1-1 By: Armbrister S.B. No. 626
1-2 (In the Senate - Filed February 16, 1995; February 20, 1995,
1-3 read first time and referred to Committee on Natural Resources;
1-4 April 18, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 18, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 626 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to certain laws governing water districts and nonprofit
1-11 water or sewer service corporations; creating penalties; granting
1-12 authority to issue bonds and levy a tax; granting the power of
1-13 eminent domain.
1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Section 1.002, Water Code, is amended to read as
1-16 follows:
1-17 Sec. 1.002. Construction of Code. (a) The Code
1-18 Construction Act (Chapter 311, Government Code) applies to the
1-19 construction of each provision in this code, except as otherwise
1-20 expressly provided by this code.
1-21 (b) In this code:
1-22 (1) a reference to a title, chapter, or section
1-23 without further identification is a reference to a title, chapter,
1-24 or section of this code; and
1-25 (2) a reference to a subtitle, subchapter, subsection,
1-26 subdivision, paragraph, or other numbered or lettered unit without
1-27 further identification is a reference to a unit of the next larger
1-28 unit of this code in which the reference appears.
1-29 (c) A reference in a law to a statute or part of a statute
1-30 revised by this code is considered to be a reference to the part of
1-31 this code that revises that statute or part of the statute.
1-32 SECTION 2. Title 4, Water Code, is amended by adding Chapter
1-33 49 to read as follows:
1-34 CHAPTER 49. PROVISIONS APPLICABLE TO ALL DISTRICTS
1-35 SUBCHAPTER A. GENERAL PROVISIONS
1-36 Sec. 49.001. DEFINITIONS. (a) As used in this chapter:
1-37 (1) "District" means any district or authority created
1-38 by authority of either Sections 52(b)(1) and (2), Article III, or
1-39 Section 59, Article XVI, Texas Constitution, regardless of how
1-40 created. The term "district" shall not include any navigation
1-41 district or port authority created under general or special law.
1-42 (2) "Commission" means the Texas Natural Resource
1-43 Conservation Commission.
1-44 (3) "Board" means the governing body of a district.
1-45 (4) "Executive director" means the executive director
1-46 of the commission.
1-47 (5) "Water supply corporation" means a nonprofit water
1-48 supply or sewer service corporation created or operating under
1-49 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
1-50 (Article 1434a, Vernon's Texas Civil Statutes).
1-51 (6) "Director" means either a supervisor or director
1-52 appointed or elected to the board.
1-53 (7) "Municipal solid waste" has the same meaning
1-54 assigned by Section 361.003, Health and Safety Code.
1-55 (8) "Special water authority" means a river authority
1-56 as that term is defined in Section 30.003, or a district created by
1-57 a special Act of the legislature that:
1-58 (A) is a provider of water or wastewater service
1-59 to two or more municipalities; and
1-60 (B) is governed by a board of directors
1-61 appointed or designated in whole or in part by the governor, the
1-62 Texas Water Development Board, or municipalities within its service
1-63 area.
1-64 (9) "Potable water" means water that has been treated
1-65 for public drinking water supply purposes.
1-66 (b) These definitions are for use in this chapter only and
1-67 have no effect on any other statute or code unless specifically
1-68 referenced by that statute or code.
2-1 Sec. 49.002. APPLICABILITY. This chapter applies to all
2-2 general and special law districts to the extent that the provisions
2-3 of this chapter do not directly conflict with a provision in any
2-4 other chapter of this code or any Act creating or affecting a
2-5 special law district. In the event of such conflict, the specific
2-6 provisions in such other chapter or Act shall control.
2-7 Sec. 49.003. PENALTY. A district that fails to comply with
2-8 the filing provisions of this code may be subject to a civil
2-9 penalty of up to $100 per day for each day the district wilfully
2-10 continues to violate these provisions after receipt of written
2-11 notice of violation from the executive director by certified mail,
2-12 return receipt requested. The state may sue to recover the
2-13 penalty.
2-14 Sec. 49.004. PENALTY FOR VIOLATION OF DISTRICT RULES.
2-15 (a) The board may set reasonable civil penalties for the breach of
2-16 any rule of the district that shall not exceed the jurisdiction of
2-17 a justice court as provided by Section 27.031, Government Code.
2-18 (b) A penalty under this section is in addition to any other
2-19 penalty provided by the law of this state and may be enforced by
2-20 complaints filed in the appropriate court of jurisdiction in the
2-21 county in which the district's principal office or meeting place is
2-22 located.
2-23 (c) If the district prevails in any suit to enforce its
2-24 rules, it may, in the same action, recover reasonable fees for
2-25 attorneys, expert witnesses, and other costs incurred by the
2-26 district before the court. The amount of the attorney's fees shall
2-27 be fixed by the court.
2-28 (Sections 49.005 to 49.009 reserved for expansion
2-29 SUBCHAPTER B. CREATION
2-30 Sec. 49.010. ORDER OR ACT CREATING DISTRICT. Within 60 days
2-31 after the date a district is created, the district shall file with
2-32 the executive director a certified copy of the order or legislative
2-33 Act creating the district or authorizing its creation, unless the
2-34 district was created by order of the commission.
2-35 (Sections 49.011 to 49.050 reserved for expansion
2-36 SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
2-37 Sec. 49.051. BOARD OF DIRECTORS. A district shall be
2-38 governed by its board, the number of which is otherwise provided by
2-39 law.
2-40 Sec. 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
2-41 is disqualified from serving as a member of a board of a district
2-42 that includes less than all the territory in at least one county
2-43 and which, if located within the corporate area of a city or
2-44 cities, includes within its boundaries less than 75 percent of the
2-45 incorporated area of the city or cities, if that person:
2-46 (1) is related within the third degree of affinity or
2-47 consanguinity to a developer of property in the district, any other
2-48 member of the board, or the manager, engineer, attorney, or other
2-49 person providing professional services to the district;
2-50 (2) is an employee of any developer of property in the
2-51 district or any director, manager, engineer, attorney, or other
2-52 person providing professional services to the district or a
2-53 developer of property in the district in connection with the
2-54 district or property located in the district;
2-55 (3) is a developer of property in the district;
2-56 (4) is serving as an attorney, consultant, engineer,
2-57 manager, architect, or in some other professional capacity for the
2-58 district or a developer of property in the district in connection
2-59 with the district or property located in the district;
2-60 (5)(A) is a party to a contract with or along with the
2-61 district except for the purchase of public services furnished by
2-62 the district to the public generally; or
2-63 (B) is a party to a contract with or along with
2-64 a developer of property in the district relating to the district or
2-65 to property within the district, other than a contract limited
2-66 solely to the purpose of purchasing or conveying real property in
2-67 the district for the purpose of either establishing a permanent
2-68 residence, establishing a commercial business within the district,
2-69 or qualifying as a director; or
2-70 (6) during the term of office, fails to maintain the
3-1 qualifications required by law to serve as a director.
3-2 (b) Within 60 days after the board determines a relationship
3-3 or employment exists which constitutes a disqualification under
3-4 Subsection (a), it shall replace the person serving as a member of
3-5 the board with a person who would not be disqualified.
3-6 (c) Any person who wilfully occupies an office as a member
3-7 of a board and exercises the powers and duties of that office when
3-8 disqualified under the provisions of Subsection (a) is guilty of a
3-9 misdemeanor and, on conviction, shall be fined not less than $100
3-10 nor more than $1,000.
3-11 (d) As used in this section, "developer of property in the
3-12 district" means any person who owns land located within a district
3-13 covered under this section and who has divided or proposes to
3-14 divide the land into two or more parts for the purpose of laying
3-15 out any subdivision or any tract of land or any addition to any
3-16 town or city, or for laying out suburban lots or building lots, or
3-17 any lots, streets, alleys, or parks or other portions intended for
3-18 public use, or the use of purchasers or owners of lots fronting
3-19 thereon or adjacent thereto.
3-20 (e) Any rights obtained by any third party through official
3-21 action of a board covered by this section are not impaired or
3-22 affected by the disqualification under this section of any member
3-23 of the board to serve, provided that the third party had no
3-24 knowledge at the time the rights were obtained of the fact that the
3-25 member of the board was disqualified to serve.
3-26 (f) This section shall not apply to special water
3-27 authorities, districts described in Section 49.181(h)(4) or a
3-28 district where the principal function of the district is to provide
3-29 irrigation water to agricultural lands or to provide nonpotable
3-30 water for any purpose.
3-31 (g) A board by unanimous vote of its remaining members may
3-32 remove a board member only if that board member has missed one-half
3-33 or more of the regular meetings scheduled during the prior 12
3-34 months. Any board member so removed may file a written appeal with
3-35 the commission within 30 days after receiving written notice of the
3-36 board action. The commission may reinstate a removed director if
3-37 the commission finds that the removal was unwarranted under the
3-38 circumstances, including the reasons for absences, the time and
3-39 place of the meetings missed, the business conducted at the
3-40 meetings missed, and any other facts or circumstances the
3-41 commission may deem relevant.
3-42 Sec. 49.053. QUORUM. A majority of the membership of the
3-43 board constitutes a quorum for any meeting, and a concurrence of a
3-44 majority of the entire membership of the board is sufficient for
3-45 transacting any business of the district. This section does not
3-46 apply to special water authorities.
3-47 Sec. 49.054. OFFICERS. (a) After a district is created and
3-48 the directors have qualified, the board shall meet, elect a
3-49 president, vice-president, secretary, and any other officers or
3-50 assistant officers as the board may deem necessary, and begin the
3-51 discharge of its duties.
3-52 (b) After each directors election, the board shall meet and
3-53 elect officers.
3-54 (c) The president is the chief executive officer of the
3-55 district, presides at all meetings of the board, and shall execute
3-56 all documents on behalf of the district. The vice-president shall
3-57 act as president in case of the absence or disability of the
3-58 president. The secretary is responsible for seeing that all
3-59 records and books of the district are properly kept and shall
3-60 attest the president's signature on all documents.
3-61 (d) The board may appoint another director, the general
3-62 manager, or any employee as assistant or deputy secretary to assist
3-63 the secretary, and any such person shall be entitled to certify as
3-64 to the authenticity of any record of the district, including but
3-65 not limited to all proceedings relating to bonds, contracts, or
3-66 indebtedness of the district.
3-67 (e) After any election or appointment of a director, a
3-68 district shall notify the executive director within 30 days after
3-69 the date of the election or appointment of the name and mailing
3-70 address of the director chosen and the date that director's term of
4-1 office expires. The executive director shall provide forms to the
4-2 district for such purpose.
4-3 (f) This section does not apply to special water
4-4 authorities.
4-5 Sec. 49.055. SWORN STATEMENT, BOND, AND OATH OF OFFICE.
4-6 (a) As soon as practicable after a director is elected or
4-7 appointed, that director shall make the sworn statement prescribed
4-8 by the constitution for public office.
4-9 (b) As soon as practicable after a director has made the
4-10 sworn statement, and before beginning to perform the duties of
4-11 office, that director shall take the oath of office prescribed by
4-12 the constitution for public officers.
4-13 (c) Before beginning to perform the duties of office, each
4-14 director shall execute a bond for $10,000 payable to the district
4-15 and conditioned on the faithful performance of that director's
4-16 duties. All bonds of the directors shall be approved by the board
4-17 and paid for by the district.
4-18 (d) The sworn statement, bond, and oath shall be filed with
4-19 the district and retained in its records. A duplicate original of
4-20 the sworn statement and the oath shall also be filed with the
4-21 secretary of state within 10 days after their execution and need
4-22 not be filed before the new director begins to perform the duties
4-23 of office.
4-24 (e) This section does not apply to special water
4-25 authorities.
4-26 Sec. 49.056. GENERAL MANAGER. (a) The board may employ or
4-27 contract with a person to perform such services as general manager
4-28 for the district as the board may from time to time specify. The
4-29 board may delegate to the general manager full authority to manage
4-30 and operate the affairs of the district subject only to orders of
4-31 the board.
4-32 (b) The board may delegate to the general manager the
4-33 authority to employ all persons necessary for the proper handling
4-34 of the business and operation of the district and to determine the
4-35 compensation to be paid all employees other than the general
4-36 manager.
4-37 (c) Except as provided by Section 49.052, a director may be
4-38 employed as general manager of the district, but the compensation
4-39 of a general manager who also serves as a director shall be
4-40 established by the other directors.
4-41 Sec. 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
4-42 be responsible for the management of all the affairs of the
4-43 district. The district shall employ or contract with all persons,
4-44 firms, partnerships, corporations, or other entities, public or
4-45 private, deemed necessary by the board for the conduct of the
4-46 affairs of the district, including but not limited to engineers,
4-47 attorneys, financial advisors, operators, bookkeepers, tax
4-48 assessors and collectors, auditors, and administrative staff.
4-49 (b) The board shall adopt an annual budget. All district
4-50 employees are employed at the will of the district unless the
4-51 district and employee execute a written employment contract.
4-52 (c) The board shall set the compensation and terms for
4-53 consultants.
4-54 (d) In selecting attorneys, engineers, auditors, financial
4-55 advisors, or other professional consultants, the district shall
4-56 follow the procedures provided in Subchapter A, Chapter 2254,
4-57 Government Code (Professional Services Procurement Act).
4-58 (e) The board shall require an officer, employee, or
4-59 consultant who collects, pays, or handles any funds of the district
4-60 to furnish good and sufficient bond, payable to the district, in an
4-61 amount determined by the board to be sufficient to safeguard the
4-62 district. The bond shall be conditioned on the faithful
4-63 performance of that person's duties and on accounting for all funds
4-64 and property of the district. Such bond shall be signed or
4-65 endorsed by a surety company authorized to do business in the
4-66 state.
4-67 (f) The board may pay the premium on surety bonds required
4-68 of officials, employees, or consultants of the district out of any
4-69 available funds of the district, including proceeds from the sale
4-70 of bonds.
5-1 (g) The board may adopt bylaws to govern the affairs of the
5-2 district to perform its purposes. The board by resolution may
5-3 authorize its general manager or other employee to execute
5-4 documents on behalf of the district.
5-5 (h) The board shall also have the right to purchase all
5-6 materials, supplies, equipment, vehicles, and machinery needed by
5-7 the district to perform its purposes.
5-8 Sec. 49.058. CONFLICTS OF INTEREST. A director of a
5-9 district is subject to the provisions of Chapter 171, Local
5-10 Government Code, relating to the regulation of conflicts of
5-11 interest of officers of local governments.
5-12 Sec. 49.059. DISQUALIFICATION OF TAX ASSESSOR AND COLLECTOR.
5-13 (a) No person may serve as tax assessor and collector of a
5-14 district providing potable water or sewer utility services to
5-15 household users if that person:
5-16 (1) is related within the third degree of affinity or
5-17 consanguinity to any developer of property in the district, a
5-18 member of the board, or the manager, engineer, or attorney for the
5-19 district;
5-20 (2) is or was within two years immediately preceding
5-21 the assumption of assessment and collection duties with the
5-22 district an employee of any developer of property in the district
5-23 or any director, manager, engineer, or attorney for the district;
5-24 (3) owns an interest in or is employed by any
5-25 corporation organized for the purpose of tax assessment and
5-26 collection services, a substantial portion of the stock of which is
5-27 owned by a developer of property within the district or any
5-28 director, manager, engineer, or attorney for the district; or
5-29 (4) is directly or through a corporation developing
5-30 land in the district or is a director, engineer, or attorney for
5-31 the district.
5-32 (b) Within 60 days after the board determines a relationship
5-33 or employment exists which constitutes a disqualification under
5-34 Subsection (a), it shall replace the person serving as tax assessor
5-35 and collector with a person who would not be disqualified.
5-36 (c) Any person who wilfully violates the provisions of
5-37 Subsection (a) is guilty of a misdemeanor and on conviction shall
5-38 be fined not less than $100 nor more than $1,000.
5-39 (d) As used in this section, "developer of property in the
5-40 district" has the same meaning as in Section 49.052(d).
5-41 Sec. 49.060. FEES OF OFFICE; REIMBURSEMENT. (a) A director
5-42 is entitled to receive fees of office of not more than $100 a day
5-43 for each day the director actually spends performing the duties of
5-44 a director. The fees of office may not exceed $6,000 per annum
5-45 except for directors of a special water authority which is engaged
5-46 in the distribution and sale of electric energy to the public.
5-47 (b) Each director is also entitled to receive reimbursement
5-48 of actual expenses reasonably and necessarily incurred while
5-49 engaging in activities on behalf of the district.
5-50 (c) In order to receive fees of office and to receive
5-51 reimbursement for expenses, each director shall file with the
5-52 district a verified statement showing the number of days actually
5-53 spent in the service of the district and a general description of
5-54 the duties performed for each day of service.
5-55 (d) Section 49.002 notwithstanding, in all areas of conflict
5-56 the provisions of this section shall take precedence over all prior
5-57 statutory enactments. If the enactment of this section results in
5-58 an increase in the fees of office for any district, that district's
5-59 fees of office shall not increase unless the board adopts a
5-60 resolution authorizing payment of the higher fees.
5-61 Sec. 49.061. SEAL. The directors shall adopt a seal for the
5-62 district.
5-63 Sec. 49.062. OFFICES AND MEETING PLACES. (a) The board
5-64 shall designate from time to time and maintain one or more regular
5-65 offices for conducting the business of the district and maintaining
5-66 the records of the district. Such offices may be located either
5-67 inside or outside the district's boundaries as determined in the
5-68 discretion of the board.
5-69 (b) The board shall designate one or more places inside or
5-70 outside the district for conducting the meetings of the board. The
6-1 meeting place may be a private residence or office, provided that
6-2 the board, in its order establishing the meeting place, declares
6-3 the same to be a public place and invites the public to attend any
6-4 meeting of the board. If the board establishes a meeting place or
6-5 places outside the district, it shall give notice of the location
6-6 or locations by filing a true copy of the resolution establishing
6-7 the location or locations of the meeting place or places with the
6-8 commission and also by publishing notice of the location or
6-9 locations in a newspaper of general circulation in the district.
6-10 If the location of any of the meeting places outside the district
6-11 is changed, notice of the change shall be given in the same manner.
6-12 (c) After at least 25 qualified electors are residing in a
6-13 district, on written request of at least five of those electors,
6-14 the board shall designate a meeting place and hold meetings within
6-15 the district if it determines that the meeting place used by the
6-16 district deprives the residents of a reasonable opportunity to
6-17 attend district meetings. On the failure to designate the location
6-18 of the meeting place within the district, five electors may
6-19 petition the commission to designate a location. If it determines
6-20 that the meeting place used by the district deprives the residents
6-21 of a reasonable opportunity to attend district meetings, the
6-22 commission may designate a meeting place inside or outside the
6-23 district which is reasonably available to the public and require
6-24 that the meetings be held at such place. After the next election,
6-25 the board may designate different meeting places, including one
6-26 located outside the boundaries of the district.
6-27 (d) Two or more districts may designate and share offices
6-28 and meeting places. This section does not apply to special water
6-29 authorities.
6-30 Sec. 49.063. NOTICE OF MEETINGS. Notice of meetings of the
6-31 board shall be given as set forth in the open meetings law, Chapter
6-32 551, Government Code, except that if a district does not have a
6-33 meeting place within the district, the district shall post notice
6-34 of its meeting at a public place within the district specified by
6-35 the board in a written resolution, rather than at its
6-36 administrative office. The board shall specify such public place
6-37 to be a bulletin board or other place within the district which is
6-38 reasonably available to the public. Neither failure to provide
6-39 notice of a regular meeting nor an insubstantial defect in notice
6-40 of any meeting shall affect the validity of any action taken at the
6-41 meeting.
6-42 Sec. 49.064. MEETINGS. The board shall hold such regular
6-43 and special meetings as may be necessary for the proper conduct of
6-44 the district's business. All meetings shall be conducted in
6-45 accordance with the open meetings law, Chapter 551, Government
6-46 Code. A meeting of a committee of the board, or a committee
6-47 composed of representatives of more than one board, where less than
6-48 a quorum of any one board is present is not subject to the
6-49 provisions of the open meetings law, Chapter 551, Government Code.
6-50 Sec. 49.065. RECORDS. (a) The board shall keep a complete
6-51 account of all its meetings and proceedings and shall preserve its
6-52 minutes, contracts, records, notices, accounts, receipts, and other
6-53 records in a safe place.
6-54 (b) The records of each district are the property of the
6-55 district and are subject to the open records law, Chapter 552,
6-56 Government Code.
6-57 (c) The preservation, microfilming, destruction, or other
6-58 disposition of the records of each district is subject to the
6-59 requirements of Chapter 201, Local Government Code, and rules
6-60 adopted under that chapter.
6-61 Sec. 49.066. SUITS. (a) A district may sue and be sued in
6-62 the courts of this state in the name of the district by and through
6-63 its board. All courts shall take judicial notice of the creation
6-64 of the district and of its boundaries.
6-65 (b) Any court in the state rendering judgment for debt
6-66 against a district may order the board to levy, assess, and collect
6-67 taxes or assessments to pay the judgment.
6-68 (c) The president or the general manager of any district
6-69 shall be the agent of the district on whom process, notice, or
6-70 demand required or permitted by law to be served upon the district
7-1 may be served.
7-2 (d) Except as provided in Subsection (e), no suit may be
7-3 instituted in any court of this state contesting:
7-4 (1) the validity of the creation and boundaries of a
7-5 district created under this code;
7-6 (2) any bonds or other obligations created under this
7-7 code; or
7-8 (3) the validity or the authorization of a contract
7-9 with the United States by the district.
7-10 (e) The matters listed in Subsection (d) may be judicially
7-11 inquired into at any time and determined in any suit brought by the
7-12 State of Texas through the attorney general. The action shall be
7-13 brought on good cause shown, except where otherwise provided by
7-14 other provisions of this code or by the Texas Constitution. It is
7-15 specifically provided, however, that no such proceeding shall
7-16 affect the validity of or security for any bonds or other
7-17 obligations theretofore issued by a district if such bonds or other
7-18 obligations have been approved by the attorney general as provided
7-19 by Section 49.184.
7-20 (f) A district or water supply corporation shall not be
7-21 required to give bond for appeal, injunction, or costs in any suit
7-22 to which it is a party and shall not be required to deposit more
7-23 than the amount of any award in any eminent domain proceeding.
7-24 Sec. 49.067. CONTRACTS. A district shall contract, and be
7-25 contracted with, in the name of the district.
7-26 Sec. 49.068. CONTRACTS WITH GOVERNMENTAL AGENCIES. The
7-27 provisions of this chapter pertaining to bids and the Local
7-28 Government Code notwithstanding, a district may purchase property
7-29 from any governmental entity by negotiated contract without the
7-30 necessity of securing appraisals or advertising for bids.
7-31 Sec. 49.069. EMPLOYEE BENEFITS. (a) The board may provide
7-32 for and administer retirement, disability, and death compensation
7-33 funds for the employees of the district.
7-34 (b) The board may establish a public retirement system in
7-35 accordance with the provisions of Chapter 810, Government Code.
7-36 The board may also provide for a deferred compensation plan
7-37 described by Section 457, Internal Revenue Code of 1986 (26 U.S.C.
7-38 Section 457).
7-39 (c) The board may include hospitalization and medical
7-40 benefits to its employees as part of the compensation paid to the
7-41 officers and employees and may adopt any plan, rule, or regulation
7-42 in connection with it and amend or change the plan, rule, or
7-43 regulation as it may determine.
7-44 Sec. 49.070. WORKERS' COMPENSATION. The board may become a
7-45 subscriber under Title 5, Labor Code (Texas Workers' Compensation
7-46 Act), with any insurance company authorized to write the policies
7-47 in the State of Texas.
