CHAPTER 7208. PARKER COUNTY UTILITY DISTRICT NO. 1
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE C. SPECIAL UTILITY DISTRICTS
CHAPTER 7208. PARKER COUNTY UTILITY DISTRICT NO. 1
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 7208.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "Bond" means any interest-bearing obligation, including a
bond, note, debenture, certificate, warrant, security, interim
certificate or receipt, or other evidence of debt issued by the
district, whether general or special, negotiable or nonnegotiable
in form, in bearer or registered form, temporary or permanent in
form, or with or without interest coupons.
(3) "Customer" means a wholesale or direct retail user of water,
wastewater, or other services provided by the district.
(4) "Director" means a member of the board.
(5) "District" means the Parker County Utility District No. 1.
(5-a) "Enterprise fund" means a fund used to account for
operations:
(A) that are financed and operated in a manner similar to a
private business enterprise and for which the intent of the board
is that the costs, including depreciation, of providing goods or
services to the public on a continuing basis be financed or
recovered primarily through user charges; or
(B) for which the board has decided that periodic determination
of revenues earned, expenses incurred, or net income earned is
appropriate for capital maintenance, public policy, management
control, accountability, or other purposes.
(6) "Local government" means a municipality, a county, or an
entity created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution.
(7) "Member entity" means a public entity or private utility
entity that:
(A) provides retail utility service or regulates water,
wastewater, sewage, or solid waste in the district; and
(B) enters into a contract with the district to provide or
receive wholesale service.
(7-a) "Operating unit" means a separately run unit established
by action of the board that runs as an enterprise fund separate
from other enterprise funds owned or operated by the district.
(8) "Participant entity" means a public entity or private
utility entity that:
(A) provides utility service inside the boundaries of the
entity; and
(B) contracts with the district for the construction of and
payment for water, wastewater, or other utility service projects
to be financed or provided by the district.
(8-a) "Retail unit" means any unit in which the district
provides retail service for a given certificate of public
convenience and necessity or bounded service area. Each retail
unit shall be considered an operating unit.
(9) "Service area" means the territory inside the district and
inside the corporate limits or defined boundaries of all member
entities, participant entities, and customers of the district,
including the areas served by the member entities, participant
entities, and customers.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 1, eff. June 19, 2009.
Sec. 7208.002. NATURE OF DISTRICT. The district is a regional
wastewater district created under Section 59, Article XVI, Texas
Constitution, and is essential to accomplish the purposes of that
provision.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.003. PURPOSE. The district is created to:
(1) purchase, own, hold, lease, or otherwise acquire water
distribution facilities, wastewater collection facilities, or
other facilities required to facilitate the district's
operations;
(2) build, operate, and maintain facilities to treat, transport,
and store water, wastewater, or other products necessary for
district operations;
(3) protect, preserve, and restore the purity and sanitary
condition of water in the district; and
(4) provide other utilities in the district if the utilities are
not otherwise provided.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 2, eff. June 19, 2009.
Sec. 7208.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) All
land and other property included in the district will benefit
from the improvements, works, and projects that are to be
accomplished by the district under the powers conferred by this
chapter and Section 59, Article XVI, Texas Constitution.
(b) The district benefits the state by:
(1) contributing to economic development and diversification;
(2) decreasing the rates of unemployment and underemployment;
(3) stimulating agricultural innovation;
(4) fostering enterprise growth based on agriculture; and
(5) contributing to the development or expansion of
transportation and commerce.
(c) The accomplishment of the purposes of the district benefits
the people, property, and industry of the state. The district is
performing an essential public function under the Texas
Constitution by accomplishing the purposes of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.005. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 1.04, Chapter
1273, Acts of the 75th Legislature, Regular Session, 1997, as
that territory may have been modified under:
(1) Subchapter B or its predecessor statutes, Sections 2.17 and
6.01, Chapter 1273, Acts of the 75th Legislature, Regular
Session, 1997;
(2) Subchapter J, Chapter 49, Water Code;
(3) Subchapter H, Chapter 54, Water Code;
(4) Subchapter H, Chapter 65, Water Code; or
(5) other law.
