CHAPTER 8813. NORTH FORT BEND WATER AUTHORITY
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE H. DISTRICTS GOVERNING GROUNDWATER
CHAPTER 8813. NORTH FORT BEND WATER AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 8813.001. DEFINITIONS. In this chapter:
(1) "Authority" means the North Fort Bend Water Authority.
(2) "Board" means the board of directors of the authority.
(3) "Commission" means the Texas Commission on Environmental
Quality or its successor.
(4) "Director" means a member of the board.
(5) "District" means any district created under Sections
52(b)(1) and (2), Article III, or Section 59, Article XVI, Texas
Constitution, regardless of the manner of creation, other than:
(A) a navigation district or port authority;
(B) a district governed by Chapter 36, Water Code; or
(C) a district that does not have the legal authority to supply
water.
(6) "Groundwater reduction plan" means a plan adopted or
implemented to supply water, reduce reliance on groundwater,
regulate groundwater pumping and usage, or require and allocate
water usage among persons in order to comply with or exceed
requirements imposed by the Fort Bend Subsidence District or the
Harris-Galveston Coastal Subsidence District, as applicable,
including any applicable groundwater reduction requirements.
(7) "Local government" means a municipality, county, district,
or other political subdivision of this state or a combination of
two or more of those entities.
(8) "Person" includes an individual, corporation, organization,
government or governmental subdivision or agency, district, local
government, business trust, estate, trust, partnership,
association, and any other legal entity.
(9) "Subsidence" means the lowering in elevation of the surface
of land by the withdrawal of groundwater.
(10) "System" means a network of pipelines, conduits, valves,
canals, pumping stations, force mains, treatment plants, and any
other construction, device, or related appurtenance used to treat
or transport water.
(11) "Water" includes:
(A) groundwater, percolating or otherwise;
(B) any surface water, natural or artificial, navigable or
nonnavigable; and
(C) industrial and municipal wastewater.
(12) "Well" includes a facility, device, or method used to
withdraw groundwater from a groundwater source within the
boundaries of the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.002. NATURE OF AUTHORITY. The authority is a regional
water authority in Fort Bend and Harris Counties created under
and essential to accomplish the purposes of Section 59, Article
XVI, Texas Constitution, including the acquisition and provision
of surface water and groundwater for residential, commercial,
industrial, agricultural, and other uses, the reduction of
groundwater withdrawals, the conservation, preservation,
protection, and recharge of groundwater and of groundwater
reservoirs or their subdivisions, the prevention of waste of
groundwater, the control of subsidence caused by the withdrawal
of water from groundwater reservoirs or their subdivisions, and
other public purposes stated in this chapter. The authority is a
political subdivision of this state.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.003. CONFIRMATION ELECTION NOT REQUIRED. An election
to confirm the creation of the authority is not required.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.004. INITIAL AUTHORITY TERRITORY. (a) The authority
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 authority;
(2) the right of the authority to issue any type of bond or note
for the purposes for which the authority is created or to pay the
principal of and interest on a bond or note;
(3) the right of the authority to impose or collect a fee, user
fee, rate, charge, or special assessment; or
(4) the legality or operation of the authority.
(c) All of the territory of a local government created after the
effective date of the Act creating this chapter that encompasses
any territory within the boundaries of the authority, immediately
on the creation and without any action required of the authority,
is subject to all of the rights, powers, privileges, and rules of
the authority to the same extent as the territory was before the
local government was created.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.005. EXCLUSION OF CERTAIN TERRITORY. (a) A district
or municipality that, on the effective date of the Act creating
this chapter, is located, wholly or partly, within the territory
described by Section 2(a) or (b) of the Act creating this chapter
may petition for exclusion of all of its territory from the
authority's boundaries by a petition signed by a majority of the
members of the governing body of the district or municipality.
(b) The board shall:
(1) not later than the 120th day after the effective date of the
Act creating this chapter, grant the petition and order the
territory excluded if the petition:
(A) includes an accurate legal description of the boundaries of
the territory to be excluded; and
(B) is filed with the authority not later than the 60th day
after the effective date of the Act creating this chapter; and
(2) if the board grants the petition, file for recording in the
office of the county clerk for the applicable county or counties
a copy of the order and a description of the authority's
boundaries as they exist after the exclusion of the territory.
(c) If a district or municipality is excluded from the
authority's boundaries under this section, the authority is not
required to:
(1) provide water or any other service to the district or
municipality; or
(2) include the district or municipality in any groundwater
reduction plan adopted or implemented by the authority.
(d) If, not later than the 60th day after the effective date of
the Act creating this chapter, a district or municipality files a
petition for exclusion under this section, the authority may not
impose fees, user fees, rates, charges, or special assessments on
the district or municipality after the petition is filed with the
authority unless the district or municipality is annexed by the
authority under Section 8813.006.
