1-1 By: Yost, et al. (Senate Sponsor - Armbrister) H.B. No. 1266
1-2 (In the Senate - Received from the House May 14, 1993;
1-3 May 18, 1993, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 26, 1993, reported favorably, as
1-5 amended, by the following vote: Yeas 6, Nays 1; May 26, 1993, sent
1-6 to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Armbrister x
1-10 Leedom x
1-11 Carriker x
1-12 Henderson x
1-13 Madla x
1-14 Moncrief x
1-15 Patterson x
1-16 Rosson x
1-17 Shapiro x
1-18 Wentworth x
1-19 Whitmire x
1-20 COMMITTEE AMENDMENT NO. 1 By: Shapiro
1-21 Amend H.B. 1266 as follows:
1-22 On page 1, line 62, insert the following after "law" and
1-23 before the period: "or any district created under special law the
1-24 board of directors of which is appointed by the governing bodies of
1-25 member municipalities, which municipalities have a combined
1-26 population in excess of 500,000 people".
1-27 A BILL TO BE ENTITLED
1-28 AN ACT
1-29 relating to certain laws governing water districts and nonprofit
1-30 water or sewer service corporations; creating penalties.
1-31 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-32 SECTION 1. Section 1.002, Water Code, is amended to read as
1-33 follows:
1-34 Sec. 1.002. Construction of Code. (a) The Code
1-35 Construction Act (Chapter 311, Government Code) applies to the
1-36 construction of each provision in this code, except as otherwise
1-37 expressly provided by this code.
1-38 (b) In this code:
1-39 (1) a reference to a title, chapter, or section
1-40 without further identification is a reference to a title, chapter,
1-41 or section of this code; and
1-42 (2) a reference to a subtitle, subchapter, subsection,
1-43 subdivision, paragraph, or other numbered or lettered unit without
1-44 further identification is a reference to a unit of the next larger
1-45 unit of this code in which the reference appears.
1-46 (c) A reference in a law to a statute or part of a statute
1-47 revised by this code is considered to be a reference to the part of
1-48 this code that revises that statute or part of the statute.
1-49 SECTION 2. Chapter 50, Water Code, is repealed, except that
1-50 Subchapter H is continued in effect for the sole purpose of the
1-51 administration and operation of contracts created or issued under
1-52 those laws.
1-53 SECTION 3. Title 4, Water Code, is amended by adding Chapter
1-54 49 to read as follows:
1-55 CHAPTER 49. PROVISIONS APPLICABLE TO ALL DISTRICTS
1-56 SUBCHAPTER A. GENERAL PROVISIONS
1-57 Sec. 49.001. DEFINITIONS. As used in this chapter:
1-58 (1) "District" means any district or authority created
1-59 by authority of either Article III, Sections 52(b)(1) and (2), or
1-60 Article XVI, Section 59, of the Texas Constitution, regardless of
1-61 how created. The term "district" shall not include any navigation
1-62 district or port authority created under general or special law.
1-63 (2) "Commission" means the Texas Natural Resource
1-64 Conservation Commission.
1-65 (3) "Board" means the governing body of a district.
1-66 (4) "Executive director" means the executive director
1-67 of the commission.
1-68 (5) "Water supply corporation" means a nonprofit water
2-1 supply or sewer service corporation that is created or operating
2-2 under Chapter 76, Acts of the 43rd Legislature, 1st Called Session,
2-3 1933 (Article 1434a, Vernon's Texas Civil Statutes).
2-4 (6) "Director" means either a supervisor or director
2-5 appointed or elected to the board.
2-6 (7) "Municipal solid waste" has the same meaning
2-7 assigned by Section 361.003, Health and Safety Code.
2-8 Sec. 49.002. APPLICABILITY. This chapter applies to all
2-9 general and special law districts to the extent that the provisions
2-10 of this chapter do not directly conflict with a provision in any
2-11 other chapter of this code or any Act creating or affecting a
2-12 special law district. In the event of such conflict, the specific
2-13 provisions in such other chapter or Act shall control.
2-14 Sec. 49.003. PENALTY. A district that fails to comply with
2-15 the filing provisions of this code may be subject to a civil
2-16 penalty of up to $100 per day for each day the district wilfully
2-17 continues to violate these provisions after receipt of written
2-18 notice of violation from the executive director by certified mail,
2-19 return receipt requested. The state may sue to recover the
2-20 penalty.
2-21 Sec. 49.004. PENALTY FOR VIOLATION OF DISTRICT RULES.
2-22 (a) The board may set reasonable civil penalties for the breach of
2-23 any rule of the district that shall not exceed the jurisdiction of
2-24 a justice court as provided by Section 27.031, Government Code.
2-25 (b) A penalty under this section is in addition to any other
2-26 penalty provided by the law of this state and may be enforced by
2-27 complaints filed in the appropriate court of jurisdiction in the
2-28 county in which the district's principal office or meeting place is
2-29 located.
2-30 (Sections 49.005-49.009 reserved for expansion
2-31 SUBCHAPTER B. CREATION
2-32 Sec. 49.010. ORDER OR ACT CREATING DISTRICT. Within 60 days
2-33 after the date a district is created, the district shall file with
2-34 the executive director a certified copy of the order or legislative
2-35 act creating the district or authorizing its creation, unless the
2-36 district was created by order of the commission.
2-37 (Sections 49.011-49.050 reserved for expansion
2-38 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
2-39 Sec. 49.051. BOARD OF DIRECTORS. A district shall be
2-40 governed by its board, the number of which is otherwise provided by
2-41 law.
2-42 Sec. 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
2-43 is disqualified from serving as a member of a board of a district
2-44 which includes less than all the territory in at least one county
2-45 and which, if located within the corporate area of a city or
2-46 cities, includes within its boundaries less than 75 percent of the
2-47 incorporated area of the city or cities, if that person:
2-48 (1) is related within the third degree of affinity or
2-49 consanguinity to a developer of property in the district, any other
2-50 member of the board, or the manager, engineer, attorney, or other
2-51 person providing professional services to the district;
2-52 (2) is an employee of any developer of property in the
2-53 district or any director, manager, engineer, attorney, or other
2-54 person providing professional services to the district or a
2-55 developer of property in the district in connection with the
2-56 district or property located in the district;
2-57 (3) is a developer of property in the district;
2-58 (4) is serving as an attorney, consultant, engineer,
2-59 manager, architect, or in some other professional capacity for the
2-60 district or a developer of property in the district in connection
2-61 with the district or property located in the district;
2-62 (5)(A) is a party to a contract with or along with the
2-63 district except for the purchase of public services furnished by
2-64 the district to the public generally; or
2-65 (B) is a party to a contract with or along with
2-66 a developer of property in the district relating to the district or
2-67 to property within the district, other than a contract limited
2-68 solely to the purpose of purchasing or conveying real property in
2-69 the district for the purpose of either establishing a permanent
2-70 residence, establishing a commercial business within the district,
3-1 or qualifying as a director; or
3-2 (6) during the term of office, fails to maintain the
3-3 qualifications required by law to serve as a director.
3-4 (b) Within 60 days after the board determines a relationship
3-5 or employment exists which constitutes a disqualification under
3-6 Subsection (a) of this section, it shall replace the person serving
3-7 as a member of the board with a person who would not be
3-8 disqualified.
3-9 (c) Any person who wilfully occupies an office as a member
3-10 of a board and exercises the powers and duties of that office when
3-11 disqualified under the provisions of Subsection (a) of this section
3-12 is guilty of a misdemeanor and, on conviction, shall be fined not
3-13 less than $100 nor more than $1,000.
3-14 (d) As used in this section, "developer of property in the
3-15 district" means any person who owns land located within a district
3-16 covered under this section and who has divided or proposes to
3-17 divide the land into two or more parts for the purpose of laying
3-18 out any subdivision or any tract of land or any addition to any
3-19 town or city, or for laying out suburban lots or building lots, or
3-20 any lots, and streets, alleys, or parks or other portions intended
3-21 for public use, or the use of purchasers or owners of lots fronting
3-22 thereon or adjacent thereto.
3-23 (e) Any rights obtained by any third party through official
3-24 action of a board covered by this section are not impaired or
3-25 affected by the disqualification under this section of any member
3-26 of the board to serve, provided that the third party had no
3-27 knowledge at the time the rights were obtained of the fact that the
3-28 member of the board was disqualified to serve.
3-29 (f) This section shall not apply to districts defined in
3-30 Section 49.181(h)(3), (4), or (5) or a district where the principal
3-31 function of the district is to provide irrigation water to
3-32 agricultural lands or to provide nonpotable water for any purpose.
3-33 (g) A board by unanimous vote of its remaining members may
3-34 remove a board member only if that board member has missed one-half
3-35 or more of the regular meetings scheduled during the prior 12
3-36 months. Any board member so removed may file a written appeal with
3-37 the commission within 30 days after receiving written notice of the
3-38 board action. The commission may reinstate a removed director if
3-39 the commission finds that the removal was unwarranted under the
3-40 circumstances, including the reasons for absences, the time and
3-41 place of the meetings missed, the business conducted at the
3-42 meetings missed and any other facts or circumstances the commission
3-43 may deem relevant.
3-44 Sec. 49.053. QUORUM. A majority of the membership of the
3-45 board constitutes a quorum for any meeting, and a concurrence of a
3-46 majority of the entire membership of the board is sufficient for
3-47 transacting any business of the district. This section does not
3-48 apply to districts defined in Section 49.181(h)(3) or (4).
3-49 Sec. 49.054. OFFICERS. (a) After a district is created and
3-50 the directors have qualified, the board shall meet, elect a
3-51 president, vice-president, secretary, and any other officers or
3-52 assistant officers as the board may deem necessary and begin the
3-53 discharge of its duties.
3-54 (b) After each directors election, the board shall meet and
3-55 elect officers.
3-56 (c) The president is the chief executive officer of the
3-57 district, presides at all meetings of the board, and shall execute
3-58 all documents on behalf of the district. The vice-president shall
3-59 act as president in case of the absence or disability of the
3-60 president. The secretary is responsible for seeing that all
3-61 records and books of the district are properly kept and shall
3-62 attest the president's signature on all documents.
3-63 (d) The board may appoint another director, the general
3-64 manager, or any employee as assistant or deputy secretary to assist
3-65 the secretary, and any such person shall be entitled to certify as
3-66 to the authenticity of any record of the district, including but
3-67 not limited to all proceedings relating to bonds, contracts, or
3-68 indebtedness of the district.
3-69 (e) After any election or appointment of a director, a
3-70 district shall notify the executive director within 30 days after
4-1 the date of the election or appointment of the name and mailing
4-2 address of the director chosen and the date that director's term of
4-3 office expires. The executive director shall provide forms to the
4-4 district for such purpose.
4-5 (f) This section does not apply to any districts defined in
4-6 Section 49.181(h)(3) or (4).
4-7 Sec. 49.055. SWORN STATEMENT, BOND AND OATH OF OFFICE.
4-8 (a) As soon as practicable after a director is elected or
4-9 appointed, that director shall make the sworn statement prescribed
4-10 by the constitution for public office.
4-11 (b) As soon as practicable after a director has made the
4-12 sworn statement, and before beginning to perform the duties of
4-13 office, that director shall take the oath of office prescribed by
4-14 the constitution for public officers.
4-15 (c) Before beginning to perform the duties of office, each
4-16 director shall execute a bond for $10,000 payable to the district
4-17 and conditioned on the faithful performance of that director's
4-18 duties. All bonds of the directors shall be approved by the board
4-19 and paid for by the district.
4-20 (d) The sworn statement, bond, and oath shall be filed with
4-21 the district and retained in its records. A duplicate original of
4-22 the sworn statement and the oath shall also be filed with the
4-23 secretary of state within 10 days after their execution and need
4-24 not be filed before the new director begins to perform the duties
4-25 of office.
4-26 (e) This section does not apply to any district defined in
4-27 Section 49.181(h)(3) or (4).
4-28 Sec. 49.056. GENERAL MANAGER. (a) The board may employ or
4-29 contract with a person to perform such services as general manager
4-30 for the district as the board may from time to time specify. The
4-31 board may delegate to the general manager full authority to manage
4-32 and operate the affairs of the district subject only to orders of
4-33 the board.
4-34 (b) The board may delegate to the general manager the
4-35 authority to employ all persons necessary for the proper handling
4-36 of the business and operation of the district and to determine the
4-37 compensation to be paid all employees other than the general
4-38 manager.
4-39 (c) Except as provided by Section 49.052, a director may be
4-40 employed as general manager of the district, but the compensation
4-41 of a general manager who also serves as a director shall be
4-42 established by the other directors.
4-43 Sec. 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
4-44 be responsible for the management of all the affairs of the
4-45 district. The district shall employ or contract with all persons,
4-46 firms, partnerships, corporations, or other entities, public or
4-47 private, deemed necessary by the board for the conduct of the
4-48 affairs of the district, including, but not limited to, engineers,
4-49 attorneys, financial advisors, operators, bookkeepers, tax
4-50 assessors and collectors, auditors, and administrative staff.
4-51 (b) The board shall adopt an annual budget. All district
4-52 employees are employed at the will of the district unless the
4-53 district and employee execute a written employment contract.
4-54 (c) The board shall set the compensation and terms for
4-55 consultants.
4-56 (d) In selecting attorneys, engineers, auditors, financial
4-57 advisors, or other professional consultants, the district shall
4-58 follow the procedures provided in Section 3A of the Professional
4-59 Services Procurement Act (Article 664-4, Vernon's Texas Civil
4-60 Statutes) and shall comply with all the provisions of that Act.
4-61 (e) The board shall require an officer, employee, or
4-62 consultant who collects, pays, or handles any funds of the district
4-63 to furnish good and sufficient bond, payable to the district, in an
4-64 amount determined by the board to be sufficient to safeguard the
4-65 district. The bond shall be conditioned on the faithful
4-66 performance of that person's duties and on accounting for all funds
4-67 and property of the district. Such bond shall be signed or
4-68 endorsed by a surety company authorized to do business in the
4-69 state.
4-70 (f) The board may pay the premium on surety bonds required
5-1 of officials, employees, or consultants of the district out of any
5-2 available funds of the district, including proceeds from the sale
5-3 of bonds.
5-4 (g) The board may adopt bylaws to govern the affairs of the
5-5 district to perform its purposes. The board may, by resolution,
5-6 authorize its general manager or other employee to execute
5-7 documents on behalf of the district.
5-8 (h) The board shall also have the right to purchase all
5-9 materials, supplies, equipment, vehicles, and machinery needed by
5-10 the district to perform its purposes.
5-11 Sec. 49.058. CONFLICTS OF INTEREST. A director of a
5-12 district is subject to the provisions of Chapter 171, Local
5-13 Government Code, relating to the regulation of conflicts of
5-14 officers of local governments.
5-15 Sec. 49.059. DISQUALIFICATION OF TAX ASSESSOR AND COLLECTOR.
5-16 (a) No person may serve as tax assessor and collector of a
5-17 district providing potable water or sewer utility services to
5-18 household users if that person:
5-19 (1) is related within the third degree of affinity or
5-20 consanguinity to any developer of property in the district, a
5-21 member of the board, or the manager, engineer, or attorney for the
5-22 district;
5-23 (2) is or was within two years immediately preceding
5-24 the assumption of their assessment and collection duties with the
5-25 district an employee of any developer of property in the district,
5-26 or any director, manager, engineer, or attorney for the district;
5-27 (3) owns an interest in or is employed by any
5-28 corporation organized for the purpose of tax assessment and
5-29 collection services, a substantial portion of the stock of which is
5-30 owned by a developer of property within the district or any
5-31 director, manager, engineer, or attorney for the district; or
5-32 (4) is directly or through a corporation developing
5-33 land in the district or is a director, engineer, or attorney for
5-34 the district.
5-35 (b) Within 60 days after the board determines a relationship
5-36 or employment exists which constitutes a disqualification under
5-37 Subsection (a), it shall replace the person serving as tax assessor
5-38 and collector with a person who would not be disqualified.
5-39 (c) Any person who wilfully violates the provisions of
5-40 Subsection (a) is guilty of a misdemeanor and on conviction shall
5-41 be fined not less than $100 nor more than $1,000.
5-42 (d) As used in this section, "developer of property in the
5-43 district" means any person who owns land located within a district
5-44 covered under this section and who has divided or proposes to
5-45 divide the land into two or more parts for the purpose of laying
5-46 out any subdivision or any tract of land or any addition to any
5-47 town or city, or for laying out suburban lots or building lots, or
5-48 any lots, streets, alleys, or parks or other portions intended for
5-49 public use, or the use of purchasers or owners of lots fronting
5-50 thereon or adjacent thereto.
5-51 Sec. 49.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
5-52 is entitled to receive fees of office of not more than $100 a day
5-53 for each day the director actually spends performing the duties of
5-54 a director. The fees of office may not exceed $6,000 per annum
5-55 except for directors of a river authority which is engaged in the
5-56 distribution and sale of electric energy to the public.
5-57 (b) Each director is also entitled to receive reimbursement
5-58 of actual expenses reasonably and necessarily incurred while
5-59 engaging in activities on behalf of the district.
5-60 (c) In order to receive fees of office and to receive
5-61 reimbursement for expenses, each director shall file with the
5-62 district a verified statement showing the number of days actually
5-63 spent in the service of the district and a general description of
5-64 the duties performed for each day of service.
5-65 (d) Section 49.002 notwithstanding, in all areas of conflict
5-66 the provisions of this section shall take precedence over all prior
5-67 statutory enactments. If the enactment of this section results in
5-68 an increase in the fees of office for any district, that district's
5-69 fees of office shall not increase unless the board adopts a
5-70 resolution authorizing payment of the higher fees.
6-1 Sec. 49.061. SEAL. The directors shall adopt a seal for the
6-2 district.
6-3 Sec. 49.062. OFFICES AND MEETING PLACES. (a) The board
6-4 shall designate from time to time and maintain one or more regular
6-5 offices for conducting the business of the district and maintaining
6-6 the records of the district. Such offices may be located either
6-7 inside or outside the district's boundaries as determined in the
6-8 discretion of the board.
6-9 (b) The board shall designate one or more places inside or
6-10 outside the district for conducting the meetings of the board. The
6-11 meeting place may be a private residence or office, provided that
6-12 the board, in its order establishing the meeting place, declares
6-13 the same to be a public place and invites the public to attend any
6-14 meeting of the board. If the board establishes a meeting place or
6-15 places outside the district, it shall give notice of the location
6-16 or locations by filing a true copy of the resolution establishing
6-17 the location or locations of the meeting place or places with the
6-18 commission and also by publishing notice of the location or
6-19 locations in a newspaper of general circulation in the district.
6-20 If the location of any of the meeting places outside the district
6-21 is changed, notice of the change shall be given in the same manner.
6-22 (c) After at least 25 qualified electors are residing in a
6-23 district, on written request of at least five of those electors,
6-24 the board shall designate a meeting place and hold meetings within
6-25 the district if it determines that the meeting place used by the
6-26 district deprives the residents of a reasonable opportunity to
6-27 attend district meetings. On the failure to designate the location
6-28 of the meeting place within the district, five electors may
6-29 petition the commission to designate a location. If it determines
6-30 that the meeting place used by the district deprives the residents
6-31 of a reasonable opportunity to attend district meetings, the
6-32 commission may designate a meeting place inside or outside the
6-33 district which is reasonably available for the public and require
6-34 that the meetings be held at such place. After the next election,
6-35 the board may designate different meeting places, including one
6-36 located outside the boundaries of the district.
6-37 (d) Two or more districts may designate and share offices
6-38 and meeting places. This section does not apply to districts
6-39 defined in Section 49.181(h)(3) or (4).
6-40 Sec. 49.063. NOTICE OF MEETINGS. Notice of meetings of the
6-41 board shall be given as set forth in the open meetings act, Chapter
6-42 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
6-43 6252-17, Vernon's Texas Civil Statutes), except that if a district
6-44 does not have a meeting place within the district, the district
6-45 shall post notice of its meeting at a public place within the
6-46 district specified by the board in a written resolution, rather
6-47 than at its administrative office. The board shall specify such
6-48 public place to be a bulletin board or other place within the
6-49 district which is reasonably available to the public. Neither
6-50 failure to provide notice of a regular meeting nor an insubstantial
6-51 defect in notice of any meeting shall affect the validity of any
6-52 action taken at the meeting.
6-53 Sec. 49.064. MEETINGS. The board shall hold such regular
6-54 and special meetings as may be necessary for the proper conduct of
6-55 the district's business. All meetings shall be conducted in
6-56 accordance with the open meetings act, Chapter 271, Acts of the
6-57 60th Legislature, Regular Session, 1967 (Article 6252-17, Vernon's
6-58 Texas Civil Statutes). A meeting of a committee of the board, or a
6-59 committee composed of representatives of more than one board, where
6-60 less than a quorum of any board is present is not subject to the
6-61 provisions of the open meetings act, Chapter 271, Acts of the 60th
6-62 Legislature, Regular Session, 1967 (Article 6252-17, Vernon's Texas
6-63 Civil Statutes).
6-64 Sec. 49.065. RECORDS. (a) The board shall keep a complete
6-65 account of all its meetings and proceedings and shall preserve its
6-66 minutes, contracts, records, notices, accounts, receipts, and other
6-67 records in a safe place.
6-68 (b) The records of each district are the property of the
6-69 district and are subject to the open records act, Chapter 424, Acts
6-70 of the 63rd Legislature, Regular Session, 1973 (Article 6252-17a,
7-1 Vernon's Texas Civil Statutes).
7-2 (c) The preservation, microfilming, destruction, or other
7-3 disposition of the records of each district is subject to the
7-4 requirements of Chapter 201, Local Government Code, and rules
7-5 adopted thereunder.
7-6 Sec. 49.066. SUITS. (a) A district may sue and be sued in
7-7 the courts of this state in the name of the district by and through
7-8 its board. All courts shall take judicial notice of the creation
7-9 of the district and of its boundaries.
7-10 (b) Any court in the state rendering judgment for debt
7-11 against a district may order the board to levy, assess, and collect
7-12 taxes or assessments to pay the judgment.
7-13 (c) The president or the general manager of any district
7-14 shall be the agent of the district on whom process, notice, or
7-15 demand required or permitted by law to be served upon the district
7-16 may be served.
7-17 (d) Except as provided in Subsection (e) of this section, no
7-18 suit may be instituted in any court of this state contesting:
7-19 (1) the validity of the creation and boundaries of a
7-20 district created under this code;
7-21 (2) any bonds or other obligations created under this
7-22 code; or
7-23 (3) the validity or the authorization of a contract
7-24 with the United States by the district.
7-25 (e) The matters listed in Subsection (d) of this section may
7-26 be judicially inquired into at any time and determined in any suit
7-27 brought by the State of Texas through the attorney general. The
7-28 action shall be brought on good cause shown, except where otherwise
7-29 provided by other provisions of this code or by the Texas
7-30 Constitution. It is specifically provided, however, that no such
7-31 proceeding shall affect the validity of or security for any bonds
7-32 or other obligations theretofore issued by a district if such bonds
7-33 or other obligations have been approved by the attorney general as
7-34 provided by Section 49.184.
7-35 (f) A district or water supply corporation shall not be
7-36 required to give bond for appeal, injunction, or costs in any suit
7-37 to which it is a party and shall not be required to deposit more
7-38 than the amount of any award in any eminent domain proceeding.
7-39 Sec. 49.067. CONTRACTS. A district shall contract, and be
7-40 contracted with, in the name of the district.
7-41 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. The
7-42 provisions of this chapter pertaining to bids and the Local
7-43 Government Code notwithstanding, a district may purchase property
7-44 from any governmental entity by negotiated contract without the
7-45 necessity of securing appraisals or advertising for bids.
7-46 Sec. 49.069. EMPLOYEE BENEFITS. (a) The board may provide
7-47 for and administer a retirement, disability, and death compensation
7-48 fund for the employees of the district and may adopt a plan or
7-49 plans to effectuate the purpose of this section, including the
7-50 forms of insurance and annuities which are considered advisable by
7-51 the board. The board, after notice to the employees and a hearing,
7-52 may change any plan, rule, or regulation.
