WATER CODE
CHAPTER 59. REGIONAL DISTRICTS
SUBCHAPTER A. DISTRICT CREATION
§ 59.001. PURPOSE AND APPLICATION. (a) The purpose of
this chapter is to authorize creation and operation of regional
districts for water, sanitary sewer, drainage, and municipal solid
waste disposal under Section 59, Article XVI, Texas Constitution.
(b) This chapter applies only in counties with a population
of at least 3.3 million or bordering a county with a population of
at least 3.3 million.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 669, § 149, eff. Sept. 1,
2001.
§ 59.002. DEFINITIONS. (a) In this chapter:
(1) "District" means a district created or operating
under this chapter.
(2) "Municipal district" means a district created
under general law or a special Act operating under Chapter 51, 53,
or 54.
(3) "Bond" means bonds, coupons, notes, or any other
evidence of indebtedness.
(b) Other terms not defined by this chapter have the same
meaning assigned to those terms by Section 49.001.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.003. CREATION OF DISTRICT. (a) A district may be
created by:
(1) The boards of at least 20 percent of the total
number of municipal districts to be included in the proposed
district may jointly petition the commission for creation of a
district. The petition must describe the territory to be included
in the district and must include resolutions endorsing creation of
the district adopted by each municipal district to be included in
the district.
(2) The owner or owners of 2,000 or more contiguous
acres may petition the commission for creation of a district.
(3) The commissioners courts of one or more counties
may petition the commission for creation of a district in any
territory within the county.
(4) The governing body of any city may petition the
commission for creation of a district in any territory within the
city or its extraterritorial jurisdiction.
(b) Petitions for the creation of a district must:
(1) describe the boundaries of the proposed district
by metes and bounds that adequately and completely circumscribe the
property so that there is complete closure of the property or by lot
and block numbers if there is a recorded map or plat or subdivision
survey of the area;
(2) state the general nature of the work proposed to be
done, the necessity of the work, and the cost of any projects of the
district as estimated by those filing the petition;
(3) state the name of each petitioner; and
(4) include a name of the district generally
descriptive of the locale of the district followed by the words
"Regional District."
(c) A proposed district may not have the same name as any
other district in the state.
(d) Section 54.013 applies to the composition of districts
created under this chapter.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.004. PURPOSES OF DISTRICT. A district shall be
created:
(1) to purchase, own, hold, lease, and otherwise
acquire sources of water supply;
(2) to build, operate, and maintain facilities for the
transportation of water;
(3) to sell water to cities, to political subdivisions
of this state, to water supply corporations, to private business
entities, and to individuals;
(4) to purchase, own, hold, lease, and otherwise
acquire equipment and mechanisms necessary for sanitary sewer and
wastewater treatment;
(5) to build, operate, and maintain facilities for
sanitary sewer and wastewater treatment;
(6) to transport and treat sanitary sewer and
wastewater effluent of cities and political subdivisions of this
state and for private business entities or individuals;
(7) to purchase, own, hold, lease, and otherwise
acquire equipment and mechanisms for the drainage of storm water
and floodwater; and
(8) for the purposes outlined in Section 54.012.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.005. MATCHING FUNDS GUARANTEES. If the Texas Water
Development Board requires that matching funds be provided as a
condition for receiving a loan or grant from the Texas Water
Development Board from research and planning funds, the matching
funds may not be provided through a guarantee of matching funds by
any individual who has a financial interest in the regional
district or who will receive any direct financial benefit from a
regional district project.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.006. CONSENT OF CITY. (a) Land in the corporate
limits of a city or in the extraterritorial jurisdiction of a city
may not be included in a district unless the city grants its written
consent by resolution or ordinance to the inclusion of the land in
the district.
(b) If the governing body of a city fails or refuses to grant
permission for the inclusion of land in its extraterritorial
jurisdiction in a district within 120 days after receipt of a
written request, the person or entity desiring to create the
district may petition the governing body of the city to make
available the water, sewer, or drainage service contemplated to be
provided by the district.
(c) Failure of the governing body of the city and the
requesting district to execute a mutually agreeable contract
providing for the service requested within six months after receipt
of a request for consent constitutes authorization for the
inclusion of land in the district under this section.
Authorization for the inclusion of the land in the district under
this section means only authorization to initiate proceedings to
include the land in the district as otherwise provided by this
chapter.
(d) Sections 54.016(e), (f), (g), and (h) apply under this
chapter.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.007. GRANTING OR REFUSING PETITION; EXCLUSION OF
TERRITORY. (a) If the commission finds after considering the
petition that the petition conforms to the requirements of this
chapter and that the creation of the district would be of benefit to
the territory to be included in the district, the commission shall
issue an order granting the petition for creation. If the
commission finds that part of the territory included in the
proposed district will not benefit from the creation of the
district, the commission shall exclude that territory from the
proposed district and redefine the proposed district's boundaries
accordingly.
