S.B. No. 626
AN ACT
1-1 relating to certain laws governing water districts and nonprofit
1-2 water or sewer service corporations; creating penalties; granting
1-3 authority to issue bonds; granting the power of eminent domain.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.002, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 1.002. Construction of Code. (a) The Code
1-8 Construction Act (Chapter 311, Government Code) applies to the
1-9 construction of each provision in this code, except as otherwise
1-10 expressly provided by this code.
1-11 (b) In this code:
1-12 (1) a reference to a title, chapter, or section
1-13 without further identification is a reference to a title, chapter,
1-14 or section of this code; and
1-15 (2) a reference to a subtitle, subchapter, subsection,
1-16 subdivision, paragraph, or other numbered or lettered unit without
1-17 further identification is a reference to a unit of the next larger
1-18 unit of this code in which the reference appears.
1-19 (c) A reference in a law to a statute or part of a statute
1-20 revised by this code is considered to be a reference to the part of
1-21 this code that revises that statute or part of the statute.
1-22 SECTION 2. Title 4, Water Code, is amended by adding Chapter
1-23 49 to read as follows:
2-1 CHAPTER 49. PROVISIONS APPLICABLE TO ALL DISTRICTS
2-2 SUBCHAPTER A. GENERAL PROVISIONS
2-3 Sec. 49.001. DEFINITIONS. (a) As used in this chapter:
2-4 (1) "District" means any district or authority created
2-5 by authority of either Sections 52(b)(1) and (2), Article III, or
2-6 Section 59, Article XVI, Texas Constitution, regardless of how
2-7 created. The term "district" shall not include any navigation
2-8 district or port authority created under general or special law or
2-9 any conservation and reclamation district created pursuant to
2-10 Chapter 62, Acts of the 52nd Legislature, 1951 (Article 8280-141,
2-11 Vernon's Texas Civil Statutes).
2-12 (2) "Commission" means the Texas Natural Resource
2-13 Conservation Commission.
2-14 (3) "Board" means the governing body of a district.
2-15 (4) "Executive director" means the executive director
2-16 of the commission.
2-17 (5) "Water supply corporation" means a nonprofit water
2-18 supply or sewer service corporation created or operating under
2-19 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
2-20 (Article 1434a, Vernon's Texas Civil Statutes).
2-21 (6) "Director" means either a supervisor or director
2-22 appointed or elected to the board.
2-23 (7) "Municipal solid waste" has the same meaning
2-24 assigned by Section 361.003, Health and Safety Code.
2-25 (8) "Special water authority" means a river authority
3-1 as that term is defined in Section 30.003, or a district created by
3-2 a special Act of the legislature that:
3-3 (A) is a provider of water or wastewater service
3-4 to two or more municipalities; and
3-5 (B) is governed by a board of directors
3-6 appointed or designated in whole or in part by the governor, the
3-7 Texas Water Development Board, or municipalities within its service
3-8 area.
3-9 (9) "Potable water" means water that has been treated
3-10 for public drinking water supply purposes.
3-11 (b) These definitions are for use in this chapter only and
3-12 have no effect on any other statute or code unless specifically
3-13 referenced by that statute or code.
3-14 Sec. 49.002. APPLICABILITY. This chapter applies to all
3-15 general and special law districts to the extent that the provisions
3-16 of this chapter do not directly conflict with a provision in any
3-17 other chapter of this code or any Act creating or affecting a
3-18 special law district. In the event of such conflict, the specific
3-19 provisions in such other chapter or Act shall control.
3-20 Sec. 49.003. PENALTY. A district that fails to comply with
3-21 the filing provisions of this code may be subject to a civil
3-22 penalty of up to $100 per day for each day the district wilfully
3-23 continues to violate these provisions after receipt of written
3-24 notice of violation from the executive director by certified mail,
3-25 return receipt requested. The state may sue to recover the
4-1 penalty.
4-2 Sec. 49.004. PENALTY FOR VIOLATION OF DISTRICT RULES.
4-3 (a) The board may set reasonable civil penalties for the breach of
4-4 any rule of the district that shall not exceed the jurisdiction of
4-5 a justice court as provided by Section 27.031, Government Code.
4-6 (b) A penalty under this section is in addition to any other
4-7 penalty provided by the law of this state and may be enforced by
4-8 complaints filed in the appropriate court of jurisdiction in the
4-9 county in which the district's principal office or meeting place is
4-10 located.
4-11 (c) If the district prevails in any suit to enforce its
4-12 rules, it may, in the same action, recover reasonable fees for
4-13 attorneys, expert witnesses, and other costs incurred by the
4-14 district before the court. The amount of the attorney's fees shall
4-15 be fixed by the court.
4-16 (Sections 49.005 to 49.009 reserved for expansion
4-17 SUBCHAPTER B. CREATION
4-18 Sec. 49.010. ORDER OR ACT CREATING DISTRICT. Within 60 days
4-19 after the date a district is created, the district shall file with
4-20 the executive director a certified copy of the order or legislative
4-21 Act creating the district or authorizing its creation, unless the
4-22 district was created by order of the commission.
4-23 (Sections 49.011 to 49.050 reserved for expansion
4-24 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
4-25 Sec. 49.051. BOARD OF DIRECTORS. A district shall be
5-1 governed by its board, the number of which is otherwise provided by
5-2 law.
5-3 Sec. 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
5-4 is disqualified from serving as a member of a board of a district
5-5 that includes less than all the territory in at least one county
5-6 and which, if located within the corporate area of a city or
5-7 cities, includes within its boundaries less than 75 percent of the
5-8 incorporated area of the city or cities, if that person:
5-9 (1) is related within the third degree of affinity or
5-10 consanguinity to a developer of property in the district, any other
5-11 member of the board, or the manager, engineer, attorney, or other
5-12 person providing professional services to the district;
5-13 (2) is an employee of any developer of property in the
5-14 district or any director, manager, engineer, attorney, or other
5-15 person providing professional services to the district or a
5-16 developer of property in the district in connection with the
5-17 district or property located in the district;
5-18 (3) is a developer of property in the district;
5-19 (4) is serving as an attorney, consultant, engineer,
5-20 manager, architect, or in some other professional capacity for the
5-21 district or a developer of property in the district in connection
5-22 with the district or property located in the district;
5-23 (5)(A) is a party to a contract with or along with the
5-24 district except for the purchase of public services furnished by
5-25 the district to the public generally; or
6-1 (B) is a party to a contract with or along with
6-2 a developer of property in the district relating to the district or
6-3 to property within the district, other than a contract limited
6-4 solely to the purpose of purchasing or conveying real property in
6-5 the district for the purpose of either establishing a permanent
6-6 residence, establishing a commercial business within the district,
6-7 or qualifying as a director; or
6-8 (6) during the term of office, fails to maintain the
6-9 qualifications required by law to serve as a director.
6-10 (b) Within 60 days after the board determines a relationship
6-11 or employment exists which constitutes a disqualification under
6-12 Subsection (a), it shall replace the person serving as a member of
6-13 the board with a person who would not be disqualified.
6-14 (c) Any person who wilfully occupies an office as a member
6-15 of a board and exercises the powers and duties of that office when
6-16 disqualified under the provisions of Subsection (a) is guilty of a
6-17 misdemeanor and, on conviction, shall be fined not less than $100
6-18 nor more than $1,000.
6-19 (d) As used in this section, "developer of property in the
6-20 district" means any person who owns land located within a district
6-21 covered under this section and who has divided or proposes to
6-22 divide the land into two or more parts for the purpose of laying
6-23 out any subdivision or any tract of land or any addition to any
6-24 town or city, or for laying out suburban lots or building lots, or
6-25 any lots, streets, alleys, or parks or other portions intended for
7-1 public use, or the use of purchasers or owners of lots fronting
7-2 thereon or adjacent thereto.
7-3 (e) Any rights obtained by any third party through official
7-4 action of a board covered by this section are not impaired or
7-5 affected by the disqualification under this section of any member
7-6 of the board to serve, provided that the third party had no
7-7 knowledge at the time the rights were obtained of the fact that the
7-8 member of the board was disqualified to serve.
7-9 (f) This section shall not apply to special water
7-10 authorities, districts described in Section 49.181(h)(4), or a
7-11 district where the principal function of the district is to provide
7-12 irrigation water to agricultural lands or to provide nonpotable
7-13 water for any purpose.
7-14 (g) A board by unanimous vote of its remaining members may
7-15 remove a board member only if that board member has missed one-half
7-16 or more of the regular meetings scheduled during the prior 12
7-17 months. Any board member so removed may file a written appeal with
7-18 the commission within 30 days after receiving written notice of the
7-19 board action. The commission may reinstate a removed director if
7-20 the commission finds that the removal was unwarranted under the
7-21 circumstances, including the reasons for absences, the time and
7-22 place of the meetings missed, the business conducted at the
7-23 meetings missed, and any other facts or circumstances the
7-24 commission may deem relevant.
7-25 Sec. 49.053. QUORUM. A majority of the membership of the
8-1 board constitutes a quorum for any meeting, and a concurrence of a
8-2 majority of the entire membership of the board is sufficient for
8-3 transacting any business of the district. This section does not
8-4 apply to special water authorities.
8-5 Sec. 49.054. OFFICERS. (a) After a district is created and
8-6 the directors have qualified, the board shall meet, elect a
8-7 president, vice-president, secretary, and any other officers or
8-8 assistant officers as the board may deem necessary, and begin the
8-9 discharge of its duties.
8-10 (b) After each directors election, the board shall meet and
8-11 elect officers.
8-12 (c) The president is the chief executive officer of the
8-13 district, presides at all meetings of the board, and shall execute
8-14 all documents on behalf of the district. The vice-president shall
8-15 act as president in case of the absence or disability of the
8-16 president. The secretary is responsible for seeing that all
8-17 records and books of the district are properly kept and shall
8-18 attest the president's signature on all documents.
8-19 (d) The board may appoint another director, the general
8-20 manager, or any employee as assistant or deputy secretary to assist
8-21 the secretary, and any such person shall be entitled to certify as
8-22 to the authenticity of any record of the district, including but
8-23 not limited to all proceedings relating to bonds, contracts, or
8-24 indebtedness of the district.
8-25 (e) After any election or appointment of a director, a
9-1 district shall notify the executive director within 30 days after
9-2 the date of the election or appointment of the name and mailing
9-3 address of the director chosen and the date that director's term of
9-4 office expires. The executive director shall provide forms to the
9-5 district for such purpose.
9-6 (f) This section does not apply to special water
9-7 authorities.
9-8 Sec. 49.055. SWORN STATEMENT, BOND, AND OATH OF OFFICE.
9-9 (a) As soon as practicable after a director is elected or
9-10 appointed, that director shall make the sworn statement prescribed
9-11 by the constitution for public office.
9-12 (b) As soon as practicable after a director has made the
9-13 sworn statement, and before beginning to perform the duties of
9-14 office, that director shall take the oath of office prescribed by
9-15 the constitution for public officers.
9-16 (c) Before beginning to perform the duties of office, each
9-17 director shall execute a bond for $10,000 payable to the district
9-18 and conditioned on the faithful performance of that director's
9-19 duties. All bonds of the directors shall be approved by the board
9-20 and paid for by the district.
9-21 (d) The sworn statement, bond, and oath shall be filed with
9-22 the district and retained in its records. A duplicate original of
9-23 the sworn statement and the oath shall also be filed with the
9-24 secretary of state within 10 days after their execution and need
9-25 not be filed before the new director begins to perform the duties
10-1 of office.
10-2 (e) This section does not apply to special water
10-3 authorities.
10-4 Sec. 49.056. GENERAL MANAGER. (a) The board may employ or
10-5 contract with a person to perform such services as general manager
10-6 for the district as the board may from time to time specify. The
10-7 board may delegate to the general manager full authority to manage
10-8 and operate the affairs of the district subject only to orders of
10-9 the board.
10-10 (b) The board may delegate to the general manager the
10-11 authority to employ all persons necessary for the proper handling
10-12 of the business and operation of the district and to determine the
10-13 compensation to be paid all employees other than the general
10-14 manager.
10-15 (c) Except as provided by Section 49.052, a director may be
10-16 employed as general manager of the district, but the compensation
10-17 of a general manager who also serves as a director shall be
10-18 established by the other directors.
10-19 Sec. 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
10-20 be responsible for the management of all the affairs of the
10-21 district. The district shall employ or contract with all persons,
10-22 firms, partnerships, corporations, or other entities, public or
10-23 private, deemed necessary by the board for the conduct of the
10-24 affairs of the district, including, but not limited to, engineers,
10-25 attorneys, financial advisors, operators, bookkeepers, tax
11-1 assessors and collectors, auditors, and administrative staff.
11-2 (b) The board shall adopt an annual budget. All district
11-3 employees are employed at the will of the district unless the
11-4 district and employee execute a written employment contract.
11-5 (c) The board shall set the compensation and terms for
11-6 consultants.
11-7 (d) In selecting attorneys, engineers, auditors, financial
11-8 advisors, or other professional consultants, the district shall
11-9 follow the procedures provided in Subchapter A, Chapter 2254,
11-10 Government Code (Professional Services Procurement Act).
11-11 (e) The board shall require an officer, employee, or
11-12 consultant who collects, pays, or handles any funds of the district
11-13 to furnish good and sufficient bond, payable to the district, in an
11-14 amount determined by the board to be sufficient to safeguard the
11-15 district. The bond shall be conditioned on the faithful
11-16 performance of that person's duties and on accounting for all funds
11-17 and property of the district. Such bond shall be signed or
11-18 endorsed by a surety company authorized to do business in the
11-19 state.
11-20 (f) The board may pay the premium on surety bonds required
11-21 of officials, employees, or consultants of the district out of any
11-22 available funds of the district, including proceeds from the sale
11-23 of bonds.
11-24 (g) The board may adopt bylaws to govern the affairs of the
11-25 district to perform its purposes. The board may by resolution
12-1 authorize its general manager or other employee to execute
12-2 documents on behalf of the district.
12-3 (h) The board shall also have the right to purchase all
12-4 materials, supplies, equipment, vehicles, and machinery needed by
12-5 the district to perform its purposes.
12-6 Sec. 49.058. CONFLICTS OF INTEREST. A director of a
12-7 district is subject to the provisions of Chapter 171, Local
12-8 Government Code, relating to the regulation of conflicts of
12-9 interest of officers of local governments.
12-10 Sec. 49.059. DISQUALIFICATION OF TAX ASSESSOR AND COLLECTOR.
12-11 (a) No person may serve as tax assessor and collector of a
12-12 district providing potable water or sewer utility services to
12-13 household users if that person:
12-14 (1) is related within the third degree of affinity or
12-15 consanguinity to any developer of property in the district, a
12-16 member of the board, or the manager, engineer, or attorney for the
12-17 district;
12-18 (2) is or was within two years immediately preceding
12-19 the assumption of assessment and collection duties with the
12-20 district an employee of any developer of property in the district
12-21 or any director, manager, engineer, or attorney for the district;
12-22 (3) owns an interest in or is employed by any
12-23 corporation organized for the purpose of tax assessment and
12-24 collection services, a substantial portion of the stock of which is
12-25 owned by a developer of property within the district or any
13-1 director, manager, engineer, or attorney for the district; or
13-2 (4) is directly or through a corporation developing
13-3 land in the district or is a director, engineer, or attorney for
13-4 the district.
13-5 (b) Within 60 days after the board determines a relationship
13-6 or employment exists which constitutes a disqualification under
13-7 Subsection (a), it shall replace the person serving as tax assessor
13-8 and collector with a person who would not be disqualified.
13-9 (c) Any person who wilfully violates the provisions of
13-10 Subsection (a) is guilty of a misdemeanor and on conviction shall
13-11 be fined not less than $100 nor more than $1,000.
13-12 (d) As used in this section, "developer of property in the
13-13 district" has the same meaning as in Section 49.052(d).
13-14 Sec. 49.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
13-15 is entitled to receive fees of office of not more than $100 a day
13-16 for each day the director actually spends performing the duties of
13-17 a director. The fees of office may not exceed $6,000 per annum
13-18 except for directors of a special water authority which is engaged
13-19 in the distribution and sale of electric energy to the public.
13-20 (b) Each director is also entitled to receive reimbursement
13-21 of actual expenses reasonably and necessarily incurred while
13-22 engaging in activities on behalf of the district.
13-23 (c) In order to receive fees of office and to receive
13-24 reimbursement for expenses, each director shall file with the
13-25 district a verified statement showing the number of days actually
14-1 spent in the service of the district and a general description of
14-2 the duties performed for each day of service.
14-3 (d) Section 49.002 notwithstanding, in all areas of conflict
14-4 the provisions of this section shall take precedence over all prior
14-5 statutory enactments. If the enactment of this section results in
14-6 an increase in the fees of office for any district, that district's
14-7 fees of office shall not increase unless the board adopts a
14-8 resolution authorizing payment of the higher fees.
14-9 Sec. 49.061. SEAL. The directors shall adopt a seal for the
14-10 district.
14-11 Sec. 49.062. OFFICES AND MEETING PLACES. (a) The board
14-12 shall designate from time to time and maintain one or more regular
14-13 offices for conducting the business of the district and maintaining
14-14 the records of the district. Such offices may be located either
14-15 inside or outside the district's boundaries as determined in the
14-16 discretion of the board.
14-17 (b) The board shall designate one or more places inside or
14-18 outside the district for conducting the meetings of the board. The
14-19 meeting place may be a private residence or office, provided that
14-20 the board, in its order establishing the meeting place, declares
14-21 the same to be a public place and invites the public to attend any
14-22 meeting of the board. If the board establishes a meeting place or
14-23 places outside the district, it shall give notice of the location
14-24 or locations by filing a true copy of the resolution establishing
14-25 the location or locations of the meeting place or places with the
15-1 commission and also by publishing notice of the location or
15-2 locations in a newspaper of general circulation in the district.
15-3 If the location of any of the meeting places outside the district
15-4 is changed, notice of the change shall be given in the same manner.
15-5 (c) After at least 25 qualified electors are residing in a
15-6 district, on written request of at least five of those electors,
15-7 the board shall designate a meeting place and hold meetings within
15-8 the district if it determines that the meeting place used by the
15-9 district deprives the residents of a reasonable opportunity to
15-10 attend district meetings. On the failure to designate the location
15-11 of the meeting place within the district, five electors may
15-12 petition the commission to designate a location. If it determines
15-13 that the meeting place used by the district deprives the residents
15-14 of a reasonable opportunity to attend district meetings, the
15-15 commission may designate a meeting place inside or outside the
15-16 district which is reasonably available to the public and require
15-17 that the meetings be held at such place. After the next election,
15-18 the board may designate different meeting places, including one
15-19 located outside the boundaries of the district.
15-20 (d) Two or more districts may designate and share offices
15-21 and meeting places. This section does not apply to special water
15-22 authorities.
15-23 Sec. 49.063. NOTICE OF MEETINGS. Notice of meetings of the
15-24 board shall be given as set forth in the open meetings law, Chapter
15-25 551, Government Code, except that if a district does not have a
16-1 meeting place within the district, the district shall post notice
16-2 of its meeting at a public place within the district specified by
16-3 the board in a written resolution, rather than at its
16-4 administrative office. The board shall specify such public place
16-5 to be a bulletin board or other place within the district which is
16-6 reasonably available to the public. Neither failure to provide
16-7 notice of a regular meeting nor an insubstantial defect in notice
16-8 of any meeting shall affect the validity of any action taken at the
16-9 meeting.
16-10 Sec. 49.064. MEETINGS. The board shall hold such regular
16-11 and special meetings as may be necessary for the proper conduct of
16-12 the district's business. All meetings shall be conducted in
16-13 accordance with the open meetings law, Chapter 551, Government
16-14 Code. A meeting of a committee of the board, or a committee
16-15 composed of representatives of more than one board, where less than
16-16 a quorum of any one board is present is not subject to the
16-17 provisions of the open meetings law, Chapter 551, Government Code.
16-18 Sec. 49.065. RECORDS. (a) The board shall keep a complete
16-19 account of all its meetings and proceedings and shall preserve its
16-20 minutes, contracts, records, notices, accounts, receipts, and other
16-21 records in a safe place.
16-22 (b) The records of each district are the property of the
16-23 district and are subject to the open records law, Chapter 552,
16-24 Government Code.
16-25 (c) The preservation, microfilming, destruction, or other
17-1 disposition of the records of each district is subject to the
17-2 requirements of Chapter 201, Local Government Code, and rules
17-3 adopted under that chapter.
17-4 Sec. 49.066. SUITS. (a) A district may sue and be sued in
17-5 the courts of this state in the name of the district by and through
17-6 its board. All courts shall take judicial notice of the creation
17-7 of the district and of its boundaries.
17-8 (b) Any court in the state rendering judgment for debt
17-9 against a district may order the board to levy, assess, and collect
17-10 taxes or assessments to pay the judgment.
17-11 (c) The president or the general manager of any district
17-12 shall be the agent of the district on whom process, notice, or
17-13 demand required or permitted by law to be served upon the district
17-14 may be served.
17-15 (d) Except as provided in Subsection (e), no suit may be
17-16 instituted in any court of this state contesting:
17-17 (1) the validity of the creation and boundaries of a
17-18 district created under this code;
17-19 (2) any bonds or other obligations created under this
17-20 code; or
17-21 (3) the validity or the authorization of a contract
17-22 with the United States by the district.
17-23 (e) The matters listed in Subsection (d) may be judicially
17-24 inquired into at any time and determined in any suit brought by the
17-25 State of Texas through the attorney general. The action shall be
18-1 brought on good cause shown, except where otherwise provided by
18-2 other provisions of this code or by the Texas Constitution. It is
18-3 specifically provided, however, that no such proceeding shall
18-4 affect the validity of or security for any bonds or other
18-5 obligations theretofore issued by a district if such bonds or other
18-6 obligations have been approved by the attorney general as provided
18-7 by Section 49.184.
18-8 (f) A district or water supply corporation shall not be
18-9 required to give bond for appeal, injunction, or costs in any suit
18-10 to which it is a party and shall not be required to deposit more
18-11 than the amount of any award in any eminent domain proceeding.
18-12 Sec. 49.067. CONTRACTS. A district shall contract, and be
18-13 contracted with, in the name of the district.
18-14 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. The
18-15 provisions of this chapter pertaining to bids and the Local
18-16 Government Code notwithstanding, a district may purchase property
18-17 from any governmental entity by negotiated contract without the
18-18 necessity of securing appraisals or advertising for bids.
18-19 Sec. 49.069. EMPLOYEE BENEFITS. (a) The board may provide
18-20 for and administer retirement, disability, and death compensation
18-21 funds for the employees of the district.
18-22 (b) The board may establish a public retirement system in
18-23 accordance with the provisions of Chapter 810, Government Code.
18-24 The board may also provide for a deferred compensation plan
18-25 described by Section 457 of the Internal Revenue Code of 1986 (26
19-1 U.S.C. Section 457).
19-2 (c) The board may include hospitalization and medical
19-3 benefits to its employees as part of the compensation paid to the
19-4 officers and employees and may adopt any plan, rule, or regulation
19-5 in connection with it and amend or change the plan, rule, or
19-6 regulation as it may determine.
19-7 Sec. 49.070. WORKERS' COMPENSATION. The board may become a
19-8 subscriber under Title 5, Labor Code (Texas Workers' Compensation
19-9 Act), with any insurance company authorized to write the policies
19-10 in the State of Texas.
