WATER CODE
TITLE 4. GENERAL LAW DISTRICTS
CHAPTER 49. PROVISIONS APPLICABLE TO ALL DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
§ 49.001. DEFINITIONS. (a) As used in this chapter:
(1) "District" means any district or authority created
by authority of either Sections 52(b)(1) and (2), Article III, or
Section 59, Article XVI, Texas Constitution, regardless of how
created. The term "district" shall not include any navigation
district or port authority created under general or special law,
any conservation and reclamation district created pursuant to
Chapter 62, Acts of the 52nd Legislature, 1951 (Article 8280-141,
Vernon's Texas Civil Statutes), or any conservation and reclamation
district governed by Chapter 36 unless a special law creating the
district or amending the law creating the district states that this
chapter applies to that district.
(2) "Commission" means the Texas Natural Resource
Conservation Commission.
(3) "Board" means the governing body of a district.
(4) "Executive director" means the executive director
of the commission.
(5) "Water supply corporation" means a nonprofit water
supply or sewer service corporation created or operating under
Chapter 67.
(6) "Director" means either a supervisor or director
appointed or elected to the board.
(7) "Municipal solid waste" has the same meaning
assigned by Section 361.003, Health and Safety Code.
(8) "Special water authority" means a river authority
as that term is defined in Section 30.003, or a district created by
a special Act of the legislature that:
(A) is a provider of water or wastewater service
to two or more municipalities; and
(B) is governed by a board of directors appointed
or designated in whole or in part by the governor, the Texas Water
Development Board, or municipalities within its service area.
(9) "Potable water" means water that has been treated
for public drinking water supply purposes.
(10) "District facility" means tangible real and
personal property of the district, including any plant, equipment,
means, recreational facility as defined by Section 49.462, or
instrumentality owned, leased, operated, used, controlled,
furnished, or supplied for, by, or in connection with the business
or operations of a district. The term specifically includes a
reservoir or easement of a district.
(b) These definitions are for use in this chapter only and
have no effect on any other statute or code unless specifically
referenced by that statute or code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 62, § 18.66, eff. Sept. 1,
1999; Acts 1999, 76th Leg., ch. 1354, § 4, eff. Sept. 1, 1999;
Acts 2003, 78th Leg., ch. 343, § 1.
§ 49.002. APPLICABILITY. (a) Except as provided by
Subsection (b), this chapter applies to all general and special law
districts to the extent that the provisions of this chapter do not
directly conflict with a provision in any other chapter of this code
or any Act creating or affecting a special law district. In the
event of such conflict, the specific provisions in such other
chapter or Act shall control.
(b) This chapter does not apply to a district governed by
Chapter 36 unless a special law creating the district or amending
the law creating the district states that this chapter applies to
that district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 5, eff. Sept. 1,
1999.
§ 49.003. PENALTY. A district that fails to comply with
the filing provisions of this code may be subject to a civil penalty
of up to $100 per day for each day the district wilfully continues
to violate these provisions after receipt of written notice of
violation from the executive director by certified mail, return
receipt requested. The state may sue to recover the penalty.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.004. PENALTY FOR VIOLATION OF DISTRICT
RULES. (a) The board may set reasonable civil penalties for the
breach of any rule of the district that shall not exceed the
jurisdiction of a justice court as provided by Section 27.031,
Government Code.
(b) A penalty under this section is in addition to any other
penalty provided by the law of this state and may be enforced by
complaints filed in the appropriate court of jurisdiction in the
county in which the district's principal office or meeting place is
located.
(c) If the district prevails in any suit to enforce its
rules, it may, in the same action, recover reasonable fees for
attorneys, expert witnesses, and other costs incurred by the
district before the court. The amount of the attorney's fees shall
be fixed by the court.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
SUBCHAPTER B. CREATION
§ 49.010. ORDER OR ACT CREATING DISTRICT. Within 60
days after the date a district is created, the district shall file
with the executive director a certified copy of the order or
legislative Act creating the district or authorizing its creation,
unless the district was created by order of the commission.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.011. NOTICE APPLICABLE TO CREATION OF A DISTRICT BY
THE COMMISSION. (a) On receipt by the commission of all required
documentation associated with an application for creation of a
district by the commission under Chapter 36, 50, 51, 54, 55, 58, 65,
or 66, the commission shall issue a notice indicating that the
application is administratively complete.
(b) The commission by rule shall establish a procedure for
public notice and hearing of applications. The rules must require
an applicant to publish the notice issued by the commission under
Subsection (a) once a week for two consecutive weeks in a newspaper
regularly published or circulated in the county where the district
is proposed to be located not later than the 30th day before the
date on which the commission may act on the application.
(c) The commission may act on an application without holding
a public hearing if a public hearing is not requested by the
commission, the executive director, or an affected person in the
manner prescribed by commission rule during the 30 days following
the final publication of notice under Subsection (b).
(d) If the commission determines that a public hearing is
necessary, the commission shall advise all parties of the time and
place of the hearing. The commission is not required to provide
public notice of a hearing under this section.
Added by Acts 1997, 75th Leg., ch. 1070, § 2, eff. Sept. 1, 1997.
SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
§ 49.051. BOARD OF DIRECTORS. A district shall be
governed by its board, the number of which is otherwise provided by
law.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.052. DISQUALIFICATION OF DIRECTORS. (a) A person
is disqualified from serving as a member of a board of a district
that includes less than all the territory in at least one county and
which, if located within the corporate area of a city or cities,
includes within its boundaries less than 75 percent of the
incorporated area of the city or cities, if that person:
(1) is related within the third degree of affinity or
consanguinity to a developer of property in the district, any other
member of the board, or the manager, engineer, attorney, or other
person providing professional services to the district;
(2) is an employee of any developer of property in the
district or any director, manager, engineer, attorney, or other
person providing professional services to the district or a
developer of property in the district in connection with the
district or property located in the district;
(3) is a developer of property in the district;
(4) is serving as an attorney, consultant, engineer,
manager, architect, or in some other professional capacity for the
district or a developer of property in the district in connection
with the district or property located in the district;
(5)(A) is a party to a contract with or along with the
district except for the purchase of public services furnished by
the district to the public generally; or
(B) is a party to a contract with or along with a
developer of property in the district relating to the district or to
property within the district, other than a contract limited solely
to the purpose of purchasing or conveying real property in the
district for the purpose of either establishing a permanent
residence, establishing a commercial business within the district,
or qualifying as a director; or
(6) during the term of office, fails to maintain the
qualifications required by law to serve as a director.
(b) Within 60 days after the board determines a relationship
or employment exists which constitutes a disqualification under
Subsection (a), it shall replace the person serving as a member of
the board with a person who would not be disqualified.
(c) Any person who wilfully occupies an office as a member
of a board and exercises the powers and duties of that office when
disqualified under the provisions of Subsection (a) is guilty of a
misdemeanor and, on conviction, shall be fined not less than $100
nor more than $1,000.
(d) As used in this section, "developer of property in the
district" means any person who owns land located within a district
covered under this section and who has divided or proposes to divide
the land into two or more parts for the purpose of laying out any
subdivision or any tract of land or any addition to any town or
city, or for laying out suburban lots or building lots, or any lots,
streets, alleys, or parks or other portions intended for public
use, or the use of purchasers or owners of lots fronting thereon or
adjacent thereto.
(e) Any rights obtained by any third party through official
action of a board covered by this section are not impaired or
affected by the disqualification under this section of any member
of the board to serve, provided that the third party had no
knowledge at the time the rights were obtained of the fact that the
member of the board was disqualified to serve.
(f) This section shall not apply to special water
authorities, districts described in Section 49.181(h)(4), or a
district where the principal function of the district is to provide
irrigation water to agricultural lands or to provide nonpotable
water for any purpose.
(g) A board by unanimous vote of its remaining members may
remove a board member only if that board member has missed one-half
or more of the regular meetings scheduled during the prior 12
months. Any board member so removed may file a written appeal with
the commission within 30 days after receiving written notice of the
board action. The commission may reinstate a removed director if
the commission finds that the removal was unwarranted under the
circumstances, including the reasons for absences, the time and
place of the meetings missed, the business conducted at the
meetings missed, and any other facts or circumstances the
commission may deem relevant.
(h) This subsection applies only to a district that is
located wholly within the boundaries of a municipality with a
population of more than 1.5 million, that is governed by Chapter
375, Local Government Code, and that is governed by an appointed
board consisting of nine or more members. Notwithstanding
Subsection (f) or (g), a person is considered to have resigned from
serving as a member of the board if the person fails to attend three
consecutive meetings of the board. The remaining board members by
majority vote may waive the resignation under this subsection if
fairness requires that the absences be excused on the basis of
illness or other good cause.
(i) Notwithstanding any other law, a director is eligible to
serve on the board of a district governed by Chapter 375, Local
Government Code, regardless of the municipality in which the
director resides, if:
(1) the district is located within the boundaries of a
municipality with a population of more than 1.8 million; and
(2) all or a part of the district is located more than
five miles from the downtown city hall of that municipality.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 248, § 6, eff. June 18,
2003.
§ 49.053. QUORUM. A majority of the membership of the
board constitutes a quorum for any meeting, and a concurrence of a
majority of the entire membership of the board is sufficient for
transacting any business of the district. This section does not
apply to special water authorities.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.054. OFFICERS. (a) After a district is created
and the directors have qualified, the board shall meet, elect a
president, vice-president, secretary, and any other officers or
assistant officers as the board may deem necessary, and begin the
discharge of its duties.
