By Yost                                                  H.B. No. 8
       74R2465 JJT-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the administration, powers, duties, operations,
    1-3  financing, and organization of solid waste management districts;
    1-4  granting the power of eminent domain and the authority to issue
    1-5  bonds; authorizing a tax.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7        SECTION 1.  Subtitle E, Title 5, Health and Safety Code, is
    1-8  amended to read as follows:
    1-9  SUBTITLE E.  SOLID WASTE MANAGEMENT DISTRICTS <WATER USE REGULATION>
   1-10             CHAPTER 411.  PROVISIONS GENERALLY APPLICABLE
   1-11                   SUBCHAPTER A.  GENERAL PROVISIONS
   1-12        Sec. 411.001.  DEFINITIONS.  In this subtitle:
   1-13              (1)  "Board" means the board of directors of a
   1-14  district.
   1-15              (2)  "Commission" means the Texas Natural Resource
   1-16  Conservation Commission.
   1-17              (3)  "Director" means a member of the board.
   1-18              (4)  "District" means a solid waste management district
   1-19  governed by this chapter.
   1-20              (5)  "Local government" means an incorporated
   1-21  municipality, a county, or a water or other special district or
   1-22  authority acting under Sections 52(b)(1) and (2), Article III, or
   1-23  Section 59, Article XVI, Texas Constitution.
   1-24              (6)  "Municipal solid waste" has the meaning assigned
    2-1  by Section 361.003.
    2-2              (7)  "Resource recovery facility" means a facility that
    2-3  stores, handles, sorts, bails, recycles, processes, and recovers
    2-4  solid waste.
    2-5              (8)  "Sewage" has the meaning assigned by Section
    2-6  366.002.
    2-7              (9)  "Solid waste" has the meaning assigned by Section
    2-8  361.003.
    2-9              (10)  "Solid waste management system" means a system
   2-10  for controlling all aspects of the collection, handling,
   2-11  transportation, processing, recovery, and disposal of solid waste.
   2-12              (11)  "Water" means groundwater, percolating or
   2-13  otherwise, lakes, bays, ponds, springs, rivers, streams, creeks,
   2-14  and all other bodies of surface water, natural or artificial, that
   2-15  are wholly or partially within a district.
   2-16              (12)  "Water pollution" means the alteration of the
   2-17  physical, chemical, or biological quality of or the contamination
   2-18  of water that renders the water harmful, detrimental, or injurious
   2-19  to humans, animal life, vegetation, or property, or to public
   2-20  health, safety, or welfare, or that impairs the usefulness or the
   2-21  public enjoyment of the water for any lawful or reasonable purpose.
   2-22        Sec. 411.002.  APPLICATION OF OTHER LAWS.  A district
   2-23  governed by this chapter is subject to:
   2-24              (1)  regulation under Chapter 361; and
   2-25              (2)  the applicable provisions of the:
   2-26                    (A)  Election Code;
   2-27                    (B)  Local Government Code;
    3-1                    (C)  Property Code;
    3-2                    (D)  Water Code;
    3-3                    (E)  open meetings law, Chapter 551, Government
    3-4  Code; and
    3-5                    (F)  open records law, Chapter 552, Government
    3-6  Code.
    3-7        Sec. 411.003.  SUPERVISION OF DISTRICT.  A district is
    3-8  subject to the continuing right of supervision by the commission in
    3-9  accordance with state law.
   3-10           (Sections 411.004-411.010 reserved for expansion
   3-11                  SUBCHAPTER B.  CREATION OF DISTRICT
   3-12        Sec. 411.011.  DISTRICT CREATED BY LEGISLATIVE ACT.  (a)  The
   3-13  legislature by special law may create a solid waste management
   3-14  district under Section 59, Article XVI, Texas Constitution.  The
   3-15  district is a governmental entity and a body politic and corporate.
   3-16        (b)  The legislature shall provide for the appointment of
   3-17  seven temporary directors for a district created by special law.
   3-18        Sec. 411.012.  CREATION AND DIRECTORS' ELECTION.  (a)  Not
   3-19  later than 30 days after all temporary directors have been
   3-20  appointed and have qualified, the temporary directors shall meet
   3-21  and shall call an election to be held within the boundaries of the
   3-22  proposed district to approve the creation of the district and to
   3-23  elect permanent directors.  A person who desires to be a candidate
   3-24  for the office of permanent director may file an application with
   3-25  the temporary board to have the candidate's name printed on the
   3-26  ballot as provided by Section 411.023.
   3-27        (b)  In the order calling the election, the temporary
    4-1  directors shall designate election precincts and polling places for
    4-2  the election.  In designating the polling places, the temporary
    4-3  directors shall consider the needs of all voters for conveniently
    4-4  located polling places.
    4-5        (c)  The temporary directors shall publish notice of the
    4-6  election at least one time in one or more newspapers of general
    4-7  circulation within the boundaries of the proposed district.
    4-8        (d)  The ballot for the election must be printed to permit
    4-9  voting for or against the proposition:  "The creation of the
   4-10  _______ Solid Waste Management District."  If the district levies a
   4-11  maintenance tax for payment of its expenses, the proposition shall
   4-12  include the following language:  "and the levy of a maintenance tax
   4-13  at a rate not to exceed _______ (insert amount not to exceed 50
   4-14  cents) cents for each $100 of assessed valuation."  In addition,
   4-15  the temporary directors shall have the names of the seven persons
   4-16  serving as temporary directors placed on the ballot together with
   4-17  the name of any candidate filing for the office of director as
   4-18  provided by Subsection (a) and blank spaces to write in the names
   4-19  of other persons.
   4-20        (e)  Immediately after the election, the presiding judge of
   4-21  each polling place shall deliver the returns of the election to the
   4-22  temporary board, and the board shall canvass the returns and
   4-23  declare the result.
   4-24        (f)  If a majority of the votes cast at the election favor
   4-25  the creation of the district, the temporary board shall declare the
   4-26  district created, enter the results in its minutes, and declare the
   4-27  seven persons who receive the most votes to be elected as permanent
    5-1  directors.  If a majority of the votes cast at the election are
    5-2  against the creation of the district, the temporary board shall
    5-3  declare the district defeated and shall enter the results in its
    5-4  minutes.  The temporary board shall file a copy of the election
    5-5  results with the commission.
    5-6        (g)  If the proposition to create a district is defeated, an
    5-7  election to create a district in the area may not be called before
    5-8  the first anniversary of the date on which the election on the
    5-9  proposition was held.
   5-10        Sec. 411.013.  BOND AND TAX PROPOSITION.  (a)  At an election
   5-11  to create a district, the temporary directors may include a
   5-12  proposition for the issuance of bonds, the levy of taxes to retire
   5-13  all or part of the bonds, and the levy of a maintenance tax at a
   5-14  rate not to exceed 50 cents on each $100 of assessed valuation.
   5-15        (b)  The board shall include in any bond and tax proposition
   5-16  the maximum amount of bonds to be issued and their maximum maturity
   5-17  date.
   5-18           (Sections 411.014-411.020 reserved for expansion
   5-19               SUBCHAPTER C.  ADMINISTRATIVE PROVISIONS
   5-20        Sec. 411.021.  ELECTION OF DIRECTORS.  (a)  On the first
   5-21  Saturday in May of the second year after the year in which a
   5-22  district is authorized to be created at a confirmation election, an
   5-23  election shall be held in the district for the election of three
   5-24  directors who shall each serve two-year terms and four directors
   5-25  who shall each serve four-year terms.  Thereafter, on the first
   5-26  Saturday in May in each subsequent second year, the appropriate
   5-27  number of directors shall be elected to the board.
    6-1        (b)  If the district's boundaries are coextensive with the
    6-2  boundaries of one county, one director shall be elected from each
    6-3  commissioner precinct and three directors shall be elected from the
    6-4  district at large.
    6-5        (c)  If the district's boundaries are not coextensive with
    6-6  the boundaries of one county, the directors shall be elected from
    6-7  the district at large.
    6-8        (d)  At the initial election of directors under Subsection
    6-9  (b), the candidate receiving the highest number of votes from a
   6-10  commissioner precinct is the director for that precinct, and the
   6-11  three candidates receiving the highest number of votes from the
   6-12  district at large are the directors for the district at large.  If
   6-13  two or more persons tie for the third-highest vote, the initial
   6-14  board shall select the third member from those tying for the place.
   6-15  The candidates elected from the odd-numbered precincts and the two
   6-16  candidates elected from the district at large who receive the
   6-17  highest number of votes at the election serve for a term of four
   6-18  years.  The candidates elected from the even-numbered precincts and
   6-19  the candidate elected from the district at large who receives the
   6-20  third-highest number of votes at that election serve for a term of
   6-21  two years.
   6-22        (e)  At the initial election of directors under Subsection
   6-23  (c), the seven candidates receiving the highest number of votes at
   6-24  that election are directors for the district.  The four directors
   6-25  receiving the highest number of votes at the initial election serve
   6-26  for a term of four years.  The remaining directors serve for a term
   6-27  of two years.
    7-1        Sec. 411.022.  QUALIFICATIONS FOR OFFICE.  (a)  To be
    7-2  eligible to be a candidate for or to serve as director, a person
    7-3  must be:
    7-4              (1)  a resident of the district; and
    7-5              (2)  a qualified voter.
    7-6        (b)  In addition to the qualifications required by Subsection
    7-7  (a), a person who is elected from a commissioner precinct or who is
    7-8  appointed to fill a vacancy for a commissioner precinct must be a
    7-9  resident of that commissioner precinct.
   7-10        (c)  Each director must execute a bond in the amount of
   7-11  $5,000 with a corporate surety authorized to do business in this
   7-12  state and conditioned on the faithful performance of the director's
   7-13  duties.
   7-14        Sec. 411.023.  APPLICATION FOR ELECTION.  (a)  A person who
   7-15  wishes to have the person's name printed on the ballot at a
   7-16  directors' election as a candidate for director shall file an
   7-17  application with the secretary of the district.
   7-18        (b)  If applicable, the application must specify  the
   7-19  commissioner precinct the candidate wishes to represent or specify
   7-20  that the candidate wishes to represent the district at large.
   7-21        Sec. 411.024.  VACANCY ON BOARD.  A vacancy on a board shall
   7-22  be filled by appointment of the remaining members of the board
   7-23  until the next election of directors for the district.  If that
   7-24  position is not scheduled to be filled at that election, the person
   7-25  elected to fill the position serves only for the remainder of the
   7-26  unexpired term.