7-48 Sec. 49.071. DISTRICT NAME CHANGE. (a) On petition by a
7-49 district showing reasonable grounds for a name change, the
7-50 commission by order may change the name of the district to the name
7-51 requested by the district. The new name must be generally
7-52 descriptive of the location of the district followed by the type of
7-53 district as provided by the title of the chapter of the Water Code
7-54 governing the district. If a district is located wholly within one
7-55 county that contains more than one district of that type, the
7-56 district may be differentiated, if necessary, by adding to the new
7-57 name the proper consecutive number. The new name may not be the
7-58 same as the name of any other district in the county.
7-59 (b) A name change takes effect on the date of issuance of
7-60 the commission order making the name change.
7-61 (c) Not later than the 30th day after the date of issuance
7-62 of the commission order making the name change, the district shall
7-63 publish notice of the name change in a newspaper or newspapers of
7-64 general circulation in the county or counties in which the district
7-65 is located. Within that same period, the district shall also give
7-66 notice of the name change by mail to utility customers or
7-67 permittees, if any, and, to the extent practicable, to the holders
7-68 of bonds, obligations, and other indebtedness of the district.
7-69 Failure of the district to comply with this subsection does not
7-70 affect the validity of the name change.
8-1 (d) A change in the name of a district does not affect
8-2 bonds, obligations, or other indebtedness of the district existing
8-3 before the name change occurred.
8-4 (Sections 49.072 to 49.100 reserved for expansion
8-5 SUBCHAPTER D. ELECTION PROVISIONS
8-6 Sec. 49.101. GENERAL. All elections shall be generally
8-7 conducted in accordance with the Election Code except as otherwise
8-8 provided for by this code. Write-in candidacies for any district
8-9 office shall be governed by Subchapter C, Chapter 146, Election
8-10 Code.
8-11 Sec. 49.102. CONFIRMATION AND DIRECTOR ELECTION.
8-12 (a) Before issuing any bonds or other obligations, an election
8-13 shall be held within the boundaries of the proposed district to
8-14 determine if the proposed district shall be established and, if the
8-15 directors of the district are required by law to be elected, to
8-16 elect permanent directors.
8-17 (b) Notice of a confirmation or director election shall
8-18 state the day and place or places for holding the election, the
8-19 propositions to be voted on, and the number of directors to be
8-20 voted on.
8-21 (c) The ballots for a confirmation election shall be printed
8-22 to provide for voting "For District" and "Against District."
8-23 Ballots for a directors election shall provide the names of the
8-24 persons appointed by the governing body who qualified and are
8-25 serving as temporary directors at the time the election is called.
8-26 The ballots shall also have blank places after the names of the
8-27 temporary directors in which a voter may write the names of other
8-28 persons for directors.
8-29 (d) Immediately after the confirmation and director
8-30 election, the presiding judge shall take returns of the results to
8-31 the temporary board. The temporary board shall canvass the returns
8-32 and declare the results at the earliest practicable time.
8-33 (e) If a majority of the votes cast in the election favor
8-34 the creation of the district, then the temporary board shall
8-35 declare that the district is created and enter the result in its
8-36 minutes. If a majority of the votes cast in the election are
8-37 against the creation of the district, the temporary board shall
8-38 declare that the district was defeated and enter the result in its
8-39 minutes. A copy of the order shall be filed with the commission.
8-40 (f) The order canvassing the results of the confirmation
8-41 election shall contain a description of the district's boundaries
8-42 and shall be filed with the executive director and in the deed
8-43 records of the county or counties in which the district is located.
8-44 (g) The temporary board shall also declare the persons
8-45 receiving the highest number of votes for directors to have been
8-46 elected as permanent directors.
8-47 (h) Unless otherwise agreed, the directors shall decide the
8-48 initial terms of office by lot, with a simple majority of directors
8-49 serving until the second succeeding directors election and the
8-50 remaining directors serving until the next directors election.
8-51 (i) The provisions of this section shall not be applicable
8-52 to any district exercising the powers of Chapter 375, Local
8-53 Government Code, or any district created by a special Act of the
8-54 legislature that does not require a confirmation election.
8-55 Sec. 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
8-56 provided by Section 49.102, the members of the board of a district
8-57 shall serve for four-year terms.
8-58 (b) An election shall be held on the uniform election date,
8-59 established by the Election Code, in either January or May of each
8-60 even-numbered year to elect the appropriate number of directors.
8-61 (c) The permanent directors may assign a position number to
8-62 each director's office, in which case directors shall thereafter be
8-63 elected by position and not at large.
8-64 (d) A district may provide for the election of all
8-65 directors, or a majority of directors, from single-member
8-66 districts, which shall be geographically described within the
8-67 boundaries of the district in a manner that is equitable for the
8-68 electors within such districts and within the district generally.
8-69 (e) Section 49.002 notwithstanding, in all areas of conflict
8-70 the provisions of Subsection (b) shall take precedence over all
9-1 prior statutory enactments.
9-2 (f) This section does not apply to any special law district
9-3 or authority that is not required by the law creating the district
9-4 or authority to elect its directors by the public.
9-5 Sec. 49.104. ALTERNATIVE ELECTION PROCEDURES.
9-6 (a) Notwithstanding the provisions and requirements of the
9-7 Election Code and general laws, any two or more districts situated
9-8 in the same county and in which substantially all of the land is
9-9 being or has been developed as part of a single community
9-10 development plan and which are served by common water supply and
9-11 waste disposal systems may by mutual agreement designate a common
9-12 election office and common early and regular polling places within
9-13 one or more of the districts, but outside the boundaries of one or
9-14 more of the districts, for the conduct of director election
9-15 proceedings and early and regular balloting in director elections.
9-16 This alternative election procedure may only be used if the common
9-17 election office and polling places so designated:
9-18 (1) are within buildings open to the public;
9-19 (2) are within the boundaries of at least one of the
9-20 districts;
9-21 (3) meet the requirements of the Election Code and
9-22 general laws as polling places; and
9-23 (4) are located not more than five miles from any
9-24 portion of the boundaries of any of the participating districts.
9-25 (b) Such districts may also agree on and designate a common
9-26 election officer and common early and regular voting officials for
9-27 some or all of the director elections to be simultaneously
9-28 conducted at a common location, any of whom may be nonelective
9-29 employees of one or more of the districts, so long as the early and
9-30 regular voting officials are qualified voters within at least one
9-31 of the districts.
9-32 Sec. 49.105. VACANCIES. (a) Except as otherwise provided
9-33 in this code, all vacancies on the board and in other offices shall
9-34 be filled for the unexpired term by appointment of the board.
9-35 (b) If the number of directors is reduced to fewer than a
9-36 majority, the vacancies shall be filled by appointment by the
9-37 commission or the county commissioners court if the district was
9-38 created by the county commissioners court. An appointed director
9-39 shall serve for the unexpired term of the director he or she is
9-40 replacing.
9-41 (c) In the event of a failure to elect one or more members
9-42 of the board of a district resulting from the absence of, or
9-43 failure to vote by, the qualified voters in the district, the
9-44 current members of the board holding the positions not filled at
9-45 such election shall be deemed to have been reelected and shall
9-46 serve an additional term of office.
9-47 Sec. 49.106. BOND ELECTIONS. (a) Before an election is
9-48 held to authorize the issuance of bonds, other than refunding
9-49 bonds, there shall be filed in the office of the district and open
9-50 to inspection by the public an engineer's report covering the land,
9-51 improvements, facilities, plants, equipment, and appliances to be
9-52 purchased or constructed and their estimated cost, together with
9-53 maps, plats, profiles, and data fully showing and explaining the
9-54 report.
9-55 (b) Notice of a bond election shall contain the proposition
9-56 or propositions to be voted on, which includes the estimate of the
9-57 probable cost of design, construction, purchase, and acquisition of
9-58 improvements and additions thereto, and incidental expenses
9-59 connected with such improvements and the issuance of bonds.
9-60 (c) A bond election may be held on the same day as any other
9-61 district election. The bond election may be called by a separate
9-62 election order or as a part of any other election order. The board
9-63 may submit multiple purposes in a single proposition at an
9-64 election.
9-65 Sec. 49.107. OPERATION AND MAINTENANCE TAX. (a) A district
9-66 may levy and collect a tax for operation and maintenance purposes,
9-67 including funds for planning, constructing, acquiring, maintaining,
9-68 repairing, and operating all necessary land, plants, works,
9-69 facilities, improvements, appliances, and equipment of the district
9-70 and for paying costs of proper services, engineering and legal
10-1 fees, and organization and administrative expenses.
10-2 (b) An operation and maintenance tax may not be levied by a
10-3 district until it is approved by a majority of the electors voting
10-4 at an election held for that purpose. After such a tax has been
10-5 authorized by the district's voters, the board shall be authorized
10-6 to levy the tax and have it assessed and collected as other
10-7 district taxes.
10-8 (c) An operation and maintenance tax election may be held at
10-9 the same time and in conjunction with any other district election.
10-10 The election may be called by a separate election order or as part
10-11 of any other election order.
10-12 (d) The proposition in an operation and maintenance tax
10-13 election may be for a specific maximum rate or for an unlimited
10-14 rate.
10-15 (e) If a district has any surplus operation and maintenance
10-16 tax funds that are not needed for the purposes for which they were
10-17 collected, the funds may be used for any lawful purpose.
10-18 (f) Before a district reimburses a developer of property in
10-19 the district, as that term is defined in Section 49.052(d), or its
10-20 assigns, from operation and maintenance tax funds, for planning,
10-21 constructing, or acquiring facilities, the district shall obtain
10-22 approval by the executive director.
10-23 Sec. 49.108. CONTRACT ELECTIONS. (a) A contract may
10-24 provide that the district will make payment under the contract from
10-25 proceeds from the sale of notes or bonds, from taxes, or from any
10-26 other income of the district or any combination of these.
10-27 (b) A district may make payments under a contract from taxes
10-28 other than operation and maintenance taxes after the provisions of
10-29 the contract have been approved by a majority of the electors
10-30 voting at an election held for that purpose.
10-31 (c) A contract election may be held at the same time and in
10-32 conjunction with any other district election. The election may be
10-33 called by a separate election order or as part of any other
10-34 election order.
10-35 (d) A contract approved by the voters will constitute an
10-36 obligation against the taxing power of the district to the extent
10-37 provided in the contract.
10-38 (Sections 49.109 to 49.150 reserved for expansion
10-39 SUBCHAPTER E. FISCAL PROVISIONS
10-40 Sec. 49.151. EXPENDITURES. (a) Except as otherwise
10-41 provided by this chapter, a district's money may be disbursed only
10-42 by check, draft, order, or other instrument that shall be signed by
10-43 at least a majority of the directors.
10-44 (b) The board may by resolution allow the general manager,
10-45 treasurer, bookkeeper, or other employee of the district to sign
10-46 disbursements.
10-47 (c) The board may by resolution allow disbursements to be
10-48 transferred by federal reserve wire system to accounts in the name
10-49 of the district.
10-50 Sec. 49.152. PURPOSES FOR BORROWING MONEY. The district may
10-51 borrow money for any corporate purpose or combination of corporate
10-52 purposes only in compliance with the methods and procedures
10-53 specifically provided by this chapter or by general law.
10-54 Sec. 49.153. REVENUE NOTES. (a) The board, without the
10-55 necessity of an election, may borrow money on negotiable notes of
10-56 the district to be paid solely from the revenues derived from the
10-57 ownership of all or any designated part of the district's works,
10-58 plants, improvements, facilities, or equipment after deduction of
10-59 the reasonable cost of maintaining and operating the facilities.
10-60 (b) The notes may be first or subordinate lien notes within
10-61 the discretion of the board, but no obligation may ever be a charge
10-62 on the property of the district or on taxes levied or collected by
10-63 the district but shall be solely a charge on the revenues pledged
10-64 for the payment of the obligation. No part of the obligation may
10-65 ever be paid from taxes levied or collected by the district.
10-66 (c) A district may not execute a note for a term longer than
10-67 three years unless the commission issues an order approving the
10-68 note.
10-69 (d) This section does not apply to special water
10-70 authorities.
11-1 Sec. 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
11-2 NOTES. (a) The board may declare an emergency in the matter of
11-3 funds not being available to pay principal of and interest on any
11-4 bonds of the district payable in whole or in part from taxes or to
11-5 meet any other needs of the district and may issue negotiable tax
11-6 anticipation notes or negotiable bond anticipation notes to borrow
11-7 the money needed by the district without advertising or giving
11-8 notice of the sale. Bond anticipation notes and tax anticipation
11-9 notes shall mature within one year of their date.
11-10 (b) Tax anticipation notes may be issued for any purpose for
11-11 which the district is authorized to levy taxes, and tax
11-12 anticipation notes shall be secured with the proceeds of taxes to
11-13 be levied by the district in the succeeding 12-month period. The
11-14 board may covenant with the purchasers of the notes that the board
11-15 will levy a sufficient tax to pay the principal of and interest on
11-16 the notes and pay the costs of collecting the taxes.
11-17 (c) Bond anticipation notes may be issued for any purpose
11-18 for which bonds of the district may have previously been voted or
11-19 may be issued for the purpose of refunding previously issued bond
11-20 anticipation notes. A district may covenant with the purchasers of
11-21 the bond anticipation notes that the district will use the proceeds
11-22 of sale of any bonds in the process of issuance for the purpose of
11-23 refunding the bond anticipation notes, in which case the board will
11-24 be required to use the proceeds received from sale of the bonds in
11-25 the process of issuance to pay principal, interest, or redemption
11-26 price on the bond anticipation notes.
11-27 (d) Districts required to seek commission approval of bonds
11-28 must have an application for such approval on file with the
11-29 commission prior to the issuance of bond anticipation notes.
11-30 Sec. 49.155. REPAYMENT OF EXPENSES. (a) The district may
11-31 pay all costs and expenses necessarily incurred in the organization
11-32 and operation of a district during creation and construction
11-33 periods including but not limited to the following:
11-34 (1) organizational, administrative, and operating
11-35 expenses;
11-36 (2) the cost of investigation and making plans;
11-37 (3) the cost of the engineer's report;
11-38 (4) legal fees; and
11-39 (5) any other incidental expenses.
11-40 (b) For purposes of this section, construction periods shall
11-41 mean any periods during which the district is constructing its
11-42 facilities or there is construction by third parties of above
11-43 ground improvements within the district, but in no event longer
11-44 than five years.
11-45 (c) The district may reimburse any person for money advanced
11-46 for the purposes in Subsection (a) and may be charged interest on
11-47 such funds.
11-48 (d) These payments may be made from money obtained from the
11-49 issuance of notes or the sale of bonds issued by the district or
11-50 out of maintenance taxes or other revenues of the district.
11-51 Sec. 49.156. DEPOSITORY. (a) The board, by order or
11-52 resolution, shall designate one or more banks or savings
11-53 associations within the state to serve as the depository for the
11-54 funds of the district. The board shall not be required to
11-55 advertise or solicit bids in selecting its depositories.
11-56 (b) To the extent that funds in the depository banks or
11-57 savings associations are not insured by the Federal Deposit
11-58 Insurance Corporation, they shall be secured in the manner provided
11-59 by law for the security of funds by Chapter 2257, Government Code
11-60 (Public Funds Collateral Act).
11-61 (c) The board may authorize a designated representative to
11-62 supervise the substitution of securities pledged to secure the
11-63 district's funds.
11-64 Sec. 49.157. INVESTMENTS. (a) All district deposits and
11-65 investments shall be governed by Subchapter A, Chapter 2256,
11-66 Government Code (Public Funds Investment Act).
11-67 (b) The board may provide that an authorized representative
11-68 of the district may invest and reinvest the funds of the district
11-69 and provide for money to be withdrawn from the appropriate accounts
11-70 of the district for the investments on such terms as the board
12-1 considers advisable.
12-2 Sec. 49.158. FISCAL YEAR. Within 30 days after a district
12-3 becomes financially active, the board shall adopt a fiscal year by
12-4 a formal board resolution. The district shall notify the executive
12-5 director of the adopted fiscal year within 30 days after adoption.
12-6 The district may change its fiscal year at any time; provided,
12-7 however, it may not be changed more than once in any 24-month
12-8 period. After any change in the district's fiscal year, the
12-9 district shall notify the executive director of the changed fiscal
12-10 year within 30 days after adoption.
12-11 (Sections 49.159 to 49.180 reserved for expansion
12-12 SUBCHAPTER F. ISSUANCE OF BONDS
12-13 Sec. 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
12-14 DISTRICT BONDS. (a) A district may not issue bonds unless the
12-15 commission determines that the project to be financed by the bonds
12-16 is feasible and issues an order approving the issuance of the
12-17 bonds. This section does not apply to refunding bonds or bonds
12-18 issued to and approved by the Farmers Home Administration, the
12-19 United States Department of Agriculture, or the Texas Water
12-20 Development Board.
12-21 (b) A district may submit to the commission a written
12-22 application for investigation of feasibility. An engineer's report
12-23 describing the project, including the data, profiles, maps, plans,
12-24 and specifications prepared in connection with the report, must be
12-25 submitted with the application.
12-26 (c) The executive director shall examine the application and
12-27 the report and shall inspect the project area. The district shall,
12-28 on request, supply the executive director with additional data and
12-29 information necessary for an investigation of the application, the
12-30 engineer's report, and the project.
12-31 (d) The executive director shall prepare a written report on
12-32 the project and include suggestions, if any, for changes or
12-33 improvements in the project. The executive director shall retain a
12-34 copy of the report and send a copy of the report to both the
12-35 commission and the district.
12-36 (e) The commission shall consider the application, the
12-37 engineer's report, the executive director's report, and any other
12-38 evidence allowed by commission rule to be considered in determining
12-39 the feasibility of the project.
12-40 (f) The commission shall determine whether the project to be
12-41 financed by the bonds is feasible and issue an order either
12-42 approving or disapproving, as appropriate, the issuance of the
12-43 bonds. The commission shall retain a copy of the order and send a
12-44 copy of the order to the district.
12-45 (g) Notwithstanding any provision of this code to the
12-46 contrary, the commission may approve the issuance of bonds of a
12-47 district without the submission of plans and specifications of the
12-48 improvements to be financed with the bonds. The commission may
12-49 condition the approval on any terms or conditions considered
12-50 appropriate by the commission.
12-51 (h) This section does not apply to a district if:
12-52 (1) the district's boundaries include one entire
12-53 county;
12-54 (2) the district was created by a special Act of the
12-55 legislature and:
12-56 (A) the district is located entirely within one
12-57 county;
12-58 (B) entirely within one or more home-rule
12-59 municipalities;
12-60 (C) the total taxable value of the real property
12-61 and improvements to the real property zoned by one or more
12-62 home-rule municipalities for residential purposes and located
12-63 within the district does not exceed 25 percent of the total taxable
12-64 value of all taxable property in the district, as shown by the most
12-65 recent certified appraisal tax roll prepared by the appraisal
12-66 district for the county; and
12-67 (D) the district was not required by law to
12-68 obtain commission approval of its bonds before the effective date
12-69 of this section;
12-70 (3) the district is a special water authority; or
13-1 (4) the district is governed by a board of directors
13-2 appointed in whole or in part by the governor, a state agency, or
13-3 the governing body or chief elected official of a municipality or
13-4 county and does not provide water and sewer services to residential
13-5 retail customers as its principal function.
13-6 Sec. 49.182. COMMISSION SUPERVISION OF PROJECTS AND
13-7 IMPROVEMENTS. (a) During construction of projects and
13-8 improvements approved by the commission under this subchapter, no
13-9 substantial alterations may be made in the plans and specifications
13-10 without the approval of the commission in accordance with
13-11 commission rules.
13-12 (b) The executive director may inspect the improvements at
13-13 any time during construction to determine if the project is being
13-14 constructed in accordance with the plans and specifications
13-15 approved by the commission.
13-16 (c) If the executive director finds that the project is not
13-17 being constructed in accordance with the approved plans and
13-18 specifications, the executive director shall give written notice
13-19 immediately by certified mail to the district's manager and to each
13-20 board member.
13-21 (d) If within 10 days after the notice is mailed the board
13-22 does not take steps to ensure that the project is being constructed
13-23 in accordance with the approved plans and specifications, the
13-24 executive director shall give written notice of this fact to the
13-25 attorney general.
13-26 (e) After receiving this notice, the attorney general may
13-27 bring an action for injunctive relief or quo warranto proceedings
13-28 against the directors. Venue for either suit is exclusively in a
13-29 district court in Travis County.
13-30 Sec. 49.183. BOND SALES. (a) Except for refunding bonds,
13-31 or bonds sold to a state or federal agency, bonds issued by a
13-32 district shall be sold after advertising for and receiving
13-33 competitive sealed bids and shall be awarded to the bidder whose
13-34 bid produces the lowest net effective interest rate to the
13-35 district.
13-36 (b) Except for refunding bonds, or bonds sold to a state or
13-37 federal agency, after any bonds are finally approved and before
13-38 they are sold by a district, the board shall publish an appropriate
13-39 notice of the sale:
13-40 (1) at least one time not less than 10 days before the
13-41 date of sale in a newspaper of general circulation in the county or
13-42 counties in which the district is located; and
13-43 (2) at least one time in one or more recognized
13-44 financial publications of general circulation in the state as
13-45 approved by the state attorney general.
13-46 (c) If the district is issuing bonds and refunding bonds as
13-47 one issue and if the initial principal amount of refunding bonds is
13-48 50 percent or more of the total initial principal amount of bonds
13-49 being issued, for the purposes of this section, the issue shall be
13-50 considered to be refunding bonds and competitive bids shall not be
13-51 required.
13-52 (d) A district's bonds are negotiable instruments within the
13-53 meaning and purposes of the Business & Commerce Code. A district's
13-54 bonds may be issued and bear interest in accordance with Chapter
13-55 503, Acts of the 54th Legislature, 1955 (Article 717k, Vernon's
13-56 Texas Civil Statutes); Chapter 3, Acts of the 61st Legislature,
13-57 Regular Session, 1969 (Article 717k-2, Vernon's Texas Civil
13-58 Statutes); the Bond Procedures Act of 1981 (Article 717k-6,
13-59 Vernon's Texas Civil Statutes); and Chapter 656, Acts of the 68th
13-60 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
13-61 Civil Statutes). Except for this subsection, this section does not
13-62 apply to special water authorities or districts described in
13-63 Section 49.181(h)(4).
13-64 (e) Subsections (a) and (b) do not apply to district bonds
13-65 issued pursuant to Chapter 656, Acts of the 68th Legislature,
13-66 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
13-67 Statutes).
13-68 Sec. 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
13-69 REGISTRATION OF BONDS. (a) Before bonds issued by a district are
13-70 delivered to the purchasers, a certified copy of all proceedings
14-1 relating to organization of the district for first bond issues and
14-2 issuance of the bonds and other relevant information shall be sent
14-3 to the attorney general.
14-4 (b) The attorney general shall carefully examine the bonds,
14-5 with regard to the record and the constitution and laws of this
14-6 state governing the issuance of bonds, and the attorney general
14-7 shall officially approve and certify the bonds if he or she finds
14-8 that they conform to the record and the constitution and laws of
14-9 this state and are valid and binding obligations of the district.
14-10 (c) After the attorney general approves and certifies the
14-11 bonds, the comptroller shall register them in a book kept for that
14-12 purpose and shall record the certificate of the attorney general.
14-13 (d) After the approval and registration of the bonds by the
14-14 comptroller, they shall be incontestable in any court or other
14-15 forum, for any reason, and shall be valid and binding obligations
14-16 in accordance with their terms for all purposes.
14-17 (e) A contract or lease may be submitted to the attorney
14-18 general along with the bond records, and, if submitted, the
14-19 approval by the attorney general of the bonds shall constitute an
14-20 approval of the contract or lease and the contract or lease shall
14-21 be incontestable.
