By Howard H.B. No. 3195
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
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 Fort Bend County Municipal Utility
1-4 District Number ____ and to the authorization of bonds and the levy
1-5 of taxes; providing civil penalties.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 ARTICLE 1. GENERAL PROVISIONS
1-8 SECTION 1.01. CREATION. (a) A conservation and reclamation
1-9 district, to be known as Fort Bend County Municipal Utility
1-10 District Number ____, is created. The district is a governmental
1-11 agency and a body politic and corporate.
1-12 (b) The district is created under and is essential to
1-13 accomplish the purposes of Section 59, Article XVI, Texas
1-14 Constitution.
1-15 (c) The district has the powers of a municipal utility
1-16 district as provided by Chapter 54, Water Code, and is governed by
1-17 Chapters 49 and 54, Water Code, unless otherwise provided by this
1-18 Act.
1-19 SECTION 1.02. DEFINITIONS. In this Act:
1-20 (1) "City" means the City of Houston.
1-21 (2) "District" means the Fort Bend County Municipal
1-22 Utility District Number ____.
1-23 (3) "Board" means the board of directors of the Fort
2-1 Bend County Municipal Utility District Number ____ or a district
2-2 resulting from a division under Article 8 of this Act.
2-3 SECTION 1.03. BOUNDARIES.
2-4 (b) A mistake in the patents or field notes or in copying
2-5 the patents or field notes in the legislative process does not
2-6 affect the organization, existence, or validity of the district,
2-7 the right of the district to issue bonds or refunding bonds or to
2-8 pay the principal of or interest on issued bonds, the right of the
2-9 district to levy and collect taxes, or the legality or operation of
2-10 the district or its governing board.
2-11 ARTICLE 2. ADMINISTRATIVE PROVISIONS
2-12 SECTION 2.01. BOARD. The district shall be governed by and
2-13 all powers of the district shall be exercised by a board of five
2-14 directors.
2-15 SECTION 2.02. DIRECTOR ELIGIBILITY. Except for initial
2-16 directors, a person must meet the requirements of Section 54.102,
2-17 Water Code, to be eligible to serve as a director. A person must
2-18 be at least 18 years of age and a resident of Fort Bend County or
2-19 Travis County to be eligible to serve as an initial director.
2-20 Notwithstanding Section 49.052, Water Code, employment with a state
2-21 agency, other than the Texas Department of Transportation, the
2-22 General Land Office or the School Land Board, does not disqualify a
2-23 person from serving as a director. An employee of the district may
2-24 not serve as a director.
2-25 SECTION 2.03. TERMS OF OFFICE AND APPOINTMENT OF DIRECTORS.
2-26 (a) Except for initial directors, directors serve staggered
3-1 four-year terms, with the terms of two or three directors expiring
3-2 September 1 of each even-numbered year.
3-3 (b) The School Land Board shall appoint five initial
3-4 directors as soon as practicable after the effective date of this
3-5 Act. The School Land Board shall appoint two initial directors to
3-6 serve terms expiring September 1, 2002, and three initial directors
3-7 to serve terms expiring September 1, 2004. If a vacancy occurs,
3-8 the School Land Board shall appoint a successor to fill the vacancy
3-9 and to serve the remainder of the unexpired term. Initial
3-10 directors shall serve until permanent directors are elected under
3-11 Section 2.04 of this Act and qualify for office.
3-12 SECTION 2.04. ELECTION OF PERMANENT DIRECTORS. (a) A
3-13 director serves until the director's successor has qualified. An
3-14 election shall be held for the election of the appropriate number
3-15 of permanent directors on the first Saturday in May of each
3-16 even-numbered year.
3-17 (b) The board shall publish notice of an election under this
3-18 section once a week for two consecutive weeks in a newspaper of
3-19 general circulation in the district beginning not later than 14
3-20 days before the date of the election.
3-21 SECTION 2.05. QUALIFICATION OF DIRECTOR. A director shall
3-22 take the constitutional oath of office and, except for initial
3-23 directors, give bond for the faithful performance of the director's
3-24 duties as required by Section 49.055, Water Code. The cost of a
3-25 bond under this section shall be paid by the district.
3-26 SECTION 2.06. MEETINGS AND BOARD ACTIONS. (a) The board
4-1 may establish regular meetings to conduct the business of the
4-2 district and may hold special meetings if necessary as determined
4-3 by the board. The board shall hold a meeting under this section
4-4 within the district unless the board, by a majority vote at a
4-5 public meeting, decides to hold the meeting outside of the
4-6 district.
4-7 (b) A majority of the directors shall constitute a quorum of
4-8 the board. A vote of a majority of the quorum present is necessary
4-9 to take board action. The board may adopt bylaws to govern the
4-10 affairs of the district and may adopt a seal for the district. The
4-11 board may provide in the bylaws that, except for initial directors,
4-12 a director shall receive compensation of $20 for attending a
4-13 meeting of the board. A director may not be paid more than $40 for
4-14 meetings held in a calendar month.
4-15 SECTION 2.07. ORGANIZATION OF BOARD OF DIRECTORS. The board
4-16 shall elect a president and vice president from members of the
4-17 board. The board may elect other officers as are deemed necessary
4-18 by the board. The president is the chief executive officer of the
4-19 district and the presiding officer of the board and has the same
4-20 right to vote as other members of the board. The vice president
4-21 shall perform the duties and exercise the powers of the president
4-22 if the president is absent, fails to act, or refuses to act. The
4-23 board shall appoint a secretary and treasurer. The secretary and
4-24 treasurer may be, but are not required to be, members of the board.
4-25 One person may serve as both secretary and treasurer. The
4-26 treasurer shall give bond in an amount required by the board. The
5-1 condition of the bond shall be that the treasurer will faithfully
5-2 account for all money that comes into the custody of the treasurer.