7-53 (b) All money provided from the compensation of the
7-54 employees participating in the fund and plan authorized by this
7-55 section and by the district for the retirement, disability, and
7-56 death compensation fund, after the money has been received by the
7-57 district, shall be invested as the board from time to time
7-58 considers advisable. The money may be invested in the following
7-59 manner:
7-60 (1) in bonds of the United States, the State of Texas,
7-61 any county, city, or other political subdivision of this state, or
7-62 in bonds issued by any agency of the United States, the payment of
7-63 the principal of and interest on which is guaranteed by the United
7-64 States; and
7-65 (2) in life insurance policies, endowment or annuity
7-66 contracts, or interest-bearing certificates of legal reserve life
7-67 insurance companies authorized to write the contracts in the State
7-68 of Texas.
7-69 (c) A sufficient amount of the money shall be kept on hand
7-70 to meet the immediate payment of amounts likely to become due each
8-1 year out of the fund as determined by the board.
8-2 (d) The recipients or beneficiaries from the fund shall not
8-3 be eligible for any other pension, retirement fund, or direct aid
8-4 from the State of Texas, unless the fund created under this chapter
8-5 is released to the State of Texas as a condition precedent to
8-6 receiving the other pension, aid, or joining of any other system.
8-7 (e) The board may include hospitalization and medical
8-8 benefits to its employees as part of the compensation currently
8-9 paid to the officers and employees and may adopt any plan, rule, or
8-10 regulation in connection with it and amend or change the plan,
8-11 rule, or regulation as it may determine.
8-12 (f) This section shall not apply to any river authority as
8-13 that term is defined in Section 30.003(4).
8-14 Sec. 49.070. WORKERS' COMPENSATION. The board may become a
8-15 subscriber under the Texas Workers' Compensation Act (Article
8-16 8308-1.01 et seq., Vernon's Texas Civil Statutes) with any
8-17 insurance company authorized to write the policies in the State of
8-18 Texas.
8-19 Sec. 49.071. DISTRICT NAME CHANGE. (a) On petition by a
8-20 district showing reasonable grounds for a name change, the
8-21 commission by order may change the name of the district to the name
8-22 requested by the district. The new name must be generally
8-23 descriptive of the location of the district followed by the type of
8-24 district as provided by the title of the chapter of the Water Code
8-25 governing the district. If a district is located wholly within one
8-26 county that contains more than one district of that type, the
8-27 district may be differentiated, if necessary, by adding to the new
8-28 name the proper consecutive number. The new name may not be the
8-29 same as the name of any other district in the county.
8-30 (b) A name change takes effect on the date of issuance of
8-31 the commission order making the name change.
8-32 (c) Not later than the 30th day after the date of issuance
8-33 of the commission order making the name change, the district shall
8-34 publish notice of the name change in a newspaper or newspapers of
8-35 general circulation in the county or counties in which the district
8-36 is located. Within that same period, the district shall also give
8-37 notice of the name change by mail to utility customers or
8-38 permittees, if any, and, to the extent practicable, to the holders
8-39 of bonds, obligations, and other indebtedness of the district.
8-40 Failure of the district to comply with this subsection does not
8-41 affect the validity of the name change.
8-42 (d) A change in the name of a district does not affect
8-43 bonds, obligations, or other indebtedness of the district existing
8-44 before the name change occurred.
8-45 (Sections 49.072-49.100 reserved for expansion
8-46 SUBCHAPTER D. ELECTION PROVISIONS
8-47 Sec. 49.101. GENERAL. All elections shall be generally
8-48 conducted in accordance with the Election Code except as otherwise
8-49 provided for by this code. Write-in candidacies for any district
8-50 office shall be governed by Subchapter C, Chapter 146, Election
8-51 Code.
8-52 Sec. 49.102. CONFIRMATION AND DIRECTOR ELECTION.
8-53 (a) Before issuing any bonds or other obligations, an election
8-54 shall be held within the boundaries of the proposed district to
8-55 determine if the proposed district shall be established and, if the
8-56 directors of the district are required by law to be elected, to
8-57 elect permanent directors.
8-58 (b) Notice of a confirmation or director election shall
8-59 state the day and place or places for holding the election, the
8-60 propositions to be voted on, or the number of directors to be voted
8-61 on.
8-62 (c) The ballots for a confirmation election shall be printed
8-63 to provide for voting "For District" and "Against District."
8-64 Ballots for a directors election shall provide the names of the
8-65 persons appointed by the governing body who qualified and are
8-66 serving as temporary directors at the time the election is called.
8-67 The ballots shall also have blank places after the names of the
8-68 temporary directors in which a voter may write the names of other
8-69 persons for directors.
8-70 (d) Immediately after the confirmation and director
9-1 election, the presiding judge shall take returns of the results to
9-2 the temporary board. The temporary board shall canvass the returns
9-3 and declare the results at the earliest practicable time.
9-4 (e) If a majority of the votes cast in the election favor
9-5 the creation of the district, then the temporary board shall
9-6 declare that the district is created and enter the result in its
9-7 minutes. If a majority of the votes cast in the election are
9-8 against the creation of the district, the temporary board shall
9-9 declare that the district was defeated and enter the result in its
9-10 minutes. A copy of the order shall be filed with the commission.
9-11 (f) The order canvassing the results of the confirmation
9-12 election shall contain a description of the district's boundaries
9-13 and shall be filed with the executive director and in the deed
9-14 records of the county or counties in which the district is located.
9-15 (g) The temporary board shall also declare the persons
9-16 receiving the highest number of votes for directors to have been
9-17 elected as permanent directors.
9-18 (h) Unless otherwise agreed, the directors shall decide the
9-19 initial terms of office by lot, with a simple majority of directors
9-20 serving until the second succeeding directors' election and the
9-21 remaining directors serving until the next directors' election.
9-22 (i) The provisions of this section shall not be applicable
9-23 to any district exercising the powers of Chapter 375, Local
9-24 Government Code, or any district created by a special Act of the
9-25 legislature which does not require a confirmation election.
9-26 Sec. 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
9-27 provided by Section 49.102 of this chapter, the members of the
9-28 board of a district shall serve for four-year terms.
9-29 (b) An election shall be held on the uniform election date,
9-30 established by the Election Code, in either January or May of each
9-31 even-numbered year to elect the appropriate number of directors.
9-32 (c) The permanent directors may assign a position number to
9-33 each director's office, in which case directors shall thereafter be
9-34 elected by position and not at large.
9-35 (d) A district may provide for the election of all
9-36 directors, or a majority of directors, from single-member
9-37 districts, which shall be geographically described within the
9-38 boundaries of the district in a manner which is equitable for the
9-39 electors within such districts and within the district generally.
9-40 (e) Section 49.002 notwithstanding, in all areas of conflict
9-41 the provisions of Subsection (b) shall take precedence over all
9-42 prior statutory enactments.
9-43 Sec. 49.104. ALTERNATIVE ELECTION PROCEDURES.
9-44 (a) Notwithstanding the provisions and requirements of the
9-45 Election Code and general laws, any two or more districts situated
9-46 in the same county and in which substantially all of the land is
9-47 being or has been developed as part of a single community
9-48 development plan and which are served by common water supply and
9-49 waste disposal systems may by mutual agreement designate a common
9-50 election office and common early and regular polling places within
9-51 one or more of the districts, but outside the boundaries of one or
9-52 more of the districts, for the conduct of director election
9-53 proceedings and early and regular balloting in director elections.
9-54 This alternative election procedure may only be used if the common
9-55 election office and polling places so designated:
9-56 (1) are within buildings open to the public;
9-57 (2) are within the boundaries of at least one of the
9-58 districts;
9-59 (3) meet the requirements of the Election Code and
9-60 general laws as polling places; and
9-61 (4) are located not more than five miles from any
9-62 portion of the boundaries of any of the participating districts.
9-63 (b) Such districts may also agree upon and designate a
9-64 common election officer and common early and regular voting
9-65 officials for some or all of the director elections to be
9-66 simultaneously conducted at a common location, any of whom may be
9-67 nonelective employees of one or more of the districts, so long as
9-68 the early and regular voting officials are qualified voters within
9-69 at least one of the districts.
9-70 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
10-1 in this code, all vacancies on the board and in other offices shall
10-2 be filled for the unexpired term by appointment of the board.
10-3 (b) If the number of directors is reduced to fewer than a
10-4 majority, the vacancies shall be filled by appointment by the
10-5 commission or the county commissioners court if the district was
10-6 created by the county commissioners court. An appointed director
10-7 shall serve for the unexpired term of the director he or she is
10-8 replacing.
10-9 (c) In the event of a failure to elect one or more members
10-10 of the board of a district resulting from the absence of, or
10-11 failure to vote by, the qualified voters in the district, the
10-12 current members of the board holding the positions not filled at
10-13 such election shall be deemed to have been reelected and shall
10-14 serve an additional term of office.
10-15 Sec. 49.106. BOND ELECTIONS. (a) Before an election is
10-16 held to authorize the issuance of bonds, other than refunding
10-17 bonds, there shall be filed in the office of the district and open
10-18 to inspection by the public an engineer's report covering the land,
10-19 improvements, facilities, plants, equipment, and appliances to be
10-20 purchased or constructed and their estimated cost, together with
10-21 maps, plats, profiles, and data fully showing and explaining the
10-22 report.
10-23 (b) Notice of a bond election shall contain the proposition
10-24 or propositions to be voted upon, which includes the estimate of
10-25 the probable cost of design, construction, purchase and acquisition
10-26 of improvements and additions thereto, and incidental expenses
10-27 connected with such improvements and the issuance of bonds.
10-28 (c) A bond election may be held on the same day as any other
10-29 district election. The bond election may be called by a separate
10-30 election order or as a part of any other election order. The board
10-31 may submit multiple purposes in a single proposition at an
10-32 election.
10-33 Sec. 49.107. OPERATION AND MAINTENANCE TAX. (a) A district
10-34 may levy and collect a tax for operation and maintenance purposes,
10-35 including funds for planning, constructing, acquiring, maintaining,
10-36 repairing, and operating all necessary land, plants, works,
10-37 facilities, improvements, appliances, and equipment of the district
10-38 and for paying costs of proper services, engineering and legal
10-39 fees, and organization and administrative expenses.
10-40 (b) An operation and maintenance tax may not be levied by a
10-41 district until it is approved by a majority of the electors voting
10-42 at an election held for that purpose. After such a tax has been
10-43 authorized by the district's voters, the board shall be authorized
10-44 to levy the tax and have it assessed and collected as other
10-45 district taxes.
10-46 (c) An operation and maintenance tax election may be held at
10-47 the same time and in conjunction with any other district election.
10-48 The election may be called by a separate election order or as part
10-49 of any other election order.
10-50 (d) The proposition in an operation and maintenance tax
10-51 election may be for a specific maximum rate or for an unlimited
10-52 rate.
10-53 (e) If a district has any surplus operation and maintenance
10-54 tax funds which are not needed for the purposes for which they were
10-55 collected, the funds may be used for any lawful purpose.
10-56 Sec. 49.108. CONTRACT ELECTIONS. (a) A contract may
10-57 provide that the district will make payment under the contract from
10-58 proceeds from the sale of notes or bonds, from taxes, or from any
10-59 other income of the district or any combination of these.
10-60 (b) A district may make payments under a contract from taxes
10-61 other than operation and maintenance taxes after the provisions of
10-62 the contract have been approved by a majority of the electors
10-63 voting at an election held for that purpose.
10-64 (c) A contract election may be held at the same time and in
10-65 conjunction with any other district election. The election may be
10-66 called by a separate election order or as part of any other
10-67 election order.
10-68 (d) A contract approved by the voters will constitute an
10-69 obligation against the taxing power of the district to the extent
10-70 provided in the contract.
11-1 (Sections 49.109-49.150 reserved for expansion
11-2 SUBCHAPTER E. FISCAL PROVISIONS
11-3 Sec. 49.151. EXPENDITURES. (a) Except as hereinafter
11-4 provided, a district's money may be disbursed only by check, draft,
11-5 order, or other instrument which shall be signed by at least a
11-6 majority of the directors.
11-7 (b) The board may by resolution allow the general manager,
11-8 treasurer, bookkeeper, or other employee of the district to sign
11-9 disbursements.
11-10 (c) The board may by resolution allow disbursements to be
11-11 transferred by federal reserve wire system to accounts in the name
11-12 of the district.
11-13 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
11-14 borrow money for any corporate purpose or combination of corporate
11-15 purposes only in compliance with the methods and procedures
11-16 specifically provided by this chapter or by general law.
11-17 Sec. 49.153. REVENUE NOTES. (a) The board, without the
11-18 necessity of an election, may borrow money on negotiable notes of
11-19 the district to be paid solely from the revenues derived from the
11-20 ownership of all or any designated part of the district's works,
11-21 plants, improvements, facilities, or equipment after deduction of
11-22 the reasonable cost of maintaining and operating the facilities.
11-23 (b) The notes may be first or subordinate lien notes within
11-24 the discretion of the board, but no obligation may ever be a charge
11-25 on the property of the district or on taxes levied or collected by
11-26 the district but shall be solely a charge on the revenues pledged
11-27 for the payment of the obligation. No part of the obligation may
11-28 ever be paid from taxes levied or collected by the district.
11-29 (c) A district may not execute a note for a term longer than
11-30 three years unless the commission issues an order approving the
11-31 note.
11-32 (d) This section does not apply to a district defined in
11-33 Section 49.181(h)(3) or (4).
11-34 Sec. 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
11-35 NOTES. (a) The board may declare an emergency in the matter of
11-36 funds not being available to pay principal of and interest on any
11-37 bonds of the district payable in whole or in part from taxes or to
11-38 meet any other needs of the district and may issue negotiable tax
11-39 anticipation notes or negotiable bond anticipation notes to borrow
11-40 the money needed by the district without advertising or giving
11-41 notice of the sale. Bond anticipation notes and tax anticipation
11-42 notes shall mature within one year of their date.
11-43 (b) Tax anticipation notes may be issued for any purpose for
11-44 which the district is authorized to levy taxes, and tax
11-45 anticipation notes shall be secured with the proceeds of taxes to
11-46 be levied by the district in the succeeding 12-month period. The
11-47 board may covenant with the purchasers of the notes that the board
11-48 will levy a sufficient tax to pay the principal of and interest on
11-49 the notes and pay the costs of collecting the taxes.
11-50 (c) Bond anticipation notes may be issued for any purpose
11-51 for which bonds of the district may have previously been voted or
11-52 may be issued for the purpose of refunding previously issued bond
11-53 anticipation notes. A district may covenant with the purchasers of
11-54 the bond anticipation notes that the district will use the proceeds
11-55 of sale of any bonds in the process of issuance for the purpose of
11-56 refunding the bond anticipation notes, in which case the board will
11-57 be required to use the proceeds received from sale of the bonds in
11-58 the process of issuance to pay principal, interest, or redemption
11-59 price on the bond anticipation notes.
11-60 (d) Districts required to seek commission approval of bonds
11-61 must have an application for such approval on file with the
11-62 commission prior to the issuance of bond anticipation notes.
11-63 Sec. 49.155. REPAYMENT OF EXPENSES. (a) The district may
11-64 pay all costs and expenses necessarily incurred in the organization
11-65 and operation of a district during creation and construction
11-66 periods including, but not limited to, the following:
11-67 (1) organizational, administrative, and operating
11-68 expenses;
11-69 (2) the cost of investigation and making plans;
11-70 (3) the cost of the engineer's report;
12-1 (4) legal fees; and
12-2 (5) any other incidental expenses.
12-3 (b) For purposes of this section, construction periods shall
12-4 mean any periods during which the district is constructing its
12-5 facilities or there is construction by third parties of above
12-6 ground improvements within the district, but in no event longer
12-7 than five years.
12-8 (c) The district may reimburse any person for money advanced
12-9 for the purposes in Subsection (a) and may be charged interest on
12-10 such funds.
12-11 (d) These payments may be made from money obtained from the
12-12 issuance of notes or the sale of bonds issued by the district or
12-13 out of maintenance taxes or other revenues of the district.
12-14 Sec. 49.156. DEPOSITORY. (a) The board, by order or
12-15 resolution, shall designate one or more banks or savings
12-16 associations within the state to serve as the depository for the
12-17 funds of the district. The board shall not be required to
12-18 advertise or solicit bids in selecting its depositories.
12-19 (b) To the extent that funds in the depository banks or
12-20 savings associations are not insured by the Federal Deposit
12-21 Insurance Corporation, they shall be secured in the manner provided
12-22 by law for the security of funds by the Public Funds Collateral
12-23 Act, (Article 2529d, Vernon's Texas Civil Statutes).
12-24 (c) The board may authorize a designated representative to
12-25 supervise the substitution of securities pledged to secure the
12-26 district's funds.
12-27 Sec. 49.157. INVESTMENTS. (a) All district deposits and
12-28 investments shall be governed by the Public Funds Investment Act of
12-29 1987 (Article 842a-2, Vernon's Texas Civil Statutes).
12-30 (b) The board may provide that an authorized representative
12-31 of the district may invest and reinvest the funds of the district
12-32 and provide for money to be withdrawn from the appropriate accounts
12-33 of the district for the investments on such terms as the board
12-34 considers advisable.
12-35 Sec. 49.158. FISCAL YEAR. Within 30 days after a district
12-36 becomes financially active, the board shall adopt a fiscal year by
12-37 a formal board resolution. The district shall notify the executive
12-38 director of the adopted fiscal year within 30 days after adoption.
12-39 The district may change its fiscal year at any time; provided,
12-40 however, it may not be changed more than once in any 24 month
12-41 period. After any change in the district's fiscal year, the
12-42 district shall notify the executive director of the changed fiscal
12-43 year within 30 days after adoption.
12-44 (Sections 49.159-49.180 reserved for expansion
12-45 SUBCHAPTER F. ISSUANCE OF BONDS
12-46 Sec. 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
12-47 DISTRICT BONDS. (a) A district may not issue bonds unless the
12-48 commission determines that the project to be financed by the bonds
12-49 is feasible and issues an order approving the issuance of the
12-50 bonds. This section does not apply to refunding bonds.
12-51 (b) A district may submit to the commission a written
12-52 application for investigation of feasibility. An engineer's report
12-53 describing the project, including the data, profiles, maps, plans,
12-54 and specifications prepared in connection with the report, must be
12-55 submitted with the application.
12-56 (c) The executive director shall examine the application and
12-57 the report and shall inspect the project area. The district shall,
12-58 on request, supply the executive director with additional data and
12-59 information necessary for an investigation of the application, the
12-60 engineer's report, and the project.
12-61 (d) The executive director shall prepare a written report on
12-62 the project and include suggestions, if any, for changes or
12-63 improvements in the project. The executive director shall retain a
12-64 copy of the report and send a copy of the report to both the
12-65 commission and the district.
12-66 (e) The commission shall consider the application, the
12-67 engineer's report, the executive director's report, and any other
12-68 evidence allowed by commission rule to be considered in determining
12-69 the feasibility of the project.
12-70 (f) The commission shall determine whether the project to be
13-1 financed by the bonds is feasible and issue an order either
13-2 approving or disapproving, as appropriate, the issuance of the
13-3 bonds. The commission shall retain a copy of the order and send a
13-4 copy of the order to the district.
13-5 (g) Notwithstanding any provision of this code to the
13-6 contrary, the commission may approve the issuance of bonds of a
13-7 district without the submission of plans and specifications of the
13-8 improvements to be financed with the bonds. The commission may
13-9 condition the approval on any terms or conditions considered
13-10 appropriate by the commission.
13-11 (h) This section does not apply to a district if:
13-12 (1) the district's boundaries include one entire
13-13 county;
13-14 (2) the district was created by a special Act of the
13-15 legislature and:
13-16 (i) the district is located entirely within one
13-17 county;
13-18 (ii) entirely within one or more home-rule
13-19 municipalities;
13-20 (iii) the total taxable value of the real
13-21 property and improvements to the real property zoned by the one or
13-22 more home-rule municipalities for residential purposes and located
13-23 within the district does not exceed 25 percent of the total taxable
13-24 value of all taxable property in the district, as shown by the most
13-25 recent certified appraisal tax roll prepared by the appraisal
13-26 district for the county; and
13-27 (iv) the district was not required by law to
13-28 obtain commission approval of its bonds before the effective date
13-29 of this section;
13-30 (3) the district is a river authority as defined in
13-31 Section 30.003(4);
13-32 (4) the district was created by a special Act of the
13-33 legislature and:
13-34 (i) is a provider of service to two or more
13-35 municipalities; and
13-36 (ii) is governed by a board of directors
13-37 appointed or designated in whole or in part by the governor, the
13-38 Texas Water Development Board, or municipalities within its service
13-39 area; or
13-40 (5) the district is governed by a board of directors
13-41 appointed in whole or in part by the governor, a state agency, or
13-42 the governing body or chief elected official of a municipality or
13-43 county and does not provide water and sewer services to residential
13-44 retail customers as its principal function.
13-45 Sec. 49.182. COMMISSION SUPERVISION OF PROJECTS AND
13-46 IMPROVEMENTS. (a) During construction of projects and
13-47 improvements approved by the commission under this subchapter, no
13-48 substantial alterations may be made in the plans and specifications
13-49 without the approval of the commission in accordance with
13-50 commission rules.
13-51 (b) The executive director may inspect the improvements at
13-52 any time during construction to determine if the project is being
13-53 constructed in accordance with the plans and specifications
13-54 approved by the commission.
13-55 (c) If the executive director finds that the project is not
13-56 being constructed in accordance with the approved plans and
13-57 specifications, the executive director shall give written notice
13-58 immediately by certified mail to the district's manager and to each
13-59 board member.
13-60 (d) If within 10 days after the notice is mailed the board
13-61 does not take steps to ensure that the project is being constructed
13-62 in accordance with the approved plans and specifications, the
13-63 executive director shall give written notice of this fact to the
13-64 attorney general.
13-65 (e) After receiving this notice, the attorney general may
13-66 bring an action for injunctive relief or quo warranto proceedings
13-67 against the directors. Venue for either suit is exclusively in a
13-68 district court in Travis County.
13-69 Sec. 49.183. BOND SALES. (a) Except for refunding bonds,
13-70 or bonds sold to a state or federal agency, bonds issued by a
14-1 district shall be sold after advertising for and receiving
14-2 competitive sealed bids and shall be awarded to the bidder whose
14-3 bid produces the lowest net effective interest rate to the
14-4 district.
14-5 (b) Except for refunding bonds, bonds sold to a state or
14-6 federal agency, after any bonds are finally approved and before
14-7 they are sold by a district, the board shall publish an appropriate
14-8 notice of the sale:
14-9 (1) at least one time not less than 10 days before the
14-10 date of sale in a newspaper of general circulation in the county or
14-11 counties in which the district is located; and
14-12 (2) at least one time in one or more recognized
14-13 financial publications of general circulation in the state as
14-14 approved by the state attorney general.
14-15 (c) If the district is issuing bonds and refunding bonds as
14-16 one issue and if the initial principal amount of refunding bonds is
14-17 50 percent or more of the total initial principal amount of bonds
14-18 being issued, for the purposes of this section, the issue shall be
14-19 considered to be refunding bonds and competitive bids shall not be
14-20 required.
14-21 (d) A district's bonds are negotiable instruments within the
14-22 meaning and purposes of the Business & Commerce Code. A district's
14-23 bonds may be issued and bear interest in accordance with Chapter
14-24 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
14-25 717k, Vernon's Texas Civil Statutes); Chapter 3, Acts of the 61st
14-26 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
14-27 Civil Statutes); the Bond Procedures Act of 1981 (Article 717k-6,
14-28 Vernon's Texas Civil Statutes); and Chapter 656, Acts of the 68th
14-29 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
14-30 Civil Statutes). Except for this subsection, this section does not
14-31 apply to districts that are defined in Section 49.181(h)(3), (4),
14-32 or (5).
14-33 (e) Subsections (a) and (b) of this section do not apply to
14-34 district bonds issued pursuant to Chapter 656, Acts of the 68th
14-35 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
14-36 Civil Statutes).
14-37 Sec. 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
14-38 REGISTRATION OF BONDS. (a) Before bonds issued by a district are
14-39 delivered to the purchasers, a certified copy of all proceedings
14-40 relating to organization of the district for first bond issues and
14-41 issuance of the bonds and other relevant information shall be sent
14-42 to the attorney general.
14-43 (b) The attorney general shall carefully examine the bonds,
14-44 with regard to the record and the constitution and laws of this
14-45 state governing the issuance of bonds, and the attorney general
14-46 shall officially approve and certify the bonds if he or she finds
14-47 that they conform to the record and the constitution and laws of
14-48 this state and are valid and binding obligations of the district.
