WATER CODE
CHAPTER 55. WATER IMPROVEMENT DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
§ 55.001. DEFINITIONS. In this chapter:
(1) "District" means a water improvement district
created under this chapter.
(2) "Board" means the board of directors of a water
improvement district.
(3) "Commission" means the Texas Natural Resource
Conservation Commission.
(4) "Executive director" means the executive director
of the Texas Natural Resource Conservation Commission.
Acts 1971, 62nd Leg., p. 428, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff. June
10, 1981; Acts 1985, 69th Leg., ch. 795, § 1.144, eff. Sept. 1,
1985; Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.078, eff. Aug.
12, 1991.
SUBCHAPTER B. CREATION OF DISTRICT; CONVERSION TO ARTICLE XVI,
SECTION 59, DISTRICT
§ 55.021. CREATION OF DISTRICT. A water improvement
district may be created in the manner prescribed by this
subchapter, either under and subject to the limitations of Article
III, Section 52, of the Texas Constitution, or under Article XVI,
Section 59, of the Texas Constitution.
Acts 1971, 62nd Leg., p. 428, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.022. DISTRICT WHOLLY WITHIN ONE COUNTY. The
commissioners court of a county, at any regular or called session,
may create one or more water improvement districts in the county as
provided by this subchapter.
Acts 1971, 62nd Leg., p. 428, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.023. DISTRICT MAY INCLUDE CITIES, TOWNS, ETC. A
district may include all or part of one or more cities, towns,
villages, and municipal corporations, but no land may be included
in more than one district at any one time.
Acts 1971, 62nd Leg., p. 428, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.024. PETITION. (a) A petition requesting
creation of a district may be presented to the commissioners court.
The petition must be signed by a majority of the persons who hold
title to land in the proposed district, representing a total value
of more than 50 percent of the value of all the land in the proposed
district as indicated by the county tax rolls. However, if there
are more than 50 persons holding title to land in the proposed
district, the petition is sufficient if signed by 50 of them. The
petition must set out the boundaries of the district and designate a
name for the district.
(b) The petition may be signed and presented to the
commissioners court in several copies. In this case the county
clerk shall make a certified copy of the petition, including a list
of the names of all signers, and shall file the certified copy and
the original copies. The certified copy of the petition shall be
considered the petition in all proceedings under this chapter.
Acts 1971, 62nd Leg., p. 428, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.025. DATE SET FOR HEARING. The commissioners court
shall set a date for a hearing on the petition, to be held at a
regular or special session not less than 15 days nor more than 40
days after the day the petition is presented.
Acts 1971, 62nd Leg., p. 429, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.026. NOTICE OF HEARING. (a) The county clerk
shall issue a notice of the hearing directed to the sheriff giving
the date and place of the hearing, and a copy of the order of the
court setting the hearing. The sheriff shall serve the notice in
the manner provided by law.
(b) The sheriff shall post copies of the notice in three
public places in the proposed district, and shall post one copy at
the courthouse door or on the bulletin board used for public
notices. These notices shall be posted for 10 full days before the
date of the hearing. The notice shall also be published once in a
newspaper of general circulation in the county, if a newspaper is
published in the county, at least five days before the date of the
hearing. The sheriff shall make return of a true copy of the
notice, showing the times and places of posting and publication.
The county clerk shall record the return in the minutes of the
court.
(c) Any person interested may inspect the boundaries of the
district as set out in the petition, and any person may inspect the
petition in the office of the county clerk.
Acts 1971, 62nd Leg., p. 429, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.027. HEARING. (a) At the hearing, any person
whose land is included in and would be affected by the district may
support or oppose creation of the district and may offer testimony
to show that the district is or is not necessary, would or would not
be of public utility, or would or would not be feasible or
practicable.
(b) Except as otherwise provided by this chapter, the
commissioners court has exclusive jurisdiction to hear and
determine all contests and objections to creation of the district
and all other matters pertaining to creation of the district.
(c) The commissioners court may adjourn the hearing from day
to day.
(d) The judgment rendered by the commissioners court is
final, except as otherwise provided by this chapter.
Acts 1971, 62nd Leg., p. 429, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.028. FINDINGS; ORDER. The commissioners court
shall make and enter its findings in the record. If it finds that
creation of the district and the construction or purchase of the
proposed irrigation system, or cooperation with the United States
as provided by Section 55.161 of this code, is feasible,
practicable, and necessary, and would be a public benefit and a
benefit to the land included in the district, then the court shall
make and enter an order granting the petition and directing that an
election be held in the proposed district. Otherwise, the court
shall dismiss the petition at the cost of the petitioners.
Acts 1971, 62nd Leg., p. 430, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.029. APPEAL. (a) Any petitioner or any landowner
in the district aggrieved by the order of the commissioners court
may appeal the order to the district court. Notice of appeal must
be filed with the commissioners court at the time of the hearing,
and an appeal bond must be filed with the county clerk within 10
days after the day notice of appeal is given. At the time notice of
appeal is given, the commissioners court shall fix the amount of the
appeal bond at not less than $2,000 nor more than $5,000; and the
bond shall be made payable to the county judge for the benefit of
adverse parties.
(b) Except as otherwise provided by this section, the appeal
shall be tried de novo under the rules prescribed for practice in
the district court and shall be de novo.
(c) The county clerk shall transfer to the district clerk
the judgment and all records filed in the commissioners court
within 10 days after the day the appeal bond is filed, and no other
pleadings need be filed.
(d) The final judgment on appeal shall be certified to the
commissioners court for its action within 10 days after the day the
judgment becomes final.
Acts 1971, 62nd Leg., p. 430, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.031. VOTING PRECINCTS. (a) The commissioners
court, at the time it orders the election, shall order creation of
one or more election precincts in the district and shall designate
polling places in each precinct.
(b) The election precincts created under this section shall
remain the election precincts of the district until changed by an
order of its board.
Acts 1971, 62nd Leg., p. 430, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.032. ELECTION OFFICIALS. The commissioners court
shall appoint two judges and two clerks for each polling place, and
designate one of the judges to be presiding judge. If an officer
fails to serve, his place shall be filled in the manner provided by
the general election law.
Acts 1971, 62nd Leg., p. 430, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.037. DIRECTORS. The commissioners court shall
declare the five persons receiving the most votes to be elected
directors. If not all five positions can be determined because of a
tie vote, the commissioners court shall fill the necessary
positions by selecting among the tying candidates.
Acts 1971, 62nd Leg., p. 431, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.038. ISSUANCE OF NOTES. (a) If the proposition to
issue notes carries, the board of directors shall issue notes of the
district, in an amount not to exceed four percent of the cost of the
proposed improvements, for the purpose of creating a fund to pay the
cost of organizing the district and the cost of all surveys,
investigations, engineering, issuance of bonds, making and filing
of maps and reports, legal expenses, and all other costs and
expenses authorized or made necessary by the provisions of this
chapter. The board shall sell the notes or exchange them in payment
of the costs and expenses.
(b) The notes shall be secured by the levy, assessment, and
collection of taxes as provided for payment of bonds. The notes
shall be paid out of the proceeds of the district's bonds when they
are issued and sold. If the bond election fails to carry, then the
notes shall be paid out of the tax revenue.
Acts 1971, 62nd Leg., p. 431, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.039. RECORDATION OF ORDER. (a) After the
commissioners court makes and enters in its minutes the order
creating the district or an order changing the name of a district,
the court shall file a certified copy of the order accompanied by a
plat defining the district boundaries with the county clerk.
(b) The county clerk shall have the certified copy of the
order and the plat recorded and indexed in the deed records of the
county.
(c) Recordation of the order and plat has the same effect,
as to notice, as the recordation of a deed.
(d) The district shall pay the cost of making and recording
the certified copy of the order and the plat.
Acts 1971, 62nd Leg., p. 432, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1991, 72nd Leg., ch. 187, § 5, eff. Sept. 1,
1991.
§ 55.040. MULTI-COUNTY DISTRICT: PETITION. Creation
of a district composed of land in two or more counties may be
initiated by presenting a petition to the commission signed by the
owners of more than half the land in the proposed district or by 50
qualified property taxpaying electors of the territory of the
proposed district. The petition shall describe the boundaries of
the proposed district and request an order on the advisability of
creating the district and an order for an election.
Acts 1971, 62nd Leg., p. 432, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff. June
10, 1981; Acts 1997, 75th Leg., ch. 1070, § 34, eff. Sept. 1,
1997.
§ 55.042. MULTI-COUNTY DISTRICT: HEARING. If the
commission determines that a hearing is necessary under Section
49.011, the commission shall conduct a hearing and any person whose
land would be affected by creation of the district may appear and
support or oppose creation of the proposed district, and may offer
competent testimony to show that the district would or would not
serve a beneficial purpose, be practicable, or accomplish the
purposes intended.
Acts 1971, 62nd Leg., p. 432, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1997, 75th Leg., ch. 1070, § 35, eff. Sept. 1,
1997.
§ 55.043. MULTI-COUNTY DISTRICT: FINDINGS. (a) If
the commission finds that the plan of water conservation,
irrigation, and use presented in the petition is practicable and
would be a public utility, the commission shall enter the findings
in its records and shall send a certified copy of the findings to
the commissioners court in each county in which part of the proposed
district is located. The commission shall also inform each
commissioners court of a date set by the commission on which an
election shall be held in the area of the proposed district to
determine whether the district will be created and to elect five
directors for the district.
(b) If the commission finds that creation of the district is
not practicable, that it would not serve a beneficial purpose, and
that it would not be possible to accomplish through its creation the
purposes proposed, the commission shall enter its findings in its
records and shall dismiss the petition.
Acts 1971, 62nd Leg., p. 432, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.044. MULTI-COUNTY DISTRICT: NOTICE OF
ELECTION. On receiving a certified copy of the findings of the
commission authorizing the election, the commissioners court of
each county shall have notices of the election posted, in the manner
provided for an election to create a single-county district, for
not less than 15 nor more than 30 days before the date of the
election.
