for the drainage of storm water
98-23 and floodwater; and
98-24 (8) for the purposes outlined in Section 54.012 of
98-25 this code.
98-26 Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
98-27 Development Board requires that matching funds be provided as a
99-1 condition for receiving a loan or grant from the Texas Water
99-2 Development Board from research and planning funds, the matching
99-3 funds may not be provided through a guarantee of matching funds by
99-4 any individual who has a financial interest in the regional
99-5 district or who will receive any direct financial benefit from a
99-6 regional district project.
99-7 Sec. 59.006. PETITION. (a) To create a district, a
99-8 petition of any of the persons or entities described in Section
99-9 59.003 requesting creation must be filed with the commission.
99-10 (b) The petition must:
99-11 (1) describe the boundaries of the proposed district
99-12 by metes and bounds that adequately and completely circumscribe the
99-13 property so that there is complete closure of the property or by
99-14 lot and block numbers if there is a recorded map or plat or
99-15 subdivision survey of the area;
99-16 (2) state the general nature of the work proposed to
99-17 be done, the necessity of the work, and the cost of any projects of
99-18 the district as estimated by those filing the petition;
99-19 (3) state the name of each petitioner; and
99-20 (4) include a name of the district that is generally
99-21 descriptive of the locale of the district followed by the words
99-22 "Regional District."
99-23 (c) A proposed district may not have the same name as any
99-24 other district located in the state.
99-25 Sec. 59.007. CONSENT OF CITY. (a) Land in the corporate
99-26 limits of a city or in the extraterritorial jurisdiction of a city
99-27 may not be included in a district unless the city grants its
100-1 written consent by resolution or ordinance to the inclusion of the
100-2 land in the district.
100-3 (b) If the governing body of a city fails or refuses to
100-4 grant permission for the inclusion of land in its extraterritorial
100-5 jurisdiction in a district within 120 days after receipt of a
100-6 written request, the person or entity desiring to create the
100-7 district may petition the governing body of the city requesting the
100-8 city to make available the water, sewer, or drainage service
100-9 contemplated to be provided by the district.
100-10 (c) Failure of the governing body of the city and the
100-11 requesting district to execute a mutually agreeable contract
100-12 providing for the service requested within six months after receipt
100-13 of a request for consent constitutes authorization for the
100-14 inclusion of land in the district under this section.
100-15 Authorization for the inclusion of the land in the district under
100-16 this section means only authorization to initiate proceedings to
100-17 include the land in the district as otherwise provided by this
100-18 chapter.
100-19 (d) Sections 54.016(e), (f), (g), and (h) of this code apply
100-20 under this chapter.
100-21 Sec. 59.008. GRANTING OR REFUSING PETITION; EXCLUSION OF
100-22 TERRITORY. (a) If after the hearing of the petition the
100-23 commission finds that the petition conforms to the requirements of
100-24 this chapter and that the creation of the district would be of
100-25 benefit to the territory to be included in the district, the
100-26 commission shall issue an order granting the petition for creation.
100-27 If the commission finds that part of the territory included in the
101-1 proposed district will not benefit from the creation of the
101-2 district, the commission shall exclude that territory from the
101-3 proposed district and redefine the proposed district's boundaries
101-4 accordingly.
101-5 (b) If the commission finds that the petition does not
101-6 conform to the requirements of this chapter or that the proposed
101-7 projects are not of benefit to the territory in the proposed
101-8 district, the commission shall issue an order denying the petition
101-9 or allowing the petitioners to amend their petition and resubmit
101-10 it.
101-11 (c) A copy of the order of the commission granting or
101-12 denying a petition shall be mailed to each city having
101-13 extraterritorial jurisdiction in the county or counties in which
101-14 the district is to be located that has requested notice of hearings
101-15 as provided by Section 54.019 of this code.
101-16 (Sections 59.009-59.020 reserved for expansion
101-17 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
101-18 Sec. 59.021. DIRECTORS. (a) The commission shall appoint
101-19 temporary directors who shall serve until permanent directors are
101-20 elected.
101-21 (b) A petition requesting creation filed in accordance with
101-22 Section 59.006 may provide that directors be elected by precinct as
101-23 provided by Subsection (h) of this section.
101-24 (c) The board of directors is composed of five members
101-25 unless the petition requesting creation of the district requests
101-26 and the commission approves a board that consists of seven members.
101-27 (d) Permanent directors shall be elected in accordance with
102-1 Chapter 49 of this code.
102-2 (e) If the petition for creation has requested the election
102-3 of seven directors as provided by Subsection (c) of this section,
102-4 unless otherwise agreed, the three directors elected who received
102-5 the fewest number of votes, whether their election is by precinct
102-6 or at large, shall serve until the next directors' election
102-7 following the confirmation election and the four who received the
102-8 highest number of votes shall serve until the second directors'
102-9 election after the confirmation election.
102-10 (f) After the creation of the district, the persons or
102-11 entities that petitioned for creation or 50 qualified voters of the
102-12 district may file a petition with the commission requesting to
102-13 expand the district's board to seven members. If the commission
102-14 grants the petition, the commission shall appoint two temporary
102-15 directors. One temporary director shall serve until the next
102-16 directors' election and one shall serve until the next succeeding
102-17 directors' election. At each election one director shall be
102-18 elected to serve for a four-year term.
102-19 (g) If the board of directors of the district is expanded to
102-20 seven members, four directors shall constitute a quorum and a
102-21 concurrence of four directors is necessary in all matters
102-22 pertaining to the business of the district.
102-23 (h) A petition for the creation of a district may request
102-24 that the board be elected to represent a geographic area. If the
102-25 petition requesting creation of the district is granted, the
102-26 commission shall establish precincts from which the directors are
102-27 to be elected. In establishing the precincts the commission shall
103-1 attempt to have directors represent geographic areas with equal
103-2 numbers of people and shall endeavor to the extent possible to
103-3 cause the rights of minorities to be protected and to comply with
103-4 the federal Voting Rights Act (42 U.S.C. Sections 1971, 1973 et
103-5 seq.). Thereafter, the board of directors of the district shall
103-6 revise the precincts from time to time to cause them to comply with
103-7 the provisions of this subsection.