(e) If a district or municipality excluded from the authority's
boundaries under this section petitions the authority to be
annexed under Section 8813.006, the authority may annex the
district or municipality. The authority may, as a condition of
annexation, require terms and conditions the board considers
appropriate. The authority may require the district or
municipality to pay the authority the fees, user fees, charges,
and special assessments, with interest, that, as determined by
the authority, the district or municipality would have been
charged by the authority if the district or municipality had not
been excluded from the authority under this section.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.006. ANNEXATION. (a) Except to the extent the
authority agrees in writing, a municipality's annexation of
territory within the authority does not affect:
(1) the authority's powers inside or outside the annexed
territory;
(2) the authority's boundaries or contracts; or
(3) the authority's ability to assess fees, user fees, rates,
charges, or special assessments inside or outside the territory
annexed by the municipality.
(b) Territory may be annexed to the authority, regardless of
whether the territory is contiguous to the authority, as provided
by Chapter 49, Water Code.
(c) In addition to the authority granted by Subsection (b),
regardless of whether the territory is contiguous to the
authority, the authority may annex some or all of the territory
located within a district or municipality if the district or
municipality files with the authority a petition requesting the
annexation signed by a majority of the members of the governing
body of the district or municipality. The petition must include
an accurate legal description of the boundaries of the territory
to be included. If the authority has bonds, notes, or other
obligations outstanding, the authority shall require the
petitioning district or municipality to be obligated to pay its
share of the principal of and interest on the outstanding bonds,
notes, or other obligations, and related costs. The board may
grant the petition and order the territory described by the
petition annexed to the authority if it is feasible, practicable,
and to the advantage of the authority.
(d) Any territory that a district located within the authority
annexes becomes territory of the authority on the effective date
of the annexation without any action required of the authority.
The authority by rule may require all districts located within
the authority to send to the authority written notice of the
effective date of an annexation and require the districts to send
to the authority copies of any necessary documents describing the
annexed land and describing the districts' boundaries as they
exist after inclusion of the annexed land.
(e) The annexation to the authority of territory under this
section does not affect the validity of the authority's bonds
issued before or after the annexation.
(f) A municipality that annexes territory of the authority for
limited purposes under Subchapter F, Chapter 43, Local Government
Code, does not have the right to:
(1) receive notices from the authority under Section
8813.103(c);
(2) participate in the appointment of directors under Subchapter
B; or
(3) receive information about or have the opportunity to fund
its share of capital costs in the manner provided by the
authority under Section 8813.104.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.007. APPLICABILITY OF OTHER LAW. (a) Except as
otherwise provided by this chapter, Chapter 49, Water Code,
applies to the authority.
(b) This chapter does not prevail over or preempt a provision of
Chapter 36, Water Code, Chapter 8801 of this code, or Chapter
1045, Acts of the 71st Legislature, Regular Session, 1989, that
is being implemented by the Harris-Galveston Coastal Subsidence
District or Fort Bend Subsidence District, as applicable.
(c) Chapter 36, Water Code, does not apply to the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
875, Sec. 1, eff. June 19, 2009.
Sec. 8813.008. FINDING OF BENEFIT. All the land, property, and
persons included within the boundaries of the authority will be
directly benefited by the works, projects, improvements, and
services to be provided by the authority under powers conferred
by Section 59, Article XVI, Texas Constitution, and this chapter.
The authority is created to serve a public use and benefit. The
creation of the authority will serve to promote the health,
safety, and general welfare of persons within the authority and
the general public. Any fees, user fees, rates, charges, or
special assessments imposed by the authority under this chapter
are necessary to pay for the costs of accomplishing the purposes
of the authority as set forth in Section 59, Article XVI, Texas
Constitution, and this chapter, including:
(1) the reduction of groundwater withdrawals;
(2) the facilitation of compliance with the requirements of the
Fort Bend Subsidence District or the Harris-Galveston Coastal
Subsidence District, as applicable; and
(3) the provision of services, facilities, and systems.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
SUBCHAPTER A-1. TEMPORARY PROVISIONS
For expiration of this subchapter, see Sec. 8813.022
Sec. 8813.021. INITIAL DIRECTORS. (a) The initial board
consists of:
Name of Director:
Representing Director Precinct:
David Spell
1
Robert Darden
2
Bruce Fay
3
Melony Gay
4
Robert Patton
5
Peter Houghton
6
Pat Hebert
7
(b) The directors for director precincts 1, 3, 5, and 7 shall
serve until the appointment of directors under Section 8813.056
in 2008. The directors for director precincts 2, 4, and 6 shall
serve until the appointment of directors under Section 8813.056
in 2010.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.022. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2010.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 8813.051. DIRECTORS; TERMS. (a) The authority is governed
by a board of seven directors.