19-11 Sec. 49.071. DISTRICT NAME CHANGE. (a) On petition by a
19-12 district showing reasonable grounds for a name change, the
19-13 commission by order may change the name of the district to the name
19-14 requested by the district. The new name must be generally
19-15 descriptive of the location of the district followed by the type of
19-16 district as provided by the title of the chapter of the Water Code
19-17 governing the district. If a district is located wholly within one
19-18 county that contains more than one district of that type, the
19-19 district may be differentiated, if necessary, by adding to the new
19-20 name the proper consecutive number. The new name may not be the
19-21 same as the name of any other district in the county.
19-22 (b) A name change takes effect on the date of issuance of
19-23 the commission order making the name change.
19-24 (c) Not later than the 30th day after the date of issuance
19-25 of the commission order making the name change, the district shall
20-1 publish notice of the name change in a newspaper or newspapers of
20-2 general circulation in the county or counties in which the district
20-3 is located. Within that same period, the district shall also give
20-4 notice of the name change by mail to utility customers or
20-5 permittees, if any, and, to the extent practicable, to the holders
20-6 of bonds, obligations, and other indebtedness of the district.
20-7 Failure of the district to comply with this subsection does not
20-8 affect the validity of the name change.
20-9 (d) A change in the name of a district does not affect
20-10 bonds, obligations, or other indebtedness of the district existing
20-11 before the name change occurred.
20-12 (Sections 49.072 to 49.100 reserved for expansion
20-13 SUBCHAPTER D. ELECTION PROVISIONS
20-14 Sec. 49.101. GENERAL. All elections shall be generally
20-15 conducted in accordance with the Election Code except as otherwise
20-16 provided for by this code. Write-in candidacies for any district
20-17 office shall be governed by Subchapter C, Chapter 146, Election
20-18 Code.
20-19 Sec. 49.102. CONFIRMATION AND DIRECTOR ELECTION.
20-20 (a) Before issuing any bonds or other obligations, an election
20-21 shall be held within the boundaries of the proposed district to
20-22 determine if the proposed district shall be established and, if the
20-23 directors of the district are required by law to be elected, to
20-24 elect permanent directors.
20-25 (b) Notice of a confirmation or director election shall
21-1 state the day and place or places for holding the election, the
21-2 propositions to be voted on, and the number of directors to be
21-3 voted on.
21-4 (c) The ballots for a confirmation election shall be printed
21-5 to provide for voting "For District" and "Against District."
21-6 Ballots for a directors election shall provide the names of the
21-7 persons appointed by the governing body who qualified and are
21-8 serving as temporary directors at the time the election is called.
21-9 The ballots shall also have blank places after the names of the
21-10 temporary directors in which a voter may write the names of other
21-11 persons for directors.
21-12 (d) Immediately after the confirmation and director
21-13 election, the presiding judge shall take returns of the results to
21-14 the temporary board. The temporary board shall canvass the returns
21-15 and declare the results at the earliest practicable time.
21-16 (e) If a majority of the votes cast in the election favor
21-17 the creation of the district, then the temporary board shall
21-18 declare that the district is created and enter the result in its
21-19 minutes. If a majority of the votes cast in the election are
21-20 against the creation of the district, the temporary board shall
21-21 declare that the district was defeated and enter the result in its
21-22 minutes. A copy of the order shall be filed with the commission.
21-23 (f) The order canvassing the results of the confirmation
21-24 election shall contain a description of the district's boundaries
21-25 and shall be filed with the executive director and in the deed
22-1 records of the county or counties in which the district is located.
22-2 (g) The temporary board shall also declare the persons
22-3 receiving the highest number of votes for directors to have been
22-4 elected as permanent directors.
22-5 (h) Unless otherwise agreed, the directors shall decide the
22-6 initial terms of office by lot, with a simple majority of directors
22-7 serving until the second succeeding directors election and the
22-8 remaining directors serving until the next directors election.
22-9 (i) The provisions of this section shall not be applicable
22-10 to any district exercising the powers of Chapter 375, Local
22-11 Government Code, or any district created by a special Act of the
22-12 legislature that does not require a confirmation election.
22-13 Sec. 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
22-14 provided by Section 49.102, the members of the board of a district
22-15 shall serve for four-year terms.
22-16 (b) An election shall be held on the uniform election date,
22-17 established by the Election Code, in either January or May of each
22-18 even-numbered year to elect the appropriate number of directors.
22-19 (c) The permanent directors may assign a position number to
22-20 each director's office, in which case directors shall thereafter be
22-21 elected by position and not at large.
22-22 (d) A district may provide for the election of all
22-23 directors, or a majority of directors, from single-member
22-24 districts, which shall be geographically described within the
22-25 boundaries of the district in a manner that is equitable for the
23-1 electors within such districts and within the district generally.
23-2 (e) Section 49.002 notwithstanding, in all areas of conflict
23-3 the provisions of Subsection (b) shall take precedence over all
23-4 prior statutory enactments.
23-5 (f) This section does not apply to any special law district
23-6 or authority that is not required by the law creating the district
23-7 or authority to elect its directors by the public.
23-8 Sec. 49.104. ALTERNATIVE ELECTION PROCEDURES.
23-9 (a) Notwithstanding the provisions and requirements of the
23-10 Election Code and general laws, any two or more districts situated
23-11 in the same county and in which substantially all of the land is
23-12 being or has been developed as part of a single community
23-13 development plan and which are served by common water supply and
23-14 waste disposal systems may by mutual agreement designate a common
23-15 election office and common early and regular polling places within
23-16 one or more of the districts, but outside the boundaries of one or
23-17 more of the districts, for the conduct of director election
23-18 proceedings and early and regular balloting in director elections.
23-19 This alternative election procedure may only be used if the common
23-20 election office and polling places so designated:
23-21 (1) are within buildings open to the public;
23-22 (2) are within the boundaries of at least one of the
23-23 districts;
23-24 (3) meet the requirements of the Election Code and
23-25 general laws as polling places; and
24-1 (4) are located not more than five miles from any
24-2 portion of the boundaries of any of the participating districts.
24-3 (b) Such districts may also agree on and designate a common
24-4 election officer and common early and regular voting officials for
24-5 some or all of the director elections to be simultaneously
24-6 conducted at a common location, any of whom may be nonelective
24-7 employees of one or more of the districts, so long as the early and
24-8 regular voting officials are qualified voters within at least one
24-9 of the districts.
24-10 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
24-11 in this code, all vacancies on the board and in other offices shall
24-12 be filled for the unexpired term by appointment of the board.
24-13 (b) If the number of directors is reduced to fewer than a
24-14 majority, the vacancies shall be filled by appointment by the
24-15 commission or the county commissioners court if the district was
24-16 created by the county commissioners court. An appointed director
24-17 shall serve for the unexpired term of the director he or she is
24-18 replacing.
24-19 (c) In the event of a failure to elect one or more members
24-20 of the board of a district resulting from the absence of, or
24-21 failure to vote by, the qualified voters in the district, the
24-22 current members of the board holding the positions not filled at
24-23 such election shall be deemed to have been reelected and shall
24-24 serve an additional term of office.
24-25 Sec. 49.106. BOND ELECTIONS. (a) Before an election is
25-1 held to authorize the issuance of bonds, other than refunding
25-2 bonds, there shall be filed in the office of the district and open
25-3 to inspection by the public an engineer's report covering the land,
25-4 improvements, facilities, plants, equipment, and appliances to be
25-5 purchased or constructed and their estimated cost, together with
25-6 maps, plats, profiles, and data fully showing and explaining the
25-7 report.
25-8 (b) Notice of a bond election shall contain the proposition
25-9 or propositions to be voted on, which includes the estimate of the
25-10 probable cost of design, construction, purchase, and acquisition of
25-11 improvements and additions thereto, and incidental expenses
25-12 connected with such improvements and the issuance of bonds.
25-13 (c) A bond election may be held on the same day as any other
25-14 district election. The bond election may be called by a separate
25-15 election order or as a part of any other election order. The board
25-16 may submit multiple purposes in a single proposition at an
25-17 election.
25-18 Sec. 49.107. OPERATION AND MAINTENANCE TAX. (a) A district
25-19 may levy and collect a tax for operation and maintenance purposes,
25-20 including funds for planning, constructing, acquiring, maintaining,
25-21 repairing, and operating all necessary land, plants, works,
25-22 facilities, improvements, appliances, and equipment of the district
25-23 and for paying costs of proper services, engineering and legal
25-24 fees, and organization and administrative expenses.
25-25 (b) An operation and maintenance tax may not be levied by a
26-1 district until it is approved by a majority of the electors voting
26-2 at an election held for that purpose. After such a tax has been
26-3 authorized by the district's voters, the board shall be authorized
26-4 to levy the tax and have it assessed and collected as other
26-5 district taxes.
26-6 (c) An operation and maintenance tax election may be held at
26-7 the same time and in conjunction with any other district election.
26-8 The election may be called by a separate election order or as part
26-9 of any other election order.
26-10 (d) The proposition in an operation and maintenance tax
26-11 election may be for a specific maximum rate or for an unlimited
26-12 rate.
26-13 (e) If a district has any surplus operation and maintenance
26-14 tax funds that are not needed for the purposes for which they were
26-15 collected, the funds may be used for any lawful purpose.
26-16 (f) Before a district reimburses a developer of property in
26-17 the district, as that term is defined in Section 49.052(d), or its
26-18 assigns, from operation and maintenance tax funds, for planning,
26-19 constructing, or acquiring facilities, the district shall obtain
26-20 approval by the executive director.
26-21 Sec. 49.108. CONTRACT ELECTIONS. (a) A contract may
26-22 provide that the district will make payment under the contract from
26-23 proceeds from the sale of notes or bonds, from taxes, or from any
26-24 other income of the district or any combination of these.
26-25 (b) A district may make payments under a contract from taxes
27-1 other than operation and maintenance taxes after the provisions of
27-2 the contract have been approved by a majority of the electors
27-3 voting at an election held for that purpose.
27-4 (c) A contract election may be held at the same time and in
27-5 conjunction with any other district election. The election may be
27-6 called by a separate election order or as part of any other
27-7 election order.
27-8 (d) A contract approved by the voters will constitute an
27-9 obligation against the taxing power of the district to the extent
27-10 provided in the contract.
27-11 (Sections 49.109 to 49.150 reserved for expansion
27-12 SUBCHAPTER E. FISCAL PROVISIONS
27-13 Sec. 49.151. EXPENDITURES. (a) Except as hereinafter
27-14 provided, a district's money may be disbursed only by check, draft,
27-15 order, or other instrument that shall be signed by at least a
27-16 majority of the directors.
27-17 (b) The board may by resolution allow the general manager,
27-18 treasurer, bookkeeper, or other employee of the district to sign
27-19 disbursements.
27-20 (c) The board may by resolution allow disbursements to be
27-21 transferred by federal reserve wire system to accounts in the name
27-22 of the district.
27-23 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
27-24 borrow money for any corporate purpose or combination of corporate
27-25 purposes only in compliance with the methods and procedures
28-1 specifically provided by this chapter or by general law.
28-2 Sec. 49.153. REVENUE NOTES. (a) The board, without the
28-3 necessity of an election, may borrow money on negotiable notes of
28-4 the district to be paid solely from the revenues derived from the
28-5 ownership of all or any designated part of the district's works,
28-6 plants, improvements, facilities, or equipment after deduction of
28-7 the reasonable cost of maintaining and operating the facilities.
28-8 (b) The notes may be first or subordinate lien notes within
28-9 the discretion of the board, but no obligation may ever be a charge
28-10 on the property of the district or on taxes levied or collected by
28-11 the district but shall be solely a charge on the revenues pledged
28-12 for the payment of the obligation. No part of the obligation may
28-13 ever be paid from taxes levied or collected by the district.
28-14 (c) A district may not execute a note for a term longer than
28-15 three years unless the commission issues an order approving the
28-16 note.
28-17 (d) This section does not apply to special water
28-18 authorities.
28-19 Sec. 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
28-20 NOTES. (a) The board may declare an emergency in the matter of
28-21 funds not being available to pay principal of and interest on any
28-22 bonds of the district payable in whole or in part from taxes or to
28-23 meet any other needs of the district and may issue negotiable tax
28-24 anticipation notes or negotiable bond anticipation notes to borrow
28-25 the money needed by the district without advertising or giving
29-1 notice of the sale. Bond anticipation notes and tax anticipation
29-2 notes shall mature within one year of their date.
29-3 (b) Tax anticipation notes may be issued for any purpose for
29-4 which the district is authorized to levy taxes, and tax
29-5 anticipation notes shall be secured with the proceeds of taxes to
29-6 be levied by the district in the succeeding 12-month period. The
29-7 board may covenant with the purchasers of the notes that the board
29-8 will levy a sufficient tax to pay the principal of and interest on
29-9 the notes and pay the costs of collecting the taxes.
29-10 (c) Bond anticipation notes may be issued for any purpose
29-11 for which bonds of the district may have previously been voted or
29-12 may be issued for the purpose of refunding previously issued bond
29-13 anticipation notes. A district may covenant with the purchasers of
29-14 the bond anticipation notes that the district will use the proceeds
29-15 of sale of any bonds in the process of issuance for the purpose of
29-16 refunding the bond anticipation notes, in which case the board will
29-17 be required to use the proceeds received from sale of the bonds in
29-18 the process of issuance to pay principal, interest, or redemption
29-19 price on the bond anticipation notes.
29-20 (d) Districts required to seek commission approval of bonds
29-21 must have an application for such approval on file with the
29-22 commission prior to the issuance of bond anticipation notes.
29-23 Sec. 49.155. REPAYMENT OF EXPENSES. (a) The district may
29-24 pay all costs and expenses necessarily incurred in the organization
29-25 and operation of a district during creation and construction
30-1 periods including, but not limited to, the following:
30-2 (1) organizational, administrative, and operating
30-3 expenses;
30-4 (2) the cost of investigation and making plans;
30-5 (3) the cost of the engineer's report;
30-6 (4) legal fees; and
30-7 (5) any other incidental expenses.
30-8 (b) For purposes of this section, construction periods shall
30-9 mean any periods during which the district is constructing its
30-10 facilities or there is construction by third parties of above
30-11 ground improvements within the district, but in no event longer
30-12 than five years.
30-13 (c) The district may reimburse any person for money advanced
30-14 for the purposes in Subsection (a) and may be charged interest on
30-15 such funds.
30-16 (d) These payments may be made from money obtained from the
30-17 issuance of notes or the sale of bonds issued by the district or
30-18 out of maintenance taxes or other revenues of the district.
30-19 Sec. 49.156. DEPOSITORY. (a) The board, by order or
30-20 resolution, shall designate one or more banks or savings
30-21 associations within the state to serve as the depository for the
30-22 funds of the district. The board shall not be required to
30-23 advertise or solicit bids in selecting its depositories.
30-24 (b) To the extent that funds in the depository banks or
30-25 savings associations are not insured by the Federal Deposit
31-1 Insurance Corporation, they shall be secured in the manner provided
31-2 by law for the security of funds by Chapter 2257, Government Code
31-3 (Public Funds Collateral Act).
31-4 (c) The board may authorize a designated representative to
31-5 supervise the substitution of securities pledged to secure the
31-6 district's funds.
31-7 Sec. 49.157. INVESTMENTS. (a) All district deposits and
31-8 investments shall be governed by Subchapter A, Chapter 2256,
31-9 Government Code (Public Funds Investment Act).
31-10 (b) The board may provide that an authorized representative
31-11 of the district may invest and reinvest the funds of the district
31-12 and provide for money to be withdrawn from the appropriate accounts
31-13 of the district for the investments on such terms as the board
31-14 considers advisable.
31-15 Sec. 49.158. FISCAL YEAR. Within 30 days after a district
31-16 becomes financially active, the board shall adopt a fiscal year by
31-17 a formal board resolution. The district shall notify the executive
31-18 director of the adopted fiscal year within 30 days after adoption.
31-19 The district may change its fiscal year at any time; provided,
31-20 however, it may not be changed more than once in any 24-month
31-21 period. After any change in the district's fiscal year, the
31-22 district shall notify the executive director of the changed fiscal
31-23 year within 30 days after adoption.
31-24 (Sections 49.159 to 49.180 reserved for expansion
31-25 SUBCHAPTER F. ISSUANCE OF BONDS
32-1 Sec. 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
32-2 DISTRICT BONDS. (a) A district may not issue bonds unless the
32-3 commission determines that the project to be financed by the bonds
32-4 is feasible and issues an order approving the issuance of the
32-5 bonds. This section does not apply to refunding bonds or bonds
32-6 issued to and approved by the Farmers Home Administration, the
32-7 United States Department of Agriculture, or the Texas Water
32-8 Development Board.
32-9 (b) A district may submit to the commission a written
32-10 application for investigation of feasibility. An engineer's report
32-11 describing the project, including the data, profiles, maps, plans,
32-12 and specifications prepared in connection with the report, must be
32-13 submitted with the application.
32-14 (c) The executive director shall examine the application and
32-15 the report and shall inspect the project area. The district shall,
32-16 on request, supply the executive director with additional data and
32-17 information necessary for an investigation of the application, the
32-18 engineer's report, and the project.
32-19 (d) The executive director shall prepare a written report on
32-20 the project and include suggestions, if any, for changes or
32-21 improvements in the project. The executive director shall retain a
32-22 copy of the report and send a copy of the report to both the
32-23 commission and the district.
32-24 (e) The commission shall consider the application, the
32-25 engineer's report, the executive director's report, and any other
33-1 evidence allowed by commission rule to be considered in determining
33-2 the feasibility of the project.
33-3 (f) The commission shall determine whether the project to be
33-4 financed by the bonds is feasible and issue an order either
33-5 approving or disapproving, as appropriate, the issuance of the
33-6 bonds. The commission shall retain a copy of the order and send a
33-7 copy of the order to the district.
33-8 (g) Notwithstanding any provision of this code to the
33-9 contrary, the commission may approve the issuance of bonds of a
33-10 district without the submission of plans and specifications of the
33-11 improvements to be financed with the bonds. The commission may
33-12 condition the approval on any terms or conditions considered
33-13 appropriate by the commission.
33-14 (h) This section does not apply to a district if:
33-15 (1) the district's boundaries include one entire
33-16 county;
33-17 (2) the district was created by a special Act of the
33-18 legislature and:
33-19 (A) the district is located entirely within one
33-20 county;
33-21 (B) entirely within one or more home-rule
33-22 municipalities;
33-23 (C) the total taxable value of the real property
33-24 and improvements to the real property zoned by one or more
33-25 home-rule municipalities for residential purposes and located
34-1 within the district does not exceed 25 percent of the total taxable
34-2 value of all taxable property in the district, as shown by the most
34-3 recent certified appraisal tax roll prepared by the appraisal
34-4 district for the county; and
34-5 (D) the district was not required by law to
34-6 obtain commission approval of its bonds before the effective date
34-7 of this section;
34-8 (3) the district is a special water authority; or
34-9 (4) the district is governed by a board of directors
34-10 appointed in whole or in part by the governor, a state agency, or
34-11 the governing body or chief elected official of a municipality or
34-12 county and does not provide water and sewer services to residential
34-13 retail customers as its principal function.
34-14 Sec. 49.182. COMMISSION SUPERVISION OF PROJECTS AND
34-15 IMPROVEMENTS. (a) During construction of projects and
34-16 improvements approved by the commission under this subchapter, no
34-17 substantial alterations may be made in the plans and specifications
34-18 without the approval of the commission in accordance with
34-19 commission rules.
34-20 (b) The executive director may inspect the improvements at
34-21 any time during construction to determine if the project is being
34-22 constructed in accordance with the plans and specifications
34-23 approved by the commission.
34-24 (c) If the executive director finds that the project is not
34-25 being constructed in accordance with the approved plans and
35-1 specifications, the executive director shall give written notice
35-2 immediately by certified mail to the district's manager and to each
35-3 board member.
35-4 (d) If within 10 days after the notice is mailed the board
35-5 does not take steps to ensure that the project is being constructed
35-6 in accordance with the approved plans and specifications, the
35-7 executive director shall give written notice of this fact to the
35-8 attorney general.
35-9 (e) After receiving this notice, the attorney general may
35-10 bring an action for injunctive relief or quo warranto proceedings
35-11 against the directors. Venue for either suit is exclusively in a
35-12 district court in Travis County.
35-13 Sec. 49.183. BOND SALES. (a) Except for refunding bonds,
35-14 or bonds sold to a state or federal agency, bonds issued by a
35-15 district shall be sold after advertising for and receiving
35-16 competitive sealed bids and shall be awarded to the bidder whose
35-17 bid produces the lowest net effective interest rate to the
35-18 district.
35-19 (b) Except for refunding bonds, or bonds sold to a state or
35-20 federal agency, after any bonds are finally approved and before
35-21 they are sold by a district, the board shall publish an appropriate
35-22 notice of the sale:
35-23 (1) at least one time not less than 10 days before the
35-24 date of sale in a newspaper of general circulation in the county or
35-25 counties in which the district is located; and
36-1 (2) at least one time in one or more recognized
36-2 financial publications of general circulation in the state as
36-3 approved by the state attorney general.
36-4 (c) If the district is issuing bonds and refunding bonds as
36-5 one issue and if the initial principal amount of refunding bonds is
36-6 50 percent or more of the total initial principal amount of bonds
36-7 being issued, for the purposes of this section, the issue shall be
36-8 considered to be refunding bonds and competitive bids shall not be
36-9 required.
36-10 (d) A district's bonds are negotiable instruments within the
36-11 meaning and purposes of the Business & Commerce Code. A district's
36-12 bonds may be issued and bear interest in accordance with Chapter
36-13 503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's
36-14 Texas Civil Statutes); Chapter 3, Acts of the 61st Legislature,
36-15 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
36-16 Statutes); the Bond Procedures Act of 1981 (Article 717k-6,
36-17 Vernon's Texas Civil Statutes); and Chapter 656, Acts of the 68th
36-18 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
36-19 Civil Statutes). Except for this subsection, this section does not
36-20 apply to special water authorities or districts described in
36-21 Section 49.181(h)(4).
36-22 (e) Subsections (a) and (b) do not apply to district bonds
36-23 issued pursuant to Chapter 656, Acts of the 68th Legislature,
36-24 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
36-25 Statutes).
37-1 Sec. 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
37-2 REGISTRATION OF BONDS. (a) Before bonds issued by a district are
37-3 delivered to the purchasers, a certified copy of all proceedings
37-4 relating to organization of the district for first bond issues and
37-5 issuance of the bonds and other relevant information shall be sent
37-6 to the attorney general.
37-7 (b) The attorney general shall carefully examine the bonds,
37-8 with regard to the record and the constitution and laws of this
37-9 state governing the issuance of bonds, and the attorney general
37-10 shall officially approve and certify the bonds if he or she finds
37-11 that they conform to the record and the constitution and laws of
37-12 this state and are valid and binding obligations of the district.
37-13 (c) After the attorney general approves and certifies the
37-14 bonds, the comptroller shall register them in a book kept for that
37-15 purpose and shall record the certificate of the attorney general.
37-16 (d) After the approval and registration of the bonds by the
37-17 comptroller, they shall be incontestable in any court or other
37-18 forum, for any reason, and shall be valid and binding obligations
37-19 in accordance with their terms for all purposes.
37-20 (e) A contract or lease may be submitted to the attorney
37-21 general along with the bond records, and, if submitted, the
37-22 approval by the attorney general of the bonds shall constitute an
37-23 approval of the contract or lease and the contract or lease shall
37-24 be incontestable.