5-3 The board shall require a bond under this section of at least
5-4 $100,000 if the district has authorized the issuance of bonds. If
5-5 the district has not authorized the issuance of bonds, the board
5-6 shall require a bond of at least $5,000.
5-7 SECTION 2.08. CONFLICT OF INTEREST: CONTRACT. A director
5-8 who is financially interested in a contract that is proposed to be
5-9 executed by the board for the purchase of property or services or
5-10 for the construction of facilities shall disclose the director's
5-11 interest to the board and may not vote on the acceptance of the
5-12 contract.
5-13 SECTION 2.09. DISTRICT EMPLOYEES. The board is authorized
5-14 to employ a general manager and consulting engineers, financial
5-15 consultants, attorneys, and auditors. The general manager shall be
5-16 responsible for:
5-17 (1) administering the board's directives;
5-18 (2) maintaining district records, including minutes of
5-19 board meetings;
5-20 (3) coordinating with federal, state, and local
5-21 agencies;
5-22 (4) developing plans and programs for the board's
5-23 approval;
5-24 (5) hiring, supervising, training, and discharging the
5-25 district's employees;
5-26 (6) obtaining technical, scientific, legal, fiscal, or
6-1 other professional services for the district; and
6-2 (7) performing other duties as assigned by the board.
6-3 SECTION 2.10. EMPLOYEE BONDS. (a) The general manager and
6-4 each employee of the district who is charged with the collection,
6-5 custody, or payment of district money shall execute a fidelity bond
6-6 in an amount determined by the board and in a form and with a
6-7 surety approved by the board.
6-8 (b) The district shall pay the premium on a bond under this
6-9 section.
6-10 SECTION 2.11. PRINCIPAL OFFICE. (a) If the district has
6-11 not issued bonds, the district may maintain its principal office in
6-12 Fort Bend County or Travis County. If the district maintains its
6-13 principal office in Travis County, the district shall maintain
6-14 duplicates of district records in Fort Bend County and make the
6-15 duplicate records available for inspection during regular business
6-16 hours.
6-17 (b) If the district has issued bonds, the district shall
6-18 maintain its principal office in Fort Bend County.
6-19 SECTION 2.12. RECORDS. (a) The district shall keep at its
6-20 principal office:
6-21 (1) a complete and accurate account of the district's
6-22 business transactions in accordance with generally accepted
6-23 accounting methods;
6-24 (2) a complete and accurate record of the minutes of
6-25 board meetings; and
6-26 (3) contracts, documents, and other records of the
7-1 district.
7-2 (b) The district shall permit reasonable public inspection
7-3 of the district's records during regular business hours.
7-4 SECTION 2.13. SUIT. The district may sue and be sued in the
7-5 district's corporate name.
7-6 ARTICLE 3. AUTHORITY OF DISTRICT
7-7 SECTION 3.01. POWERS AND DUTIES. (a) The district shall:
7-8 (1) administer and enforce the provisions of this Act;
7-9 (2) use the facilities and powers of the district to
7-10 accomplish the purposes of this Act;
7-11 (3) coordinate water, wastewater, and drainage
7-12 services within the district; and
7-13 (4) control and abate water pollution within the
7-14 district.
7-15 (b) When designing utility infrastructure and related
7-16 systems, the district shall submit the district's design plans and
7-17 specifications for the utility infrastructure and related systems
7-18 for review and approval to the City of Houston. The district shall
7-19 pay to the city a fee for conducting the review if the city has
7-20 established a fee that has general application for comparable
7-21 reviews. The city shall complete the review of the design plans
7-22 and specifications not later than the 60th day after the date on
7-23 which the plans and specifications are delivered to the city. In
7-24 constructing the utility infrastructure, the district shall meet or
7-25 exceed the city construction standards for materials and
7-26 installation specifications.
8-1 (c) Subject to the authority of the Texas Natural Resource
8-2 Conservation Commission, the district has the authority to control
8-3 and abate water pollution within the district. The authority of
8-4 the district under this subsection does not reduce or eliminate the
8-5 authority of the city to control and abate water pollution within
8-6 the district under state or federal law.
8-7 (d) Except as provided by this Act, the district has the
8-8 powers, rights, and privileges necessary and convenient for
8-9 accomplishing the purposes of this Act as provided by general law
8-10 relating to a municipal utility district or water control and
8-11 improvement district created under Section 59, Article XVI, Texas
8-12 Constitution.
8-13 (e) The powers granted to the district by this Act are
8-14 cumulative of powers granted by other law.
8-15 SECTION 3.02. DISTRICT RULES. (a) The district may adopt
8-16 and enforce rules reasonably required to implement this Act,
8-17 including rules governing procedure and practice before the board.
8-18 (b) The district shall keep a record of the district's rules
8-19 and provide a copy of the rules to a person on written request.
8-20 SECTION 3.03. INSPECTIONS AND INVESTIGATIONS. In addition
8-21 to the powers provided by Section 49.221, Water Code, the district
8-22 may enter public or private property located within the district
8-23 for purposes of inspecting and investigating conditions of the
8-24 property relating to the district's authorized purposes. The
8-25 district shall conduct an inspection or investigation in accordance
8-26 with provisions and restrictions applicable to the Texas Natural
9-1 Resource Conservation Commission.
9-2 SECTION 3.04. HEARINGS AND ORDERS. (a) The board may:
9-3 (1) hold hearings, receive evidence from a party in
9-4 interest who appears before the board, compel the attendance of a
9-5 witness, and make findings of fact and determinations relating to
9-6 the administration of this Act or an order or rule of the board;
9-7 and
9-8 (2) delegate the authority to take testimony and
9-9 administer oaths in a hearing held by the district to a member of
9-10 the board or an employee of the district.
9-11 (b) An order of the board must:
9-12 (1) be in the name of the district; and
9-13 (2) be attested to by the appropriate members of the
9-14 board under the district's rules.