(b) After each directors election, the board shall meet and
elect officers.
(c) The president is the chief executive officer of the
district, presides at all meetings of the board, and shall execute
all documents on behalf of the district unless the board by
resolution authorizes the general manager or other employee of the
district to execute a document or documents on behalf of the
district. The vice-president shall act as president in case of the
absence or disability of the president. The secretary is
responsible for seeing that all records and books of the district
are properly kept and may attest the president's signature on
documents.
(d) Repealed by Acts 2003, 78th Leg., ch. 1276, § 18.007.
(e) The board may appoint another director, the general
manager, or any employee as assistant or deputy secretary to assist
the secretary, and any such person shall be entitled to certify as
to the authenticity of any record of the district, including but not
limited to all proceedings relating to bonds, contracts, or
indebtedness of the district.
(f) After any election or appointment of a director, a
district shall notify the executive director within 30 days after
the date of the election or appointment of the name and mailing
address of the director chosen and the date that director's term of
office expires. The executive director shall provide forms to the
district for such purpose.
(g) This section does not apply to special water
authorities.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1259, § 1, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 1354, § 6, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 69, § 5, eff. May 14, 2001; Acts 2001,
77th Leg., ch. 1423, § 1, eff. June 17, 2001; Acts 2003, 78th
Leg., ch. 1276, § 18.007, eff. Sept. 1, 2003.
§ 49.055. SWORN STATEMENT, BOND, AND OATH OF
OFFICE. (a) As soon as practicable after a director is elected or
appointed, that director shall make the sworn statement prescribed
by the constitution for public office.
(b) As soon as practicable after a director has made the
sworn statement, and before beginning to perform the duties of
office, that director shall take the oath of office prescribed by
the constitution for public officers.
(c) Before beginning to perform the duties of office, each
director shall execute a bond for $10,000 payable to the district
and conditioned on the faithful performance of that director's
duties. All bonds of the directors shall be approved by the board
and paid for by the district.
(d) The sworn statement shall be filed as prescribed by the
constitution. The bond and oath shall be filed with the district
and retained in its records. A duplicate original of the oath shall
also be filed with the secretary of state within 10 days after its
execution and need not be filed before the new director begins to
perform the duties of office.
(e) This section does not apply to special water
authorities.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 249, § 2, eff. Aug. 30,
1999.
§ 49.056. GENERAL MANAGER. (a) The board may employ or
contract with a person to perform such services as general manager
for the district as the board may from time to time specify. The
board may delegate to the general manager full authority to manage
and operate the affairs of the district subject only to orders of
the board.
(b) The board may delegate to the general manager the
authority to employ all persons necessary for the proper handling
of the business and operation of the district and to determine the
compensation to be paid all employees other than the general
manager.
(c) Except as provided by Section 49.052, a director may be
employed as general manager of the district, but the compensation
of a general manager who also serves as a director shall be
established by the other directors.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.057. MANAGEMENT OF DISTRICT. (a) The board shall
be responsible for the management of all the affairs of the
district. The district shall employ or contract with all persons,
firms, partnerships, corporations, or other entities, public or
private, deemed necessary by the board for the conduct of the
affairs of the district, including, but not limited to, engineers,
attorneys, financial advisors, operators, bookkeepers, tax
assessors and collectors, auditors, and administrative staff.
(b) The board shall adopt an annual budget. All district
employees are employed at the will of the district unless the
district and employee execute a written employment contract.
(c) The board shall set the compensation and terms for
consultants.
(d) In selecting attorneys, engineers, auditors, financial
advisors, or other professional consultants, the district shall
follow the procedures provided in Subchapter A, Chapter 2254,
Government Code (Professional Services Procurement Act).
(e) The board shall require an officer, employee, or
consultant, including a bookkeeper, financial advisor, or system
operator, who routinely collects, pays, or handles any funds of the
district to furnish good and sufficient bond, payable to the
district, in an amount determined by the board to be sufficient to
safeguard the district. The board may require a consultant who does
not routinely collect, pay, or handle funds of the district to
furnish a bond. The bond shall be conditioned on the faithful
performance of that person's duties and on accounting for all funds
and property of the district. Such bond shall be signed or endorsed
by a surety company authorized to do business in the state.
(f) The board may pay the premium on surety bonds required
of officials, employees, or consultants of the district out of any
available funds of the district, including proceeds from the sale
of bonds.
(g) The board may adopt bylaws to govern the affairs of the
district to perform its purposes. The board may by resolution
authorize its general manager or other employee to execute
documents on behalf of the district.
(h) The board shall also have the right to purchase all
materials, supplies, equipment, vehicles, and machinery needed by
the district to perform its purposes.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 3, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 1354, § 7, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 69, § 2, eff. May 14, 2001; Acts 2001,
77th Leg., ch. 1423, § 2, eff. June 17, 2001; Acts 2003, 78th
Leg., ch. 1276, § 18.008, eff. Sept. 1, 2003.
§ 49.058. CONFLICTS OF INTEREST. A director of a
district is subject to the provisions of Chapter 171, Local
Government Code, relating to the regulation of conflicts of
interest of officers of local governments.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.059. DISQUALIFICATION OF TAX ASSESSOR AND
COLLECTOR. (a) No person may serve as tax assessor and collector
of a district providing potable water or sewer utility services to
household users if that person:
(1) is related within the third degree of affinity or
consanguinity to any developer of property in the district, a
member of the board, or the manager, engineer, or attorney for the
district;
(2) is or was within two years immediately preceding
the assumption of assessment and collection duties with the
district an employee of any developer of property in the district or
any director, manager, engineer, or attorney for the district;
(3) owns an interest in or is employed by any
corporation organized for the purpose of tax assessment and
collection services, a substantial portion of the stock of which is
owned by a developer of property within the district or any
director, manager, engineer, or attorney for the district; or
(4) is directly or through a corporation developing
land in the district or is a director, engineer, or attorney for the
district.
(b) Within 60 days after the board determines a relationship
or employment exists which constitutes a disqualification under
Subsection (a), it shall replace the person serving as tax assessor
and collector with a person who would not be disqualified.
(c) Any person who wilfully violates the provisions of
Subsection (a) is guilty of a misdemeanor and on conviction shall be
fined not less than $100 nor more than $1,000.
(d) As used in this section, "developer of property in the
district" has the same meaning as in Section 49.052(d).
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.060. FEES OF OFFICE; REIMBURSEMENT. (a) A
director is entitled to receive fees of office of not more than $150
a day for each day the director actually spends performing the
duties of a director. In this subsection, "performing the duties of
a director" means substantive performance of the management or
business of the district, including participation in board and
committee meetings and other activities involving the substantive
deliberation of district business and in pertinent educational
programs. The phrase does not include routine or ministerial
activities such as the execution of documents, self-preparation for
meetings, or other activities requiring a minimal amount of time.
(a-1) A district, by resolution of the board, shall set a
limit on the fees of office that a director may receive in a year.
Except for a district that is a special water authority engaged in
the distribution and sale of electric energy to the public, a
district may not set the annual limit at an amount greater than
$7,200.
(b) Each director is also entitled to receive reimbursement
of actual expenses reasonably and necessarily incurred while
engaging in activities on behalf of the district.
(c) In order to receive fees of office and to receive
reimbursement for expenses, each director shall file with the
district a verified statement showing the number of days actually
spent in the service of the district and a general description of
the duties performed for each day of service.
(d) Repealed by Acts 2003, 78th Leg., ch. 736, § 2.
(e) Section 49.002 notwithstanding, in all areas of
conflict the provisions of this section shall take precedence over
all prior statutory enactments. If the enactment of this section
results in an increase in the fees of office for any district, that
district's fees of office shall not increase unless the board
adopts a resolution authorizing payment of the higher fees.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 695, § 1, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1423, § 3, eff. June 17, 2001;
Acts 2003, 78th Leg., ch. 736, § 1, 2, eff. June 20, 2003.
§ 49.061. SEAL. The directors shall adopt a seal for
the district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.062. OFFICES AND MEETING PLACES. (a) The board
shall designate from time to time and maintain one or more regular
offices for conducting the business of the district and maintaining
the records of the district. Such offices may be located either
inside or outside the district's boundaries as determined in the
discretion of the board.
(b) The board shall designate one or more places inside or
outside the district for conducting the meetings of the board. The
meeting place may be a private residence or office, provided that
the board, in its order establishing the meeting place, declares
the same to be a public place and invites the public to attend any
meeting of the board. If the board establishes a meeting place or
places outside the district, it shall give notice of the location or
locations by filing a true copy of the resolution establishing the
location or locations of the meeting place or places with the
commission and also by publishing notice of the location or
locations in a newspaper of general circulation in the district. If
the location of any of the meeting places outside the district is
changed, notice of the change shall be given in the same manner.
(c) After at least 25 qualified electors are residing in a
district, on written request of at least five of those electors, the
board shall designate a meeting place and hold meetings within the
district if it determines that the meeting place used by the
district deprives the residents of a reasonable opportunity to
attend district meetings. On the failure to designate the location
of the meeting place within the district, five electors may
petition the commission to designate a location. If it determines
that the meeting place used by the district deprives the residents
of a reasonable opportunity to attend district meetings, the
commission may designate a meeting place inside or outside the
district which is reasonably available to the public and require
that the meetings be held at such place. After the next election,
the board may designate different meeting places, including one
located outside the boundaries of the district.
