CHAPTER 8270. CNP UTILITY DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE F. MUNICIPAL UTILITY DISTRICTS
CHAPTER 8270. CNP UTILITY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8270.001. DEFINITIONS. In this chapter:
(1) "Board" means the board of directors of the district.
(2) "District" means the CNP Utility District.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.002. NATURE OF DISTRICT. The district is a municipal
utility district and a conservation and reclamation district in
Harris County created under Section 59, Article XVI, Texas
Constitution.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit.
(b) All land and other property included in the boundaries of
the district will benefit from the works and projects
accomplished by the district under the powers conferred by
Section 59, Article XVI, Texas Constitution.
(c) The creation of the district is essential to accomplish the
purposes of Section 59, Article XVI, Texas Constitution.
(d) The accomplishment of the purposes stated in this chapter is
for the benefit of the people of this state and for the
improvement of their property and industries. The district, in
carrying out the purposes of this chapter, will be performing an
essential public function under the constitution.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.004. STATE POLICY REGARDING WASTE DISPOSAL. The
district's powers and duties are subject to the state policy of
encouraging the development and use of integrated area-wide waste
collection, treatment, and disposal systems to serve the waste
disposal needs of this state's residents, if integrated systems
can reasonably be provided for an area, so as to avoid the
economic burden on residents and the effect on state water
quality caused by the construction and operation of numerous
small waste collection, treatment, and disposal facilities.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
SUBCHAPTER B. DISTRICT TERRITORY AND ANNEXATIONS TO DISTRICT
TERRITORY
Sec. 8270.051. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2, Chapter 751,
Acts of the 61st Legislature, Regular Session, 1969, as that
territory may have been modified under:
(1) Subchapter H, Chapter 54, Water Code;
(2) Subchapter J, Chapter 49, Water Code;
(3) Section 9, Chapter 751, Acts of the 61st Legislature,
Regular Session, 1969; or
(4) 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, and validity;
(2) the district's right to issue any type of bond for a purpose
for which the district is created or to pay the principal of and
interest on the bond;
(3) the district's right to impose a tax; or
(4) the legality or operation of the district or the board.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.052. EXPANSION OF DISTRICT. (a) If land is added to
the district under Section 49.301, Water Code, the board may
require the petitioners:
(1) to assume the petitioners' pro rata share of the voted but
unissued bonds of the district; and
(2) to authorize the board to impose a tax on the petitioners'
property to pay for the bonds after the bonds have been issued.
(b) If land is annexed in the manner provided by Section 49.302,
Water Code, the board may also submit a proposition to the voters
of the area to be annexed on the question of the assumption by
the area to be annexed of its part of the voted but not yet
issued or sold tax or tax-revenue bonds of the district and the
imposition of an ad valorem tax on taxable property within the
area to be annexed along with a tax on the rest of the district
for the payment of the bonds.
(c) If the petitioners consent or if the election results
favorably, the district may issue its voted but unissued tax or
tax-revenue bonds regardless of changes to district boundaries
since the original voting or authorization of the bonds.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
SUBCHAPTER C. DISTRICT ADMINISTRATION
Sec. 8270.101. COMPOSITION OF BOARD. The board consists of five
elected directors.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.102. DIRECTOR'S BOND. Each director shall give bond
in the amount of $5,000 for the faithful performance of the
director's duties.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.103. DISTRICT OFFICE. (a) Except as provided by this
section, the board shall designate, establish, and maintain a
district office as provided by Section 49.062, Water Code.
(b) The board may establish a second district office outside the
district. If the board establishes a second district office, the
board shall give notice of the location of that office by:
(1) filing a copy of the board resolution that establishes the
location of the office:
(A) with the Texas Commission on Environmental Quality; and
(B) in the municipal utility district records of each county in
which the district is located; and
(2) publishing notice of the location of the office in a
newspaper of general circulation in each county in which the
district is located.
(c) A district office that is a private residence, office, or
dwelling is a public place for matters relating to district
business.
(d) The board shall provide notice of any change in the location
of the district office outside the district in the manner
required by Subsection (b).
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.104. ABSENCE OR INACTION OF BOARD PRESIDENT. (a)
When the board president is absent or fails or declines to act,
the board vice president shall perform all duties and exercise
all power this chapter or general law gives the president.