103-8 Sec. 59.022. ABILITY TO SET RATES. The district may charge
103-9 rates to persons and entities located outside the district's
103-10 boundaries on terms, rates, and charges the board of directors may
103-11 determine to be advisable. In setting rates for out-of-district
103-12 customers, the board shall set rates sufficient to enable it to
103-13 meet operation and maintenance expenses and to pay the principal of
103-14 and interest on debt issued in connection with providing service
103-15 and to provide a reasonable reserve for replacements to the
103-16 district. In setting rates, the district may take into
103-17 consideration past operation and debt service expenses.
103-18 Sec. 59.023. ISSUANCE OF BONDS. The district may issue
103-19 bonds for the purpose of purchasing, constructing, acquiring,
103-20 owning, operating, repairing, improving, or extending any district
103-21 works, improvements, facilities, plants, equipment, and appliances
103-22 needed to accomplish the purposes provided by Section 59.004 for
103-23 which a district is created, including works, improvements,
103-24 facilities, plants, equipment, and appliances needed to provide a
103-25 waterworks system, sanitary sewer system, storm sewer system, solid
103-26 waste disposal system, and parks and recreational facilities.
103-27 Prior to issuing bonds or other obligations, a confirmation
104-1 election must be held in accordance with Chapter 49 of this code,
104-2 and a majority of voters must approve the establishment of the
104-3 district.
104-4 Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS. (a)
104-5 A municipal district may be excluded from the district as provided
104-6 by this section.
104-7 (b) To be excluded, the board of directors of the municipal
104-8 district may adopt a resolution requesting exclusion by a majority
104-9 vote of its board of directors and shall file the petition with the
104-10 directors of the proposed district before the first confirmation
104-11 election.
104-12 (c) At the time of the district's confirmation election, a
104-13 separate voting precinct shall be used for the qualified voters in
104-14 each municipal district that has filed a petition requesting
104-15 exclusion. The votes in each precinct shall be tallied separately
104-16 to determine whether that municipal district will be excluded from
104-17 the district boundaries.
104-18 (d) If a majority of the votes cast in a municipal district
104-19 requesting exclusion vote against confirmation of the district, the
104-20 votes cast in the confirmation election shall not be counted for
104-21 the confirmation election, bond election, or maintenance tax
104-22 election, and that municipal district must be excluded from the
104-23 boundaries of the district by the board of directors of the
104-24 district at the time the results of the election are canvassed.
104-25 (e) After a confirmation election at which the district is
104-26 authorized to be created, the board of directors of the district
104-27 shall adopt an order redefining the boundaries of the district to
105-1 exclude those municipal districts petitioning for exclusion that
105-2 have voted not to confirm creation of the district.
105-3 (f) Before the creation hearing, any municipal district
105-4 located within the proposed district may petition the commission
105-5 for a separate voting precinct to be used within the boundaries of
105-6 the petitioning district at the time of the district's confirmation
105-7 election. If the commission grants the petition requesting a
105-8 separate voting precinct, Subsections (c) through (e) of this
105-9 section apply.
105-10 Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district
105-11 may be created pursuant to a petition granted by the commission, a
105-12 confirmation election must be held within the boundaries of the
105-13 proposed district.
105-14 (b) The directors appointed by the commission shall call and
105-15 hold the confirmation election in the manner provided for
105-16 conducting elections under Chapter 49 of this code. The provisions
105-17 of those sections relating to a director's election do not apply to
105-18 an election held under this section.
105-19 (c) If the creation of the district is defeated, subsequent
105-20 confirmation elections may not be held to confirm the creation of
105-21 the district.
105-22 (d) A bond election, maintenance tax election, and any other
105-23 election may be held at the same time and in conjunction with a
105-24 confirmation election.
105-25 (e) In this section, "district" means:
105-26 (1) a district as defined by Section 59.002(a)(1) of
105-27 this code; or
106-1 (2) a municipal district that proposes to provide
106-2 wholesale regional water, sewer services, or drainage services in a
106-3 county with a population of at least two million, according to the
106-4 most recent federal census, or a county that borders a county with
106-5 a population of at least two million, according to the most recent
106-6 federal census.
106-7 (Sections 59.026-59.050 reserved for expansion
106-8 SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
106-9 Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
106-10 LANDOWNERS. In addition to the method of adding land to a district
106-11 described in Section 59.052, defined areas of land, regardless of
106-12 whether they are contiguous to the district, may be annexed to the
106-13 district in the manner provided in Chapter 49.
106-14 Sec. 59.052. FILING OF PETITION. A petition requesting the
106-15 annexation of a defined area signed by a majority in value of the
106-16 owners of land in the defined area, as shown by the tax rolls of
106-17 the county or counties in which that area is located, signed by 50
106-18 landowners if the number of landowners is more than 50, signed by
106-19 the single landowner of 2,000 or more acres of land in the area, or
106-20 signed by a majority of the governing body of a municipal district,
106-21 a county, or a city requesting annexation, shall be filed with the
106-22 secretary of the board.
106-23 Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
106-24 BONDS. (a) If the board considers it advisable before the
106-25 issuance of any bonds, the board may dissolve the district and
106-26 liquidate the affairs of the district as provided by Sections
106-27 54.734 through 54.738 of this code.
107-1 (b) If a majority of the board finds at any time before the
107-2 authorization of bonds that the proposed district and its proposed
107-3 activities are for any reason impracticable or apparently cannot be
107-4 successfully and beneficially accomplished, the board may issue
107-5 notice of a hearing on a proposal to dissolve the district.
107-6 Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
107-7 order to dissolve the district may be judicially reviewed as
107-8 provided in Chapter 49.
107-9 (Sections 59.055-59.070 reserved for expansion
107-10 SUBCHAPTER D. MISCELLANEOUS
107-11 Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) In
107-12 this section, "district" has the meaning assigned by Section
107-13 59.002(a)(1) of this chapter.
