H.B. No. 3569
relating to the creation, administration, powers, duties,
operation, and financing of the Zapata County Municipal Utility
District No. 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 6, Special District Local Laws
Code, is amended by adding Chapter 8152 to read as follows:
CHAPTER 8152. ZAPATA COUNTY MUNICIPAL UTILITY DISTRICT NO. 2
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8152.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the
(2) "Director" means a member of the board.
(3) "District" means the Zapata County Municipal
Utility District No. 2.
Sec. 8152.002. NATURE OF DISTRICT. The district is a
municipal utility district in Zapata County created under and
essential to accomplish the purposes of Section 59, Article XVI,
Sec. 8152.003. CONFIRMATION ELECTION REQUIRED. If the
creation of the district is not confirmed at a confirmation
election held under Section 8152.023 before September 1, 2007:
(1) the district is dissolved September 1, 2007,
(A) any debts incurred shall be paid;
(B) any assets that remain after the payment of
debts shall be transferred to Zapata County; and
(C) the organization of the district shall be
maintained until all debts are paid and remaining assets are
(2) this chapter expires September 1, 2010.
Sec. 8152.004. INITIAL DISTRICT TERRITORY. The initial
territory of the district is coextensive with the service areas
covered by Certificates of Convenience and Necessity Nos. 12877 and
20850, as identified on the Texas Commission on Environmental
Quality official service area maps associated with those
[Sections 8152.005-8152.020 reserved for expansion]
SUBCHAPTER A1. TEMPORARY PROVISIONS
Sec. 8152.021. TEMPORARY DIRECTORS. (a) On or after
September 1, 2005, the commissioners of the Commissioners Court of
Zapata County and the county judge of Zapata County shall each
appoint one temporary director to serve as one of the five temporary
directors of the district.
(b) If a temporary director fails to qualify for office, the
person who appointed that temporary director shall appoint a person
to fill the vacancy.
(c) Temporary directors serve until the earlier of:
(1) the date directors are elected under Section
(2) the date this chapter expires under Section
Sec. 8152.022. ORGANIZATIONAL MEETING OF TEMPORARY
DIRECTORS. As soon as practicable after all the temporary
directors have qualified under Section 49.055, Water Code, the
temporary directors shall meet at a location in the district
agreeable to a majority of the directors. If a location cannot be
agreed upon, the meeting shall be at the Zapata County Courthouse.
At the meeting, the temporary directors shall elect officers from
among the temporary directors and conduct any other district
Sec. 8152.023. CONFIRMATION AND INITIAL DIRECTORS'
ELECTION. The temporary directors shall hold an election to
confirm the creation of the district and to elect five directors as
provided by Section 49.102, Water Code.
Sec. 8152.024. INITIAL ELECTED DIRECTORS; TERMS. The
directors elected under Section 8152.023 shall draw lots to
determine which two shall serve until the first regularly scheduled
election of directors under Section 8152.052 and which three shall
serve until the second regularly scheduled election of directors.
Sec. 8152.025. TRANSFER OF ASSETS. (a) If the district's
creation is confirmed under Section 8152.023, Zapata County shall
transfer to the district the assets, debts, and contractual rights
and obligations of the county associated with the Zapata County
Waterworks under Certificate of Convenience and Necessity No. 12877
and the sanitary sewer utility under Certificate of Convenience and
Necessity No. 20850.
(b) Not later than the 30th day after the date of the
transfer under Subsection (a), the Zapata County Waterworks and
Zapata County Certificates of Convenience and Necessity Nos. 12877
and 20850 are considered to be held by the district.
(c) The Commissioners Court of Zapata County shall notify
the Texas Commission on Environmental Quality of the transfer of
Certificates of Convenience and Necessity Nos. 12877 and 20850 to
(d) On receipt of notice under Subsection (c), the Texas
Commission on Environmental Quality shall note in its records that
Certificates of Convenience and Necessity Nos. 12877 and 20850 are
held by the district and shall reissue the certificates in the name
of the district without further application or notice.
Sec. 8152.026. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2010.
[Sections 8152.027-8152.050 reserved for expansion]
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8152.051. DIRECTORS; TERMS. (a) The district is
governed by a board of five directors.
(b) Directors serve staggered four-year terms.
Sec. 8152.052. ELECTION OF DIRECTORS. On the uniform
election date in November of each even-numbered year, the
appropriate number of directors shall be elected.
[Sections 8152.053-8152.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8152.101. MUNICIPAL UTILITY DISTRICT POWERS AND
DUTIES. The district has the powers and duties provided by the
general law of this state, including Chapters 49 and 54, Water Code,
applicable to municipal utility districts created under Section 59,
Article XVI, Texas Constitution.
[Sections 8152.102-8152.150 reserved for expansion]
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 8152.151. TAX TO REPAY BONDS. The district may impose
a tax to pay the principal of or interest on bonds issued under
[Sections 8152.152-8152.200 reserved for expansion]
SUBCHAPTER E. BONDS
Sec. 8152.201. AUTHORITY TO ISSUE BONDS AND OTHER
OBLIGATIONS. The district may issue bonds or other obligations as
provided by Chapters 49 and 54, Water Code, to finance the
construction, maintenance, or operation of projects under Section
SECTION 2. (a) The legal notice of the intention to
introduce this Act, setting forth the general substance of this
Act, has been published as provided by law, and the notice and a
copy of this Act have been furnished to all persons, agencies,
officials, or entities to which they are required to be furnished
under Section 59, Article XVI, Texas Constitution, and Chapter 313,
(b) The governor, one of the required recipients, has
submitted the notice and Act to the Texas Commission on
(c) The Texas Commission on Environmental Quality has filed
its recommendations relating to this Act with the governor, the
lieutenant governor, and the speaker of the house of
representatives within the required time.
(d) All requirements of the constitution and laws of this
state and the rules and procedures of the legislature with respect
to the notice, introduction, and passage of this Act are fulfilled
SECTION 3. This Act takes effect September 1, 2005.
President of the Senate Speaker of the House
I certify that H.B. No. 3569 was passed by the House on May
20, 2005, by a non-record vote.
Chief Clerk of the House
I certify that H.B. No. 3569 was passed by the Senate on May
24, 2005, by the following vote: Yeas 31, Nays 0.
Secretary of the Senate