(b) The directors serve staggered four-year terms that expire
May 15 of even-numbered years.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.052. ELIGIBILITY TO SERVE AS DIRECTOR. (a) To be
eligible to serve as a director of the authority or to be listed
on a ballot as a candidate for director of the authority
representing a director precinct, an individual must:
(1) be at least 18 years of age;
(2) be a resident of the authority; and
(3) have served as a director of one or more districts for a
total of at least four years.
(b) Notwithstanding Subsection (a), to serve as a director
representing, or to be listed on a ballot as a candidate for
director representing, a director precinct that includes any part
of the City of Fulshear, an individual must:
(1) meet the qualifications provided by Subsections (a)(1) and
(2); and
(2) have served as:
(A) the mayor or a member of the city council of the City of
Fulshear for any period; or
(B) a director of one or more districts for a total of at least
four years.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.053. DISQUALIFICATION OF DIRECTORS. The common law
doctrine of incompatibility does not disqualify an official or
employee of a public entity from serving as a director of the
authority. A director who is also an officer or employee of a
public entity may not participate in the discussion of or vote on
a matter regarding a contract with that public entity.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.054. CONFLICTS OF INTEREST. Chapter 171, Local
Government Code, governs conflicts of interest of board members.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.055. SINGLE-MEMBER DIRECTOR PRECINCTS. (a) The
authority is divided into seven single-member director precincts,
as described by Section 3 of the Act creating this chapter.
(b) The board may redraw the single-member director precincts in
a manner that is reasonable and equitable:
(1) after any change in the boundaries of the authority; or
(2) by a resolution redrawing the director precincts adopted by
a two-thirds majority of the board based on changed
circumstances.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.056. METHOD OF APPOINTMENT OF DIRECTORS. (a) The
governing bodies of the districts and municipalities located
within each director precinct jointly shall appoint one director
to represent the precinct by a vote conducted as provided by this
section.
(b) If a district or municipality is located within two or more
director precincts, the district or municipality is considered,
for purposes of this section, to be located only within the
director precinct in which the greatest amount of territory of
the district or municipality is located.
(c) For the appointment of a director for a director precinct,
the board shall determine the number of votes each district or
municipality may cast. The number of votes for a governing body
of a district or municipality within the precinct is equal to the
number computed by dividing the total number of units of water,
as determined by the board, used within the precinct by the
district or municipality during the calendar year preceding the
year in which the director is selected by the total number of
units of water used within the precinct by all districts and
municipalities in the precinct, multiplying that quotient by 100,
and rounding that result to the nearest one-tenth. The board
shall provide the presiding officer of each governing body of a
district or municipality within each director precinct written
notice of the number of votes computed for that governing body to
cast.
(d) For purposes of Subsection (c), the board shall determine
the amount of water usage of all districts and municipalities
within each director precinct.
(e) In the appropriate even-numbered year, the governing body of
each district or municipality in a director precinct by
resolution may nominate one candidate for the position of
director for that director precinct. Each district or
municipality shall submit the name of its candidate, if any, to
the presiding officer of the authority by February 15 of that
year. If by February 15 of that year only one candidate's name
is submitted for the position of director for a director
precinct, the board may declare the unopposed candidate elected
and may cancel the director appointment procedures generally
required by this section for that position. If more than one
candidate's name is submitted for the position of director for a
director precinct, before March 15 of that year the board shall
prepare, for the director precinct or precincts from which a
director is being appointed, a ballot listing all of the
candidates for that director precinct and shall provide a copy of
the appropriate ballot to the presiding officer of the governing
body of each district or municipality located within the director
precinct from which a director is being appointed.
(f) An individual may not be listed as a candidate on the ballot
for more than one director position. If a candidate is nominated
for more than one director position, the candidate must choose to
be on the ballot for only one director position.
(g) The governing body of each district or municipality shall
determine its votes for director by resolution and submit them to
the presiding officer of the authority before May 1 of the
appropriate even-numbered year. In casting its votes for
director, the governing body of each district or municipality may
vote for only one candidate on the ballot for the director
precinct in which the district or municipality is located. For
each director precinct from which a director is being appointed,
the board shall count the votes, declare elected the candidate
who received the greatest number of votes from districts and
municipalities located within that director precinct, and submit
the results before May 15 of that year to the governing body of
each district or municipality within that director precinct.
(h) The board may adopt rules regarding:
(1) the manner and timing of determinations and calculations
required by this section;
(2) the reporting of water usage to the authority by districts
and municipalities; and
(3) the conduct and process of the appointment of directors.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.057. VACANCY IN OFFICE OF DIRECTOR. A vacancy in the
office of director shall be filled by appointment by the
governing bodies of the districts and municipalities that are
located within the director precinct for which the vacancy
occurred. The appointment process shall follow the procedures of
Section 8813.056. The board may establish dates different from
those specified by Sections 8813.056(e) and (g), but the date for
the board's submission of the voting results to each district and
municipality may not be later than the 120th day after the date
the vacancy occurs.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.058. MEETINGS AND ACTIONS OF BOARD. (a) The board
may meet as many times each year as the board considers
appropriate.