107-14 (b) If a city annexes all or any part of the territory
107-15 within a district, or incorporates all or any part of any territory
107-16 within a district, the city shall succeed to the powers, duties,
107-17 assets, and obligations of the district as provided by this
107-18 chapter.
107-19 (c) On annexation of any part of the territory of a district
107-20 by a city or incorporation by a city of any part of the territory
107-21 of a district, the city shall assume a pro rata share of all debt
107-22 of the district payable in whole or in part by ad valorem taxes
107-23 incurred for water, sewer, or drainage purposes or any combination
107-24 of the three purposes. The percentage of the assumption shall be
107-25 determined by multiplying the total debt of the district payable in
107-26 whole or in part from taxes incurred for the stated purposes by a
107-27 fraction, the numerator of which is the assessed value of the
108-1 property to be annexed or incorporated based on the most recent
108-2 certified county property tax rolls at the time of annexation or
108-3 incorporation and the denominator of which is the total assessed
108-4 value of the property of the district based on the most recent
108-5 certified county property tax rolls at the time of annexation or
108-6 incorporation.
108-7 (d) After annexation by a city of a portion of the territory
108-8 of a district or incorporation over any part of the territory of a
108-9 district, the district may not levy taxes on that territory, and
108-10 the territory is no longer considered a part of the district for
108-11 any purpose.
108-12 (e) If any district's debt payable in whole or in part from
108-13 ad valorem taxes is assumed by a city, the governing body of the
108-14 city shall levy and cause to be collected taxes on all taxable
108-15 property within the city or provide other funds sufficient to pay
108-16 the city's pro rata share of the principal of and interest on that
108-17 debt as it becomes due and payable.
108-18 (f) If a city annexes or incorporates the entire territory
108-19 of the district, the district shall be dissolved in accordance with
108-20 Sections 43.074, 43.075, and 43.081, Local Government Code, if the
108-21 district is located in one city or Sections 43.076-43.079, Local
108-22 Government Code, if the district is located in more than one city.
108-23 (g) Section 43.071, Local Government Code, does not apply to
108-24 the annexation of a district created pursuant to this chapter.
108-25 Sec. 59.072. OTHER LAWS. (a) Except as specifically
108-26 provided by this chapter, Sections 54.018, 54.019(a), (b), (c), and
108-27 (d), 54.020, 54.021, 54.023, 54.024, 54.201, 54.205, 54.207 through
109-1 54.209, 54.502 through 54.506, 54.507(b) and (c), 54.509 through
109-2 54.512, 54.514, 54.515, 54.517, 54.518, 54.520, 54.521, 54.601
109-3 through 54.604, and 54.735 through 54.737 of this code apply under
109-4 this chapter.
109-5 (b) Section 54.019(e) of this code does not apply to a
109-6 district governed by this chapter.
109-7 SECTION 5. Section 51.0711(a), Water Code, is amended to
109-8 read as follows:
109-9 (a) The governing body of a municipality that enters a
109-10 contract or agreement with a district located in more than one
109-11 county to jointly construct, acquire, operate, or maintain a
109-12 regional wastewater system is entitled to appoint a special
109-13 director to the board of the district. Section 51.072 <of this
109-14 code> does not apply to a special director.
109-15 SECTION 6. Section 51.072, Water Code, is amended to read as
109-16 follows:
109-17 Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified
109-18 for election as a director, a person must be a resident of the
109-19 state, own land subject to taxation in the district, and be at
109-20 least 18 <21> years of age. Section 49.052 does not apply to a
109-21 district governed by this chapter whose principal purpose is
109-22 providing water for irrigation.
109-23 SECTION 7. Sections 51.076(a) and (f), Water Code, are
109-24 amended to read as follows:
109-25 (a) In a district created after June 18, 1967, with
109-26 boundaries coterminous with the boundaries of a county, the
109-27 commissioners court may provide in the order granting the petition
110-1 for creation that the directors are to be selected either as
110-2 provided in Section 49.102 <51.073 of this code> or by the
110-3 "commissioners precinct method," which provides for the election of
110-4 two directors from each commissioners precinct in the county and
110-5 the election of one director from the county at large.
110-6 (f) To be qualified for election as a director from the
110-7 county at large, a person must possess the qualifications specified
110-8 in Section 50.052 <51.072 of this code>.
110-9 SECTION 8. Section 51.750(d), Water Code, is amended to read
110-10 as follows:
110-11 (d) The temporary directors of each of the resulting
110-12 districts must qualify as directors of the district pursuant to
110-13 Section <Sections> 51.072 <and 51.073 of this code> within the
110-14 period of 90 days after the election approving the division of the
110-15 original district and shall assume their offices at the expiration
110-16 of the 90-day period.
110-17 SECTION 9. Section 52.005, Water Code, is amended by adding
110-18 Subsection (c) to read as follows:
110-19 (c) Section 49.052, Section 49.216, and Sections
110-20 49.301-49.308 do not apply to districts governed by this chapter.
110-21 SECTION 10. Section 52.115, Water Code, is amended to read
110-22 as follows:
110-23 Sec. 52.115. MEETINGS. <(a)> The board shall hold regular
110-24 quarterly meetings. It may hold meetings at other times as
110-25 required for the business of the district.
110-26 <(b) Any person may attend a meeting of the board and may
110-27 present in an orderly manner matters for the board's consideration.>
111-1 <(c) Meetings shall be conducted and notice of meetings
111-2 shall be posted in accordance with the open meetings law, Chapter
111-3 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
111-4 6252-17, Vernon's Texas Civil Statutes).>
111-5 SECTION 11. Section 52.157, Water Code, is amended to read
111-6 as follows:
111-7 Sec. 52.157. EMINENT DOMAIN. <(a) Except as provided by
111-8 Subsection (b) of this section, a district may exercise the power
111-9 of eminent domain to acquire by condemnation fee simple or other
111-10 interest in property located inside the district if the property
111-11 interest is necessary to the exercise of the authority conferred by
111-12 this chapter.>
111-13 <(b)> The power of eminent domain <authorized in this
111-14 section> may not be used for the condemnation of land for the
111-15 purpose of acquiring rights to underground water or of water or
111-16 water rights.
