74R12528 E
By Armbrister S.B. No. 626
Substitute the following for S.B. No. 626:
By Counts C.S.S.B. No. 626
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to certain laws governing water districts and nonprofit
1-3 water or sewer service corporations; creating penalties; granting
1-4 authority to issue bonds; granting the power of eminent domain.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1.002, Water Code, is amended to read as
1-7 follows:
1-8 Sec. 1.002. Construction of Code. (a) The Code
1-9 Construction Act (Chapter 311, Government Code) applies to the
1-10 construction of each provision in this code, except as otherwise
1-11 expressly provided by this code.
1-12 (b) In this code:
1-13 (1) a reference to a title, chapter, or section
1-14 without further identification is a reference to a title, chapter,
1-15 or section of this code; and
1-16 (2) a reference to a subtitle, subchapter, subsection,
1-17 subdivision, paragraph, or other numbered or lettered unit without
1-18 further identification is a reference to a unit of the next larger
1-19 unit of this code in which the reference appears.
1-20 (c) A reference in a law to a statute or part of a statute
1-21 revised by this code is considered to be a reference to the part of
1-22 this code that revises that statute or part of the statute.
1-23 SECTION 2. Title 4, Water Code, is amended by adding Chapter
1-24 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.
2-9 (2) "Commission" means the Texas Natural Resource
2-10 Conservation Commission.
2-11 (3) "Board" means the governing body of a district.
2-12 (4) "Executive director" means the executive director
2-13 of the commission.
2-14 (5) "Water supply corporation" means a nonprofit water
2-15 supply or sewer service corporation created or operating under
2-16 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
2-17 (Article 1434a, Vernon's Texas Civil Statutes).
2-18 (6) "Director" means either a supervisor or director
2-19 appointed or elected to the board.
2-20 (7) "Municipal solid waste" has the same meaning
2-21 assigned by Section 361.003, Health and Safety Code.
2-22 (8) "Special water authority" means a river authority
2-23 as that term is defined in Section 30.003, or a district created by
2-24 a special Act of the legislature that:
2-25 (A) is a provider of water or wastewater service
2-26 to two or more municipalities; and
2-27 (B) is governed by a board of directors
3-1 appointed or designated in whole or in part by the governor, the
3-2 Texas Water Development Board, or municipalities within its service
3-3 area.
3-4 (9) "Potable water" means water that has been treated
3-5 for public drinking water supply purposes.
3-6 (b) These definitions are for use in this chapter only, and
3-7 have no effect on any other statute or code unless specifically
3-8 referenced by that statute or code.
3-9 Sec. 49.002. APPLICABILITY. This chapter applies to all
3-10 general and special law districts to the extent that the provisions
3-11 of this chapter do not directly conflict with a provision in any
3-12 other chapter of this code or any Act creating or affecting a
3-13 special law district. In the event of such conflict, the specific
3-14 provisions in such other chapter or Act shall control.
3-15 Sec. 49.003. PENALTY. A district that fails to comply with
3-16 the filing provisions of this code may be subject to a civil
3-17 penalty of up to $100 per day for each day the district wilfully
3-18 continues to violate these provisions after receipt of written
3-19 notice of violation from the executive director by certified mail,
3-20 return receipt requested. The state may sue to recover the
3-21 penalty.
3-22 Sec. 49.004. PENALTY FOR VIOLATION OF DISTRICT RULES. (a)
3-23 The board may set reasonable civil penalties for the breach of any
3-24 rule of the district that shall not exceed the jurisdiction of a
3-25 justice court as provided by Section 27.031, Government Code.
3-26 (b) A penalty under this section is in addition to any other
3-27 penalty provided by the law of this state and may be enforced by
4-1 complaints filed in the appropriate court of jurisdiction in the
4-2 county in which the district's principal office or meeting place is
4-3 located.
4-4 (c) If the district prevails in any suit to enforce its
4-5 rules, it may, in the same action, recover reasonable fees for
4-6 attorneys, expert witnesses, and other costs incurred by the
4-7 district before the court. The amount of the attorney's fees shall
4-8 be fixed by the court.
4-9 (Sections 49.005-49.009 reserved for expansion
4-10 SUBCHAPTER B. CREATION
4-11 Sec. 49.010. ORDER OR ACT CREATING DISTRICT. Within 60 days
4-12 after the date a district is created, the district shall file with
4-13 the executive director a certified copy of the order or legislative
4-14 Act creating the district or authorizing its creation, unless the
4-15 district was created by order of the commission.
4-16 (Sections 49.011-49.050 reserved for expansion
4-17 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
4-18 Sec. 49.051. BOARD OF DIRECTORS. A district shall be
4-19 governed by its board, the number of which is otherwise provided by
4-20 law.
4-21 Sec. 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
4-22 is disqualified from serving as a member of a board of a district
4-23 that includes less than all the territory in at least one county
4-24 and which, if located within the corporate area of a city or
4-25 cities, includes within its boundaries less than 75 percent of the
4-26 incorporated area of the city or cities, if that person:
4-27 (1) is related within the third degree of affinity or
5-1 consanguinity to a developer of property in the district, any other
5-2 member of the board, or the manager, engineer, attorney, or other
5-3 person providing professional services to the district;
5-4 (2) is an employee of any developer of property in the
5-5 district or any director, manager, engineer, attorney, or other
5-6 person providing professional services to the district or a
5-7 developer of property in the district in connection with the
5-8 district or property located in the district;
5-9 (3) is a developer of property in the district;
5-10 (4) is serving as an attorney, consultant, engineer,
5-11 manager, architect, or in some other professional capacity for the
5-12 district or a developer of property in the district in connection
5-13 with the district or property located in the district;
5-14 (5)(A) is a party to a contract with or along with the
5-15 district except for the purchase of public services furnished by
5-16 the district to the public generally; or
5-17 (B) is a party to a contract with or along with
5-18 a developer of property in the district relating to the district or
5-19 to property within the district, other than a contract limited
5-20 solely to the purpose of purchasing or conveying real property in
5-21 the district for the purpose of either establishing a permanent
5-22 residence, establishing a commercial business within the district,
5-23 or qualifying as a director; or
5-24 (6) during the term of office, fails to maintain the
5-25 qualifications required by law to serve as a director.
5-26 (b) Within 60 days after the board determines a relationship
5-27 or employment exists which constitutes a disqualification under
6-1 Subsection (a), it shall replace the person serving as a member of
6-2 the board with a person who would not be disqualified.
6-3 (c) Any person who wilfully occupies an office as a member
6-4 of a board and exercises the powers and duties of that office when
6-5 disqualified under the provisions of Subsection (a) is guilty of a
6-6 misdemeanor and, on conviction, shall be fined not less than $100
6-7 nor more than $1,000.
6-8 (d) As used in this section, "developer of property in the
6-9 district" means any person who owns land located within a district
6-10 covered under this section and who has divided or proposes to
6-11 divide the land into two or more parts for the purpose of laying
6-12 out any subdivision or any tract of land or any addition to any
6-13 town or city, or for laying out suburban lots or building lots, or
6-14 any lots, streets, alleys, or parks or other portions intended for
6-15 public use, or the use of purchasers or owners of lots fronting
6-16 thereon or adjacent thereto.
6-17 (e) Any rights obtained by any third party through official
6-18 action of a board covered by this section are not impaired or
6-19 affected by the disqualification under this section of any member
6-20 of the board to serve, provided that the third party had no
6-21 knowledge at the time the rights were obtained of the fact that the
6-22 member of the board was disqualified to serve.
6-23 (f) This section shall not apply to special water
6-24 authorities, districts defined in Section 49.181(h)(4), or a
6-25 district where the principal function of the district is to provide
6-26 irrigation water to agricultural lands or to provide nonpotable
6-27 water for any purpose.
7-1 (g) A board by unanimous vote of its remaining members may
7-2 remove a board member only if that board member has missed one-half
7-3 or more of the regular meetings scheduled during the prior 12
7-4 months. Any board member so removed may file a written appeal with
7-5 the commission within 30 days after receiving written notice of the
7-6 board action. The commission may reinstate a removed director if
7-7 the commission finds that the removal was unwarranted under the
7-8 circumstances, including the reasons for absences, the time and
7-9 place of the meetings missed, the business conducted at the
7-10 meetings missed, and any other facts or circumstances the
7-11 commission may deem relevant.
7-12 Sec. 49.053. QUORUM. A majority of the membership of the
7-13 board constitutes a quorum for any meeting, and a concurrence of a
7-14 majority of the entire membership of the board is sufficient for
7-15 transacting any business of the district. This section does not
7-16 apply to special water authorities.
7-17 Sec. 49.054. OFFICERS. (a) After a district is created and
7-18 the directors have qualified, the board shall meet, elect a
7-19 president, vice-president, secretary, and any other officers or
7-20 assistant officers as the board may deem necessary, and begin the
7-21 discharge of its duties.
7-22 (b) After each directors election, the board shall meet and
7-23 elect officers.
7-24 (c) The president is the chief executive officer of the
7-25 district, presides at all meetings of the board, and shall execute
7-26 all documents on behalf of the district. The vice-president shall
7-27 act as president in case of the absence or disability of the
8-1 president. The secretary is responsible for seeing that all
8-2 records and books of the district are properly kept and shall
8-3 attest the president's signature on all documents.
8-4 (d) The board may appoint another director, the general
8-5 manager, or any employee as assistant or deputy secretary to assist
8-6 the secretary, and any such person shall be entitled to certify as
8-7 to the authenticity of any record of the district, including but
8-8 not limited to all proceedings relating to bonds, contracts, or
8-9 indebtedness of the district.
8-10 (e) After any election or appointment of a director, a
8-11 district shall notify the executive director within 30 days after
8-12 the date of the election or appointment of the name and mailing
8-13 address of the director chosen and the date that director's term of
8-14 office expires. The executive director shall provide forms to the
8-15 district for such purpose.
8-16 (f) This section does not apply to special water
8-17 authorities.
8-18 Sec. 49.055. SWORN STATEMENT, BOND, AND OATH OF OFFICE. (a)
8-19 As soon as practicable after a director is elected or appointed,
8-20 that director shall make the sworn statement prescribed by the
8-21 constitution for public office.
8-22 (b) As soon as practicable after a director has made the
8-23 sworn statement, and before beginning to perform the duties of
8-24 office, that director shall take the oath of office prescribed by
8-25 the constitution for public officers.
8-26 (c) Before beginning to perform the duties of office, each
8-27 director shall execute a bond for $10,000 payable to the district
9-1 and conditioned on the faithful performance of that director's
9-2 duties. All bonds of the directors shall be approved by the board
9-3 and paid for by the district.
9-4 (d) The sworn statement, bond, and oath shall be filed with
9-5 the district and retained in its records. A duplicate original of
9-6 the sworn statement and the oath shall also be filed with the
9-7 secretary of state within 10 days after their execution and need
9-8 not be filed before the new director begins to perform the duties
9-9 of office.
9-10 (e) This section does not apply to special water
9-11 authorities.
9-12 Sec. 49.056. GENERAL MANAGER. (a) The board may employ or
9-13 contract with a person to perform such services as general manager
9-14 for the district as the board may from time to time specify. The
9-15 board may delegate to the general manager full authority to manage
9-16 and operate the affairs of the district subject only to orders of
9-17 the board.
9-18 (b) The board may delegate to the general manager the
9-19 authority to employ all persons necessary for the proper handling
9-20 of the business and operation of the district and to determine the
9-21 compensation to be paid all employees other than the general
9-22 manager.
9-23 (c) Except as provided by Section 49.052, a director may be
9-24 employed as general manager of the district, but the compensation
9-25 of a general manager who also serves as a director shall be
9-26 established by the other directors.
9-27 Sec. 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
10-1 be responsible for the management of all the affairs of the
10-2 district. The district shall employ or contract with all persons,
10-3 firms, partnerships, corporations, or other entities, public or
10-4 private, deemed necessary by the board for the conduct of the
10-5 affairs of the district, including, but not limited to, engineers,
10-6 attorneys, financial advisors, operators, bookkeepers, tax
10-7 assessors and collectors, auditors, and administrative staff.
10-8 (b) The board shall adopt an annual budget. All district
10-9 employees are employed at the will of the district unless the
10-10 district and employee execute a written employment contract.
10-11 (c) The board shall set the compensation and terms for
10-12 consultants.
10-13 (d) In selecting attorneys, engineers, auditors, financial
10-14 advisors, or other professional consultants, the district shall
10-15 follow the procedures provided in Subchapter A, Chapter 2254,
10-16 Government Code (Professional Services Procurement Act).
10-17 (e) The board shall require an officer, employee, or
10-18 consultant who collects, pays, or handles any funds of the district
10-19 to furnish good and sufficient bond, payable to the district, in an
10-20 amount determined by the board to be sufficient to safeguard the
10-21 district. The bond shall be conditioned on the faithful
10-22 performance of that person's duties and on accounting for all funds
10-23 and property of the district. Such bond shall be signed or
10-24 endorsed by a surety company authorized to do business in the
10-25 state.
10-26 (f) The board may pay the premium on surety bonds required
10-27 of officials, employees, or consultants of the district out of any
11-1 available funds of the district, including proceeds from the sale
11-2 of bonds.
11-3 (g) The board may adopt bylaws to govern the affairs of the
11-4 district to perform its purposes. The board may, by resolution,
11-5 authorize its general manager or other employee to execute
11-6 documents on behalf of the district.
11-7 (h) The board shall also have the right to purchase all
11-8 materials, supplies, equipment, vehicles, and machinery needed by
11-9 the district to perform its purposes.
11-10 Sec. 49.058. CONFLICTS OF INTEREST. A director of a
11-11 district is subject to the provisions of Chapter 171, Local
11-12 Government Code, relating to the regulation of conflicts of
11-13 interest of officers of local governments.
11-14 Sec. 49.059. DISQUALIFICATION OF TAX ASSESSOR AND COLLECTOR.
11-15 (a) No person may serve as tax assessor and collector of a
11-16 district providing potable water or sewer utility services to
11-17 household users if that person:
11-18 (1) is related within the third degree of affinity or
11-19 consanguinity to any developer of property in the district, a
11-20 member of the board, or the manager, engineer, or attorney for the
11-21 district;
11-22 (2) is or was within two years immediately preceding
11-23 the assumption of assessment and collection duties with the
11-24 district an employee of any developer of property in the district
11-25 or any director, manager, engineer, or attorney for the district;
11-26 (3) owns an interest in or is employed by any
11-27 corporation organized for the purpose of tax assessment and
12-1 collection services, a substantial portion of the stock of which is
12-2 owned by a developer of property within the district or any
12-3 director, manager, engineer, or attorney for the district; or
12-4 (4) is directly or through a corporation developing
12-5 land in the district or is a director, engineer, or attorney for
12-6 the district.
12-7 (b) Within 60 days after the board determines a relationship
12-8 or employment exists which constitutes a disqualification under
12-9 Subsection (a), it shall replace the person serving as tax assessor
12-10 and collector with a person who would not be disqualified.
12-11 (c) Any person who wilfully violates the provisions of
12-12 Subsection (a) is guilty of a misdemeanor and on conviction shall
12-13 be fined not less than $100 nor more than $1,000.
12-14 (d) As used in this section, "developer of property in the
12-15 district" has the same meaning as in Section 49.052(d).
12-16 Sec. 49.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
12-17 is entitled to receive fees of office of not more than $100 a day
12-18 for each day the director actually spends performing the duties of
12-19 a director. The fees of office may not exceed $6,000 per annum
12-20 except for directors of a special water authority which is engaged
12-21 in the distribution and sale of electric energy to the public.
12-22 (b) Each director is also entitled to receive reimbursement
12-23 of actual expenses reasonably and necessarily incurred while
12-24 engaging in activities on behalf of the district.
12-25 (c) In order to receive fees of office and to receive
12-26 reimbursement for expenses, each director shall file with the
12-27 district a verified statement showing the number of days actually
13-1 spent in the service of the district and a general description of
13-2 the duties performed for each day of service.
13-3 (d) Section 49.002 notwithstanding, in all areas of conflict
13-4 the provisions of this section shall take precedence over all prior
13-5 statutory enactments. If the enactment of this section results in
13-6 an increase in the fees of office for any district, that district's
13-7 fees of office shall not increase unless the board adopts a
13-8 resolution authorizing payment of the higher fees.
13-9 Sec. 49.061. SEAL. The directors shall adopt a seal for the
13-10 district.
13-11 Sec. 49.062. OFFICES AND MEETING PLACES. (a) The board
13-12 shall designate from time to time and maintain one or more regular
13-13 offices for conducting the business of the district and maintaining
13-14 the records of the district. Such offices may be located either
13-15 inside or outside the district's boundaries as determined in the
13-16 discretion of the board.
13-17 (b) The board shall designate one or more places inside or
13-18 outside the district for conducting the meetings of the board. The
13-19 meeting place may be a private residence or office, provided that
13-20 the board, in its order establishing the meeting place, declares
13-21 the same to be a public place and invites the public to attend any
13-22 meeting of the board. If the board establishes a meeting place or
13-23 places outside the district, it shall give notice of the location
13-24 or locations by filing a true copy of the resolution establishing
13-25 the location or locations of the meeting place or places with the
13-26 commission and also by publishing notice of the location or
13-27 locations in a newspaper of general circulation in the district.
14-1 If the location of any of the meeting places outside the district
14-2 is changed, notice of the change shall be given in the same manner.
14-3 (c) After at least 25 qualified electors are residing in a
14-4 district, on written request of at least five of those electors,
14-5 the board shall designate a meeting place and hold meetings within
14-6 the district if it determines that the meeting place used by the
14-7 district deprives the residents of a reasonable opportunity to
14-8 attend district meetings. On the failure to designate the location
14-9 of the meeting place within the district, five electors may
14-10 petition the commission to designate a location. If it determines
14-11 that the meeting place used by the district deprives the residents
14-12 of a reasonable opportunity to attend district meetings, the
14-13 commission may designate a meeting place inside or outside the
14-14 district which is reasonably available to the public and require
14-15 that the meetings be held at such place. After the next election,
14-16 the board may designate different meeting places, including one
14-17 located outside the boundaries of the district.
14-18 (d) Two or more districts may designate and share offices
14-19 and meeting places. This section does not apply to special water
14-20 authorities.
14-21 Sec. 49.063. NOTICE OF MEETINGS. Notice of meetings of the
14-22 board shall be given as set forth in the open meetings law, Chapter
14-23 551, Government Code, except that if a district does not have a
14-24 meeting place within the district, the district shall post notice
14-25 of its meeting at a public place within the district specified by
14-26 the board in a written resolution, rather than at its
14-27 administrative office. The board shall specify such public place
15-1 to be a bulletin board or other place within the district which is
15-2 reasonably available to the public. Neither failure to provide
15-3 notice of a regular meeting nor an insubstantial defect in notice
15-4 of any meeting shall affect the validity of any action taken at the
15-5 meeting.
15-6 Sec. 49.064. MEETINGS. The board shall hold such regular
15-7 and special meetings as may be necessary for the proper conduct of
15-8 the district's business. All meetings shall be conducted in
15-9 accordance with the open meetings law, Chapter 551, Government
15-10 Code. A meeting of a committee of the board, or a committee
15-11 composed of representatives of more than one board, where less than
15-12 a quorum of any one board is present is not subject to the
15-13 provisions of the open meetings law, Chapter 551, Government Code.
15-14 Sec. 49.065. RECORDS. (a) The board shall keep a complete
15-15 account of all its meetings and proceedings and shall preserve its
15-16 minutes, contracts, records, notices, accounts, receipts, and other
15-17 records in a safe place.
15-18 (b) The records of each district are the property of the
15-19 district and are subject to the open records law, Chapter 552,
15-20 Government Code.
15-21 (c) The preservation, microfilming, destruction, or other
15-22 disposition of the records of each district is subject to the
15-23 requirements of Chapter 201, Local Government Code, and rules
15-24 adopted thereunder.
15-25 Sec. 49.066. SUITS. (a) A district may sue and be sued in
15-26 the courts of this state in the name of the district by and through
15-27 its board. All courts shall take judicial notice of the creation
16-1 of the district and of its boundaries.
16-2 (b) Any court in the state rendering judgment for debt
16-3 against a district may order the board to levy, assess, and collect
16-4 taxes or assessments to pay the judgment.
16-5 (c) The president or the general manager of any district
16-6 shall be the agent of the district on whom process, notice, or
16-7 demand required or permitted by law to be served upon the district
16-8 may be served.
16-9 (d) Except as provided in Subsection (e), no suit may be
16-10 instituted in any court of this state contesting:
16-11 (1) the validity of the creation and boundaries of a
16-12 district created under this code;
16-13 (2) any bonds or other obligations created under this
16-14 code; or
16-15 (3) the validity or the authorization of a contract
16-16 with the United States by the district.
16-17 (e) The matters listed in Subsection (d) may be judicially
16-18 inquired into at any time and determined in any suit brought by the
16-19 State of Texas through the attorney general. The action shall be
16-20 brought on good cause shown, except where otherwise provided by
16-21 other provisions of this code or by the Texas Constitution. It is
16-22 specifically provided, however, that no such proceeding shall
16-23 affect the validity of or security for any bonds or other
16-24 obligations theretofore issued by a district if such bonds or other
16-25 obligations have been approved by the attorney general as provided
16-26 by Section 49.184.
16-27 (f) A district or water supply corporation shall not be
17-1 required to give bond for appeal, injunction, or costs in any suit
17-2 to which it is a party and shall not be required to deposit more
17-3 than the amount of any award in any eminent domain proceeding.
17-4 Sec. 49.067. CONTRACTS. A district shall contract, and be
17-5 contracted with, in the name of the district.
17-6 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. The
17-7 provisions of this chapter pertaining to bids and the Local
17-8 Government Code notwithstanding, a district may purchase property
17-9 from any governmental entity by negotiated contract without the
17-10 necessity of securing appraisals or advertising for bids.
17-11 Sec. 49.069. EMPLOYEE BENEFITS. (a) The board may provide
17-12 for and administer retirement, disability, and death compensation
17-13 funds for the employees of the district.
17-14 (b) The board may establish a public retirement system in
17-15 accordance with the provisions of Chapter 810, Government Code.
17-16 The board may also provide for a deferred compensation plan
17-17 described by Section 457 of the Internal Revenue Code of 1986 (26
17-18 U.S.C. Section 457).
17-19 (c) The board may include hospitalization and medical
17-20 benefits to its employees as part of the compensation paid to the
17-21 officers and employees and may adopt any plan, rule, or regulation
17-22 in connection with it and amend or change the plan, rule, or
17-23 regulation as it may determine.
17-24 Sec. 49.070. WORKERS' COMPENSATION. The board may become a
17-25 subscriber under Title 5, Labor Code (Texas Workers' Compensation
17-26 Act), with any insurance company authorized to write the policies
17-27 in the State of Texas.
18-1 Sec. 49.071. DISTRICT NAME CHANGE. (a) On petition by a
18-2 district showing reasonable grounds for a name change, the
18-3 commission by order may change the name of the district to the name
18-4 requested by the district. The new name must be generally
18-5 descriptive of the location of the district followed by the type of
18-6 district as provided by the title of the chapter of the Water Code
18-7 governing the district. If a district is located wholly within one
18-8 county that contains more than one district of that type, the
18-9 district may be differentiated, if necessary, by adding to the new
18-10 name the proper consecutive number. The new name may not be the
18-11 same as the name of any other district in the county.