(b) Directors of the authority are public officials and are
entitled to governmental immunity for their actions in their
capacity as directors and officers of the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.059. GENERAL MANAGER. (a) The board may employ a
general manager of the authority or contract with a person to
perform the duties of a general manager. The board may delegate
to the general manager full authority to manage and operate the
affairs of the authority subject only to orders of the board.
(b) The board may delegate to the general manager the authority
to employ all persons necessary for the proper handling of the
business and operation of the authority and to determine the
compensation to be paid to all employees, other than the general
manager.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 8813.101. GENERAL POWERS AND DUTIES. (a) The authority
may:
(1) provide for the conservation, preservation, protection,
recharge, and prevention of waste of groundwater, and for the
reduction of groundwater withdrawals as necessary to develop,
implement, or enforce a groundwater reduction plan, in a manner
consistent with the purposes of Section 59, Article XVI, Texas
Constitution, and facilitate compliance with Fort Bend Subsidence
District or Harris-Galveston Coastal Subsidence District, as
applicable, rules, orders, regulations, or requirements;
(2) acquire or develop surface water and groundwater supplies
from sources inside or outside the boundaries of the authority,
conserve, store, transport, treat, purify, distribute, sell, and
deliver water to or among persons inside and outside the
boundaries of the authority, and allocate water among persons
participating in the authority's groundwater reduction plan
whether they are located inside or outside the authority's
boundaries;
(3) enter into contracts with persons inside or outside the
authority on terms and conditions the board considers desirable,
fair, and advantageous for the performance of its rights, powers,
and authority under this chapter;
(4) coordinate water services provided inside, outside, or into
the authority;
(5) provide wholesale and retail water services to any users or
customers within the authority's boundaries without being
required to execute contracts with those users or customers;
(6) adopt policies establishing whether, when, and the manner in
which the authority uses requests for proposals in obtaining
services, including professional services;
(7) determine whether to adopt administrative policies in
addition to those required by Section 49.199, Water Code; and
(8) administer and enforce this chapter.
(b) Sections 49.451-49.455, Water Code, do not apply to the
authority.
(c) Notwithstanding Subsection (a)(5), the authority may not
provide retail water service to a retail user within the
authority's boundaries that is located within the boundaries of a
district or municipality on the date the authority awards a
contract for the construction or executes a contract for the
acquisition of water facilities to serve that retail user,
unless:
(1) the district or municipality consents in writing to the
authority's provision of retail water service; or
(2) the retail user owns or operates a well.
(d) If a retail user that does not own or operate a well is
added to the boundaries of a district or municipality after the
date the authority awards a contract for the construction or
executes a contract for the acquisition of water facilities to
serve that retail user, the authority may provide retail service
to that retail user without the written consent of the district
or municipality.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.102. AUTHORITY RULES. The authority may adopt and
enforce rules reasonably required to implement this chapter,
including rules governing procedures before the board and rules
regarding implementation, enforcement, and any other matters
related to the authority's water supply or groundwater reduction
plan.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.103. FEES, USER FEES, RATES, AND CHARGES. (a) The
authority may establish fees, user fees, rates, and charges and
classifications of payers of fees and rates as necessary to
enable the authority to fulfill the authority's purposes and
regulatory functions provided by this chapter. The authority may
impose fees, user fees, rates, and charges on any person within
the authority.
(b) The authority may charge the owner of a well located within
the authority's boundaries a fee or user fee according to the
amount of water pumped from the well. If ownership of a well
changes, both the prior and subsequent well owners are liable to
the authority, jointly and severally, for all fees and user fees
imposed by the authority under this subsection, and any related
penalties and interest, for water pumped from that well before
the change in well ownership.
(c) The board shall make reasonable efforts to send districts
and municipalities written notice of the date, time, and location
of the meeting at which the board intends to adopt a proposed
charge under Subsection (b) and the amount of the proposed
charge. The board's failure to comply with this subsection does
not invalidate a charge adopted by the board under Subsection
(b).
(d) For wells located in Harris County or Fort Bend County, the
board shall exempt from the charge under Subsection (b) classes
of wells that are not subject to any groundwater reduction
requirement imposed by the Harris-Galveston Coastal Subsidence
District or the Fort Bend Subsidence District, as applicable. If
any of those classes of wells become subject to a groundwater
reduction requirement imposed by the applicable subsidence
district, the authority may impose the charge under Subsection
(b) on those classes. The board by rule may exempt any other
classes of wells from the charge under Subsection (b). The board
may not apply the charge under Subsection (b) to a well:
(1) with a casing diameter of less than five inches that serves
only a single-family dwelling; or
(2) regulated under Chapter 27, Water Code.
