CHAPTER 7201. AGUA SPECIAL UTILITY DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE C. SPECIAL UTILITY DISTRICTS
CHAPTER 7201. AGUA SPECIAL UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7201.001. DEFINITIONS. Unless the context otherwise
requires, in this chapter:
(1) "Board" means the board of directors of the district.
(2) "Corporation" means the La Joya Water Supply Corporation.
(3) "Director" means a member of the board.
(4) "District" means the Agua Special Utility District.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.02, eff. June 16, 2007.
Sec. 7201.002. NATURE OF CORPORATION AND DISTRICT. (a) The
corporation is a water supply corporation in Hidalgo and Starr
Counties created under and essential to accomplish the purposes
of Section 59, Article XVI, Texas Constitution, and operating in
accordance with Chapter 67, Water Code.
(b) The district is:
(1) a special utility district in Hidalgo and Starr Counties
created under and essential to accomplish the purposes of Section
59, Article XVI, Texas Constitution, and operating in accordance
with Chapters 49 and 65, Water Code;
(2) a retail public utility as defined by Section 13.002, Water
Code; and
(3) the successor in interest to the corporation.
(c) The corporation shall be dissolved and succeeded without
interruption by the district as provided by Subchapter A1.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.03, eff. June 16, 2007.
Sec. 7201.003. APPLICABILITY OF OTHER LAW. Except as otherwise
provided by this chapter, Chapters 49 and 65, Water Code,
including Sections 49.211(a) and 65.201(a), Water Code, apply to
the district.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.004. REGULATORY CONFLICTS. (a) If a municipality
asserts regulatory authority over any geographic area in the
district and a municipal regulation applicable to that geographic
area conflicts with a rule of the district, the regulation of the
municipality prevails.
(b) This section does not apply to:
(1) rules or regulations concerning potable water quality
standards; or
(2) conflicts relating to service areas or certificates issued
to the corporation or district by the Texas Commission on
Environmental Quality.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.005. INITIAL DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 9.12 of the Act
enacted by the 80th Legislature, Regular Session, 2007, amending
this subsection.
(b) The boundaries and field notes contained in Section 9.12 of
the Act enacted by the 80th Legislature, Regular Session, 2007,
amending this subsection form a closure. A mistake made in the
field notes or in copying the field notes in the legislative
process does not affect:
(1) the organization, existence, or validity of the district;
(2) the right of the district to issue bonds; or
(3) the legality or operation of the district.
(c) District boundaries may be modified in accordance with
Chapters 13 and 49, Water Code, except that the boundaries must
include all territory in any area included under a certificate of
convenience and necessity issued by the Texas Commission on
Environmental Quality to the district.
(d) The territory of the district does not include and the
district does not have jurisdiction over land that has never been
in the service area of the corporation regardless of any
erroneous inclusion of that land in the boundaries and field
notes in Section 9.12 of the Act enacted by the 80th Legislature,
Regular Session, 2007, amending this section.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.04, eff. June 16, 2007.
SUBCHAPTER A1. TEMPORARY PROVISIONS
For expiration of this subchapter, see Sec. 7201.022
Sec. 7201.021. TRANSFER OF ASSETS; DISSOLUTION. (a) Except as
provided by this subsection, after the appointment of initial
directors under Section 7201.051, the receiver for the
corporation shall transfer the assets, debts, and contractual
rights and obligations of the corporation, including all legal
claims against the corporation in effect on the date of the
transfer, to the district and provide notices and make recordings
of the transfer required by the Water Code and general law. If
the transfer of any debt requires the permission of the lender,
the receiver shall initiate proceedings to obtain that
permission.
(b) In accordance with the orders of the receivership court and
not later than the 30th day after the date of the transfer under
Subsection (a), the receiver for the corporation shall commence
dissolution proceedings of the corporation.
(c) On dissolution of the corporation, Certificates of
Convenience and Necessity Nos. 10559 and 20785 are considered to
be held by the district.