18-12 (b) A name change takes effect on the date of issuance of
18-13 the commission order making the name change.
18-14 (c) Not later than the 30th day after the date of issuance
18-15 of the commission order making the name change, the district shall
18-16 publish notice of the name change in a newspaper or newspapers of
18-17 general circulation in the county or counties in which the district
18-18 is located. Within that same period, the district shall also give
18-19 notice of the name change by mail to utility customers or
18-20 permittees, if any, and, to the extent practicable, to the holders
18-21 of bonds, obligations, and other indebtedness of the district.
18-22 Failure of the district to comply with this subsection does not
18-23 affect the validity of the name change.
18-24 (d) A change in the name of a district does not affect
18-25 bonds, obligations, or other indebtedness of the district existing
18-26 before the name change occurred.
18-27 (Sections 49.072-49.100 reserved for expansion
19-1 SUBCHAPTER D. ELECTION PROVISIONS
19-2 Sec. 49.101. GENERAL. All elections shall be generally
19-3 conducted in accordance with the Election Code except as otherwise
19-4 provided for by this code. Write-in candidacies for any district
19-5 office shall be governed by Subchapter C, Chapter 146, Election
19-6 Code.
19-7 Sec. 49.102. CONFIRMATION AND DIRECTOR ELECTION.
19-8 (a) Before issuing any bonds or other obligations, an election
19-9 shall be held within the boundaries of the proposed district to
19-10 determine if the proposed district shall be established and, if the
19-11 directors of the district are required by law to be elected, to
19-12 elect permanent directors.
19-13 (b) Notice of a confirmation or director election shall
19-14 state the day and place or places for holding the election, the
19-15 propositions to be voted on, and the number of directors to be
19-16 voted on.
19-17 (c) The ballots for a confirmation election shall be printed
19-18 to provide for voting "For District" and "Against District."
19-19 Ballots for a directors election shall provide the names of the
19-20 persons appointed by the governing body who qualified and are
19-21 serving as temporary directors at the time the election is called.
19-22 The ballots shall also have blank places after the names of the
19-23 temporary directors in which a voter may write the names of other
19-24 persons for directors.
19-25 (d) Immediately after the confirmation and director
19-26 election, the presiding judge shall take returns of the results to
19-27 the temporary board. The temporary board shall canvass the returns
20-1 and declare the results at the earliest practicable time.
20-2 (e) If a majority of the votes cast in the election favor
20-3 the creation of the district, then the temporary board shall
20-4 declare that the district is created and enter the result in its
20-5 minutes. If a majority of the votes cast in the election are
20-6 against the creation of the district, the temporary board shall
20-7 declare that the district was defeated and enter the result in its
20-8 minutes. A copy of the order shall be filed with the commission.
20-9 (f) The order canvassing the results of the confirmation
20-10 election shall contain a description of the district's boundaries
20-11 and shall be filed with the executive director and in the deed
20-12 records of the county or counties in which the district is located.
20-13 (g) The temporary board shall also declare the persons
20-14 receiving the highest number of votes for directors to have been
20-15 elected as permanent directors.
20-16 (h) Unless otherwise agreed, the directors shall decide the
20-17 initial terms of office by lot, with a simple majority of directors
20-18 serving until the second succeeding directors election and the
20-19 remaining directors serving until the next directors election.
20-20 (i) The provisions of this section shall not be applicable
20-21 to any district exercising the powers of Chapter 375, Local
20-22 Government Code, or any district created by a special Act of the
20-23 legislature that does not require a confirmation election.
20-24 Sec. 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
20-25 provided by Section 49.102, the members of the board of a district
20-26 shall serve for four-year terms.
20-27 (b) An election shall be held on the uniform election date,
21-1 established by the Election Code, in either January or May of each
21-2 even-numbered year to elect the appropriate number of directors.
21-3 (c) The permanent directors may assign a position number to
21-4 each director's office, in which case directors shall thereafter be
21-5 elected by position and not at large.
21-6 (d) A district may provide for the election of all
21-7 directors, or a majority of directors, from single-member
21-8 districts, which shall be geographically described within the
21-9 boundaries of the district in a manner that is equitable for the
21-10 electors within such districts and within the district generally.
21-11 (e) Section 49.002 notwithstanding, in all areas of conflict
21-12 the provisions of Subsection (b) shall take precedence over all
21-13 prior statutory enactments.
21-14 (f) This section does not apply to any special law district
21-15 or authority that is not required by the law creating the district
21-16 or authority to elect its directors by the public.
21-17 Sec. 49.104. ALTERNATIVE ELECTION PROCEDURES. (a)
21-18 Notwithstanding the provisions and requirements of the Election
21-19 Code and general laws, any two or more districts situated in the
21-20 same county and in which substantially all of the land is being or
21-21 has been developed as part of a single community development plan
21-22 and which are served by common water supply and waste disposal
21-23 systems may by mutual agreement designate a common election office
21-24 and common early and regular polling places within one or more of
21-25 the districts, but outside the boundaries of one or more of the
21-26 districts, for the conduct of director election proceedings and
21-27 early and regular balloting in director elections. This
22-1 alternative election procedure may only be used if the common
22-2 election office and polling places so designated:
22-3 (1) are within buildings open to the public;
22-4 (2) are within the boundaries of at least one of the
22-5 districts;
22-6 (3) meet the requirements of the Election Code and
22-7 general laws as polling places; and
22-8 (4) are located not more than five miles from any
22-9 portion of the boundaries of any of the participating districts.
22-10 (b) Such districts may also agree upon and designate a
22-11 common election officer and common early and regular voting
22-12 officials for some or all of the director elections to be
22-13 simultaneously conducted at a common location, any of whom may be
22-14 nonelective employees of one or more of the districts, so long as
22-15 the early and regular voting officials are qualified voters within
22-16 at least one of the districts.
22-17 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
22-18 in this code, all vacancies on the board and in other offices shall
22-19 be filled for the unexpired term by appointment of the board.
22-20 (b) If the number of directors is reduced to fewer than a
22-21 majority, the vacancies shall be filled by appointment by the
22-22 commission or the county commissioners court if the district was
22-23 created by the county commissioners court. An appointed director
22-24 shall serve for the unexpired term of the director he or she is
22-25 replacing.
22-26 (c) In the event of a failure to elect one or more members
22-27 of the board of a district resulting from the absence of, or
23-1 failure to vote by, the qualified voters in the district, the
23-2 current members of the board holding the positions not filled at
23-3 such election shall be deemed to have been reelected and shall
23-4 serve an additional term of office.
23-5 Sec. 49.106. BOND ELECTIONS. (a) Before an election is
23-6 held to authorize the issuance of bonds, other than refunding
23-7 bonds, there shall be filed in the office of the district and open
23-8 to inspection by the public an engineer's report covering the land,
23-9 improvements, facilities, plants, equipment, and appliances to be
23-10 purchased or constructed and their estimated cost, together with
23-11 maps, plats, profiles, and data fully showing and explaining the
23-12 report.
23-13 (b) Notice of a bond election shall contain the proposition
23-14 or propositions to be voted upon, which includes the estimate of
23-15 the probable cost of design, construction, purchase, and
23-16 acquisition of improvements and additions thereto, and incidental
23-17 expenses connected with such improvements and the issuance of
23-18 bonds.
23-19 (c) A bond election may be held on the same day as any other
23-20 district election. The bond election may be called by a separate
23-21 election order or as a part of any other election order. The board
23-22 may submit multiple purposes in a single proposition at an
23-23 election.
23-24 Sec. 49.107. OPERATION AND MAINTENANCE TAX. (a) A district
23-25 may levy and collect a tax for operation and maintenance purposes,
23-26 including funds for planning, constructing, acquiring, maintaining,
23-27 repairing, and operating all necessary land, plants, works,
24-1 facilities, improvements, appliances, and equipment of the district
24-2 and for paying costs of proper services, engineering and legal
24-3 fees, and organization and administrative expenses.
24-4 (b) An operation and maintenance tax may not be levied by a
24-5 district until it is approved by a majority of the electors voting
24-6 at an election held for that purpose. After such a tax has been
24-7 authorized by the district's voters, the board shall be authorized
24-8 to levy the tax and have it assessed and collected as other
24-9 district taxes.
24-10 (c) An operation and maintenance tax election may be held at
24-11 the same time and in conjunction with any other district election.
24-12 The election may be called by a separate election order or as part
24-13 of any other election order.
24-14 (d) The proposition in an operation and maintenance tax
24-15 election may be for a specific maximum rate or for an unlimited
24-16 rate.
24-17 (e) If a district has any surplus operation and maintenance
24-18 tax funds that are not needed for the purposes for which they were
24-19 collected, the funds may be used for any lawful purpose.
24-20 (f) Before a district reimburses a developer of property in
24-21 the district, as that term is defined in Section 49.052(d), or its
24-22 assigns, from operation and maintenance tax funds, for planning,
24-23 constructing, or acquiring facilities, the district shall obtain
24-24 approval by the executive director.
24-25 Sec. 49.108. CONTRACT ELECTIONS. (a) A contract may
24-26 provide that the district will make payment under the contract from
24-27 proceeds from the sale of notes or bonds, from taxes, or from any
25-1 other income of the district or any combination of these.
25-2 (b) A district may make payments under a contract from taxes
25-3 other than operation and maintenance taxes after the provisions of
25-4 the contract have been approved by a majority of the electors
25-5 voting at an election held for that purpose.
25-6 (c) A contract election may be held at the same time and in
25-7 conjunction with any other district election. The election may be
25-8 called by a separate election order or as part of any other
25-9 election order.
25-10 (d) A contract approved by the voters will constitute an
25-11 obligation against the taxing power of the district to the extent
25-12 provided in the contract.
25-13 (Sections 49.109-49.150 reserved for expansion
25-14 SUBCHAPTER E. FISCAL PROVISIONS
25-15 Sec. 49.151. EXPENDITURES. (a) Except as hereinafter
25-16 provided, a district's money may be disbursed only by check, draft,
25-17 order, or other instrument that shall be signed by at least a
25-18 majority of the directors.
25-19 (b) The board may by resolution allow the general manager,
25-20 treasurer, bookkeeper, or other employee of the district to sign
25-21 disbursements.
25-22 (c) The board may by resolution allow disbursements to be
25-23 transferred by federal reserve wire system to accounts in the name
25-24 of the district.
25-25 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
25-26 borrow money for any corporate purpose or combination of corporate
25-27 purposes only in compliance with the methods and procedures
26-1 specifically provided by this chapter or by general law.
26-2 Sec. 49.153. REVENUE NOTES. (a) The board, without the
26-3 necessity of an election, may borrow money on negotiable notes of
26-4 the district to be paid solely from the revenues derived from the
26-5 ownership of all or any designated part of the district's works,
26-6 plants, improvements, facilities, or equipment after deduction of
26-7 the reasonable cost of maintaining and operating the facilities.
26-8 (b) The notes may be first or subordinate lien notes within
26-9 the discretion of the board, but no obligation may ever be a charge
26-10 on the property of the district or on taxes levied or collected by
26-11 the district but shall be solely a charge on the revenues pledged
26-12 for the payment of the obligation. No part of the obligation may
26-13 ever be paid from taxes levied or collected by the district.
26-14 (c) A district may not execute a note for a term longer than
26-15 three years unless the commission issues an order approving the
26-16 note.
26-17 (d) This section does not apply to special water
26-18 authorities.
26-19 Sec. 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
26-20 NOTES. (a) The board may declare an emergency in the matter of
26-21 funds not being available to pay principal of and interest on any
26-22 bonds of the district payable in whole or in part from taxes or to
26-23 meet any other needs of the district and may issue negotiable tax
26-24 anticipation notes or negotiable bond anticipation notes to borrow
26-25 the money needed by the district without advertising or giving
26-26 notice of the sale. Bond anticipation notes and tax anticipation
26-27 notes shall mature within one year of their date.
27-1 (b) Tax anticipation notes may be issued for any purpose for
27-2 which the district is authorized to levy taxes, and tax
27-3 anticipation notes shall be secured with the proceeds of taxes to
27-4 be levied by the district in the succeeding 12-month period. The
27-5 board may covenant with the purchasers of the notes that the board
27-6 will levy a sufficient tax to pay the principal of and interest on
27-7 the notes and pay the costs of collecting the taxes.
27-8 (c) Bond anticipation notes may be issued for any purpose
27-9 for which bonds of the district may have previously been voted or
27-10 may be issued for the purpose of refunding previously issued bond
27-11 anticipation notes. A district may covenant with the purchasers of
27-12 the bond anticipation notes that the district will use the proceeds
27-13 of sale of any bonds in the process of issuance for the purpose of
27-14 refunding the bond anticipation notes, in which case the board will
27-15 be required to use the proceeds received from sale of the bonds in
27-16 the process of issuance to pay principal, interest, or redemption
27-17 price on the bond anticipation notes.
27-18 (d) Districts required to seek commission approval of bonds
27-19 must have an application for such approval on file with the
27-20 commission prior to the issuance of bond anticipation notes.
27-21 Sec. 49.155. REPAYMENT OF EXPENSES. (a) The district may
27-22 pay all costs and expenses necessarily incurred in the organization
27-23 and operation of a district during creation and construction
27-24 periods including, but not limited to, the following:
27-25 (1) organizational, administrative, and operating
27-26 expenses;
27-27 (2) the cost of investigation and making plans;
28-1 (3) the cost of the engineer's report;
28-2 (4) legal fees; and
28-3 (5) any other incidental expenses.
28-4 (b) For purposes of this section, construction periods shall
28-5 mean any periods during which the district is constructing its
28-6 facilities or there is construction by third parties of above
28-7 ground improvements within the district, but in no event longer
28-8 than five years.
28-9 (c) The district may reimburse any person for money advanced
28-10 for the purposes in Subsection (a) and may be charged interest on
28-11 such funds.
28-12 (d) These payments may be made from money obtained from the
28-13 issuance of notes or the sale of bonds issued by the district or
28-14 out of maintenance taxes or other revenues of the district.
28-15 Sec. 49.156. DEPOSITORY. (a) The board, by order or
28-16 resolution, shall designate one or more banks or savings
28-17 associations within the state to serve as the depository for the
28-18 funds of the district. The board shall not be required to
28-19 advertise or solicit bids in selecting its depositories.
28-20 (b) To the extent that funds in the depository banks or
28-21 savings associations are not insured by the Federal Deposit
28-22 Insurance Corporation, they shall be secured in the manner provided
28-23 by law for the security of funds by Chapter 2257, Government Code
28-24 (Public Funds Collateral Act).
28-25 (c) The board may authorize a designated representative to
28-26 supervise the substitution of securities pledged to secure the
28-27 district's funds.
29-1 Sec. 49.157. INVESTMENTS. (a) All district deposits and
29-2 investments shall be governed by Subchapter A, Chapter 2256,
29-3 Government Code (Public Funds Investment Act).
29-4 (b) The board may provide that an authorized representative
29-5 of the district may invest and reinvest the funds of the district
29-6 and provide for money to be withdrawn from the appropriate accounts
29-7 of the district for the investments on such terms as the board
29-8 considers advisable.
29-9 Sec. 49.158. FISCAL YEAR. Within 30 days after a district
29-10 becomes financially active, the board shall adopt a fiscal year by
29-11 a formal board resolution. The district shall notify the executive
29-12 director of the adopted fiscal year within 30 days after adoption.
29-13 The district may change its fiscal year at any time; provided,
29-14 however, it may not be changed more than once in any 24-month
29-15 period. After any change in the district's fiscal year, the
29-16 district shall notify the executive director of the changed fiscal
29-17 year within 30 days after adoption.
29-18 (Sections 49.159-49.180 reserved for expansion
29-19 SUBCHAPTER F. ISSUANCE OF BONDS
29-20 Sec. 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
29-21 DISTRICT BONDS. (a) A district may not issue bonds unless the
29-22 commission determines that the project to be financed by the bonds
29-23 is feasible and issues an order approving the issuance of the
29-24 bonds. This section does not apply to refunding bonds or bonds
29-25 issued to and approved by the Farmers Home Administration, the
29-26 United States Department of Agriculture, or the Texas Water
29-27 Development Board.
30-1 (b) A district may submit to the commission a written
30-2 application for investigation of feasibility. An engineer's report
30-3 describing the project, including the data, profiles, maps, plans,
30-4 and specifications prepared in connection with the report, must be
30-5 submitted with the application.
30-6 (c) The executive director shall examine the application and
30-7 the report and shall inspect the project area. The district shall,
30-8 on request, supply the executive director with additional data and
30-9 information necessary for an investigation of the application, the
30-10 engineer's report, and the project.
30-11 (d) The executive director shall prepare a written report on
30-12 the project and include suggestions, if any, for changes or
30-13 improvements in the project. The executive director shall retain a
30-14 copy of the report and send a copy of the report to both the
30-15 commission and the district.
30-16 (e) The commission shall consider the application, the
30-17 engineer's report, the executive director's report, and any other
30-18 evidence allowed by commission rule to be considered in determining
30-19 the feasibility of the project.
30-20 (f) The commission shall determine whether the project to be
30-21 financed by the bonds is feasible and issue an order either
30-22 approving or disapproving, as appropriate, the issuance of the
30-23 bonds. The commission shall retain a copy of the order and send a
30-24 copy of the order to the district.
30-25 (g) Notwithstanding any provision of this code to the
30-26 contrary, the commission may approve the issuance of bonds of a
30-27 district without the submission of plans and specifications of the
31-1 improvements to be financed with the bonds. The commission may
31-2 condition the approval on any terms or conditions considered
31-3 appropriate by the commission.
31-4 (h) This section does not apply to a district if:
31-5 (1) the district's boundaries include one entire
31-6 county;
31-7 (2) the district was created by a special Act of the
31-8 legislature and:
31-9 (A) the district is located entirely within one
31-10 county;
31-11 (B) entirely within one or more home-rule
31-12 municipalities;
31-13 (C) the total taxable value of the real property
31-14 and improvements to the real property zoned by one or more
31-15 home-rule municipalities for residential purposes and located
31-16 within the district does not exceed 25 percent of the total taxable
31-17 value of all taxable property in the district, as shown by the most
31-18 recent certified appraisal tax roll prepared by the appraisal
31-19 district for the county; and
31-20 (D) the district was not required by law to
31-21 obtain commission approval of its bonds before the effective date
31-22 of this section;
31-23 (3) the district is a special water authority; or
31-24 (4) the district is governed by a board of directors
31-25 appointed in whole or in part by the governor, a state agency, or
31-26 the governing body or chief elected official of a municipality or
31-27 county and does not provide water and sewer services to residential
32-1 retail customers as its principal function.
32-2 Sec. 49.182. COMMISSION SUPERVISION OF PROJECTS AND
32-3 IMPROVEMENTS. (a) During construction of projects and
32-4 improvements approved by the commission under this subchapter, no
32-5 substantial alterations may be made in the plans and specifications
32-6 without the approval of the commission in accordance with
32-7 commission rules.
32-8 (b) The executive director may inspect the improvements at
32-9 any time during construction to determine if the project is being
32-10 constructed in accordance with the plans and specifications
32-11 approved by the commission.
32-12 (c) If the executive director finds that the project is not
32-13 being constructed in accordance with the approved plans and
32-14 specifications, the executive director shall give written notice
32-15 immediately by certified mail to the district's manager and to each
32-16 board member.
32-17 (d) If within 10 days after the notice is mailed the board
32-18 does not take steps to ensure that the project is being constructed
32-19 in accordance with the approved plans and specifications, the
32-20 executive director shall give written notice of this fact to the
32-21 attorney general.
32-22 (e) After receiving this notice, the attorney general may
32-23 bring an action for injunctive relief or quo warranto proceedings
32-24 against the directors. Venue for either suit is exclusively in a
32-25 district court in Travis County.
32-26 Sec. 49.183. BOND SALES. (a) Except for refunding bonds,
32-27 or bonds sold to a state or federal agency, bonds issued by a
33-1 district shall be sold after advertising for and receiving
33-2 competitive sealed bids and shall be awarded to the bidder whose
33-3 bid produces the lowest net effective interest rate to the
33-4 district.
33-5 (b) Except for refunding bonds, or bonds sold to a state or
33-6 federal agency, after any bonds are finally approved and before
33-7 they are sold by a district, the board shall publish an appropriate
33-8 notice of the sale:
33-9 (1) at least one time not less than 10 days before the
33-10 date of sale in a newspaper of general circulation in the county or
33-11 counties in which the district is located; and
33-12 (2) at least one time in one or more recognized
33-13 financial publications of general circulation in the state as
33-14 approved by the state attorney general.
33-15 (c) If the district is issuing bonds and refunding bonds as
33-16 one issue and if the initial principal amount of refunding bonds is
33-17 50 percent or more of the total initial principal amount of bonds
33-18 being issued, for the purposes of this section, the issue shall be
33-19 considered to be refunding bonds and competitive bids shall not be
33-20 required.
33-21 (d) A district's bonds are negotiable instruments within the
33-22 meaning and purposes of the Business & Commerce Code. A district's
33-23 bonds may be issued and bear interest in accordance with Chapter
33-24 503, Acts of the 54th Legislature, Regular Session, 1955 (Article
33-25 717k, Vernon's Texas Civil Statutes); Chapter 3, Acts of the 61st
33-26 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
33-27 Civil Statutes); the Bond Procedures Act of 1981 (Article 717k-6,
34-1 Vernon's Texas Civil Statutes); and Chapter 656, Acts of the 68th
34-2 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
34-3 Civil Statutes). Except for this subsection, this section does not
34-4 apply to special water authorities or districts defined in Section
34-5 49.181(h)(4).
34-6 (e) Subsections (a) and (b) do not apply to district bonds
34-7 issued pursuant to Chapter 656, Acts of the 68th Legislature,
34-8 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
34-9 Statutes).
34-10 Sec. 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
34-11 REGISTRATION OF BONDS. (a) Before bonds issued by a district are
34-12 delivered to the purchasers, a certified copy of all proceedings
34-13 relating to organization of the district for first bond issues and
34-14 issuance of the bonds and other relevant information shall be sent
34-15 to the attorney general.
34-16 (b) The attorney general shall carefully examine the bonds,
34-17 with regard to the record and the constitution and laws of this
34-18 state governing the issuance of bonds, and the attorney general
34-19 shall officially approve and certify the bonds if he or she finds
34-20 that they conform to the record and the constitution and laws of
34-21 this state and are valid and binding obligations of the district.
34-22 (c) After the attorney general approves and certifies the
34-23 bonds, the comptroller shall register them in a book kept for that
34-24 purpose and shall record the certificate of the attorney general.
34-25 (d) After the approval and registration of the bonds by the
34-26 comptroller, they shall be incontestable in any court or other
34-27 forum, for any reason, and shall be valid and binding obligations
35-1 in accordance with their terms for all purposes.
35-2 (e) A contract or lease may be submitted to the attorney
35-3 general along with the bond records, and, if submitted, the
35-4 approval by the attorney general of the bonds shall constitute an
35-5 approval of the contract or lease and the contract or lease shall
35-6 be incontestable.
35-7 Sec. 49.185. EXEMPTIONS. This subchapter shall not apply to
35-8 districts engaged in the distribution and sale of electric energy
35-9 to the public.