Acts 1971, 62nd Leg., p. 432, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.045. MULTI-COUNTY DISTRICT: RULES GOVERNING
ELECTION. Except as provided by the succeeding sections, the
election shall be held, the returns made and canvassed, and the
results declared, as provided in the case of a single-county
district.
Acts 1971, 62nd Leg., p. 433, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.046. MULTI-COUNTY DISTRICT: ELECTION RETURNS,
CANVASS, RESULT. (a) The commission shall designate the county
judge of one of the counties in the proposed district to act as a
canvassing board to receive and canvass the votes cast and to
declare the result of the election.
(b) In each county, the officers appointed by the
commissioners court to hold the election shall return the results
to the commissioners court and shall return all ballot boxes to the
county clerk.
(c) On receiving the returns of the election, the
commissioners court shall canvass the returns and certify the
result of the election in the county to the county judge appointed
to act as canvassing board.
(d) When the county judge receives the returns from all the
counties, he shall canvass the returns and certify the result of the
election to the commissioners court of each county, which shall
enter the result of the election in its permanent records.
(e) If the proposition to create the district is carried,
the county judge acting as the canvassing board shall make and
transmit to each commissioners court an appropriate order declaring
that the district is created and describing it boundaries. He shall
also issue certificates of election to the persons elected as
directors, who shall proceed with the organization of the district
as otherwise provided by this chapter.
Acts 1971, 62nd Leg., p. 433, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.047. EXCLUSION OF CITY, UNINCORPORATED AREA, OR
COUNTY VOTING AGAINST DISTRICT. (a) As used in this section:
(1) "city" includes town or other municipal
corporation; and
(2) "unincorporated area" means an area not included
within the boundaries of a city.
(b) Each city included within the boundaries of the proposed
district shall be treated as a separate voting unit, and the votes
cast in the city shall be counted and canvassed to show the result
of the election in the city. No city shall be included in the
district unless the majority of the votes cast in the city favor
creation of the district.
(c) If the proposed district includes both incorporated and
unincorporated areas in a county, the unincorporated area shall not
be included in the district unless the majority of the votes cast in
the unincorporated area favor creation of the district.
(d) No district, the major portion of which is in one
county, shall be organized to include land in another county unless
the majority of the votes cast in the other county favor creation of
the district.
(e) If any portion of a proposed district, under the
provisions of this section, votes against creation of the district,
and the remaining area of the proposed district votes for the
district, then the proposition shall be adopted and the district
confirmed except as to the territory voting against the district.
(f) All property in the territory of the district as
originally proposed is subject to taxation for the payment of all
debts and obligations, including organization expenses, incurred
while part of the district.
(g) If at least 10 percent of the qualified electors of the
area remaining in the district file a petition with the board of
directors requesting a new election on creation of the district,
then a new election shall be ordered and held for the remaining
area, or the district organization may be dissolved by order of the
board of directors and a new district formed.
Acts 1971, 62nd Leg., p. 433, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.048. NAME OF DISTRICT. (a) The name of a district
wholly within one county shall include the name of the county and a
number. Districts wholly within one county shall be numbered
consecutively as created, and no two districts may have the same
number.
(b) The name of a district with territory in two or more
counties may include the names of those counties, or the district
may adopt any appropriate name. The name may include a number, but
the number may not be the same as the number of a district in any of
the counties. The number of a district created in any county may
not be the same as the number of a district with territory in that
county and other counties.
Acts 1971, 62nd Leg., p. 434, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.049. SURVEY OF DISTRICT BOUNDARIES. Immediately
after the directors are qualified, the board shall order a survey of
the boundaries of the district to be made according to the
boundaries designated in the petition for creation of the district,
or the board shall adopt, in whole or in part, the boundaries
already established, and order the boundaries marked by suitable
monuments.
Acts 1971, 62nd Leg., p. 434, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.050. CHAPTER APPLICABLE TO IRRIGATION
DISTRICTS. Irrigation districts created under the laws of 1905,
1913, and 1915 (Chapter 50, Acts of the 29th Legislature, 1905;
Chapter 172, Acts of the 33rd Legislature, 1913; and Chapter 138,
Acts of the 34th Legislature, 1915), are governed by the provisions
of this chapter.
Acts 1971, 62nd Leg., p. 434, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.051. CHANGE OF DISTRICT NAME. (a) An irrigation
district created under the law of 1905, 1913, or 1915 (Chapter 50,
Acts of the 29th Legislature, 1905; Chapter 172, Acts of the 33rd
Legislature, 1913; and Chapter 138, Acts of the 34th Legislature,
1915), may change the name of the district to the name provided in
this chapter by filing a declaration to change the name with the
commissioners court of the county in which the district is located.
(b) The declaration to change the district's name shall be
in the form of a deed of conveyance and shall be acknowledged by the
president and secretary of the board. It shall include a copy of
the minutes of the board and the resolution adopted to change the
name.
(c) After the declaration is recorded, the name of the
district shall be changed.
Acts 1971, 62nd Leg., p. 434, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.053. CONVERSION OF ARTICLE III, SECTION 52 DISTRICT
TO ARTICLE XVI, SECTION 59 DISTRICT. (a) A water improvement
district created subject to the limitations of Article III, Section
52, of the Texas Constitution, may be converted into a water
improvement district operating under the authority of Article XVI,
Section 59, of the Texas Constitution, as provided by this section.
(b) On the petition of 20 percent of the owners of land in
the district, the board of directors shall order an election to
determine whether the district shall be converted to a district
operating under Article XVI, Section 59, of the Texas Constitution.
The election shall be conducted under the rules applicable to
general elections in the district. The ballots shall be printed to
provide for voting for or against: "Conservation and Reclamation."
(c) The board shall canvass the returns, make an order
declaring the result of the election, and have the order recorded in
the deed records of the county or counties in which the district is
located. If the result of the election is affirmative, the district
begins operating under Article XVI, Section 59, of the Texas
Constitution, without change of name or impairment of its
obligations, when the order is recorded.
Acts 1971, 62nd Leg., p. 435, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
§ 55.101. BOARD OF DIRECTORS. The governing body of a
district is a board of five directors.
Acts 1971, 62nd Leg., p. 435, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1995, 74th Leg., ch. 715, § 24, eff. Sept. 1,
1995.
§ 55.102. QUALIFICATIONS OF DIRECTORS. To be qualified
for election as a director, a person must be a resident of the
state, own land subject to taxation in the district, and be at least
18 years of age at the time of the election. Section 49.052 does not
apply to a district governed by this chapter whose principal
purpose is providing water for irrigation.
Acts 1971, 62nd Leg., p. 435, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1995, 74th Leg., ch. 715, § 25, eff. Sept. 1,
1995.
§ 55.103. APPLICATION TO GET ON BALLOT. (a) A person
qualified to serve as a director may file an application with the
secretary to have the applicant's name printed on the election
ballots. The application must be signed by the applicant or by at
least 10 qualified electors of the district and must be filed not
later than 5 p.m. of the 45th day before the date of the election.
(b) Only persons for whom applications are filed under this
section may have their names printed on the ballots. However,
nothing in this section prevents write-in votes.
Acts 1971, 62nd Leg., p. 435, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1989, 71st Leg., ch. 1009, § 3, eff. Sept. 1,
1989.
§ 55.107. OPTIONAL CONVERSION TO STAGGERED
TERMS. (a) The board, by resolution adopted before December 1 of
any year on the vote of at least four directors, may adopt the
system of staggered two-year terms of office as provided by this
section.
(b) On the first available election date as provided by
Article 2.01b of Vernon's Texas Election Code in the first
even-numbered year immediately succeeding adoption of the
resolution, five directors shall be elected. Of the five elected,
the two receiving the fewest votes shall serve for two years and the
other three shall serve for four years. However, if the vote is
such that two of them do not receive fewer votes than the other
three, then the directors shall determine by lot which two will
serve two years and which three will serve four years.
(c) After the election provided for in Subsection (b) of
this section, on the same date in each following even-numbered year
there shall be an election to elect successors for the directors
whose terms expire, to hold office for terms of four years.
Acts 1971, 62nd Leg., p. 436, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 981, ch. 367, § 25, eff. June
10, 1981; Acts 1983, 68th Leg., p. 5215, ch. 951, § 8, eff. Jan.
1, 1984.
§ 55.108. APPOINTMENT OF DIRECTORS IN CERTAIN
DISTRICTS. (a) If the petition to create a district proposes a
district which would contain no more than 12,000 acres of land, and
if at least 60 percent of the land is owned by persons who do not
reside in the district, the petition may request that the directors
be appointed by the commissioners court. If so, the directors shall
be appointed instead of elected. The commissioners court shall
appoint the directors at the time otherwise fixed for electing
directors, or if the court is not in session at that time, it shall
appoint the directors as soon as possible.
(b) The owners of land in the district may file petitions
with the commissioners court expressing their choice of persons to
be selected as directors. If the owners of at least 60 percent of
the land agree on the persons to be appointed, the commissioners
court shall appoint those persons. Otherwise, the court shall
appoint suitable, qualified persons as directors.
Acts 1971, 62nd Leg., p. 436, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.110. ADDITIONAL BONDS. (a) If a district is
appointed fiscal agent of the United States or is authorized to
collect money for and in behalf of the United States in connection
with any federal reclamation project, the assessor and collector
and each director shall execute an additional bond in an amount set
by the secretary of the interior, conditioned on the faithful
performance of the duties of his office and the faithful
performance by the district of its duties as fiscal or other agent
of the United States.
(b) The additional bonds shall be approved, recorded, and
filed as provided for other official bonds. The additional bonds
may be sued on by the United States or by any person injured by
failure of the officer or the district to perform fully, promptly,
and completely the required duties.
Acts 1971, 62nd Leg., p. 437, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER D. POWERS AND DUTIES
§ 55.161. PURPOSES OF DISTRICT. (a) A water
improvement district may provide for irrigation of the land within
its boundaries.