14-22 Sec. 49.185. EXEMPTIONS. This subchapter shall not apply to
14-23 districts engaged in the distribution and sale of electric energy
14-24 to the public.
14-25 (Sections 49.186 to 49.190 reserved for expansion
14-26 SUBCHAPTER G. AUDIT OF DISTRICTS
14-27 Sec. 49.191. DUTY TO AUDIT. (a) The board shall have the
14-28 district's fiscal accounts and records audited annually at the
14-29 expense of the district.
14-30 (b) In all areas of conflict, the provisions of this
14-31 subchapter shall take precedence over all prior statutory
14-32 enactments.
14-33 (c) The person who performs the audit shall be a certified
14-34 public accountant or public accountant holding a permit from the
14-35 Texas State Board of Public Accountancy.
14-36 (d) The audit required by this section shall be completed
14-37 within 120 days after the close of the district's fiscal year.
14-38 Sec. 49.192. FORM OF AUDIT. The executive director shall
14-39 adopt accounting and auditing manuals and, except as otherwise
14-40 provided by the manuals, the district audit shall be performed
14-41 according to the generally accepted auditing standards adopted by
14-42 the American Institute of Certified Public Accountants. Financial
14-43 statements shall be prepared in accordance with generally accepted
14-44 accounting principles as adopted by the American Institute of
14-45 Certified Public Accountants.
14-46 Sec. 49.193. FINANCIAL REPORTS. The district's depository,
14-47 the district's treasurer, and the district's bookkeeper, if any,
14-48 who receives or has control over any district funds shall keep a
14-49 full and itemized account of district funds in its, his, or her
14-50 possession. Such itemized accounts and records shall be available
14-51 for audit.
14-52 Sec. 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
14-53 REPORTS. (a) After the board has approved the audit, it shall
14-54 submit a copy of the report to the executive director for filing
14-55 within 135 days after the close of the district's fiscal year.
14-56 (b) If the board refuses to approve the annual audit report,
14-57 the board shall submit a copy of the report to the executive
14-58 director for filing within 135 days after the close of the
14-59 district's fiscal year, accompanied by a statement from the board
14-60 explaining the reasons for its failure to approve the report.
14-61 (c) Copies of the audit, the annual financial dormancy
14-62 affidavit, or annual financial report described in Sections 49.197
14-63 and 49.198 shall be filed annually in the office of the district.
14-64 (d) Each district shall file with the executive director an
14-65 annual filing affidavit in a format prescribed by the executive
14-66 director, executed by a duly authorized representative of the
14-67 board, stating that all copies of the annual audit report, annual
14-68 financial dormancy affidavit, or annual financial report have been
14-69 filed under this section.
14-70 (e) The annual filing affidavit shall be submitted with the
15-1 applicable annual document when it is submitted to the executive
15-2 director for filing as prescribed by this subchapter.
15-3 (f) The executive director shall file with the attorney
15-4 general the names of any districts that do not comply with the
15-5 provisions of this subchapter.
15-6 Sec. 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
15-7 executive director may review the audit report of each district.
15-8 (b) The commission may request that the state auditor assist
15-9 in the establishment of standards and procedures for review of
15-10 district audits by the executive director.
15-11 (c) If the executive director has any objections or
15-12 determines any violations of generally accepted auditing standards
15-13 or accounting principles, statutes, or board rules, or if the
15-14 executive director has any recommendations, he or she shall notify
15-15 the board and the district's auditor.
15-16 (d) Before the audit report may be accepted by the executive
15-17 director as being in compliance with the provisions of this
15-18 subchapter, the board and the auditor shall remedy objections and
15-19 correct violations of which they have been notified by the
15-20 executive director.
15-21 (e) If the audit report indicates that any penal law has
15-22 been violated, the executive director shall notify the appropriate
15-23 county or district attorney and the attorney general.
15-24 Sec. 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT RECORDS.
15-25 (a) The executive director shall have access to all vouchers,
15-26 receipts, district fiscal and financial records, and other district
15-27 records the executive director considers necessary.
15-28 (b) All district fiscal records shall be prepared on a
15-29 timely basis and maintained in an orderly manner in accordance with
15-30 generally accepted accounting principles. The fiscal records shall
15-31 be available for public inspection during regular business hours.
15-32 A district's fiscal records may be removed from the district's
15-33 office for the purposes of recording its fiscal affairs and
15-34 preparing an audit, during which time the fiscal records are under
15-35 the control of the district's auditor.
15-36 Sec. 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
15-37 financially dormant district is a district that had:
15-38 (1) $500 or less of receipts from operations, tax
15-39 assessments, loans, contributions, or any other sources during the
15-40 calendar year;
15-41 (2) $500 or less of disbursements of funds during the
15-42 calendar year;
15-43 (3) no bonds or other long-term (more than one year)
15-44 liabilities outstanding during the calendar year; and
15-45 (4) no cash or investments that exceeded $5,000 at any
15-46 time during the calendar year.
15-47 (b) A financially dormant district may elect to submit to
15-48 the executive director a financial dormancy affidavit instead of
15-49 complying with the audit requirements of Section 49.191.
15-50 (c) The annual financial dormancy affidavit shall be
15-51 prepared in a format prescribed by the executive director and shall
15-52 be submitted for filing by a duly authorized representative of the
15-53 district.
15-54 (d) The affidavit must be filed annually on or before
15-55 January 31 with the executive director until such time as the
15-56 district becomes financially active and the board adopts a fiscal
15-57 year; thereafter, the district shall file annual audit reports as
15-58 prescribed by this subchapter.
15-59 (e) A district that becomes financially dormant after having
15-60 been financially active shall be required to file annual financial
15-61 dormancy affidavits on or before January 31, until the district is
15-62 either dissolved or again becomes financially active.
15-63 (f) Districts governed by this section are subject to
15-64 periodic audits by the executive director.
15-65 Sec. 49.198. AUDIT REPORT EXEMPTION. (a) A district that
15-66 is not collecting taxes may elect to file annual financial reports
15-67 with the executive director in lieu of the district's compliance
15-68 with Section 49.191 provided:
15-69 (1) the district had no bonds or other long-term (more
15-70 than one year) liabilities outstanding during the fiscal period;
16-1 (2) the district did not have gross receipts from
16-2 operations, loans, or contributions in excess of $100,000 during
16-3 the fiscal period; and
16-4 (3) the district's cash and temporary investments were
16-5 not in excess of $100,000 at any time during the fiscal period.
16-6 (b) The annual financial report must be accompanied by an
16-7 affidavit attesting to the accuracy and authenticity of the
16-8 financial report signed by a duly authorized representative of the
16-9 district.
16-10 (c) The annual financial report and affidavit in a format
16-11 prescribed by the executive director must be on file with the
16-12 executive director within 45 days after the close of the district's
16-13 fiscal year.
16-14 (d) Districts governed by this section are subject to
16-15 periodic audits by the executive director.
16-16 Sec. 49.199. POLICIES AND AUDITS OF DISTRICTS. (a) Subject
16-17 to the law governing the district, the board shall adopt the
16-18 following in writing:
16-19 (1) a code of ethics for district directors, officers,
16-20 employees, and persons who are engaged in handling investments for
16-21 the district;
16-22 (2) a policy relating to travel expenditures;
16-23 (3) a policy relating to district investments that
16-24 ensures that:
16-25 (A) purchases and sales of investments are
16-26 initiated by authorized individuals, conform to investment
16-27 objectives and regulations, and are properly documented and
16-28 approved; and
16-29 (B) periodic review is made of district
16-30 investments to evaluate investment performance and security;
16-31 (4) policies and procedures for selection, monitoring,
16-32 or review and evaluation of professional services;
16-33 (5) a uniform method of accounting and reporting for
16-34 industrial development bonds and pollution control bonds that
16-35 complies with requirements of the commission; and
16-36 (6) policies that ensure a better use of management
16-37 information including:
16-38 (A) budgets for use in planning and controlling
16-39 cost;
16-40 (B) an audit committee of the board; and
16-41 (C) uniform reporting requirements that use
16-42 "Audits of State and Local Governmental Units" as a guide on audit
16-43 working papers and that use "Governmental Accounting and Financial
16-44 Reporting Standards."
16-45 (b) The state auditor may audit the financial transactions
16-46 of any district if the state auditor determines that the audit is
16-47 necessary.
16-48 Sec. 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
16-49 DISTRICTS. A district that provides wholesale potable water and
16-50 wastewater services shall adopt a program that provides such
16-51 wholesale customers an opportunity to review and comment on the
16-52 district's annual budget that applies to their services before that
16-53 budget is adopted by the board.
16-54 (Sections 49.201 to 49.210 reserved for expansion
16-55 SUBCHAPTER H. POWERS AND DUTIES
16-56 Sec. 49.211. POWERS. (a) A district shall have the
16-57 functions, powers, authority, rights, and duties that will permit
16-58 accomplishment of the purposes for which it was created or the
16-59 purposes authorized by the constitution, this code, or any other
16-60 law.
16-61 (b) A district is authorized to purchase, construct,
16-62 acquire, own, operate, maintain, repair, improve, or extend inside
16-63 and outside its boundaries any and all land, works, improvements,
16-64 facilities, plants, equipment, and appliances necessary to
16-65 accomplish the purposes of its creation or the purposes authorized
16-66 by this code or any other law.
16-67 Sec. 49.212. FEES AND CHARGES. (a) A district may adopt
16-68 and enforce all necessary charges, fees, or rentals, in addition to
16-69 taxes, for providing or making available any district facility or
16-70 service.
17-1 (b) A district may require a deposit for any services or
17-2 facilities furnished and the district may or may not provide that
17-3 the deposit will bear interest.
17-4 (c) Subject to observance of the procedure appropriate to
17-5 the circumstances, a district may discontinue any or all facilities
17-6 or services to prevent an abuse or to enforce payment of an unpaid
17-7 charge, fee, or rental due the district, including taxes that have
17-8 been delinquent for not less than six months.
17-9 (d) Notwithstanding any provision of law to the contrary, a
17-10 district that charges a fee that is an impact fee as described in
17-11 Section 395.001(4), Local Government Code, must comply with Chapter
17-12 395, Local Government Code. A charge or fee by a district for
17-13 construction, installation, or inspection of a tap or connection to
17-14 district water, sanitary sewer, or drainage facilities, including
17-15 all necessary service lines and meters, that (i) does not exceed
17-16 three times the actual and reasonable costs to the district for
17-17 such work or (ii) if made to a nontaxable entity, does not exceed
17-18 the actual costs to the district for such work and for all
17-19 facilities that are necessary to provide district services to such
17-20 entity and that are financed or are to be financed in whole or in
17-21 part by tax-supported bonds of the district, shall not be deemed or
17-22 considered to be an impact fee under Chapter 395, Local Government
17-23 Code.
17-24 Sec. 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A district
17-25 may contract with a person or any public or private entity for the
17-26 joint construction, financing, ownership, and operation of any
17-27 works, improvements, facilities, plants, equipment, and appliances
17-28 necessary to accomplish any purpose or function permitted by a
17-29 district, or a district may purchase an interest in any project
17-30 used for any purpose or function permitted by a district.
17-31 (b) A district may enter into contracts with any person or
17-32 any public or private entity in the performance of any purpose or
17-33 function permitted by a district.
17-34 (c) A district may enter into contracts, which may be of
17-35 unlimited duration, with persons or any public or private entities
17-36 on the terms and conditions the board may consider desirable, fair,
17-37 and advantageous for:
17-38 (1) the purchase or sale of water;
17-39 (2) the collection, transportation, treatment, and
17-40 disposal of its domestic, industrial, and communal wastes or the
17-41 collection, transportation, treatment, and disposal of domestic,
17-42 industrial, and communal wastes of other persons;
17-43 (3) the gathering, diverting, and control of local
17-44 storm water, or other local harmful excesses of water;
17-45 (4) the continuing and orderly development of the land
17-46 and property within the district through the purchase,
17-47 construction, or installation of works, improvements, facilities,
17-48 plants, equipment, and appliances that the district may otherwise
17-49 be empowered and authorized to do or perform so that, to the
17-50 greatest extent reasonably possible, considering sound engineering
17-51 and economic practices, all of the land and property may be placed
17-52 in a position to ultimately receive the services of the works,
17-53 improvements, plants, facilities, equipment, and appliances;
17-54 (5) the maintenance and operation of any works,
17-55 improvements, facilities, plants, equipment, and appliances of the
17-56 district or of another person or public or private entity;
17-57 (6) the collection, treatment, and disposal of
17-58 municipal solid wastes; and
17-59 (7) the exercise of any other rights, powers, and
17-60 duties granted to a district.
17-61 Sec. 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
17-62 provisions of Chapter 171, Local Government Code, shall apply to
17-63 the award of district contracts.
17-64 Sec. 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
17-65 district may purchase, construct, acquire, own, operate, repair,
17-66 improve, or extend all works, improvements, facilities, plants,
17-67 equipment, and appliances necessary to provide any services or
17-68 facilities authorized to be provided by the district to areas
17-69 contiguous to or in the vicinity of the district provided the
17-70 district does not duplicate a service or facility of another public
18-1 entity. A district providing potable water and sewer utility
18-2 services to household users shall not provide services or
18-3 facilities to serve areas outside the district that are also within
18-4 the corporate limits of a city without securing a resolution or
18-5 ordinance of the city granting consent for the district to serve
18-6 the area within the city.
18-7 (b) To secure money for this purpose, a district is
18-8 authorized to issue and sell negotiable bonds and notes payable
18-9 from the levy and collection of ad valorem taxes on all taxable
18-10 property within the district or from all or any designated part of
18-11 the revenues received from the operation of the district's works,
18-12 improvements, facilities, plants, equipment, and appliances or from
18-13 a combination of taxes and revenues.
18-14 (c) Any bonds and notes may be issued upon the terms and
18-15 conditions set forth in this code.
18-16 (d) A district shall not be required to hold a certificate
18-17 of convenience and necessity as a precondition for providing retail
18-18 water or sewer service to any customer or service area,
18-19 notwithstanding the fact that such customer or service area may be
18-20 located either within or outside the boundaries of the district or
18-21 has previously received water or sewer service from an entity
18-22 required by law to hold a certificate of convenience and necessity
18-23 as a precondition for such service. This subsection does not
18-24 authorize a district to provide services within an area for which a
18-25 retail public utility holds a certificate of convenience and
18-26 necessity or within the boundaries of another district without that
18-27 district's consent, unless the district has a valid certificate of
18-28 convenience and necessity to provide services to that area.
18-29 (e) A district is authorized to establish, maintain, revise,
18-30 charge, and collect the rates, fees, rentals, tolls, or other
18-31 charges for the use, services, and facilities that provide service
18-32 to areas outside the district that are considered necessary and may
18-33 be higher than those charged for comparable service to users within
18-34 the district.
18-35 (f) The rates, fees, rentals, tolls, or other charges shall
18-36 be at least sufficient to meet the expense of operating and
18-37 maintaining the services and facilities for a water and sanitary
18-38 sewer system serving areas outside the district and to pay the
18-39 principal of and interest and redemption price on bonds issued to
18-40 purchase, construct, acquire, own, operate, repair, improve, or
18-41 extend the services or facilities.
18-42 Sec. 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A district
18-43 may contract for or employ its own peace officers with power to
18-44 make arrests when necessary to prevent or abate the commission of:
18-45 (1) any offense against the rules of the district when
18-46 the offense or threatened offense occurs on any land, water, or
18-47 easement owned or controlled by the district;
18-48 (2) any offense involving injury or detriment to any
18-49 property owned or controlled by the district; and
18-50 (3) any offense against the laws of the state.
18-51 (b) A district may appoint reserve peace officers who may be
18-52 called to serve as peace officers by the district during the actual
18-53 discharge of their official duties.
18-54 (c) A reserve peace officer serves at the discretion of the
18-55 district and may be called into service if the district considers
18-56 it necessary to have additional officers to preserve the peace in
18-57 or enforce the law of the district.
18-58 (d) A reserve peace officer on active duty and actively
18-59 engaged in assigned duties has the same rights, privileges, and
18-60 duties as any other peace officer of the district.
18-61 (e) Any peace officer, before beginning to perform any
18-62 duties and at the time of appointment, must take an oath and
18-63 execute a bond conditioned on faithful performance of such
18-64 officer's duties in the amount of $1,000 payable to the district.
18-65 The oath and the bond shall be filed in the district office.
18-66 Sec. 49.217. OPERATION OF CERTAIN MOTOR VEHICLES ON OR NEAR
18-67 PUBLIC FACILITIES. (a) In this section, "motor vehicle" means a
18-68 self-propelled device in, upon, or by which a person or property is
18-69 or may be transported or drawn on a road or highway.
18-70 (b) Except as provided in Subsections (c) and (d), a person
19-1 may not operate a motor vehicle on a levee, in a drainage ditch, or
19-2 on land adjacent to a levee, canal, ditch, exposed conduit,
19-3 pipeline, pumping plant, storm water facility, or other facility
19-4 for the transmission, storage, treatment, or distribution of water,
19-5 sewage, or storm water owned or controlled by a district.
19-6 (c) A district may authorize the use of motor vehicles on
19-7 land that it owns or controls by posting signs on the property.
19-8 (d) This section does not prohibit a person from:
19-9 (1) driving on a public road or highway; or
19-10 (2) operating a motor vehicle used for repair or
19-11 maintenance of public water, sewer, or storm water facilities.
19-12 (e) A person who operates a motor vehicle in violation of
19-13 Subsection (b) commits an offense. An offense under this section
19-14 is a Class C misdemeanor, except that if a person has been
19-15 convicted of an offense under this section, a subsequent offense is
19-16 a Class B misdemeanor.
19-17 Sec. 49.218. Acquisition of Property. (a) A district or a
19-18 water supply corporation may acquire land, materials, waste
19-19 grounds, easements, rights-of-way, equipment, contract or permit
19-20 rights or interests, and other property, real or personal,
19-21 considered necessary for the purpose of accomplishing any one or
19-22 more of the district's or water supply corporation's purposes
19-23 provided in this code or in any other law.
19-24 (b) A district or water supply corporation shall have the
19-25 right to acquire property by gift, grant, or purchase, and the
19-26 right to acquire property shall include property considered
19-27 necessary for the construction, improvement, extension,
19-28 enlargement, operation, or maintenance of the plants, works,
19-29 improvements, facilities, equipment, or appliances of a district or
19-30 a water supply corporation.
19-31 (c) A district or water supply corporation may acquire
19-32 either the fee simple title to or an easement on all land, both
19-33 public and private, either inside or outside its boundaries and may
19-34 acquire the title to or an easement on property other than land
19-35 held in fee.
19-36 (d) A district or water supply corporation may also lease
19-37 property from others for its use on such terms and conditions as
19-38 the board of the district or the board of directors of the water
19-39 supply corporation may determine to be advantageous.
19-40 Sec. 49.219. ACQUISITION OF EXISTING FACILITIES. Any
19-41 district may acquire by agreement all or any part of existing
19-42 water, sanitary sewer, or drainage systems of any water supply
19-43 corporation, including works, improvements, facilities, plants,
19-44 equipment, appliances, contract rights, and other assets and rights
19-45 that are completed, partially completed, or under construction, and
19-46 in connection therewith a district may assume all or any part of
19-47 the contracts, indebtedness, or obligations of the corporation
19-48 related to said systems, including any contracts, indebtedness, or
19-49 obligations related to or payable from the revenues of said
19-50 systems, and may perform all or any part of the obligations of said
19-51 corporation in the same manner and to the same extent that any
19-52 other purchaser or assignee could be bound on any such contracts,
19-53 indebtedness, or obligations. Before assuming any indebtedness or
19-54 obligations of such corporation related to any such system, a
19-55 district other than a special water authority shall obtain the
19-56 approval of the commission of such assumption.
19-57 Sec. 49.220. Right to Use Existing RightS-of-Way. All
19-58 districts or water supply corporations are given rights-of-way
19-59 within, along, under, and across all public, state, county, city,
19-60 town, or village roads, highways, and rights-of-way and other
19-61 public rights-of-way without the requirement for surety bond or
19-62 security.
19-63 Sec. 49.221. Right to Enter Land. (a) The directors,
19-64 engineers, attorneys, agents, operators, and employees of a
19-65 district or water supply corporation may go on any land to inspect,
19-66 make surveys, or perform tests to determine the condition, value,
19-67 and usability of the property, with reference to the proposed
19-68 location of works, improvements, plants, facilities, equipment, or
19-69 appliances. The cost of restoration shall be borne by the district
19-70 or the water supply corporation.
20-1 (b) District employees and agents are entitled to enter any
20-2 public or private property within the boundaries of the district or
20-3 adjacent to any reservoir or other property owned by the district
20-4 at any reasonable time for the purpose of inspecting and
20-5 investigating conditions relating to the quality of water in the
20-6 state or the compliance with any rule, regulation, permit, or other
20-7 order of the district. District employees or agents acting under
20-8 this authority who enter private property shall observe the
20-9 establishment's rules and regulations concerning safety, internal
20-10 security, and fire protection and shall notify any occupant or
20-11 management of their presence and shall exhibit proper credentials.
20-12 Sec. 49.222. Eminent Domain. (a) A district or water
20-13 supply corporation may acquire by condemnation any land, easements,
20-14 or other property inside or outside the district boundaries or the
20-15 boundaries of the certificated service area for a water supply
20-16 corporation, necessary for water, sanitary sewer, storm drainage,
20-17 or flood drainage or control purposes or for any other of its
20-18 projects or purposes, and may elect to condemn either the fee
20-19 simple title or a lesser property interest.
20-20 (b) The right of eminent domain shall be exercised in the
20-21 manner provided in Chapter 21, Property Code, except that a
20-22 district or a water supply corporation shall not be required to
20-23 give bond for appeal or bond for costs in any condemnation suit or
20-24 other suit to which it is a party and shall not be required to
20-25 deposit more than the amount of any award in any suit.
20-26 (c) The power of eminent domain may not be used for the
20-27 condemnation of land for the purpose of acquiring rights to
20-28 underground water or of water or water rights.
20-29 Sec. 49.223. Costs of Relocation of Property. (a) In the
20-30 event that the district or the water supply corporation, in the
20-31 exercise of the power of eminent domain or power of relocation or
20-32 any other power makes necessary the relocation, raising, lowering,
20-33 rerouting, or change in grade of or alteration in construction of
20-34 any road, bridge, highway, railroad, electric transmission line,
20-35 telegraph, or telephone properties, facilities, or pipelines, all
20-36 necessary relocations, raising, lowering, rerouting, or change in
20-37 grade or alteration of construction shall be done at the sole
20-38 expense of the district or the water supply corporation unless
20-39 otherwise agreed to in writing. Such relocation shall be
20-40 accomplished in a timely manner so that the project of the district
20-41 or the water supply corporation is not delayed.
20-42 (b) "Sole expense" means the actual cost of the relocation,
20-43 raising, lowering, rerouting, or change in grade or alteration of
20-44 construction and providing comparable replacement without enhancing
20-45 the facilities after deducting from it the net salvage value
20-46 derived from the old facility.
20-47 Sec. 49.224. POWER TO CONDEMN CEMETERIES. (a) The use of
20-48 land for the construction of district dams and creation of lakes
20-49 and reservoirs for the purpose of conservation and development of
20-50 the natural resources of this state is hereby declared to be
20-51 superior to all other uses, and for these purposes only a district
20-52 has the power of eminent domain to acquire land, improvements, and
20-53 other property owned and held for cemeteries or burial places
20-54 necessary for the construction of a dam or that lies inside the
20-55 area to be covered by the lake or reservoir or within 300 feet of
20-56 the high water line of the lake or reservoir.