111-17 <(c) The district must exercise the power of eminent domain
111-18 in the manner provided by Chapter 21, Property Code, but the
111-19 district is not required to deposit in the trial court money or a
111-20 bond as provided by Section 21.021(a), Property Code.>
111-21 <(d) In a condemnation proceeding brought by a district,
111-22 the district is not required to pay in advance or give bond or
111-23 other security for costs in the trial court, to give bond for the
111-24 issuance of a temporary restraining order or a temporary
111-25 injunction, or to give bond for costs or supersedeas on an appeal
111-26 or writ of error.>
111-27 <(e) In exercising the power of eminent domain, if the
112-1 district requires relocating, raising, lowering, rerouting,
112-2 changing the grade, or altering the construction of any railroad,
112-3 highway, pipeline, or electric transmission or distribution,
112-4 telegraph, or telephone lines, conduits, poles, or facilities, the
112-5 district must bear the actual cost of relocating, raising,
112-6 lowering, rerouting, changing the grade, or altering the
112-7 construction to provide comparable replacement without enhancement
112-8 of facilities after deducting the net salvage value derived from
112-9 the old facility.>
112-10 SECTION 12. Sections 52.294(c), (d), and (e), Water Code,
112-11 are amended to read as follows:
112-12 (c) <Notice of an election must be given as provided by
112-13 Section 52.059(c) of this code for creation elections.>
112-14 <(d)> At an election to authorize bonds or notes payable
112-15 wholly from ad valorem taxes, the ballots must be printed to
112-16 provide for voting for or against the proposition: "The issuance
112-17 of (bonds or notes) and the levy of taxes for payment of the (bonds
112-18 or notes)." At any election to authorize bonds or notes payable
112-19 from both ad valorem taxes and revenues, the ballots must be
112-20 printed to provide for voting for or against: "The issuance of
112-21 (bonds or notes) and the pledge of net revenues and the levy of ad
112-22 valorem taxes adequate to provide for the payment of the (bonds or
112-23 notes)."
112-24 (d) <(e)> The board shall canvass the returns and declare
112-25 the results of the election. If a majority of the votes cast at
112-26 the election favor the issuance of the bonds or notes, the bonds or
112-27 notes may be issued by the board, but if a majority of the votes
113-1 cast at the election do not favor issuance of the bonds or notes,
113-2 the bonds or notes may not be issued.
113-3 SECTION 13. Section 53.040, Water Code, is amended to read
113-4 as follows:
113-5 Sec. 53.040. Elected Supervisors Take Office. If the
113-6 election results in a division of the district, the five candidates
113-7 receiving the most votes in each new district shall be declared
113-8 elected. They shall immediately qualify in accordance with Section
113-9 49.055 of this code <by taking the constitutional oath of office
113-10 and shall file the oath with the county clerk>.
113-11 SECTION 14. Section 53.042, Water Code, is amended to read
113-12 as follows:
113-13 Sec. 53.042. Newly Elected Supervisors--Term of Office. The
113-14 newly elected supervisors hold office until the new district's next
113-15 supervisors election <first general election and then until their
113-16 successors are elected and have qualified>.
113-17 SECTION 15. Section 53.062, Water Code, is amended to read
113-18 as follows:
113-19 Sec. 53.062. Board of Supervisors. A district created under
113-20 this chapter is governed by a board of five elected supervisors.
113-21 <Specific provisions for the election of supervisors are found in
113-22 Section 53.021, Section 53.086, and Section 53.0861 of this code.>
113-23 SECTION 16. Section 53.088, Water Code, is amended to read
113-24 as follows:
113-25 Sec. 53.088. Status of the District. <(a)> A district is:
113-26 (1) a governmental agency;
113-27 (2) a body politic and corporate; and
114-1 (3) a defined district within the meaning of Article
114-2 XVI, Section 59, of the Texas Constitution.
114-3 <(b) A district may, through its board, sue and be sued in
114-4 any court of this state in the name of the district. All courts of
114-5 this state shall take judicial notice of the creation of a
114-6 district. A district shall contract and be contracted within the
114-7 name of the district.>
114-8 SECTION 17. Section 53.172, Water Code, is amended to read
114-9 as follows:
114-10 Sec. 53.172. Ordering Bond Election. After the creation of
114-11 a district and the qualification of the supervisors, the board may
114-12 order an election in the district to authorize a bond issue. <The
114-13 board shall set the day for the election, which must be held during
114-14 the period beginning on the 20th day and ending with the 30th day
114-15 after the day of the order.> At this election, the board shall
114-16 submit only a proposition authorizing the issuance of bonds and the
114-17 levy of a tax to pay the bonds. The ballots shall be printed to
114-18 allow for voting for or against the proposition: "The issuance of
114-19 bonds and the levy of taxes to pay the bonds."
114-20 SECTION 18. Section 54.025, Water Code, is amended to read
114-21 as follows:
114-22 Sec. 54.025. Qualification of Temporary Directors. After a
114-23 district has been organized, each temporary director shall execute
114-24 a <his> bond in accordance with the provisions of Section 49.055
114-25 <54.116 of this code> and shall take the <his> oath of office, and
114-26 the board shall meet and organize.
114-27 SECTION 19. Section 54.036, Water Code, is amended to read
115-1 as follows:
115-2 Sec. 54.036. Directors to Continue Serving. The existing
115-3 board of a district converted to a municipal utility district under
115-4 the provisions of this chapter shall continue to serve as the board
115-5 of the converted district <until the first Saturday in April
115-6 following conversion of the district, at which time five directors
115-7 shall be elected to serve for such period of time and in the same
115-8 manner as provided in Section 54.029 of this code for directors
115-9 first elected for a district>.
115-10 SECTION 20. Section 54.203, Water Code, as amended by H.B.