(e) For purposes of Subsection (d), a well is subject to a
groundwater reduction requirement if the applicable subsidence
district has adopted or adopts a requirement or rule that
groundwater withdrawals from the well, or from the well and other
wells collectively, be reduced, including a groundwater reduction
that is not required until a future date.
(f) The authority may establish fees, user fees, rates, and
charges that are sufficient to:
(1) achieve water conservation;
(2) prevent waste of water;
(3) serve as a disincentive to pumping groundwater;
(4) develop, implement, or enforce a groundwater reduction plan;
(5) accomplish the purposes of this chapter, including making
available alternative water supplies;
(6) enable the authority to meet operation and maintenance
expenses;
(7) pay the principal of and interest on notes, bonds, and other
obligations issued in connection with the exercise of the
authority's general powers and duties; and
(8) satisfy all rate covenants relating to the issuance of
notes, bonds, and other obligations.
(g) The authority may charge rates established by the authority
for water purchased from the authority.
(h) The authority may impose fees, user fees, or charges for the
importation of water into the authority's boundaries from a
source located outside the authority's boundaries.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.104. PURCHASE OF WATER FROM ANOTHER ENTITY. (a) If
the authority purchases water from another entity for resale to
local governments, the authority shall use its best efforts in
negotiating with the entity to determine the amount of capital
costs included in any rates or charges paid by the authority.
The authority shall determine the amount of expected capital
costs of its own system.
(b) The authority shall provide each district or municipality
within its boundaries information regarding the share of the
capital costs to be paid by the district or municipality, as
determined by the authority, and shall provide each district or
municipality the opportunity, in a manner and by a procedure
determined by the authority, to fund its share of the capital
costs with proceeds from the sale of bonds or fees and charges
collected by the districts or municipalities. A district or
municipality may use any lawful source of revenue, including bond
funds, to pay any sums due to the authority.
(c) The authority may adopt a procedure by which a district or
municipality may receive a credit from the authority. The board
may adopt any other procedure necessary to accomplish the goals
of this section.
(d) In complying with this section, the authority may use any
reasonable basis to calculate from time to time the share of the
capital costs of a district or municipality. The authority may
calculate the shares of the capital costs based on the amount of
water used within the authority by the district or municipality
during the calendar year preceding the year in which the
calculation is made.
(e) This section or any failure to comply with this section does
not limit or impede the authority's ability to issue bonds or
notes or invalidate any fees, user fees, charges, rates, or
special assessments imposed by the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.105. ASSESSMENTS. (a) The board may undertake
improvement projects and services that confer a special benefit
on all or a definable part of the authority. The board may
impose special assessments on property in that area, including
property of a local government, based on the benefit conferred by
the improvement project or services, to pay all or part of the
cost of the project and services. The board may provide
improvements and services to an area outside the boundaries of
the authority if the board determines that there is a benefit to
the authority. The authority may finance with special
assessments any improvement project or service authorized by this
chapter or any other applicable law.
(b) Services or improvement projects may be financed with
special assessments under this chapter only after the board holds
a public hearing on the advisability of the improvements and
services and the proposed assessments.
(c) The board shall publish notice of the hearing in a newspaper
or newspapers with general circulation in Harris and Fort Bend
Counties. The publication must be made not later than the 30th
day before the date of the hearing.
(d) Notice provided under this section must include:
(1) the time and place of the hearing;
(2) the general nature of the proposed improvement project or
services;
(3) the estimated cost of the improvement, including interest
during construction and associated financing costs; and
(4) the proposed method of assessment.
(e) Written notice containing the information required by
Subsection (d) shall be mailed by certified mail, return receipt
requested, not later than the 30th day before the date of the
hearing. The notice shall be mailed to each person within the
authority who holds a permit for a well issued by the
Harris-Galveston Coastal Subsidence District or Fort Bend
Subsidence District, as applicable, and whose well is subject to
a groundwater reduction requirement imposed by that district.
The Harris-Galveston Coastal Subsidence District and Fort Bend
Subsidence District shall provide to the authority a list of
persons who hold such a permit.
(f) The board may establish rules regarding procedures for a
hearing. A hearing on the services or improvement project,
whether conducted by the board or a hearings examiner, may be
adjourned from time to time. At the conclusion of a hearing
conducted by the board, the board shall make written findings and
conclusions relating to the advisability of the improvement
project or services, the nature of the improvement project or
services, the estimated cost, and the area benefited. If the
board appoints a hearings examiner to conduct the hearing, after
conclusion of the hearing, the hearings examiner shall file with
the board a written report of the examiner's findings and
conclusions.
(g) At a hearing on proposed assessments, on adjournment of the
hearing, or after consideration of the hearings examiner's
report, the board shall hear and rule on all objections to each
proposed assessment. The board may amend proposed assessments
for any property. After the board hears and takes action on
those objections, the board, by order:
(1) shall impose the assessments as special assessments on the
property;
(2) shall specify the method of payment of the assessments; and
(3) may provide that those assessments, including interest, be
paid in periodic installments.