   7-27        Sec. 411.025.  OATH.  Each director shall file the statement
    8-1  and take the constitutional oath of office required of state
    8-2  officers.
    8-3        Sec. 411.026.  ORGANIZATION OF BOARD.  (a)  After each
    8-4  biennial election of directors, the board shall hold a regular
    8-5  meeting in May at the district office and shall organize by
    8-6  electing from the members of the board one person to serve as
    8-7  chairman, one person to serve as vice-chairman, and one person to
    8-8  serve as secretary.
    8-9        (b)  The chairman shall preside over meetings of the board,
   8-10  and in the chairman's absence the vice-chairman shall preside.
   8-11        (c)  The chairman, vice-chairman, and secretary shall perform
   8-12  the duties and may exercise the powers specifically given them by
   8-13  this chapter or by orders of the board.
   8-14        (d)  The board may appoint a treasurer and an attorney for
   8-15  the district.  The persons appointed under this subsection are
   8-16  entitled to the compensation provided by the district's budget.
   8-17        (e)  The person appointed as treasurer shall execute a bond
   8-18  in the amount determined by the board, payable to the district,
   8-19  conditioned on the faithful performance of the treasurer's duties.
   8-20  The district shall pay for the bond.
   8-21        Sec. 411.027.  INTEREST IN CONTRACT.  A director who is
   8-22  financially interested in a contract to be executed by the district
   8-23  for the purchase of property or the construction of facilities
   8-24  shall disclose that fact to the other directors and may not vote on
   8-25  the acceptance of the contract.
   8-26        Sec. 411.028.  DIRECTOR'S COMPENSATION.  (a)  A director is
   8-27  entitled to receive $25 a day and reimbursement for actual and
    9-1  necessary expenses incurred:
    9-2              (1)  for each day the director attends meetings of the
    9-3  board; and
    9-4              (2)  for each day the director attends to the business
    9-5  of the district that is authorized by board resolution or motion.
    9-6        (b)  A director is not entitled to receive a per diem
    9-7  allowance for more than 30 days in any one calendar year.
    9-8        Sec. 411.029.  GENERAL MANAGER; PERSONNEL.  (a)  The board
    9-9  may employ a general manager for a term and salary set by the
   9-10  board.
   9-11        (b)  The general manager is the chief executive officer of
   9-12  the district.  Under policies established by the board, the general
   9-13  manager is responsible to the board for:
   9-14              (1)  administering the directives of the board;
   9-15              (2)  keeping the district's records, including minutes
   9-16  of the board's meetings;
   9-17              (3)  coordinating with state, federal, and local
   9-18  agencies;
   9-19              (4)  developing plans and programs for the board's
   9-20  approval;
   9-21              (5)  hiring, supervising, training, and discharging
   9-22  district employees;
   9-23              (6)  contracting for or retaining technical,
   9-24  scientific, legal, fiscal, and other professional services; and
   9-25              (7)  performing any other duty assigned to the general
   9-26  manager by the board.
   9-27        (c)  The board may discharge the general manager on a
   10-1  majority vote of all of the directors.
   10-2        (d)  The general manager and each employee of the district
   10-3  charged with the collection, custody, or payment of any money of
   10-4  the district shall execute a fidelity bond.  The board shall
   10-5  approve the form, amount, and surety of the bond.  The district
   10-6  shall pay the premiums on the employees' bonds under this section.
   10-7        Sec. 411.030.  PRINCIPAL OFFICE.  A district shall maintain
   10-8  its principal office inside the district's boundaries.
   10-9        Sec. 411.031.  MEETINGS.  (a)  The board shall hold regular
  10-10  quarterly meetings.  It may hold meetings at other times as
  10-11  required for the business of the district.
  10-12        (b)  Any person may attend a meeting of the board and may
  10-13  present in an orderly manner matters for the board's consideration.
  10-14        (c)  Meetings shall be conducted and notice of meetings shall
  10-15  be posted in accordance with the open meetings law, Chapter 551,
  10-16  Government Code.
  10-17        Sec. 411.032.  MINUTES AND RECORDS OF DISTRICT.  (a)  The
  10-18  board shall keep a complete account of all its meetings and
  10-19  proceedings and shall preserve its minutes, contracts, records,
  10-20  notices, accounts, receipts, and other records in a safe place.
  10-21  All minutes, contracts, records, notices, accounts, receipts, and
  10-22  other records are the property of the district and subject to
  10-23  public inspection.
  10-24        (b)  Neither the board nor its employees may disclose a
  10-25  district record that relates to trade secrets or the economics of
  10-26  an industry's operations.
  10-27        Sec. 411.033.  ELECTION.  (a)  Except as provided by Section
   11-1  411.012, an election in a district shall be held on an authorized
   11-2  uniform election date as provided by the Election Code.
   11-3        (b)  Each election shall be held in accordance with the
   11-4  Election Code.
   11-5        Sec. 411.034.  EMINENT DOMAIN.  (a)  A district may exercise
   11-6  the power of eminent domain to acquire by condemnation a fee simple
   11-7  or other interest in property located inside the district if the
   11-8  property interest is necessary to the exercise of the authority
   11-9  conferred by this chapter.
  11-10        (b)  The district must exercise the power of eminent domain
  11-11  in the manner provided by Chapter 21, Property Code, but the
  11-12  district is not required to deposit in the trial court money or a
  11-13  bond as provided by Section 21.021(a), Property Code.
  11-14        (c)  In a condemnation proceeding brought by a district, the
  11-15  district is not required to pay in advance or give bond or other
  11-16  security for costs in the trial court, to give bond for the
  11-17  issuance of a temporary restraining order or a temporary
  11-18  injunction, or to give bond for costs or supersedeas on an appeal
  11-19  or writ of error.
  11-20        (d)  In exercising the power of eminent domain, if the
  11-21  district requires relocating, raising, lowering, rerouting,
  11-22  changing the grade, or altering the construction of any railroad,
  11-23  highway, pipeline, or electric transmission or distribution,
  11-24  telegraph, or telephone lines, conduits, poles, or facilities, the
  11-25  district must bear the actual cost of relocating, raising,
  11-26  lowering, rerouting, changing the grade, or altering the
  11-27  construction to provide comparable replacement without enhancement
   12-1  of facilities after deducting the net salvage value derived from
   12-2  the old facility.
   12-3        Sec. 411.035.  CONTRACTS.  (a)  The board may enter into
   12-4  contracts for administration or services as provided by this
   12-5  chapter and in accordance with the applicable provisions of the
   12-6  Local Government Code.
   12-7        (b)  A contract shall be executed by the board in the name of
   12-8  the district.
   12-9        Sec. 411.036.  CONSTRUCTION, RENOVATION, AND REPAIR
  12-10  CONTRACTS.  (a)  A district may contract with any person to
  12-11  construct, renovate, or repair any of its works, improvements, or
  12-12  facilities, or other plants, pipelines, equipment, and appliances
  12-13  and, from time to time, make improvements to them.
  12-14        (b)  Contracts entered into under this section requiring an
  12-15  expenditure of more than $10,000 may be made only after competitive
  12-16  bidding as provided by Subchapter B, Chapter 271, Local Government
  12-17  Code.
  12-18        (c)  A contract entered into under this section must contain,
  12-19  or have attached to it, the specifications, plans, and details for
  12-20  work included in the contract, and work shall be done according to
  12-21  those plans and specifications under the supervision of the
  12-22  district.  The contract must be in writing and signed by the
  12-23  contractor and a representative of the district designated by the
  12-24  board.  The contract shall be kept in the district's office and
  12-25  must be available for public inspection.
  12-26        Sec. 411.037.  CONTRACTOR'S BOND.  (a)  A contractor shall
  12-27  execute a bond in an amount determined by the board, not to exceed
   13-1  the contract price, payable to the district and approved by the
   13-2  board, conditioned on the faithful performance of the obligations,
   13-3  agreements, and covenants of the contract.
   13-4        (b)  The bond must provide that if the contractor defaults on
   13-5  the contract, the contractor will pay to the district all damages
   13-6  sustained as a result of the default.  The bond shall be deposited
   13-7  in the district's depository, and a copy of the bond shall be kept
   13-8  in the district's office.
   13-9        Sec. 411.038.  MONITORING WORK.  (a)  The board has control
  13-10  of construction, renovation, or repairs being done for the district
  13-11  under a contract entered into under Section 411.036 and shall
  13-12  determine whether or not the contract is being fulfilled.
  13-13        (b)  The board shall have the construction, renovation, or
  13-14  repair work inspected by engineers, inspectors, and personnel of
  13-15  the district.
  13-16        (c)  During the progress of the work, the engineers,
  13-17  inspectors, and personnel doing the inspections shall submit to the
  13-18  board written reports that show whether the contractor is complying
  13-19  with the contract.
  13-20        (d)  On completion of construction, renovation, or repair
  13-21  work, the engineers, inspectors, and personnel shall submit to the
  13-22  board a final detailed written report including information
  13-23  necessary to show whether the contractor has fully complied with
  13-24  the contract.
  13-25        Sec. 411.039.  PAYMENT FOR WORK.  (a)  A district shall pay
  13-26  the contract price of construction, renovation, or repair contracts
  13-27  in accordance with this section.
   14-1        (b)  The district shall make progress payments under
   14-2  contracts monthly as the work proceeds or at more frequent
   14-3  intervals as determined by the board.
   14-4        (c)  If requested by the board, the contractor shall furnish
   14-5  an analysis of the total contract price showing the amount included
   14-6  for each principal category of the work, in such detail as
   14-7  requested, to provide a basis for determining progress payments.
   14-8        (d)  In making progress payments, 10 percent of the estimated
   14-9  amount shall be retained until final completion and acceptance of
  14-10  the contract work.  However, if the board, at any time after 50
  14-11  percent of the work has been completed, finds that satisfactory
  14-12  progress is being made, it may authorize any of the remaining
  14-13  progress payments to be made in full.  Also, if the work is
  14-14  substantially complete, the board, if it finds the amount retained
  14-15  to be in excess of the amount adequate for the protection of the
  14-16  district, may release to the contractor all or a portion of the
  14-17  excess amount.
  14-18        (e)  On completion and acceptance of each separate project,
  14-19  work, or other division of the contract on which the price is
  14-20  stated separately in the contract, payment may be made without
  14-21  retention of a percentage.
  14-22        (f)  When work is completed according to the terms of the
  14-23  contract, the board shall draw a warrant on the depository to pay
  14-24  any balance due on the contract.