115-11 No. 2876, Acts of the 72nd Legislature, Regular Session, 1991, is
115-12 amended to read as follows:
115-13 Sec. 54.203. MUNICIPAL Solid Waste. A district is
115-14 authorized to purchase, construct, acquire, own, operate, maintain,
115-15 repair, improve, extend, or establish a municipal solid waste
115-16 collection and disposal system, including recycling, inside and
115-17 outside the district and make proper charges for it. A district
115-18 may require use of such services as a condition for receiving other
115-19 district services. A district may enter into an exclusive contract
115-20 with a private entity to provide such services to all land and
115-21 persons within its boundaries.
115-22 SECTION 21. Section 54.729(a), Water Code, is amended to
115-23 read as follows:
115-24 (a) After the board of each district has agreed on the terms
115-25 and conditions of consolidation, which may include the assumption
115-26 by each district of the <other district's> bonds, notes, or other
115-27 obligations and voted but unissued bonds of the other consolidating
116-1 districts payable in whole or in part from taxation, the levy of
116-2 taxes to pay for the bonds, and adoption of a name for the
116-3 consolidated district, the board shall order an election in each
116-4 district to determine whether the districts should be consolidated.
116-5 SECTION 22. Section 54.730(a), Water Code, is amended to
116-6 read as follows:
116-7 (a) After two or more districts are consolidated, they
116-8 become one district and are governed as one district, except for
116-9 the payment of debts created before consolidation if the conditions
116-10 of consolidation do not provide for the assumption by each district
116-11 of the <other's> bonds, notes, or other obligations and voted but
116-12 unissued bonds of the other consolidating districts.
116-13 SECTION 23. Section 54.732, Water Code, is amended to read
116-14 as follows:
116-15 Sec. 54.732. ASSESSMENT AND COLLECTION OF TAXES. After
116-16 consolidation, the district shall assess and collect taxes on
116-17 property in the original districts to pay debts created by the
116-18 original districts unless each district has assumed the <other
116-19 district's> bonds, notes, or other indebtedness payable in whole or
116-20 in part from taxation of the other consolidating districts.
116-21 SECTION 24. Section 54.733, Water Code, is amended to read
116-22 as follows:
116-23 Sec. 54.733. VOTED BUT UNISSUED BONDS. In the event any
116-24 consolidating <either> district has voted but unissued bonds
116-25 payable in whole or in part from taxation and the consolidated
116-26 district assumed the voted but unissued bonds and the consolidated
116-27 district was authorized to levy taxes to pay for the bonds, then
117-1 the consolidated district shall be authorized to issue the voted
117-2 but unissued bonds in the name of the consolidated district and
117-3 levy a uniform tax on all taxable property in the consolidated
117-4 district to pay for the bonds.
117-5 SECTION 25. Chapter 54, Water Code, is amended by adding
117-6 Sections 54.739-54.747 to read as follows:
117-7 Sec. 54.739. Substituting Land of Equal Acreage and Value.
117-8 After the district is organized and acquires facilities with which
117-9 to function for the purposes for which it was organized, and votes,
117-10 issues and sells bonds for such purposes, land within the district
117-11 boundaries subject to taxation which does not need or utilize the
117-12 services of the district, may be excluded and other land not within
117-13 the boundaries of the district, may be included within the
117-14 boundaries of the district as provided by the provisions of this
117-15 section and Sections 54.740-54.747 subject to commission approval.
117-16 Sec. 54.740. Requisites for Application for Exclusion. The
117-17 owner(s) of land in the district not receiving services from the
117-18 district may apply for its exclusion from the district boundaries
117-19 if all taxes levied and assessed by the district on the land to be
117-20 excluded, have been fully paid. The application shall set forth
117-21 facts concerning the land proposed for exclusion, including
117-22 evidence of the reasonable market value of the land, and state that
117-23 the other requisites for the exclusion of the land and substitution
117-24 of other land have been fulfilled or will be fulfilled at the
117-25 hearing upon the application. The application shall be verified
117-26 and acknowledged in a recordable form as conveyances of real
117-27 property.
118-1 Sec. 54.741. Inclusion of Substitute Land Required. An
118-2 application for exclusion can only be considered by the board if an
118-3 application is filed by the owner(s) of other land lying outside
118-4 the boundaries of the district seeking inclusion of land which can
118-5 be served in a practical manner by the district of at least equal
118-6 value to the land proposed for exclusion, and such land must be
118-7 included within the district boundaries and taxing jurisdiction of
118-8 the district simultaneously with the exclusion of the land proposed
118-9 for exclusion, and such included land must be of sufficient acreage
118-10 to avoid an impairment of the security for payment of voted and
118-11 issued bonds and any other contract obligations payable or secured,
118-12 in whole or in part, from ad valorem taxes or revenues of the
118-13 district.
118-14 Sec. 54.742. Application for Inclusion. The application
118-15 submitted by owner(s) of land proposed for inclusion, shall set
118-16 forth that the owner(s) of the new land assumes the payment of all
118-17 taxes, assessments and fees levied on the land and assessed by the
118-18 district after the date the land is included in the district. The
118-19 application shall also set forth an agreement by the owner(s) of
118-20 the land proposed for inclusion that the land will be subject to
118-21 future taxes for bond tax and other assessments and fees levied and
118-22 assessed by the district and be subject to the same liens and
118-23 provisions and statutes governing all other lands in the district
118-24 as though the land had been incorporated originally in the
118-25 district. The application for inclusion shall be verified and
118-26 acknowledged in a recordable form as conveyances of real property.
118-27 Sec. 54.743. Notice of Hearing and Hearing Procedures. The
119-1 board shall give notice of the hearing on the applications for
119-2 exclusion and inclusion in conformity with the notice and hearing
119-3 requirements otherwise applicable to exclusions or additions of
119-4 land. The board at such hearing shall hear all interested parties
119-5 and all evidence in connection with the applications.