14-49 (c) After the attorney general approves and certifies the
14-50 bonds, the comptroller shall register them in a book kept for that
14-51 purpose and shall record the certificate of the attorney general.
14-52 (d) After the approval and registration of the bonds by the
14-53 comptroller, they shall be incontestable in any court or other
14-54 forum, for any reason, and shall be valid and binding obligations
14-55 in accordance with their terms for all purposes.
14-56 (e) A contract or lease may be submitted to the attorney
14-57 general along with the bond records, and, if submitted, the
14-58 approval by the attorney general of the bonds shall constitute an
14-59 approval of the contract or lease and the contract or lease shall
14-60 be incontestable.
14-61 Sec. 49.185. EXEMPTIONS. This subchapter shall not apply to
14-62 districts engaged in the distribution and sale of electric energy
14-63 to the public.
14-64 (Sections 49.186-49.190 reserved for expansion
14-65 SUBCHAPTER G. AUDIT OF DISTRICTS
14-66 Sec. 49.191. DUTY TO AUDIT. (a) The board shall have the
14-67 district's fiscal accounts and records audited annually at the
14-68 expense of the district.
14-69 (b) In all areas of conflict, the provisions of this
14-70 subchapter shall take precedence over all prior statutory
15-1 enactments.
15-2 (c) The person who performs the audit shall be a certified
15-3 public accountant or public accountant holding a permit from the
15-4 Texas State Board of Public Accountancy.
15-5 (d) The audit required by this section shall be completed
15-6 within 120 days after the close of the district's fiscal year.
15-7 Sec. 49.192. FORM OF AUDIT. The executive director shall
15-8 adopt accounting and auditing manuals and, except as otherwise
15-9 provided by the manuals, the district audit shall be performed
15-10 according to the generally accepted auditing standards adopted by
15-11 the American Institute of Certified Public Accountants. Financial
15-12 statements shall be prepared in accordance with generally accepted
15-13 accounting principles as adopted by the American Institute of
15-14 Certified Public Accountants.
15-15 Sec. 49.193. FINANCIAL REPORTS. The district's depository,
15-16 the district's treasurer, and the district's bookkeeper, if any,
15-17 who receives or has control over any district funds shall keep a
15-18 full and itemized account of district funds in its, his, or her
15-19 possession. Such itemized accounts and records shall be available
15-20 for audit.
15-21 Sec. 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
15-22 REPORTS. (a) After the board has approved the audit, it shall
15-23 submit a copy of the report to the executive director for filing
15-24 within 135 days after the close of the district's fiscal year.
15-25 (b) If the board refuses to approve the annual audit report,
15-26 the board shall submit a copy of the report to the executive
15-27 director for filing within 135 days after the close of the
15-28 district's fiscal year, accompanied by a statement from the board
15-29 explaining the reasons for its failure to approve the report.
15-30 (c) Copies of the audit, the annual financial dormancy
15-31 affidavit, or annual financial report described in Sections 49.197
15-32 and 49.198 of this subchapter shall be filed annually in the office
15-33 of the district.
15-34 (d) Each district shall file with the executive director an
15-35 annual filing affidavit in a format prescribed by the executive
15-36 director, executed by a duly authorized representative of the
15-37 board, stating that all copies of the annual audit report, annual
15-38 financial dormancy affidavit, or annual financial report have been
15-39 filed under this section.
15-40 (e) The annual filing affidavit shall be submitted with the
15-41 applicable annual document when it is submitted to the executive
15-42 director for filing as prescribed by this subchapter.
15-43 (f) The executive director shall file with the attorney
15-44 general the names of any districts that do not comply with the
15-45 provisions of this subchapter.
15-46 Sec. 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
15-47 executive director may review the audit report of each district.
15-48 (b) The commission may request that the state auditor assist
15-49 in the establishment of standards and procedures for review of
15-50 district audits by the executive director.
15-51 (c) If the executive director has any objections or
15-52 determines any violations of generally accepted auditing standards
15-53 or accounting principles, statutes, or board rules, or if the
15-54 executive director has any recommendations, he or she shall notify
15-55 the board and the district's auditor.
15-56 (d) Before the audit report may be accepted by the executive
15-57 director as being in compliance with the provisions of this
15-58 subchapter, the board and the auditor shall remedy objections and
15-59 correct violations of which they have been notified by the
15-60 executive director.
15-61 (e) If the audit report indicates that any penal law has
15-62 been violated, the executive director shall notify the appropriate
15-63 county or district attorney and the attorney general.
15-64 Sec. 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT RECORDS.
15-65 (a) The executive director shall have access to all vouchers,
15-66 receipts, district fiscal and financial records, and other district
15-67 records which the executive director considers necessary.
15-68 (b) All district fiscal records shall be prepared on a
15-69 timely basis and maintained in an orderly manner in accordance with
15-70 generally accepted accounting principles. The fiscal records shall
16-1 be available for public inspection during regular business hours.
16-2 A district's fiscal records may be removed from the district's
16-3 office for the purposes of recording its fiscal affairs and
16-4 preparing an audit, during which time the fiscal records are under
16-5 the control of the district's auditor.
16-6 Sec. 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
16-7 financially dormant district is a district that had:
16-8 (1) $500 or less of receipts from operations, tax
16-9 assessments, loans, contributions, or any other sources during the
16-10 calendar year;
16-11 (2) $500 or less of disbursements of funds during the
16-12 calendar year;
16-13 (3) no bonds or other long-term (more than one year)
16-14 liabilities outstanding during the calendar year; and
16-15 (4) no cash or investments that exceeded $5,000 at any
16-16 time during the calendar year.
16-17 (b) A financially dormant district may elect to submit to
16-18 the executive director a financial dormancy affidavit instead of
16-19 complying with the audit requirements of Section 49.191 of this
16-20 code.
16-21 (c) The annual financial dormancy affidavit shall be
16-22 prepared in a format prescribed by the executive director and shall
16-23 be submitted for filing by a duly authorized representative of the
16-24 district.
16-25 (d) The affidavit must be filed annually on or before
16-26 January 31 with the executive director until such time as the
16-27 district becomes financially active and the board adopts a fiscal
16-28 year; thereafter, the district shall file annual audit reports as
16-29 prescribed by this subchapter.
16-30 (e) A district that becomes financially dormant after having
16-31 been financially active shall be required to file annual financial
16-32 dormancy affidavits on or before January 31, until such time the
16-33 district is either dissolved or again becomes financially active.
16-34 (f) Districts governed by this section are subject to
16-35 periodic audits by the executive director.
16-36 Sec. 49.198. AUDIT REPORT EXEMPTION. (a) A district that
16-37 is not collecting taxes may elect to file annual financial reports
16-38 with the executive director in lieu of the district's compliance
16-39 with Section 49.191 provided:
16-40 (1) the district had no bonds or other long-term (more
16-41 than one year) liabilities outstanding during the fiscal period;
16-42 (2) the district did not have gross receipts from
16-43 operations, loans, or contributions in excess of $100,000 during
16-44 the fiscal period; and
16-45 (3) the district's cash and temporary investments were
16-46 not in excess of $100,000 at any time during the fiscal period.
16-47 (b) The annual financial report must be accompanied by an
16-48 affidavit attesting to the accuracy and authenticity of the
16-49 financial report signed by a duly authorized representative of the
16-50 district.
16-51 (c) The annual financial report and affidavit in a format
16-52 prescribed by the executive director must be on file with the
16-53 executive director within 45 days after the close of the district's
16-54 fiscal year.
16-55 (d) Districts governed by this section are subject to
16-56 periodic audits by the executive director.
16-57 Sec. 49.199. POLICIES AND AUDITS OF DISTRICTS. (a) Subject
16-58 to the law governing the district, the board shall adopt the
16-59 following in writing:
16-60 (1) a code of ethics for district directors, officers,
16-61 employees, and persons who are engaged in handling investments for
16-62 the district;
16-63 (2) a policy relating to travel expenditures;
16-64 (3) a policy relating to district investments that
16-65 ensures that:
16-66 (A) purchases and sales of investments are
16-67 initiated by authorized individuals, conform to investment
16-68 objectives and regulations, and are properly documented and
16-69 approved; and
16-70 (B) periodic review is made of district
17-1 investments to evaluate investment performance and security;
17-2 (4) policies and procedures for selection, monitoring,
17-3 or review and evaluation of professional services;
17-4 (5) a uniform method of accounting and reporting for
17-5 industrial development bonds and pollution control bonds that
17-6 complies with requirements of the commission; and
17-7 (6) policies that ensure a better use of management
17-8 information including:
17-9 (A) budgets for use in planning and controlling
17-10 cost;
17-11 (B) an audit committee of the board; and
17-12 (C) uniform reporting requirements that use
17-13 "Audits of State and Local Governmental Units" as a guide on audit
17-14 working papers and that uses "Governmental Accounting and Financial
17-15 Reporting Standards."
17-16 (b) The state auditor may audit the financial transactions
17-17 of any district if the state auditor determines that the audit is
17-18 necessary.
17-19 Sec. 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
17-20 DISTRICTS. A district that provides wholesale potable water and
17-21 wastewater services shall adopt a program that provides such
17-22 wholesale customers an opportunity to review and comment on the
17-23 district's annual budget that applies to their services before that
17-24 budget is adopted by the board.
17-25 (Sections 49.201-49.210 reserved for expansion
17-26 SUBCHAPTER H. POWERS AND DUTIES
17-27 Sec. 49.211. POWERS. (a) A district shall have the
17-28 functions, powers, authority, rights, and duties which will permit
17-29 accomplishment of the purposes for which it was created or the
17-30 purposes authorized by the constitution, this code, or any other
17-31 law.
17-32 (b) A district is authorized to purchase, construct,
17-33 acquire, own, operate, maintain, repair, improve, or extend inside
17-34 and outside its boundaries any and all land, works, improvements,
17-35 facilities, plants, equipment, and appliances necessary to
17-36 accomplish the purposes of its creation or the purposes authorized
17-37 by this code or any other law.
17-38 Sec. 49.212. FEES AND CHARGES. (a) A district may adopt
17-39 and enforce all necessary charges, fees, or rentals, in addition to
17-40 taxes, for providing or making available any district facility or
17-41 service.
17-42 (b) A district may require a deposit for any services or
17-43 facilities furnished and the district may or may not provide that
17-44 the deposit will bear interest.
17-45 (c) Subject to observance of the procedure appropriate to
17-46 the circumstances, a district may discontinue any or all facilities
17-47 or services to prevent an abuse or to enforce payment of an unpaid
17-48 charge, fee, or rental due the district, including taxes which have
17-49 been delinquent for not less than six months.
17-50 (d) Notwithstanding any provision of law to the contrary, a
17-51 district which charges a fee which is an impact fee as described in
17-52 Section 395.001(4), Local Government Code, must comply with Chapter
17-53 395, Local Government Code. A charge or fee by a district for
17-54 construction, installation, or inspection of a tap or connection to
17-55 district water, sanitary sewer, or drainage facilities, including
17-56 all necessary service lines and meters, which (i) does not exceed
17-57 three (3) times the actual and reasonable costs to the district for
17-58 such work or (ii), if made to a nontaxable entity, does not exceed
17-59 the actual costs to the district for such work and for all
17-60 facilities which are necessary to provide district services to such
17-61 entity and that are financed or are to be financed in whole or in
17-62 part by tax-supported bonds of the district, shall not be deemed or
17-63 considered to be an impact fee under Chapter 395, Local Government
17-64 Code.
17-65 Sec. 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A district
17-66 may contract with a person or any public or private entity for the
17-67 joint construction, financing, ownership, and operation of any
17-68 works, improvements, facilities, plants, equipment, and appliances
17-69 necessary to accomplish any purpose or function permitted by a
17-70 district, or a district may purchase an interest in any project
18-1 used for any purpose or function permitted by a district.
18-2 (b) A district may enter into contracts with any person or
18-3 any public or private entity in the performance of any purpose or
18-4 function permitted by a district.
18-5 (c) A district may enter into contracts, which may be of
18-6 unlimited duration, with persons or any public or private entities
18-7 on the terms and conditions the board may consider desirable, fair,
18-8 and advantageous for:
18-9 (1) the purchase or sale of water;
18-10 (2) the collection, transportation, treatment, and
18-11 disposal of its domestic, industrial, and communal wastes or the
18-12 collection, transportation, treatment, and disposal of domestic,
18-13 industrial, and communal wastes of other persons;
18-14 (3) the gathering, diverting, and control of local
18-15 storm water, or other local harmful excesses of water;
18-16 (4) the continuing and orderly development of the land
18-17 and property within the district through the purchase,
18-18 construction, or installation of works, improvements, facilities,
18-19 plants, equipment, and appliances which the district may otherwise
18-20 be empowered and authorized to do or perform so that, to the
18-21 greatest extent reasonably possible, considering sound engineering
18-22 and economic practices, all of the land and property may be placed
18-23 in a position to ultimately receive the services of the works,
18-24 improvements, plants, facilities, equipment, and appliances;
18-25 (5) the maintenance and operation of any works,
18-26 improvements, facilities, plants, equipment, and appliances of the
18-27 district or of another person or public or private entity;
18-28 (6) the collection, treatment, and disposal of
18-29 municipal solid wastes;
18-30 (7) the exercise of any other rights, powers, and
18-31 duties granted to a district.
18-32 Sec. 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
18-33 provisions of Chapter 171, Local Government Code, shall apply to
18-34 the award of district contracts.
18-35 Sec. 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
18-36 district may purchase, construct, acquire, own, operate, repair,
18-37 improve, or extend all works, improvements, facilities, plants,
18-38 equipment, and appliances necessary to provide any services or
18-39 facilities authorized to be provided by the district to areas
18-40 contiguous to or in the vicinity of the district provided the
18-41 district does not duplicate a service or facility of another public
18-42 entity. A district providing potable water and sewer utility
18-43 services to household users shall not provide services or
18-44 facilities to serve areas outside the district which are also
18-45 within the corporate limits of a city without securing a resolution
18-46 or ordinance of the city granting consent for the district to serve
18-47 the area within the city.
18-48 (b) To secure money for this purpose, a district is
18-49 authorized to issue and sell negotiable bonds and notes which are
18-50 payable from the levy and collection of ad valorem taxes on all
18-51 taxable property within the district or from all or any designated
18-52 part of the revenues received from the operation of the district's
18-53 works, improvements, facilities, plants, equipment, and appliances
18-54 or from a combination of taxes and revenues.
18-55 (c) Any bonds and notes may be issued upon the terms and
18-56 conditions set forth in this code.
18-57 (d) A district shall not be required to hold a certificate
18-58 of convenience and necessity as a precondition for providing retail
18-59 water or sewer service to any customer or service area,
18-60 notwithstanding the fact that such customer or service area may be
18-61 located either within or outside the boundaries of the district or
18-62 has previously received water or sewer service from an entity
18-63 required by law to hold a certificate of convenience and necessity
18-64 as a precondition for such service. This subsection does not
18-65 authorize a district to provide services within an area for which a
18-66 retail public utility holds a certificate of convenience and
18-67 necessity or within the boundaries of another district without that
18-68 district's consent, unless the district has a valid certificate of
18-69 convenience and necessity to provide services to that area.
18-70 (e) A district is authorized to establish, maintain, revise,
19-1 charge, and collect the rates, fees, rentals, tolls, or other
19-2 charges for the use, services, and facilities which provide service
19-3 to areas outside the district which are considered necessary and
19-4 which may be higher than those charged for comparable service to
19-5 users within the district.
19-6 (f) The rates, fees, rental, tolls, or other charges shall
19-7 be at least sufficient to meet the expense of operating and
19-8 maintaining the services and facilities for water and sanitary
19-9 sewer system serving areas outside the district and to pay the
19-10 principal of and interest and redemption price on bonds issued to
19-11 purchase, construct, acquire, own, operate, repair, improve, or
19-12 extend the services or facilities.
19-13 Sec. 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A district
19-14 may contract for or employ its own peace officers with power to
19-15 make arrests when necessary to prevent or abate the commission of:
19-16 (1) any offense against the rules of the district when
19-17 the offense or threatened offense occurs on any land, water, or
19-18 easement owned or controlled by the district;
19-19 (2) any offense involving injury or detriment to any
19-20 property owned or controlled by the district; and
19-21 (3) any offense against the laws of the state.
19-22 (b) A district may appoint reserve peace officers who may be
19-23 called to serve as peace officers by the district during the actual
19-24 discharge of their official duties.
19-25 (c) A reserve peace officer serves at the discretion of the
19-26 district and may be called into service if the district considers
19-27 it necessary to have additional officers to preserve the peace in
19-28 or enforce the law of the district.
19-29 (d) A reserve peace officer on active duty and actively
19-30 engaged in assigned duties has the same rights, privileges, and
19-31 duties as any other peace officer of the district.
19-32 (e) Any peace officer, before beginning to perform any
19-33 duties and at the time of appointment, must take an oath and
19-34 execute a bond conditioned on faithful performance of such
19-35 officer's duties in the amount of $1,000 payable to the district.
19-36 The oath and the bond shall be filed in the district office.
19-37 Sec. 49.217. Operation of Certain Motor Vehicles On or Near
19-38 Public Facilities. (a) In this section, "motor vehicle" means a
19-39 self-propelled device in, upon, or by which a person or property is
19-40 or may be transported or drawn on a road or highway.
19-41 (b) Except as provided in Subsections (c) and (d) of this
19-42 section, a person may not operate a motor vehicle on a levee, in a
19-43 drainage ditch, or on land adjacent to a levee, canal, ditch,
19-44 exposed conduit, pipeline, pumping plant, storm water facility, or
19-45 other facility for the transmission, storage, treatment, or
19-46 distribution of water, sewage, or storm water that is owned or
19-47 controlled by a district.
19-48 (c) A district may authorize the use of motor vehicles on
19-49 land that it owns or controls by posting signs on the property.
19-50 (d) This section does not prohibit a person from:
19-51 (1) driving on a public road or highway; or
19-52 (2) operating a motor vehicle that is being used for
19-53 repair or maintenance of public water, sewer, or storm water
19-54 facilities.
19-55 (e) A person who operates a motor vehicle in violation of
19-56 Subsection (b) of this section commits an offense. An offense
19-57 under this section is a Class C misdemeanor, except that if a
19-58 person has been convicted of an offense under this section, a
19-59 subsequent offense is a Class B misdemeanor.
19-60 Sec. 49.218. Acquisition of Property. (a) A district or a
19-61 water supply corporation may acquire land, materials, waste
19-62 grounds, easements, rights-of-way, equipment, contract or permit
19-63 rights or interests and other property, real or personal,
19-64 considered necessary for the purpose of accomplishing any one or
19-65 more of the district's or water supply corporation's purposes
19-66 provided in this code or in any other law.
19-67 (b) A district or water supply corporation shall have the
19-68 right to acquire property by gift, grant, or purchase and the right
19-69 to acquire property shall include property considered necessary for
19-70 the construction, improvement, extension, enlargement, operation,
20-1 or maintenance of the plants, works, improvements, facilities,
20-2 equipment, or appliances of a district or a water supply
20-3 corporation.
20-4 (c) A district or water supply corporation may acquire
20-5 either the fee simple title to or an easement on all land, both
20-6 public and private, either inside or outside its boundaries and may
20-7 acquire the title to or an easement on property other than land
20-8 held in fee.
20-9 (d) A district or water supply corporation may also lease
20-10 property from others for its use on such terms and conditions as
20-11 the board of the district or the board of directors of the water
20-12 supply corporation may determine to be advantageous.
20-13 Sec. 49.219. ACQUISITION OF EXISTING FACILITIES. Any
20-14 district may acquire by agreement all or any part of existing
20-15 water, sanitary sewer, or drainage systems of any water supply
20-16 corporation, including works, improvements, facilities, plants,
20-17 equipment, appliances, contract rights, and other assets and rights
20-18 that are completed, partially completed, or under construction, and
20-19 in connection therewith a district may assume all or any part of
20-20 the contracts, indebtedness, or obligations of the corporation
20-21 related to said systems, including any contracts, indebtedness, or
20-22 obligations related to or payable from the revenues of said
20-23 systems, and may perform all or any part of the obligations of said
20-24 corporation in the same manner and to the same extent that any
20-25 other purchaser or assignee could be bound on any such contracts,
20-26 indebtedness, or obligations. Before assuming any indebtedness or
20-27 obligations of such corporation related to any such system, a
20-28 district other than a district defined in Section 49.181(h)(3) or
20-29 (4) shall obtain the approval of the commission of such assumption.
20-30 Sec. 49.220. Right to Use Existing RightS-of-Way. All
20-31 districts or water supply corporations are given rights-of-way,
20-32 within, along, under, and across all public, state, county, city,
20-33 town, or village roads, highways, and rights-of-way and other
20-34 public rights-of-way without the requirement for surety bond or
20-35 security.
20-36 Sec. 49.221. Right to Enter Land. (a) The directors,
20-37 engineers, attorneys, agents, operators, and employees of a
20-38 district or water supply corporation may go on any land to inspect,
20-39 make surveys, or perform tests to determine the condition, value,
20-40 and usability of the property, with reference to the proposed
20-41 location of works, improvements, plants, facilities, equipment, or
20-42 appliances. The cost of restoration shall be borne by the district
20-43 or the water supply corporation.
20-44 (b) District employees and agents are entitled to enter any
20-45 public or private property within the boundaries of the district or
20-46 adjacent to any reservoir or other property owned by the district
20-47 at any reasonable time for the purpose of inspecting and
20-48 investigating conditions relating to the quality of water in the
20-49 state or the compliance with any rule, regulation, permit, or other
20-50 order of the district. District employees or agents acting under
20-51 this authority who enter private property shall observe the
20-52 establishment's rules and regulations concerning safety, internal
20-53 security, and fire protection and shall notify any occupant or
20-54 management of their presence and shall exhibit proper credentials.
20-55 Sec. 49.222. Eminent Domain. (a) A district or water
20-56 supply corporation may acquire by condemnation any land, easements,
20-57 or other property inside or outside the district boundaries, or the
20-58 boundaries of the certificated service area for a water supply
20-59 corporation, necessary for water, sanitary sewer, storm drainage,
20-60 or flood drainage or control purposes or for any other of its
20-61 projects or purposes, and may elect to condemn either the fee
20-62 simple title or a lesser property interest.
20-63 (b) The right of eminent domain shall be exercised in the
20-64 manner provided in Chapter 21, Property Code, except that a
20-65 district or a water supply corporation shall not be required to
20-66 give bond for appeal or bond for costs in any condemnation suit or
20-67 other suit to which it is a party and shall not be required to
20-68 deposit more than the amount of any award in any suit.
20-69 (c) The power of eminent domain may not be used for the
20-70 condemnation of land for the purpose of acquiring rights to
21-1 underground water or of water or water rights.
21-2 Sec. 49.223. Costs of Relocation of Property. (a) In the
21-3 event that the district or the water supply corporation, in the
21-4 exercise of the power of eminent domain or power of relocation, or
21-5 any other power, makes necessary the relocation, raising, lowering,
21-6 rerouting, or change in grade of or alteration in construction of
21-7 any road, bridge, highway, railroad, electric transmission line,
21-8 telegraph, or telephone properties, facilities, or pipelines, all
21-9 necessary relocations, raising, lowering, rerouting, or change in
21-10 grade or alteration of construction shall be done at the sole
21-11 expense of the district or the water supply corporation unless
21-12 otherwise agreed to in writing. Such relocation shall be
21-13 accomplished in a timely manner so that the project of the district
21-14 or the water supply corporation is not delayed.
21-15 (b) "Sole expense" means the actual cost of the relocation,
21-16 raising, lowering, rerouting, or change in grade or alteration of
21-17 construction and providing comparable replacement without enhancing
21-18 the facilities after deducting from it the net salvage value
21-19 derived from the old facility.
21-20 Sec. 49.224. POWER TO CONDEMN CEMETERIES. (a) The use of
21-21 land for the construction of district dams and creation of lakes
21-22 and reservoirs for the purpose of conservation and development of
21-23 the natural resources of this state is hereby declared to be
21-24 superior to all other uses; and for these purposes a district has
21-25 the power of eminent domain to acquire land, improvements, and
21-26 other property owned and held for cemeteries or burial places that
21-27 is necessary for the construction of a dam or that lies inside the
21-28 area to be covered by the lake or reservoir or within 300 feet of
21-29 the high water line of the lake or reservoir.