20-57 (b) Except as otherwise provided by this subchapter, the
20-58 procedure in condemnation proceedings is governed by Chapter 21,
20-59 Property Code.
20-60 (c) Notice shall be served on the title owner of the land on
20-61 which the cemetery is situated as provided in Chapter 21, Property
20-62 Code. General notice to persons having relatives interred in the
20-63 cemetery shall be given by publication for two consecutive weeks in
20-64 a newspaper circulated in the county in which the cemetery is
20-65 situated.
20-66 (d) The measure of damages in these eminent domain
20-67 proceedings shall be assessed as in other condemnation cases. An
20-68 additional amount of damages shall be assessed to cover the cost of
20-69 removing and reinterring the bodies interred in the cemetery or
20-70 burial place and the cost of removing and resetting the monuments
21-1 or markers erected at the graves.
21-2 (e) The additional assessment shall be deposited in the
21-3 registry of the county court and disbursed only for the purpose of
21-4 removing and reinterring the bodies in other cemeteries in Texas
21-5 agreed on between the district and the relatives of the deceased
21-6 persons.
21-7 (f) If in any case the district and the relatives of a
21-8 deceased person cannot agree within 30 days on a cemetery for
21-9 reinterment, or no relatives appear within that time, then the
21-10 county judge shall designate the cemetery for reinterment.
21-11 (g) Instead of depositing the additional assessment in the
21-12 registry of the court, the district may execute a bond sufficient
21-13 to cover costs of removing and reinterring the bodies. The bond
21-14 shall be payable to and approved by the county judge and
21-15 conditioned that the bodies will be removed and reinterred as
21-16 provided by this section.
21-17 Sec. 49.225. Leases. A district may lease any of its
21-18 property, real or personal, to any person. The lease may contain
21-19 the terms and provisions that the board determines to be
21-20 advantageous to the district.
21-21 Sec. 49.226. Sale or Exchange of Surplus Land or Personal
21-22 Property. (a) Any land, interest in land, or personal property
21-23 owned by the district which is found by the board to be surplus and
21-24 is not needed by the district may be sold under order of the board
21-25 either by public or private sale, or the land, interest in land, or
21-26 personal property may be exchanged for other land, interest in
21-27 land, or personal property needed by the district. Except as
21-28 provided in Subsection (b), land, interest in land, or personal
21-29 property must be exchanged for like fair market value, which value
21-30 may be determined by the district.
21-31 (b) Any property dedicated to or acquired by the district
21-32 without expending district funds may be abandoned or released to
21-33 the original grantor, the grantor's heirs, assigns, executors, or
21-34 successors upon terms and conditions deemed necessary or
21-35 advantageous to the district and without receiving compensation for
21-36 such abandonment or release. District property may also be
21-37 abandoned, released, exchanged, or transferred to another district,
21-38 municipality, county, countywide agency, or authority upon terms
21-39 and conditions deemed necessary or advantageous to the district.
21-40 Narrow strips of property resulting from boundary or surveying
21-41 conflicts or similar causes, or from insubstantial encroachments by
21-42 abutting property owners, may be abandoned, released, exchanged, or
21-43 transferred to such abutting owners upon terms and conditions
21-44 deemed necessary or advantageous to the district. Chapter 272,
21-45 Local Government Code, shall not apply to this subsection.
21-46 (c) Before either a public or a private sale of real
21-47 property not required by the district, the district shall give
21-48 notice of the intent to sell by publishing notice once a week for
21-49 two consecutive weeks in one or more newspapers with general
21-50 circulation in the district.
21-51 (d) If the district has outstanding bonds secured by a
21-52 pledge of tax revenues, the proceeds of the sale of property not
21-53 required by the district shall be applied to retire outstanding
21-54 bonds of the district when required by the district's applicable
21-55 bond resolutions.
21-56 (e) If the district does not have any outstanding bonds, the
21-57 proceeds derived from the sale of the personal property or land not
21-58 required by the district may be used for any lawful purpose.
21-59 Sec. 49.227. Authority to Act Jointly. A district or water
21-60 supply corporation may act jointly with any other person or entity,
21-61 private or public, whether within the State of Texas or the United
21-62 States, in the performance of any of the powers and duties
21-63 permitted by this code or any other laws.
21-64 Sec. 49.228. Damage to Property. A person who wilfully
21-65 destroys, defaces, damages, or interferes with district or water
21-66 supply corporation property is guilty of a Class B misdemeanor.
21-67 Sec. 49.229. Grants and Gifts. A district may accept
21-68 grants, gratuities, advances, and loans in any form from any source
21-69 approved by the board, including any governmental entity, any
21-70 private or public corporation, and any other person and may make
22-1 and enter into contracts, agreements, and covenants the board
22-2 considers appropriate in connection with acceptance of grants,
22-3 gratuities, advances, and loans.
22-4 Sec. 49.230. Area-Wide Wastewater Treatment. The powers and
22-5 duties conferred on the district are granted subject to the policy
22-6 of the state to encourage the development and use of integrated
22-7 area-wide wastewater collection, treatment, and disposal systems to
22-8 serve the wastewater disposal needs of the citizens of the state
22-9 whenever economically feasible and competitive to do so, it being
22-10 an objective of the policy to avoid the economic burden to the
22-11 people and the impact on the quality of the water in the state that
22-12 result from the construction and operation of numerous small
22-13 wastewater collection, treatment, and disposal facilities to serve
22-14 an area when an integrated area-wide wastewater collection,
22-15 treatment, and disposal system for the area can be reasonably
22-16 provided.
22-17 Sec. 49.231. STANDBY FEES. (a) In this section:
22-18 (1) "Standby fee" means a charge, other than a tax,
22-19 imposed on undeveloped property for the availability of potable
22-20 water, sanitary sewer, or drainage facilities and services.
22-21 (2) "Undeveloped property" means a tract, lot, or
22-22 reserve in the district to which no potable water, sanitary sewer,
22-23 or drainage connections have been made for which:
22-24 (A) water, sanitary sewer, or drainage
22-25 facilities and services are available;
22-26 (B) water supply, wastewater treatment plant
22-27 capacity, or drainage capacity sufficient to serve the property is
22-28 available; or
22-29 (C) major water supply lines, wastewater
22-30 collection lines, or drainage facilities with capacity sufficient
22-31 to serve the property are available.
22-32 (b) A district that proposes to provide or actually provides
22-33 retail potable water or sewer utility services, or drainage
22-34 services as the principal function of the district, may, with the
22-35 approval of the commission, adopt and impose on the owners of
22-36 undeveloped property in the district a standby fee in addition to
22-37 taxes levied by the district. A district may not impose a standby
22-38 fee for debt service purposes on undeveloped property unless the
22-39 facilities and services available to the property have been
22-40 financed by the district; however, a district may impose a standby
22-41 fee for operating and maintaining facilities that it has not
22-42 financed. The district may impose standby fees in different
22-43 amounts to fairly reflect the level and type of services and
22-44 facilities available to serve different property. The intent of
22-45 the standby fee is to distribute a fair portion of the cost burden
22-46 for operating and maintaining the facilities and for financing
22-47 capital costs of the facilities to owners of property who have not
22-48 constructed improvements but have potable water, sewer, or drainage
22-49 capacity available. Any revenues collected from the standby fees
22-50 shall be used to pay operation and maintenance expenses, to pay
22-51 debt service on the bonds, or both.
22-52 (c) If a district described in Subsection (b) desires to
22-53 adopt and impose a standby fee, the district shall submit to the
22-54 commission an application for authority to adopt and impose the
22-55 standby fee. The application must describe the tracts of
22-56 undeveloped property in the district and state the amount of the
22-57 proposed fee.
22-58 (d) The executive director shall examine an application
22-59 submitted under Subsection (c) and shall investigate the financial
22-60 condition of the district, including the district's assets,
22-61 liabilities, sources of revenue, level of utility service rates,
22-62 and level of debt service and maintenance tax rates. On the
22-63 request of the executive director, the district shall submit any
22-64 information the executive director considers relevant to the
22-65 examination and investigation. The executive director shall
22-66 prepare a written report on the application and the district's
22-67 financial condition, retain a copy of the report, and send a copy
22-68 of the report to the commission and the district.
22-69 (e) The commission shall hold a hearing on an application
22-70 submitted under Subsection (c). Notice of the hearing shall be
23-1 published in a newspaper of general circulation in the county or
23-2 counties in which the district is located once a week for two
23-3 consecutive weeks. The first publication must occur not later than
23-4 the 30th day before the date of the hearing. The district shall
23-5 send, not later than the 30th day before the date of the hearing,
23-6 notice of the hearing by certified mail, return receipt requested,
23-7 to each owner of undeveloped property in the district. On the date
23-8 the application is filed, the district's tax assessor and collector
23-9 shall certify to the district the names of the persons owning
23-10 undeveloped land in the district as reflected by the most recent
23-11 certified tax roll of the district. Notice of the hearing must be
23-12 sent by certified mail, return receipt requested, to each mortgagee
23-13 of record that has submitted a written request to be informed of
23-14 any hearings. To be effective, the written request must be
23-15 received by the district not later than the 60th day before the
23-16 date of the hearing. The written request for notice must include
23-17 the name and address of the mortgagee, the name of the property
23-18 owner in the district, and a brief property description.
23-19 (f) The commission shall consider the application, the
23-20 report of the executive director, and any other evidence allowed by
23-21 commission rule. The commission may approve the application only
23-22 if the commission finds that the fee is necessary to maintain the
23-23 financial integrity and stability of the district and fairly
23-24 allocates the costs of district facilities and services among
23-25 property owners of the district.
23-26 (g) After a hearing on an application under Subsection (e),
23-27 the commission shall issue an order approving or disapproving the
23-28 application. The commission shall retain a copy of the order and
23-29 send a copy of the order to the district.
23-30 (h) The commission may approve the adoption and imposition
23-31 of the standby fee for a period of not more than three years. The
23-32 imposition of a standby fee may be renewed for additional periods
23-33 of not more than three years each in the same manner provided in
23-34 this section for initial approval of the standby fee.
23-35 (i) If approved by the commission, the board by resolution
23-36 or order may impose an annual standby fee on undeveloped land in
23-37 the district.
23-38 (j) The board may:
23-39 (1) charge interest, at the rate of one percent a
23-40 month, on a standby fee not paid in a timely manner in accordance
23-41 with the resolution or order imposing the standby fee; and
23-42 (2) refuse to provide potable water, sanitary sewer,
23-43 or drainage service to the property for which the fee was assessed
23-44 until all delinquent standby fees on the property and interest on
23-45 those fees are fully paid.
23-46 (k) A standby fee imposed under this section is a personal
23-47 obligation of the person owning the undeveloped property on January
23-48 1 of the year for which the fee is assessed. A person is not
23-49 relieved of the obligation on transfer of title to the property.
23-50 On January 1 of each year, a lien attaches to undeveloped property
23-51 to secure payment of any standby fee imposed under this section and
23-52 the interest, if any, on the fee. The lien has the same priority
23-53 as a lien for taxes of the district.
23-54 (l) If a standby fee imposed under this section is not paid
23-55 in a timely manner, a district may file suit to foreclose the lien
23-56 securing payment of the fee and interest or to enforce the personal
23-57 obligation for the fee and interest, or both. The district may
23-58 recover, in addition to the fee and interest, reasonable costs,
23-59 including attorney's fees, incurred by the district in enforcing
23-60 the lien or obligation not to exceed 20 percent of the delinquent
23-61 fee and interest. A suit authorized by this subsection must be
23-62 filed not later than the fourth anniversary of the date the fee
23-63 became due. A fee delinquent for more than four years and interest
23-64 on the fee are considered paid unless a suit is filed before the
23-65 expiration of the four-year period.
23-66 (m) Chapter 395, Local Government Code, does not apply to a
23-67 standby fee imposed under this section.
23-68 (n) For purposes of title insurance policies issued under
23-69 the authority of Chapter 9, Insurance Code, standby fees are
23-70 considered taxes.
24-1 Sec. 49.232. LABORATORY SERVICES. A district may contract
24-2 with any person, within or without the boundaries of the district,
24-3 to provide or receive laboratory services related to environmental,
24-4 health, or drinking water testing.
24-5 (Sections 49.233 to 49.270 reserved for expansion
24-6 SUBCHAPTER I. CONSTRUCTION CONTRACTS
24-7 Sec. 49.271. CONTRACTS FOR CONSTRUCTION WORK. (a) Any
24-8 contract made by the board for construction work shall conform to
24-9 the provisions of this chapter.
24-10 (b) The contract shall contain, incorporate by reference, or
24-11 have attached to it the specifications, plans, and details for work
24-12 included in the contract. All work shall be done in accordance
24-13 with these plans and specifications and any authorized change
24-14 orders under the supervision of the board or its designee.
24-15 (c) The district may adopt minimum criteria for the
24-16 qualifications of bidders on its construction contracts and for
24-17 sureties issuing payment and performance bonds. For contracts over
24-18 $25,000, the district shall require a person who bids to submit a
24-19 certified or cashier's check on a responsible bank in the state
24-20 equal to at least two percent of the total amount of the bid, or a
24-21 bid bond of at least two percent of the total amount of the bid
24-22 issued by a surety legally authorized to do business in this state,
24-23 as a good faith deposit to ensure execution of the contract. If
24-24 the successful bidder fails or refuses to enter into a proper
24-25 contract with the district, or fails or refuses to furnish the bond
24-26 required by law, the bidder forfeits the deposit.
24-27 (d) The district may also require attendance by a principal
24-28 of each prospective bidder at mandatory pre-bid conferences and may
24-29 make any reasonable additional requirements regarding the taking of
24-30 bids the district may deem appropriate in order to obtain
24-31 competitive bids from responsible contractors and to minimize
24-32 contract disputes.
24-33 Sec. 49.272. REPORTS FURNISHED TO PROSPECTIVE BIDDERS. The
24-34 board shall furnish to any person who desires to bid on
24-35 construction work, and who makes a request in writing, a copy of
24-36 the engineer's report or plans and specifications showing the
24-37 details of the work to be done. The board may charge for each copy
24-38 of the engineer's report or plans and specifications an amount
24-39 sufficient to cover the cost of making the copy.
24-40 Sec. 49.273. CONSTRUCTION CONTRACT AWARD. (a) The board
24-41 shall contract for construction in accordance with this section.
24-42 The bidding documents, plans, specifications, and other data needed
24-43 to bid on the project must be available at the time of the first
24-44 advertisement and the advertisement shall state the location at
24-45 which these documents may be reviewed.
24-46 (b) A construction contract may cover all the work to be
24-47 provided by the district or the various elements of the work may be
24-48 segregated for the purpose of receiving bids and awarding
24-49 contracts. A contract may provide that the work will be
24-50 constructed in stages over a period of years.
24-51 (c) A construction contract may provide for the payment of a
24-52 total sum that is the completed cost of the work or may be based on
24-53 bids to cover cost of units of the various elements entering into
24-54 the work as estimated and approximately specified by the district's
24-55 engineers, or a contract may be let and awarded in any other form
24-56 or composite of forms and to any responsible person or persons
24-57 that, in the board's judgment, will be most advantageous to the
24-58 district and result in the best and most economical completion of
24-59 the district's proposed plants, improvements, facilities, works,
24-60 equipment, and appliances.
24-61 (d) For construction contracts for $25,000 or more, the
24-62 board shall advertise the letting of the contract, including the
24-63 general conditions, time, and place of opening of sealed bids. The
24-64 notice shall be published in one or more newspapers circulated in
24-65 each county in which part of the district is located. If one
24-66 newspaper meets both of these requirements, publication in such
24-67 newspaper is sufficient. If there are more than four counties in
24-68 the district, notice may be published in any newspaper with general
24-69 circulation in the district. The notice shall be published once a
24-70 week for three consecutive weeks before the date that the bids are
25-1 opened, and the first publication shall be not later than the 21st
25-2 day before the date of the opening of the sealed bids.
25-3 (e) For construction contracts for $15,000 or more but less
25-4 than $25,000, the board shall solicit written competitive bids on
25-5 uniform written specifications from at least three bidders.
25-6 (f) For construction contracts of less than $15,000, the
25-7 board is not required to advertise or seek competitive bids.
25-8 (g) The board may not subdivide work to avoid the
25-9 advertising requirements specified in this section.
25-10 (h) The board may not accept bids that include substituted
25-11 items unless the substituted items were included in the original
25-12 bid proposal and all bidders had the opportunity to bid on the
25-13 substituted items or unless notice is given to all bidders at a
25-14 mandatory pre-bid conference.
25-15 (i) Change orders to contracts may be issued only as a
25-16 result of unanticipated conditions encountered during construction
25-17 or changes in regulatory criteria or to facilitate project
25-18 coordination with other political entities.
25-19 (j) The provisions of this subchapter do not apply to
25-20 contracts for personal or professional services or for a utility
25-21 service operator or to contracts made by a district engaged in the
25-22 distribution and sale of electric energy to the public.
25-23 (k) The provisions of this subchapter do not apply to high
25-24 technology procurements. The provisions of Sections 252.021(a) and
25-25 252.042, Local Government Code, shall apply to high technology
25-26 procurements.
25-27 Sec. 49.274. EMERGENCY APPROVAL OF DISTRICT PROJECTS. If a
25-28 district experiences an emergency condition that may create a
25-29 serious health hazard or unreasonable economic loss to the district
25-30 that requires immediate corrective action, the district may
25-31 negotiate limited duration contracts to make the necessary repairs.
25-32 The district shall submit to the executive director details
25-33 describing the specific serious health hazard or unreasonable
25-34 economic loss as soon as practicable following the issuance of the
25-35 contracts. Whenever possible, the district should obtain prior
25-36 approval of the executive director before authorizing the contract,
25-37 but failure to obtain prior approval shall not void the contract.
25-38 This section does not apply to special water authorities.
25-39 Sec. 49.275. CONTRACTOR'S BOND. Any person, firm,
25-40 partnership, or corporation to whom a contract is let must give
25-41 good and sufficient performance and payment bonds in accordance
25-42 with Chapter 2253, Government Code, and any minimum criteria for
25-43 sureties issuing such bonds adopted by a district in accordance
25-44 with Section 49.271.
25-45 Sec. 49.276. PAYMENT FOR CONSTRUCTION WORK. (a) The
25-46 district shall pay the contract price of construction contracts
25-47 only as provided in this section.
25-48 (b) The district will make progress payments under
25-49 construction contracts monthly as the work proceeds, or at more
25-50 frequent intervals as determined by the board or its designee, on
25-51 estimates approved by the board or its designee.
25-52 (c) If requested by the district or district engineer, the
25-53 contractor shall furnish a breakdown of the total contract price
25-54 showing the amount included for each principal category of the
25-55 work, in such detail as requested, to provide a basis for
25-56 determining progress payments. In the preparation of estimates,
25-57 the district engineer may authorize material delivered on the site
25-58 and preparatory work done to be considered if the consideration is
25-59 specifically authorized by the contract and if the contractor
25-60 furnishes satisfactory evidence that he has acquired title to the
25-61 material and that it will be utilized on the work covered by the
25-62 contract.
25-63 (d) In making progress payments, 10 percent of the estimated
25-64 amount shall be retained until final completion and acceptance of
25-65 the contract work. However, if the board at any time after 50
25-66 percent of the work has been completed finds that satisfactory
25-67 progress is being made, it may authorize any of the remaining
25-68 progress payments to be made in full. Also, if the work is
25-69 substantially complete, the board, if it finds the amount retained
25-70 to be in excess of the amount adequate for the protection of the
26-1 district, at its discretion may release to the contractor all or a
26-2 portion of the excess amount. The district is not obligated to pay
26-3 interest on amounts retained except as provided herein. The
26-4 district shall not be obligated to pay any interest on the 10
26-5 percent retainage held on the first 50 percent of work completed.
26-6 If the district holds any retainage on the remaining 50 percent of
26-7 the work completed, the district shall pay interest on such
26-8 retainage from the date the retainage is withheld to the date of
26-9 payment to the contractor. The interest rate to be paid on such
26-10 retainage shall be the rate of interest paid by the district's
26-11 depository bank on interest bearing accounts of similar amounts
26-12 during the period of time interest accrues as provided herein.
26-13 (e) On completion and acceptance of each separate project,
26-14 public work, or other division of the contract, on which the price
26-15 is stated separately in the contract, payment may be made without
26-16 retention of a percentage.
26-17 Sec. 49.277. INSPECTION OF AND REPORTS ON CONSTRUCTION WORK.
26-18 (a) The board shall have control of construction work being done
26-19 for the district under contract to determine whether or not the
26-20 contract is being fulfilled and shall have the construction work
26-21 inspected by the district engineer or other designated person.
26-22 (b) During the progress of the construction work, the
26-23 district engineer or other designated person shall submit to the
26-24 board detailed written reports showing whether or not the
26-25 contractor is complying with the contract, and when the work is
26-26 completed the district engineer shall submit to the board a final
26-27 detailed report including as-built plans of the facilities showing
26-28 whether or not the contractor has fully complied with the contract.
26-29 (Sections 49.278 to 49.300 reserved for expansion
26-30 SUBCHAPTER J. ANNEXATION OR EXCLUSION OF LAND
26-31 Sec. 49.301. ADDING LAND BY PETITION OF LANDOWNER. (a) In
26-32 addition to any other provision provided by law, the owner or
26-33 owners of land whether or not contiguous to the district or
26-34 otherwise may file with the board a petition requesting that there
26-35 be included in the district the land described in the petition by
26-36 metes and bounds or by lot and block number if there is a recorded
26-37 plat of the area to be included in the district. The petition may
26-38 request the district to condition the annexation on certain
26-39 conditions, including the voter authorization of bonds to serve the
26-40 area to be annexed.
26-41 (b) If the district has bonds, notes, or other obligations
26-42 outstanding or bonds payable in whole or in part from taxes that
26-43 have been voted but are unissued, the board may require the
26-44 petitioner or petitioners to assume their share of the outstanding
26-45 bonds, notes, or other obligations and the voted but unissued tax
26-46 bonds of the district and authorize the board to levy a tax on
26-47 their property in each year while any of the bonds, notes, or other
26-48 obligations payable in whole or in part from taxation are
26-49 outstanding to pay their share of the indebtedness.
26-50 (c) The petition of the landowner to add land to the
26-51 district shall be signed and executed in the manner provided by law
26-52 for the conveyance of real estate.
26-53 (d) The board shall hear and consider the petition and may
26-54 add to the district the land described in the petition if it is
26-55 feasible, practicable, and to the advantage of the district and if
26-56 the district's system and other improvements of the district are
26-57 sufficient or will be sufficient to supply the added land without
26-58 injuring land already in the district.
26-59 (e) If the district has bonds payable in whole or in part
26-60 from taxation that are voted but unissued at the time of an
26-61 annexation and the petitioners assume the bonds and authorize the
26-62 district to levy a tax on their property to pay the bonds, then the
26-63 board may issue the voted but unissued bonds even though the
26-64 boundaries of the district have been altered since the
26-65 authorization of the bonds.
26-66 (f) Granted petitions shall be filed for record and shall be
26-67 recorded in the office of the county clerk of the county or
26-68 counties in which the added land is located.
26-69 Sec. 49.302. ADDING LAND BY PETITION OF LESS THAN ALL THE
26-70 LANDOWNERS. (a) In addition to the method of adding land to a
27-1 district described in Section 49.301, defined areas of land,
27-2 whether or not they are contiguous to the district, may be annexed
27-3 to the district in the manner set forth in this section.