(b) A district operating under Article XVI, Section 59, of
the Texas Constitution, may furnish water for domestic, power, and
commercial purposes.
(c) A district may be formed to cooperate with the United
States under the federal reclamation laws for the purpose of:
(1) construction of irrigation and drainage
facilities necessary to maintain the irrigability of the land;
(2) purchase, extension, operation, or maintenance of
constructed facilities; or
(3) assumption, as principal or guarantor, of
indebtedness to the United States on account of district lands.
Acts 1971, 62nd Leg., p. 440, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.163. IMPROVEMENTS: PURCHASE OR CONSTRUCTION. A
district may purchase or construct improvements and facilities
necessary for irrigation of land in the district, and if operating
under Article XVI, Section 59, of the Texas Constitution,
improvements and facilities necessary to supply, deliver, and sell
water for domestic, power, and commercial purposes.
Acts 1971, 62nd Leg., p. 441, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.165. DRAINAGE DITCHES: LEVEES. The board may
include in the plans of the district the necessary drainage
ditches, or other facilities for drainage, and levees for the
protection of land in the district. The district may purchase all
or part of any system belonging to a drainage district. However,
the purchase contract shall provide for paying or assuming the
debts of the drainage district, and the amount of the debts paid or
assumed shall be considered in determining the bond-issuing
capacity of the district.
Acts 1971, 62nd Leg., p. 441, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.166. CONSTRUCTING BRIDGES AND CULVERTS ACROSS AND
OVER COUNTY AND PUBLIC ROADS. The district shall build necessary
bridges and culverts across and over district canals, laterals, and
ditches which cross county or public roads. Funds of the district
shall be used to construct the bridges and culverts.
Acts 1971, 62nd Leg., p. 441, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.167. CONSTRUCTING CULVERTS AND BRIDGES ACROSS AND
UNDER RAILROAD TRACKS AND ROADWAYS. (a) The district, at its own
expense, may build necessary bridges and culverts across or under
any railroad tracks or roadways to enable the district to construct
and maintain any canal, lateral, or ditch which is a necessary part
of its improvements.
(b) Before the district proceeds to build bridges and
culverts, the board shall deliver to the legal agent, division
superintendent, or roadmaster written notice. The railroad company
shall have 30 days in which to build the bridges and culverts at its
own expense and according to its own plans.
(c) The bridges and culverts shall be placed at points
designated by the board or the district engineer and shall be
constructed so that they will not interfere with the free and
unobstructed flow of water passing through the canal or ditch.
Acts 1971, 62nd Leg., p. 441, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.185. CONTRACT WITH THE UNITED STATES. The board
may enter into a contract or other obligation with the United States
for the following purposes:
(1) to construct, operate, and maintain necessary
facilities to deliver and distribute water;
(2) to drain district land;
(3) to assume debt for district land;
(4) to rent temporarily United States water for use on
district land under the federal reclamation laws; or
(5) to furnish a water supply to the district under any
act of Congress which authorizes it.
Acts 1971, 62nd Leg., p. 445, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.186. PAYMENTS MADE BY A DISTRICT UNDER A CONTRACT
WITH THE UNITED STATES. (a) If a district enters into a contract
with the United States, the district may deposit with the United
States district bonds at 90 percent of par value to pay the amount
owed by the district under the contract. The district shall pay
interest on the bonds in the same manner that other bonds of the
district are paid. Interest shall be paid regularly to the United
States and applied in the manner provided in the contract.
(b) If bonds are not deposited as provided in Subsection (a)
of this section, the board shall include in any levy or assessment
made by the district an amount sufficient to make annual payments
under the terms of the contract.
Acts 1971, 62nd Leg., p. 445, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.187. DISTRICT AS FISCAL AGENT FOR UNITED
STATES. The board may accept on behalf of the district appointment
as the fiscal agent for the United States on any federal reclamation
project. As fiscal agent, the district may assume the duties and
perform the acts incident to this capacity and shall do anything
required by federal statutes and rules and regulations established
by any department of the federal government.
Acts 1971, 62nd Leg., p. 445, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.188. CONVEYING PROPERTY TO THE UNITED STATES. If
the district enters into a contract with the United States, the
board may convey to the United States any property which is
necessary for constructing, operating, and maintaining
improvements for the benefit of the district.
Acts 1971, 62nd Leg., p. 445, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.192. ACQUIRING WATER RIGHTS. Any district may
acquire water rights in the manner provided by law.
Acts 1971, 62nd Leg., p. 446, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.193. SELLING WATER RIGHTS. (a) Any district
which has a permit issued by the commission to construct a reservoir
and to appropriate water from a stream or watershed for irrigation
or other purposes may convey to another district an interest in the
reservoir or water rights.
(b) The conveyance shall be recorded in the office of the
county clerk of the county in which the property is located and in
the office of the executive director.
(c) The conveyance, when filed, shall convey all rights in
the interest conveyed which were held under the permit by the
district conveying the interest.
(d) After the conveyance is filed in the office of the
executive director, the rights conveyed vest in the district to
which the conveyance was made as if the rights were granted directly
by the commission.
Acts 1971, 62nd Leg., p. 446, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff. June
10, 1981.
§ 55.194. TRANSFER OF WATER RIGHT. If there is land in a
district which has a water right from a source of supply acquired by
the district but the land is difficult or impracticable to irrigate
from that source of supply, the district may allow transfer of the
water right to other land which is adjacent to the district. The
adjacent land may be admitted to the district with the same right of
water service as other land already in the district.
Acts 1971, 62nd Leg., p. 446, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.195. SUPPLYING WATER TO CITIES OUTSIDE THE
DISTRICT. When a district acquires an established irrigation
system which supplies water to landowners in a city, town, or
village which is not included in the district, the district shall
continue to supply water to the landowners at a reasonable annual
rate.
Acts 1971, 62nd Leg., p. 447, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.196. SELLING WATERPOWER PRIVILEGES. The district
may enter into a contract to sell waterpower privileges if power can
be generated from water flowing from the district's reservoirs and
irrigation system. The sale of waterpower privileges may not
interfere with the district's obligation to furnish an adequate
supply of water for irrigation and for municipal purposes in
districts which furnish water for municipal purposes.
Acts 1971, 62nd Leg., p. 447, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.197. SELLING SURPLUS WATER. The district may sell
to any person who owns or uses land in the vicinity of the district
any surplus district water for use in irrigation or for domestic or
commercial uses.
Acts 1971, 62nd Leg., p. 447, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.198. PUMPING AND DELIVERING WATER TO LAND NEAR
DISTRICT. The district may enter into a contract with a person who
owns or uses land in the vicinity of the district and who has a
permit from the commission to appropriate water for use in
irrigation or for domestic or commercial uses to pump or deliver the
water to the person's land.
Acts 1971, 62nd Leg., p. 447, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff. June
10, 1981.
§ 55.200. SALE OF LAND ACQUIRED BY A DISTRICT FOR OTHER
THAN DISTRICT PURPOSES. The district may sell to the highest
bidder at a public sale any land acquired by the district through
foreclosure of liens for maintenance and operation assessments or
acquired by the district for any purpose other than carrying out its
plans. The board may use proceeds from the sale for making
improvements in the district, for maintenance and operation of the
district's system, or for carrying on district business.
Acts 1971, 62nd Leg., p. 447, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.201. USE OF EXCESS DISTRICT MONEY. After all
district improvements are completed and all expenses are paid, the
board may use any remaining money to preserve, maintain, and repair
district improvements.
Acts 1971, 62nd Leg., p. 448, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.202. BOARD'S SEMIANNUAL REPORT. On the first day
of January and July of each year, the board shall make and verify a
report which shows in detail the kind, character, and amount of
improvements constructed in the district, the cost of the
improvements, the amount of each warrant paid, the person to whom
each warrant was paid, the purpose for which each warrant was paid,
and other data necessary to show the condition of improvements
made. The report shall be filed with the county clerk in the county
or counties in which the district is located and made available for
public inspection.
Acts 1971, 62nd Leg., p. 448, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.204. WAIVER OF DISTRICT TORT IMMUNITY. If the
board finds that it is in the best interest of the district and that
it is necessary to enable the district to enter into a contract to
employ Mexican laborers, it may enter into a written contract to
waive in advance the district's immunity from liability in damages
for personal injuries and sickness which is proximately caused by
torts of the district or negligence of agents or employees of the
district and which is suffered by Mexican laborers employed by the
district under the terms of the Migrant Labor Agreement of 1951
between the United States and Mexico or any subsequent agreement of
a similar nature.
Acts 1971, 62nd Leg., p. 448, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER E. REGULATORY POWERS
§ 55.241. PURPOSE. The powers granted to the district
and its board under this subchapter are for the purpose of helping
the district to maintain the purity of district water, to protect
the preservation and use of the water, to protect the lives of
persons who desire to go on, over, or across the water, and to
insure the safety of persons using the water.
Acts 1971, 62nd Leg., p. 448, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.242. RULES AND REGULATIONS. The board may make and
adopt reasonable rules and regulations which are necessary
(1) to preserve the sanitary condition of water
controlled by the district;
(2) to prevent waste or unauthorized use of water; and
(3) to regulate residence, boating, camping, and
recreational and business privileges on any land or water owned or
controlled by the district.
Acts 1971, 62nd Leg., p. 449, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.243. NOTICE OF RULES AND REGULATIONS. (a) Before
a rule or regulation providing for a penalty may be effective, the
district must publish a substantial statement of the rule or
regulation and the penalty in one or more newspapers with general
circulation in the district once a week for two consecutive weeks.
(b) The published statement shall be as condensed as
possible so that the object to be accomplished or the act which is
forbidden by the rule or regulation can be easily understood.
(c) The publication of notice may include notice of any
number of rules and regulations.
(d) The notice shall include a statement that the violation
of a rule or regulation will subject the person who violates it to a
penalty and that a complete copy of the rule or regulation is on
file in the principal office of the district and may be inspected.