(b) The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field
notes in the legislative process does not affect:
(1) the district's organization, existence, or validity; or
(2) the legality or operation of the district or its board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.006. EXISTING OBLIGATIONS AND RIGHTS OF OTHER ENTITIES
PRESERVED. This chapter does not alter any existing permit,
contract, or other obligation or impair the right of any entity
to own, operate, maintain, or otherwise use, provide, or control
water, wastewater, solid waste, or liquid waste under the
entity's governing law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
SUBCHAPTER B. ADDING TERRITORY OR NEW MEMBER ENTITIES
Sec. 7208.051. ADDING TERRITORY OF MEMBER ENTITIES. On request
by a member entity, the district boundaries may be expanded to
include additional or the remaining territory of the member
entity if:
(1) the boundaries of the member entity are contiguous to the
district boundaries; and
(2) the requested expansion is approved by a three-fourths
majority vote of the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.052. ADDING NEW MEMBER ENTITIES. (a) On receipt of a
petition submitted by the governing body of a local government,
another political subdivision, or a private entity, including a
water supply corporation, the board may add a member entity to
the district as provided by this section.
(b) A petition must be submitted in the manner and form required
by the district bylaws.
(c) On receipt of a petition, the board shall give notice and
hold a hearing on the petition to determine if adding the member
entity to the district:
(1) will benefit the territory or service area in the member
entity; and
(2) is in the best interests of the district.
(d) If the board determines that the proposed member entity
should be added to the district, the board shall issue an order:
(1) adding the proposed member entity and its territory or
service area to the district;
(2) making the member entity and its territory or service area
subject to the privileges, duties, assets, and financial
obligations of the district in the same manner as other member
entities; and
(3) requiring the member entity to reimburse the existing member
entities or directly reimburse the district an amount that is an
equitable pro rata share of the costs paid by the existing member
entities or the district in creating and operating the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.053. APPOINTMENT OF DIRECTORS BY NEW MEMBER ENTITY.
If the board issues an order under Section 7208.052(d) adding a
member entity to the district, the governing body of the member
entity shall appoint the appropriate number of directors to the
board as provided by Section 7208.103.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
SUBCHAPTER C. BOARD OF DIRECTORS
Sec. 7208.101. GOVERNING BODY. The district is governed by a
board of directors. The board has exclusive authority to manage
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.102. TERMS. Directors serve staggered four-year terms
beginning May 1 of the year in which the director is appointed.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.103. APPOINTMENT OF DIRECTORS. (a) Not earlier than
April 1 or later than April 30 of each year, the appropriate
number of directors, if any, shall be appointed to the board as
provided by Subsection (b).
(b) Each member entity shall appoint:
(1) one director if the number of member entities is at least
six;
(2) two directors if the number of member entities is at least
three but less than six;
(3) three directors if there are two member entities; or
(4) six directors if there is one member entity.
(c) A participant entity or customer may not appoint a director.
(d) The appointment of a director is not valid unless the
appointment is made as provided by this subchapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.104. QUALIFICATIONS FOR OFFICE. A person is qualified
to serve as a director if the person:
(1) is at least 18 years of age;
(2) is a qualified voter who resides in the district;
(3) qualifies to serve as a director by taking the oath of
office;
(4) is eligible to serve as a director under Subchapter C,
Chapter 49, Water Code, except as otherwise provided by this
section; and
(5) verifies compliance with the requirements of this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.105. EX OFFICIO DIRECTORS. (a) The county judge of
Parker County, or a person designated by that judge, serves as an
ex officio director. An ex officio director may vote on any
matter considered by the board.
(b) The board may appoint or elect other ex officio directors
and provide for the powers and duties of ex officio directors in
the bylaws or rules of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.106. VACANCY. (a) Any time after a board vacancy
occurs, the governing body of the appropriate member entity shall
fill the vacancy by appointment.
(b) The member entity shall provide notice of the appointment to
the board not later than six hours before the first board meeting
following the appointment.
(c) The appointment is effective on the date notice is received
by the board. If the notice is not provided, the appointment is
not effective until after the first board meeting following the
appointment.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.107. REMOVAL FROM OFFICE. A director may be removed
for any reason:
(1) by the governing body of the member entity that appointed
the director; or
(2) if three-fourths of the directors vote to remove the
director.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.108. COMPENSATION; EXPENSES. (a) Except as provided
by Subsection (b), a director may not receive compensation for
serving on the board.
(b) A director may receive reimbursement for travel or other
expenses reasonably incurred by the director while acting on
behalf of the district. The board may adopt reasonable policies
governing the reimbursement of director expenses, including a
requirement that the director provide written verification of
expenses.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.109. OFFICERS. (a) Each year at the first board
meeting following the appointment of directors under Section
7208.103, the board shall elect from its members a president, a
vice president, a secretary, a treasurer, and any other officer
the board determines is necessary.
