WATER CODE
CHAPTER 58. IRRIGATION DISTRICTS
SUBCHAPTER A. GENERAL PROVISIONS
§ 58.001. DEFINITIONS. In this chapter:
(1) "District" means an irrigation district.
(2) "Board" means the board of directors of a
district.
(3) "Director" means a member of the board of
directors of a district.
(4) "Commissioners court" means the commissioners
court of the county in which a district or part of a district is
located.
(5) "Commission" means the Texas Natural Resource
Conservation Commission.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1981, 67th Leg., p. 984, ch. 367, § 40,
eff. June 10, 1981; Acts 1991, 72nd Leg., 1st C.S., ch. 3, §
1.080, eff. Aug. 12, 1991.
SUBCHAPTER B. CREATION OF DISTRICT; CONVERSION OF DISTRICT
§ 58.011. CREATION OF DISTRICT. An irrigation district
may be created under and subject to the authority, conditions, and
restrictions of either Article III, Section 52, of the Texas
Constitution, or Article XVI, Section 59, of the Texas
Constitution.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.012. COMPOSITION OF DISTRICT. (a) A district may
include all or part of one or more counties, including any town,
village, or municipal corporation, and may include any other
political subdivision of the state or any defined district,
providing the land contained therein is agricultural in character.
(b) The areas composing a district do not have to be
contiguous but may consist of separate bodies of land separated by
land not included in the district; however, each segregated area,
before it may be included in the district, must cast a majority vote
in favor of the creation of the district.
(c) No district may include territory located in more than
one county except by a majority vote of the electors residing within
the territory in each county sought to be included in the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.013. PETITION. (a) A petition requesting
creation of a district shall be signed by a majority of the persons
who hold title to land in the proposed district which represents 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. 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.
(b) The petition may be signed and filed in two or more
copies.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.014. CONTENTS OF PETITION. The petition shall
include:
(1) the name of the district;
(2) the area and boundaries of the district;
(3) the provision of the Texas Constitution under
which the district is to be organized;
(4) the purpose or purposes of the district;
(5) a statement of the general nature of the work to be
done and the necessity and feasibility of the project, with
reasonable detail and definiteness to assist the court or
commission passing on the petition in understanding the purpose,
utility, feasibility, and need; and
(6) a statement of the estimated cost of the project
based on the information available to the person filing the
petition at the time of filing.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.015. PLACE OF FILING; RECORDING. (a) The
petition shall be filed in the office of the county clerk of the
county in which the district is located. If land in more than one
county is included in the district, copies of the petition
certified by the clerk shall be filed in the office of the county
clerk of each county in which a portion of the district is located.
(b) The petition shall be recorded in a book kept for that
purpose in the office of the county clerk.
(c) If more than one petition is filed and the petitions are
identical except for the signature, one copy of the petition shall
be recorded and all signatures on the other petitions shall be
included.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.016. BOARD OR COMMISSION TO CONSIDER CREATION OF
DISTRICT. If the land to be included in a district is within one
county, the creation of the district shall be considered and
ordered by the commissioners court, but if the land to be included
in a district is in two or more counties, the creation of the
district shall be considered and ordered by the commission.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.017. SINGLE-COUNTY DISTRICT; HEARING. (a) If a
petition is filed for the creation of a district within one county,
the county judge shall issue an order setting the date of hearing on
the petition by the commissioners court and shall endorse the order
on the petition or on a paper attached to the petition.
(b) After the order is issued, the county clerk shall issue
notice of the hearing.
(c) The petition may be considered at a regular or special
session of the court.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.018. SINGLE-COUNTY DISTRICT; NOTICE OF
HEARING. (a) The notice of hearing on the petition shall include
a statement of the nature and purpose of the district and the date,
time, and place of hearing.
(b) The notice shall be prepared with one original and three
copies. The county clerk shall retain one copy of the notice in his
files and deliver the original and two copies to the county sheriff.
(c) The sheriff shall post one copy of the notice at the
courthouse door 15 days before the day of the hearing and shall
publish one copy in a newspaper of general circulation in the county
once a week for two consecutive weeks. The first newspaper
publication shall be made at least 20 days before the day of the
hearing.
(d) Before the hearing, the sheriff shall make due return of
service of the notice with copy and affidavit of publication
attached to the original.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.019. SINGLE-COUNTY DISTRICT; NAME. (a) A
district located in one county may be named the ________ County
Irrigation District Number ________ (insert the name of the county
and proper consecutive number).
(b) A district may be known and designated by any term
descriptive of the location of the district and descriptive of the
principal powers to be exercised by the district; however, the word
"district" shall be included in the designation and a consecutive
number shall be assigned to it if other districts of the same name
have been created in the county.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.020. SINGLE-COUNTY DISTRICT; TESTIMONY AT
HEARING. (a) At the hearing on the petition, any person whose
land is included in or would be affected by the creation of the
district may appear and contest the creation of the district and may
offer testimony to show that the district:
(1) is or is not necessary;
(2) would or would not be a public utility or benefit
to land in the district; and
(3) would or would not be feasible or practicable.
(b) The hearing may be adjourned from day to day.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.021. SINGLE-COUNTY DISTRICT; GRANTING OR REFUSING
PETITION. (a) The commissioners court or the commission shall
grant the petition requesting the creation of a district if it
appears at the hearing that:
(1) organization of the district as requested is
feasible and practicable;
(2) the land to be included and the residents of the
proposed district will be benefited by the creation of the
district;
(3) there is a public necessity or need for the
district; and
(4) the creation of the district would further the
public welfare.
(b) If the commissioners court or the commission fails to
make the findings required by Subsection (a) of this section, it
shall refuse to grant the petition.
(c) If the commissioners court or the commission finds that
any of the land sought to be included in the proposed district will
not be benefited by inclusion in the district, it may exclude that
land not to be benefited and shall redefine the boundaries of the
proposed district to include only the land that will receive
benefits from the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.022. SINGLE-COUNTY DISTRICT; APPEAL FROM ORDER OF
COMMISSIONERS COURT. (a) If the commissioners court grants or
refuses to grant the petition, any person who signed the petition or
any person who appears and protests the petition and offers
testimony against the creation of the district may appeal from the
order of the court by giving notice of appeal in open court at the
time of the entry of the order, which shall be entered on the
court's docket, and by filing with the clerk of the commissioners
court within five days a good and sufficient appeal bond in the
amount of $2,500.
(b) The appeal bond shall be approved by the clerk of the
commissioners court payable to the county judge conditioned for the
prosecution of the appeal with effect and the payment of all costs
incurred with the appeal in the event the final decree of the court
is against the appellant.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.023. SINGLE-COUNTY DISTRICT: RECORD ON APPEAL;
NOTICE OF APPEAL. (a) On completion of an appeal as provided in
Section 58.022 of this code, the clerk of the commissioners court
shall, within 10 days, prepare a certified transcript of all orders
entered by the commissioners court and transmit them with all
original documents, processes, and returns on processes to the
clerk of the district court to which the appeal is taken.
(b) All persons shall be charged with notice of the appeal
without notice or service of notice. No person who fails to appear
by petition, in person, or by attorney in the commissioners court
may be permitted to intervene in the district court trial.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.024. SINGLE-COUNTY DISTRICT: HEARING IN DISTRICT
COURT; PROCEDURE. (a) The district court, either in term time or
in vacation time, shall schedule the appeal for hearing with all
reasonable dispatch.
(b) In the proceeding in the district court, formal
pleadings shall not be required but, with the court's permission,
may be filed.
(c) The trial and decision shall be by the court without the
intervention of a jury, and the hearing shall be conducted as though
the jurisdiction of the district court were original jurisdiction.
(d) The following matters may be contested in the district
court:
(1) all matters that were or might have been presented
in the commissioners court;
(2) the validity of the Act under which the district is
proposed to be created; and
(3) the regularity of all previous proceedings.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, §
4(47), eff. Aug. 31, 1981.
§ 58.025. SINGLE-COUNTY DISTRICT: JUDGMENT OF DISTRICT
COURT; APPEAL. (a) In the appeal, the district court shall apply
to the determination its full powers to the end that substantial
justice may be done.
(b) An appeal from the judgment of the district court may be
taken as in other civil causes, but appeals filed under Section
58.022 of this code shall be given precedence on the docket of any
higher court over all causes that are not of similar public concern.