35-10 (Sections 49.186-49.190 reserved for expansion
35-11 SUBCHAPTER G. AUDIT OF DISTRICTS
35-12 Sec. 49.191. DUTY TO AUDIT. (a) The board shall have the
35-13 district's fiscal accounts and records audited annually at the
35-14 expense of the district.
35-15 (b) In all areas of conflict, the provisions of this
35-16 subchapter shall take precedence over all prior statutory
35-17 enactments.
35-18 (c) The person who performs the audit shall be a certified
35-19 public accountant or public accountant holding a permit from the
35-20 Texas State Board of Public Accountancy.
35-21 (d) The audit required by this section shall be completed
35-22 within 120 days after the close of the district's fiscal year.
35-23 Sec. 49.192. FORM OF AUDIT. The executive director shall
35-24 adopt accounting and auditing manuals and, except as otherwise
35-25 provided by the manuals, the district audit shall be performed
35-26 according to the generally accepted auditing standards adopted by
35-27 the American Institute of Certified Public Accountants. Financial
36-1 statements shall be prepared in accordance with generally accepted
36-2 accounting principles as adopted by the American Institute of
36-3 Certified Public Accountants.
36-4 Sec. 49.193. FINANCIAL REPORTS. The district's depository,
36-5 the district's treasurer, and the district's bookkeeper, if any,
36-6 who receives or has control over any district funds shall keep a
36-7 full and itemized account of district funds in its, his, or her
36-8 possession. Such itemized accounts and records shall be available
36-9 for audit.
36-10 Sec. 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
36-11 REPORTS. (a) After the board has approved the audit, it shall
36-12 submit a copy of the report to the executive director for filing
36-13 within 135 days after the close of the district's fiscal year.
36-14 (b) If the board refuses to approve the annual audit report,
36-15 the board shall submit a copy of the report to the executive
36-16 director for filing within 135 days after the close of the
36-17 district's fiscal year, accompanied by a statement from the board
36-18 explaining the reasons for its failure to approve the report.
36-19 (c) Copies of the audit, the annual financial dormancy
36-20 affidavit, or annual financial report described in Sections 49.197
36-21 and 49.198 of this subchapter shall be filed annually in the office
36-22 of the district.
36-23 (d) Each district shall file with the executive director an
36-24 annual filing affidavit in a format prescribed by the executive
36-25 director, executed by a duly authorized representative of the
36-26 board, stating that all copies of the annual audit report, annual
36-27 financial dormancy affidavit, or annual financial report have been
37-1 filed under this section.
37-2 (e) The annual filing affidavit shall be submitted with the
37-3 applicable annual document when it is submitted to the executive
37-4 director for filing as prescribed by this subchapter.
37-5 (f) The executive director shall file with the attorney
37-6 general the names of any districts that do not comply with the
37-7 provisions of this subchapter.
37-8 Sec. 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
37-9 executive director may review the audit report of each district.
37-10 (b) The commission may request that the state auditor assist
37-11 in the establishment of standards and procedures for review of
37-12 district audits by the executive director.
37-13 (c) If the executive director has any objections or
37-14 determines any violations of generally accepted auditing standards
37-15 or accounting principles, statutes, or board rules, or if the
37-16 executive director has any recommendations, he or she shall notify
37-17 the board and the district's auditor.
37-18 (d) Before the audit report may be accepted by the executive
37-19 director as being in compliance with the provisions of this
37-20 subchapter, the board and the auditor shall remedy objections and
37-21 correct violations of which they have been notified by the
37-22 executive director.
37-23 (e) If the audit report indicates that any penal law has
37-24 been violated, the executive director shall notify the appropriate
37-25 county or district attorney and the attorney general.
37-26 Sec. 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT RECORDS.
37-27 (a) The executive director shall have access to all vouchers,
38-1 receipts, district fiscal and financial records, and other district
38-2 records the executive director considers necessary.
38-3 (b) All district fiscal records shall be prepared on a
38-4 timely basis and maintained in an orderly manner in accordance with
38-5 generally accepted accounting principles. The fiscal records shall
38-6 be available for public inspection during regular business hours.
38-7 A district's fiscal records may be removed from the district's
38-8 office for the purposes of recording its fiscal affairs and
38-9 preparing an audit, during which time the fiscal records are under
38-10 the control of the district's auditor.
38-11 Sec. 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
38-12 financially dormant district is a district that had:
38-13 (1) $500 or less of receipts from operations, tax
38-14 assessments, loans, contributions, or any other sources during the
38-15 calendar year;
38-16 (2) $500 or less of disbursements of funds during the
38-17 calendar year;
38-18 (3) no bonds or other long-term (more than one year)
38-19 liabilities outstanding during the calendar year; and
38-20 (4) no cash or investments that exceeded $5,000 at any
38-21 time during the calendar year.
38-22 (b) A financially dormant district may elect to submit to
38-23 the executive director a financial dormancy affidavit instead of
38-24 complying with the audit requirements of Section 49.191.
38-25 (c) The annual financial dormancy affidavit shall be
38-26 prepared in a format prescribed by the executive director and shall
38-27 be submitted for filing by a duly authorized representative of the
39-1 district.
39-2 (d) The affidavit must be filed annually on or before
39-3 January 31 with the executive director until such time as the
39-4 district becomes financially active and the board adopts a fiscal
39-5 year; thereafter, the district shall file annual audit reports as
39-6 prescribed by this subchapter.
39-7 (e) A district that becomes financially dormant after having
39-8 been financially active shall be required to file annual financial
39-9 dormancy affidavits on or before January 31, until the district is
39-10 either dissolved or again becomes financially active.
39-11 (f) Districts governed by this section are subject to
39-12 periodic audits by the executive director.
39-13 Sec. 49.198. AUDIT REPORT EXEMPTION. (a) A district that
39-14 is not collecting taxes may elect to file annual financial reports
39-15 with the executive director in lieu of the district's compliance
39-16 with Section 49.191 provided:
39-17 (1) the district had no bonds or other long-term (more
39-18 than one year) liabilities outstanding during the fiscal period;
39-19 (2) the district did not have gross receipts from
39-20 operations, loans, or contributions in excess of $100,000 during
39-21 the fiscal period; and
39-22 (3) the district's cash and temporary investments were
39-23 not in excess of $100,000 at any time during the fiscal period.
39-24 (b) The annual financial report must be accompanied by an
39-25 affidavit attesting to the accuracy and authenticity of the
39-26 financial report signed by a duly authorized representative of the
39-27 district.
40-1 (c) The annual financial report and affidavit in a format
40-2 prescribed by the executive director must be on file with the
40-3 executive director within 45 days after the close of the district's
40-4 fiscal year.
40-5 (d) Districts governed by this section are subject to
40-6 periodic audits by the executive director.
40-7 Sec. 49.199. POLICIES AND AUDITS OF DISTRICTS. (a) Subject
40-8 to the law governing the district, the board shall adopt the
40-9 following in writing:
40-10 (1) a code of ethics for district directors, officers,
40-11 employees, and persons who are engaged in handling investments for
40-12 the district;
40-13 (2) a policy relating to travel expenditures;
40-14 (3) a policy relating to district investments that
40-15 ensures that:
40-16 (A) purchases and sales of investments are
40-17 initiated by authorized individuals, conform to investment
40-18 objectives and regulations, and are properly documented and
40-19 approved; and
40-20 (B) periodic review is made of district
40-21 investments to evaluate investment performance and security;
40-22 (4) policies and procedures for selection, monitoring,
40-23 or review and evaluation of professional services;
40-24 (5) a uniform method of accounting and reporting for
40-25 industrial development bonds and pollution control bonds that
40-26 complies with requirements of the commission; and
40-27 (6) policies that ensure a better use of management
41-1 information including:
41-2 (A) budgets for use in planning and controlling
41-3 cost;
41-4 (B) an audit committee of the board; and
41-5 (C) uniform reporting requirements that use
41-6 "Audits of State and Local Governmental Units" as a guide on audit
41-7 working papers and that use "Governmental Accounting and Financial
41-8 Reporting Standards."
41-9 (b) The state auditor may audit the financial transactions
41-10 of any district if the state auditor determines that the audit is
41-11 necessary.
41-12 Sec. 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
41-13 DISTRICTS. A district that provides wholesale potable water and
41-14 wastewater services shall adopt a program that provides such
41-15 wholesale customers an opportunity to review and comment on the
41-16 district's annual budget that applies to their services before that
41-17 budget is adopted by the board.
41-18 (Sections 49.201-49.210 reserved for expansion
41-19 SUBCHAPTER H. POWERS AND DUTIES
41-20 Sec. 49.211. POWERS. (a) A district shall have the
41-21 functions, powers, authority, rights, and duties that will permit
41-22 accomplishment of the purposes for which it was created or the
41-23 purposes authorized by the constitution, this code, or any other
41-24 law.
41-25 (b) A district is authorized to purchase, construct,
41-26 acquire, own, operate, maintain, repair, improve, or extend inside
41-27 and outside its boundaries any and all land, works, improvements,
42-1 facilities, plants, equipment, and appliances necessary to
42-2 accomplish the purposes of its creation or the purposes authorized
42-3 by this code or any other law.
42-4 Sec. 49.212. FEES AND CHARGES. (a) A district may adopt
42-5 and enforce all necessary charges, fees, or rentals, in addition to
42-6 taxes, for providing or making available any district facility or
42-7 service.
42-8 (b) A district may require a deposit for any services or
42-9 facilities furnished and the district may or may not provide that
42-10 the deposit will bear interest.
42-11 (c) Subject to observance of the procedure appropriate to
42-12 the circumstances, a district may discontinue any or all facilities
42-13 or services to prevent an abuse or to enforce payment of an unpaid
42-14 charge, fee, or rental due the district, including taxes that have
42-15 been delinquent for not less than six months.
42-16 (d) Notwithstanding any provision of law to the contrary, a
42-17 district that charges a fee that is an impact fee as described in
42-18 Section 395.001(4), Local Government Code, must comply with Chapter
42-19 395, Local Government Code. A charge or fee by a district for
42-20 construction, installation, or inspection of a tap or connection to
42-21 district water, sanitary sewer, or drainage facilities, including
42-22 all necessary service lines and meters, that (i) does not exceed
42-23 three times the actual and reasonable costs to the district for
42-24 such work or (ii) if made to a nontaxable entity, does not exceed
42-25 the actual costs to the district for such work and for all
42-26 facilities that are necessary to provide district services to such
42-27 entity and that are financed or are to be financed in whole or in
43-1 part by tax-supported bonds of the district, shall not be deemed or
43-2 considered to be an impact fee under Chapter 395, Local Government
43-3 Code.
43-4 Sec. 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A district
43-5 may contract with a person or any public or private entity for the
43-6 joint construction, financing, ownership, and operation of any
43-7 works, improvements, facilities, plants, equipment, and appliances
43-8 necessary to accomplish any purpose or function permitted by a
43-9 district, or a district may purchase an interest in any project
43-10 used for any purpose or function permitted by a district.
43-11 (b) A district may enter into contracts with any person or
43-12 any public or private entity in the performance of any purpose or
43-13 function permitted by a district.
43-14 (c) A district may enter into contracts, which may be of
43-15 unlimited duration, with persons or any public or private entities
43-16 on the terms and conditions the board may consider desirable, fair,
43-17 and advantageous for:
43-18 (1) the purchase or sale of water;
43-19 (2) the collection, transportation, treatment, and
43-20 disposal of its domestic, industrial, and communal wastes or the
43-21 collection, transportation, treatment, and disposal of domestic,
43-22 industrial, and communal wastes of other persons;
43-23 (3) the gathering, diverting, and control of local
43-24 storm water, or other local harmful excesses of water;
43-25 (4) the continuing and orderly development of the land
43-26 and property within the district through the purchase,
43-27 construction, or installation of works, improvements, facilities,
44-1 plants, equipment, and appliances that the district may otherwise
44-2 be empowered and authorized to do or perform so that, to the
44-3 greatest extent reasonably possible, considering sound engineering
44-4 and economic practices, all of the land and property may be placed
44-5 in a position to ultimately receive the services of the works,
44-6 improvements, plants, facilities, equipment, and appliances;
44-7 (5) the maintenance and operation of any works,
44-8 improvements, facilities, plants, equipment, and appliances of the
44-9 district or of another person or public or private entity;
44-10 (6) the collection, treatment, and disposal of
44-11 municipal solid wastes;
44-12 (7) the exercise of any other rights, powers, and
44-13 duties granted to a district.
44-14 Sec. 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
44-15 provisions of Chapter 171, Local Government Code, shall apply to
44-16 the award of district contracts.
44-17 Sec. 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
44-18 district may purchase, construct, acquire, own, operate, repair,
44-19 improve, or extend all works, improvements, facilities, plants,
44-20 equipment, and appliances necessary to provide any services or
44-21 facilities authorized to be provided by the district to areas
44-22 contiguous to or in the vicinity of the district provided the
44-23 district does not duplicate a service or facility of another public
44-24 entity. A district providing potable water and sewer utility
44-25 services to household users shall not provide services or
44-26 facilities to serve areas outside the district that are also within
44-27 the corporate limits of a city without securing a resolution or
45-1 ordinance of the city granting consent for the district to serve
45-2 the area within the city.
45-3 (b) To secure money for this purpose, a district is
45-4 authorized to issue and sell negotiable bonds and notes payable
45-5 from the levy and collection of ad valorem taxes on all taxable
45-6 property within the district or from all or any designated part of
45-7 the revenues received from the operation of the district's works,
45-8 improvements, facilities, plants, equipment, and appliances or from
45-9 a combination of taxes and revenues.
45-10 (c) Any bonds and notes may be issued upon the terms and
45-11 conditions set forth in this code.
45-12 (d) A district shall not be required to hold a certificate
45-13 of convenience and necessity as a precondition for providing retail
45-14 water or sewer service to any customer or service area,
45-15 notwithstanding the fact that such customer or service area may be
45-16 located either within or outside the boundaries of the district or
45-17 has previously received water or sewer service from an entity
45-18 required by law to hold a certificate of convenience and necessity
45-19 as a precondition for such service. This subsection does not
45-20 authorize a district to provide services within an area for which a
45-21 retail public utility holds a certificate of convenience and
45-22 necessity or within the boundaries of another district without that
45-23 district's consent, unless the district has a valid certificate of
45-24 convenience and necessity to provide services to that area.
45-25 (e) A district is authorized to establish, maintain, revise,
45-26 charge, and collect the rates, fees, rentals, tolls, or other
45-27 charges for the use, services, and facilities that provide service
46-1 to areas outside the district that are considered necessary and may
46-2 be higher than those charged for comparable service to users within
46-3 the district.
46-4 (f) The rates, fees, rentals, tolls, or other charges shall
46-5 be at least sufficient to meet the expense of operating and
46-6 maintaining the services and facilities for a water and sanitary
46-7 sewer system serving areas outside the district and to pay the
46-8 principal of and interest and redemption price on bonds issued to
46-9 purchase, construct, acquire, own, operate, repair, improve, or
46-10 extend the services or facilities.
46-11 Sec. 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A district
46-12 may contract for or employ its own peace officers with power to
46-13 make arrests when necessary to prevent or abate the commission of:
46-14 (1) any offense against the rules of the district when
46-15 the offense or threatened offense occurs on any land, water, or
46-16 easement owned or controlled by the district;
46-17 (2) any offense involving injury or detriment to any
46-18 property owned or controlled by the district; and
46-19 (3) any offense against the laws of the state.
46-20 (b) A district may appoint reserve peace officers who may be
46-21 called to serve as peace officers by the district during the actual
46-22 discharge of their official duties.
46-23 (c) A reserve peace officer serves at the discretion of the
46-24 district and may be called into service if the district considers
46-25 it necessary to have additional officers to preserve the peace in
46-26 or enforce the law of the district.
46-27 (d) A reserve peace officer on active duty and actively
47-1 engaged in assigned duties has the same rights, privileges, and
47-2 duties as any other peace officer of the district.
47-3 (e) Any peace officer, before beginning to perform any
47-4 duties and at the time of appointment, must take an oath and
47-5 execute a bond conditioned on faithful performance of such
47-6 officer's duties in the amount of $1,000 payable to the district.
47-7 The oath and the bond shall be filed in the district office.
47-8 Sec. 49.217. OPERATION OF CERTAIN MOTOR VEHICLES ON OR NEAR
47-9 PUBLIC FACILITIES. (a) In this section, "motor vehicle" means a
47-10 self-propelled device in, upon, or by which a person or property is
47-11 or may be transported or drawn on a road or highway.
47-12 (b) Except as provided in Subsections (c) and (d), a person
47-13 may not operate a motor vehicle on a levee, in a drainage ditch, or
47-14 on land adjacent to a levee, canal, ditch, exposed conduit,
47-15 pipeline, pumping plant, storm water facility, or other facility
47-16 for the transmission, storage, treatment, or distribution of water,
47-17 sewage, or storm water owned or controlled by a district.
47-18 (c) A district may authorize the use of motor vehicles on
47-19 land that it owns or controls by posting signs on the property.
47-20 (d) This section does not prohibit a person from:
47-21 (1) driving on a public road or highway; or
47-22 (2) operating a motor vehicle used for repair or
47-23 maintenance of public water, sewer, or storm water facilities.
47-24 (e) A person who operates a motor vehicle in violation of
47-25 Subsection (b) commits an offense. An offense under this section
47-26 is a Class C misdemeanor, except that if a person has been
47-27 convicted of an offense under this section, a subsequent offense is
48-1 a Class B misdemeanor.
48-2 Sec. 49.218. Acquisition of Property. (a) A district or a
48-3 water supply corporation may acquire land, materials, waste
48-4 grounds, easements, rights-of-way, equipment, contract or permit
48-5 rights or interests, and other property, real or personal,
48-6 considered necessary for the purpose of accomplishing any one or
48-7 more of the district's or water supply corporation's purposes
48-8 provided in this code or in any other law.
48-9 (b) A district or water supply corporation shall have the
48-10 right to acquire property by gift, grant, or purchase and the right
48-11 to acquire property shall include property considered necessary for
48-12 the construction, improvement, extension, enlargement, operation,
48-13 or maintenance of the plants, works, improvements, facilities,
48-14 equipment, or appliances of a district or a water supply
48-15 corporation.
48-16 (c) A district or water supply corporation may acquire
48-17 either the fee simple title to or an easement on all land, both
48-18 public and private, either inside or outside its boundaries and may
48-19 acquire the title to or an easement on property other than land
48-20 held in fee.
48-21 (d) A district or water supply corporation may also lease
48-22 property from others for its use on such terms and conditions as
48-23 the board of the district or the board of directors of the water
48-24 supply corporation may determine to be advantageous.
48-25 Sec. 49.219. ACQUISITION OF EXISTING FACILITIES. Any
48-26 district may acquire by agreement all or any part of existing
48-27 water, sanitary sewer, or drainage systems of any water supply
49-1 corporation, including works, improvements, facilities, plants,
49-2 equipment, appliances, contract rights, and other assets and rights
49-3 that are completed, partially completed, or under construction, and
49-4 in connection therewith a district may assume all or any part of
49-5 the contracts, indebtedness, or obligations of the corporation
49-6 related to said systems, including any contracts, indebtedness, or
49-7 obligations related to or payable from the revenues of said
49-8 systems, and may perform all or any part of the obligations of said
49-9 corporation in the same manner and to the same extent that any
49-10 other purchaser or assignee could be bound on any such contracts,
49-11 indebtedness, or obligations. Before assuming any indebtedness or
49-12 obligations of such corporation related to any such system, a
49-13 district other than a special water authority shall obtain the
49-14 approval of the commission of such assumption.
49-15 Sec. 49.220. RIGHT TO USE EXISTING RIGHTS-OF-WAY. All
49-16 districts or water supply corporations are given rights-of-way,
49-17 within, along, under, and across all public, state, county, city,
49-18 town, or village roads, highways, and rights-of-way and other
49-19 public rights-of-way without the requirement for surety bond or
49-20 secuity; provided, however, that the entity having jurisdiction
49-21 over such roads, highways, and rights-of-way may require
49-22 indemnification. A district or water supply corporation shall not
49-23 proceed with any action to change, alter, or damage a portion of
49-24 the state highway system without having first obtained the written
49-25 consent of the Texas Department of Transportation, and the
49-26 placement of any facility of a district or water supply corporation
49-27 within state highway right-of-way shall be subject to department
50-1 regulation.
50-2 Sec. 49.221. Right to Enter Land. (a) The directors,
50-3 engineers, attorneys, agents, operators, and employees of a
50-4 district or water supply corporation may go on any land to inspect,
50-5 make surveys, or perform tests to determine the condition, value,
50-6 and usability of the property, with reference to the proposed
50-7 location of works, improvements, plants, facilities, equipment, or
50-8 appliances. The cost of restoration shall be borne by the district
50-9 or the water supply corporation.
50-10 (b) District employees and agents are entitled to enter any
50-11 public or private property within the boundaries of the district or
50-12 adjacent to any reservoir or other property owned by the district
50-13 at any reasonable time for the purpose of inspecting and
50-14 investigating conditions relating to the quality of water in the
50-15 state or the compliance with any rule, regulation, permit, or other
50-16 order of the district. District employees or agents acting under
50-17 this authority who enter private property shall observe the
50-18 establishment's rules and regulations concerning safety, internal
50-19 security, and fire protection and shall notify any occupant or
50-20 management of their presence and shall exhibit proper credentials.
50-21 Sec. 49.222. Eminent Domain. (a) A district or water
50-22 supply corporation may acquire by condemnation any land, easements,
50-23 or other property inside or outside the district boundaries, or the
50-24 boundaries of the certificated service area for a water supply
50-25 corporation, necessary for water, sanitary sewer, storm drainage,
50-26 or flood drainage or control purposes or for any other of its
50-27 projects or purposes, and may elect to condemn either the fee
51-1 simple title or a lesser property interest.
51-2 (b) The right of eminent domain shall be exercised in the
51-3 manner provided in Chapter 21, Property Code, except that a
51-4 district or a water supply corporation shall not be required to
51-5 give bond for appeal or bond for costs in any condemnation suit or
51-6 other suit to which it is a party and shall not be required to
51-7 deposit more than the amount of any award in any suit.
51-8 (c) The power of eminent domain may not be used for the
51-9 condemnation of land for the purpose of acquiring rights to
51-10 underground water or of water or water rights.
51-11 Sec. 49.223. Costs of Relocation of Property. (a) In the
51-12 event that the district or the water supply corporation, in the
51-13 exercise of the power of eminent domain or power of relocation, or
51-14 any other power, makes necessary the relocation, raising, lowering,
51-15 rerouting, or change in grade of or alteration in construction of
51-16 any road, bridge, highway, railroad, electric transmission line,
51-17 telegraph, or telephone properties, facilities, or pipelines, all
51-18 necessary relocations, raising, lowering, rerouting, or change in
51-19 grade or alteration of construction shall be done at the sole
51-20 expense of the district or the water supply corporation unless
51-21 otherwise agreed to in writing. Such relocation shall be
51-22 accomplished in a timely manner so that the project of the district
51-23 or the water supply corporation is not delayed.
51-24 (b) "Sole expense" means the actual cost of the relocation,
51-25 raising, lowering, rerouting, or change in grade or alteration of
51-26 construction and providing comparable replacement without enhancing
51-27 the facilities after deducting from it the net salvage value
52-1 derived from the old facility.