(b) The president is the chief executive officer of the
district.
(c) The vice president may perform the duties and exercise the
powers of the president if the president is absent or fails,
refuses, or is unable to act.
(d) The board secretary or an assistant secretary:
(1) shall keep a record of the minutes of board meetings;
(2) shall maintain the official district records; and
(3) may certify the accuracy and authenticity of any actions,
proceedings, minutes, or records of the board or the district.
(e) The board may provide for additional powers and duties of
elected officers in the district bylaws.
(f) Officers serve until the election of new officers.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.110. MEETINGS. The board shall hold regular and, if
necessary, special and emergency board meetings. The board shall
hold board meetings at a time and place specified in the district
bylaws.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.111. QUORUM. (a) A quorum of the directors is
required to be present at a board meeting for the board to
conduct district business.
(b) The board shall specify in the district bylaws the number of
directors that constitute a quorum. A quorum may not be less
than a majority of the directors serving on the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.112. VOTING REQUIREMENTS. (a) The board shall
specify in the district bylaws the number of votes necessary to
approve a matter considered by the board. The number of votes
specified may not be less than a majority of the directors
present at the meeting at which the matter is being considered.
(b) A director, including the president, may vote on any matter
considered by the board, including a matter authorizing a
financial commitment to a capital project. This subsection
applies even if the director was appointed by a member entity
that is not participating in the project being considered by the
board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.113. CONFLICT OF INTEREST. District directors and
officers are subject to Chapter 572, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.114. DISTRICT EMPLOYEES. The board may appoint and
employ any person that the board determines is necessary to
conduct the affairs of the district, including a general manager,
engineer, attorney, financial advisor, accountant, or other
consultant.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.115. BYLAWS. The board shall adopt bylaws to govern
matters of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.116. CUSTOMER ADVISORY COUNCILS. (a) For each
operating unit, the board may establish a customer advisory
council that consists of one representative of each wholesale
customer or retail unit of the district.
(b) For each retail unit, the board may establish a customer
advisory council that consists of five members appointed by the
retail customers of the unit in accordance with the laws
applicable to and rules of the district. An advisory council
member must reside in the service area of the retail unit.
(c) A representative serving on a customer advisory council:
(1) has the powers and duties provided in the bylaws and rules
of the district; and
(2) may not vote on any matter considered by the board.
(d) The board may abolish a customer advisory council.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 3, eff. June 19, 2009.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 7208.151. GENERAL POWERS AND DUTIES OF DISTRICT. Except as
provided by Sections 7208.167 and 7208.206, the district has all
the rights, powers, privileges, functions, and duties:
(1) provided by general law, including Chapters 49, 54, and 65,
Water Code; and
(2) conferred by Section 59, Article XVI, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.152. RULES. The board may adopt and enforce
reasonable rules to exercise the powers and perform the duties of
the district as provided by this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.153. RULES RELATING TO WATER QUALITY. (a) The
district may adopt and enforce rules relating to protection of
the quality of water flowing to or from the areas in or
surrounding a lake, reservoir, or other source of water supply
owned, operated, or controlled by the district.
(b) A rule adopted by the district under this section must:
(1) relate to:
(A) preventing waste or unauthorized use of water controlled by
the district; or
(B) regulating privileges on land, a reservoir, or an easement
owned or controlled by the district; and
(2) be consistent with rules of the state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.154. GENERAL WASTE AND WATER POWERS. The district
may:
(1) provide for:
(A) the collection, construction, improvement, maintenance, and
operation of wholesale or retail wastewater and water systems and
treatment works necessary to provide wholesale or retail service
to customers; and
(B) the acquisition, construction, improvement, and maintenance
of a water supply or reservoir, or an interest in a water supply
or reservoir, necessary to exercise and fulfill the powers and
duties of the district;
(2) supply water for municipal, domestic, and industrial or
other beneficial uses or controls;
(3) collect, treat, process, dispose of, and control all
domestic or industrial wastes, whether in fluid, solid, or
composite state;
(4) gather, conduct, divert, control, and treat local storm
water or local harmful excesses of water in the district; and
(5) irrigate and alter land elevations in the district as
needed.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 4, eff. June 19, 2009.