37-25 Sec. 49.185. EXEMPTIONS. This subchapter shall not apply to
38-1 districts engaged in the distribution and sale of electric energy
38-2 to the public.
38-3 (Sections 49.186 to 49.190 reserved for expansion
38-4 SUBCHAPTER G. AUDIT OF DISTRICTS
38-5 Sec. 49.191. DUTY TO AUDIT. (a) The board shall have the
38-6 district's fiscal accounts and records audited annually at the
38-7 expense of the district.
38-8 (b) In all areas of conflict, the provisions of this
38-9 subchapter shall take precedence over all prior statutory
38-10 enactments.
38-11 (c) The person who performs the audit shall be a certified
38-12 public accountant or public accountant holding a permit from the
38-13 Texas State Board of Public Accountancy.
38-14 (d) The audit required by this section shall be completed
38-15 within 120 days after the close of the district's fiscal year.
38-16 Sec. 49.192. FORM OF AUDIT. The executive director shall
38-17 adopt accounting and auditing manuals and, except as otherwise
38-18 provided by the manuals, the district audit shall be performed
38-19 according to the generally accepted auditing standards adopted by
38-20 the American Institute of Certified Public Accountants. Financial
38-21 statements shall be prepared in accordance with generally accepted
38-22 accounting principles as adopted by the American Institute of
38-23 Certified Public Accountants.
38-24 Sec. 49.193. FINANCIAL REPORTS. The district's depository,
38-25 the district's treasurer, and the district's bookkeeper, if any,
39-1 who receives or has control over any district funds shall keep a
39-2 full and itemized account of district funds in its, his, or her
39-3 possession. Such itemized accounts and records shall be available
39-4 for audit.
39-5 Sec. 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
39-6 REPORTS. (a) After the board has approved the audit, it shall
39-7 submit a copy of the report to the executive director for filing
39-8 within 135 days after the close of the district's fiscal year.
39-9 (b) If the board refuses to approve the annual audit report,
39-10 the board shall submit a copy of the report to the executive
39-11 director for filing within 135 days after the close of the
39-12 district's fiscal year, accompanied by a statement from the board
39-13 explaining the reasons for its failure to approve the report.
39-14 (c) Copies of the audit, the annual financial dormancy
39-15 affidavit, or annual financial report described in Sections 49.197
39-16 and 49.198 shall be filed annually in the office of the district.
39-17 (d) Each district shall file with the executive director an
39-18 annual filing affidavit in a format prescribed by the executive
39-19 director, executed by a duly authorized representative of the
39-20 board, stating that all copies of the annual audit report, annual
39-21 financial dormancy affidavit, or annual financial report have been
39-22 filed under this section.
39-23 (e) The annual filing affidavit shall be submitted with the
39-24 applicable annual document when it is submitted to the executive
39-25 director for filing as prescribed by this subchapter.
40-1 (f) The executive director shall file with the attorney
40-2 general the names of any districts that do not comply with the
40-3 provisions of this subchapter.
40-4 Sec. 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
40-5 executive director may review the audit report of each district.
40-6 (b) The commission may request that the state auditor assist
40-7 in the establishment of standards and procedures for review of
40-8 district audits by the executive director.
40-9 (c) If the executive director has any objections or
40-10 determines any violations of generally accepted auditing standards
40-11 or accounting principles, statutes, or board rules, or if the
40-12 executive director has any recommendations, he or she shall notify
40-13 the board and the district's auditor.
40-14 (d) Before the audit report may be accepted by the executive
40-15 director as being in compliance with the provisions of this
40-16 subchapter, the board and the auditor shall remedy objections and
40-17 correct violations of which they have been notified by the
40-18 executive director.
40-19 (e) If the audit report indicates that any penal law has
40-20 been violated, the executive director shall notify the appropriate
40-21 county or district attorney and the attorney general.
40-22 Sec. 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT RECORDS.
40-23 (a) The executive director shall have access to all vouchers,
40-24 receipts, district fiscal and financial records, and other district
40-25 records the executive director considers necessary.
41-1 (b) All district fiscal records shall be prepared on a
41-2 timely basis and maintained in an orderly manner in accordance with
41-3 generally accepted accounting principles. The fiscal records shall
41-4 be available for public inspection during regular business hours.
41-5 A district's fiscal records may be removed from the district's
41-6 office for the purposes of recording its fiscal affairs and
41-7 preparing an audit, during which time the fiscal records are under
41-8 the control of the district's auditor.
41-9 Sec. 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
41-10 financially dormant district is a district that had:
41-11 (1) $500 or less of receipts from operations, tax
41-12 assessments, loans, contributions, or any other sources during the
41-13 calendar year;
41-14 (2) $500 or less of disbursements of funds during the
41-15 calendar year;
41-16 (3) no bonds or other long-term (more than one year)
41-17 liabilities outstanding during the calendar year; and
41-18 (4) no cash or investments that exceeded $5,000 at any
41-19 time during the calendar year.
41-20 (b) A financially dormant district may elect to submit to
41-21 the executive director a financial dormancy affidavit instead of
41-22 complying with the audit requirements of Section 49.191.
41-23 (c) The annual financial dormancy affidavit shall be
41-24 prepared in a format prescribed by the executive director and shall
41-25 be submitted for filing by a duly authorized representative of the
42-1 district.
42-2 (d) The affidavit must be filed annually on or before
42-3 January 31 with the executive director until such time as the
42-4 district becomes financially active and the board adopts a fiscal
42-5 year; thereafter, the district shall file annual audit reports as
42-6 prescribed by this subchapter.
42-7 (e) A district that becomes financially dormant after having
42-8 been financially active shall be required to file annual financial
42-9 dormancy affidavits on or before January 31, until the district is
42-10 either dissolved or again becomes financially active.
42-11 (f) Districts governed by this section are subject to
42-12 periodic audits by the executive director.
42-13 Sec. 49.198. AUDIT REPORT EXEMPTION. (a) A district that
42-14 is not collecting taxes may elect to file annual financial reports
42-15 with the executive director in lieu of the district's compliance
42-16 with Section 49.191 provided:
42-17 (1) the district had no bonds or other long-term (more
42-18 than one year) liabilities outstanding during the fiscal period;
42-19 (2) the district did not have gross receipts from
42-20 operations, loans, or contributions in excess of $100,000 during
42-21 the fiscal period; and
42-22 (3) the district's cash and temporary investments were
42-23 not in excess of $100,000 at any time during the fiscal period.
42-24 (b) The annual financial report must be accompanied by an
42-25 affidavit attesting to the accuracy and authenticity of the
43-1 financial report signed by a duly authorized representative of the
43-2 district.
43-3 (c) The annual financial report and affidavit in a format
43-4 prescribed by the executive director must be on file with the
43-5 executive director within 45 days after the close of the district's
43-6 fiscal year.
43-7 (d) Districts governed by this section are subject to
43-8 periodic audits by the executive director.
43-9 Sec. 49.199. POLICIES AND AUDITS OF DISTRICTS. (a) Subject
43-10 to the law governing the district, the board shall adopt the
43-11 following in writing:
43-12 (1) a code of ethics for district directors, officers,
43-13 employees, and persons who are engaged in handling investments for
43-14 the district;
43-15 (2) a policy relating to travel expenditures;
43-16 (3) a policy relating to district investments that
43-17 ensures that:
43-18 (A) purchases and sales of investments are
43-19 initiated by authorized individuals, conform to investment
43-20 objectives and regulations, and are properly documented and
43-21 approved; and
43-22 (B) periodic review is made of district
43-23 investments to evaluate investment performance and security;
43-24 (4) policies and procedures for selection, monitoring,
43-25 or review and evaluation of professional services;
44-1 (5) a uniform method of accounting and reporting for
44-2 industrial development bonds and pollution control bonds that
44-3 complies with requirements of the commission; and
44-4 (6) policies that ensure a better use of management
44-5 information including:
44-6 (A) budgets for use in planning and controlling
44-7 cost;
44-8 (B) an audit committee of the board; and
44-9 (C) uniform reporting requirements that use
44-10 "Audits of State and Local Governmental Units" as a guide on audit
44-11 working papers and that use "Governmental Accounting and Financial
44-12 Reporting Standards."
44-13 (b) The state auditor may audit the financial transactions
44-14 of any district if the state auditor determines that the audit is
44-15 necessary.
44-16 Sec. 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
44-17 DISTRICTS. A district that provides wholesale potable water and
44-18 wastewater services shall adopt a program that provides such
44-19 wholesale customers an opportunity to review and comment on the
44-20 district's annual budget that applies to their services before that
44-21 budget is adopted by the board.
44-22 (Sections 49.201 to 49.210 reserved for expansion
44-23 SUBCHAPTER H. POWERS AND DUTIES
44-24 Sec. 49.211. POWERS. (a) A district shall have the
44-25 functions, powers, authority, rights, and duties that will permit
45-1 accomplishment of the purposes for which it was created or the
45-2 purposes authorized by the constitution, this code, or any other
45-3 law.
45-4 (b) A district is authorized to purchase, construct,
45-5 acquire, own, operate, maintain, repair, improve, or extend inside
45-6 and outside its boundaries any and all land, works, improvements,
45-7 facilities, plants, equipment, and appliances necessary to
45-8 accomplish the purposes of its creation or the purposes authorized
45-9 by this code or any other law.
45-10 Sec. 49.212. FEES AND CHARGES. (a) A district may adopt
45-11 and enforce all necessary charges, fees, or rentals, in addition to
45-12 taxes, for providing or making available any district facility or
45-13 service.
45-14 (b) A district may require a deposit for any services or
45-15 facilities furnished and the district may or may not provide that
45-16 the deposit will bear interest.
45-17 (c) Subject to observance of the procedure appropriate to
45-18 the circumstances, a district may discontinue any or all facilities
45-19 or services to prevent an abuse or to enforce payment of an unpaid
45-20 charge, fee, or rental due the district, including taxes that have
45-21 been delinquent for not less than six months.
45-22 (d) Notwithstanding any provision of law to the contrary, a
45-23 district that charges a fee that is an impact fee as described in
45-24 Section 395.001(4), Local Government Code, must comply with Chapter
45-25 395, Local Government Code. A charge or fee by a district for
46-1 construction, installation, or inspection of a tap or connection to
46-2 district water, sanitary sewer, or drainage facilities, including
46-3 all necessary service lines and meters, that (i) does not exceed
46-4 three times the actual and reasonable costs to the district for
46-5 such work or (ii) if made to a nontaxable entity, does not exceed
46-6 the actual costs to the district for such work and for all
46-7 facilities that are necessary to provide district services to such
46-8 entity and that are financed or are to be financed in whole or in
46-9 part by tax-supported bonds of the district, shall not be deemed or
46-10 considered to be an impact fee under Chapter 395, Local Government
46-11 Code.
46-12 Sec. 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A district
46-13 may contract with a person or any public or private entity for the
46-14 joint construction, financing, ownership, and operation of any
46-15 works, improvements, facilities, plants, equipment, and appliances
46-16 necessary to accomplish any purpose or function permitted by a
46-17 district, or a district may purchase an interest in any project
46-18 used for any purpose or function permitted by a district.
46-19 (b) A district may enter into contracts with any person or
46-20 any public or private entity in the performance of any purpose or
46-21 function permitted by a district.
46-22 (c) A district may enter into contracts, which may be of
46-23 unlimited duration, with persons or any public or private entities
46-24 on the terms and conditions the board may consider desirable, fair,
46-25 and advantageous for:
47-1 (1) the purchase or sale of water;
47-2 (2) the collection, transportation, treatment, and
47-3 disposal of its domestic, industrial, and communal wastes or the
47-4 collection, transportation, treatment, and disposal of domestic,
47-5 industrial, and communal wastes of other persons;
47-6 (3) the gathering, diverting, and control of local
47-7 storm water, or other local harmful excesses of water;
47-8 (4) the continuing and orderly development of the land
47-9 and property within the district through the purchase,
47-10 construction, or installation of works, improvements, facilities,
47-11 plants, equipment, and appliances that the district may otherwise
47-12 be empowered and authorized to do or perform so that, to the
47-13 greatest extent reasonably possible, considering sound engineering
47-14 and economic practices, all of the land and property may be placed
47-15 in a position to ultimately receive the services of the works,
47-16 improvements, plants, facilities, equipment, and appliances;
47-17 (5) the maintenance and operation of any works,
47-18 improvements, facilities, plants, equipment, and appliances of the
47-19 district or of another person or public or private entity;
47-20 (6) the collection, treatment, and disposal of
47-21 municipal solid wastes; and
47-22 (7) the exercise of any other rights, powers, and
47-23 duties granted to a district.
47-24 Sec. 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
47-25 provisions of Chapter 171, Local Government Code, shall apply to
48-1 the award of district contracts.
48-2 Sec. 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
48-3 district may purchase, construct, acquire, own, operate, repair,
48-4 improve, or extend all works, improvements, facilities, plants,
48-5 equipment, and appliances necessary to provide any services or
48-6 facilities authorized to be provided by the district to areas
48-7 contiguous to or in the vicinity of the district provided the
48-8 district does not duplicate a service or facility of another public
48-9 entity. A district providing potable water and sewer utility
48-10 services to household users shall not provide services or
48-11 facilities to serve areas outside the district that are also within
48-12 the corporate limits of a city without securing a resolution or
48-13 ordinance of the city granting consent for the district to serve
48-14 the area within the city.
48-15 (b) To secure money for this purpose, a district is
48-16 authorized to issue and sell negotiable bonds and notes payable
48-17 from the levy and collection of ad valorem taxes on all taxable
48-18 property within the district or from all or any designated part of
48-19 the revenues received from the operation of the district's works,
48-20 improvements, facilities, plants, equipment, and appliances or from
48-21 a combination of taxes and revenues.
48-22 (c) Any bonds and notes may be issued upon the terms and
48-23 conditions set forth in this code.
48-24 (d) A district shall not be required to hold a certificate
48-25 of convenience and necessity as a precondition for providing retail
49-1 water or sewer service to any customer or service area,
49-2 notwithstanding the fact that such customer or service area may be
49-3 located either within or outside the boundaries of the district or
49-4 has previously received water or sewer service from an entity
49-5 required by law to hold a certificate of convenience and necessity
49-6 as a precondition for such service. This subsection does not
49-7 authorize a district to provide services within an area for which a
49-8 retail public utility holds a certificate of convenience and
49-9 necessity or within the boundaries of another district without that
49-10 district's consent, unless the district has a valid certificate of
49-11 convenience and necessity to provide services to that area.
49-12 (e) A district is authorized to establish, maintain, revise,
49-13 charge, and collect the rates, fees, rentals, tolls, or other
49-14 charges for the use, services, and facilities that provide service
49-15 to areas outside the district that are considered necessary and may
49-16 be higher than those charged for comparable service to users within
49-17 the district.
49-18 (f) The rates, fees, rentals, tolls, or other charges shall
49-19 be at least sufficient to meet the expense of operating and
49-20 maintaining the services and facilities for a water and sanitary
49-21 sewer system serving areas outside the district and to pay the
49-22 principal of and interest and redemption price on bonds issued to
49-23 purchase, construct, acquire, own, operate, repair, improve, or
49-24 extend the services or facilities.
49-25 Sec. 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A district
50-1 may contract for or employ its own peace officers with power to
50-2 make arrests when necessary to prevent or abate the commission of:
50-3 (1) any offense against the rules of the district when
50-4 the offense or threatened offense occurs on any land, water, or
50-5 easement owned or controlled by the district;
50-6 (2) any offense involving injury or detriment to any
50-7 property owned or controlled by the district; and
50-8 (3) any offense against the laws of the state.
50-9 (b) A district may appoint reserve peace officers who may be
50-10 called to serve as peace officers by the district during the actual
50-11 discharge of their official duties.
50-12 (c) A reserve peace officer serves at the discretion of the
50-13 district and may be called into service if the district considers
50-14 it necessary to have additional officers to preserve the peace in
50-15 or enforce the law of the district.
50-16 (d) A reserve peace officer on active duty and actively
50-17 engaged in assigned duties has the same rights, privileges, and
50-18 duties as any other peace officer of the district.
50-19 (e) Any peace officer, before beginning to perform any
50-20 duties and at the time of appointment, must take an oath and
50-21 execute a bond conditioned on faithful performance of such
50-22 officer's duties in the amount of $1,000 payable to the district.
50-23 The oath and the bond shall be filed in the district office.
50-24 Sec. 49.217. OPERATION OF CERTAIN MOTOR VEHICLES ON OR NEAR
50-25 PUBLIC FACILITIES. (a) In this section, "motor vehicle" means a
51-1 self-propelled device in, upon, or by which a person or property is
51-2 or may be transported or drawn on a road or highway.
51-3 (b) Except as provided in Subsections (c) and (d), a person
51-4 may not operate a motor vehicle on a levee, in a drainage ditch, or
51-5 on land adjacent to a levee, canal, ditch, exposed conduit,
51-6 pipeline, pumping plant, storm water facility, or other facility
51-7 for the transmission, storage, treatment, or distribution of water,
51-8 sewage, or storm water owned or controlled by a district.
51-9 (c) A district may authorize the use of motor vehicles on
51-10 land that it owns or controls by posting signs on the property.
51-11 (d) This section does not prohibit a person from:
51-12 (1) driving on a public road or highway; or
51-13 (2) operating a motor vehicle used for repair or
51-14 maintenance of public water, sewer, or storm water facilities.
51-15 (e) A person who operates a motor vehicle in violation of
51-16 Subsection (b) commits an offense. An offense under this section
51-17 is a Class C misdemeanor, except that if a person has been
51-18 convicted of an offense under this section, a subsequent offense is
51-19 a Class B misdemeanor.
51-20 Sec. 49.218. Acquisition of Property. (a) A district or a
51-21 water supply corporation may acquire land, materials, waste
51-22 grounds, easements, rights-of-way, equipment, contract or permit
51-23 rights or interests, and other property, real or personal,
51-24 considered necessary for the purpose of accomplishing any one or
51-25 more of the district's or water supply corporation's purposes
52-1 provided in this code or in any other law.
52-2 (b) A district or water supply corporation shall have the
52-3 right to acquire property by gift, grant, or purchase, and the
52-4 right to acquire property shall include property considered
52-5 necessary for the construction, improvement, extension,
52-6 enlargement, operation, or maintenance of the plants, works,
52-7 improvements, facilities, equipment, or appliances of a district or
52-8 a water supply corporation.
52-9 (c) A district or water supply corporation may acquire
52-10 either the fee simple title to or an easement on all land, both
52-11 public and private, either inside or outside its boundaries and may
52-12 acquire the title to or an easement on property other than land
52-13 held in fee.
52-14 (d) A district or water supply corporation may also lease
52-15 property from others for its use on such terms and conditions as
52-16 the board of the district or the board of directors of the water
52-17 supply corporation may determine to be advantageous.
52-18 Sec. 49.219. ACQUISITION OF EXISTING FACILITIES. Any
52-19 district may acquire by agreement all or any part of existing
52-20 water, sanitary sewer, or drainage systems of any water supply
52-21 corporation, including works, improvements, facilities, plants,
52-22 equipment, appliances, contract rights, and other assets and rights
52-23 that are completed, partially completed, or under construction, and
52-24 in connection therewith a district may assume all or any part of
52-25 the contracts, indebtedness, or obligations of the corporation
53-1 related to said systems, including any contracts, indebtedness, or
53-2 obligations related to or payable from the revenues of said
53-3 systems, and may perform all or any part of the obligations of said
53-4 corporation in the same manner and to the same extent that any
53-5 other purchaser or assignee could be bound on any such contracts,
53-6 indebtedness, or obligations. Before assuming any indebtedness or
53-7 obligations of such corporation related to any such system, a
53-8 district other than a special water authority shall obtain the
53-9 approval of the commission of such assumption.
53-10 Sec. 49.220. RIGHT TO USE EXISTING RIGHTS-OF-WAY. All
53-11 districts or water supply corporations are given rights-of-way
53-12 within, along, under, and across all public, state, county, city,
53-13 town, or village roads, highways, and rights-of-way and other
53-14 public rights-of-way without the requirement for surety bond or
53-15 security; provided, however, that the entity having jurisdiction
53-16 over such roads, highways, and rights-of-way may require
53-17 indemnification. A district or water supply corporation shall not
53-18 proceed with any action to change, alter, or damage a portion of
53-19 the state highway system without having first obtained the written
53-20 consent of the Texas Department of Transportation, and the
53-21 placement of any facility of a district or water supply corporation
53-22 within state highway right-of-way shall be subject to department
53-23 regulation.
53-24 Sec. 49.221. Right to Enter Land. (a) The directors,
53-25 engineers, attorneys, agents, operators, and employees of a
54-1 district or water supply corporation may go on any land to inspect,
54-2 make surveys, or perform tests to determine the condition, value,
54-3 and usability of the property, with reference to the proposed
54-4 location of works, improvements, plants, facilities, equipment, or
54-5 appliances. The cost of restoration shall be borne by the district
54-6 or the water supply corporation.
54-7 (b) District employees and agents are entitled to enter any
54-8 public or private property within the boundaries of the district or
54-9 adjacent to any reservoir or other property owned by the district
54-10 at any reasonable time for the purpose of inspecting and
54-11 investigating conditions relating to the quality of water in the
54-12 state or the compliance with any rule, regulation, permit, or other
54-13 order of the district. District employees or agents acting under
54-14 this authority who enter private property shall observe the
54-15 establishment's rules and regulations concerning safety, internal
54-16 security, and fire protection and shall notify any occupant or
54-17 management of their presence and shall exhibit proper credentials.
54-18 Sec. 49.222. Eminent Domain. (a) A district or water
54-19 supply corporation may acquire by condemnation any land, easements,
54-20 or other property inside or outside the district boundaries, or the
54-21 boundaries of the certificated service area for a water supply
54-22 corporation, necessary for water, sanitary sewer, storm drainage,
54-23 or flood drainage or control purposes or for any other of its
54-24 projects or purposes, and may elect to condemn either the fee
54-25 simple title or a lesser property interest.
55-1 (b) The right of eminent domain shall be exercised in the
55-2 manner provided in Chapter 21, Property Code, except that a
55-3 district or a water supply corporation shall not be required to
55-4 give bond for appeal or bond for costs in any condemnation suit or
55-5 other suit to which it is a party and shall not be required to
55-6 deposit more than the amount of any award in any suit.
55-7 (c) The power of eminent domain may not be used for the
55-8 condemnation of land for the purpose of acquiring rights to
55-9 underground water or of water or water rights.
55-10 Sec. 49.223. Costs of Relocation of Property. (a) In the
55-11 event that the district or the water supply corporation, in the
55-12 exercise of the power of eminent domain or power of relocation or
55-13 any other power, makes necessary the relocation, raising, lowering,
55-14 rerouting, or change in grade of or alteration in construction of
55-15 any road, bridge, highway, railroad, electric transmission line,
55-16 telegraph, or telephone properties, facilities, or pipelines, all
55-17 necessary relocations, raising, lowering, rerouting, or change in
55-18 grade or alteration of construction shall be done at the sole
55-19 expense of the district or the water supply corporation unless
55-20 otherwise agreed to in writing. Such relocation shall be
55-21 accomplished in a timely manner so that the project of the district
55-22 or the water supply corporation is not delayed.
55-23 (b) "Sole expense" means the actual cost of the relocation,
55-24 raising, lowering, rerouting, or change in grade or alteration of
55-25 construction and providing comparable replacement without enhancing
56-1 the facilities after deducting from it the net salvage value
56-2 derived from the old facility.
