By Sibley S.B. No. 1944
75R10269 JMC-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, administration, powers, duties,
1-3 operation, and financing of the Parker County Utility District No.
1-4 1; granting the power of eminent domain.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. CREATION OF THE DISTRICT
1-7 SECTION 1.01. CREATION. (a) A regional wastewater
1-8 district, to be known as the Parker County Utility District No. 1,
1-9 is created. The district is a governmental agency and a body
1-10 politic and corporate.
1-11 (b) The district is created under and is essential to
1-12 accomplish the purposes of Section 59, Article XVI, Texas
1-13 Constitution.
1-14 SECTION 1.02. DEFINITIONS. In this Act:
1-15 (1) "Board" means the board of directors of the
1-16 district.
1-17 (2) "Bond" means all interest-bearing obligations,
1-18 including bonds, notes, debentures, certificates, warrants,
1-19 securities, interim certificates or receipts, and other evidences
1-20 of debt issued by the district, whether general or special,
1-21 negotiable or nonnegotiable in form, in bearer or registered form,
1-22 temporary or permanent in form, or with or without interest
1-23 coupons.
1-24 (3) "Customer" means a wholesale user of wastewater or
2-1 other services provided by the district.
2-2 (4) "Director" means a member of the board.
2-3 (5) "District" means the Parker County Utility
2-4 District No. 1.
2-5 (6) "Local government" means a municipality, county,
2-6 or entity created under Section 52, Article III, or Section 59,
2-7 Article XVI, Texas Constitution.
2-8 (7) "Member entity" means a public entity or private
2-9 utility entity that:
2-10 (A) provides retail utility service or regulates
2-11 water, wastewater, sewage, or solid waste within the district; and
2-12 (B) enters into a contract with the district for
2-13 service.
2-14 (8) "Participant entity" means a public entity or
2-15 private utility entity that:
2-16 (A) provides utility service within the
2-17 boundaries of the entity; and
2-18 (B) enters into a contract with the district for
2-19 the construction of and payment for wastewater or other utility
2-20 service projects to be financed or provided by the district.
2-21 (9) "Person" means an individual, firm, association,
2-22 corporation, business trust, partnership, government or
2-23 governmental agency, joint venture, or other legal entity.
2-24 (10) "Service area" means the territory within the
2-25 district and within the corporate limits or defined boundaries of
2-26 all member entities, participant entities, and customers of the
2-27 district, including the areas served by the member entities,
3-1 participant entities, and customers.
3-2 SECTION 1.03. PURPOSES. The district is created to
3-3 accomplish the following purposes:
3-4 (1) to purchase, own, hold, lease, or otherwise
3-5 acquire wastewater collection facilities;
3-6 (2) to build, operate, and maintain facilities to
3-7 treat and transport wastewater;
3-8 (3) to protect, preserve, and restore the purity and
3-9 sanitary condition of water within the district; and
3-10 (4) to provide other utilities within the district if
3-11 the utilities are not otherwise provided.
3-12 SECTION 1.04. BOUNDARIES. The district includes the
3-13 territory contained within the following area:
3-14 BEGINNING at a point in the centerline of Highway 51; said point
3-15 being approximately 31,500 feet north along the centerline of
3-16 Highway 51 from the centerline intersection of Highway 199, said
3-17 point also being in the northern boundary line for the Walnut Creek
3-18 Special Utility District (WCSUD);
3-19 1. THENCE North 90 East, 8200 Feet along the WCSUD boundary;
3-20 2. THENCE South 00 East, 9800 Feet along the WCSUD boundary;
3-21 3. THENCE North 90 East, 6100 Feet along the WCSUD boundary;
3-22 4. THENCE South 00 East, 6700 Feet along the WCSUD boundary;
3-23 5. THENCE North 90 East, 1300 Feet along the WCSUD boundary;
3-24 6. THENCE South 00 East, 992.04 Feet along the WCSUD boundary to a
3-25 point of divergence;
3-26 7. THENCE South 8922'10" East, 20491.62 Feet;
3-27 8. THENCE South 0052'05" East, 26624.35 Feet;
4-1 9. THENCE South 8929'51" West, 215.45 Feet;
4-2 10. THENCE South 0030'09" East, 1930.51 Feet;
4-3 11. THENCE South 8929'51" West, 4703.61 Feet;
4-4 12. THENCE South 0030'09" East, 3134.46 Feet;
4-5 13. THENCE South 8929'51" West, 1041.52 Feet;
4-6 14. THENCE North 7455'09" West, 4870.79 Feet;
4-7 15. THENCE North 6402'36" West, 122.68 Feet;
4-8 16. THENCE South 0030'09" East, 2550.47 Feet;
4-9 17. THENCE South 8929'51" West, 1262.75 Feet to a point in the
4-10 boundary of WCSUD;
4-11 18. THENCE South 00 East, 4103.65 Feet along the WCSUD boundary;
4-12 19. THENCE North 90 West, 45600 Feet along the WCSUD boundary;
4-13 20. THENCE North 00 East, 12400 Feet along the WCSUD boundary;
4-14 21. THENCE North 90 West, 14,200 Feet along the WCSUD boundary;
4-15 22. THENCE North 00 East, 36500 Feet along the WCSUD boundary;
4-16 23. THENCE North 90 East, 25500 Feet along the WCSUD boundary;
4-17 24. THENCE North 00 East, 5900 Feet along the WCSUD boundary;
4-18 25. THENCE North 90 East, 9775.84 Feet to the POINT OF BEGINNING
4-19 and containing 70,490 gross acres more or less. Save and except
4-20 CCN areas numbered 10266, 10285, 12397 (except for dually
4-21 certificated portion), 11719 and 12427.