9-15 SECTION 3.05. CIVIL PENALTY; INJUNCTION. (a) A person who
9-16 violates a rule, permit, or order of the district is subject to a
9-17 civil penalty of not less than $50 and not more than $1,000 for
9-18 each violation or each day of a continuing violation.
9-19 (b) The district may sue to enjoin a threatened or present
9-20 activity or to recover the penalty in a district court in the
9-21 county in which the violation occurred. A penalty recovered under
9-22 this subsection shall be paid to the district.
9-23 SECTION 3.06. PERMITS; CONTRACTS; COOPERATIVE AGREEMENTS.
9-24 (a) The district is authorized to obtain water appropriation
9-25 permits, construction permits, and other water and wastewater
9-26 discharge permits from the Texas Natural Resource Conservation
10-1 Commission or from permit owners. The district is authorized to
10-2 acquire water or a water supply from a person, firm, corporation,
10-3 municipal corporation, or public agency, the state, the United
10-4 States, or any agency of the state or the United States. The board
10-5 may contract with one or more substantial users of water to acquire
10-6 a water supply under an agreed allocation of storage space between
10-7 the district and the user or the district may contract for the
10-8 district's water supply independently. The district is authorized
10-9 to collect, transport, process, dispose of, and control all
10-10 domestic, industrial, and communal wastes, whether in fluid, solid,
10-11 or composite state. The district is authorized to contract with a
10-12 person, firm, corporation, municipal corporation, or public agency,
10-13 the state, the United States, or any agency of the state or the
10-14 United States for the collection, transportation, processing,
10-15 disposition, and control of all domestic, industrial, and communal
10-16 wastes. The authority of the district under this subsection
10-17 includes the authority to enter into contracts involving
10-18 coordinated infrastructure or regional utility plans. The district
10-19 may not unilaterally require a person, firm, corporation, municipal
10-20 corporation, public agency, or other entity to fund or construct
10-21 utility infrastructure for purposes of extending utilities to the
10-22 district.
10-23 (b) The district may enter into a contract with the state, a
10-24 municipality, an entity created under Section 59, Article XVI,
10-25 Texas Constitution, or another entity to supply water or to provide
10-26 services relating to domestic, industrial, or commercial waste.
11-1 The district is authorized to contract with a person, a
11-2 municipality, or an entity created under Section 59, Article XVI,
11-3 Texas Constitution, to rent, lease, or operate water production,
11-4 water supply, water filtration or purification, and water supply
11-5 facilities and facilities to provide services relating to the
11-6 wastes of the person, municipality, or entity for a consideration
11-7 as agreed to by the district and the person, municipality, or
11-8 entity. A contract under this subsection may provide that the
11-9 contract continues in effect until specified bonds or notes and
11-10 refunding bonds issued in lieu of the bonds or notes are paid. A
11-11 municipality or entity described by this subsection is authorized
11-12 to enter into a contract with the district to fix, charge, and
11-13 collect fees, rates, charges, rentals, or other amounts for a
11-14 service or facility provided under a contract with the district and
11-15 may pledge amounts that are sufficient to make the payments
11-16 required under the contract.
11-17 (c) For purposes of land use planning, the district shall
11-18 encourage owners and developers of land located within the district
11-19 to use and develop the land and buildings in compliance with
11-20 building, housing, and fire codes, subdivision and zoning
11-21 regulations, thoroughfare, water conservation, and land use plans,
11-22 and other land development and safety regulations of the city.
11-23 SECTION 3.07. FACILITIES. (a) In addition to the authority
11-24 provided by Sections 49.218 and 54.201, Water Code, the district
11-25 may purchase, construct, acquire, own, lease, operate, maintain,
11-26 repair, improve, and extend, at any location within or outside of
12-1 the district, land, or an interest in land, a work, an improvement,
12-2 a facility, a plant, equipment, or an appliance that is incident,
12-3 helpful, or necessary to provide for:
12-4 (1) the control, storage, preservation, transmission,
12-5 treatment, and distribution and use of storm water and floodwater,
12-6 the water of rivers and streams, and underground water for
12-7 municipal, domestic, industrial, and other beneficial uses; and
12-8 (2) the collection, transportation, processing,
12-9 disposition, and control of domestic, industrial, or commercial
12-10 wastes.
12-11 (b) The district may:
12-12 (1) enter into a contract with a person, firm,
12-13 corporation, municipality, entity created under Section 59, Article
12-14 XVI, Texas Constitution, municipal corporation, public agency, or
12-15 other political subdivision of the state; and
12-16 (2) perform any other act consistent with the powers
12-17 of the district and necessary to fulfill the purposes of this Act.
12-18 SECTION 3.08. ACQUISITION AND DISPOSITION OF PROPERTY. The
12-19 district may use a public roadway, street, alley, or easement in
12-20 Fort Bend County to accomplish the purposes of the district. The
12-21 district is not required to obtain a franchise or other
12-22 governmental agreement to use a roadway, street, alley, or easement
12-23 that is owned by the city if, before using the roadway, street,
12-24 alley, or easement, the district obtains written consent of the
12-25 city to the particular use. The district shall pay a fee to a city
12-26 for the use of the roadway, street, alley, or easement that equals
13-1 the lesser of the district's pro rata share, based on actual area
13-2 encumbered, of the fair market value or the initial purchase price
13-3 for the roadway, street, alley, or easement.
13-4 SECTION 3.09. RELOCATION OF FACILITIES. The district may
13-5 relocate, raise, reroute, or change the grade of, or alter the
13-6 construction of, a highway, railroad, electric transmission line,
13-7 pipeline, canal, or drainage ditch, if deemed necessary by the
13-8 board. The district shall pay for any relocation, raising,
13-9 rerouting, changing, or altering under this section, unless
13-10 otherwise agreed in writing by the interested parties. The cost of
13-11 replacement is limited to the comparable replacement of any
13-12 replaced facility, less the replaced facility's net salvage value.