52-2 Sec. 49.224. POWER TO CONDEMN CEMETERIES. (a) The use of
52-3 land for the construction of district dams and creation of lakes
52-4 and reservoirs for the purpose of conservation and development of
52-5 the natural resources of this state is hereby declared to be
52-6 superior to all other uses; and for these purposes only a district
52-7 has the power of eminent domain to acquire land, improvements, and
52-8 other property owned and held for cemeteries or burial places
52-9 necessary for the construction of a dam or that lies inside the
52-10 area to be covered by the lake or reservoir or within 300 feet of
52-11 the high water line of the lake or reservoir.
52-12 (b) Except as otherwise provided by this subchapter, the
52-13 procedure in condemnation proceedings is governed by Chapter 21,
52-14 Property Code.
52-15 (c) Notice shall be served on the title owner of the land on
52-16 which the cemetery is situated as provided in Chapter 21, Property
52-17 Code. General notice to persons having relatives interred in the
52-18 cemetery shall be given by publication for two consecutive weeks in
52-19 a newspaper circulated in the county in which the cemetery is
52-20 situated.
52-21 (d) The measure of damages in these eminent domain
52-22 proceedings shall be assessed as in other condemnation cases. An
52-23 additional amount of damages shall be assessed to cover the cost of
52-24 removing and reinterring the bodies interred in the cemetery or
52-25 burial place and the cost of removing and resetting the monuments
52-26 or markers erected at the graves.
52-27 (e) The additional assessment shall be deposited in the
53-1 registry of the county court and disbursed only for the purpose of
53-2 removing and reinterring the bodies in other cemeteries in Texas
53-3 agreed on between the district and the relatives of the deceased
53-4 persons.
53-5 (f) If in any case the district and the relatives of a
53-6 deceased person cannot agree within 30 days on a cemetery for
53-7 reinterment, or no relatives appear within that time, then the
53-8 county judge shall designate the cemetery for reinterment.
53-9 (g) Instead of depositing the additional assessment in the
53-10 registry of the court, the district may execute a bond sufficient
53-11 to cover costs of removing and reinterring the bodies. The bond
53-12 shall be payable to and approved by the county judge and
53-13 conditioned that the bodies will be removed and reinterred as
53-14 provided by this section.
53-15 Sec. 49.225. Leases. A district may lease any of its
53-16 property, real or personal, to any person. The lease may contain
53-17 the terms and provisions that the board determines to be
53-18 advantageous to the district.
53-19 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
53-20 Property. (a) Any land, interest in land, or personal property
53-21 owned by the district which is found by the board to be surplus and
53-22 is not needed by the district may be sold under order of the board
53-23 either by public or private sale, or the land, interest in land, or
53-24 personal property may be exchanged for other land, interest in
53-25 land, or personal property needed by the district. Except as
53-26 provided in Subsection (b), land, interest in land, or personal
53-27 property must be exchanged for like fair market value, which value
54-1 may be determined by the district.
54-2 (b) Any property dedicated to or acquired by the district
54-3 without expending district funds may be abandoned or released to
54-4 the original grantor, the grantor's heirs, assigns, executors, or
54-5 successors upon terms and conditions deemed necessary or
54-6 advantageous to the district and without receiving compensation for
54-7 such abandonment or release. District property may also be
54-8 abandoned, released, exchanged, or transferred to another district,
54-9 municipality, county, countywide agency, or authority upon terms
54-10 and conditions deemed necessary or advantageous to the district.
54-11 Narrow strips of property resulting from boundary or surveying
54-12 conflicts or similar causes, or from insubstantial encroachments by
54-13 abutting property owners, may be abandoned, released, exchanged, or
54-14 transferred to such abutting owners upon terms and conditions
54-15 deemed necessary or advantageous to the district. Chapter 272,
54-16 Local Government Code, shall not apply to this subsection.
54-17 (c) Before either a public or a private sale of real
54-18 property not required by the district, the district shall give
54-19 notice of the intent to sell by publishing notice once a week for
54-20 two consecutive weeks in one or more newspapers with general
54-21 circulation in the district.
54-22 (d) If the district has outstanding bonds secured by a
54-23 pledge of tax revenues, the proceeds of the sale of property not
54-24 required by the district shall be applied to retire outstanding
54-25 bonds of the district when required by the district's applicable
54-26 bond resolutions.
54-27 (e) If the district does not have any outstanding bonds, the
55-1 proceeds derived from the sale of the personal property or land not
55-2 required by the district may be used for any lawful purpose.
55-3 Sec. 49.227. Authority to Act Jointly. A district or water
55-4 supply corporation may act jointly with any other person or entity,
55-5 private or public, whether within the State of Texas or the United
55-6 States, in the performance of any of the powers and duties
55-7 permitted by this code or any other laws.
55-8 Sec. 49.228. Damage to Property. A person who wilfully
55-9 destroys, defaces, damages, or interferes with district or water
55-10 supply corporation property is guilty of a Class B misdemeanor.
55-11 Sec. 49.229. Grants and Gifts. A district may accept
55-12 grants, gratuities, advances, and loans in any form from any source
55-13 approved by the board, including any governmental entity, any
55-14 private or public corporation, and any other person and may make
55-15 and enter into contracts, agreements, and covenants the board
55-16 considers appropriate in connection with acceptance of grants,
55-17 gratuities, advances, and loans.
55-18 Sec. 49.230. Area-Wide Wastewater Treatment. The powers and
55-19 duties conferred on the district are granted subject to the policy
55-20 of the state to encourage the development and use of integrated
55-21 area-wide wastewater collection, treatment, and disposal systems to
55-22 serve the wastewater disposal needs of the citizens of the state
55-23 whenever economically feasible and competitive to do so, it being
55-24 an objective of the policy to avoid the economic burden to the
55-25 people and the impact on the quality of the water in the state that
55-26 result from the construction and operation of numerous small
55-27 wastewater collection, treatment, and disposal facilities to serve
56-1 an area when an integrated area-wide wastewater collection,
56-2 treatment, and disposal system for the area can be reasonably
56-3 provided.
56-4 Sec. 49.231. STANDBY FEES. (a) In this section:
56-5 (1) "Standby fee" means a charge, other than a tax,
56-6 imposed on undeveloped property for the availability of potable
56-7 water, sanitary sewer, or drainage facilities and services.
56-8 (2) "Undeveloped property" means a tract, lot, or
56-9 reserve in the district to which no potable water, sanitary sewer,
56-10 or drainage connections have been made for which:
56-11 (A) water, sanitary sewer, or drainage
56-12 facilities and services are available;
56-13 (B) water supply, wastewater treatment plant
56-14 capacity, or drainage capacity sufficient to serve the property is
56-15 available; or
56-16 (C) major water supply lines, wastewater
56-17 collection lines, or drainage facilities with capacity sufficient
56-18 to serve the property are available.
56-19 (b) A district that proposes to provide or actually provides
56-20 retail potable water or sewer utility services, or drainage
56-21 services as the principal function of the district, may, with the
56-22 approval of the commission, adopt and impose on the owners of
56-23 undeveloped property in the district a standby fee in addition to
56-24 taxes levied by the district. A district may not impose a standby
56-25 fee for debt service purposes on undeveloped property unless the
56-26 facilities and services available to the property have been
56-27 financed by the district; however, a district may impose a standby
57-1 fee for operating and maintaining facilities that it has not
57-2 financed. The district may impose standby fees in different
57-3 amounts to fairly reflect the level and type of services and
57-4 facilities available to serve different property. The intent of
57-5 the standby fee is to distribute a fair portion of the cost burden
57-6 for operating and maintaining the facilities and for financing
57-7 capital costs of the facilities to owners of property who have not
57-8 constructed improvements but have potable water, sewer, or drainage
57-9 capacity available. Any revenues collected from the standby fees
57-10 shall be used to pay operation and maintenance expenses, to pay
57-11 debt service on the bonds, or both.
57-12 (c) If a district described in Subsection (b) desires to
57-13 adopt and impose a standby fee, the district shall submit to the
57-14 commission an application for authority to adopt and impose the
57-15 standby fee. The application must describe the tracts of
57-16 undeveloped property in the district and state the amount of the
57-17 proposed fee.
57-18 (d) The executive director shall examine an application
57-19 submitted under Subsection (c) and shall investigate the financial
57-20 condition of the district, including the district's assets,
57-21 liabilities, sources of revenue, level of utility service rates,
57-22 and level of debt service and maintenance tax rates. On the
57-23 request of the executive director, the district shall submit any
57-24 information the executive director considers relevant to the
57-25 examination and investigation. The executive director shall
57-26 prepare a written report on the application and the district's
57-27 financial condition, retain a copy of the report, and send a copy
58-1 of the report to the commission and the district.
58-2 (e) The commission shall hold a hearing on an application
58-3 submitted under Subsection (c). Notice of the hearing shall be
58-4 published in a newspaper of general circulation in the county or
58-5 counties in which the district is located once a week for two
58-6 consecutive weeks. The first publication must occur not later than
58-7 the 30th day before the date of the hearing. The district shall
58-8 send, not later than the 30th day before the date of the hearing,
58-9 notice of the hearing by certified mail, return receipt requested,
58-10 to each owner of undeveloped property in the district. On the date
58-11 the application is filed, the district's tax assessor and collector
58-12 shall certify to the district the names of the persons owning
58-13 undeveloped land in the district as reflected by the most recent
58-14 certified tax roll of the district. Notice of the hearing must be
58-15 sent by certified mail, return receipt requested, to each mortgagee
58-16 of record that has submitted a written request to be informed of
58-17 any hearings. To be effective, the written request must be
58-18 received by the district not later than the 60th day before the
58-19 date of the hearing. The written request for notice must include
58-20 the name and address of the mortgagee, the name of the property
58-21 owner in the district, and a brief property description.
58-22 (f) The commission shall consider the application, the
58-23 report of the executive director, and any other evidence allowed by
58-24 commission rule. The commission may approve the application only
58-25 if the commission finds that the fee is necessary to maintain the
58-26 financial integrity and stability of the district and fairly
58-27 allocates the costs of district facilities and services among
59-1 property owners of the district.
59-2 (g) After a hearing on an application under Subsection (e),
59-3 the commission shall issue an order approving or disapproving the
59-4 application. The commission shall retain a copy of the order and
59-5 send a copy of the order to the district.
59-6 (h) The commission may approve the adoption and imposition
59-7 of the standby fee for a period of not more than three years. The
59-8 imposition of a standby fee may be renewed for additional periods
59-9 of not more than three years each in the same manner provided in
59-10 this section for initial approval of the standby fee.
59-11 (i) If approved by the commission, the board by resolution
59-12 or order may impose an annual standby fee on undeveloped land in
59-13 the district.
59-14 (j) The board may:
59-15 (1) charge interest, at the rate of one percent a
59-16 month, on a standby fee not paid in a timely manner in accordance
59-17 with the resolution or order imposing the standby fee; and
59-18 (2) refuse to provide potable water, sanitary sewer,
59-19 or drainage service to the property for which the fee was assessed
59-20 until all delinquent standby fees on the property and interest on
59-21 those fees are fully paid.
59-22 (k) A standby fee imposed under this section is a personal
59-23 obligation of the person owning the undeveloped property on January
59-24 1 of the year for which the fee is assessed. A person is not
59-25 relieved of the obligation on transfer of title to the property.
59-26 On January 1 of each year, a lien attaches to undeveloped property
59-27 to secure payment of any standby fee imposed under this section and
60-1 the interest, if any, on the fee. The lien has the same priority
60-2 as a lien for taxes of the district.
60-3 (l) If a standby fee imposed under this section is not paid
60-4 in a timely manner, a district may file suit to foreclose the lien
60-5 securing payment of the fee and interest or to enforce the personal
60-6 obligation for the fee and interest, or both. The district may
60-7 recover, in addition to the fee and interest, reasonable costs,
60-8 including attorney's fees, incurred by the district in enforcing
60-9 the lien or obligation not to exceed 20 percent of the delinquent
60-10 fee and interest. A suit authorized by this subsection must be
60-11 filed not later than the fourth anniversary of the date the fee
60-12 became due. A fee delinquent for more than four years and interest
60-13 on the fee are considered paid unless a suit is filed before the
60-14 expiration of the four-year period.
60-15 (m) Chapter 395, Local Government Code, does not apply to a
60-16 standby fee imposed under this section.
60-17 (n) For purposes of title insurance policies issued under
60-18 the authority of Chapter 9, Insurance Code, standby fees are
60-19 considered taxes.
60-20 Sec. 49.232. LABORATORY SERVICES. A district may contract
60-21 with any person, within or without the boundaries of the district,
60-22 to provide or receive laboratory services related to environmental,
60-23 health, or drinking water testing.
60-24 (Sections 49.233-49.270 reserved for expansion
60-25 SUBCHAPTER I. CONSTRUCTION CONTRACTS
60-26 Sec. 49.271. CONTRACTS FOR CONSTRUCTION WORK. (a) Any
60-27 contract made by the board for construction work shall conform to
61-1 the provisions of this chapter.
61-2 (b) The contract shall contain, incorporate by reference, or
61-3 have attached to it the specifications, plans, and details for work
61-4 included in the contract. All work shall be done in accordance
61-5 with these plans and specifications and any authorized change
61-6 orders under the supervision of the board or its designee.
61-7 (c) The district may adopt minimum criteria for the
61-8 qualifications of bidders on its construction contracts and for
61-9 sureties issuing payment and performance bonds. For contracts over
61-10 $25,000, the district shall require a person who bids to submit a
61-11 certified or cashier's check on a responsible bank in the state
61-12 equal to at least two percent of the total amount of the bid, or a
61-13 bid bond of at least two percent of the total amount of the bid
61-14 issued by a surety legally authorized to do business in this state,
61-15 as a good faith deposit to ensure execution of the contract. If
61-16 the successful bidder fails or refuses to enter into a proper
61-17 contract with the district, or fails or refuses to furnish the bond
61-18 required by law, the bidder forfeits the deposit.
61-19 (d) The district may also require attendance by a principal
61-20 of each prospective bidder at mandatory pre-bid conferences and may
61-21 make any reasonable additional requirements regarding the taking of
61-22 bids the district may deem appropriate in order to obtain
61-23 competitive bids from responsible contractors and to minimize
61-24 contract disputes.
61-25 Sec. 49.272. REPORTS FURNISHED TO PROSPECTIVE BIDDERS. The
61-26 board shall furnish to any person who desires to bid on
61-27 construction work, and who makes a request in writing, a copy of
62-1 the engineer's report or plans and specifications showing the
62-2 details of the work to be done. The board may charge for each copy
62-3 of the engineer's report or plans and specifications an amount
62-4 sufficient to cover the cost of making the copy.
62-5 Sec. 49.273. CONSTRUCTION CONTRACT AWARD. (a) The board
62-6 shall contract for construction in accordance with this section.
62-7 The bidding documents, plans, specifications, and other data needed
62-8 to bid on the project must be available at the time of the first
62-9 advertisement and the advertisement shall state the location at
62-10 which these documents may be reviewed.
62-11 (b) A construction contract may cover all the work to be
62-12 provided by the district or the various elements of the work may be
62-13 segregated for the purpose of receiving bids and awarding
62-14 contracts. A contract may provide that the work will be
62-15 constructed in stages over a period of years.
62-16 (c) A construction contract may provide for the payment of a
62-17 total sum that is the completed cost of the work or may be based on
62-18 bids to cover cost of units of the various elements entering into
62-19 the work as estimated and approximately specified by the district's
62-20 engineers, or a contract may be let and awarded in any other form
62-21 or composite of forms and to any responsible person or persons
62-22 that, in the board's judgment, will be most advantageous to the
62-23 district and result in the best and most economical completion of
62-24 the district's proposed plants, improvements, facilities, works,
62-25 equipment, and appliances.
62-26 (d) For construction contracts for $25,000 or more, the
62-27 board shall advertise the letting of the contract, including the
63-1 general conditions, time, and place of opening of sealed bids. The
63-2 notice shall be published in one or more newspapers circulated in
63-3 each county in which part of the district is located. If one
63-4 newspaper meets both of these requirements, publication in such
63-5 newspaper is sufficient. If there are more than four counties in
63-6 the district, notice may be published in any newspaper with general
63-7 circulation in the district. The notice shall be published once a
63-8 week for three consecutive weeks before the date that the bids are
63-9 opened, and the first publication shall be not later than the 21st
63-10 day before the date of the opening of the sealed bids.
63-11 (e) For construction contracts for $15,000 or more but less
63-12 than $25,000, the board shall solicit written competitive bids on
63-13 uniform written specifications from at least three bidders.
63-14 (f) For construction contracts of less than $15,000, the
63-15 board is not required to advertise or seek competitive bids.
63-16 (g) The board may not subdivide work to avoid the
63-17 advertising requirements specified in this section.
63-18 (h) The board may not accept bids that include substituted
63-19 items unless the substituted items were included in the original
63-20 bid proposal and all bidders had the opportunity to bid on the
63-21 substituted items or unless notice is given to all bidders at a
63-22 mandatory pre-bid conference.
63-23 (i) Change orders to contracts may be issued only as a
63-24 result of unanticipated conditions encountered during construction
63-25 or changes in regulatory criteria or to facilitate project
63-26 coordination with other political entities.
63-27 (j) The provisions of this subchapter do not apply to
64-1 contracts for personal or professional services or for a utility
64-2 service operator or to contracts made by a district engaged in the
64-3 distribution and sale of electric energy to the public.
64-4 (k) The provisions of this subchapter do not apply to high
64-5 technology procurements. The provisions of Sections 252.021(a) and
64-6 252.042, Local Government Code, shall apply to high technology
64-7 procurements.
64-8 Sec. 49.274. EMERGENCY APPROVAL OF DISTRICT PROJECTS. If a
64-9 district experiences an emergency condition that may create a
64-10 serious health hazard or unreasonable economic loss to the district
64-11 that requires immediate corrective action, the district may
64-12 negotiate limited duration contracts to make the necessary repairs.
64-13 The district shall submit to the executive director details
64-14 describing the specific serious health hazard or unreasonable
64-15 economic loss as soon as practicable following the issuance of the
64-16 contracts. Whenever possible, the district should obtain prior
64-17 approval of the executive director before authorizing the contract,
64-18 but failure to obtain prior approval shall not void the contract.
64-19 This section does not apply to special water authorities.
64-20 Sec. 49.275. CONTRACTOR'S BOND. Any person, firm,
64-21 partnership, or corporation to whom a contract is let must give
64-22 good and sufficient performance and payment bonds in accordance
64-23 with Chapter 2253, Government Code, and any minimum criteria for
64-24 sureties issuing such bonds adopted by a district in accordance
64-25 with Section 49.271.
64-26 Sec. 49.276. PAYMENT FOR CONSTRUCTION WORK. (a) The
64-27 district shall pay the contract price of construction contracts
65-1 only as provided in this section.
65-2 (b) The district will make progress payments under
65-3 construction contracts monthly as the work proceeds, or at more
65-4 frequent intervals as determined by the board or its designee, on
65-5 estimates approved by the board or its designee.
65-6 (c) If requested by the district or district engineer, the
65-7 contractor shall furnish a breakdown of the total contract price
65-8 showing the amount included for each principal category of the
65-9 work, in such detail as requested, to provide a basis for
65-10 determining progress payments. In the preparation of estimates,
65-11 the district engineer may authorize material delivered on the site
65-12 and preparatory work done to be considered if the consideration is
65-13 specifically authorized by the contract and if the contractor
65-14 furnishes satisfactory evidence that he has acquired title to the
65-15 material and that it will be utilized on the work covered by the
65-16 contract.
65-17 (d) In making progress payments, 10 percent of the estimated
65-18 amount shall be retained until final completion and acceptance of
65-19 the contract work. However, if the board at any time after 50
65-20 percent of the work has been completed finds that satisfactory
65-21 progress is being made, it may authorize any of the remaining
65-22 progress payments to be made in full. Also, if the work is
65-23 substantially complete, the board, if it finds the amount retained
65-24 to be in excess of the amount adequate for the protection of the
65-25 district, at its discretion may release to the contractor all or a
65-26 portion of the excess amount. The district is not obligated to pay
65-27 interest on amounts retained except as provided herein. The
66-1 district shall not be obligated to pay any interest on the 10
66-2 percent retainage held on the first 50 percent of work completed.
66-3 If the district holds any retainage on the remaining 50 percent of
66-4 the work completed, the district shall pay interest on such
66-5 retainage from the date the retainage is withheld to the date of
66-6 payment to the contractor. The interest rate to be paid on such
66-7 retainage shall be the rate of interest paid by the district's
66-8 depository bank on interest bearing accounts of similar amounts
66-9 during the period of time interest accrues as provided herein.
66-10 (e) On completion and acceptance of each separate project,
66-11 public work, or other division of the contract, on which the price
66-12 is stated separately in the contract, payment may be made without
66-13 retention of a percentage.
66-14 Sec. 49.277. INSPECTION OF AND REPORTS ON CONSTRUCTION WORK.
66-15 (a) The board shall have control of construction work being done
66-16 for the district under contract to determine whether or not the
66-17 contract is being fulfilled and shall have the construction work
66-18 inspected by the district engineer or other designated person.
66-19 (b) During the progress of the construction work, the
66-20 district engineer or other designated person shall submit to the
66-21 board detailed written reports showing whether or not the
66-22 contractor is complying with the contract, and when the work is
66-23 completed the district engineer shall submit to the board a final
66-24 detailed report including as-built plans of the facilities showing
66-25 whether or not the contractor has fully complied with the contract.
66-26 (Sections 49.278-49.300 reserved for expansion
66-27 SUBCHAPTER J. ANNEXATION OR EXCLUSION OF LAND
67-1 Sec. 49.301. ADDING LAND BY PETITION OF LANDOWNER. (a) In
67-2 addition to any other provision provided by law, the owner or
67-3 owners of land whether or not contiguous to the district or
67-4 otherwise may file with the board a petition requesting that there
67-5 be included in the district the land described in the petition by
67-6 metes and bounds or by lot and block number if there is a recorded
67-7 plat of the area to be included in the district. The petition may
67-8 request the district to condition the annexation on certain
67-9 conditions, including the voter authorization of bonds to serve the
67-10 area to be annexed.
67-11 (b) If the district has bonds, notes, or other obligations
67-12 outstanding or bonds payable in whole or in part from taxes that
67-13 have been voted but are unissued, the board may require the
67-14 petitioner or petitioners to assume their share of the outstanding
67-15 bonds, notes, or other obligations and the voted but unissued tax
67-16 bonds of the district and authorize the board to levy a tax on
67-17 their property in each year while any of the bonds, notes, or other
67-18 obligations payable in whole or in part from taxation are
67-19 outstanding to pay their share of the indebtedness.
67-20 (c) The petition of the landowner to add land to the
67-21 district shall be signed and executed in the manner provided by law
67-22 for the conveyance of real estate.
67-23 (d) The board shall hear and consider the petition and may
67-24 add to the district the land described in the petition if it is
67-25 feasible, practicable, and to the advantage of the district and if
67-26 the district's system and other improvements of the district are
67-27 sufficient or will be sufficient to supply the added land without
68-1 injuring land already in the district.
68-2 (e) If the district has bonds payable in whole or in part
68-3 from taxation that are voted but unissued at the time of an
68-4 annexation and the petitioners assume the bonds and authorize the
68-5 district to levy a tax on their property to pay the bonds, then the
68-6 board may issue the voted but unissued bonds even though the
68-7 boundaries of the district have been altered since the
68-8 authorization of the bonds.