4-22 SECTION 1.05. FINDINGS RELATING TO BOUNDARIES. The
4-23 legislature finds that the boundaries and field notes of the
4-24 district form a closure. A mistake in the field notes or in
4-25 copying the field notes in the legislative process does not affect
4-26 the organization, existence, or validity of the district, or the
4-27 legality or operation of the district or its governing body.
5-1 SECTION 1.06. FINDING OF BENEFIT. All of the land and other
5-2 property included within the boundaries of the district will be
5-3 benefited by the improvements, works, and projects that are to be
5-4 accomplished by the district under the powers conferred by this Act
5-5 and under Section 59, Article XVI, Texas Constitution.
5-6 SECTION 1.07. FINDING OF STATE BENEFIT. The legislature
5-7 finds that creation of the district will benefit the state by:
5-8 (1) contributing to economic development and
5-9 diversification;
5-10 (2) decreasing the rate of unemployment and
5-11 underemployment;
5-12 (3) stimulating agricultural innovation;
5-13 (4) fostering enterprise growth based on agriculture;
5-14 and
5-15 (5) contributing to the development or expansion of
5-16 transportation and commerce.
5-17 SECTION 1.08. POWERS. (a) Except as provided by this
5-18 section, the district has all of the rights, powers, privileges,
5-19 authority, functions, and duties provided by the general law of
5-20 this state, including Chapters 49, 54, and 65, Water Code, and
5-21 conferred by Section 59, Article XVI, Texas Constitution. This Act
5-22 prevails over any provision of general law that is in conflict or
5-23 inconsistent with this Act.
5-24 (b) The district may not levy or collect ad valorem taxes.
5-25 (c) The rights, powers, privileges, authority, functions,
5-26 and duties of the district are subject to the continuing right of
5-27 supervision of the state to be exercised by and through the Texas
6-1 Natural Resource Conservation Commission. Except as provided by
6-2 this Act or other state law, the district may exercise the rights,
6-3 powers, privileges, authority, functions, and duties conferred by
6-4 this Act without having to obtain approval from the Texas Natural
6-5 Resource Conservation Commission.
6-6 SECTION 1.09. CONFIRMATION ELECTION NOT REQUIRED. Creation
6-7 of the district does not require a confirmation election.
6-8 ARTICLE 2. ADMINISTRATIVE PROVISIONS
6-9 SECTION 2.01. APPOINTMENT OF DIRECTORS. (a) The district
6-10 is governed by a board of directors as provided by this section.
6-11 (b) The governing bodies of the City of Springtown and the
6-12 Walnut Creek Special Utility District shall each appoint three
6-13 initial directors.
6-14 (c) Initial directors serve until permanent directors
6-15 appointed under Subsection (e) of this section take office.
6-16 (d) The Parker County judge, or a person designated by the
6-17 Parker County judge, serves as an ex officio director. A person
6-18 who serves as an ex officio director under this subsection may vote
6-19 on any matter considered by the board.
6-20 (e) Permanent directors shall be appointed as provided by
6-21 Subsection (f) of this section by the governing bodies of the
6-22 member entities of the district not earlier than April 1 or later
6-23 than April 30 of 1998.
6-24 (f) Each member entity shall appoint:
6-25 (1) one director if the number of member entities of
6-26 the district is at least six;
6-27 (2) two directors if the number of member entities of
7-1 the district is at least three, but less than six;
7-2 (3) three directors if there are two member entities
7-3 of the district; or
7-4 (4) six directors if there is one member entity of the
7-5 district.
7-6 (g) Not earlier than April 1 or later than April 30 of each
7-7 year after 1998, the appropriate number of permanent directors, if
7-8 any, shall be appointed to the board as provided by Subsection (f)
7-9 of this section.
7-10 (h) Permanent directors serve staggered four-year terms,
7-11 unless required by the board to serve a term of less than four
7-12 years under Subsection (j) of this section.
7-13 (i) Permanent directors appointed under Subsections (e) and
7-14 (g) of this section serve beginning May 1 of the year in which the
7-15 director is appointed and until the director's successor has
7-16 qualified.
7-17 (j) For purposes of staggering the terms of office of
7-18 directors as required by Subsection (h) of this section, the board
7-19 shall develop a procedure to determine which directors appointed
7-20 under Subsections (e) and (g) of this section serve four-year terms
7-21 and which directors serve terms of less than four years.
7-22 (k) A vacancy on the board shall be filled by appointment
7-23 made by the governing body of the appropriate member entity. An
7-24 appointment under this subsection may be made any time after the
7-25 vacancy occurs. A member entity that makes an appointment under
7-26 this subsection shall provide notice of the appointment to the
7-27 board not later than six hours before the first board meeting
8-1 following the appointment. An appointment made under this
8-2 subsection is effective on the date notice is received by the
8-3 board. If notice of an appointment is not provided as required by
8-4 this subsection, the appointment is not effective until after the
8-5 first board meeting following the appointment.
8-6 (l) The appointment of a director is not valid unless the
8-7 appointment is made as provided by this section.
8-8 (m) A participant entity or customer may not appoint a
8-9 director under this section.