  14-25        Sec. 411.040.  CONTRACTS FOR PURCHASE OF VEHICLES, EQUIPMENT,
  14-26  AND SUPPLIES OVER $10,000.  (a)  If the estimated amount of a
  14-27  proposed contract for the purchase of vehicles, equipment, or
   15-1  supplies is more than $10,000, the board shall ask for competitive
   15-2  bids as provided by Section 411.036(b).
   15-3        (b)  This section does not apply to purchases of property
   15-4  from public agencies or to contracts for personal or professional
   15-5  services.
   15-6        Sec. 411.041.  SUITS; PAYMENT OF JUDGMENTS.  (a)  A district
   15-7  may, through its board, sue and be sued in any court of this state
   15-8  in the name of the district.  Service of process in a suit may be
   15-9  had by serving the general manager or other officers appointed by
  15-10  the board.
  15-11        (b)  The courts of this state shall take judicial notice of
  15-12  the creation of a district.
  15-13        (c)  A court of this state that renders a money judgment
  15-14  against a district may require the board to pay the judgment from
  15-15  money in the district depository that is not dedicated to the
  15-16  payment of any indebtedness of the district.
  15-17        Sec. 411.042.  SEAL.  The board shall adopt a seal for the
  15-18  district and may alter the form of the seal from time to time.
  15-19           (Sections 411.043-411.060 reserved for expansion
  15-20               SUBCHAPTER D.  DISTRICT POWERS AND DUTIES
  15-21        Sec. 411.061.  GENERAL POWERS AND DUTIES.  (a)  A district
  15-22  shall administer and enforce this chapter and shall use its
  15-23  facilities and powers to accomplish the purposes of this chapter.
  15-24        (b)  After notice and hearing, the board may adopt rules
  15-25  necessary to carry out this chapter.  The board shall adopt rules
  15-26  providing procedures for giving notice and holding hearings.
  15-27        (c)  A district may prepare and adopt plans for and may
   16-1  purchase, obtain permits for, construct, acquire, own, operate,
   16-2  maintain, repair, improve, and extend inside the boundaries of the
   16-3  district any works, improvements, landfills, recycling facilities,
   16-4  waste-to-energy facilities, composting facilities, transfer
   16-5  stations, storage sites, and other facilities, plants, pipelines,
   16-6  equipment, and appliances necessary to transport, process, dispose
   16-7  of, and control municipal solid waste and to protect groundwater
   16-8  within the district in accordance with state law.
   16-9        (d)  A district shall acquire all permits required by state
  16-10  law that are necessary to carry out this chapter.
  16-11        (e)  A district may conduct studies and research for the
  16-12  disposal of municipal solid waste and the protection of water
  16-13  within the district.
  16-14        (f)  The regulatory powers of a district under this chapter
  16-15  extend to every person within the district.
  16-16        (g)  Except as expressly limited by this chapter, a district
  16-17  has all powers, rights, and privileges necessary and convenient for
  16-18  accomplishing the purposes of this chapter conferred by general law
  16-19  on a conservation and reclamation district created under Section
  16-20  59, Article XVI, Texas Constitution.
  16-21        (h)  Subject only to the authority vested in other entities
  16-22  by general law, including those vested in the commission by Chapter
  16-23  26, Water Code, and by Chapter 361, Health and Safety Code, a
  16-24  district may control water pollution within the district.
  16-25        (i)  The powers granted to a district by this chapter are
  16-26  cumulative of all powers granted by other laws that are by their
  16-27  terms applicable to the district.
   17-1        (j)  The powers and duties conferred on a district are
   17-2  granted subject to the state policy to encourage the development
   17-3  and use of regional and integrated solid waste management systems
   17-4  to serve the needs of the citizens of the state.
   17-5        (k)  A district may contract to provide a person solid waste
   17-6  management services or any other service authorized under this
   17-7  chapter only inside the district or in a county adjacent to the
   17-8  district.
   17-9        Sec. 411.062.  SOLID WASTE RESOURCE RECOVERY FACILITIES.  A
  17-10  district may construct or acquire and operate municipal solid waste
  17-11  resource recovery facilities inside the district.
  17-12        Sec. 411.063.  ON-SITE SEWAGE DISPOSAL SYSTEMS.  (a)  A
  17-13  district may apply to the commission for designation as an
  17-14  authorized agent to implement and enforce on-site sewage disposal
  17-15  rules under Chapter 366.
  17-16        (b)  If a district finds that due to the nature of the soil
  17-17  or drainage in the area it is necessary to prevent water pollution
  17-18  that may injure the public health, the district by rule may:
  17-19              (1)  provide limits on the number and kind of septic
  17-20  tanks in an area defined by the rule;
  17-21              (2)  prohibit the use of septic tanks in the area; or
  17-22              (3)  prohibit the installation of new septic tanks in
  17-23  the area.
  17-24        (c)  The board shall consult the commission before adopting a
  17-25  rule under Subsection (b).
  17-26        (d)  The board may not issue a rule under Subsection (b)
  17-27  without first holding a public hearing in the area to be affected
   18-1  by the rule.
   18-2        Sec. 411.064.  SOLID WASTE MANAGEMENT CONTRACTS.  (a)  Unless
   18-3  otherwise provided by this chapter, a district may contract to
   18-4  provide solid waste management services inside the district or in a
   18-5  county adjacent to the district.
   18-6        (b)  A district shall set fees in a contract under Subsection
   18-7  (a) after considering:
   18-8              (1)  the quality of the waste;
   18-9              (2)  the quantity of the waste;
  18-10              (3)  the difficulty encountered in treating or
  18-11  disposing of the waste;
  18-12              (4)  operation and maintenance expenses and debt
  18-13  retirement services; and
  18-14              (5)  any other reasonable considerations.
  18-15        Sec. 411.065.  REGULATION OF SOLID WASTE MANAGEMENT.  A
  18-16  district shall comply with all standards, laws, and rules relating
  18-17  to the operation for all aspects of solid waste handling, including
  18-18  storage, collection, recycling, incineration, sanitary landfill, or
  18-19  composting.
  18-20        Sec. 411.066.  CONSULTATION, CONTRACTS, AND COOPERATION WITH
  18-21  OTHER GOVERNMENTAL AGENCIES AND ENTITIES.  To carry out any
  18-22  purposes or powers under this chapter, a district may advise,
  18-23  consult, contract, and cooperate with the federal government and
  18-24  its agencies, the state and its agencies, local governments, and
  18-25  private entities.
  18-26        Sec. 411.067.  ACQUISITION OF PROPERTY.  A district may
  18-27  acquire by gift, grant, devise, purchase, or lease any land,
   19-1  easements, rights-of-way, and other property interests necessary
   19-2  inside the district to carry out the powers and duties provided by
   19-3  this chapter.
   19-4        Sec. 411.068.  ACQUISITION OF EXISTING FACILITIES.  If a
   19-5  district acquires existing works, improvements, facilities, plants,
   19-6  pipelines, equipment, and appliances that are completed, partially
   19-7  completed, or under construction, the district may assume the
   19-8  contracts and obligations of the previous owner and perform the
   19-9  obligations of the previous owner in the same manner and to the
  19-10  same extent that any other purchaser or assignee would be bound.
  19-11        Sec. 411.069.  ENTRY ON LAND.  (a)  The directors, the
  19-12  engineer, and the employees of a district may go on any land inside
  19-13  the district or in a county adjacent to the district to make
  19-14  surveys and examine the land with reference to the location of
  19-15  works, improvements, and waste disposal, treatment, and other
  19-16  facilities, plants, pipelines, equipment, and appliances and to
  19-17  attend to business of the district.
  19-18        (b)  Before a director, engineer, or employee enters on the
  19-19  land, the landowner must grant written permission or five days'
  19-20  written notice must be given to the landowner.
  19-21        (c)  If any activities of a district on the land cause
  19-22  damages to the land or property, the land or property shall be
  19-23  restored as nearly as possible to its original state.  The district
  19-24  shall pay the cost of the restoration.
  19-25        Sec. 411.070.  RIGHT TO USE ROAD RIGHT-OF-WAY.  (a)  A
  19-26  district has a right-of-way along and across all public state or
  19-27  county roads or highways.
   20-1        (b)  A governmental entity that has jurisdiction of a
   20-2  right-of-way may designate the place on the right-of-way on which
   20-3  the facilities of the district may be installed and may require the
   20-4  relocation of the district's facilities to accommodate any widening
   20-5  or changing of traffic lanes.
   20-6        (c)  The district may not proceed with an action to change,
   20-7  alter, or damage facilities or property of the state unless the
   20-8  district first obtains the written consent of the governmental
   20-9  entity that has control and jurisdiction of the facilities or
  20-10  property.
  20-11           (Sections 411.071-411.090 reserved for expansion
  20-12                   SUBCHAPTER E.  DISTRICT FINANCES
  20-13        Sec. 411.091.  FISCAL YEAR.  (a)  A district operates on the
  20-14  fiscal year established by the board.
  20-15        (b)  The fiscal year may not be changed more than once in a
  20-16  24-month period.
  20-17        Sec. 411.092.  ANNUAL AUDIT.  Annually, the board shall have
  20-18  an audit made of the financial condition of the district.
  20-19        Sec. 411.093.  ANNUAL BUDGET.  (a)  The board shall prepare
  20-20  and approve an annual budget for the district.
  20-21        (b)  The budget shall contain a complete financial statement,
  20-22  including a statement of:
  20-23              (1)  the outstanding obligations of the district;
  20-24              (2)  the amount of cash on hand to the credit of each
  20-25  fund of the district;
  20-26              (3)  the amount of money received by the district from
  20-27  all sources during the previous year;
   21-1              (4)  the amount of money available to the district from
   21-2  all sources during the ensuing year;
   21-3              (5)  the amount of the balances expected at the end of
   21-4  the year in which the budget is being prepared;
   21-5              (6)  the estimated amount of revenues and balances
   21-6  available to cover the proposed budget; and
   21-7              (7)  the estimated tax rate that will be required.
   21-8        (c)  After adoption, the annual budget may be amended on the
   21-9  board's approval.
  21-10        (d)  Money may not be spent for an expense not included in
  21-11  the annual budget or an amendment to it unless the board by order
  21-12  declares the expense to be necessary.
  21-13        (e)  As soon as practicable after the close of the fiscal
  21-14  year, the treasurer of the district shall prepare for the board a
  21-15  sworn statement of the amount of money that belongs to the district
  21-16  and an account of the disbursements of that money.
  21-17        Sec. 411.094.  DEPOSITORY.  (a)  The board shall name one or
  21-18  more banks to serve as depository for district funds.
