CHAPTER 7213. GASTONIA-SCURRY SPECIAL UTILITY DISTRICT

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE C. SPECIAL UTILITY DISTRICTS

CHAPTER 7213. GASTONIA-SCURRY SPECIAL UTILITY DISTRICT

For contingent expiration of this chapter, see Section 7213.003.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 7213.001. DEFINITION. In this chapter, "district" means

the Gastonia-Scurry Special Utility District.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.002. NATURE OF DISTRICT. The district is a special

utility district in Kaufman County created under and essential to

accomplish the purposes of Section 59, Article XVI, Texas

Constitution. The district is created to serve a public use and

benefit.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.003. CONFIRMATION ELECTION REQUIRED. If the creation

of the district is not confirmed at a confirmation and initial

directors' election held before September 1, 2009:

(1) the district is dissolved on September 1, 2009, except that

the district shall:

(A) pay any debts incurred;

(B) transfer to Kaufman County any assets of the district that

remain after the payment of debts; and

(C) maintain the organization of the district until all debts

are paid and remaining assets are transferred; and

(2) this chapter expires September 1, 2012.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.004. APPLICABILITY OF OTHER SPECIAL UTILITY DISTRICT

LAW. Except as otherwise provided by this chapter, Chapters 49

and 65, Water Code, apply to the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.005. INITIAL DISTRICT TERRITORY. (a) The district is

initially composed of the territory described by Section 2 of the

Act creating this chapter.

(b) The boundaries and field notes contained in Section 2 of the

Act creating this chapter 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 any type of bond,

including a refunding bond, for a purpose for which the district

is created or to pay the principal of and interest on a bond; or

(3) the legality or operation of the district or the board of

directors of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

SUBCHAPTER A-1. TEMPORARY PROVISIONS

For expiration of this subchapter, see Section 7213.024.

Sec. 7213.021. TEMPORARY DIRECTORS. (a) The temporary board of

directors of the district is composed of:

(1) Frank Skube;

(2) Thomas Kintz;

(3) Rhonda Davenport;

(4) Carole Giddings;

(5) Angel McKinnon;

(6) Roger Brock; and

(7) Michael Reese.

(b) Each temporary director shall qualify for office as provided

by Section 49.055, Water Code.

(c) If a temporary director fails to qualify for office, the

temporary directors who have qualified shall appoint a person to

fill the vacancy. If at any time there are fewer than four

qualified temporary directors, the Texas Commission on

Environmental Quality shall appoint the necessary number of

directors to fill all vacancies on the board.

(d) Temporary directors serve until initial directors are

elected under Section 7213.022.

(e) As soon as practicable after all the temporary directors

have qualified under Section 49.055, Water Code, the temporary

directors shall convene the organizational meeting of the

district and elect officers from among the temporary directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.022. CONFIRMATION AND INITIAL DIRECTORS' ELECTION.

(a) The temporary directors shall hold an election to confirm

the creation of the district and to elect seven initial directors

in accordance with Chapters 49 and 65, Water Code, on or before

September 1, 2009.

(b) The temporary board of directors shall determine the method

for determining the initial term of each person on the initial

board of directors. The terms must be clearly stated on the

ballot for the confirmation and directors' election.

(c) Section 41.001(a), Election Code, does not apply to a

confirmation election held as provided by this section.

(d) Initial directors serve until the first regularly scheduled

election of directors under Subchapter C, Chapter 65, Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.023. TRANSFER OF ASSETS; DISSOLUTION. (a) If the

district's creation is confirmed under Section 7213.022, the

Gastonia-Scurry Water Supply Corporation shall transfer the

assets, debts, and contractual rights and obligations of the

corporation to the district.

(b) Not later than the 30th day after the date of the transfer

under Subsection (a), the board of directors of the

Gastonia-Scurry Water Supply Corporation shall commence

dissolution proceedings of the corporation.

(c) On dissolution of the Gastonia-Scurry Water Supply

Corporation, Certificate of Convenience and Necessity No. 10837

is considered to be held by the district.

(d) The board of directors of the Gastonia-Scurry Water Supply

Corporation shall notify the Texas Commission on Environmental

Quality of the dissolution of the corporation and of the transfer

of Certificate of Convenience and Necessity No. 10837 to the

district.

(e) On receipt of notice under Subsection (d), the Texas

Commission on Environmental Quality shall note in its records

that Certificate of Convenience and Necessity No. 10837 is held

by the district and shall reissue the certificate in the name of

the district without further application, notice, or hearing. A

person does not have a right to protest or request an

administrative review of the transfer prescribed by this section.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.024. EXPIRATION OF SUBCHAPTER. This subchapter

expires September 1, 2012.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 7213.051. DIRECTORS. The district is governed by a board

of not fewer than 5 and not more than 11 directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 7213.101. GENERAL POWERS. Except as otherwise provided by

this chapter, the district has all of the rights, powers,

privileges, functions, and duties provided by the general law of

this state, including Chapters 49 and 65, Water Code, applicable

to special utility districts created under Section 59, Article

XVI, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.

Sec. 7213.102. WATER SERVICE IMPACT FEE. (a) The district may

charge a water service impact fee that is not greater than the

equity buy-in fee charged by the Gastonia-Scurry Water Supply

Corporation on December 31, 2006, under that corporation's

tariff.

(b) Chapter 395, Local Government Code, does not apply to the

initial water service impact fee set under this section.

(c) The district may increase the water service impact fee only

as provided by Chapter 395, Local Government Code, or as approved

by the Texas Commission on Environmental Quality.

Added by Acts 2007, 80th Leg., R.S., Ch.

1000, Sec. 1, eff. June 15, 2007.