(h) Periodic installments must be in amounts sufficient to meet
annual costs for services and improvements as provided by
Subsection (j) and continue for the number of years required to
retire the indebtedness or pay for the services to be rendered.
The board may provide interest charges or penalties for failure
to make timely payment and may impose an amount to cover
delinquencies and expenses of collection.
(i) If assessments are imposed for more than one service or
improvement project, the board may provide that assessments
collected for one service or improvement project may be borrowed
to be used for another service or improvement project. The board
shall establish a procedure for the distribution or use of any
assessments in excess of those necessary to finance the services
or improvement project for which those assessments were
collected.
(j) The board shall apportion the cost of an improvement project
or services to be assessed against the property in the authority
according to the special benefits that accrue to the property
because of the improvement project or services. The board may
assess the cost only according to the number of gallons of
groundwater pumped from wells within the authority that are
subject to a groundwater reduction requirement imposed by the
Harris-Galveston Coastal Subsidence District or Fort Bend
Subsidence District, as applicable. The board may not assess the
cost according to groundwater pumped from:
(1) a well with a casing diameter of less than five inches that
serves only a single-family dwelling; or
(2) a well that is regulated by Chapter 27, Water Code.
(k) The area of the authority to be assessed according to the
findings of the board may be the entire authority or any part of
the authority and may be less than the area proposed in the
notice of the hearing.
(l) The area to be assessed may not include property that is not
within the authority boundaries at the time of the hearing unless
there is an additional hearing, following the required notice.
(m) Notwithstanding Subsection (l), the owner of land annexed to
the authority after the authority has imposed assessments may
waive the right to notice and an assessment hearing and may agree
to the imposition and payment of assessments at an agreed rate
for land annexed to the authority. A district or municipality
may waive the right to notice and an assessment hearing for land
within its boundaries annexed to the authority and may agree to
the imposition and payment of assessments at an agreed rate for
the annexed land.
(n) The board shall have prepared an assessment roll showing the
assessments against each property and the board's basis for the
assessment. The assessment roll shall be:
(1) filed with the secretary of the board or other officer who
performs the function of secretary; and
(2) open for public inspection.
(o) After notice and hearing in the manner required for an
original assessment, the board may make supplemental assessments
to correct omissions or mistakes in the assessment:
(1) relating to the total cost of the improvement project or
services; or
(2) covering delinquencies or costs of collection.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.106. INTEREST AND PENALTIES. The board may require
the payment of interest on any late or unpaid fees, user fees,
rates, charges, and special assessments due the authority, but
the interest rate may not exceed the interest rate permitted by
Section 2251.025, Government Code. The board may also impose
penalties for the failure to make a complete or timely payment to
the authority. In addition, the board may exclude a person, or
any territory or well owned or controlled by a person, from the
authority's groundwater reduction plan for failure to make a
complete or timely payment to the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.107. ATTORNEY'S FEES AND COLLECTION EXPENSES. (a)
The authority is entitled to reasonable attorney's fees incurred
by the authority in enforcing its rules.
(b) The authority is entitled to collection expenses and
reasonable attorney's fees incurred by the authority in
collecting any delinquent fees, user fees, rates, and charges and
any related penalties and interest.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.108. LIEN. (a) Fees and user fees imposed by the
authority under Section 8813.103(b), any related penalties and
interest, and collection expenses and reasonable attorney's fees
incurred by the authority:
(1) are a first and prior lien against the well to which the
fees or user fees apply;
(2) are superior to any other lien or claim other than a lien or
claim for county, school district, or municipal ad valorem taxes;
and
(3) are the personal liability of and a charge against the owner
of the well.
(b) A lien under this section is effective from the date of the
resolution or order of the board imposing the fee or user fee
until the fee or user fee is paid.
(c) The board may enforce the lien in the same manner that a
municipal utility district operating under Chapter 54, Water
Code, may enforce an ad valorem tax lien against real property.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.109. ADMINISTRATIVE PENALTY; INJUNCTION. (a) A
person who violates a rule or order of the authority is subject
to an administrative penalty of not more than $5,000, as
determined by the board, for each violation or each day of a
continuing violation. The person shall pay the penalty to the
authority.
(b) The authority may bring an action to recover the penalty in
a district court in the county where the violation occurred.
(c) The authority may bring an action for injunctive relief in a
district court in the county where a violation of an authority
rule or order occurs or is threatened to occur. The court may
grant to the authority, without bond or other undertaking, a
prohibitory or mandatory injunction that the facts warrant,
including a temporary restraining order, temporary injunction, or
permanent injunction.