(e) A rule or regulation shall be effective five days after
the second publication of the notice, and ignorance of the rule or
regulation does not constitute a defense to prosecution for
enforcement of the penalty.
Acts 1971, 62nd Leg., p. 449, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.244. JUDICIAL NOTICE OF RULES AND REGULATIONS. The
courts shall take judicial notice of rules and regulations made and
adopted under this subchapter. The rules and regulations shall be
considered to be similar in nature to valid penal ordinances of a
city.
Acts 1971, 62nd Leg., p. 449, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.245. CONTRACTS FOR TOLL BRIDGES AND FERRY
SERVICES. (a) The board has the exclusive right to enter into a
contract with any responsible person to construct and operate toll
bridges over water regulated by the district or to provide ferry
service or other means of passenger transportation on water
regulated by the district.
(b) A contract for construction and operation of a toll
bridge may not extend for a period of more than 20 years and a
contract providing for ferry service or other types of
transportation may not extend for a period of more than 10 years.
(c) The contract may provide for forfeiture of the franchise
or rights granted for failure of the licensee or other contracting
party to render adequate and safe public service.
Acts 1971, 62nd Leg., p. 449, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.246. BOND. The board shall require any person with
whom it enters into a contract under Section 55.245 of this code to
execute an adequate bond in an amount not to exceed $1,000, payable
to the district and conditioned as the board requires.
Acts 1971, 62nd Leg., p. 450, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.247. LICENSE, FRANCHISE, AND FEE. (a) Before a
person may keep or operate for hire on district water a ferry or
other type of transportation, the person must obtain a license or
franchise from the board.
(b) The board may fix the fee to be charged for the license
or franchise in an amount not to exceed $250 a year, and shall fix
the fee according to the type of boat used.
Acts 1971, 62nd Leg., p. 450, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.248. CHARGES FOR USE OF TOLL BRIDGE FACILITIES AND
FERRY SERVICE. The board may fix a reasonable amount of
compensation to be charged by the owner or operator of a toll bridge
or a ferry service or other type of transportation service for use
of the facilities.
Acts 1971, 62nd Leg., p. 450, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.249. REGULATING BOATS. (a) The district may
prescribe the type of boats to be used on district water to carry
persons for hire and for recreational purposes and may require the
owner of a boat to submit the boat at a reasonable time to
inspection to determine if the boat is serviceable.
(b) In an effort to protect the lives of the occupants of
boats and persons using district water, the district may prescribe
reasonable requirements for the use and manner in which they are
used.
Acts 1971, 62nd Leg., p. 450, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.250. RESPONSIBILITIES OF BOAT OWNERS AND
OPERATORS. (a) The owner or operator of a boat used as a ferry or
other type of transportation shall keep the boat and boat landings
in good and safe condition.
(b) The district is not liable for any negligent act or
failure of duty on the part of the owner or operator of the boat.
Acts 1971, 62nd Leg., p. 450, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.251. PEACE OFFICERS. The district may employ and
constitute its own peace officers. The peace officers may make
arrests when necessary to prevent or abate the commission of an
offense against the regulations of the district or state laws if the
offense occurs or is about to occur on land or water owned or
controlled by the district. Arrests also may be made any place
where an offense is being committed which involves injury or
detriment to any property owned or controlled by the district.
Acts 1971, 62nd Leg., p. 450, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.253. INJUNCTION. In addition to the penalties
provided by this subchapter, the district may seek an injunction in
a court of competent jurisdiction in the county in which district
water is located to enforce the provisions of this subchapter and
rules and regulations of the district.
Acts 1971, 62nd Leg., p. 451, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER G. DISTRICT SURVEY
§ 55.332. DUTIES OF THE ENGINEER. The engineer shall
make a complete survey of the land included in the district and make
a map and profile of the canals, laterals, reservoirs, dams, and
pumping sites located in the district and extending beyond the
limits of the district.
Acts 1971, 62nd Leg., p. 453, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.333. MAPS. (a) The map shall show the name and
number of each survey and the area in the district in number of
acres.
(b) The map shall show the relation that each canal and
lateral bears to each tract of land through which it passes and the
shapes into which it divides each tract. If the canal or lateral
cuts off any less than 20 acres from any tract, the map shall show
the number of acres in the whole tract and the shape of the small
tract and its relationship to the canal or lateral.
(c) The map shall show how much and what part of each tract
can be irrigated by the canal or lateral.
(d) The profile map shall also show in detail the number of
cubic yards which need to be excavated or moved to make the
reservoir, canal, or lateral, and the specifications for other
works necessary to the construction of improvements proposed for
the district, and the estimated cost of each.
Acts 1971, 62nd Leg., p. 453, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.334. ADOPTING OLD SURVEYS. (a) The engineer may
adopt any surveys made in the past by any person who has applied for
or appropriated any water for irrigation under state law.
(b) The engineer also may adopt any surveys for canals,
laterals, reservoirs, dams, or pumping sites shown on these maps or
plats or may adopt other maps, plats, and surveys which he is
satisfied are correct.
Acts 1971, 62nd Leg., p. 454, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.335. ADDITIONAL IMPROVEMENTS. If additional
improvements of canals, ditches, laterals, reservoirs, or pumping
plants are to be constructed, the report shall contain the detailed
information with reference to these additional improvements.
Acts 1971, 62nd Leg., p. 454, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.336. EXISTING IMPROVEMENTS. If the district
contains any pumping plants, canals, dams, ditches, or reservoirs
which the district is planning to acquire or purchase, the map or
plat and the estimates required in this subchapter shall show these
improvements and the price or probable price at which they may be
acquired or purchased.
Acts 1971, 62nd Leg., p. 454, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.337. SIGNING AND FILING ENGINEER'S REPORT, MAP, AND
PROFILE. After the map, profile, specifications, and estimates
are completed, the engineer shall sign them and file them with the
secretary of the board.
Acts 1971, 62nd Leg., p. 454, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.338. MAPS AND DATA UNNECESSARY UNDER CONTRACT WITH
UNITED STATES. None of the maps and data prescribed by this
subchapter are required under a contract with the United States
except for maps and data needed to make assessments and levies.
Acts 1971, 62nd Leg., p. 454, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER H. WATER ASSESSMENTS
§ 55.351. STATEMENT ESTIMATING WATER REQUIREMENTS AND
PAYMENT OF CHARGE. Each person desiring to receive water at any
time during the year shall furnish the secretary of the board a
written statement of the acreage he intends to irrigate and the
different crops he intends to plant with the acreage of each crop.
At the time the acreage estimate is furnished to the secretary, each
person applying for water shall pay the portion of the water charge
or assessment set by the board for immediate payment. If any person
applying for water from the district does not furnish the statement
of estimated acreage or does not pay the part of the water charge or
assessment set by the board before the date for fixing the
assessment, the district is not obligated to furnish water to that
person during that year.
Acts 1971, 62nd Leg., p. 455, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.352. BOARD'S ESTIMATE OF MAINTENANCE AND OPERATING
EXPENSES. The board, on or as soon as practicable after a date
fixed by standing order of the board, shall estimate the expenses of
maintaining and operating the irrigation system for the next 12
months. The board may change the 12-month period for which it
estimates the expenses of maintaining and operating the irrigation
system by estimating such expenses for a shorter period so as to
adjust to a new fixed date and thereafter estimating the expenses
for 12-month periods following the adjusted fixed date.
Acts 1971, 62nd Leg., p. 455, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1997, 75th Leg., ch. 789, § 2, eff. Sept. 1,
1997.
§ 55.353. METHODS FOR DETERMINING MAINTENANCE AND
OPERATING EXPENSES. The board may make assessments for
maintenance and operating expenses as provided in this subchapter
on the basis of the quantity of water used.
Acts 1971, 62nd Leg., p. 455, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.354. DISTRIBUTION OF ASSESSMENT. (a) Not less
than one-third nor more than two-thirds of the estimated
maintenance and operating expenses shall be paid by assessment
against all land in the district to which the district can furnish
water through its irrigation system or through an extension of its
irrigation system. The assessments shall be levied against all
irrigable land in the district on a per acre basis, whether or not
the land is actually irrigated. The board shall determine from year
to year the proportionate amount of the expenses which will be borne
by water users under this subsection.
(b) The remainder of the estimated expenses shall be paid by
assessments against persons in the district who use or who make
application to use water. The board shall prorate the remainder as
equitably as possible among the applicants for water and may
consider the acreage each applicant will plant, the crop he will
grow, and the amount of water per acre he will use. All persons
using water to plant the same crop will pay the same price per acre
for the water.
Acts 1971, 62nd Leg., p. 455, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.355. NOTICE OF ASSESSMENTS. (a) Public notice of
all assessments shall be given by posting printed notices of the
assessment in at least three public places in the district.
(b) Printed notices shall be mailed to each landowner at the
address which the landowner shall furnish to the board.
(c) The notice shall be posted in a public place and mailed
to the landowner five days before the assessment is due, and notice
of special assessments shall be given within 10 days after the
assessment is levied.
Acts 1971, 62nd Leg., p. 455, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.356. PAYMENT OF ASSESSMENTS. All assessments
shall be paid in installments at the times fixed by the board. If a
crop for which water was furnished by the district is harvested
before the due date of any installment payment, the entire unpaid
assessment becomes due at once and shall be paid within 10 days
after the crop is harvested and before the crop is removed from the
county or counties in which it was grown.
Acts 1971, 62nd Leg., p. 456, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.357. COLLECTION OF ASSESSMENTS BY TAX ASSESSOR AND
COLLECTOR. (a) Under the direction of the board, the assessor and
collector of taxes, or other person designated by the board, shall
collect all assessments for maintenance and operating expenses made
under the provisions of this subchapter.
(b) The assessor and collector of taxes shall give bond in
an amount determined by the board, conditioned upon the faithful
performance of his duties and accounting for all money collected.
(c) The assessor and collector of taxes shall keep an
account of all money collected and shall deposit the money as
collected in the district depository. He shall file with the
secretary of the board a statement of all money collected once each
week. He shall use duplicate receipt books, give a receipt for each
collection made, and retain in the book a copy of each receipt,
which shall be kept as a record of the district.