56-3 Sec. 49.224. POWER TO CONDEMN CEMETERIES. (a) The use of
56-4 land for the construction of district dams and creation of lakes
56-5 and reservoirs for the purpose of conservation and development of
56-6 the natural resources of this state is hereby declared to be
56-7 superior to all other uses, and for these purposes only a district
56-8 has the power of eminent domain to acquire land, improvements, and
56-9 other property owned and held for cemeteries or burial places
56-10 necessary for the construction of a dam or that lies inside the
56-11 area to be covered by the lake or reservoir or within 300 feet of
56-12 the high water line of the lake or reservoir.
56-13 (b) Except as otherwise provided by this subchapter, the
56-14 procedure in condemnation proceedings is governed by Chapter 21,
56-15 Property Code.
56-16 (c) Notice shall be served on the title owner of the land on
56-17 which the cemetery is situated as provided in Chapter 21, Property
56-18 Code. General notice to persons having relatives interred in the
56-19 cemetery shall be given by publication for two consecutive weeks in
56-20 a newspaper circulated in the county in which the cemetery is
56-21 situated.
56-22 (d) The measure of damages in these eminent domain
56-23 proceedings shall be assessed as in other condemnation cases. An
56-24 additional amount of damages shall be assessed to cover the cost of
56-25 removing and reinterring the bodies interred in the cemetery or
57-1 burial place and the cost of removing and resetting the monuments
57-2 or markers erected at the graves.
57-3 (e) The additional assessment shall be deposited in the
57-4 registry of the county court and disbursed only for the purpose of
57-5 removing and reinterring the bodies in other cemeteries in Texas
57-6 agreed on between the district and the relatives of the deceased
57-7 persons.
57-8 (f) If in any case the district and the relatives of a
57-9 deceased person cannot agree within 30 days on a cemetery for
57-10 reinterment, or no relatives appear within that time, then the
57-11 county judge shall designate the cemetery for reinterment.
57-12 (g) Instead of depositing the additional assessment in the
57-13 registry of the court, the district may execute a bond sufficient
57-14 to cover costs of removing and reinterring the bodies. The bond
57-15 shall be payable to and approved by the county judge and
57-16 conditioned that the bodies will be removed and reinterred as
57-17 provided by this section.
57-18 Sec. 49.225. Leases. A district may lease any of its
57-19 property, real or personal, to any person. The lease may contain
57-20 the terms and provisions that the board determines to be
57-21 advantageous to the district.
57-22 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
57-23 Property. (a) Any land, interest in land, or personal property
57-24 owned by the district which is found by the board to be surplus and
57-25 is not needed by the district may be sold under order of the board
58-1 either by public or private sale, or the land, interest in land, or
58-2 personal property may be exchanged for other land, interest in
58-3 land, or personal property needed by the district. Except as
58-4 provided in Subsection (b), land, interest in land, or personal
58-5 property must be exchanged for like fair market value, which value
58-6 may be determined by the district.
58-7 (b) Any property dedicated to or acquired by the district
58-8 without expending district funds may be abandoned or released to
58-9 the original grantor, the grantor's heirs, assigns, executors, or
58-10 successors upon terms and conditions deemed necessary or
58-11 advantageous to the district and without receiving compensation for
58-12 such abandonment or release. District property may also be
58-13 abandoned, released, exchanged, or transferred to another district,
58-14 municipality, county, countywide agency, or authority upon terms
58-15 and conditions deemed necessary or advantageous to the district.
58-16 Narrow strips of property resulting from boundary or surveying
58-17 conflicts or similar causes, or from insubstantial encroachments by
58-18 abutting property owners, may be abandoned, released, exchanged, or
58-19 transferred to such abutting owners upon terms and conditions
58-20 deemed necessary or advantageous to the district. Chapter 272,
58-21 Local Government Code, shall not apply to this subsection.
58-22 (c) Before either a public or a private sale of real
58-23 property not required by the district, the district shall give
58-24 notice of the intent to sell by publishing notice once a week for
58-25 two consecutive weeks in one or more newspapers with general
59-1 circulation in the district.
59-2 (d) If the district has outstanding bonds secured by a
59-3 pledge of tax revenues, the proceeds of the sale of property not
59-4 required by the district shall be applied to retire outstanding
59-5 bonds of the district when required by the district's applicable
59-6 bond resolutions.
59-7 (e) If the district does not have any outstanding bonds, the
59-8 proceeds derived from the sale of the personal property or land not
59-9 required by the district may be used for any lawful purpose.
59-10 Sec. 49.227. Authority to Act Jointly. A district or water
59-11 supply corporation may act jointly with any other person or entity,
59-12 private or public, whether within the State of Texas or the United
59-13 States, in the performance of any of the powers and duties
59-14 permitted by this code or any other laws.
59-15 Sec. 49.228. Damage to Property. A person who wilfully
59-16 destroys, defaces, damages, or interferes with district or water
59-17 supply corporation property is guilty of a Class B misdemeanor.
59-18 Sec. 49.229. Grants and Gifts. A district may accept
59-19 grants, gratuities, advances, and loans in any form from any source
59-20 approved by the board, including any governmental entity, any
59-21 private or public corporation, and any other person and may make
59-22 and enter into contracts, agreements, and covenants the board
59-23 considers appropriate in connection with acceptance of grants,
59-24 gratuities, advances, and loans.
59-25 Sec. 49.230. Area-Wide Wastewater Treatment. The powers and
60-1 duties conferred on the district are granted subject to the policy
60-2 of the state to encourage the development and use of integrated
60-3 area-wide wastewater collection, treatment, and disposal systems to
60-4 serve the wastewater disposal needs of the citizens of the state
60-5 whenever economically feasible and competitive to do so, it being
60-6 an objective of the policy to avoid the economic burden to the
60-7 people and the impact on the quality of the water in the state that
60-8 result from the construction and operation of numerous small
60-9 wastewater collection, treatment, and disposal facilities to serve
60-10 an area when an integrated area-wide wastewater collection,
60-11 treatment, and disposal system for the area can be reasonably
60-12 provided.
60-13 Sec. 49.231. STANDBY FEES. (a) In this section:
60-14 (1) "Standby fee" means a charge, other than a tax,
60-15 imposed on undeveloped property for the availability of potable
60-16 water, sanitary sewer, or drainage facilities and services.
60-17 (2) "Undeveloped property" means a tract, lot, or
60-18 reserve in the district to which no potable water, sanitary sewer,
60-19 or drainage connections have been made for which:
60-20 (A) water, sanitary sewer, or drainage
60-21 facilities and services are available;
60-22 (B) water supply, wastewater treatment plant
60-23 capacity, or drainage capacity sufficient to serve the property is
60-24 available; or
60-25 (C) major water supply lines, wastewater
61-1 collection lines, or drainage facilities with capacity sufficient
61-2 to serve the property are available.
61-3 (b) A district that proposes to provide or actually provides
61-4 retail potable water or sewer utility services, or drainage
61-5 services as the principal function of the district, may, with the
61-6 approval of the commission, adopt and impose on the owners of
61-7 undeveloped property in the district a standby fee in addition to
61-8 taxes levied by the district. A district may not impose a standby
61-9 fee for debt service purposes on undeveloped property unless the
61-10 facilities and services available to the property have been
61-11 financed by the district; however, a district may impose a standby
61-12 fee for operating and maintaining facilities that it has not
61-13 financed. The district may impose standby fees in different
61-14 amounts to fairly reflect the level and type of services and
61-15 facilities available to serve different property. The intent of
61-16 the standby fee is to distribute a fair portion of the cost burden
61-17 for operating and maintaining the facilities and for financing
61-18 capital costs of the facilities to owners of property who have not
61-19 constructed improvements but have potable water, sewer, or drainage
61-20 capacity available. Any revenues collected from the standby fees
61-21 shall be used to pay operation and maintenance expenses, to pay
61-22 debt service on the bonds, or both.
61-23 (c) If a district described in Subsection (b) desires to
61-24 adopt and impose a standby fee, the district shall submit to the
61-25 commission an application for authority to adopt and impose the
62-1 standby fee. The application must describe the tracts of
62-2 undeveloped property in the district and state the amount of the
62-3 proposed fee.
62-4 (d) The executive director shall examine an application
62-5 submitted under Subsection (c) and shall investigate the financial
62-6 condition of the district, including the district's assets,
62-7 liabilities, sources of revenue, level of utility service rates,
62-8 and level of debt service and maintenance tax rates. On the
62-9 request of the executive director, the district shall submit any
62-10 information the executive director considers relevant to the
62-11 examination and investigation. The executive director shall
62-12 prepare a written report on the application and the district's
62-13 financial condition, retain a copy of the report, and send a copy
62-14 of the report to the commission and the district.
62-15 (e) The commission shall hold a hearing on an application
62-16 submitted under Subsection (c). Notice of the hearing shall be
62-17 published in a newspaper of general circulation in the county or
62-18 counties in which the district is located once a week for two
62-19 consecutive weeks. The first publication must occur not later than
62-20 the 30th day before the date of the hearing. The district shall
62-21 send, not later than the 30th day before the date of the hearing,
62-22 notice of the hearing by certified mail, return receipt requested,
62-23 to each owner of undeveloped property in the district. On the date
62-24 the application is filed, the district's tax assessor and collector
62-25 shall certify to the district the names of the persons owning
63-1 undeveloped land in the district as reflected by the most recent
63-2 certified tax roll of the district. Notice of the hearing must be
63-3 sent by certified mail, return receipt requested, to each mortgagee
63-4 of record that has submitted a written request to be informed of
63-5 any hearings. To be effective, the written request must be
63-6 received by the district not later than the 60th day before the
63-7 date of the hearing. The written request for notice must include
63-8 the name and address of the mortgagee, the name of the property
63-9 owner in the district, and a brief property description.
63-10 (f) The commission shall consider the application, the
63-11 report of the executive director, and any other evidence allowed by
63-12 commission rule. The commission may approve the application only
63-13 if the commission finds that the fee is necessary to maintain the
63-14 financial integrity and stability of the district and fairly
63-15 allocates the costs of district facilities and services among
63-16 property owners of the district.
63-17 (g) After a hearing on an application under Subsection (e),
63-18 the commission shall issue an order approving or disapproving the
63-19 application. The commission shall retain a copy of the order and
63-20 send a copy of the order to the district.
63-21 (h) The commission may approve the adoption and imposition
63-22 of the standby fee for a period of not more than three years. The
63-23 imposition of a standby fee may be renewed for additional periods
63-24 of not more than three years each in the same manner provided in
63-25 this section for initial approval of the standby fee.
64-1 (i) If approved by the commission, the board by resolution
64-2 or order may impose an annual standby fee on undeveloped land in
64-3 the district.
64-4 (j) The board may:
64-5 (1) charge interest, at the rate of one percent a
64-6 month, on a standby fee not paid in a timely manner in accordance
64-7 with the resolution or order imposing the standby fee; and
64-8 (2) refuse to provide potable water, sanitary sewer,
64-9 or drainage service to the property for which the fee was assessed
64-10 until all delinquent standby fees on the property and interest on
64-11 those fees are fully paid.
64-12 (k) A standby fee imposed under this section is a personal
64-13 obligation of the person owning the undeveloped property on January
64-14 1 of the year for which the fee is assessed. A person is not
64-15 relieved of the obligation on transfer of title to the property.
64-16 On January 1 of each year, a lien attaches to undeveloped property
64-17 to secure payment of any standby fee imposed under this section and
64-18 the interest, if any, on the fee. The lien has the same priority
64-19 as a lien for taxes of the district.
64-20 (l) If a standby fee imposed under this section is not paid
64-21 in a timely manner, a district may file suit to foreclose the lien
64-22 securing payment of the fee and interest or to enforce the personal
64-23 obligation for the fee and interest, or both. The district may
64-24 recover, in addition to the fee and interest, reasonable costs,
64-25 including attorney's fees, incurred by the district in enforcing
65-1 the lien or obligation not to exceed 20 percent of the delinquent
65-2 fee and interest. A suit authorized by this subsection must be
65-3 filed not later than the fourth anniversary of the date the fee
65-4 became due. A fee delinquent for more than four years and interest
65-5 on the fee are considered paid unless a suit is filed before the
65-6 expiration of the four-year period.
65-7 (m) Chapter 395, Local Government Code, does not apply to a
65-8 standby fee imposed under this section.
65-9 (n) For purposes of title insurance policies issued under
65-10 the authority of Chapter 9, Insurance Code, standby fees are
65-11 considered taxes.
65-12 Sec. 49.232. LABORATORY SERVICES. A district may contract
65-13 with any person, within or without the boundaries of the district,
65-14 to provide or receive laboratory services related to environmental,
65-15 health, or drinking water testing.
65-16 (Sections 49.233 to 49.270 reserved for expansion
65-17 SUBCHAPTER I. CONSTRUCTION CONTRACTS
65-18 Sec. 49.271. CONTRACTS FOR CONSTRUCTION WORK. (a) Any
65-19 contract made by the board for construction work shall conform to
65-20 the provisions of this chapter.
65-21 (b) The contract shall contain, incorporate by reference, or
65-22 have attached to it the specifications, plans, and details for work
65-23 included in the contract. All work shall be done in accordance
65-24 with these plans and specifications and any authorized change
65-25 orders under the supervision of the board or its designee.
66-1 (c) The district may adopt minimum criteria for the
66-2 qualifications of bidders on its construction contracts and for
66-3 sureties issuing payment and performance bonds. For contracts over
66-4 $25,000, the district shall require a person who bids to submit a
66-5 certified or cashier's check on a responsible bank in the state
66-6 equal to at least two percent of the total amount of the bid, or a
66-7 bid bond of at least two percent of the total amount of the bid
66-8 issued by a surety legally authorized to do business in this state,
66-9 as a good faith deposit to ensure execution of the contract. If
66-10 the successful bidder fails or refuses to enter into a proper
66-11 contract with the district, or fails or refuses to furnish the bond
66-12 required by law, the bidder forfeits the deposit.
66-13 (d) The district may also require attendance by a principal
66-14 of each prospective bidder at mandatory pre-bid conferences and may
66-15 make any reasonable additional requirements regarding the taking of
66-16 bids the district may deem appropriate in order to obtain
66-17 competitive bids from responsible contractors and to minimize
66-18 contract disputes.
66-19 Sec. 49.272. REPORTS FURNISHED TO PROSPECTIVE BIDDERS. The
66-20 board shall furnish to any person who desires to bid on
66-21 construction work, and who makes a request in writing, a copy of
66-22 the engineer's report or plans and specifications showing the
66-23 details of the work to be done. The board may charge for each copy
66-24 of the engineer's report or plans and specifications an amount
66-25 sufficient to cover the cost of making the copy.
67-1 Sec. 49.273. CONSTRUCTION CONTRACT AWARD. (a) The board
67-2 shall contract for construction in accordance with this section.
67-3 The bidding documents, plans, specifications, and other data needed
67-4 to bid on the project must be available at the time of the first
67-5 advertisement and the advertisement shall state the location at
67-6 which these documents may be reviewed.
67-7 (b) A construction contract may cover all the work to be
67-8 provided by the district or the various elements of the work may be
67-9 segregated for the purpose of receiving bids and awarding
67-10 contracts. A contract may provide that the work will be
67-11 constructed in stages over a period of years.
67-12 (c) A construction contract may provide for the payment of a
67-13 total sum that is the completed cost of the work or may be based on
67-14 bids to cover cost of units of the various elements entering into
67-15 the work as estimated and approximately specified by the district's
67-16 engineers, or a contract may be let and awarded in any other form
67-17 or composite of forms and to any responsible person or persons
67-18 that, in the board's judgment, will be most advantageous to the
67-19 district and result in the best and most economical completion of
67-20 the district's proposed plants, improvements, facilities, works,
67-21 equipment, and appliances.
67-22 (d) For construction contracts for $25,000 or more, the
67-23 board shall advertise the letting of the contract, including the
67-24 general conditions, time, and place of opening of sealed bids. The
67-25 notice shall be published in one or more newspapers circulated in
68-1 each county in which part of the district is located. If one
68-2 newspaper meets both of these requirements, publication in such
68-3 newspaper is sufficient. If there are more than four counties in
68-4 the district, notice may be published in any newspaper with general
68-5 circulation in the district. The notice shall be published once a
68-6 week for three consecutive weeks before the date that the bids are
68-7 opened, and the first publication shall be not later than the 21st
68-8 day before the date of the opening of the sealed bids.
68-9 (e) For construction contracts for $15,000 or more but less
68-10 than $25,000, the board shall solicit written competitive bids on
68-11 uniform written specifications from at least three bidders.
68-12 (f) For construction contracts of less than $15,000, the
68-13 board is not required to advertise or seek competitive bids.
68-14 (g) The board may not subdivide work to avoid the
68-15 advertising requirements specified in this section.
68-16 (h) The board may not accept bids that include substituted
68-17 items unless the substituted items were included in the original
68-18 bid proposal and all bidders had the opportunity to bid on the
68-19 substituted items or unless notice is given to all bidders at a
68-20 mandatory pre-bid conference.
68-21 (i) Change orders to contracts may be issued only as a
68-22 result of unanticipated conditions encountered during construction
68-23 or changes in regulatory criteria or to facilitate project
68-24 coordination with other political entities.
68-25 (j) The provisions of this subchapter do not apply to
69-1 contracts for personal or professional services or for a utility
69-2 service operator or to contracts made by a district engaged in the
69-3 distribution and sale of electric energy to the public.
69-4 (k) The provisions of this subchapter do not apply to high
69-5 technology procurements. The provisions of Sections 252.021(a) and
69-6 252.042, Local Government Code, shall apply to high technology
69-7 procurements.
69-8 Sec. 49.274. EMERGENCY APPROVAL OF DISTRICT PROJECTS. If a
69-9 district experiences an emergency condition that may create a
69-10 serious health hazard or unreasonable economic loss to the district
69-11 that requires immediate corrective action, the district may
69-12 negotiate limited duration contracts to make the necessary repairs.
69-13 The district shall submit to the executive director details
69-14 describing the specific serious health hazard or unreasonable
69-15 economic loss as soon as practicable following the issuance of the
69-16 contracts. Whenever possible, the district should obtain prior
69-17 approval of the executive director before authorizing the contract,
69-18 but failure to obtain prior approval shall not void the contract.
69-19 This section does not apply to special water authorities.
69-20 Sec. 49.275. CONTRACTOR'S BOND. Any person, firm,
69-21 partnership, or corporation to whom a contract is let must give
69-22 good and sufficient performance and payment bonds in accordance
69-23 with Chapter 2253, Government Code, and any minimum criteria for
69-24 sureties issuing such bonds adopted by a district in accordance
69-25 with Section 49.271.
70-1 Sec. 49.276. PAYMENT FOR CONSTRUCTION WORK. (a) The
70-2 district shall pay the contract price of construction contracts
70-3 only as provided in this section.
70-4 (b) The district will make progress payments under
70-5 construction contracts monthly as the work proceeds, or at more
70-6 frequent intervals as determined by the board or its designee, on
70-7 estimates approved by the board or its designee.
70-8 (c) If requested by the district or district engineer, the
70-9 contractor shall furnish a breakdown of the total contract price
70-10 showing the amount included for each principal category of the
70-11 work, in such detail as requested, to provide a basis for
70-12 determining progress payments. In the preparation of estimates,
70-13 the district engineer may authorize material delivered on the site
70-14 and preparatory work done to be considered if the consideration is
70-15 specifically authorized by the contract and if the contractor
70-16 furnishes satisfactory evidence that he has acquired title to the
70-17 material and that it will be utilized on the work covered by the
70-18 contract.
70-19 (d) In making progress payments, 10 percent of the estimated
70-20 amount shall be retained until final completion and acceptance of
70-21 the contract work. However, if the board at any time after 50
70-22 percent of the work has been completed finds that satisfactory
70-23 progress is being made, it may authorize any of the remaining
70-24 progress payments to be made in full. Also, if the work is
70-25 substantially complete, the board, if it finds the amount retained
71-1 to be in excess of the amount adequate for the protection of the
71-2 district, at its discretion may release to the contractor all or a
71-3 portion of the excess amount. The district is not obligated to pay
71-4 interest on amounts retained except as provided herein. The
71-5 district shall not be obligated to pay any interest on the 10
71-6 percent retainage held on the first 50 percent of work completed.
71-7 If the district holds any retainage on the remaining 50 percent of
71-8 the work completed, the district shall pay interest on such
71-9 retainage from the date the retainage is withheld to the date of
71-10 payment to the contractor. The interest rate to be paid on such
71-11 retainage shall be the rate of interest paid by the district's
71-12 depository bank on interest bearing accounts of similar amounts
71-13 during the period of time interest accrues as provided herein.
71-14 (e) On completion and acceptance of each separate project,
71-15 public work, or other division of the contract, on which the price
71-16 is stated separately in the contract, payment may be made without
71-17 retention of a percentage.
71-18 Sec. 49.277. INSPECTION OF AND REPORTS ON CONSTRUCTION WORK.
71-19 (a) The board shall have control of construction work being done
71-20 for the district under contract to determine whether or not the
71-21 contract is being fulfilled and shall have the construction work
71-22 inspected by the district engineer or other designated person.
71-23 (b) During the progress of the construction work, the
71-24 district engineer or other designated person shall submit to the
71-25 board detailed written reports showing whether or not the
72-1 contractor is complying with the contract, and when the work is
72-2 completed the district engineer shall submit to the board a final
72-3 detailed report including as-built plans of the facilities showing
72-4 whether or not the contractor has fully complied with the contract.
72-5 (Sections 49.278 to 49.300 reserved for expansion
72-6 SUBCHAPTER J. ANNEXATION OR EXCLUSION OF LAND
72-7 Sec. 49.301. ADDING LAND BY PETITION OF LANDOWNER. (a) In
72-8 addition to any other provision provided by law, the owner or
72-9 owners of land whether or not contiguous to the district or
72-10 otherwise may file with the board a petition requesting that there
72-11 be included in the district the land described in the petition by
72-12 metes and bounds or by lot and block number if there is a recorded
72-13 plat of the area to be included in the district. The petition may
72-14 request the district to condition the annexation on certain
72-15 conditions, including the voter authorization of bonds to serve the
72-16 area to be annexed.
72-17 (b) If the district has bonds, notes, or other obligations
72-18 outstanding or bonds payable in whole or in part from taxes that
72-19 have been voted but are unissued, the board may require the
72-20 petitioner or petitioners to assume their share of the outstanding
72-21 bonds, notes, or other obligations and the voted but unissued tax
72-22 bonds of the district and authorize the board to levy a tax on
72-23 their property in each year while any of the bonds, notes, or other
72-24 obligations payable in whole or in part from taxation are
72-25 outstanding to pay their share of the indebtedness.
73-1 (c) The petition of the landowner to add land to the
73-2 district shall be signed and executed in the manner provided by law
73-3 for the conveyance of real estate.
73-4 (d) The board shall hear and consider the petition and may
73-5 add to the district the land described in the petition if it is
73-6 feasible, practicable, and to the advantage of the district and if
73-7 the district's system and other improvements of the district are
73-8 sufficient or will be sufficient to supply the added land without
73-9 injuring land already in the district.
73-10 (e) If the district has bonds payable in whole or in part
73-11 from taxation that are voted but unissued at the time of an
73-12 annexation and the petitioners assume the bonds and authorize the
73-13 district to levy a tax on their property to pay the bonds, then the
73-14 board may issue the voted but unissued bonds even though the
73-15 boundaries of the district have been altered since the
73-16 authorization of the bonds.