(d) Two or more districts may designate and share offices
and meeting places. This section does not apply to special water
authorities.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.063. NOTICE OF MEETINGS. Notice of meetings of the
board shall be given as set forth in the open meetings law, Chapter
551, Government Code, except that if a district does not have a
meeting place within the district, the district shall post notice
of its meeting at a public place within the district specified by
the board in a written resolution, rather than at its
administrative office. The board shall specify such public place
to be a bulletin board or other place within the district which is
reasonably available to the public. Neither failure to provide
notice of a regular meeting nor an insubstantial defect in notice of
any meeting shall affect the validity of any action taken at the
meeting.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.064. MEETINGS. The board shall hold such regular
and special meetings as may be necessary for the proper conduct of
the district's business. All meetings shall be conducted in
accordance with the open meetings law, Chapter 551, Government
Code. A meeting of a committee of the board, or a committee
composed of representatives of more than one board, where less than
a quorum of any one board is present is not subject to the
provisions of the open meetings law, Chapter 551, Government Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.065. RECORDS. (a) The board shall keep a complete
account of all its meetings and proceedings and shall preserve its
minutes, contracts, records, notices, accounts, receipts, and
other records in a safe place.
(b) The records of each district are the property of the
district and are subject to the open records law, Chapter 552,
Government Code.
(c) The preservation, microfilming, destruction, or other
disposition of the records of each district is subject to the
requirements of Chapter 201, Local Government Code, and rules
adopted under that chapter.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.066. SUITS. (a) A district may sue and be sued in
the courts of this state in the name of the district by and through
its board. A suit for contract damages may be brought against a
district only on a written contract of the district approved by the
district's board. All courts shall take judicial notice of the
creation of the district and of its boundaries.
(b) Any court in the state rendering judgment for debt
against a district may order the board to levy, assess, and collect
taxes or assessments to pay the judgment.
(c) The president or the general manager of any district
shall be the agent of the district on whom process, notice, or
demand required or permitted by law to be served upon the district
may be served.
(d) Except as provided in Subsection (e), no suit may be
instituted in any court of this state contesting:
(1) the validity of the creation and boundaries of a
district created under this code;
(2) any bonds or other obligations created under this
code; or
(3) the validity or the authorization of a contract
with the United States by the district.
(e) The matters listed in Subsection (d) may be judicially
inquired into at any time and determined in any suit brought by the
State of Texas through the attorney general. The action shall be
brought on good cause shown, except where otherwise provided by
other provisions of this code or by the Texas Constitution. It is
specifically provided, however, that no such proceeding shall
affect the validity of or security for any bonds or other
obligations theretofore issued by a district if such bonds or other
obligations have been approved by the attorney general as provided
by Section 49.184.
(f) A district or water supply corporation shall not be
required to give bond for appeal, injunction, or costs in any suit
to which it is a party and shall not be required to deposit more than
the amount of any award in any eminent domain proceeding.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 8, eff. Sept. 1,
1999.
§ 49.067. CONTRACTS. (a) A district shall contract,
and be contracted with, in the name of the district.
(b) Notwithstanding any other law, a contract for
technical, scientific, legal, fiscal, or other professional
services must be approved by the board unless specifically
delegated by board action. The terms and conditions of such a
contract, including the terms for payment, are subject to the
decision of the board unless specifically delegated by board
action. The board through such action cannot abrogate its fiscal
responsibility.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 248, § 7, eff. June 18,
2003.
§ 49.068. CONTRACTS WITH GOVERNMENTAL
AGENCIES. (a) The provisions of this chapter pertaining to bids
and the Local Government Code notwithstanding, a district may
purchase property from any governmental entity by negotiated
contract without the necessity of securing appraisals or
advertising for bids.
(b) The provisions of other law or a home-rule municipal
charter notwithstanding, a municipality may contract with a
district. The term of a contract under this subsection may be of
unlimited duration.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 248, § 8, eff. June 18,
2003.
§ 49.069. EMPLOYEE BENEFITS. (a) The board may
provide for and administer retirement, disability, and death
compensation funds for the employees of the district.
(b) The board may establish a public retirement system in
accordance with the provisions of Chapter 810, Government Code.
The board may also provide for a deferred compensation plan
described by Section 457 of the Internal Revenue Code of 1986 (26
U.S.C. Section 457).
(c) The board may include hospitalization and medical
benefits to its employees as part of the compensation paid to the
officers and employees and may adopt any plan, rule, or regulation
in connection with it and amend or change the plan, rule, or
regulation as it may determine.
(d) The board may establish a sick leave pool for employees
of the district in the same manner as that authorized for the
creation of a sick leave pool for state employees by Subchapter A,
Chapter 661, Government Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 9, eff. Sept. 1,
1999.
§ 49.070. WORKERS' COMPENSATION. The board may become a
subscriber under Title 5, Labor Code (Texas Workers' Compensation
Act), with any insurance company authorized to write the policies
in the State of Texas.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.071. DISTRICT NAME CHANGE. (a) On petition by a
district showing reasonable grounds for a name change, the
commission by order may change the name of the district to the name
requested by the district. The new name must be generally
descriptive of the location of the district followed by the type of
district as provided by the title of the chapter of the Water Code
governing the district. If a district is located wholly within one
county that contains more than one district of that type, the
district may be differentiated, if necessary, by adding to the new
name the proper consecutive number. The new name may not be the
same as the name of any other district in the county.
(b) A name change takes effect on the date of issuance of the
commission order making the name change.
(c) Not later than the 30th day after the date of issuance of
the commission order making the name change, the district shall
publish notice of the name change in a newspaper or newspapers of
general circulation in the county or counties in which the district
is located. Within that same period, the district shall also give
notice of the name change by mail to utility customers or
permittees, if any, and, to the extent practicable, to the holders
of bonds, obligations, and other indebtedness of the district.
Failure of the district to comply with this subsection does not
affect the validity of the name change.
(d) A change in the name of a district does not affect bonds,
obligations, or other indebtedness of the district existing before
the name change occurred.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.072. LIMITATION ON FUTURE EMPLOYMENT. (a) A
person who has served as a director of a district may not contract
with that district or be employed by an organization to which the
district has awarded a contract for one year following the date on
which the person ceased to serve as a director.
(b) This section does not apply to a person who has served as
a director of a district that performs agricultural irrigation
functions under Chapter 51, 55, or 58 if the person, when serving as
a director, was required to own land as a qualification for office.
Added by Acts 2003, 78th Leg., ch. 469, § 1, eff. Sept. 1, 2003.
SUBCHAPTER D. ELECTION PROVISIONS
§ 49.101. GENERAL. All elections shall be generally
conducted in accordance with the Election Code except as otherwise
provided for by this code. Write-in candidacies for any district
office shall be governed by Subchapter C, Chapter 146, Election
Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.102. CONFIRMATION AND DIRECTOR
ELECTION. (a) Before issuing any bonds or other obligations, an
election shall be held within the boundaries of the proposed
district to determine if the proposed district shall be established
and, if the directors of the district are required by law to be
elected, to elect permanent directors.
(b) Notice of a confirmation or director election shall
state the day and place or places for holding the election, the
propositions to be voted on, and the number of directors to be voted
on.
(c) The ballots for a confirmation election shall be printed
to provide for voting "For District" and "Against District."
Ballots for a directors election shall provide the names of the
persons appointed by the governing body who qualified and are
serving as temporary directors at the time the election is called.
The ballots shall also have blank places after the names of the
temporary directors in which a voter may write the names of other
persons for directors.
(d) Immediately after the confirmation and director
election, the presiding judge shall take returns of the results to
the temporary board. The temporary board shall canvass the returns
and declare the results at the earliest practicable time.
(e) If a majority of the votes cast in the election favor the
creation of the district, then the temporary board shall declare
that the district is created and enter the result in its minutes.
If a majority of the votes cast in the election are against the
creation of the district, the temporary board shall declare that
the district was defeated and enter the result in its minutes. A
copy of the order shall be filed with the commission.
(f) The order canvassing the results of the confirmation
election shall contain a description of the district's boundaries
and shall be filed with the executive director and in the deed
records of the county or counties in which the district is located.
(g) The temporary board shall also declare the persons
receiving the highest number of votes for directors to have been
elected as permanent directors.
(h) Unless otherwise agreed, the directors shall decide the
initial terms of office by lot, with a simple majority of directors
serving until the second succeeding directors election and the
remaining directors serving until the next directors election.
(i) A district, at an election required under Subsection
(a), may submit to the qualified voters of the district the
proposition of whether a plan as authorized by Section 49.351
should be implemented or entered into by the district.
(j) The provisions of this section shall not be applicable
to any district exercising the powers of Chapter 375, Local
Government Code, or any district created by a special Act of the
legislature that does not require a confirmation election.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1423, § 4, eff. June 17,
2001.
§ 49.103. TERMS OF OFFICE OF DIRECTORS. (a) Except as
provided by Section 49.102, the members of the board of a district
shall serve for four-year terms.
(b) An election shall be held on the uniform election date,
established by the Election Code, in either February or May of each
even-numbered year to elect the appropriate number of directors.
(c) The permanent directors may assign a position number to
each director's office, in which case directors shall thereafter be
elected by position and not at large.
(d) A district may provide for the election of all
directors, or a majority of directors, from single-member
districts, which shall be geographically described within the
boundaries of the district in a manner that is equitable for the
electors within such districts and within the district generally.