(c) The final judgment of the district court, or other court
to which an appeal may be prosecuted, shall be certified and
transmitted to the clerk of the commissioners court with all
original documents and processes which were transmitted from the
commissioners court to the district court on appeal.
(d) The commissioners court shall enter its order on the
petition to conform to the decree entered by the court of final
jurisdiction and shall enter other and further orders as may be
required by law to execute the intent of the certified decree.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.026. SINGLE-COUNTY DISTRICT: APPOINTMENT OF
DIRECTORS; BOND. (a) If the commissioners court grants a
petition for creation of a district, it shall appoint five
directors who shall serve until their successors are elected or
appointed in accordance with law.
(b) Each director shall, within 15 days after appointment,
file his official bond in the office of the county clerk, and the
county clerk shall present the bond to the county judge for
approval. The county judge shall pass on the bond and approve it,
if it is proper and sufficient, or disapprove it and shall endorse
his action on the bond and return it to the county clerk.
(c) If approved, the bond of a director shall be recorded in
a record kept for that purpose in the office of the county clerk,
but if a bond is not approved, a new bond may be furnished within 10
days after disapproval.
(d) If any director appointed under this section fails to
qualify, the commissioners court shall appoint another person to
replace him.
(e) Each director appointed under this section shall take
the oath of office as provided by Section 58.077 of this code.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.027. MULTICOUNTY DISTRICT: CONSIDERATION BY
COMMISSION. (a) The commission shall have exclusive jurisdiction
and power to consider and determine all petitions for creation of a
district that will include land or property located in two or more
counties.
(b) The orders of the commission concerning the
organization of a district shall be final, unless an appeal is taken
from the orders as provided in this subchapter.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1997, 75th Leg., ch. 1070, § 36, eff.
Sept. 1, 1997.
§ 58.028. MULTICOUNTY DISTRICT: NOTICE AND HEARING ON
DISTRICT CREATION. When a petition is filed, the commission shall
give notice of an application in the manner provided in Section
49.011 and may conduct a hearing on the application if the
commission determines that a hearing is necessary under that
section.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1997, 75th Leg., ch. 1070, § 37, eff.
Sept. 1, 1997.
§ 58.030. MULTICOUNTY DISTRICT: CONSIDERATION BY
COMMISSION; PROCEDURE. (a) The commission shall consider and
determine on the issues a petition filed under Section 58.028.
(b) The commission shall be governed by the provisions of
Section 58.021.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1997, 75th Leg., ch. 1070, § 38, eff.
Sept. 1, 1997.
§ 58.031. MULTICOUNTY DISTRICT: APPEAL FROM COMMISSION
DECISION. (a) When the commission grants or refuses a petition,
any person who comes within the requirements specified in Sections
58.020-58.025 of this code may prosecute an appeal from the
judgment of the commission under Sections 58.022-58.025 of this
code.
(b) The appeal may be taken to any district court in any
county in which part of the proposed district is located or to a
district court in Travis County.
(c) The time within which an appeal bond may be approved and
filed is 15 days after the entry of the final order by the
commission.
(d) On the perfection of the appeal, the appellant shall pay
the actual cost of the transcript of the record, which will be
assessed as part of the costs incurred on the appeal.
(e) Whenever practicable, the original documents and
processes with the returns attached shall be sent to the district
court.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.032. MULTICOUNTY DISTRICT: APPOINTMENT OF
DIRECTORS BY COMMISSION; BOND. (a) If the commission grants the
petition for creation of the district, it shall appoint five
directors, who shall serve until their successors are elected or
appointed.
(b) A certified copy of the order of the commission granting
a petition and naming the directors shall be filed in the office of
the county clerk of each county in which a portion of the district
is located.
(c) Each director named in the order shall, within 15 days
after appointment, file his official bond in the office of the
county clerk of the county of his residence. The county clerk shall
present the bond to the county judge for approval.
(d) The county judge shall act on each bond in the manner
provided in Section 58.026 of this code.
(e) If any director appointed under this section fails to
qualify, the commissioners court of the county in which he lives
shall appoint some qualified person to replace him.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.035. INCLUSION OF CITY, TOWN, OR MUNICIPAL
CORPORATION IN DISTRICT. (a) No city, town, or municipal
corporation may be included within any district created under this
chapter unless the proposition for the creation of the district has
been adopted by a majority of the electors in the city, town, or
municipal corporation.
(b) Any municipal corporation included within a district
shall be a separate voting district, and the ballots cast within the
municipal corporation shall be counted and canvassed separately
from the remainder of the district.
(c) No district that includes a city, town, or municipal
corporation may include land outside of the municipal corporation
unless the election to confirm and ratify the creation of the
district favors the creation of the district independent of the
vote within the municipal corporation.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.036. CONFIRMATION ELECTION IN DISTRICT INCLUDING
LAND IN MORE THAN ONE COUNTY. No district, the major portion of
which is located in one county, may be organized to include land in
another county unless the election held in the other county to
confirm and ratify the creation of the district is adopted by those
voting in the other county.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.037. EXCLUSION OF PARTS OF DISTRICT;
DISSOLUTION. (a) If any portion of a district governed by
Sections 58.035 and 58.036 of this code votes against the creation
of the district and the remainder of the district votes for the
creation, the district is confirmed and ratified in those portions
of the district voting for the creation, and the district is
composed only of those portions.
(b) The excluded portions of the district shall be excluded
from all debts and obligations incurred after the election;
however, all land and property included in the original district
shall be subject to the payment of taxes for the payment of all
debts and obligations, including organizational expenses, incurred
while it was a part of the district.
(c) If a district is created and portions of the proposed
district are excluded by the vote in those portions, 10 percent of
the voters in the district may file with the Board a petition asking
for a new election on the issue. A new election shall be ordered and
held for the remaining portion of the district or the district
organization may be dissolved by order of the board and a new
district formed.
(d) A petition requesting a new election shall be filed
within 30 days after the day on which the result of the election is
canvassed and declared by the board.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.038. CONVERSION OF CERTAIN DISTRICTS INTO DISTRICTS
OPERATING UNDER THIS CHAPTER. (a) Any water improvement district
or water control and improvement district which furnishes water for
irrigation and does not furnish treated water or sewer services may
be converted into a district operating under this chapter.
(b) The governing body of a district which desires to
convert into a district operating under this chapter shall adopt
and enter in the minutes of the governing body a resolution
declaring that, in its judgment, conversion into an irrigation
district operating under this chapter and under Article XVI,
Section 59, of the Texas Constitution, would serve the best
interest of the district and would be a benefit to the land and
property included in the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.039. CONVERSION OF DISTRICT; NOTICE. (a) Notice
of the adoption of a resolution under Section 58.038 of this code
shall be given by publishing the resolution in a newspaper with
general circulation in the county or counties in which the district
is located.
(b) The notice shall be published once a week for two
consecutive weeks with the first publication not less than 14 full
days before the time set for a hearing.
(c) The notice shall:
(1) state the time and place of the hearing;
(2) set out the resolution in full; and
(3) notify all interested persons to appear and offer
testimony for or against the proposal contained in the resolution.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.040. CONVERSION OF DISTRICT; FINDINGS. (a) If,
on a hearing, the governing body of the district finds that
conversion of the district into one operating under this chapter
would serve the best interest of the district and would be a benefit
to the land and property included in the district, it shall enter an
order making this finding and the district shall become a district
operating under this chapter.
(b) If the governing body finds that the conversion of the
district would not serve the best interest of the district and would
not be a benefit to the land and property included in the district,
it shall enter an order against conversion of the district into one
operating under this chapter.
(c) The findings of the governing body of a district entered
under this section are final and not subject to appeal or review.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.041. EFFECT OF CONVERSION. A district that
converts into a district operating under this chapter shall:
(1) be constituted an irrigation district operating
under and governed by this chapter;
(2) be a conservation and reclamation district under
the provisions of Article XVI, Section 59, of the Texas
Constitution; and
(3) have and may exercise all the powers, authority,
functions, and privileges provided in this chapter in the same
manner and to the same extent as if the district had been created
under this chapter.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.042. RESERVATION OF CERTAIN POWERS FOR CONVERTED
DISTRICTS. (a) Any water improvement district or water control
and improvement district, after conversion under Section 58.038 of
this code, may continue to exercise all necessary specific powers
under any specific conditions provided by the chapter of this code
under which the district was operating before conversion, except
that no district, after conversion, may engage in the treatment or
delivery of treated water for domestic consumption or the
construction, maintenance, or operation of sewage facilities.