27-4 (b) A petition requesting the annexation of a defined area
27-5 signed by a majority in value of the owners of land in the defined
27-6 area, as shown by the tax rolls of the county or counties in which
27-7 such area is located, or signed by 50 landowners if the number of
27-8 landowners is more than 50, shall describe the land by metes and
27-9 bounds or by lot and block number if there is a recorded plat of
27-10 the area and shall be filed with the secretary of the board.
27-11 (c) It shall be the duty of the board to pass an order
27-12 fixing a time and place at which the petition for annexation shall
27-13 be heard that shall not be less than 30 days from the day of the
27-14 order calling the hearing.
27-15 (d) The secretary of the board shall issue a notice setting
27-16 forth the time and place of the hearing and describing the area
27-17 proposed to be annexed. Notice of the hearing shall be given by
27-18 posting copies of the notice in three public places in the district
27-19 and in one public place in the area proposed to be annexed for at
27-20 least 14 days before the day of the hearing and by publishing a
27-21 copy of the notice in a newspaper of general circulation in the
27-22 county or counties in which the area proposed to be annexed is
27-23 located one time at least 14 days before the day of the hearing.
27-24 (e) If upon the hearing of the petition it is found by the
27-25 board that the proposed annexation of the area to the district is
27-26 feasible, practicable, and to the advantage of the district and if
27-27 the district's system and other improvements of the district are
27-28 sufficient or will be sufficient to supply the added land without
27-29 injuring land already in the district, then the board, by order
27-30 entered in its minutes, may receive the proposed area as an
27-31 addition to and to become a part of the district. The order adding
27-32 the proposed territory to the district need not include all of the
27-33 land described in the petition if at the hearing a modification or
27-34 change is found necessary or desirable by the board.
27-35 (f) A copy of the order annexing land to the district,
27-36 signed by a majority of the members of the board and attested by
27-37 the secretary of the board, shall be filed and recorded in the deed
27-38 records of the county or counties in which the district is located
27-39 if the land is finally annexed to the district.
27-40 (g) After the order is recorded the area shall be a
27-41 component part of the district.
27-42 (h) The annexed area shall bear its pro rata share of all
27-43 bonds, notes, or other obligations or taxes that may be owed,
27-44 contracted, or authorized by the district to which it has been
27-45 added.
27-46 (i) Before the added area shall be subject to all or any
27-47 part of the bonds, notes, obligations, or taxes created before the
27-48 annexation of the area to the district, the board shall order an
27-49 election to be held in the district, as enlarged by reason of the
27-50 annexation of the area, on the question of the assumption of the
27-51 bonds, notes, obligations, and taxes by the annexed area.
27-52 (j) At the same election, the board may also submit a
27-53 proposition on the question of whether the annexed area should
27-54 assume its part of the bonds of the district payable in whole or in
27-55 part from taxes that have been voted previously but not yet issued
27-56 or sold and the levy of an ad valorem tax on all taxable property
27-57 within the area annexed along with a tax on the rest of the
27-58 district for the payment of the bonds.
27-59 (k) If the election results favorably, the district shall be
27-60 authorized to issue its voted but unissued tax bonds even though
27-61 the boundaries of the district have been changed since the original
27-62 election approving the bonds.
27-63 (l) At the election called for the purpose of determining
27-64 whether the annexed area shall assume the bonds, notes, or other
27-65 obligations or taxes of the district, the board in a separate
27-66 proposition may also submit the question of whether the board
27-67 should be authorized to issue bonds payable in whole or in part
27-68 from taxes to provide service to the area annexed.
27-69 (m) In the event that the district has bonds, notes, or
27-70 obligations or taxes that may be owed, contracted, or authorized at
28-1 the time an area is annexed or if the district has voted but
28-2 unissued bonds payable in whole or in part from taxes at the time
28-3 of an annexation, the board may provide in its order annexing an
28-4 area to the district that the annexation will not be complete or
28-5 final unless the indebtedness, tax or bond, note, or other
28-6 obligation assumption election results favorably to the assumption
28-7 of the district's outstanding bonds, notes, or other obligations
28-8 and voted but unissued bonds.
28-9 (n) If the board elects to submit the question of whether
28-10 the board should be authorized to issue bonds to provide service to
28-11 the area annexed, the board may also provide in its order annexing
28-12 an area to the district that the annexation will not be complete
28-13 unless the election results favorably to the issuance of bonds to
28-14 serve the annexed area.
28-15 (o) Whenever an election is ordered to be held in the
28-16 district for the purpose of the assumption of bonds, notes, or
28-17 other obligations or taxes or the assumption of voted but unissued
28-18 bonds by reason of the annexation of any area, then the election
28-19 shall be held and notice given as provided for bond elections held
28-20 by the district.
28-21 (p) The district has the same right and duty to furnish
28-22 service to the annexed land that it previously had to furnish
28-23 service to other land in the district, and the board shall endeavor
28-24 to serve all land in the district without discrimination.
28-25 Sec. 49.303. EXCLUDING LAND FROM DISTRICT. (a) Before a
28-26 district orders an election for the authorization of bonds payable
28-27 in whole or in part from taxes, the board may, on its own motion,
28-28 call a hearing on the question of the exclusion of land from the
28-29 district under the provisions of this section and Sections 49.304
28-30 through 49.307, if the exclusions are practicable, just, or
28-31 desirable.
28-32 (b) The board must call a hearing on the exclusion of land
28-33 or other property from the district on the written petition of any
28-34 landowner or property owner in the district filed with the
28-35 secretary of the board before the first election on the question of
28-36 whether bonds should be issued payable in whole or in part from
28-37 taxes is ordered.
28-38 (c) The board may hold a hearing on the exclusion of land or
28-39 other property from the district if the district has not issued
28-40 bonds payable in whole or in part from taxes, and if a landowner or
28-41 property owner submits a signed petition to the secretary of the
28-42 board evidencing the consent of the owners of a majority of the
28-43 acreage proposed to be excluded and a majority of the taxable
28-44 property in the district, as reflected by the most recent certified
28-45 tax roll of the district.
28-46 (d) A district that has previously held an election at which
28-47 approval was given for the issuance of bonds payable in whole or in
28-48 part from taxes may not rely on that election for the issuance of
28-49 the bonds if after the bond election, but before the bonds are
28-50 issued, land is excluded from the district as provided by this
28-51 subchapter. The board must call and hold another bond election and
28-52 receive voter approval as provided by this subchapter before
28-53 issuing those bonds.
28-54 Sec. 49.304. HEARING TO ANNOUNCE PROPOSED EXCLUSIONS AND TO
28-55 RECEIVE PETITIONS. (a) If the board determines that an exclusion
28-56 hearing should be held or if a written petition requesting an
28-57 exclusion hearing is filed with the secretary of the board as
28-58 provided in Section 49.303, the board shall give notice of the time
28-59 and place of a hearing to announce its own conclusions relating to
28-60 land or other property to be excluded and to receive petitions for
28-61 exclusion of land or other property.
28-62 (b) The board shall publish notice of the hearing once a
28-63 week for two consecutive weeks in one or more newspapers with
28-64 general circulation in the district. The first publication shall
28-65 appear at least 14 days before the day of the hearing.
28-66 (c) The notice shall advise all interested property owners
28-67 of their right to present petitions for exclusions of land or other
28-68 property and to offer evidence in support of the petitions and
28-69 their right to contest any proposed exclusion based on either a
28-70 petition or the board's own conclusions and to offer evidence in
29-1 support of the contest.
29-2 Sec. 49.305. PETITION. (a) A petition for exclusion of
29-3 land must accurately describe by metes and bounds or lot and block
29-4 number the land to be excluded. A petition for exclusion of other
29-5 property must describe the property to be excluded.
29-6 (b) A petition for exclusion shall be filed with the
29-7 district at least seven days before the hearing and shall state
29-8 clearly the particular grounds on which the exclusion is sought.
29-9 Only the stated grounds shall be considered.
29-10 Sec. 49.306. GROUNDS FOR EXCLUSION. Exclusions from the
29-11 district may be made on the grounds that:
29-12 (1) to retain certain land or other property within
29-13 the district's taxing power would be arbitrary and unnecessary to
29-14 conserve the public welfare, would impair or destroy the value of
29-15 the property desired to be excluded, and would constitute the
29-16 arbitrary imposition of a confiscatory burden;
29-17 (2) to retain any given land or other property in the
29-18 district and to extend to it, either presently or in the future,
29-19 the benefits, service, or protection of the district's facilities
29-20 would create an undue and uneconomical burden on the remainder of
29-21 the district; or
29-22 (3) the land desired to be excluded cannot be bettered
29-23 as to conditions of living and health, provided with water or sewer
29-24 service, protected from flood, drained, freed from interruption of
29-25 traffic caused by excess of water on the roads, highways, or other
29-26 means of transportation serving the land, or otherwise benefited by
29-27 the district's proposed improvements.
29-28 Sec. 49.307. HEARING AND ORDER EXCLUDING LAND. (a) The
29-29 board may adjourn the hearing from one day to another and until all
29-30 persons desiring to be heard are heard. The board immediately
29-31 shall specifically describe all property it proposes to exclude on
29-32 its own motion and shall hear first any protests and evidence
29-33 against exclusions proposed on the board's own motion.
29-34 (b) After considering all engineering data and other
29-35 evidence presented to it, the board shall determine whether the
29-36 facts disclose the affirmative of the propositions stated in
29-37 Subdivision (1) or (2) or, if appropriate, in Subdivision (3) of
29-38 Section 49.306. If the affirmative exists, the board shall enter
29-39 an order excluding all land or other property falling within the
29-40 conditions defined by the respective subdivisions and shall
29-41 redefine in the order the boundaries of the district to embrace all
29-42 land not excluded. A copy of the order excluding land and
29-43 redefining the boundaries of the district shall be filed in the
29-44 deed records of the county or counties in which the district is
29-45 situated.
29-46 Sec. 49.308. SUIT TO REVIEW EXCLUSION. (a) Any person
29-47 owning an interest in land affected by the order may file a
29-48 petition within 20 days after the effective date of the order to
29-49 review, set aside, modify, or suspend the order.
29-50 (b) The venue in any action shall be in any district court
29-51 that has jurisdiction in the county in which the district is
29-52 located. If the district includes land in more than one county,
29-53 the venue shall be in the district court having jurisdiction in the
29-54 county in which the major portion of the acreage of the land sought
29-55 to be excluded from the district is located.
29-56 (c) A person may appeal from the judgment or order of a
29-57 district court in a suit brought under the provisions of this
29-58 section to the court of civil appeals and supreme court as in other
29-59 civil cases in which the district court has original jurisdiction.
29-60 The appeal is subject to the statutes and rules of practice and
29-61 procedure in civil cases.
29-62 Sec. 49.309. EXCLUSION OF NONIRRIGATED PROPERTY. For the
29-63 purposes of this section and Sections 49.310 through 49.314, the
29-64 following definitions shall apply:
29-65 (1)(A) "Nonirrigated property" means land that:
29-66 (i) is not irrigable;
29-67 (ii) the owners of a majority of the
29-68 acreage of which no longer intend to irrigate; or
29-69 (iii) has been subdivided into:
29-70 (aa) town lots, or town
30-1 lots and blocks, or small parcels of the same general nature as
30-2 town lots; or
30-3 (bb) town blocks and lots
30-4 designed, intended, or suitable for residential, commercial, or
30-5 other nonagricultural purposes, as distinguished from farm acreage
30-6 whether subdivided into a subdivision or not; and
30-7 (cc) including streets,
30-8 alleys, parkways, parks, and railroad property and rights-of-way
30-9 located in the subdivided land.
30-10 (B) The property described in Paragraph (A)
30-11 shall be considered nonirrigated property regardless of whether the
30-12 land is within or near a municipality and regardless of whether a
30-13 plat or map of the subdivision has been duly filed for record and
30-14 recorded in the office of the county clerk of the county in which
30-15 the land or any part of the land is situated.
30-16 (C) The term does not include land that within
30-17 the year preceding the date of the hearing under Section 49.310 was
30-18 used for farming or agricultural purposes.
30-19 (2) "District" means a water control and improvement,
30-20 water improvement, or irrigation district the principal purpose of
30-21 which is furnishing water for the irrigation of agricultural lands
30-22 or that is principally engaged in furnishing water for the
30-23 irrigation of agricultural lands.
30-24 Sec. 49.310. AUTHORITY TO EXCLUDE LAND. (a) A petition for
30-25 exclusion may be filed by the owner or owners, or their authorized
30-26 agent, of a majority in acreage of nonirrigated property included
30-27 within the boundaries of a district.
30-28 (b) Upon receipt of a petition for exclusion, or upon its
30-29 own motion, a district shall issue an order excluding the property
30-30 if, after notice and hearing, the board finds that:
30-31 (1) the described property is nonirrigated property;
30-32 (2) the applicable requirements of Section 49.311 have
30-33 been satisfied;
30-34 (3) the owner or owners do not object to the exclusion
30-35 of their nonirrigated property; and
30-36 (4) it is in the best interest of the district and of
30-37 the described property to exclude that property from the district.
30-38 (c) The district shall follow the notice and hearing
30-39 provisions and other procedural requirements for excluding
30-40 territory applicable to that district as set out in Sections 49.303
30-41 through 49.307.
30-42 Sec. 49.311. CONSENT FROM HOLDERS OF INDEBTEDNESS. If the
30-43 district has outstanding bonded indebtedness, or indebtedness under
30-44 a loan from a governmental agency, a written consent from an
30-45 authorized representative of the holder or holders of the
30-46 indebtedness consenting to the exclusion shall be obtained and
30-47 filed with the district before the hearing.
30-48 Sec. 49.312. RESULTS OF EXCLUSION. (a) Upon issuance of an
30-49 order excluding property, that property is no longer a part of the
30-50 district and is not entitled to water service from the district.
30-51 (b) Any taxes, assessments, or other charges owed to the
30-52 district at the time of exclusion remain the obligation of the
30-53 owner of the excluded property and continue to be secured by
30-54 statutory liens on the property, if any.
30-55 (c) Once excluded, the landowner has no further liability to
30-56 the district for future taxes, assessments, or other charges of the
30-57 district.
30-58 (d) A copy of the order excluding the property from the
30-59 district certified and acknowledged by the secretary of the board
30-60 shall be recorded by the district in the real property records of
30-61 the county in which the excluded property is located as evidence of
30-62 the exclusion.
30-63 Sec. 49.313. DISTRICT FACILITIES ON EXCLUDED PROPERTY. If
30-64 any canals, ditches, pipelines, pumps, or other facilities of the
30-65 district are located on lands excluded by the resolution of the
30-66 board, the exclusion does not affect or interfere with any rights
30-67 that the district has to maintain and continue operation of the
30-68 facilities as located for the purpose of servicing lands remaining
30-69 in the district.
30-70 Sec. 49.314. WATER ALLOCATIONS. (a) After the district
31-1 adopts an order excluding nonirrigated property, a city or other
31-2 water supply corporation that serves the excluded land with a
31-3 potable water supply may petition the district to apply to the
31-4 commission to convert the proportionate irrigation water allocation
31-5 of the land excluded as nonirrigated property, as determined by the
31-6 district, from irrigation use to municipal use allocation.
31-7 (b) The district shall make such application to the
31-8 commission within 30 days of the filing of a petition by the city
31-9 or water supply corporation that serves the land with a potable
31-10 water supply, provided the city or other water supply corporation
31-11 pays the district the amount the district estimates will be its
31-12 reasonable expenses and attorney's fees incurred in the commission
31-13 conversion proceedings and enters into an agreement with the
31-14 district setting forth the basis on which the water allocation
31-15 shall be delivered, or made available, to the city or water supply
31-16 corporation covering such terms as the entities may agree to, and
31-17 in the event the parties cannot agree, such dispute shall not be
31-18 subject to the jurisdiction of the commission, or its successors,
31-19 under this code but subject to resolution through alternative
31-20 dispute resolution. In such commission proceeding, the city or
31-21 water supply corporation shall provide evidence to the commission
31-22 of the current or projected need within a five year period for the
31-23 municipal-use water allocation after such conversion as a condition
31-24 of such conversion of use of the district's water rights from
31-25 irrigation use to municipal use.
31-26 (Sections 49.315 to 49.320 reserved for expansion
31-27 SUBCHAPTER K. DISSOLUTION
31-28 Sec. 49.321. DISSOLUTION AUTHORITY. After notice and
31-29 hearing, the commission may dissolve any district that is inactive
31-30 for a period of five consecutive years and has no outstanding
31-31 bonded indebtedness.
31-32 Sec. 49.322. NOTICE OF HEARING. (a) The commission shall
31-33 give notice of the dissolution hearing that briefly describes the
31-34 reasons for the proceeding.
31-35 (b) The notice shall be published once each week for two
31-36 consecutive weeks before the day of hearing in a newspaper having
31-37 general circulation in the county or counties in which the district
31-38 is located. The first publication shall be 30 days before the day
31-39 of the hearing.
31-40 (c) The commission shall give notice of the hearing by first
31-41 class mail addressed to the directors of the district according to
31-42 the last record on file with the executive director.
31-43 Sec. 49.323. INVESTIGATION. The executive director shall
31-44 investigate the facts and circumstances of the district to be
31-45 dissolved and the result of the investigation shall be included in
31-46 a written report.
31-47 Sec. 49.324. ORDER OF DISSOLUTION. The commission may enter
31-48 an order dissolving the district at the conclusion of the hearing
31-49 if it finds that the district has performed none of the functions
31-50 for which it was created for a period of five consecutive years
31-51 before the day of the proceeding and that the district has no
31-52 outstanding bonded indebtedness.
31-53 Sec. 49.325. CERTIFIED COPY OF ORDER. The commission shall
31-54 file a certified copy of the order of dissolution of the district
31-55 in the deed records of the county or counties in which the district
31-56 is located. If the particular district was created by a special
31-57 Act of the legislature, the commission shall file a certified copy
31-58 of the order of dissolution with the secretary of state.
31-59 Sec. 49.326. APPEALS. (a) Appeals from a commission order
31-60 dissolving a district shall be filed and heard in the district
31-61 court of any of the counties in which the land is located.
31-62 (b) The trial on appeal shall be de novo and the substantial
31-63 evidence rule shall not apply.
31-64 Sec. 49.327. ASSETS ESCHEAT TO STATE. Upon the dissolution
31-65 of a district by the commission, all assets of the district shall
31-66 escheat to the State of Texas. The assets shall be administered by
31-67 the state treasurer and shall be disposed of in the manner provided
31-68 by Chapter 74, Property Code.
31-69 (Sections 49.328 to 49.350 reserved for expansion
31-70 SUBCHAPTER L. FIRE DEPARTMENTS
32-1 Sec. 49.351. FIRE DEPARTMENTS. (a) A district providing
32-2 potable water or sewer service to household users may establish,
32-3 operate, and maintain a fire department to perform all
32-4 fire-fighting activities within the district as provided in this
32-5 subchapter and may issue, with voter approval, bonds for financing
32-6 the establishment of the fire department including the construction
32-7 and purchase of necessary buildings, facilities, and equipment and
32-8 the provision of an adequate water supply.
32-9 (b) After approval of the district electors of a plan to
32-10 operate or jointly operate a fire department, the district or
32-11 districts shall provide an adequate system and water supply for
32-12 fire-fighting purposes, may construct and purchase necessary
32-13 buildings, facilities, and equipment, and may employ all necessary
32-14 personnel including supervisory personnel to operate the fire
32-15 department.
32-16 (c) Bonds issued for establishment of the fire department
32-17 shall be authorized and issued, and a district shall be authorized
32-18 to levy a tax to pay the principal of and interest on such bonds,
32-19 as provided by law for authorization and issuance of other bonds of
32-20 the district.
32-21 (d) Two or more districts may contract to operate a joint
32-22 fire department for their districts and shall include in the
32-23 contract a system for joint administration and operation of the
32-24 fire department, the extent of services to be provided, a method
32-25 for funding the department from funds of each district, and any
32-26 other terms and conditions the parties consider necessary.
32-27 (e) A district may contract with any other person to perform
32-28 fire-fighting services within the district.
32-29 (f) Before a district establishes a fire department,
32-30 contracts to operate a joint fire department, or contracts with
32-31 another person to perform fire-fighting services within the
32-32 district, the district must comply with the provisions of
32-33 Subsections (g), (h), and (i).
32-34 (g) A district or districts proposing to act jointly shall
32-35 develop a detailed plan for the establishment, operation, and
32-36 maintenance of the proposed department, including a detailed
32-37 presentation of all financial requirements. If a district is
32-38 entering into a contract under Subsection (e), the district shall
32-39 develop a plan that describes in detail the facilities and
32-40 equipment to be devoted to service to the district and all
32-41 proposals for providing the service and that includes a
32-42 presentation of the financial requirements under the contract.
32-43 Before adoption of a plan and any contract by the district, the
32-44 board shall hold a hearing at which any person residing in the
32-45 district may present testimony for and against the proposed plan
32-46 and any proposed contract. Notice of the hearing and the place at
32-47 which the plan and any contract may be examined shall be posted in
32-48 two public places within the district at least 10 days before the
32-49 date of the hearing.
32-50 (h) After adoption of the plan and any contract by the
32-51 board, the plan and financial presentation, together with any
32-52 contract and a written report in a form prescribed by the executive
32-53 director describing existing fire departments and fire-fighting
32-54 services available within 25 miles of the boundaries of the
32-55 district, shall be submitted to the executive director for
32-56 consideration by the commission under rules adopted by the
32-57 commission. Before approval or disapproval, the commission shall
32-58 hold a hearing. Notice of the hearing before the commission shall
32-59 be posted by the board in at least two public places in the
32-60 district at least five days before the hearing. Before the
32-61 commission approves the application, it must find that it is
32-62 economically feasible for the district to implement the plan and
32-63 meet the provisions of any contract and shall take into
32-64 consideration in giving its approval the general financial
32-65 condition of the district and the economic feasibility of the
32-66 district carrying out the plan or meeting the obligations of the
32-67 contract.
32-68 (i) After approval by the commission, the district shall
32-69 submit to the electors of the district at the election to approve
32-70 bonds for financing the plan, or if no bonds are to be approved, at
33-1 an election called for approval of the plan, the proposition of
33-2 whether or not the plan should be implemented or entered into by
33-3 the district. The ballots at the election shall be printed, as
33-4 applicable, to provide for voting for or against the proposition:
33-5 "The implementation of the plan for (operation/joint operation) of
33-6 a fire department"; or "The plan and contract to provide
33-7 fire-fighting services for the district."
33-8 (j) No funds of the district may be used to establish a fire
33-9 department, to enter into joint operation of a fire department, or
33-10 to contract for fire-fighting services without the approval of a
33-11 plan by the electors as provided in this section. However, the
33-12 district may use available funds for preparation of a plan and any
33-13 contract. The operation of a fire department or provision of
33-14 fire-fighting services is an essential public necessity, and a
33-15 district may discontinue any and all services, including water and
33-16 sewer service, to any person who fails to timely pay fire
33-17 department service fees or any other assessment adopted by the
33-18 district to support the fire department or the provision of
33-19 fire-fighting services.
33-20 (Sections 49.352 to 49.450 reserved for expansion
33-21 SUBCHAPTER M. NOTICES, REPORTS, AND BANKRUPTCY
33-22 Sec. 49.451. POSTING SIGNS IN THE DISTRICT. (a) A district
33-23 subject to the notice requirements of Section 49.452 shall, within
33-24 30 days after the effective date of this section or the creation of
33-25 the district, post signs indicating the existence of the district
33-26 at two principal entrances to the district.
33-27 (b) The size and exact location of the information contained
33-28 on the signs shall be determined by the executive director.