(e) Section 49.002 notwithstanding, in all areas of
conflict the provisions of Subsections (a) and (b) shall take
precedence over all prior statutory enactments.
(f) This section does not apply to:
(1) any special law district or authority that is not
required by the law creating the district or authority to elect its
directors by the public; or
(2) a special utility district operating under Chapter
65.
(g) A district may, if required under this section to change
the terms of office of directors to four-year terms or to change the
date on which the district holds a director election, extend the
terms of office of directors serving the district on the effective
date of H.B. No. 2236, Acts of the 75th Legislature, Regular
Session, 1997, to continue the terms until the next appropriate
election date in an even-numbered year. A district that is required
under this section to change the terms of office of directors to
staggered terms may require directors of the district to draw lots
to achieve staggered terms.
(h) If authorized by the board in the proceedings calling a
director election, the secretary of the board or the secretary's
designee, on receipt of the certification required by Section
2.052(b), Election Code, shall post notice that the election is not
to be held. The notice must be posted, on or before the
commencement of early voting, at each polling place that would have
been used in the election. If the notice is timely posted:
(1) the board or the board's designee is not required
to:
(A) post or publish notice of the election;
(B) prepare or print ballots and election
materials; or
(C) hold early and regular voting; and
(2) the board shall meet at the earliest practicable
time to declare each unopposed candidate elected to office.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 4, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 340, § 5, eff. Sept. 1, 2001;
Acts 2003, 78th Leg., ch. 248, § 9, eff. June 18, 2003.
§ 49.104. ALTERNATIVE ELECTION
PROCEDURES. (a) Notwithstanding the provisions and requirements
of the Election Code and general laws, any two or more districts
situated in the same county and in which substantially all of the
land is being or has been developed as part of a single community
development plan and which are served by common water supply and
waste disposal systems may by mutual agreement designate a common
election office and common early and regular polling places within
one or more of the districts, but outside the boundaries of one or
more of the districts, for the conduct of director election
proceedings and early and regular balloting in director elections.
This alternative election procedure may only be used if the common
election office and polling places so designated:
(1) are within buildings open to the public;
(2) are within the boundaries of at least one of the
districts;
(3) meet the requirements of the Election Code and
general laws as polling places; and
(4) are located not more than five miles from any
portion of the boundaries of any of the participating districts.
(b) Such districts may also agree on and designate a common
election officer and common early and regular voting officials for
some or all of the director elections to be simultaneously
conducted at a common location, any of whom may be nonelective
employees of one or more of the districts, so long as the early and
regular voting officials are qualified voters within at least one
of the districts.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.105. VACANCIES. (a) Except as otherwise provided
in this code, a vacancy on the board and in other offices shall be
filled for the unexpired term by appointment of the board not later
than the 60th day after the date the vacancy occurs.
(b) If the board has not filled a vacancy by appointment
before the 61st day after the date the vacancy occurs, a petition,
signed by more than 10 percent of the registered voters of the
district, requesting the board to fill the vacancy by appointment
may be presented to the board.
(c) If the number of directors is reduced to fewer than a
majority or if a vacancy continues beyond the 90th day after the
date the vacancy occurs, the vacancy or vacancies shall be filled by
appointment by the commission if the district is required by
Section 49.181 to obtain commission approval of its bonds or by the
county commissioners court if the district was created by the
county commissioners court, regardless of whether a petition has
been presented to the board under Subsection (b). An appointed
director shall serve for the unexpired term of the director he or
she is replacing.
(d) In the event of a failure to elect one or more members of
the board of a district resulting from the absence of, or failure to
vote by, the qualified voters in the district, the current members
of the board holding the positions not filled at such election shall
be deemed to have been reelected and shall serve an additional term
of office.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 10, eff. Sept. 1,
1999.
§ 49.106. BOND ELECTIONS. (a) Before an election is
held to authorize the issuance of bonds, other than refunding
bonds, there shall be filed in the office of the district and open
to inspection by the public an engineer's report covering the land,
improvements, facilities, plants, equipment, and appliances to be
purchased or constructed and their estimated cost, together with
maps, plats, profiles, and data fully showing and explaining the
report. The engineer's report is not:
(1) part of the proposition or propositions to be
voted on; or
(2) a contract with the voters.
(b) Notice of a bond election shall contain the proposition
or propositions to be voted on, which includes the estimate of the
probable cost of design, construction, purchase, and acquisition of
improvements and additions thereto, and incidental expenses
connected with such improvements and the issuance of bonds.
(c) A bond election may be held on the same day as any other
district election. The bond election may be called by a separate
election order or as a part of any other election order. The board
may submit multiple purposes in a single proposition at an
election.
(d) A bond election may be called as a result of an agreement
to annex additional territory into the district.
(e) A district's authorization to issue bonds resulting
from an election held under this section, or any other law that
allows for the qualified voters of a district to authorize the
issuance of bonds by a district, remains in effect after the
election unless the district is dissolved or is annexed by another
district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 5, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1423, § 5, eff. June 17, 2001;
Acts 2003, 78th Leg., ch. 248, § 10, eff. June 18, 2003.
§ 49.107. OPERATION AND MAINTENANCE TAX. (a) A
district may levy and collect a tax for operation and maintenance
purposes, including funds for planning, constructing, acquiring,
maintaining, repairing, and operating all necessary land, plants,
works, facilities, improvements, appliances, and equipment of the
district and for paying costs of proper services, engineering and
legal fees, and organization and administrative expenses.
(b) An operation and maintenance tax may not be levied by a
district until it is approved by a majority of the electors voting
at an election held for that purpose. After such a tax has been
authorized by the district's voters, the board shall be authorized
to levy the tax and have it assessed and collected as other district
taxes.
(c) An operation and maintenance tax election may be held at
the same time and in conjunction with any other district election.
The election may be called by a separate election order or as part
of any other election order.
(d) The proposition in an operation and maintenance tax
election may be for a specific maximum rate or for an unlimited
rate.
(e) If a district has any surplus operation and maintenance
tax funds that are not needed for the purposes for which they were
collected, the funds may be used for any lawful purpose.
(f) Before a district reimburses a developer of property in
the district, as that term is defined in Section 49.052(d), or its
assigns, from operation and maintenance tax funds, for planning,
constructing, or acquiring facilities, the district shall obtain
approval by the executive director.
(g) Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
to a tax levied and collected under this section or an ad valorem
tax levied and collected for the payment of the interest on and
principal of bonds issued by a district.
(h) To the extent authorized by Section 59, Article XVI,
Texas Constitution, an operation and maintenance tax to be used for
recreational facilities, as defined by Section 49.462, levied by a
district located in a county with a population of more than 3.3
million or in a county adjacent to that county may not exceed 10
cents per $100 of assessed valuation of taxable property in the
district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1423, § 6, eff. June 17,
2001; Acts 2003, 78th Leg., ch. 343, § 2.
§ 49.108. CONTRACT ELECTIONS. (a) A contract may
provide that the district will make payment under the contract from
proceeds from the sale of notes or bonds, from taxes, or from any
other income of the district or any combination of these.
(b) A district may make payments under a contract from taxes
other than operation and maintenance taxes after the provisions of
the contract have been approved by a majority of the qualified
voters voting at an election held for that purpose. A contract
approved by the qualified voters of a district may contain a
provision stating that the contract may be modified or amended by
the board without voter approval.
(c) A contract election may be held at the same time and in
conjunction with any other district election. The election may be
called by a separate election order or as part of any other election
order.
(d) A contract approved by the voters will constitute an
obligation against the taxing power of the district to the extent
provided in the contract.
(e) A district that is required under Section 49.181 to
obtain approval by the commission of the district's issuance of
bonds must obtain approval by the executive director before the
district enters into an obligation under this section to collect
tax for debt that exceeds three years. This subsection does not
apply to contract taxes that are levied to pay for a district's
share of bonds that have been issued by another district and
approved by the commission or bonds issued by a municipality.
(f) Sections 26.04, 26.05, and 26.07, Tax Code, do not apply
to a tax levied and collected for payments made under a contract
approved in accordance with this section.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 6, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1160, § 1, eff. June 15, 2001;
Acts 2001, 77th Leg., ch. 1423, § 7, eff. June 17, 2001.
SUBCHAPTER E. FISCAL PROVISIONS
§ 49.151. EXPENDITURES. (a) Except as hereinafter
provided, a district's money may be disbursed only by check, draft,
order, or other instrument that shall be signed by at least a
majority of the directors.
(b) The board may by resolution allow the general manager,
treasurer, bookkeeper, or other employee of the district to sign
disbursements.
(c) The board may allow disbursements of district money to
be transferred by federal reserve wire system. The board by
resolution may allow the wire transfers to accounts in the name of
the district or accounts not in the name of the district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1423, § 8, eff. June 17,
2001.
§ 49.152. PURPOSES FOR BORROWING MONEY. The district
may issue bonds, notes, or other obligations to borrow money for any
corporate purpose or combination of corporate purposes only in
compliance with the methods and procedures provided by this chapter
or by other applicable law.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 11, eff. Sept. 1,
1999.
§ 49.153. REVENUE NOTES. (a) The board, without the
necessity of an election, may borrow money on negotiable or
nonnegotiable notes of the district to be paid solely from the
revenues derived from the ownership of all or any designated part of
the district's works, plants, improvements, facilities, or
equipment after deduction of the reasonable cost of maintaining and
operating the facilities.