13-13 ARTICLE 4. GENERAL FISCAL PROVISIONS
13-14 SECTION 4.01. DISBURSEMENT OF MONEY. The district may
13-15 disburse money only by check, draft, order, or other instrument
13-16 signed by a person authorized in the bylaws of the district or by
13-17 board resolution.
13-18 SECTION 4.02. FEES AND CHARGES. The district may establish
13-19 fees and charges not to exceed the amounts necessary to enable the
13-20 district to fulfill the obligations of the district as provided by
13-21 this Act.
13-22 SECTION 4.03. LOANS AND GRANTS. (a) The district may apply
13-23 for and receive a loan or grant from the state or the United
13-24 States, or any agency of the state or the United States, or from a
13-25 private entity, for purposes of exercising the powers of the
13-26 district.
14-1 (b) The district may not enter into an agreement under this
14-2 section that violates state or federal law.
14-3 SECTION 4.04. FISCAL YEAR. The board shall establish a
14-4 fiscal year for the district.
14-5 SECTION 4.05. DEPOSITORY BANKS. (a) The board, as provided
14-6 by this section, shall designate at least one bank to serve as a
14-7 depository for the funds of the district. Subject to Section
14-8 49.156, Water Code, the funds of the district shall be deposited in
14-9 a depository bank designated under this subsection.
14-10 (b) Before designating a depository bank, the board shall
14-11 publish notice at least once in a newspaper of general circulation
14-12 in the district to solicit applications from banks interested in
14-13 serving as a depository for the district. The notice shall include
14-14 the time and place of the board meeting at which the board proposes
14-15 to designate a depository bank. The board shall prescribe the term
14-16 of service of a depository bank designated under Subsection (a) of
14-17 this section.
14-18 (c) The board shall review an application received under
14-19 Subsection (b) of this section, including examining the management
14-20 and condition of each bank submitting an application. In reviewing
14-21 an application under this subsection, the board may consider:
14-22 (1) the terms and conditions proposed by a bank for
14-23 handling the district's money;
14-24 (2) the management of the bank; and
14-25 (3) the ability of the bank to handle the district's
14-26 money.
15-1 (d) A bank is not disqualified from being a depository under
15-2 this section because an officer or a director of the bank is a
15-3 member of the board.
15-4 (e) An officer or a director of a bank is not disqualified
15-5 from being a member of the board.
15-6 (f) If the board does not receive an application under this
15-7 section, the board may designate a bank as depository on terms that
15-8 the board finds proper.
15-9 ARTICLE 5. BOND AND TAX PROVISIONS
15-10 SECTION 5.01. TAXES; REVENUE BONDS. (a) For purposes of
15-11 exercising the authority of the district as provided by this Act,
15-12 the district may issue bonds or other obligations that are:
15-13 (1) secured by ad valorem taxes;
15-14 (2) secured by a pledge of all or part of the revenues
15-15 accruing to the district, including revenues received from the sale
15-16 of water or other products, the rendition of service, tolls,
15-17 charges, and any other source of revenue, other than ad valorem
15-18 taxes; and
15-19 (3) secured by both a pledge of all or part of the
15-20 revenues described by Subdivision (2) of this subsection and ad
15-21 valorem taxes.
15-22 (b) An obligation issued by the district shall be authorized
15-23 by resolution of the board, issued in the name of the district,
15-24 signed by the president or vice president, attested to by the
15-25 secretary, and bear the seal of the district. The signatures of
15-26 the president or vice president and the secretary may be printed or
16-1 lithographed on the obligation. The seal of the district may be
16-2 impressed, printed, or lithographed on the obligation. An
16-3 obligation issued by the district:
16-4 (1) shall be in a form prescribed by the board;
16-5 (2) may be in any denomination;
16-6 (3) shall mature serially or otherwise not later than
16-7 50 years from the date of issuance;
16-8 (4) may bear any interest rate;
16-9 (5) may be sold at a price and under terms determined
16-10 by the board to be the most advantageous available;
16-11 (6) may, in the discretion of the board, be made
16-12 callable before maturity at times and prices as provided in the
16-13 obligation;
16-14 (7) may be made registrable as to principal or
16-15 principal and interest; and
16-16 (8) may be secured by an indenture of trust with a
16-17 corporate trustee.
16-18 (c) An obligation under this section may be issued in more
16-19 than one series as required to carry out the purposes of this Act.
16-20 A pledge of revenue may reserve the right to issue additional
16-21 obligations under conditions specified on the pledge. An
16-22 additional obligation is on a parity with or subordinate to the
16-23 original obligation.
16-24 (d) The district is an "issuer" as defined by Section 1,
16-25 Chapter 656, Acts of the 68th Legislature, Regular Session, 1983
16-26 (Article 717q, Vernon's Texas Civil Statutes).
17-1 (e) A board resolution authorizing an obligation or a trust
17-2 indenture under this section may include additional terms to
17-3 provide for a corporate trustee or receiver to take possession of
17-4 facilities of the district in the event of default by the district
17-5 relating to the obligation or trust indenture. The additional
17-6 terms, if any, constitute a contract between the district and the
17-7 owner of the obligation.
17-8 (f) The district may not issue bonds that are secured by or
17-9 otherwise encumber permanent school fund land located within the
17-10 district.