68-9 (f) Granted petitions shall be filed for record and shall be
68-10 recorded in the office of the county clerk of the county or
68-11 counties in which the added land is located.
68-12 Sec. 49.302. ADDING LAND BY PETITION OF LESS THAN ALL THE
68-13 LANDOWNERS. (a) In addition to the method of adding land to a
68-14 district described in Section 49.301 of this subchapter, defined
68-15 areas of land, whether or not they are contiguous to the district,
68-16 may be annexed to the district in the manner set forth in this
68-17 section.
68-18 (b) A petition requesting the annexation of a defined area
68-19 signed by a majority in value of the owners of land in the defined
68-20 area, as shown by the tax rolls of the county or counties in which
68-21 such area is located, or signed by 50 landowners if the number of
68-22 landowners is more than 50, shall describe the land by metes and
68-23 bounds or by lot and block number if there is a recorded plat of
68-24 the area and shall be filed with the secretary of the board.
68-25 (c) It shall be the duty of the board to pass an order
68-26 fixing a time and place at which the petition for annexation shall
68-27 be heard that shall not be less than 30 days from the day of the
69-1 order calling the hearing.
69-2 (d) The secretary of the board shall issue a notice setting
69-3 forth the time and place of the hearing and describing the area
69-4 proposed to be annexed. Notice of the hearing shall be given by
69-5 posting copies of the notice in three public places in the district
69-6 and in one public place in the area proposed to be annexed for at
69-7 least 14 days before the day of the hearing and by publishing a
69-8 copy of the notice in a newspaper of general circulation in the
69-9 county or counties in which the area proposed to be annexed is
69-10 located one time at least 14 days before the day of the hearing.
69-11 (e) If upon the hearing of the petition it is found by the
69-12 board that the proposed annexation of the area to the district is
69-13 feasible, practicable, and to the advantage of the district and if
69-14 the district's system and other improvements of the district are
69-15 sufficient or will be sufficient to supply the added land without
69-16 injuring land already in the district, then the board, by order
69-17 entered in its minutes, may receive the proposed area as an
69-18 addition to and to become a part of the district. The order adding
69-19 the proposed territory to the district need not include all of the
69-20 land described in the petition if at the hearing a modification or
69-21 change is found necessary or desirable by the board.
69-22 (f) A copy of the order annexing land to the district,
69-23 signed by a majority of the members of the board and attested by
69-24 the secretary of the board, shall be filed and recorded in the deed
69-25 records of the county or counties in which the district is located
69-26 if the land is finally annexed to the district.
69-27 (g) After the order is recorded the area shall be a
70-1 component part of the district.
70-2 (h) The annexed area shall bear its pro rata share of all
70-3 bonds, notes, or other obligations or taxes that may be owed,
70-4 contracted, or authorized by the district to which it has been
70-5 added.
70-6 (i) Before the added area shall be subject to all or any
70-7 part of the bonds, notes, obligations, or taxes created before the
70-8 annexation of the area to the district, the board shall order an
70-9 election to be held in the district, as enlarged by reason of the
70-10 annexation of the area, on the question of the assumption of the
70-11 bonds, notes, obligations, and taxes by the annexed area.
70-12 (j) At the same election, the board may also submit a
70-13 proposition on the question of whether the annexed area should
70-14 assume its part of the bonds of the district payable in whole or in
70-15 part from taxes that have been voted previously but not yet issued
70-16 or sold and the levy of an ad valorem tax on all taxable property
70-17 within the area annexed along with a tax on the rest of the
70-18 district for the payment of the bonds.
70-19 (k) If the election results favorably, the district shall be
70-20 authorized to issue its voted but unissued tax bonds even though
70-21 the boundaries of the district have been changed since the original
70-22 election approving the bonds.
70-23 (l) At the election called for the purpose of determining
70-24 whether the annexed area shall assume the bonds, notes, or other
70-25 obligations or taxes of the district, the board in a separate
70-26 proposition may also submit the question of whether the board
70-27 should be authorized to issue bonds payable in whole or in part
71-1 from taxes to provide service to the area annexed.
71-2 (m) In the event that the district has bonds, notes, or
71-3 obligations or taxes that may be owed, contracted, or authorized at
71-4 the time an area is annexed or if the district has voted but
71-5 unissued bonds payable in whole or in part from taxes at the time
71-6 of an annexation, the board may provide in its order annexing an
71-7 area to the district that the annexation will not be complete or
71-8 final unless the indebtedness, tax or bond, note, or other
71-9 obligation assumption election results favorably to the assumption
71-10 of the district's outstanding bonds, notes, or other obligations
71-11 and voted but unissued bonds.
71-12 (n) If the board elects to submit the question of whether
71-13 the board should be authorized to issue bonds to provide service to
71-14 the area annexed, the board may also provide in its order annexing
71-15 an area to the district that the annexation will not be complete
71-16 unless the election results favorably to the issuance of bonds to
71-17 serve the annexed area.
71-18 (o) Whenever an election is ordered to be held in the
71-19 district for the purpose of the assumption of bonds, notes, or
71-20 other obligations or taxes or the assumption of voted but unissued
71-21 bonds by reason of the annexation of any area, then the election
71-22 shall be held and notice given as provided for bond elections held
71-23 by the district.
71-24 (p) The district has the same right and duty to furnish
71-25 service to the annexed land that it previously had to furnish
71-26 service to other land in the district and the board shall endeavor
71-27 to serve all land in the district without discrimination.
72-1 Sec. 49.303. EXCLUDING LAND FROM DISTRICT. (a) Before a
72-2 district orders an election for the authorization of bonds payable
72-3 in whole or in part from taxes, the board may, on its own motion,
72-4 call a hearing on the question of the exclusion of land from the
72-5 district under the provisions of this section and Sections
72-6 49.304-49.307, if the exclusions are practicable, just, or
72-7 desirable.
72-8 (b) The board must call a hearing on the exclusion of land
72-9 or other property from the district on the written petition of any
72-10 landowner or property owner in the district filed with the
72-11 secretary of the board before the first election on the question of
72-12 whether bonds should be issued payable in whole or in part from
72-13 taxes is ordered.
72-14 (c) The board may hold a hearing on the exclusion of land or
72-15 other property from the district if the district has not issued
72-16 bonds payable in whole or in part from taxes, and if a landowner or
72-17 property owner submits a signed petition to the secretary of the
72-18 board evidencing the consent of the owners of a majority of the
72-19 acreage proposed to be excluded and a majority of the taxable
72-20 property in the district, as reflected by the most recent certified
72-21 tax roll of the district.
72-22 (d) A district that has previously held an election at which
72-23 approval was given for the issuance of bonds payable in whole or in
72-24 part from taxes may not rely on that election for the issuance of
72-25 the bonds if after the bond election, but before the bonds are
72-26 issued, land is excluded from the district as provided by this
72-27 subchapter. The board must call and hold another bond election and
73-1 receive voter approval as provided by this subchapter before
73-2 issuing those bonds.
73-3 Sec. 49.304. HEARING TO ANNOUNCE PROPOSED EXCLUSIONS AND TO
73-4 RECEIVE PETITIONS. (a) If the board determines that an exclusion
73-5 hearing should be held or if a written petition requesting an
73-6 exclusion hearing is filed with the secretary of the board as
73-7 provided in Section 49.303, the board shall give notice of the time
73-8 and place of a hearing to announce its own conclusions relating to
73-9 land or other property to be excluded and to receive petitions for
73-10 exclusion of land or other property.
73-11 (b) The board shall publish notice of the hearing once a
73-12 week for two consecutive weeks in one or more newspapers with
73-13 general circulation in the district. The first publication shall
73-14 appear at least 14 days before the day of the hearing.
73-15 (c) The notice shall advise all interested property owners
73-16 of their right to present petitions for exclusions of land or other
73-17 property and to offer evidence in support of the petitions and
73-18 their right to contest any proposed exclusion based on either a
73-19 petition or the board's own conclusions and to offer evidence in
73-20 support of the contest.
73-21 Sec. 49.305. PETITION. (a) A petition for exclusion of
73-22 land must accurately describe by metes and bounds or lot and block
73-23 number the land to be excluded. A petition for exclusion of other
73-24 property must describe the property to be excluded.
73-25 (b) A petition for exclusion shall be filed with the
73-26 district at least seven days before the hearing and shall state
73-27 clearly the particular grounds on which the exclusion is sought.
74-1 Only the stated grounds shall be considered.
74-2 Sec. 49.306. GROUNDS FOR EXCLUSION. Exclusions from the
74-3 district may be made on the grounds that:
74-4 (1) to retain certain land or other property within
74-5 the district's taxing power would be arbitrary and unnecessary to
74-6 conserve the public welfare, would impair or destroy the value of
74-7 the property desired to be excluded, and would constitute the
74-8 arbitrary imposition of a confiscatory burden;
74-9 (2) to retain any given land or other property in the
74-10 district and to extend to it, either presently or in the future,
74-11 the benefits, service, or protection of the district's facilities
74-12 would create an undue and uneconomical burden on the remainder of
74-13 the district; or
74-14 (3) the land desired to be excluded cannot be bettered
74-15 as to conditions of living and health, provided with water or sewer
74-16 service, protected from flood, drained, freed from interruption of
74-17 traffic caused by excess of water on the roads, highways, or other
74-18 means of transportation serving the land, or otherwise benefited by
74-19 the district's proposed improvements.
74-20 Sec. 49.307. HEARING AND ORDER EXCLUDING LAND. (a) The
74-21 board may adjourn the hearing from one day to another and until all
74-22 persons desiring to be heard are heard. The board immediately
74-23 shall specifically describe all property it proposes to exclude on
74-24 its own motion and shall hear first any protests and evidence
74-25 against exclusions proposed on the board's own motion.
74-26 (b) After considering all engineering data and other
74-27 evidence presented to it, the board shall determine whether the
75-1 facts disclose the affirmative of the propositions stated in
75-2 Subdivision (1) or (2) or, if appropriate, in Subdivision (3) of
75-3 Section 49.306. If the affirmative exists, the board shall enter
75-4 an order excluding all land or other property falling within the
75-5 conditions defined by the respective subdivisions and shall
75-6 redefine in the order the boundaries of the district to embrace all
75-7 land not excluded. A copy of the order excluding land and
75-8 redefining the boundaries of the district shall be filed in the
75-9 deed records of the county or counties in which the district is
75-10 situated.
75-11 Sec. 49.308. SUIT TO REVIEW EXCLUSION. (a) Any person
75-12 owning an interest in land affected by the order may file a
75-13 petition within 20 days after the effective date of the order to
75-14 review, set aside, modify, or suspend the order.
75-15 (b) The venue in any action shall be in any district court
75-16 that has jurisdiction in the county in which the district is
75-17 located. If the district includes land in more than one county,
75-18 the venue shall be in the district court having jurisdiction in the
75-19 county in which the major portion of the acreage of the land sought
75-20 to be excluded from the district is located.
75-21 (c) A person may appeal from the judgment or order of a
75-22 district court in a suit brought under the provisions of this
75-23 section to the court of civil appeals and supreme court as in other
75-24 civil cases in which the district court has original jurisdiction.
75-25 The appeal is subject to the statutes and rules of practice and
75-26 procedure in civil cases.
75-27 Sec. 49.309. EXCLUSION OF NONIRRIGATED PROPERTY. For the
76-1 purposes of this section and Sections 49.310-49.314, the following
76-2 definitions shall apply:
76-3 (1) "Nonirrigated property" means land that:
76-4 (A) is not irrigable;
76-5 (B) the owners of a majority of the acreage of
76-6 which no longer intend to irrigate; or
76-7 (C) has been subdivided into:
76-8 (i) town lots, or town lots and blocks, or
76-9 small parcels of the same general nature as town lots; or
76-10 (ii) town blocks and lots designed,
76-11 intended, or suitable for residential, commercial, or other
76-12 nonagricultural purposes, as distinguished from farm acreage
76-13 whether subdivided into a subdivision or not; and
76-14 (iii) including streets, alleys, parkways,
76-15 parks, and railroad property and rights-of-way located in the
76-16 subdivided land.
76-17 The property described in Subdivision (1) shall be considered
76-18 nonirrigated property regardless of whether the land is within or
76-19 near a municipality and regardless of whether a plat or map of the
76-20 subdivision has been duly filed for record and recorded in the
76-21 office of the county clerk of the county in which the land or any
76-22 part of the land is situated.
76-23 The term does not include land that within the year preceding
76-24 the date of the hearing under Section 49.310 was used for farming
76-25 or agricultural purposes.
76-26 (2) "District" means a water control and improvement,
76-27 water improvement, or irrigation district the principal purpose of
77-1 which is furnishing water for the irrigation of agricultural lands
77-2 or that is principally engaged in furnishing water for the
77-3 irrigation of agricultural lands.
77-4 Sec. 49.310. AUTHORITY TO EXCLUDE LAND. (a) A petition for
77-5 exclusion may be filed by the owner or owners, or their authorized
77-6 agent, of a majority in acreage of nonirrigated property included
77-7 within the boundaries of a district.
77-8 (b) Upon receipt of a petition for exclusion, or upon its
77-9 own motion, a district shall issue an order excluding the property
77-10 if, after notice and hearing, the board finds that:
77-11 (1) the described property is nonirrigated property;
77-12 (2) the applicable requirements of Section 49.311 have
77-13 been satisfied;
77-14 (3) the owner or owners do not object to the exclusion
77-15 of their nonirrigated property; and
77-16 (4) it is in the best interest of the district and of
77-17 the described property to exclude that property from the district.
77-18 (c) The district shall follow the notice and hearing
77-19 provisions and other procedural requirements for excluding
77-20 territory applicable to that district as set out in Sections
77-21 49.303-49.307.
77-22 Sec. 49.311. CONSENT FROM HOLDERS OF INDEBTEDNESS. If the
77-23 district has outstanding bonded indebtedness, or indebtedness under
77-24 a loan from a governmental agency, a written consent from an
77-25 authorized representative of the holder or holders of the
77-26 indebtedness consenting to the exclusion shall be obtained and
77-27 filed with the district before the hearing.
78-1 Sec. 49.312. RESULTS OF EXCLUSION. (a) Upon issuance of an
78-2 order excluding property, that property is no longer a part of the
78-3 district and is not entitled to water service from the district.
78-4 (b) Any taxes, assessments, or other charges owed to the
78-5 district at the time of exclusion remain the obligation of the
78-6 owner of the excluded property and continue to be secured by
78-7 statutory liens on the property, if any.
78-8 (c) Once excluded, the landowner has no further liability to
78-9 the district for future taxes, assessments, or other charges of the
78-10 district.
78-11 (d) A copy of the order excluding the property from the
78-12 district certified and acknowledged by the secretary of the board
78-13 shall be recorded by the district in the real property records of
78-14 the county in which the excluded property is located as evidence of
78-15 the exclusion.
78-16 Sec. 49.313. DISTRICT FACILITIES ON EXCLUDED PROPERTY. If
78-17 any canals, ditches, pipelines, pumps, or other facilities of the
78-18 district are located on lands excluded by the resolution of the
78-19 board, the exclusion does not affect or interfere with any rights
78-20 that the district has to maintain and continue operation of the
78-21 facilities as located for the purpose of servicing lands remaining
78-22 in the district.
78-23 Sec. 49.314. WATER ALLOCATIONS. (a) After the district
78-24 adopts an order excluding nonirrigated property, a city or other
78-25 water supply corporation that serves the excluded land with a
78-26 potable water supply may petition the district to apply to the
78-27 commission to convert the proportionate irrigation water allocation
79-1 of the land excluded as nonirrigated property, as determined by the
79-2 district, from irrigation use to municipal use allocation.
79-3 (b) The district shall make such application to the
79-4 commission within 30 days of the filing of a petition by the city
79-5 or water supply corporation that serves the land with a potable
79-6 water supply, provided the city or other water supply corporation
79-7 pays the district the amount the district estimates will be its
79-8 reasonable expenses and attorney's fees incurred in the commission
79-9 conversion proceedings and enters into an agreement with the
79-10 district setting forth the basis on which the water allocation
79-11 shall be delivered, or made available, to the city or water supply
79-12 corporation covering such terms as the entities may agree to, and
79-13 in the event the parties cannot agree, such dispute shall not be
79-14 subject to the jurisdiction of the commission, or its successors,
79-15 under this code but subject to resolution through alternative
79-16 dispute resolution. In such commission proceeding, the city or
79-17 water supply corporation shall provide evidence to the commission
79-18 of the current or projected need within a five year period for the
79-19 municipal-use water allocation after such conversion as a condition
79-20 of such conversion of use of the district's water rights from
79-21 irrigation use to municipal use.
79-22 (Sections 49.315-49.320 reserved for expansion
79-23 SUBCHAPTER K. DISSOLUTION
79-24 Sec. 49.321. DISSOLUTION AUTHORITY. After notice and
79-25 hearing, the commission may dissolve any district that is inactive
79-26 for a period of five consecutive years and has no outstanding
79-27 bonded indebtedness.
80-1 Sec. 49.322. NOTICE OF HEARING. (a) The commission shall
80-2 give notice of the dissolution hearing that briefly describes the
80-3 reasons for the proceeding.
80-4 (b) The notice shall be published once each week for two
80-5 consecutive weeks before the day of hearing in a newspaper having
80-6 general circulation in the county or counties in which the district
80-7 is located. The first publication shall be 30 days before the day
80-8 of the hearing.
80-9 (c) The commission shall give notice of the hearing by first
80-10 class mail addressed to the directors of the district according to
80-11 the last record on file with the executive director.
80-12 Sec. 49.323. INVESTIGATION. The executive director shall
80-13 investigate the facts and circumstances of the district to be
80-14 dissolved and the result of the investigation shall be included in
80-15 a written report.
80-16 Sec. 49.324. ORDER OF DISSOLUTION. The commission may enter
80-17 an order dissolving the district at the conclusion of the hearing
80-18 if it finds that the district has performed none of the functions
80-19 for which it was created for a period of five consecutive years
80-20 before the day of the proceeding and that the district has no
80-21 outstanding bonded indebtedness.
80-22 Sec. 49.325. CERTIFIED COPY OF ORDER. The commission shall
80-23 file a certified copy of the order of dissolution of the district
80-24 in the deed records of the county or counties in which the district
80-25 is located. If the particular district was created by a special
80-26 Act of the legislature, the commission shall file a certified copy
80-27 of the order of dissolution with the secretary of state.
81-1 Sec. 49.326. APPEALS. (a) Appeals from a commission order
81-2 dissolving a district shall be filed and heard in the district
81-3 court of any of the counties in which the land is located.
81-4 (b) The trial on appeal shall be de novo and the substantial
81-5 evidence rule shall not apply.
81-6 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
81-7 of a district by the commission, all assets of the district shall
81-8 escheat to the State of Texas. The assets shall be administered by
81-9 the state treasurer and shall be disposed of in the manner provided
81-10 by Chapter 72, Property Code.
81-11 (Sections 49.328-49.350 reserved for expansion
81-12 SUBCHAPTER L. FIRE DEPARTMENTS
81-13 Sec. 49.351. FIRE DEPARTMENTS. (a) A district providing
81-14 potable water or sewer service to household users may establish,
81-15 operate, and maintain a fire department to perform all
81-16 fire-fighting activities within the district as provided in this
81-17 subchapter and may issue, with voter approval, bonds for financing
81-18 the establishment of the fire department including the construction
81-19 and purchase of necessary buildings, facilities, and equipment and
81-20 the provision of an adequate water supply.
81-21 (b) After approval of the district electors of a plan to
81-22 operate or jointly operate a fire department, the district or
81-23 districts shall provide an adequate system and water supply for
81-24 fire-fighting purposes, may construct and purchase necessary
81-25 buildings, facilities, and equipment, and may employ all necessary
81-26 personnel including supervisory personnel to operate the fire
81-27 department.
82-1 (c) Bonds issued for establishment of the fire department
82-2 shall be authorized and issued, and a district shall be authorized
82-3 to levy a tax to pay the principal of and interest on such bonds,
82-4 as provided by law for authorization and issuance of other bonds of
82-5 the district.
82-6 (d) Two or more districts may contract to operate a joint
82-7 fire department for their districts and shall include in the
82-8 contract a system for joint administration and operation of the
82-9 fire department, the extent of services to be provided, a method
82-10 for funding the department from funds of each district, and any
82-11 other terms and conditions the parties consider necessary.
82-12 (e) A district may contract with any other person to perform
82-13 fire-fighting services within the district.
82-14 (f) Before a district establishes a fire department,
82-15 contracts to operate a joint fire department, or contracts with
82-16 another person to perform fire-fighting services within the
82-17 district, the district must comply with the provisions of
82-18 Subsections (g), (h), and (i).
82-19 (g) A district or districts proposing to act jointly shall
82-20 develop a detailed plan for the establishment, operation, and
82-21 maintenance of the proposed department, including a detailed
82-22 presentation of all financial requirements. If a district is
82-23 entering into a contract under Subsection (e), the district shall
82-24 develop a plan that describes in detail the facilities and
82-25 equipment to be devoted to service to the district and all
82-26 proposals for providing the service and that includes a
82-27 presentation of the financial requirements under the contract.
83-1 Before adoption of a plan and any contract by the district, the
83-2 board shall hold a hearing at which any person residing in the
83-3 district may present testimony for and against the proposed plan
83-4 and any proposed contract. Notice of the hearing and the place at
83-5 which the plan and any contract may be examined shall be posted in
83-6 two public places within the district at least 10 days before the
83-7 date of the hearing.
83-8 (h) After adoption of the plan and any contract by the
83-9 board, the plan and financial presentation, together with any
83-10 contract and a written report in a form prescribed by the executive
83-11 director describing existing fire departments and fire-fighting
83-12 services available within 25 miles of the boundaries of the
83-13 district, shall be submitted to the executive director for
83-14 consideration by the commission under rules adopted by the
83-15 commission. Before approval or disapproval, the commission shall
83-16 hold a hearing. Notice of the hearing before the commission shall
83-17 be posted by the board in at least two public places in the
83-18 district at least five days before the hearing. Before the
83-19 commission approves the application, it must find that it is
83-20 economically feasible for the district to implement the plan and
83-21 meet the provisions of any contract and shall take into
83-22 consideration in giving its approval the general financial
83-23 condition of the district and the economic feasibility of the
83-24 district carrying out the plan or meeting the obligations of the
83-25 contract.
83-26 (i) After approval by the commission, the district shall
83-27 submit to the electors of the district at the election to approve
84-1 bonds for financing the plan, or if no bonds are to be approved, at
84-2 an election called for approval of the plan, the proposition of
84-3 whether or not the plan should be implemented or entered into by
84-4 the district. The ballots at the election shall be printed, as
84-5 applicable, to provide for voting for or against the proposition:
84-6 "The implementation of the plan for (operation/joint operation) of
84-7 a fire department"; or "The plan and contract to provide
84-8 fire-fighting services for the district."
84-9 (j) No funds of the district may be used to establish a fire
84-10 department, to enter into joint operation of a fire department, or
84-11 to contract for fire-fighting services without the approval of a
84-12 plan by the electors as provided in this section. However, the
84-13 district may use available funds for preparation of a plan and any
84-14 contract. The operation of a fire department or provision of
84-15 fire-fighting services is an essential public necessity, and a
84-16 district may discontinue any and all services, including water and
84-17 sewer service, to any person who fails to timely pay fire
84-18 department service fees or any other assessment adopted by the
84-19 district to support the fire department or the provision of
84-20 fire-fighting services.