(b) If the board president is absent from a board meeting:
(1) the board vice president may:
(A) sign an order adopted at the meeting; or
(B) implement any other action taken at the meeting; or
(2) the board may authorize the president to sign the order or
implement the action.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
SUBCHAPTER D. POWERS AND DUTIES
Sec. 8270.151. MUNICIPAL UTILITY DISTRICT POWERS. The district
has all of the rights, powers, privileges, authority, and
functions conferred and imposed by the general laws of the state
relating to municipal utility districts created under Section 59,
Article XVI, Texas Constitution, including those conferred by
Chapters 49 and 54, Water Code.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.152. ADDITIONAL POWERS. (a) The district may:
(1) make, purchase, construct, lease, or otherwise acquire
property, works, facilities, existing improvements, or
improvements to be made, constructed, or acquired that are:
(A) inside or outside the district's boundaries; and
(B) necessary to carry out the powers granted by this chapter or
general law; or
(2) enter into a contract with a person on terms the board
considers desirable, fair, and advantageous for:
(A) the purchase or sale of water;
(B) the transportation, treatment, and disposal of the domestic,
industrial, or communal wastes of the district or others;
(C) the continuing and orderly development of land and property
in the district through the purchase, construction, or
installation of facilities, works, or improvements that the
district is otherwise authorized to do or perform so that, to the
greatest extent reasonably possible, considering sound
engineering and economic practices, all of the land and property
may ultimately receive the services of the facilities, works, or
improvements; and
(D) the performance of any of the powers granted by this chapter
or general law.
(b) A contract under Subsection (a)(2) may not have a duration
of more than 40 years.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.153. EMINENT DOMAIN. The district may exercise the
power of eminent domain only:
(1) in a county in which the district is located; and
(2) when necessary to carry out the purposes for which the
district was created.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.154. COST OF RELOCATING OR ALTERING PROPERTY. (a) In
this section, "sole expense" means the actual cost of relocating,
raising, lowering, rerouting, or changing the grade of or
altering the construction of a facility described by Subsection
(b) in providing comparable replacement without enhancement of
the facility, after deducting from that cost the net salvage
value of the old facility.
(b) If the district's exercise of the power of eminent domain,
the power of relocation, or any other power conferred by this
chapter makes necessary relocating, raising, rerouting, changing
the grade, or altering the construction of a highway, a railroad,
an electric transmission line, a telegraph or telephone property
or facility, or a pipeline, the necessary action shall be
accomplished at the sole expense of the district.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.155. CONTRACT FOR PURCHASE OF WATER, SEWER, OR
DRAINAGE SERVICES; ELECTION NOT REQUIRED. (a) The district may
enter into a contract with a political subdivision for water,
sewer, or drainage services or any combination of those services
without the necessity of an election by any contracting party.
(b) The district may pay for an obligation incurred by such a
contract by issuing bonds that, if otherwise necessary, have been
approved by the voters in the manner provided by this chapter.
(c) The district may deliver the district's bonds to any of the
following parties that enters into such a contract with the
district:
(1) the United States;
(2) an agency or instrumentality of the United States;
(3) this state; or
(4) an agency or instrumentality of this state.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.156. NOTICE OF ELECTION. The board president or
secretary may give notice of an election.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.157. DISTRICT RULES. The district shall adopt and
enforce reasonable and effective rules to secure and maintain
safe, sanitary, and adequate plumbing installations, connections,
and appurtenances as subsidiary parts of the district's sewerage
system to preserve the quality of water within or controlled by
the district.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS
Sec. 8270.201. TAX METHOD. (a) The board shall use the ad
valorem plan of taxation.
(b) The board is not required to hold a hearing on the adoption
of a plan of taxation.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.202. DISTRICT ACCOUNTS. The district shall keep a
complete system of the district's accounts.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.203. COPY OF AUDIT REPORT. A copy of the audit report
prepared under Subchapter G, Chapter 49, Water Code, shall be
delivered:
(1) to each director; and
(2) on request to a holder of at least 25 percent of the
outstanding bonds of the district.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.204. PAYMENT OF TAX OR ASSESSMENT NOT REQUIRED. The
district is not required to pay a tax or assessment on:
(1) district property; or
(2) a purchase made by the district.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.205. DEPOSITORY. (a) The board shall select one or
more banks in this state to act as depository for the district's
funds.
(b) To the extent that funds in the depository bank are not
insured by the Federal Deposit Insurance Corporation, the funds
must be secured in the manner provided by law for the security of
county funds.