17-11 SECTION 5.02. BOND ANTICIPATION NOTES. The district may
17-12 issue bond anticipation notes for purposes of exercising the powers
17-13 of the district. Bond anticipation notes may be secured by a
17-14 pledge of all or part of the revenues of the district. The
17-15 district may authorize the issuance of bonds to pay the principal
17-16 of and interest on bond anticipation notes issued under this
17-17 section. Bond anticipation notes shall be secured by a pledge of
17-18 all or part of the revenues of the district and may be issued on a
17-19 parity with or subordinate to outstanding bonds of the issuer. If
17-20 the resolution or trust agreement authorizing the issuance of bond
17-21 anticipation notes contains a covenant that the notes are payable
17-22 from the proceeds of subsequently issued bonds, the district is not
17-23 required to demonstrate that the revenues that may be pledged to
17-24 the notes are sufficient to pay the principal of and interest on
17-25 the notes for purposes of receiving approval of the attorney
17-26 general or registration by the comptroller.
18-1 SECTION 5.03. REFUNDING BONDS. (a) The district may issue
18-2 refunding bonds to refund outstanding bonds and interest as
18-3 authorized by this Act.
18-4 (b) Refunding bonds may:
18-5 (1) be issued to refund one or more series of
18-6 outstanding bonds;
18-7 (2) combine the pledges for the outstanding bonds for
18-8 the security of the refunding bonds; or
18-9 (3) be secured by additional revenues.
18-10 (c) Refunding bonds may be issued without holding an
18-11 election to authorize the issuance of the bonds. The provisions of
18-12 this Act relating to the issuance of other bonds by the district,
18-13 security for the bonds, approval by the attorney general, and
18-14 remedies of the holders of the bonds apply to refunding bonds.
18-15 (d) Refunding bonds shall be registered by the comptroller
18-16 on surrender and cancellation of the bonds to be refunded or, if
18-17 the resolution authorizing the issuance of refunding bonds provides
18-18 that the bonds shall be sold and the proceeds deposited in the bank
18-19 where the bonds to be refunded are payable, the refunding bonds may
18-20 be issued in an amount sufficient to pay the principal and interest
18-21 of the bonds to be refunded to their option or maturity date. The
18-22 comptroller shall register the refunding bonds without concurrent
18-23 surrender and cancellation of the bonds to be refunded.
18-24 SECTION 5.04. APPROVAL AND REGISTRATION OF BONDS. District
18-25 bond review and approval is governed by Subchapter F, Chapter 49,
18-26 Water Code.
19-1 SECTION 5.05. BONDS ARE AUTHORIZED INVESTMENTS. All bonds
19-2 and notes of the district are legal and authorized investments for
19-3 banks, savings banks, trust companies, savings and loan
19-4 associations, insurance companies, fiduciaries, trustees, and
19-5 guardians and for the sinking funds of municipalities, counties,
19-6 school districts, or other political corporations or subdivisions
19-7 of the state. Bonds and notes of the district are eligible to
19-8 secure the deposit of any and all public funds of the state and any
19-9 and all public funds of municipalities, counties, school districts,
19-10 or other political corporations or subdivisions of the state.
19-11 Bonds and notes of the district are lawful and sufficient security
19-12 for the deposits to the extent of their value.
19-13 SECTION 5.06. TAXATION. (a) Except for land owned by the
19-14 state, the board may levy and collect ad valorem taxes on land
19-15 within the district for maintenance, improvements, and
19-16 administration relating to the district in amounts approved by the
19-17 qualified voters of the district in an election held for that
19-18 purpose.
19-19 (b) A maintenance tax or an administration tax shall not
19-20 exceed the maximum approved rate and an approved rate shall remain
19-21 in effect unless a different rate is approved by the qualified
19-22 voters in a subsequent election.
19-23 SECTION 5.07. PROPERTY: RENDITION; VALUATION; LEVY.
19-24 (a) Except as provided by this section, the rendition and
19-25 assessment of property for taxation, the equalization of values,
19-26 and the collection of taxes for the benefit of the district shall
20-1 be conducted in accordance with the law applicable to counties to
20-2 the extent possible.
20-3 (b) The tax assessor-collector of each county shall act as
20-4 the tax assessor-collector for the district for district property
20-5 located in the county. The tax assessor-collector in each county
20-6 shall place on the county tax rolls a column or columns as
20-7 necessary to show the taxes, including the amount of taxes, levied
20-8 by the district, based on the value of the property as approved and
20-9 equalized. The fee charged by each county tax assessor-collector
20-10 for assessing and collecting taxes is one percent of the taxes
20-11 collected and shall be paid and disbursed by the district in the
20-12 same manner as other fees of office.
20-13 (c) The mechanisms available to enforce the collection of
20-14 state and county taxes may be used by the district to enforce the
20-15 collection of taxes levied by the district. The district is
20-16 entitled to require the officers of each county to enforce and
20-17 collect the taxes due to the district in that county as provided
20-18 for the enforcement of state and county taxes.
20-19 (d) Taxes assessed and levied for the benefit of the
20-20 district shall be payable and shall become delinquent at the same
20-21 time, in the same manner, and subject to the same discount for
20-22 advance payment as taxes levied by and for the benefit of the
20-23 county in which the property is taxable. The fee for collecting
20-24 delinquent taxes through prosecution of suit is 15 percent of the
20-25 taxes collected by the suit, to be paid and disbursed by the
20-26 district in the same manner as other fees of office.
21-1 (e) At the same time that the commissioners court levies
21-2 county taxes, the board shall levy a tax on all taxable property in
21-3 the district that is subject to taxation. The board shall
21-4 immediately certify the tax rate to the tax assessor-collector of
21-5 each county that contains territory within the district.
21-6 ARTICLE 6. ADDITION OF LAND TO DISTRICT
21-7 SECTION 6.01. ANNEXATION. Notwithstanding any other law,
21-8 additional territory may be added to the district as provided by
21-9 Sections 6.02, 6.03, and 6.04 of this Act.
21-10 SECTION 6.02. PETITION. (a) An owner or owners of land,
21-11 whether or not contiguous to the territory of the district, may
21-12 file with the board a petition requesting that the land described
21-13 in the petition by metes and bounds or by lot and block number, if
21-14 there is a recorded plat of the area, be included in the district.