119-6 Sec. 54.744. Impairment of Security. For purposes of the
119-7 board's consideration of the applications, the lands proposed for
119-8 inclusion shall be deemed to be sufficient to avoid an impairment
119-9 of the security for payment of obligations of the district if:
119-10 (1) according to the county tax rolls, the taxable
119-11 value of such included lands equals or exceeds the taxable value of
119-12 the excluded lands;
119-13 (2) the estimated costs of providing district
119-14 facilities and services to such included lands is equal to or less
119-15 than the estimated costs of providing district facilities and
119-16 services to the excluded lands; and
119-17 (3) the district's outstanding bonds or contract
119-18 obligations are payable in whole or in part by a pledge of net
119-19 revenues from the ownership or operation of the district's
119-20 facilities, the projected net revenues to be derived from the lands
119-21 to be included during the succeeding 12-month period, as determined
119-22 by the district's engineer, equals or exceeds the projected net
119-23 revenues which would otherwise have been derived from the lands to
119-24 be excluded during the same period.
119-25 Sec. 54.745. Board's Resolution to Substitute. If the board
119-26 finds that all the conditions provided for the exclusion of land
119-27 and inclusion of other land in the district exist and that it is in
120-1 the best interest of the district to grant such applications, it
120-2 may adopt and enter in its minutes a resolution and order excluding
120-3 all or part of the land proposed for exclusion and including all or
120-4 part of the land proposed for inclusion. Prior to the effective
120-5 date of the exclusion and inclusion of lands, the district shall
120-6 have received payment of all fees, charges, assessments, taxes,
120-7 together with any associated penalties and interest due or overdue
120-8 in the respect to the lands excluded and if no ad valorem taxes or
120-9 fees have yet been established by the district for the current
120-10 year, an amount determined by the district to equal the estimated
120-11 ad valorem taxes and standby fees to be established by the district
120-12 for the current year, prorated to the date of exclusion with
120-13 respect to such excluded lands, shall also be paid.
120-14 Sec. 54.746. Liability of Excluded and Included Land. The
120-15 land excluded from the district is free from any lien or liability
120-16 created on the excluded land by reason of its having been included
120-17 in the district. Land included in the district is subject to all
120-18 laws, liens, and provisions governing the district and the land in
120-19 the district.
120-20 Sec. 54.747. Service to Included Land. The district has the
120-21 same right and obligation to furnish services to the included land
120-22 that it previously had to furnish to the excluded land.
120-23 SECTION 26. Section 55.101, Water Code, is amended to read
120-24 as follows:
120-25 Sec. 55.101. Board of Directors. The governing body of a
120-26 district is a <that> board of five directors.
120-27 SECTION 27. Section 55.102, Water Code, is amended to read
121-1 as follows:
121-2 Sec. 55.102. Qualifications of Directors. To be qualified
121-3 for election as a director, a person must be a resident of the
121-4 state, own land subject to taxation in the district, and be at
121-5 least 18 <more than 21> years of age at the time of the election.
121-6 Section 49.052 does not apply to a district governed by this
121-7 chapter whose principal purpose is providing water for irrigation.
121-8 SECTION 28. Section 55.721, Water Code, is amended to read
121-9 as follows:
121-10 Sec. 55.721. Exclusion of Nonagricultural and Nonirrigable
121-11 Land From District. Land located in the district which is
121-12 classified as nonagricultural and nonirrigable may be excluded from
121-13 the district in the manner provided in Subchapter J, Chapter 49
121-14 <Sections 51.702-51.713 of this code>.
121-15 SECTION 29. Section 56.064, Water Code, is amended to read
121-16 as follows:
121-17 Sec. 56.064. Election of Directors. (a) On petition of a
121-18 majority of the real property taxpayers of a district requesting an
121-19 election of district directors, the commissioners court shall
121-20 immediately order an election to be held at the earliest legal
121-21 time. The election shall be held as other elections under Chapter
121-22 49 <this chapter>.
121-23 (b) <The commissioners court shall declare the three persons
121-24 receiving the highest number of votes elected, and if two or more
121-25 persons tie for the third highest vote, the commissioners court
121-26 shall elect the third director from those tying for the place.>
121-27 <(c) On qualifying for office, directors elected under this
122-1 section are the legal and rightful directors of the district within
122-2 the full meaning and purpose of this law.>
122-3 <(d) The first elected directors of the district hold office
122-4 until the next regular directors' election, and subsequent
122-5 directors of the district are elected every four years except as
122-6 provided by Subsection (e) of this section.>
122-7 <(e)> The first elected directors of the districts in
122-8 Calhoun, Matagorda, and Victoria Counties hold office until May 15
122-9 of the next succeeding odd-numbered year. Subsequent directors of
122-10 the district are elected every two years on the first Saturday in
122-11 May in each odd-numbered year, for a term of two years beginning on
122-12 May 15 following the election.
122-13 SECTION 30. Section 57.053, Water Code, is amended to read
122-14 as follows:
122-15 Sec. 57.053. Term of Office, Removal, and Succession. (a)
122-16 <Each director shall hold office for a period of two years and
122-17 until his successor is appointed and has qualified.>
122-18 <(b)> A vacancy on the board shall be filled by majority
122-19 vote of the commissioners court <of jurisdiction>, and the court
122-20 shall appoint directors so that the board will always have full
122-21 membership.
122-22 (b) <(c)> The commissioners court <of jurisdiction>, by
122-23 majority vote, may remove an appointed <a> member of the board.
122-24 SECTION 31. Section 57.060, Water Code, is amended to read
122-25 as follows:
122-26 Sec. 57.060. Petition. Before an election is held under
122-27 Section 57.057 of this code, a petition, signed by at least 100
123-1 <25> electors in the district <each county commissioners precinct>
123-2 who are qualified to vote <at an election for directors if a
123-3 countywide election, or by 50 electors if less than countywide>,
123-4 shall be presented to the district <county judge> requesting that
123-5 an election be held in the district to determine whether or not
123-6 directors for the district should be elected and, if so, to elect
123-7 directors to serve until the next regular director election <for
123-8 state and county officers>. The petition shall include the name of
123-9 one or more nominees for each director's position.
123-10 SECTION 32. Section 57.061, Water Code, is amended to read
123-11 as follows:
123-12 Sec. 57.061. Procedure for Election. <(a)> After the
123-13 petition is presented under Section 57.060 of this code, the board
123-14 <county judge> shall order an election <to determine the
123-15 propositions presented in the position. The election shall be held
123-16 not less than 30 days from the date of the order calling the
123-17 election, or the propositions may be determined at a general
123-18 election>.