21-30 (b) Except as otherwise provided by this subchapter, the
21-31 procedure in condemnation proceedings is governed by Chapter 21,
21-32 Property Code.
21-33 (c) Notice shall be served on the title owner of the land on
21-34 which the cemetery is situated as provided in Chapter 21, Property
21-35 Code. General notice to persons having relatives interred in the
21-36 cemetery shall be given by publication for two consecutive weeks in
21-37 a newspaper circulated in the county in which the cemetery is
21-38 situated.
21-39 (d) The measure of damages in these eminent domain
21-40 proceedings shall be assessed as in other condemnation cases. An
21-41 additional amount of damages shall be assessed to cover the cost of
21-42 removing and reinterring the bodies interred in the cemetery or
21-43 burial place and the cost of removing and resetting the monuments
21-44 or markers erected at the graves.
21-45 (e) The additional assessment shall be deposited in the
21-46 registry of the county court and disbursed only for the purpose of
21-47 removing and reinterring the bodies in other cemeteries in Texas
21-48 agreed on between the district and the relatives of the deceased
21-49 persons.
21-50 (f) If in any case the district and the relatives of a
21-51 deceased person cannot agree within 30 days on a cemetery for
21-52 reinterment, or no relatives appear within that time, then the
21-53 county judge shall designate the cemetery for reinterment.
21-54 (g) Instead of depositing the additional assessment in the
21-55 registry of the court, the district may execute a bond sufficient
21-56 to cover costs of removing and reinterring the bodies. The bond
21-57 shall be payable to and approved by the county judge and
21-58 conditioned that the bodies will be removed and reinterred as
21-59 provided by this section.
21-60 Sec. 49.225. Leases. A district may lease any of its
21-61 property, real or personal, to any person. The lease may contain
21-62 the terms and provisions which the board determines to be
21-63 advantageous to the district.
21-64 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
21-65 Property. (a) Any land, interest in land, or personal property
21-66 owned by the district which is found by the board to be surplus and
21-67 is not needed by the district may be sold under order of the board
21-68 either by public or private sale, or the land, interest in land, or
21-69 personal property may be exchanged for other land, interest in
21-70 land, or personal property needed by the district. Except as
22-1 provided in Subsection (b), land, interest in land, or personal
22-2 property must be exchanged for like fair market value, which value
22-3 may be determined by the district.
22-4 (b) Any property dedicated to or acquired by the district
22-5 without expending district funds may be abandoned or released to
22-6 the original grantor, the grantor's heirs, assigns, executors, or
22-7 successors upon terms and conditions deemed necessary or
22-8 advantageous to the district and without receiving compensation for
22-9 such abandonment or release. District property may also be
22-10 abandoned, released, exchanged or transferred to another district,
22-11 municipality, county, countywide agency, or authority upon terms
22-12 and conditions deemed necessary or advantageous to the district.
22-13 Narrow strips of property resulting from boundary or surveying
22-14 conflicts or similar causes, or from insubstantial encroachments by
22-15 abutting property owners, may be abandoned, released, exchanged or
22-16 transferred to such abutting owners upon terms and conditions
22-17 deemed necessary or advantageous to the district. Chapter 272,
22-18 Local Government Code, shall not apply to this subsection.
22-19 (c) Before either a public or a private sale of real
22-20 property not required by the district, the district shall give
22-21 notice of the intent to sell by publishing notice once a week for
22-22 two consecutive weeks in one or more newspapers with general
22-23 circulation in the district.
22-24 (d) If the district has outstanding bonds secured by a
22-25 pledge of tax revenues, the proceeds of the sale of property not
22-26 required by the district shall be applied to retire outstanding
22-27 bonds of the district when required by the district's applicable
22-28 bond resolutions.
22-29 (e) If the district does not have any outstanding bonds, the
22-30 proceeds derived from the sale of the personal property or land not
22-31 required by the district may be used for any lawful purpose.
22-32 Sec. 49.227. Authority to Act Jointly. A district or water
22-33 supply corporation may act jointly with any other person or entity,
22-34 private or public, whether within the State of Texas or the United
22-35 States, in the performance of any of the powers and duties
22-36 permitted by this code or any other laws.
22-37 Sec. 49.228. Damage to Property. A person who wilfully
22-38 destroys, defaces, damages or interferes with district or water
22-39 supply corporation property is guilty of a Class B misdemeanor.
22-40 Sec. 49.229. Grants and Gifts. A district may accept
22-41 grants, gratuities, advances, and loans in any form from any source
22-42 approved by the board, including any governmental entity, any
22-43 private or public corporation, and any other person and may make
22-44 and enter into contracts, agreements, and covenants which the board
22-45 considers appropriate in connection with acceptance of grants,
22-46 gratuities, advances, and loans.
22-47 Sec. 49.230. Area-Wide Wastewater Treatment. The powers and
22-48 duties conferred on the district are granted subject to the policy
22-49 of the state to encourage the development and use of integrated
22-50 area-wide wastewater collection, treatment, and disposal systems to
22-51 serve the wastewater disposal needs of the citizens of the state
22-52 whenever economically feasible and competitive to do so, it being
22-53 an objective of the policy to avoid the economic burden to the
22-54 people and the impact on the quality of the water in the state
22-55 which result from the construction and operation of numerous small
22-56 wastewater collection, treatment, and disposal facilities to serve
22-57 an area when an integrated area-wide wastewater collection,
22-58 treatment, and disposal system for the area can be reasonably
22-59 provided.
22-60 Sec. 49.231. STANDBY FEES. (a) In this section:
22-61 (1) "Standby fee" means a charge, other than a tax,
22-62 imposed on undeveloped property for the availability of potable
22-63 water, sanitary sewer, or drainage facilities and services.
22-64 (2) "Undeveloped property" means a tract, lot, or
22-65 reserve in the district to which no potable water, sanitary sewer,
22-66 or drainage connections have been made for which:
22-67 (A) water, sanitary sewer, or drainage
22-68 facilities and services are available;
22-69 (B) water supply, wastewater treatment plant
22-70 capacity, or drainage capacity sufficient to serve the property is
23-1 available; or
23-2 (C) major water supply lines, wastewater
23-3 collection lines, or drainage facilities with capacity sufficient
23-4 to serve the property are available.
23-5 (b) A district that proposes to provide or actually provides
23-6 retail potable water or sewer utility services, or drainage
23-7 services as the principal function of the district, may, with the
23-8 approval of the commission, adopt and impose on the owners of
23-9 undeveloped property in the district a standby fee that is in
23-10 addition to taxes levied by the district. A district may not
23-11 impose a standby fee for debt service purposes on undeveloped
23-12 property unless the facilities and services available to the
23-13 property have been financed by the district; however, a district
23-14 may impose a standby fee for operating and maintaining facilities
23-15 which it has not financed. The district may impose standby fees in
23-16 different amounts to fairly reflect the level and type of services
23-17 and facilities available to serve different property. The intent
23-18 of the standby fee is to distribute a fair portion of the cost
23-19 burden for operating and maintaining the facilities and for
23-20 financing capital costs of the facilities to owners of property who
23-21 have not constructed improvements but have potable water, sewer, or
23-22 drainage capacity available. Any revenues collected from the
23-23 standby fees shall be used to pay operation and maintenance
23-24 expenses, to pay debt service on the bonds, or both.
23-25 (c) If the board described in Subsection (b) of this section
23-26 desires to adopt and impose a standby fee, the board shall submit
23-27 to the commission an application for authority to adopt and impose
23-28 the standby fee. The application must describe the tracts of
23-29 undeveloped property in the district and state the amount of the
23-30 proposed fee.
23-31 (d) The executive director shall examine an application
23-32 submitted under Subsection (c) of this section and shall
23-33 investigate the financial condition of the district, including the
23-34 district's assets, liabilities, sources of revenue, level of
23-35 utility service rates, and level of debt service and maintenance
23-36 tax rates. On the request of the executive director, the district
23-37 shall submit any information the executive director considers
23-38 relevant to the examination and investigation. The executive
23-39 director shall prepare a written report on the application and the
23-40 district's financial condition, retain a copy of the report, and
23-41 send a copy of the report to the commission and the district.
23-42 (e) The commission shall hold a hearing on an application
23-43 submitted under Subsection (c) of this section. Notice of the
23-44 hearing shall be published in a newspaper of general circulation in
23-45 the county or counties in which the district is located once a week
23-46 for two consecutive weeks. The first publication must occur not
23-47 later than the 30th day before the date of the hearing. The
23-48 district shall send, not later than the 30th day before the date of
23-49 the hearing, notice of the hearing by certified mail, return
23-50 receipt requested, to each owner of undeveloped property in the
23-51 district. On the date the application is filed, the district's tax
23-52 assessor and collector shall certify to the district the names of
23-53 the persons owning undeveloped land in the district as reflected by
23-54 the most recent certified tax roll of the district. Notice of the
23-55 hearing must be sent by certified mail, return receipt requested,
23-56 to each mortgagee of record that has submitted a written request to
23-57 be informed of any hearings. To be effective, the written request
23-58 must be received by the district not later than the 60th day before
23-59 the date of the hearing. The written request for notice must
23-60 include the name and address of the mortgagee, the name of the
23-61 property owner in the district, and a brief property description.
23-62 (f) The commission shall consider the application, the
23-63 report of the executive director, and any other evidence allowed by
23-64 commission rule. The commission may approve the application only
23-65 if the commission finds that the fee is necessary to maintain the
23-66 financial integrity and stability of the district and fairly
23-67 allocates the costs of district facilities and services among
23-68 property owners of the district.
23-69 (g) After a hearing on an application under Subsection (e)
23-70 of this section, the commission shall issue an order approving or
24-1 disapproving the application. The commission shall retain a copy
24-2 of the order and send a copy of the order to the district.
24-3 (h) The commission may approve the adoption and imposition
24-4 of the standby fee for a period of not more than three years. The
24-5 imposition of a standby fee may be renewed for additional periods
24-6 of not more than three years each in the same manner provided in
24-7 this section for initial approval of the standby fee.
24-8 (i) If approved by the commission, the board by resolution
24-9 or order may impose an annual standby fee on undeveloped land in
24-10 the district.
24-11 (j) The board may:
24-12 (1) charge interest, at the rate of one percent a
24-13 month, on a standby fee not paid in a timely manner in accordance
24-14 with the resolution or order imposing the standby fee; and
24-15 (2) refuse to provide potable water, sanitary sewer,
24-16 or drainage service to the property for which the fee was assessed
24-17 until all delinquent standby fees on the property and interest on
24-18 those fees are fully paid.
24-19 (k) A standby fee imposed under this section is a personal
24-20 obligation of the person owning the undeveloped property on January
24-21 1 of the year for which the fee is assessed. A person is not
24-22 relieved of the obligation on transfer of title to the property.
24-23 On January 1 of each year, a lien attaches to undeveloped property
24-24 to secure payment of any standby fee imposed under this section and
24-25 the interest, if any, on the fee. The lien has the same priority
24-26 as a lien for taxes of the district.
24-27 (l) If a standby fee imposed under this section is not paid
24-28 in a timely manner, a district may file suit to foreclose the lien
24-29 securing payment of the fee and interest or to enforce the personal
24-30 obligation for the fee and interest, or both. The district may
24-31 recover, in addition to the fee and interest, reasonable costs,
24-32 including attorney's fees, incurred by the district in enforcing
24-33 the lien or obligation not to exceed 20 percent of the delinquent
24-34 fee and interest. A suit authorized by this subsection must be
24-35 filed not later than the fourth anniversary of the date the fee
24-36 became due. A fee delinquent for more than four years and interest
24-37 on the fee are considered paid unless a suit is filed before the
24-38 expiration of the four-year period.
24-39 (m) Chapter 395, Local Government Code, does not apply to a
24-40 standby fee imposed under this section.
24-41 (n) For purposes of title insurance policies issued under
24-42 the authority of Chapter 9, Insurance Code, standby fees are
24-43 considered taxes.
24-44 (Sections 49.232-49.270 reserved for expansion
24-45 SUBCHAPTER I. CONSTRUCTION CONTRACTS
24-46 Sec. 49.271. CONTRACTS FOR CONSTRUCTION WORK. (a) Any
24-47 contract made by the board for construction work shall conform to
24-48 the provisions of this chapter.
24-49 (b) The contract shall contain, incorporate by reference, or
24-50 have attached to it, the specifications, plans, and details for
24-51 work included in the contract. All work shall be done in
24-52 accordance with these plans and specifications and any authorized
24-53 change orders under the supervision of the board or its designee.
24-54 (c) The district may adopt minimum criteria for the
24-55 qualifications of bidders on its construction contracts and for
24-56 sureties issuing payment and performance bonds. For contracts over
24-57 $25,000, the district shall require a person who bids to submit a
24-58 certified or cashier's check on a responsible bank in the state
24-59 equal to at least two percent of the total amount of the bid as a
24-60 good faith deposit to ensure execution of the contract. The
24-61 district may also require attendance by a principal of each
24-62 prospective bidder at mandatory pre-bid conferences and may make
24-63 any reasonable additional requirements regarding the taking of bids
24-64 which the district may deem appropriate in order to obtain
24-65 competitive bids from responsible contractors and to minimize
24-66 contract disputes.
24-67 Sec. 49.272. REPORTS FURNISHED TO PROSPECTIVE BIDDERS. The
24-68 board shall furnish to any person who desires to bid on
24-69 construction work, and who makes a request in writing, a copy of
24-70 the engineer's report or plans and specifications showing the
25-1 details of the work to be done. The board may charge for each copy
25-2 of the engineer's report or plans and specifications an amount
25-3 sufficient to cover the cost of making the copy.
25-4 Sec. 49.273. CONSTRUCTION CONTRACT AWARD. (a) The board
25-5 shall contract for construction in accordance with this section.
25-6 (b) A construction contract may cover all the work to be
25-7 provided by the district or the various elements of the work may be
25-8 segregated for the purpose of receiving bids and awarding
25-9 contracts. A contract may provide that the work will be
25-10 constructed in stages over a period of years.
25-11 (c) A construction contract may provide for the payment of a
25-12 total sum that is the completed cost of the work or may be based on
25-13 bids to cover cost of units of the various elements entering into
25-14 the work as estimated and approximately specified by the district's
25-15 engineers, or a contract may be let and awarded in any other form
25-16 or composite of forms and to any responsible person or persons
25-17 that, in the board's judgment, will be most advantageous to the
25-18 district and result in the best and most economical completion of
25-19 the district's proposed plants, improvements, facilities, works,
25-20 equipment, and appliances.
25-21 (d) For construction contracts for $25,000 or more, the
25-22 board shall advertise the letting of the contract, including the
25-23 general conditions, time, and place of opening of sealed bids. The
25-24 notice shall be published in one or more newspapers circulated in
25-25 each county in which part of the district is located. If one
25-26 newspaper meets both of these requirements, publication in such
25-27 newspaper is sufficient. If there are more than four counties in
25-28 the district, notice may be published in any newspaper with general
25-29 circulation in the district. The notice shall be published once a
25-30 week for three consecutive weeks before the date that the bids are
25-31 opened, and the first publication shall be not later than the 21st
25-32 day before the date of the opening of the sealed bids.
25-33 (e) For construction contracts for $15,000 or more but less
25-34 than $25,000, the board shall solicit written competitive bids on
25-35 uniform written specifications from at least three bidders.
25-36 (f) For construction contracts of less than $15,000, the
25-37 board is not required to advertise or seek competitive bids.
25-38 (g) The board may not subdivide work to avoid the
25-39 advertising requirements specified in this section.
25-40 (h) The board may not accept bids that include substituted
25-41 items unless the substituted items were included in the original
25-42 bid proposal and all bidders had the opportunity to bid on the
25-43 substituted items; or if notice is given to all bidders at a
25-44 mandatory pre-bid conference.
25-45 (i) Change orders to contracts may be issued only as a
25-46 result of unanticipated conditions encountered during construction
25-47 or changes in regulatory criteria or to facilitate project
25-48 coordination with other political entities.
25-49 (j) The provisions of this subchapter do not apply to
25-50 contracts for personal or professional services or for a utility
25-51 service operator or to contracts made by a district engaged in the
25-52 distribution and sale of electric energy to the public.
25-53 (k) The provisions of this subchapter do not apply to high
25-54 technology procurements. The provisions of Sections 252.021(a) and
25-55 252.042, Local Government Code, shall apply to high technology
25-56 procurements.
25-57 Sec. 49.274. EMERGENCY APPROVAL OF DISTRICT PROJECTS. If a
25-58 district experiences an emergency condition that may create a
25-59 serious health hazard or unreasonable economic loss to the district
25-60 that requires immediate corrective action, the district may
25-61 negotiate limited duration contracts to make the necessary repairs.
25-62 The district shall submit to the executive director details
25-63 describing the specific serious health hazard or unreasonable
25-64 economic loss as soon as practicable following the issuance of the
25-65 contracts. Whenever possible, the district should obtain prior
25-66 approval of the executive director before authorizing the contract,
25-67 but failure to obtain prior approval shall not void the contract.
25-68 This section does not apply to a district defined in Section
25-69 49.181(h)(3) or (4).
25-70 Sec. 49.275. CONTRACTOR'S BOND. Any person, firm,
26-1 partnership, or corporation to whom a contract is let must give
26-2 good and sufficient performance and payment bonds in accordance
26-3 with Article 5160, Revised Statutes, and any minimum criteria for
26-4 sureties issuing such bonds adopted by a district in accordance
26-5 with Section 49.271.
26-6 Sec. 49.276. PAYMENT FOR CONSTRUCTION WORK. (a) The
26-7 district shall pay the contract price of construction contracts
26-8 only as provided in this section.
26-9 (b) The district will make progress payments under
26-10 construction contracts monthly as the work proceeds, or at more
26-11 frequent intervals as determined by the board or its designee, on
26-12 estimates approved by the board or its designee.
26-13 (c) If requested by the district or district engineer, the
26-14 contractor shall furnish a breakdown of the total contract price
26-15 showing the amount included for each principal category of the
26-16 work, in such detail as requested, to provide a basis for
26-17 determining progress payments. In the preparation of estimates,
26-18 the district engineer may authorize material delivered on the site
26-19 and preparatory work done to be considered if the consideration is
26-20 specifically authorized by the contract and if the contractor
26-21 furnishes satisfactory evidence that he has acquired title to the
26-22 material and that it will be utilized on the work covered by the
26-23 contract.
26-24 (d) In making progress payments, 10 percent of the estimated
26-25 amount shall be retained until final completion and acceptance of
26-26 the contract work. However, if the board at any time after 50
26-27 percent of the work has been completed finds that satisfactory
26-28 progress is being made, it may authorize any of the remaining
26-29 progress payments to be made in full. Also, if the work is
26-30 substantially complete, the board, if it finds the amount retained
26-31 to be in excess of the amount adequate for the protection of the
26-32 district, at its discretion may release to the contractor all or a
26-33 portion of the excess amount. The district is not obligated to pay
26-34 interest on amounts retained except as provided herein. The
26-35 district shall not be obligated to pay any interest on the 10
26-36 percent retainage held on the first 50 percent of work completed.
26-37 If the district holds any retainage on the remaining 50 percent of
26-38 the work completed, the district shall pay interest on such
26-39 retainage from the date the retainage is withheld to the date of
26-40 payment to the contractor. The interest rate to be paid on such
26-41 retainage shall be the rate of interest paid by the district's
26-42 depository bank on interest bearing accounts of similar amounts
26-43 during the period of time interest accrues as provided herein.
26-44 (e) On completion and acceptance of each separate project,
26-45 public work, or other division of the contract, on which the price
26-46 is stated separately in the contract, payment may be made without
26-47 retention of a percentage.
26-48 Sec. 49.277. INSPECTION OF AND REPORTS ON CONSTRUCTION WORK.
26-49 (a) The board shall have control of construction work being done
26-50 for the district under contract to determine whether or not the
26-51 contract is being fulfilled and shall have the construction work
26-52 inspected by the district engineer or other designated person.
26-53 (b) During the progress of the construction work, the
26-54 district engineer or other designated person shall submit to the
26-55 board detailed written reports showing whether or not the
26-56 contractor is complying with the contract, and when the work is
26-57 completed the district engineer shall submit to the board a final
26-58 detailed report including as-built plans of the facilities showing
26-59 whether or not the contractor has fully complied with the contract.
26-60 (Sections 49.278-49.300 reserved for expansion
26-61 SUBCHAPTER J. ANNEXATION OR EXCLUSION OF LAND
26-62 Sec. 49.301. ADDING LAND BY PETITION OF LANDOWNER. (a) In
26-63 addition to any other provision provided by law, the owner or
26-64 owners of land whether or not contiguous to the district or
26-65 otherwise may file with the board a petition requesting that there
26-66 be included in the district the land described in the petition by
26-67 metes and bounds or by lot and block number if there is a recorded
26-68 plat of the area to be included in the district. The petition may
26-69 request the district to condition the annexation on certain
26-70 conditions, including the voter authorization of bonds to serve the
27-1 area to be annexed.
27-2 (b) If the district has bonds, notes, or other obligations
27-3 outstanding or bonds payable in whole or in part from taxes which
27-4 have been voted but are unissued, the board may require the
27-5 petitioner or petitioners to assume their share of the outstanding
27-6 bonds, notes, or other obligations and the voted but unissued tax
27-7 bonds of the district and authorize the board to levy a tax on
27-8 their property in each year while any of the bonds, notes, or other
27-9 obligations payable in whole or in part from taxation are
27-10 outstanding to pay their share of the indebtedness.
27-11 (c) The petition of the landowner to add land to the
27-12 district shall be signed and executed in the manner provided by law
27-13 for the conveyance of real estate.
27-14 (d) The board shall hear and consider the petition and may
27-15 add to the district the land described in the petition if it is
27-16 feasible, practicable, and to the advantage of the district and if
27-17 the district's system and other improvements of the district are
27-18 sufficient or will be sufficient to supply the added land without
27-19 injuring land already in the district.
27-20 (e) If the district has bonds payable in whole or in part
27-21 from taxation which are voted but unissued at the time of an
27-22 annexation and the petitioners assume the bonds and authorize the
27-23 district to levy a tax on their property to pay the bonds, then the
27-24 board may issue the voted but unissued bonds even though the
27-25 boundaries of the district have been altered since the
27-26 authorization of the bonds.
27-27 (f) A petition which is granted adding land to the district
27-28 shall be filed for record and shall be recorded in the office of
27-29 the county clerk of the county or counties in which the land is
27-30 located.
27-31 Sec. 49.302. ADDING LAND BY PETITION OF LESS THAN ALL THE
27-32 LANDOWNERS. (a) In addition to the method of adding land to a
27-33 district which is described in Section 49.301 of this subchapter,
27-34 defined areas of land, whether or not they are contiguous to the
27-35 district, may be annexed to the district in the manner set forth in
27-36 this section.
27-37 (b) A petition requesting the annexation of a defined area
27-38 signed by a majority in value of the owners of land in the defined
27-39 area, as shown by the tax rolls of the county or counties in which
27-40 such area is located, or signed by 50 landowners if the number of
27-41 landowners is more than 50, shall describe the land by metes and
27-42 bounds or by lot and block number if there is a recorded plat of
27-43 the area and shall be filed with the secretary of the board.
27-44 (c) It shall be the duty of the board to pass an order
27-45 fixing a time and place at which the petition for annexation shall
27-46 be heard which shall not be less than 30 days from the day of the
27-47 order calling the hearing.
27-48 (d) The secretary of the board shall issue a notice setting
27-49 forth the time and place of the hearing and describing the area
27-50 proposed to be annexed. Notice of the hearing shall be given by
27-51 posting copies of the notice in three public places in the district
27-52 and in one public place in the area proposed to be annexed for at
27-53 least 14 days before the day of the hearing and by publishing a
27-54 copy of the notice in a newspaper of general circulation in the
27-55 county or counties in which the area proposed to be annexed is
27-56 located one time at least 14 days before the day of the hearing.