8-10 SECTION 2.02. REMOVAL OF DIRECTORS. A director may be
8-11 removed for any reason:
8-12 (1) by the governing body of the member entity that
8-13 appointed the director; or
8-14 (2) if three-quarters of the directors vote to remove
8-15 the director.
8-16 SECTION 2.03. DIRECTOR QUALIFICATIONS. A person is
8-17 qualified to serve as a director if the person:
8-18 (1) is at least 18 years of age;
8-19 (2) is a qualified voter who resides within the
8-20 boundaries of the district;
8-21 (3) qualifies to serve as a director by taking the
8-22 oath of office;
8-23 (4) except as otherwise provided by this section, is
8-24 eligible to serve as a director under Subchapter C, Chapter 49,
8-25 Water Code; and
8-26 (5) verifies compliance with the requirements of this
8-27 section.
9-1 SECTION 2.04. DIRECTOR VOTING. A director, including the
9-2 chairman elected under Section 2.09 of this article, may vote on
9-3 any matter considered by the board, including a matter authorizing
9-4 a financial commitment to a capital project. This section applies
9-5 to a director notwithstanding that the director was appointed by a
9-6 member entity of the district that is not participating in the
9-7 project being considered by the board.
9-8 SECTION 2.05. DIRECTOR COMPENSATION. (a) Except as
9-9 provided by Subsection (b), a director may not receive compensation
9-10 for serving on the board.
9-11 (b) A director may receive reimbursement for travel or other
9-12 expenses reasonably incurred by the director while acting on behalf
9-13 of the district. The board may adopt reasonable policies governing
9-14 the reimbursement of director expenses under this subsection,
9-15 including a requirement that the director provide written
9-16 verification of expenses.
9-17 SECTION 2.06. EX OFFICIO DIRECTORS. The board may appoint
9-18 or elect ex officio directors of the district and provide for the
9-19 powers and duties of such directors in the bylaws, rules, or
9-20 regulations of the district.
9-21 SECTION 2.07. EXCLUSIVE AUTHORITY OF BOARD. The board has
9-22 the exclusive authority to manage the district.
9-23 SECTION 2.08. POWERS AND DUTIES OF THE BOARD. (a) The
9-24 board shall:
9-25 (1) adopt a seal for the district;
9-26 (2) adopt bylaws to govern matters of the district;
9-27 and
10-1 (3) hold regular and, if necessary, special and
10-2 emergency board meetings.
10-3 (b) The board may amend bylaws adopted under Subsection
10-4 (a)(2) of this section.
10-5 (c) The board shall hold board meetings at a time and place
10-6 specified in the district bylaws.
10-7 SECTION 2.09. ELECTION OF OFFICERS. (a) At the first board
10-8 meeting following the appointment of initial directors under
10-9 Section 2.01(b) of this article, the board shall elect from the
10-10 initial directors primary officers for the district, including a
10-11 chairman, vice chairman, secretary, and treasurer, and any other
10-12 officer that the board determines is necessary.
10-13 (b) At the first board meeting following the appointment of
10-14 permanent directors under Section 2.01(e) of this article, the
10-15 board shall elect from the permanent directors new officers for the
10-16 district.
10-17 (c) Each subsequent year at the first board meeting
10-18 following the appointment of the appropriate number of directors
10-19 under Section 2.01(g) of this section, the board shall elect from
10-20 the directors new officers for the district.
10-21 (d) Officers serve until the election of new officers under
10-22 this section.
10-23 SECTION 2.10. POWERS AND DUTIES OF OFFICERS. (a) The
10-24 chairman of the board elected under Section 2.09 of this article is
10-25 the chief executive officer of the district and the presiding
10-26 officer of the board.
10-27 (b) The vice chairman of the board elected under Section
11-1 2.09 of this article may perform the duties and exercise the powers
11-2 of the chairman if the chairman is absent or fails, refuses, or is
11-3 unable to act.
11-4 (c) The secretary of the board elected under Section 2.09 of
11-5 this article or an assistant secretary:
11-6 (1) shall keep a record of the minutes of the board
11-7 meetings;
11-8 (2) shall maintain the official records of the
11-9 district; and
11-10 (3) may certify the accuracy and authenticity of any
11-11 actions, proceedings, minutes, or records of the board or the
11-12 district.
11-13 (d) The board may provide for additional powers and duties
11-14 of officers elected under Section 2.09 of this article in the
11-15 district bylaws.
11-16 SECTION 2.11. DISTRICT EMPLOYEES. The board may appoint and
11-17 employ any person, firm, corporation, partnership, or other entity
11-18 that the board determines is necessary to conduct the affairs of
11-19 the district, including a general manager, engineer, attorney,
11-20 financial advisor, accountant, or other consultant.
11-21 SECTION 2.12. CONFLICT OF INTEREST. Directors and officers
11-22 of the district are subject to Chapter 572, Government Code.
11-23 SECTION 2.13. OPEN RECORDS. Chapter 551, Government Code,
11-24 applies to the minutes, orders, contracts and related instruments,
11-25 books, records, audits, and other documents of the district.
11-26 SECTION 2.14. DISTRICT BUSINESS. (a) A quorum of the
11-27 directors of the district is required to be present at a board
12-1 meeting for the board to conduct district business. The board
12-2 shall specify in the district bylaws the number of directors that
12-3 constitute a quorum, except that a quorum may not be less than a
12-4 majority of the directors serving on the board.
12-5 (b) The board shall specify in the district bylaws the
12-6 number of votes necessary to approve a matter considered by the
12-7 board, except that the number of votes specified may not be less
12-8 than a majority of the directors present at the meeting in which
12-9 the matter is being considered.