21-15 (b) A petition under Subsection (a) of this section shall be
21-16 signed and executed in the manner provided by law for the
21-17 conveyance of real estate.
21-18 (c) The board shall hear and consider a petition received
21-19 under Subsection (a) of this section and may add to the district
21-20 the land described in the petition if:
21-21 (1) the board determines that adding the land to the
21-22 district is advantageous to the district; and
21-23 (2) the water system and other improvements of the
21-24 district are sufficient or will be sufficient to provide service to
21-25 the land added to the district without injuring the land in the
21-26 district before the petition is granted.
22-1 SECTION 6.03. NOTICE AND HEARING. (a) A petition
22-2 requesting that the district annex a defined area shall be filed
22-3 with the secretary of the board and shall be signed by:
22-4 (1) a majority in value of the owners of land in the
22-5 defined area, as shown by the tax rolls of the county or counties
22-6 in which the defined area is located, if the number of landowners
22-7 in the defined area is 50 or less; or
22-8 (2) 50 landowners if the number of landowners in the
22-9 defined area is more than 50.
22-10 (b) The board shall issue an order setting a time and place
22-11 to hear a petition filed under Subsection (a) of this section. The
22-12 hearing shall be held not earlier than the 15th day after the date
22-13 on which the board issues the order.
22-14 (c) The secretary shall issue a notice providing the time
22-15 and place of the hearing set under Subsection (b) of this section
22-16 and describing the area proposed to be annexed. Notice of the
22-17 hearing shall be given by:
22-18 (1) posting copies of the notice in three public
22-19 places in the district and in one public place in the area proposed
22-20 to be annexed for at least seven days before the date of the
22-21 hearing; and
22-22 (2) publishing a copy of the notice in a newspaper of
22-23 general circulation in the county or counties in which the area
22-24 proposed to be annexed is located at least seven days before the
22-25 date of the hearing.
22-26 (d) If the board finds that the proposed annexation is
23-1 feasible and practicable and would benefit the district and the
23-2 area proposed to be added to the district, the board may by order
23-3 receive all or a part of the proposed area as an addition to and
23-4 part of the district. An order issued by the board under this
23-5 subsection shall describe the area added to the district and be
23-6 entered in the minutes.
23-7 SECTION 6.04. ANNEXATION ORDER. (a) A copy of the order
23-8 adding land to the district shall be signed by a majority of the
23-9 members of the board, attested to by the secretary of the board,
23-10 and filed and recorded in the deed records of the county or
23-11 counties in which the district is located.
23-12 (b) On the date that the order is recorded as required by
23-13 Subsection (a) of this section, the area described in the order is
23-14 included in the territory of the district.
23-15 ARTICLE 7. EXCLUSION OF LAND FROM DISTRICT
23-16 SECTION 7.01. PETITION. (a) Notwithstanding any other law,
23-17 the board may, if there is no outstanding board order relating to
23-18 an election for the authorization of bonds payable in whole or in
23-19 part from taxes and the district does not have outstanding
23-20 indebtedness secured by taxes or net revenues of the district,
23-21 order a hearing to be held to exclude land from the district on
23-22 petition of a landowner or on motion of the board.
23-23 (b) A petition to exclude land from the district must
23-24 specifically describe the land to be excluded by metes and bounds
23-25 or by reference to a plat recorded in the plat records of the
23-26 county or counties in which the land is located. The petition must
24-1 be signed by at least 10 percent of the owners of land in the area
24-2 to be excluded or, if the number of owners of land is more than 50,
24-3 by at least five of the owners of land. The petition must be filed
24-4 with the district before the seventh day preceding the date the
24-5 hearing is held to consider the petition. The petition must
24-6 clearly state the grounds supporting the exclusion of the land from
24-7 the district. The board may consider only the grounds stated in
24-8 the petition.
24-9 SECTION 7.02. NOTICE AND HEARING. (a) The board shall hold
24-10 a hearing on petition of a landowner to exclude land from the
24-11 district.
24-12 (b) Notice of hearing under this section shall be published
24-13 by the board once a week for two consecutive weeks in one or more
24-14 newspapers of general circulation in the district. The first
24-15 notice shall be published not earlier than the 40th day or later
24-16 than the 14th day preceding the date of the hearing.
24-17 (c) The board may not exclude land from the district unless
24-18 the board determines that:
24-19 (1) the district has no obligations that will be
24-20 impaired by the exclusion of the land;
24-21 (2) the district will incur no obligations as a result
24-22 of the exclusion; and
24-23 (3) the exclusion is in the best interests of the
24-24 district.
24-25 (d) The board, after considering all engineering data and
24-26 other evidence presented at the hearing and making the
25-1 determinations required by Subsection (c) of this section, shall
25-2 enter an order excluding the land from the district and redefining
25-3 the boundaries of the district as appropriate. If land proposed to
25-4 be excluded contains water or wastewater customers of the district,
25-5 the customers remain customers of the district. Owners of lots
25-6 within the land proposed to be excluded in which water and
25-7 wastewater facilities have been extended retain the right to
25-8 connect to the district's water and wastewater system and become
25-9 district customers.
25-10 SECTION 7.03. EFFECTIVE DATE OF ORDER EXCLUDING LAND.
25-11 (a) Except as provided by Subsection (c) of this section, an order
25-12 of the board excluding land from the district on petition signed by
25-13 the owner or owners of land that is proposed to be excluded takes
25-14 effect on the date on which the board enters the order.
25-15 (b) Except as provided by Subsection (c) of this section, an
25-16 order excluding land from the district on petition signed by less
25-17 than all the owners of land that is proposed to be excluded takes
25-18 effect:
25-19 (1) on the day immediately following the date on which
25-20 a petition under Section 7.04 of this Act must be received by the
25-21 board if the district does not receive a petition under that
25-22 section; or
25-23 (2) on the day immediately following the date on which
25-24 the election returns are canvassed if the exclusion is ratified at
25-25 an election under Section 7.04 of this Act.