27-57 (e) If upon the hearing of the petition it is found by the
27-58 board that the proposed annexation of the area to the district is
27-59 feasible, practicable, and to the advantage of the district and if
27-60 the district's system and other improvements of the district are
27-61 sufficient or will be sufficient to supply the added land without
27-62 injuring land already in the district, then the board, by order
27-63 entered in its minutes, may receive the proposed area as an
27-64 addition to and to become a part of the district. The order adding
27-65 the proposed territory to the district need not include all of the
27-66 land described in the petition if at the hearing a modification or
27-67 change is found necessary or desirable by the board.
27-68 (f) A copy of the order annexing land to the district,
27-69 signed by a majority of the members of the board and attested by
27-70 the secretary of the board, shall be filed and recorded in the deed
28-1 records of the county or counties in which the district is located
28-2 if the land is finally annexed to the district.
28-3 (g) After the order is recorded the area shall be a
28-4 component part of the district.
28-5 (h) The annexed area shall bear its pro rata share of all
28-6 bonds, notes, or other obligations or taxes which may be owed,
28-7 contracted, or authorized by the district to which it has been
28-8 added.
28-9 (i) Before the added area shall be subject to all or any
28-10 part of the bonds, notes, obligations, or taxes, created before the
28-11 annexation of the area to the district, the board shall order an
28-12 election to be held in the district, as enlarged by reason of the
28-13 annexation of the area, on the question of the assumption of the
28-14 bonds, notes, obligations, and taxes by the annexed area.
28-15 (j) At the same election, the board may also submit a
28-16 proposition on the question of whether the annexed area should
28-17 assume its part of the bonds of the district payable in whole or in
28-18 part from taxes which have been voted previously but not yet issued
28-19 or sold and the levy of an ad valorem tax on all taxable property
28-20 within the area annexed along with a tax on the rest of the
28-21 district for the payment of the bonds.
28-22 (k) If the election results favorably, the district shall be
28-23 authorized to issue its voted but unissued tax bonds even though
28-24 the boundaries of the district have been changed since the original
28-25 election approving the bonds.
28-26 (l) At the election called for the purpose of determining
28-27 whether the annexed area shall assume the bonds, notes, or other
28-28 obligations or taxes of the district, the board in a separate
28-29 proposition may also submit the question of whether the board
28-30 should be authorized to issue bonds payable in whole or in part
28-31 from taxes to provide service to the area annexed.
28-32 (m) In the event that the district has bonds, notes, or
28-33 obligations or taxes which may be owed, contracted, or authorized
28-34 at the time an area is annexed or if the district has voted but
28-35 unissued bonds payable in whole or in part from taxes at the time
28-36 of an annexation, the board may provide in its order annexing an
28-37 area to the district that the annexation will not be complete or
28-38 final unless the indebtedness, tax or bond, note, or other
28-39 obligation assumption elections result favorably to the assumption
28-40 of the district's outstanding bonds, notes, or other obligations
28-41 and voted but unissued bonds.
28-42 (n) If the board elects to submit the question of whether
28-43 the board should be authorized to issue bonds to provide service to
28-44 the area annexed, the board may also provide in its order annexing
28-45 an area to the district that the annexation will not be complete
28-46 unless the election results favorably to the issuance of bonds to
28-47 serve the annexed area.
28-48 (o) Whenever an election is ordered to be held in the
28-49 district for the purpose of the assumption of bonds, notes, or
28-50 other obligations or taxes or the assumption of voted but unissued
28-51 bonds by reason of the annexation of any area, then the election
28-52 shall be held and notice given as provided for bond elections held
28-53 by the district.
28-54 (p) The district has the same right and duty to furnish
28-55 service to the annexed land that it previously had to furnish
28-56 service to other land in the district and the board shall endeavor
28-57 to serve all land in the district without discrimination.
28-58 Sec. 49.303. EXCLUDING LAND FROM DISTRICT. (a) Before a
28-59 district orders an election for the authorization of bonds payable
28-60 in whole or in part from taxes, the board may, on its own motion,
28-61 call a hearing on the question of the exclusion of land from the
28-62 district under the provisions of Sections 49.303-49.307 of this
28-63 subchapter, if the exclusions are practicable, just, or desirable.
28-64 (b) The board must call a hearing on the exclusion of land
28-65 or other property from the district on the written petition of any
28-66 landowner or property owner in the district filed with the
28-67 secretary of the board before the first election on the question of
28-68 whether bonds should be issued payable in whole or in part from
28-69 taxes is ordered.
28-70 (c) The board may hold a hearing on the exclusion of land or
29-1 other property from the district if the district has not issued
29-2 bonds payable in whole or in part from taxes, and if a landowner or
29-3 property owner submits a signed petition to the secretary of the
29-4 board evidencing the consent of the owners of a majority of the
29-5 acreage proposed to be excluded and a majority of the taxable
29-6 property in the district, as reflected by the most recent certified
29-7 tax roll of the district.
29-8 (d) A district that has previously held an election at which
29-9 approval was given for the issuance of bonds payable in whole or in
29-10 part from taxes may not rely on that election for the issuance of
29-11 the bonds if after the bond election, but before the bonds are
29-12 issued, land is excluded from the district as provided by this
29-13 subchapter. The board must call and hold another bond election and
29-14 receive voter approval as provided by this subchapter before
29-15 issuing those bonds.
29-16 Sec. 49.304. HEARING TO ANNOUNCE PROPOSED EXCLUSIONS AND TO
29-17 RECEIVE PETITIONS. (a) If the board determines that an exclusion
29-18 hearing should be held or if a written petition requesting an
29-19 exclusion hearing is filed with the secretary of the board as
29-20 provided in Section 49.303 of this subchapter, the board shall give
29-21 notice of a time and place of a hearing to announce its own
29-22 conclusions relating to land or other property to be excluded and
29-23 to receive petitions for exclusion of land or other property.
29-24 (b) The board shall publish notice of the hearing once a
29-25 week for two consecutive weeks in one or more newspapers with
29-26 general circulation in the district. The first publication shall
29-27 appear at least 14 days before the day of the hearing.
29-28 (c) The notice shall advise all interested property owners
29-29 of their right to present petitions for exclusions of land or other
29-30 property and to offer evidence in support of the petitions and
29-31 their right to contest any proposed exclusion based on either a
29-32 petition or the board's own conclusions and to offer evidence in
29-33 support of the contest.
29-34 Sec. 49.305. PETITION. (a) A petition for exclusion of
29-35 land must accurately describe by metes and bounds or lot and block
29-36 number the land to be excluded. A petition for exclusion of other
29-37 property must describe the property to be excluded.
29-38 (b) A petition for exclusion shall be filed with the
29-39 district at least seven days before the hearing and shall state
29-40 clearly the particular grounds on which the exclusion is sought.
29-41 Only the stated grounds shall be considered.
29-42 Sec. 49.306. GROUNDS FOR EXCLUSION. Exclusions from the
29-43 district may be made on the grounds that:
29-44 (1) to retain certain land or other property within
29-45 the district's taxing power would be arbitrary and unnecessary to
29-46 conserve the public welfare, would impair or destroy the value of
29-47 the property desired to be excluded, and would constitute the
29-48 arbitrary imposition of a confiscatory burden;
29-49 (2) to retain any given land or other property in the
29-50 district and to extend to it, either presently or in the future,
29-51 the benefits, service, or protection of the district's facilities
29-52 would create an undue and uneconomical burden on the remainder of
29-53 the district; or
29-54 (3) the land desired to be excluded cannot be bettered
29-55 as to conditions of living and health, or provided with water or
29-56 sewer service or protected from flood, or drained, or freed from
29-57 interruption of traffic caused by excess of water on the roads,
29-58 highways, or other means of transportation serving the land, or
29-59 otherwise benefited by the district's proposed improvements.
29-60 Sec. 49.307. HEARING AND ORDER EXCLUDING LAND. (a) The
29-61 board may adjourn the hearing from one day to another and until all
29-62 persons desiring to be heard are heard. The board immediately
29-63 shall specifically describe all property which it proposes to
29-64 exclude on its own motion and shall hear first any protests and
29-65 evidence against exclusions proposed on the board's own motion.
29-66 (b) After considering all engineering data and other
29-67 evidence presented to it, the board shall determine whether the
29-68 facts disclose the affirmative of the propositions stated in
29-69 Subdivision (1) or (2) or, if appropriate, in Subdivision (3) of
29-70 Section 49.306 of this subchapter. If the affirmative exists, the
30-1 board shall enter an order excluding all land or other property
30-2 falling within the conditions defined by the respective
30-3 subdivisions and shall redefine in the order the boundaries of the
30-4 district to embrace all land not excluded. A copy of the order
30-5 excluding land and redefining the boundaries of the district shall
30-6 be filed in the deed records of the county or counties in which the
30-7 district is situated.
30-8 Sec. 49.308. SUIT TO REVIEW EXCLUSION. (a) Any person
30-9 owning an interest in land affected by the order may file a
30-10 petition within 20 days after the effective date of the order to
30-11 review, set aside, modify, or suspend the order.
30-12 (b) The venue in any action shall be in any district court
30-13 which has jurisdiction in the county in which the district is
30-14 located. If the district includes land in more than one county,
30-15 the venue shall be in the district court having jurisdiction in the
30-16 county in which the major portion of the acreage of the land sought
30-17 to be excluded from the district is located.
30-18 (c) A person may appeal from the judgment or order of a
30-19 district court in a suit brought under the provisions of this
30-20 section to the court of civil appeals and supreme court as in other
30-21 civil cases in which the district court has original jurisdiction.
30-22 The appeal is subject to the statutes and rules of practice and
30-23 procedure in civil cases.
30-24 Sec. 49.309. EXCLUSION OF NONIRRIGATED PROPERTY. For the
30-25 purposes of Sections 49.309-49.314, the following definitions shall
30-26 apply:
30-27 (1) "Nonirrigated property" means:
30-28 (A) land that:
30-29 (i) is not irrigable;
30-30 (ii) the owners of a majority of the
30-31 acreage of which no longer intend to irrigate; or
30-32 (iii) has been subdivided into:
30-33 (a) town lots, or town lots and
30-34 blocks, or small parcels of the same general nature of town lots;
30-35 or
30-36 (b) town blocks and lots designed,
30-37 intended, or suitable for residential, commercial, or other
30-38 nonagricultural purposes, as distinguished from farm acreage
30-39 whether subdivided into a subdivision or not; and
30-40 (c) including streets, alleys,
30-41 parkways, parks, and railroad property and rights-of-way located in
30-42 the subdivided land.
30-43 The property described in Subdivision (1) shall be considered
30-44 nonirrigated property regardless of whether the land is within or
30-45 near a municipality and regardless of whether a plat or map of the
30-46 subdivision has been duly filed for record and recorded in the
30-47 office of the county clerk of the county in which the land or any
30-48 part of the land is situated.
30-49 The term does not include land that within the year preceding
30-50 the date of the hearing under Section 49.310 was used for farming
30-51 or agricultural purposes.
30-52 (2) "District" means a water control and improvement,
30-53 water improvement, or irrigation district, the principal purpose of
30-54 which is furnishing water for the irrigation of agricultural lands
30-55 or that is principally engaged in furnishing water for the
30-56 irrigation of agricultural lands.
30-57 Sec. 49.310. AUTHORITY TO EXCLUDE LAND. (a) A petition for
30-58 exclusion may be filed by the owner or owners, or their authorized
30-59 agent, of a majority in acreage of nonirrigated property included
30-60 within the boundaries of a district.
30-61 (b) Upon receipt of a petition for exclusion, or upon its
30-62 own motion, a district shall issue an order excluding the property
30-63 if, after notice and hearing, the board finds that:
30-64 (1) the described property is nonirrigated property;
30-65 (2) the applicable requirements of Section 49.311 have
30-66 been satisfied;
30-67 (3) the owner or owners do not object to the exclusion
30-68 of their nonirrigated property; and
30-69 (4) it is in the best interest of the district and of
30-70 the described property to exclude that property from the district.
31-1 (c) The district shall follow the notice and hearing
31-2 provisions and other procedural requirements for excluding
31-3 territory which are applicable to that district as set out in
31-4 Sections 49.303-49.307 of this code.
31-5 Sec. 49.311. CONSENT FROM HOLDERS OF INDEBTEDNESS. If the
31-6 district has outstanding bonded indebtedness, or indebtedness under
31-7 a loan from a governmental agency, a written consent from an
31-8 authorized representative of the holder or holders of the
31-9 indebtedness consenting to the exclusion shall be obtained and
31-10 filed with the district before the hearing.
31-11 Sec. 49.312. RESULTS OF EXCLUSION. (a) Upon issuance of an
31-12 order excluding property, that property is no longer a part of the
31-13 district and is not entitled to water service from the district.
31-14 (b) Any taxes, assessments, or other charges owed to the
31-15 district at the time of exclusion remain the obligation of the
31-16 owner of the excluded property and continue to be secured by
31-17 statutory liens on the property, if any.
31-18 (c) Once excluded, the landowner has no further liability to
31-19 the district for future taxes, assessments, or other charges of the
31-20 district.
31-21 (d) A copy of the order excluding the property from the
31-22 district certified and acknowledged by the secretary of the board
31-23 shall be recorded by the district in the real property records of
31-24 the county in which the excluded property is located as evidence of
31-25 the exclusion.
31-26 Sec. 49.313. DISTRICT FACILITIES ON EXCLUDED PROPERTY. If
31-27 any canals, ditches, pipelines, pumps, or other facilities of the
31-28 district are located on lands excluded by the resolution of the
31-29 board, the exclusion does not affect or interfere with any rights
31-30 that the district has to maintain and continue operation of the
31-31 facilities as located for the purpose of servicing lands remaining
31-32 in the district.
31-33 Sec. 49.314. WATER ALLOCATIONS. (a) After the district
31-34 adopts an order excluding nonirrigated property, a city or other
31-35 water supply corporation that serves the excluded land with a
31-36 potable water supply may petition the district to apply to the
31-37 Texas Water Commission to convert the proportionate irrigation
31-38 water allocation of the land excluded as nonirrigated property, as
31-39 determined by the district, from irrigation use to municipal use
31-40 allocation.
31-41 (b) The district shall make such application to the
31-42 commission within thirty (30) days of the filing of a petition by
31-43 the city or water supply corporation that serves the land with a
31-44 potable water supply, provided the city or other water supply
31-45 corporation pays the district the amount the district estimates
31-46 will be its reasonable expenses and attorney's fees incurred in the
31-47 commission conversion proceedings and enters into an agreement with
31-48 the district setting forth the basis on which the water allocation
31-49 shall be delivered, or made available, to the city or water supply
31-50 corporation covering such terms as the entities may agree to, and
31-51 in the event the parties cannot agree, such dispute shall not be
31-52 subject to the jurisdiction of the Texas Water Commission, or its
31-53 successors, under this code, but subject to resolution through
31-54 alternative dispute resolution. In such commission proceeding, the
31-55 city or water supply corporation shall provide evidence to the
31-56 commission of the current or projected need within a five (5) year
31-57 period for the municipal-use water allocation after such conversion
31-58 as a condition of such conversion of use of the district's water
31-59 rights from irrigation use to municipal use.
31-60 (Sections 49.315-49.320 reserved for expansion
31-61 SUBCHAPTER K. DISSOLUTION
31-62 Sec. 49.321. DISSOLUTION AUTHORITY. After notice and
31-63 hearing, the commission may dissolve any district which is inactive
31-64 for a period of five consecutive years and has no outstanding
31-65 bonded indebtedness.
31-66 Sec. 49.322. NOTICE OF HEARING. (a) The commission shall
31-67 give notice of the dissolution hearing which briefly describes the
31-68 reasons for the proceeding.
31-69 (b) The notice shall be published once each week for two
31-70 consecutive weeks before the day of hearing in some newspaper
32-1 having general circulation in the county or counties in which the
32-2 district is located. The first publication shall be 30 days before
32-3 the day of the hearing.
32-4 (c) The commission shall give notice of the hearing by first
32-5 class mail addressed to the directors of the district according to
32-6 the last record on file with the executive director.
32-7 Sec. 49.323. INVESTIGATION. The executive director shall
32-8 investigate the facts and circumstances of the district to be
32-9 dissolved and the result of the investigation shall be included in
32-10 a written report.
32-11 Sec. 49.324. ORDER OF DISSOLUTION. The commission may enter
32-12 an order dissolving the district at the conclusion of the hearing
32-13 if it finds that the district has performed none of the functions
32-14 for which it was created for a period of five consecutive years
32-15 before the day of the proceeding and that the district has no
32-16 outstanding bonded indebtedness.
32-17 Sec. 49.325. CERTIFIED COPY OF ORDER. The commission shall
32-18 file a certified copy of the order of dissolution of the district
32-19 in the deed records of the county or counties in which the district
32-20 is located. If the particular district was created by a special
32-21 Act of the legislature, the commission shall file a certified copy
32-22 of the order of dissolution with the secretary of state.
32-23 Sec. 49.326. APPEALS. (a) Appeals from a commission order
32-24 dissolving a district shall be filed and heard in the district
32-25 court of any of the counties in which the land is located.
32-26 (b) The trial on appeal shall be de novo and the substantial
32-27 evidence rule shall not apply.
32-28 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
32-29 of a district by the commission, all assets of the district shall
32-30 escheat to the State of Texas. The assets shall be administered by
32-31 the state treasurer and shall be disposed of in the manner provided
32-32 by Chapter 72, Property Code.
32-33 (Sections 49.328-49.350 reserved for expansion
32-34 SUBCHAPTER L. FIRE DEPARTMENTS
32-35 Sec. 49.351. FIRE DEPARTMENTS. (a) A district providing
32-36 potable water or sewer service to household users may establish,
32-37 operate, and maintain a fire department to perform all
32-38 fire-fighting activities within the district as provided in this
32-39 subchapter and may issue, with voter approval, bonds for financing
32-40 the establishment of the fire department including the construction
32-41 and purchase of necessary buildings, facilities, and equipment and
32-42 the provision of an adequate water supply.
32-43 (b) After approval of the district electors of a plan to
32-44 operate or jointly operate a fire department, the district or
32-45 districts shall provide an adequate system and water supply for
32-46 fire-fighting purposes and may construct and purchase necessary
32-47 buildings, facilities, and equipment and may employ all necessary
32-48 personnel including supervisory personnel to operate the fire
32-49 department.
32-50 (c) Bonds issued for establishment of the fire department
32-51 shall be authorized and issued, and a district shall be authorized
32-52 to levy a tax to pay the principal of and interest on such bonds,
32-53 as provided by law for authorization and issuance of other bonds of
32-54 the district.
32-55 (d) Two or more districts may contract to operate a joint
32-56 fire department for their districts and shall include in the
32-57 contract a system for joint administration and operation of the
32-58 fire department, the extent of services to be provided, a method
32-59 for funding the department from funds of each district, and any
32-60 other terms and conditions the parties consider necessary.
32-61 (e) A district may contract with any other person to perform
32-62 fire-fighting services within the district.
32-63 (f) Before a district establishes a fire department,
32-64 contracts to operate a joint fire department, or contracts with
32-65 another person to perform fire-fighting services within the
32-66 district, the district must comply with the provisions of
32-67 Subsections (g), (h), and (i) of this section.
32-68 (g) A district or districts proposing to act jointly shall
32-69 develop a detailed plan for the establishment, operation, and
32-70 maintenance of the proposed department, including a detailed
33-1 presentation of all financial requirements. If a district is
33-2 entering into a contract under Subsection (e) of this section, the
33-3 district shall develop a plan that describes in detail the
33-4 facilities and equipment to be devoted to service to the district
33-5 and all proposals for providing the service and that includes a
33-6 presentation of the financial requirements under the contract.
33-7 Before adoption of a plan and any contract by the district, the
33-8 board shall hold a hearing at which any person residing in the
33-9 district may present testimony for and against the proposed plan
33-10 and any proposed contract. Notice of the hearing and the place at
33-11 which the plan and any contract may be examined shall be posted in
33-12 two public places within the district at least 10 days before the
33-13 date of the hearing.
33-14 (h) After adoption of the plan and any contract by the
33-15 board, the plan and financial presentation, together with any
33-16 contract and a written report in a form prescribed by the executive
33-17 director describing existing fire departments and fire-fighting
33-18 services available within 25 miles of the boundaries of the
33-19 district, shall be submitted to the executive director for
33-20 consideration by the commission under rules adopted by the
33-21 commission. Before approval or disapproval, the commission shall
33-22 hold a hearing. Notice of the hearing before the commission shall
33-23 be posted by the board in at least two public places in the
33-24 district at least five days before the hearing. Before the
33-25 commission approves the application, it must find that it is
33-26 economically feasible for the district to implement the plan and
33-27 meet the provisions of any contract and shall take into
33-28 consideration in giving its approval the general financial
33-29 condition of the district and the economic feasibility of the
33-30 district carrying out the plan or meeting the obligations of the
33-31 contract.
33-32 (i) After approval by the commission, the district shall
33-33 submit to the electors of the district at the election to approve
33-34 bonds for financing the plan, or if no bonds are to be approved, at
33-35 an election called for approval of the plan, the proposition of
33-36 whether or not the plan should be implemented or entered into by
33-37 the district. The ballots at the election shall be printed, as
33-38 applicable, to provide for voting for or against the proposition:
33-39 "The implementation of the plan for (operation/joint operation) of
33-40 a fire department"; or "The plan and contract to provide
33-41 fire-fighting services for the district."
33-42 (j) No funds of the district may be used to establish a fire
33-43 department, to enter into joint operation of a fire department, or
33-44 to contract for fire-fighting services without the approval of a
33-45 plan by the electors as provided in this section. However, the
33-46 district may use available funds for preparation of a plan and any
33-47 contract. The operation of a fire department or provision of
33-48 fire-fighting services is an essential public necessity, and a
33-49 district may discontinue any and all services, including water and
33-50 sewer service, to any person who fails to timely pay fire
33-51 department service fees or any other assessment adopted by the
33-52 district to support the fire department or the provision of
33-53 fire-fighting services.
33-54 (Sections 49.352-49.450 reserved for expansion
33-55 SUBCHAPTER M. NOTICES, REPORTS, AND BANKRUPTCY
33-56 Sec. 49.451. POSTING SIGNS IN THE DISTRICT. (a) A district
33-57 subject to the notice requirements of Section 49.452 shall, within
33-58 30 days after the effective date of this section or the creation of
33-59 the district, post signs indicating the existence of the district
33-60 at two principal entrances to the district.
33-61 (b) The size and exact location of the information contained
33-62 on the signs shall be determined by the executive director.
33-63 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
33-64 proposes to sell or convey real property located in a district
33-65 which was created under this title or by a special Act of the
33-66 legislature, which is providing or proposing to provide, as the
33-67 district's principal function, water, sanitary sewer, drainage, and
33-68 flood control or protection facilities or services, or any of these
33-69 facilities or services that have been financed or are proposed to
33-70 be financed with bonds of the district payable in whole or part
34-1 from taxes of the district, or by imposition of a standby fee, if
34-2 any, to household or commercial users, other than agricultural,
34-3 irrigation, or industrial users, and which district includes less
34-4 than all the territory in at least one county and which, if located
34-5 within the corporate area of a city, includes less than 75 percent
34-6 of the incorporated area of the city or which is located outside
34-7 the corporate area of a city in whole or in substantial part, must
34-8 first give to the purchaser the written notice provided in this
34-9 section.
34-10 (2) The provisions of this section shall not be
34-11 applicable to:
34-12 (A) transfers of title under any type of lien
34-13 foreclosure;
34-14 (B) transfers of title by deed in cancellation
34-15 of indebtedness secured by a lien upon the property conveyed; or
34-16 (C) transfers of title by reason of a will or
34-17 probate proceedings.
34-18 (b) The prescribed notice for all districts shall be
34-19 executed by the seller and shall read as follows:
34-20 "The real property, described below, which you are about to
34-21 purchase is located in the ___________________ District. The
34-22 district has taxing authority separate from any other taxing
34-23 authority, and may, subject to voter approval, issue an unlimited
34-24 amount of bonds and levy an unlimited rate of tax in payment of
34-25 such bonds. As of this date, the rate of taxes levied by the
34-26 district on real property located in the district is $__________ on
34-27 each $100 of assessed valuation. If the district has not yet
34-28 levied taxes, the most recent projected rate of debt service tax,
34-29 as of this date, is $__________ on each $100 of assessed valuation.