(b) At the time of making the order of conversion, the
governing body shall specify in the order the specific provisions
of the chapter of the code under which the district had been
operating which are to be preserved and made applicable to the
operations of the district after conversion into a district
operating under this chapter.
(c) A reservation of a former power under Subsection (a) of
this section may be made only if this chapter does not make specific
provision concerning a matter necessary to the effectual operation
of the converted district.
(d) In all cases in which this chapter does make specific
provision, this chapter shall, after conversion, control the
operations and procedure of the converted district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
SUBCHAPTER C. ADMINISTRATIVE PROVISIONS
§ 58.071. BOARD OF DIRECTORS. The governing body of a
district is the board of directors, which shall consist of five
directors.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.072. QUALIFICATIONS. To be qualified for election
as a director, a person must be a resident of the state, be the owner
of record of fee simple title to land in the district, be at least 18
years of age, and owe no delinquent taxes or assessments to the
district. Section 49.052 does not apply to a district governed by
this chapter.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1995, 74th Leg., ch. 715, § 32, eff.
Sept. 1, 1995.
§ 58.0731. ELECTION OF DIRECTORS FROM PRECINCTS. A
district that elected one director from each of five precincts
before it converted to a district operating under this chapter
shall continue to elect its directors in the same manner from
precincts.
Added by Acts 1979, 66th Leg., p. 70, ch. 44, § 1, eff. April 11,
1979.
§ 58.084. DISTRICT TAX ASSESSOR AND COLLECTOR. The
board may appoint one person to the office of tax assessor and
collector, or it may order an election to fill that office.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.089. BONDS OF OFFICERS OF A DISTRICT ACTING AS
FISCAL AGENT OR COLLECTING MONEY FOR THE UNITED STATES. (a) If a
district is appointed fiscal agent for the United States or if a
district is authorized to make collections of money for the United
States in connection with a federal reclamation project, each
director and officer of the district including the tax assessor and
collector shall execute an additional bond in the amount required
by the Secretary of the Interior, conditioned on the faithful
discharge of his respective office and on the faithful discharge by
the district of its duties as fiscal or other agent of the United
States under its appointment or authorization.
(b) The additional bonds shall be approved, recorded, and
filed as provided in this chapter for other official bonds.
(c) Suit may be brought on the bonds by the United States or
any person injured by the failure of the officers or directors of
the district to fully, promptly, and completely perform their
respective duties.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
SUBCHAPTER D. POWERS AND DUTIES
§ 58.121. PURPOSES OF DISTRICT. (a) Irrigation
districts operating under this chapter are limited purpose
districts established primarily to deliver untreated water for
irrigation and to provide for the drainage of lands and such other
functions as are incidental to the accomplishment of such limited
purposes. An irrigation district shall not engage in the treatment
or delivery of treated water for domestic consumption or the
construction, maintenance, or operation of sewage facilities or
provide any other similar municipal services. An irrigation
district may 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.
(b) An irrigation district operating under this chapter may
contract with municipalities, political subdivisions, water supply
corporations, or water users for the delivery of untreated water.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.122. POWERS OF DISTRICT. The district has the
functions, powers, authority, rights, and duties which will permit
the accomplishment of the purposes for which it was created,
including the investigation and, in case a plan for improvements is
adopted, the construction, maintenance, and operation of necessary
improvements, plants, works, and facilities, and the acquisition of
water rights and all other properties, land, tenements, materials,
borrow and waste ground, easements, rights-of-way, and everything
considered necessary, incident, or helpful to accomplish by any
practicable mechanical means any one or more of the objects
authorized for the district, subject only to the restrictions
imposed by the Constitutions of Texas or the United States. A
district also may acquire property deemed necessary for the
extension or enlargement of the plant, works, improvements, or
service of the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.125. CONSTRUCTION OF IMPROVEMENTS. A district may
construct all works and improvements necessary:
(1) for the irrigation of land in the district;
(2) for the drainage of land in the district,
including drainage ditches or other facilities for drainage; and
(3) for the construction of levees to protect the land
in the district from overflow.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.126. PURCHASE OF MACHINERY AND SUPPLIES. The board
may purchase machinery, materials, and supplies needed in the
construction, operation, maintenance, and repair of district
improvements.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.127. ADOPTING RULES. A district may adopt and make
known reasonable rules to:
(1) prevent waste or the unauthorized use of water;
and
(2) regulate residence, hunting, fishing, boating,
and camping, and all recreational and business privileges on any
body or stream of water, or any body of land, or any easement owned
or controlled by the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.128. EFFECT OF RULES. After the required
publication, rules adopted by the district under Section 58.127 of
this code shall be recognized by the courts as if they were penal
ordinances of a city.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.129. PUBLICATION OF RULES. (a) The board shall
publish once a week for two consecutive weeks a substantive
statement of the rules and the penalty for their violation in one or
more newspapers with general circulation in the area in which the
property of the district is located.
(b) The substantive statement shall be as condensed as is
possible to intelligently explain the purpose to be accomplished or
the act forbidden by the rule.
(c) The notice must advise that breach of the rules will
subject the violator to a penalty and that the full text of the
rules is on file with the principal office of the district where it
may be read by any interested person.
(d) Any number of rules may be included in one notice.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.130. EFFECTIVE DATE OF RULES. The penalty for
violation of a rule is not effective and enforceable until five days
after the publication of the notice. Five days after the
publication, the published rules shall be in effect and ignorance
of it is not a defense for a prosecution for the enforcement of the
penalty.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.133. 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.134. CONSTRUCTING CULVERTS AND BRIDGES ACROSS AND
UNDER RAILROAD TRACKS, ROADWAYS, AND INTERURBAN OR STREET
RAILWAYS. (a) The district, at its own expense, may build
necessary bridges and culverts across or under any railroad tracks
or roadways of any railroad or any interurban or street railway to
enable the district to construct and maintain any canal, lateral,
ditch, or other improvement of the district.
(b) Before the district builds a bridge or culvert, the
board shall deliver written notice to the local agent,
superintendent, roadmaster, or owner. The railroad company or its
owner shall have 60 days in which to build the bridge at its own
expense and according to its own plans.
(c) The canal, culvert, ditch, or structure shall be
constructed of sufficient size and proper plan to serve the purpose
for which it is intended.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.136. POWER TO CONTRACT. The district may enter
into a contract for the use by another of its water, facilities, or
service, either inside or outside the district, except that a
contract may not be made which impairs the ability of the district
to serve lawful demands for service within the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.137. INVESTIGATION AND REPORT OF
ENGINEER. (a) The district engineer shall make a thorough study
and investigation of all plans of the district and make and file in
the district office a report on all plans for construction of plants
and improvements.
(b) The board shall provide and keep a book in the district
office, to be known as the "Engineer's Record," in which all reports
and recommendations made by the district engineer shall be
recorded. The "Engineer's Record" shall be open to public
inspection.
(c) A contract for more than $20,000 may not be made by the
district unless the district has a district engineer who has made a
proper study and report on it.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.150. TRANSACTIONS IN DISTRICT NAMES UNDER JOINT
OWNERSHIP AND CONSTRUCTION CONTRACT. All bids, bonds, contracts,
and other transactions made under a joint ownership and
construction contract may be made in the names of the districts
which are parties to the contract.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.153. CONTRACT WITH THE UNITED STATES. (a) The
board may enter into a contract or other obligation with the United
States for the investigation, construction, extension, operation,
and maintenance of any federal reclamation project of benefit to
the district and authorized under the National Reclamation Act of
1902, as amended.
(b) The board may contract to secure a district water supply
from the federal reclamation project and to pay to the United States
the agreed cost of it in the form of construction charges, operation
and maintenance charges, and water rental charges, as shown by the
contract and in accordance with the terms and conditions of the
national reclamation law.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.154. CONSTRUCTION CHARGES UNDER A CONTRACT WITH THE
UNITED STATES. The construction charges under a contract with the
United States may include the cost of drainage and flood-control
works necessary to control floods or to maintain the irrigability
of district land.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.155. ELECTION TO APPROVE A CONTRACT WITH THE UNITED
STATES. (a) The electors of the district shall vote to approve
every contract involving the payment of construction charges to the
United States. The provisions of this chapter relating to the
election to approve the validation of district bonds shall be
followed, including the prosecution of an action in court to
determine the validity of the contract.