84-21 (Sections 49.352-49.450 reserved for expansion
84-22 SUBCHAPTER M. NOTICES, REPORTS, AND BANKRUPTCY
84-23 Sec. 49.451. POSTING SIGNS IN THE DISTRICT. (a) A district
84-24 subject to the notice requirements of Section 49.452 shall, within
84-25 30 days after the effective date of this section or the creation of
84-26 the district, post signs indicating the existence of the district
84-27 at two principal entrances to the district.
85-1 (b) The size and exact location of the information contained
85-2 on the signs shall be determined by the executive director.
85-3 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
85-4 proposes to sell or convey real property located in a district
85-5 created under this title or by a special Act of the legislature
85-6 that is providing or proposing to provide, as the district's
85-7 principal function, water, sanitary sewer, drainage, and flood
85-8 control or protection facilities or services, or any of these
85-9 facilities or services that have been financed or are proposed to
85-10 be financed with bonds of the district payable in whole or part
85-11 from taxes of the district, or by imposition of a standby fee, if
85-12 any, to household or commercial users, other than agricultural,
85-13 irrigation, or industrial users, and which district includes less
85-14 than all the territory in at least one county and which, if located
85-15 within the corporate area of a city, includes less than 75 percent
85-16 of the incorporated area of the city or which is located outside
85-17 the corporate area of a city in whole or in substantial part, must
85-18 first give to the purchaser the written notice provided in this
85-19 section.
85-20 (2) The provisions of this section shall not be
85-21 applicable to:
85-22 (A) transfers of title under any type of lien
85-23 foreclosure;
85-24 (B) transfers of title by deed in cancellation
85-25 of indebtedness secured by a lien upon the property conveyed; or
85-26 (C) transfers of title by reason of a will or
85-27 probate proceedings.
86-1 (b) The prescribed notice for all districts shall be
86-2 executed by the seller and shall read as follows:
86-3 "The real property, described below, that you are about to
86-4 purchase is located in the ___________________ District. The
86-5 district has taxing authority separate from any other taxing
86-6 authority and may, subject to voter approval, issue an unlimited
86-7 amount of bonds and levy an unlimited rate of tax in payment of
86-8 such bonds. As of this date, the rate of taxes levied by the
86-9 district on real property located in the district is $__________ on
86-10 each $100 of assessed valuation. If the district has not yet
86-11 levied taxes, the most recent projected rate of debt service tax,
86-12 as of this date, is $__________ on each $100 of assessed valuation.
86-13 The total amount of bonds approved by the voters and which have
86-14 been or may, at this date, be issued is $__________, and the
86-15 aggregate initial principal amounts of all bonds issued for one or
86-16 more of the specified facilities of the district and payable in
86-17 whole or in part from property taxes is $__________.
86-18 "The district has the authority to adopt and impose a standby
86-19 fee on property in the district that has water, sanitary sewer, or
86-20 drainage facilities and services available but not connected and
86-21 which does not have a house, building, or other improvement located
86-22 thereon and does not substantially utilize the utility capacity
86-23 available to the property. The district may exercise the authority
86-24 without holding an election on the matter. As of this date, the
86-25 most recent amount of the standby fee is $__________. An unpaid
86-26 standby fee is a personal obligation of the person that owned the
86-27 property at the time of imposition and is secured by a lien on the
87-1 property. Any person may request a certificate from the district
87-2 stating the amount, if any, of unpaid standby fees on a tract of
87-3 property in the district.
87-4 "The purpose of this district is to provide water, sewer,
87-5 drainage, or flood control facilities and services within the
87-6 district through the issuance of bonds payable in whole or in part
87-7 from property taxes. The cost of these utility facilities is not
87-8 included in the purchase price of your property, and these utility
87-9 facilities are owned or to be owned by the district. The legal
87-10 description of the property you are acquiring is as follows:
87-11 ___________________________________________________________________
87-12 ______________________ (Date)
87-13 _____________________________
87-14 Signature of Seller
87-15 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
87-16 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
87-17 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
87-18 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
87-19 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
87-20 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
87-21 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
87-22 "The undersigned purchaser hereby acknowledges receipt of the
87-23 foregoing notice at or prior to execution of a binding contract for
87-24 the purchase of the real property described in such notice or at
87-25 closing of purchase of the real property.
87-26 ______________________ (Date)
87-27 _____________________________
88-1 Signature of Purchaser
88-2 "(Note: Correct district name, tax rate, bond amounts, and
88-3 legal description are to be placed in the appropriate space.)
88-4 Except for notices included as an addendum or paragraph of a
88-5 purchase contract, the notice shall be executed by the seller and
88-6 purchaser, as indicated. If the district does not propose to
88-7 provide one or more of the specified facilities and services, the
88-8 appropriate purpose may be eliminated. If the district has not yet
88-9 levied taxes, a statement of the district's most recent projected
88-10 rate of debt service tax is to be placed in the appropriate space.
88-11 If the district does not have approval from the commission to adopt
88-12 and impose a standby fee, the second paragraph of the notice may be
88-13 deleted. For the purposes of the notice form required to be given
88-14 to the prospective purchaser prior to execution of a binding
88-15 contract of sale and purchase, a seller and any agent,
88-16 representative, or person acting on the seller's behalf may modify
88-17 the notice by substitution of the words 'January 1, ______' for the
88-18 words 'this date' and place the correct calendar year in the
88-19 appropriate space."
88-20 (c) The notice required by this section shall be given to
88-21 the prospective purchaser prior to execution of a binding contract
88-22 of sale and purchase either separately or as an addendum or
88-23 paragraph of a purchase contract. In the event a contract of
88-24 purchase and sale is entered into without the seller providing the
88-25 notice required by this subsection, the purchaser shall be entitled
88-26 to terminate the contract. If, however, the seller furnishes the
88-27 required notice at or prior to closing the purchase and sale
89-1 contract and the purchaser elects to close even though such notice
89-2 was not timely furnished prior to execution of the contract, it
89-3 shall be conclusively presumed that the purchaser has waived all
89-4 rights to terminate the contract and recover damages or other
89-5 remedies or rights under the provisions of this section.
89-6 Notwithstanding any provision of this subchapter to the contrary,
89-7 all sellers, title companies, and examining attorneys, and any
89-8 agent, representative, or person acting on their behalf, shall not
89-9 be liable for damages under the provisions of either Subsection (l)
89-10 or (m) or liable for any other damages to any person for failure to
89-11 provide the notice required by this section to a purchaser prior to
89-12 execution of a binding contract of a purchase and sale when the
89-13 district has not filed the information form and map or plat as
89-14 required under Section 49.455.
89-15 (d) The purchaser shall sign the notice or purchase contract
89-16 including such notice to evidence the receipt of notice.
89-17 (e) At the closing of purchase and sale, a separate copy of
89-18 such notice with current information shall be executed by the
89-19 seller and purchaser, acknowledged, and thereafter recorded in the
89-20 deed records of the county in which the property is located. For
89-21 the purposes of this section, all sellers, title companies, and
89-22 examining attorneys, and any agent, representative, or person
89-23 acting on their behalf, shall be entitled to rely on the accuracy
89-24 of the information form and map or plat as last filed by each
89-25 district under Section 49.455 or the information contained in or
89-26 shown on the notice form issued by the district under Section
89-27 49.453 in completing the notice form to be executed by the seller
90-1 and purchaser at the closing of purchase and sale. Any information
90-2 taken from the information form or map or plat as last filed by
90-3 each district and the information contained in or shown on the
90-4 notice form issued by the district under Section 49.453 shall be,
90-5 for purposes of this section, conclusively presumed as a matter of
90-6 law to be correct. All subsequent sellers, purchasers, title
90-7 insurance companies, examining attorneys, and lienholders shall be
90-8 entitled to rely upon the information form and map or plat filed by
90-9 the district or the notice form issued by the district under
90-10 Section 49.453.
90-11 (f) For the purposes of this section, an executory contract
90-12 of purchase and sale having a performance period of more than six
90-13 months shall be considered a sale under Subsection (a).
90-14 (g) For the purposes of the notice form to be given to the
90-15 prospective purchaser prior to execution of a binding contract of
90-16 sale and purchase, a seller and any agent, representative, or
90-17 person acting in the seller's behalf may modify the notice by
90-18 substitution of the words "January 1, ____" for the words "this
90-19 date" and place the correct calendar year in the appropriate space.
90-20 All sellers, and all persons completing the prescribed notice in
90-21 the sellers' behalf, shall be entitled to rely on the information
90-22 contained in or shown on the information form and map or plat filed
90-23 of record by the district under Section 49.455 in completing the
90-24 prescribed form to be given to the prospective purchaser prior to
90-25 execution of a binding contract of sale and purchase. Except as
90-26 otherwise provided in Subsection (e), any information taken from
90-27 the information form or map or plat filed of record by the district
91-1 in effect as of January 1 of each year shall be, for purposes of
91-2 the notice to be given to the prospective purchaser prior to
91-3 execution of a binding contract of sale and purchase, conclusively
91-4 presumed as a matter of law to be correct for the period January 1
91-5 through December 31 of such calendar year. A seller and any
91-6 persons completing the prescribed notice in the seller's behalf may
91-7 provide more recent information, if available, than the information
91-8 contained in or shown on the information form and map or plat filed
91-9 of record by the district under Section 49.455 in effect as of
91-10 January 1 of each year in completing the prescribed form to be
91-11 given to the purchaser prior to execution of a binding contract of
91-12 sale and purchase. Nothing contained in the preceding sentence
91-13 shall be construed to create an affirmative duty on the part of a
91-14 seller or any persons completing the prescribed notice in the
91-15 seller's behalf to provide more recent information than the
91-16 information taken from the information form and map or plat filed
91-17 of record by the district as of January 1 of each year in
91-18 completing the prescribed notice to be given to the purchaser prior
91-19 to execution of a binding contract of sale and purchase. All
91-20 subsequent sellers, purchasers, title insurance companies,
91-21 examining attorneys, and lienholders shall be entitled to rely upon
91-22 the information form and map or plat filed by the district.
91-23 (h) If such notice is given at closing as provided in
91-24 Subsection (e), a purchaser, or the purchaser's heirs, successors,
91-25 or assigns, shall not be entitled to maintain any action for
91-26 damages or maintain any action against a seller, title insurance
91-27 company, or lienholder, or any agent, representative, or person
92-1 acting in their behalf, by reason of use by the seller of the
92-2 information filed for record by the district or reliance by the
92-3 seller on the filed plat and filed legal description of the
92-4 district in determining whether the property to be sold and
92-5 purchased is within the district. No action may be maintained
92-6 against any title company for failure to disclose the inclusion of
92-7 the described real property within a district when the district has
92-8 not filed for record the information form, map, or plat with the
92-9 clerk of the county or counties in which the district is located.
92-10 (i) Any purchaser who purchases any real property in a
92-11 district and who thereafter sells or conveys the same shall on
92-12 closing of such subsequent sale be conclusively considered as
92-13 having waived any prior right to damages under this section.
92-14 (j) It is the express intent of this section that all
92-15 sellers, title insurance companies, examining attorneys, vendors of
92-16 property and tax information, real estate brokers, and lienholders,
92-17 and any agent, representative, or person acting on their behalf,
92-18 shall be entitled to rely on the accuracy of the information form
92-19 and map or plat as last filed by each district or the information
92-20 contained in or shown on the notice form issued by the district
92-21 under Section 49.453, or for the purposes of the notice to be given
92-22 the purchaser prior to execution of a binding contract of sale and
92-23 purchase the information contained in or shown on the information
92-24 form and map or plat filed of record by the district in effect as
92-25 of January 1 of each year for the period January 1 through December
92-26 31 of such calendar year.
92-27 (k) Except as otherwise provided in Subsection (c), if any
93-1 sale or conveyance of real property within a district is not made
93-2 in compliance with the provisions of this section, the purchaser
93-3 may institute a suit for damages under the provisions of either
93-4 Subsection (l) or (m).
93-5 (l) A purchaser of real property covered by the provisions
93-6 of this section, if the sale or conveyance of the property is not
93-7 made in compliance with this section, may institute a suit for
93-8 damages in the amount of all costs relative to the purchase of the
93-9 property plus interest and reasonable attorney's fees. The suit
93-10 for damages may be instituted jointly or severally against the
93-11 person, firm, corporation, partnership, organization, business
93-12 trust, estate, trust, association, or other legal entity that sold
93-13 or conveyed the property to the purchaser. Following the recovery
93-14 of damages under this subsection, the amount of the damages shall
93-15 first be paid to satisfy all unpaid obligations on each outstanding
93-16 lien or liens on the property and the remainder of the damage
93-17 amount shall be paid to the purchaser. On payment of all damages
93-18 respectively to the lienholders and purchaser, the purchaser shall
93-19 reconvey the property to the seller.
93-20 (m) A purchaser of real property covered by the provisions
93-21 of this section, if the sale or conveyance of the property is not
93-22 made in compliance with this section, may institute a suit for
93-23 damages in an amount not to exceed $5,000, plus reasonable
93-24 attorney's fees.
93-25 (n) A purchaser is not entitled to recover damages under
93-26 both Subsections (l) and (m), and entry of a final decision
93-27 awarding damages to the purchaser under either Subsection (l) or
94-1 (m) shall preclude the purchaser from recovering damages under the
94-2 other subsection. Notwithstanding any part or provision of the
94-3 general or special laws or the common law of the state to the
94-4 contrary, the relief provided under Subsections (l) and (m) shall
94-5 be the exclusive remedies for a purchaser aggrieved by the seller's
94-6 failure to comply with the provisions of this section. Any action
94-7 for damages shall not, however, apply to, affect, alter, or impair
94-8 the validity of any existing vendor's lien, mechanic's lien, or
94-9 deed of trust lien on the property.
94-10 (o) A suit for damages under the provisions of this section
94-11 must be brought within 90 days after the purchaser receives the
94-12 first district tax notice or within four years after the property
94-13 is sold or conveyed to the purchaser, whichever time occurs first,
94-14 or the purchaser loses the right to seek damages under this
94-15 section.
94-16 (p) Notwithstanding any provisions of this subchapter to the
94-17 contrary, a purchaser may not recover damages of any kind under
94-18 this section if that person:
94-19 (1) purchases an equity in real property and in
94-20 conjunction with the purchase assumes any liens, whether purchase
94-21 money or otherwise; and
94-22 (2) does not require proof of title by abstract, title
94-23 policy, or any other proof of title.
94-24 Sec. 49.453. NOTICE FORM FROM DISTRICT. (a) A district
94-25 covered by Section 49.452 shall also maintain in the district
94-26 office the particular form of Notice to Purchasers required by
94-27 Section 49.452 to be furnished by a seller to a purchaser of real
95-1 property in that district and shall, upon written request of any
95-2 person, issue the notice form completed by a district with all
95-3 information required to be furnished by the district. A notice
95-4 form issued by a district under the provisions of this section
95-5 shall include a written statement that the notice form is being
95-6 issued by the district, the date of its issuance, and the
95-7 district's telephone number. A district shall not be required to
95-8 orally provide the information.
95-9 (b) A district may charge a reasonable fee as determined by
95-10 the district not to exceed $10 for the issuance of a notice form
95-11 pursuant to Subsection (a). The notice form shall be delivered by
95-12 regular mail or made available at the district's office. If a
95-13 district is requested to deliver the notice form to a person by an
95-14 alternative method, the district may impose a charge not to exceed
95-15 the actual cost of such delivery.
95-16 (c) A district may delegate the responsibility for issuance
95-17 of the particular form of Notice to Purchasers to an employee or
95-18 agent of the district. A district shall file with the commission
95-19 the name, address, and telephone number of the employee or agent of
95-20 the district responsible for issuance of the notice forms and shall
95-21 notify the commission in writing within seven days after there is a
95-22 change to the information required to be filed with the commission
95-23 under the provisions of this subsection.
95-24 (d) Any notice issued by the district shall contain the
95-25 information effective as of the date of its issuance.
95-26 Sec. 49.454. NOTICE OF UNPAID STANDBY FEES. (a) A district
95-27 covered by Section 49.452 shall, on the written request of any
96-1 person, issue a certificate stating the amount of any unpaid
96-2 standby fees, including interest on the fees, that have been
96-3 assessed against a tract of property in the district. The district
96-4 may charge a fee not to exceed $10 for each certificate. A
96-5 certificate issued through fraud or collusion is void.
96-6 (b) If the district issues a certificate containing an
96-7 erroneous statement under Subsection (a) and the owner of the
96-8 property transfers the property to a good faith purchaser for
96-9 value, the lien on the property provided by Section 49.231(k) is
96-10 extinguished to the extent of the error.
96-11 (c) This section does not affect the liability for any
96-12 unpaid standby fees of the former owner of the undeveloped property
96-13 under Section 49.231(k).
96-14 Sec. 49.455. FILING INFORMATION. (a) The board covered by
96-15 the provisions of Section 49.452 of this subchapter shall file with
96-16 the county clerk in each of the counties in which all or part of
96-17 the district is located a duly affirmed and acknowledged
96-18 information form that includes the information required in
96-19 Subsection (b), and a complete and accurate map or plat showing the
96-20 boundaries of the district.
96-21 (b) The information form filed by a district under this
96-22 section shall include:
96-23 (1) the name of the district;
96-24 (2) the complete and accurate legal description of the
96-25 boundaries of the district;
96-26 (3) the most recent rate of district taxes on property
96-27 located in the district;
97-1 (4) the total amount of bonds that have been approved
97-2 by the voters and which may be issued by the district (excluding
97-3 refunding bonds and any bonds or portion of bonds payable solely
97-4 from revenues received or expected to be received pursuant to a
97-5 contract with a governmental entity);
97-6 (5) the aggregate initial principal amount of all
97-7 bonds of the district payable in whole or part from taxes
97-8 (excluding refunding bonds and any bonds or portion of bonds
97-9 payable solely from revenues received or expected to be received
97-10 pursuant to a contract with a governmental entity) that have been
97-11 previously issued and remain outstanding;
97-12 (6) whether a standby fee is imposed by the district
97-13 and, if so, the amount of the standby fee;
97-14 (7) the date on which the election to confirm the
97-15 creation of the district was held if such was required;
97-16 (8) a statement of the functions performed or to be
97-17 performed by the district; and
97-18 (9) the particular form of Notice to Purchasers
97-19 required by Section 49.452 of this subchapter to be furnished by a
97-20 seller to a purchaser of real property in that district completed
97-21 by the district with all information required to be furnished by
97-22 the district.
97-23 If a district has not yet levied taxes, a statement to such
97-24 effect together with the district's most recent projected rate of
97-25 debt service tax shall be substituted for Subdivisions (3) and (4).
97-26 (c) The information form and map or plat required by this
97-27 section shall be signed by a majority of the members of the board
98-1 and by each such officer affirmed and acknowledged before it is
98-2 filed with the county clerk, and each amendment made to an
98-3 information form or map shall also be signed by the members of the
98-4 board and by each such officer affirmed and acknowledged before it
98-5 is filed with the county clerk.
98-6 (d) The information form required by this section shall be
98-7 filed with the county clerk within 48 hours after the effective
98-8 date of this section or within 48 hours after the district is
98-9 officially created, whichever time comes first. For purposes of
98-10 this section, the words "officially created" mean the date and hour
98-11 in which the results of the election to confirm the creation of the
98-12 district are declared.
98-13 (e) Within seven days after there is a change in any of the
98-14 information contained in the district information form, map, or
98-15 plat, the district shall file an amendment to the information form,
98-16 map, or plat setting forth the changes made.
98-17 (f) Any person who affirms the corrections and accuracy of
98-18 and acknowledges an information form, map, or plat, or any
98-19 amendment to an information form, map, or plat that includes
98-20 information that is inaccurate or incorrect shall be guilty of a
98-21 misdemeanor and shall be fined not less than $100 nor more than
98-22 $1,000 for each violation.
98-23 (g) If a district fails to file the information required by
98-24 this section in the time required, the executive director may
98-25 request the state attorney general or the district or county
98-26 attorney of the county in which the district is located to seek a
98-27 writ of mandamus to force the board to prepare and file the
99-1 necessary information.
99-2 (h) Any member of a governing board who wilfully fails or
99-3 refuses to join in filing an information form, map, or plat or an
99-4 amendment to an information form, map, or plat under this section
99-5 shall be guilty of a misdemeanor and shall be fined not less than
99-6 $100 nor more than $1,000 for each violation. A member of a
99-7 governing board is presumed to have wilfully failed or refused to
99-8 join in the filing of an information form, map, or plat or an
99-9 amendment to an information form, map, or plat if that member was
99-10 present at the meeting at which the information included in the
99-11 information form, map, or plat or amendment to the information
99-12 form, map, or plat was adopted.
99-13 (i) If a district covered by this section is dissolved,
99-14 annexed to another local government, or consolidated with another
99-15 district, the members of the board shall file a statement of this
99-16 fact together with the effective date of the dissolution,
99-17 annexation, or consolidation with the information form. After a
99-18 district is dissolved and the statement is filed under this
99-19 subsection, a person who sells or conveys property within the
99-20 dissolved district is no longer required to give notice under
99-21 Section 49.452 of this subchapter.
99-22 (j) A copy of all information forms, maps, or plats and
99-23 amendments to these filed under this section shall also be filed
99-24 with the executive director.
99-25 Sec. 49.456. BANKRUPTCY OF DISTRICTS; AUTHORITY OF
99-26 COMMISSION. (a) Notwithstanding Section 140.001, Local Government
99-27 Code, or any other law of this state, a district created under
100-1 Sections 52(b)(1) and (2), Article III, or Section 59, Article XVI,
100-2 Texas Constitution, that is subject to the continuing supervision
100-3 of the commission may not proceed under Chapter 9 of the Federal
100-4 Bankruptcy Code (11 U.S.C. Sections 901-946) or any other law
100-5 enacted by the Congress of the United States under federal
100-6 bankruptcy authority until the commission authorizes the district
100-7 to proceed under those laws by written order.
100-8 (b) A district requesting the commission's authorization to
100-9 proceed under Chapter 9 of the Federal Bankruptcy Code (11 U.S.C.
100-10 Sections 901-946) or any other federal bankruptcy law shall file an
100-11 application with the commission requesting authorization.
100-12 (c) The commission shall investigate the financial condition
100-13 of a district submitting an application under Subsection (b),
100-14 including its assets, liabilities, and sources of revenues and may
100-15 require a district to submit any information that the commission
100-16 considers material to a determination of whether authorization to
100-17 proceed in bankruptcy should be granted.
100-18 (d) The commission may not authorize a district to proceed
100-19 in bankruptcy unless the commission determines that the district
100-20 cannot, through the full exercise of its rights and powers under
100-21 the laws of this state, reasonably expect to meet its debts and
100-22 other obligations as they mature.
100-23 (e) The commission shall adopt and assess reasonable and
100-24 necessary fees adequate to recover the costs of the commission in
100-25 administering this section.
100-26 SECTION 3. Title 4, Water Code, is amended by adding Chapter
100-27 59 to read as follows:
101-1 CHAPTER 59. REGIONAL DISTRICTS
101-2 SUBCHAPTER A. DISTRICT CREATION
101-3 Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of
101-4 this chapter is to authorize creation and operation of regional
101-5 districts for water, sanitary sewer, drainage, and municipal solid
101-6 waste disposal under Section 59, Article XVI, Texas Constitution.