Sec. 7208.155. PERMITS. The district may acquire a water
appropriation or other necessary permit from the state or a
permit owner.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.156. GENERAL CONTRACTING AUTHORITY. (a) If necessary
to exercise the powers and accomplish the purposes of the
district, the district may contract with the United States, a
municipality, a county, a water supply corporation, an entity
created under Section 52, Article III, or Section 59, Article
XVI, Texas Constitution, or another public or private entity.
(b) The district may contract for the acquisition, rental,
lease, or operation of wastewater or water facilities owned or
operated by the party contracting with the district.
(c) A contract that requires payment of money by the district
may be satisfied from any general or specific source of district
money as determined by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.157. CONTRACTS WITH DISTRICT FOR WATER, WASTEWATER,
AND OTHER UTILITY SERVICES. (a) Except as provided by
Subsection (b), this chapter does not require a customer or
prospective customer of the district to secure water, wastewater,
or other utility service from the district unless the customer or
prospective customer contracts with the district for that
purpose.
(b) A customer or prospective customer is required to secure
water, wastewater, or other utility service from the district if:
(1) the customer or prospective customer is not receiving the
service from another source; and
(2) the district provides the service or determines that the
district will make the service available to the customer or
prospective customer.
(c) If a customer contracts with the district to secure water,
wastewater, or other utility service from the district, a user of
the service under the contract must connect to the district's
service system if:
(1) the user is located inside the boundaries of the customer;
and
(2) the district's system is available for connection at or near
the property line of the user.
(d) A contract under this section may authorize the district to:
(1) require the customer to terminate service provided to a user
who fails or refuses to pay for that service after providing
notice as required by law;
(2) terminate service provided to a customer or user who fails
or refuses to pay for that service after providing notice as
required by law; and
(3) terminate other utility services provided to a customer or
user if the customer or user fails or refuses to pay for any
service provided by the district after providing notice as
required by law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 5, eff. June 19, 2009.
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 6, eff. June 19, 2009.
Sec. 7208.158. AUTHORITY OF OTHER ENTITIES TO CONTRACT WITH
DISTRICT. (a) A municipality, county, public agency, or
political subdivision of the state, an entity created under
Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, or a water supply corporation may contract with the
district if the entity is conducting business wholly or partly
inside the district.
(b) The governing body of an entity that contracts with the
district under this section may pledge to the payment of the
contract any source of revenue available to the governing body,
including revenue from ad valorem taxes.
(c) If an entity under this section pledges to the payment of a
contract money from the entity's water system, wastewater system,
or combined water and wastewater system, the payments are an
operating expense of that system.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.159. JOINT AGREEMENTS. To accomplish the objectives
and exercise the powers of the district, the district may enter
into a joint agreement or contract with a water supply
corporation, a municipality, an entity created under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution, a
county, a political subdivision of the state, the state, or
another private or public entity.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.160. WASTEWATER AND OTHER NECESSARY UTILITIES AND
SERVICES. (a) The district may provide wastewater collection,
treatment, or service in the district.
(b) The district may own, operate, and provide other necessary
utilities and services in the district, including raw water,
potable water, water distribution and treatment, solid waste
collection and disposal, fire, police, and ambulance services,
if:
(1) the right to own, operate, or provide the utility or service
has not been conveyed to another entity; or
(2) the entity to which the right has been conveyed agrees to
sell, cede, or otherwise convey to the district the right to own,
operate, or provide the utility or service.
(c) Subsection (b) does not require the district to own,
operate, or provide other necessary utilities or services in the
district unless the district is required to own, operate, or
provide the utility or service under a permit, certificate, or
license issued by the state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.161. CONSTRUCTION OR ACQUISITION OF WORKS AND
FACILITIES. The district may plan, lay out, construct, acquire,
own, operate, maintain, repair, improve, or contract for, inside
or outside the district, any works, improvements, facilities,
plants, equipment, and appliances, including any administrative
property and facilities, any permits, franchises, licenses, or
contract or property rights, and any levees, drains, waterways,
lakes, reservoirs, channels, conduits, sewers, dams, storm water
detention facilities, treatment plants, or other similar
facilities and improvements, whether for municipal, industrial,
agricultural, flood control, or related purposes, that are
necessary, helpful, or incidental to the exercise of any right,
power, privilege, or function provided by this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.162. WASTE DISPOSAL SYSTEMS. (a) The district may
establish, acquire, operate, or maintain a regional solid waste
disposal system or a nonhazardous liquid waste disposal system.