33-29 Sec. 49.452. NOTICE TO PURCHASERS. (a)(1) Any person who
33-30 proposes to sell or convey real property located in a district
33-31 created under this title or by a special Act of the legislature
33-32 that is providing or proposing to provide, as the district's
33-33 principal function, water, sanitary sewer, drainage, and flood
33-34 control or protection facilities or services, or any of these
33-35 facilities or services that have been financed or are proposed to
33-36 be financed with bonds of the district payable in whole or part
33-37 from taxes of the district, or by imposition of a standby fee, if
33-38 any, to household or commercial users, other than agricultural,
33-39 irrigation, or industrial users, and which district includes less
33-40 than all the territory in at least one county and which, if located
33-41 within the corporate area of a city, includes less than 75 percent
33-42 of the incorporated area of the city or which is located outside
33-43 the corporate area of a city in whole or in substantial part, must
33-44 first give to the purchaser the written notice provided in this
33-45 section.
33-46 (2) The provisions of this section shall not be
33-47 applicable to:
33-48 (A) transfers of title under any type of lien
33-49 foreclosure;
33-50 (B) transfers of title by deed in cancellation
33-51 of indebtedness secured by a lien upon the property conveyed; or
33-52 (C) transfers of title by reason of a will or
33-53 probate proceedings.
33-54 (b) The prescribed notice for all districts shall be
33-55 executed by the seller and shall read as follows:
33-56 "The real property, described below, that you are about to
33-57 purchase is located in the ___________________ District. The
33-58 district has taxing authority separate from any other taxing
33-59 authority and may, subject to voter approval, issue an unlimited
33-60 amount of bonds and levy an unlimited rate of tax in payment of
33-61 such bonds. As of this date, the rate of taxes levied by the
33-62 district on real property located in the district is $__________ on
33-63 each $100 of assessed valuation. If the district has not yet
33-64 levied taxes, the most recent projected rate of debt service tax,
33-65 as of this date, is $__________ on each $100 of assessed valuation.
33-66 The total amount of bonds approved by the voters and which have
33-67 been or may, at this date, be issued is $__________, and the
33-68 aggregate initial principal amounts of all bonds issued for one or
33-69 more of the specified facilities of the district and payable in
33-70 whole or in part from property taxes is $__________.
34-1 "The district has the authority to adopt and impose a standby
34-2 fee on property in the district that has water, sanitary sewer, or
34-3 drainage facilities and services available but not connected and
34-4 which does not have a house, building, or other improvement located
34-5 thereon and does not substantially utilize the utility capacity
34-6 available to the property. The district may exercise the authority
34-7 without holding an election on the matter. As of this date, the
34-8 most recent amount of the standby fee is $__________. An unpaid
34-9 standby fee is a personal obligation of the person that owned the
34-10 property at the time of imposition and is secured by a lien on the
34-11 property. Any person may request a certificate from the district
34-12 stating the amount, if any, of unpaid standby fees on a tract of
34-13 property in the district.
34-14 "The purpose of this district is to provide water, sewer,
34-15 drainage, or flood control facilities and services within the
34-16 district through the issuance of bonds payable in whole or in part
34-17 from property taxes. The cost of these utility facilities is not
34-18 included in the purchase price of your property, and these utility
34-19 facilities are owned or to be owned by the district. The legal
34-20 description of the property you are acquiring is as follows:
34-21 ___________________________________________________________________
34-22 ______________________ (Date)
34-23 _____________________________
34-24 Signature of Seller
34-25 PURCHASER IS ADVISED THAT THE INFORMATION SHOWN ON THIS FORM
34-26 IS SUBJECT TO CHANGE BY THE DISTRICT AT ANY TIME. THE DISTRICT
34-27 ROUTINELY ESTABLISHES TAX RATES DURING THE MONTHS OF SEPTEMBER
34-28 THROUGH DECEMBER OF EACH YEAR, EFFECTIVE FOR THE YEAR IN WHICH THE
34-29 TAX RATES ARE APPROVED BY THE DISTRICT. PURCHASER IS ADVISED TO
34-30 CONTACT THE DISTRICT TO DETERMINE THE STATUS OF ANY CURRENT OR
34-31 PROPOSED CHANGES TO THE INFORMATION SHOWN ON THIS FORM.
34-32 "The undersigned purchaser hereby acknowledges receipt of the
34-33 foregoing notice at or prior to execution of a binding contract for
34-34 the purchase of the real property described in such notice or at
34-35 closing of purchase of the real property.
34-36 ______________________ (Date)
34-37 _____________________________
34-38 Signature of Purchaser
34-39 "(Note: Correct district name, tax rate, bond amounts, and
34-40 legal description are to be placed in the appropriate space.)
34-41 Except for notices included as an addendum or paragraph of a
34-42 purchase contract, the notice shall be executed by the seller and
34-43 purchaser, as indicated. If the district does not propose to
34-44 provide one or more of the specified facilities and services, the
34-45 appropriate purpose may be eliminated. If the district has not yet
34-46 levied taxes, a statement of the district's most recent projected
34-47 rate of debt service tax is to be placed in the appropriate space.
34-48 If the district does not have approval from the commission to adopt
34-49 and impose a standby fee, the second paragraph of the notice may be
34-50 deleted. For the purposes of the notice form required to be given
34-51 to the prospective purchaser prior to execution of a binding
34-52 contract of sale and purchase, a seller and any agent,
34-53 representative, or person acting on the seller's behalf may modify
34-54 the notice by substitution of the words 'January 1, ______' for the
34-55 words 'this date' and place the correct calendar year in the
34-56 appropriate space."
34-57 (c) The notice required by this section shall be given to
34-58 the prospective purchaser prior to execution of a binding contract
34-59 of sale and purchase either separately or as an addendum or
34-60 paragraph of a purchase contract. In the event a contract of
34-61 purchase and sale is entered into without the seller providing the
34-62 notice required by this subsection, the purchaser shall be entitled
34-63 to terminate the contract. If, however, the seller furnishes the
34-64 required notice at or prior to closing the purchase and sale
34-65 contract and the purchaser elects to close even though such notice
34-66 was not timely furnished prior to execution of the contract, it
34-67 shall be conclusively presumed that the purchaser has waived all
34-68 rights to terminate the contract and recover damages or other
34-69 remedies or rights under the provisions of this section.
34-70 Notwithstanding any provision of this subchapter to the contrary,
35-1 all sellers, title companies, and examining attorneys, and any
35-2 agent, representative, or person acting on their behalf, shall not
35-3 be liable for damages under the provisions of either Subsection (l)
35-4 or (m) or liable for any other damages to any person for failure to
35-5 provide the notice required by this section to a purchaser prior to
35-6 execution of a binding contract of a purchase and sale when the
35-7 district has not filed the information form and map or plat as
35-8 required under Section 49.455.
35-9 (d) The purchaser shall sign the notice or purchase contract
35-10 including such notice to evidence the receipt of notice.
35-11 (e) At the closing of purchase and sale, a separate copy of
35-12 such notice with current information shall be executed by the
35-13 seller and purchaser, acknowledged, and thereafter recorded in the
35-14 deed records of the county in which the property is located. For
35-15 the purposes of this section, all sellers, title companies, and
35-16 examining attorneys, and any agent, representative, or person
35-17 acting on their behalf, shall be entitled to rely on the accuracy
35-18 of the information form and map or plat as last filed by each
35-19 district under Section 49.455 or the information contained in or
35-20 shown on the notice form issued by the district under Section
35-21 49.453 in completing the notice form to be executed by the seller
35-22 and purchaser at the closing of purchase and sale. Any information
35-23 taken from the information form or map or plat as last filed by
35-24 each district and the information contained in or shown on the
35-25 notice form issued by the district under Section 49.453 shall be,
35-26 for purposes of this section, conclusively presumed as a matter of
35-27 law to be correct. All subsequent sellers, purchasers, title
35-28 insurance companies, examining attorneys, and lienholders shall be
35-29 entitled to rely upon the information form and map or plat filed by
35-30 the district or the notice form issued by the district under
35-31 Section 49.453.
35-32 (f) For the purposes of this section, an executory contract
35-33 of purchase and sale having a performance period of more than six
35-34 months shall be considered a sale under Subsection (a).
35-35 (g) For the purposes of the notice form to be given to the
35-36 prospective purchaser prior to execution of a binding contract of
35-37 sale and purchase, a seller and any agent, representative, or
35-38 person acting in the seller's behalf may modify the notice by
35-39 substitution of the words "January 1, ____" for the words "this
35-40 date" and place the correct calendar year in the appropriate space.
35-41 All sellers, and all persons completing the prescribed notice in
35-42 the sellers' behalf, shall be entitled to rely on the information
35-43 contained in or shown on the information form and map or plat filed
35-44 of record by the district under Section 49.455 in completing the
35-45 prescribed form to be given to the prospective purchaser prior to
35-46 execution of a binding contract of sale and purchase. Except as
35-47 otherwise provided in Subsection (e), any information taken from
35-48 the information form or map or plat filed of record by the district
35-49 in effect as of January 1 of each year shall be, for purposes of
35-50 the notice to be given to the prospective purchaser prior to
35-51 execution of a binding contract of sale and purchase, conclusively
35-52 presumed as a matter of law to be correct for the period January 1
35-53 through December 31 of such calendar year. A seller and any
35-54 persons completing the prescribed notice in the seller's behalf may
35-55 provide more recent information, if available, than the information
35-56 contained in or shown on the information form and map or plat filed
35-57 of record by the district under Section 49.455 in effect as of
35-58 January 1 of each year in completing the prescribed form to be
35-59 given to the purchaser prior to execution of a binding contract of
35-60 sale and purchase. Nothing contained in the preceding sentence
35-61 shall be construed to create an affirmative duty on the part of a
35-62 seller or any persons completing the prescribed notice in the
35-63 seller's behalf to provide more recent information than the
35-64 information taken from the information form and map or plat filed
35-65 of record by the district as of January 1 of each year in
35-66 completing the prescribed notice to be given to the purchaser prior
35-67 to execution of a binding contract of sale and purchase. All
35-68 subsequent sellers, purchasers, title insurance companies,
35-69 examining attorneys, and lienholders shall be entitled to rely upon
35-70 the information form and map or plat filed by the district.
36-1 (h) If such notice is given at closing as provided in
36-2 Subsection (e), a purchaser, or the purchaser's heirs, successors,
36-3 or assigns, shall not be entitled to maintain any action for
36-4 damages or maintain any action against a seller, title insurance
36-5 company, or lienholder, or any agent, representative, or person
36-6 acting in their behalf, by reason of use by the seller of the
36-7 information filed for record by the district or reliance by the
36-8 seller on the filed plat and filed legal description of the
36-9 district in determining whether the property to be sold and
36-10 purchased is within the district. No action may be maintained
36-11 against any title company for failure to disclose the inclusion of
36-12 the described real property within a district when the district has
36-13 not filed for record the information form, map, or plat with the
36-14 clerk of the county or counties in which the district is located.
36-15 (i) Any purchaser who purchases any real property in a
36-16 district and who thereafter sells or conveys the same shall on
36-17 closing of such subsequent sale be conclusively considered as
36-18 having waived any prior right to damages under this section.
36-19 (j) It is the express intent of this section that all
36-20 sellers, title insurance companies, examining attorneys, vendors of
36-21 property and tax information, real estate brokers, and lienholders,
36-22 and any agent, representative, or person acting on their behalf,
36-23 shall be entitled to rely on the accuracy of the information form
36-24 and map or plat as last filed by each district or the information
36-25 contained in or shown on the notice form issued by the district
36-26 under Section 49.453, or for the purposes of the notice to be given
36-27 the purchaser prior to execution of a binding contract of sale and
36-28 purchase the information contained in or shown on the information
36-29 form and map or plat filed of record by the district in effect as
36-30 of January 1 of each year for the period January 1 through December
36-31 31 of such calendar year.
36-32 (k) Except as otherwise provided in Subsection (c), if any
36-33 sale or conveyance of real property within a district is not made
36-34 in compliance with the provisions of this section, the purchaser
36-35 may institute a suit for damages under the provisions of either
36-36 Subsection (l) or (m).
36-37 (l) A purchaser of real property covered by the provisions
36-38 of this section, if the sale or conveyance of the property is not
36-39 made in compliance with this section, may institute a suit for
36-40 damages in the amount of all costs relative to the purchase of the
36-41 property plus interest and reasonable attorney's fees. The suit
36-42 for damages may be instituted jointly or severally against the
36-43 person, firm, corporation, partnership, organization, business
36-44 trust, estate, trust, association, or other legal entity that sold
36-45 or conveyed the property to the purchaser. Following the recovery
36-46 of damages under this subsection, the amount of the damages shall
36-47 first be paid to satisfy all unpaid obligations on each outstanding
36-48 lien or liens on the property and the remainder of the damage
36-49 amount shall be paid to the purchaser. On payment of all damages
36-50 respectively to the lienholders and purchaser, the purchaser shall
36-51 reconvey the property to the seller.
36-52 (m) A purchaser of real property covered by the provisions
36-53 of this section, if the sale or conveyance of the property is not
36-54 made in compliance with this section, may institute a suit for
36-55 damages in an amount not to exceed $5,000, plus reasonable
36-56 attorney's fees.
36-57 (n) A purchaser is not entitled to recover damages under
36-58 both Subsections (l) and (m), and entry of a final decision
36-59 awarding damages to the purchaser under either Subsection (l) or
36-60 (m) shall preclude the purchaser from recovering damages under the
36-61 other subsection. Notwithstanding any part or provision of the
36-62 general or special laws or the common law of the state to the
36-63 contrary, the relief provided under Subsections (l) and (m) shall
36-64 be the exclusive remedies for a purchaser aggrieved by the seller's
36-65 failure to comply with the provisions of this section. Any action
36-66 for damages shall not, however, apply to, affect, alter, or impair
36-67 the validity of any existing vendor's lien, mechanic's lien, or
36-68 deed of trust lien on the property.
36-69 (o) A suit for damages under the provisions of this section
36-70 must be brought within 90 days after the purchaser receives the
37-1 first district tax notice or within four years after the property
37-2 is sold or conveyed to the purchaser, whichever time occurs first,
37-3 or the purchaser loses the right to seek damages under this
37-4 section.
37-5 (p) Notwithstanding any provisions of this subchapter to the
37-6 contrary, a purchaser may not recover damages of any kind under
37-7 this section if that person:
37-8 (1) purchases an equity in real property and in
37-9 conjunction with the purchase assumes any liens, whether purchase
37-10 money or otherwise; and
37-11 (2) does not require proof of title by abstract, title
37-12 policy, or any other proof of title.
37-13 Sec. 49.453. NOTICE FORM FROM DISTRICT. (a) A district
37-14 covered by Section 49.452 shall also maintain in the district
37-15 office the particular form of Notice to Purchasers required by
37-16 Section 49.452 to be furnished by a seller to a purchaser of real
37-17 property in that district and shall, upon written request of any
37-18 person, issue the notice form completed by a district with all
37-19 information required to be furnished by the district. A notice
37-20 form issued by a district under the provisions of this section
37-21 shall include a written statement that the notice form is being
37-22 issued by the district, the date of its issuance, and the
37-23 district's telephone number. A district shall not be required to
37-24 orally provide the information.
37-25 (b) A district may charge a reasonable fee as determined by
37-26 the district not to exceed $10 for the issuance of a notice form
37-27 pursuant to Subsection (a). The notice form shall be delivered by
37-28 regular mail or made available at the district's office. If a
37-29 district is requested to deliver the notice form to a person by an
37-30 alternative method, the district may impose a charge not to exceed
37-31 the actual cost of such delivery.
37-32 (c) A district may delegate the responsibility for issuance
37-33 of the particular form of Notice to Purchasers to an employee or
37-34 agent of the district. A district shall file with the commission
37-35 the name, address, and telephone number of the employee or agent of
37-36 the district responsible for issuance of the notice forms and shall
37-37 notify the commission in writing within seven days after there is a
37-38 change to the information required to be filed with the commission
37-39 under the provisions of this subsection.
37-40 (d) Any notice issued by the district shall contain the
37-41 information effective as of the date of its issuance.
37-42 Sec. 49.454. NOTICE OF UNPAID STANDBY FEES. (a) A district
37-43 covered by Section 49.452 shall, on the written request of any
37-44 person, issue a certificate stating the amount of any unpaid
37-45 standby fees, including interest on the fees, that have been
37-46 assessed against a tract of property in the district. The district
37-47 may charge a fee not to exceed $10 for each certificate. A
37-48 certificate issued through fraud or collusion is void.
37-49 (b) If the district issues a certificate containing an
37-50 erroneous statement under Subsection (a) and the owner of the
37-51 property transfers the property to a good faith purchaser for
37-52 value, the lien on the property provided by Section 49.231(k) is
37-53 extinguished to the extent of the error.
37-54 (c) This section does not affect the liability for any
37-55 unpaid standby fees of the former owner of the undeveloped property
37-56 under Section 49.231(k).
37-57 Sec. 49.455. FILING INFORMATION. (a) The board covered by
37-58 the provisions of Section 49.452 shall file with the county clerk
37-59 in each of the counties in which all or part of the district is
37-60 located a duly affirmed and acknowledged information form that
37-61 includes the information required in Subsection (b), and a complete
37-62 and accurate map or plat showing the boundaries of the district.
37-63 (b) The information form filed by a district under this
37-64 section shall include:
37-65 (1) the name of the district;
37-66 (2) the complete and accurate legal description of the
37-67 boundaries of the district;
37-68 (3) the most recent rate of district taxes on property
37-69 located in the district;
37-70 (4) the total amount of bonds that have been approved
38-1 by the voters and which may be issued by the district (excluding
38-2 refunding bonds and any bonds or portion of bonds payable solely
38-3 from revenues received or expected to be received pursuant to a
38-4 contract with a governmental entity);
38-5 (5) the aggregate initial principal amount of all
38-6 bonds of the district payable in whole or part from taxes
38-7 (excluding refunding bonds and any bonds or portion of bonds
38-8 payable solely from revenues received or expected to be received
38-9 pursuant to a contract with a governmental entity) that have been
38-10 previously issued and remain outstanding;
38-11 (6) whether a standby fee is imposed by the district
38-12 and, if so, the amount of the standby fee;
38-13 (7) the date on which the election to confirm the
38-14 creation of the district was held if such was required;
38-15 (8) a statement of the functions performed or to be
38-16 performed by the district; and
38-17 (9) the particular form of Notice to Purchasers
38-18 required by Section 49.452 to be furnished by a seller to a
38-19 purchaser of real property in that district completed by the
38-20 district with all information required to be furnished by the
38-21 district.
38-22 If a district has not yet levied taxes, a statement to such
38-23 effect together with the district's most recent projected rate of
38-24 debt service tax shall be substituted for Subdivisions (3) and (4).
38-25 (c) The information form and map or plat required by this
38-26 section shall be signed by a majority of the members of the board
38-27 and by each such officer affirmed and acknowledged before it is
38-28 filed with the county clerk, and each amendment made to an
38-29 information form or map shall also be signed by the members of the
38-30 board and by each such officer affirmed and acknowledged before it
38-31 is filed with the county clerk.
38-32 (d) The information form required by this section shall be
38-33 filed with the county clerk within 48 hours after the effective
38-34 date of this section or within 48 hours after the district is
38-35 officially created, whichever time comes first. For purposes of
38-36 this section, the words "officially created" mean the date and hour
38-37 in which the results of the election to confirm the creation of the
38-38 district are declared.
38-39 (e) Within seven days after there is a change in any of the
38-40 information contained in the district information form, map, or
38-41 plat, the district shall file an amendment to the information form,
38-42 map, or plat setting forth the changes made.
38-43 (f) Any person who affirms the corrections and accuracy of
38-44 and acknowledges an information form, map, or plat, or any
38-45 amendment to an information form, map, or plat that includes
38-46 information that is inaccurate or incorrect shall be guilty of a
38-47 misdemeanor and shall be fined not less than $100 nor more than
38-48 $1,000 for each violation.
38-49 (g) If a district fails to file the information required by
38-50 this section in the time required, the executive director may
38-51 request the state attorney general or the district or county
38-52 attorney of the county in which the district is located to seek a
38-53 writ of mandamus to force the board to prepare and file the
38-54 necessary information.
38-55 (h) Any member of a governing board who wilfully fails or
38-56 refuses to join in filing an information form, map, or plat or an
38-57 amendment to an information form, map, or plat under this section
38-58 shall be guilty of a misdemeanor and shall be fined not less than
38-59 $100 nor more than $1,000 for each violation. A member of a
38-60 governing board is presumed to have wilfully failed or refused to
38-61 join in the filing of an information form, map, or plat or an
38-62 amendment to an information form, map, or plat if that member was
38-63 present at the meeting at which the information included in the
38-64 information form, map, or plat or amendment to the information
38-65 form, map, or plat was adopted.
38-66 (i) If a district covered by this section is dissolved,
38-67 annexed to another local government, or consolidated with another
38-68 district, the members of the board shall file a statement of this
38-69 fact together with the effective date of the dissolution,
38-70 annexation, or consolidation with the information form. After a
39-1 district is dissolved and the statement is filed under this
39-2 subsection, a person who sells or conveys property within the
39-3 dissolved district is no longer required to give notice under
39-4 Section 49.452.
39-5 (j) A copy of all information forms, maps, or plats and
39-6 amendments to these filed under this section shall also be filed
39-7 with the executive director.
39-8 Sec. 49.456. BANKRUPTCY OF DISTRICTS; AUTHORITY OF
39-9 COMMISSION. (a) Notwithstanding Section 140.001, Local Government
39-10 Code, or any other law of this state, a district created under
39-11 Sections 52(b)(1) and (2), Article III, or Section 59, Article XVI,
39-12 Texas Constitution, that is subject to the continuing supervision
39-13 of the commission may not proceed under Chapter 9 of the Federal
39-14 Bankruptcy Code (11 U.S.C. Sections 901-946) or any other law
39-15 enacted by the Congress of the United States under federal
39-16 bankruptcy authority until the commission authorizes the district
39-17 to proceed under those laws by written order.
39-18 (b) A district requesting the commission's authorization to
39-19 proceed under Chapter 9 of the Federal Bankruptcy Code (11 U.S.C.
39-20 Sections 901-946) or any other federal bankruptcy law shall file an
39-21 application with the commission requesting authorization.
39-22 (c) The commission shall investigate the financial condition
39-23 of a district submitting an application under Subsection (b),
39-24 including its assets, liabilities, and sources of revenues and may
39-25 require a district to submit any information that the commission
39-26 considers material to a determination of whether authorization to
39-27 proceed in bankruptcy should be granted.
39-28 (d) The commission may not authorize a district to proceed
39-29 in bankruptcy unless the commission determines that the district
39-30 cannot, through the full exercise of its rights and powers under
39-31 the laws of this state, reasonably expect to meet its debts and
39-32 other obligations as they mature.
39-33 (e) The commission shall adopt and assess reasonable and
39-34 necessary fees adequate to recover the costs of the commission in
39-35 administering this section.
39-36 SECTION 3. Title 4, Water Code, is amended by adding Chapter
39-37 59 to read as follows:
39-38 CHAPTER 59. REGIONAL DISTRICTS
39-39 SUBCHAPTER A. DISTRICT CREATION
39-40 Sec. 59.001. PURPOSE AND APPLICATION. (a) The purpose of
39-41 this chapter is to authorize creation and operation of regional
39-42 districts for water, sanitary sewer, drainage, and municipal solid
39-43 waste disposal under Section 59, Article XVI, Texas Constitution.
39-44 (b) This chapter applies only in counties with a population
39-45 of at least 2.2 million, according to the most recent federal
39-46 census, or bordering a county with a population of at least 2.2
39-47 million, according to the most recent federal census.