(d) The receiver for the corporation shall notify the Texas
Commission on Environmental Quality of the dissolution of the
corporation and its succession in interest by the district in
order to effect the transfer of Certificates of Convenience and
Necessity Nos. 10559 and 20785 to the district.
(e) On receipt of notice under Subsection (d), the Texas
Commission on Environmental Quality shall note in its records
that Certificates of Convenience and Necessity Nos. 10559 and
20785 are held by the district. The Texas Commission on
Environmental Quality shall, as a ministerial act, transfer the
certificates to the district without further application, notice,
or hearing. A person, party, or entity does not have any right
of protest, objection, or administrative review of the transfer
prescribed by this section.
(f) After the Texas Commission on Environmental Quality takes
the action required by Subsection (e), the court shall terminate
the receivership.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.05, eff. June 16, 2007.
Sec. 7201.022. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2012.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.06, eff. June 16, 2007.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 7201.051. APPOINTMENT OF INITIAL DIRECTORS. (a) As soon
as practicable after the effective date of the Act enacted by the
80th Legislature, Regular Session, 2007, amending this section,
seven initial directors shall be appointed as provided by this
section.
(b) To be eligible to be appointed as an initial director, an
individual must meet the same requirements as a candidate for an
elected position as director under Section 7201.052. The initial
directors shall be appointed as follows:
(1) one director to represent the residents of the district in
the City of Mission appointed by the governing body of that city;
(2) one director to represent the residents of the district in
the City of Palmview appointed by the governing body of that
city;
(3) one director to represent the residents of the district in
the City of Penitas appointed by the governing body of that city;
(4) one director to represent the residents of the district in
the City of Sullivan City appointed by the governing body of that
city; and
(5) three directors to represent the residents of the district
outside the municipalities listed in Subdivisions (1)-(4)
appointed by the Hidalgo County Commissioners Court.
(c) An initial director serves a term that expires on June 1 of
the year in which the director's successor is elected under
Section 7201.052.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.07, eff. June 16, 2007.
Sec. 7201.0512. INITIAL BOARD TRAINING. (a) Not later than the
60th day after the first date on which all of the initial
directors have been appointed, each initial director shall
complete at least 12 hours of training on district management and
compliance with laws applicable to the district as determined by
the receiver for the corporation.
(b) The district shall reimburse an initial director for the
reasonable expenses incurred by the director in attending the
training.
Added by Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.08, eff. June 16, 2007.
Sec. 7201.0513. EDUCATION PROGRAM. (a) Before the first
election of directors under Section 7201.052, the initial board
shall establish a program of education for directors that
includes information on:
(1) the history of the district;
(2) the district's enabling legislation;
(3) Chapters 49 and 65, Water Code, and other laws that apply to
the district, including the requirements of the:
(A) open meetings law, Chapter 551, Government Code; and
(B) public information law, Chapter 552, Government Code;
(4) relevant legal developments related to water district
governance;
(5) the duties and responsibilities of the board;
(6) the requirements of conflict of interest laws and other laws
relating to public officials; and
(7) any applicable ethics policies adopted by the Texas
Commission on Environmental Quality or the Texas Ethics
Commission.
(b) The district shall pay any costs associated with the
development of the education program from district revenue.
(c) The education program may include training provided by an
organization offering courses that have been approved by the
Texas Commission on Environmental Quality.
(d) The board may adopt bylaws modifying the education program
as necessary to meet district needs.
Added by Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.08, eff. June 16, 2007.
Sec. 7201.052. BOARD OF DIRECTORS. (a) Except as provided by
Subsection (l), the district shall be governed by a board of
seven directors, elected as follows:
(1) one director elected by the voters of the part of the City
of Mission inside the district to represent that part of the
city;
(2) one director elected by the voters of the City of Palmview
to represent that city;
(3) one director elected by the voters of the City of Penitas to
represent that city;
(4) one director elected by the voters of the City of Sullivan
City to represent that city; and
(5) three directors elected at-large to numbered positions on
the board by the district voters who do not reside in any of the
municipalities listed in Subdivisions (1)-(4) to represent the
part of the district that is not included in those
municipalities, unless the number of at-large directors is
increased under Subsection (l).