(b) If the district establishes a disposal system under this
section, the district shall provide services from the system to:
(1) users as determined by the board if the services are
provided inside the district's service area; and
(2) customers if the services are provided outside the
district's service area.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.163. SERVICES PROVIDED OUTSIDE SERVICE AREA. The
district may provide services outside the district's service
area as provided by state law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.164. RIGHT OF EMINENT DOMAIN. (a) The district may
acquire by eminent domain land, an easement, a right-of-way, or
other property or improvement inside or outside the district if
necessary or appropriate in exercising the powers and performing
the functions of the district.
(b) The district may exercise the power of eminent domain as
provided by state law, including Chapter 21, Property Code,
except that the district is not required to comply with Section
21.021(a), Property Code, during the pendency of the subject
litigation.
(c) In a condemnation proceeding brought by the district, the
district is not required to:
(1) pay in advance or give bond or other security for costs;
(2) give bond for the issuance of a temporary restraining order
or a temporary injunction; or
(3) give bond for costs or supersedeas on an appeal or writ of
error.
(d) The district may not exercise the power of eminent domain to
acquire:
(1) property located in the existing corporate limits of a
municipality that is located wholly or partly inside the district
unless the governing body of the municipality in which the
property is located consents by resolution to the acquisition of
the property;
(2) property located outside the district to be used as a water
supply reservoir unless the county in which the reservoir is to
be located consents;
(3) property owned by a county, a municipality, an entity
created by special act of the legislature under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution, a
political subdivision of the state, or an agency or
instrumentality of a county or municipality; or
(4) a waterworks system or a wastewater system owned by a
municipality, an entity created by special act of the legislature
under Section 52, Article III, or Section 59, Article XVI, Texas
Constitution, a political subdivision of the state, a private
party, or a nonprofit corporation.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.165. COSTS OF RELOCATING OR ALTERING PROPERTY. If the
district exercises the power of eminent domain and requires
relocating, raising, lowering, rerouting, changing the grade of,
or altering the construction of any railroad, highway, pipeline,
or electric transmission and electric distribution, telegraph, or
telephone lines, conduits, poles, or facilities, the district
shall pay the cost of relocating, raising, lowering, rerouting,
changing the grade, or altering the construction that equals the
comparable replacement cost without enhancement of facilities
minus the net salvage value derived from the old facility.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.166. REGULATORY POWER OF MUNICIPALITIES. The district
and the land in the district are subject to any ordinance, code,
resolution, or rule, including any platting or zoning
requirement, of a municipality that has jurisdiction over
territory in the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.167. STATE SUPERVISION. (a) The rights, powers,
privileges, functions, and duties of the district are subject to
the continuing right of supervision by this state exercised by
the Texas Commission on Environmental Quality.
(b) Except as otherwise provided by this chapter or other law,
the district may exercise the rights, powers, privileges,
functions, and duties conferred by this chapter without obtaining
approval from the Texas Commission on Environmental Quality.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.168. RIGHTS AND DUTIES ASSUMED ON CREATION OF
DISTRICT. The district may succeed to and assume the rights,
privileges, and duties, including contractual obligations, of the
Walnut Creek Special Utility District and the City of Springtown
relating to the creation of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 7208.201. AUDITS. All funds and accounts of the district
shall be audited annually by an independent auditor. The
district shall maintain a copy of the audit in the district's
official records.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
1201, Sec. 7, eff. June 19, 2009.
Sec. 7208.202. DEPOSITORY. The board, by order or resolution,
shall designate one or more banks inside or outside the district
to serve as depository for district money. Except as provided by
this chapter, district money shall be deposited in a depository
bank designated under this section.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.203. INVESTMENT OF DISTRICT MONEY. The board may
invest district money:
(1) in the same manner as provided for the investment of county
money; and
(2) as provided by Chapter 2256, Government Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.204. RATES, FEES, CHARGES, AND RENTALS. (a) District
rates, fees, and charges assessed to provide services and
facilities to customers and users of the district may vary
according to customer class, project, or service area to reflect
different costs of providing service.
(b) The district may require a customer to obtain a deposit from
a user for services or facilities provided by the district. A
deposit under this subsection may bear interest.
(c) If the district issues bonds payable wholly from revenue,
the board shall establish and revise rates of compensation for
water sold and wastewater or other services rendered by the
district that are sufficient:
(1) to pay operating and maintenance expenses of district
facilities;
(2) to pay the issued bonds as the bonds mature and the interest
that accrues on the bonds;
(3) to maintain the district's fund reserve; and
(4) to maintain other funds of the district provided by the
resolution that authorized the issuance of the bonds.