101-7 (b) This chapter applies only in counties with a population
101-8 of at least 2.2 million, according to the most recent federal
101-9 census, or bordering a county with a population of at least 2.2
101-10 million, according to the most recent federal census.
101-11 Sec. 59.002. DEFINITIONS. (a) In this chapter:
101-12 (1) "District" means a district created or operating
101-13 under this chapter.
101-14 (2) "Municipal district" means a district created
101-15 under general law or a special Act operating under Chapter 51, 53,
101-16 or 54.
101-17 (3) "Bond" means bonds, coupons, notes, or any other
101-18 evidence of indebtedness.
101-19 (b) Other terms not defined by this chapter have the same
101-20 meaning assigned to those terms by Section 49.001.
101-21 Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
101-22 created by:
101-23 (1) The boards of at least 20 percent of the total
101-24 number of municipal districts to be included in the proposed
101-25 district may jointly petition the commission for creation of a
101-26 district. The petition must describe the territory to be included
101-27 in the district and must include resolutions endorsing creation of
102-1 the district adopted by each municipal district to be included in
102-2 the district.
102-3 (2) The owner or owners of 2,000 or more contiguous
102-4 acres may petition the commission for creation of a district.
102-5 (3) The commissioners courts of one or more counties
102-6 may petition the commission for creation of a district in any
102-7 territory within the county.
102-8 (4) The governing body of any city may petition the
102-9 commission for creation of a district in any territory within the
102-10 city or its extraterritorial jurisdiction.
102-11 (b) Petitions for the creation of a district must:
102-12 (1) describe the boundaries of the proposed district
102-13 by metes and bounds that adequately and completely circumscribe the
102-14 property so that there is complete closure of the property or by
102-15 lot and block numbers if there is a recorded map or plat or
102-16 subdivision survey of the area;
102-17 (2) state the general nature of the work proposed to
102-18 be done, the necessity of the work, and the cost of any projects of
102-19 the district as estimated by those filing the petition;
102-20 (3) state the name of each petitioner; and
102-21 (4) include a name of the district generally
102-22 descriptive of the locale of the district followed by the words
102-23 "Regional District."
102-24 (c) A proposed district may not have the same name as any
102-25 other district in the state.
102-26 (d) Section 54.013 applies to the composition of districts
102-27 created under this chapter.
103-1 Sec. 59.004. PURPOSES OF DISTRICT. A district shall be
103-2 created:
103-3 (1) to purchase, own, hold, lease, and otherwise
103-4 acquire sources of water supply;
103-5 (2) to build, operate, and maintain facilities for the
103-6 transportation of water;
103-7 (3) to sell water to cities, to political subdivisions
103-8 of this state, to water supply corporations, to private business
103-9 entities, and to individuals;
103-10 (4) to purchase, own, hold, lease, and otherwise
103-11 acquire equipment and mechanisms necessary for sanitary sewer and
103-12 wastewater treatment;
103-13 (5) to build, operate, and maintain facilities for
103-14 sanitary sewer and wastewater treatment;
103-15 (6) to transport and treat sanitary sewer and
103-16 wastewater effluent of cities and political subdivisions of this
103-17 state and for private business entities or individuals;
103-18 (7) to purchase, own, hold, lease, and otherwise
103-19 acquire equipment and mechanisms for the drainage of storm water
103-20 and floodwater; and
103-21 (8) for the purposes outlined in Section 54.012.
103-22 Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
103-23 Development Board requires that matching funds be provided as a
103-24 condition for receiving a loan or grant from the Texas Water
103-25 Development Board from research and planning funds, the matching
103-26 funds may not be provided through a guarantee of matching funds by
103-27 any individual who has a financial interest in the regional
104-1 district or who will receive any direct financial benefit from a
104-2 regional district project.
104-3 Sec. 59.006. CONSENT OF CITY. (a) Land in the corporate
104-4 limits of a city or in the extraterritorial jurisdiction of a city
104-5 may not be included in a district unless the city grants its
104-6 written consent by resolution or ordinance to the inclusion of the
104-7 land in the district.
104-8 (b) If the governing body of a city fails or refuses to
104-9 grant permission for the inclusion of land in its extraterritorial
104-10 jurisdiction in a district within 120 days after receipt of a
104-11 written request, the person or entity desiring to create the
104-12 district may petition the governing body of the city to make
104-13 available the water, sewer, or drainage service contemplated to be
104-14 provided by the district.
104-15 (c) Failure of the governing body of the city and the
104-16 requesting district to execute a mutually agreeable contract
104-17 providing for the service requested within six months after receipt
104-18 of a request for consent constitutes authorization for the
104-19 inclusion of land in the district under this section.
104-20 Authorization for the inclusion of the land in the district under
104-21 this section means only authorization to initiate proceedings to
104-22 include the land in the district as otherwise provided by this
104-23 chapter.
104-24 (d) Sections 54.016(e), (f), (g), and (h) apply under this
104-25 chapter.
104-26 Sec. 59.007. GRANTING OR REFUSING PETITION; EXCLUSION OF
104-27 TERRITORY. (a) If after the hearing of the petition the
105-1 commission finds that the petition conforms to the requirements of
105-2 this chapter and that the creation of the district would be of
105-3 benefit to the territory to be included in the district, the
105-4 commission shall issue an order granting the petition for creation.
105-5 If the commission finds that part of the territory included in the
105-6 proposed district will not benefit from the creation of the
105-7 district, the commission shall exclude that territory from the
105-8 proposed district and redefine the proposed district's boundaries
105-9 accordingly.
105-10 (b) If the commission finds that the petition does not
105-11 conform to the requirements of this chapter or that the proposed
105-12 projects are not of benefit to the territory in the proposed
105-13 district, the commission shall issue an order either denying the
105-14 petition or requiring petitioners to amend their petition.
105-15 (c) A copy of the order of the commission granting or
105-16 denying a petition shall be mailed to each city having
105-17 extraterritorial jurisdiction in the county or counties in which
105-18 the district is to be located that has requested notice of hearings
105-19 as provided by Section 54.019.
105-20 (Sections 59.008-59.020 reserved for expansion
105-21 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
105-22 Sec. 59.021. DIRECTORS. (a) The commission shall appoint
105-23 temporary directors who shall serve until permanent directors are
105-24 elected.
105-25 (b) A petition requesting creation filed in accordance with
105-26 Section 59.006 may provide that directors be elected by precinct as
105-27 provided by Subsection (h).
106-1 (c) The board of directors is composed of five members
106-2 unless the petition requesting creation of the district requests
106-3 and the commission approves a board that consists of seven members.
106-4 (d) Permanent directors shall be elected in accordance with
106-5 Chapter 49.
106-6 (e) If the petition for creation has requested the election
106-7 of seven directors as provided by Subsection (c), unless otherwise
106-8 agreed, the three directors elected who received the fewest number
106-9 of votes, whether their election is by precinct or at large, shall
106-10 serve until the next directors election following the confirmation
106-11 election and the four who received the highest number of votes
106-12 shall serve until the second directors election after the
106-13 confirmation election.
106-14 (f) After the creation of the district, the persons or
106-15 entities that petitioned for creation or 50 qualified voters of the
106-16 district may file a petition with the commission requesting to
106-17 expand the district's board to seven members. If the commission
106-18 grants the petition, the commission shall appoint two temporary
106-19 directors. One temporary director shall serve until the next
106-20 directors election and one shall serve until the next succeeding
106-21 directors election. At each election one director shall be elected
106-22 to serve for a four-year term.
106-23 (g) If the board of directors of the district is expanded to
106-24 seven members, four directors shall constitute a quorum and a
106-25 concurrence of four directors is necessary in all matters
106-26 pertaining to the business of the district.
106-27 (h) A petition for the creation of a district may request
107-1 that the board be elected to represent a geographic area. If the
107-2 petition requesting creation of the district is granted, the
107-3 commission shall establish precincts from which the directors are
107-4 to be elected. In establishing the precincts the commission shall
107-5 attempt to have directors represent geographic areas with equal
107-6 numbers of people and shall comply with the federal Voting Rights
107-7 Act of 1965 (42 U.S.C. Sections 1971, 1973 et seq.). Thereafter,
107-8 the board of directors of the district shall revise the precincts
107-9 from time to time to cause them to comply with the provisions of
107-10 this subsection.
107-11 Sec. 59.022. ABILITY TO SET RATES. The district may charge
107-12 rates to persons and entities located outside the district's
107-13 boundaries on terms, rates, and charges the board of directors may
107-14 determine to be advisable. In setting rates for out-of-district
107-15 customers, the board shall set rates sufficient to enable it to
107-16 meet operation and maintenance expenses and to pay the principal of
107-17 and interest on debt issued in connection with providing service
107-18 and to provide a reasonable reserve for replacements to the
107-19 district. In setting rates, the district may take into
107-20 consideration past operation and debt service expenses.
107-21 Sec. 59.023. ISSUANCE OF BONDS. The district may issue
107-22 bonds for the purpose of purchasing, constructing, acquiring,
107-23 owning, operating, repairing, improving, or extending any district
107-24 works, improvements, facilities, plants, equipment, and appliances
107-25 needed to accomplish the purposes of the district, including works,
107-26 improvements, facilities, plants, equipment, and appliances needed
107-27 to provide a waterworks system, sanitary sewer system, storm sewer
108-1 system, solid waste disposal system, and parks and recreational
108-2 facilities. Prior to issuing bonds or other obligations, a
108-3 confirmation election must be held in accordance with Chapter 49,
108-4 and a majority of voters must approve the establishment of the
108-5 district.
108-6 Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS. (a)
108-7 A municipal district may be excluded from the district as provided
108-8 by this section.
108-9 (b) To be excluded, the board of directors of the municipal
108-10 district may adopt a resolution requesting exclusion by a majority
108-11 vote of its board of directors and shall file the petition with the
108-12 directors of the proposed district before the first confirmation
108-13 election.
108-14 (c) At the time of the district's confirmation election, a
108-15 separate voting precinct shall be used for the qualified voters in
108-16 each municipal district that has filed a petition requesting
108-17 exclusion. The votes in each precinct shall be tallied separately
108-18 to determine whether that municipal district will be excluded from
108-19 the district boundaries.
108-20 (d) If a majority of the votes cast in a municipal district
108-21 requesting exclusion vote against confirmation of the district, the
108-22 votes cast in the confirmation election shall not be counted for
108-23 the confirmation election, bond election, or maintenance tax
108-24 election, and that municipal district must be excluded from the
108-25 boundaries of the district by the board of directors of the
108-26 district at the time the results of the election are canvassed.
108-27 (e) After a confirmation election at which the district is
109-1 authorized to be created, the board of directors of the district
109-2 shall adopt an order redefining the boundaries of the district to
109-3 exclude those municipal districts petitioning for exclusion that
109-4 have voted not to confirm creation of the district.
109-5 (f) Before the creation hearing, any municipal district
109-6 located within the proposed district may petition the commission
109-7 for a separate voting precinct to be used within the boundaries of
109-8 the petitioning district at the time of the district's confirmation
109-9 election. If the commission grants the petition requesting a
109-10 separate voting precinct, Subsections (c) through (e) apply.
109-11 Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district
109-12 may be created pursuant to a petition granted by the commission, a
109-13 confirmation election must be held within the boundaries of the
109-14 proposed district.
109-15 (b) The directors appointed by the commission shall call and
109-16 hold the confirmation election in the manner provided for
109-17 conducting elections under Chapter 49. The provisions of those
109-18 sections relating to a directors election do not apply to an
109-19 election held under this section.
109-20 (c) If the creation of the district is defeated, subsequent
109-21 confirmation elections may not be held to confirm the creation of
109-22 the district.
109-23 (d) A bond election, maintenance tax election, and any other
109-24 election may be held at the same time and in conjunction with a
109-25 confirmation election.
109-26 (Sections 59.026-59.050 reserved for expansion
109-27 SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
110-1 Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
110-2 LANDOWNERS. In addition to the method of adding land to a district
110-3 described in Section 59.052, defined areas of land, regardless of
110-4 whether they are contiguous to the district, may be annexed to the
110-5 district in the manner provided in Chapter 49.
110-6 Sec. 59.052. FILING OF PETITION. A petition requesting the
110-7 annexation of a defined area that is signed by a majority in value
110-8 of the owners of land in the defined area, as shown by the tax
110-9 rolls of the county or counties in which that area is located, that
110-10 is signed by 50 landowners if the number of landowners is more than
110-11 50, that is signed by the single landowner of 2,000 or more acres
110-12 of land in the area, or that is signed by a majority of the
110-13 governing body of a municipal district, a county, or a city
110-14 requesting annexation shall be filed with the secretary of the
110-15 board.
110-16 Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
110-17 BONDS. (a) If the board considers it advisable before the
110-18 issuance of any bonds, the board may dissolve the district and
110-19 liquidate the affairs of the district as provided by Sections
110-20 54.734 through 54.738.
110-21 (b) If a majority of the board finds at any time before the
110-22 authorization of bonds that the proposed district and its proposed
110-23 activities are for any reason impracticable or apparently cannot be
110-24 successfully and beneficially accomplished, the board may issue
110-25 notice of a hearing on a proposal to dissolve the district.
110-26 Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
110-27 order to dissolve the district may be judicially reviewed as
111-1 provided in Chapter 49.
111-2 (Sections 59.055-59.070 reserved for expansion
111-3 SUBCHAPTER D. MISCELLANEOUS
111-4 Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) If a
111-5 city annexes all or any part of the territory within a district, or
111-6 incorporates all or any part of any territory within a district,
111-7 the city shall succeed to the powers, duties, assets, and
111-8 obligations of the district as provided by this chapter.
111-9 (b) On annexation of any part of the territory of a district
111-10 by a city or incorporation by a city of any part of the territory
111-11 of a district, the city shall assume a pro rata share of all debt
111-12 of the district payable in whole or in part by ad valorem taxes
111-13 incurred for water, sewer, or drainage purposes or any combination
111-14 of the three purposes. The percentage of the assumption shall be
111-15 determined by multiplying the total debt of the district payable in
111-16 whole or in part from taxes incurred for the stated purposes by a
111-17 fraction, the numerator of which is the assessed value of the
111-18 property to be annexed or incorporated based on the most recent
111-19 certified county property tax rolls at the time of annexation or
111-20 incorporation and the denominator of which is the total assessed
111-21 value of the property of the district based on the most recent
111-22 certified county property tax rolls at the time of annexation or
111-23 incorporation.
111-24 (c) After annexation by a city of a portion of the territory
111-25 of a district or incorporation over any part of the territory of a
111-26 district, the district may not levy taxes on that territory, and
111-27 the territory is no longer considered a part of the district for
112-1 any purpose.
112-2 (d) If any district's debt payable in whole or in part from
112-3 ad valorem taxes is assumed by a city, the governing body of the
112-4 city shall levy and cause to be collected taxes on all taxable
112-5 property within the city or provide other funds sufficient to pay
112-6 the city's pro rata share of the principal of and interest on that
112-7 debt as it becomes due and payable.
112-8 (e) If a city annexes or incorporates the entire territory
112-9 of the district, the district shall be dissolved in accordance with
112-10 Sections 43.074, 43.075, and 43.081, Local Government Code, if the
112-11 district is located in one city or Sections 43.076-43.079, Local
112-12 Government Code, if the district is located in more than one city.
112-13 (f) Section 43.071, Local Government Code, does not apply to
112-14 the annexation of a district created pursuant to this chapter.
112-15 Sec. 59.072. OTHER LAWS. (a) This chapter prevails over
112-16 any other law in conflict with or inconsistent with this chapter.
112-17 (b) Except as specifically provided by this chapter, Chapter
112-18 49 and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,
112-19 54.021, 54.023, 54.024, 54.201, 54.205, 54.207-54.208,
112-20 54.502-54.505, 54.507(b) and (c), 54.510-54.512, 54.514, 54.515,
112-21 54.518, 54.520, 54.521, 54.601-54.604, and 54.735-54.737 apply
112-22 under this chapter.
112-23 (c) Section 54.019(e) does not apply to a district governed
112-24 by this chapter.
112-25 SECTION 4. Section 51.0711(a), Water Code, is amended to
112-26 read as follows:
112-27 (a) The governing body of a municipality that enters a
113-1 contract or agreement with a district located in more than one
113-2 county to jointly construct, acquire, operate, or maintain a
113-3 regional wastewater system is entitled to appoint a special
113-4 director to the board of the district. Section 51.072 <of this
113-5 code> does not apply to a special director.
113-6 SECTION 5. Section 51.072, Water Code, is amended to read as
113-7 follows:
113-8 Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified
113-9 for election as a director, a person must be a resident of the
113-10 state, own land subject to taxation in the district, and be at
113-11 least 18 <21> years of age. Section 49.052 does not apply to a
113-12 district governed by this chapter whose principal purpose is
113-13 providing water for irrigation.
113-14 SECTION 6. Section 51.076(a), Water Code, is amended to read
113-15 as follows:
113-16 (a) In a district created after June 18, 1967, with
113-17 boundaries coterminous with the boundaries of a county, the
113-18 commissioners court may provide in the order granting the petition
113-19 for creation that the directors are to be selected either as
113-20 provided in Section 49.102 <51.073 of this code> or by the
113-21 "commissioners precinct method," which provides for the election of
113-22 two directors from each commissioners precinct in the county and
113-23 the election of one director from the county at large.
113-24 SECTION 7. Section 51.750(d), Water Code, is amended to read
113-25 as follows:
113-26 (d) The temporary directors of each of the resulting
113-27 districts must qualify as directors of the district pursuant to
114-1 Section <Sections> 51.072 <and 51.073 of this code> within the
114-2 period of 90 days after the election approving the division of the
114-3 original district and shall assume their offices at the expiration
114-4 of the 90-day period.
114-5 SECTION 8. Section 52.005, Water Code, is amended by adding
114-6 Subsection (c) to read as follows:
114-7 (c) Sections 49.052, 49.216, and 49.301-49.308 do not apply
114-8 to districts governed by this chapter.
114-9 SECTION 9. Section 52.115, Water Code, is amended to read as
114-10 follows:
114-11 Sec. 52.115. MEETINGS. <(a)> The board shall hold regular
114-12 quarterly meetings. It may hold meetings at other times as
114-13 required for the business of the district.
114-14 <(b) Any person may attend a meeting of the board and may
114-15 present in an orderly manner matters for the board's consideration.>
114-16 <(c) Meetings shall be conducted and notice of meetings
114-17 shall be posted in accordance with the open meetings law, Chapter
114-18 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
114-19 6252-17, Vernon's Texas Civil Statutes).>
114-20 SECTION 10. Sections 52.294(c), (d), and (e), Water Code,
114-21 are amended to read as follows:
114-22 (c) <Notice of an election must be given as provided by
114-23 Section 52.059(c) of this code for creation elections.>
114-24 <(d)> At an election to authorize bonds or notes payable
114-25 wholly from ad valorem taxes, the ballots must be printed to
114-26 provide for voting for or against the proposition: "The issuance
114-27 of (bonds or notes) and the levy of taxes for payment of the (bonds
115-1 or notes)." At any election to authorize bonds or notes payable
115-2 from both ad valorem taxes and revenues, the ballots must be
115-3 printed to provide for voting for or against: "The issuance of
115-4 (bonds or notes) and the pledge of net revenues and the levy of ad
115-5 valorem taxes adequate to provide for the payment of the (bonds or
115-6 notes)."
115-7 (d) <(e)> The board shall canvass the returns and declare
115-8 the results of the election. If a majority of the votes cast at
115-9 the election favor the issuance of the bonds or notes, the bonds or
115-10 notes may be issued by the board, but if a majority of the votes
115-11 cast at the election do not favor issuance of the bonds or notes,
115-12 the bonds or notes may not be issued.
115-13 SECTION 11. Section 53.040, Water Code, is amended to read
115-14 as follows:
115-15 Sec. 53.040. Elected Supervisors Take Office. If the
115-16 election results in a division of the district, the five candidates
115-17 receiving the most votes in each new district shall be declared
115-18 elected. They shall immediately qualify in accordance with Section
115-19 49.055 <by taking the constitutional oath of office and shall file
115-20 the oath with the county clerk>.
115-21 SECTION 12. Section 53.042, Water Code, is amended to read
115-22 as follows:
115-23 Sec. 53.042. Newly Elected Supervisors--Term of Office. The
115-24 newly elected supervisors hold office until the new district's next
115-25 supervisors election <first general election and then until their
115-26 successors are elected and have qualified>.
115-27 SECTION 13. Section 53.062, Water Code, is amended to read
116-1 as follows:
116-2 Sec. 53.062. Board of Supervisors. A district created under
116-3 this chapter is governed by a board of five elected supervisors.
116-4 <Specific provisions for the election of supervisors are found in
116-5 Section 53.021, Section 53.086, and Section 53.0861 of this code.>
116-6 SECTION 14. Section 53.088, Water Code, is amended to read
116-7 as follows:
116-8 Sec. 53.088. Status of the District. <(a)> A district is:
116-9 (1) a governmental agency;
116-10 (2) a body politic and corporate; and
116-11 (3) a defined district within the meaning of Article
116-12 XVI, Section 59, of the Texas Constitution.
116-13 <(b) A district may, through its board, sue and be sued in
116-14 any court of this state in the name of the district. All courts of
116-15 this state shall take judicial notice of the creation of a
116-16 district. A district shall contract and be contracted with in the
116-17 name of the district.>
116-18 SECTION 15. Section 53.172, Water Code, is amended to read
116-19 as follows:
116-20 Sec. 53.172. Ordering Bond Election. After the creation of
116-21 a district and the qualification of the supervisors, the board may
116-22 order an election in the district to authorize a bond issue. <The
116-23 board shall set the day for the election, which must be held during
116-24 the period beginning on the 20th day and ending with the 30th day
116-25 after the day of the order.> At this election, the board shall
116-26 submit only a proposition authorizing the issuance of bonds and the
116-27 levy of a tax to pay the bonds. The ballots shall be printed to
117-1 allow for voting for or against the proposition: "The issuance of
117-2 bonds and the levy of taxes to pay the bonds."
117-3 SECTION 16. Section 54.025, Water Code, is amended to read
117-4 as follows:
117-5 Sec. 54.025. Qualification of Temporary Directors. After a
117-6 district has been organized, each temporary director shall execute
117-7 a <his> bond in accordance with the provisions of Section 49.055
117-8 <54.116 of this code> and shall take the <his> oath of office, and
117-9 the board shall meet and organize.
117-10 SECTION 17. Section 54.036, Water Code, is amended to read
117-11 as follows:
117-12 Sec. 54.036. Directors to Continue Serving. The existing
117-13 board of a district converted to a municipal utility district under
117-14 the provisions of this chapter shall continue to serve as the board
117-15 of the converted district <until the first Saturday in April
117-16 following conversion of the district, at which time five directors
117-17 shall be elected to serve for such period of time and in the same
117-18 manner as provided in Section 54.029 of this code for directors
117-19 first elected for a district>.