25-26 (c) An order excluding land from the district under this
26-1 section may not take effect unless all taxes levied and assessed by
26-2 the district within the land that is proposed to be excluded are
26-3 paid in full.
26-4 SECTION 7.04. PETITION FOR RATIFICATION ELECTION. (a) If
26-5 the board issues an order excluding land on petition signed by less
26-6 than all the owners of land in the area proposed to be excluded,
26-7 the board shall publish a notice that describes the excluded land
26-8 and states that the exclusion will become final unless the board
26-9 receives, not later than the 25th day after the date on which the
26-10 board issues the order, a petition requesting a ratification
26-11 election. A petition under this subsection must be signed by at
26-12 least 10 percent of the qualified voters residing in the area that
26-13 is proposed to be excluded from the district.
26-14 (b) If the board receives a petition under Subsection (a) of
26-15 this section, the order excluding land from the district is not
26-16 effective unless the exclusion is approved by a majority vote of
26-17 the residents of the district at a ratification election held for
26-18 that purpose.
26-19 (c) A ratification election, including notice of the
26-20 election and the qualifications of the voters, shall be conducted
26-21 as provided by Subchapter J, Chapter 49, Water Code.
26-22 ARTICLE 8. DIVISION OF DISTRICT
26-23 SECTION 8.01. CONDITIONS OF DIVISION. (a) The board may,
26-24 if the district does not have outstanding indebtedness secured by
26-25 taxes or net revenues, divide the territory of the district into
26-26 two or more districts. The board may not divide the territory of
27-1 the district if the division results in a district with territory
27-2 of less than 100 acres. On petition of a landowner or on motion of
27-3 the board, the board may consider a proposal to divide the original
27-4 district or any district subsequently created by division.
27-5 (b) The board may not divide territory of the district if
27-6 the division results in numerous utility providers within the
27-7 original territory of the district. The board may divide territory
27-8 of the district for purposes of encouraging and promoting orderly
27-9 development within the original territory of the district and
27-10 facilitating dependable and efficient utility service at affordable
27-11 rates to customers of the district.
27-12 (c) Creation of new districts by division of the district or
27-13 any districts resulting from the divisions of the district may be
27-14 accomplished with the necessity of complying with other
27-15 requirements of law, including, without limitation, the necessity
27-16 of obtaining any consent from any municipality in whose
27-17 extraterritorial jurisdiction any of the land in the district or
27-18 any proposed new district to be created by division might lie.
27-19 SECTION 8.02. PROVISIONS RELATING TO NEW DISTRICTS.
27-20 (a) Before the board may divide territory of the district or any
27-21 district resulting from a division under this article, the board
27-22 shall:
27-23 (1) determine the terms of the division, including a
27-24 plan to pay and perform the outstanding obligations of the
27-25 district; and
27-26 (2) prepare a metes and bounds description of the
28-1 proposed division.
28-2 (b) Except as provided by Section 8.03 of this Act, if the
28-3 board divides territory under this article, the board shall be
28-4 divided in an appropriate manner consistent with the division of
28-5 the district.
28-6 (c) Districts resulting from a division under this article
28-7 shall be designated in an appropriate manner. For example, Ft.
28-8 Bend County Municipal Utility District ___, if divided into two
28-9 districts, shall become Ft. Bend County Municipal Utility District
28-10 ___A and Ft. Bend County Municipal Utility District __B.
28-11 (d) A district resulting from a division under this article
28-12 shall obtain authorization for the issuance of bonds payable wholly
28-13 or partially from ad valorem taxes by a majority vote of the
28-14 qualified voters of the district voting in an election called and
28-15 held for that purpose.
28-16 (e) A district resulting from a division under this article
28-17 shall be required to obtain authorization for a maintenance tax by
28-18 a majority vote of the qualified voters of the district voting in
28-19 an election called and held for that purpose.
28-20 (f) Creation of new districts by division of the district or
28-21 any districts resulting from previous divisions of the district may
28-22 be accomplished without the necessity of complying with any other
28-23 requirements of law, without limitation, without the necessity of
28-24 obtaining any consent from any municipality in whose
28-25 extraterritorial jurisdiction any of the land in the district or
28-26 any proposed new district to be created by the division might lie.
29-1 SECTION 8.03. APPOINTMENT AND ELECTION OF DIRECTORS. (a) A
29-2 district resulting from a division under this article is a separate
29-3 district and shall be governed as a separate district.
29-4 (b) The board shall continue to act on behalf of the
29-5 district for 90 days after the date on which a division under this
29-6 article is approved for purposes of closing the district's affairs.
29-7 (c) The board shall appoint two initial directors for a
29-8 district resulting from a division under this article to serve
29-9 terms expiring September 1 of the first even-numbered year after
29-10 creation of the district, and three initial directors to serve
29-11 terms expiring September 1 of the second even-numbered year after
29-12 creation of the district. A member of the board may be appointed
29-13 as a director of a district resulting from a division under this
29-14 article.
29-15 (d) If a vacancy occurs on the board of directors of a
29-16 district resulting from a division under this article, the board of
29-17 directors of that district shall appoint a successor to serve for
29-18 the remainder of the unexpired term.
29-19 (e) A successor to the board of directors of a district
29-20 resulting from a division under this article shall be elected as
29-21 provided by Section 2.04 of this Act.
29-22 SECTION 8.04. PAYMENT OF DISTRICT DEBTS. A division of
29-23 territory of the district under this article may not impair the
29-24 current obligations or bond authorizations of the district. The
29-25 debts of the district may be paid by taxes, revenues, or
29-26 assessments levied on land in the district or by contributions from
30-1 each district resulting from a division under this article on terms
30-2 stated in the division proposed by the board under Section 8.02 of
30-3 this Act.