(d) The authority may bring an action for an administrative
penalty and injunctive relief in the same proceeding.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.110. WATER SUPPLY OR DROUGHT CONTINGENCY PLANS. The
authority by rule may develop, prepare, revise, adopt, implement,
enforce, and manage comprehensive water supply or drought
contingency plans for the authority, or any portion of the
authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.111. GROUNDWATER REDUCTION PLAN. (a) The authority
may wholly or partly develop, prepare, revise, adopt, implement,
enforce, manage, or participate in a groundwater reduction plan
that is applicable only to the authority and one or more persons
outside the authority. The authority may require that any
groundwater reduction plan that the authority wholly or partly
develops, prepares, revises, adopts, implements, enforces, or
manages or in which the authority participates be the exclusive
groundwater reduction plan that is binding and mandatory on some
or all of the territory, persons, or wells located within the
authority. A groundwater reduction plan may:
(1) specify the measures to be taken to reduce groundwater
withdrawals;
(2) identify alternative sources of water, including water from
the authority, to be provided to those affected;
(3) identify the rates, terms, and conditions under which
alternative sources of water will be provided, which may be
changed from time to time as considered necessary by the
authority;
(4) specify the dates and extent to which persons or districts
within the authority's boundaries shall reduce or cease reliance
on groundwater and accept water from alternative sources,
including water from the authority;
(5) include other terms and measures that are consistent with
the powers and duties of the authority;
(6) exceed the minimum requirements imposed by the
Harris-Galveston Coastal Subsidence District or Fort Bend
Subsidence District, as applicable, including any applicable
groundwater reduction requirements; and
(7) be amended from time to time at the discretion of the
authority.
(b) Fees, user fees, rates, charges, and special assessments of
the authority may be imposed under this chapter for a person's
participation in and benefit derived from the authority's
groundwater reduction plan or a groundwater reduction plan in
which the authority participates.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.112. ACQUISITION, CONSTRUCTION, AND OPERATION OF
SYSTEMS. (a) The authority may:
(1) acquire by purchase, gift, lease, contract, or any other
legal means a water treatment or supply system, or any other
works, plants, improvements, or facilities necessary or
convenient to accomplish the purposes of the authority, or any
interest of the authority, inside or outside the authority's
boundaries;
(2) design, finance, operate, maintain, or construct a water
treatment or supply system or any other works, plants,
improvements, or facilities necessary or convenient to accomplish
the purposes of the authority and provide water services inside
or outside the authority's boundaries;
(3) lease or sell a water treatment or supply system or any
other works, plants, improvements, or facilities necessary or
convenient to accomplish the purposes of the authority that the
authority constructs or acquires inside or outside the
authority's boundaries;
(4) contract with any person to operate or maintain a water
treatment or supply system the person owns; or
(5) acquire water rights under any law or permit.
(b) The authority may contract, according to terms and
conditions the board considers desirable, fair, and advantageous,
with a person outside the authority's boundaries:
(1) to allow the person, or the person's well, to be included in
a groundwater reduction plan adopted or implemented wholly or
partly by the authority or in a groundwater reduction plan in
which the authority participates;
(2) to sell water to the person; or
(3) to sell the person available excess capacity or additional
capacity of the authority's water treatment or supply system.
(c) The authority by rule may require that the plans and
specifications of water lines to be constructed within the
authority that are designed or intended to serve more than one
district or more than one person owning or holding a well permit
issued by the Harris-Galveston Coastal Subsidence District or
Fort Bend Subsidence District, as applicable, be approved by the
authority before the commencement of construction of the water
lines.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.113. SALE OR REUSE OF WATER OR BY-PRODUCT. The
authority may store, sell, or reuse:
(1) water; or
(2) any by-product from the authority's operations.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.114. CONTRACTS. (a) The authority may enter into a
contract with a person for the performance of a purpose or
function of the authority, including a contract to design,
construct, finance, lease, own, manage, operate, or maintain
works, improvements, facilities, plants, equipment, or appliances
necessary to accomplish a purpose or function of the authority.
A contract may be of unlimited duration.
(b) The authority may purchase, acquire, finance, or lease an
interest in a project used for a purpose or function of the
authority.
(c) The authority may contract for:
(1) the purchase, sale, or lease of water or water rights;
(2) the performance of activities within the powers of the
authority through the purchase, construction, or installation of
works, improvements, facilities, plants, equipment, or
appliances; or
(3) the design, construction, ownership, management,
maintenance, or operation of any works, improvements, facilities,
plants, equipment, or appliances of the authority or another
person.
(d) The authority may purchase surplus property from this state,
the United States, or another public entity through a negotiated
contract without bids.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.115. COOPERATION WITH AND ASSISTANCE OF OTHER
GOVERNMENTAL ENTITIES. (a) In implementing this chapter, the
board may cooperate with and request the assistance of the Texas
Water Development Board, the commission, the United States
Geological Survey, the Fort Bend Subsidence District, other local
governments, and other agencies of the United States and this
state.
(b) The Fort Bend Subsidence District may enter into an
interlocal contract with the authority to carry out the
authority's purposes and may carry out the governmental functions
and services specified in the interlocal contract.