34-30 The total amount of bonds which has been approved by the voters and
34-31 which have been or may, at this date, be issued is $__________, and
34-32 the aggregate initial principal amounts of all bonds issued for one
34-33 or more of the specified facilities of the district and payable in
34-34 whole or in part from property taxes is $__________.
34-35 "The district has the authority to adopt and impose a standby
34-36 fee on property in the district that has water, sanitary sewer, or
34-37 drainage facilities and services available but not connected and
34-38 which does not have a house, building, or other improvement located
34-39 thereon and does not substantially utilize the utility capacity
34-40 available to the property. The district may exercise the authority
34-41 without holding an election on the matter. As of this date, the
34-42 most recent amount of the standby fee is $__________. An unpaid
34-43 standby fee is a personal obligation of the person that owned the
34-44 property at the time of imposition and is secured by a lien on the
34-45 property. Any person may request a certificate from the district
34-46 stating the amount, if any, of unpaid standby fees on a tract of
34-47 property in the district.
34-48 "The purpose of this district is to provide water, sewer,
34-49 drainage, or flood control facilities and services within the
34-50 district through the issuance of bonds payable in whole or in part
34-51 from property taxes. The cost of these utility facilities is not
34-52 included in the purchase price of your property, and these utility
34-53 facilities are owned or to be owned by the district. The legal
34-54 description of the property which you are acquiring is as follows:
34-55 ____________________________________________________________
34-56 Date
34-57 _________________________
34-58 Signature of Seller
34-59 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
34-60 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
34-61 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
34-62 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
34-63 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
34-64 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
34-65 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
34-66 "The undersigned purchaser hereby acknowledges receipt of the
34-67 foregoing notice at or prior to execution of a binding contract for
34-68 the purchase of the real property described in such notice or at
34-69 closing of purchase of the real property.
34-70 ____________________________________________________________
35-1 Date
35-2 _________________________
35-3 Signature of Purchaser
35-4 "(Note: Correct district name, tax rate, bond amounts, and
35-5 legal description are to be placed in the appropriate space.
35-6 Except for notices included as an addendum or paragraph of a
35-7 purchase contract, the notice shall be executed by the seller and
35-8 purchaser, as indicated. If the district does not propose to
35-9 provide one or more of the specified facilities and services, the
35-10 appropriate purpose may be eliminated. If the district has not yet
35-11 levied taxes, a statement of the district's most recent projected
35-12 rate of debt service tax is to be placed in the appropriate space.
35-13 If the district does not have approval from the commission to adopt
35-14 and impose a standby fee, the second paragraph of the notice may be
35-15 deleted. For the purposes of the notice form required to be given
35-16 to the prospective purchaser prior to execution of a binding
35-17 contract of sale and purchase, a seller and any agent,
35-18 representative, or person acting on the seller's behalf may modify
35-19 the notice by substitution of the words 'January 1, ______' for the
35-20 words 'this date' and place the correct calendar year in the
35-21 appropriate space."
35-22 (c) The notice required by this section shall be given to
35-23 the prospective purchaser prior to execution of a binding contract
35-24 of sale and purchase either separately or as an addendum or
35-25 paragraph of a purchase contract. In the event a contract of
35-26 purchase and sale is entered into without the seller providing the
35-27 notice required by this subsection, the purchaser shall be entitled
35-28 to terminate the contract. If, however, the seller furnishes the
35-29 required notice at or prior to closing the purchase and sale
35-30 contract and the purchaser elects to close even though such notice
35-31 was not timely furnished prior to execution of the contract, it
35-32 shall be conclusively presumed that the purchaser has waived all
35-33 rights to terminate the contract and recover damages or other
35-34 remedies or rights under the provision of this section.
35-35 Notwithstanding any provision of this subchapter to the contrary,
35-36 all sellers, title companies, examining attorneys, and any agent,
35-37 representative, or person acting on their behalf shall not be
35-38 liable for damages under the provisions of either Subsection (l) or
35-39 (m) of this section or liable for any other damages to any person
35-40 for failure to provide the notice required by this section to a
35-41 purchaser prior to execution of a binding contract of a purchase
35-42 and sale when the district has not filed the information form and
35-43 map or plat as required under Section 49.455 of this code.
35-44 (d) The purchaser shall sign the notice or purchase contract
35-45 including such notice to evidence the receipt of notice.
35-46 (e) At the closing of purchase and sale, a separate copy of
35-47 such notice with current information shall be executed by the
35-48 seller and purchaser, acknowledged, and thereafter recorded in the
35-49 deed records of the county in which the property is located. For
35-50 the purposes of this section, all sellers, title companies, and
35-51 examining attorneys, and any agent, representative, or person
35-52 acting on their behalf, shall be entitled to rely on the accuracy
35-53 of the information form and map or plat as last filed by each
35-54 district under Section 49.455 of this code or the information
35-55 contained in or shown on the notice form issued by the district
35-56 under Section 49.453 of this code in completing the notice form to
35-57 be executed by the seller and purchaser at the closing of purchase
35-58 and sale. Any information taken from the information form or map
35-59 or plat as last filed by each district and the information
35-60 contained in or shown on the notice form issued by the district
35-61 under Section 49.453 of this code shall be for purposes of this
35-62 section conclusively presumed as a matter of law to be correct.
35-63 All subsequent sellers, purchasers, title insurance companies,
35-64 examining attorneys, and lienholders shall be entitled to rely upon
35-65 the information form and map or plat filed by the district or the
35-66 notice form issued by the district under Section 49.453 of this
35-67 code.
35-68 (f) For the purposes of this section, an executory contract
35-69 of purchase and sale having a performance period of more than six
35-70 months shall be considered a sale under Subsection (a) of this
36-1 section.
36-2 (g) For the purposes of the notice form to be given to the
36-3 prospective purchaser prior to execution of a binding contract of
36-4 sale and purchase, a seller and any agent, representative, or
36-5 person acting in the seller's behalf may modify the notice by
36-6 substitution of the words "January 1, ____" for the words "this
36-7 date" and place the correct calendar year in the appropriate space.
36-8 All sellers, and all persons completing the prescribed notice in
36-9 the sellers' behalf, shall be entitled to rely on the information
36-10 contained in or shown on the information form and map or plat filed
36-11 of record by the district under Section 49.455 in completing the
36-12 prescribed form to be given to the prospective purchaser prior to
36-13 execution of a binding contract of sale and purchase. Except as
36-14 otherwise provided in Subsection (e) of this section, any
36-15 information taken from the information form or map or plat filed of
36-16 record by the district in effect as of January 1 of each year shall
36-17 be, for purposes of the notice to be given to the prospective
36-18 purchaser prior to execution of a binding contract of sale and
36-19 purchase, conclusively presumed as a matter of law to be correct
36-20 for the period January 1 through December 31 of such calendar year.
36-21 A seller and any persons completing the prescribed notice in the
36-22 seller's behalf may provide more recent information, if available,
36-23 than the information contained in or shown on the information form
36-24 and map or plat filed of record by the district under Section
36-25 49.455 in effect as of January 1 of each year in completing the
36-26 prescribed form to be given to the purchaser prior to execution of
36-27 a binding contract of sale and purchase. Nothing contained in the
36-28 preceding sentence shall be construed to create an affirmative duty
36-29 on the part of a seller or any persons completing the prescribed
36-30 notice in the seller's behalf to provide more recent information
36-31 than the information taken from the information form and map or
36-32 plat filed of record by the district as of January 1 of each year
36-33 in completing the prescribed notice to be given to the purchaser
36-34 prior to execution of a binding contract of sale and purchase. All
36-35 subsequent sellers, purchasers, title insurance companies,
36-36 examining attorneys, and lienholders shall be entitled to rely upon
36-37 the information form and map or plat filed by the district.
36-38 (h) If such notice is given at closing as provided in
36-39 Subsection (e) of this section, a purchaser, or the purchaser's
36-40 heirs, successors, or assigns, shall not be entitled to maintain
36-41 any action for damages or maintain any action against a seller,
36-42 title insurance company, or lienholder, or any agent,
36-43 representative, or person acting in their behalf, by reason of use
36-44 by the seller of the information filed for record by the district
36-45 or reliance by the seller on the filed plat and filed legal
36-46 description of the district in determining whether the property to
36-47 be sold and purchased is within the district. No action may be
36-48 maintained against any title company for failure to disclose the
36-49 inclusion of the described real property within a district when the
36-50 district has not filed for record the information form, map, or
36-51 plat with the clerk of the county or counties in which the district
36-52 is located.
36-53 (i) Any purchaser who purchases any real property in a
36-54 district and who thereafter sells or conveys the same shall on
36-55 closing of such subsequent sale be conclusively considered as
36-56 having waived any prior right to damages under this section.
36-57 (j) It is the express intent of this section that all
36-58 sellers, title insurance companies, examining attorneys, vendors of
36-59 property and tax information, real estate brokers and lienholders,
36-60 and any agent, representative, or person acting on their behalf,
36-61 shall be entitled to rely on the accuracy of the information form
36-62 and map or plat as last filed by each district or the information
36-63 contained in or shown on the notice form issued by the district
36-64 under Section 49.453 of this code, or for the purposes of the
36-65 notice to be given the purchaser prior to execution of a binding
36-66 contract of sale and purchase the information contained in or shown
36-67 on the information form and map or plat filed of record by the
36-68 district in effect as of January 1 of each year for the period
36-69 January 1 through December 31 of such calendar year.
36-70 (k) Except as otherwise provided in Subsection (c) of this
37-1 section, if any sale or conveyance of real property within a
37-2 district is not made in compliance with the provisions of this
37-3 section, the purchaser may institute a suit for damages under the
37-4 provisions of either Subsection (l) or Subsection (m) of this
37-5 section.
37-6 (l) A purchaser of real property covered by the provisions
37-7 of this section, if the sale or conveyance of the property is not
37-8 made in compliance with this section, may institute a suit for
37-9 damages in the amount of all costs relative to the purchase of the
37-10 property plus interest and reasonable attorney's fees. The suit
37-11 for damages may be instituted jointly or severally against the
37-12 person, firm, corporation, partnership, organization, business
37-13 trust, estate, trust, association, or other legal entity which sold
37-14 or conveyed the property to the purchaser. Following the recovery
37-15 of damages under this subsection, the amount of the damages shall
37-16 first be paid to satisfy all unpaid obligations on each outstanding
37-17 lien or liens on the property and the remainder of the damage
37-18 amount shall be paid to the purchaser. On payment of all damages
37-19 respectively to the lienholders and purchaser, the purchaser shall
37-20 reconvey the property to the seller.
37-21 (m) A purchaser of real property covered by the provisions
37-22 of this section, if the sale or conveyance of the property is not
37-23 made in compliance with this section, may institute a suit for
37-24 damages in an amount not to exceed $5,000, plus reasonable
37-25 attorney's fees.
37-26 (n) A purchaser is not entitled to recover damages under
37-27 both Subsections (l) and (m) of this section, and entry of a final
37-28 decision awarding damages to the purchaser under either Subsection
37-29 (l) or Subsection (m) of this section shall preclude the purchaser
37-30 from recovering damages under the other subsection.
37-31 Notwithstanding any part or provision of the general or special
37-32 laws or the common law of the state to the contrary, the relief
37-33 provided under Subsections (l) and (m) of this section shall be the
37-34 exclusive remedies for a purchaser aggrieved by the seller's
37-35 failure to comply with the provisions of this section. Any action
37-36 for damages shall not, however, apply to, affect, alter, or impair
37-37 the validity of any existing vendor's lien, mechanic's lien, or
37-38 deed of trust lien on the property.
37-39 (o) A suit for damages under the provisions of this section
37-40 must be brought within 90 days after the purchaser receives the
37-41 first district tax notice or within four years after the property
37-42 is sold or conveyed to the purchaser, whichever time occurs first,
37-43 or the purchaser loses the right to seek damages under this
37-44 section.
37-45 (p) Notwithstanding any provisions of this subchapter to the
37-46 contrary, a purchaser may not recover damages of any kind under
37-47 this section if that person:
37-48 (1) purchases an equity in real property and in
37-49 conjunction with the purchase assumes any liens, whether purchase
37-50 money or otherwise; and
37-51 (2) does not require proof of title by abstract, title
37-52 policy, or any other proof of title.
37-53 Sec. 49.453. NOTICE FORM FROM DISTRICT. (a) A district
37-54 covered by Section 49.452 shall also maintain in the district
37-55 office the particular form of Notice to Purchasers required by
37-56 Section 49.452 to be furnished by a seller to a purchaser of real
37-57 property in that district and shall, upon written request of any
37-58 person, issue the notice form completed by a district with all
37-59 information required to be furnished by the district. A notice
37-60 form issued by a district under the provisions of this section
37-61 shall include a written statement that the notice form is being
37-62 issued by the district, the date of its issuance, and the
37-63 district's telephone number. A district shall not be required to
37-64 orally provide the information.
37-65 (b) A district may charge a reasonable fee as determined by
37-66 the district not to exceed $10 for the issuance of a notice form
37-67 pursuant to Subsection (a) of this section. The notice form shall
37-68 be delivered by regular mail or made available at the district's
37-69 office. If a district is requested to deliver the notice form to a
37-70 person by an alternative method, the district may impose a charge
38-1 not to exceed the actual cost of such delivery.
38-2 (c) A district may delegate the responsibility for issuance
38-3 of the particular form of Notice to Purchasers to an employee or
38-4 agent of the district. A district shall file with the commission
38-5 the name, address, and telephone number of the employee or agent of
38-6 the district responsible for issuance of the notice forms and shall
38-7 notify the commission in writing within seven days after there is a
38-8 change to the information required to be filed with the commission
38-9 under the provisions of this subsection.
38-10 (d) Any notice issued by the district shall contain the
38-11 information effective as of the date of its issuance.
38-12 Sec. 49.454. NOTICE OF UNPAID STANDBY FEES. (a) A district
38-13 covered by Section 49.452 shall, on the written request of any
38-14 person, issue a certificate stating the amount of any unpaid
38-15 standby fees, including interest on the fees, that have been
38-16 assessed against a tract of property in the district. The district
38-17 may charge a fee not to exceed $10 for each certificate. A
38-18 certificate issued through fraud or collusion is void.
38-19 (b) If the district issues a certificate containing an
38-20 erroneous statement under Subsection (a) of this section and the
38-21 owner of the property transfers the property to a good faith
38-22 purchaser for value, the lien on the property provided by Section
38-23 49.231(k) of this chapter is extinguished to the extent of the
38-24 error.
38-25 (c) This section does not affect the liability for any
38-26 unpaid standby fees of the former owner of the undeveloped property
38-27 under Section 49.231(k) of this chapter.
38-28 Sec. 49.455. FILING INFORMATION. (a) The board covered by
38-29 the provisions of Section 49.452 of this subchapter shall file with
38-30 the county clerk in each of the counties in which all or part of
38-31 the district is located a duly affirmed and acknowledged
38-32 information form which includes the information required in
38-33 Subsection (b) of this section, and a complete and accurate map or
38-34 plat showing the boundaries of the district.
38-35 (b) The information form filed by a district under this
38-36 section shall include:
38-37 (1) the name of the district;
38-38 (2) the complete and accurate legal description of the
38-39 boundaries of the district;
38-40 (3) the most recent rate of district taxes on property
38-41 located in the district;
38-42 (4) the total amount of bonds which have been approved
38-43 by the voters and which may be issued by the district (excluding
38-44 refunding bonds and any bonds or portion of bonds payable solely
38-45 from revenues received or expected to be received pursuant to a
38-46 contract with a governmental entity);
38-47 (5) the aggregate initial principal amount of all
38-48 bonds of the district payable in whole or part from taxes
38-49 (excluding refunding bonds and any bonds or portion of bonds
38-50 payable solely from revenues received or expected to be received
38-51 pursuant to a contract with a governmental entity) which have been
38-52 previously issued and remain outstanding;
38-53 (6) whether a standby fee is imposed by the district
38-54 and, if so, the amount of the standby fee;
38-55 (7) the date on which the election to confirm the
38-56 creation of the district was held if such was required;
38-57 (8) a statement of the functions performed or to be
38-58 performed by the district; and
38-59 (9) the particular form of Notice to Purchasers
38-60 required by Section 49.452 of this subchapter to be furnished by a
38-61 seller to a purchaser of real property in that district completed
38-62 by the district with all information required to be furnished by
38-63 the district.
38-64 If a district has not yet levied taxes, a statement to such
38-65 effect together with the district's most recent projected rate of
38-66 debt service tax shall be substituted for Subdivisions (3) and (4)
38-67 of this subsection.
38-68 (c) The information form and map or plat required by this
38-69 section shall be signed by a majority of the members of the board
38-70 and by each such officer affirmed and acknowledged before it is
39-1 filed with the county clerk, and each amendment made to an
39-2 information form or map shall also be signed by the members of the
39-3 board and by each such officer affirmed and acknowledged before it
39-4 is filed with the county clerk.
39-5 (d) The information form required by this section shall be
39-6 filed with the county clerk within 48 hours after the effective
39-7 date of this section or within 48 hours after the district is
39-8 officially created, whichever time comes first. For purposes of
39-9 this section, the words "officially created" mean the date and hour
39-10 in which the results of the election to confirm the creation of the
39-11 district are declared.
39-12 (e) Within seven days after there is a change in any of the
39-13 information contained in the district information form or map or
39-14 plat, the district shall file an amendment to the information form
39-15 or map setting forth the changes made.
39-16 (f) Any person who affirms the corrections and accuracy of
39-17 and acknowledges an information form, map, or plat, or any
39-18 amendment to an information form or map or plat which includes
39-19 information which is inaccurate or incorrect shall be guilty of a
39-20 misdemeanor and shall be fined not less than $100 nor more than
39-21 $1,000 for each violation.
39-22 (g) If a district fails to file the information required by
39-23 this section in the time required, the executive director may
39-24 request the state attorney general or the district or the county
39-25 attorney of the county in which the district is located to seek a
39-26 writ of mandamus to force the board to prepare and file the
39-27 necessary information.
39-28 (h) Any member of a governing board who wilfully fails or
39-29 refuses to join in filing an information form, map, plat, or
39-30 amendment to an information form, map, or plat under this section
39-31 shall be guilty of a misdemeanor and shall be fined not less than
39-32 $100 nor more than $1,000 for each violation. A member of a
39-33 governing board is presumed to have wilfully failed or refused to
39-34 join in the filing of an information form, map, plat, or amendment
39-35 to an information form, map, or plat if that member was present at
39-36 the meeting at which the information included in the information
39-37 form, map, plat, or amendment to the information form, map, or plat
39-38 was adopted.
39-39 (i) If a district covered by the provisions of this section
39-40 is dissolved, annexed to another local government, or is
39-41 consolidated with another district, the members of the board shall
39-42 file a statement of this fact together with the effective date of
39-43 the dissolution, annexation, or consolidation with the information
39-44 form. After a district is dissolved and the statement is filed
39-45 under this subsection, a person who sells or conveys property
39-46 within the dissolved district is no longer required to give notice
39-47 under Section 49.452 of this subchapter.
39-48 (j) A copy of all information forms, maps, plats, and
39-49 amendments to these filed under this section shall also be filed
39-50 with the executive director.
39-51 Sec. 49.456. BANKRUPTCY OF DISTRICTS; AUTHORITY OF
39-52 COMMISSION. (a) Notwithstanding Section 1, Chapter 207, General
39-53 Laws, Acts of the 44th Legislature, Regular Session, 1935 (Article
39-54 1024a, Vernon's Texas Civil Statutes), Section 1, Chapter 1, page
39-55 70, General Laws, Acts of the 46th Legislature, Regular Session,
39-56 1939 (Article 1024b, Vernon's Texas Civil Statutes); or any other
39-57 law of this state, a district created under Article III, Sections
39-58 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
39-59 Constitution, that is subject to the continuing supervision of the
39-60 commission, may not proceed under Chapter 9 of the Federal
39-61 Bankruptcy Code (11 U.S.C. Sections 901-946) or any other law
39-62 enacted by the Congress of the United States under federal
39-63 bankruptcy authority until the commission authorizes the district
39-64 to proceed under those laws by written order.
39-65 (b) A district requesting the commission's authorization to
39-66 proceed under Chapter 9 of the Federal Bankruptcy Code (11 U.S.C.
39-67 Sections 901-946) or any other federal bankruptcy law shall file an
39-68 application with the commission requesting authorization.
39-69 (c) The commission shall investigate the financial condition
39-70 of a district submitting an application under Subsection (b) of
40-1 this section, including its assets, liabilities, and sources of
40-2 revenues and may require a district to submit any information that
40-3 the commission considers material to a determination of whether
40-4 authorization to proceed in bankruptcy should be granted.
40-5 (d) The commission may not authorize a district to proceed
40-6 in bankruptcy unless the commission determines that the district
40-7 cannot, through the full exercise of its rights and powers under
40-8 the laws of this state, reasonably expect to meet its debts and
40-9 other obligations as they mature.
40-10 (e) The commission shall adopt and assess reasonable and
40-11 necessary fees adequate to recover the costs of the commission in
40-12 administering this section.
40-13 SECTION 4. Title 4, Water Code, is amended by adding Chapter
40-14 59 to read as follows:
40-15 CHAPTER 59. REGIONAL DISTRICTS
40-16 SUBCHAPTER A. DISTRICT CREATION
40-17 Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of
40-18 this chapter is to authorize creation and operation of regional
40-19 districts for water, sanitary sewer, drainage, and municipal solid
40-20 waste disposal under Article XVI, Section 59, of the Texas
40-21 Constitution.
40-22 (b) This chapter applies only in a county with a population
40-23 of at least 2.2 million, according to the most recent federal
40-24 census, or which borders a county with a population of at least 2.2
40-25 million, according to the most recent federal census.
40-26 Sec. 59.002. DEFINITIONS. (a) In this chapter:
40-27 (1) "District" means a district created or operating
40-28 under this chapter.
40-29 (2) "Municipal district" means a district created
40-30 under general law or a special Act operating under Chapter 51, 53,
40-31 or 54.
40-32 (3) "Bond" means bonds, coupons, notes, or any other
40-33 evidence of indebtedness.
40-34 (b) Other terms not defined by this chapter have the same
40-35 meaning assigned to those terms by Section 49.001 of this code.
40-36 Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
40-37 created under procedures provided by this section.
40-38 (b) The boards of two or more municipal districts, or of at
40-39 least 20 percent of the total number of municipal districts to be
40-40 included in the proposed district, whichever is greater, may
40-41 jointly petition the commission for creation of a district in the
40-42 territory described in the petition. The municipal districts must
40-43 present to the commission with the petition a petition from each
40-44 petitioning district adopted by a majority of the directors of the
40-45 district.
40-46 (c) The owner or owners of 2,000 or more contiguous acres
40-47 may petition the commission for creation of a district.
40-48 (d) The commissioners courts of one or more counties may
40-49 petition the commission for creation of a district in any territory
40-50 within the county.
40-51 (e) The governing body of any city may petition the
40-52 commission for creation of a district in any territory within the
40-53 city or its extraterritorial jurisdiction.
40-54 (f) Section 54.013 of this code applies to the composition
40-55 of districts created under this chapter.
40-56 Sec. 59.004. PURPOSES OF DISTRICT. A district shall be
40-57 created:
40-58 (1) to purchase, own, hold, lease, and otherwise
40-59 acquire sources of water supply;
40-60 (2) to build, operate, and maintain facilities for the
40-61 transportation of water;
40-62 (3) to sell water to cities and political subdivisions
40-63 of this state, to private business entities, and to individuals;
40-64 (4) to purchase, own, hold, lease, and otherwise
40-65 acquire equipment and mechanisms necessary for sanitary sewer and
40-66 wastewater treatment;
40-67 (5) to build, operate, and maintain facilities for
40-68 sanitary sewer and wastewater treatment;
40-69 (6) to transport and treat sanitary sewer and
40-70 wastewater effluent of cities and political subdivisions of this
41-1 state, and for private business entities or individuals;
41-2 (7) to purchase, own, hold, lease, and otherwise
41-3 acquire equipment and mechanisms for the drainage of storm water
41-4 and floodwater; and
41-5 (8) for the purposes outlined in Section 54.012 of
41-6 this code.
41-7 Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
41-8 Development Board requires that matching funds be provided as a
41-9 condition for receiving a loan or grant from the Texas Water
41-10 Development Board from research and planning funds, the matching
41-11 funds may not be provided through a guarantee of matching funds by
41-12 any individual who has a financial interest in the regional
41-13 district or who will receive any direct financial benefit from a
41-14 regional district project.