(b) A candidate for one of the numbered director positions:
(1) must reside in the part of the service area of the district
that is not included in any of the municipalities listed in
Subsections (a)(1)-(4); and
(2) must be eligible to hold office under Section 141.001,
Election Code.
(c) A candidate for one of the director positions representing a
municipality listed in Subsection (a)(1), (2), (3), or (4):
(1) must reside in the municipality the candidate seeks to
represent; and
(2) must be eligible to hold office under Section 141.001,
Election Code.
(d) It is the policy of the district that the directors shall
represent and reside in as broad a cross-section of the
geographic area of the district as possible.
(e) The district shall fill a vacancy on the board in accordance
with Section 49.105, Water Code.
(f) Except for the initial directors appointed under Section
7201.051 or elected at the first election under Subsection (g),
directors serve staggered terms of four years.
(g) On the uniform election date in May 2008, or in May 2010, if
the election is postponed under Subsection (h), the district
shall hold an election to elect seven directors. On the uniform
election date in May of each even-numbered year after that date,
the district shall hold an election to elect the appropriate
number of directors.
(h) The initial board by order may postpone until the uniform
election date in May 2010 the first election for directors under
Subsection (g) if the initial board determines that there is not
sufficient time to comply with the requirements of law and to
order the election of directors to be held on the first uniform
election date specified by that subsection.
(i) The directors elected at the first election under Subsection
(g) shall cast lots to determine which three directors shall
serve terms expiring June 1 of the first even-numbered year after
the year in which the directors are elected and which four
directors shall serve terms expiring June 1 of the second
even-numbered year after the year in which the directors are
elected.
(j) A director may not serve consecutive terms.
(k) A person who has served as a member of the board of
directors of the corporation is not eligible to serve as a
district director.
(l) If, before the expiration of the term of a director elected
to represent a municipality under Subsection (a)(1), (2), (3), or
(4), the district determines that all of the incorporated
territory of the municipality is outside the boundaries of the
district, the position immediately becomes an at-large numbered
position to be filled at the next general election of the
district in accordance with Subsections (a)(5) and (b).
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.09, eff. June 16, 2007.
Sec. 7201.053. DISTRICT TREASURER. (a) The board shall elect
from among its members one director to serve as district
treasurer.
(b) The district treasurer shall comply with the training
requirements provided by Section 49.1571, Water Code, for an
investment officer of a district.
Added by Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.10, eff. June 16, 2007.
Sec. 7201.054. EDUCATION FOR DIRECTORS. (a) Except for an
initial director whose term expires in 2008, each director shall
complete the education program established under Section
7201.0513 before the first anniversary of the date on which the
director was appointed or elected.
(b) The district shall reimburse a director for the reasonable
expenses incurred by the director in attending the education
program.
(c) A director who is elected to serve a subsequent term shall
fulfill the education requirements specified by district bylaws.
Added by Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.10, eff. June 16, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 7201.101. GENERAL POWERS AND DUTIES. Except as otherwise
provided by this chapter, the district has all of the rights,
powers, privileges, authority, functions, and duties provided by
the general law of this state, including Chapters 49 and 65,
Water Code, applicable to districts created under Section 59,
Article XVI, Texas Constitution.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.102. PROVISION OF SERVICE. The district shall at all
times operate and construct necessary improvements within the
certificated areas established by the commission to provide
uninterrupted, continuous, and adequate service to existing and
future customers for water, sewer, and contract services.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.103. INTERLOCAL CONTRACTS. In accordance with Chapter
791, Government Code, the district and the Rio Grande Regional
Water Authority may enter into a contract under which the Rio
Grande Regional Water Authority may provide administrative or any
other contract activities for or with the district. The district
may enter into interlocal cooperation contracts with any public
or private entity, request any necessary regulatory approval
required, and charge fees and rates adequate to generate revenue
sufficient to cover all expenses of the district based on
cost-of-service principles. For purposes of Chapter 791,
Government Code, performance under a contract is a governmental
function or service.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
SUBCHAPTER D. OPERATING PROVISIONS
Sec. 7201.201. AUDIT OF DISTRICT. (a) Subchapter G, Chapter
49, Water Code, applies to the district.