Acts 1971, 62nd Leg., p. 456, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.358. CONTRACTS WITH PERSON USING WATER. (a) The
board may require each person who desires to use water during the
year to enter into a contract with the district which states the
acreage to be watered, the crops to be planted, the amount to be
paid for the water, and the terms of payment.
(b) The contract is not a waiver of the lien given to the
district under Section 55.359 of this code against the crops of a
person using water for the service furnished to him.
(c) If a person irrigates more land than his contract
specifies, he shall pay for the additional service under the
provisions of this subchapter.
(d) The directors also may require a person using water to
execute a negotiable note or notes for all or part of the amount
owed under the contract.
Acts 1971, 62nd Leg., p. 456, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.359. LIEN AGAINST CROPS. (a) The district shall
have a first lien, superior to all other liens, against all crops
grown on each tract of land in the district to secure the payment of
the assessments, interest, and collection or attorney's fees.
(b) When the district obtains a water supply under contract
with the United States, the board may, by resolution entered in
their minutes and with the consent of the secretary of the interior,
waive the lien in whole or in part.
Acts 1971, 62nd Leg., p. 456, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.360. LIST OF DELINQUENT ASSESSMENTS. Assessments
not paid when due shall become delinquent on the first day of the
month following the date payment is due, and the board shall post in
a public place in the district a list of all persons who are
delinquent in paying their assessments and shall keep posted a
correct list of all delinquent assessments. If persons who owe
assessments have executed notes and contracts as provided in
Section 55.358 of this code, they shall not be placed on the
delinquent list until after the maturity of the notes and
contracts.
Acts 1971, 62nd Leg., p. 457, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1997, 75th Leg., ch. 789, § 2, eff. Sept. 1,
1997.
§ 55.361. WATER SERVICE DISCONTINUED. If a landowner
shall fail or refuse to pay any water assessment when due, his water
supply shall be cut off, and no water shall be furnished to the land
until all back assessments are fully paid. The discontinuance of
water service is binding on all persons who own or acquire any
interest in land for which assessments are due.
Acts 1971, 62nd Leg., p. 457, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.362. SUITS FOR DELINQUENT ASSESSMENTS. Suits for
delinquent water assessments may be brought either in the county in
which the irrigation district is located or in the county in which
the defendant resides. All landowners are personally liable for
all assessments provided in this subchapter.
Acts 1971, 62nd Leg., p. 457, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.363. INTEREST AND COLLECTION FEES. (a) All
assessments shall bear interest from the date payment is due at the
rate of 15 percent a year. Assessments not paid by the first day of
the month following the date payment is due shall become
delinquent, and a penalty of up to 15 percent of the amount of the
past-due assessment shall be added to the amount due.
(b) If suit is filed to foreclose a lien on crops or if a
delinquent assessment is collected by an attorney before or after
suit, an additional amount of 15 percent on the unpaid assessment,
penalty, and interest shall be added as collection or attorney's
fees.
Acts 1971, 62nd Leg., p. 457, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1997, 75th Leg., ch. 789, § 2, eff. Sept. 1,
1997.
§ 55.364. RIGHTS OF THE UNITED STATES. If the board
enters into a contract with the United States, the remedies in this
subchapter available to the district also shall apply to enforce
payment of charges due to the United States. The Reclamation
Extension Act, approved August 13, 1914, and as amended, and all
other federal reclamation laws apply. The directors shall
distribute and apportion all water acquired by the district under a
contract with the United States in accordance with acts of
Congress, rules and regulations of the secretary of the interior,
and provisions of the contract.
Acts 1971, 62nd Leg., p. 457, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.365. SURPLUS ASSESSMENTS. If assessments made
under this subchapter are more than sufficient to pay the necessary
expenses of the district, the balance shall be carried over to the
next year.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.366. INSUFFICIENT ASSESSMENTS. If the assessments
made under this subchapter are not sufficient to pay the necessary
expenses of the district, the unpaid balance shall be assessed, pro
rata, in accordance with the assessments made for the current year.
The additional assessments shall be paid under the same conditions
and penalties within 30 days from the date of assessment.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.367. LAND NOT SUBJECT TO ASSESSMENTS. If a
district fails to furnish sufficient water to irrigate land in the
district for two years after its organization, the nonirrigated
land is relieved of all assessments and charges except taxes until
the district constructs the necessary canals and furnishes the
necessary water to irrigate the land.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.368. LOANS FOR MAINTENANCE AND OPERATING
EXPENSES. The board may borrow money to pay maintenance and
operating expenses at an interest rate of not more than 10 percent a
year and may pledge as security any of its notes or contracts with
water users or accounts against them.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.369. FIXED CHARGES FOR MAINTENANCE EXPENSES. If
maintenance charges are based on the quantity of water used, a fixed
charge may be made on all land or water connections entitled to
receive and use water. An additional charge may be made, or a
graduated scale adopted, for the use of more water than that covered
by the minimum charge. The board may install proper measuring
devices.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.370. CHARGE TO CITIES AND TOWNS. If a district
includes a city or town or contracts with a city or town to supply
water to it, the charge for the use of water and the time and manner
of payment shall be determined by a standing order of the board.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.371. AUTHORITY TO DETERMINE RULES AND
REGULATIONS. The directors may adopt, alter, and rescind rules,
regulations, and standing and temporary orders which do not
conflict with the provisions of this chapter and which govern:
(1) methods, terms and conditions of water service;
(2) applications for water;
(3) assessments for maintenance and operation;
(4) payment and the enforcement of payment of the
assessments;
(5) furnishing of water to persons who did not apply
for it before the date of assessment; and
(6) furnishing of water to persons who wish to take
water for irrigation in excess of their original applications or
for use on land not covered by their original applications.
Acts 1971, 62nd Leg., p. 458, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER I. SUPPLYING WATER TO MILITARY CAMPS
§ 55.401. AUTHORITY OF DISTRICTS WITH MILITARY BASE TO
ISSUE BONDS. Any district operating under Article XVI, Section 59,
of the Texas Constitution, which contains all or part of a United
States military camp or base may issue negotiable revenue bonds to
provide funds for acquiring or constructing filtration and pumping
equipment, pipelines, and other facilities for supplying water to
military camps or bases.
Acts 1971, 62nd Leg., p. 459, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.402. BOND ELECTION. The district may issue
negotiable revenue bonds with a total par value of not more than
$100,000 without the necessity of holding an election, but it may
not issue bonds with a total par value of more than $100,000 unless
the bond issue is approved at an election held under the law
governing bond elections.
Acts 1971, 62nd Leg., p. 459, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.403. INTEREST RATE AND MATURITY DATE. Bonds issued
under this subchapter shall mature not more than five years after
the date of issuance.
Acts 1971, 62nd Leg., p. 459, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.404. SECURITY FOR BONDS. (a) Bonds issued under
this subchapter may be secured by all or part of the net revenue to
be received from a contract for the sale of water by the district to
the United States for use at military camps or bases and from all
renewals, extensions, or substitutions of the contract.
(b) In addition, the bonds may be secured by a deed of trust
lien on the equipment, facilities, and property acquired or
constructed with the funds from the sale of the bonds.
Acts 1971, 62nd Leg., p. 459, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.405. APPROVAL; REGISTRATION. After bonds are
authorized under this subchapter but before they are issued, the
bonds, the resolution of the board authorizing the bonds to be
issued, and other certificates and records relating to the issuance
of the bonds shall be submitted to the Attorney General of Texas for
his examination. The attorney general shall approve the bonds if
they are issued in accordance with the provisions of this
subchapter and the constitution, and the bonds shall be registered
with the comptroller.
Acts 1971, 62nd Leg., p. 459, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.406. VALIDITY OF BONDS. After bonds are approved
by the attorney general and registered with the comptroller, they
shall be held valid and binding in any action, suit, or proceeding
in which their validity is questioned. In any action brought to
enforce collection of the bonds, the certificate of approval by the
attorney general, or a certified copy of the certificate, shall be
admitted as evidence of the validity of the bonds. The only defense
which can be offered against the validity of the bonds is forgery or
fraud.
Acts 1971, 62nd Leg., p. 459, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.407. PAYMENT OF BONDS. The holder of bonds issued
under the provisions of this subchapter is not entitled to payment
of the bonds from funds derived from taxes levied on property in the
district.
Acts 1971, 62nd Leg., p. 460, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.408. ADVERTISING FOR BIDS. A contract for
constructing or acquiring filtration and pumping equipment,
pipelines, or other facilities to supply water to military camps or
bases may be awarded only after advertising for bids for a period of
time to be determined by the board. The advertisement for bids
shall be published in a newspaper of general circulation in the
district at least one time not less than 10 days before awarding the
contract.
Acts 1971, 62nd Leg., p. 460, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER J. GENERAL FISCAL PROVISIONS
§ 55.421. CONSTRUCTION AND MAINTENANCE FUND. The
expenses, debts, and obligations incurred in creating,
establishing, and maintaining the district shall be paid from the
construction and maintenance fund. The construction and
maintenance fund shall consist of money received by the district
from the sale of bonds or from other sources provided by this
chapter.
Acts 1971, 62nd Leg., p. 460, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.422. MAINTENANCE AND OPERATING FUND. (a) The
district shall create a maintenance and operating fund which shall
consist of any money collected by assessment or other methods for
the maintenance and operation of property owned by the district and
for temporary rent owed to the United States.
(b) The district shall pay all operating expenses and any
balance due on construction work, extensions, and improvements from
the maintenance and operating fund with warrants executed in the
manner provided in this chapter.
(c) If the district intends to enter into a contract with
the United States for the construction of the irrigation system,
the expenses, debts, and obligations may be paid from the
maintenance and operating fund.