(d) A local government, water supply corporation, or other
entity that contracts with the district may:
(1) establish, charge, and collect fees, rates, charges,
rentals, or other amounts for services or facilities provided
under the contract; and
(2) pledge amounts that are sufficient to make the required
payments under the contract.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.205. ADMINISTRATION AND PLANNING COSTS FEE. (a) The
district may charge each member entity an annual pro rata fee to
pay for administration and planning costs incurred by the
district that are unrelated to capital projects financed by the
district.
(b) The fee may not exceed $2 per capita population of the
member entity unless the board and at least 75 percent of the
member entities of the district that together have at least 75
percent of the population of the district agree to a different
fee.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.206. IMPOSITION OF AD VALOREM TAXES PROHIBITED. The
district may not impose an ad valorem tax.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.207. DISTRICT PROPERTY AND PROJECTS EXEMPT FROM
TAXATION AND ASSESSMENT. The district is not required to pay a
tax or assessment on any property or project owned, operated,
leased, or controlled by the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
SUBCHAPTER F. BONDS
Sec. 7208.251. AUTHORITY TO ISSUE BONDS. The district may issue
bonds as provided by Chapters 1201 and 1371, Government Code, to
provide money for the district to exercise its powers and carry
out its purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.252. ELECTION NOT REQUIRED. The district may issue
bonds without holding an election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.253. BONDS EXEMPT FROM TAXATION. Bonds issued by the
district, the transfer of the bonds, and income from those bonds,
including profits made on the sale of the bonds, are exempt from
taxation in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.254. PAYMENT AND SECURITY. (a) District bonds may
be:
(1) made payable from all or part of the revenue of the district
derived from any lawful source, including revenue derived from a
contract with a customer or other user of facilities owned or
operated by the district or from the ownership and operation of
any waterworks system, wastewater system, sewer system, solid
waste disposal system, or nonhazardous liquid waste system, or a
combination of those systems; and
(2) paid from and secured by liens on the pledges of all or part
of the revenue, income, or receipts derived from the district's
ownership, operation, lease, or sale of the property, buildings,
structures, or facilities, including the proceeds or revenue from
contracts with any person.
(b) District bonds may be additionally secured by a mortgage or
deed of trust on real property owned or to be acquired by the
district and by a chattel mortgage or lien on any personal
property appurtenant to that real property. The board may
authorize the execution of a trust indenture, mortgage, deed of
trust, or other form of encumbrance. The district may also
pledge to the payment of the bonds all or part of a grant, a
donation, or revenue or income received or to be received from
the United States or any public or private source.
(c) The district may pledge all or part of the district's
revenue, income, or receipts from fees, rentals, rates, charges,
or contract proceeds or payments to the payment of district
bonds, including the payment of principal, interest, and any
other amount required or permitted relating to the bonds. The
pledged fees, rentals, rates, charges, proceeds, or payments
shall be established and collected in amounts sufficient,
together with any other pledged resources, to provide for the
payment of expenses relating to the bonds and for operation and
maintenance and other expenses relating to those facilities.
(d) For purposes of Subsections (a) and (c), payments and
revenue pledged for the district's benefit under Sections
7208.158(a) and (b) are district revenue.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.255. MATURITY. District bonds may not have a term
that exceeds 40 years from the date of issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.256. INTEREST RATE. District bonds shall bear an
interest rate as provided by the resolution that authorized the
issuance of the bond.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.257. ADDITIONAL BONDS. District bonds may provide for
the subsequent issuance of additional parity bonds or subordinate
lien bonds under terms provided in the resolution that authorized
the issuance of the bond.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.258. USE OF BOND PROCEEDS. (a) If permitted in the
resolution that authorized the issuance of the bond, the proceeds
from the sale of the bond may be used:
(1) to pay the interest on the bond during the period of
acquisition or construction of facilities to be provided through
the issuance of the bond;
(2) to pay the operating and maintenance expenses of district
facilities;
(3) to create a reserve fund for the payment of the principal of
and interest on the bond; and
(4) in any other manner that is necessary, appropriate, or
convenient to accomplish a district purpose.
(b) The proceeds from the sale of a bond may be placed on time
deposit or invested as provided by the resolution that authorized
the issuance of the bond.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.
Sec. 7208.259. NEGOTIABLE INSTRUMENTS. Obligations under this
chapter are negotiable instruments for purposes of Chapter 8,
Business & Commerce Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.07, eff. April 1, 2009.