123-19 <(b) The election order shall designate the polling places
123-20 which shall be the same as the polling places used in the last
123-21 general election in the county, if a countywide election is held.>
123-22 <(c) The county clerk shall issue notice of the election and
123-23 shall have the notice published in a newspaper of general
123-24 circulation in the county once a week for two consecutive weeks.
123-25 The first publication must not be less than 14 days before the day
123-26 of the election.>
123-27 <(d) The sheriff shall post a copy of the notice at least 20
124-1 days before the day of the election at each polling place
124-2 designated in the election order.>
124-3 <(e) The district shall pay all expenses incident to calling
124-4 and holding the election.>
124-5 SECTION 33. Section 57.207, Water Code, is amended to read
124-6 as follows:
124-7 Sec. 57.207. Declaring Result of Election. <(a)
124-8 Immediately after an election under this chapter, the officials
124-9 holding the election shall return the result to the commissioners
124-10 court of jurisdiction.>
124-11 <(b) The election officials shall return the ballot boxes to
124-12 the clerk of the commissioners court of jurisdiction, who shall
124-13 safely keep the boxes and deliver them with the returns of the
124-14 election to the commissioners court of jurisdiction at its next
124-15 regular or special session.>
124-16 <(c) The commissioners court of jurisdiction at its first
124-17 session after the election shall canvass the vote and the returns.
124-18 If the proposition submitted has been approved by a majority of the
124-19 electors of the district voting at the election, the commissioners
124-20 court of jurisdiction shall declare the result to be in favor of
124-21 the proposition, but if the proposition is not approved by the
124-22 electors of the district, the commissioners court of jurisdiction
124-23 shall declare the result to be against the proposition.>
124-24 <(d)> The board <commissioners court of jurisdiction> shall
124-25 enter an order declaring the election result in its minutes.
124-26 SECTION 34. Section 58.072, Water Code, is amended to read
124-27 as follows:
125-1 Sec. 58.072. Qualifications. To be qualified for election
125-2 as a director, a person must be a resident of the state, be the
125-3 owner of record of fee simple title to land in the district, and be
125-4 at least 18 years of age. Section 49.052 does not apply to a
125-5 district governed by this chapter.
125-6 SECTION 35. Section 65.103, Water Code, is amended to read
125-7 as follows:
125-8 Sec. 65.103. Election of Directors; Terms of Office. (a)
125-9 The persons receiving the highest number of votes at each election
125-10 shall serve as directors of the district.
125-11 (b) The terms of the directors may run concurrently, or may
125-12 be staggered, but in any event, the term of office of a director
125-13 may not exceed three years.
125-14 (c) The method for determining the initial terms for each of
125-15 the directors constituting the initial board shall be determined by
125-16 the temporary directors, and the terms must be clearly stated on
125-17 the ballot for the confirmation and director's election. At
125-18 subsequent elections in each following year in which there is an
125-19 election, the election must be held on the same uniform election
125-20 date as the confirmation and directors' election, and the terms of
125-21 the directors being elected must be stated on the ballot.
125-22 <(d) The election of directors must be held in a district on
125-23 one of the dates provided by Section 9b, Texas Election Code
125-24 (Article 2.01b, Vernon's Texas Election Code).>
125-25 <(e) The permanent directors may assign a position number to
125-26 each director's office, and each director subsequently shall be
125-27 elected by position and not at large.>
126-1 SECTION 36. Chapter 65, Water Code, is amended by adding
126-2 Section 65.235 to read as follows:
126-3 Sec. 65.235. Prohibition on Assessment or Collection of
126-4 Taxes. Section 49.107 does not apply to a district created under
126-5 this chapter.
126-6 SECTION 37. Subchapter A, Chapter 60, Water Code, is amended
126-7 by adding Section 60.002 to read as follows:
126-8 Sec. 60.002. AUDIT. Subchapter G, Chapter 49, related to
126-9 Audit of Districts, shall apply to districts governed by this
126-10 chapter.
126-11 SECTION 38. Subchapter M, Chapter 60, Water Code, is amended
126-12 by adding Section 60.350 to read as follows:
126-13 Sec. 60.350. BONDS. Section 49.181, related to the
126-14 Authority of Commission Over Issuance of District Bonds, and
126-15 Section 49.183, related to Bond Sales, shall apply to bonds
126-16 supported by taxes and issued by districts governed by this
126-17 chapter.
126-18 SECTION 39. Section 66.101, Water Code, is amended to read
126-19 as follows:
126-20 Sec. 66.101. Board of Directors. A district shall be
126-21 governed by a board of directors composed of five members, who are
126-22 elected as provided in Chapter 49 <by this chapter>.
126-23 SECTION 40. Section 66.310(b), Water Code, is amended to
126-24 read as follows:
126-25 (b) Bonds issued by a district and projects and improvements
126-26 of the district that are provided through the issuance of bonds are
126-27 governed by Chapter 49 <Sections 54.516 and 54.517 of this code>.
127-1 SECTION 41. The following sections of Chapter 51, Water
127-2 Code, are repealed: Sections 51.033, 51.034, 51.073 through
127-3 51.074, 51.077 through 51.084, 51.0851, 51.087 through 51.089,
127-4 51.091 through 51.101, 51.122 through 51.124, 51.126, 51.132,
127-5 51.136 through 51.138, 51.140 through 51.146, 51.149 through
127-6 51.155, 51.183, 51.191 through 51.193, 51.221 through 51.224,
127-7 51.231 through 51.279, 51.354 through 51.363, 51.371 through
127-8 51.375, 51.412, 51.416 through 51.418, 51.421, 51.422, 51.4321,
127-9 51.4371, 51.601, 51.691 through 51.701, 51.714 through 51.731, and
127-10 51.737 through 51.747.
127-11 SECTION 42. The following sections of Chapter 52, Water
127-12 Code, are repealed: Sections 52.104, 52.107 through 52.114, 52.116
127-13 through 52.118, 52.119 through 52.121, 52.251 through 52.253,
127-14 52.259 through 52.262, and 52.297.