(b) The notice of election shall state the maximum amount,
exclusive of operation and maintenance charges, water rental
charges, interest, and penalties, payable by the district to the
United States under the contract.
(c) The ballot shall be printed to provide for voting for or
against the proposition: "The contract with the United States and
levy of taxes to make payments under the contract". This is the
only proposition that may appear on the ballot.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.156. CONVEYING PROPERTY TO THE UNITED STATES. A
district may convey any property to the United States necessary for
the construction, operation, or maintenance of federal reclamation
works used or to be used for the benefit of the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.157. CONSENT OF UNITED STATES TO ALTER DISTRICT'S
BOUNDARIES. Until all money has been paid by the district which is
due to the United States under a contract relating to a federal
reclamation project, the United States must consent to any change
in the boundaries of the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.158. TAXES LEVIED BY DISTRICT UNDER CONTRACT WITH
THE UNITED STATES. (a) A district that enters into a contract
with the United States shall levy annually sufficient taxes to
provide payment of all installments required by the contract.
(b) The board may pay construction charges when provided by
contract on the basis of the average gross annual acre income of the
land of the district or designated divisions or subdivisions of the
district. The Secretary of the Interior shall determine the annual
gross acre income.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.159. ASSESSMENTS FOR CONTRACTS WITH THE UNITED
STATES. The board shall levy annually sufficient assessments to
collect the money required to pay all of the district's obligations
in full when due regardless of any delinquency in payment of
assessments by any tract of land. If collections in any year are
insufficient to pay the obligations of the district, the levy shall
be increased sufficiently the following year to cover the deficit.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.160. DURATION OF ANNUAL LEVIES FOR CONTRACTS WITH
THE UNITED STATES. The board shall continue annual levies for
payment of construction charges each year against each tract of
land in the district even though construction charges apportioned
against other tracts of land in the district may be paid sooner or
later.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.161. SUPERIORITY OF LIEN TO SECURE CONTRACT WITH
THE UNITED STATES. The lien against district land created by a
contract with the United States shall be superior to the lien
created by any district bonds approved subsequent to the date of the
contract with the United States.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.162. DISTRICT'S AUTHORITY TO SOLICIT COOPERATION,
DONATIONS, AND CONTRIBUTIONS FROM OTHER AGENCIES. A district
organized under the provisions of this chapter may solicit
cooperation, donations and contributions from:
(1) the United States, the state or nation;
(2) any county, municipality, water improvement
district, water control and improvement district, drainage
district, or any other political subdivision of the state; or
(3) any person, copartnership, corporation, or
association.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.163. EXPENSE OF PROCURING COOPERATION AND
CONTRIBUTIONS FROM OTHER AGENCIES. A district may incur
reasonable expense to procure cooperation under Section 58.162 of
this code in adding to the area of the district or with
contributions to the cost of improvements made by the district. The
contributions may be either a percentage of cost or a definite
annual sum.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.164. AUTHORITY OF CONTRIBUTOR. (a) Any water
improvement district, water control and improvement district,
levee improvement district, irrigation district, county, city,
town, or other political subdivision of the state may contract to
contribute to the cost of the construction of drainage and
irrigation water distribution system improvements. The
improvements to be constructed may be outside the contributing
district, municipality, or other political subdivision of the
state, and may be located outside the state or the United States.
(b) The works may be constructed by any agency.
(c) The contribution shall be proportionate to the benefit
which the contributor will derive from the proposed improvements.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.165. ISSUANCE OF BONDS BY CONTRIBUTOR. (a) The
contract may provide for the issuance of bonds by the contributor
and for direct payment from the proceeds of the bonds to contractors
on the estimates of the engineer for the contributor.
(b) Before issuing bonds, a contributing political
subdivision shall submit the contract for contribution to its
electors for approval and for authority to issue the bonds, fix a
lien to secure the bonds, and levy, assess, and collect taxes to
retire the bonds. The procedure by a contributing political
subdivision of the state shall conform to the applicable law under
which the political subdivision was organized and authorized to
create bonded indebtedness.
(c) The disposition of the proceeds of the bond shall
conform to the approved contract of contribution.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.166. ANNUAL TAX BY CONTRIBUTOR. (a) The contract
for contribution may provide that instead of issuing bonds the
contributor may levy, assess, and collect an annual tax in a
specific sum. The levy or assessment is a lien on the property
subject to the contributor's taxing power.
(b) The contributor shall collect the tax at its own expense
and pay it annually to the district to which the contribution is to
be made. The district shall hold the annual payment as a trust fund
and annually apply it to the bonds issued by it to provide funds for
the construction of the improvements to which the contribution is
made.
(c) The contributor shall submit the contract of
contribution to its electors for approval and for authority to levy
and assess a sufficient tax to meet the annual payments fixed in the
contract. The election for the approval of the contract and the
authorized taxes for the fulfillment of the contract shall conform
to appropriate law under which the contributing political
subdivision was organized and authorized to create bonded
indebtedness.
(d) Payment of the annual sums of contribution shall conform
to the contract of contribution.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.167. CONTRIBUTIONS FROM UNAPPROPRIATED OR
AVAILABLE FUNDS OF CONTRIBUTOR. (a) If the proposed contributor
has an unappropriated fund or a fund which is not required for
actual use even though otherwise appropriated, the fund may be
withdrawn from the project which does not need it and may be applied
to pay contributions to the cost of the improvements considered to
be a benefit to the contributor but to be constructed by another
agency or jointly by the contributor and another agency.
(b) The board of the contributing political subdivision may
contract for contributions and contribute from an unappropriated or
available fund without submitting the contract and contributions to
a vote of the electors of the contributor. However, the
contributions shall not be made if they impair the ability of the
contributor to meet any outstanding obligation or to adequately and
economically discharge the contributor's duty to its electorate or
constituency.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.168. LIABILITY ON CONTRACTS OF ACQUIRED IRRIGATION
SYSTEM. If a district acquires an established irrigation system
which has contracted to supply water to others and the holders of
the contracts or the lands entitled to service of water are not
within the district, the contracts and duties shall be performed by
the district in the same manner and to the same extent that any
other purchaser of the system would be bound.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.170. COVENANTS AND AGREEMENTS INCLUDED IN
LEASE. (a) The lease shall expressly state that the sums payable
under the terms of the lease and the lease itself shall not
constitute an indebtedness or pledge of the general credit of the
district within the meaning of any constitutional or statutory
limitation of indebtedness. The lease shall contain a statement
that payments due under it are not payable from any funds raised or
to be raised by taxation.
(b) The lease may contain covenants and agreements which are
not inconsistent with the provisions of this code which authorize
the lease for:
(1) the management and operation of the leased
properties;
(2) the imposition and collection of charges for
water;
(3) the disposition of the proceeds of charges;
(4) the insurance, protection, and maintenance of the
leased properties;
(5) the creation of other obligations payable from the
revenues derived from the operation of the leased properties;
(6) the keeping of books and records by the district;
and
(7) other pertinent provisions which the board
considers desirable to assure the payment of amounts due under the
lease.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.171. REVENUE FOR PAYMENT OF LEASE RENTAL. (a) All
money due the lessor under the lease shall be payable solely from
the revenue derived by the district from the sale of water supplied
through the leased system.
(b) The board shall set and collect charges for the water
supplied through the leased properties to produce sufficient
revenue at all times to allow for delinquencies and to pay promptly
all rental payments becoming due under the terms of the lease. The
board may agree to deposit this money in a separate fund as a first
charge on the gross revenue received each year from sales of water,
and which shall not be used for any other purpose.
(c) The board may agree in the lease to pay all expenses of
operating and maintaining the leased properties from the fund
provided by the board each year for the maintenance and operation
expenses of the district so that the gross revenue from sale of
water will be available exclusively for payment of rentals until
the amount required for rentals each year is paid into the separate
rental fund.
(d) If the board includes this agreement in the lease, the
board shall provide for the payment of sums into the maintenance
fund from sources other than the remaining portions of the gross
revenue from the sale of water not required to pay rentals which are
sufficient each year to pay all expenses of operating the district
and maintaining and operating its properties and facilities,
including the leased properties.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.172. RECEIVER FOR LEASED IRRIGATION
SYSTEM. (a) If the district defaults in the payments due under a
lease, the lessor may petition a court of competent jurisdiction to
appoint a receiver for the leased properties.