Acts 1971, 62nd Leg., p. 460, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER K. BORROWING MONEY
§ 55.452. ADOPTING METHOD FOR PAYMENT OF
DEBTS. (a) When a district incurs a debt or obligation, it shall
provide for payment of the debt or obligation by levying,
assessing, and collecting either a general ad valorem tax or a tax
on a benefit basis.
(b) Any district which has previously issued bonds or
obligations payable on either basis may adopt a different basis of
taxation in the creation of an additional debt or obligation.
(c) Each debt or obligation shall be paid in the manner
provided at the time it was incurred.
Acts 1971, 62nd Leg., p. 462, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.454. INCURRING DEBT WITHOUT VOTER APPROVAL. None
of the provisions of this subchapter shall prevent the board from
creating any debt or obligation without voter approval if the debt
or obligation is created to defray ordinary maintenance and
operating expenses or if the debt or obligation is to be retired
from current revenues.
Acts 1971, 62nd Leg., p. 463, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.455. TAXES ON UNIFORM BASIS. (a) Any district
which has the principal function of furnishing water for irrigation
in the district may provide for the payment of principal and
interest on any debts or obligations by levying taxes on land in the
district on an equal or uniform basis with an equal charge per acre
on each acre of land to be irrigated.
(b) The tax collector shall prepare a special tax roll
showing each tract of land in the district, the number of acres in
each tract, the total assessment of benefits on each tract, and the
amount to be paid each year on each tract, and the roll shall be
prepared or amended annually.
(c) The tax roll shall be examined, corrected, and approved
by the board.
(d) The tax roll shall be prepared at the time and in the
manner provided in the Property Tax Code. The valuation fixed on
property shall be the assessment charge against each acre of land at
the time the debt or obligation is incurred.
Acts 1971, 62nd Leg., p. 463, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, § 4(r), eff.
Jan. 1, 1982.
§ 55.456. OBTAINING LOAN WHEN BONDS CANNOT BE SOLD. If
the district has any bonds which were issued under the provisions of
this code but which cannot, in the opinion of the board, be sold on
terms which are advantageous to the district, the district may
obtain a loan in an amount of not more than the amount of the unsold
bonds. The money may be used for any of the purposes for which the
bonds were issued, and the bonds may be pledged as a guarantee or
assurance that the loan will be paid. The amount of bonds pledged
may not exceed the amount of the loan by more than 15 percent.
Acts 1971, 62nd Leg., p. 463, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.457. USING REVENUE FROM SALE OF WATER, POWER, AND
OTHER SERVICES TO PAY DEBTS. (a) The district may fix charges for
the use and sale of water, power, and other services to pay debts
and to accomplish other lawful purposes of the district.
(b) The district may borrow money for any purpose in the
manner provided in this subchapter and pledge for payment of these
debts, income and revenue from the sale of water, power, and other
services sufficient in amount to pay principal, interest, and other
charges which may accrue.
Acts 1971, 62nd Leg., p. 463, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.458. LOAN FUND. (a) The board may pay or contract
to pay on any bonds which it has sold or pledged, in addition to
taxes, other funds derived from:
(1) water charges for use of water in the district;
(2) sale or supply of water to any city, town,
municipal corporation, district, or land or user of water outside
the boundaries of the district;
(3) sale of water to any commercial or industrial
enterprise;
(4) sale of hydroelectric power; or
(5) any or all of these sources of revenue.
(b) The board shall fix the amount to be derived from these
sources for this purpose and shall enforce and collect it in the
same manner provided to collect charges or assessments for
maintenance and operation. All liens and remedies provided by law
to secure and enforce the collection of charges and assessments for
maintenance and operation of the district are applicable to
securing and enforcing the collection of these funds.
(c) Money collected under this section shall be kept in a
separate fund called the "loan fund" and shall be used only for the
purpose of paying the principal and interest on the bonds for as
long as the bonds remain unpaid.
(d) The charge created by this section is an additional and
distinct charge and a source of income of the district over and
above its income for maintenance and operation and other purposes.
(e) After the loan fund is created and pledged, the action
of the board in fixing the amount of the charge and in fixing the
total annual charges for maintenance and operation may not be
reviewed by the commission regardless of any law to the contrary.
Acts 1971, 62nd Leg., p. 464, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 982, ch. 367, § 26, eff. June
10, 1981.
SUBCHAPTER L. ISSUANCE OF BONDS
§ 55.491. BOND ELECTION. After the district is created,
the members of the board are qualified, the maps, profiles,
specifications, and estimate are filed, and after the assessor and
collector has made and returned the assessment roll, the board may
order a bond election to be held in the district at the earliest
possible legal time.
Acts 1971, 62nd Leg., p. 464, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.497. NECESSARY VOTE. (a) In a district operating
under the authority of Article III, Section 52, of the Texas
Constitution, a two-thirds vote of persons voting in the election
is required to adopt a proposition to issue bonds or to enter into a
contract with the United States.
(b) In a district operating under the authority of Article
XVI, Section 59, of the Texas Constitution, a majority vote of
persons voting in the election is required to adopt a proposition to
issue bonds or to enter into a contract with the United States.
Acts 1971, 62nd Leg., p. 465, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.498. ORDERING ISSUANCE OF BONDS. After the vote is
canvassed and a favorable result is declared, the board shall make
and enter an order authorizing the issuance of bonds or the
execution of a contract with the United States.
Acts 1971, 62nd Leg., p. 466, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.499. AMOUNT OF BONDS. The bonds shall be
sufficient in amount to pay for the proposed improvements together
with necessary incidental expenses connected with the
improvements, but the amount shall not be more than the amount
specified in the order and notice of election. The total amount of
the bonds shall include:
(1) the amount of the engineer's estimate;
(2) incidental expenses;
(3) organization expenses; and
(4) cost of additional work caused by any change or
modification made by the directors.
Acts 1971, 62nd Leg., p. 466, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.500. LIMITATION OF INDEBTEDNESS. In districts
organized under Article III, Section 52, of the Texas Constitution,
the amount of bonds or the amount of the contract indebtedness with
the United States may not be more than one-fourth of the actual
assessed value of the real property in the district as shown by an
assessment made for this purpose or by the last annual assessment
made under this chapter. This limitation does not apply to
districts operating under the authority of Article XVI, Section 59,
of the Texas Constitution.
Acts 1971, 62nd Leg., p. 466, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.501. SPECIAL INTEREST PROCEDURE. (a) The maximum
amount of bonds issued by a district may include a sufficient sum to
pay the first one, two, or three years' interest to accrue on the
bonds, and no taxes shall be levied against property located in the
district for this period except for a sufficient tax to pay notes
provided for in Section 55.038 of this code.
(b) The board may designate the period of interest to begin
either with the date of the bonds fixed in the order which
authorizes their issuance or from the date or dates of the actual
sale, issuance, and delivery of the bonds or any installments.
(c) Any money left in the interest fund at the end of the
designated period still may be used to pay interest on the bonds.
Acts 1971, 62nd Leg., p. 466, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.502. FORMAL REQUIREMENTS OF BONDS. (a) The board
shall issue bonds in the name of the district, and the president
shall sign the bonds, the secretary shall attest to them, and the
district's seal shall be impressed on them.
(b) The bonds shall be issued in denominations of not less
than $100 nor more than $1,000 each.
(c) The bonds shall be payable annually or semiannually and
shall mature not more than 40 years after they are issued.
(d) The bonds may be issued to mature in serial form at any
date which does not come later than the date specified in the notice
of election and may bear any rate of interest which is not more than
the rate of interest specified in the notice.
(e) The terms of the bonds shall include the time, place,
manner, and conditions of payment and the interest rate which are
ordered by the board.
Acts 1971, 62nd Leg., p. 466, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.504. SUIT TO DETERMINE VALIDITY OF BONDS OR
CONTRACT. (a) Before any bonds are offered for sale, the district
shall bring suit in any district court within the judicial district
in which the district is located or in any district court in Travis
County to determine the validity of the bonds. On request of the
secretary of interior, any district entering into a contract with
the United States shall bring suit in one of the same courts to
determine the validity of the contract.
(b) The action shall be in the nature of a proceeding in rem,
and jurisdiction over all interested parties may be obtained by
publishing notice once a week for at least two consecutive weeks in
a newspaper with general circulation in the county in which the
district is located. If there is no newspaper published in the
county, the notice shall be published in the county nearest to the
district in which a newspaper is published.
Acts 1971, 62nd Leg., p. 467, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.505. NOTICE TO ATTORNEY GENERAL. (a) Notice of a
validation suit shall be served on the attorney general in the
manner provided for serving a notice in civil suits.
(b) The attorney general may waive service if he is
furnished a full transcript of the proceedings held in the
formation of the district and held in connection with the issuance
of the bonds or the authorization of the contract with the United
States and is furnished a copy of the contract.
Acts 1971, 62nd Leg., p. 467, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.507. RIGHT OF PERSONS TO INTERVENE AND PARTICIPATE
IN SUIT. At the trial of a validation suit the court may permit
persons having an interest in the issues to be determined to
intervene and participate in the trial of the issues.
Acts 1971, 62nd Leg., p. 468, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.509. JUDGMENT RENDERED. (a) If the judgment of
the court in a validation suit is against the district, the district
may accept the judgment and may correct the error pointed out in the
proceedings in the manner directed by the court.
(b) After the corrections are made, the judgment of the
court shall be rendered showing that the corrections have been made
and that the bonds or the contract is a binding obligation on the
district.
(c) The final judgment, when it is entered, is res judicata
in any case arising in connection with the bonds or their interest
or in connection with the collection of money required under the
contract with the United States and in all matters relating to the
validity of the organization of the district, the district's bonds,
or the contract with the United States.
Acts 1971, 62nd Leg., p. 468, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.510. COURT'S DECREE. (a) After the district
court enters a final judgment in a validation suit, the clerk of the
court shall make a certified copy of the decree which shall be a
part of the orders and decree connected with the election.
(b) The court's decree shall be filed with the comptroller
and he shall record the decree in a book kept for that purpose.