12-10 SECTION 2.15. CUSTOMER ADVISORY COUNCIL. (a) The board may
12-11 establish a customer advisory council as provided by this section.
12-12 (b) A customer advisory council established under this
12-13 section shall consist of one representative of each customer of the
12-14 district.
12-15 (c) A representative serving on a customer advisory council
12-16 established under this section:
12-17 (1) has the powers and duties provided in the bylaws,
12-18 rules, and regulations of the district; and
12-19 (2) may not vote on any matter considered by the
12-20 board.
12-21 (d) A customer advisory council established under this
12-22 section may be abolished by the board.
12-23 SECTION 2.16. ADMINISTRATION AND PLANNING COSTS FEE. The
12-24 district may charge each member entity an annual pro rata fee to
12-25 pay for administration and planning costs incurred by the district
12-26 that are unrelated to capital projects financed by the district. A
12-27 fee charged a member entity under this section may not exceed $2
13-1 per capita population of the member entity, unless the board and at
13-2 least 75 percent of the member entities of the district that
13-3 together have at least 75 percent of the population of the district
13-4 agree to a different fee.
13-5 SECTION 2.17. EXPANSION OF DISTRICT BOUNDARIES. On request
13-6 by a member entity, the boundaries of the district may be expanded
13-7 to include additional or the remaining territory of the member
13-8 entity if:
13-9 (1) the boundaries of the member entity are contiguous
13-10 to the boundaries of the district; and
13-11 (2) the requested expansion is approved by a
13-12 three-quarters majority vote of the directors of the district.
13-13 SECTION 2.18. RULES AND REGULATIONS. The board may adopt
13-14 and enforce reasonable rules and regulations to exercise the powers
13-15 and perform the duties of the district as provided by this Act.
13-16 ARTICLE 3. RIGHTS, POWERS, AND DUTIES
13-17 SECTION 3.01. RIGHTS IN SERVICE AREA. (a) The district may
13-18 provide wastewater collection, treatment, or service within the
13-19 district.
13-20 (b) The district may own, operate, and provide other
13-21 necessary utilities and services within the district, including raw
13-22 water, potable water, water distribution and treatment, solid waste
13-23 collection and disposal, fire, police, and ambulance services, if
13-24 the right to own, operate, or provide the utility or service has
13-25 not been conveyed to another entity, unless the entity to which the
13-26 right has been conveyed agrees to sell, cede, or otherwise convey
13-27 to the district the right to own, operate, or provide the utility
14-1 or service.
14-2 (c) Subsection (b) does not require the district to own,
14-3 operate, or provide other necessary utilities or services within
14-4 the district, unless the district is required to own, operate, or
14-5 provide the utility or service under a permit, certificate, or
14-6 license issued by the state.
14-7 SECTION 3.02. RIGHTS OF OTHER ENTITIES PROTECTED. (a)
14-8 Except as provided by Subsection (b), a customer or prospective
14-9 customer of the district is not required under this Act to secure
14-10 wastewater or other utility service from the district, unless the
14-11 customer or prospective customer enters into a contract with the
14-12 district for that purpose.
14-13 (b) A customer or prospective customer is required under
14-14 this Act to secure wastewater or other utility service from the
14-15 district if:
14-16 (1) the customer or prospective customer is not
14-17 receiving the service from another source; and
14-18 (2) the district provides the service or determines
14-19 that the district will make the service available to the customer
14-20 or prospective customer.
14-21 (c) If a customer enters into a contract with the district
14-22 to secure wastewater or other utility service from the district, a
14-23 user of the service under the contract must connect to the
14-24 district's service system if:
14-25 (1) the user is located within the boundaries of the
14-26 customer; and
14-27 (2) the district's system is available for connection
15-1 at or near the property line of the user.
15-2 (d) A contract under this section may provide that the
15-3 district may:
15-4 (1) require the customer to terminate service provided
15-5 to a user who fails or refuses to pay for that service after
15-6 providing notice as required by law;
15-7 (2) terminate service provided to a customer or user
15-8 who fails or refuses to pay for that service after providing notice
15-9 as required by law; and
15-10 (3) terminate other utility services provided to a
15-11 customer or user if the customer or user fails or refuses to pay
15-12 for any service provided by the district after providing notice as
15-13 required by law.
15-14 (e) This Act does not alter any existing permit, contract,
15-15 or other obligation, or impair the right of any entity to own,
15-16 operate, maintain, or otherwise use, provide, or control water,
15-17 wastewater, solid waste, or liquid waste under the governing law of
15-18 the entity.
15-19 SECTION 3.03. PURCHASE, CONSTRUCT, OR ACQUIRE WORKS AND
15-20 FACILITIES. The district may plan, lay out, purchase, construct,
15-21 acquire, own, operate, maintain, repair, or improve, or contract
15-22 for, within or outside the boundaries of the district, any works,
15-23 improvements, facilities, plants, equipment, and appliances,
15-24 including any administrative properties and facilities, any
15-25 permits, franchises, licenses, or contract or property rights, and
15-26 any levees, drains, waterways, lakes, reservoirs, channels,
15-27 conduits, sewers, dams, storm water detention facilities, treatment
16-1 plants, or other similar facilities and improvements, whether for
16-2 municipal, industrial, agricultural, flood control, or related
16-3 purposes, that are necessary, helpful, or incidental to the
16-4 exercise of any right, power, privilege, authority, or function
16-5 provided by this Act.