  21-19        (b)  District funds, other than those transmitted to a bank
  21-20  for payment of bonds issued by the district, shall be deposited as
  21-21  received with the depository bank and must remain on deposit.  This
  21-22  section does not limit the power of the board to invest the
  21-23  district's funds as provided by Section 411.095.
  21-24        (c)  Before the district deposits funds in a bank in an
  21-25  amount that exceeds the maximum amount secured by the Federal
  21-26  Deposit Insurance Corporation, the bank must execute a bond or
  21-27  provide other security in an amount sufficient to secure from loss
   22-1  the district's funds that exceed the amount secured by the Federal
   22-2  Deposit Insurance Corporation.
   22-3        Sec. 411.095.  INVESTMENTS.  (a)  Funds of a district may be
   22-4  invested and reinvested by the board or its authorized
   22-5  representative in those investments specified by Article 836 or
   22-6  837, Revised Statutes, or Chapter 2256, Government Code.
   22-7        (b)  Funds of a district may be placed in certificates of
   22-8  deposit of state or national banks or state or federal savings and
   22-9  loan associations within the state provided that funds are secured
  22-10  in the manner required for the security of the funds of counties of
  22-11  the state.
  22-12        (c)  The board by resolution may provide that an authorized
  22-13  representative of a district may invest and reinvest the funds of
  22-14  the district and provide for money to be withdrawn from the
  22-15  appropriate accounts of the district for investments on terms the
  22-16  board considers advisable.
  22-17        Sec. 411.096.  PAYMENT OF EXPENSES.  (a)  A district's
  22-18  directors may pay all costs and expenses necessarily incurred in
  22-19  the creation, organization, and operation of the district, legal
  22-20  fees, and other incidental expenses and may reimburse any person
  22-21  for money advanced for those purposes.
  22-22        (b)  Payments may be made from money obtained from the sale
  22-23  of bonds issued by the district or out of taxes, fees, or other
  22-24  revenues of the district.
  22-25        Sec. 411.097.  FEES AND CHARGES.  (a)  The board may adopt
  22-26  and enforce all necessary charges, fees, or rentals, in addition to
  22-27  taxes, for providing any district facilities or services.
   23-1        (b)  The board may require a deposit for any services or
   23-2  facilities furnished and may or may not provide that the deposit
   23-3  will bear interest.  The interest, if any, may accrue to the
   23-4  deposit or be used to offset amounts due.
   23-5        (c)  The board may discontinue a facility or service to
   23-6  prevent an abuse or enforce payment of an unpaid charge, fee, or
   23-7  rental due the district, including taxes that have been due for not
   23-8  less than six months.
   23-9        Sec. 411.098.  GIFTS, GRANTS, LOANS, AND OTHER FUNDS.  To
  23-10  carry out any purposes or powers under this chapter, a district may
  23-11  apply for, accept, receive, and administer gifts, grants, loans,
  23-12  and other funds available from any source.
  23-13        Sec. 411.099.  BORROWING MONEY.  A district may borrow money
  23-14  for any purpose authorized under this chapter or any combination of
  23-15  those purposes.
  23-16           (Sections 411.100-411.110 reserved for expansion
  23-17                         SUBCHAPTER F.  BONDS
  23-18        Sec. 411.111.  AUTHORITY TO ISSUE BONDS.  The board may issue
  23-19  and sell bonds in the name of the district to acquire land and
  23-20  construct works, improvements, and waste disposal, treatment, and
  23-21  other facilities, plants, pipelines, equipment, and appliances as
  23-22  provided by this chapter.
  23-23        Sec. 411.112.  BOND PAYMENT.  The board may provide for the
  23-24  payment of the principal of and interest on the bonds:
  23-25              (1)  from the levy and collection of property taxes on
  23-26  all taxable property within the district;
  23-27              (2)  by pledging all or part of the designated revenues
   24-1  from the ownership or operation of the district's works,
   24-2  improvements, and facilities; or
   24-3              (3)  from a combination of the sources listed by
   24-4  Subdivisions (1) and (2).
   24-5        Sec. 411.113.  BOND ELECTION.  (a)  Bonds may not be issued
   24-6  by a district until authorized by a majority vote of individuals
   24-7  qualified to vote and actually voting in the area within the
   24-8  boundaries of the district at an election called and held for that
   24-9  purpose.
  24-10        (b)  The board may order a bond election.  The order calling
  24-11  the election must state the nature and the date of the election,
  24-12  the hours during which the polls will be open, the location of the
  24-13  polling places, the amount of bonds to be authorized, and the
  24-14  maximum maturity of the bonds.
  24-15        (c)  Notice of a bond election must be given as provided by
  24-16  the Election Code.
  24-17        (d)  At an election to authorize bonds, the ballot must be
  24-18  printed to permit voting for or against the issuance of bonds and
  24-19  the levy of property taxes for payment of the bonds.
  24-20        (e)  The board shall canvass the returns and declare the
  24-21  results of the election.  If a majority of the votes cast at the
  24-22  election favor the issuance of the bonds, the bonds may be issued
  24-23  by the board, but if a majority of the votes cast at the election
  24-24  do not favor issuance of the bonds, the bonds may not be issued.
  24-25        Sec. 411.114.  TERMS; FORM.  (a)  A district may issue its
  24-26  bonds in various series or issues.
  24-27        (b)  Bonds may mature serially or otherwise not more than 50
   25-1  years after the date of issuance and shall bear interest at a rate
   25-2  permitted by state law.
   25-3        (c)  A district's bonds and interest coupons, if any, are
   25-4  investment securities under the terms of Chapter 8, Business &
   25-5  Commerce Code, and may be issued registrable as to principal or as
   25-6  to principal and interest or may be issued in book entry form and
   25-7  may be made redeemable before maturity at the option of the
   25-8  district or may contain a mandatory redemption provision.
   25-9        (d)  A district's bonds may be issued in the form,
  25-10  denominations, and manner and under the terms, conditions, and
  25-11  details and shall be signed and executed as provided by the board
  25-12  in the resolution or order authorizing the bonds.
  25-13        Sec. 411.115.  BOND PROVISIONS.  (a)  In the orders or
  25-14  resolutions authorizing the issuance of bonds, including refunding
  25-15  bonds, the board may provide for the flow of funds, the
  25-16  establishment and maintenance of the interest and sinking fund, the
  25-17  reserve fund, and other funds and may make additional covenants
  25-18  with respect to the bonds and the pledged fees.
  25-19        (b)  The orders or resolutions of the board authorizing the
  25-20  issuance of bonds may prohibit the further issuance of bonds or
  25-21  other obligations payable from the pledged fees or may reserve the
  25-22  right to issue additional bonds to be secured by a pledge of and
  25-23  payable from the fees on a parity with or subordinate to the pledge
  25-24  in support of the bonds being issued.
  25-25        (c)  The orders or resolutions of the board issuing bonds may
  25-26  contain other provisions and covenants as the board may determine.
  25-27        (d)  The board may adopt and have executed any other
   26-1  proceedings or instruments necessary and convenient in the issuance
   26-2  of bonds.
   26-3        Sec. 411.116.  APPROVAL AND REGISTRATION.  (a)  Bonds issued
   26-4  by a district and the records relating to their issuance must be
   26-5  submitted to the attorney general for examination as to their
   26-6  validity.
   26-7        (b)  If the attorney general finds that the bonds have been
   26-8  authorized in accordance with the law, the attorney general shall
   26-9  approve them, and the comptroller of public accounts shall register
  26-10  the bonds.
  26-11        (c)  Following approval and registration, the bonds are
  26-12  incontestable and are binding obligations according to their terms.
  26-13        Sec. 411.117.  REFUNDING BONDS.  (a)  Refunding bonds of a
  26-14  district may be issued to refund and pay off an outstanding
  26-15  indebtedness the district has issued or assumed.
  26-16        (b)  The bonds must be issued in the manner provided by
  26-17  Chapter 784, Acts of the 61st Legislature, Regular Session, 1969
  26-18  (Article 717k-3, Vernon's Texas Civil Statutes).
  26-19        (c)  The refunding bonds may be sold and the proceeds applied
  26-20  to the payment of outstanding indebtedness or may be exchanged in
  26-21  whole or in part for not less than a similar principal amount of
  26-22  outstanding indebtedness.  If the refunding bonds are to be sold
  26-23  and the proceeds applied to the payment of outstanding
  26-24  indebtedness, the refunding bonds must be issued and payments made
  26-25  in the manner provided by Chapter 503, Acts of the 54th
  26-26  Legislature, Regular Session, 1955 (Article 717k, Vernon's Texas
  26-27  Civil Statutes).
   27-1        Sec. 411.118.  LEGAL INVESTMENTS; SECURITY FOR DEPOSITS.  (a)
   27-2  District bonds are legal and authorized investments for:
   27-3              (1)  a bank;
   27-4              (2)  a savings bank;
   27-5              (3)  a trust company;
   27-6              (4)  a savings and loan association;
   27-7              (5)  an insurance company;
   27-8              (6)  a fiduciary;
   27-9              (7)  a trustee;
  27-10              (8)  a guardian; and
  27-11              (9)  the sinking fund of a municipality, county, school
  27-12  district, or other political subdivision of the state and other
  27-13  public funds of the state and its agencies, including the permanent
  27-14  school fund.
  27-15        (b)  District bonds may secure deposits of public funds of
  27-16  the state or a municipality, county, school district, or other
  27-17  political subdivision of the state.  The bonds are lawful and
  27-18  sufficient security for deposits to the extent of their value, if
  27-19  accompanied by all unmatured coupons.
  27-20        Sec. 411.119.  MANDAMUS BY BONDHOLDERS.  In addition to all
  27-21  other rights and remedies provided by law, if a district defaults
  27-22  in the payment of principal, interest, or redemption price on its
  27-23  bonds when due or if it fails to make payments into any fund or
  27-24  funds created in the orders or resolutions authorizing the issuance
  27-25  of the bonds or defaults in the observation or performance of any
  27-26  other covenants, conditions, or obligations set forth in the orders
  27-27  or resolutions authorizing the issuance of its bonds, the owners of
   28-1  any of the bonds are entitled to a writ of mandamus issued by a
   28-2  court of competent jurisdiction compelling and requiring the
   28-3  district and its officials to observe and perform the covenants,
   28-4  obligations, or conditions prescribed in the orders or resolutions
   28-5  authorizing the issuance of the district's bonds.
   28-6        Sec. 411.120.  APPLICATION OF OTHER LAWS.  Bonds of a
   28-7  district are considered bonds under the Bond Procedures Act of 1981
   28-8  (Article 717k-6, Vernon's Texas Civil Statutes).