117-20 SECTION 18. Section 54.203, Water Code, is amended to read
117-21 as follows:
117-22 Sec. 54.203. MUNICIPAL Solid Waste. A district is
117-23 authorized to purchase, construct, acquire, own, operate, maintain,
117-24 repair, improve, extend, or establish a municipal solid waste
117-25 collection and disposal system, including recycling, inside and
117-26 outside the district and make proper charges for it. A district
117-27 may require use of such services as a condition for receiving other
118-1 district services. A district may enter into an exclusive contract
118-2 with a private entity to provide such services to all land and
118-3 persons within its boundaries.
118-4 SECTION 19. Section 54.729(a), Water Code, is amended to
118-5 read as follows:
118-6 (a) After the board of each district has agreed on the terms
118-7 and conditions of consolidation, which may include the assumption
118-8 by each district of the <other district's> bonds, notes, or other
118-9 obligations and voted but unissued bonds of the other consolidating
118-10 districts payable in whole or in part from taxation, the levy of
118-11 taxes to pay for the bonds, and adoption of a name for the
118-12 consolidated district, the board shall order an election in each
118-13 district to determine whether the districts should be consolidated.
118-14 SECTION 20. Section 54.730(a), Water Code, is amended to
118-15 read as follows:
118-16 (a) After two or more districts are consolidated, they
118-17 become one district and are governed as one district, except for
118-18 the payment of debts created before consolidation if the conditions
118-19 of consolidation do not provide for the assumption by each district
118-20 of the <other's> bonds, notes, or other obligations and voted but
118-21 unissued bonds of the other consolidating districts.
118-22 SECTION 21. Section 54.732, Water Code, is amended to read
118-23 as follows:
118-24 Sec. 54.732. ASSESSMENT AND COLLECTION OF TAXES. After
118-25 consolidation, the district shall assess and collect taxes on
118-26 property in the original districts to pay debts created by the
118-27 original districts unless each district has assumed the <other
119-1 district's> bonds, notes, or other indebtedness payable in whole or
119-2 in part from taxation of the other consolidating districts.
119-3 SECTION 22. Section 54.733, Water Code, is amended to read
119-4 as follows:
119-5 Sec. 54.733. VOTED BUT UNISSUED BONDS. In the event any
119-6 consolidating <either> district has voted but unissued bonds
119-7 payable in whole or in part from taxation and the consolidated
119-8 district assumed the voted but unissued bonds and the consolidated
119-9 district was authorized to levy taxes to pay for the bonds, then
119-10 the consolidated district shall be authorized to issue the voted
119-11 but unissued bonds in the name of the consolidated district and
119-12 levy a uniform tax on all taxable property in the consolidated
119-13 district to pay for the bonds.
119-14 SECTION 23. Chapter 54, Water Code, is amended by adding
119-15 Sections 54.739-54.747 to read as follows:
119-16 Sec. 54.739. Substituting Land of Equal Acreage and Value.
119-17 After the district is organized and acquires facilities with which
119-18 to function for the purposes for which it was organized, and votes,
119-19 issues and sells bonds for such purposes, land within the district
119-20 boundaries subject to taxation that does not need or utilize the
119-21 services of the district may be excluded and other land not within
119-22 the boundaries of the district may be included within the
119-23 boundaries of the district as provided by the provisions of this
119-24 section and Sections 54.741-54.748 subject to commission approval.
119-25 Sec. 54.740. Requisites for Application for Exclusion. An
119-26 owner of land in the district not receiving services from the
119-27 district may apply for its exclusion from the district boundaries
120-1 if all taxes levied and assessed by the district on the land to be
120-2 excluded have been fully paid. The application shall set forth
120-3 facts concerning the land proposed for exclusion, including
120-4 evidence of the reasonable market value of the land, and state that
120-5 the other requisites for the exclusion of the land and substitution
120-6 of other land have been fulfilled or will be fulfilled at the
120-7 hearing upon the application. The application shall be verified
120-8 and acknowledged in a recordable form as conveyances of real
120-9 property.
120-10 Sec. 54.741. Inclusion of Substitute Land Required. An
120-11 application for exclusion can only be considered by the board if an
120-12 application is filed by an owner of other land lying outside the
120-13 boundaries of the district seeking inclusion of land that can be
120-14 served in a practical manner by the district of at least equal
120-15 value to the land proposed for exclusion. Such land must be
120-16 included within the district boundaries and taxing jurisdiction of
120-17 the district simultaneously with the exclusion of the land proposed
120-18 for exclusion. Such included land must be of sufficient acreage to
120-19 avoid an impairment of the security for payment of voted and issued
120-20 bonds and any other contract obligations payable or secured, in
120-21 whole or in part, from ad valorem taxes or revenues of the
120-22 district.
120-23 Sec. 54.742. Application for Inclusion. The application
120-24 submitted by an owner of land proposed for inclusion shall set
120-25 forth that the owner of the new land assumes the payment of all
120-26 taxes, assessments and fees levied on the land and assessed by the
120-27 district after the date the land is included in the district. The
121-1 application shall also set forth an agreement by the owner of the
121-2 land proposed for inclusion that the land will be subject to future
121-3 taxes for bond tax and other assessments and fees levied and
121-4 assessed by the district and be subject to the same liens and
121-5 provisions and statutes governing all other lands in the district
121-6 as though the land had been incorporated originally in the
121-7 district. The application for inclusion shall be verified and
121-8 acknowledged in a recordable form as conveyances of real property.
121-9 Sec. 54.743. Notice of Hearing and Hearing Procedures. The
121-10 board shall give notice of the hearing on the applications for
121-11 exclusion and inclusion in conformity with the notice and hearing
121-12 requirements otherwise applicable to exclusions or additions of
121-13 land. The board at such hearing shall hear all interested parties
121-14 and all evidence in connection with the applications.
121-15 Sec. 54.744. Impairment of Security. For purposes of the
121-16 board's consideration of the applications, the lands proposed for
121-17 inclusion shall be deemed to be sufficient to avoid an impairment
121-18 of the security for payment of obligations of the district if:
121-19 (1) according to the county tax rolls, the taxable
121-20 value of such included lands equals or exceeds the taxable value of
121-21 the excluded lands;
121-22 (2) the estimated costs of providing district
121-23 facilities and services to such included lands is equal to or less
121-24 than the estimated costs of providing district facilities and
121-25 services to the excluded lands; and
121-26 (3) the district's outstanding bonds or contract
121-27 obligations are payable in whole or in part by a pledge of net
122-1 revenues from the ownership or operation of the district's
122-2 facilities, and the projected net revenues to be derived from the
122-3 lands to be included during the succeeding 12-month period, as
122-4 determined by the district's engineer, equals or exceeds the
122-5 projected net revenues that would otherwise have been derived from
122-6 the lands to be excluded during the same period.
122-7 Sec. 54.745. Board's Resolution to Substitute. If the board
122-8 finds that all the conditions provided for the exclusion of land
122-9 and inclusion of other land in the district exist and that it is in
122-10 the best interest of the district to grant such applications, it
122-11 may adopt and enter in its minutes a resolution and order excluding
122-12 all or part of the land proposed for exclusion and including all or
122-13 part of the land proposed for inclusion. Prior to the effective
122-14 date of the exclusion and inclusion of lands, the district shall
122-15 have received payment of all fees, charges, assessments, taxes,
122-16 together with any associated penalties and interest due or overdue
122-17 in respect to the lands excluded, and if no ad valorem taxes or
122-18 fees have yet been established by the district for the current
122-19 year, an amount determined by the district to equal the estimated
122-20 ad valorem taxes and standby fees to be established by the district
122-21 for the current year, prorated to the date of exclusion with
122-22 respect to such excluded lands, shall also be paid.
122-23 Sec. 54.746. Liability of Excluded and Included Land. The
122-24 land excluded from the district is free from any lien or liability
122-25 created on the excluded land by reason of its having been included
122-26 in the district. Land included in the district is subject to all
122-27 laws, liens, and provisions governing the district and the land in
123-1 the district.
123-2 Sec. 54.747. Service to Included Land. The district has the
123-3 same right and obligation to furnish services to the included land
123-4 that it previously had to furnish to the excluded land.
123-5 SECTION 24. Section 55.101, Water Code, is amended to read
123-6 as follows:
123-7 Sec. 55.101. Board of Directors. The governing body of a
123-8 district is a <the> board of five directors.
123-9 SECTION 25. Section 55.102, Water Code, is amended to read
123-10 as follows:
123-11 Sec. 55.102. Qualifications of Directors. To be qualified
123-12 for election as a director, a person must be a resident of the
123-13 state, own land subject to taxation in the district, and be at
123-14 least 18 <more than 21> years of age at the time of the election.
123-15 Section 49.052 does not apply to a district governed by this
123-16 chapter whose principal purpose is providing water for irrigation.
123-17 SECTION 26. Section 55.721, Water Code, is amended to read
123-18 as follows:
123-19 Sec. 55.721. Exclusion of Nonagricultural and Nonirrigable
123-20 Land From District. Land located in the district which is
123-21 classified as nonagricultural and nonirrigable may be excluded from
123-22 the district in the manner provided in Subchapter J, Chapter 49
123-23 <Sections 51.702-51.713 of this code>.
123-24 SECTION 27. Section 56.064, Water Code, is amended to read
123-25 as follows:
123-26 Sec. 56.064. Election of Directors. (a) On petition of a
123-27 majority of the real property taxpayers of a district requesting an
124-1 election of district directors, the commissioners court shall
124-2 immediately order an election to be held at the earliest legal
124-3 time. The election shall be held as other elections under Chapter
124-4 49 <this chapter>.
124-5 (b) <The commissioners court shall declare the three persons
124-6 receiving the highest number of votes elected, and if two or more
124-7 persons tie for the third highest vote, the commissioners court
124-8 shall elect the third director from those tying for the place.>
124-9 <(c) On qualifying for office, directors elected under this
124-10 section are the legal and rightful directors of the district within
124-11 the full meaning and purpose of this law.>
124-12 <(d) The first elected directors of the district hold office
124-13 until the next regular directors' election, and subsequent
124-14 directors of the district are elected every four years except as
124-15 provided by Subsection (e) of this section.>
124-16 <(e)> The first elected directors of the districts in
124-17 Calhoun, Matagorda, and Victoria Counties hold office until May 15
124-18 of the next succeeding odd-numbered year. Subsequent directors of
124-19 the district are elected every two years on the first Saturday in
124-20 May in each odd-numbered year, for a term of two years beginning on
124-21 May 15 following the election.
124-22 SECTION 28. Section 57.053, Water Code, is amended to read
124-23 as follows:
124-24 Sec. 57.053. Term of Office, Removal, and Succession. (a)
124-25 <Each director shall hold office for a period of two years and
124-26 until his successor is appointed and has qualified.>
124-27 <(b)> A vacancy on the board shall be filled by majority
125-1 vote of the commissioners court <of jurisdiction>, and the court
125-2 shall appoint directors so that the board will always have full
125-3 membership.
125-4 (b) <(c)> The commissioners court <of jurisdiction>, by
125-5 majority vote, may remove an appointed <a> member of the board.
125-6 SECTION 29. Section 57.060, Water Code, is amended to read
125-7 as follows:
125-8 Sec. 57.060. Petition. Before an election is held under
125-9 Section 57.057 <of this code>, a petition, signed by at least 100
125-10 <25> electors in the district <each county commissioners precinct>
125-11 who are qualified to vote <at an election for directors if a
125-12 countywide election, or by 50 electors if less than countywide>,
125-13 shall be presented to the district <county judge> requesting that
125-14 an election be held in the district to determine whether or not
125-15 directors for the district should be elected and, if so, to elect
125-16 directors to serve until the next regular director election <for
125-17 state and county officers>. The petition shall include the name of
125-18 one or more nominees for each director's position.
125-19 SECTION 30. Section 57.061, Water Code, is amended to read
125-20 as follows:
125-21 Sec. 57.061. Procedure for Election. <(a)> After the
125-22 petition is presented under Section 57.060 <of this code>, the
125-23 board <county judge> shall order an election <to determine the
125-24 propositions presented in the petition. The election shall be held
125-25 not less than 30 days from the date of the order calling the
125-26 election, or the propositions may be determined at a general
125-27 election>.
126-1 <(b) The election order shall designate the polling places
126-2 which shall be the same as the polling places used in the last
126-3 general election in the county, if a countywide election is held.>
126-4 <(c) The county clerk shall issue notice of the election and
126-5 shall have the notice published in a newspaper of general
126-6 circulation in the county once a week for two consecutive weeks.
126-7 The first publication must be not less than 14 days before the day
126-8 of the election.>
126-9 <(d) The sheriff shall post a copy of the notice at least 20
126-10 days before the day of the election at each polling place
126-11 designated in the election order.>
126-12 <(e) The district shall pay all expenses incident to calling
126-13 and holding the election.>
126-14 SECTION 31. Section 57.207, Water Code, is amended to read
126-15 as follows:
126-16 Sec. 57.207. Declaring Result of Election. <(a)
126-17 Immediately after an election under this chapter, the officials
126-18 holding the election shall return the result to the commissioners
126-19 court of jurisdiction.>
126-20 <(b) The election officials shall return the ballot boxes to
126-21 the clerk of the commissioners court of jurisdiction, who shall
126-22 safely keep the boxes and deliver them with the returns of the
126-23 election to the commissioners court of jurisdiction at its next
126-24 regular or special session.>
126-25 <(c) The commissioners court of jurisdiction at its first
126-26 session after the election shall canvass the vote and the returns.
126-27 If the proposition submitted has been approved by a majority of the
127-1 electors of the district voting at the election, the commissioners
127-2 court of jurisdiction shall declare the result in favor of the
127-3 proposition, but if the proposition is not approved by the electors
127-4 of the district, the commissioners court of jurisdiction shall
127-5 declare the result to be against the proposition.>
127-6 <(d)> The board <commissioners court of jurisdiction> shall
127-7 enter an order declaring the election result in its minutes.
127-8 SECTION 32. Section 58.072, Water Code, is amended to read
127-9 as follows:
127-10 Sec. 58.072. QUALIFICATIONS. To be qualified for election
127-11 as a director, a person must be a resident of the state, be the
127-12 owner of record of fee simple title to land in the district, <and>
127-13 be at least 18 years of age, and owe no delinquent taxes or
127-14 assessments to the district. Section 49.052 does not apply to a
127-15 district governed by this chapter.
127-16 SECTION 33. Subchapter A, Chapter 60, Water Code, is amended
127-17 by adding Section 60.002 to read as follows:
127-18 Sec. 60.002. AUDIT. Subchapter G, Chapter 49, related to
127-19 Audit of Districts, shall apply to districts governed by this
127-20 chapter.
127-21 SECTION 34. Subchapter M, Chapter 60, Water Code, is amended
127-22 by adding Section 60.350 to read as follows:
127-23 Sec. 60.350. BONDS. Section 49.181, related to the
127-24 Authority of Commission Over Issuance of District Bonds, and
127-25 Section 49.183, related to Bond Sales, shall apply to bonds
127-26 supported by taxes and issued by districts governed by this
127-27 chapter.
128-1 SECTION 35. Section 65.103, Water Code, is amended to read
128-2 as follows:
128-3 Sec. 65.103. Election of Directors; Terms of Office. (a)
128-4 The persons receiving the highest number of votes at each election
128-5 shall serve as directors of the district.
128-6 (b) The terms of the directors may run concurrently, or may
128-7 be staggered, but in any event, the term of office of a director
128-8 may not exceed three years.
128-9 (c) The method for determining the initial terms for each of
128-10 the directors constituting the initial board shall be determined by
128-11 the temporary directors, and the terms must be clearly stated on
128-12 the ballot for the confirmation and directors' election. At
128-13 subsequent elections in each following year in which there is an
128-14 election, the election must be held on the same uniform election
128-15 date as the confirmation and directors' election, and the terms of
128-16 the directors being elected must be stated on the ballot.
128-17 <(d) The election of directors must be held in a district on
128-18 one of the dates provided by Section 9b, Texas Election Code
128-19 (Article 2.01b, Vernon's Texas Election Code).>
128-20 <(e) The permanent directors may assign a position number to
128-21 each director's office, and each director subsequently shall be
128-22 elected by position and not at large.>
128-23 SECTION 36. Chapter 65, Water Code, is amended by adding
128-24 Section 65.235 to read as follows:
128-25 Sec. 65.235. Prohibition on Assessment or Collection of
128-26 Taxes. Section 49.107 does not apply to a district created under
128-27 this chapter.
129-1 SECTION 37. Section 66.101, Water Code, is amended to read
129-2 as follows:
129-3 Sec. 66.101. Board of Directors. A district shall be
129-4 governed by a board of directors composed of five members, who are
129-5 elected as provided in Chapter 49 <by this chapter>.
129-6 SECTION 38. Section 66.310(b), Water Code, is amended to
129-7 read as follows:
129-8 (b) Bonds issued by a district and projects and improvements
129-9 of the district that are provided through the issuance of bonds are
129-10 governed by Chapter 49 <Sections 54.516 and 54.517 of this code>.
129-11 SECTION 39. Chapter 50, Water Code, is repealed, except that
129-12 Subchapter H is continued in effect for the sole purpose of the
129-13 administration and operation of contracts created or issued under
129-14 those laws.
129-15 SECTION 40. The following sections of Chapter 51, Water
129-16 Code, are repealed: Sections 51.033, 51.034, 51.073-51.074,
129-17 51.077-51.084, 51.0851, 51.087-51.089, 51.091-51.101,
129-18 51.122-51.124, 51.126, 51.131, 51.132, 51.136-51.138,
129-19 51.140-51.146, 51.149, 51.183, 51.191-51.193, 51.221-51.224,
129-20 51.231-51.279, 51.354-51.363, 51.371-51.374, 51.412, 51.416-51.418,
129-21 51.421, 51.422, 51.4321, 51.4371, 51.691-51.701, 51.714-51.731, and
129-22 51.737-51.747.
129-23 SECTION 41. The following sections of Chapter 52, Water
129-24 Code, are repealed: Sections 52.104, 52.107-52.114, 52.116-52.118,
129-25 52.119-52.121, 52.157, 52.251-52.253, 52.259-52.262, and 52.297.
129-26 SECTION 42. The following sections of Chapter 53, Water
129-27 Code, are repealed: Sections 53.020, 53.022, 53.023,
130-1 53.025-53.028, 53.035-53.039, 53.064, 53.065, 53.067-53.070,
130-2 53.0721, 53.076, 53.077, 53.084-53.087, 53.089, 53.090, 53.105,
130-3 53.106, 53.108-53.111, 53.114, 53.117-53.120, 53.123-53.125,
130-4 53.141-53.144, 53.147, 53.148, 53.173-53.175, 53.1791, 53.197,
130-5 53.198, and 53.231-53.273.
130-6 SECTION 43. The following sections of Chapter 54, Water
130-7 Code, are repealed: Sections 54.026-54.029, 54.103-54.126, 54.202,
130-8 54.204, 54.209-54.233, 54.301-54.312, 54.506, 54.507(a), 54.509,
130-9 54.5121, 54.513, 54.516, 54.517, 54.519, 54.701-54.727.
130-10 SECTION 44. The following sections of Chapter 55, Water
130-11 Code, are repealed: Sections 55.030, 55.033-55.036, 55.052,
130-12 55.104-55.106, 55.109, 55.111-55.116, 55.118-55.128, 55.162,
130-13 55.164, 55.168-55.184, 55.189-55.191, 55.199, 55.203, 55.252,
130-14 55.291-55.304, 55.331, 55.423-55.430, 55.451, 55.453,
130-15 55.492-55.496, 55.503, 55.506, 55.711-55.720, and 55.722-55.749.
130-16 SECTION 45. The following sections of Chapter 56, Water
130-17 Code, are repealed: Sections 56.027-56.031, 56.062, 56.063,
130-18 56.065-56.068, 56.076-56.081, 56.083, 56.113, 56.114, 56.119,
130-19 56.129-56.134, 56.136, 56.138, 56.139, 56.183, 56.184, 56.2045, and
130-20 56.714-56.725.
130-21 SECTION 46. The following sections of Chapter 57, Water
130-22 Code, are repealed: Sections 57.052, 57.054-57.056, 57.062-57.070,
130-23 57.095-57.099, 57.106, 57.107, 57.109, 57.110, 57.112-57.115,
130-24 57.119, 57.120, 57.171-57.174, 57.178, 57.202-57.206, 57.2075,
130-25 57.209-57.211, and 57.276-57.278.
130-26 SECTION 47. The following sections of Chapter 58, Water
130-27 Code, are repealed: Sections 58.033, 58.034, 58.073,
131-1 58.074-58.083, 58.085-58.088, 58.090-58.100, 58.123, 58.124,
131-2 58.131, 58.132, 58.135, 58.139-58.149, 58.151, 58.152, 58.169,
131-3 58.179, 58.187-58.189, 58.221-58.224, 58.261, 58.317,
131-4 58.354-58.362, 58.442, 58.451, 58.452, 58.601, 58.691-58.701, and
131-5 58.714-58.725.
131-6 SECTION 48. The following sections of Chapter 65, Water
131-7 Code, are repealed: Sections 65.024-65.029, 65.104-65.122, 65.202,
131-8 65.204, 65.209-65.234, 65.301, 65.401-65.409, 65.509, 65.512,
131-9 65.514, and 65.701-65.722.
131-10 SECTION 49. The following sections of Chapter 66, Water
131-11 Code, are repealed: Sections 66.022-66.029, 66.103-66.117, 66.119,
131-12 66.120, 66.203-66.205, 66.208-66.215, 66.301, 66.302,
131-13 66.305-66.309, 66.312, and 66.323.
131-14 SECTION 50. (a) This Act takes effect as provided by this
131-15 section.
131-16 (b) Section 49.103(b), Water Code, shall govern all
131-17 elections held after December 31, 1995. Directors elected at any
131-18 election held between January 1, 1992, and April 30, 1992, shall
131-19 serve until the January 1996 election. Directors elected at any
131-20 election held between May 1, 1992, and December 31, 1992, shall
131-21 serve until the May 1996 election. Directors elected at any
131-22 election held between January 1, 1993, and April 30, 1993, shall
131-23 serve until the January 1996 election. Directors elected at any
131-24 election held between May 1, 1993, and July 31, 1993, shall serve
131-25 until the May 1996 election. Directors elected at any election
131-26 held between August 1, 1993, and December 31, 1993, shall serve
131-27 until the May 1998 election. Directors elected at any election
132-1 held between January 1, 1994, and April 30, 1994, shall serve until
132-2 the January 1998 election. Directors elected at any election held
132-3 between May 1, 1994, and December 31, 1994, shall serve until the
132-4 May 1998 election. Directors elected at any election held between
132-5 January 1, 1995, and April 30, 1995, shall serve until the January
132-6 1998 election. Directors elected at any election held between May
132-7 1, 1995, and July 31, 1995, shall serve until the May 1998
132-8 election. Directors elected at any election held between August 1,
132-9 1995, and December 31, 1995, shall serve until the May 1998
132-10 election. Directors whose terms expire prior to the election date
132-11 set by this section shall continue to serve until their successors
132-12 have been elected and qualified.
132-13 (c) All other provisions of this Act take effect September
132-14 1, 1995.
132-15 SECTION 51. The importance of this legislation and the
132-16 crowded condition of the calendars in both houses create an
132-17 emergency and an imperative public necessity that the
132-18 constitutional rule requiring bills to be read on three several
132-19 days in each house be suspended, and this rule is hereby suspended,
132-20 and that this Act take effect and be in force according to its
132-21 terms, and it is so enacted.