41-15 Sec. 59.006. PETITION. (a) To create a district, a
41-16 petition of any of the persons or entities described in Section
41-17 59.003 requesting creation must be filed with the commission.
41-18 (b) The petition must:
41-19 (1) describe the boundaries of the proposed district
41-20 by metes and bounds that adequately and completely circumscribe the
41-21 property so that there is complete closure of the property or by
41-22 lot and block numbers if there is a recorded map or plat or
41-23 subdivision survey of the area;
41-24 (2) state the general nature of the work proposed to
41-25 be done, the necessity of the work, and the cost of any projects of
41-26 the district as estimated by those filing the petition;
41-27 (3) state the name of each petitioner; and
41-28 (4) include a name of the district that is generally
41-29 descriptive of the locale of the district followed by the words
41-30 "Regional District."
41-31 (c) A proposed district may not have the same name as any
41-32 other district located in the state.
41-33 Sec. 59.007. CONSENT OF CITY. (a) Land in the corporate
41-34 limits of a city or in the extraterritorial jurisdiction of a city
41-35 may not be included in a district unless the city grants its
41-36 written consent by resolution or ordinance to the inclusion of the
41-37 land in the district.
41-38 (b) If the governing body of a city fails or refuses to
41-39 grant permission for the inclusion of land in its extraterritorial
41-40 jurisdiction in a district within 120 days after receipt of a
41-41 written request, the person or entity desiring to create the
41-42 district may petition the governing body of the city requesting the
41-43 city to make available the water, sewer, or drainage service
41-44 contemplated to be provided by the district.
41-45 (c) Failure of the governing body of the city and the
41-46 requesting district to execute a mutually agreeable contract
41-47 providing for the service requested within six months after receipt
41-48 of a request for consent constitutes authorization for the
41-49 inclusion of land in the district under this section.
41-50 Authorization for the inclusion of the land in the district under
41-51 this section means only authorization to initiate proceedings to
41-52 include the land in the district as otherwise provided by this
41-53 chapter.
41-54 (d) Sections 54.016(e), (f), (g), and (h) of this code apply
41-55 under this chapter.
41-56 Sec. 59.008. GRANTING OR REFUSING PETITION; EXCLUSION OF
41-57 TERRITORY. (a) If after the hearing of the petition the
41-58 commission finds that the petition conforms to the requirements of
41-59 this chapter and that the creation of the district would be of
41-60 benefit to the territory to be included in the district, the
41-61 commission shall issue an order granting the petition for creation.
41-62 If the commission finds that part of the territory included in the
41-63 proposed district will not benefit from the creation of the
41-64 district, the commission shall exclude that territory from the
41-65 proposed district and redefine the proposed district's boundaries
41-66 accordingly.
41-67 (b) If the commission finds that the petition does not
41-68 conform to the requirements of this chapter or that the proposed
41-69 projects are not of benefit to the territory in the proposed
41-70 district, the commission shall issue an order denying the petition
42-1 or allowing the petitioners to amend their petition and resubmit
42-2 it.
42-3 (c) A copy of the order of the commission granting or
42-4 denying a petition shall be mailed to each city having
42-5 extraterritorial jurisdiction in the county or counties in which
42-6 the district is to be located that has requested notice of hearings
42-7 as provided by Section 54.019 of this code.
42-8 (Sections 59.009-59.020 reserved for expansion
42-9 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
42-10 Sec. 59.021. DIRECTORS. (a) The commission shall appoint
42-11 temporary directors who shall serve until permanent directors are
42-12 elected.
42-13 (b) A petition requesting creation filed in accordance with
42-14 Section 59.006 may provide that directors be elected by precinct as
42-15 provided by Subsection (h) of this section.
42-16 (c) The board of directors is composed of five members
42-17 unless the petition requesting creation of the district requests
42-18 and the commission approves a board that consists of seven members.
42-19 (d) Permanent directors shall be elected in accordance with
42-20 Chapter 49 of this code.
42-21 (e) If the petition for creation has requested the election
42-22 of seven directors as provided by Subsection (c) of this section,
42-23 unless otherwise agreed, the three directors elected who received
42-24 the fewest number of votes, whether their election is by precinct
42-25 or at large, shall serve until the next directors' election
42-26 following the confirmation election and the four who received the
42-27 highest number of votes shall serve until the second directors'
42-28 election after the confirmation election.
42-29 (f) After the creation of the district, the persons or
42-30 entities that petitioned for creation or 50 qualified voters of the
42-31 district may file a petition with the commission requesting to
42-32 expand the district's board to seven members. If the commission
42-33 grants the petition, the commission shall appoint two temporary
42-34 directors. One temporary director shall serve until the next
42-35 directors' election and one shall serve until the next succeeding
42-36 directors' election. At each election one director shall be
42-37 elected to serve for a four-year term.
42-38 (g) If the board of directors of the district is expanded to
42-39 seven members, four directors shall constitute a quorum and a
42-40 concurrence of four directors is necessary in all matters
42-41 pertaining to the business of the district.
42-42 (h) A petition for the creation of a district may request
42-43 that the board be elected to represent a geographic area. If the
42-44 petition requesting creation of the district is granted, the
42-45 commission shall establish precincts from which the directors are
42-46 to be elected. In establishing the precincts the commission shall
42-47 attempt to have directors represent geographic areas with equal
42-48 numbers of people and shall endeavor to the extent possible to
42-49 cause the rights of minorities to be protected and to comply with
42-50 the federal Voting Rights Act (42 U.S.C. Sections 1971, 1973 et
42-51 seq.). Thereafter, the board of directors of the district shall
42-52 revise the precincts from time to time to cause them to comply with
42-53 the provisions of this subsection.
42-54 Sec. 59.022. ABILITY TO SET RATES. The district may charge
42-55 rates to persons and entities located outside the district's
42-56 boundaries on terms, rates, and charges the board of directors may
42-57 determine to be advisable. In setting rates for out-of-district
42-58 customers, the board shall set rates sufficient to enable it to
42-59 meet operation and maintenance expenses and to pay the principal of
42-60 and interest on debt issued in connection with providing service
42-61 and to provide a reasonable reserve for replacements to the
42-62 district. In setting rates, the district may take into
42-63 consideration past operation and debt service expenses.
42-64 Sec. 59.023. ISSUANCE OF BONDS. The district may issue
42-65 bonds for the purpose of purchasing, constructing, acquiring,
42-66 owning, operating, repairing, improving, or extending any district
42-67 works, improvements, facilities, plants, equipment, and appliances
42-68 needed to accomplish the purposes provided by Section 59.004 for
42-69 which a district is created, including works, improvements,
42-70 facilities, plants, equipment, and appliances needed to provide a
43-1 waterworks system, sanitary sewer system, storm sewer system, solid
43-2 waste disposal system, and parks and recreational facilities.
43-3 Prior to issuing bonds or other obligations, a confirmation
43-4 election must be held in accordance with Chapter 49 of this code,
43-5 and a majority of voters must approve the establishment of the
43-6 district.
43-7 Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS.
43-8 (a) A municipal district may be excluded from the district as
43-9 provided by this section.
43-10 (b) To be excluded, the board of directors of the municipal
43-11 district may adopt a resolution requesting exclusion by a majority
43-12 vote of its board of directors and shall file the petition with the
43-13 directors of the proposed district before the first confirmation
43-14 election.
43-15 (c) At the time of the district's confirmation election, a
43-16 separate voting precinct shall be used for the qualified voters in
43-17 each municipal district that has filed a petition requesting
43-18 exclusion. The votes in each precinct shall be tallied separately
43-19 to determine whether that municipal district will be excluded from
43-20 the district boundaries.
43-21 (d) If a majority of the votes cast in a municipal district
43-22 requesting exclusion vote against confirmation of the district, the
43-23 votes cast in the confirmation election shall not be counted for
43-24 the confirmation election, bond election, or maintenance tax
43-25 election, and that municipal district must be excluded from the
43-26 boundaries of the district by the board of directors of the
43-27 district at the time the results of the election are canvassed.
43-28 (e) After a confirmation election at which the district is
43-29 authorized to be created, the board of directors of the district
43-30 shall adopt an order redefining the boundaries of the district to
43-31 exclude those municipal districts petitioning for exclusion that
43-32 have voted not to confirm creation of the district.
43-33 (f) Before the creation hearing, any municipal district
43-34 located within the proposed district may petition the commission
43-35 for a separate voting precinct to be used within the boundaries of
43-36 the petitioning district at the time of the district's confirmation
43-37 election. If the commission grants the petition requesting a
43-38 separate voting precinct, Subsections (c) through (e) of this
43-39 section apply.
43-40 Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district
43-41 may be created pursuant to a petition granted by the commission, a
43-42 confirmation election must be held within the boundaries of the
43-43 proposed district.
43-44 (b) The directors appointed by the commission shall call and
43-45 hold the confirmation election in the manner provided for
43-46 conducting elections under Chapter 49 of this code. The provisions
43-47 of those sections relating to a director's election do not apply to
43-48 an election held under this section.
43-49 (c) If the creation of the district is defeated, subsequent
43-50 confirmation elections may not be held to confirm the creation of
43-51 the district.
43-52 (d) A bond election, maintenance tax election, and any other
43-53 election may be held at the same time and in conjunction with a
43-54 confirmation election.
43-55 (e) In this section, "district" means:
43-56 (1) a district as defined by Section 59.002(a)(1) of
43-57 this code; or
43-58 (2) a municipal district that proposes to provide
43-59 wholesale regional water, sewer services, or drainage services in a
43-60 county with a population of at least two million, according to the
43-61 most recent federal census, or a county that borders a county with
43-62 a population of at least two million, according to the most recent
43-63 federal census.
43-64 (Sections 59.026-59.050 reserved for expansion
43-65 SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
43-66 Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
43-67 LANDOWNERS. In addition to the method of adding land to a district
43-68 described in Section 59.052, defined areas of land, regardless of
43-69 whether they are contiguous to the district, may be annexed to the
43-70 district in the manner provided in Chapter 49.
44-1 Sec. 59.052. FILING OF PETITION. A petition requesting the
44-2 annexation of a defined area signed by a majority in value of the
44-3 owners of land in the defined area, as shown by the tax rolls of
44-4 the county or counties in which that area is located, signed by 50
44-5 landowners if the number of landowners is more than 50, signed by
44-6 the single landowner of 2,000 or more acres of land in the area, or
44-7 signed by a majority of the governing body of a municipal district,
44-8 a county, or a city requesting annexation, shall be filed with the
44-9 secretary of the board.
44-10 Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
44-11 BONDS. (a) If the board considers it advisable before the
44-12 issuance of any bonds, the board may dissolve the district and
44-13 liquidate the affairs of the district as provided by Sections
44-14 54.734 through 54.738 of this code.
44-15 (b) If a majority of the board finds at any time before the
44-16 authorization of bonds that the proposed district and its proposed
44-17 activities are for any reason impracticable or apparently cannot be
44-18 successfully and beneficially accomplished, the board may issue
44-19 notice of a hearing on a proposal to dissolve the district.
44-20 Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
44-21 order to dissolve the district may be judicially reviewed as
44-22 provided in Chapter 49.
44-23 (Sections 59.055-59.070 reserved for expansion
44-24 SUBCHAPTER D. MISCELLANEOUS
44-25 Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) In
44-26 this section, "district" has the meaning assigned by Section
44-27 59.002(a)(1) of this chapter.
44-28 (b) If a city annexes all or any part of the territory
44-29 within a district, or incorporates all or any part of any territory
44-30 within a district, the city shall succeed to the powers, duties,
44-31 assets, and obligations of the district as provided by this
44-32 chapter.
44-33 (c) On annexation of any part of the territory of a district
44-34 by a city or incorporation by a city of any part of the territory
44-35 of a district, the city shall assume a pro rata share of all debt
44-36 of the district payable in whole or in part by ad valorem taxes
44-37 incurred for water, sewer, or drainage purposes or any combination
44-38 of the three purposes. The percentage of the assumption shall be
44-39 determined by multiplying the total debt of the district payable in
44-40 whole or in part from taxes incurred for the stated purposes by a
44-41 fraction, the numerator of which is the assessed value of the
44-42 property to be annexed or incorporated based on the most recent
44-43 certified county property tax rolls at the time of annexation or
44-44 incorporation and the denominator of which is the total assessed
44-45 value of the property of the district based on the most recent
44-46 certified county property tax rolls at the time of annexation or
44-47 incorporation.
44-48 (d) After annexation by a city of a portion of the territory
44-49 of a district or incorporation over any part of the territory of a
44-50 district, the district may not levy taxes on that territory, and
44-51 the territory is no longer considered a part of the district for
44-52 any purpose.
44-53 (e) If any district's debt payable in whole or in part from
44-54 ad valorem taxes is assumed by a city, the governing body of the
44-55 city shall levy and cause to be collected taxes on all taxable
44-56 property within the city or provide other funds sufficient to pay
44-57 the city's pro rata share of the principal of and interest on that
44-58 debt as it becomes due and payable.
44-59 (f) If a city annexes or incorporates the entire territory
44-60 of the district, the district shall be dissolved in accordance with
44-61 Sections 43.074, 43.075, and 43.081, Local Government Code, if the
44-62 district is located in one city or Sections 43.076-43.079, Local
44-63 Government Code, if the district is located in more than one city.
44-64 (g) Section 43.071, Local Government Code, does not apply to
44-65 the annexation of a district created pursuant to this chapter.
44-66 Sec. 59.072. OTHER LAWS. (a) Except as specifically
44-67 provided by this chapter, Sections 54.018, 54.019(a), (b), (c), and
44-68 (d), 54.020, 54.021, 54.023, 54.024, 54.201, 54.205, 54.207 through
44-69 54.209, 54.502 through 54.506, 54.507(b) and (c), 54.509 through
44-70 54.512, 54.514, 54.515, 54.517, 54.518, 54.520, 54.521, 54.601
45-1 through 54.604, and 54.735 through 54.737 of this code apply under
45-2 this chapter.
45-3 (b) Section 54.019(e) of this code does not apply to a
45-4 district governed by this chapter.
45-5 SECTION 5. Section 51.0711(a), Water Code, is amended to
45-6 read as follows:
45-7 (a) The governing body of a municipality that enters a
45-8 contract or agreement with a district located in more than one
45-9 county to jointly construct, acquire, operate, or maintain a
45-10 regional wastewater system is entitled to appoint a special
45-11 director to the board of the district. Section 51.072 <of this
45-12 code> does not apply to a special director.
45-13 SECTION 6. Section 51.072, Water Code, is amended to read as
45-14 follows:
45-15 Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified
45-16 for election as a director, a person must be a resident of the
45-17 state, own land subject to taxation in the district, and be at
45-18 least 18 <21> years of age. Section 49.052 does not apply to a
45-19 district governed by this chapter whose principal purpose is
45-20 providing water for irrigation.
45-21 SECTION 7. Section 51.076(a), Water Code, is amended to read
45-22 as follows:
45-23 (a) In a district created after June 18, 1967, with
45-24 boundaries coterminous with the boundaries of a county, the
45-25 commissioners court may provide in the order granting the petition
45-26 for creation that the directors are to be selected either as
45-27 provided in Section 49.102 <51.073 of this code> or by the
45-28 "commissioners precinct method," which provides for the election of
45-29 two directors from each commissioners precinct in the county and
45-30 the election of one director from the county at large.
45-31 SECTION 8. Section 51.750(d), Water Code, is amended to read
45-32 as follows:
45-33 (d) The temporary directors of each of the resulting
45-34 districts must qualify as directors of the district pursuant to
45-35 Section <Sections> 51.072 <and 51.073 of this code> within the
45-36 period of 90 days after the election approving the division of the
45-37 original district and shall assume their offices at the expiration
45-38 of the 90-day period.
45-39 SECTION 9. Section 52.005, Water Code, is amended by adding
45-40 Subsection (c) to read as follows:
45-41 (c) Section 49.052, Section 49.216, and Sections
45-42 49.301-49.308 do not apply to districts governed by this chapter.
45-43 SECTION 10. Section 52.104(a), Water Code, is amended to
45-44 read as follows:
45-45 (a) Except in a district that is composed of the territory
45-46 of more than one county, is located in a county with a population
45-47 of more than 100,000, or has a population of more than 100,000, the
45-48 board may employ a director as general manager.
45-49 SECTION 11. Section 52.106, Water Code, is amended by
45-50 amending Subsection (b) and adding Subsection (c) to read as
45-51 follows:
45-52 (b) A person is ineligible for election as a director if
45-53 that person is:
45-54 (1) disqualified under the provisions of Section
45-55 49.052;
45-56 (2) a member of the governing body of another
45-57 political subdivision;
45-58 (3) an appointed officer of another political
45-59 subdivision; or
45-60 (4) a manager, director, officer, owner, or designated
45-61 official of an investor-owned utility, a water supply corporation,
45-62 another district, or any other public water supply system regulated
45-63 or permitted by the district <is ineligible for appointment or
45-64 election as a director>.
45-65 (c) A director is disqualified and vacates the office of
45-66 director if the director meets any of the criteria provided by
45-67 Subsection (b) <is appointed or elected as a member of the
45-68 governing body of another political subdivision>.
45-69 SECTION 12. Section 52.115, Water Code, is amended to read
45-70 as follows:
46-1 Sec. 52.115. MEETINGS. <(a)> The board shall hold regular
46-2 quarterly meetings. It may hold meetings at other times as
46-3 required for the business of the district.
46-4 <(b) Any person may attend a meeting of the board and may
46-5 present in an orderly manner matters for the board's consideration.>
46-6 <(c) Meetings shall be conducted and notice of meetings
46-7 shall be posted in accordance with the open meetings law, Chapter
46-8 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
46-9 6252-17, Vernon's Texas Civil Statutes).>
46-10 SECTION 13. Sections 52.294(c), (d), and (e), Water Code,
46-11 are amended to read as follows:
46-12 (c) <Notice of an election must be given as provided by
46-13 Section 52.059(c) of this code for creation elections.>
46-14 <(d)> At an election to authorize bonds or notes payable
46-15 wholly from ad valorem taxes, the ballots must be printed to
46-16 provide for voting for or against the proposition: "The issuance
46-17 of (bonds or notes) and the levy of taxes for payment of the (bonds
46-18 or notes)." At any election to authorize bonds or notes payable
46-19 from both ad valorem taxes and revenues, the ballots must be
46-20 printed to provide for voting for or against: "The issuance of
46-21 (bonds or notes) and the pledge of net revenues and the levy of ad
46-22 valorem taxes adequate to provide for the payment of the (bonds or
46-23 notes)."
46-24 (d) <(e)> The board shall canvass the returns and declare
46-25 the results of the election. If a majority of the votes cast at
46-26 the election favor the issuance of the bonds or notes, the bonds or
46-27 notes may be issued by the board, but if a majority of the votes
46-28 cast at the election do not favor issuance of the bonds or notes,
46-29 the bonds or notes may not be issued.
46-30 SECTION 14. Section 53.040, Water Code, is amended to read
46-31 as follows:
46-32 Sec. 53.040. Elected Supervisors Take Office. If the
46-33 election results in a division of the district, the five candidates
46-34 receiving the most votes in each new district shall be declared
46-35 elected. They shall immediately qualify in accordance with Section
46-36 49.055 of this code <by taking the constitutional oath of office
46-37 and shall file the oath with the county clerk>.
46-38 SECTION 15. Section 53.042, Water Code, is amended to read
46-39 as follows:
46-40 Sec. 53.042. Newly Elected Supervisors--Term of Office. The
46-41 newly elected supervisors hold office until the new district's next
46-42 supervisors election <first general election and then until their
46-43 successors are elected and have qualified>.
46-44 SECTION 16. Section 53.062, Water Code, is amended to read
46-45 as follows:
46-46 Sec. 53.062. Board of Supervisors. A district created under
46-47 this chapter is governed by a board of five elected supervisors.
46-48 <Specific provisions for the election of supervisors are found in
46-49 Section 53.021, Section 53.086, and Section 53.0861 of this code.>
46-50 SECTION 17. Section 53.088, Water Code, is amended to read
46-51 as follows:
46-52 Sec. 53.088. Status of the District. <(a)> A district is:
46-53 (1) a governmental agency;
46-54 (2) a body politic and corporate; and
46-55 (3) a defined district within the meaning of Article
46-56 XVI, Section 59, of the Texas Constitution.
46-57 <(b) A district may, through its board, sue and be sued in
46-58 any court of this state in the name of the district. All courts of
46-59 this state shall take judicial notice of the creation of a
46-60 district. A district shall contract and be contracted within the
46-61 name of the district.>
46-62 SECTION 18. Section 53.172, Water Code, is amended to read
46-63 as follows:
46-64 Sec. 53.172. Ordering Bond Election. After the creation of
46-65 a district and the qualification of the supervisors, the board may
46-66 order an election in the district to authorize a bond issue. <The
46-67 board shall set the day for the election, which must be held during
46-68 the period beginning on the 20th day and ending with the 30th day
46-69 after the day of the order.> At this election, the board shall
46-70 submit only a proposition authorizing the issuance of bonds and the
47-1 levy of a tax to pay the bonds. The ballots shall be printed to
47-2 allow for voting for or against the proposition: "The issuance of
47-3 bonds and the levy of taxes to pay the bonds."
47-4 SECTION 19. Subchapter H, Chapter 54, Water Code, is amended
47-5 by adding Section 54.739 to read as follows:
47-6 Sec. 54.739. ANNEXATION OF CERTAIN DISTRICTS. (a) Before a
47-7 municipality may institute proceedings to annex a district, the
47-8 municipality shall give the district not less than 48 nor more than
47-9 60 months' advance written notice of its intention to do so. After
47-10 such written notice is given, the district may not issue any
47-11 additional bonded indebtedness, extend any of its services to
47-12 additional areas outside its boundaries, or institute any new type
47-13 of service without the prior written approval of the governing body
47-14 of the municipality, which approval may not be unreasonably
47-15 withheld or delayed.
47-16 (b) The board of directors of the district may, by
47-17 resolution, waive the giving of notice required under this section
47-18 or agree to a shorter notice period.
47-19 (c) In this section, "district" means a municipal utility
47-20 district created under this chapter that has been in existence at
47-21 least 10 years, has a population of 10,000, provides water and
47-22 wastewater services, provides parks and recreational facilities,
47-23 provides or contracts for the provision of fire-fighting services,
47-24 has an outstanding bonded indebtedness, and lies partly within the
47-25 corporate limits and partly within the extraterritorial
47-26 jurisdiction of a single home-rule municipality.
47-27 SECTION 20. Section 54.025, Water Code, is amended to read
47-28 as follows:
47-29 Sec. 54.025. Qualification of Temporary Directors. After a
47-30 district has been organized, each temporary director shall execute
47-31 a <his> bond in accordance with the provisions of Section 49.055
47-32 <54.116 of this code> and shall take the <his> oath of office, and
47-33 the board shall meet and organize.
47-34 SECTION 21. Section 54.036, Water Code, is amended to read
47-35 as follows:
47-36 Sec. 54.036. Directors to Continue Serving. The existing
47-37 board of a district converted to a municipal utility district under
47-38 the provisions of this chapter shall continue to serve as the board
47-39 of the converted district <until the first Saturday in April
47-40 following conversion of the district, at which time five directors
47-41 shall be elected to serve for such period of time and in the same
47-42 manner as provided in Section 54.029 of this code for directors
47-43 first elected for a district>.
47-44 SECTION 22. Section 54.203, Water Code, as amended by H.B.
47-45 No. 2876, Acts of the 72nd Legislature, Regular Session, 1991, is
47-46 amended to read as follows:
47-47 Sec. 54.203. MUNICIPAL Solid Waste. A district is
47-48 authorized to purchase, construct, acquire, own, operate, maintain,
47-49 repair, improve, extend, or establish a municipal solid waste
47-50 collection and disposal system, including recycling, inside and
47-51 outside the district and make proper charges for it. A district
47-52 may require use of such services as a condition for receiving other
47-53 district services. A district may enter into an exclusive contract
47-54 with a private entity to provide such services to all land and
47-55 persons within its boundaries.