30-4 SECTION 8.05. AUTHORITY OF DISTRICTS RESULTING FROM A
30-5 DIVISION. A district resulting from a division under this article
30-6 shall have the power to incur and pay debts created by that
30-7 district, the power and authority granted to the district created
30-8 under this Act, and the authority to enter into contracts with
30-9 other districts resulting from a division under this article for
30-10 purposes of providing water and wastewater services or other
30-11 appropriate purpose.
30-12 SECTION 8.06. ASSUMPTION OF OBLIGATIONS. A district
30-13 resulting from a division under this article shall assume the
30-14 obligations of the district under an agreement or resolution
30-15 consenting to the creation of the district unless the agreement or
30-16 resolution imposes obligations that limit the powers and authority
30-17 of the district to issue bonds for a purpose authorized by this
30-18 Act. The remaining obligations of the district shall be divided on
30-19 a pro rata basis among the districts resulting from a division
30-20 under this article based on the number of acres in a district or on
30-21 terms agreed to by the districts resulting from a division under
30-22 this article.
30-23 SECTION 8.07. NOTICE TO TEXAS NATURAL RESOURCE CONSERVATION
30-24 COMMISSION. The district shall provide written notice of a plan to
30-25 divide the district under this article to the Texas Natural
30-26 Resource Conservation Commission not later than the 30th day after
31-1 the date on which the board of the district decides to divide the
31-2 district.
31-3 ARTICLE 9. ANNEXATION AND DISSOLUTION OF DISTRICT.
31-4 SECTION 9.01. ANNEXATION. (a) Notwithstanding any other
31-5 law, the city may annex the district, including districts resulting
31-6 from a division under Article 8 of this Act, only if the city:
31-7 (1) assumes the outstanding indebtedness of the
31-8 district or districts;
31-9 (2) dissolves the district or districts not later than
31-10 six months after the date of annexation;
31-11 (3) assumes the assets, including all accounts
31-12 receivable and the right to collect outstanding taxes, delinquent
31-13 taxes, and other indebtedness of the district or districts;
31-14 (4) refrains from imposing municipal taxes on property
31-15 located within the district or districts before the dissolution of
31-16 the district or districts;
31-17 (5) provides municipal utility, emergency medical,
31-18 fire, police, garbage collection, and other standard municipal
31-19 services to the residents of the district or districts at the same
31-20 rate as is charged to residents within the municipality, or
31-21 residents of similar developments; and
31-22 (6) complies with regional land use planning within
31-23 the district.
31-24 (b) Nothwithstanding Subsection (a)(5) of this section, a
31-25 municipality that annexes and dissolves the district or districts
31-26 may impose water supply fees, impact fees, and other assessments
32-1 allowed by state law on property previously located within the
32-2 district or districts, except for property that has received a
32-3 utility service allocation by the district or districts or property
32-4 in which site development has been authorized or commenced.
32-5 (c) The district or districts shall transfer all assets of
32-6 the district or districts to a municipality that annexes and
32-7 dissolves the district or districts, as provided by instruments
32-8 approved by the municipality and district or districts.
32-9 ARTICLE 10. MISCELLANEOUS PROVISIONS
32-10 SECTION 10.01. TAX EXEMPTION. The purposes stated in this
32-11 Act are for the benefit of the people of the state, including the
32-12 improvement of property and industry. The district, in carrying
32-13 out the purposes of this Act, is performing an essential public
32-14 function under the constitution and is not required to pay a tax or
32-15 assessment on a project of the district or on the bonds or notes
32-16 issued by the district under this Act, including the transfer of,
32-17 the income from, and the profits made on the sale of issued bonds
32-18 and notes.
32-19 SECTION 10.02. INITIAL ELECTION. Notwithstanding Section
32-20 2.04 of this Act, the district shall hold its first election for
32-21 permanent directors on the first Saturday in May 2002.
32-22 SECTION 10.03. FINDINGS RELATING TO PROCEDURAL REQUIREMENTS.
32-23 (a) The proper and legal notice of the intention to introduce this
32-24 Act, setting forth the general substance of this Act, has been
32-25 published as provided by law, and the notice and a copy of this Act
32-26 have been furnished to all persons, agencies, officials, or
33-1 entities to which they are required to be furnished by the
33-2 constitution and other laws of this state, including the governor,
33-3 who has submitted the notice and Act to the Texas Natural Resource
33-4 Conservation Commission.
33-5 (b) The Texas Natural Resource Conservation Commission has
33-6 filed its recommendations relating to this Act with the governor,
33-7 lieutenant governor, and speaker of the house of representatives
33-8 within the required time.
33-9 (c) All requirements of the constitution and laws of this
33-10 state and the rules and procedures of the legislature with respect
33-11 to the notice, introduction, and passage of this Act are fulfilled
33-12 and accomplished.
33-13 SECTION 10.04. SEVERABILITY. If any word, phrase, clause,
33-14 sentence, paragraph, section, or other part of this Act or the
33-15 application of this Act to any person or circumstance is ever held
33-16 to be invalid or unconstitutional by a court of competent
33-17 jurisdiction in this state, the remainder of the Act and the
33-18 application of that word, phrase, clause, sentence, paragraph,
33-19 section, or other part of this Act to other persons or
33-20 circumstances are not affected by that holding. To the extent of a
33-21 conflict between a provision of this Act and any other law or
33-22 statute, this Act controls.
33-23 SECTION 10.05. EMERGENCY. The importance of this
33-24 legislation and the crowded condition of the calendars in both
33-25 houses create an emergency and an imperative public necessity that
33-26 the constitutional rule requiring bills to be read on three several
34-1 days in each house be suspended, and this rule is hereby suspended,
34-2 and that this Act take effect and be in force from and after its
34-3 passage, and it is so enacted.