16-6 SECTION 3.04. FINANCING CAPITAL IMPROVEMENTS. The district
16-7 is a political subdivision for purposes of Chapter 395, Local
16-8 Government Code.
16-9 SECTION 3.05. ADDITIONAL POWERS. The district may:
16-10 (1) provide for:
16-11 (A) the collection, construction, improvement,
16-12 maintenance, and operation of wholesale wastewater and water
16-13 systems and treatment works necessary to provide wholesale service
16-14 to customers of the district; and
16-15 (B) the acquisition, construction, improvement,
16-16 and maintenance of water supply, reservoir, or interest in water
16-17 supply or reservoir, necessary to exercise and fulfill the powers
16-18 and duties of the district;
16-19 (2) supply water for municipal, domestic, and
16-20 industrial or other beneficial uses or controls;
16-21 (3) collect, treat, process, dispose of, and control
16-22 all domestic or industrial wastes, whether in fluid, solid, or
16-23 composite state;
16-24 (4) gather, conduct, divert, control, and treat local
16-25 storm water or local harmful excesses of water within the
16-26 boundaries of the district; and
16-27 (5) irrigate and alter land elevations within the
17-1 boundaries of the district as needed.
17-2 SECTION 3.06. EMINENT DOMAIN. (a) The district may acquire
17-3 by purchase or eminent domain land, an easement, a right-of-way, or
17-4 other property or improvement within or outside the boundaries of
17-5 the district if necessary or appropriate in exercising the powers
17-6 and performing the functions of the district.
17-7 (b) The power of eminent domain may be exercised by the
17-8 district under Subsection (a) of this section as provided by state
17-9 law, including Chapter 21, Property Code, except that the district
17-10 is not required to comply with the requirements of Section
17-11 21.021(a), Property Code, during the pendency of the subject
17-12 litigation.
17-13 (c) The district is not required in a condemnation
17-14 proceeding brought by the district:
17-15 (1) to pay in advance or give bond or other security
17-16 for costs;
17-17 (2) to give bond for the issuance of a temporary
17-18 restraining order or a temporary injunction; or
17-19 (3) to give bond for costs or supersedeas on an appeal
17-20 or writ of error.
17-21 (d) The district may not exercise the power of eminent
17-22 domain to acquire:
17-23 (1) property located in the existing corporate limits
17-24 of a municipality that is located in whole or in part within the
17-25 district unless the governing body of the municipality in which the
17-26 property is located consents by resolution to the acquisition of
17-27 the property;
18-1 (2) property located outside the boundaries of the
18-2 district to be used as a water supply reservoir unless the county
18-3 in which the reservoir is to be located consents;
18-4 (3) property owned by a county, a municipality, an
18-5 entity created by special act of the legislature under Section 52,
18-6 Article III, or Section 59, Article XVI, Texas Constitution, a
18-7 political subdivision of the state, or an agency or instrumentality
18-8 of a county or municipality; or
18-9 (4) a waterworks system or a wastewater system owned
18-10 by a municipality, an entity created by special act of the
18-11 legislature under Section 52, Article III, or Section 59, Article
18-12 XVI, Texas Constitution, a political subdivision of the state, a
18-13 private party, or a nonprofit corporation.
18-14 (e) If the district exercises the power of eminent domain
18-15 and requires relocating, raising, lowering, rerouting, changing the
18-16 grade, or altering the construction of any railroad, highway,
18-17 pipeline, or electric transmission and electric distribution,
18-18 telegraph, or telephone lines, conduits, poles, or facilities, the
18-19 district shall pay the cost of relocating, raising, lowering,
18-20 rerouting, changing the grade, or altering the construction that
18-21 equals the comparable replacement cost without enhancement of
18-22 facilities minus the net salvage value derived from the old
18-23 facility.
18-24 SECTION 3.07. SERVICE OUTSIDE DISTRICT. The district may
18-25 provide services outside the service area of the district as
18-26 provided by state law.
18-27 SECTION 3.08. DISPOSAL SYSTEMS. (a) The district may
19-1 establish, acquire, operate, and maintain a regional solid waste
19-2 disposal system and a nonhazardous liquid waste disposal system.
19-3 (b) If the district establishes a disposal system under
19-4 Subsection (a) of this section, the district shall provide
19-5 services from the system to:
19-6 (1) users as determined by the board if the services
19-7 are provided within the service area of the district; and
19-8 (2) customers if the services are provided outside the
19-9 service area of the district.
19-10 SECTION 3.09. RULES RELATING TO WATER QUALITY. (a) The
19-11 district may adopt and enforce rules relating to protection of the
19-12 quality of water flowing to or from the areas in or surrounding the
19-13 lakes, reservoirs, and other sources of water supply owned,
19-14 operated, or controlled by the district.
19-15 (b) The rules adopted by the district under Subsection (a)
19-16 of this section must:
19-17 (1) relate to:
19-18 (A) the prevention of waste or unauthorized use
19-19 of water controlled by the district; or
19-20 (B) the regulation of privileges on land, a
19-21 reservoir, or an easement owned or controlled by the district; and
19-22 (2) be consistent with rules and regulations of the
19-23 state.
19-24 SECTION 3.10. RATES, FEES, CHARGES, AND RENTALS. (a) The
19-25 district may adopt, enforce, and collect all assessed charges,
19-26 fees, rates, and rentals that are necessary to provide services and
19-27 facilities to customers and users of the district. Rates, fees,
20-1 and charges assessed under this section may vary according to
20-2 customer class, project, or service area to reflect different costs
20-3 of providing service.