47-56 SECTION 23. Section 54.729(a), Water Code, is amended to
47-57 read as follows:
47-58 (a) After the board of each district has agreed on the terms
47-59 and conditions of consolidation, which may include the assumption
47-60 by each district of the <other district's> bonds, notes, or other
47-61 obligations and voted but unissued bonds of the other consolidating
47-62 districts payable in whole or in part from taxation, the levy of
47-63 taxes to pay for the bonds, and adoption of a name for the
47-64 consolidated district, the board shall order an election in each
47-65 district to determine whether the districts should be consolidated.
47-66 SECTION 24. Section 54.730(a), Water Code, is amended to
47-67 read as follows:
47-68 (a) After two or more districts are consolidated, they
47-69 become one district and are governed as one district, except for
47-70 the payment of debts created before consolidation if the conditions
48-1 of consolidation do not provide for the assumption by each district
48-2 of the <other's> bonds, notes, or other obligations and voted but
48-3 unissued bonds of the other consolidating districts.
48-4 SECTION 25. Section 54.732, Water Code, is amended to read
48-5 as follows:
48-6 Sec. 54.732. ASSESSMENT AND COLLECTION OF TAXES. After
48-7 consolidation, the district shall assess and collect taxes on
48-8 property in the original districts to pay debts created by the
48-9 original districts unless each district has assumed the <other
48-10 district's> bonds, notes, or other indebtedness payable in whole or
48-11 in part from taxation of the other consolidating districts.
48-12 SECTION 26. Section 54.733, Water Code, is amended to read
48-13 as follows:
48-14 Sec. 54.733. VOTED BUT UNISSUED BONDS. In the event any
48-15 consolidating <either> district has voted but unissued bonds
48-16 payable in whole or in part from taxation and the consolidated
48-17 district assumed the voted but unissued bonds and the consolidated
48-18 district was authorized to levy taxes to pay for the bonds, then
48-19 the consolidated district shall be authorized to issue the voted
48-20 but unissued bonds in the name of the consolidated district and
48-21 levy a uniform tax on all taxable property in the consolidated
48-22 district to pay for the bonds.
48-23 SECTION 27. Chapter 54, Water Code, is amended by adding
48-24 Sections 54.740-54.748 to read as follows:
48-25 Sec. 54.740. Substituting Land of Equal Acreage and Value.
48-26 After the district is organized and acquires facilities with which
48-27 to function for the purposes for which it was organized, and votes,
48-28 issues and sells bonds for such purposes, land within the district
48-29 boundaries subject to taxation which does not need or utilize the
48-30 services of the district, may be excluded and other land not within
48-31 the boundaries of the district, may be included within the
48-32 boundaries of the district as provided by the provisions of this
48-33 section and Sections 54.741-54.748 subject to commission approval.
48-34 Sec. 54.741. Requisites for Application for Exclusion. The
48-35 owner(s) of land in the district not receiving services from the
48-36 district may apply for its exclusion from the district boundaries
48-37 if all taxes levied and assessed by the district on the land to be
48-38 excluded, have been fully paid. The application shall set forth
48-39 facts concerning the land proposed for exclusion, including
48-40 evidence of the reasonable market value of the land, and state that
48-41 the other requisites for the exclusion of the land and substitution
48-42 of other land have been fulfilled or will be fulfilled at the
48-43 hearing upon the application. The application shall be verified
48-44 and acknowledged in a recordable form as conveyances of real
48-45 property.
48-46 Sec. 54.742. Inclusion of Substitute Land Required. An
48-47 application for exclusion can only be considered by the board if an
48-48 application is filed by the owner(s) of other land lying outside
48-49 the boundaries of the district seeking inclusion of land which can
48-50 be served in a practical manner by the district of at least equal
48-51 value to the land proposed for exclusion, and such land must be
48-52 included within the district boundaries and taxing jurisdiction of
48-53 the district simultaneously with the exclusion of the land proposed
48-54 for exclusion, and such included land must be of sufficient acreage
48-55 to avoid an impairment of the security for payment of voted and
48-56 issued bonds and any other contract obligations payable or secured,
48-57 in whole or in part, from ad valorem taxes or revenues of the
48-58 district.
48-59 Sec. 54.743. Application for Inclusion. The application
48-60 submitted by owner(s) of land proposed for inclusion, shall set
48-61 forth that the owner(s) of the new land assumes the payment of all
48-62 taxes, assessments and fees levied on the land and assessed by the
48-63 district after the date the land is included in the district. The
48-64 application shall also set forth an agreement by the owner(s) of
48-65 the land proposed for inclusion that the land will be subject to
48-66 future taxes for bond tax and other assessments and fees levied and
48-67 assessed by the district and be subject to the same liens and
48-68 provisions and statutes governing all other lands in the district
48-69 as though the land had been incorporated originally in the
48-70 district. The application for inclusion shall be verified and
49-1 acknowledged in a recordable form as conveyances of real property.
49-2 Sec. 54.744. Notice of Hearing and Hearing Procedures. The
49-3 board shall give notice of the hearing on the applications for
49-4 exclusion and inclusion in conformity with the notice and hearing
49-5 requirements otherwise applicable to exclusions or additions of
49-6 land. The board at such hearing shall hear all interested parties
49-7 and all evidence in connection with the applications.
49-8 Sec. 54.745. Impairment of Security. For purposes of the
49-9 board's consideration of the applications, the lands proposed for
49-10 inclusion shall be deemed to be sufficient to avoid an impairment
49-11 of the security for payment of obligations of the district if:
49-12 (1) according to the county tax rolls, the taxable
49-13 value of such included lands equals or exceeds the taxable value of
49-14 the excluded lands;
49-15 (2) the estimated costs of providing district
49-16 facilities and services to such included lands is equal to or less
49-17 than the estimated costs of providing district facilities and
49-18 services to the excluded lands; and
49-19 (3) the district's outstanding bonds or contract
49-20 obligations are payable in whole or in part by a pledge of net
49-21 revenues from the ownership or operation of the district's
49-22 facilities, the projected net revenues to be derived from the lands
49-23 to be included during the succeeding 12-month period, as determined
49-24 by the district's engineer, equals or exceeds the projected net
49-25 revenues which would otherwise have been derived from the lands to
49-26 be excluded during the same period.
49-27 Sec. 54.746. Board's Resolution to Substitute. If the board
49-28 finds that all the conditions provided for the exclusion of land
49-29 and inclusion of other land in the district exist and that it is in
49-30 the best interest of the district to grant such applications, it
49-31 may adopt and enter in its minutes a resolution and order excluding
49-32 all or part of the land proposed for exclusion and including all or
49-33 part of the land proposed for inclusion. Prior to the effective
49-34 date of the exclusion and inclusion of lands, the district shall
49-35 have received payment of all fees, charges, assessments, taxes,
49-36 together with any associated penalties and interest due or overdue
49-37 in the respect to the lands excluded and if no ad valorem taxes or
49-38 fees have yet been established by the district for the current
49-39 year, an amount determined by the district to equal the estimated
49-40 ad valorem taxes and standby fees to be established by the district
49-41 for the current year, prorated to the date of exclusion with
49-42 respect to such excluded lands, shall also be paid.
49-43 Sec. 54.747. Liability of Excluded and Included Land. The
49-44 land excluded from the district is free from any lien or liability
49-45 created on the excluded land by reason of its having been included
49-46 in the district. Land included in the district is subject to all
49-47 laws, liens, and provisions governing the district and the land in
49-48 the district.
49-49 Sec. 54.748. Service to Included Land. The district has the
49-50 same right and obligation to furnish services to the included land
49-51 that it previously had to furnish to the excluded land.
49-52 SECTION 28. Section 55.101, Water Code, is amended to read
49-53 as follows:
49-54 Sec. 55.101. Board of Directors. The governing body of a
49-55 district is a <the> board of five directors.
49-56 SECTION 29. Section 55.102, Water Code, is amended to read
49-57 as follows:
49-58 Sec. 55.102. Qualifications of Directors. To be qualified
49-59 for election as a director, a person must be a resident of the
49-60 state, own land subject to taxation in the district, and be at
49-61 least 18 <more than 21> years of age at the time of the election.
49-62 Section 49.052 does not apply to a district governed by this
49-63 chapter whose principal purpose is providing water for irrigation.
49-64 SECTION 30. Section 55.721, Water Code, is amended to read
49-65 as follows:
49-66 Sec. 55.721. Exclusion of Nonagricultural and Nonirrigable
49-67 Land From District. Land located in the district which is
49-68 classified as nonagricultural and nonirrigable may be excluded from
49-69 the district in the manner provided in Subchapter J, Chapter 49
49-70 <Sections 51.702-51.713 of this code>.
50-1 SECTION 31. Section 56.064, Water Code, is amended to read
50-2 as follows:
50-3 Sec. 56.064. Election of Directors. (a) On petition of a
50-4 majority of the real property taxpayers of a district requesting an
50-5 election of district directors, the commissioners court shall
50-6 immediately order an election to be held at the earliest legal
50-7 time. The election shall be held as other elections under Chapter
50-8 49 <this chapter>.
50-9 (b) <The commissioners court shall declare the three persons
50-10 receiving the highest number of votes elected, and if two or more
50-11 persons tie for the third highest vote, the commissioners court
50-12 shall elect the third director from those tying for the place.>
50-13 <(c) On qualifying for office, directors elected under this
50-14 section are the legal and rightful directors of the district within
50-15 the full meaning and purpose of this law.>
50-16 <(d) The first elected directors of the district hold office
50-17 until the next regular directors' election, and subsequent
50-18 directors of the district are elected every four years except as
50-19 provided by Subsection (e) of this section.>
50-20 <(e)> The first elected directors of the districts in
50-21 Calhoun, Matagorda, and Victoria Counties hold office until May 15
50-22 of the next succeeding odd-numbered year. Subsequent directors of
50-23 the district are elected every two years on the first Saturday in
50-24 May in each odd-numbered year, for a term of two years beginning on
50-25 May 15 following the election.
50-26 SECTION 32. Section 57.053, Water Code, is amended to read
50-27 as follows:
50-28 Sec. 57.053. Term of Office, Removal, and Succession.
50-29 (a) <Each director shall hold office for a period of two years and
50-30 until his successor is appointed and has qualified.>
50-31 <(b)> A vacancy on the board shall be filled by majority
50-32 vote of the commissioners court <of jurisdiction>, and the court
50-33 shall appoint directors so that the board will always have full
50-34 membership.
50-35 (b) <(c)> The commissioners court <of jurisdiction>, by
50-36 majority vote, may remove an appointed <a> member of the board.
50-37 SECTION 33. Section 57.060, Water Code, is amended to read
50-38 as follows:
50-39 Sec. 57.060. Petition. Before an election is held under
50-40 Section 57.057 of this code, a petition, signed by at least 100
50-41 <25> electors in the district <each county commissioners precinct>
50-42 who are qualified to vote <at an election for directors if a
50-43 countywide election, or by 50 electors if less than countywide>,
50-44 shall be presented to the district <county judge> requesting that
50-45 an election be held in the district to determine whether or not
50-46 directors for the district should be elected and, if so, to elect
50-47 directors to serve until the next regular director election <for
50-48 state and county officers>. The petition shall include the name of
50-49 one or more nominees for each director's position.
50-50 SECTION 34. Section 57.061, Water Code, is amended to read
50-51 as follows:
50-52 Sec. 57.061. Procedure for Election. <(a)> After the
50-53 petition is presented under Section 57.060 of this code, the board
50-54 <county judge> shall order an election <to determine the
50-55 propositions presented in the position. The election shall be held
50-56 not less than 30 days from the date of the order calling the
50-57 election, or the propositions may be determined at a general
50-58 election>.
50-59 <(b) The election order shall designate the polling places
50-60 which shall be the same as the polling places used in the last
50-61 general election in the county, if a countywide election is held.>
50-62 <(c) The county clerk shall issue notice of the election and
50-63 shall have the notice published in a newspaper of general
50-64 circulation in the county once a week for two consecutive weeks.
50-65 The first publication must not be less than 14 days before the day
50-66 of the election.>
50-67 <(d) The sheriff shall post a copy of the notice at least 20
50-68 days before the day of the election at each polling place
50-69 designated in the election order.>
50-70 <(e) The district shall pay all expenses incident to calling
51-1 and holding the election.>
51-2 SECTION 35. Section 57.207, Water Code, is amended to read
51-3 as follows:
51-4 Sec. 57.207. Declaring Result of Election.
51-5 <(a) Immediately after an election under this chapter, the
51-6 officials holding the election shall return the result to the
51-7 commissioners court of jurisdiction.>
51-8 <(b) The election officials shall return the ballot boxes to
51-9 the clerk of the commissioners court of jurisdiction, who shall
51-10 safely keep the boxes and deliver them with the returns of the
51-11 election to the commissioners court of jurisdiction at its next
51-12 regular or special session.>
51-13 <(c) The commissioners court of jurisdiction at its first
51-14 session after the election shall canvass the vote and the returns.
51-15 If the proposition submitted has been approved by a majority of the
51-16 electors of the district voting at the election, the commissioners
51-17 court of jurisdiction shall declare the result to be in favor of
51-18 the proposition, but if the proposition is not approved by the
51-19 electors of the district, the commissioners court of jurisdiction
51-20 shall declare the result to be against the proposition.>
51-21 <(d)> The board <commissioners court of jurisdiction> shall
51-22 enter an order declaring the election result in its minutes.
51-23 SECTION 36. Section 58.072, Water Code, is amended to read
51-24 as follows:
51-25 Sec. 58.072. QUALIFICATIONS. To be qualified for election
51-26 as a director, a person must be a resident of the state, be the
51-27 owner of record of fee simple title to land in the district, <and>
51-28 be at least 18 years of age, and owe no delinquent taxes or
51-29 assessments to the district. Section 49.052 does not apply to a
51-30 district governed by this chapter.
51-31 SECTION 37. Section 65.103, Water Code, is amended to read
51-32 as follows:
51-33 Sec. 65.103. Election of Directors; Terms of Office.
51-34 (a) The persons receiving the highest number of votes at each
51-35 election shall serve as directors of the district.
51-36 (b) The terms of the directors may run concurrently, or may
51-37 be staggered, but in any event, the term of office of a director
51-38 may not exceed three years.
51-39 (c) The method for determining the initial terms for each of
51-40 the directors constituting the initial board shall be determined by
51-41 the temporary directors, and the terms must be clearly stated on
51-42 the ballot for the confirmation and director's election. At
51-43 subsequent elections in each following year in which there is an
51-44 election, the election must be held on the same uniform election
51-45 date as the confirmation and directors' election, and the terms of
51-46 the directors being elected must be stated on the ballot.
51-47 <(d) The election of directors must be held in a district on
51-48 one of the dates provided by Section 9b, Texas Election Code
51-49 (Article 2.01b, Vernon's Texas Election Code).>
51-50 <(e) The permanent directors may assign a position number to
51-51 each director's office, and each director subsequently shall be
51-52 elected by position and not at large.>
51-53 SECTION 38. Chapter 65, Water Code, is amended by adding
51-54 Section 65.235 to read as follows:
51-55 Sec. 65.235. Prohibition on Assessment or Collection of
51-56 Taxes. Section 49.107 does not apply to a district created under
51-57 this chapter.
51-58 SECTION 39. Subchapter A, Chapter 60, Water Code, is amended
51-59 by adding Section 60.002 to read as follows:
51-60 Sec. 60.002. AUDIT. Subchapter G, Chapter 49, related to
51-61 Audit of Districts, shall apply to districts governed by this
51-62 chapter.
51-63 SECTION 40. Subchapter M, Chapter 60, Water Code, is amended
51-64 by adding Section 60.350 to read as follows:
51-65 Sec. 60.350. BONDS. Section 49.181, related to the
51-66 Authority of Commission Over Issuance of District Bonds, and
51-67 Section 49.183, related to Bond Sales, shall apply to bonds
51-68 supported by taxes and issued by districts governed by this
51-69 chapter.
51-70 SECTION 41. Section 66.101, Water Code, is amended to read
52-1 as follows:
52-2 Sec. 66.101. Board of Directors. A district shall be
52-3 governed by a board of directors composed of five members, who are
52-4 elected as provided in Chapter 49 <by this chapter>.
52-5 SECTION 42. Section 66.310(b), Water Code, is amended to
52-6 read as follows:
52-7 (b) Bonds issued by a district and projects and improvements
52-8 of the district that are provided through the issuance of bonds are
52-9 governed by Chapter 49 <Sections 54.516 and 54.517 of this code>.
52-10 SECTION 43. The following sections of Chapter 51, Water
52-11 Code, are repealed: Sections 51.033, 51.034, 51.073 through
52-12 51.074, 51.077 through 51.084, 51.0851, 51.087 through 51.089,
52-13 51.091 through 51.101, 51.122 through 51.124, 51.126, 51.131,
52-14 51.132, 51.136 through 51.138, 51.140 through 51.146, 51.149
52-15 through 51.155, 51.183, 51.191 through 51.193, 51.221 through
52-16 51.224, 51.231 through 51.279, 51.354 through 51.363, 51.371
52-17 through 51.375, 51.412, 51.416 through 51.418, 51.421, 51.422,
52-18 51.4321, 51.4371, 51.601, 51.691 through 51.701, 51.714 through
52-19 51.731, and 51.737 through 51.747.
52-20 SECTION 44. The following sections of Chapter 52, Water
52-21 Code, are repealed: Sections 52.104, 52.107 through 52.114, 52.116
52-22 through 52.118, 52.119 through 52.121, 52.157, 52.251 through
52-23 52.253, 52.259 through 52.262, and 52.297.
52-24 SECTION 45. The following sections of Chapter 53, Water
52-25 Code, are repealed: Sections 53.020, 53.022, 53.023, 53.025
52-26 through 53.028, 53.035 through 53.039, 53.064, 53.065, 53.067
52-27 through 53.070, 53.0721, 53.076, 53.077, 53.084 through 53.087,
52-28 53.089, 53.090, 53.105, 53.106, 53.108 through 53.111, 53.114,
52-29 53.117 through 53.120, 53.123 through 53.125, 53.141 through
52-30 53.144, 53.147, 53.148, 53.173 through 53.175, 53.1791, 53.197,
52-31 53.198, and 53.231 through 53.273.
52-32 SECTION 46. The following sections of Chapter 54, Water
52-33 Code, are repealed: Sections 54.026 through 54.029, 54.103 through
52-34 54.126, 54.202, 54.204, 54.209 through 54.233, 54.301 through
52-35 54.312, 54.506, 54.507(a), 54.509, 54.5121, 54.513, 54.516, 54.517,
52-36 54.519, 54.701 through 54.727.
52-37 SECTION 47. The following sections of Chapter 55, Water
52-38 Code, are repealed: Sections 55.030, 55.033 through 55.036,
52-39 55.052, 55.104 through 55.106, 55.109, 55.111 through 55.116,
52-40 55.118 through 55.128, 55.162, 55.164, 55.168 through 55.184,
52-41 55.189 through 55.191, 55.199, 55.203, 55.252, 55.291 through
52-42 55.304, 55.331, 55.423 through 55.430, 55.451, 55.453, 55.492
52-43 through 55.496, 55.503, 55.506, 55.711 through 55.720, and 55.722
52-44 through 55.749.
52-45 SECTION 48. The following sections of Chapter 56, Water
52-46 Code, are repealed: Sections 56.027 through 56.031, 56.062,
52-47 56.063, 56.065 through 56.068, 56.076 through 56.081, 56.083,
52-48 56.113, 56.114, 56.119, 56.129 through 56.134, 56.136, 56.138,
52-49 56.139, 56.183, 56.184, 56.2045, and 56.714 through 56.725.
52-50 SECTION 49. The following sections of Chapter 57, Water
52-51 Code, are repealed: Sections 57.052, 57.054 through 57.056, 57.062
52-52 through 57.070, 57.095 through 57.099, 57.106, 57.107, 57.109,
52-53 57.110, 57.112 through 57.115, 57.119, 57.120, 57.171 through
52-54 57.174, 57.178, 57.202 through 57.206, 57.2075, 57.209 through
52-55 57.211, and 57.276 through 57.278.
52-56 SECTION 50. The following sections of Chapter 58, Water
52-57 Code, are repealed: Sections 58.033, 58.034, 58.073, 58.074
52-58 through 58.083, 58.085 through 58.088, 58.090 through 58.100,
52-59 58.123, 58.124, 58.131, 58.132, 58.135, 58.139 through 58.149,
52-60 58.151, 58.152, 58.169, 58.179, 58.187 through 58.189, 58.221
52-61 through 58.224, 58.261, 58.317, 58.354 through 58.362, 58.442,
52-62 58.451, 58.452, 58.601, 58.691 through 58.701, and 58.714 through
52-63 58.725.
52-64 SECTION 51. The following sections of Chapter 65, Water
52-65 Code, are repealed: Sections 65.024 through 65.029, 65.104 through
52-66 65.122, 65.202, 65.204, 65.209 through 65.234, 65.301, 65.401
52-67 through 65.409, 65.509, 65.512, and 65.514, and 65.701 through
52-68 65.722.
52-69 SECTION 52. The following sections of Chapter 66, Water
52-70 Code, are repealed: Sections 66.022 through 66.029, 66.103 through
53-1 66.117, 66.119, 66.120, 66.203 through 66.205, 66.208 through
53-2 66.215, 66.301, 66.302, 66.305 through 66.309, 66.312, and 66.323.
53-3 SECTION 53. (a) This Act takes effect as provided by this
53-4 section.
53-5 (b) Section 49.103(b), Water Code, shall govern all
53-6 elections held after December 31, 1993. Directors elected at any
53-7 election held between January 1, 1990, and April 30, 1990, shall
53-8 serve until the January 1994 election. Directors elected at any
53-9 election held between May 1, 1990, and December 31, 1990, shall
53-10 serve until the May 1994 election. Directors elected at any
53-11 election held between January 1, 1991, and April 30, 1991, shall
53-12 serve until the January 1994 election. Directors elected at any
53-13 election held between May 1, 1991, and July 31, 1991, shall serve
53-14 until the May 1994 election. Directors elected at any election
53-15 held between August 1, 1991, and December 31, 1991, shall serve
53-16 until the May 1996 election. Directors elected at any election
53-17 held between January 1, 1992, and April 30, 1992, shall serve until
53-18 the January 1996 election. Directors elected at any election held
53-19 between May 1, 1992, and December 31, 1992, shall serve until the
53-20 May 1996 election. Directors elected at any election held between
53-21 January 1, 1993, and April 30, 1993, shall serve until the January
53-22 1996 election. Directors elected at any election held between May
53-23 1, 1993, and July 31, 1993, shall serve until the May 1994
53-24 election. Directors elected at any election held between August 1,
53-25 1993, and December 31, 1993, shall serve until the May 1996
53-26 election. Directors whose terms expire prior to the election date
53-27 set by this section shall continue to serve until their successors
53-28 have been elected and qualified.
53-29 (c) All other provisions of this Act take effect September
53-30 1, 1993.
53-31 SECTION 54. The importance of this legislation and the
53-32 crowded condition of the calendars in both houses create an
53-33 emergency and an imperative public necessity that the
53-34 constitutional rule requiring bills to be read on three several
53-35 days in each house be suspended, and this rule is hereby suspended,
53-36 and that this Act take effect and be in force according to its
53-37 terms, and it is so enacted.
53-38 * * * * *
53-39 Austin,
53-40 Texas
53-41 May 26, 1993
53-42 Hon. Bob Bullock
53-43 President of the Senate
53-44 Sir:
53-45 We, your Committee on Intergovernmental Relations to which was
53-46 referred H.B. No. 1266, have had the same under consideration, and
53-47 I am instructed to report it back to the Senate with the
53-48 recommendation that it do pass, as amended, and be printed.
53-49 Armbrister,
53-50 Chairman
53-51 * * * * *
53-52 WITNESSES
53-53 FOR AGAINST ON
53-54 ___________________________________________________________________
53-55 Name: Ralph Roming x
53-56 Representing: Tx. Irrigation Council
53-57 City: Round Rock
53-58 -------------------------------------------------------------------
53-59 Name: Joe B. Allen x
53-60 Representing: Assoc. of Water Bd. Directors
53-61 City:
53-62 -------------------------------------------------------------------
53-63 Name: Greg Ellis x x
53-64 Representing:
53-65 City: Friendswood
53-66 -------------------------------------------------------------------
53-67 Name: Tommy Duck x
53-68 Representing: Texas Rural Water Assoc.
53-69 City: Austin
53-70 -------------------------------------------------------------------