(b) If the commission finds that the petition does not
conform to the requirements of this chapter or that the proposed
projects are not of benefit to the territory in the proposed
district, the commission shall issue an order either denying the
petition or requiring petitioners to amend their petition.
(c) A copy of the order of the commission granting or
denying a petition shall be mailed to each city having
extraterritorial jurisdiction in the county or counties in which
the district is to be located that has requested notice of hearings
as provided by Section 54.019.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1070, § 39, eff. Sept. 1,
1997.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
§ 59.021. DIRECTORS. (a) The commission shall appoint
temporary directors who shall serve until permanent directors are
elected.
(b) A petition requesting creation filed in accordance with
Section 59.006 may provide that directors be elected by precinct as
provided by Subsection (h).
(c) The board of directors is composed of five members
unless the petition requesting creation of the district requests
and the commission approves a board that consists of seven members.
(d) Permanent directors shall be elected in accordance with
Chapter 49.
(e) If the petition for creation has requested the election
of seven directors as provided by Subsection (c), unless otherwise
agreed, the three directors elected who received the fewest number
of votes, whether their election is by precinct or at large, shall
serve until the next directors election following the confirmation
election and the four who received the highest number of votes shall
serve until the second directors election after the confirmation
election.
(f) After the creation of the district, the persons or
entities that petitioned for creation or 50 qualified voters of the
district may file a petition with the commission requesting to
expand the district's board to seven members. If the commission
grants the petition, the commission shall appoint two temporary
directors. One temporary director shall serve until the next
directors election and one shall serve until the next succeeding
directors election. At each election one director shall be elected
to serve for a four-year term.
(g) If the board of directors of the district is expanded to
seven members, four directors shall constitute a quorum and a
concurrence of four directors is necessary in all matters
pertaining to the business of the district.
(h) A petition for the creation of a district may request
that the board be elected to represent a geographic area. If the
petition requesting creation of the district is granted, the
commission shall establish precincts from which the directors are
to be elected. In establishing the precincts the commission shall
attempt to have directors represent geographic areas with equal
numbers of people and shall comply with the federal Voting Rights
Act of 1965 (42 U.S.C. Sections 1971, 1973 et seq.). Thereafter,
the board of directors of the district shall revise the precincts
from time to time to cause them to comply with the provisions of
this subsection.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.022. ABILITY TO SET RATES. The district may charge
rates to persons and entities located outside the district's
boundaries on terms, rates, and charges the board of directors may
determine to be advisable. In setting rates for out-of-district
customers, the board shall set rates sufficient to enable it to meet
operation and maintenance expenses and to pay the principal of and
interest on debt issued in connection with providing service and to
provide a reasonable reserve for replacements to the district. In
setting rates, the district may take into consideration past
operation and debt service expenses.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.023. ISSUANCE OF BONDS. The district may issue
bonds for the purpose of purchasing, constructing, acquiring,
owning, operating, repairing, improving, or extending any district
works, improvements, facilities, plants, equipment, and appliances
needed to accomplish the purposes of the district, including works,
improvements, facilities, plants, equipment, and appliances needed
to provide a waterworks system, sanitary sewer system, storm sewer
system, solid waste disposal system, and parks and recreational
facilities. Prior to issuing bonds or other obligations, a
confirmation election must be held in accordance with Chapter 49,
and a majority of voters must approve the establishment of the
district.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.024. EXCLUSION OF CERTAIN MUNICIPAL
DISTRICTS. (a) A municipal district may be excluded from the
district as provided by this section.
(b) To be excluded, the board of directors of the municipal
district may adopt a resolution requesting exclusion by a majority
vote of its board of directors and shall file the petition with the
directors of the proposed district before the first confirmation
election.
(c) At the time of the district's confirmation election, a
separate voting precinct shall be used for the qualified voters in
each municipal district that has filed a petition requesting
exclusion. The votes in each precinct shall be tallied separately
to determine whether that municipal district will be excluded from
the district boundaries.
(d) If a majority of the votes cast in a municipal district
requesting exclusion vote against confirmation of the district, the
votes cast in the confirmation election shall not be counted for the
confirmation election, bond election, or maintenance tax election,
and that municipal district must be excluded from the boundaries of
the district by the board of directors of the district at the time
the results of the election are canvassed.
(e) After a confirmation election at which the district is
authorized to be created, the board of directors of the district
shall adopt an order redefining the boundaries of the district to
exclude those municipal districts petitioning for exclusion that
have voted not to confirm creation of the district.