   28-9           (Sections 411.121-411.130 reserved for expansion
  28-10                         SUBCHAPTER G.  TAXES
  28-11        Sec. 411.131.  TAX STATUS OF BONDS.  Bonds issued by the
  28-12  district, any transaction relating to the bonds, and profits made
  28-13  in the sale of the bonds are free from taxation by the state or by
  28-14  a municipality, county, special district, or other political
  28-15  subdivision of the state.
  28-16        Sec. 411.132.  LEVY OF TAXES.  (a)  The board may annually
  28-17  levy taxes in the district in an amount necessary to pay the
  28-18  principal of and interest on bonds issued by the district and the
  28-19  expense of assessing and collecting taxes.
  28-20        (b)  The district may annually levy and collect a maintenance
  28-21  and operating tax in an amount not to exceed 50 cents on each $100
  28-22  of assessed valuation of property in the district to pay
  28-23  maintenance and operating expenses of the district.
  28-24        Sec. 411.133.  BOARD AUTHORITY.  (a)  The board may levy
  28-25  taxes for the entire year in which the district is created.
  28-26        (b)  The board shall levy taxes on all property within the
  28-27  boundaries of the district subject to district taxation.
   29-1        Sec. 411.134.  TAX RATE.  In setting the tax rate, the board
   29-2  shall take into consideration the income of the district from
   29-3  sources other than taxation.  On determination of the amount of tax
   29-4  required to be levied, the board shall make the levy and certify it
   29-5  to the tax collector.
   29-6        Sec. 411.135.  TAX APPRAISAL, ASSESSMENT, AND COLLECTION.
   29-7  (a)  The Tax Code governs the appraisal, assessment, and collection
   29-8  of district taxes.
   29-9        (b)  The board may provide for the appointment of a tax
  29-10  collector for the district or may contract for the collection of
  29-11  taxes as provided by the Tax Code.
  29-12      CHAPTER 412.  PROVISIONS APPLICABLE TO SPECIFIC SOLID WASTE
  29-13                         MANAGEMENT DISTRICTS
  29-14                    SUBCHAPTER A.  VAN ZANDT COUNTY
  29-15        Sec. 412.001.  DEFINITION.  In this subchapter, "district"
  29-16  means the Van Zandt County Waste Management District.
  29-17        Sec. 412.002.  BOUNDARIES.  The district consists of the area
  29-18  within the boundaries of Van Zandt County.
  29-19        Sec. 412.003.  POWERS.  The district has all of the rights,
  29-20  powers, privileges, authority, functions, and duties provided by
  29-21  the general law of this state, including Chapter 411, applicable to
  29-22  a solid waste management district created under Section 59, Article
  29-23  XVI, Texas Constitution.  This subchapter prevails over any
  29-24  provision of general law that is in conflict or inconsistent with
  29-25  this subchapter.
  29-26        Sec. 412.004.  BOARD OF DIRECTORS.  (a)  The district is
  29-27  governed by a board of directors composed of seven members, who are
   30-1  elected as provided by this subchapter.
   30-2        (b)  The directors shall be elected from the district at
   30-3  large.
   30-4        Sec. 412.005.  TERM OF OFFICE.  A director holds office for a
   30-5  term of three years and serves until the director's successor is
   30-6  elected and has qualified.
   30-7        Sec. 412.006.  ELECTION OF DIRECTORS.  On the first Saturday
   30-8  in May in each year, an election shall be held in the district to
   30-9  elect the appropriate number of directors to the board.
  30-10        Sec. 412.007.  BEGINNING OF DIRECTOR'S TERM.  A director
  30-11  shall take office at the first regular meeting of the board in May
  30-12  following the director's election to the board.
  30-13        Sec. 412.008.  ORGANIZATION OF BOARD.  (a)  After each annual
  30-14  directors' election, the board shall hold a regular meeting in May
  30-15  at the district office and shall organize by electing from the
  30-16  members of the board one person to serve as chairman, one person to
  30-17  serve as vice-chairman, and one person to serve as secretary.
  30-18        (b)  A person selected to serve as chairman, vice-chairman,
  30-19  or secretary serves in that capacity for a term of one year.
  30-20        Sec. 412.009.  DIRECTOR'S COMPENSATION.  A director is not
  30-21  entitled to receive a per diem allowance for more than 120 days in
  30-22  any one calendar year.
  30-23        Sec. 412.010.  MAINTENANCE AND OPERATING TAX.  On approval of
  30-24  a majority of the voters in the district at an election called for
  30-25  that purpose, the district may levy and collect a maintenance and
  30-26  operating tax in an amount not to exceed five cents on each $100 of
  30-27  assessed valuation of property in the district to pay maintenance
   31-1  and operating expenses of the district.  The maintenance and
   31-2  operating tax election shall be held in the manner provided by
   31-3  Chapter 411 for the confirmation and directors' election.
   31-4           (Sections 412.011-412.030 reserved for expansion
   31-5                     SUBCHAPTER B.  GAINES COUNTY
   31-6        Sec. 412.031.  DEFINITION.  In this subchapter, "district"
   31-7  means the Gaines County Waste Management District.
   31-8        Sec. 412.032.  BOUNDARIES.  The district consists of the area
   31-9  within the boundaries of Gaines County.
  31-10        Sec. 412.033.  POWERS.  The district has all of the rights,
  31-11  powers, privileges, authority, functions, and duties provided by
  31-12  the general law of this state, including Chapter 411, applicable to
  31-13  a solid waste management district created under Section 59, Article
  31-14  XVI, Texas Constitution.  This subchapter prevails over any
  31-15  provision of general law that is in conflict or inconsistent with
  31-16  this subchapter.
  31-17        Sec. 412.034.  APPOINTMENT OF INITIAL DIRECTORS.  (a)  On or
  31-18  after the effective date of this subchapter, the Commissioners
  31-19  Court of Gaines County shall appoint three persons, the governing
  31-20  body of the City of Seminole shall appoint two persons, and the
  31-21  governing body of the City of Seagraves shall appoint two persons
  31-22  to serve as initial directors of the district.  The four persons
  31-23  appointed by the governing bodies of the cities of Seminole and
  31-24  Seagraves shall represent the municipalities within the county, and
  31-25  the three persons appointed by the Commissioners Court of Gaines
  31-26  County shall represent the unincorporated areas of the county.  In
  31-27  addition, the board of regents of The University of Texas System
   32-1  shall appoint one person to serve as an ex officio nonvoting
   32-2  director of the district.
   32-3        (b)  A vacancy on the initial board shall be filled in the
   32-4  same manner as the original appointment for the unexpired term.
   32-5        (c)  The Commissioners Court of Gaines County and the
   32-6  governing bodies of the cities of Seminole and Seagraves shall each
   32-7  appoint one initial director to serve a term expiring on May 1 of
   32-8  the first year after the year in which the original appointment is
   32-9  made.  In addition, the Commissioners Court of Gaines County shall
  32-10  appoint two initial directors and the governing bodies of the
  32-11  cities of Seminole and Seagraves shall each appoint one initial
  32-12  director to serve terms expiring on May 1 of the second year after
  32-13  the year in which the original appointment is made.  The initial ex
  32-14  officio member serves a term expiring on May 1 of the second year
  32-15  after the year in which the original appointment is made.
  32-16  Successor directors serve two-year terms.
  32-17        Sec. 412.035.  BALLOT PROPOSITION.  The ballot shall be
  32-18  printed to permit voting for or against the proposition:  "The
  32-19  creation of the Gaines County Solid Waste Management District and
  32-20  the levy of a maintenance and operating tax in an amount not to
  32-21  exceed five cents on each $100 valuation."  The ballot shall
  32-22  include the names of the persons appointed as directors for the
  32-23  district.
  32-24        Sec. 412.036.  EXPIRATION.  If the creation of the district
  32-25  is not confirmed on or before the fifth anniversary of the
  32-26  effective date of this subchapter, this subchapter expires.
  32-27        Sec. 412.037.  BOARD OF DIRECTORS.  (a)  The district is
   33-1  governed by a board of directors composed of seven voting members
   33-2  and one ex officio nonvoting member who are appointed as provided
   33-3  by this subchapter.  However, the district shall change to a system
   33-4  of electing the voting directors if:
   33-5              (1)  the Commissioners Court of Gaines County and the
   33-6  governing bodies of the cities of Seminole and Seagraves each pass
   33-7  a resolution calling for the election of the directors; or
   33-8              (2)  the board receives a petition signed by at least
   33-9  150 registered voters of Gaines County calling for the election of
  33-10  the directors.
  33-11        (b)  If the resolution is passed or the petition presented to
  33-12  the board as provided by Subsection (a), a directors' election
  33-13  shall be held on the first Saturday in May that occurs after the
  33-14  resolution is passed or the petition presented.  The board by order
  33-15  may postpone the election date for one year if:
  33-16              (1)  the election will occur within 60 days after the
  33-17  date the resolution is passed or the petition is presented; or
  33-18              (2)  the board determines that there is not sufficient
  33-19  time to comply with the requirements of law and to order the
  33-20  election.
  33-21        (c)  The change to a system of electing the voting directors
  33-22  does not apply to or affect the ex officio nonvoting director
  33-23  appointed by the board of regents of The University of Texas
  33-24  System.
  33-25        Sec. 412.038.  METHOD OF ELECTION.  (a)  If directors are
  33-26  elected, one director shall be elected from each commissioner
  33-27  precinct and three directors shall be elected from the district at
   34-1  large.
   34-2        (b)  At the initial election of directors, the candidate
   34-3  receiving the highest number of votes from a commissioner precinct
   34-4  is the director for that precinct, and the three candidates
   34-5  receiving the highest number of votes from the district at large
   34-6  are the directors for the district at large.  If two or more
   34-7  persons tie for the third-highest vote, the Commissioners Court of
   34-8  Gaines County shall select the third member from those tying for
   34-9  the place.
  34-10        (c)  The candidates elected from the odd-numbered precincts
  34-11  and the two candidates elected from the district at large who
  34-12  receive the highest number of votes at the initial election serve
  34-13  for a term of two years.  The candidates elected from the
  34-14  even-numbered precincts and the candidate elected from the district
  34-15  at large who receives the third-highest number of votes at that
  34-16  election serve for a term of one year.
  34-17        (d)  After the initial election of directors, an election
  34-18  shall be held on the first Saturday in May each year and the
  34-19  appropriate number of successor directors shall be elected for
  34-20  two-year terms.