39-48 Sec. 59.002. DEFINITIONS. (a) In this chapter:
39-49 (1) "District" means a district created or operating
39-50 under this chapter.
39-51 (2) "Municipal district" means a district created
39-52 under general law or a special Act operating under Chapter 51, 53,
39-53 or 54.
39-54 (3) "Bond" means bonds, coupons, notes, or any other
39-55 evidence of indebtedness.
39-56 (b) Other terms not defined by this chapter have the same
39-57 meaning assigned to those terms by Section 49.001.
39-58 Sec. 59.003. CREATION OF DISTRICT. (a) A district may be
39-59 created by:
39-60 (1) The boards of at least 20 percent of the total
39-61 number of municipal districts to be included in the proposed
39-62 district may jointly petition the commission for creation of a
39-63 district. The petition must describe the territory to be included
39-64 in the district and must include resolutions endorsing creation of
39-65 the district adopted by each municipal district to be included in
39-66 the district.
39-67 (2) The owner or owners of 2,000 or more contiguous
39-68 acres may petition the commission for creation of a district.
39-69 (3) The commissioners courts of one or more counties
39-70 may petition the commission for creation of a district in any
40-1 territory within the county.
40-2 (4) The governing body of any city may petition the
40-3 commission for creation of a district in any territory within the
40-4 city or its extraterritorial jurisdiction.
40-5 (b) Petitions for the creation of a district must:
40-6 (1) describe the boundaries of the proposed district
40-7 by metes and bounds that adequately and completely circumscribe the
40-8 property so that there is complete closure of the property or by
40-9 lot and block numbers if there is a recorded map or plat or
40-10 subdivision survey of the area;
40-11 (2) state the general nature of the work proposed to
40-12 be done, the necessity of the work, and the cost of any projects of
40-13 the district as estimated by those filing the petition;
40-14 (3) state the name of each petitioner; and
40-15 (4) include a name of the district generally
40-16 descriptive of the locale of the district followed by the words
40-17 "Regional District."
40-18 (c) A proposed district may not have the same name as any
40-19 other district in the state.
40-20 (d) Section 54.013 applies to the composition of districts
40-21 created under this chapter.
40-22 Sec. 59.004. PURPOSES OF DISTRICT. A district shall be
40-23 created:
40-24 (1) to purchase, own, hold, lease, and otherwise
40-25 acquire sources of water supply;
40-26 (2) to build, operate, and maintain facilities for the
40-27 transportation of water;
40-28 (3) to sell water to cities, to political subdivisions
40-29 of this state, to water supply corporations, to private business
40-30 entities, and to individuals;
40-31 (4) to purchase, own, hold, lease, and otherwise
40-32 acquire equipment and mechanisms necessary for sanitary sewer and
40-33 wastewater treatment;
40-34 (5) to build, operate, and maintain facilities for
40-35 sanitary sewer and wastewater treatment;
40-36 (6) to transport and treat sanitary sewer and
40-37 wastewater effluent of cities and political subdivisions of this
40-38 state and for private business entities or individuals;
40-39 (7) to purchase, own, hold, lease, and otherwise
40-40 acquire equipment and mechanisms for the drainage of storm water
40-41 and floodwater; and
40-42 (8) for the purposes outlined in Section 54.012.
40-43 Sec. 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
40-44 Development Board requires that matching funds be provided as a
40-45 condition for receiving a loan or grant from the Texas Water
40-46 Development Board from research and planning funds, the matching
40-47 funds may not be provided through a guarantee of matching funds by
40-48 any individual who has a financial interest in the regional
40-49 district or who will receive any direct financial benefit from a
40-50 regional district project.
40-51 Sec. 59.006. CONSENT OF CITY. (a) Land in the corporate
40-52 limits of a city or in the extraterritorial jurisdiction of a city
40-53 may not be included in a district unless the city grants its
40-54 written consent by resolution or ordinance to the inclusion of the
40-55 land in the district.
40-56 (b) If the governing body of a city fails or refuses to
40-57 grant permission for the inclusion of land in its extraterritorial
40-58 jurisdiction in a district within 120 days after receipt of a
40-59 written request, the person or entity desiring to create the
40-60 district may petition the governing body of the city to make
40-61 available the water, sewer, or drainage service contemplated to be
40-62 provided by the district.
40-63 (c) Failure of the governing body of the city and the
40-64 requesting district to execute a mutually agreeable contract
40-65 providing for the service requested within six months after receipt
40-66 of a request for consent constitutes authorization for the
40-67 inclusion of land in the district under this section.
40-68 Authorization for the inclusion of the land in the district under
40-69 this section means only authorization to initiate proceedings to
40-70 include the land in the district as otherwise provided by this
41-1 chapter.
41-2 (d) Sections 54.016(e), (f), (g), and (h) apply under this
41-3 chapter.
41-4 Sec. 59.007. GRANTING OR REFUSING PETITION; EXCLUSION OF
41-5 TERRITORY. (a) If after the hearing of the petition the
41-6 commission finds that the petition conforms to the requirements of
41-7 this chapter and that the creation of the district would be of
41-8 benefit to the territory to be included in the district, the
41-9 commission shall issue an order granting the petition for creation.
41-10 If the commission finds that part of the territory included in the
41-11 proposed district will not benefit from the creation of the
41-12 district, the commission shall exclude that territory from the
41-13 proposed district and redefine the proposed district's boundaries
41-14 accordingly.
41-15 (b) If the commission finds that the petition does not
41-16 conform to the requirements of this chapter or that the proposed
41-17 projects are not of benefit to the territory in the proposed
41-18 district, the commission shall issue an order either denying the
41-19 petition or requiring petitioners to amend their petition.
41-20 (c) A copy of the order of the commission granting or
41-21 denying a petition shall be mailed to each city having
41-22 extraterritorial jurisdiction in the county or counties in which
41-23 the district is to be located that has requested notice of hearings
41-24 as provided by Section 54.019.
41-25 (Sections 59.008 to 59.020 reserved for expansion
41-26 SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
41-27 Sec. 59.021. DIRECTORS. (a) The commission shall appoint
41-28 temporary directors who shall serve until permanent directors are
41-29 elected.
41-30 (b) A petition requesting creation filed in accordance with
41-31 Section 59.006 may provide that directors be elected by precinct as
41-32 provided by Subsection (h).
41-33 (c) The board of directors is composed of five members
41-34 unless the petition requesting creation of the district requests
41-35 and the commission approves a board that consists of seven members.
41-36 (d) Permanent directors shall be elected in accordance with
41-37 Chapter 49.
41-38 (e) If the petition for creation has requested the election
41-39 of seven directors as provided by Subsection (c), unless otherwise
41-40 agreed, the three directors elected who received the fewest number
41-41 of votes, whether their election is by precinct or at large, shall
41-42 serve until the next directors election following the confirmation
41-43 election and the four who received the highest number of votes
41-44 shall serve until the second directors election after the
41-45 confirmation election.
41-46 (f) After the creation of the district, the persons or
41-47 entities that petitioned for creation or 50 qualified voters of the
41-48 district may file a petition with the commission requesting to
41-49 expand the district's board to seven members. If the commission
41-50 grants the petition, the commission shall appoint two temporary
41-51 directors. One temporary director shall serve until the next
41-52 directors election and one shall serve until the next succeeding
41-53 directors election. At each election one director shall be elected
41-54 to serve for a four-year term.
41-55 (g) If the board of directors of the district is expanded to
41-56 seven members, four directors shall constitute a quorum and a
41-57 concurrence of four directors is necessary in all matters
41-58 pertaining to the business of the district.
41-59 (h) A petition for the creation of a district may request
41-60 that the board be elected to represent a geographic area. If the
41-61 petition requesting creation of the district is granted, the
41-62 commission shall establish precincts from which the directors are
41-63 to be elected. In establishing the precincts the commission shall
41-64 attempt to have directors represent geographic areas with equal
41-65 numbers of people and shall comply with the federal Voting Rights
41-66 Act of 1965 (42 U.S.C. Sections 1971, 1973 et seq.). Thereafter,
41-67 the board of directors of the district shall revise the precincts
41-68 from time to time to cause them to comply with the provisions of
41-69 this subsection.
41-70 Sec. 59.022. ABILITY TO SET RATES. The district may charge
42-1 rates to persons and entities located outside the district's
42-2 boundaries on terms, rates, and charges the board of directors may
42-3 determine to be advisable. In setting rates for out-of-district
42-4 customers, the board shall set rates sufficient to enable it to
42-5 meet operation and maintenance expenses and to pay the principal of
42-6 and interest on debt issued in connection with providing service
42-7 and to provide a reasonable reserve for replacements to the
42-8 district. In setting rates, the district may take into
42-9 consideration past operation and debt service expenses.
42-10 Sec. 59.023. ISSUANCE OF BONDS. The district may issue
42-11 bonds for the purpose of purchasing, constructing, acquiring,
42-12 owning, operating, repairing, improving, or extending any district
42-13 works, improvements, facilities, plants, equipment, and appliances
42-14 needed to accomplish the purposes of the district, including works,
42-15 improvements, facilities, plants, equipment, and appliances needed
42-16 to provide a waterworks system, sanitary sewer system, storm sewer
42-17 system, solid waste disposal system, and parks and recreational
42-18 facilities. Prior to issuing bonds or other obligations, a
42-19 confirmation election must be held in accordance with Chapter 49,
42-20 and a majority of voters must approve the establishment of the
42-21 district.
42-22 Sec. 59.024. EXCLUSION OF CERTAIN MUNICIPAL DISTRICTS.
42-23 (a) A municipal district may be excluded from the district as
42-24 provided by this section.
42-25 (b) To be excluded, the board of directors of the municipal
42-26 district may adopt a resolution requesting exclusion by a majority
42-27 vote of its board of directors and shall file the petition with the
42-28 directors of the proposed district before the first confirmation
42-29 election.
42-30 (c) At the time of the district's confirmation election, a
42-31 separate voting precinct shall be used for the qualified voters in
42-32 each municipal district that has filed a petition requesting
42-33 exclusion. The votes in each precinct shall be tallied separately
42-34 to determine whether that municipal district will be excluded from
42-35 the district boundaries.
42-36 (d) If a majority of the votes cast in a municipal district
42-37 requesting exclusion vote against confirmation of the district, the
42-38 votes cast in the confirmation election shall not be counted for
42-39 the confirmation election, bond election, or maintenance tax
42-40 election, and that municipal district must be excluded from the
42-41 boundaries of the district by the board of directors of the
42-42 district at the time the results of the election are canvassed.
42-43 (e) After a confirmation election at which the district is
42-44 authorized to be created, the board of directors of the district
42-45 shall adopt an order redefining the boundaries of the district to
42-46 exclude those municipal districts petitioning for exclusion that
42-47 have voted not to confirm creation of the district.
42-48 (f) Before the creation hearing, any municipal district
42-49 located within the proposed district may petition the commission
42-50 for a separate voting precinct to be used within the boundaries of
42-51 the petitioning district at the time of the district's confirmation
42-52 election. If the commission grants the petition requesting a
42-53 separate voting precinct, Subsections (c) through (e) apply.
42-54 Sec. 59.025. CONFIRMATION ELECTION. (a) Before a district
42-55 may be created pursuant to a petition granted by the commission, a
42-56 confirmation election must be held within the boundaries of the
42-57 proposed district.
42-58 (b) The directors appointed by the commission shall call and
42-59 hold the confirmation election in the manner provided for
42-60 conducting elections under Chapter 49. The provisions of those
42-61 sections relating to a directors election do not apply to an
42-62 election held under this section.
42-63 (c) If the creation of the district is defeated, subsequent
42-64 confirmation elections may not be held to confirm the creation of
42-65 the district.
42-66 (d) A bond election, maintenance tax election, and any other
42-67 election may be held at the same time and in conjunction with a
42-68 confirmation election.
42-69 (Sections 59.026 to 59.050 reserved for expansion
42-70 SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
43-1 Sec. 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
43-2 LANDOWNERS. In addition to the method of adding land to a district
43-3 described in Section 59.052, defined areas of land, regardless of
43-4 whether they are contiguous to the district, may be annexed to the
43-5 district in the manner provided in Chapter 49.
43-6 Sec. 59.052. FILING OF PETITION. A petition requesting the
43-7 annexation of a defined area that is signed by a majority in value
43-8 of the owners of land in the defined area, as shown by the tax
43-9 rolls of the county or counties in which that area is located, that
43-10 is signed by 50 landowners if the number of landowners is more than
43-11 50, that is signed by the single landowner of 2,000 or more acres
43-12 of land in the area, or that is signed by a majority of the
43-13 governing body of a municipal district, a county, or a city
43-14 requesting annexation shall be filed with the secretary of the
43-15 board.
43-16 Sec. 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
43-17 BONDS. (a) If the board considers it advisable before the
43-18 issuance of any bonds, the board may dissolve the district and
43-19 liquidate the affairs of the district as provided by Sections
43-20 54.734 through 54.738.
43-21 (b) If a majority of the board finds at any time before the
43-22 authorization of bonds that the proposed district and its proposed
43-23 activities are for any reason impracticable or apparently cannot be
43-24 successfully and beneficially accomplished, the board may issue
43-25 notice of a hearing on a proposal to dissolve the district.
43-26 Sec. 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
43-27 order to dissolve the district may be judicially reviewed as
43-28 provided in Chapter 49.
43-29 (Sections 59.055 to 59.070 reserved for expansion
43-30 SUBCHAPTER D. MISCELLANEOUS
43-31 Sec. 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) If a
43-32 city annexes all or any part of the territory within a district, or
43-33 incorporates all or any part of any territory within a district,
43-34 the city shall succeed to the powers, duties, assets, and
43-35 obligations of the district as provided by this chapter.
43-36 (b) On annexation of any part of the territory of a district
43-37 by a city or incorporation by a city of any part of the territory
43-38 of a district, the city shall assume a pro rata share of all debt
43-39 of the district payable in whole or in part by ad valorem taxes
43-40 incurred for water, sewer, or drainage purposes or any combination
43-41 of the three purposes. The percentage of the assumption shall be
43-42 determined by multiplying the total debt of the district payable in
43-43 whole or in part from taxes incurred for the stated purposes by a
43-44 fraction, the numerator of which is the assessed value of the
43-45 property to be annexed or incorporated based on the most recent
43-46 certified county property tax rolls at the time of annexation or
43-47 incorporation and the denominator of which is the total assessed
43-48 value of the property of the district based on the most recent
43-49 certified county property tax rolls at the time of annexation or
43-50 incorporation.
43-51 (c) After annexation by a city of a portion of the territory
43-52 of a district or incorporation over any part of the territory of a
43-53 district, the district may not levy taxes on that territory, and
43-54 the territory is no longer considered a part of the district for
43-55 any purpose.
43-56 (d) If any district's debt payable in whole or in part from
43-57 ad valorem taxes is assumed by a city, the governing body of the
43-58 city shall levy and cause to be collected taxes on all taxable
43-59 property within the city or provide other funds sufficient to pay
43-60 the city's pro rata share of the principal of and interest on that
43-61 debt as it becomes due and payable.
43-62 (e) If a city annexes or incorporates the entire territory
43-63 of the district, the district shall be dissolved in accordance with
43-64 Sections 43.074, 43.075, and 43.081, Local Government Code, if the
43-65 district is located in one city or Sections 43.076 through 43.079,
43-66 Local Government Code, if the district is located in more than one
43-67 city.
43-68 (f) Section 43.071, Local Government Code, does not apply to
43-69 the annexation of a district created pursuant to this chapter.
43-70 Sec. 59.072. OTHER LAWS. (a) This chapter prevails over
44-1 any other law in conflict with or inconsistent with this chapter.
44-2 (b) Except as specifically provided by this chapter, Chapter
44-3 49 and Sections 54.018, 54.019(a), (b), (c), and (d), 54.020,
44-4 54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208, 54.502
44-5 through 54.505, 54.507(b) and (c), 54.510 through 54.512, 54.514,
44-6 54.515, 54.518, 54.520, 54.521, 54.601 through 54.604, and 54.735
44-7 through 54.737 apply under this chapter.
44-8 (c) Section 54.019(e) does not apply to a district governed
44-9 by this chapter.
44-10 SECTION 4. Subsection (a), Section 51.0711, Water Code, is
44-11 amended to read as follows:
44-12 (a) The governing body of a municipality that enters a
44-13 contract or agreement with a district located in more than one
44-14 county to jointly construct, acquire, operate, or maintain a
44-15 regional wastewater system is entitled to appoint a special
44-16 director to the board of the district. Section 51.072 <of this
44-17 code> does not apply to a special director.
44-18 SECTION 5. Section 51.072, Water Code, is amended to read as
44-19 follows:
44-20 Sec. 51.072. QUALIFICATIONS FOR DIRECTOR. To be qualified
44-21 for election as a director, a person must be a resident of the
44-22 state, own land subject to taxation in the district, and be at
44-23 least 18 <21> years of age. Section 49.052 does not apply to a
44-24 district governed by this chapter whose principal purpose is
44-25 providing water for irrigation.
44-26 SECTION 6. Subsection (a), Section 51.076, Water Code, is
44-27 amended to read as follows:
44-28 (a) In a district created after June 18, 1967, with
44-29 boundaries coterminous with the boundaries of a county, the
44-30 commissioners court may provide in the order granting the petition
44-31 for creation that the directors are to be selected either as
44-32 provided in Section 49.102 <51.073 of this code> or by the
44-33 "commissioners precinct method," which provides for the election of
44-34 two directors from each commissioners precinct in the county and
44-35 the election of one director from the county at large.
44-36 SECTION 7. Subsection (d), Section 51.750, Water Code, is
44-37 amended to read as follows:
44-38 (d) The temporary directors of each of the resulting
44-39 districts must qualify as directors of the district pursuant to
44-40 Section <Sections> 51.072 <and 51.073 of this code> within the
44-41 period of 90 days after the election approving the division of the
44-42 original district and shall assume their offices at the expiration
44-43 of the 90-day period.
44-44 SECTION 8. Section 52.005, Water Code, is amended by adding
44-45 Subsection (c) to read as follows:
44-46 (c) Sections 49.052, 49.216, and 49.301 through 49.308 do
44-47 not apply to districts governed by this chapter.
44-48 SECTION 9. Section 52.115, Water Code, is amended to read as
44-49 follows:
44-50 Sec. 52.115. MEETINGS. <(a)> The board shall hold regular
44-51 quarterly meetings. It may hold meetings at other times as
44-52 required for the business of the district.
44-53 <(b) Any person may attend a meeting of the board and may
44-54 present in an orderly manner matters for the board's consideration.>
44-55 <(c) Meetings shall be conducted and notice of meetings
44-56 shall be posted in accordance with the open meetings law, Chapter
44-57 271, Acts of the 60th Legislature, Regular Session, 1967 (Article
44-58 6252-17, Vernon's Texas Civil Statutes).>
44-59 SECTION 10. Subsections (c), (d), and (e), Section 52.294,
44-60 Water Code, are amended to read as follows:
44-61 (c) <Notice of an election must be given as provided by
44-62 Section 52.059(c) of this code for creation elections.>
44-63 <(d)> At an election to authorize bonds or notes payable
44-64 wholly from ad valorem taxes, the ballots must be printed to
44-65 provide for voting for or against the proposition: "The issuance
44-66 of (bonds or notes) and the levy of taxes for payment of the (bonds
44-67 or notes)." At any election to authorize bonds or notes payable
44-68 from both ad valorem taxes and revenues, the ballots must be
44-69 printed to provide for voting for or against: "The issuance of
44-70 (bonds or notes) and the pledge of net revenues and the levy of ad
45-1 valorem taxes adequate to provide for the payment of the (bonds or
45-2 notes)."
45-3 (d) <(e)> The board shall canvass the returns and declare
45-4 the results of the election. If a majority of the votes cast at
45-5 the election favor the issuance of the bonds or notes, the bonds or
45-6 notes may be issued by the board, but if a majority of the votes
45-7 cast at the election do not favor issuance of the bonds or notes,
45-8 the bonds or notes may not be issued.
45-9 SECTION 11. Section 53.040, Water Code, is amended to read
45-10 as follows:
45-11 Sec. 53.040. Elected Supervisors Take Office. If the
45-12 election results in a division of the district, the five candidates
45-13 receiving the most votes in each new district shall be declared
45-14 elected. They shall immediately qualify in accordance with Section
45-15 49.055 <by taking the constitutional oath of office and shall file
45-16 the oath with the county clerk>.
45-17 SECTION 12. Section 53.042, Water Code, is amended to read
45-18 as follows:
45-19 Sec. 53.042. Newly Elected Supervisors--Term of Office. The
45-20 newly elected supervisors hold office until the new district's next
45-21 supervisors election <first general election and then until their
45-22 successors are elected and have qualified>.
45-23 SECTION 13. Section 53.062, Water Code, is amended to read
45-24 as follows:
45-25 Sec. 53.062. Board of Supervisors. A district created under
45-26 this chapter is governed by a board of five elected supervisors.
45-27 <Specific provisions for the election of supervisors are found in
45-28 Section 53.021, Section 53.086, and Section 53.0861 of this code.>
45-29 SECTION 14. Section 53.088, Water Code, is amended to read
45-30 as follows:
45-31 Sec. 53.088. Status of the District. <(a)> A district is:
45-32 (1) a governmental agency;
45-33 (2) a body politic and corporate; and
45-34 (3) a defined district within the meaning of Article
45-35 XVI, Section 59, of the Texas Constitution.
45-36 <(b) A district may, through its board, sue and be sued in
45-37 any court of this state in the name of the district. All courts of
45-38 this state shall take judicial notice of the creation of a
45-39 district. A district shall contract and be contracted with in the
45-40 name of the district.>
45-41 SECTION 15. Section 53.172, Water Code, is amended to read
45-42 as follows:
45-43 Sec. 53.172. Ordering Bond Election. After the creation of
45-44 a district and the qualification of the supervisors, the board may
45-45 order an election in the district to authorize a bond issue. <The
45-46 board shall set the day for the election, which must be held during
45-47 the period beginning on the 20th day and ending with the 30th day
45-48 after the day of the order.> At this election, the board shall
45-49 submit only a proposition authorizing the issuance of bonds and the
45-50 levy of a tax to pay the bonds. The ballots shall be printed to
45-51 allow for voting for or against the proposition: "The issuance of
45-52 bonds and the levy of taxes to pay the bonds."
45-53 SECTION 16. Section 54.025, Water Code, is amended to read
45-54 as follows:
45-55 Sec. 54.025. Qualification of Temporary Directors. After a
45-56 district has been organized, each temporary director shall execute
45-57 a <his> bond in accordance with the provisions of Section 49.055
45-58 <54.116 of this code> and shall take the <his> oath of office, and
45-59 the board shall meet and organize.
45-60 SECTION 17. Section 54.036, Water Code, is amended to read
45-61 as follows:
45-62 Sec. 54.036. Directors to Continue Serving. The existing
45-63 board of a district converted to a municipal utility district under
45-64 the provisions of this chapter shall continue to serve as the board
45-65 of the converted district <until the first Saturday in April
45-66 following conversion of the district, at which time five directors
45-67 shall be elected to serve for such period of time and in the same
45-68 manner as provided in Section 54.029 of this code for directors
45-69 first elected for a district>.
45-70 SECTION 18. Section 54.203, Water Code, is amended to read
46-1 as follows:
46-2 Sec. 54.203. MUNICIPAL Solid Waste. A district is
46-3 authorized to purchase, construct, acquire, own, operate, maintain,
46-4 repair, improve, extend, or establish a municipal solid waste
46-5 collection and disposal system, including recycling, inside and
46-6 outside the district and make proper charges for it. A district
46-7 may require use of such services as a condition for receiving other
46-8 district services. A district may enter into an exclusive contract
46-9 with a private entity to provide such services to all land and
46-10 persons within its boundaries.