73-17 (f) Granted petitions shall be filed for record and shall be
73-18 recorded in the office of the county clerk of the county or
73-19 counties in which the added land is located.
73-20 Sec. 49.302. ADDING LAND BY PETITION OF LESS THAN ALL THE
73-21 LANDOWNERS. (a) In addition to the method of adding land to a
73-22 district described in Section 49.301, defined areas of land,
73-23 whether or not they are contiguous to the district, may be annexed
73-24 to the district in the manner set forth in this section.
73-25 (b) A petition requesting the annexation of a defined area
74-1 signed by a majority in value of the owners of land in the defined
74-2 area, as shown by the tax rolls of the county or counties in which
74-3 such area is located, or signed by 50 landowners if the number of
74-4 landowners is more than 50, shall describe the land by metes and
74-5 bounds or by lot and block number if there is a recorded plat of
74-6 the area and shall be filed with the secretary of the board.
74-7 (c) It shall be the duty of the board to pass an order
74-8 fixing a time and place at which the petition for annexation shall
74-9 be heard that shall not be less than 30 days from the day of the
74-10 order calling the hearing.
74-11 (d) The secretary of the board shall issue a notice setting
74-12 forth the time and place of the hearing and describing the area
74-13 proposed to be annexed. Notice of the hearing shall be given by
74-14 posting copies of the notice in three public places in the district
74-15 and in one public place in the area proposed to be annexed for at
74-16 least 14 days before the day of the hearing and by publishing a
74-17 copy of the notice in a newspaper of general circulation in the
74-18 county or counties in which the area proposed to be annexed is
74-19 located one time at least 14 days before the day of the hearing.
74-20 (e) If upon the hearing of the petition it is found by the
74-21 board that the proposed annexation of the area to the district is
74-22 feasible, practicable, and to the advantage of the district and if
74-23 the district's system and other improvements of the district are
74-24 sufficient or will be sufficient to supply the added land without
74-25 injuring land already in the district, then the board, by order
75-1 entered in its minutes, may receive the proposed area as an
75-2 addition to and to become a part of the district. The order adding
75-3 the proposed territory to the district need not include all of the
75-4 land described in the petition if at the hearing a modification or
75-5 change is found necessary or desirable by the board.
75-6 (f) A copy of the order annexing land to the district,
75-7 signed by a majority of the members of the board and attested by
75-8 the secretary of the board, shall be filed and recorded in the deed
75-9 records of the county or counties in which the district is located
75-10 if the land is finally annexed to the district.
75-11 (g) After the order is recorded the area shall be a
75-12 component part of the district.
75-13 (h) The annexed area shall bear its pro rata share of all
75-14 bonds, notes, or other obligations or taxes that may be owed,
75-15 contracted, or authorized by the district to which it has been
75-16 added.
75-17 (i) Before the added area shall be subject to all or any
75-18 part of the bonds, notes, obligations, or taxes created before the
75-19 annexation of the area to the district, the board shall order an
75-20 election to be held in the district, as enlarged by reason of the
75-21 annexation of the area, on the question of the assumption of the
75-22 bonds, notes, obligations, and taxes by the annexed area.
75-23 (j) At the same election, the board may also submit a
75-24 proposition on the question of whether the annexed area should
75-25 assume its part of the bonds of the district payable in whole or in
76-1 part from taxes that have been voted previously but not yet issued
76-2 or sold and the levy of an ad valorem tax on all taxable property
76-3 within the area annexed along with a tax on the rest of the
76-4 district for the payment of the bonds.
76-5 (k) If the election results favorably, the district shall be
76-6 authorized to issue its voted but unissued tax bonds even though
76-7 the boundaries of the district have been changed since the original
76-8 election approving the bonds.
76-9 (l) At the election called for the purpose of determining
76-10 whether the annexed area shall assume the bonds, notes, or other
76-11 obligations or taxes of the district, the board in a separate
76-12 proposition may also submit the question of whether the board
76-13 should be authorized to issue bonds payable in whole or in part
76-14 from taxes to provide service to the area annexed.
76-15 (m) In the event that the district has bonds, notes, or
76-16 obligations or taxes that may be owed, contracted, or authorized at
76-17 the time an area is annexed or if the district has voted but
76-18 unissued bonds payable in whole or in part from taxes at the time
76-19 of an annexation, the board may provide in its order annexing an
76-20 area to the district that the annexation will not be complete or
76-21 final unless the indebtedness, tax or bond, note, or other
76-22 obligation assumption election results favorably to the assumption
76-23 of the district's outstanding bonds, notes, or other obligations
76-24 and voted but unissued bonds.
76-25 (n) If the board elects to submit the question of whether
77-1 the board should be authorized to issue bonds to provide service to
77-2 the area annexed, the board may also provide in its order annexing
77-3 an area to the district that the annexation will not be complete
77-4 unless the election results favorably to the issuance of bonds to
77-5 serve the annexed area.
77-6 (o) Whenever an election is ordered to be held in the
77-7 district for the purpose of the assumption of bonds, notes, or
77-8 other obligations or taxes or the assumption of voted but unissued
77-9 bonds by reason of the annexation of any area, then the election
77-10 shall be held and notice given as provided for bond elections held
77-11 by the district.
77-12 (p) The district has the same right and duty to furnish
77-13 service to the annexed land that it previously had to furnish
77-14 service to other land in the district, and the board shall endeavor
77-15 to serve all land in the district without discrimination.
77-16 Sec. 49.303. EXCLUDING LAND FROM DISTRICT. (a) Before a
77-17 district orders an election for the authorization of bonds payable
77-18 in whole or in part from taxes, the board may, on its own motion,
77-19 call a hearing on the question of the exclusion of land from the
77-20 district under the provisions of this section and Sections 49.304
77-21 through 49.307, if the exclusions are practicable, just, or
77-22 desirable.
77-23 (b) The board must call a hearing on the exclusion of land
77-24 or other property from the district on the written petition of any
77-25 landowner or property owner in the district filed with the
78-1 secretary of the board before the first election on the question of
78-2 whether bonds should be issued payable in whole or in part from
78-3 taxes is ordered.
78-4 (c) The board may hold a hearing on the exclusion of land or
78-5 other property from the district if the district has not issued
78-6 bonds payable in whole or in part from taxes, and if a landowner or
78-7 property owner submits a signed petition to the secretary of the
78-8 board evidencing the consent of the owners of a majority of the
78-9 acreage proposed to be excluded and a majority of the taxable
78-10 property in the district, as reflected by the most recent certified
78-11 tax roll of the district.
78-12 (d) A district that has previously held an election at which
78-13 approval was given for the issuance of bonds payable in whole or in
78-14 part from taxes may not rely on that election for the issuance of
78-15 the bonds if after the bond election, but before the bonds are
78-16 issued, land is excluded from the district as provided by this
78-17 subchapter. The board must call and hold another bond election and
78-18 receive voter approval as provided by this subchapter before
78-19 issuing those bonds.
78-20 Sec. 49.304. HEARING TO ANNOUNCE PROPOSED EXCLUSIONS AND TO
78-21 RECEIVE PETITIONS. (a) If the board determines that an exclusion
78-22 hearing should be held or if a written petition requesting an
78-23 exclusion hearing is filed with the secretary of the board as
78-24 provided in Section 49.303, the board shall give notice of the time
78-25 and place of a hearing to announce its own conclusions relating to
79-1 land or other property to be excluded and to receive petitions for
79-2 exclusion of land or other property.
79-3 (b) The board shall publish notice of the hearing once a
79-4 week for two consecutive weeks in one or more newspapers with
79-5 general circulation in the district. The first publication shall
79-6 appear at least 14 days before the day of the hearing.
79-7 (c) The notice shall advise all interested property owners
79-8 of their right to present petitions for exclusions of land or other
79-9 property and to offer evidence in support of the petitions and
79-10 their right to contest any proposed exclusion based on either a
79-11 petition or the board's own conclusions and to offer evidence in
79-12 support of the contest.
79-13 Sec. 49.305. PETITION. (a) A petition for exclusion of
79-14 land must accurately describe by metes and bounds or lot and block
79-15 number the land to be excluded. A petition for exclusion of other
79-16 property must describe the property to be excluded.
79-17 (b) A petition for exclusion shall be filed with the
79-18 district at least seven days before the hearing and shall state
79-19 clearly the particular grounds on which the exclusion is sought.
79-20 Only the stated grounds shall be considered.
79-21 Sec. 49.306. GROUNDS FOR EXCLUSION. Exclusions from the
79-22 district may be made on the grounds that:
79-23 (1) to retain certain land or other property within
79-24 the district's taxing power would be arbitrary and unnecessary to
79-25 conserve the public welfare, would impair or destroy the value of
80-1 the property desired to be excluded, and would constitute the
80-2 arbitrary imposition of a confiscatory burden;
80-3 (2) to retain any given land or other property in the
80-4 district and to extend to it, either presently or in the future,
80-5 the benefits, service, or protection of the district's facilities
80-6 would create an undue and uneconomical burden on the remainder of
80-7 the district; or
80-8 (3) the land desired to be excluded cannot be bettered
80-9 as to conditions of living and health, provided with water or sewer
80-10 service, protected from flood, drained, freed from interruption of
80-11 traffic caused by excess of water on the roads, highways, or other
80-12 means of transportation serving the land, or otherwise benefited by
80-13 the district's proposed improvements.
80-14 Sec. 49.307. HEARING AND ORDER EXCLUDING LAND. (a) The
80-15 board may adjourn the hearing from one day to another and until all
80-16 persons desiring to be heard are heard. The board immediately
80-17 shall specifically describe all property it proposes to exclude on
80-18 its own motion and shall hear first any protests and evidence
80-19 against exclusions proposed on the board's own motion.
80-20 (b) After considering all engineering data and other
80-21 evidence presented to it, the board shall determine whether the
80-22 facts disclose the affirmative of the propositions stated in
80-23 Subdivision (1) or (2) or, if appropriate, in Subdivision (3) of
80-24 Section 49.306. If the affirmative exists, the board shall enter
80-25 an order excluding all land or other property falling within the
81-1 conditions defined by the respective subdivisions and shall
81-2 redefine in the order the boundaries of the district to embrace all
81-3 land not excluded. A copy of the order excluding land and
81-4 redefining the boundaries of the district shall be filed in the
81-5 deed records of the county or counties in which the district is
81-6 situated.
81-7 Sec. 49.308. SUIT TO REVIEW EXCLUSION. (a) Any person
81-8 owning an interest in land affected by the order may file a
81-9 petition within 20 days after the effective date of the order to
81-10 review, set aside, modify, or suspend the order.
81-11 (b) The venue in any action shall be in any district court
81-12 that has jurisdiction in the county in which the district is
81-13 located. If the district includes land in more than one county,
81-14 the venue shall be in the district court having jurisdiction in the
81-15 county in which the major portion of the acreage of the land sought
81-16 to be excluded from the district is located.
81-17 (c) A person may appeal from the judgment or order of a
81-18 district court in a suit brought under the provisions of this
81-19 section to the court of civil appeals and supreme court as in other
81-20 civil cases in which the district court has original jurisdiction.
81-21 The appeal is subject to the statutes and rules of practice and
81-22 procedure in civil cases.
81-23 Sec. 49.309. EXCLUSION OF NONIRRIGATED PROPERTY. For the
81-24 purposes of this section and Sections 49.310 through 49.314, the
81-25 following definitions shall apply:
82-1 (1)(A) "Nonirrigated property" means land that:
82-2 (i) is not irrigable;
82-3 (ii) the owners of a majority of the
82-4 acreage of which no longer intend to irrigate; or
82-5 (iii) has been subdivided into:
82-6 (aa) town lots, or town
82-7 lots and blocks, or small parcels of the same general nature as
82-8 town lots; or
82-9 (bb) town blocks and lots
82-10 designed, intended, or suitable for residential, commercial, or
82-11 other nonagricultural purposes, as distinguished from farm acreage
82-12 whether subdivided into a subdivision or not; and
82-13 (cc) including streets,
82-14 alleys, parkways, parks, and railroad property and rights-of-way
82-15 located in the subdivided land.
82-16 (B) The property described in Paragraph (A)
82-17 shall be considered nonirrigated property regardless of whether the
82-18 land is within or near a municipality and regardless of whether a
82-19 plat or map of the subdivision has been duly filed for record and
82-20 recorded in the office of the county clerk of the county in which
82-21 the land or any part of the land is situated.
82-22 (C) The term does not include land that within
82-23 the year preceding the date of the hearing under Section 49.310 was
82-24 used for farming or agricultural purposes.
82-25 (2) "District" means a water control and improvement,
83-1 water improvement, or irrigation district the principal purpose of
83-2 which is furnishing water for the irrigation of agricultural lands
83-3 or that is principally engaged in furnishing water for the
83-4 irrigation of agricultural lands.
83-5 Sec. 49.310. AUTHORITY TO EXCLUDE LAND. (a) A petition for
83-6 exclusion may be filed by the owner or owners, or their authorized
83-7 agent, of a majority in acreage of nonirrigated property included
83-8 within the boundaries of a district.
83-9 (b) Upon receipt of a petition for exclusion, or upon its
83-10 own motion, a district shall issue an order excluding the property
83-11 if, after notice and hearing, the board finds that:
83-12 (1) the described property is nonirrigated property;
83-13 (2) the applicable requirements of Section 49.311 have
83-14 been satisfied;
83-15 (3) the owner or owners do not object to the exclusion
83-16 of their nonirrigated property; and
83-17 (4) it is in the best interest of the district and of
83-18 the described property to exclude that property from the district.
83-19 (c) The district shall follow the notice and hearing
83-20 provisions and other procedural requirements for excluding
83-21 territory applicable to that district as set out in Sections 49.303
83-22 through 49.307.
83-23 Sec. 49.311. CONSENT FROM HOLDERS OF INDEBTEDNESS. If the
83-24 district has outstanding bonded indebtedness, or indebtedness under
83-25 a loan from a governmental agency, a written consent from an
84-1 authorized representative of the holder or holders of the
84-2 indebtedness consenting to the exclusion shall be obtained and
84-3 filed with the district before the hearing.
84-4 Sec. 49.312. RESULTS OF EXCLUSION. (a) Upon issuance of an
84-5 order excluding property, that property is no longer a part of the
84-6 district and is not entitled to water service from the district.
84-7 (b) Any taxes, assessments, or other charges owed to the
84-8 district at the time of exclusion remain the obligation of the
84-9 owner of the excluded property and continue to be secured by
84-10 statutory liens on the property, if any.
84-11 (c) Once excluded, the landowner has no further liability to
84-12 the district for future taxes, assessments, or other charges of the
84-13 district.
84-14 (d) A copy of the order excluding the property from the
84-15 district certified and acknowledged by the secretary of the board
84-16 shall be recorded by the district in the real property records of
84-17 the county in which the excluded property is located as evidence of
84-18 the exclusion.
84-19 Sec. 49.313. DISTRICT FACILITIES ON EXCLUDED PROPERTY. If
84-20 any canals, ditches, pipelines, pumps, or other facilities of the
84-21 district are located on lands excluded by the resolution of the
84-22 board, the exclusion does not affect or interfere with any rights
84-23 that the district has to maintain and continue operation of the
84-24 facilities as located for the purpose of servicing lands remaining
84-25 in the district.
85-1 Sec. 49.314. WATER ALLOCATIONS. (a) After the district
85-2 adopts an order excluding nonirrigated property, a city or other
85-3 water supply corporation that serves the excluded land with a
85-4 potable water supply may petition the district to apply to the
85-5 commission to convert the proportionate irrigation water allocation
85-6 of the land excluded as nonirrigated property, as determined by the
85-7 district, from irrigation use to municipal use allocation.
85-8 (b) The district shall make such application to the
85-9 commission within 30 days of the filing of a petition by the city
85-10 or water supply corporation that serves the land with a potable
85-11 water supply, provided the city or other water supply corporation
85-12 pays the district the amount the district estimates will be its
85-13 reasonable expenses and attorney's fees incurred in the commission
85-14 conversion proceedings and enters into an agreement with the
85-15 district setting forth the basis on which the water allocation
85-16 shall be delivered, or made available, to the city or water supply
85-17 corporation covering such terms as the entities may agree to, and
85-18 in the event the parties cannot agree, such dispute shall not be
85-19 subject to the jurisdiction of the commission, or its successors,
85-20 under this code but subject to resolution through alternative
85-21 dispute resolution. In such commission proceeding, the city or
85-22 water supply corporation shall provide evidence to the commission
85-23 of the current or projected need within a five year period for the
85-24 municipal-use water allocation after such conversion as a condition
85-25 of such conversion of use of the district's water rights from
86-1 irrigation use to municipal use.
86-2 (Sections 49.315 to 49.320 reserved for expansion
86-3 SUBCHAPTER K. DISSOLUTION
86-4 Sec. 49.321. DISSOLUTION AUTHORITY. After notice and
86-5 hearing, the commission may dissolve any district that is inactive
86-6 for a period of five consecutive years and has no outstanding
86-7 bonded indebtedness.
86-8 Sec. 49.322. NOTICE OF HEARING. (a) The commission shall
86-9 give notice of the dissolution hearing that briefly describes the
86-10 reasons for the proceeding.
86-11 (b) The notice shall be published once each week for two
86-12 consecutive weeks before the day of hearing in a newspaper having
86-13 general circulation in the county or counties in which the district
86-14 is located. The first publication shall be 30 days before the day
86-15 of the hearing.
86-16 (c) The commission shall give notice of the hearing by first
86-17 class mail addressed to the directors of the district according to
86-18 the last record on file with the executive director.
86-19 Sec. 49.323. INVESTIGATION. The executive director shall
86-20 investigate the facts and circumstances of the district to be
86-21 dissolved and the result of the investigation shall be included in
86-22 a written report.
86-23 Sec. 49.324. ORDER OF DISSOLUTION. The commission may enter
86-24 an order dissolving the district at the conclusion of the hearing
86-25 if it finds that the district has performed none of the functions
87-1 for which it was created for a period of five consecutive years
87-2 before the day of the proceeding and that the district has no
87-3 outstanding bonded indebtedness.
87-4 Sec. 49.325. CERTIFIED COPY OF ORDER. The commission shall
87-5 file a certified copy of the order of dissolution of the district
87-6 in the deed records of the county or counties in which the district
87-7 is located. If the particular district was created by a special
87-8 Act of the legislature, the commission shall file a certified copy
87-9 of the order of dissolution with the secretary of state.
87-10 Sec. 49.326. APPEALS. (a) Appeals from a commission order
87-11 dissolving a district shall be filed and heard in the district
87-12 court of any of the counties in which the land is located.
87-13 (b) The trial on appeal shall be de novo and the substantial
87-14 evidence rule shall not apply.
87-15 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
87-16 of a district by the commission, all assets of the district shall
87-17 escheat to the State of Texas. The assets shall be administered by
87-18 the state treasurer and shall be disposed of in the manner provided
87-19 by Chapter 74, Property Code.
87-20 (Sections 49.328 to 49.350 reserved for expansion
87-21 SUBCHAPTER L. FIRE DEPARTMENTS
87-22 Sec. 49.351. FIRE DEPARTMENTS. (a) A district providing
87-23 potable water or sewer service to household users may establish,
87-24 operate, and maintain a fire department to perform all
87-25 fire-fighting activities within the district as provided in this
88-1 subchapter and may issue, with voter approval, bonds for financing
88-2 the establishment of the fire department including the construction
88-3 and purchase of necessary buildings, facilities, and equipment and
88-4 the provision of an adequate water supply.
88-5 (b) After approval of the district electors of a plan to
88-6 operate or jointly operate a fire department, the district or
88-7 districts shall provide an adequate system and water supply for
88-8 fire-fighting purposes, may construct and purchase necessary
88-9 buildings, facilities, and equipment, and may employ all necessary
88-10 personnel including supervisory personnel to operate the fire
88-11 department.
88-12 (c) Bonds issued for establishment of the fire department
88-13 shall be authorized and issued, and a district shall be authorized
88-14 to levy a tax to pay the principal of and interest on such bonds,
88-15 as provided by law for authorization and issuance of other bonds of
88-16 the district.
88-17 (d) Two or more districts may contract to operate a joint
88-18 fire department for their districts and shall include in the
88-19 contract a system for joint administration and operation of the
88-20 fire department, the extent of services to be provided, a method
88-21 for funding the department from funds of each district, and any
88-22 other terms and conditions the parties consider necessary.
88-23 (e) A district may contract with any other person to perform
88-24 fire-fighting services within the district.
88-25 (f) Before a district establishes a fire department,
89-1 contracts to operate a joint fire department, or contracts with
89-2 another person to perform fire-fighting services within the
89-3 district, the district must comply with the provisions of
89-4 Subsections (g), (h), and (i).
89-5 (g) A district or districts proposing to act jointly shall
89-6 develop a detailed plan for the establishment, operation, and
89-7 maintenance of the proposed department, including a detailed
89-8 presentation of all financial requirements. If a district is
89-9 entering into a contract under Subsection (e), the district shall
89-10 develop a plan that describes in detail the facilities and
89-11 equipment to be devoted to service to the district and all
89-12 proposals for providing the service and that includes a
89-13 presentation of the financial requirements under the contract.
89-14 Before adoption of a plan and any contract by the district, the
89-15 board shall hold a hearing at which any person residing in the
89-16 district may present testimony for and against the proposed plan
89-17 and any proposed contract. Notice of the hearing and the place at
89-18 which the plan and any contract may be examined shall be posted in
89-19 two public places within the district at least 10 days before the
89-20 date of the hearing.
89-21 (h) After adoption of the plan and any contract by the
89-22 board, the plan and financial presentation, together with any
89-23 contract and a written report in a form prescribed by the executive
89-24 director describing existing fire departments and fire-fighting
89-25 services available within 25 miles of the boundaries of the
90-1 district, shall be submitted to the executive director for
90-2 consideration by the commission under rules adopted by the
90-3 commission. Before approval or disapproval, the commission shall
90-4 hold a hearing. Notice of the hearing before the commission shall
90-5 be posted by the board in at least two public places in the
90-6 district at least five days before the hearing. Before the
90-7 commission approves the application, it must find that it is
90-8 economically feasible for the district to implement the plan and
90-9 meet the provisions of any contract and shall take into
90-10 consideration in giving its approval the general financial
90-11 condition of the district and the economic feasibility of the
90-12 district carrying out the plan or meeting the obligations of the
90-13 contract.
90-14 (i) After approval by the commission, the district shall
90-15 submit to the electors of the district at the election to approve
90-16 bonds for financing the plan, or if no bonds are to be approved, at
90-17 an election called for approval of the plan, the proposition of
90-18 whether or not the plan should be implemented or entered into by
90-19 the district. The ballots at the election shall be printed, as
90-20 applicable, to provide for voting for or against the proposition:
90-21 "The implementation of the plan for (operation/joint operation) of
90-22 a fire department"; or "The plan and contract to provide
90-23 fire-fighting services for the district."
90-24 (j) No funds of the district may be used to establish a fire
90-25 department, to enter into joint operation of a fire department, or
91-1 to contract for fire-fighting services without the approval of a
91-2 plan by the electors as provided in this section. However, the
91-3 district may use available funds for preparation of a plan and any
91-4 contract. The operation of a fire department or provision of
91-5 fire-fighting services is an essential public necessity, and a
91-6 district may discontinue any and all services, including water and
91-7 sewer service, to any person who fails to timely pay fire
91-8 department service fees or any other assessment adopted by the
91-9 district to support the fire department or the provision of
91-10 fire-fighting services.