  34-21        Sec. 412.039.  QUALIFICATIONS FOR OFFICE.  (a)  To be
  34-22  eligible to be appointed as, to be a candidate for, or to serve as
  34-23  a voting director, a person must be:
  34-24              (1)  a resident of the district; and
  34-25              (2)  a qualified voter.
  34-26        (b)  In addition to the qualifications required by Subsection
  34-27  (a), a person who is elected from a commissioner precinct or who is
   35-1  appointed to fill a vacancy for a commissioner precinct must be a
   35-2  resident of that commissioner precinct.
   35-3        (c)  Each voting director must execute a bond in the amount
   35-4  of $5,000 with a corporate surety authorized to do business in this
   35-5  state and conditioned on the faithful performance of the director's
   35-6  duties.
   35-7        Sec. 412.040.  BEGINNING OF DIRECTOR'S TERM.  A director
   35-8  shall take office at the first regular meeting of the board in May
   35-9  following the director's appointment or election and qualification.
  35-10        Sec. 412.041.  VACANCY ON BOARD.  (a)  If the directors are
  35-11  appointed, a vacancy on the board shall be filled in the same
  35-12  manner as the original appointment for the unexpired term.
  35-13        (b)  If the directors are elected, the vacancy of an elected
  35-14  director's position on the board shall be filled by appointment of
  35-15  the remaining members of the board until the next election of
  35-16  directors for the district.  If that position is not scheduled to
  35-17  be filled at that election, the person elected to fill the position
  35-18  serves only for the remainder of the unexpired term.
  35-19        Sec. 412.042.  ORGANIZATION OF BOARD.  (a)  After each annual
  35-20  appointment or election of directors, the board shall hold a
  35-21  regular meeting in May at the district office and shall organize by
  35-22  electing from the members of the board one person to serve as
  35-23  chairman, one person to serve as vice-chairman, and one person to
  35-24  serve as secretary.
  35-25        (b)  A person selected to serve as chairman, vice-chairman,
  35-26  or secretary serves in that capacity for a term of one year.
  35-27        Sec. 412.043.  MEETING AND ACTIONS OF BOARD.  (a)  A majority
   36-1  of the voting members of the board constitute a quorum for the
   36-2  transaction of business of the district.
   36-3        (b)  Except as otherwise provided by this subchapter, the
   36-4  vote of a majority of the voting directors is required for board
   36-5  action.
   36-6        Sec. 412.044.  GENERAL MANAGER.  The board may discharge the
   36-7  general manager on a majority vote of all of the voting directors.
   36-8        Sec. 412.045.  ADDITIONAL POWERS AND DUTIES.  (a)  The
   36-9  district shall prepare and adopt plans for and shall purchase,
  36-10  obtain permits for, construct, acquire, own, operate, maintain,
  36-11  repair, improve, and extend inside the district or in a county
  36-12  adjacent to the district any works, improvements, landfills,
  36-13  recycling facilities, waste-to-energy facilities, composting
  36-14  facilities, transfer stations, storage sites, and other facilities,
  36-15  plants, pipelines, equipment, and appliances necessary to
  36-16  transport, process, dispose of, and control solid waste and to
  36-17  protect groundwater within the district in accordance with state
  36-18  law.
  36-19        (b)  The district may conduct studies and research for the
  36-20  disposal of solid waste and the protection of water within the
  36-21  district.
  36-22        Sec. 412.046.  LIMITATION OF CERTAIN POWERS.  The district
  36-23  may not provide solid waste collection services without an
  36-24  interlocal agreement approved by the county, the City of Seminole,
  36-25  and the City of Seagraves.  However, the district shall purchase
  36-26  equipment, facilities, containers, and other necessary items for
  36-27  collection services if the district adopts a recycling program.
   37-1        Sec. 412.047.  ACQUISITION OF PROPERTY.  The district may
   37-2  acquire by gift, grant, devise, purchase, or lease any land,
   37-3  easements, rights-of-way, and other property interests necessary to
   37-4  carry out the powers and duties provided by this subchapter.
   37-5        Sec. 412.048.  SOLID WASTE RESOURCE RECOVERY FACILITIES.  The
   37-6  district may construct or acquire and operate solid waste resource
   37-7  recovery facilities.
   37-8        Sec. 412.049.  LEVY OF TAXES.  (a)  The board may annually
   37-9  levy taxes in the district in an amount necessary to pay the
  37-10  principal of and interest on bonds issued by the district and the
  37-11  expense of assessing and collecting taxes.
  37-12        (b)  The district may annually levy and collect a maintenance
  37-13  and operating tax in an amount not to exceed five cents on each
  37-14  $100 of assessed valuation of property in the district to pay
  37-15  maintenance and operating expenses of the district.
  37-16        (c)  The combined tax rate for all purposes may not exceed 10
  37-17  cents on each $100 of assessed valuation of property in the
  37-18  district.
  37-19        Sec. 412.050.  Expansion of District Territory.  (a)
  37-20  Registered voters of a defined territory that is not included in
  37-21  the district may file a petition with the secretary of the board
  37-22  requesting the inclusion of the territory in the district.  The
  37-23  petition must be signed by at least 50 registered voters of the
  37-24  territory or a majority of those voters, whichever is less.
  37-25        (b)  The board by order shall set a time and place to hold a
  37-26  hearing on the petition to include the territory in the district.
  37-27  The board shall set a date for the hearing that is after the 30th
   38-1  day after the date the board issues the order.
   38-2        (c)  If after the hearing the board finds that annexation of
   38-3  the territory into the district would be feasible and would benefit
   38-4  the district, the board may approve the annexation by a resolution
   38-5  entered in its minutes.  The board is not required to include all
   38-6  of the territory described in the petition if the board finds that
   38-7  a modification or change is necessary or desirable.
   38-8        (d)  Annexation of territory is final when approved by a
   38-9  majority of the voters at an election held in the district and by a
  38-10  majority of the voters at a separate election held in the territory
  38-11  to be annexed.  If the district has outstanding debts or taxes, the
  38-12  voters in the election to approve the annexation must also
  38-13  determine if the annexed territory will assume its proportion of
  38-14  the debts or taxes if added to the district.
  38-15        (e)  The election ballots shall be printed to permit voting
  38-16  for or against the following, as applicable:
  38-17              (1)  "Adding (description of territory to be added) to
  38-18  the Gaines County Solid Waste Management District."
  38-19              (2)  "(Description of territory to be added) assuming
  38-20  its proportionate share of the outstanding debts and taxes of the
  38-21  Gaines County Solid Waste Management  District, if it is added to
  38-22  the district."
  38-23        (f)  The election shall be held after the 45th day and on or
  38-24  before the 60th day after the date the election is ordered.  The
  38-25  election shall be ordered and notice of the election shall be given
  38-26  in accordance with the Election Code.
  38-27           (Sections 412.051-412.070 reserved for expansion
   39-1                  SUBCHAPTER C.  UPPER SABINE VALLEY
   39-2        Sec. 412.071.  DEFINITION.  In this subchapter, "district"
   39-3  means the Upper Sabine Valley Solid Waste Management District.
   39-4        Sec. 412.072.  DESCRIPTION.  Except as provided by Section
   39-5  412.075, the district's territory consists of the area within the
   39-6  boundaries of Upshur, Wood, and Rains counties and that portion of
   39-7  Smith County that is north of Interstate Highway 20.
   39-8        Sec. 412.073.  POWERS.  The district has all of the rights,
   39-9  powers, privileges, authority, functions, and duties provided by
  39-10  the general law of this state, including Chapter 411, applicable to
  39-11  a solid waste management district created under Section 59, Article
  39-12  XVI, Texas Constitution.  This subchapter prevails over any
  39-13  provision of general law that is in conflict or inconsistent with
  39-14  this subchapter.
  39-15        Sec. 412.074.  APPOINTMENT OF TEMPORARY DIRECTORS.  (a)  On
  39-16  or after the effective date of this subchapter, the commissioners
  39-17  court of each county included in the proposed district shall each
  39-18  appoint two persons to serve as temporary directors of the
  39-19  district.
  39-20        (b)  Members of the temporary board serve until the persons
  39-21  selected as directors under Sections 412.076-412.080 have been
  39-22  appointed and have qualified for office.
  39-23        (c)  A vacancy on the temporary board shall be filled by
  39-24  appointment in the same manner as the original appointment.
  39-25        Sec. 412.075.  CONFIRMATION AND TAX ELECTIONS.  (a)  The
  39-26  temporary directors shall call and hold a separate election in each
  39-27  county within the boundaries of the proposed district to determine
   40-1  if the proposed district will be created and a tax authorized.  The
   40-2  elections shall be held on the same day and within six months of
   40-3  the effective date of this subchapter.
   40-4        (b)  Section 41.001(a), Election Code, does not apply to a
   40-5  confirmation and tax election held under this section.
   40-6        (c)  Notice of the confirmation and tax elections shall state
   40-7  the day and places for holding the elections and the proposition to
   40-8  be voted on.  The temporary board shall publish the notice of the
   40-9  elections one time in one or more newspapers of general circulation
  40-10  in the proposed district.  The notice must be published before the
  40-11  35th day before the date set for the elections.
  40-12        (d)  The ballot for the elections shall be printed to permit
  40-13  voting for or against the proposition:  "The creation of the Upper
  40-14  Sabine Valley Solid Waste Management District and the levy of a
  40-15  maintenance and operating tax in an amount not to exceed three
  40-16  cents on each $100 valuation."
  40-17        (e)  Immediately after the confirmation and tax elections,
  40-18  the presiding judge of each polling place shall deliver returns of
  40-19  the elections to the temporary board, and the temporary board shall
  40-20  canvass the returns and declare the results.
  40-21        (f)  If a majority of the votes cast at the election in one
  40-22  or more counties favor creation of the district, the board shall
  40-23  declare the district created and shall enter the results in its
  40-24  minutes.  If the election results are favorable in one or more
  40-25  counties, but not in all counties, the temporary directors shall
  40-26  set the boundaries of the district to include only the counties in
  40-27  which the vote was favorable.   If a majority of the votes cast at
   41-1  each election are against the creation of the district, the board
   41-2  shall declare that the creation of the district was defeated and
   41-3  shall enter the results in its minutes.  The board shall file a
   41-4  copy of the election results with the commission.
   41-5        (g)  If a majority of the voters in each county vote against
   41-6  the creation of the district, the board may call and hold
   41-7  additional confirmation and tax elections, but another election to
   41-8  confirm creation of the district may not be called and held by the
   41-9  board before the first anniversary of the most recent confirmation
  41-10  and tax elections.  If the creation of the district is not
  41-11  confirmed on or before the fifth anniversary of the effective date
  41-12  of this subchapter, this subchapter expires.