(c) In an attempt to minimize costs associated with preparing a
groundwater reduction plan, the board may consider the usefulness
of water supply studies and plans prepared by or on behalf of the
North Harris County Regional Water Authority, the West Harris
County Regional Water Authority, the City of Houston, or other
governmental entities to the extent those studies or plans are
available and applicable to the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.116. GIFTS AND GRANTS. The authority may accept a
gift or grant from money collected by the Fort Bend Subsidence
District to fund the construction, maintenance, or operation of a
water treatment or supply system.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.117. EXPENDITURES. (a) The authority's money may be
disbursed only by check, draft, order, federal reserve wire
system, or other instrument or authorization.
(b) Disbursements of the authority must be signed by at least a
majority of the directors. The board by resolution may allow the
general manager, treasurer, bookkeeper, or other employee of the
authority to sign disbursements, except as limited by Subsection
(c).
(c) The board by resolution may allow disbursements to be
transferred by federal reserve wire system to accounts in the
name of the authority without the necessity of any directors
signing the disbursement. Disbursements of the authority's money
by federal reserve wire system to any accounts not in the name of
the authority must be signed by at least a majority of the
directors.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.118. AD VALOREM TAXATION. The authority may not
impose an ad valorem tax.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.119. EMINENT DOMAIN. (a) The authority may acquire
by condemnation any land, easements, or other property inside the
authority's boundaries to further authorized purposes, powers, or
duties of the authority. The authority may acquire by
condemnation any land, easements, or other property outside the
authority's boundaries for the purposes of pumping, storing,
treating, or transporting water. When exercising the power of
eminent domain granted by this section, the authority may elect
to condemn either the fee simple title or a lesser property
interest.
(b) The authority shall exercise the right of eminent domain in
the manner provided by Chapter 21, Property Code. The authority
is not required to give bond for appeal or bond for costs in a
condemnation suit or other suit to which it is a party. The
authority is not required to deposit more than the amount of an
award in a suit.
(c) The authority may not use the power of eminent domain for
the condemnation of land for the purpose of acquiring rights to
groundwater or for the purpose of acquiring water or water
rights.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.
Sec. 8813.120. ACTION AGAINST PERSON, DISTRICT, OR POLITICAL
SUBDIVISION. (a) The authority may bring an action in a
district court against a person, including a district or other
political subdivision located in the authority's territory or
included in the authority's groundwater reduction plan, to:
(1) recover any fees, rates, charges, assessments, collection
expenses, attorney's fees, interest, penalties, or administrative
penalties due the authority; or
(2) enforce the authority's rules or orders.
(b) Governmental immunity from suit or liability of a district
or other political subdivision is waived for the purposes of an
action under this section.
Added by Acts 2009, 81st Leg., R.S., Ch.
875, Sec. 2, eff. June 19, 2009.
SUBCHAPTER D. BONDS AND NOTES
Sec. 8813.151. REVENUE BONDS AND NOTES. (a) The authority may
issue bonds or notes payable solely from revenue from any source,
including:
(1) tolls, charges, rates, fees, user fees, and special
assessments the authority imposes or collects;
(2) the sale of water, water services, water rights or capacity,
water transmission rights or services, water pumping, or any
other service or product of the authority provided inside or
outside the boundaries of the authority;
(3) grants or gifts;
(4) the ownership or operation of all or a designated part of
the authority's works, improvements, facilities, plants, or
equipment; and
(5) contracts between the authority and any person.
(b) Notes issued by the authority may be first or subordinate
lien notes at the board's discretion.
(c) In connection with any bonds or notes of the authority, the
authority may exercise any power of an issuer under Chapter 1371,
Government Code.
(d) The authority may conduct a public, private, or negotiated
sale of the bonds or notes.
(e) The authority may enter into one or more indentures of trust
to further secure its bonds or notes.
(f) The authority may issue bonds or notes in more than one
series as necessary to carry out the purposes of this chapter.
In issuing bonds or notes secured by revenue of the authority,
the authority may reserve the right to issue additional bonds or
notes secured by the authority's revenue that are on a parity
with or are senior or subordinate to the bonds or notes issued
earlier.
(g) A resolution of the board authorizing the bonds or notes or
a trust indenture securing the bonds or notes may specify
additional provisions that constitute a contract between the
authority and its bondholders or noteholders.
(h) Bonds and notes may be additionally secured by deed of trust
or mortgage on any or all of the authority's facilities.
(i) The authority may issue refunding bonds or notes to refund
any of its bonds or notes in any manner provided by law.
(j) Sections 49.153, 49.154, and 49.181, Water Code, do not
apply to bonds or notes issued by the authority. Commission
rules regarding bonds or notes do not apply to bonds or notes
issued by the authority.
Added by Acts 2005, 79th Leg., Ch.
893, Sec. 1, eff. June 17, 2005.