91-11 (Sections 49.352 to 49.450 reserved for expansion
91-12 SUBCHAPTER M. NOTICES, REPORTS, AND BANKRUPTCY
91-13 Sec. 49.451. POSTING SIGNS IN THE DISTRICT. (a) A district
91-14 subject to the notice requirements of Section 49.452 shall, within
91-15 30 days after the effective date of this section or the creation of
91-16 the district, post signs indicating the existence of the district
91-17 at two principal entrances to the district.
91-18 (b) The size and exact location of the information contained
91-19 on the signs shall be determined by the executive director.
91-20 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
91-21 proposes to sell or convey real property located in a district
91-22 created under this title or by a special Act of the legislature
91-23 that is providing or proposing to provide, as the district's
91-24 principal function, water, sanitary sewer, drainage, and flood
91-25 control or protection facilities or services, or any of these
92-1 facilities or services that have been financed or are proposed to
92-2 be financed with bonds of the district payable in whole or part
92-3 from taxes of the district, or by imposition of a standby fee, if
92-4 any, to household or commercial users, other than agricultural,
92-5 irrigation, or industrial users, and which district includes less
92-6 than all the territory in at least one county and which, if located
92-7 within the corporate area of a city, includes less than 75 percent
92-8 of the incorporated area of the city or which is located outside
92-9 the corporate area of a city in whole or in substantial part, must
92-10 first give to the purchaser the written notice provided in this
92-11 section.
92-12 (2) The provisions of this section shall not be
92-13 applicable to:
92-14 (A) transfers of title under any type of lien
92-15 foreclosure;
92-16 (B) transfers of title by deed in cancellation
92-17 of indebtedness secured by a lien upon the property conveyed; or
92-18 (C) transfers of title by reason of a will or
92-19 probate proceedings.
92-20 (b) The prescribed notice for all districts shall be
92-21 executed by the seller and shall read as follows:
92-22 "The real property, described below, that you are about to
92-23 purchase is located in the ___________________ District. The
92-24 district has taxing authority separate from any other taxing
92-25 authority and may, subject to voter approval, issue an unlimited
93-1 amount of bonds and levy an unlimited rate of tax in payment of
93-2 such bonds. As of this date, the rate of taxes levied by the
93-3 district on real property located in the district is $__________ on
93-4 each $100 of assessed valuation. If the district has not yet
93-5 levied taxes, the most recent projected rate of debt service tax,
93-6 as of this date, is $__________ on each $100 of assessed valuation.
93-7 The total amount of bonds approved by the voters and which have
93-8 been or may, at this date, be issued is $__________, and the
93-9 aggregate initial principal amounts of all bonds issued for one or
93-10 more of the specified facilities of the district and payable in
93-11 whole or in part from property taxes is $__________.
93-12 "The district has the authority to adopt and impose a standby
93-13 fee on property in the district that has water, sanitary sewer, or
93-14 drainage facilities and services available but not connected and
93-15 which does not have a house, building, or other improvement located
93-16 thereon and does not substantially utilize the utility capacity
93-17 available to the property. The district may exercise the authority
93-18 without holding an election on the matter. As of this date, the
93-19 most recent amount of the standby fee is $__________. An unpaid
93-20 standby fee is a personal obligation of the person that owned the
93-21 property at the time of imposition and is secured by a lien on the
93-22 property. Any person may request a certificate from the district
93-23 stating the amount, if any, of unpaid standby fees on a tract of
93-24 property in the district.
93-25 "The purpose of this district is to provide water, sewer,
94-1 drainage, or flood control facilities and services within the
94-2 district through the issuance of bonds payable in whole or in part
94-3 from property taxes. The cost of these utility facilities is not
94-4 included in the purchase price of your property, and these utility
94-5 facilities are owned or to be owned by the district. The legal
94-6 description of the property you are acquiring is as follows:
94-7 ___________________________________________________________________
94-8 ______________________ (Date)
94-9 _____________________________
94-10 Signature of Seller
94-11 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
94-12 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
94-13 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
94-14 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
94-15 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
94-16 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
94-17 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
94-18 "The undersigned purchaser hereby acknowledges receipt of the
94-19 foregoing notice at or prior to execution of a binding contract for
94-20 the purchase of the real property described in such notice or at
94-21 closing of purchase of the real property.
94-22 ______________________ (Date)
94-23 _____________________________
94-24 Signature of Purchaser
94-25 "(Note: Correct district name, tax rate, bond amounts, and
95-1 legal description are to be placed in the appropriate space.)
95-2 Except for notices included as an addendum or paragraph of a
95-3 purchase contract, the notice shall be executed by the seller and
95-4 purchaser, as indicated. If the district does not propose to
95-5 provide one or more of the specified facilities and services, the
95-6 appropriate purpose may be eliminated. If the district has not yet
95-7 levied taxes, a statement of the district's most recent projected
95-8 rate of debt service tax is to be placed in the appropriate space.
95-9 If the district does not have approval from the commission to adopt
95-10 and impose a standby fee, the second paragraph of the notice may be
95-11 deleted. For the purposes of the notice form required to be given
95-12 to the prospective purchaser prior to execution of a binding
95-13 contract of sale and purchase, a seller and any agent,
95-14 representative, or person acting on the seller's behalf may modify
95-15 the notice by substitution of the words 'January 1, ______' for the
95-16 words 'this date' and place the correct calendar year in the
95-17 appropriate space."
95-18 (c) The notice required by this section shall be given to
95-19 the prospective purchaser prior to execution of a binding contract
95-20 of sale and purchase either separately or as an addendum or
95-21 paragraph of a purchase contract. In the event a contract of
95-22 purchase and sale is entered into without the seller providing the
95-23 notice required by this subsection, the purchaser shall be entitled
95-24 to terminate the contract. If, however, the seller furnishes the
95-25 required notice at or prior to closing the purchase and sale
96-1 contract and the purchaser elects to close even though such notice
96-2 was not timely furnished prior to execution of the contract, it
96-3 shall be conclusively presumed that the purchaser has waived all
96-4 rights to terminate the contract and recover damages or other
96-5 remedies or rights under the provisions of this section.
96-6 Notwithstanding any provision of this subchapter to the contrary,
96-7 all sellers, title companies, and examining attorneys, and any
96-8 agent, representative, or person acting on their behalf, shall not
96-9 be liable for damages under the provisions of either Subsection (l)
96-10 or (m) or liable for any other damages to any person for failure to
96-11 provide the notice required by this section to a purchaser prior to
96-12 execution of a binding contract of a purchase and sale when the
96-13 district has not filed the information form and map or plat as
96-14 required under Section 49.455.
96-15 (d) The purchaser shall sign the notice or purchase contract
96-16 including such notice to evidence the receipt of notice.
96-17 (e) At the closing of purchase and sale, a separate copy of
96-18 such notice with current information shall be executed by the
96-19 seller and purchaser, acknowledged, and thereafter recorded in the
96-20 deed records of the county in which the property is located. For
96-21 the purposes of this section, all sellers, title companies, and
96-22 examining attorneys, and any agent, representative, or person
96-23 acting on their behalf, shall be entitled to rely on the accuracy
96-24 of the information form and map or plat as last filed by each
96-25 district under Section 49.455 or the information contained in or
97-1 shown on the notice form issued by the district under Section
97-2 49.453 in completing the notice form to be executed by the seller
97-3 and purchaser at the closing of purchase and sale. Any information
97-4 taken from the information form or map or plat as last filed by
97-5 each district and the information contained in or shown on the
97-6 notice form issued by the district under Section 49.453 shall be,
97-7 for purposes of this section, conclusively presumed as a matter of
97-8 law to be correct. All subsequent sellers, purchasers, title
97-9 insurance companies, examining attorneys, and lienholders shall be
97-10 entitled to rely upon the information form and map or plat filed by
97-11 the district or the notice form issued by the district under
97-12 Section 49.453.
97-13 (f) For the purposes of this section, an executory contract
97-14 of purchase and sale having a performance period of more than six
97-15 months shall be considered a sale under Subsection (a).
97-16 (g) For the purposes of the notice form to be given to the
97-17 prospective purchaser prior to execution of a binding contract of
97-18 sale and purchase, a seller and any agent, representative, or
97-19 person acting in the seller's behalf may modify the notice by
97-20 substitution of the words "January 1, ____" for the words "this
97-21 date" and place the correct calendar year in the appropriate space.
97-22 All sellers, and all persons completing the prescribed notice in
97-23 the sellers' behalf, shall be entitled to rely on the information
97-24 contained in or shown on the information form and map or plat filed
97-25 of record by the district under Section 49.455 in completing the
98-1 prescribed form to be given to the prospective purchaser prior to
98-2 execution of a binding contract of sale and purchase. Except as
98-3 otherwise provided in Subsection (e), any information taken from
98-4 the information form or map or plat filed of record by the district
98-5 in effect as of January 1 of each year shall be, for purposes of
98-6 the notice to be given to the prospective purchaser prior to
98-7 execution of a binding contract of sale and purchase, conclusively
98-8 presumed as a matter of law to be correct for the period January 1
98-9 through December 31 of such calendar year. A seller and any
98-10 persons completing the prescribed notice in the seller's behalf may
98-11 provide more recent information, if available, than the information
98-12 contained in or shown on the information form and map or plat filed
98-13 of record by the district under Section 49.455 in effect as of
98-14 January 1 of each year in completing the prescribed form to be
98-15 given to the purchaser prior to execution of a binding contract of
98-16 sale and purchase. Nothing contained in the preceding sentence
98-17 shall be construed to create an affirmative duty on the part of a
98-18 seller or any persons completing the prescribed notice in the
98-19 seller's behalf to provide more recent information than the
98-20 information taken from the information form and map or plat filed
98-21 of record by the district as of January 1 of each year in
98-22 completing the prescribed notice to be given to the purchaser prior
98-23 to execution of a binding contract of sale and purchase. All
98-24 subsequent sellers, purchasers, title insurance companies,
98-25 examining attorneys, and lienholders shall be entitled to rely upon
99-1 the information form and map or plat filed by the district.
99-2 (h) If such notice is given at closing as provided in
99-3 Subsection (e), a purchaser, or the purchaser's heirs, successors,
99-4 or assigns, shall not be entitled to maintain any action for
99-5 damages or maintain any action against a seller, title insurance
99-6 company, or lienholder, or any agent, representative, or person
99-7 acting in their behalf, by reason of use by the seller of the
99-8 information filed for record by the district or reliance by the
99-9 seller on the filed plat and filed legal description of the
99-10 district in determining whether the property to be sold and
99-11 purchased is within the district. No action may be maintained
99-12 against any title company for failure to disclose the inclusion of
99-13 the described real property within a district when the district has
99-14 not filed for record the information form, map, or plat with the
99-15 clerk of the county or counties in which the district is located.
99-16 (i) Any purchaser who purchases any real property in a
99-17 district and who thereafter sells or conveys the same shall on
99-18 closing of such subsequent sale be conclusively considered as
99-19 having waived any prior right to damages under this section.
99-20 (j) It is the express intent of this section that all
99-21 sellers, title insurance companies, examining attorneys, vendors of
99-22 property and tax information, real estate brokers, and lienholders,
99-23 and any agent, representative, or person acting on their behalf,
99-24 shall be entitled to rely on the accuracy of the information form
99-25 and map or plat as last filed by each district or the information
100-1 contained in or shown on the notice form issued by the district
100-2 under Section 49.453, or for the purposes of the notice to be given
100-3 the purchaser prior to execution of a binding contract of sale and
100-4 purchase the information contained in or shown on the information
100-5 form and map or plat filed of record by the district in effect as
100-6 of January 1 of each year for the period January 1 through December
100-7 31 of such calendar year.
100-8 (k) Except as otherwise provided in Subsection (c), if any
100-9 sale or conveyance of real property within a district is not made
100-10 in compliance with the provisions of this section, the purchaser
100-11 may institute a suit for damages under the provisions of either
100-12 Subsection (l) or (m).
100-13 (l) A purchaser of real property covered by the provisions
100-14 of this section, if the sale or conveyance of the property is not
100-15 made in compliance with this section, may institute a suit for
100-16 damages in the amount of all costs relative to the purchase of the
100-17 property plus interest and reasonable attorney's fees. The suit
100-18 for damages may be instituted jointly or severally against the
100-19 person, firm, corporation, partnership, organization, business
100-20 trust, estate, trust, association, or other legal entity that sold
100-21 or conveyed the property to the purchaser. Following the recovery
100-22 of damages under this subsection, the amount of the damages shall
100-23 first be paid to satisfy all unpaid obligations on each outstanding
100-24 lien or liens on the property and the remainder of the damage
100-25 amount shall be paid to the purchaser. On payment of all damages
101-1 respectively to the lienholders and purchaser, the purchaser shall
101-2 reconvey the property to the seller.
101-3 (m) A purchaser of real property covered by the provisions
101-4 of this section, if the sale or conveyance of the property is not
101-5 made in compliance with this section, may institute a suit for
101-6 damages in an amount not to exceed $5,000, plus reasonable
101-7 attorney's fees.
101-8 (n) A purchaser is not entitled to recover damages under
101-9 both Subsections (l) and (m), and entry of a final decision
101-10 awarding damages to the purchaser under either Subsection (l) or
101-11 (m) shall preclude the purchaser from recovering damages under the
101-12 other subsection. Notwithstanding any part or provision of the
101-13 general or special laws or the common law of the state to the
101-14 contrary, the relief provided under Subsections (l) and (m) shall
101-15 be the exclusive remedies for a purchaser aggrieved by the seller's
101-16 failure to comply with the provisions of this section. Any action
101-17 for damages shall not, however, apply to, affect, alter, or impair
101-18 the validity of any existing vendor's lien, mechanic's lien, or
101-19 deed of trust lien on the property.
101-20 (o) A suit for damages under the provisions of this section
101-21 must be brought within 90 days after the purchaser receives the
101-22 first district tax notice or within four years after the property
101-23 is sold or conveyed to the purchaser, whichever time occurs first,
101-24 or the purchaser loses the right to seek damages under this
101-25 section.
102-1 (p) Notwithstanding any provisions of this subchapter to the
102-2 contrary, a purchaser may not recover damages of any kind under
102-3 this section if that person:
102-4 (1) purchases an equity in real property and in
102-5 conjunction with the purchase assumes any liens, whether purchase
102-6 money or otherwise; and
102-7 (2) does not require proof of title by abstract, title
102-8 policy, or any other proof of title.
102-9 Sec. 49.453. NOTICE FORM FROM DISTRICT. (a) A district
102-10 covered by Section 49.452 shall also maintain in the district
102-11 office the particular form of Notice to Purchasers required by
102-12 Section 49.452 to be furnished by a seller to a purchaser of real
102-13 property in that district and shall, upon written request of any
102-14 person, issue the notice form completed by a district with all
102-15 information required to be furnished by the district. A notice
102-16 form issued by a district under the provisions of this section
102-17 shall include a written statement that the notice form is being
102-18 issued by the district, the date of its issuance, and the
102-19 district's telephone number. A district shall not be required to
102-20 orally provide the information.
102-21 (b) A district may charge a reasonable fee as determined by
102-22 the district not to exceed $10 for the issuance of a notice form
102-23 pursuant to Subsection (a). The notice form shall be delivered by
102-24 regular mail or made available at the district's office. If a
102-25 district is requested to deliver the notice form to a person by an
103-1 alternative method, the district may impose a charge not to exceed
103-2 the actual cost of such delivery.
103-3 (c) A district may delegate the responsibility for issuance
103-4 of the particular form of Notice to Purchasers to an employee or
103-5 agent of the district. A district shall file with the commission
103-6 the name, address, and telephone number of the employee or agent of
103-7 the district responsible for issuance of the notice forms and shall
103-8 notify the commission in writing within seven days after there is a
103-9 change to the information required to be filed with the commission
103-10 under the provisions of this subsection.
103-11 (d) Any notice issued by the district shall contain the
103-12 information effective as of the date of its issuance.
103-13 Sec. 49.454. NOTICE OF UNPAID STANDBY FEES. (a) A district
103-14 covered by Section 49.452 shall, on the written request of any
103-15 person, issue a certificate stating the amount of any unpaid
103-16 standby fees, including interest on the fees, that have been
103-17 assessed against a tract of property in the district. The district
103-18 may charge a fee not to exceed $10 for each certificate. A
103-19 certificate issued through fraud or collusion is void.
103-20 (b) If the district issues a certificate containing an
103-21 erroneous statement under Subsection (a) and the owner of the
103-22 property transfers the property to a good faith purchaser for
103-23 value, the lien on the property provided by Section 49.231(k) is
103-24 extinguished to the extent of the error.
103-25 (c) This section does not affect the liability for any
104-1 unpaid standby fees of the former owner of the undeveloped property
104-2 under Section 49.231(k).
104-3 Sec. 49.455. FILING INFORMATION. (a) The board covered by
104-4 the provisions of Section 49.452 shall file with the county clerk
104-5 in each of the counties in which all or part of the district is
104-6 located a duly affirmed and acknowledged information form that
104-7 includes the information required in Subsection (b), and a complete
104-8 and accurate map or plat showing the boundaries of the district.
104-9 (b) The information form filed by a district under this
104-10 section shall include:
104-11 (1) the name of the district;
104-12 (2) the complete and accurate legal description of the
104-13 boundaries of the district;
104-14 (3) the most recent rate of district taxes on property
104-15 located in the district;
104-16 (4) the total amount of bonds that have been approved
104-17 by the voters and which may be issued by the district (excluding
104-18 refunding bonds and any bonds or portion of bonds payable solely
104-19 from revenues received or expected to be received pursuant to a
104-20 contract with a governmental entity);
104-21 (5) the aggregate initial principal amount of all
104-22 bonds of the district payable in whole or part from taxes
104-23 (excluding refunding bonds and any bonds or portion of bonds
104-24 payable solely from revenues received or expected to be received
104-25 pursuant to a contract with a governmental entity) that have been
105-1 previously issued and remain outstanding;
105-2 (6) whether a standby fee is imposed by the district
105-3 and, if so, the amount of the standby fee;
105-4 (7) the date on which the election to confirm the
105-5 creation of the district was held if such was required;
105-6 (8) a statement of the functions performed or to be
105-7 performed by the district; and
105-8 (9) the particular form of Notice to Purchasers
105-9 required by Section 49.452 to be furnished by a seller to a
105-10 purchaser of real property in that district completed by the
105-11 district with all information required to be furnished by the
105-12 district.
105-13 If a district has not yet levied taxes, a statement to such
105-14 effect together with the district's most recent projected rate of
105-15 debt service tax shall be substituted for Subdivisions (3) and (4).
105-16 (c) The information form and map or plat required by this
105-17 section shall be signed by a majority of the members of the board
105-18 and by each such officer affirmed and acknowledged before it is
105-19 filed with the county clerk, and each amendment made to an
105-20 information form or map shall also be signed by the members of the
105-21 board and by each such officer affirmed and acknowledged before it
105-22 is filed with the county clerk.
105-23 (d) The information form required by this section shall be
105-24 filed with the county clerk within 48 hours after the effective
105-25 date of this section or within 48 hours after the district is
106-1 officially created, whichever time comes first. For purposes of
106-2 this section, the words "officially created" mean the date and hour
106-3 in which the results of the election to confirm the creation of the
106-4 district are declared.
106-5 (e) Within seven days after there is a change in any of the
106-6 information contained in the district information form, map, or
106-7 plat, the district shall file an amendment to the information form,
106-8 map, or plat setting forth the changes made.
106-9 (f) Any person who affirms the corrections and accuracy of
106-10 and acknowledges an information form, map, or plat, or any
106-11 amendment to an information form, map, or plat that includes
106-12 information that is inaccurate or incorrect shall be guilty of a
106-13 misdemeanor and shall be fined not less than $100 nor more than
106-14 $1,000 for each violation.
106-15 (g) If a district fails to file the information required by
106-16 this section in the time required, the executive director may
106-17 request the state attorney general or the district or county
106-18 attorney of the county in which the district is located to seek a
106-19 writ of mandamus to force the board to prepare and file the
106-20 necessary information.
106-21 (h) Any member of a governing board who wilfully fails or
106-22 refuses to join in filing an information form, map, or plat or an
106-23 amendment to an information form, map, or plat under this section
106-24 shall be guilty of a misdemeanor and shall be fined not less than
106-25 $100 nor more than $1,000 for each violation. A member of a
107-1 governing board is presumed to have wilfully failed or refused to
107-2 join in the filing of an information form, map, or plat or an
107-3 amendment to an information form, map, or plat if that member was
107-4 present at the meeting at which the information included in the
107-5 information form, map, or plat or amendment to the information
107-6 form, map, or plat was adopted.
107-7 (i) If a district covered by this section is dissolved,
107-8 annexed to another local government, or consolidated with another
107-9 district, the members of the board shall file a statement of this
107-10 fact together with the effective date of the dissolution,
107-11 annexation, or consolidation with the information form. After a
107-12 district is dissolved and the statement is filed under this
107-13 subsection, a person who sells or conveys property within the
107-14 dissolved district is no longer required to give notice under
107-15 Section 49.452.
107-16 (j) A copy of all information forms, maps, or plats and
107-17 amendments to these filed under this section shall also be filed
107-18 with the executive director.
107-19 Sec. 49.456. BANKRUPTCY OF DISTRICTS; AUTHORITY OF
107-20 COMMISSION. (a) Notwithstanding Section 140.001, Local Government
107-21 Code, or any other law of this state, a district created under
107-22 Sections 52(b)(1) and (2), Article III, or Section 59, Article XVI,
107-23 Texas Constitution, that is subject to the continuing supervision
107-24 of the commission may not proceed under Chapter 9 of the Federal
107-25 Bankruptcy Code (11 U.S.C. Sections 901-946) or any other law
108-1 enacted by the Congress of the United States under federal
108-2 bankruptcy authority until the commission authorizes the district
108-3 to proceed under those laws by written order.
108-4 (b) A district requesting the commission's authorization to
108-5 proceed under Chapter 9 of the Federal Bankruptcy Code (11 U.S.C.
108-6 Sections 901-946) or any other federal bankruptcy law shall file an
108-7 application with the commission requesting authorization.
108-8 (c) The commission shall investigate the financial condition
108-9 of a district submitting an application under Subsection (b),
108-10 including its assets, liabilities, and sources of revenues and may
108-11 require a district to submit any information that the commission
108-12 considers material to a determination of whether authorization to
108-13 proceed in bankruptcy should be granted.
108-14 (d) The commission may not authorize a district to proceed
108-15 in bankruptcy unless the commission determines that the district
108-16 cannot, through the full exercise of its rights and powers under
108-17 the laws of this state, reasonably expect to meet its debts and
108-18 other obligations as they mature.
108-19 (e) The commission shall adopt and assess reasonable and
108-20 necessary fees adequate to recover the costs of the commission in
108-21 administering this section.
108-22 SECTION 3. Title 4, Water Code, is amended by adding Chapter
108-23 59 to read as follows:
108-24 CHAPTER 59. REGIONAL DISTRICTS
108-25 SUBCHAPTER A. DISTRICT CREATION
109-1 Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of
109-2 this chapter is to authorize creation and operation of regional
109-3 districts for water, sanitary sewer, drainage, and municipal solid
109-4 waste disposal under Section 59, Article XVI, Texas Constitution.
109-5 (b) This chapter applies only in counties with a population
109-6 of at least 2.2 million, according to the most recent federal
109-7 census, or bordering a county with a population of at least 2.2
109-8 million, according to the most recent federal census.