  41-13        Sec. 412.076.  BOARD OF DIRECTORS.  (a)  The district is
  41-14  governed by a board of directors composed of not fewer than six
  41-15  members who are appointed as provided by this subchapter.
  41-16        (b)  If the district is composed of only one county, the
  41-17  commissioners court of that county shall appoint six persons to
  41-18  serve as directors.
  41-19        (c)  If the district is composed of two counties, the
  41-20  commissioners court of each county included in the district shall
  41-21  each appoint three persons to serve as directors.
  41-22        (d)  If the district is composed of three or more counties,
  41-23  the commissioners court of each county included in the district
  41-24  shall each appoint two persons to serve as directors.
  41-25        (e)  At least one of the directors appointed by each
  41-26  commissioners court shall represent the interests of municipalities
  41-27  and of unincorporated communities with a population of 1,000 or
   42-1  more that are located in that county.
   42-2        Sec. 412.077.  QUALIFICATIONS OF DIRECTORS.  (a)  To be
   42-3  eligible to be appointed as or to serve as a director, a person
   42-4  must be:
   42-5              (1)  18 years of age or older;
   42-6              (2)  a qualified voter; and
   42-7              (3)  a resident of the county of the appointing
   42-8  commissioners court.
   42-9        (b)  If a member of a commissioners court or a municipal
  42-10  government officer is appointed as a director, the member's or
  42-11  officer's service as a director is considered an additional duty of
  42-12  the member's or officer's existing office.  The member or officer
  42-13  is not entitled to a per diem allowance under Section 412.082 but
  42-14  is entitled to reimbursement for actual and necessary expenses
  42-15  incurred in performing official duties as a director.
  42-16        (c)  Each director must execute a bond in the amount of
  42-17  $5,000 with a corporate surety authorized to do business in this
  42-18  state and conditioned on the faithful performance of the director's
  42-19  duties.  The district shall pay the premiums on the directors'
  42-20  bonds under this section.
  42-21        Sec. 412.078.  TERM OF OFFICE.  Except as provided by
  42-22  Sections 412.080 and 412.101, a director holds office for a term of
  42-23  four years and until the director's successor has been appointed
  42-24  and has qualified.
  42-25        Sec. 412.079.  VACANCY ON BOARD.  A vacancy on the board
  42-26  shall be filled in the same manner as the original appointment for
  42-27  the unexpired term.
   43-1        Sec. 412.080.  INITIAL MEETING AND ORGANIZATION.  (a)  As
   43-2  soon as possible after all directors have been appointed and have
   43-3  qualified, the county judge of the county included in the district
   43-4  that has the largest population shall call a meeting of the board
   43-5  and shall preside at the meeting until the directors have elected
   43-6  from the board's membership a chairman, a vice-chairman, a
   43-7  secretary, and a treasurer.
   43-8        (b)  A person selected as an officer serves for a term of one
   43-9  year.
  43-10        (c)  At the initial meeting, the directors shall draw lots so
  43-11  that one-half of the initial directors serve four-year terms that
  43-12  begin on the date on which the initial meeting is held, and
  43-13  one-half of the directors serve two-year terms that begin on that
  43-14  date.
  43-15        (d)  The board shall adopt bylaws at the initial meeting or
  43-16  as soon after the initial meeting as practicable.  The bylaws must
  43-17  prescribe the powers, duties, and procedures for removal from a
  43-18  board office.
  43-19        Sec. 412.081.  MEETING AND ACTIONS OF BOARD.  (a)  The board
  43-20  shall meet at least one time each month and may meet at any other
  43-21  time provided by its bylaws.
  43-22        (b)  A majority of the members of the board constitute a
  43-23  quorum for the transaction of business of the district.
  43-24        (c)  Except as otherwise provided by this subchapter, the
  43-25  vote of a majority of directors is required for board action.
  43-26        Sec. 412.082.  DIRECTOR'S COMPENSATION.  (a)  A director is
  43-27  entitled to receive $50 a day and reimbursement for actual and
   44-1  necessary expenses incurred:
   44-2              (1)  for each day the director attends meetings of the
   44-3  board; and
   44-4              (2)  for each day the director attends to the business
   44-5  of the district that is authorized by board resolution or motion.
   44-6        (b)  A director is not entitled to receive a per diem
   44-7  allowance for more than 60 days in any one calendar year.
   44-8        Sec. 412.083.  GENERAL MANAGER; PERSONNEL.  The board shall
   44-9  employ a general manager for a term and salary set by the board.
  44-10        Sec. 412.084.  RECORDS.  (a)  The district shall keep
  44-11  complete and accurate accounts of its business transactions in
  44-12  accordance with generally accepted methods of accounting.
  44-13        (b)  The district shall keep complete and accurate minutes of
  44-14  its meetings.
  44-15        (c)  The district shall keep its accounts, contracts,
  44-16  documents, minutes, and other records at its principal office.
  44-17        (d)  Neither the board nor its employees may disclose a
  44-18  district record that relates to trade secrets or the economics of
  44-19  an industry's operations.
  44-20        Sec. 412.085.  CONTRACTS.  The board may enter into contracts
  44-21  as provided by this subchapter, and those contracts shall be
  44-22  executed by the board in the name of the district.
  44-23        Sec. 412.086.  SUPERVISION OF DISTRICT.  The district is
  44-24  subject to the continuing right of supervision by the state in
  44-25  accordance with state law.
  44-26        Sec. 412.087.  SUITS; PAYMENTS OF JUDGMENTS.  The district,
  44-27  through its board, may sue and be sued in any court of this state
   45-1  in the name of the district.  Service of process in a suit may be
   45-2  had by serving the general manager.
   45-3        Sec. 412.088.  ADDITIONAL POWERS AND DUTIES.  (a)  The
   45-4  district may prepare and adopt plans for and may purchase,
   45-5  construct, acquire, own, operate, maintain, repair, improve, and
   45-6  extend inside the district or in a county adjacent to the district
   45-7  any works, improvements, waste disposal, treatment, and other
   45-8  facilities, plants, pipelines, equipment, and appliances necessary
   45-9  to collect, transport, process, dispose of, and control domestic,
  45-10  industrial, and communal waterborne and solid waste within the
  45-11  district.
  45-12        (b)  The district shall conduct studies and research for the
  45-13  control of water pollution and waste disposal within the district,
  45-14  shall cooperate with the department and commission in any studies,
  45-15  and shall use the results of those studies.
  45-16        (c)  Except as expressly limited by this subchapter, the
  45-17  district has all powers, rights, and privileges necessary and
  45-18  convenient for accomplishing the purposes of this subchapter
  45-19  conferred by general law on a conservation and reclamation district
  45-20  created under Section 59, Article XVI, Texas Constitution,
  45-21  including specifically all powers, rights, and privileges conferred
  45-22  by Subtitle B, Title 5, Health and Safety Code, on a local or
  45-23  regional government.
  45-24        (d)  Subject only to the authority vested in other entities
  45-25  by general law, including those vested in the commission by Chapter
  45-26  26, Water Code, and those vested in the department by Chapter 361,
  45-27  the district may control water pollution and waste disposal within
   46-1  the district.
   46-2        (e)  The district may enter into cooperative agreements with
   46-3  local governments and other political subdivisions to jointly
   46-4  operate solid waste management activities and to charge reasonable
   46-5  fees for those services.
   46-6        Sec. 412.089.  ACQUISITION OF PROPERTY.  The district may
   46-7  acquire by gift, grant, devise, purchase, lease, or eminent domain
   46-8  any land, easements, rights-of-way, and other property interests
   46-9  necessary to carry out the powers and duties provided by this
  46-10  subchapter.
  46-11        Sec. 412.090.  EMINENT DOMAIN.  (a)  The district may acquire
  46-12  land for the purposes authorized by Section 412.088(a) by
  46-13  condemnation if the board determines, after notice and hearing,
  46-14  that it is necessary.
  46-15        (b)  The district must exercise the power of eminent domain
  46-16  in the manner provided by Chapter 21, Property Code, but the
  46-17  district is not required to:
  46-18              (1)  deposit in the trial court money or a bond as
  46-19  provided by Section 21.021(a), Property Code;
  46-20              (2)  pay in advance or give bond or other security for
  46-21  costs in the trial court;
  46-22              (3)  give bond for the issuance of a temporary
  46-23  restraining order or a temporary injunction; or
  46-24              (4)  give bond for costs or supersedeas on an appeal or
  46-25  writ of error.
  46-26        (c)  If the district, in the exercise of the power of eminent
  46-27  domain, requires relocating, raising, lowering, rerouting, changing
   47-1  the grade, or altering the construction of any railroad, highway,
   47-2  pipeline, or electric transmission and electric distribution,
   47-3  telegraph, or telephone lines, conduits, poles or facilities, the
   47-4  district must bear the actual cost of relocating, raising,
   47-5  lowering, rerouting, changing the grade, or altering the
   47-6  construction to provide comparable replacement without enhancement
   47-7  of facilities, after deducting the net salvage value derived from
   47-8  the old facility.
   47-9        Sec. 412.091.  AUTHORITY TO ENTER INTO CONSTRUCTION,
  47-10  RENOVATION, AND REPAIR CONTRACTS.  The district may contract with
  47-11  any person to construct, renovate, or repair any of its works,
  47-12  improvements, waste disposal, treatment, or other facilities,
  47-13  plants, pipelines, equipment, and appliances and, from time to
  47-14  time, make improvements to them.
  47-15        Sec. 412.092.  ENTRY ON LAND.  Before a director, engineer,
  47-16  or employee enters on the land, five days' written notice must be
  47-17  given to the landowner.
  47-18        Sec. 412.093.  ACQUISITION OF EXISTING FACILITIES.  If the
  47-19  district acquires existing works, improvements,  and waste
  47-20  disposal, treatment, and other facilities, plants, pipelines,
  47-21  equipment, and appliances that are completed, partially completed,
  47-22  or under construction, the district may assume the contracts and
  47-23  obligations of the previous owner and perform the obligations of
  47-24  the previous owner in the same manner and to the same extent that
  47-25  any other purchaser or assignee would be bound.
  47-26        Sec. 412.094.  SOLID WASTE RESOURCE RECOVERY OR RECYCLING
  47-27  FACILITIES.  The district may construct or acquire and operate
   48-1  solid waste resource recovery or recycling facilities.
   48-2        Sec. 412.095.  REGULATION OF SOLID WASTE DISPOSAL.  (a)  The
   48-3  district shall establish minimum standards of operation for all
   48-4  aspects of solid waste handling, including storage, collection,
   48-5  incineration, recycling, sanitary landfill, and composting.