(b) An individual licensed by the state as a certified public
accountant with not less than five years of government accounting
experience shall perform the audit required by Section 49.191,
Water Code.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.202. RECORDS OF DISTRICT. The district shall comply
with all rules and regulations pertaining to records
preservation, retention, and destruction promulgated by the Texas
State Library and Archives Commission under Chapter 441,
Government Code, as made applicable to water districts and
utilities.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.203. MAINTAINING NECESSARY RECORDS. The district
shall maintain necessary records and follow cost-of-service
principles with respect to provision of retail public water or
sewer service or any other service authorized by Chapter 49 or
65, Water Code, or an interlocal contract entered into in
accordance with Chapter 791, Government Code.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.204. NEWSLETTER, WEBSITE, AND ANNUAL FINANCIAL
INFORMATION. The district shall maintain an Internet website
with current information concerning agendas, minutes, policies,
monthly financial information concerning revenues and expenses,
and quarterly summaries. The district shall provide information,
including summary financial information based on the preceding
year's annual audit, to district customers at an annual meeting.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.205. DISCONNECTION OF SERVICE AND CUSTOMER FEES. (a)
The district may not disconnect service of a customer for late
payment before the 31st day after the date the district notifies
the customer of the overdue payment.
(b) After a disconnection caused by the customer's late payment,
the district may not charge a customer a fee for restoring or
reinstalling service that exceeds $25 or twice the amount of the
late payment owed, whichever is less.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Sec. 7201.206. RATES AND FEES FOR SERVICES. (a) The district,
in connection with water or sewer retail public utility services,
shall establish lifeline, senior citizen, or minimum consumption
level rates for services. The rate impact of such services shall
be allocated on the basis of costs of services to achieve
conservation principles, while securing necessary reserves for
the payment of operating expenses, sinking funds, principal,
interest, and debt coverage factors, and any other objective
established by the district's annual budget.
(b) Chapter 395, Local Government Code, does not apply to any
fee, charge, or assessment that, before the corporation's
dissolution and conversion to a district, is adopted by the
receiver for the purpose of generating revenue to fund or recoup
the costs of capital improvements or facility expansions
necessitated by and attributable to new developments.
(c) Notwithstanding Subsection (b), beginning on December 31,
2009, the district may not impose any fee, charge, or assessment
that, before the corporation's dissolution and conversion to a
district, is adopted by the receiver for the purpose of
generating revenue to fund or recoup the costs of capital
improvements or facility expansions necessitated by and
attributable to new developments unless the district readopts the
fee, charge, or assessment or adopts a new fee, charge, or
assessment in accordance with Chapter 395, Local Government Code.
This subsection does not apply to a retail water or sewer rate
adopted by the receiver or the district.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 9.11, eff. June 16, 2007.
Sec. 7201.207. SERVICE CONTRACT ALLOCATION OF COST AND IMMUNITY
FROM CLAIMS. (a) In connection with intergovernmental,
interlocal, or wholesale service contracts, including cooperative
billing for any contract-based service, the district shall
allocate costs of service ratably for the service, and the
district shall secure indemnity from the contracting party to the
extent allowed by law.
(b) The district is a governmental unit, as that term is defined
by Section 101.001(3), Civil Practice and Remedies Code, and, to
the fullest extent provided by law, enjoys immunity from suit and
liability, consistent with general law, the Texas Tort Claims
Act, Chapter 101, Civil Practice and Remedies Code, and Chapter
49, Water Code, including Section 49.066 of that code.
Added by Acts 2005, 79th Leg., Ch.
1057, Sec. 2.01, eff. September 1, 2005.