20-4 (b) The district may require a customer to obtain a deposit
20-5 from a user for services or facilities provided by the district. A
20-6 deposit under this subsection may bear interest.
20-7 (c) If the district issues revenue bonds or other
20-8 obligations payable wholly from revenue, the board shall establish
20-9 and revise rates of compensation for water sold and wastewater or
20-10 other services rendered by the district that are sufficient:
20-11 (1) to pay operating and maintenance expenses of
20-12 district facilities;
20-13 (2) to pay the issued bonds as the bonds mature and
20-14 the interest that accrues on the bonds;
20-15 (3) to maintain the district's fund reserve; and
20-16 (4) to maintain other funds of the district provided
20-17 by the resolution that authorized the issuance of the bonds.
20-18 (d) A local government, water supply corporation, or other
20-19 entity that enters into a contract with the district may:
20-20 (1) establish, charge, and collect fees, rates,
20-21 charges, rentals, or other amounts for services or facilities
20-22 provided under the contract; and
20-23 (2) pledge amounts that are sufficient to make the
20-24 required payments under the contract.
20-25 (e) The district may discontinue providing a service or
20-26 facility to prevent an abuse or to enforce the payment of an unpaid
20-27 charge, fee, or rental due and payable to the district.
21-1 SECTION 3.11. REGULATORY POWER OF MUNICIPALITIES. The
21-2 district and the land within the district are subject to any
21-3 ordinances, codes, resolutions, rules, or regulations of a
21-4 municipality, including platting and zoning requirements, that has
21-5 jurisdiction over territory within the district.
21-6 SECTION 3.12. GENERAL CONTRACTING AUTHORITY. (a) The
21-7 district may, if necessary to exercise the powers and accomplish
21-8 the purposes of the district, enter into a contract with the United
21-9 States, any agency of the United States, a municipality, county,
21-10 water supply corporation, an entity created under Section 52,
21-11 Article III, or Section 59, Article XVI, Texas Constitution, or
21-12 other public or private entity.
21-13 (b) The district may enter into a contract for the
21-14 acquisition, purchase, rental, lease, or operation of wastewater or
21-15 water facilities owned or operated by the party contracting with
21-16 the district.
21-17 (c) The district may acquire water appropriation or other
21-18 necessary permits from the state or permit owners.
21-19 (d) A contract that requires payment of money by the
21-20 district may be satisfied from any general or specific source of
21-21 district funds as determined by the board.
21-22 SECTION 3.13. AUTHORITY TO CONTRACT WITH DISTRICT. (a) A
21-23 municipality, county, public agency, political subdivision of the
21-24 state, an entity created under Section 52, Article III, or Section
21-25 59, Article XVI, Texas Constitution, or a water supply corporation
21-26 may enter into a contract with the district if the entity is
21-27 conducting business in whole or part within the district.
22-1 (b) The governing body of an entity that enters into a
22-2 contract under this section with the district may pledge to the
22-3 payment of the contract any source of revenue that is available to
22-4 the governing body, including revenue derived from levying and
22-5 collecting ad valorem taxes.
22-6 (c) If an entity under this section pledges to the payment
22-7 of a contract funds derived from the entity's water system,
22-8 wastewater system, or combined water and wastewater system, the
22-9 payments constitute an operating expense of that system.
22-10 SECTION 3.14. DEPOSITORY. (a) The board, by order or
22-11 resolution, shall designate one or more banks inside or outside the
22-12 boundaries of the district to serve as depository for the funds of
22-13 the district.
22-14 (b) Except as provided by this Act, district funds shall be
22-15 deposited in a depository bank designated under Subsection (a) of
22-16 this section.
22-17 (c) The board may invest district funds:
22-18 (1) in the same manner as provided for the investment
22-19 of county funds; and
22-20 (2) as provided by the Public Funds Investment Act,
22-21 Chapter 2256, Government Code.
22-22 (d) District funds shall be secured in the same manner as
22-23 provided for the deposit of public funds under the Public Funds
22-24 Collateral Act, Chapter 2257, Government Code.
22-25 SECTION 3.15. JOINT AUTHORITY. For purposes of
22-26 accomplishing the objectives and exercising the powers of the
22-27 district, the district may:
23-1 (1) enter into an agreement with a local government
23-2 under the Interlocal Cooperation Act, Chapter 791, Government Code;
23-3 and
23-4 (2) enter into a joint agreement or contract with a
23-5 water supply corporation, municipality, an entity created under
23-6 Section 52, Article III, or Section 59, Article XVI, Texas
23-7 Constitution, a county, a political subdivision of the state, the
23-8 state, or other private or public entity.
23-9 ARTICLE 4. GENERAL FISCAL PROVISIONS
23-10 SECTION 4.01. AUDITS. All funds and accounts of the
23-11 district shall be audited by an independent auditor. A copy of an
23-12 audit required under this section shall be maintained in the
23-13 official records of the district.
23-14 SECTION 4.02. CREATION EXPENSES. (a) The district may pay
23-15 the costs and expenses incurred in obtaining the Walnut Basin
23-16 Regional Wastewater Study and, if conducted, other feasibility
23-17 studies and other costs and expenses incurred in creating and
23-18 organizing the district, including the reimbursement of costs and
23-19 expenses incurred by the City of Springtown and the Walnut Creek
23-20 Special Utility District.