(c) The certified copy of the decree or a certified copy of
the record made by the comptroller shall be received as evidence in
any litigation which may affect the validity of the bonds or
contract with the United States and shall be conclusive evidence of
the validity.
Acts 1971, 62nd Leg., p. 468, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.513. COUNTY CLERK'S FEES. The county clerk is
entitled to receive:
(1) for registering the bonds, 10 cents for each bond
which is registered;
(2) for entering the payment of a bond, 10 cents; and
(3) for recording district instruments required to be
recorded and for which no fee is provided, the same fees provided by
law for recording deeds.
Acts 1971, 62nd Leg., p. 469, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.514. SALE OF BONDS. (a) After the bonds are
issued and registered by the comptroller, the board shall offer the
bonds for sale and shall sell them on the best terms and for the best
possible price.
(b) After all the bonds are sold, the board shall pay to the
district depository all money received from the sale.
(c) The board may exchange the bonds for property to be
acquired by purchase under contract or in payment of the contract
price for work to be done for the use and benefit of the district.
Acts 1971, 62nd Leg., p. 469, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.515. EMERGENCY LOANS AND INTERIM BONDS. (a) The
district may create emergency loans and issue interim bonds for the
purposes, in the manner, and under the restrictions and limitations
provided in Sections 51.444-51.449 of this code.
(b) It is the purpose of this section to confer on the
district the same power and authority with respect to emergency
loans and issuance of interim bonds as that conferred by law on
water control and improvement districts.
Acts 1971, 62nd Leg., p. 469, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.516. TAX LEVY. (a) After bonds have been voted,
the board shall levy a tax on all property in the district
sufficient to pay the interest on the bonds together with an
additional amount to be placed in the sinking fund to discharge and
redeem the bonds at maturity, and the board shall annually levy or
have assessed and collected taxes on all property in the district
sufficient to pay for the expenses for assessing and collecting the
taxes.
(b) The board may issue the bonds in serial form or to be
paid in installments.
(c) The tax levy shall be sufficient to pay the interest on
the bonds, to meet the proportional amount of the principal of the
next maturing series of the bonds, and to pay expenses of assessing
and collecting the taxes for the year.
(d) If a contract is entered into with the United States,
the board shall levy a tax sufficient to meet all installments as
they are due and to pay interest. The directors shall make an
annual levy until the contracts and obligations are discharged.
Acts 1971, 62nd Leg., p. 469, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.517. ADJUSTMENT OF TAX LEVY. The tax which is
levied in connection with the original bond issue shall remain in
force for that purpose until a new levy is made. The board may, from
time to time, increase or diminish the tax for the purpose of
adjusting the tax to the taxable values of taxable property in the
district and the amount to be collected, and the increase or
decrease in the tax shall be sufficient to provide enough money in
the interest and sinking fund to make annual payments on
outstanding bonds.
Acts 1971, 62nd Leg., p. 470, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.518. INTEREST AND SINKING FUND. (a) The district
shall have an interest and sinking fund which shall consist of all
taxes collected under the provisions of this chapter for this fund.
(b) Money in the interest and sinking fund shall be paid out
only:
(1) to satisfy and discharge interest on the bonds;
(2) to pay the bonds;
(3) to defray the expense of assessing and collecting
the tax; and
(4) to pay principal and interest due to the United
States under a contract with the district under which bonds have not
been deposited with the United States.
(c) The board shall order money from the fund to be paid out
by warrants drawn as provided in this chapter. When funds are paid
out, the depository shall receive and cancel the interest coupon or
bond paid, and the interest coupon or bond shall be delivered to the
board to be cancelled and destroyed.
Acts 1971, 62nd Leg., p. 470, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.519. INVESTMENT OF SINKING FUNDS. The board may
invest sinking funds of the district in bonds of the United States,
the State of Texas, any county, any incorporated city or town, any
independent school district, or any school district authorized to
issue bonds, or they may invest the funds in irrigation or water
improvement bonds. The board may not purchase any bonds which under
their terms would mature subsequent to the maturity date of bonds
for which the sinking fund was created.
Acts 1971, 62nd Leg., p. 470, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.520. REFUNDING BONDS. (a) The board of a district
which has issued bonds under the provisions of this chapter, by
resolution, may issue refunding bonds to replace the original
bonds. The refunding bonds may be issued in any amount, in any
denomination, and for any period of maturity and may bear any rate
of interest provided in the board's resolution.
(b) The refunding bonds shall be issued subject to the
limitations provided in this subchapter for the issuance of bonds.
(c) The refunding bonds may be exchanged for the original
bonds at the original bonds' face value or at a discount, or the
refunding bonds may be sold and the net proceeds applied to the
purchase of the original bonds at face value or at a discount.
Acts 1971, 62nd Leg., p. 470, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.521. REGISTERING REFUNDING BONDS. (a) The
comptroller may not register any refunding bonds until the original
bonds for which the refunding bonds are issued are presented to him
for cancellation or until a contract for the purchase of a
corresponding number of the original bonds has been entered into
and filed with the comptroller.
(b) After the refunding bonds are registered, the
comptroller shall keep them in his possession until the original
bonds are surrendered to him and cancelled by him, at which time he
shall deliver the new bonds to the proper party or parties.
(c) The original bonds may be presented for payment in
installments and an equal amount of refunding bonds registered and
delivered as provided in this subchapter.
Acts 1971, 62nd Leg., p. 471, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.522. ISSUING REFUNDING BONDS FOR THE SAME AMOUNT
AND WITH THE SAME MATURITY DATE AS THE ORIGINAL
BONDS. (a) Refunding bonds for the same amount and with the same
maturity date as the bonds which they are to replace may be
authorized by resolution of the board and issued without an
election to approve them.
(b) These refunding bonds shall be registered by the
comptroller in the manner provided in Section 55.521 of this code
after a copy of the resolution providing for the issuance of the
refunding bonds and the cancellation of the original bonds is filed
with the comptroller.
(c) After the original bonds are cancelled and the refunding
bonds are registered by the comptroller, the refunding bonds are
valid and binding obligations of the district without further
proceedings and have the same force, validity, and effect as the
original bonds which they have replaced.
Acts 1971, 62nd Leg., p. 471, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.523. ISSUING REFUNDING BONDS WHICH PLACE A GREATER
BURDEN ON THE DISTRICT. If the district issues refunding bonds for
a greater amount, for a greater rate of interest, or for a longer
period of maturity than the bonds which they are to replace or if
the refunding bonds in any other respect create a greater burden on
the district, the district shall submit the question of whether or
not it should issue the refunding bonds to the voters of the
district.
Acts 1971, 62nd Leg., p. 471, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.524. LAW GOVERNING REFUNDING BONDS. (a) The
provisions of this subchapter governing the election and the
issuance, approval, validation, registration, and sale of bonds
shall apply to refunding bonds.
(b) Refunding bonds shall be registered and delivered in the
manner provided in Section 55.521 of this code.
Acts 1971, 62nd Leg., p. 471, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.525. LIMITING DISTRICT'S POWER TO INCUR
DEBT. (a) The board of any district operating under the
provisions of Article XVI, Section 59, of the Texas Constitution,
may limit the power of the district to incur debt and issue bonds in
the manner provided by this subchapter.
(b) The board may adopt a resolution declaring that for a
period of not more than 10 years the district may not issue bonds in
excess of 25 percent of the assessed value of taxable property of
the district according to the last assessment for district
purposes.
Acts 1971, 62nd Leg., p. 472, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.526. NOTICE OF LIMITATION OF DEBT. Once a week for
two consecutive weeks in a newspaper published in the district, the
board shall publish notice of the adoption of a resolution to limit
the district's power to incur debt. The notice shall state that the
resolution will take effect unless a petition against the proposed
limitation signed by 10 percent of the qualified property taxpaying
electors of the district is presented within 30 days after the first
publication of notice.
Acts 1971, 62nd Leg., p. 472, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.527. LIMITATION ELECTION. (a) If a petition is
filed under Section 55.526 of this code, the limitation of the power
to incur debt will not take effect unless it is approved at a
general or special election held in the district. The election will
be held in the manner provided for holding other general and special
elections in the district.
(b) The ballots for the election shall be printed to provide
for voting for or against the following proposition: "Limiting
during the term of ______ years, the maximum debt of the district to
25 percent of the assessed value of the real property."
Acts 1971, 62nd Leg., p. 472, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.528. OPERATING UNDER A LIMITATION ON POWER TO INCUR
DEBT. (a) If no petition is presented under Section 55.526 of
this code or if the limitation on the power to incur debt is
approved at the election, the district, during the limitation
period, may not issue bonds under any statute or the constitution in
excess of the limited amount except to complete construction work
for which bonds may be issued within the limitation.
(b) The board shall issue bonds in excess of the limitation
to complete these works only after the commission has approved the
plans and specifications of the original and uncompleted works
together with the estimates of their cost.
Acts 1971, 62nd Leg., p. 472, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 982, ch. 367, § 27, eff. June
10, 1981.
§ 55.529. ISSUING BONDS IN EXCESS OF DEBT
LIMITATION. (a) If the plans, specifications, and estimates
under Section 55.528 of this code are approved by the commission,
the district shall publish notice once a week for three weeks that
it intends to issue bonds in excess of the debt limitation to
complete the works. The notice shall include the amount of the
proposed bond issue and the time when a hearing will be held.
(b) The hearing to issue the additional bonds shall be held
not less than 30 days from the date of the first publication of
notice, and any property taxpayer, bondholder or other creditor, or
interested person may appear and be heard.
(c) If the determination after the hearing is to issue the
bonds in the amount stated in the notice, the question of whether or
not the bonds should be issued shall be submitted to the voters of
the district at an election held in the manner provided by law.
Acts 1971, 62nd Leg., p. 472, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1981, 67th Leg., p. 982, ch. 367, § 28, eff. June
10, 1981.