(b) The receiver shall operate the properties and collect
and distribute the revenue according to the terms of the lease and
the direction of the court.
(c) The receiver has the same rights and powers as the board
in its operation of the leased properties.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.173. JOINT LEASE BY TWO OR MORE DISTRICTS. The
boards of two or more districts may adopt resolutions to enter into
a joint lease under the provisions of Section 58.169 of this code.
The joint lease shall specify clearly the respective rights and
liabilities of the districts and shall be subject to all the
provisions of Sections 58.169 and 58.172 of this code.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.174. AUTHORITY TO ACQUIRE IRRIGATION SYSTEM SUBJECT
TO MORTGAGE. A district may acquire by gift, grant, or purchase
any part of an irrigation system serving the district which is
subject to a mortgage or encumbrance. The mortgage or encumbrances
shall not be assumed by the district and shall not be an
indebtedness of the district but shall constitute solely a charge
on the encumbered property and the revenue from it.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.175. REVENUE FOR PAYMENT OF MORTGAGE. (a) The
board may determine conclusively by resolution whether the mortgage
or encumbrance represents all or part of the cost of the acquired
property and constitutes a purchase money lien on the property.
(b) The board may contract to use and pledge its revenue
derived solely from the sale of water and services supplied through
the acquired properties for the payment of a purchase money lien.
(c) The board also may use revenue from taxation or from the
issuance and sale of bonds to pay all or part of the amount due under
the encumbrance if a majority of the electors of the district voting
at an election on this proposition approve its use.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.176. ELECTION TO APPROVE REVENUE FOR PAYMENT OF
MORTGAGE. (a) If tax and bond revenue is pledged to pay amount
due under the encumbrance, the district must hold an election and
receive the approval of the electors.
(b) An election to approve the use of tax and bond revenue
shall be held in the same manner and with the same voters'
qualifications as provided for elections on the issuance of the
bonds of the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.177. JOINT ACQUISITION OF MORTGAGED SYSTEM BY TWO
OR MORE DISTRICTS. (a) Two or more districts jointly may acquire
by gift, grant, or purchase any part of an irrigation system serving
the districts subject to a mortgage or encumbrances in the same
manner that a single district may acquire the system.
(b) In the proceedings authorizing the acquisition, the
boards of the respective districts shall define clearly the
respective rights, interest, and liability of the districts in the
acquired property and in the mortgage or encumbrance.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.178. AUTHORITY TO LEASE FACILITIES TO WATER
CUSTOMERS. (a) A district may lease to any person, firm, or
corporation which is a bona fide water customer of the district any
of its facilities and may also lease any of the district's land
which is appropriate to the utilization of the leased facilities,
including, but not limited to land acquired by eminent domain.
(b) The board and the lessee shall agree on the form of the
lease and its terms, conditions, provisions, and stipulations:
however, the duration of the lease shall not be longer than the
duration of the water contract between the district and the lessee
under the primary term of the water contract and any renewal or
extension of it.
(c) After a lease to a water customer is authorized by the
board, the lease shall be executed by the president or
vice-president of the board and attested by the secretary. The
lease is valid and effective without any other requirement or
prerequisite by the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.180. AMENDMENTS TO WATER RIGHTS. The board may
apply to the commission to amend its water rights as provided by
Section 11.122 of this code and the rules of the commission.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1,
eff. June 10, 1981.
§ 58.181. SUIT TO PROTECT WATER RIGHTS. The board may
institute and maintain any suit or suits to protect the water supply
or other rights of the district, to prevent any unlawful
interference with the water supply or other rights of the district,
or to prevent a diversion of its water supply by others.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.182. 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 the land from which the water was transferred.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.183. SELLING WATERPOWER PRIVILEGES. (a) The
district may enter into a contract to sell waterpower privileges if
power can be generated from water flowing from the district's
reservoirs within its canal system.
(b) The sale of waterpower privileges may not interfere with
the district's obligation to furnish an adequate supply of water
for the purpose for which the district was organized and for
municipal purposes in districts that furnish water for municipal
purposes.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.184. SELLING SURPLUS WATER. The district may sell
any surplus district water for use in irrigation or for domestic or
commercial uses to any person who owns or uses land in the vicinity
of the district or to other districts which include land in the same
vicinity.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.185. PUMPING WATER TO ANOTHER DISTRICT. If the
board considers it advisable, it may contract to pump for or supply
another district any water in which the other district has a right.
The board shall provide the terms of the contract.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.186. OBTAINING TOPOGRAPHIC MAPS AND DATA. The
Texas Water Development Board shall furnish to a district
topographic maps and data concerning projects undertaken by the
district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1981, 67th Leg., p. 961, ch. 367, § 1,
eff. June 10, 1981; Acts 1987, 70th Leg., ch. 977, § 34, eff.
June 19, 1987.
§ 58.190. SALE OF PROPERTY NOT ACQUIRED TO CARRY OUT THE
PLANS OF THE DISTRICT. The board may sell property bid in by it at
any sale under foreclosure of its tax lien or of its lien for
charges or assessments, or any property acquired by it other than
for the purpose of carrying out the plans of the district, without
formally determining that the property is not required to carry out
the plans of the district, without giving notice of the intent of
the district to sell the property, and without applying the
proceeds of the sale as provided in Sections 58.188 and 58.189 of
this code.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
SUBCHAPTER E. ELECTION PROVISIONS
§ 58.221. LANDOWNER. In this subchapter, a reference to
"landowner" refers to a single landowner who is the owner of record
of fee simple title to a parcel of land located within the
boundaries of a district, regardless of whether the title to the
parcel of land is held by:
(1) an individual landowner;
(2) two or more individual landowners; or
(3) a corporation, partnership, or other business
entity.
Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.
§ 58.222. ELIGIBILITY TO VOTE. Notwithstanding the
Election Code and any other law, a landowner or the landowner's
registered representative under this subchapter is entitled to one
vote in an election conducted by a district only if the landowner:
(1) owns at least one acre of irrigable land located
within the district's boundaries that is subject to an assessment
for maintenance and operating expenses under Sections 58.305(a) and
(b);
(2) is entitled to receive and use irrigation water
delivered by the district through the district's irrigation
facilities; and
(3) satisfies all other requirements for voting
prescribed by this subchapter.
Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.
§ 58.223. ELIGIBILITY REQUIREMENTS. An individual
landowner, or the landowner's registered representative, is
eligible to vote only if the individual:
(1) is 18 years of age or older;
(2) is a United States citizen;
(3) has not been determined mentally incompetent by a
final judgment of a court;
(4) has not been finally convicted of a felony or, if
so convicted, has:
(A) fully discharged the individual's sentence,
including any term of incarceration, parole, or supervision, or
completed a period of probation ordered by any court; or
(B) been pardoned or otherwise released from the
resulting disability to vote; and
(5) is included on the list of qualified voters
prepared under Section 58.224(d).
Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.
§ 58.224. REGISTRATION REQUIRED. (a) A landowner who
elects to designate a representative to vote on behalf of the
landowner must register the representative to vote on a form
prescribed by the district.
(b) The form must be received by the district on or before
the 20th day before the date of the election.
(c) The registration is valid for a period prescribed by the
district.
(d) The district shall prepare a list of qualified voters as
shown by the district's records as of the 60th day before the date
of a district election. On or before the 40th day before the date of
an election, the district shall:
(1) file the list with the county clerk of each county
within which the district's boundaries are located;
(2) post the list in the district's office; and
(3) post the list at each county courthouse in each
county within which the district's boundaries are located.
(e) Only an individual landowner or a registered
representative of a landowner whose name appears on the list of
qualified voters is eligible to vote in a district election.
Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.
§ 58.225. VOTING BY REPRESENTATIVE. (a) A landowner
may authorize an individual to vote in a district election as the
landowner's representative as provided by this subchapter.
(b) If ownership of the land is vested in more than one
individual or in a corporation, partnership, or other business
entity, the vote must be made by a registered representative.
Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.
§ 58.226. LIABILITY FOR DISTRICT TAXES AND
DEBTS. (a) A person who on January 1 of each year is not eligible
under this subchapter to vote in an election held by a district is
not liable for any tax imposed by the district under Subchapters L
or M during the year in which the person is not eligible to vote.