109-9 Sec. 59.002. DEFINITIONS. (a) In this chapter:
109-10 (1) "District" means a district created or operating
109-11 under this chapter.
109-12 (2) "Municipal district" means a district created
109-13 under general law or a special Act operating under Chapter 51, 53,
109-14 or 54.
109-15 (3) "Bond" means bonds, coupons, notes, or any other
109-16 evidence of indebtedness.
109-17 (b) Other terms not defined by this chapter have the same
109-18 meaning assigned to those terms by Section 49.001.
109-19 Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
109-20 created by:
109-21 (1) The boards of at least 20 percent of the total
109-22 number of municipal districts to be included in the proposed
109-23 district may jointly petition the commission for creation of a
109-24 district. The petition must describe the territory to be included
109-25 in the district and must include resolutions endorsing creation of
110-1 the district adopted by each municipal district to be included in
110-2 the district.
110-3 (2) The owner or owners of 2,000 or more contiguous
110-4 acres may petition the commission for creation of a district.
110-5 (3) The commissioners courts of one or more counties
110-6 may petition the commission for creation of a district in any
110-7 territory within the county.
110-8 (4) The governing body of any city may petition the
110-9 commission for creation of a district in any territory within the
110-10 city or its extraterritorial jurisdiction.
110-11 (b) Petitions for the creation of a district must:
110-12 (1) describe the boundaries of the proposed district
110-13 by metes and bounds that adequately and completely circumscribe the
110-14 property so that there is complete closure of the property or by
110-15 lot and block numbers if there is a recorded map or plat or
110-16 subdivision survey of the area;
110-17 (2) state the general nature of the work proposed to
110-18 be done, the necessity of the work, and the cost of any projects of
110-19 the district as estimated by those filing the petition;
110-20 (3) state the name of each petitioner; and
110-21 (4) include a name of the district generally
110-22 descriptive of the locale of the district followed by the words
110-23 "Regional District."
110-24 (c) A proposed district may not have the same name as any
110-25 other district in the state.
111-1 (d) Section 54.013 applies to the composition of districts
111-2 created under this chapter.
111-3 Sec. 59.004. PURPOSES OF DISTRICT. A district shall be
111-4 created:
111-5 (1) to purchase, own, hold, lease, and otherwise
111-6 acquire sources of water supply;
111-7 (2) to build, operate, and maintain facilities for the
111-8 transportation of water;
111-9 (3) to sell water to cities, to political subdivisions
111-10 of this state, to water supply corporations, to private business
111-11 entities, and to individuals;
111-12 (4) to purchase, own, hold, lease, and otherwise
111-13 acquire equipment and mechanisms necessary for sanitary sewer and
111-14 wastewater treatment;
111-15 (5) to build, operate, and maintain facilities for
111-16 sanitary sewer and wastewater treatment;
111-17 (6) to transport and treat sanitary sewer and
111-18 wastewater effluent of cities and political subdivisions of this
111-19 state and for private business entities or individuals;
111-20 (7) to purchase, own, hold, lease, and otherwise
111-21 acquire equipment and mechanisms for the drainage of storm water
111-22 and floodwater; and
111-23 (8) for the purposes outlined in Section 54.012.
111-24 Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
111-25 Development Board requires that matching funds be provided as a
112-1 condition for receiving a loan or grant from the Texas Water
112-2 Development Board from research and planning funds, the matching
112-3 funds may not be provided through a guarantee of matching funds by
112-4 any individual who has a financial interest in the regional
112-5 district or who will receive any direct financial benefit from a
112-6 regional district project.
112-7 Sec. 59.006. CONSENT OF CITY. (a) Land in the corporate
112-8 limits of a city or in the extraterritorial jurisdiction of a city
112-9 may not be included in a district unless the city grants its
112-10 written consent by resolution or ordinance to the inclusion of the
112-11 land in the district.
112-12 (b) If the governing body of a city fails or refuses to
112-13 grant permission for the inclusion of land in its extraterritorial
112-14 jurisdiction in a district within 120 days after receipt of a
112-15 written request, the person or entity desiring to create the
112-16 district may petition the governing body of the city to make
112-17 available the water, sewer, or drainage service contemplated to be
112-18 provided by the district.
112-19 (c) Failure of the governing body of the city and the
112-20 requesting district to execute a mutually agreeable contract
112-21 providing for the service requested within six months after receipt
112-22 of a request for consent constitutes authorization for the
112-23 inclusion of land in the district under this section.
112-24 Authorization for the inclusion of the land in the district under
112-25 this section means only authorization to initiate proceedings to
113-1 include the land in the district as otherwise provided by this
113-2 chapter.
113-3 (d) Sections 54.016(e), (f), (g), and (h) apply under this
113-4 chapter.
113-5 Sec. 59.007. GRANTING OR REFUSING PETITION; EXCLUSION OF
113-6 TERRITORY. (a) If after the hearing of the petition the
113-7 commission finds that the petition conforms to the requirements of
113-8 this chapter and that the creation of the district would be of
113-9 benefit to the territory to be included in the district, the
113-10 commission shall issue an order granting the petition for creation.
113-11 If the commission finds that part of the territory included in the
113-12 proposed district will not benefit from the creation of the
113-13 district, the commission shall exclude that territory from the
113-14 proposed district and redefine the proposed district's boundaries
113-15 accordingly.
113-16 (b) If the commission finds that the petition does not
113-17 conform to the requirements of this chapter or that the proposed
113-18 projects are not of benefit to the territory in the proposed
113-19 district, the commission shall issue an order either denying the
113-20 petition or requiring petitioners to amend their petition.
113-21 (c) A copy of the order of the commission granting or
113-22 denying a petition shall be mailed to each city having
113-23 extraterritorial jurisdiction in the county or counties in which
113-24 the district is to be located that has requested notice of hearings
113-25 as provided by Section 54.019.
114-1 (Sections 59.008 to 59.020 reserved for expansion
114-2 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
114-3 Sec. 59.021. DIRECTORS. (a) The commission shall appoint
114-4 temporary directors who shall serve until permanent directors are
114-5 elected.
114-6 (b) A petition requesting creation filed in accordance with
114-7 Section 59.006 may provide that directors be elected by precinct as
114-8 provided by Subsection (h).
114-9 (c) The board of directors is composed of five members
114-10 unless the petition requesting creation of the district requests
114-11 and the commission approves a board that consists of seven members.
114-12 (d) Permanent directors shall be elected in accordance with
114-13 Chapter 49.
114-14 (e) If the petition for creation has requested the election
114-15 of seven directors as provided by Subsection (c), unless otherwise
114-16 agreed, the three directors elected who received the fewest number
114-17 of votes, whether their election is by precinct or at large, shall
114-18 serve until the next directors election following the confirmation
114-19 election and the four who received the highest number of votes
114-20 shall serve until the second directors election after the
114-21 confirmation election.
114-22 (f) After the creation of the district, the persons or
114-23 entities that petitioned for creation or 50 qualified voters of the
114-24 district may file a petition with the commission requesting to
114-25 expand the district's board to seven members. If the commission
115-1 grants the petition, the commission shall appoint two temporary
115-2 directors. One temporary director shall serve until the next
115-3 directors election and one shall serve until the next succeeding
115-4 directors election. At each election one director shall be elected
115-5 to serve for a four-year term.
115-6 (g) If the board of directors of the district is expanded to
115-7 seven members, four directors shall constitute a quorum and a
115-8 concurrence of four directors is necessary in all matters
115-9 pertaining to the business of the district.
115-10 (h) A petition for the creation of a district may request
115-11 that the board be elected to represent a geographic area. If the
115-12 petition requesting creation of the district is granted, the
115-13 commission shall establish precincts from which the directors are
115-14 to be elected. In establishing the precincts the commission shall
115-15 attempt to have directors represent geographic areas with equal
115-16 numbers of people and shall comply with the federal Voting Rights
115-17 Act of 1965 (42 U.S.C. Sections 1971, 1973 et seq.). Thereafter,
115-18 the board of directors of the district shall revise the precincts
115-19 from time to time to cause them to comply with the provisions of
115-20 this subsection.
115-21 Sec. 59.022. ABILITY TO SET RATES. The district may charge
115-22 rates to persons and entities located outside the district's
115-23 boundaries on terms, rates, and charges the board of directors may
115-24 determine to be advisable. In setting rates for out-of-district
115-25 customers, the board shall set rates sufficient to enable it to
116-1 meet operation and maintenance expenses and to pay the principal of
116-2 and interest on debt issued in connection with providing service
116-3 and to provide a reasonable reserve for replacements to the
116-4 district. In setting rates, the district may take into
116-5 consideration past operation and debt service expenses.
116-6 Sec. 59.023. ISSUANCE OF BONDS. The district may issue
116-7 bonds for the purpose of purchasing, constructing, acquiring,
116-8 owning, operating, repairing, improving, or extending any district
116-9 works, improvements, facilities, plants, equipment, and appliances
116-10 needed to accomplish the purposes of the district, including works,
116-11 improvements, facilities, plants, equipment, and appliances needed
116-12 to provide a waterworks system, sanitary sewer system, storm sewer
116-13 system, solid waste disposal system, and parks and recreational
116-14 facilities. Prior to issuing bonds or other obligations, a
116-15 confirmation election must be held in accordance with Chapter 49,
116-16 and a majority of voters must approve the establishment of the
116-17 district.
116-18 Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS.
116-19 (a) A municipal district may be excluded from the district as
116-20 provided by this section.
116-21 (b) To be excluded, the board of directors of the municipal
116-22 district may adopt a resolution requesting exclusion by a majority
116-23 vote of its board of directors and shall file the petition with the
116-24 directors of the proposed district before the first confirmation
116-25 election.
117-1 (c) At the time of the district's confirmation election, a
117-2 separate voting precinct shall be used for the qualified voters in
117-3 each municipal district that has filed a petition requesting
117-4 exclusion. The votes in each precinct shall be tallied separately
117-5 to determine whether that municipal district will be excluded from
117-6 the district boundaries.
117-7 (d) If a majority of the votes cast in a municipal district
117-8 requesting exclusion vote against confirmation of the district, the
117-9 votes cast in the confirmation election shall not be counted for
117-10 the confirmation election, bond election, or maintenance tax
117-11 election, and that municipal district must be excluded from the
117-12 boundaries of the district by the board of directors of the
117-13 district at the time the results of the election are canvassed.
117-14 (e) After a confirmation election at which the district is
117-15 authorized to be created, the board of directors of the district
117-16 shall adopt an order redefining the boundaries of the district to
117-17 exclude those municipal districts petitioning for exclusion that
117-18 have voted not to confirm creation of the district.
117-19 (f) Before the creation hearing, any municipal district
117-20 located within the proposed district may petition the commission
117-21 for a separate voting precinct to be used within the boundaries of
117-22 the petitioning district at the time of the district's confirmation
117-23 election. If the commission grants the petition requesting a
117-24 separate voting precinct, Subsections (c) through (e) apply.
117-25 Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district
118-1 may be created pursuant to a petition granted by the commission, a
118-2 confirmation election must be held within the boundaries of the
118-3 proposed district.
118-4 (b) The directors appointed by the commission shall call and
118-5 hold the confirmation election in the manner provided for
118-6 conducting elections under Chapter 49. The provisions of those
118-7 sections relating to a directors election do not apply to an
118-8 election held under this section.
118-9 (c) If the creation of the district is defeated, subsequent
118-10 confirmation elections may not be held to confirm the creation of
118-11 the district.
118-12 (d) A bond election, maintenance tax election, and any other
118-13 election may be held at the same time and in conjunction with a
118-14 confirmation election.
118-15 (Sections 59.026 to 59.050 reserved for expansion
118-16 SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
118-17 Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
118-18 LANDOWNERS. In addition to the method of adding land to a district
118-19 described in Section 59.052, defined areas of land, regardless of
118-20 whether they are contiguous to the district, may be annexed to the
118-21 district in the manner provided in Chapter 49.
118-22 Sec. 59.052. FILING OF PETITION. A petition requesting the
118-23 annexation of a defined area that is signed by a majority in value
118-24 of the owners of land in the defined area, as shown by the tax
118-25 rolls of the county or counties in which that area is located, that
119-1 is signed by 50 landowners if the number of landowners is more than
119-2 50, that is signed by the single landowner of 2,000 or more acres
119-3 of land in the area, or that is signed by a majority of the
119-4 governing body of a municipal district, a county, or a city
119-5 requesting annexation shall be filed with the secretary of the
119-6 board.
119-7 Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
119-8 BONDS. (a) If the board considers it advisable before the
119-9 issuance of any bonds, the board may dissolve the district and
119-10 liquidate the affairs of the district as provided by Sections
119-11 54.734 through 54.738.
119-12 (b) If a majority of the board finds at any time before the
119-13 authorization of bonds that the proposed district and its proposed
119-14 activities are for any reason impracticable or apparently cannot be
119-15 successfully and beneficially accomplished, the board may issue
119-16 notice of a hearing on a proposal to dissolve the district.
119-17 Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
119-18 order to dissolve the district may be judicially reviewed as
119-19 provided in Chapter 49.
119-20 (Sections 59.055 to 59.070 reserved for expansion
119-21 SUBCHAPTER D. MISCELLANEOUS
119-22 Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) If a
119-23 city annexes all or any part of the territory within a district, or
119-24 incorporates all or any part of any territory within a district,
119-25 the city shall succeed to the powers, duties, assets, and
120-1 obligations of the district as provided by this chapter.
120-2 (b) On annexation of any part of the territory of a district
120-3 by a city or incorporation by a city of any part of the territory
120-4 of a district, the city shall assume a pro rata share of all debt
120-5 of the district payable in whole or in part by ad valorem taxes
120-6 incurred for water, sewer, or drainage purposes or any combination
120-7 of the three purposes. The percentage of the assumption shall be
120-8 determined by multiplying the total debt of the district payable in
120-9 whole or in part from taxes incurred for the stated purposes by a
120-10 fraction, the numerator of which is the assessed value of the
120-11 property to be annexed or incorporated based on the most recent
120-12 certified county property tax rolls at the time of annexation or
120-13 incorporation and the denominator of which is the total assessed
120-14 value of the property of the district based on the most recent
120-15 certified county property tax rolls at the time of annexation or
120-16 incorporation.
120-17 (c) After annexation by a city of a portion of the territory
120-18 of a district or incorporation over any part of the territory of a
120-19 district, the district may not levy taxes on that territory, and
120-20 the territory is no longer considered a part of the district for
120-21 any purpose.
120-22 (d) If any district's debt payable in whole or in part from
120-23 ad valorem taxes is assumed by a city, the governing body of the
120-24 city shall levy and cause to be collected taxes on all taxable
120-25 property within the city or provide other funds sufficient to pay
121-1 the city's pro rata share of the principal of and interest on that
121-2 debt as it becomes due and payable.
121-3 (e) If a city annexes or incorporates the entire territory
121-4 of the district, the district shall be dissolved in accordance with
121-5 Sections 43.074, 43.075, and 43.081, Local Government Code, if the
121-6 district is located in one city or Sections 43.076 through 43.079,
121-7 Local Government Code, if the district is located in more than one
121-8 city.
121-9 (f) Section 43.071, Local Government Code, does not apply to
121-10 the annexation of a district created pursuant to this chapter.
121-11 Sec. 59.072. OTHER LAWS. (a) This chapter prevails over
121-12 any other law in conflict with or inconsistent with this chapter.
121-13 (b) Except as specifically provided by this chapter, Chapter
121-14 49 and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,
121-15 54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208, 54.502
121-16 through 54.505, 54.507(b) and (c), 54.510 through 54.512, 54.514,
121-17 54.515, 54.518, 54.520, 54.521, 54.601 through 54.604, and 54.735
121-18 through 54.737 apply under this chapter.
121-19 (c) Section 54.019(e) does not apply to a district governed
121-20 by this chapter.
121-21 SECTION 4. Subsection (a), Section 51.0711, Water Code, is
121-22 amended to read as follows:
121-23 (a) The governing body of a municipality that enters a
121-24 contract or agreement with a district located in more than one
121-25 county to jointly construct, acquire, operate, or maintain a
122-1 regional wastewater system is entitled to appoint a special
122-2 director to the board of the district. Section 51.072 <of this
122-3 code> does not apply to a special director.
122-4 SECTION 5. Section 51.072, Water Code, is amended to read as
122-5 follows:
122-6 Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified
122-7 for election as a director, a person must be a resident of the
122-8 state, own land subject to taxation in the district, and be at
122-9 least 18 <21> years of age. Section 49.052 does not apply to a
122-10 district governed by this chapter whose principal purpose is
122-11 providing water for irrigation.
122-12 SECTION 6. Subsection (a), Section 51.076, Water Code, is
122-13 amended to read as follows:
122-14 (a) In a district created after June 18, 1967, with
122-15 boundaries coterminous with the boundaries of a county, the
122-16 commissioners court may provide in the order granting the petition
122-17 for creation that the directors are to be selected either as
122-18 provided in Section 49.102 <51.073 of this code> or by the
122-19 "commissioners precinct method," which provides for the election of
122-20 two directors from each commissioners precinct in the county and
122-21 the election of one director from the county at large.
122-22 SECTION 7. Subsection (d), Section 51.750, Water Code, is
122-23 amended to read as follows:
122-24 (d) The temporary directors of each of the resulting
122-25 districts must qualify as directors of the district pursuant to
123-1 Section <Sections> 51.072 <and 51.073 of this code> within the
123-2 period of 90 days after the election approving the division of the
123-3 original district and shall assume their offices at the expiration
123-4 of the 90-day period.
123-5 SECTION 8. Section 52.005, Water Code, is amended by adding
123-6 Subsection (c) to read as follows:
123-7 (c) Sections 49.052, 49.216, and 49.301 through 49.308 do
123-8 not apply to districts governed by this chapter.
123-9 SECTION 9. Section 52.115, Water Code, is amended to read as
123-10 follows:
123-11 Sec. 52.115. MEETINGS. <(a)> The board shall hold regular
123-12 quarterly meetings. It may hold meetings at other times as
123-13 required for the business of the district.
123-14 <(b) Any person may attend a meeting of the board and may
123-15 present in an orderly manner matters for the board's consideration.>
123-16 <(c) Meetings shall be conducted and notice of meetings
123-17 shall be posted in accordance with the open meetings law, Chapter
123-18 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
123-19 6252-17, Vernon's Texas Civil Statutes).>
123-20 SECTION 10. Subsections (c), (d), and (e), Section 52.294,
123-21 Water Code, are amended to read as follows:
123-22 (c) <Notice of an election must be given as provided by
123-23 Section 52.059(c) of this code for creation elections.>
123-24 <(d)> At an election to authorize bonds or notes payable
123-25 wholly from ad valorem taxes, the ballots must be printed to
124-1 provide for voting for or against the proposition: "The issuance
124-2 of (bonds or notes) and the levy of taxes for payment of the (bonds
124-3 or notes)." At any election to authorize bonds or notes payable
124-4 from both ad valorem taxes and revenues, the ballots must be
124-5 printed to provide for voting for or against: "The issuance of
124-6 (bonds or notes) and the pledge of net revenues and the levy of ad
124-7 valorem taxes adequate to provide for the payment of the (bonds or
124-8 notes)."
124-9 (d) <(e)> The board shall canvass the returns and declare
124-10 the results of the election. If a majority of the votes cast at
124-11 the election favor the issuance of the bonds or notes, the bonds or
124-12 notes may be issued by the board, but if a majority of the votes
124-13 cast at the election do not favor issuance of the bonds or notes,
124-14 the bonds or notes may not be issued.
124-15 SECTION 11. Section 53.040, Water Code, is amended to read
124-16 as follows:
124-17 Sec. 53.040. Elected Supervisors Take Office. If the
124-18 election results in a division of the district, the five candidates
124-19 receiving the most votes in each new district shall be declared
124-20 elected. They shall immediately qualify in accordance with Section
124-21 49.055 <by taking the constitutional oath of office and shall file
124-22 the oath with the county clerk>.
124-23 SECTION 12. Section 53.042, Water Code, is amended to read
124-24 as follows:
124-25 Sec. 53.042. Newly Elected Supervisors--Term of Office. The
125-1 newly elected supervisors hold office until the new district's next
125-2 supervisors election <first general election and then until their
125-3 successors are elected and have qualified>.
125-4 SECTION 13. Section 53.062, Water Code, is amended to read
125-5 as follows:
125-6 Sec. 53.062. Board of Supervisors. A district created under
125-7 this chapter is governed by a board of five elected supervisors.
125-8 <Specific provisions for the election of supervisors are found in
125-9 Section 53.021, Section 53.086, and Section 53.0861 of this code.>
125-10 SECTION 14. Section 53.088, Water Code, is amended to read
125-11 as follows:
125-12 Sec. 53.088. Status of the District. <(a)> A district is:
125-13 (1) a governmental agency;
125-14 (2) a body politic and corporate; and
125-15 (3) a defined district within the meaning of Article
125-16 XVI, Section 59, of the Texas Constitution.
125-17 <(b) A district may, through its board, sue and be sued in
125-18 any court of this state in the name of the district. All courts of
125-19 this state shall take judicial notice of the creation of a
125-20 district. A district shall contract and be contracted with in the
125-21 name of the district.>
125-22 SECTION 15. Section 53.172, Water Code, is amended to read
125-23 as follows:
125-24 Sec. 53.172. Ordering Bond Election. After the creation of
125-25 a district and the qualification of the supervisors, the board may
126-1 order an election in the district to authorize a bond issue. <The
126-2 board shall set the day for the election, which must be held during
126-3 the period beginning on the 20th day and ending with the 30th day
126-4 after the day of the order.> At this election, the board shall
126-5 submit only a proposition authorizing the issuance of bonds and the
126-6 levy of a tax to pay the bonds. The ballots shall be printed to
126-7 allow for voting for or against the proposition: "The issuance of
126-8 bonds and the levy of taxes to pay the bonds."
126-9 SECTION 16. Section 54.025, Water Code, is amended to read
126-10 as follows:
126-11 Sec. 54.025. Qualification of Temporary Directors. After a
126-12 district has been organized, each temporary director shall execute
126-13 a <his> bond in accordance with the provisions of Section 49.055
126-14 <54.116 of this code> and shall take the <his> oath of office, and
126-15 the board shall meet and organize.
126-16 SECTION 17. Section 54.036, Water Code, is amended to read
126-17 as follows:
126-18 Sec. 54.036. Directors to Continue Serving. The existing
126-19 board of a district converted to a municipal utility district under
126-20 the provisions of this chapter shall continue to serve as the board
126-21 of the converted district <until the first Saturday in April
126-22 following conversion of the district, at which time five directors
126-23 shall be elected to serve for such period of time and in the same
126-24 manner as provided in Section 54.029 of this code for directors
126-25 first elected for a district>.
127-1 SECTION 18. Section 54.203, Water Code, is amended to read
127-2 as follows:
127-3 Sec. 54.203. MUNICIPAL Solid Waste. A district is
127-4 authorized to purchase, construct, acquire, own, operate, maintain,
127-5 repair, improve, extend, or establish a municipal solid waste
127-6 collection and disposal system, including recycling, inside and
127-7 outside the district and make proper charges for it. A district
127-8 may require use of such services as a condition for receiving other
127-9 district services. A district may enter into an exclusive contract
127-10 with a private entity to provide such services to all land and
127-11 persons within its boundaries.