   48-6        (b)  Before establishing the standards, the district shall:
   48-7              (1)  hold public hearings after giving public notice in
   48-8  the time and manner prescribed by board rule;
   48-9              (2)  consult with the commission to ensure that the
  48-10  standards are not inconsistent with established criteria; and
  48-11              (3)  find that the standards are reasonably necessary
  48-12  to protect the public health or welfare from water pollution or
  48-13  other environmental harm.
  48-14        (c)  To amend standards, the district shall follow the same
  48-15  procedures required for establishing standards.
  48-16        (d)  The district may make rules reasonably necessary to
  48-17  implement solid waste disposal standards.
  48-18        (e)  The district may assume the exclusive authority to
  48-19  exercise the powers granted to a county under Section 361.165,
  48-20  including the power to issue licenses and exercise municipal solid
  48-21  waste management authority.  If the district elects to exercise the
  48-22  licensing authority granted under this subsection, it must adopt
  48-23  and enforce rules for the management of municipal solid waste.  The
  48-24  rules must be compatible with and at least as stringent as those of
  48-25  the commission and must be approved by the commission.
  48-26        Sec. 412.096.  SEPTIC TANKS.  The board may provide in the
  48-27  order for a gradual and systematic reduction of the number or kind
   49-1  of septic tanks in the area and, by rule, may provide for a system
   49-2  of licensing and issuing permits for the installation of new septic
   49-3  tanks in the area affected, in which event a person may not install
   49-4  septic tanks in the area without a license or permit from the
   49-5  board.
   49-6        Sec. 412.097.  ACQUISITION, CONSTRUCTION, AND OPERATION OF
   49-7  DISPOSAL SYSTEMS.  The district may:
   49-8              (1)  acquire and provide by purchase, gift, or lease
   49-9  any disposal systems inside the district or in a county adjacent to
  49-10  the district;
  49-11              (2)  construct and provide disposal systems inside the
  49-12  district or in a county adjacent to the district;
  49-13              (3)  operate and sell any disposal systems that it
  49-14  constructs or acquires;
  49-15              (4)  contract with a person to operate and maintain a
  49-16  disposal system belonging to the person; and
  49-17              (5)  contract with a person to train or supervise
  49-18  employees of a disposal system.
  49-19        Sec. 412.098.  WASTE DISPOSAL CONTRACTS.  (a)  The district
  49-20  may contract to receive and to treat or dispose of waste from a
  49-21  person in the district.
  49-22        (b)  The district shall set fees in a contract under
  49-23  Subsection (a) after considering:
  49-24              (1)  the quality of the waste;
  49-25              (2)  the quantity of the waste;
  49-26              (3)  the difficulty encountered in treating or
  49-27  disposing of the waste;
   50-1              (4)  operation and maintenance expenses and debt
   50-2  retirement services; and
   50-3              (5)  any other reasonable considerations.
   50-4        Sec. 412.099.  AREAWIDE WASTE TREATMENT.  The powers and
   50-5  duties conferred on the district are granted subject to the state
   50-6  policy to encourage the development and use of integrated areawide
   50-7  waste collection, treatment, and disposal systems to serve the
   50-8  waste disposal needs of the citizens of the state, it being an
   50-9  objective of the policy to avoid the economic burden to the people
  50-10  and the impact on the quality of the water in the state that result
  50-11  from the construction and operation of numerous small waste
  50-12  collection, treatment, and disposal facilities to serve an area
  50-13  when an integrated areawide waste collection, treatment, and
  50-14  disposal system for the area can be reasonably provided.
  50-15        Sec. 412.100.  LEVY OF TAXES.  The district may levy and
  50-16  collect a maintenance and operating tax in an amount not to exceed
  50-17  three cents on each $100 of assessed valuation of property in the
  50-18  district to pay maintenance and operating expenses of the district.
  50-19        Sec. 412.101.  ANNEXATION OF TERRITORY.  (a)  The board may
  50-20  annex the territory within the boundaries of an adjacent county in
  50-21  the manner provided by this section.
  50-22        (b)  To initiate annexation proceedings, the commissioners
  50-23  court of the adjacent county must petition the board requesting the
  50-24  board to call an annexation election for the territory within the
  50-25  petitioner's county.  The petition must be in writing and be
  50-26  endorsed by a majority of the members of the commissioners court.
  50-27        (c)  On receipt of the petition, the board shall set a time
   51-1  and place to hold a hearing on the petition.  The board shall set a
   51-2  date for the hearing that is not later than the 20th day after the
   51-3  date on which the board receives the petition.
   51-4        (d)  The board shall publish notice of the place, time, date,
   51-5  and purpose of the hearing in one or more newspapers with general
   51-6  circulation in the district and in the county to be annexed.  This
   51-7  notice is in addition to the notice required under the open
   51-8  meetings law, Chapter 551, Government Code.
   51-9        (e)  Any person may testify at the hearing for or against
  51-10  annexation of the county to the district.
  51-11        (f)  At the conclusion of the hearing, the board shall
  51-12  determine if an election should be held in the county to be annexed
  51-13  to determine if the county should be annexed to the district.
  51-14        (g)  Annexation of a county is final when approved by a
  51-15  majority of the voters at an election held in the county to be
  51-16  annexed.  If the district has outstanding debts or taxes, the
  51-17  voters in the election to approve the annexation must also
  51-18  determine if the annexed county will assume its proportion of the
  51-19  debts or taxes if added to the district. An election in the
  51-20  existing district accepting the addition of the county is not
  51-21  required.
  51-22        (h)  The election ballots shall be printed to permit voting
  51-23  for or against the following, as applicable:
  51-24              (1)  "Adding (description of county to be added) to the
  51-25  Upper Sabine Valley Solid Waste Management District."
  51-26              (2)  "(Description of county to be added) assuming its
  51-27  proportionate share of the outstanding debts and taxes of the Upper
   52-1  Sabine Valley Solid Waste Management District, if it is added to
   52-2  the district."
   52-3        (i)  The election shall be held after the 45th day and on or
   52-4  before the 60th day after the date the election is ordered.  The
   52-5  election shall be ordered and notice of the election shall be given
   52-6  in accordance with the Election Code.  Section 41.001(a), Election
   52-7  Code, does not apply to an election held under this section.
   52-8        (j)  The board shall file a copy of the election results with
   52-9  the commission.
  52-10        (k)  The commissioners court of the annexed county shall
  52-11  appoint two directors to serve on the district's board of
  52-12  directors.  The newly appointed directors shall draw lots to
  52-13  determine their initial terms of office.  One new director shall
  52-14  serve an initial term that coincides with the terms of district
  52-15  directors that expire within two years and the other director shall
  52-16  serve a term that expires within two to four years.
  52-17        Sec. 412.102.  EXCLUSION FROM DISTRICT.  (a)  At any time
  52-18  before the district incurs bonded or other long-term indebtedness,
  52-19  the commissioners court of a county within the district may
  52-20  petition the board to hold an election within the county to
  52-21  determine if a majority of voters of that county want to exclude
  52-22  the county from the district.  On receipt of the petition, the
  52-23  board shall enter an order authorizing the commissioners court to
  52-24  call the election. 
  52-25        (b)  After the issuance of bonds or other long-term
  52-26  indebtedness, a county commissioners court may petition the board
  52-27  to hold an election to determine if the county should be excluded
   53-1  from the district.  Before authorizing the commissioners court to
   53-2  call an election for this purpose, the board must obtain adequate
   53-3  legal and financial assurances that the county will assume and pay
   53-4  to the district its proportionate share, based on assessed
   53-5  valuation of taxable property in the county and district, of the
   53-6  district's outstanding debt if the county withdraws from the
   53-7  district.  After obtaining assurances the board determines to be
   53-8  adequate, the board shall enter an order authorizing the
   53-9  commissioners court of that county to call an election in that
  53-10  county to determine if the county should be excluded from the
  53-11  district.
  53-12        Sec. 412.103.  ELECTION.  (a)  Exclusion of a county is final
  53-13  when approved by a majority of the voters at an election held in
  53-14  the county to be excluded.  If the district has outstanding bonds
  53-15  or other long-term obligations, the voters in the election to
  53-16  approve the exclusion must also determine if the excluded county
  53-17  will assume a duty to pay its proportion of the district's
  53-18  outstanding indebtedness.
  53-19        (b)  The ballots for the election shall be printed to permit
  53-20  voting for or against the proposition, as applicable:  "The
  53-21  exclusion of __________ County from the Upper Sabine Valley Solid
  53-22  Waste Management District and assumption by the county of a duty to
  53-23  pay its proportionate share of the outstanding indebtedness of the
  53-24  district."
  53-25        (c)  The election shall be held after the 45th day and on or
  53-26  before the 60th day after the date the election is ordered.  The
  53-27  election shall be ordered and notice of the election shall be given
   54-1  in accordance with the Election Code.  Section 41.001(a), Election
   54-2  Code, does not apply to an election held under this section.
   54-3        (d)  The board shall file a copy of the election results with
   54-4  the commission.
   54-5        Sec. 412.104.  CONTINUED OBLIGATION FOR INDEBTEDNESS.  The
   54-6  exclusion of a county under Section 412.102(b) does not relieve the
   54-7  district of its obligation to perform and observe the covenants and
   54-8  obligations or the conditions prescribed by the orders or
   54-9  resolution authorizing the issuance of the district's bonds.
  54-10        SECTION 2.  The following are repealed:
  54-11              (1)  Chapter 1256, Acts of the 71st Legislature,
  54-12  Regular Session, 1989;
  54-13              (2)  Chapter 670, Acts of the 72nd Legislature, Regular
  54-14  Session, 1991 (Article 4477-7j, Vernon's Texas Civil Statutes); and
  54-15              (3)  Chapter 734, Acts of the 72nd Legislature, Regular
  54-16  Session, 1991 (Article 4477-7k, Vernon's Texas Civil Statutes).
  54-17        SECTION 3.  The repeal of a law by this Act does not affect
  54-18  an amendment of that law by the 74th Legislature, Regular Session,
  54-19  1995.  That amendment is preserved and given effect as part of this
  54-20  Act.
  54-21        SECTION 4.  This Act takes effect September 1, 1995.
  54-22        SECTION 5.  The importance of this legislation and the
  54-23  crowded condition of the calendars in both houses create an
  54-24  emergency and an imperative public necessity that the
  54-25  constitutional rule requiring bills to be read on three several
  54-26  days in each house be suspended, and this rule is hereby suspended.