§ 55.530. ADDITIONAL PROJECTS FOR THE
DISTRICT. (a) After district bonds have been authorized or
issued or after a contract with the United States has been
authorized or executed, if the board thinks it is necessary, it may
authorize:
(1) modifications in the district and its
improvements;
(2) purchase or construction of additional
improvements and issuance of additional bonds based on the
engineer's report; or
(3) a supplemental contract with the United States.
(b) Before any of the projects under Subsection (a) of this
section are undertaken, the board shall enter its findings in the
minutes and shall give notice that an election will be held to
approve the issuance of bonds or the execution of a contract with
the United States. The election shall be held within the time and
the returns made and the result determined in the same manner
provided for the original bond election.
Acts 1971, 62nd Leg., p. 473, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.531. ISSUANCE OF ADDITIONAL BONDS. (a) If an
election held under Section 55.530 of this code favors the issuance
of additional bonds or execution of a contract with the United
States, the board may issue the bonds or negotiate and execute a
supplemental contract with the United States in the manner provided
in this chapter.
(b) If a contract is made with the United States under
Section 55.185 of this code and bonds are not deposited with the
United States, the district is not required to issue bonds, and if
the district is required to raise funds in addition to the amount of
the contract, the district shall issue the bonds only for the
additional amount which is needed.
Acts 1971, 62nd Leg., p. 473, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.532. FUNDS TO REPAIR DAMAGED
IMPROVEMENTS. (a) If improvements of the district are damaged,
the district may issue bonds or notes to secure funds to repair the
damage.
(b) The district's notes may not be for a term of more than
20 years. The board may issue the notes in serial form to mature in
installments.
(c) Before the notes are issued, the board shall order an
election to be held to approve the issuance of the notes and shall
give notice of the election in the manner provided for bond
elections. The notice shall include the purpose for which the notes
are being issued, the rate of interest, the term of the notes, and
the time and place of the election.
(d) The ballots for the election shall be printed to provide
for voting for or against the following proposition: "Issuance of
notes."
(e) The election shall be held and returns made and
canvassed in the manner provided for bond elections.
(f) If two-thirds of the persons voting in the election vote
in favor of issuing the bonds, the board may issue and sell the
bonds for the benefit of the district.
(g) When the notes are issued or sold, the board shall levy a
tax to pay interest on the bonds and to create a sinking fund
sufficient to pay the interest and the notes before they mature.
Acts 1971, 62nd Leg., p. 473, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.533. PREFERRED LIEN IN FAVOR OF THE UNITED
STATES. A lien for the payments due the United States under a
contract between the district and the United States under which
bonds have not been deposited with the United States shall be a
preferred lien to that of any issue of bonds or any series of any
issue of bonds subsequent to the date of the contract.
Acts 1971, 62nd Leg., p. 474, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.534. DEFAULT IN PAYING PRINCIPAL AND INTEREST ON
BONDS BY A DISTRICT OBTAINING ITS WATER SUPPLY FROM THE UNITED
STATES. (a) If a district which obtains its water supply from the
United States defaults in the payment of principal and interest on
bonds issued by the district, the board, if it considers it
advisable, may authorize the issuance of bonds to fund or refund the
debt including bonds, debt and accrued interest on debt, and
interest on notes lawfully issued to pay for construction or
acquisition of irrigation and drainage works.
(b) Before any bonds are issued under this section, the
district shall submit to the voters of the district the question of
whether or not the bonds should be issued.
(c) The board may issue the bonds either in serial form or in
a form which provides for annual payment of principal and interest
in a single amount, represented by coupons, and the board may
prescribe the form and contents of the bonds and coupons.
Amortization of both principal and interest on the bonds shall be
accomplished in not more than 40 years from the date the bonds are
issued.
(d) If bonds are issued in serial form, they shall be
numbered consecutively beginning with one and continuing in
numerical order. The bonds shall mature serially in annual amounts
which are approximately equal. The board may set the bonds to not
less than 5 years nor more than 40 years.
(e) If the bonds provide for the annual payment of principal
and interest in a single amount which is represented by coupons, the
coupons for the first five years may be for any amount which in the
judgment of the board is economically sound and within the ability
of the district to pay. For the remainder of the term of the bonds,
the coupons shall be paid annually in equal amounts which are
sufficient to liquidate the remainder of the bonds within 40 years
from the date the bonds were issued.
(f) Any funding or refunding bonds issued under this section
shall be negotiable.
(g) The district is not bound by the provisions of Sections
55.504-55.505 of this code, and the exercise of the provisions of
those sections is left to the discretion of the board. If a suit is
instituted, the suit is subject to the provisions and governed by
the statutes relating to these suits.
(h) Except as otherwise provided in this section, the laws
governing the issuance of bonds and the form and contents of bonds
shall apply to bonds issued under this section.
Acts 1971, 62nd Leg., p. 474, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER M. AD VALOREM TAXATION
§ 55.581. ASSESSMENT AND COLLECTION OF DISTRICT
TAXES. The assessor and collector shall assess and collect taxes
for the district.
Acts 1971, 62nd Leg., p. 475, ch. 58, § 1, eff. Aug. 30, 1971.
Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, § 4(r), eff.
Jan. 1, 1982.
§ 55.600. TAX OFFICE. For the convenience of district
taxpayers, the assessor and collector shall maintain an office with
the board. The office shall serve as a place where taxes may be
paid.
Acts 1971, 62nd Leg., p. 478, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.601. ADDITIONAL DUTIES OF THE ASSESSOR AND
COLLECTOR. The board may prescribe other duties for the assessor
and collector which duties shall be performed in the manner
prescribed in the board's rules and regulations.
Acts 1971, 62nd Leg., p. 479, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.604. ASSESSMENT LIENS. Assessments made by the
board for maintenance and operation of the district are liens
against the land on which the assessments were made and remain liens
on the land until the assessments are paid. No law which provides
for a period of limitation against actions for debt shall apply
under this section, and these debts cannot be barred by limitation.
Acts 1971, 62nd Leg., p. 479, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.620. GENERAL POWERS AND REGULATIONS. (a) No
district may become a party to, purchase, hold under, assign, seek
to enforce, or receive benefits from a contract between a landowner
and a private canal company which was entered into before the
district was created. Rights and privileges owned or possessed by
the district are those arising or inherent in the district under
this chapter.
(b) The district may not:
(1) acquire or enforce any lien against the land which
was fixed by a contract entered into before the district was
created;
(2) prosecute or have prosecuted any suit to recover
water taxes or assessments which accrued before the district was
created;
(3) foreclose any lien on land for unpaid water taxes
or assessments which accrued before the district was created;
(4) avail itself of any rights under a private
contract relating to the land which contract was entered into
before the district was created; and
(5) be held liable for the private contract.
(c) The two-year statute of limitation and the provisions of
this section may be pleaded as a bar to an action to recover water
rents or other assessments which accrued on land in the district
before the district was created.
Acts 1971, 62nd Leg., p. 482, ch. 58, § 1, eff. Aug. 30, 1971.
SUBCHAPTER N. TAXATION ON A BENEFIT BASIS
§ 55.651. ELECTION TO DETERMINE METHOD OF
TAXATION. (a) A district which operates under the provisions of
Article XVI, Section 59, of the Texas Constitution, may, at the time
the district is created or before bonds are issued, submit to the
voters of the district the question of whether the district will
levy, assess, and collect taxes on the ad valorem basis or on the
benefit basis.
(b) The question shall be presented to the voters at the
time and in the manner provided by the board.
(c) The ballots for the election shall be printed to provide
for voting for or against the following proposition: "The levy of
taxes on the benefit basis instead of the ad valorem basis."
(d) The election shall be governed by the provisions of this
chapter.
(e) If a majority of the persons voting in the election
favor the proposition, the district shall levy, assess, and collect
its taxes on the benefit basis.
Acts 1971, 62nd Leg., p. 484, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.652. ASSESSMENT RECORD. When necessary, the board
shall apportion and assess the benefits conferred on property in
the district and shall make a record showing the amount and value of
benefits to accrue on property in the district and the amount of
taxes to be levied and collected on the property. No taxes assessed
or adjudged against the property may be more than the benefit which
accrues to the property from the organization, operation, and
maintenance of the district and its improvements.
Acts 1971, 62nd Leg., p. 484, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.653. NOTICE OF TAXES. After the board makes the
record specified in Section 55.652 of this code, the board shall
mail to each property owner whose name appears in the record, notice
of the amount of taxes levied on his property and the date and place
at which the property owner may appear and contest the correctness
and equitableness of the tax.
Acts 1971, 62nd Leg., p. 484, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.654. DECISION AFTER HEARING. After the hearing,
the board shall determine whether or not the tax is equitable and
shall sustain, reduce, or increase the tax to an amount which in the
board's judgment is equitable.
Acts 1971, 62nd Leg., p. 484, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.655. APPLICABLE LAW. The provisions of this
chapter relating to levy, assessment, and collection of taxes which
are not inconsistent with the provisions of this subchapter shall
apply.
Acts 1971, 62nd Leg., p. 484, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.656. DISTRICTS ADOPTING BENEFIT PLAN OF
TAXATION. In any district other than a district operating under a
contract with the United States which is operating under the
provisions of Article XVI, Section 59, of the Texas Constitution,
and which adopted the assessment of benefit plan of taxation, tax
values shall be fixed, levied, assessed, equalized, and collected
in the manner provided in Sections 55.657-55.669 of this code.
Acts 1971, 62nd Leg., p. 484, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.657. COMMISSIONERS OF APPRAISEMENT. As soon as
practicable after the approval of the engineer's report and the
adoption of the plan for improvements to be constructed, the board
shall appoint three disinterested commissioners of appraisement.
The commissioners shall be freeholders but not owners of land
within the district which they represent.
Acts 1971, 62nd Leg., p. 485, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.658. COMPENSATION OF COMMISSIONERS. On approval
by the board, each commissioner is entitled to receive $10 a day for
each day he actually serves, plus all necessary expenses.
Acts 1971, 62nd Leg., p. 485, ch. 58, § 1, eff. Aug. 30, 1971.
§ 55.659. NOTICE OF APPOINTMENT AND