(f) Before the creation hearing, any municipal district
located within the proposed district may petition the commission
for a separate voting precinct to be used within the boundaries of
the petitioning district at the time of the district's confirmation
election. If the commission grants the petition requesting a
separate voting precinct, Subsections (c) through (e) apply.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.025. CONFIRMATION ELECTION. (a) Before a
district may be created pursuant to a petition granted by the
commission, a confirmation election must be held within the
boundaries of the proposed district.
(b) The directors appointed by the commission shall call and
hold the confirmation election in the manner provided for
conducting elections under Chapter 49. The provisions of those
sections relating to a directors election do not apply to an
election held under this section.
(c) If the creation of the district is defeated, subsequent
confirmation elections may not be held to confirm the creation of
the district.
(d) A bond election, maintenance tax election, and any other
election may be held at the same time and in conjunction with a
confirmation election.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
SUBCHAPTER C. ADDING OR EXCLUDING TERRITORY; DISSOLUTION
§ 59.051. ADDING LAND BY PETITION OF LESS THAN ALL
LANDOWNERS. In addition to the method of adding land to a district
described in Section 59.052, defined areas of land, regardless of
whether they are contiguous to the district, may be annexed to the
district in the manner provided in Chapter 49.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.052. FILING OF PETITION. A petition requesting the
annexation of a defined area that is signed by a majority in value
of the owners of land in the defined area, as shown by the tax rolls
of the county or counties in which that area is located, that is
signed by 50 landowners if the number of landowners is more than 50,
that is signed by the single landowner of 2,000 or more acres of
land in the area, or that is signed by a majority of the governing
body of a municipal district, a county, or a city requesting
annexation shall be filed with the secretary of the board.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.053. DISSOLUTION OF DISTRICT BEFORE ISSUANCE OF
BONDS. (a) If the board considers it advisable before the
issuance of any bonds, the board may dissolve the district and
liquidate the affairs of the district as provided by Sections
54.734 through 54.738.
(b) If a majority of the board finds at any time before the
authorization of bonds that the proposed district and its proposed
activities are for any reason impracticable or apparently cannot be
successfully and beneficially accomplished, the board may issue
notice of a hearing on a proposal to dissolve the district.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.054. JUDICIAL REVIEW OF BOARD'S ORDER. The board's
order to dissolve the district may be judicially reviewed as
provided in Chapter 49.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
SUBCHAPTER D. MISCELLANEOUS
§ 59.071. ANNEXATION OR INCORPORATION BY CITY. (a) If
a city annexes all or any part of the territory within a district,
or incorporates all or any part of any territory within a district,
the city shall succeed to the powers, duties, assets, and
obligations of the district as provided by this chapter.
(b) On annexation of any part of the territory of a district
by a city or incorporation by a city of any part of the territory of
a district, the city shall assume a pro rata share of all debt of the
district payable in whole or in part by ad valorem taxes incurred
for water, sewer, or drainage purposes or any combination of the
three purposes. The percentage of the assumption shall be
determined by multiplying the total debt of the district payable in
whole or in part from taxes incurred for the stated purposes by a
fraction, the numerator of which is the assessed value of the
property to be annexed or incorporated based on the most recent
certified county property tax rolls at the time of annexation or
incorporation and the denominator of which is the total assessed
value of the property of the district based on the most recent
certified county property tax rolls at the time of annexation or
incorporation.
(c) After annexation by a city of a portion of the territory
of a district or incorporation over any part of the territory of a
district, the district may not levy taxes on that territory, and the
territory is no longer considered a part of the district for any
purpose.
(d) If any district's debt payable in whole or in part from
ad valorem taxes is assumed by a city, the governing body of the
city shall levy and cause to be collected taxes on all taxable
property within the city or provide other funds sufficient to pay
the city's pro rata share of the principal of and interest on that
debt as it becomes due and payable.
(e) If a city annexes or incorporates the entire territory
of the district, the district shall be dissolved in accordance with
Sections 43.074, 43.075, and 43.081, Local Government Code, if the
district is located in one city or Sections 43.076 through 43.079,
Local Government Code, if the district is located in more than one
city.
(f) Section 43.071, Local Government Code, does not apply to
the annexation of a district created pursuant to this chapter.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
§ 59.072. OTHER LAWS. (a) This chapter prevails over
any other law in conflict with or inconsistent with this chapter.
(b) Except as specifically provided by this chapter,
Chapter 49 and Sections 54.018, 54.019(a), (b), (c), and (d),
54.020, 54.021, 54.023, 54.024, 54.201, 54.205, 54.207, 54.208,
54.502 through 54.505, 54.507(b) and (c), 54.510 through 54.512,
54.514, 54.515, 54.518, 54.520, 54.521, 54.601 through 54.604, and
54.735 through 54.737 apply under this chapter.
(c) Section 54.019(e) does not apply to a district governed
by this chapter.
Added by Acts 1995, 74th Leg., ch. 715, § 3, eff. Sept. 1, 1995.