(b) The notes may be first or subordinate lien notes within
the discretion of the board, but no obligation may ever be a charge
on the property of the district or on taxes levied or collected by
the district but shall be solely a charge on the revenues pledged
for the payment of the obligation. No part of the obligation may
ever be paid from taxes levied or collected by the district.
(c) Except as provided by Subsection (e), a district may not
execute a note for a term longer than three years unless the
commission issues an order approving the note.
(d) This section does not apply to special water
authorities.
(e) Subsection (c) does not apply to:
(1) a note issued to and approved by the:
(A) Farmers Home Administration;
(B) United States Department of Agriculture;
(C) Texas Water Development Board; or
(D) North American Development Bank; or
(2) a district described by Section 49.181(h).
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 7, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 248, § 11, eff. June 18, 2003;
Acts 2003, 78th Leg., ch. 608, § 7, eff. June 20, 2003.
§ 49.154. BOND ANTICIPATION NOTES; TAX ANTICIPATION
NOTES. (a) The board may declare an emergency in the matter of
funds not being available to pay principal of and interest on any
bonds of the district payable in whole or in part from taxes or to
meet any other needs of the district and may issue negotiable tax
anticipation notes or negotiable bond anticipation notes to borrow
the money needed by the district without advertising or giving
notice of the sale. Bond anticipation notes and tax anticipation
notes shall mature within one year of their date.
(b) Tax anticipation notes may be issued for any purpose for
which the district is authorized to levy taxes, and tax
anticipation notes shall be secured with the proceeds of taxes to be
levied by the district in the succeeding 12-month period. The board
may covenant with the purchasers of the notes that the board will
levy a sufficient tax to pay the principal of and interest on the
notes and pay the costs of collecting the taxes.
(c) Bond anticipation notes may be issued for any purpose
for which bonds of the district may have previously been voted or
may be issued for the purpose of refunding previously issued bond
anticipation notes. A district may covenant with the purchasers of
the bond anticipation notes that the district will use the proceeds
of sale of any bonds in the process of issuance for the purpose of
refunding the bond anticipation notes, in which case the board will
be required to use the proceeds received from sale of the bonds in
the process of issuance to pay principal, interest, or redemption
price on the bond anticipation notes.
(d) Districts required to seek commission approval of bonds
must have an application for such approval on file with the
commission prior to the issuance of bond anticipation notes.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.155. PAYMENT OF EXPENSES. (a) The district may
pay out of bond proceeds or other available funds of the district
all expenses of the district authorized by this section, including
expenses reasonable and necessary to effect the issuance, sale, and
delivery of bonds as determined by the board, including, but not
limited to, the following:
(1) interest during construction;
(2) capitalized interest not to exceed three years'
interest;
(3) reasonable and necessary reserve funds not to
exceed two years' interest on the bonds;
(4) interest on funds advanced to the district;
(5) financial advisor, bond counsel, attorney, and
other consultant fees;
(6) paying agent, registrar, and escrow agent fees;
(7) right-of-way acquisition;
(8) underwriter's discounts or premiums;
(9) engineering fees, including surveying expenses
and plan review fees;
(10) commission and attorney general fees;
(11) printing costs;
(12) all organizational, administrative, and
operating costs during creation and construction periods;
(13) the cost of investigation and making plans,
including preliminary plans and associated engineering reports;
(14) land required for stormwater control;
(15) costs associated with requirements for federal
stormwater permits; and
(16) costs associated with requirements for
endangered species permits.
(b) For purposes of this section, construction periods
shall mean any periods during which the district is constructing
its facilities or there is construction by third parties of above
ground improvements within the district, but in no event longer
than five years.
(c) The district may reimburse any person for money advanced
for the purposes in Subsection (a) and may be charged interest on
such funds.
(d) These payments may be made from money obtained from the
issuance of notes or the sale of bonds issued by the district or out
of maintenance taxes or other revenues of the district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1999, 76th Leg., ch. 1354, § 12, eff. Sept. 1,
1999; Acts 2001, 77th Leg., ch. 1423, § 9, eff. June 17, 2001.
§ 49.156. DEPOSITORY. (a) The board, by order or
resolution, shall designate one or more banks or savings
associations within the state to serve as the depository for the
funds of the district. The board shall not be required to advertise
or solicit bids in selecting its depositories.
(b) To the extent that funds in the depository banks or
savings associations are not insured by the Federal Deposit
Insurance Corporation, they shall be secured in the manner provided
by law for the security of funds by Chapter 2257, Government Code
(Public Funds Collateral Act).
(c) The board may authorize a designated representative to
supervise the substitution of securities pledged to secure the
district's funds.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.157. INVESTMENTS. (a) All district deposits and
investments shall be governed by Subchapter A, Chapter 2256,
Government Code (Public Funds Investment Act).
(b) The board may provide that an authorized representative
of the district may invest and reinvest the funds of the district
and provide for money to be withdrawn from the appropriate accounts
of the district for the investments on such terms as the board
considers advisable.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.1571. INVESTMENT OFFICER. (a) Notwithstanding
Section 2256.005(f), Government Code, the board may contract with a
person to act as investment officer of the district.
(b) The investment officer of a district shall:
(1) not later than the first anniversary of the date
the officer takes office or assumes the officer's duties, attend a
training session of at least six hours of instruction relating to
investment responsibilities under Chapter 2256, Government Code;
and
(2) attend at least four hours of additional
investment training within each two-year period after the first
year.
(c) Training under this section must be from an independent
source approved by:
(1) the board; or
(2) a designated investment committee advising the
investment officer.
(d) Training under this section must include education in
investment controls, security risks, strategy risks, market risks,
diversification of investment portfolio, and compliance with
Chapter 2256, Government Code.
(e) During January of each year, each individual,
association, business, organization, governmental entity, or other
person that provides training under this section shall report to
the comptroller a list of the districts for which the person
provided required training under this section during the previous
calendar year. An individual's reporting requirements under this
subsection are satisfied by a report of the individual's employer
or the sponsoring or organizing entity of a training program or
seminar.
Added by Acts 2001, 77th Leg., ch. 69, § 3, eff. May 14, 2001.
§ 49.158. FISCAL YEAR. Within 30 days after a district
becomes financially active, the board shall adopt a fiscal year by a
formal board resolution. The district shall notify the executive
director of the adopted fiscal year within 30 days after adoption.
The district may change its fiscal year at any time; provided,
however, it may not be changed more than once in any 24-month
period. After any change in the district's fiscal year, the
district shall notify the executive director of the changed fiscal
year within 30 days after adoption.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
SUBCHAPTER F. ISSUANCE OF BONDS
§ 49.181. AUTHORITY OF COMMISSION OVER ISSUANCE OF
DISTRICT BONDS.
Text of subsec. (a) as amended by Acts 2003, 78th Leg., ch. 248,
§ 12
(a) A district may not issue bonds unless the commission
determines that the project to be financed by the bonds is feasible
and issues an order approving the issuance of the bonds. This
section does not apply to:
(1) refunding bonds if the commission issued an order
approving the issuance of the bonds or notes that originally
financed the project;
(2) refunding bonds that are issued by a district
under an agreement between the district and a municipality allowing
the issuance of the district's bonds to refund bonds issued by the
municipality to pay the cost of financing facilities; or
(3) bonds issued to and approved by the Farmers Home
Administration, the United States Department of Agriculture, the
North American Development Bank, or the Texas Water Development
Board.
Text of subsec. (a) as amended by Acts 2003, 78th Leg., ch. 608,
§ 8
(a) A district may not issue bonds unless the commission
determines that the project to be financed by the bonds is feasible
and issues an order approving the issuance of the bonds. This
section does not apply to refunding bonds or bonds issued to and
approved by the Farmers Home Administration, the United States
Department of Agriculture, the North American Development Bank, or
the Texas Water Development Board.
(b) A district may submit to the commission a written
application for investigation of feasibility. An engineer's report
describing the project, including the data, profiles, maps, plans,
and specifications prepared in connection with the report, must be
submitted with the application.
(c) The executive director shall examine the application
and the report and shall inspect the project area. The district
shall, on request, supply the executive director with additional
data and information necessary for an investigation of the
application, the engineer's report, and the project.
(d) The executive director shall prepare a written report on
the project and include suggestions, if any, for changes or
improvements in the project. The executive director shall retain a
copy of the report and send a copy of the report to both the
commission and the district.
(e) The commission shall consider the application, the
engineer's report, the executive director's report, and any other
evidence allowed by commission rule to be considered in determining
the feasibility of the project.
(f) The commission shall determine whether the project to be
financed by the bonds is feasible and issue an order either
approving or disapproving, as appropriate, the issuance of the
bonds. The commission shall retain a copy of the order and send a
copy of the order to the district.
(g) Notwithstanding any provision of this code to the
contrary, the commission may approve the issuance of bonds of a
district without the submission of plans and specifications of the
improvements to be financed with the bonds. The commission may
condition the approval on any terms or conditions considered
appropriate by the commission.