(b) A person continues to be liable for the payment of:
(1) taxes imposed before the date on which a person
becomes ineligible to vote under this subchapter;
(2) the pro rata share of any district indebtedness
existing on the date on which a person becomes ineligible to vote
under this subchapter; and
(3) taxes imposed during any year in which the person
is eligible to vote under this subchapter.
Added by Acts 2001, 77th Leg., ch. 107, § 1, eff. Sept. 1, 2001.
SUBCHAPTER G. WATER CHARGES AND ASSESSMENTS
§ 58.301. STATEMENT ESTIMATING WATER REQUIREMENTS AND
PAYMENT OF CHARGE. (a) Each person who desires 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.
(b) 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.
(c) If a person 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.302. 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) If a person irrigates more land than his contract
specifies, he shall pay for the additional service.
(c) 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.
(d) The contract is not a waiver of the lien given to the
district under Section 58.309 of this code against the crops of a
person using water for the service furnished to him.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.303. AUTHORITY TO DETERMINE RULES AND
REGULATIONS. The board may adopt, alter, and rescind rules, and
standing and temporary orders which do not conflict with the
provisions of this subchapter 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 water to persons who did not apply for
it before the date of assessment; and
(6) furnishing 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.304. 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1997, 75th Leg., ch. 789, § 3, eff.
Sept. 1, 1997.
§ 58.305. 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.
(b) 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.
(c) 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.306. 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) Notice 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 each landowner five days before the assessment is due, and notice
of special assessments shall be given within 10 days after the
assessment is levied.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.307. PAYMENT OF ASSESSMENTS. (a) All assessments
shall be paid in installments at the times fixed by the board.
(b) 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.308. COLLECTION OF ASSESSMENTS BY TAX ASSESSOR AND
COLLECTOR. (a) Under the direction of the board, the assessor and
collector, or other person designated by the board, shall collect
all assessments for maintenance and operating expenses.
(b) The assessor and collector shall execute a bond in an
amount determined by the board, conditioned on the faithful
performance of his duties and accounting for all money collected.
(c) The assessor and collector 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.
(d) The assessor and collector shall use a duplicate receipt
book, 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.309. LIEN AGAINST CROPS. 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
assessment, interest, and collection or attorney's fees.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.310. 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 persons who are delinquent in paying
assessments. If a person who owes an assessment has executed a note
and contract as provided in Section 58.302 of this code, he shall
not be placed on the delinquent list until after the maturity of the
note and contract.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1997, 75th Leg., ch. 789, § 3, eff.
Sept. 1, 1997.
§ 58.311. WATER SERVICE DISCONTINUED. If a landowner
fails or refuses to pay a water assessment when due, his water
supply shall be cut off, and no water may 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 an
interest in land for which assessments are due.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.312. SUITS FOR DELINQUENT ASSESSMENTS. Suits for
delinquent water assessments may be brought either in the county in
which the district is located or in the county in which the
defendant resides. All landowners are personally liable for
assessments provided in this subchapter.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.313. 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1997, 75th Leg., ch. 789, § 3, eff.
Sept. 1, 1997.
§ 58.314. RIGHTS OF THE UNITED STATES. (a) 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 federal
reclamation laws shall also apply.
(b) 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.315. 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.316. 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 after the date of assessment.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.318. CHARGES FOR MAINTENANCE EXPENSES. (a) If
maintenance charges are based on the quantity of water used, a fixed
minimum charge may be made on all land, water connections, or other
service entitled to receive and use water. An additional charge may
be made for the use of more water than that covered by the minimum
charge.
(b) The board may install proper measuring devices or
require that they be installed.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.319. CHARGE TO CITIES AND TOWNS. If a district
supplies untreated water, the charge for the use of the water and
the time and manner of payment shall be determined by the board or
fixed by the contract made with the board.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.320. 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.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.321. WATER SERVICE: REFUSED. The board may refuse
water service to any person who refuses to pay the charges and
assessments for water service or who fails or refuses to pay any
taxes levied against his property after six months from the date the
taxes become delinquent.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
SUBCHAPTER H. GENERAL FISCAL PROVISIONS
§ 58.351. CONSTRUCTION FUND. (a) The proceeds from
the sale of bonds shall be deposited in the construction fund.
(b) Money deposited in the construction fund shall be used
to pay expenses, debts, and obligations necessarily incurred in the
creation, establishment, and maintenance of the district and to pay
the purchase price of property and construction contracts,
including purchases for which the bonds were issued.
(c) If the bonds were issued in accordance with a contract
with the United States, debts and obligations may be paid from the
construction fund under the terms of or incident to the contract.
(d) After the payment of obligations for which the bonds
were issued, any remaining money in the construction fund may be
transferred to the maintenance fund.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.352. MAINTENANCE FUND. (a) The district shall
have a maintenance fund which shall include money collected by
assessment or other method for the maintenance, repair, and
operation of the properties and plant of the district or for
temporary annual rental due to the United States.
(b) The maintenance fund shall be used to pay all expenses
of maintenance, repair, and operation of the district except the
expenses of assessing and collecting taxes for the interest and
sinking fund shall be paid from the interest and sinking fund.
(c) The district may pay from the maintenance fund other
expenses for which the payment is not provided in this chapter.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.353. AMORTIZATION AND EMERGENCY FUND. (a) The
board shall have a competent engineer make an inspection and
valuation of the physical property of the district which is subject
to decay, obsolescence, injury, or damage by sudden, accidental, or
unusual causes, and based on the inspection and valuation, the
engineer shall determine as nearly as he can a sufficient amount to
be set aside annually to pay for replacement of each item of
physical property at the end of its economic life or for the
restoration or replacement of any item of physical property if it is
lost, injured, or damaged.
(b) The board shall set aside a portion of the maintenance
fund as it is collected equal to the amount determined under
Subsection (a) of this section and shall place this money in the
amortization and emergency fund. No part of this fund may be spent
except to replace amortized property or to replace or restore lost,
injured, or damaged property.
(c) Any amount in the amortization and emergency fund which
is not spent for the purposes for which the fund was created may be
invested in bonds or interest-bearing securities of the United
States.
(d) The board is not required to create an amortization and
emergency fund, but if the board does create the fund, it shall be
kept up and maintained.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
SUBCHAPTER I. BORROWING MONEY
§ 58.391. AUTHORITY TO BORROW MONEY. The board may
declare that funds are not available to meet lawfully authorized
obligations of the district, thereby creating an existing
emergency, and may borrow money at a rate of not more than 10
percent a year on notes of the district to pay obligations.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.392. SECURITY FOR LOAN. To secure the loan, the
board may pledge up to 85 percent of any levied tax of the district
which has not been collected by the district or may pledge as
collateral any district bonds which have been authorized but not
sold.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.393. MATURITY DATE OF LOAN. (a) If taxes are
pledged to pay for the loan, the loan shall mature not later than
the following April 1.
(b) If preliminary or construction bonds are pledged to pay
the loan, the loan shall mature not later than six months from the
date it is made.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.394. LOAN SECURED BY BONDS. The amount of the loan
may not be more than 25 percent of the district's unsold bonds and
the par value of the bonds may not be more than 10 percent of the
amount of the loan.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.395. EXPENDITURE OF LOAN PROCEEDS. No money
obtained from a loan under Section 58.391 of this code may be spent
for any purpose other than the purposes for which the pledged tax
was levied or the pledged bonds were authorized.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.396. LOANS ACCOMPLISHED BY SALE OF DISTRICT
BONDS. If the loan is secured by the sale of district bonds, the
district may enter into an obligation to be conditioned conformably
with the usages of investment banking to repurchase the bonds
within the five-year period immediately following the date of the
loan.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.397. PLEDGE OF COMMERCIAL INCOME. (a) The term
"commercial income" means income other than revenue derived from
taxation.
(b) If required to do so, a district may pledge its existing
and expected commercial income to secure a loan to the extent the
pledge will not obviously substantively impair the ability of the
district to pay obligations which are held by others.
(c) If a district expects commercial income in the future
but does not have the demonstrated income in an amount adequate to
discharge the loan when it matures, the district may pledge the
expected commercial income as provided in Subsection (b) of this
section and in addition, or as an alternative, may pledge with a
power of sale its unsold bonds in a par amount which shall not be
more than the amount of the loan plus 10 percent. The district is
not required to impound the bonds. The rate of interest on the loan
may not be more than six percent.