46-11 SECTION 19. Subsection (a), Section 54.729, Water Code, is
46-12 amended to read as follows:
46-13 (a) After the board of each district has agreed on the terms
46-14 and conditions of consolidation, which may include the assumption
46-15 by each district of the <other district's> bonds, notes, or other
46-16 obligations and voted but unissued bonds of the other consolidating
46-17 districts payable in whole or in part from taxation, the levy of
46-18 taxes to pay for the bonds, and adoption of a name for the
46-19 consolidated district, the board shall order an election in each
46-20 district to determine whether the districts should be consolidated.
46-21 SECTION 20. Subsection (a), Section 54.730, Water Code, is
46-22 amended to read as follows:
46-23 (a) After two or more districts are consolidated, they
46-24 become one district and are governed as one district, except for
46-25 the payment of debts created before consolidation if the conditions
46-26 of consolidation do not provide for the assumption by each district
46-27 of the <other's> bonds, notes, or other obligations and voted but
46-28 unissued bonds of the other consolidating districts.
46-29 SECTION 21. Section 54.732, Water Code, is amended to read
46-30 as follows:
46-31 Sec. 54.732. ASSESSMENT AND COLLECTION OF TAXES. After
46-32 consolidation, the district shall assess and collect taxes on
46-33 property in the original districts to pay debts created by the
46-34 original districts unless each district has assumed the <other
46-35 district's> bonds, notes, or other indebtedness payable in whole or
46-36 in part from taxation of the other consolidating districts.
46-37 SECTION 22. Section 54.733, Water Code, is amended to read
46-38 as follows:
46-39 Sec. 54.733. VOTED BUT UNISSUED BONDS. In the event any
46-40 consolidating <either> district has voted but unissued bonds
46-41 payable in whole or in part from taxation and the consolidated
46-42 district assumed the voted but unissued bonds and the consolidated
46-43 district was authorized to levy taxes to pay for the bonds, then
46-44 the consolidated district shall be authorized to issue the voted
46-45 but unissued bonds in the name of the consolidated district and
46-46 levy a uniform tax on all taxable property in the consolidated
46-47 district to pay for the bonds.
46-48 SECTION 23. Chapter 54, Water Code, is amended by adding
46-49 Sections 54.739 through 54.747 to read as follows:
46-50 Sec. 54.739. Substituting Land of Equal Acreage and Value.
46-51 After the district is organized and acquires facilities with which
46-52 to function for the purposes for which it was organized, and votes,
46-53 issues and sells bonds for such purposes, land within the district
46-54 boundaries subject to taxation that does not need or utilize the
46-55 services of the district may be excluded and other land not within
46-56 the boundaries of the district may be included within the
46-57 boundaries of the district as provided by the provisions of this
46-58 section and Sections 54.741 through 54.748 subject to commission
46-59 approval.
46-60 Sec. 54.740. Requisites for Application for Exclusion. An
46-61 owner of land in the district not receiving services from the
46-62 district may apply for its exclusion from the district boundaries
46-63 if all taxes levied and assessed by the district on the land to be
46-64 excluded have been fully paid. The application shall set forth
46-65 facts concerning the land proposed for exclusion, including
46-66 evidence of the reasonable market value of the land, and state that
46-67 the other requisites for the exclusion of the land and substitution
46-68 of other land have been fulfilled or will be fulfilled at the
46-69 hearing on the application. The application shall be verified and
46-70 acknowledged in a recordable form as conveyances of real property.
47-1 Sec. 54.741. Inclusion of Substitute Land Required. An
47-2 application for exclusion can only be considered by the board if an
47-3 application is filed by an owner of other land lying outside the
47-4 boundaries of the district seeking inclusion of land that can be
47-5 served in a practical manner by the district of at least equal
47-6 value to the land proposed for exclusion. Such land must be
47-7 included within the district boundaries and taxing jurisdiction of
47-8 the district simultaneously with the exclusion of the land proposed
47-9 for exclusion. Such included land must be of sufficient acreage to
47-10 avoid an impairment of the security for payment of voted and issued
47-11 bonds and any other contract obligations payable or secured, in
47-12 whole or in part, from ad valorem taxes or revenues of the
47-13 district.
47-14 Sec. 54.742. Application for Inclusion. The application
47-15 submitted by an owner of land proposed for inclusion shall set
47-16 forth that the owner of the new land assumes the payment of all
47-17 taxes, assessments, and fees levied on the land and assessed by the
47-18 district after the date the land is included in the district. The
47-19 application shall also set forth an agreement by the owner of the
47-20 land proposed for inclusion that the land will be subject to future
47-21 taxes for bond tax and other assessments and fees levied and
47-22 assessed by the district and be subject to the same liens and
47-23 provisions and statutes governing all other lands in the district
47-24 as though the land had been incorporated originally in the
47-25 district. The application for inclusion shall be verified and
47-26 acknowledged in a recordable form as conveyances of real property.
47-27 Sec. 54.743. Notice of Hearing and Hearing Procedures. The
47-28 board shall give notice of the hearing on the applications for
47-29 exclusion and inclusion in conformity with the notice and hearing
47-30 requirements otherwise applicable to exclusions or additions of
47-31 land. The board at such hearing shall hear all interested parties
47-32 and all evidence in connection with the applications.
47-33 Sec. 54.744. Impairment of Security. For purposes of the
47-34 board's consideration of the applications, the lands proposed for
47-35 inclusion shall be deemed to be sufficient to avoid an impairment
47-36 of the security for payment of obligations of the district if:
47-37 (1) according to the county tax rolls, the taxable
47-38 value of such included lands equals or exceeds the taxable value of
47-39 the excluded lands;
47-40 (2) the estimated costs of providing district
47-41 facilities and services to such included lands is equal to or less
47-42 than the estimated costs of providing district facilities and
47-43 services to the excluded lands; and
47-44 (3) the district's outstanding bonds or contract
47-45 obligations are payable in whole or in part by a pledge of net
47-46 revenues from the ownership or operation of the district's
47-47 facilities, and the projected net revenues to be derived from the
47-48 lands to be included during the succeeding 12-month period, as
47-49 determined by the district's engineer, equals or exceeds the
47-50 projected net revenues that would otherwise have been derived from
47-51 the lands to be excluded during the same period.
47-52 Sec. 54.745. Board's Resolution to Substitute. If the board
47-53 finds that all the conditions provided for the exclusion of land
47-54 and inclusion of other land in the district exist and that it is in
47-55 the best interest of the district to grant such applications, it
47-56 may adopt and enter in its minutes a resolution and order excluding
47-57 all or part of the land proposed for exclusion and including all or
47-58 part of the land proposed for inclusion. Prior to the effective
47-59 date of the exclusion and inclusion of lands, the district shall
47-60 have received payment of all fees, charges, assessments, taxes,
47-61 together with any associated penalties and interest due or overdue
47-62 in respect to the lands excluded, and if no ad valorem taxes or
47-63 fees have yet been established by the district for the current
47-64 year, an amount determined by the district to equal the estimated
47-65 ad valorem taxes and standby fees to be established by the district
47-66 for the current year, prorated to the date of exclusion with
47-67 respect to such excluded lands, shall also be paid.
47-68 Sec. 54.746. Liability of Excluded and Included Land. The
47-69 land excluded from the district is free from any lien or liability
47-70 created on the excluded land by reason of its having been included
48-1 in the district. Land included in the district is subject to all
48-2 laws, liens, and provisions governing the district and the land in
48-3 the district.
48-4 Sec. 54.747. Service to Included Land. The district has the
48-5 same right and obligation to furnish services to the included land
48-6 that it previously had to furnish to the excluded land.
48-7 SECTION 24. Section 55.101, Water Code, is amended to read
48-8 as follows:
48-9 Sec. 55.101. Board of Directors. The governing body of a
48-10 district is a <the> board of five directors.
48-11 SECTION 25. Section 55.102, Water Code, is amended to read
48-12 as follows:
48-13 Sec. 55.102. Qualifications of Directors. To be qualified
48-14 for election as a director, a person must be a resident of the
48-15 state, own land subject to taxation in the district, and be at
48-16 least 18 <more than 21> years of age at the time of the election.
48-17 Section 49.052 does not apply to a district governed by this
48-18 chapter whose principal purpose is providing water for irrigation.
48-19 SECTION 26. Section 55.721, Water Code, is amended to read
48-20 as follows:
48-21 Sec. 55.721. Exclusion of Nonagricultural and Nonirrigable
48-22 Land From District. Land located in the district which is
48-23 classified as nonagricultural and nonirrigable may be excluded from
48-24 the district in the manner provided in Subchapter J, Chapter 49
48-25 <Sections 51.702-51.713 of this code>.
48-26 SECTION 27. Section 56.064, Water Code, is amended to read
48-27 as follows:
48-28 Sec. 56.064. Election of Directors. (a) On petition of a
48-29 majority of the real property taxpayers of a district requesting an
48-30 election of district directors, the commissioners court shall
48-31 immediately order an election to be held at the earliest legal
48-32 time. The election shall be held as other elections under Chapter
48-33 49 <this chapter>.
48-34 (b) <The commissioners court shall declare the three persons
48-35 receiving the highest number of votes elected, and if two or more
48-36 persons tie for the third highest vote, the commissioners court
48-37 shall elect the third director from those tying for the place.>
48-38 <(c) On qualifying for office, directors elected under this
48-39 section are the legal and rightful directors of the district within
48-40 the full meaning and purpose of this law.>
48-41 <(d) The first elected directors of the district hold office
48-42 until the next regular directors' election, and subsequent
48-43 directors of the district are elected every four years except as
48-44 provided by Subsection (e) of this section.>
48-45 <(e)> The first elected directors of the districts in
48-46 Calhoun, Matagorda, and Victoria Counties hold office until May 15
48-47 of the next succeeding odd-numbered year. Subsequent directors of
48-48 the district are elected every two years on the first Saturday in
48-49 May in each odd-numbered year, for a term of two years beginning on
48-50 May 15 following the election.
48-51 SECTION 28. Section 57.053, Water Code, is amended to read
48-52 as follows:
48-53 Sec. 57.053. Term of Office, Removal, and Succession.
48-54 (a) <Each director shall hold office for a period of two years and
48-55 until his successor is appointed and has qualified.>
48-56 <(b)> A vacancy on the board shall be filled by majority
48-57 vote of the commissioners court <of jurisdiction>, and the court
48-58 shall appoint directors so that the board will always have full
48-59 membership.
48-60 (b) <(c)> The commissioners court <of jurisdiction>, by
48-61 majority vote, may remove an appointed <a> member of the board.
48-62 SECTION 29. Section 57.060, Water Code, is amended to read
48-63 as follows:
48-64 Sec. 57.060. Petition. Before an election is held under
48-65 Section 57.057 <of this code>, a petition, signed by at least 100
48-66 <25> electors in the district <each county commissioners precinct>
48-67 who are qualified to vote <at an election for directors if a
48-68 countywide election, or by 50 electors if less than countywide>,
48-69 shall be presented to the district <county judge> requesting that
48-70 an election be held in the district to determine whether or not
49-1 directors for the district should be elected and, if so, to elect
49-2 directors to serve until the next regular director election <for
49-3 state and county officers>. The petition shall include the name of
49-4 one or more nominees for each director's position.
49-5 SECTION 30. Section 57.061, Water Code, is amended to read
49-6 as follows:
49-7 Sec. 57.061. Procedure for Election. <(a)> After the
49-8 petition is presented under Section 57.060 <of this code>, the
49-9 board <county judge> shall order an election <to determine the
49-10 propositions presented in the petition. The election shall be held
49-11 not less than 30 days from the date of the order calling the
49-12 election, or the propositions may be determined at a general
49-13 election>.
49-14 <(b) The election order shall designate the polling places
49-15 which shall be the same as the polling places used in the last
49-16 general election in the county, if a countywide election is held.>
49-17 <(c) The county clerk shall issue notice of the election and
49-18 shall have the notice published in a newspaper of general
49-19 circulation in the county once a week for two consecutive weeks.
49-20 The first publication must be not less than 14 days before the day
49-21 of the election.>
49-22 <(d) The sheriff shall post a copy of the notice at least 20
49-23 days before the day of the election at each polling place
49-24 designated in the election order.>
49-25 <(e) The district shall pay all expenses incident to calling
49-26 and holding the election.>
49-27 SECTION 31. Section 57.207, Water Code, is amended to read
49-28 as follows:
49-29 Sec. 57.207. Declaring Result of Election.
49-30 <(a) Immediately after an election under this chapter, the
49-31 officials holding the election shall return the result to the
49-32 commissioners court of jurisdiction.>
49-33 <(b) The election officials shall return the ballot boxes to
49-34 the clerk of the commissioners court of jurisdiction, who shall
49-35 safely keep the boxes and deliver them with the returns of the
49-36 election to the commissioners court of jurisdiction at its next
49-37 regular or special session.>
49-38 <(c) The commissioners court of jurisdiction at its first
49-39 session after the election shall canvass the vote and the returns.
49-40 If the proposition submitted has been approved by a majority of the
49-41 electors of the district voting at the election, the commissioners
49-42 court of jurisdiction shall declare the result in favor of the
49-43 proposition, but if the proposition is not approved by the electors
49-44 of the district, the commissioners court of jurisdiction shall
49-45 declare the result to be against the proposition.>
49-46 <(d)> The board <commissioners court of jurisdiction> shall
49-47 enter an order declaring the election result in its minutes.
49-48 SECTION 32. Section 58.072, Water Code, is amended to read
49-49 as follows:
49-50 Sec. 58.072. QUALIFICATIONS. To be qualified for election
49-51 as a director, a person must be a resident of the state, be the
49-52 owner of record of fee simple title to land in the district, <and>
49-53 be at least 18 years of age, and owe no delinquent taxes or
49-54 assessments to the district. Section 49.052 does not apply to a
49-55 district governed by this chapter.
49-56 SECTION 33. Subchapter A, Chapter 60, Water Code, is amended
49-57 by adding Section 60.002 to read as follows:
49-58 Sec. 60.002. AUDIT. Subchapter G, Chapter 49, related to
49-59 audit of districts, shall apply to districts governed by this
49-60 chapter.
49-61 SECTION 34. Subchapter M, Chapter 60, Water Code, is amended
49-62 by adding Section 60.350 to read as follows:
49-63 Sec. 60.350. BONDS. Section 49.181, related to the
49-64 authority of commission over issuance of district bonds, and
49-65 Section 49.183, related to bond sales, shall apply to bonds
49-66 supported by taxes and issued by districts governed by this
49-67 chapter.
49-68 SECTION 35. Section 65.103, Water Code, is amended to read
49-69 as follows:
49-70 Sec. 65.103. Election of Directors; Terms of Office.
50-1 (a) The persons receiving the highest number of votes at each
50-2 election shall serve as directors of the district.
50-3 (b) The terms of the directors may run concurrently, or may
50-4 be staggered, but in any event, the term of office of a director
50-5 may not exceed three years.
50-6 (c) The method for determining the initial terms for each of
50-7 the directors constituting the initial board shall be determined by
50-8 the temporary directors, and the terms must be clearly stated on
50-9 the ballot for the confirmation and directors' election. At
50-10 subsequent elections in each following year in which there is an
50-11 election, the election must be held on the same uniform election
50-12 date as the confirmation and directors' election, and the terms of
50-13 the directors being elected must be stated on the ballot.
50-14 <(d) The election of directors must be held in a district on
50-15 one of the dates provided by Section 9b, Texas Election Code
50-16 (Article 2.01b, Vernon's Texas Election Code).>
50-17 <(e) The permanent directors may assign a position number to
50-18 each director's office, and each director subsequently shall be
50-19 elected by position and not at large.>
50-20 SECTION 36. Chapter 65, Water Code, is amended by adding
50-21 Section 65.235 to read as follows:
50-22 Sec. 65.235. Prohibition on Assessment or Collection of
50-23 Taxes. Section 49.107 does not apply to a district created under
50-24 this chapter.
50-25 SECTION 37. Section 66.101, Water Code, is amended to read
50-26 as follows:
50-27 Sec. 66.101. Board of Directors. A district shall be
50-28 governed by a board of directors composed of five members, who are
50-29 elected as provided in Chapter 49 <by this chapter>.
50-30 SECTION 38. Subsection (b), Section 66.310, Water Code, is
50-31 amended to read as follows:
50-32 (b) Bonds issued by a district and projects and improvements
50-33 of the district that are provided through the issuance of bonds are
50-34 governed by Chapter 49 <Sections 54.516 and 54.517 of this code>.
50-35 SECTION 39. Chapter 50, Water Code, is repealed, except that
50-36 Subchapter H is continued in effect for the sole purpose of the
50-37 administration and operation of contracts created or issued under
50-38 those laws.
50-39 SECTION 40. The following sections of Chapter 51, Water
50-40 Code, are repealed: Sections 51.033, 51.034, 51.073 through
50-41 51.074, 51.077 through 51.084, 51.0851, 51.087 through 51.089,
50-42 51.091 through 51.101, 51.122 through 51.124, 51.126, 51.131,
50-43 51.132, 51.136 through 51.138, 51.140 through 51.146, 51.149,
50-44 51.183, 51.191 through 51.193, 51.221 through 51.224, 51.231
50-45 through 51.279, 51.354 through 51.363, 51.371 through 51.374,
50-46 51.412, 51.416 through 51.418, 51.421, 51.422, 51.4321, 51.4371,
50-47 51.691 through 51.701, 51.714 through 51.731, and 51.737 through
50-48 51.747.
50-49 SECTION 41. The following sections of Chapter 52, Water
50-50 Code, are repealed: Sections 52.104, 52.107 through 52.114, 52.116
50-51 through 52.118, 52.119 through 52.121, 52.157, 52.251 through
50-52 52.253, 52.259 through 52.262, and 52.297.
50-53 SECTION 42. The following sections of Chapter 53, Water
50-54 Code, are repealed: Sections 53.020, 53.022, 53.023, 53.025
50-55 through 53.028, 53.035 through 53.039, 53.064, 53.065, 53.067
50-56 through 53.070, 53.0721, 53.076, 53.077, 53.084 through 53.087,
50-57 53.089, 53.090, 53.105, 53.106, 53.108 through 53.111, 53.114,
50-58 53.117 through 53.120, 53.123 through 53.125, 53.141 through
50-59 53.144, 53.147, 53.148, 53.173 through 53.175, 53.1791, 53.197,
50-60 53.198, and 53.231 through 53.273.
50-61 SECTION 43. The following sections of Chapter 54, Water
50-62 Code, are repealed: Sections 54.026 through 54.029, 54.103 through
50-63 54.126, 54.202, 54.204, 54.209 through 54.233, 54.301 through
50-64 54.312, 54.506, 54.507(a), 54.509, 54.5121, 54.513, 54.516, 54.517,
50-65 54.519, 54.701 through 54.727.
50-66 SECTION 44. The following sections of Chapter 55, Water
50-67 Code, are repealed: Sections 55.030, 55.033 through 55.036,
50-68 55.052, 55.104 through 55.106, 55.109, 55.111 through 55.116,
50-69 55.118 through 55.128, 55.162, 55.164, 55.168 through 55.184,
50-70 55.189 through 55.191, 55.199, 55.203, 55.252, 55.291 through
51-1 55.304, 55.331, 55.423 through 55.430, 55.451, 55.453, 55.492
51-2 through 55.496, 55.503, 55.506, 55.711 through 55.720, and 55.722
51-3 through 55.749.
51-4 SECTION 45. The following sections of Chapter 56, Water
51-5 Code, are repealed: Sections 56.027 through 56.031, 56.062,
51-6 56.063, 56.065 through 56.068, 56.076 through 56.081, 56.083,
51-7 56.113, 56.114, 56.119, 56.129 through 56.134, 56.136, 56.138,
51-8 56.139, 56.183, 56.184, 56.2045, and 56.714 through 56.725.
51-9 SECTION 46. The following sections of Chapter 57, Water
51-10 Code, are repealed: Sections 57.052, 57.054 through 57.056, 57.062
51-11 through 57.070, 57.095 through 57.099, 57.106, 57.107, 57.109,
51-12 57.110, 57.112 through 57.115, 57.119, 57.120, 57.171 through
51-13 57.174, 57.178, 57.202 through 57.206, 57.2075, 57.209 through
51-14 57.211, and 57.276 through 57.278.
51-15 SECTION 47. The following sections of Chapter 58, Water
51-16 Code, are repealed: Sections 58.033, 58.034, 58.073, 58.074
51-17 through 58.083, 58.085 through 58.088, 58.090 through 58.100,
51-18 58.123, 58.124, 58.131, 58.132, 58.135, 58.139 through 58.149,
51-19 58.151, 58.152, 58.169, 58.179, 58.187 through 58.189, 58.221
51-20 through 58.224, 58.261, 58.317, 58.354 through 58.362, 58.442,
51-21 58.451, 58.452, 58.601, 58.691 through 58.701, and 58.714 through
51-22 58.725.
51-23 SECTION 48. The following sections of Chapter 65, Water
51-24 Code, are repealed: Sections 65.024 through 65.029, 65.104 through
51-25 65.122, 65.202, 65.204, 65.209 through 65.234, 65.301, 65.401
51-26 through 65.409, 65.509, 65.512, 65.514, and 65.701 through 65.722.
51-27 SECTION 49. The following sections of Chapter 66, Water
51-28 Code, are repealed: Sections 66.022 through 66.029, 66.103 through
51-29 66.117, 66.119, 66.120, 66.203 through 66.205, 66.208 through
51-30 66.215, 66.301, 66.302, 66.305 through 66.309, 66.312, and 66.323.
51-31 SECTION 50. (a) This Act takes effect as provided by this
51-32 section.
51-33 (b) Subsection (b), Section 49.103, Water Code, as added by
51-34 this Act, shall govern all elections held after December 31, 1995.
51-35 Directors elected at any election held between January 1, 1992, and
51-36 April 30, 1992, shall serve until the January, 1996, election.
51-37 Directors elected at any election held between May 1, 1992, and
51-38 December 31, 1992, shall serve until the May, 1996, election.
51-39 Directors elected at any election held between January 1, 1993, and
51-40 April 30, 1993, shall serve until the January, 1996, election.
51-41 Directors elected at any election held between May 1, 1993, and
51-42 July 31, 1993, shall serve until the May, 1996, election.
51-43 Directors elected at any election held between August 1, 1993, and
51-44 December 31, 1993, shall serve until the May, 1998, election.
51-45 Directors elected at any election held between January 1, 1994, and
51-46 April 30, 1994, shall serve until the January, 1998, election.
51-47 Directors elected at any election held between May 1, 1994, and
51-48 December 31, 1994, shall serve until the May, 1998, election.
51-49 Directors elected at any election held between January 1, 1995, and
51-50 April 30, 1995, shall serve until the January, 1998, election.
51-51 Directors elected at any election held between May 1, 1995, and
51-52 July 31, 1995, shall serve until the May, 1998, election.
51-53 Directors elected at any election held between August 1, 1995, and
51-54 December 31, 1995, shall serve until the May, 1998, election.
51-55 Directors whose terms expire prior to the election date set by this
51-56 section shall continue to serve until their successors have been
51-57 elected and qualified.
51-58 (c) All other provisions of this Act take effect September
51-59 1, 1995.
51-60 SECTION 51. The importance of this legislation and the
51-61 crowded condition of the calendars in both houses create an
51-62 emergency and an imperative public necessity that the
51-63 constitutional rule requiring bills to be read on three several
51-64 days in each house be suspended, and this rule is hereby suspended,
51-65 and that this Act take effect and be in force according to its
51-66 terms, and it is so enacted.
51-67 * * * * *