(h) This section does not apply to a district if:
(1) the district's boundaries include one entire
county;
(2) the district was created by a special Act of the
legislature and:
(A) the district is located entirely within one
county;
(B) is entirely within one or more home-rule
municipalities;
(C) the total taxable value of the real property
and improvements to the real property zoned by one or more home-rule
municipalities for residential purposes and located within the
district does not exceed 25 percent of the total taxable value of
all taxable property in the district, as shown by the most recent
certified appraisal tax roll prepared by the appraisal district for
the county; and
(D) the district was not required by law to
obtain commission approval of its bonds before the effective date
of this section;
(3) the district is a special water authority;
(4) the district is governed by a board of directors
appointed in whole or in part by the governor, a state agency, or
the governing body or chief elected official of a municipality or
county and does not provide, or propose to provide, water, sewer,
drainage, reclamation, or flood control services to residential
retail or commercial customers as its principal function; or
(5) the district on September 1, 2003:
(A) is a municipal utility district that includes
territory in only two counties;
(B) has outstanding long-term indebtedness that
is rated BBB or better by a nationally recognized rating agency for
municipal securities; and
(C) has at least 5,000 active water connections.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 8, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 248, § 12, eff. June 18, 2003;
Acts 2003, 78th Leg., ch. 608, § 8, eff. June 20, 2003; Acts
2003, 78th Leg., ch. 904, § 1, eff. June 20, 2003.
§ 49.182. COMMISSION SUPERVISION OF PROJECTS AND
IMPROVEMENTS. (a) During construction of projects and
improvements approved by the commission under this subchapter, no
substantial alterations may be made in the plans and specifications
without the approval of the commission in accordance with
commission rules.
(b) The executive director may inspect the improvements at
any time during construction to determine if the project is being
constructed in accordance with the plans and specifications
approved by the commission.
(c) If the executive director finds that the project is not
being constructed in accordance with the approved plans and
specifications, the executive director shall give written notice
immediately by certified mail to the district's manager and to each
board member.
(d) If within 10 days after the notice is mailed the board
does not take steps to ensure that the project is being constructed
in accordance with the approved plans and specifications, the
executive director shall give written notice of this fact to the
attorney general.
(e) After receiving this notice, the attorney general may
bring an action for injunctive relief or quo warranto proceedings
against the directors. Venue for either suit is exclusively in a
district court in Travis County.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.183. BOND SALES. (a) Except for refunding bonds,
or bonds sold to a state or federal agency or to the North American
Development Bank, bonds issued by a district shall be sold after
advertising for and receiving competitive sealed bids and shall be
awarded to the bidder whose bid produces the lowest net effective
interest rate to the district.
(b) Except for refunding bonds, or bonds sold to a state or
federal agency or to the North American Development Bank, before
any bonds are sold by a district, the board shall publish an
appropriate notice of the sale:
(1) at least one time not less than 10 days before the
date of sale in a newspaper of general circulation in the county or
counties in which the district is located; and
(2) at least one time in one or more recognized
financial publications of general circulation in the state as
approved by the state attorney general.
(c) If the district is issuing bonds and refunding bonds as
one issue and if the initial principal amount of refunding bonds is
50 percent or more of the total initial principal amount of bonds
being issued, for the purposes of this section, the issue shall be
considered to be refunding bonds and competitive bids shall not be
required.
(d) A district's bonds are negotiable instruments within
the meaning and purposes of the Business & Commerce Code. A
district's bonds may be issued and bear interest in accordance with
Chapters 1201, 1204, and 1371, Government Code, and Subchapters
A-C, Chapter 1207, Government Code. Except for this subsection,
this section does not apply to special water authorities or
districts described in Section 49.181(h)(4).
(e) Subsections (a) and (b) do not apply to district bonds
issued pursuant to Chapter 1371, Government Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.421, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1423, § 10, eff. June 17, 2001;
Acts 2003, 78th Leg., ch. 248, § 13, eff. June 18, 2003; Acts
2003, 78th Leg., ch. 608, § 9, eff. June 20, 2003.
§ 49.184. APPROVAL OF BONDS BY ATTORNEY GENERAL;
REGISTRATION OF BONDS. (a) Before bonds issued by a district are
delivered to the purchasers, a certified copy of all proceedings
relating to organization of the district for first bond issues and
issuance of the bonds and other relevant information shall be sent
to the attorney general.
(b) The attorney general shall carefully examine the bonds,
with regard to the record and the constitution and laws of this
state governing the issuance of bonds, and the attorney general
shall officially approve and certify the bonds if he or she finds
that they conform to the record and the constitution and laws of
this state and are valid and binding obligations of the district.
(c) After the attorney general approves and certifies the
bonds, the comptroller shall register them in a book kept for that
purpose and shall record the certificate of the attorney general.
(d) After the approval and registration of the bonds by the
comptroller, they shall be incontestable in any court or other
forum, for any reason, and shall be valid and binding obligations in
accordance with their terms for all purposes.
(e) A contract or lease may be submitted to the attorney
general along with the bond records, and, if submitted, the
approval by the attorney general of the bonds shall constitute an
approval of the contract or lease and the contract or lease shall be
incontestable.
(f) In any proceeding concerning the validity of the
creation of a district or the annexation of property by a district,
a certificate of ownership as certified by the central appraisal
district of the county or counties in which the property is located
creates a presumption of ownership, and additional proof of
ownership is not required unless there is substantial evidence in
the official deed records of the county in which the property is
located to rebut the presumption. On request by a district, the
central appraisal district of the county or counties in which the
district is located shall furnish certificates of ownership and may
charge reasonable fees to recover the actual costs incurred in
preparing the certificates.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1423, § 11, eff. June 17,
2001.
§ 49.185. EXEMPTIONS. This subchapter shall not apply
to districts engaged in the distribution and sale of electric
energy to the public.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.186. AUTHORIZED INVESTMENTS; SECURITY FOR
FUNDS. (a) All bonds, notes, and other obligations issued by a
district shall be legal and authorized investments for all banks,
trust companies, building and loan associations, savings and loan
associations, insurance companies of all kinds and types,
fiduciaries, and trustees, and for all interest and sinking funds
and other public funds of the state, and all agencies,
subdivisions, and instrumentalities of the state, including all
counties, cities, towns, villages, school districts, and all other
kinds and types of districts, public agencies, and bodies politic.
(b) A district's bonds, notes, and other obligations are
eligible and lawful security for all deposits of public funds of the
state, and all agencies, subdivisions, and instrumentalities of the
state, including all counties, cities, towns, villages, school
districts, and all other kinds and types of districts, public
agencies, and bodies politic, to the extent of the market value of
the bonds, notes, and other obligations when accompanied by any
unmatured interest coupons attached to them.
Added by Acts 1997, 75th Leg., ch. 1070, § 9, eff. Sept. 1, 1997.
SUBCHAPTER G. AUDIT OF DISTRICTS
§ 49.191. DUTY TO AUDIT. (a) The board shall have the
district's fiscal accounts and records audited annually at the
expense of the district.
(b) In all areas of conflict, the provisions of this
subchapter shall take precedence over all prior statutory
enactments.
(c) The person who performs the audit shall be a certified
public accountant or public accountant holding a permit from the
Texas State Board of Public Accountancy.
(d) The audit required by this section shall be completed
within 120 days after the close of the district's fiscal year.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.192. FORM OF AUDIT. The executive director shall
adopt accounting and auditing manuals and, except as otherwise
provided by the manuals, the district audit shall be performed
according to the generally accepted auditing standards adopted by
the American Institute of Certified Public Accountants. Financial
statements shall be prepared in accordance with generally accepted
accounting principles as adopted by the American Institute of
Certified Public Accountants.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.193. FINANCIAL REPORTS. The district's
depository, the district's treasurer, and the district's
bookkeeper, if any, who receives or has control over any district
funds shall keep a full and itemized account of district funds in
its, his, or her possession. Such itemized accounts and records
shall be available for audit.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.194. FILING OF AUDITS, AFFIDAVITS, AND FINANCIAL
REPORTS. (a) After the board has approved the audit, it shall
submit a copy of the report to the executive director for filing
within 135 days after the close of the district's fiscal year.
(b) If the board refuses to approve the annual audit report,
the board shall submit a copy of the report to the executive
director for filing within 135 days after the close of the
district's fiscal year, accompanied by a statement from the board
explaining the reasons for its failure to approve the report.
(c) Copies of the audit, the annual financial dormancy
affidavit, or annual financial report described in Sections 49.197
and 49.198 shall be filed annually in the office of the district.
(d) Each district shall file with the executive director an
annual filing affidavit in a format prescribed by the executive
director, executed by a duly authorized representative of the
board, stating that all copies of the annual audit report, annual
financial dormancy affidavit, or annual financial report have been
filed under this section.
(e) The annual filing affidavit shall be submitted with the
applicable annual document when it is submitted to the executive
director for filing as prescribed by this subchapter.
(f) The executive director shall file with the attorney
general the names of any districts that do not comply with the
provisions of this subchapter.
(g) A submission to the executive director required by this
section may be made electronically.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 248, § 14, eff. June 18,
2003.
§ 49.195. REVIEW BY EXECUTIVE DIRECTOR. (a) The
executive director may review the audit report of each district.
(b) Subject to Subsection (f), the commission may request
that the state auditor assist in the establishment of standards and
procedures for review of district audits by the executive director.
(c) If the executive director has any objections or
determines any violations of generally accepted auditing standards
or accounting principles, statutes, or board rules, or if the
executive director has any recommendations, he or she shall notify
the board and the district's auditor.
(d) Before the audit report may be accepted by the executive
director as being in compliance with the provisions of this
subchapter, the board and the auditor shall remedy objections and
correct violations of which they have been notified by the
executive director.