(d) After commercial income is pledged, it may not be used
for any purpose except to pay the debt which it secures, and it
shall be applied to the reduction of the secured debt as rapidly as
practicable.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.398. EVIDENCE OF DEBT. To evidence loans which are
not secured by the sale of bonds, the district may execute and
deliver to the lender certificates of indebtedness, notes, or
obligations and may pledge its full faith and credit for their
payment to the same extent that it may be pledged by district bonds.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.399. RETIRING BONDS. If bonds are impounded or
pledged to secure a loan made to a district, as the loan is repaid a
proportionate amount of the bonds may be withdrawn, cancelled, and
retired.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
SUBCHAPTER J. ISSUANCE OF BONDS
§ 58.431. AUTHORITY TO ISSUE BONDS OF DISTRICTS
OPERATING UNDER ARTICLE III, SECTION 52, OF THE TEXAS
CONSTITUTION. A district which is operating under Article III,
Section 52, of the Texas Constitution, may issue bonds and lend its
credit in an amount of not more than one-fourth of the assessed
valuation of the real property in the district. However, the total
indebtedness of any city or town may never be more than the limits
imposed by the Texas Constitution.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.432. AUTHORITY TO ISSUE BONDS OF DISTRICTS
OPERATING UNDER ARTICLE XVI, SECTION 59, OF THE TEXAS
CONSTITUTION. A district operating under Article XVI, Section 59,
of the Texas Constitution, may incur debt evidenced by the issuance
of bonds which is necessary to provide improvements and maintenance
of improvements to achieve the purposes for which the district was
created.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.433. AMOUNT OF DEBT LIMITED BY CONSTITUTION. No
district may issue bonds or create indebtedness in an amount which
is more than that authorized by the Texas Constitution.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.434. ISSUANCE OF PRELIMINARY BONDS. A district may
issue preliminary bonds to create a fund to pay:
(1) costs of organization;
(2) costs of making surveys and investigations;
(3) attorney's fees;
(4) costs of engineering work;
(5) costs of the issuance of bonds; and
(6) other costs and expenses incident to organization
of the district and its operation in investigating and determining
plans for its plant and improvements and in issuing and selling
bonds to provide for permanent improvements.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.435. ELECTION ON PRELIMINARY BONDS. (a) The
proposition for the issuance of preliminary bonds shall be
submitted to the electors of the district.
(b) The election may be held at the same time as the election
to confirm the creation of the district or at a later time.
(c) The board shall make an estimate of the expenses to be
paid with the proceeds of the preliminary bonds and shall include
this estimate in the notice of election.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.436. CONDITIONS OF PRELIMINARY BONDS. (a) After
preliminary bonds have been authorized at an election, the board
may order the issuance of the bonds in an amount which is not more
than the amount stated in the notice of election.
(b) The bonds may be paid serially or on amortization at any
time not more than 10 years from their date.
(c) Although the bonds will be known and designated in the
records as preliminary bonds, it is not necessary to make this
designation on the bonds.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.437. TAX TO PAY PRELIMINARY BONDS. At the time
preliminary bonds are issued, a tax shall be levied to pay principal
and interest as the bonds mature and to pay the cost of assessing
and collecting the taxes.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.438. ISSUANCE OF BONDS. (a) After a district is
created and has adopted plans for construction of a plant and
improvements, it may issue bonds to pay for constructing the plant
and improvements and to pay costs and charges incident to the
construction including the cost of necessary property and the
retirement of preliminary bonds.
(b) The maximum amount of bonds which may be issued may not
be more than the amount of the engineer's estimate plus the
additional amounts added by the board in the election order.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.439. PURPOSES FOR ISSUANCE OF BONDS. The district
may issue bonds to include:
(1) the cost of organization of the district;
(2) incidental expenses;
(3) the cost of investigation and making plans;
(4) the engineer's work and other incidental expenses;
(5) the cost of retirement of preliminary bonds;
(6) the cost of issuing and selling bonds;
(7) the estimated discount on the bonds;
(8) the cost of operation of a district for the period
of construction of the plant and improvements stated in the
engineer's report;
(9) an amount to pay interest on the bonds during the
period stated in the engineer's report, which shall not be more than
three years from the time the bonds are sold; and
(10) any additional cost or expense made necessary by
any change or modification made in the proposed work by the
district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.440. ENGINEER'S REPORT. (a) Before an election
is held to authorize the issuance of bonds, an engineer's report,
which includes the plans and improvements to be constructed
together with maps, plats, profiles, and data showing and
explaining the engineer's report, shall be filed in the office of
the district and shall be available for public inspection.
(b) The engineer's report shall contain a detailed estimate
of the cost of improvements, including the cost of any property to
be purchased, and an estimate of the time required to complete the
improvements to the degree to which they may provide service.
(c) The board shall consider the engineer's report and may
make changes in the report and note them in the minutes.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.441. ELECTION ORDER. (a) After the engineer's
report is filed and approved, the board may order an election in the
district to authorize the issuance of bonds.
(b) In the order, the board shall estimate the total amount
of money needed to cover the items listed in Section 58.439 of this
code.
(c) The election order shall state:
(1) the proposed maximum interest rate on the bonds;
(2) the maximum maturity date of the bonds;
(3) the time and places for holding the election; and
(4) the names of the election officers.
(d) The election order shall be entered in the minutes of
the board.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.443. BALLOTS. (a) The proposition to be voted on
shall be the issuance of the total amount of bonds covered by the
engineer's estimate plus additional estimates made by the board.
(b) The ballots shall be printed to provide for voting for
or against: "The issuance of bonds and the levy of taxes to pay for
the bonds."
(c) If a contract is proposed with the United States under
the federal reclamation laws, the ballots shall be printed to
provide for voting for or against: "The contract with the United
States and the levy of a tax to pay the contract."
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.444. VOTE AT ELECTION. (a) Bonds of a district
operating under the provisions of Article III, Section 52, of the
Texas Constitution, may be issued only with the approval of
two-thirds of the electors of the district participating in the
election.
(b) In a district organized under the provisions of Article
XVI, Section 59, of the Texas Constitution, bonds may be issued or
indebtedness created only with the approval of a majority of the
electors of the district participating in the election.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.445. ORDER TO ISSUE BONDS OR EXECUTE
CONTRACT. After the vote is canvassed and the results are declared
to be favorable to the proposition, the board shall make and enter
an order directing the issuance of the bonds or the execution of a
contract with the United States. The bonds or contract shall be in
a sufficient amount to pay for the improvements together with all
necessary incidental expenses, but the amount may not be more than
the amount specified in the election order and notice of election.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.446. RECORD OF BOND PROCEEDINGS SUBMITTED TO
ATTORNEY GENERAL. (a) After a district issues bonds other than
preliminary bonds, but before they are sold, the record showing all
the proceedings in the creation of the district and the issuance of
the bonds shall be filed in the office of the attorney general.
(b) The attorney general shall examine the record and give
his opinion on it.
(c) The record may be presented to the attorney general
before the bonds are printed, and the bonds may be executed after
the record is completed.
(d) After the record is approved, the bonds shall be issued
or duly executed.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.447. APPROVAL AND REGISTRATION OF
BONDS. (a) After the bonds are issued and executed, they shall be
submitted to the attorney general for approval.
(b) If the attorney general finds that the bonds are issued
according to law and are valid, binding obligations of the
district, he shall officially certify the bonds and execute a
certificate, which shall be filed with the comptroller and recorded
in the book kept for that purpose.
(c) The bonds may not be registered with the comptroller
until 20 days after the day of the election authorizing the issuance
of the bonds.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.448. VALIDITY OF BONDS. After the bonds are
approved by the attorney general and registered by the comptroller,
they shall be held to be valid, binding obligations of the district
in any suit testing their validity. Any person interested in the
bonds may file a suit before the bonds are registered to test the
validity, but may not bring suit to test validity after the bonds
are registered.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.449. CONDITIONS OF BONDS. (a) The bonds may be
issued to mature at the end of a term of years or to mature serially
at any date which is not later than the maximum maturity date stated
in the election order.
(b) The bonds may be issued at any rate of interest which is
not more than the rate of interest set in the election order.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.450. FORM OF BONDS. (a) The bonds shall be issued
in the name of the district and shall be signed by the president and
attested by the secretary, with the seal of the district attached.