127-15 SECTION 43. The following sections of Chapter 53, Water
127-16 Code, are repealed: Sections 53.020, 53.022, 53.023, 53.025
127-17 through 53.028, 53.035 through 53.039, 53.064, 53.065, 53.067
127-18 through 53.070, 53.0721, 53.076, 53.077, 53.084 through 53.087,
127-19 53.089, 53.090, 53.105, 53.106, 53.108 through 53.111, 53.114,
127-20 53.117 through 53.120, 53.123 through 53.125, 53.141 through
127-21 53.144, 53.147, 53.148, 53.173 through 53.175, 53.1791, 53.197,
127-22 53.198, and 53.231 through 53.273.
127-23 SECTION 44. The following sections of Chapter 54, Water
127-24 Code, are repealed: Sections 54.026 through 54.029, 54.103 through
127-25 54.126, 54.202, 54.204, 54.210 through 54.233, 54.301 through
127-26 54.312, 54.506, 54.507(a), 54.509, 54.5121, 54.513, 54.516, 54.517,
127-27 54.519, 54.701 through 54.727.
128-1 SECTION 45. The following sections of Chapter 55, Water
128-2 Code, are repealed: Sections 55.030, 55.033 through 55.036,
128-3 55.052, 55.104 through 55.106, 55.109, 55.111 through 55.116,
128-4 55.118 through 55.128, 55.162, 55.164, 55.168 through 55.184,
128-5 55.189 through 55.191, 55.199, 55.203, 55.291 through 55.304,
128-6 55.331, 55.423 through 55.430, 55.451, 55.453, 55.492 through
128-7 55.496, 55.503, 55.506, 55.711 through 55.720, and 55.722 through
128-8 55.749.
128-9 SECTION 46. The following sections of Chapter 56, Water
128-10 Code, are repealed: Sections 56.027 through 56.031, 56.062,
128-11 56.063, 56.065 through 56.068, 56.076 through 56.081, 56.083,
128-12 56.113, 56.114, 56.119, 56.129 through 56.134, 56.136, 56.138,
128-13 56.139, 56.183, 56.184, 56.2045, and 56.714 through 56.725.
128-14 SECTION 47. The following sections of Chapter 57, Water
128-15 Code, are repealed: Sections 57.052, 57.054 through 57.056, 57.062
128-16 through 57.070, 57.095 through 57.099, 57.106, 57.107, 57.109,
128-17 57.110, 57.112 through 57.115, 57.119, 57.120, 57.171 through
128-18 57.174, 57.178, 57.202 through 57.206, 57.2075, 57.209 through
128-19 57.211, and 57.276 through 57.278.
128-20 SECTION 48. The following sections of Chapter 58, Water
128-21 Code, are repealed: Sections 58.033, 58.034, 58.073, 58.074
128-22 through 58.083, 58.085 through 58.088, 58.090 through 58.100,
128-23 58.123, 58.124, 58.132, 58.135, 58.139 through 58.149, 58.151,
128-24 58.152, 58.169, 58.179, 58.187 through 58.189, 58.221 through
128-25 58.224, 58.261, 58.317, 58.354 through 58.362, 58.442, 58.451,
128-26 58.452, 58.601, 58.691 through 58.701, and 58.714 through 58.725.
128-27 SECTION 49. The following sections of Chapter 65, Water
129-1 Code, are repealed: Sections 65.024 through 65.029, 65.104 through
129-2 65.122, 65.202, 65.204, 65.210 through 65.234, 65.301, 65.401
129-3 through 65.409, 65.509, 65.512, and 65.514, and 65.701 through
129-4 65.722.
129-5 SECTION 50. The following sections of Chapter 66, Water
129-6 Code, are repealed: Sections 66.022 through 66.029, 66.103 through
129-7 66.117, 66.119, 66.120, 66.203 through 66.205, 66.208 through
129-8 66.215, 66.301, 66.302, 66.305 through 66.309, 66.312, and 66.323.
129-9 SECTION 51. (a) This Act takes effect as provided by this
129-10 section.
129-11 (b) Section 49.103(b), Water Code, shall govern all
129-12 elections held after December 31, 1993. Directors elected at any
129-13 election held between January 1, 1990, and April 30, 1990, shall
129-14 serve until the January 1994 election. Directors elected at any
129-15 election held between May 1, 1990, and December 31, 1990, shall
129-16 serve until the May 1994 election. Directors elected at any
129-17 election held between January 1, 1991, and April 30, 1991, shall
129-18 serve until the January 1994 election. Directors elected at any
129-19 election held between May 1, 1991, and July 31, 1991, shall serve
129-20 until the May 1994 election. Directors elected at any election
129-21 held between August 1, 1991, and December 31, 1991, shall serve
129-22 until the May 1996 election. Directors elected at any election
129-23 held between January 1, 1992, and April 30, 1992, shall serve until
129-24 the January 1996 election. Directors elected at any election held
129-25 between May 1, 1992, and December 31, 1992, shall serve until the
129-26 May 1996 election. Directors elected at any election held between
129-27 January 1, 1993, and April 30, 1993, shall serve until the January
130-1 1996 election. Directors elected at any election held between May
130-2 1, 1993, and July 31, 1993, shall serve until the May 1994
130-3 election. Directors elected at any election held between August 1,
130-4 1993, and December 31, 1993, shall serve until the May 1996
130-5 election. Directors whose terms expire prior to the election date
130-6 set by this section shall continue to serve until their successors
130-7 have been elected and qualified.
130-8 (c) All other provisions of this Act take effect September
130-9 1, 1993.
130-10 SECTION 52. The importance of this legislation and the
130-11 crowded condition of the calendars in both houses create an
130-12 emergency and an imperative public necessity that the
130-13 constitutional rule requiring bills to be read on three several
130-14 days in each house be suspended, and this rule is hereby suspended,
130-15 and that this Act take effect and be in force according to its
130-16 terms, and it is so enacted.