(e) If the audit report indicates that any penal law has
been violated, the executive director shall notify the appropriate
county or district attorney and the attorney general.
(f) Participation by the state auditor under Subsection (b)
is subject to approval by the legislative audit committee for
inclusion in the audit plan under Section 321.013(c), Government
Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 2003, 78th Leg., ch. 785, § 54, eff. Sept. 1,
2003.
§ 49.196. ACCESS TO AND MAINTENANCE OF DISTRICT
RECORDS. (a) The executive director shall have access to all
vouchers, receipts, district fiscal and financial records, and
other district records the executive director considers necessary.
(b) All district fiscal records shall be prepared on a
timely basis and maintained in an orderly manner in accordance with
generally accepted accounting principles. The fiscal records shall
be available for public inspection during regular business hours.
A district's fiscal records may be removed from the district's
office for the purposes of recording its fiscal affairs and
preparing an audit, during which time the fiscal records are under
the control of the district's auditor.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.197. FINANCIALLY DORMANT DISTRICTS. (a) A
financially dormant district is a district that had:
(1) $500 or less of receipts from operations, tax
assessments, loans, contributions, or any other sources during the
calendar year;
(2) $500 or less of disbursements of funds during the
calendar year;
(3) no bonds or other long-term (more than one year)
liabilities outstanding during the calendar year; and
(4) no cash or investments that exceeded $5,000 at any
time during the calendar year.
(b) A financially dormant district may elect to submit to
the executive director a financial dormancy affidavit instead of
complying with the audit requirements of Section 49.191.
(c) The annual financial dormancy affidavit shall be
prepared in a format prescribed by the executive director and shall
be submitted for filing by a duly authorized representative of the
district.
(d) The affidavit must be filed annually on or before
January 31 with the executive director until such time as the
district becomes financially active and the board adopts a fiscal
year; thereafter, the district shall file annual audit reports as
prescribed by this subchapter.
(e) A district that becomes financially dormant after
having been financially active shall be required to file annual
financial dormancy affidavits on or before January 31, until the
district is either dissolved or again becomes financially active.
(f) Districts governed by this section are subject to
periodic audits by the executive director.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.198. AUDIT REPORT EXEMPTION. (a) A district may
elect to file annual financial reports with the executive director
in lieu of the district's compliance with Section 49.191 provided:
(1) the district had no bonds or other long-term (more
than one year) liabilities outstanding during the fiscal period;
(2) the district did not have gross receipts from
operations, loans, taxes, or contributions in excess of $100,000
during the fiscal period; and
(3) the district's cash and temporary investments were
not in excess of $100,000 at any time during the fiscal period.
(b) The annual financial report must be accompanied by an
affidavit attesting to the accuracy and authenticity of the
financial report signed by a duly authorized representative of the
district.
(c) The annual financial report and affidavit in a format
prescribed by the executive director must be on file with the
executive director within 45 days after the close of the district's
fiscal year.
(d) Districts governed by this section are subject to
periodic audits by the executive director.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 10, eff. Sept. 1,
1997.
§ 49.199. POLICIES AND AUDITS OF
DISTRICTS. (a) Subject to the law governing the district, the
board shall adopt the following in writing:
(1) a code of ethics for district directors, officers,
employees, and persons who are engaged in handling investments for
the district;
(2) a policy relating to travel expenditures;
(3) a policy relating to district investments that
ensures that:
(A) purchases and sales of investments are
initiated by authorized individuals, conform to investment
objectives and regulations, and are properly documented and
approved; and
(B) periodic review is made of district
investments to evaluate investment performance and security;
(4) policies and procedures for selection,
monitoring, or review and evaluation of professional services;
(5) a uniform method of accounting and reporting for
industrial development bonds and pollution control bonds that
complies with requirements of the commission; and
(6) policies that ensure a better use of management
information including:
(A) budgets for use in planning and controlling
cost;
(B) an audit committee of the board; and
(C) uniform reporting requirements that use
"Audits of State and Local Governmental Units" as a guide on audit
working papers and that use "Governmental Accounting and Financial
Reporting Standards."
(b) The state auditor may audit the financial transactions
of any district if the state auditor determines that the audit is
necessary.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.200. REVIEW AND COMMENT ON BUDGET OF CERTAIN
DISTRICTS. A district that provides wholesale potable water and
wastewater services shall adopt a program that provides such
wholesale customers an opportunity to review and comment on the
district's annual budget that applies to their services before that
budget is adopted by the board.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
SUBCHAPTER H. POWERS AND DUTIES
§ 49.211. POWERS. (a) A district shall have the
functions, powers, authority, rights, and duties that will permit
accomplishment of the purposes for which it was created or the
purposes authorized by the constitution, this code, or any other
law.
(b) A district is authorized to purchase, construct,
acquire, own, operate, maintain, repair, improve, or extend inside
and outside its boundaries any and all land, works, improvements,
facilities, plants, equipment, and appliances necessary to
accomplish the purposes of its creation or the purposes authorized
by this code or any other law.
(c) A district that is authorized by law to engage in
drainage or flood control activities may adopt:
(1) a master drainage plan, including rules relating
to the plan and design criteria for drainage channels, facilities,
and flood control improvements;
(2) rules for construction activity to be conducted
within the district that:
(A) reasonably relate to providing adequate
drainage or flood control; and
(B) use generally accepted engineering criteria;
and
(3) reasonable procedures to enforce rules adopted by
the district under this subsection.
(d) If a district adopts a master drainage plan under
Subsection (c)(1), the district may adopt rules relating to review
and approval of proposed drainage plans submitted by property
developers. The district, by rule, may require that a property
developer who proposes to subdivide land located in the district,
and who is otherwise required to obtain approval of the plat of the
proposed subdivision from a municipality or county, submit for
district approval a drainage report for the subdivision. The
drainage report must include a map containing a description of the
land to be subdivided. The map must show an accurate representation
of:
(1) any existing drainage features, including
drainage channels, streams, flood control improvements, and other
facilities;
(2) any additional drainage facilities or connections
to existing drainage facilities proposed by the property
developer's plan for the subdivision; and
(3) any other parts of the property developer's plan
for the subdivision that may affect drainage.
(e) The district shall review each drainage report
submitted to the district under this section and shall approve a
report if it shows compliance with:
(1) the requirements of this section;
(2) the district's master drainage plan adopted under
Subsection (c)(1); and
(3) the rules adopted by the district under
Subsections (c)(2) and (d).
(f) On or before the 30th day after the date a drainage
report is received, the district shall send notice of the
district's approval or disapproval of the drainage report to:
(1) the property developer; and
(2) each municipal or county authority with
responsibility for approving the plat of the proposed subdivision.
(g) If the district disapproves a drainage report, the
district shall include in the notice of disapproval a written
statement:
(1) explaining the reasons for the rejection; and
(2) recommending changes, if possible, that would make
a revised version of the drainage report acceptable for approval.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 11, eff. Sept. 1,
1997; Acts 2003, 78th Leg., ch. 486, § 1, eff. June 20, 2003.
§ 49.212. FEES AND CHARGES. (a) A district may adopt
and enforce all necessary charges, mandatory fees, or rentals, in
addition to taxes, for providing or making available any district
facility or service, including fire-fighting activities provided
under Section 49.351.
(b) A district may require a deposit for any services or
facilities furnished and the district may or may not provide that
the deposit will bear interest.
(c) Subject to observance of the procedure appropriate to
the circumstances, a district may discontinue any or all facilities
or services to prevent an abuse or to enforce payment of an unpaid
charge, fee, or rental due the district, including taxes that have
been delinquent for not less than six months.
(d) Notwithstanding any provision of law to the contrary, a
district that charges a fee that is an impact fee as described in
Section 395.001(4), Local Government Code, must comply with Chapter
395, Local Government Code. A charge or fee by a district for
construction, installation, or inspection of a tap or connection to
district water, sanitary sewer, or drainage facilities, including
all necessary service lines and meters, or for wholesale facilities
that serve such water, sanitary sewer, or drainage facilities that
(i) does not exceed three times the actual and reasonable costs to
the district for such tap or connection, (ii) if made to a
nontaxable entity for retail or wholesale service, does not exceed
the actual costs to the district for such work and for all
facilities that are necessary to provide district services to such
entity and that are financed or are to be financed in whole or in
part by tax-supported or revenue bonds of the district, or (iii) if
made by a district for retail or wholesale service on land that at
the time of platting was not being provided with water or wastewater
service by the district, shall not be deemed to be an impact fee
under Chapter 395, Local Government Code. A district may pledge the
revenues of the district's utility system to pay the principal of or
interest on bonds issued to construct the capital improvements for
which a fee was imposed under this subsection, and money received
from the fees shall be considered revenues of the district's
utility system for purposes of the district's bond covenants.
(e) Chapter 2007, Government Code, does not apply to a tax
levied, a standby fee imposed, or a charge, fee, or rental adopted
or enforced by a district under this chapter, another chapter of
this code, or Chapter 395, Local Government Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 12, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1423, § 12, eff. June 17, 2001.
§ 49.2125. FEES AND OTHER CHARGES OF CERTAIN REGIONAL
WATER AUTHORITIES AFTER ANNEXATION. (a) This section applies to
a regional water authority that:
(1) was established after January 1, 1999;
(2) is located entirely within a county with a
population greater than 3.4 million according to the 2000 federal
decennial census; and
(3) has a population greater than 375,000 according to
the 2000 federal decennial census.