(b) The bonds shall be issued in denominations of $100 or
multiples of $100 and shall be payable annually or semiannually.
(c) The board shall determine and include in the bonds the
time, place, manner, and condition of payment of principal and
interest on the bonds, but none of the bonds may be made payable
more than 40 years from their date.
(d) The lien for payments due to the United States under a
contract that was not accompanied by a deposit of bonds with the
United States shall be a preferred lien to that of any issue of
bonds of any series or any issue of bonds subsequent to the date of
the contract.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.453. VALIDATION SUIT. (a) A district may file a
suit to determine the validity of the creation of the district and
the bonds.
(b) If requested by the Secretary of the Interior, the
district shall file a suit to validate a contract made with the
United States.
(c) If a validation suit is filed, the bonds do not have to
be approved by the attorney general.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.454. EFFECT OF PRIOR REGISTRATION. If bonds are
approved by the attorney general and registered by the comptroller
before a validation suit is filed, the filing of the suit cancels
the prior registration.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.455. PROCEDURE IN VALIDATION SUIT. (a) A
validation suit shall be brought by the district in the district
court of any county in which all or part of the district is located
or in a district court in Travis County.
(b) The suit shall be in the nature of a proceeding in rem.
(c) Any person who is interested in the suit may intervene
and file an answer.
(d) The issue shall be tried and determined by the court and
judgment shall be entered on the findings.
(e) Repealed by Acts 1981, 67th Leg., p. 2646, ch. 707, §
4(53), eff. Aug. 31, 1981.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1981, 67th Leg., p. 2646, ch. 707, §
4(53), eff. Aug. 31, 1981.
§ 58.456. NOTICE OF VALIDATION SUIT. (a) To obtain
jurisdiction of all parties to the validation suit, a general
notice shall be published.
(b) The notice shall be published once a week for at least
two consecutive weeks before the term of the court at which the
notice is to be returned. The notice shall be published in a
newspaper with general circulation in the county or counties in
which the district is located, but if no newspaper is published
inside the district, the notice shall be published in a newspaper in
the nearest county in which a paper is published.
(c) Notice also shall be served on the attorney general in
the manner provided in civil suits.
(d) The attorney general may waive notice if he is furnished
a full transcript of the proceedings held in connection with the
creation of the district and the issuance of the bonds or held in
connection with the authorization of a contract with the United
States. A copy of the contract with the United States also must be
furnished.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.457. DUTIES OF ATTORNEY GENERAL IN VALIDATION
SUIT. (a) The attorney general shall examine all the proceedings
and shall require any further evidence and make any further
examination which he considers advisable.
(b) The attorney general then shall file an answer to the
suit, submitting the issue of whether the proceedings are valid and
the bonds are legal and binding obligations of the district, or
whether the contract with the United States is legal and binding on
the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.458. JUDGMENT IN VALIDATION SUIT. (a) After the
trial of the validation suit, if the judgment of the court is
adverse to the district on any issue, the district may make an
exception and point out the error, and the error may be corrected by
the judge in the manner directed by the court.
(b) The judgment shall be rendered showing that the
corrections have been made and that the bonds or the contract with
the United States are binding obligations of the district.
(c) After the judgment is entered, it is res judicata in all
cases which may arise in connection with:
(1) the collection of the bonds or their interests;
(2) any taxes levied to pay charges or any money
required to pay a contract with the United States; and
(3) all matters relating to the organization and
validity of the district or the validity of the bonds or contract.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.459. EFFECT OF VALIDATION SUIT. (a) After a final
judgment is rendered in the validation suit, the bonds or the
contract with the United States shall be incontestable.
(b) No suit may be brought in any court of this state to
contest or enjoin the validity of the creation of the district, any
bonds which are issued, any contract with the United States, or the
authorization of a contract with the United States, except in the
name of the State of Texas by the attorney general on his own motion
or on the motion of any party affected on good cause shown.
(c) The attorney general may not file or prosecute such a
suit unless it is based on allegations of fraud disclosed or found
after the final judgment in the validation suit was rendered.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.460. CERTIFIED COPY OF DECREE. (a) After the
judgment of the district court is entered, the clerk of the court
shall make a certified copy of the decree which shall be filed with
the comptroller. The comptroller shall record the decree in the
book kept for that purpose.
(b) The certified copy of the decree or a certified copy of
the comptroller's record of the decree shall be received in
evidence in any suit which may affect the validity of the
organization of the district or the validity of the bonds or the
contract and shall be conclusive evidence of validity.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.461. REGISTRATION OF BONDS AND DECREE. On the
presentation of the bonds together with a certified copy of the
decree of the court, the comptroller shall register the bonds in a
book kept for that purpose. The comptroller shall attach to each
bond a certificate stating that the court's decree has been filed
and recorded in his office and shall sign the certificate and attach
his official seal.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.462. SALE OF BONDS. (a) After the bonds are
issued by the district, the board shall sell the bonds on the best
terms and for the best price possible.
(b) The board shall pay the proceeds from the sale of the
bonds to the district depository.
(c) The district may exchange bonds for property acquired by
purchase or to pay the contract price of work done for the use and
benefit of the district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.463. TAX LEVY. (a) At the time the bonds are
voted, the board shall levy a tax on all property inside the
district subject to district taxation in a sufficient amount to
redeem and discharge the bonds at maturity.
(b) The board annually shall levy or have assessed and
collected taxes on all property inside the district in a sufficient
amount to pay installments and interest as they become due.
(c) If a contract is made with the United States, the board
annually shall levy taxes on property inside the district in a
sufficient amount to pay installments and interest as they become
due.
(d) The board may issue the bonds in serial form or payable
in installments, and the tax levy shall be sufficient if it provides
an amount sufficient to pay the interest on the bonds, the
proportionate amount of the principal of the next maturing bond,
and the expenses of assessing and collecting the taxes for that
year.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.464. ADJUSTMENT OF TAX LEVY. (a) The board may
from time to time increase or diminish the tax to adjust it for the
taxable values of the property subject to taxation by the district
and the amount required to be collected.
(b) The board shall raise an amount sufficient to pay the
annual interest of and principal on all outstanding bonds.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977. Amended by Acts 1979, 66th Leg., p. 2321, ch. 841, §
4(r), eff. Jan. 1, 1982.
§ 58.466. INTEREST AND SINKING FUND. (a) The district
shall have an interest and sinking fund which shall include all
taxes collected under this chapter.
(b) Money in the interest and sinking fund may be used only:
(1) to pay principal and interest on the bonds;
(2) to defray the expenses of assessing and collecting
the taxes; and
(3) to pay principal and interest due under a contract
with the United States if bonds have not been deposited with the
United States.
(c) Money in the fund shall be paid out of the fund on
warrants by order of the board as provided in this chapter.
(d) The depository shall receive and cancel each interest
coupon and bond as it is paid and shall deliver it to the board to be
recorded, cancelled, and destroyed.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.467. INVESTMENT OF SINKING FUND. (a) The board
may invest any portion of the sinking fund of the district in bonds
of the United States, the state, any county or city in the state,
any irrigation or water improvement district, school district, or
other tax bonds issued under the laws of the state.
(b) The funds may be invested if the bonds to be paid with
them do not mature within three years from the time the investment
is made and if it is necessary to preserve the best interest of the
district.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.468. REFUNDING BONDS. (a) The district may
refund any bonds issued by it by issuing new bonds.
(b) Refunding bonds may be issued only if the old bonds are
taken in exchange at their face value or less or new bonds can be
sold at a premium and the old bonds retired without loss to the
district.
(c) The comptroller may not register the refunding bonds
until the old bonds for which the refunding bonds are being issued
are presented to him for cancellation or until a valid contract
providing for the purchase or exchange of the old bonds is executed
and a copy filed in his office.
(d) The comptroller shall keep the refunding bonds until the
old bonds are presented to him for exchange or payment, and if the
old bonds are presented for payment, the district shall pay them
before the refunding bonds are registered.
Added by Acts 1977, 65th Leg., p. 1537, ch. 627, § 1, eff. Aug.
29, 1977.
§ 58.469. LIMITATION OF AUTHORITY TO INCUR DEBT AND
ISSUE BONDS. (a) For the benefit of purchasers or holders of
bonds to be issued or