(c) A director may be a shareholder in a depository of district
funds.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
SUBCHAPTER F. BONDS
Sec. 8270.251. ISSUANCE OF BONDS. (a) The district may issue
bonds payable from taxes or revenue to provide money for any
purpose of this chapter, including the acquisition of land.
(b) The district must issue bonds in the manner provided by
Chapters 49 and 54, Water Code, except that the district may
issue bonds payable solely from net revenue by resolution or
order of the board without an election.
(c) Bonds issued under this subchapter may be payable from all
or any designated part of the revenue of district property and
facilities or under a specific contract, as provided in the order
or resolution authorizing the issuance of bonds.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.252. ADDITIONAL SECURITY. (a) Within the discretion
of the board, bonds issued under this subchapter may be
additionally secured by a deed of trust or mortgage lien on
physical property of the district and franchises, easements,
water rights and appropriation permits, leases, contracts, and
all rights appurtenant to that property, vesting in the trustee
the power to:
(1) sell the property for payment of the debt;
(2) operate the property; and
(3) take any other action to secure the bonds.
(b) A purchaser under a sale under the deed of trust or mortgage
lien of the property:
(1) is the absolute owner of the property, facilities, and
rights purchased; and
(2) may maintain and operate the property and facilities.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.253. TRUST INDENTURE. A trust indenture created under
Section 8270.252, regardless of the existence of a deed of trust
or mortgage lien on the property, may:
(1) provide for the security of the bonds and the preservation
of the trust estate in the manner prescribed by the board;
(2) provide for amendment or modification of the trust
indenture;
(3) provide for the issuance of bonds to replace lost or
mutilated bonds;
(4) condition the right to spend district money or sell district
property on the approval of a licensed engineer selected as
provided by the trust indenture; and
(5) provide for the investment of district money.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.254. ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF
CERTAIN BONDS. (a) In an order or resolution authorizing the
issuance of revenue, tax-revenue, revenue refunding, or
tax-revenue refunding bonds, the board may:
(1) provide for:
(A) the flow of funds; and
(B) the establishment and maintenance of the interest and
sinking fund, reserve fund, or other fund;
(2) make additional covenants with respect to the bonds and the
pledged revenue and the operation and maintenance of the
improvements and facilities the revenue of which is pledged,
which may include provisions for the operation or leasing of all
or part of the improvements and facilities and the use or pledge
of money received from the operation contract or lease as the
board considers appropriate;
(3) prohibit the further issuance of bonds or other obligations
payable from the pledged revenue or reserve the right to issue
additional bonds to be secured by a pledge of and payable from
the revenue on a parity with, or subordinate to, the lien and
pledge in support of the bonds being issued, subject to any
conditions set forth in the order or resolution; and
(4) include any other provision or covenant not prohibited by
the Texas Constitution or this chapter.
(b) The board may adopt and execute any other proceeding or
instrument necessary or convenient in the issuance of the bonds.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.255. USE OF BOND PROCEEDS DURING CONSTRUCTION. (a)
The district may appropriate or set aside out of the proceeds
from the sale of any bonds issued under this subchapter an amount
for the payment of interest, administrative, and operating
expenses expected to accrue during a period of construction, as
may be provided in the bond orders or resolutions.
(b) For purposes of this section, the period of construction may
not exceed three years.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.
Sec. 8270.256. REFUNDING BONDS. (a) By order or resolution
adopted by the board, the district may issue revenue refunding
bonds or tax-revenue refunding bonds to refund revenue bonds or
tax-revenue bonds, whether original bonds or refunding bonds,
previously issued by the district.
(b) The comptroller shall register the refunding bonds on the
surrender and cancellation of the bonds to be refunded.
(c) Instead of issuing bonds to be registered on the surrender
and cancellation of the bonds to be refunded, the district, in
the order or resolution authorizing the issuance of the refunding
bonds, may provide for the sale of the refunding bonds and the
deposit of the proceeds in the place or places where the bonds to
be refunded are payable. In that case, the refunding bonds may
be issued if an amount sufficient to pay the principal of and
interest on the bonds to be refunded to their maturity dates, or
to their option dates if according to their terms the bonds have
been called for payment before maturity, has been deposited in
the place or places where the bonds to be refunded are payable,
and the comptroller shall register the refunding bonds without
the surrender and cancellation of the bonds to be refunded.
Redesignated from Special District Local Laws Code, Chapter 9013
and amended by Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 21.101, eff. September 1, 2009.