(b) Notwithstanding any other law, except to the extent an
authority to which this section applies agrees in writing, a
municipality's annexation of territory within the authority has no
effect on the authority's ability to assess and collect inside the
territory annexed by the municipality the types of fees, rates,
charges, or special assessments that the authority was assessing
and collecting at the time the municipality initiated the
annexation; provided, however, that the authority's ability to
assess and collect such fees, rates, charges, or special
assessments shall terminate on the later to occur of (i) the date of
final payment or defeasance of any bonds or other indebtedness,
including any refunding bonds, that are secured by such fees,
rates, charges, or special assessments or (ii) the date that the
authority no longer provides services inside the annexed territory.
An authority to which this section applies shall continue to
provide services to the annexed territory in accordance with
contracts in effect at the time of the annexation unless a written
agreement between the governing body of the authority and the
governing body of the municipality provides otherwise.
Added by Acts 2003, 78th Leg., ch. 248, § 15, eff. June 18, 2003.
§ 49.213. AUTHORITY TO ISSUE CONTRACTS. (a) A
district may contract with a person or any public or private entity
for the joint construction, financing, ownership, and operation of
any works, improvements, facilities, plants, equipment, and
appliances necessary to accomplish any purpose or function
permitted by a district, or a district may purchase an interest in
any project used for any purpose or function permitted by a
district.
(b) A district may enter into contracts with any person or
any public or private entity in the performance of any purpose or
function permitted by a district.
(c) A district may enter into contracts, which may be of
unlimited duration, with persons or any public or private entities
on the terms and conditions the board may consider desirable, fair,
and advantageous for:
(1) the purchase or sale of water;
(2) the collection, transportation, treatment, and
disposal of its domestic, industrial, and communal wastes or the
collection, transportation, treatment, and disposal of domestic,
industrial, and communal wastes of other persons;
(3) the gathering, diverting, and control of local
storm water, or other local harmful excesses of water;
(4) the continuing and orderly development of the land
and property within the district through the purchase,
construction, or installation of works, improvements, facilities,
plants, equipment, and appliances that the district may otherwise
be empowered and authorized to do or perform so that, to the
greatest extent reasonably possible, considering sound engineering
and economic practices, all of the land and property may be placed
in a position to ultimately receive the services of the works,
improvements, plants, facilities, equipment, and appliances;
(5) the maintenance and operation of any works,
improvements, facilities, plants, equipment, and appliances of the
district or of another person or public or private entity;
(6) the collection, treatment, and disposal of
municipal solid wastes; and
(7) the exercise of any other rights, powers, and
duties granted to a district.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.214. CONFLICTS OF INTEREST IN CONTRACTS. The
provisions of Chapter 171, Local Government Code, shall apply to
the award of district contracts.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.215. SERVICE TO AREAS OUTSIDE THE DISTRICT. (a) A
district may purchase, construct, acquire, own, operate, repair,
improve, or extend all works, improvements, facilities, plants,
equipment, and appliances necessary to provide any services or
facilities authorized to be provided by the district to areas
contiguous to or in the vicinity of the district provided the
district does not duplicate a service or facility of another public
entity. A district providing potable water and sewer utility
services to household users shall not provide services or
facilities to serve areas outside the district that are also within
the corporate limits of a city without securing a resolution or
ordinance of the city granting consent for the district to serve the
area within the city.
(b) To secure money for this purpose, a district is
authorized to issue and sell negotiable bonds and notes payable
from the levy and collection of ad valorem taxes on all taxable
property within the district or from all or any designated part of
the revenues received from the operation of the district's works,
improvements, facilities, plants, equipment, and appliances or
from a combination of taxes and revenues.
(c) Any bonds and notes may be issued upon the terms and
conditions set forth in this code.
(d) A district shall not be required to hold a certificate
of convenience and necessity as a precondition for providing retail
water or sewer service to any customer or service area,
notwithstanding the fact that such customer or service area may be
located either within or outside the boundaries of the district or
has previously received water or sewer service from an entity
required by law to hold a certificate of convenience and necessity
as a precondition for such service. This subsection does not
authorize a district to provide services within an area for which a
retail public utility holds a certificate of convenience and
necessity or within the boundaries of another district without that
district's consent, unless the district has a valid certificate of
convenience and necessity to provide services to that area.
(e) A district is authorized to establish, maintain,
revise, charge, and collect the rates, fees, rentals, tolls, or
other charges for the use, services, and facilities that provide
service to areas outside the district that are considered necessary
and may be higher than those charged for comparable service to users
within the district.
(f) The rates, fees, rentals, tolls, or other charges shall
be at least sufficient to meet the expense of operating and
maintaining the services and facilities for a water and sanitary
sewer system serving areas outside the district and to pay the
principal of and interest and redemption price on bonds issued to
purchase, construct, acquire, own, operate, repair, improve, or
extend the services or facilities.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.216. ENFORCEMENT BY PEACE OFFICERS. (a) A
district may contract for or employ its own peace officers with
power to make arrests when necessary to prevent or abate the
commission of:
(1) any offense against the rules of the district when
the offense or threatened offense occurs on any land, water, or
easement owned or controlled by the district;
(2) any offense involving injury or detriment to any
property owned or controlled by the district; and
(3) any offense against the laws of the state.
(b) A district may appoint reserve peace officers who may be
called to serve as peace officers by the district during the actual
discharge of their official duties.
(c) A reserve peace officer serves at the discretion of the
district and may be called into service if the district considers it
necessary to have additional officers to preserve the peace in or
enforce the law of the district.
(d) A reserve peace officer on active duty and actively
engaged in assigned duties has the same rights, privileges, and
duties as any other peace officer of the district.
(e) Any peace officer, before beginning to perform any
duties and at the time of appointment, must take an oath and execute
a bond conditioned on faithful performance of such officer's duties
in the amount of $1,000 payable to the district. The oath and the
bond shall be filed in the district office.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.217. OPERATION OF CERTAIN MOTOR VEHICLES ON OR NEAR
PUBLIC FACILITIES. (a) In this section, "motor vehicle" means a
self-propelled device in, upon, or by which a person or property is
or may be transported or drawn on a road or highway.
(b) Except as provided in Subsections (c) and (d), a person
may not operate a motor vehicle on a levee, in a drainage ditch, or
on land adjacent to a levee, canal, ditch, exposed conduit,
pipeline, pumping plant, storm water facility, or other facility
for the transmission, storage, treatment, or distribution of water,
sewage, or storm water owned or controlled by a district.
(c) A district may authorize the use of motor vehicles on
land that it owns or controls by posting signs on the property.
(d) This section does not prohibit a person from:
(1) driving on a public road or highway; or
(2) operating a motor vehicle used for repair or
maintenance of public water, sewer, or storm water facilities.
(e) A person who operates a motor vehicle in violation of
Subsection (b) commits an offense. An offense under this section is
a Class C misdemeanor, except that if a person has been convicted of
an offense under this section, a subsequent offense is a Class B
misdemeanor.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
§ 49.218. ACQUISITION OF PROPERTY. (a) A district or a
water supply corporation may acquire land, an interest in land,
materials, waste grounds, easements, rights-of-way, equipment,
contract or permit rights or interests, and other property, real or
personal, considered necessary for the purpose of accomplishing any
one or more of the district's or water supply corporation's purposes
provided in this code or in any other law.
(b) A district or water supply corporation shall have the
right to acquire property by gift, grant, or purchase, and the right
to acquire property shall include property considered necessary for
the construction, improvement, extension, enlargement, operation,
or maintenance of the plants, works, improvements, facilities,
equipment, or appliances of a district or a water supply
corporation.
(c) A district or water supply corporation may acquire
either the fee simple title to or an easement on all land, both
public and private, either inside or outside its boundaries and may
acquire the title to or an easement on property other than land held
in fee.
(d) A district or water supply corporation may require, as a
condition for service, that an applicant for service grant to the
district or water supply corporation a permanent recorded easement
that:
(1) is dedicated to the district or water supply
corporation; and
(2) will provide a reasonable right of access and use
to allow the district or water supply corporation to construct,
install, maintain, replace, upgrade, inspect, or test any facility
necessary to serve that applicant as well as the district's or water
supply corporation's purposes in providing system-wide service.
(e) A district or water supply corporation may not, under
Subsection (d), require an applicant to provide an easement for a
service line for the sole benefit of another applicant.
(f) As a condition of service to a new subdivision, a
district or water supply corporation may require a developer to
provide permanent recorded easements to and throughout the
subdivision sufficient to construct, install, maintain, replace,
upgrade, inspect, or test any facility necessary to serve the
subdivision's anticipated service demands when the subdivision is
fully occupied.
(g) A district or water supply corporation may also lease
property from others for its use on such terms and conditions as the
board of the district or the board of directors of the water supply
corporation may determine to be advantageous.
(h) Property acquired under this section, or any other law
allowing the acquisition of property by a district or water supply
corporation, and owned by a district or water supply corporation is
not subject to assessments, charges, fees, or dues imposed by a
nonprofit corporation under Chapter 204, Property Code.
Added by Acts 1995, 74th Leg., ch. 715, § 2, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 13, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 71, § 1, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1423, § 13, eff. June 17, 2001; Acts
2003, 78th Leg., ch. 1276, § 18.009, eff. Sept. 1, 2003.
§ 49.219. ACQUISITION OF EXISTING FACILITIES. Any
district may acquire by agreement all or any part