23-21 (b) The district may succeed to and assume rights,
23-22 privileges, duties, and responsibilities, including contractual
23-23 obligations, of the City of Springtown and the Walnut Creek Special
23-24 Utility District relating to the creation of the district.
23-25 SECTION 4.03. TAX EXEMPTION. Accomplishment of the purposes
23-26 of the district benefit the people, property, and industry of the
23-27 state. The district is performing an essential public function
24-1 under the Texas Constitution by accomplishing the purposes of the
24-2 district and is not required to pay any tax or assessment on any
24-3 property or project owned, operated, leased, or controlled by the
24-4 district or any part of that property, and the bonds or other
24-5 obligations issued by the district under this Act and the transfer
24-6 and income from those bonds or other obligations, including the
24-7 profits made on the sale of the bonds, are free from taxation in
24-8 the state.
24-9 ARTICLE 5. BONDS
24-10 SECTION 5.01. ISSUANCE OF BONDS. (a) The district may
24-11 issue bonds to provide district funds to carry out the purposes and
24-12 exercise the powers of the district.
24-13 (b) The district may issue revenue bonds, notes, revenue
24-14 anticipation notes, short-term obligations, refunding bonds, or
24-15 other obligations without holding an election and on terms that the
24-16 board determines to be appropriate.
24-17 SECTION 5.02. PAYMENT AND SECURITY. (a) Obligations issued
24-18 under Section 5.01 of this article:
24-19 (1) may be made payable from all or part of the
24-20 revenues of the district derived from any lawful source, including
24-21 revenues derived from a contract with a customer or other user of
24-22 facilities owned or operated by the district or from the ownership
24-23 and operation of any waterworks system, wastewater system, sewer
24-24 system, solid waste disposal system, or nonhazardous liquid waste
24-25 system, or a combination of those systems; and
24-26 (2) may be paid from and secured by liens on the
24-27 pledges of all or part of the revenue, income, or receipts derived
25-1 from the district's ownership, operation, lease, or sale of the
25-2 property, buildings, structures, or facilities, including the
25-3 proceeds or revenues from contracts with any person, firm,
25-4 corporation, municipality, public agency, or other political
25-5 subdivision or entity.
25-6 (b) Bonds and other obligations of the district may be
25-7 additionally secured by mortgages or deeds of trust on real
25-8 property owned or to be acquired by the district and by chattel
25-9 mortgages or liens on any personal property appurtenant to that
25-10 real property. The board may authorize the execution of trust
25-11 indentures, mortgages, deeds of trust, or other forms of
25-12 encumbrances. The district may also pledge to the payment of the
25-13 obligations all or part of a grant, donation, revenue, or income
25-14 received or to be received from the United States or any public or
25-15 private source.
25-16 (c) The district may pledge all or part of the district's
25-17 revenue, income, or receipts from fees, rentals, rates, charges, or
25-18 contract proceeds or payments to the payment of the district's
25-19 bonds or other obligations, including the payment of principal,
25-20 interest, and any other amounts required or permitted relating to
25-21 the bonds or other obligations. The pledged fees, rentals, rates,
25-22 charges, proceeds, or payments shall be established and collected
25-23 in amounts sufficient, together with any other pledged resources,
25-24 to provide for the payment of expenses relating to the bonds or
25-25 other obligations and for operation and maintenance and other
25-26 expenses relating to those facilities.
25-27 (d) For purposes of Subsections (a) and (c) of this section,
26-1 payments and revenues that are pledged for the benefit of the
26-2 district under Sections 3.13(a) and (b) of Article 3 of this Act
26-3 are revenues of the district.
26-4 SECTION 5.03. TERMS AND CONDITIONS. Bonds and other
26-5 obligations of the district:
26-6 (1) may mature serially or otherwise, except that the
26-7 term of the bonds or other obligations may not exceed 40 years from
26-8 the date of issuance;
26-9 (2) may provide for the subsequent issuance of
26-10 additional parity obligations or subordinate lien obligations under
26-11 terms provided in the resolution that authorized the issuance of
26-12 the bond or other obligation;
26-13 (3) shall be executed and may be made redeemable
26-14 before maturity, issued in the form, denominations, and manner, and
26-15 under the terms, conditions, and detail, and sold in the manner, at
26-16 the price, and under the terms provided by the resolution that
26-17 authorized the issuance of the bond or other obligation; and
26-18 (4) shall bear an interest rate as provided by the
26-19 resolution that authorized the issuance of the bond or other
26-20 obligation.
26-21 SECTION 5.04. NEGOTIABLE INSTRUMENTS. Obligations under
26-22 this article are negotiable instruments for purposes of Chapter 8,
26-23 Business & Commerce Code.
26-24 SECTION 5.05. PROCEEDS. (a) If permitted in the resolution
26-25 that authorized the issuance of the bond or other obligation, the
26-26 proceeds from the sale of the bond or other obligation may be used:
26-27 (1) to pay the interest on the bond or other
27-1 obligation during the period of acquisition or construction of
27-2 facilities to be provided through the issuance of the bond or other
27-3 obligation;
27-4 (2) to pay the operating and maintenance expenses of
27-5 district facilities;
27-6 (3) to create a reserve fund for the payment of the
27-7 principal of and interest on the bond or other obligation; and
27-8 (4) in any other manner that is necessary,
27-9 appropriate, or convenient to accomplish the purposes of the
27-10 district.
27-11 (b) The proceeds from the sale of bonds or other obligations
27-12 may be placed on time deposit or invested as provided by the
27-13 resolution that authorized the issuance of the bond or other
27-14 obligation.