127-12 SECTION 19. Subsection (a), Section 54.729, Water Code, is
127-13 amended to read as follows:
127-14 (a) After the board of each district has agreed on the terms
127-15 and conditions of consolidation, which may include the assumption
127-16 by each district of the <other district's> bonds, notes, or other
127-17 obligations and voted but unissued bonds of the other consolidating
127-18 districts payable in whole or in part from taxation, the levy of
127-19 taxes to pay for the bonds, and adoption of a name for the
127-20 consolidated district, the board shall order an election in each
127-21 district to determine whether the districts should be consolidated.
127-22 SECTION 20. Subsection (a), Section 54.730, Water Code, is
127-23 amended to read as follows:
127-24 (a) After two or more districts are consolidated, they
127-25 become one district and are governed as one district, except for
128-1 the payment of debts created before consolidation if the conditions
128-2 of consolidation do not provide for the assumption by each district
128-3 of the <other's> bonds, notes, or other obligations and voted but
128-4 unissued bonds of the other consolidating districts.
128-5 SECTION 21. Section 54.732, Water Code, is amended to read
128-6 as follows:
128-7 Sec. 54.732. ASSESSMENT AND COLLECTION OF TAXES. After
128-8 consolidation, the district shall assess and collect taxes on
128-9 property in the original districts to pay debts created by the
128-10 original districts unless each district has assumed the <other
128-11 district's> bonds, notes, or other indebtedness payable in whole or
128-12 in part from taxation of the other consolidating districts.
128-13 SECTION 22. Section 54.733, Water Code, is amended to read
128-14 as follows:
128-15 Sec. 54.733. VOTED BUT UNISSUED BONDS. In the event any
128-16 consolidating <either> district has voted but unissued bonds
128-17 payable in whole or in part from taxation and the consolidated
128-18 district assumed the voted but unissued bonds and the consolidated
128-19 district was authorized to levy taxes to pay for the bonds, then
128-20 the consolidated district shall be authorized to issue the voted
128-21 but unissued bonds in the name of the consolidated district and
128-22 levy a uniform tax on all taxable property in the consolidated
128-23 district to pay for the bonds.
128-24 SECTION 23. Chapter 54, Water Code, is amended by adding
128-25 Sections 54.739 through 54.747 to read as follows:
129-1 Sec. 54.739. Substituting Land of Equal Acreage and Value.
129-2 After the district is organized and acquires facilities with which
129-3 to function for the purposes for which it was organized, and votes,
129-4 issues and sells bonds for such purposes, land within the district
129-5 boundaries subject to taxation that does not need or utilize the
129-6 services of the district may be excluded and other land not within
129-7 the boundaries of the district may be included within the
129-8 boundaries of the district as provided by the provisions of this
129-9 section and Sections 54.741 through 54.748 subject to commission
129-10 approval.
129-11 Sec. 54.740. Requisites for Application for Exclusion. An
129-12 owner of land in the district not receiving services from the
129-13 district may apply for its exclusion from the district boundaries
129-14 if all taxes levied and assessed by the district on the land to be
129-15 excluded have been fully paid. The application shall set forth
129-16 facts concerning the land proposed for exclusion, including
129-17 evidence of the reasonable market value of the land, and state that
129-18 the other requisites for the exclusion of the land and substitution
129-19 of other land have been fulfilled or will be fulfilled at the
129-20 hearing on the application. The application shall be verified and
129-21 acknowledged in a recordable form as conveyances of real property.
129-22 Sec. 54.741. Inclusion of Substitute Land Required. An
129-23 application for exclusion can only be considered by the board if an
129-24 application is filed by an owner of other land lying outside the
129-25 boundaries of the district seeking inclusion of land that can be
130-1 served in a practical manner by the district of at least equal
130-2 value to the land proposed for exclusion. Such land must be
130-3 included within the district boundaries and taxing jurisdiction of
130-4 the district simultaneously with the exclusion of the land proposed
130-5 for exclusion. Such included land must be of sufficient acreage to
130-6 avoid an impairment of the security for payment of voted and issued
130-7 bonds and any other contract obligations payable or secured, in
130-8 whole or in part, from ad valorem taxes or revenues of the
130-9 district.
130-10 Sec. 54.742. Application for Inclusion. The application
130-11 submitted by an owner of land proposed for inclusion shall set
130-12 forth that the owner of the new land assumes the payment of all
130-13 taxes, assessments, and fees levied on the land and assessed by the
130-14 district after the date the land is included in the district. The
130-15 application shall also set forth an agreement by the owner of the
130-16 land proposed for inclusion that the land will be subject to future
130-17 taxes for bond tax and other assessments and fees levied and
130-18 assessed by the district and be subject to the same liens and
130-19 provisions and statutes governing all other lands in the district
130-20 as though the land had been incorporated originally in the
130-21 district. The application for inclusion shall be verified and
130-22 acknowledged in a recordable form as conveyances of real property.
130-23 Sec. 54.743. Notice of Hearing and Hearing Procedures. The
130-24 board shall give notice of the hearing on the applications for
130-25 exclusion and inclusion in conformity with the notice and hearing
131-1 requirements otherwise applicable to exclusions or additions of
131-2 land. The board at such hearing shall hear all interested parties
131-3 and all evidence in connection with the applications.
131-4 Sec. 54.744. Impairment of Security. For purposes of the
131-5 board's consideration of the applications, the lands proposed for
131-6 inclusion shall be deemed to be sufficient to avoid an impairment
131-7 of the security for payment of obligations of the district if:
131-8 (1) according to the county tax rolls, the taxable
131-9 value of such included lands equals or exceeds the taxable value of
131-10 the excluded lands;
131-11 (2) the estimated costs of providing district
131-12 facilities and services to such included lands is equal to or less
131-13 than the estimated costs of providing district facilities and
131-14 services to the excluded lands; and
131-15 (3) the district's outstanding bonds or contract
131-16 obligations are payable in whole or in part by a pledge of net
131-17 revenues from the ownership or operation of the district's
131-18 facilities, and the projected net revenues to be derived from the
131-19 lands to be included during the succeeding 12-month period, as
131-20 determined by the district's engineer, equals or exceeds the
131-21 projected net revenues that would otherwise have been derived from
131-22 the lands to be excluded during the same period.
131-23 Sec. 54.745. Board's Resolution to Substitute. If the board
131-24 finds that all the conditions provided for the exclusion of land
131-25 and inclusion of other land in the district exist and that it is in
132-1 the best interest of the district to grant such applications, it
132-2 may adopt and enter in its minutes a resolution and order excluding
132-3 all or part of the land proposed for exclusion and including all or
132-4 part of the land proposed for inclusion. Prior to the effective
132-5 date of the exclusion and inclusion of lands, the district shall
132-6 have received payment of all fees, charges, assessments, taxes,
132-7 together with any associated penalties and interest due or overdue
132-8 in respect to the lands excluded, and if no ad valorem taxes or
132-9 fees have yet been established by the district for the current
132-10 year, an amount determined by the district to equal the estimated
132-11 ad valorem taxes and standby fees to be established by the district
132-12 for the current year, prorated to the date of exclusion with
132-13 respect to such excluded lands, shall also be paid.
132-14 Sec. 54.746. Liability of Excluded and Included Land. The
132-15 land excluded from the district is free from any lien or liability
132-16 created on the excluded land by reason of its having been included
132-17 in the district. Land included in the district is subject to all
132-18 laws, liens, and provisions governing the district and the land in
132-19 the district.
132-20 Sec. 54.747. Service to Included Land. The district has the
132-21 same right and obligation to furnish services to the included land
132-22 that it previously had to furnish to the excluded land.
132-23 SECTION 24. Section 55.101, Water Code, is amended to read
132-24 as follows:
132-25 Sec. 55.101. Board of Directors. The governing body of a
133-1 district is a <the> board of five directors.
133-2 SECTION 25. Section 55.102, Water Code, is amended to read
133-3 as follows:
133-4 Sec. 55.102. Qualifications of Directors. To be qualified
133-5 for election as a director, a person must be a resident of the
133-6 state, own land subject to taxation in the district, and be at
133-7 least 18 <more than 21> years of age at the time of the election.
133-8 Section 49.052 does not apply to a district governed by this
133-9 chapter whose principal purpose is providing water for irrigation.
133-10 SECTION 26. Section 55.721, Water Code, is amended to read
133-11 as follows:
133-12 Sec. 55.721. Exclusion of Nonagricultural and Nonirrigable
133-13 Land From District. Land located in the district which is
133-14 classified as nonagricultural and nonirrigable may be excluded from
133-15 the district in the manner provided in Subchapter J, Chapter 49
133-16 <Sections 51.702-51.713 of this code>.
133-17 SECTION 27. Section 56.064, Water Code, is amended to read
133-18 as follows:
133-19 Sec. 56.064. Election of Directors. (a) On petition of a
133-20 majority of the real property taxpayers of a district requesting an
133-21 election of district directors, the commissioners court shall
133-22 immediately order an election to be held at the earliest legal
133-23 time. The election shall be held as other elections under Chapter
133-24 49 <this chapter>.
133-25 (b) <The commissioners court shall declare the three persons
134-1 receiving the highest number of votes elected, and if two or more
134-2 persons tie for the third highest vote, the commissioners court
134-3 shall elect the third director from those tying for the place.>
134-4 <(c) On qualifying for office, directors elected under this
134-5 section are the legal and rightful directors of the district within
134-6 the full meaning and purpose of this law.>
134-7 <(d) The first elected directors of the district hold office
134-8 until the next regular directors' election, and subsequent
134-9 directors of the district are elected every four years except as
134-10 provided by Subsection (e) of this section.>
134-11 <(e)> The first elected directors of the districts in
134-12 Calhoun, Matagorda, and Victoria Counties hold office until May 15
134-13 of the next succeeding odd-numbered year. Subsequent directors of
134-14 the district are elected every two years on the first Saturday in
134-15 May in each odd-numbered year, for a term of two years beginning on
134-16 May 15 following the election.
134-17 SECTION 28. Section 57.053, Water Code, is amended to read
134-18 as follows:
134-19 Sec. 57.053. Term of Office, Removal, and Succession.
134-20 (a) <Each director shall hold office for a period of two years and
134-21 until his successor is appointed and has qualified.>
134-22 <(b)> A vacancy on the board shall be filled by majority
134-23 vote of the commissioners court <of jurisdiction>, and the court
134-24 shall appoint directors so that the board will always have full
134-25 membership.
135-1 (b) <(c)> The commissioners court <of jurisdiction>, by
135-2 majority vote, may remove an appointed <a> member of the board.
135-3 SECTION 29. Section 57.060, Water Code, is amended to read
135-4 as follows:
135-5 Sec. 57.060. Petition. Before an election is held under
135-6 Section 57.057 <of this code>, a petition, signed by at least 100
135-7 <25> electors in the district <each county commissioners precinct>
135-8 who are qualified to vote <at an election for directors if a
135-9 countywide election, or by 50 electors if less than countywide>,
135-10 shall be presented to the district <county judge> requesting that
135-11 an election be held in the district to determine whether or not
135-12 directors for the district should be elected and, if so, to elect
135-13 directors to serve until the next regular director election <for
135-14 state and county officers>. The petition shall include the name of
135-15 one or more nominees for each director's position.
135-16 SECTION 30. Section 57.061, Water Code, is amended to read
135-17 as follows:
135-18 Sec. 57.061. Procedure for Election. <(a)> After the
135-19 petition is presented under Section 57.060 <of this code>, the
135-20 board <county judge> shall order an election <to determine the
135-21 propositions presented in the petition. The election shall be held
135-22 not less than 30 days from the date of the order calling the
135-23 election, or the propositions may be determined at a general
135-24 election>.
135-25 <(b) The election order shall designate the polling places
136-1 which shall be the same as the polling places used in the last
136-2 general election in the county, if a countywide election is held.>
136-3 <(c) The county clerk shall issue notice of the election and
136-4 shall have the notice published in a newspaper of general
136-5 circulation in the county once a week for two consecutive weeks.
136-6 The first publication must be not less than 14 days before the day
136-7 of the election.>
136-8 <(d) The sheriff shall post a copy of the notice at least 20
136-9 days before the day of the election at each polling place
136-10 designated in the election order.>
136-11 <(e) The district shall pay all expenses incident to calling
136-12 and holding the election.>
136-13 SECTION 31. Section 57.207, Water Code, is amended to read
136-14 as follows:
136-15 Sec. 57.207. Declaring Result of Election.
136-16 <(a) Immediately after an election under this chapter, the
136-17 officials holding the election shall return the result to the
136-18 commissioners court of jurisdiction.>
136-19 <(b) The election officials shall return the ballot boxes to
136-20 the clerk of the commissioners court of jurisdiction, who shall
136-21 safely keep the boxes and deliver them with the returns of the
136-22 election to the commissioners court of jurisdiction at its next
136-23 regular or special session.>
136-24 <(c) The commissioners court of jurisdiction at its first
136-25 session after the election shall canvass the vote and the returns.
137-1 If the proposition submitted has been approved by a majority of the
137-2 electors of the district voting at the election, the commissioners
137-3 court of jurisdiction shall declare the result in favor of the
137-4 proposition, but if the proposition is not approved by the electors
137-5 of the district, the commissioners court of jurisdiction shall
137-6 declare the result to be against the proposition.>
137-7 <(d)> The board <commissioners court of jurisdiction> shall
137-8 enter an order declaring the election result in its minutes.
137-9 SECTION 32. Section 58.072, Water Code, is amended to read
137-10 as follows:
137-11 Sec. 58.072. QUALIFICATIONS. To be qualified for election
137-12 as a director, a person must be a resident of the state, be the
137-13 owner of record of fee simple title to land in the district, <and>
137-14 be at least 18 years of age, and owe no delinquent taxes or
137-15 assessments to the district. Section 49.052 does not apply to a
137-16 district governed by this chapter.
137-17 SECTION 33. Subchapter A, Chapter 60, Water Code, is amended
137-18 by adding Section 60.002 to read as follows:
137-19 Sec. 60.002. AUDIT. Subchapter G, Chapter 49, related to
137-20 audit of districts, shall apply to districts governed by this
137-21 chapter.
137-22 SECTION 34. Subchapter M, Chapter 60, Water Code, is amended
137-23 by adding Section 60.350 to read as follows:
137-24 Sec. 60.350. BONDS. Section 49.181, related to the
137-25 authority of commission over issuance of district bonds, and
138-1 Section 49.183, related to bond sales, shall apply to bonds
138-2 supported by taxes and issued by districts governed by this
138-3 chapter.
138-4 SECTION 35. Section 65.103, Water Code, is amended to read
138-5 as follows:
138-6 Sec. 65.103. Election of Directors; Terms of Office.
138-7 (a) The persons receiving the highest number of votes at each
138-8 election shall serve as directors of the district.
138-9 (b) The terms of the directors may run concurrently, or may
138-10 be staggered, but in any event, the term of office of a director
138-11 may not exceed three years.
138-12 (c) The method for determining the initial terms for each of
138-13 the directors constituting the initial board shall be determined by
138-14 the temporary directors, and the terms must be clearly stated on
138-15 the ballot for the confirmation and directors' election. At
138-16 subsequent elections in each following year in which there is an
138-17 election, the election must be held on the same uniform election
138-18 date as the confirmation and directors' election, and the terms of
138-19 the directors being elected must be stated on the ballot.
138-20 <(d) The election of directors must be held in a district on
138-21 one of the dates provided by Section 9b, Texas Election Code
138-22 (Article 2.01b, Vernon's Texas Election Code).>
138-23 <(e) The permanent directors may assign a position number to
138-24 each director's office, and each director subsequently shall be
138-25 elected by position and not at large.>
139-1 SECTION 36. Chapter 65, Water Code, is amended by adding
139-2 Section 65.235 to read as follows:
139-3 Sec. 65.235. Prohibition on Assessment or Collection of
139-4 Taxes. Section 49.107 does not apply to a district created under
139-5 this chapter.
139-6 SECTION 37. Section 66.101, Water Code, is amended to read
139-7 as follows:
139-8 Sec. 66.101. Board of Directors. A district shall be
139-9 governed by a board of directors composed of five members, who are
139-10 elected as provided in Chapter 49 <by this chapter>.
139-11 SECTION 38. Subsection (b), Section 66.310, Water Code, is
139-12 amended to read as follows:
139-13 (b) Bonds issued by a district and projects and improvements
139-14 of the district that are provided through the issuance of bonds are
139-15 governed by Chapter 49 <Sections 54.516 and 54.517 of this code>.
139-16 SECTION 39. Chapter 50, Water Code, is repealed, except that
139-17 Subchapter H is continued in effect for the sole purpose of the
139-18 administration and operation of contracts created or issued under
139-19 those laws.
139-20 SECTION 40. The following sections of Chapter 51, Water
139-21 Code, are repealed: Sections 51.033, 51.034, 51.073, 51.074,
139-22 51.077 through 51.084, 51.0851, 51.087, 51.088, 51.089, 51.091
139-23 through 51.101, 51.122, 51.123, 51.124, 51.126, 51.131, 51.132,
139-24 51.136, 51.137, 51.138, 51.140 through 51.146, 51.149, 51.183,
139-25 51.191, 51.192, 51.193, 51.221 through 51.224, 51.231 through
140-1 51.279, 51.354 through 51.363, 51.371 through 51.374, 51.412,
140-2 51.416, 51.417, 51.418, 51.421, 51.422, 51.4321, 51.4371, 51.691
140-3 through 51.701, 51.714 through 51.731, and 51.737 through 51.747.
140-4 SECTION 41. The following sections of Chapter 52, Water
140-5 Code, are repealed: Sections 52.104, 52.107 through 52.114,
140-6 52.116, 52.117, 52.118, 52.119, 52.120, 52.121, 52.157, 52.251,
140-7 52.252, 52.253, 52.259 through 52.262, and 52.297.
140-8 SECTION 42. The following sections of Chapter 53, Water
140-9 Code, are repealed: Sections 53.020, 53.022, 53.023, 53.025
140-10 through 53.028, 53.035 through 53.039, 53.064, 53.065, 53.067
140-11 through 53.070, 53.0721, 53.076, 53.077, 53.084 through 53.087,
140-12 53.089, 53.090, 53.105, 53.106, 53.108 through 53.111, 53.114,
140-13 53.117 through 53.120, 53.123, 53.124, 53.125, 53.141 through
140-14 53.144, 53.147, 53.148, 53.173, 53.174, 53.175, 53.1791, 53.197,
140-15 53.198, and 53.231 through 53.273.
140-16 SECTION 43. The following sections of Chapter 54, Water
140-17 Code, are repealed: Sections 54.026 through 54.029, 54.103 through
140-18 54.126, 54.202, 54.204, 54.209 through 54.233, 54.301 through
140-19 54.312, 54.506, 54.507(a), 54.509, 54.5121, 54.513, 54.516, 54.517,
140-20 54.519, 54.701 through 54.727.
140-21 SECTION 44. The following sections of Chapter 55, Water
140-22 Code, are repealed: Sections 55.030, 55.033 through 55.036,
140-23 55.052, 55.104, 55.105, 55.106, 55.109, 55.111 through 55.116,
140-24 55.118 through 55.128, 55.162, 55.164, 55.168 through 55.184,
140-25 55.189, 55.190, 55.191, 55.199, 55.203, 55.252, 55.291 through
141-1 55.304, 55.331, 55.423 through 55.430, 55.451, 55.453, 55.492
141-2 through 55.496, 55.503, 55.506, 55.711 through 55.720, and 55.722
141-3 through 55.749.
141-4 SECTION 45. The following sections of Chapter 56, Water
141-5 Code, are repealed: Sections 56.027 through 56.031, 56.062,
141-6 56.063, 56.065 through 56.068, 56.076 through 56.081, 56.083,
141-7 56.113, 56.114, 56.119, 56.129 through 56.134, 56.136, 56.138,
141-8 56.139, 56.183, 56.184, 56.2045, and 56.714 through 56.725.
141-9 SECTION 46. The following sections of Chapter 57, Water
141-10 Code, are repealed: Sections 57.052, 57.054, 57.055, 57.056,
141-11 57.062 through 57.070, 57.095 through 57.099, 57.106, 57.107,
141-12 57.109, 57.110, 57.112 through 57.115, 57.119, 57.120, 57.171
141-13 through 57.174, 57.178, 57.202 through 57.206, 57.2075, 57.209,
141-14 57.210, 57.211, 57.276, 57.277, and 57.278.
141-15 SECTION 47. The following sections of Chapter 58, Water
141-16 Code, are repealed: Sections 58.033, 58.034, 58.073, 58.074
141-17 through 58.083, 58.085 through 58.088, 58.090 through 58.100,
141-18 58.123, 58.124, 58.131, 58.132, 58.135, 58.139 through 58.149,
141-19 58.151, 58.152, 58.169, 58.179, 58.187, 58.188, 58.189, 58.221
141-20 through 58.224, 58.261, 58.317, 58.354 through 58.362, 58.442,
141-21 58.451, 58.452, 58.601, 58.691 through 58.701, and 58.714 through
141-22 58.725.
141-23 SECTION 48. The following sections of Chapter 65, Water
141-24 Code, are repealed: Sections 65.024 through 65.029, 65.104 through
141-25 65.122, 65.202, 65.204, 65.209 through 65.234, 65.301, 65.401
142-1 through 65.409, 65.509, 65.512, 65.514, and 65.701 through 65.722.
142-2 SECTION 49. The following sections of Chapter 66, Water
142-3 Code, are repealed: Sections 66.022 through 66.029, 66.103 through
142-4 66.117, 66.119, 66.120, 66.203, 66.204, 66.205, 66.208 through
142-5 66.215, 66.301, 66.302, 66.305 through 66.309, 66.312, and 66.323.
142-6 SECTION 50. (a) This Act takes effect as provided by this
142-7 section.
142-8 (b) Subsection (b), Section 49.103, Water Code, as added by
142-9 this Act, shall govern all elections held after December 31, 1995.
142-10 Directors elected at any election held between January 1, 1992, and
142-11 April 30, 1992, shall serve until the January, 1996, election.
142-12 Directors elected at any election held between May 1, 1992, and
142-13 December 31, 1992, shall serve until the May, 1996, election.
142-14 Directors elected at any election held between January 1, 1993, and
142-15 April 30, 1993, shall serve until the January, 1996, election.
142-16 Directors elected at any election held between May 1, 1993, and
142-17 July 31, 1993, shall serve until the May, 1996, election.
142-18 Directors elected at any election held between August 1, 1993, and
142-19 December 31, 1993, shall serve until the May, 1998, election.
142-20 Directors elected at any election held between January 1, 1994, and
142-21 April 30, 1994, shall serve until the January, 1998, election.
142-22 Directors elected at any election held between May 1, 1994, and
142-23 December 31, 1994, shall serve until the May, 1998, election.
142-24 Directors elected at any election held between January 1, 1995, and
142-25 April 30, 1995, shall serve until the January, 1998, election.
143-1 Directors elected at any election held between May 1, 1995, and
143-2 July 31, 1995, shall serve until the May, 1998, election.
143-3 Directors elected at any election held between August 1, 1995, and
143-4 December 31, 1995, shall serve until the May, 1998, election.
143-5 Directors whose terms expire prior to the election date set by this
143-6 section shall continue to serve until their successors have been
143-7 elected and qualified.
143-8 (c) All other provisions of this Act take effect September
143-9 1, 1995.
143-10 SECTION 51. The importance of this legislation and the
143-11 crowded condition of the calendars in both houses create an
143-12 emergency and an imperative public necessity that the
143-13 constitutional rule requiring bills to be read on three several
143-14 days in each house be suspended, and this rule is hereby suspended,
143-15 and that this Act take effect and be in force according to its
143-16 terms, and it is so enacted.