27-15 SECTION 5.06. MISCELLANEOUS. (a) The district is an issuer
27-16 as defined by Section 3.001, Article 3, Chapter 53, Acts of the
27-17 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
27-18 Vernon's Texas Civil Statutes). Bonds issued by the district under
27-19 this Act and the appropriate proceedings authorizing the issuance
27-20 of the bonds shall be submitted to the attorney general for
27-21 examination if required under Article 3, Chapter 53, Acts of the
27-22 70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
27-23 Vernon's Texas Civil Statutes). If a bond issued by the district
27-24 contains a recital that the bond is secured by a pledge of revenue
27-25 derived from a contract, a copy of the contract and the proceedings
27-26 relating to the contract may also be submitted to the attorney
27-27 general. If the attorney general finds that the bonds submitted
28-1 for examination under this subsection are authorized and that the
28-2 contract was entered into in accordance with the law, the attorney
28-3 general shall approve the bonds and, if submitted, the contract and
28-4 the comptroller shall register the bonds. If bonds and the
28-5 contract are approved by the attorney general and registered by the
28-6 comptroller, the bonds and the contract are incontestable in any
28-7 court or other forum for any reason and are valid and binding
28-8 obligations as provided by the terms of the obligation.
28-9 (b) The district may issue bonds and other obligations as
28-10 provided by Chapter 656, Acts of the 68th Legislature, Regular
28-11 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), and as
28-12 provided by the Bond Procedures Act of 1981 (Article 717k-6,
28-13 Vernon's Texas Civil Statutes).
28-14 ARTICLE 6. ADDING TERRITORY TO THE DISTRICT
28-15 SECTION 6.01. ADDITION OF MEMBER ENTITIES. (a) On receipt
28-16 of a petition submitted by the governing body of a local
28-17 government, other political subdivision, or private entity,
28-18 including a water supply corporation, the board may add a member
28-19 entity to the district as provided by this section.
28-20 (b) A petition must be submitted in the manner and form
28-21 required in the district bylaws.
28-22 (c) On receipt of a petition, the board shall give notice
28-23 and hold a hearing on the petition to determine if adding the
28-24 member entity to the district:
28-25 (1) will benefit the territory or service area within
28-26 the member entity; and
28-27 (2) is in the best interests of the district.
29-1 (d) If the board determines that the proposed member entity
29-2 should be added to the district, the board shall, subject to
29-3 Subsection (e) of this section, issue an order:
29-4 (1) adding the member entity and the territory or
29-5 service area of the member entity to the district; and
29-6 (2) making the member entity and the territory or
29-7 service area of the member entity subject to the privileges,
29-8 duties, assets, and financial obligations of the district in the
29-9 same manner as other member entities of the district.
29-10 (e) The board shall include in an order issued under
29-11 Subsection (d) of this section a requirement that the member entity
29-12 added to the district must reimburse the existing member entities
29-13 of the district, or directly reimburse the district, for the costs
29-14 incurred in creating and operating the district. Reimbursement
29-15 under this subsection must be an equitable pro rata share of the
29-16 costs paid by the existing member entities or the district.
29-17 SECTION 6.02. APPOINTMENT OF DIRECTORS BY NEW MEMBER ENTITY.
29-18 If the board issues an order under Section 6.01(d) of this article
29-19 adding a member entity to the district, the governing body of the
29-20 member entity shall appoint the appropriate number of directors to
29-21 the board as provided by Section 2.01(g) of Article 2 of this Act.
29-22 ARTICLE 7. MISCELLANEOUS PROVISIONS
29-23 SECTION 7.01. INITIAL DIRECTORS. (a) The governing bodies
29-24 of the City of Springtown and the Walnut Creek Special Utility
29-25 District shall, not later than the 30th day after the effective
29-26 date of this Act, appoint the appropriate number of initial
29-27 directors as required by Section 2.01(b) of Article 2 of this Act.
30-1 (b) The Parker County judge, or the person designated by the
30-2 Parker County judge, shall begin serving as an ex officio director
30-3 as provided by Section 2.01(d) of Article 2 of this Act on the
30-4 effective date of this Act.
30-5 SECTION 7.02. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
30-6 (a) The proper and legal notice of the intention to introduce this
30-7 Act, setting forth the general substance of this Act, has been
30-8 published as provided by law, and the notice and copy of this Act
30-9 have been furnished to all persons, agencies, officials, or
30-10 entities to which they are required to be furnished by the
30-11 constitution and other laws of this state, including the governor,
30-12 who has submitted the notice and Act to the Texas Natural Resource
30-13 Conservation Commission.
30-14 (b) The Texas Natural Resource Conservation Commission has
30-15 filed its recommendations relating to this Act with the governor,
30-16 lieutenant governor, and speaker of the house of representatives
30-17 within the required time.
30-18 (c) All requirements of the constitution and laws of this
30-19 state and the rules and procedures of the legislature with respect
30-20 to the notice, introduction, and passage of this Act are fulfilled
30-21 and accomplished.
30-22 SECTION 7.03. EMERGENCY. The importance of this legislation
30-23 and the crowded condition of the calendars in both houses create an
30-24 emergency and an imperative public necessity that the
30-25 constitutional rule requiring bills to be read on three several
30-26 days in each house be suspended, and this rule is hereby suspended,
30-27 and that this Act take effect and be in force from and after its
31-1 passage, and it is so enacted.